Financial Highlights: 3rd Quarter of the Fiscal Year Ending March 2019

Financial highlights for KOEI TECMO Holdings’ third quarter of FY2018 show a robust 11.5 % increase in net sales to ¥38,926 million versus ¥26,806 million in the same period of FY2017. Gross profit rose 16.1 % to ¥19,360 million, while operating income surged 24.9 % to ¥11,711 million, reflecting strong performance across entertainment and pachislot & pachinko segments. Net income climbed 2.5 % to ¥13,017 million, though it fell short of the ¥12,500 million forecast by 4.0 %. Segment analysis reveals entertainment sales at ¥35,389 million (12.4 % YoY), pachislot & pachinko at ¥1,287 million (74.4 % YoY), and a modest decline in amusement facilities sales by 6.0 %. Operating income from entertainment reached ¥10,938 million (28.1 % YoY), while pachislot & pachinko contributed ¥474 million (92.5 % YoY). Real estate and other segments showed mixed results, with real estate operating income falling 20.3 % and other segment income declining 90.6 %.

Balance‑sheet data as of December 31, 2018 indicate total assets of ¥116,220 million, down from ¥128,594 million at March 31, 2018, largely due to a reduction in current assets and investment securities. Current liabilities fell sharply from ¥11,027 million to ¥5,716 million, improving liquidity. Shareholders’ equity increased modestly from ¥113,178 million to ¥114,088 million. Net assets rose from ¥116,242 million to ¥109,561 million, reflecting changes in other comprehensive income and foreign‑currency adjustments. The company’s financial position remains solid, with a strong cash base of ¥5,120 million and a healthy equity cushion.