Gaming-Hall Equipment Returns to Profitability

「Because the adoption of smart gaming machines fell short of initial expectations, sales of units and peripheral equipment designed for smart gaming machines declined. Segment revenue was ¥3,278 million, down 52.0% year on year, and the segment posted a loss of ¥667 million, compared with profit of ¥1,437 million in the previous consolidated fiscal year.」

「遊技場向機器は、スマート遊技機の普及が当初の想定を下回ったことにより、スマート遊技機専用ユニット及び周辺機器の販売が減少したことから、セグメント売上高は3,278百万円（前連結会計年度比52.0％減）、セグメント損失は667百万円（前連結会計年度は1,437百万円の利益）となりました。」

「As with Domestic Commercial, in addition to the reversal of the special replacement demand associated with the issuance of new banknotes, sales of the highly profitable dedicated units for smart gaming machines declined. As a result, segment revenue was ¥1,814 million, down 61.5% year on year, and the segment posted a loss of ¥158 million, compared with a profit of ¥1,388 million in the same period of the previous year.」

「Due mainly to higher sales of dedicated units for smart gaming machines and peripheral equipment, including banknote validator units and banknote transport systems adapted for the redesign of Japan's banknotes, segment revenue was ¥4,710 million, up 53.9% year on year, and segment profit was ¥1,388 million, up 182.6%.」

「Higher sales of peripheral equipment, primarily dedicated units for smart gaming machines, and installation work resulted in segment revenue of ¥4,536 million, up 34.3% year on year, and segment profit of ¥774 million, compared with a loss of ¥71 million in the same quarter of the previous year.」

「Following the release of smart gaming machines by gaming-machine manufacturers, sales of related peripheral equipment and installation work increased. As a result, segment revenue was ¥3,061 million, up 53.9% year on year, and segment profit was ¥491 million, compared with a loss of ¥147 million in the same quarter of the previous year.」

「Higher sales of dedicated units for smart gaming machines following their full-scale market introduction resulted in segment revenue of ¥1,622 million, up 56.2% year on year, and segment profit of ¥287 million, compared with a loss of ¥61 million in the same period of the previous year.」

「Following the start of the market introduction of smart gaming machines, sales of dedicated units and other products increased. Segment revenue was ¥4,345 million, up 16.0% from the previous consolidated fiscal year, while the segment posted a loss of ¥125 million, compared with a loss of ¥391 million in the previous consolidated fiscal year.」

「Following the start of the market introduction of smart gaming machines, higher sales of dedicated units for smart gaming machines and other factors resulted in segment revenue of ¥3,377 million, up 14.9% year on year, and a segment loss of ¥71 million, compared with a loss of ¥78 million in the same period of the previous year.」

「Following the decision to introduce smart gaming machines to the market from November this year, pachinko halls became increasingly cautious about capital investment until then. Segment revenue was ¥1,989 million, up 6.5% year on year, while the segment posted a loss of ¥147 million, compared with a loss of ¥178 million in the same quarter of the previous year.」

「Although sales of core products, primarily automatic medal replenishment systems, declined, an increase in construction projects related to changes in equipment specifications at pachinko halls and other factors resulted in segment revenue of ¥1,038 million, up 21.3% year on year, and a segment loss of ¥61 million, compared with a loss of ¥122 million in the same period of the previous year.」

「Customers continued to defer purchases of peripheral equipment as they prioritized replacing gaming machines subject to the end-of-removal deadline at the end of January this year. As a result, segment revenue was ¥2,940 million, down 15.0% year on year. However, rigorous cost reductions and profitability management for construction projects resulted in a segment loss of ¥78 million, compared with a loss of ¥641 million in the same quarter of the previous year.」

「Demand for capital investment remained subdued as pachinko halls prioritized replacing old-regulation machines, whose removal deadline was approaching at the end of January next year, while the transition to new-regulation machines stagnated amid the COVID-19 pandemic. Lower sales of core products such as automatic medal replenishment systems and other factors resulted in segment revenue of ¥1,867 million, down 10.3% year on year, and a segment loss of ¥178 million, compared with a loss of ¥473 million in the same period of the previous year.」

「Lower sales of core products such as automatic medal replenishment systems resulted in segment revenue of ¥856 million, up 1.8% year on year but remaining at approximately the level of the same period of the previous year, when hall operations were voluntarily suspended due to the COVID-19 pandemic. The segment posted a loss of ¥122 million, compared with a loss of ¥245 million in the same period of the previous year.」

「Pachinko halls, the main customers, suspended operations during the state of emergency, and the recovery in the number of players took time even after restrictions were lifted. In addition, they prioritized investment in infection-prevention measures alongside the introduction of gaming machines designed to curb excessive gambling incentives. As a result, sales of core products, particularly automatic medal replenishment systems, declined. Segment revenue was ¥3,461 million, down 28.1% year on year, and the segment posted a loss of ¥641 million, compared with a loss of ¥69 million in the same quarter of the previous year.」

「In addition to the difficult market environment caused by tighter regulations and other factors, demand for replacing pachinko hall equipment stagnated due to the impact of voluntary business suspensions accompanying the spread of COVID-19. Lower sales of core products, primarily automatic medal replenishment systems, resulted in segment revenue of ¥2,082 million, down 31.1% year on year, and a segment loss of ¥473 million, compared with a loss of ¥56 million in the same period of the previous year.」

「In addition to the difficult market environment caused by tighter regulations and other factors, the spread of COVID-19 led to pachinko halls being closed. Lower sales of core products, primarily automatic medal replenishment systems, resulted in segment revenue of ¥841 million, down 52.1% year on year, and a segment loss of ¥245 million, compared with profit of ¥27 million in the same period of the previous year.」

「In addition to the continued difficult market environment, lower sales of the core automatic medal replenishment systems and other factors resulted in segment revenue of ¥4,811 million, down 12.7% year on year, and a segment loss of ¥69 million, compared with a loss of ¥165 million in the same period of the previous year.」

「Sales of new ball dispensers and medal dispensers increased, but lower sales of the core automatic medal replenishment systems and other factors resulted in segment revenue of ¥3,021 million, down 9.7% year on year. The segment posted a loss of ¥56 million, compared with a loss of ¥412 million in the same period of the previous year.」

「Although there was substantial replacement demand for equipment at the beginning of the period, capital investment declined from May onward, partly due to the industry’s voluntary suspension of equipment replacement. As a result, segment revenue was ¥1,758 million, down 2.7% year on year, and segment profit was ¥27 million, down 73.1%.」

「In addition to the decline in revenue resulting from the discontinuation of the amusement business during the previous consolidated fiscal year, lower sales of core products such as automatic medal replenishment systems and ball dispensers resulted in segment revenue of ¥7,136 million, down 11.1% from the previous consolidated fiscal year. However, following a reduction in inventory carrying values, among other factors, the segment loss narrowed to ¥228 million, compared with a loss of ¥489 million in the previous consolidated fiscal year.」

「Due mainly to lower sales of core products such as automatic medal replenishment systems, segment revenue was ¥5,512 million, down 15.2% year on year, and the segment posted a loss of ¥165 million, compared with a profit of ¥87 million in the same quarter of the previous year.」

「Due in part to lower sales of core products, including automatic medal replenishment systems and ball dispensers, segment revenue was ¥3,348 million, down 16.9% year on year. While the effects of various cost reductions under the business restructuring plan are beginning to emerge toward the second half, the Company reduced the carrying value of part of its inventories to strengthen its financial position, in view of the ongoing decline in selling prices in this market. As a result, the segment posted a loss of ¥412 million, compared with a loss of ¥19 million in the same quarter of the previous year.」

「Although sales of core products such as automatic medal replenishment systems declined, segment revenue was ¥1,806 million, down 9.9% year on year. However, efforts to improve profitability under the business restructuring plan resulted in segment profit of ¥102 million, up 338.1% year on year.」

「Due mainly to the sluggish overall market caused by industry trends in recent years and tighter regulations, the benefits of the acquisition of another company's business in the previous consolidated fiscal year could not be fully realized. Segment revenue was ¥8,031 million, down 1.8% from the previous consolidated fiscal year. On the earnings side, in addition to higher expenses resulting from the acquisition, inventory write-downs carried out as part of the business-structure reform caused the segment to post a loss of ¥489 million, compared with a profit of ¥338 million in the previous consolidated fiscal year.」

「Due mainly to lower sales of core products such as automatic medal replenishment systems, segment revenue was ¥6,500 million, down 0.6% year on year, and segment profit was ¥87 million, down 64.6%.」

「Although sales of core products such as automatic medal replenishment systems declined, the product lineup and customer base expanded following the acquisition of a business. Segment revenue was ¥4,031 million, up 3.5% year on year. However, because sales fell short of the initial expectations, the segment posted a loss of ¥19 million, compared with a profit of ¥95 million in the same quarter of the previous year.」

「Although sales of core products such as automatic medal replenishment systems declined, the product lineup and customer base expanded following the acquisition of a business last year. As a result, segment revenue was ¥2,004 million, up 6.3% year on year. However, due mainly to higher expenses associated with the acquisition, segment profit was ¥23 million, down 69.5% year on year.」

「Although sales of core products, including automatic medal replenishment systems, declined, the expanded product range and customer base resulting from the transfer of another company's business contributed to results. Segment sales were ¥8,176 million, up 8.0% from the previous fiscal year, and segment profit was ¥338 million, compared with segment profit of ¥6 million in the previous fiscal year.」

「Although sales of related equipment, including automatic medal replenishment and collection systems, declined, the effect of acquiring the gaming equipment business in September last year contributed to results. Segment sales were ¥6,542 million, up 8.5% year on year, and segment profit was ¥246 million, up 668.4% year on year.」

「In response to the shift in capital investment toward pachislot areas within the pachinko industry, the Company focused on selling related equipment, including the automatic medal replenishment and collection systems in which the Group specializes. As a result, segment revenue was ¥3,895 million, up 4.2% year on year, and segment profit was ¥95 million, up 405.7%.」

「Amid a continued trend of restrained capital investment across the industry, sales of related equipment, including the automatic medal replenishment systems in which the Group specializes, helped drive segment revenue to ¥1,885 million, up 2.5% year on year, and segment profit to ¥76 million, compared with a segment loss of ¥20 million in the same quarter of the previous year.」