Summary of Financial Data and Business Results for the First Quarter of Fiscal Year Ended December 31, 2025(JP GAAP, Consolidated)

May 14, 2025

Company Name: Universal Entertainment Corporation Code No.: 6425 URL: https://www.universal-777.com

Listed Exchange: Tokyo Stock Exchange

Representative: (Name) Tomohiro Okada (Title) Representative Director and President Contact: (Name) Nobuki Sato (Title) Senior Executive Officer & CFO

TEL: +81-3-5530-3055

Scheduled Commencement Date of Dividend Payment: -Supplementary Briefing Materials for Settlement of Accounts: Yes Briefing on Settlement of Accounts: None scheduled

(Amounts rounded down to nearest million yen)

1. Consolidated Business Results for the First Quarter of Fiscal Year 2025 (Period from January 1, 2025 to March 31, 2025)

   1. Consolidated Operating Results

      (Percentages refer to changes from the previous fiscal year)

      	Net Sales	Operating Profit	Ordinary Profit	Net Income Attributable to Owners of Parent
      	Million Yen %	Million Yen %	Million Yen %	Million Yen %
      1st Quarter of Fiscal Year 2025	27,280 (20.8)	(2,512) -	(12,319) -	(7,556) -
      1st Quarter of Fiscal Year 2024	34,427 (3.0)	4,023 (15.5)	5,575 76.5	3,450 17.1

      (Note) Comprehensive income

      1st Quarter of Fiscal Year 2025:(13,774) million yen (-%) 1st Quarter of Fiscal Year 2024: 10,745 million yen (up 0.3%)

      	Net Income per Share	Diluted Net Income per Share
      	Yen	Yen
      1st Quarter of Fiscal Year 2025	(97.36)	-
      1st Quarter of Fiscal Year 2024	44.53	44.53

      (Note) Diluted net income per share for the 1st Quarter of 2025 is not presented because a net loss per share was posted despite the existence of latent shares with a dilution effect.

   2. Consolidated Financial Status

   	Total Assets	Net Assets	Ratio of Shareholders' Equity	Net Assets per Share
   	Million Yen	Million Yen	%	Yen
   As of March 31, 2025	603,937	355,956	58.9	4,593.69
   As of December 31, 2024	632,795	369,731	58.4	4,771.28

   (Reference) Shareholders' equity

   As of March 31, 2025: 355,956 million yen As of December 31, 2024: 369,731 million yen

2. Status of Dividends

   	Annual Dividends
   	End of 1st Quarter	End of 2nd Quarter	End of 3rd Quarter	End of Fiscal Year	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal Year 2024	-	30.00	-	0.00	30.00
   Fiscal Year 2025	-
   Fiscal Year 2025 (Forecast)		-	-	-	-

   (Note) Revision from the dividend forecast most recently announced: None The final dividend forecast for Fiscal Year 2025 is to be determined.

3. Consolidated Business Results Forecast for Fiscal Year 2025 (Period from January 1, 2025 to December 31, 2025)

   (Percentages refer to changes from the previous fiscal year)

   	Net Sales	Operating Profit	Ordinary Profit	Net Income Attributable to Owners of Parent	Net Income per Share
   Full Fiscal Year	Million Yen % 150,000 18.7	Million Yen % 16,000 429.1	Million Yen % 1,000 -	Million Yen % 800 -	Yen 10.32

   (Note) Revision from the business forecasts most recently announced: None

   • Matters of Note

     1. Significant changes in the scope of consolidation during the period : None

     2. Application of accounting procedures specific to the preparation of the quarterly

        consolidated financial statements : None

     3. Changes in accounting policies, changes in accounting estimates and/or restatements

        1. Changes in accounting policies accompanying revision of accounting standards, etc. : None

        2. Changes in accounting policies other than 1)

        3. Changes in accounting estimates

        4. Restatements

           : None

           : None

           : None

     4. Number of outstanding shares (common stock)

        1. Shares issued at end of fiscal period (including treasury shares) As of March 31, 2025: 80,195,000 shares

           As of December 31, 2024: 80,195,000 shares

        2. Number of treasury shares at end of fiscal period

           As of March 31, 2025: 2,704,139 shares

           As of December 31, 2024: 2,704,096 shares

        3. Average number of shares during fiscal period

           1st Quarter of Fiscal Year 2025: 77,490,874 shares 1st Quarter of Fiscal Year 2024: 77,490,904 shares

   • Review of the attached quarterly consolidated financial statements by certified public accountants or auditing firms: None

   • Explanation on Proper Usage of Business Results Forecast and Other Noteworthy Items

The forward-looking statements regarding business results, etc. as featured herein are based on information that is currently available and certain assumptions that are determined to be reasonable, but are not promises by Universal Entertainment Corporation regarding future performance. Actual business results may vary significantly due to a number of factors. For preconditions of business forecasts and notes on the usage of business forecasts and so forth, please see "1. Qualitative Information Pertaining to Quarterly Settlement of Accounts, (4) Forecast of Consolidated Business Results" on page 4 of the Attached Materials.

Attached Materials: Table of Contents

1. Qualitative Information Pertaining to Quarterly Settlement of Accounts 2

   1. Explanation of Operating Results 2

   2. Explanation of Financial Status 3

   3. Explanation of Consolidated Business Results Forecast and Other Forward-looking Statements 4

   4. Forecast of Consolidated Business Results 4

2. Quarterly Consolidated Financial Statements and Notes 5

   1. Quarterly Consolidated Balance Sheet 5

   2. Quarterly Consolidated Statement of Income and

      Quarterly Consolidated Statement of Comprehensive Income 7

      Quarterly Consolidated Statement of Income

      The Cumulative First Quarter 7

      Quarterly Consolidated Statement of Comprehensive Income

      The Cumulative First Quarter 8

   3. Notes to Quarterly Consolidated Financial Statements 9

      (Notes Pertaining to Going Concern) 9

      (Changes in Accounting Policies) 9

      (Notes in Event of Significant Fluctuation in Amount of Shareholders' Equity) 9

      (Notes to Quarterly Consolidated Statement of Cash Flows) 9

      (Notes to Segment Information) 10

   4. Additional Information 11

   5. Material Subsequent Events 11

1. Qualitative Information Pertaining to Quarterly Settlement of Accounts

1. Explanation of Operating Results

   In the Amusement Equipments Business, Pachislot sales are strong due to the diffusion of Smart Pachislot machines. However, there was a operating loss caused by the decrease in sales volume year-on-year as well as a lower profitability. In the Integrated Resort Business, the performance of both gaming and non-gaming operations was down year-on-year due to the decline in the VIP segment at OKADA MANILA and the decrease in number of foreign guests. In particular, the VIP rolling chip volume was down sharply and the decrease in the number of guests impacted the performance of both the mass gaming and the hotel and F&B categories.

   As a result, sales in the first quarter of fiscal year 2025 totaled 27,280 million yen (downed 20.8% year-on-year), operating loss was 2,512 million yen (ordinary profit was 4,023 million yen in the same period of 2024), ordinary loss was 12,319 million yen (ordinary profit was 5,575 million yen in the same period of 2024), and net loss attributable to owners of parent was 7,556 million yen (net income attributable to owners of parent was 3,450 million yen in the same period of 2024). Business segment performance was as follows. Sales are prior to adjustments for inter-segment sales or transfers.

   1. Amusement Equipments Business

      In the first quarter of fiscal year 2025, the Amusement Equipments Business posted a net sales of 8,750 million yen (downed 36.9% year-on-year) and an operating loss of 1,199 million yen (operating profit was 3,929 million yen in the same period of 2024).

      In the amusement equipment industry, the business climate for Pachislot machines is favorable because of the steady introduction of smart Pachislot machines to the market as well as the high utilization rate of these machines in the Pachinko parlors that meets the expectation from the parlor operators. For the Pachinko sector, expectation for an upturn is emerging as the market diffusion of Pachinko machines with lucky trigger function which have richer game elements as well as smart Pachinko machines have been moving gently, and well-evaluated machines with good reputation are being released.

      In response to these market conditions, we introduced "SMART PACHISLOT SHAMAN KING," which recreates the worldview of this popular anime, into the market and ramped up the production of "OKIDOKI! GORGEOUS", a highly evaluated title. In the pachinko category, we introduced "P HANEMONO Family Stadium," a motif of the popular baseball game from Bandai Namco Entertainment Inc., and "P Crash Landing on You", the first amusement machine based on a love story that was a big hit mainly in Asia.

   2. Integrated Resort Business

      The Integrated Resort Business posted a net sales(1) of 18,378 million yen (downed 9.8% year-on-year), and an operating profit of 331 million yen (downed 81.3% year-on-year). Adjusted segment EBITDA(2) was 4,605 million yen in the first quarter of fiscal year 2025 (downed 23.6% year-on-year).

      At OKADA MANILA, an integrated resort operated by the Universal Entertainment Group, the first quarter performance in fiscal year 2025 fell below the previous year's results . According to the Philippine Department of Tourism, the number of inbound travelers from South Korea and China, the main overseas visitor source countries for OKADA MANILA, decreased by 13.9% and 33.7% respectively throughout the first quarter in 2025.

      In the gaming category, a drop in VIP rolling chip volume has continued since the last fiscal year. Gross gaming revenue from the gaming machine category also declined year on year due to the decrease in the number of the Philippines inbound visitors. The hotel and F&B business also saw a decline in revenue due to the decline in the number of property visitors.

      1. Net sales are gross revenues minus gaming taxes and jackpots.

      2. Adjusted segment EBITDA= Operating profit/loss + Depreciation + Other adjustments

   3. Other

      Other Business posted a net sales of 130 million yen (downed 15.0% year-on-year), and an operating profit of 179 million yen (upped 56.5% year-on-year) in the first quarter of fiscal year 2025.

      For the Media Content Business, although simulator applications for our amusement machines have been distributed on App Store and Google Play, no new application was released in the first quarter. For "Universal Kingdom," the subscription-based application, and "Slots Street," the free-to-play social casino game, we have been doing our best to attract new users and increase the satisfaction of current users by constantly holding in-game events. For digital music distribution, 2 titles were distributed to 24 platforms, including Apple Music, Spotify and YouTube Music.

2. Explanation of Financial Status

Financial status for the first quarter of fiscal year 2025 is as follows.

Total assets at the end of the first quarter of fiscal year 2025 amounted to 603,937 million yen, a decrease of 28,858 million yen year-on-year. The decrease was mainly due to the depreciation of Philippine peso and U.S. dollar against Japanese yen, the decreases in cash and deposits as well as notes and accounts receivable - trade, and an increase in long-term allowance for doubtful accounts.

Total liabilities at the end of first quarter of fiscal year 2025 amounted to 247,980 million yen, a decrease of 15,083 million yen year-on-year. The decrease was mainly due to the depreciation of Philippine peso and U.S. dollar against Japanese yen and the decreases in accrued expenses and other under current liabilities.

Total net assets at the end of first quarter of 2025 amounted to 355,956 million yen, a decrease of 13,774 million yen from the end of 2024. This was partly the result of a decrease in retained earnings due to net loss attributable to owners of parent and foreign currency translation adjustment due to weakening of the Philippine peso against the yen.