Heiwa Corporation

Business Details

This segment covers the development, manufacturing, and sale of Pachinko Machines and Pachislot Machines by the Company (Heiwa Corporation) and its consolidated subsidiaries Olympia Co., Ltd., Amtex Inc., and Olympia Estate Co., Ltd. It supplies products to domestic pachinko halls and operates under legal regulations such as the "Act on Control and Improvement of Amusement Business, etc." Major capital expenditure items consist of the purchase of molds, while working capital needs center on material and parts purchases, labor costs, and R&D expenses.

Recent Overview

Unit sales of both Pachinko and Pachislot Machines declined sharply, causing net sales and profit to plunge

In FY2026 (ending March 2026), the Amusement Machines Business saw unit sales of Pachinko Machines fall to 32 thousand units (down 22 thousand units year on year) and Pachislot Machines fall to 31 thousand units (down 19 thousand units year on year), a substantial decline for both machine types. As a result, net sales fell sharply to ¥27,482 million (down 39.6% year on year), and operating income plunged to ¥712 million (down 94.0% year on year). For Pachinko Machines, although the spread of Smart Pachinko and the active introduction of models equipped with Lucky Trigger 3.0 Plus continued, this did not translate into improved utilization, and the market environment remained sluggish. As a subsequent event, the Amusement Machines Business is scheduled to be transferred to a newly established company, "Heiwa Corporation," through a simplified incorporation-type company split effective October 1, 2026.

Key Products

Growth Drivers

• Maintenance of a firm utilization environment through the continued supply of highly topical models in the pachislot machine market
• Capturing demand for new models amid the ongoing spread of Smart Pachinko
• Improving product appeal through the creation of differentiated products and model development from the player's perspective
• Improving profitability through cost reduction via parts reuse, among other measures
• Faster decision-making and flexible response to changes in the business environment following the transition to an operating company structure under the holding company system

Risks

• Risk of fluctuation in Pachinko Machine and Pachislot Machine unit sales (both machine types declined sharply in FY2026, ending March 2026)
• Risk of changes to legal regulations such as the "Act on Control and Improvement of Amusement Business, etc."
• Risk of market contraction due to the continuing decline in the number of pachinko halls and the amusement-participating population
• Risk of deteriorating market conditions due to sluggish overall utilization of pachinko machines
• Risk of weak sales if the company fails to respond to rapid changes in player preferences
• Procurement risk arising from dependence on specific parts suppliers (e.g., disasters, bankruptcy)
• Risk of valuation losses on inventory due to future declines in demand