Financial Summary for the Fiscal Year Ending March 2026 [Japanese Standards] (Consolidated)

Performance Overview

For the fiscal year ending March 2026, although new models in the pachinko market and the spread of smart pachinko machines contributed, the overall market did not become active and total sales volume fell below the previous year. Net sales were 179.2 billion yen (down 6.6% YoY), operating profit was 62.4 billion yen (down 15.1% YoY), ordinary income was 63.9 billion yen (down 14.2% YoY), and net income attributable to owners of parent was 46.7 billion yen (down 13.4% YoY). In the pachinko machine-related segment, nine new titles were launched, generating net sales of 119.8 billion yen (up 11.2%), and operating profit of 49.3 billion yen (up 12.7%). The pachislot machine segment launched four new titles but recorded net sales of 43.4 billion yen (down 31.6%) and operating profit of 18.9 billion yen (down 47.0%). Supply equipment-related segment posted net sales of 15.5 billion yen (down 22.9%) and operating profit of 1.1 billion yen (down 24.4%).

Financial Position and Cash Flows

Total assets decreased by 49.2 billion yen from the previous period to 287.4 billion yen. Liabilities declined by 14.4 billion yen to 37.3 billion yen, and net assets decreased by 34.8 billion yen to 250.1 billion yen, with the equity ratio rising by 2.3 percentage points to 86.5%. Cash flows from operating activities amounted to 51.8 billion yen, down 6.2 billion yen from the previous period. Investing activities resulted in expenditures of 17.0 billion yen, down 13.5 billion yen. Financing activities had expenditures of 82.3 billion yen, decreasing by 62.5 billion yen. The cash and cash equivalents balance was 192.4 billion yen.

Outlook

For the fiscal year ending March 2027, consolidated performance is forecasted at net sales of 174.0 billion yen (down 2.9% YoY), operating profit of 56.0 billion yen (down 10.4%), ordinary income of 58.0 billion yen (down 9.4%), and net income attributable to owners of parent of 40.0 billion yen (down 14.4%). In the pachinko market, operating conditions are somewhat subdued, and sales volume is expected to decline. However, efforts to generate popular models and activate the market through new pricing strategies aim to secure the top market share for five consecutive periods.

Dividend Policy and Payout

The basic policy is to maintain a performance-linked dividend with a payout ratio of approximately 40%, with an annual dividend of 90 yen (interim 45 yen, end of term 45 yen). For the next fiscal year, an annual dividend of 80 yen is projected. In addition to stability, a minimum annual dividend per share of 20 yen has been set.