Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Performance Overview

During the cumulative third quarter period of the fiscal year ending March 2026 (April 1, 2025 to December 31, 2025), net sales reached ¥122,415 million, marking a record high with a 7.0% increase year-over-year. Operating income was ¥13,770 million, down 3.8%, and ordinary income was ¥14,077 million, down 3.0%. Net income attributable to owners of parent for the quarter was ¥9,644 million, a 28.6% decrease, impacted by the absence of gains on fixed asset sales recorded in the same period last year. By segment, operating income declined due to increased selling, general and administrative expenses linked to the launch of a new flagship model in the commercial karaoke market, though net sales grew. Karaoke and dining establishments saw increased sales and profits driven by existing store growth despite a reduction in store numbers, while music software experienced decreases in sales and profits. The parking business showed revenue and profit growth.

Financial Position and Dividend Status

Total assets were ¥198,892 million, down ¥10,424 million from the previous fiscal year-end, while net assets increased by ¥1,745 million to ¥119,608 million, improving the equity ratio from 55.6% to 59.4%. The annual dividend forecast for the fiscal year ending March 2026 is ¥67 (including a regular dividend of ¥29 and a commemorative dividend of ¥10), an increase from ¥57 in the previous fiscal year. There is no revision to the earnings guidance, with full-year net sales projected at ¥162,700 million (6.3% increase YoY), operating income at ¥18,000 million (0.3% increase YoY), and net income attributable to owners of parent at ¥15,400 million (15.3% decrease YoY).