Pachinko Hall Closures and Stagnant Capital Investment Due to COVID-19

「If an abnormal event, such as a pandemic like the spread of COVID-19 or a large-scale disaster, occurs on a scale beyond the Company's assumptions and the closure of pachinko halls is prolonged, it may have a significant impact on the financial position, operating results and other aspects of the Group.」

「Next, regarding gaming-machine operating levels, the average for October to December 2023 was 104.2% of the same period of the previous year. By category, pachislot-machine operating levels rose substantially to 116.2% of the same period of the previous year, as several smart pachislot machines that received strong support from fans were introduced. Pachinko-machine operating levels remained sluggish at 97.5% of the same period of the previous year, but reached 100.7% in December alone following the introduction of smart pachinko machines that received strong support from fans (based on the Company’s “DK-SIS” data).」

「Next, regarding gaming-machine operating levels, the average for July to September 2023 was 106.4% of the same period of the previous year. By category, pachislot-machine operating levels showed a clear recovery following the introduction of 6.5-generation pachislot machines, which received strong support from fans, and the emergence of smart pachislot machines, rising substantially to 123.3% of the same period of the previous year. Pachinko-machine operating levels, however, remained sluggish at 96.3% of the same period of the previous year (comparison based on the Company’s “DK-SIS” data).」

「Pachislot machines began to be introduced steadily from June in the form of pachislot 6.5 machines and from November in the form of smart pachislot machines. The launch of machines that gained strong support from fans also contributed, and the average activity rate from October to December rose sharply to 110.1% year on year, based on a comparison of the Company's DK-SIS data.」

「Gaming machine utilization averaged 101.7% of the previous year from July to September 2022. By machine type, pachinko machines introduced at the end of the previous fiscal year enjoyed strong support from fans, and utilization remained solid at 103.0% of the previous year on average from July to September. Pachislot machine utilization averaged 98.5% of the previous year during the period, but the full-scale introduction of 6.5-generation pachislot machines began in June. Supported also by the introduction of machines that gained strong support from fans, utilization in September alone reached 101.2% of the previous year, attracting attention to 6.5-generation machines (comparison with the Company's DK-SIS data).」

「Pachinko halls have continued operating while implementing thorough infection-control measures, and gaming machine utilization averaged 101.9% of the previous year from April to June 2022.」

「Utilization of all gaming machines averaged 102.0% of the previous year from January to March 2022. By machine type, hit pachinko machines that enjoyed strong support from fans continued to be introduced to the market, and utilization remained solid at 106.5% of the previous year on average from January to March. Although deliveries of 6.2-generation pachislot machines equipped with new game mechanics increased, pachislot utilization remained challenging at 95.1% of the previous year on average during the period.」

「Utilization of all gaming machines averaged 99% of the previous year from October to December. By machine type, hit pachinko machines that enjoyed strong support from fans continued to be introduced to the market, and utilization remained solid at 103% of the previous year on average from October to December. Although deliveries of 6.2-generation pachislot machines equipped with new game mechanics increased, pachislot utilization remained challenging at 94% of the previous year on average during the period (comparison with the Company's DK-SIS data).」

「Pachinko halls have continued operating while implementing thorough infection-control measures. Gaming machine utilization was 97% of the previous year on average from July to September and 100% in September alone, broadly in line with the previous year although still below pre-pandemic levels.」

「Pachinko halls have continued operating while implementing thorough infection-control measures. Gaming machine utilization recovered to approximately 80% of the level two years earlier, before the pandemic, namely the first quarter of the fiscal year ended March 2020. However, given the resurgence of infections and uncertainty over when they will subside, a full recovery in utilization is expected to take some time.」

「In the pachinko industry in which the Group operates, pachinko halls implemented temporary closures and reduced operating hours in April 2020 to prevent the spread of COVID-19. Gaming machine utilization fell sharply at the beginning of the fiscal year but recovered to approximately 80% of the previous year from July onward.」

「In the pachinko industry in which the Group operates, pachinko hall utilization fell sharply at the beginning of the fiscal year due to the impact of the spread of COVID-19, but recovered to approximately 80% of the previous year from July onward. However, utilization had not returned to pre-pandemic levels, and the return of fans remained limited. By machine type from October onward, overall hall utilization declined due to the resurgence of COVID-19 infections in the third wave. Pachinko machine utilization remained at approximately 80% of the previous year as the introduction of machines equipped with Yu-Time, which broadened the range of game mechanics and attracted new fan segments, progressed. Pachislot utilization, however, trended downward from November after the removal of popular older-standard machines was largely completed around the year-end and New Year holidays (comparison with the Company's DK-SIS data).」

「In the pachinko industry in which the Group operates, pachinko hall utilization in September 2020 recovered to approximately 80% of the same month of the previous year (comparison with the Company's DK-SIS data). However, the recovery trend that had continued since the lifting of the state of emergency appeared to have reached a plateau, and the return of fans was slowing.」

「In the pachinko industry in which the Group operates, pachinko halls nationwide closed temporarily to prevent the spread of COVID-19. Operations gradually resumed from mid-May, and pachinko hall utilization in June recovered to 73% of the previous year, based on a comparison with the Company's DK-SIS data.」