SANTA MONICA, Calif. & KYOTO, Japan--(BUSINESS WIRE)--Illumination (HQ: Santa Monica, CA, USA; Founder and CEO: Chris Meledandri) and Nintendo Co., Ltd. (HQ: Kyoto, Minami-ku, Japan; President and Representative Director: Shuntaro Furukawa, "Nintendo†hereafter) revealed the first look at Yoshi in The Super Mario Galaxy Movie, the new animated film based on the world of Super Mario Bros., during a Nintendo Direct presentation today. The film will be released worldwide by Universal Pictures in April 2026. The ...

Summary of the Conference Call on Japanese IP/Brands Industry Overview - The focus is on the Japanese IP (Intellectual Property) and consumer brands, which are characterized by high functionality, craftsmanship, and technology. Notable examples include Dragon Ball, Super Mario Bros., and Uniqlo's Heattech [2][3]. Core Insights - **Profit Pool Growth**: From FY15 to FY25E, the profit pool for selected Japanese IP/brands increased from ¥1.2 trillion to ¥2.4 trillion, with overseas exposure expanding 3.0 times from ¥0.4 trillion to ¥1.2 trillion, compared to a 1.6 times increase in domestic exposure [3][19]. - **Sustainable Growth Factors**: Key factors for sustainable growth in IP/brands include: 1. **IP/Brand Value**: Unique positioning and added value are crucial for monetization [30]. 2. **Value Chain Strengthening**: Diversification of the portfolio enhances monetization potential [31]. 3. **Consumer Experience**: Products that allow consumers to easily perceive functionality and quality have a higher probability of sustainable growth [22][41]. Investment Recommendations - **Highlighted Stocks**: The report recommends 11 Buy-rated stocks, including: - Asics - Food & Life Companies - Ryohin Keikaku - Fast Retailing - Sony Group - Nintendo - Recruit Holdings - Konami Group - Toyo Suisan - Kotobuki Spirits - Shiseido (upgraded from Neutral to Buy) [3][19]. Performance Disparities - Significant disparities in stock performance were noted, with Capcom's market cap growing approximately 11 times compared to Square Enix's 3.4 times. For brands, Asics and Kotobuki Spirits rose 5.5 times, while Calbee, Meiji HD, and Pola Orbis HD lagged at 0.6 times [3][19]. Earnings and Share Price Drivers - An analysis of 27 Japanese companies revealed that while some achieved sustained profit expansion, others experienced volatility. The three necessary factors for sustainable growth were identified as: 1. **Consumer Experience**: High functionality and quality products. 2. **Brand-Building Capabilities**: Effective communication and supply chain management. 3. **Market Share**: High market share can act as a tailwind for growth [20][21][22]. Financial Projections - Operating profits for the 27 companies are projected to grow significantly, with total operating profits expected to reach ¥2.4 trillion by FY25E, driven by increased overseas exposure [24][43]. Risks and Considerations - Potential risks include economic slowdowns, changes in consumer preferences, and increased competition, particularly in sectors like cosmetics where differentiation is challenging [38][46]. Conclusion - The Japanese IP and consumer brands are positioned for growth, driven by expanding overseas markets and strong brand values. However, companies must navigate challenges related to market dynamics and consumer preferences to sustain this growth trajectory [19][41].