In the current fiscal year, the domestic economy saw further normalisation of economic activities due to factors such as the reclassification of Novel Coronavirus (COVID-19)’s category to Class 5 under the Act on the Prevention of Infectious Diseases, and an improvement in the employment and income environment, including the highest rate of wage increase in 30 years in the annual spring wage negotiations, and at the same time, there were signs of a pick-up in personal consumption. On the other hand, growth in personal consumption remained subdued due to the effects of rising prices and monetary tightening, but service consumption showed a relatively steady recovery. Under these circumstances, in our mainstay pachinko business, the Group focused on grasping customer needs and profit opportunities accurately and improving our pachinko halls management capabilities. In addition, we increased the number of amusement machines installed by 1.6% compared to the previous fiscal year, expanding our revenue base by equivalent amount as opening one new hall. As a result, total revenue (gross pay-ins) increased by 10.0% year-on-year to ¥131,835 million and we believe we were able to firmly meet customer demand without falling behind the recovery trend in domestic economic activity. In the overseas business, the Gross Domestic Product (“GDP”) growth rates of Vietnam and Cambodia slowed as their economies were affected by the slowdown in the Chinese economy. Consequently, revenue from Dream Games, which operates amusement arcades in both countries, decreased by 1.3% year-on-year to ¥1,687 million.
