Universal Entertainment CorporationTSE: 6425

Financial Results Presentation Materials for the First Quarter of Fiscal Year 2026

· Issued by Universal Entertainment Corporation

‌Securities Code: 6425

Universal Entertainment Corporation First Quarter of Fiscal Year 2026

Financial Results Presentation Materials

May 14, 2026





‌Table of Content

1Q of FY2026

Financial Results Overview

Consolidated Statement of Income (Summary) Trend in Consolidated Earnings

Factors Affecting Changes in Adjusted EBITDA

Consolidated Balance Sheet (Summary)

4

5

6

7

1Q of FY2026 Overview Amusement Equipments Business

Overview and Outlook for 1Q of FY2026 Sales Volume

9

10

1Q of FY2026 Overview Integrated Resort (IR) Business

Overview and Outlook for 1Q of FY2026

(Reference) Revenue of TRLEI

12

13

Appendix

Consolidated Statement of Income Consolidated Balance Sheet

15

16

‌1Q of FY2026 Financial Results Overview



‌Consolidated Statement of Income (Summary)

(Millions of yen)

1Q of FY2025

Results

1Q of FY2026

Results

Variance

FY2026 Outlook

Net sales

27,280

28,434

+1,153

140,000

Operating profit

△2,512

3,497

+6,010

16,000

Operating profit margin

-

12.3%

-

11.4%

Ordinary profit

△12,319

△160

+12,159

2,200

Ordinary profit margin

-

-

-

1.5%

Net income

△7,556

△1,425

+6,131

2,000

Adjusted EBITDA

3,735

6,975

+3,240

29,000

Overview of the current quarter

Amusement Equipments Business

  • Against the backdrop of the growing popularity of smart Pachislot machines, the market environment for our mainstay Pachislot machines remains robust.

  • Type approval testing is proceeding according to plan.

  • Unit sales exceeded the same period of the previous year, and we secured net

    sales and operating profit in line with expectations.

    Integrated Resort Business

  • We recognize that the Philippine gaming market continues to face structural headwinds.

  • Competition with industry peers to acquire customers in the VIP and mass markets has intensified.

  • Although results fell short of the same period of the previous year, they exceeded those of the previous quarter due to measures such as the overhaul of our loyalty program.

    Future outlook

    Amusement Equipments Business

  • Market share has expanded, driven by steady performance of Smart Pachislot machines.

  • While overall Pachinko machine performance has been somewhat sluggish, manufacturers have begun rolling out smart Pachinko machines equipped with Lucky Trigger (LT) in earnest.

  • We anticipate market revitalization centered on the transition to smart Pachinko, driven by the expansion of gameplay features leveraging LT.

    Integrated Resort Business

  • Competition in the Philippine gaming market is expected to intensify further.

  • The impact of the situation in the Middle East is expected to continue beyond the second quarter.

  • Due to factors such as soaring fuel costs, which make it difficult for guests to visit OKADA MANILA in person, we are focusing on online gaming services for the Philippine market, including "OKADA PLAY."



‌Trend in Consolidated Earnings

Net Sales

Operating Profit

Net Income

Adjusted EBITDA



■■

1Q

Full-Year・Full-Year Forecast

■■

1Q



Full-Year・Full-Year Forecast

■■

1Q



Full-Year・Full-Year Forecast

(Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen)







  • ■■ 1Q

  • Full-Year・Full-Year Forecast

149,000

(Forecast)

140,998

126,328 122,827

27,735

35,502 34,427 27,280 28,434



178,995

16,000

(Forecast)

12,085

3,024

4,760

2,325

4,023

3,497

△ 2,512



30,480

11,506

8,362

2,000

(Forecast)

2,949 3,450

△ 7,556 △ 1,425

△ 15,569



28,439

55,857

FY2022 FY2023 FY2024 FY2025 FY2026

△ 3,228

FY2022 FY2023 FY2024 FY2025 FY2026

△ 231,425

FY2022 FY2023 FY2024 FY2025 FY2026

41,118

28,346

29,000

(Forecast)

23,152

11,376

8,305

10,091

6,975

3,735



FY2022 FY2023 FY2024 FY2025 FY2026



‌Factors Affecting Changes in Adjusted EBITDA

(Millions of yen)

12,000

  • Increase

  • Decrease

  • Total

    10,000

    1,728

    △ 21

    8,000

    6,000

    4,091

    Integrated Resort Business Sales: △2,938

    Cost of Sales: △507

    △ 2,938

    507 119

    △ 246

    6,975

    4,000

    3,735

    Amusement Equipments Business Sales Volume +7,755

    Sales: +4,091

    Cost of Sales: △1,728

    2,000

    0

    FY2025 Q1

    Amusement Equipments Bueinss Increase in Sales

    Amusement Equipments Business Increase in Selling, General and

    Administrative Expenses excluding Depreciation Amusement Equipments Bueinss

    Decrease in Cost of Sales

    Integrated Resort Bueinss Decrease in Sales

    Integrated Resort Bueinss Decrease in Cost of Sales

    Integrated Resort Business Decrease in Selling, General and

    Administrative Expenses excluding Depreciation

    Others

    FY2026 Q1



    ‌Consolidated Balance Sheet (Summary)

    (Millions of yen)

    FY2025

    1Q of FY2025

    Variance

    Factors Behind Variance

    Current assets

    93,415

    92,452

    △963

    Inventory of Amusement Equipment machines:

    +20,890, Decrease in operating expense of TRLEI and repayment of interest expenses on bonds

    Non-current assets

    279,549

    277,152

    △2,396

    Property, plant and equipment

    198,155

    195,776

    △2,379

    Decrease due to fluctuation in foreign exchange rate and depreciation

    Intangible assets

    1,466

    1,436

    △30

    Investments and other assets

    79,927

    79,939

    +12

    Deferred assets

    670

    623

    △47

    Total assets

    373,634

    370,227

    △3,406

    Current liabilities

    41,639

    41,380

    △259

    Non-current liabilities

    202,307

    202,007

    △300

    Total liabilities

    243,947

    243,387

    △559

    Shareholders' equity

    122,816

    121,390

    △1,425

    Net loss: △1,425

    Accumulated other comprehensive income

    6,871

    5,449

    △1,421

    Foreign currency translation adjustment: △1,358

    Total net assets

    129,687

    126,840

    △2,847

    Total liabilities and net assets

    373,634

    370,227

    △3,406

    ‌1Q of FY2026 Overview

    Amusement Equipments Business

    ‌Amusement Equipments Business

    Overview and Outlook for 1Q of FY2026

    Net Sales



    (Millions of yen)



    • 1Q

    • Full-Year・Full-Year Forecast

      Operating Profit



      (Millions of yen)



      • 1Q

    • Full-Year・Full-Year Forecast

      (Millions of yen)



      • 1Q

    • Full-Year・Full-Year Forecast

      Overview of the current quarter

      Adjusted EBITDA



      Pachislot Market

      • Smart Pachislot machines have become

        80,980

        19,818

        13,500

        (Forecast)

        10,662

        7,312

        4,483

        5,287

        3,102

        3,929



        24,082

        25,603

        so widespread that they now account for the majority of new machine sales, and the Pachislot market environment remains favorable.

        20,000

        15,700

        (Forecast)

        12,548

        8,557

        5,642

        3,366

        4,179

        4,952



        Pachinko Market

        • Overall utilization remains sluggish.

        • Although total unit sales are trending downward, the market share of smart pachinko machines has grown as the release of smart pachinko machines featured with Lucky Trigger (LT) 3.0 Plus has become the mainstream.

          Titles released in the quarter:

        • SMART PACHISLOT HANABI

        • SMART PACHISLOT THUNDER V

        • P ETOTAMA 2 KAMIFESU ETOAMA

          68,268

          69,000

          (Forecast)

          56,708

          43,504

          16,238

          11,145

          13,862

          8,750

          12,841



          △ 1,199

          △ 840

          FY2022 FY2023 FY2024 FY2025 FY2026

          FY2022 FY2023 FY2024 FY2025 FY2026

          FY2022 FY2023 FY2024 FY2025 FY2026

          ‌Amusement Equipments Business







          Pachinko

          Pachislot

          Pachislot

          FY2025

          Results

          FY2026

          Plan

          1Q of FY2026

          Results

          Pachislot

          Sales Volume

          83,044

          108,000

          23,274

          Number of new titles

          8

          -

          2

          Sales Volume

          Major Titles Released in 1Q of FY2026



          Total Sales

          Volume

          115,000

          136,000

          26,378

          3,104

          1

Major Titles Scheduled for Release in 2Q of FY2026



Pachinko

Sales Volume 31,956 28,000

SMART PACHISLOT HANABI

SMART PACHISLOT THUNDER V

P ETOTAMA 2 KAMIFESU ETOAMA

Number of new

titles 8 -



SMART PACHISLOT MILLION GOD: KAMIGAMI NO KISEKI



Pachinko

Pachislot

Pachislot

SMART PACHISLOT BIRDIE WING

-Golf Girls' Story-



e MEIHITENSEI

©えとたま製作委員会 ©えとたま製作委員会「猫客万来」©BNP/BIRDIE WING Golf Club ©Bandai Namco Sevens Inc.

‌1Q of FY2026 Overview

Integrated Resort (IR) Business

‌Integrated Resort (IR) Business

Overview and Outlook for 1Q of FY2026

Net Sales



(Millions of yen)



    • 1Q

  • Full-Year・Full-Year Forecast

    Operating Profit



    (Millions of yen)



    • 1Q

  • Full-Year・Full-Year Forecast

    (Millions of yen)

    • 1Q



  • Full-Year・Full-Year Forecast

Overview of the current quarter

Adjusted EBITDA



Market Environment

  • We recognize that the gaming market in Entertainment City, Manila, Philippines,

    81,981

    71,771

    70,000

    (Forecast)

    65,409

    24,117

    20,375

    18,378

    11,286

    15,440



    96,947

    8,900

    (Forecast)

    3,780

    2,871

    4,134

    1,770 331 23

    △ 498



    14,367

    △ 7,114

    29,981

    remains in a period of adjustment.

    19,350

    19,560

    18,000

    (Forecast)

    10,282

    4,585

    7,925

    6,026

    2,429

    2,040



    • Partly due to the situation in the Middle East, the market as a whole continues to contract.

    • Against the backdrop of structural changes in the VIP market, fierce competition with rivals to acquire mass-market customers continues, driving up customer acquisition costs.

      Quarterly Results

    • Although VIP turnover exceeded the same period last year, VIP revenue fell below the prior-year level due to a decline in the win rate.

    • Both mass-table and gaming machine turnover and revenue fell below the same period last year.

    • In addition to optimizing fixed costs through a review of our cost structure, we reduced selling, general, and administrative expenses due to factors such as a decrease in depreciation expenses resulting from the previous fiscal year's asset revaluation, thereby

FY2022 FY2023 FY2024 FY2025 FY2026

FY2022 FY2023 FY2024 FY2025 FY2026

FY2022 FY2023 FY2024 FY2025 FY2026

maintaining an operating profit.

‌Integrated Resort (IR) Business

(Reference) Revenue of TRLEI

Revenue(millions of PHP)

Revenue Breakdown



FY2025

FY2026

Y-o-Y

(millions of PHP)

Q1

Q1

VIP

Rolling chip volume

53,076

57,642

+8.6%

Rolling chip win

1,773

1,436

△19.0%

Rolling chip win rate (%)

3.3

2.5

△0.8pt

Mass table

Mass table games volume - live

10,466

7,396

△29.3%

Mass table games win - live

2,987

2,265

△24.1%

Mass table games win rate - live (%)

28.5

30.1

+1.6pt

Mass table games volume - online

1,452

1,435

△1.1%

Mass table games win - online

53

39

△26.4%

Mass table games win rate - online (%)

3.7

2.7

+1.0pt

Gaming Machine

Gaming machine handle

48,438

46,435

△4.1%

Gaming machine win

2,992

2,725

△8.9%

Gaming machine win rate (%)

6.2

5.8

△0.4pt

Gaming revenue

7,805

6,465

△17.1%

Non-gaming revenue

(hotel, food & beverage, retail, entertainment, etc.)

941

944

△0.3%

Total revenue

8,747

7,408

△15.3%

Property visitors (people)

1,396,627

1,406,076

+0.6%

VIP Mass Table

941

944

2,725

2,992

2,304

3,040

1,436

1,773

Gaming Machine Non-Gaming

FY2025Q1 FY2026Q1

VIP Mass Table

Gaming Machine Non-Gaming

20.3%

19.4%

34.8%

31.1%

36.8%

34.2%

12.7%

10.8%

FY2025Q1 FY2026Q1

‌Appendix



‌Consolidated Statement of Income

FY2025Q1

FY2026Q1

Variance

Major variances and the factor behind

Net Sales

27,280

28,434

1,153

Cost of sales

12,039

9,869

△2,170

Gross profit

15,240

18,564

3,323

Gross profit margin (%)

56

65

9

Selling, general and administrative expenses

17,753

15,067

△2,686

Operating profit (loss)

△2,512

3,497

6,010

Operating profit margin (%)

△9

12

22

Non-operating income

1,246

680

△566

First 3 months of FY2026

Foreign exchange gain 224, Interest expense 2,545, Interest expenses on bonds 1,728

(Reference) First 3 months of FY2025

Foreign exchange loss 5,338, Interest expense 2,300,

Interest expenses on bonds 1,781, Provision of allowance for doubtful accounts 1,521

Non-operating expenses

11,053

4,338

△6,715

Ordinary profit (loss)

△12,319

△160

12,159

Ordinary profit margin (%)

△45

△1

△45

Extraordinary income

3,538

9

△3,529

Compensation income △3,512

Extraordinary losses

0

4

4

Income (loss) before income taxes and others

△8,781

△155

8,626

Income taxes

△1,224

1,269

2,493

Net income (loss)

△7,556

△1,425

6,131

Net income (loss) attributable to non-controlling interests

-

-

-

Net income (loss) attributable to owners of parent

△7,556

△1,425

6,131



‌Consolidated Balance Sheet

As at Dec. 31, 2025

As at Mar. 31, 2026

Variance

Current assets

93,415

92,452

△963

Cash and deposits

40,000

33,039

△6,961

Accounts receivable - trade

6,577

4,619

△1,958

Securities

121

2,795

2,674

Merchandise and finished goods

2,673

7,868

5,195

Work in process

15,442

16,093

651

Raw materials and supplies

12,533

11,877

△656

Other

17,381

17,479

98

Allowance for doubtful accounts

△1,314

△1,320

△6

Non-current assets

279,549

277,152

△2,397

Property, plant and equipment

152,939

150,937

△2,002

Machinery, equipment and vehicles

10,489

10,707

218

Leased assets, net

19,102

18,813

△289

Contruction in progress

4,388

4,053

△335

Other non-current assets

11,236

11,263

27

Intangible assets

1,466

1,436

△30

Investment securities

9,955

9,902

△53

Long-term deposits

9,630

9,829

199

Long-term deposits paid to subsidiaries and associates

23,868

24,376

508

Long-term accounts receivable from subsidiaries and associates

7,553

6,961

△592

Other investments

35,795

35,740

△55

Allowance for doubtful accounts

△6,876

△6,871

5

Deferred assets

670

623

△47

Total assets

373,634

370,227

△3,407

As at Dec. 31, 2025

As at Mar. 31, 2026

Variance

Current liabilities

41,639

41,380

△259

Notes and accounts payable - trade

6,269

7,781

1,512

Current portion of long-term borrowings

2,533

2,965

432

Accounts payable - other

4,521

3,687

△834

Accured expenses

8,505

6,115

△2,390

Income taxes payable

2,086

1,081

△1,005

Provision for bonuses

95

333

238

Other

17,628

19,414

1,786

Non-current liabilities

202,307

202,007

△300

Bonds

62,999

64,556

1,557

Long-term borrowings

67,884

66,500

△1,384

Retirement benefit liability

1,474

1,579

105

Leased liabilities

60,949

60,702

△247

Other

8,999

8,668

△331

Total liabilities

243,947

243,387

△560

Net assets

129,687

129,687

0

Share capital

98

98

0

Capital surplus

18,828

18,828

0

Retained earnings

111,189

109,763

△1,426

Treasury shares

△7,299

△7,299

0

Valutaion difference on available-for-sale securities

△33

△96

△63

Foreign currency translation adjustment

6,894

5,535

△1,359

Remeasurements of defined benefit plans

10

10

0

Total liabilities and net assets

373,634

370,227

△3,407



‌[Disclaimer and Notes Regarding Forward-Looking Statements]

  1. These materials are not intended to solicit investment.

  2. These materials may contain forward-looking statements regarding plans, outlooks, targets, and forecast figures of the Company and its affiliates; however, these statements are based on judgments and assumptions using information that is currently available, and do not account for latent risks and uncertainties. Therefore, please be aware that actual future results may differ greatly from the forward-looking statements due to changes in the business environment, economic conditions, financial markets, and various other factors.

  3. The Company will not update these materials even if there are revisions to the future outlook.



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