Improvement and enhancement of the operating profit margin on sales

「As a result, net sales were ¥81.0 billion, down 19.3% year on year; operating income was ¥27.3 billion, down 30.0%; ordinary income was ¥28.4 billion, down 28.8%; and interim net income attributable to owners of the parent was ¥20.4 billion, down 28.8%.」

「Operating profit margin on sales (%) 36.4 38.4 34.9」

「Isesaki City, Gunma Prefecture, is the area where our Sanwa Plant, part of our Manufacturing Division, is located. The industrial revitalization project to which we donated is intended to increase the region’s earning capacity and create a vibrant community centered on industry by attracting people with connections to the region.」

「As a result, net sales were ¥100.4 billion, up 10.7% year on year; operating income was ¥39.0 billion, up 7.6%; ordinary income was ¥39.9 billion, up 8.7%; and interim net income attributable to owners of the parent was ¥28.7 billion, up 9.7%.」

「As a result, net sales were ¥90.7 billion, down 21.9% year on year; operating income was ¥36.2 billion, down 20.2%; ordinary income was ¥36.7 billion, down 19.9%; and interim net income attributable to owners of the parent was ¥26.2 billion, down 20.0%.」

「The operating profit margin on sales, a key management metric, was 36.4%, driven mainly by higher sales resulting from increased market share in the pachinko and pachislot machine businesses, as well as cost reductions including lower cost of sales and SG&A expenses. The margin remains at a high level.」

「As a result, net sales were ¥170.5 billion, up 33.2% year on year; operating income was ¥65.2 billion, up 35.9%; ordinary income was ¥65.8 billion, up 35.1%; and net income attributable to owners of the parent was ¥48.2 billion, up 24.8%.」

「As a result, net sales were ¥116.1 billion, up 66.1% year on year; operating income was ¥45.4 billion, up 72.1%; ordinary income was ¥45.8 billion, up 70.9%; and net income attributable to owners of the parent was ¥32.7 billion, up 53.9%.」

「As a result, net sales were ¥50.7 billion, up 82.9% year on year; operating income was ¥19.1 billion, up 102.9%; ordinary income was ¥19.4 billion, up 98.2%; and net income attributable to owners of the parent was ¥14.0 billion, up 77.5%.」

「The operating margin, a key management target, rose 12.0 percentage points from 25.2% in the previous consolidated fiscal year to 37.2%, owing to margin improvement from higher sales volumes of pachinko and pachislot machines, as well as cost reductions including lower costs and tighter control of SG&A expenses.」

「Against this backdrop, our group maintained the momentum through the second quarter, when it substantially expanded the sales share of its core pachinko machines by enhancing brand strength. We continued to build unit sales in the third quarter, including the pachinko machine “Godzilla vs. Evangelion: G-Cell Awakening,” which recorded the highest unit sales in the industry among pachinko machines launched in 2022. In addition, the smart pachislot machine “L Valvrave the Liberator,” launched ahead of the rest of the industry, attracted attention from fans and parlors and has shown high utilization since installation, making a significant contribution to strengthening our group's presence in the pachislot market. As a result, sales were ¥128.0 billion, up 82.1% year on year, and operating profit was ¥48.0 billion, up 139.8%.」

「Amid rising interest in the Group's products as the brand strengthened through the operating performance of products launched in recent years, the products sold during the cumulative second quarter were generally met with strong demand. The Group made every effort to secure components so that it could meet as much of this demand as possible. As a result, it increased unit sales at a pace not seen in recent years and significantly expanded its sales share. Net sales were ¥69.9 billion, up 149.3% year on year; operating income was ¥26.4 billion, up 806.4%; ordinary income was ¥26.8 billion, up 687.3%; and net income attributable to owners of the parent was ¥21.3 billion, up 365.7%, partly due to the recognition of extraordinary income from the sale of investment securities.」

「As a result, net sales were ¥27.7 billion, up 154.0% year on year; operating income was ¥9.4 billion, compared with operating income of ¥700 million in the same quarter of the previous year; ordinary income was ¥9.8 billion, up 724.4%; and net income attributable to owners of the parent was ¥7.9 billion, up 740.2%, partly due to the recognition of extraordinary income from the sale of investment securities.」

「The operating margin, a key management target, rose 13.9 percentage points from 11.3% in the previous consolidated fiscal year to 25.2%, owing to margin improvement from higher sales volumes of pachinko and pachislot machines, as well as cost reductions including lower costs and tighter control of SG&A expenses.」

「As a result, net sales were ¥70.3 billion, up 71.6% year on year; operating income was ¥20.0 billion, up 371.0%; ordinary income was ¥20.8 billion, up 311.9%; and net income attributable to owners of the parent was ¥16.9 billion, up 313.0%, partly due to the recognition of extraordinary income from the sale of investment securities.」

「As a result, net sales were ¥28.0 billion, up 10.8% year on year; operating income was ¥2.9 billion, up 168.7%; ordinary income was ¥3.4 billion, up 114.7%; and net income attributable to owners of the parent was ¥4.5 billion, up 225.0%, partly due to the recognition of extraordinary income from the sale of investment securities.」

「As a result, net sales were ¥10.9 billion, down 39.1% year on year; operating income was ¥700 million, down 79.5%; ordinary income was ¥1.1 billion, down 71.5%; and net income attributable to owners of the parent was ¥900 million, down 71.0%.」

「The operating margin, a key management target, fell 4.7 percentage points from 16.0% in the previous consolidated fiscal year to 11.3%, mainly due to an increase in the SG&A-to-sales ratio caused by the substantial decline in net sales.」

「As a result, net sales were ¥41.0 billion, down 33.6% year on year; operating income was ¥4.2 billion, down 59.7%; ordinary income was ¥5.0 billion, down 55.5%; and net income attributable to owners of the parent was ¥4.1 billion, down 68.3%.」

「As a result, net sales were ¥25.3 billion, down 24.4% year on year; operating income was ¥1.0 billion, down 64.8%; ordinary income was ¥1.5 billion, down 56.0%; and net income attributable to owners of the parent was ¥1.4 billion, down 35.5%.」

「As a result, sales were ¥17.9 billion, up 58.2% year on year, operating profit was ¥3.7 billion, compared with an operating loss of ¥0.5 billion in the same period of the previous year, ordinary profit was ¥4.1 billion, compared with an operating loss of ¥0.1 billion, and net profit attributable to owners of the parent was ¥3.2 billion, compared with a quarterly net loss of ¥93 million.」

「As a result, sales were ¥61.7 billion, up 11.6% year on year, operating profit was ¥10.5 billion, down 3.7%, and ordinary profit was ¥11.3 billion, down 4.0%.」

「As a result, net sales were ¥33.4 billion, up 12.5% year on year; operating income was ¥3.0 billion, down 5.3%; ordinary income was ¥3.6 billion, down 4.8%; and net income attributable to owners of the parent was ¥2.1 billion, down 24.8%.」

「As a result, net sales were ¥11.3 billion, down 21.8% year on year; operating loss was ¥500 million, compared with operating income of ¥1.3 billion in the same quarter of the previous year; ordinary loss was ¥100 million, compared with ordinary income of ¥1.8 billion; and net loss attributable to owners of the parent was ¥93 million, compared with net income attributable to owners of the parent of ¥1.4 billion.」

「The target management indicator, the operating margin, improved by 12.2 percentage points from 11.8% in the previous consolidated fiscal year to 24.0%.」

「During the nine-month consolidated period, our group was the first in the industry to launch pachinko machines with selectable settings newly permitted under the new regulations. We subsequently accumulated a track record of new-regulation machines passing the model conformity tests, and sold these machines as well as old-regulation machines that remained eligible for sale. We launched 8 new pachinko titles and 2 pachislot titles. In addition to the contribution from additional sales of the pachinko machine “Fever Senki Zessho Symphogear,” launched in August 2017, efforts to reduce costs and improve the efficiency of R&D expenses also proved effective, and performance remained firm against the full-year forecast. As a result, sales were ¥55.3 billion, up 19.8% year on year, operating profit was ¥10.9 billion, compared with an operating loss of ¥2.9 billion in the same quarter of the previous year, ordinary profit was ¥11.8 billion, compared with an ordinary loss of ¥1.8 billion, and net profit attributable to owners of the parent was ¥8.8 billion, compared with a quarterly net loss of ¥1.2 billion. The operating profit margin on sales was 19.8%.」

「Under these circumstances, our group launched 4 new pachinko titles and 2 new pachislot titles. Additional sales of the pachinko machine “Fever Senki Zessho Symphogear,” launched in August 2017, also contributed to performance through its long-running success, enabling us to record higher sales and earnings than in the same quarter of the previous year. As a result, sales were ¥29.7 billion, up 40.3% year on year, operating profit was ¥3.2 billion, compared with an operating loss of ¥5.5 billion in the same quarter of the previous year, ordinary profit was ¥3.7 billion, compared with an ordinary loss of ¥4.9 billion, and net profit attributable to owners of the parent was ¥2.9 billion, compared with a quarterly net loss of ¥3.4 billion. The operating profit margin on sales was 10.9%.」

「Pachinko machine “Fever Senki Zessho Symphogear,” launched in August 2017, became a long-running hit and additional sales remained strong, enabling the company to secure operating profit. The operating profit margin on sales was 9.5%.」

「With the goal of improving the operating profit margin on sales, we are considering and implementing various measures to strengthen our competitiveness in product planning, development, production and sales. In sales operations, sales recovered, while management efforts such as cost reductions and control of R&D and other expenses proved effective. As a result, the operating profit margin on sales was 11.8%, an improvement of 5.6 percentage points from the previous consolidated fiscal year.」

「As part of our medium-term efforts to strengthen earnings power, we will work to improve and raise the operating margin by expanding market share and revenue in the pachinko and pachislot markets, while reducing costs and controlling selling, general and administrative expenses.」