About Us

Under the previous Medium-Term Management Plan (announced in May 2024), the period from the FY2023 toFY2024, was positioned as brand-building years to raise the brand recognition and favorability of Ultraman. The plan envisioned transitioning to a growth phase from the fiscal year ending March 31, 2026, onward.
During this period, while we made steady progress in preparing content to enhance medium- to long-term IP value, these efforts did not sufficiently translate into short-term IP value enhancement or monetization. Furthermore, performance in Japan—our home market—and China—the primary driver of our growth—deviated from our initial projections. As a result, the anticipated smooth transition to the growth phase stalled, and operating income fell significantly short of our targets, leaving clear challenges to be addressed.
Reflecting on these outcomes, we have thoroughly analyzed and incorporated the lessons learned from the previous medium-term management plan to formulate a new plan. Through this approach, we aim to restore sustainable growth.

Created by Eiji Tsuburaya, Ultraman has evolved into a global IP over the nearly 60 years since its inception, now boasting a massive global fanbase of over 100 million people, primarily centered in Asia. The franchise has gained widespread acclaim for its visual works; notably, the title streamed on Netflix recorded approximately 20 million views worldwide, capturing the No. 2 spot on the global ranking and breaking into the Top 10 in 69 countries and regions, demonstrating a truly global presence.
By region, Ultraman has established an extensive fan foundation with approximately 100 million fans in China, 50 million in Southeast Asia, and a solid 4 million in its home country of Japan, securing a strong brand awareness and dedicated following across these markets. Moving beyond its domestic roots, Ultraman has firmly established its status as a premier global IP, holding immense potential for future expansion.

In the Japanese market, despite the consistent annual release of the latest TV series, challenges remain in acquiring new fans and sustaining audience enthusiasm within its “home country.”
Among children, we have not fully captured our primary target demographic of 3- to 6-year-olds. Viewership ratings have remained low, and our reach is limited compared to competing children's programs. Furthermore, among adults, we have been unable to sustain the temporary surge in interest generated by SHIN ULTRAMAN, leading to an overall downward trend in engagement.
Consequently, despite our continuous content rollouts in Japan, we have yet to achieve sufficient results in expanding our fanbase or maintaining audience enthusiasm across both child and adult demographics.

Broadcast during prime time since the 1990s, a period with few competing “tokusatsu” heroes, Ultraman built a definitive brand identity as the iconic hero in the Chinese market. Today, the franchise maintains deep-rooted popularity through new content releases and theme park developments, sustaining a highly stable fan foundation.
On the other hand, analyzing IP engagement levels within China reveals that a significant gap still exists compared to other major global IPs, leaving room for improvement in capturing mainstream mass-market interest.
Consequently, while the Chinese market already possesses strong brand awareness and a dedicated following, it is strategically positioned as a market with immense potential for further engagement and future growth.

In the Chinese market, we have achieved growth by balancing IP cultivation with business expansion through a close collaboration with our local partner, SCLA. In particular, the massive success of trading cards and block toys spearheaded this growth, contributing to rapid revenue expansion and the establishment of a robust business foundation.
On the other hand, a backlash from this rapid growth driven by these hit products, combined with a contraction in the broader Chinese trading card market, has led to a temporary market downturn in recent months.
However, our previous initiatives have steadily built a solid licensee base. Through ongoing business execution in tandem with our partner, we expect to leverage this stable foundation to transition into a renewed growth phase. Moving forward, we plan to roll out new growth strategies built upon this established business foundation, aiming for further expansion within the Chinese market.

In the Southeast Asian market, since the 2010s, we have achieved simultaneous broadcasts (“simulcasts”) aligned with Japan's release timing, while also actively driving digital expansion through platforms such as YouTube. This has secured wide-ranging viewing opportunities, enabling us to build a massive fanbase that now exceeds 50 million people.
Furthermore, we are deepening our local market penetration by delivering dubbed simulcasts across six countries and regions. In tandem with these digital efforts, we have been building multifaceted audience touchpoints through live entertainment and hero shows, expanding these physical events to six or more countries and regions as well.
Through this dual strategy of combining video distribution with live events, we have successfully formed a highly stable fan foundation throughout Southeast Asia.

While business progress, potential, and challenges differ across regions, the Group as a whole has not achieved sufficient results in either “value creation” or “monetization.”
In Japan—the home country of the IP responsible for content creation and rollout—revenue has remained flat due to stalled growth in fanbase expansion and audience enthusiasm.
China stands as a profitable market with a massive fanbase and partner foundation; however, the business environment changes rapidly, demanding continuous new value creation. In Southeast Asia, while we have built a broad fan foundation through dubbed simulcasts, product supply and localization tailored to individual markets remain insufficient.
Taking these factors into account, our current challenges can be distilled into two primary areas: a “shortfall in monetization” resulting from an inability to provide sufficient products and services to our fanbase, and a “shortfall in value creation” due to our limited capacity to generate content that appeals to both existing and new audiences.

To achieve the goals of this Medium-Term Management Plan, we will clarify and execute specific initiatives tailored to address the two challenges identified in our review: the “shortfall in monetization” and the “shortfall in value creation.”
To resolve the “shortfall in monetization,” we will focus heavily on steadily converting the inherent potential of our IP into revenue. Specifically, by strengthening our licensing business to meet fan needs and expanding our proprietary merchandising (MD), we will capture previously untapped demand and directly translate IP value into financial returns.

Under this Mid-Term Management Plan, our core policy is to steadily drive practical and realistic initiatives, aiming to maximize IP value and achieve sustainable growth.
Specifically, we will adopt a growth strategy on a global scale: initiating the recovery and reinforcement of our business foundation from our “home country” of Japan and subsequently expanding our reach into broader Asian markets.
Through this approach, we intend to leverage the unique characteristics and strengths of each region, ultimately realizing our evolution into a global IP with Asia as the launchpad.

Under this Medium-Term Management Plan, we will drive “10 Initiatives” comprising the dual pillars of “Monetization” and “Value Creation” to achieve our targets over the next three years.
To achieve “Monetization of IP Potential,” we will position the strengthening of our licensing business and the expansion of proprietary products as our core pillars, seeking to expand revenue opportunities through sales reforms and deeper partner relationships. Furthermore, we will enhance our product development and supply capabilities by launching full-scale proprietary merchandising (MD) and establishing an AI-driven supply chain. In tandem with these efforts, we will leverage AI to advance our business processes, thereby accelerating the speed and efficiency of our monetization.
Meanwhile, for “Strengthening and Expansion of IP Value,” we will continuously strengthen the appeal of our IP by rolling out content that elevates audience enthusiasm and expansion of everyday touchpoints. Specifically, we aim to deepen the fan experience through continuous storytelling and enhanced visual content rollouts, while extending our reach through strengthened digital marketing and live events. Furthermore, by developing IP reboots and collaborative projects with other IP, we will aim to acquire new fan demographics and expand overall brand value.
By organically linking these 10 Initiatives, we will simultaneously realize both IP monetization and value creation, establishing a rock-solid foundation for medium-term growth.

To achieve “Monetization of IP potential,” we will reinforce our revenue foundation with a primary focus on our licensing business and the expansion of proprietary products.
In our licensing business, we will enhance our proposal capabilities and productivity through sales reforms, while expanding our market execution power by strengthening relationships with partners. Through these efforts, we aim to deepen our presence in existing domains and generate new revenue opportunities.
In addition, we will drive the full-scale expansion of our in-house merchandise (MD) business, leveraging our strengths as an IP holder to develop unique products and directly strengthen revenue generation. In tandem, we will establish an AI-driven supply chain to increase speed and flexibility throughout the entire process—from product planning to production and supply.
Furthermore, by upgrading business processes through AI utilization, we will streamline and upgrade a series of operations, including marketing, proposals, and contract management, thereby improving both the accuracy and speed of our monetization.
Through these combined initiatives, we are committed to securely converting the inherent value of our IP into revenue, realizing sustainable financial growth.

Looking at the trends of market sizes in Japan and China, the Japanese market outperformed China a decade ago. However, due to the subsequent rapid growth of the Chinese market, a massive gap of more than tenfold has emerged today. Currently, while the Chinese market has expanded to a scale of approximately 150 billion yen, the Japanese market remains at around 15 billion yen, highlighting a significant gap in market scales.
Taking these circumstances into account, our medium-term objective is to revitalize and realize renewed growth in our “home country” of Japan, aiming to expand it to a scale comparable to the Chinese market. Consequently, rebuilding the Japanese market is positioned as one of the most critical themes in our future growth strategy.

Under Initiative 1, we will implement sales reforms and AI utilization to build a robust sales operations foundation, with the goal of improving sales productivity within the domestic licensing business.
Specifically, we will expand product rollouts by reviewing our sales strategies, and enhance our sales proposal capabilities through the sophistication of category strategies and account management. Concurrently, we will develop and pioneer new retail floor touchpoints to expand business negotiation opportunities.
Furthermore, we will introduce digitalization and AI into a series of processes—including style guides, product supervision, contract and accounting management, and proposal operations. This will streamline and shorten routine tasks and decision-making processes, thereby securing more active working hours for our sales representatives.
Through these initiatives, we will enhance sales productivity by increasing the number of business negotiations, closing rates, and contract values, ultimately realizing revenue expansion and establishing a sustainable foundation for growth.

Under Initiative 2, we will further strengthen our relationship with our local partner, SCLA, in China—a crucial market for us—aiming to achieve renewed growth not only in Japan but also in China by balancing IP cultivation with business expansion.
Tsuburaya Productions will provide the core content and planning expertise that serve as the wellspring of IP value. This includes delivering video and creative assets, rolling out global marketing content, and handling merchandising (MD) design and planning.
SCLA will leverage its sales and execution power within the Chinese market. This includes building local retail shelf space and licensee networks, operating live events, and driving the media distribution of visual works.
Furthermore, we will enhance investments in promotional materials, designs, and MD aimed at expanding our target demographics. Concurrently, we will build a structure that maximizes the strengths of both companies by integrating our long-cultivated licensing sales and management expertise, licensing administration processes, and AI utilization for product supervision.
Through this collaboration, we will simultaneously drive IP value enhancement and revenue expansion in the Chinese market, establishing a foundation for sustainable growth.

Under Initiative 2, we will drive four priority initiatives aimed at achieving further growth in the Chinese market:
• Expansion of Brand Touchpoints: We will strengthen our influence among children by expanding offline events, forming collaborations with large-scale games, and publishing initiatives to deepen brand penetration across a broader audience.
• Expansion of Licensing Categories: We will cultivate licenses in new areas while expanding the market for the core adult fan and licensing into advertising areas, thereby diversifying our revenue streams.
• Promotion of Collaborations with Major IP: We will actively promote collaborative projects with other high-profile IP, seeking to acquire new fan demographics and expand our market presence through strategic partnerships.
• Licensee Assistance: We will boost product development and sales capabilities by delivering new assets and strengthening our strategic planning proposals to licensees.
By implementing these initiatives, we expect both IP value enhancement and revenue expansion in the Chinese market, aiming for a 5% to 10% year-on-year revenue growth in FY2027.

Under Initiative 3, we will drive the full-scale expansion of our in-house product development to maximize IP value.
For our existing fans, we will leverage our unique strengths as an IP holder to deliver high-value-added products that meet and exceed their expectations. Specifically, we will roll out a diverse product lineup—including stylized collectible figures, large figures/ collectors items, fashion toys, key chains and bag charms—to satisfy the increasingly sophisticated purchasing needs of our fanbase.
In addition, through our in-house MD, we will strengthen our approach to new fan demographics that we have not fully reached in the past, seeking to create fresh demand and expand our target audience. We will focus on capturing new fan segments, particularly teenagers and adult women audiences, to broaden the overall footprint of the IP.
Through these dual initiatives, we will simultaneously maximize revenue from existing fans and generate new demand, aiming to elevate IP value and reinforce our revenue foundation.

In the development of the in-house merchandise, products with cute designs are popular, particularly among women, and are sold out in succession. The high demand is visibly evident, with items out of stock on both our e-commerce site and physical retail stores.
As concrete examples, plush toys and character collaboration items have demonstrated exceptional sales performance, with event-exclusive products completely selling out within a short period, highlighting the massive potential of our proprietary MD.
Building upon these achievements, we will expand our product rollouts specifically targeting new demographics, such as “adult women.” By capturing this previously untapped demand, we aim to drive further market expansion and revenue growth.

Under Initiative 4, we will establish an AI-driven supply chain to build a structure capable of rapid planning-to-production execution.
Specifically, we will utilize AI to detect early signs of market trends and reflect them in our product planning, enabling development that precisely captures market needs. Furthermore, by leveraging AI-driven design generation, we will create diverse design variations in a short timeframe, streamlining and advancing our planning and engineering processes.
In addition, we will build a manufacturing system linked with AI, enabling flexible, low-volume, high-mix production and strengthening our ability to respond rapidly to market shifts.
Through these initiatives, we will exponentially accelerate speed across all processes— “Trend Detection,” “Planning and Design,” and “High-Mix, Low-Volume Production.” This will drastically shorten time from concept to market rollout, building a highly competitive business foundation.

Under Initiative 5, we will introduce AI into key operations across core licensing sales and in-house MD development, aiming to standardize and upgrade our entire operational process.
We will establish an end-to-end support system that spans from analysis, planning, to deal execution and contract operations, seamlessly driving the following four core processes:
1. Market and Customer Analysis: We will collect market/category data to pinpoint customer needs and identify optimal sales prospects.
2. Planning and Proposals: We will streamline the creation of strategic proposal scenarios and innovative product concepts.
3. Commercialization and Deal Execution: We will visualize the commercialization process and progress management, while enhancing the sharing of partner interaction history.
4. Operations and Contract Management: We will elevate operational precision by organizing contract terms, aggregating sales and royalty results, and managing renewal and terms-change alerts.
Through these initiatives, we will accelerate IP monetization by increasing the proposal volume, close rates, and commercialization speed, thereby enhancing productivity and strengthening competitiveness across the entire business.

To achieve “Strengthening and Expansion of IP Value,” we will continuously elevate the appeal of our IP by focusing on content rollouts that build audience enthusiasm and expand everyday touchpoints.
First, by introducing continuous story arcs, we will ensure consistency and continuity within the franchise’s universe. Simultaneously strengthening our visual content rollouts will maximize fan immersion and foster long-term relationships, delivering a continuous and deeply engaging content experience rather than isolated releases.
In addition, we will increase daily contact with our audience by reinforcing digital marketing. Synchronizing information delivery and content streaming with our visual works, products, and live events will boost interaction frequency and audience engagement.
Furthermore, we will expand audience touchpoints and strengthen community bonds by delivering unforgettable physical experiences through the strategic rollout of live events.
Finally, we will drive IP reboots and collaborative projects with other major high-profile IPs to generate fresh expressions and value, strategically capturing new fan demographics that we have not previously reached.
Through these comprehensive initiatives, we will multi-dimensionally enhance the value of our IP while expanding our global fanbase, driving sustainable and long-term growth.

Under Initiative 6, we will drive continuous storytelling based on a unified universe to ensure fans can enjoy the franchise over the long term.
Specifically, we will roll out the TV series consistently over multiple years, establishing meaningful connections between titles. This approach will sustain audience interest without interruption, delivering a long-term viewing experience. Concurrently, we will release theatrical feature films linked to each series to create broader story expansion and deeper narrative layers.
Furthermore, we will generate regular excitement, buzz, and new fan acquisition by releasing a movie every summer. By integrating TV series with theatrical releases, we will establish a structured cycle that continuously and periodically brings fans back to the franchise.
Through these initiatives, we aim to transition away from isolated content releases, shifting instead to fostering long-term fan relationships and sustainably elevating our IP value.

Under Initiative 7, we will center our strategy on visual content rollouts to boost interaction frequency and fan engagement, aiming to cultivate embedded viewing habits through two core axes: “Every Week” and “Every Summer.”
Specifically, anchored by the weekly broadcast of the TV series, we will link to digital marketing to spark real-time buzz, fostering habits of viewing behavior. We will also combine time-shifted viewing with related content rollouts to create ongoing opportunities for continuous audience exposure to the franchise. On the other hand, positioned as our second major pillar, the theatrical feature film released every summer will leverage the massive buzz and drawing power of large-scale visual works to generate regular excitement.
Furthermore, we will reinforce user pathways that encourage reconnection with the franchise’s universe. This will be achieved by combining the streaming of past titles, TV broadcast compilation specials, and the digital distribution of spin-off side stories.
Through these combined initiatives, we will realize a dual habituation model— “returning to the TV every week” and “returning to the movies every summer”—securing continuous fan involvement and maximizing overall IP value.

Under Initiative 8, we will construct build a digital marketing foundation focused on “constant connectivity” that cross-functionally connects video content, real-world experiences, and product sales, aiming to establish a framework for continuous, daily engagement with our audience.
Specifically, we will continuously generate and deploy short-form videos, games, and linked content to serve as "everyday touchpoints." This will increase interaction frequency with current fans while expanding our reach to new audiences. These contents will be created efficiently and at scale by leveraging a dedicated content production platform that combines generative AI with Tsuburaya’s rich IP assets.
Furthermore, we will accumulate user data gathered through content virality and distribution, channeling these insights back into product planning and marketing strategies to drive highly precise execution.
By establishing this continuous cycle of content generation, virality, and data utilization, we will secure a robust marketing foundation built around everyday touchpoints, ultimately expanding our fanbase and elevating overall IP value.

Under Initiative 9, we will place a strong emphasis on the unique value that physical venues deliver to audiences, continuously promoting the expansion of touchpoints through live events.
Specifically, we will host fan events, stage events, music concerts, free shows, and character meet-and-greet sessions on a nationwide scale, creating robust engagement opportunities across wide-ranging regions. Furthermore, we will anchor major cities like Tokyo and Osaka with large-scale flagship events during the summer and New Year holidays, establishing regular hubs to draw crowds and deepen relationships with our fanbase.
Through these combined efforts, we aim to expand our current live audience touchpoint scale from approximately 700 thousand to an ambitious 7 million in the future. Moving forward, we plan to strengthen links between live events, content creation, and digital marketing, enhancing experiential value by fusing the physical and digital realms to drive the further expansion of our IP value.

Under Initiative 9, focusing heavily on the immense impact that real-world interactions deliver to audiences, we will drive the rollout of live events across multiple international locations, expanding well beyond the domestic market.
We will actively deploy fan events and stage shows in Asian markets—including China, Thailand, Malaysia, Taiwan, and Indonesia—as well as in North America and Europe, expanding our real-world audience touchpoints on a global scale. Through these efforts, we aim to reinforce direct relationships with local fans while driving broader IP awareness and elevating audience enthusiasm across each region.
Furthermore, rather than treating these live events as isolated occurrences, we will interconnect them with content creation and digital marketing moving forward. By designing seamless touchpoints that cross online and offline channels, we aim to deliver an even higher level of experiential value.
Through these comprehensive initiatives, we will expand our audience touchpoints on a global scale, leading to the further enhancement of our IP value and sustainable long-term growth.

Under Initiative 10, expanding far beyond the realm of visual media, we will drive collaborations with top-tier creators to unlock new IP value and expand our fan demographics.
Specifically, we will foster partnerships with leading creators across diverse fields—such as fashion, art, and design—to infuse the traditional image of Ultraman with fresh interpretations and artistic expressions, thereby redefining the appeal of the IP. Through this approach, we will successfully capture the interest of new audiences who previously had limited contact with the brand, while continuing to engage our loyal core fanbase.
Furthermore, through strategic IP reboots, we will reconstruct our historic heritage to align with contemporary values. By reintroducing these assets to the market in a modern context, we will elevate the franchise’s relevance, freshness, and competitive edge.
By expanding the boundaries of our IP's expression through these initiatives, we will accelerate new fan acquisition and drive sustainable, long-term growth.

Under this medium-term management plan, our immediate primary objective over the next three years is to establish both a robust “monetization” and a “value-creation platform” for Tsuburaya IP. Centered on the dual axes of ”Monetization of IP Potential” and “IP Value Creation Platform,” we will drive global rollouts through Asian markets, initiated by the revitalization of our domestic operations in Japan.
Throughout this process, we will multi-dimensionally reinforce our IP growth foundation by simultaneously deepening engagement with existing customers and expanding brand value toward new audiences.
Furthermore, leveraging the foundations established during this three-year period, we aim to extend our scope beyond Tsuburaya IP during the subsequent mid-term management plan period, building an ecosystem capable of cultivating multiple diverse IPs.
Through this strategic evolution, we intend to transform into a true “IP Platformer”—one that not only drives the growth of our own brands but also contributes to cultivating the value of third-party IP—thereby accelerating our mid- to long-term growth.

The ultimate core strength cultivated under this medium-term management plan lies in the powerful synergy of multiplying our “Asia Expansion Capabilities” with “AI-Driven Speed.”
First, by leveraging our established business foundations and partner networks across Asia, we possess a massive advantage in seamlessly deploying products and content in each market. Specifically, we already own the infrastructure tied directly to monetization—including exclusive partner networks, proven formats for merchandising (MD) and live entertainment, and secured retail shelf space as sales channels.
Concurrently, by incorporating AI, we will achieve overwhelming speed across all processes, including content generation, virality, MD development, product supply, and licensing operations. This enables us to drive our business efficiently and agilely while responding instantly to rapid market shifts. By multiplying these two core strengths—Asia x AI—we will establish a unique competitive advantage capable of scaling and sustaining our IPs over the long term.
Through this approach, we will realize our evolution into an IP Company dedicated to cultivating IPs to be longer-lasting and larger-scale.

As our future vision, we will first establish comprehensive IP value enhancement know-how, built upon the revenue foundation and value-creation models cultivated through Tsuburaya IP. Moving forward, we aim to evolve into a strategic partner enterprise that scales beyond our in-house brands to acquire third-party IP, collaboratively nurturing and growing multiple IP simultaneously.
Specifically, we will maximize IP value by integrating the following core functions: initiating IP acquisition through investments in production and creation; generating market peaks via high-quality video content and live events; expanding brand awareness and keeping IP freshness through digital marketing; and deploying advanced merchandising (MD) development capabilities to quickly bring market-ready products to market.
Furthermore, we will drive global monetization by leveraging our proprietary channels, which possess a distinct competitive advantage even in challenging markets such as China and Southeast Asia.
By highly interconnecting this series of processes under our core strengths of “Asia × AI,” we will seamlessly achieve everything from brand awareness expansion to monetization. Ultimately, we are committed to establishing our position as a premier “IP Platformer” that elevates the value of both our own and third-party IP on a global scale.

In the content and digital business segment, we will drive revenue expansion in China and Southeast Asian markets by reinforcing the revitalization of our domestic operations in Japan and strengthening our IP value-creation initiatives. Through these strategic efforts, we aim to achieve an operating profit of 5,000 million yen in three years.
Looking at recent trajectories, operating profit has gradually contracted from 4,370 million yen in FY2022, down to 930 million yen in FY2025. This medium-term management plan is firmly positioned to spark a powerful recovery and renewed growth from this baseline.
Specifically, we project a phased increase in profits according to the following roadmap:
• FY2026: 3,000 million yen
• FY2027: 3,700 million yen
• FY2028: 5,000 million yen
Through this trajectory, we aim to not only secure a short-term financial turnaround but also establish a robust foundation capable of supporting mid- to long-term revenue growth, ultimately realizing continuous profit expansion.

The pachinko and pachislot (PS) market has been fluctuating within a range of approximately 15 to 16 trillion yen, maintaining an overall resilient market environment.
Specifically, the market scale expanded steadily from 2022 through 2026, reaching a level of around 16 trillion yen. From 2026 onward, a slightly gradual contraction trend is projected; however, the market is expected to sustain a consistently high volume.
As demonstrated, despite certain fluctuations, the PS market possesses stable, long-term demand, positioning it as a business sector with a continuously robust market foundation.

Looking at trajectories in the number of parlors and installed PS machines, the total number of parlors is on a declining trend, whereas the number of machines per venue is expanding, reflecting a clear shift toward larger-scale operations.
Specifically, the number of venues has been decreasing since 2022, signaling ongoing store consolidation across the entire industry. Concurrently, the total number of installed PS machines has shown only a moderate decline, moving from 3.81 million units down to 3.15 million units during the same period.
As demonstrated, the industry structure is shifting toward a model that prioritizes greater efficiency through the consolidation of venues into larger-scale establishments. This trend is highly projected to continue moving forward.

Looking at trends in the number of parlors categorized by the number of installed units, while the total number of parlors across the entire industry is on a downward trend, the composition by scale shows a significant shift, pointing toward a consolidation into large-scale establishments.
Notably, large-scale locations with 800 units or more have grown consistently since 2022. Conversely, small-scale locations with fewer than 300 units have decreased sharply, confirming a clear ongoing process of store consolidation and weeding out.
Medium-scale locations (300 to 799 units) are also seeing a gradual decline. As a result, the overall industry footprint is shifting toward a concentration of larger locations.
Thus, while the total number of parlors is shrinking, consolidation into larger operations with greater customer appeal and higher efficiency is progressing, signaling a structural transition within the industry from quantity to quality.

Looking at unit sales trends, while the total unit sales for both pachinko and pachislot combined have been on a gradual mid- to long-term declining trend, the outlook moving forward is projected to remain largely flat.
Although unit sales do not represent a growth market, it is firmly positioned as a stable market that sustains a consistent scale. Consequently, rather than volume expansion, the key strategic themes moving forward will be enhancing value-added features and pursuing operational efficiency.

Under these environment conditions, the amusement equipment business segment has made steady progress with various initiatives based on the three-year business plan announced in May 2025.
Particularly in FY2025, our results greatly exceeded targets for the first year of the previous plan. This strong performance was driven by robust sales titled with leading IP experienced strong sales and we increased production of machines sold in the previous fiscal year in response to market demand.
Moving forward, we will pursue sustainable growth by rolling over (revising) our financial targets in light of the market environment and business progress from FY2026 and beyond. This business will continuously maintain its strategic positioning as a core operation that anchors stable profit generation for the entire Group.

The overall player population in the PS market is growing, with expansion among younger demographics serving as the primary driver of overall growth.
Despite temporary fluctuations, the total player population increased from 8.13 million in 2021 to 8.65 million in 2025, demonstrating a solid trajectory of recovery and expansion in recent years.
A breakdown by age group reveals that the number of younger players in their teens and 20s grew significantly from 1.64 million in 2021 to 2.19 million in 2025, representing a remarkably prominent growth rate compared to other generations. Concurrently, populations aged 30 and older have remained flat or shown only minor fluctuations.
As demonstrated, the expansion of the overall market is heavily supported by the influx of younger players, and capturing this younger demographic will continue to be a vital key for future growth.

In the amusement equipment business, we are committed to driving the revitalization and sound development of the industry, centering our future growth strategy on three primary axes: “Younger Demographics,” “IP,” and “AI.”
First, we position the acquisition of younger users as one of our most critical strategic themes, aiming to cultivate a next-generation fanbase focused on generation Z. This initiative will directly secure the sustainable, long-term growth of the future market.
To capture this younger demographic, we will reinforce the utilization of IP tailored to their preferences, driving IP-powered marketing strategies and expanding the multi-channel rollout of these IPs.
Regarding AI integration, we look beyond mere operational efficiency. We position AI as a true “game-changer” that will fundamentally transform the nature of development itself, enabling highly advanced and sophisticated product R&D.
By integrally executing these three strategic pillars, we will enhance the overall appeal of the industry, realize sustainable growth, and continuously sharpen our competitive edge in the amusement equipment business.

In the amusement equipment business, the results of our initiatives aimed at capturing younger demographics are becoming increasingly tangible. A landmark success story illustrating this trend is the launch of our PS machines based on the mega-hit franchise Tokyo Ghoul.
This has emerged as one of the definitive hit titles of 2025, capturing immense support from younger players. The data clearly underscores this success:
• Pachislot L Tokyo Ghoul: The younger demographic ratio reached a staggering 55%, significantly outperforming the overall pachislot industry average of 34%.
• Pachinko e Tokyo Ghoul: The younger demographic ratio stood at 35%, vastly exceeding the overall pachinko industry average of 11%.
These metrics confirm that utilizing IP with high affinity for younger audiences directly drives new player acquisition and contributes to the overall rejuvenation of the market.
Moving forward, we will continuously invest in securing youth-oriented IP and accelerating advanced product development. Through these strategic efforts, we intend to expand our next-generation fan base and ensure sustainable, long-term growth of the amusement market.

In the amusement equipment business, we are actively driving the development of PS machines based on popular IP to attract younger demographics.
Specifically, we have deployed titles utilizing IP with strong appeal to young adults, such as the pachislot machine L Tokyo Ghoul, and successfully launched both pachislot and pachinko titles into the market in 2025. Through these initiatives, we are encouraging the entry of a new fan base alongside our traditional user segments.
Leveraging IP targeted at younger generations is positioned as a key strategy to acquire new customers and revitalize the PS machine market.
Moving forward, we will continue to actively acquire and develop high-appeal IP for younger demographics, aiming to expand our next-generation fan base and achieve sustainable growth.

In the amusement equipment business, we plan to maintain a stable revenue base while continuing to achieve steady profit growth.
Most recently, operating income reached 15.27 billion yen in FY2024 and grew significantly to 19.88 billion yen in FY2025, demonstrating a steady enhancement in the business’s profitability.
Under the current medium-term management plan, we intend to sustain this growth momentum and expand operating income step-by-step, targeting 20.0 billion yen in FY2026, 22.0 billion yen in FY2027, and 24.0 billion yen in FY2028.
Backed by market stability, this business will continue to serve as a core pillar supporting the overall Group's earnings by balancing consistent profit growth with increased profitability.

Under the current medium-term management plan, we aim to achieve steady growth in both net sales and operating profit on a consolidated basis.
In terms of net sales, we plan to expand from 174.1 billion yen in FY2025 to 202.0 billion yen in FY2028, driven by a strategy to realize stable top-line growth.
Operating profit is also projected to increase from 17.4 billion yen in FY2025 to 25.0 billion yen in FY2028, ensuring robust overall earnings growth.
Ultimately, this plan outlines a strategy for powerful revenue and profit growth across the entire organization. We will achieve this by leveraging the stable growth of our core amusement equipment business as a financial foundation, while simultaneously driving high growth in the content and digital business.

Under the current medium-term management plan, we intend to drive corporate value by utilizing the cash generated by steadily growing earnings into restructuring IP businesses.
As primary drivers of corporate value, we place equal importance on enhancing both EPS (Earnings Per Share) and PER (Price Earnings Ratio).
To improve EPS, we will strengthen overall profitability. This will be achieved by securing stable profit growth centered on the amusement equipment business, alongside boosting the earnings contribution from the content and digital business.
Concurrently, to elevate PER, we will actively reinvest cash generated in initiatives to strengthen the capabilities of IP businesses, thereby raising future growth expectations. Furthermore, we will accelerate business growth across all domains by utilizing AI, leading to a further enhancement of corporate value.
Through these initiatives, we will establish a virtuous cycle of profit growth and strategic reinvestment as twin engines to achieve the sustainable enhancement of corporate value.

Under the current medium-term management plan, our policy is to deliver steady profit growth, while building the foundation to become an IP platformer.
Regarding operating profit, while the amusement equipment business will continue to support overall growth as a stable earnings bedrock, the expansion of the content and digital business will drive a structural transition into a balanced growth model powered by both core segments.

Under the current medium-term management plan, we have adopted capital allocation policies that prioritize investment in the growth of our IP business, aiming to realize sustainable profit growth and enhance corporate value.
Over the three-year period from FY2026 to FY2028, we project approximately 48 billion yen in operating cash flow, allocating up to 35 billion yen of this amount to strategic growth investments. Concurrently, we will implement shareholder returns, maintaining our policy of enhancing payouts supported by our profit growth.
By executing capital allocation that centers on growth investments for our IP business while maintaining a sound balance with shareholder returns, we will strive to maximize corporate value over the medium to long term.

Our policy is to strive for the further expansion of shareholder returns, rooted in our medium- to long-term profit growth.
As a proven track record, we have achieved consecutive dividend growth since FY2020, and consistently strengthened shareholder returns in alignment with our earnings growth.
Looking ahead, backed by steady profit growth, we aim to deliver stable and sustainable returns to our shareholders by driving continuous dividend increases.
Ultimately, by balancing business expansion through growth investments with proactive shareholder returns, we are committed to enhancing corporate value and maximizing shareholder returns over the long term.