The Sailor Pen Co.,Ltd.

Business Details

Manufactures and sells writing instruments such as fountain pens, ballpoint pens, and mechanical pencils, and conducts Stationery Procurement & Sales. Leverages the world's only "21K gold nib" as a technological advantage; domestic sales operations are outsourced to Plus Corporation, while overseas sales are handled through Sailor Pen Europe SAS (European subsidiary). Revenue is driven by high value-added products for the domestic collector segment and high-priced products overseas (particularly in Europe). In the first quarter of FY2026 (ending December 2026), segment profit improved significantly due to extremely strong sales in the European market and improved product mix.

Recent Overview

In Q1 FY2026, the Stationery Business posted revenue of ¥957 million (up 10.7% year-on-year) and segment profit of ¥89 million, a substantial improvement.

In the first quarter of FY2026 (ending December 2026) (January to March 2026), the Stationery Business saw extremely strong sales in the European market, driving overall overseas market performance. Demand in the North American market also turned toward recovery, and the company began developing new markets in Central and South America, centered on Brazil. Sales weakness continued in China due to the economic slowdown there. Domestically, product mix improved through appeal of the "21K gold nib" and expanded sales of non-gold nib material products. Cost reduction through optimal allocation of manufacturing personnel and expenses, as well as price revisions for some products, also proved effective, resulting in segment profit increasing substantially from ¥31 million in the same period of the prior year to ¥89 million.

Key Products

Growth Drivers

• Continued extremely strong sales of high-priced fountain pens in the European market (driving the overall overseas market)
• Recovery trend in demand in the North American market and progress in developing new markets such as Central and South America
• Improved product mix through focus on high-priced limited edition products and high-end models for collectors
• Improved profit margins through expanded sales of non-gold nib material products (such as the TUZU Series)
• Implementation of cost reduction measures such as controlling labor and other expenses through optimal allocation of the manufacturing department
• Expanded sales of the "Que Será Ballpoint Pen" (launched February 2026), jointly developed by three Plus Group companies
• Plan to double overseas Shop-in-Shop format permanent stores from 4 to 9 stores, and expanded brand touchpoints through exhibiting at pen shows in various countries
• Rationalization of production and inventory reduction through system and data integration in executing PSI-linked production planning

Risks

• Continued significant rise in raw material prices, primarily gold bullion, pressuring the cost structure of 21K gold nib products
• Continued sales weakness in China due to the economic slowdown there
• Risk of sluggish sales of standard domestic gold nib fountain pens due to prolonged slowdown in personal consumption from rising prices
• Risk of deferred investment decisions in the North American market due to trends in U.S. tariff policy
• Foreign exchange risk (rising raw material and energy costs due to yen depreciation)
• Existence of material events related to the going concern assumption (consecutive operating losses and net losses recorded in past full fiscal years), resulting in a fragile financial base for the group as a whole

Business Details

Designs, manufactures, and sells automatic extraction robots (Extraction Machines) for plastic injection-molded products and Custom-Order Automation Equipment (order-made equipment such as secondary and tertiary process automation, stocking equipment, and FA systems). While the domestic market is the primary focus, overseas expansion into the U.S. and Southeast Asia is being promoted. The consolidated subsidiary THE SAILOR (THAILAND) CO., LTD. handles overseas sales. The segment leverages its track record and technical expertise in the medical and food-related equipment fields as a strength, and also handles repair parts sales and maintenance.

Recent Overview

Revenue increased 27.2% year-on-year, driven primarily by extraction robots, but the segment continued to post a loss

In the first quarter of FY2026 (ending December 2026) (January to March 2026), revenue in the Robotics Equipment Business was ¥345 million (up 27.2% year-on-year), a substantial increase, driven primarily by growth in extraction robots. Domestically, while companies remained cautious about capital investment amid rising prices, the company conducted aggressive sales activities centered on the medical and food-related equipment fields. Overseas, while some deferral of investment decisions was observed due to tariff trends and concerns about an economic slowdown, the company accelerated sales activities in the U.S. market and promoted new customer acquisition. The segment loss improved to ¥52 million from ¥59 million in the same period of the prior year, but losses continued to be recorded.

Key Products

Growth Drivers

• Upward trend in revenue centered on extraction robots (up 27.2% year-on-year in Q1 FY2026, ending December 2026)
• Expectations of increased demand for production line automation and capital investment appetite as manufacturing returns to the U.S. amid the Trump administration's tariff policy
• Acceleration of local sales activities in the U.S. market and aggressive promotion of new customer acquisition
• Deepening of existing customer relationships and horizontal expansion to new customers based on extensive track record and technical expertise in the medical and food-related equipment fields
• Expansion of high value-added solutions such as predictive maintenance and smart factory proposals utilizing IoT and AI
• Differentiation from competitors through package proposals ranging from extraction machines to automated equipment
• Expansion of demand for labor-saving and unmanned equipment amid the worsening labor shortage in the manufacturing and logistics industries

Risks

• Structural risk of performance being significantly affected by domestic and overseas capital investment trends (companies continuing a cautious stance on capital investment)
• Deferral of customer capital investment decisions due to geopolitical risks such as U.S. tariff policy and concerns about an economic slowdown
• High volatility in revenue for Custom-Order Automation Equipment due to its order-based business model, resulting in high uncertainty in achieving plans
• Risk of rising prices and supply constraints for raw materials such as semiconductors and electrical components
• Continued recording of segment losses, with revenue scale remaining insufficient relative to the fixed cost burden
• Time and cost required to build sales structures and strengthen partnerships in overseas markets (U.S. and Southeast Asia)