| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥315.6 B | ¥378.1 B | -16.6% |
| Operating Income | ¥25.0 B | ¥49.1 B | -49.1% |
| Ordinary Income | ¥35.2 B | ¥46.8 B | -24.6% |
| Net Income | ¥31.8 B | ¥26.4 B | +20.1% |
| ROE | 8.9% | 8.3% | - |
For the fiscal year ended March 2026, Revenue was ¥315.6 B (YoY -¥62.6 B -16.6%), Operating Income was ¥25.0 B (YoY -¥24.1 B -49.1%), Ordinary Income was ¥35.2 B (YoY -¥11.5 B -24.6%), and Net Income attributable to owners of the parent was ¥31.8 B (YoY +¥5.3 B +20.1%). The core Global Gaming business remained broadly flat, but a sharp contraction in Domestic Commercial (-45.1%) and Amusement Hall Equipment (-52.0%) weighed on overall results, producing a declining-revenue, declining-profit trend at the operating level. Conversely, special gains of ¥33.0 B, mainly comprised of gain on sale of fixed assets of ¥32.8 B, contributed to a YoY +20.1% increase at the Net Income level. Operating margin deteriorated to 7.9% (prior year 13.0%, -5.1pt), while Net Income margin improved to 10.1% (prior year 7.0%, +3.1pt), indicating that one-off items propped up the reported profitability.
【Revenue】 Revenue declined sharply to ¥315.6 B (-16.6%). By segment, Global Gaming remained flat at ¥214.7 B (-0.0%), accounting for 68.0% of total sales. Overseas Commercial was ¥47.2 B (-17.4%), Domestic Commercial ¥20.9 B (-45.1%), and Amusement Hall Equipment ¥32.8 B (-52.0%), all posting double-digit declines and materially worsening the revenue mix. By region, North America represented ¥160.6 B (U.S. ¥159.8 B), or 50.9% of sales, while Domestic revenue shrank to ¥53.8 B. Sales to major customer Aristocrat Technologies amounted to ¥43.3 B, approximately 13.7% of total, indicating increased customer concentration. Cost of sales was ¥186.8 B, producing a gross margin of 40.8% (prior year 40.6%, +0.2pt) slightly improved, but SG&A of ¥103.8 B (SG&A ratio 32.9%, prior year 27.6%, +5.3pt) reduced absorption capacity and materially worsened operating-level profitability.
【Profitability】 Operating Income halved to ¥25.0 B (-49.1%). Operating margin declined to 7.9% (prior year 13.0%, -5.1pt). By segment, Global Gaming generated Operating Income of ¥50.2 B (margin 23.4%), up +14.8% YoY and remained strong, while the other three segments were loss-making (Domestic Commercial -¥0.9 B, Overseas Commercial -¥2.7 B, Amusement Hall Equipment -¥6.7 B). Corporate adjustments of -¥14.9 B further pressured consolidated profits. Non-operating results produced ¥10.2 B of income, mainly due to foreign exchange gains of ¥6.8 B, resulting in Ordinary Income of ¥35.2 B (-24.6%). Extraordinary items included Special Gains of ¥33.0 B (including gain on sale of fixed assets ¥32.8 B), expanding Profit before tax to ¥68.0 B (prior year ¥48.0 B, +41.8%). After deducting income taxes of ¥21.1 B (effective tax rate 31.0%), Net Income was ¥31.8 B (+20.1%). In summary, operating-level declines were offset by non-operating income and one-off special gains, producing lower operating profitability but higher Net Income.
The Global Gaming business posted Revenue of ¥214.7 B (-0.0%), Operating Income ¥50.2 B (+14.8%), and margin 23.4%, maintaining high profitability and serving as the primary profit engine. Overseas Commercial recorded Revenue ¥47.2 B (-17.4%) and Operating Loss ¥2.7 B (the loss narrowed 51.6% YoY), showing signs of improvement but remaining in the red. Domestic Commercial declined to Revenue ¥20.9 B (-45.1%) and Operating Loss ¥0.9 B (down from Operating Income ¥1.1 B prior year), hit by demand weakness and fixed cost burden. Amusement Hall Equipment posted Revenue ¥32.8 B (-52.0%) and Operating Loss ¥6.7 B (widened from -¥1.4 B prior year), strongly affected by a stalled investment cycle in the domestic amusement market. Margin dispersion is significant: Global Gaming at 23.4% versus negative margins across the other three segments, with mix deterioration a key driver of the consolidated operating margin decline. Concentration risk is noteworthy, as Global Gaming accounts for 68.0% of revenue and nearly all profits.
【Profitability】Operating margin 7.9% worsened by 5.1pt from 13.0% prior year; Net Income margin 10.1% improved by 3.1pt from 7.0%, though improvement chiefly reflected one-off Special Gains of ¥33.0 B. ROE 8.9% declined versus prior estimate, driven mainly by lower Total Asset Turnover 0.60x (prior year 0.77x). 【Cash Quality】Operating Cash Flow (OCF) ¥58.8 B is 1.85x Net Income ¥31.8 B, indicating good quality; OCF/EBITDA 1.88x is robust. Accrual ratio -2.3% shows healthy cash conversion. 【Investment Efficiency】Total Asset Turnover 0.60x slowed from 0.77x. Inventory ¥89.3 B (prior year ¥106.4 B) decreased but inventory days (DIO) remain extended due to lower sales. Trade receivables ¥57.1 B (prior year ¥54.1 B) slightly increased, with DSO approx. 66 days indicating extended credit terms. 【Financial Soundness】Equity Ratio 68.6% (prior year 64.9%, +3.7pt) improved. Interest-bearing debt ¥82.0 B (long-term borrowings ¥19.2 B + bonds ¥60.0 B + short-term borrowings equivalent ¥12.0 B) yields Debt/EBITDA 2.6x and Interest Coverage (EBIT/interest expense) 25.1x, conservative levels. Current ratio 574%, Quick ratio 456% indicate very strong short-term liquidity. Investment securities expanded materially to ¥36.3 B (prior year ¥9.5 B, +282%), increasing both investment income potential and valuation volatility risk.
OCF was ¥58.8 B (prior year ¥76.4 B, -23.1%). Starting from Profit before tax ¥68.0 B, addbacks included Depreciation ¥6.3 B. Working capital contributions included inventory decrease +¥42.8 B, while changes in trade receivables were broadly neutral and decrease in trade payables -¥9.2 B was a negative contributor. After income tax payments -¥9.1 B, OCF totaled ¥58.8 B. Investing Cash Flow was positive ¥7.4 B, driven by proceeds from sale of fixed assets ¥51.1 B (mainly land sale ¥32.8 B), which outweighed capital expenditures -¥9.3 B and purchases of investment securities -¥40.9 B. Financing Cash Flow was -¥31.4 B, primarily due to long-term debt repayments -¥15.0 B and dividend payments -¥15.1 B. Free Cash Flow (OCF + Investing CF) was ample at ¥66.2 B, sufficient to cover dividends and debt repayments, building Cash and Cash Equivalents to ¥217.4 B (prior year ¥174.6 B, +¥42.8 B). OCF/Net Income 1.85x is strong, but this period was materially influenced by one-off proceeds from fixed asset sales; sustainable cash generation will depend on future OCF trends. Cash Conversion Cycle (CCC) deteriorated due to extended inventory days and DSO, making inventory optimization and tighter credit management key to sustained cash flow improvement.
Of the Net Income ¥31.8 B, Special Gains ¥33.0 B (mainly gain on sale of fixed assets ¥32.8 B) account for approximately 103.8%, indicating heavy reliance on one-off factors exceeding recurring earnings power. With Operating Income ¥25.0 B and Ordinary Income ¥35.2 B, the elevated Net Income reflects significant one-offs and implies low quality of earnings. Non-operating income ¥11.8 B includes foreign exchange gains ¥6.8 B, which is roughly 27.2% of Operating Income and indicates earnings volatility from FX. Non-operating expenses were modest at ¥1.5 B, centered on interest expense ¥1.0 B. Accrual ratio -2.3% signals strong cash realization, and OCF ¥58.8 B / Net Income ¥31.8 B = 1.85x supports high cash quality. However, the difference between Comprehensive Income ¥51.0 B and Net Income ¥31.8 B (¥19.2 B) reflects Other Comprehensive Income contributions such as valuation differences on securities ¥4.0 B and foreign currency translation adjustments ¥0.1 B, indicating valuation effects. Overall, there is a material divergence between recurring operating/ordinary earnings and Net Income, posing a risk that Net Income levels could decline once one-off items dissipate.
The company’s plan for FY2026 is Revenue ¥390.0 B (YoY +23.6%), Operating Income ¥30.0 B (YoY +20.1%), Ordinary Income ¥31.0 B (YoY -12.1%), Net Income attributable to owners of the parent ¥23.0 B, EPS ¥84.79, and dividend ¥20.00. The company assumes an Operating margin of 7.7%, roughly flat versus this year’s 7.9%, implying profit expansion driven by revenue growth. The projected YoY -12.1% decline in Ordinary Income likely incorporates a reversal of this year’s ¥6.8 B foreign exchange gains and other non-recurring non-operating income. Net Income is planned at ¥23.0 B (from ¥31.8 B this year, -27.7%), reflecting the assumed loss of special gains and a return to recurring earning power. Progress against the plan stands at Revenue 81.0% (¥315.6 B/¥390.0 B) and Operating Income 83.3% (¥25.0 B/¥30.0 B), generally on track, but achieving second-half targets (Revenue ¥74.4 B and Operating Income ¥5.0 B) will require continued Global Gaming growth and profitability improvement in the currently loss-making segments.
The annual dividend is ¥40.00 (interim ¥20.00, year-end ¥20.00), a large increase from prior year ¥14.00 (+185.7%). Payout Ratio is 25.3% (Total dividends ¥13.5 B / Net Income ¥46.9 B; using XBRL-based Net Income ¥31.8 B the payout ratio is 42.4%) and considered appropriate, with dividend-to-Free Cash Flow ratio 20.4% (dividends / Free Cash Flow), providing ample coverage. Next fiscal year’s forecast dividend is ¥20.00, which implies a payout ratio of 23.6% on forecast EPS ¥84.79, slightly lower than this year. There were effectively no share buybacks this period (purchase amount ¥0.0 B), so the total return policy is dividend-focused. Dividend sustainability appears high given OCF ¥58.8 B and cash ¥217.4 B, but maintaining dividends will depend on stable OCF given projected declines in Ordinary Income and Net Income due to the loss of one-off gains.
Segment & Customer Concentration Risk: Global Gaming accounts for 68.0% of Revenue and almost all Operating Income, leaving the company vulnerable to demand cycles in that market and to procurement policy changes by major customer Aristocrat Technologies (sales approx. ¥43.3 B, 13.7% of total). Continued losses in the other three segments impede revenue diversification and lower resilience.
Inventory & Working Capital Risk: Inventory ¥89.3 B equals 28.3% of Revenue, a high level with prolonged DIO. Risk of inventory obsolescence and valuation losses is elevated; CCC is estimated at 291 days and trending longer. Trade receivables ¥57.1 B (DSO approx. 66 days) extend credit exposure, increasing bad debt risk and slowing cash conversion, which pressures financial efficiency.
FX & One-off Income Dependence Risk: Foreign exchange gains ¥6.8 B represent about 27% of Operating Income ¥25.0 B, indicating material earnings sensitivity to FX. Moreover, Special Gains ¥33.0 B account for approx. 104% of this year’s Net Income ¥31.8 B, creating a large gap with recurring earning power. If one-off gains disappear, Net Income could drop substantially.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 7.9% | 7.8% (4.6%–12.3%) | +0.2pt |
| Net Income Margin | 10.1% | 5.2% (2.3%–8.2%) | +4.9pt |
Operating margin is roughly in line with the industry median; Net Income margin substantially exceeds the median but is driven by temporary special gains and therefore less sustainable.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | -16.6% | 3.7% (-0.4%–9.3%) | -20.3pt |
Revenue growth is well below the industry median, with Domestic Commercial and Amusement Hall Equipment contractions showing relatively weak growth within the sector.
※Source: Company compilation
Room to improve operating earning power and segment mix: Operating margin 7.9% is near the industry median but deteriorated -5.1pt YoY. Structural reform and monetization of the three loss-making segments (Domestic & Overseas Commercial, Amusement Hall Equipment) are key to restoring consolidated margins. Maintaining Global Gaming’s high 23.4% margin while narrowing losses in other segments could enable a return to double-digit operating margins.
Improve inventory and working capital efficiency to boost capital efficiency: Inventory ¥89.3 B (28.3% of Revenue) and DSO ~66 days are pushing up CCC; inventory optimization and tighter credit controls could compress working capital and improve ROIC. Strong cash conversion ability (OCF ¥58.8 B / EBITDA 1.88x) can support initiatives to improve working capital efficiency and thereby financial quality in subsequent periods.
Return to recurring earnings post one-off gains and dividend sustainability: Because Special Gains ¥33.0 B comprised the bulk of this year’s Net Income ¥31.8 B, next year’s plan (Net Income ¥23.0 B) assumes a return to recurring earnings. With a forecast payout ratio 23.6% and healthy cash balances ¥217.4 B and OCF ¥58.8 B, dividend sustainability appears high, but maintaining or growing dividends depends on operating-level earnings improvement.
This report was automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are company-compiled reference data based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.