Supplementary Material - 株式会社平和 · Pachislot Machines 2,004 2,634 4,032 70 8,962 7,613 6,317 15,282 12,731 % 12.1 ％ 8.9 ％ 23.2 ％ 0.6 ％ 27.5 ％ 33.7 ％ 30.2 ％

Copyright Heiwa Corporation 2015

Supplementary Material

Fiscal Year Ended March 31, 2015

Heiwa Corporation

May 15, 2015


1. Consolidated Business Results

Net Sales and Operating Income P.4

Segment Sales P.5

Capital Investment, Depreciation and R&D Expenses P.6

Trends of Assets, Liabilities and Net Asset P.7

Trends of Business Results P.8

Trends of Statements of Cash Flows P.9

2. Segment Information <Pachinko and Pachislot Machine Business>

Trends of Net Sales and Operating Income P.11

Unit Sales P.12

3. Segment Information <Golf Business>

Trends of Net Sales and Operating Income P.14

Trends of Golf Course Users and Revenue per Customer P.15

Golf Course Portfolio P.16

4. Pachinko and Pachislot Market Information

Pachinko and Pachislot Market Size P.18

Trends of Pachinko Parlors P.19

Trends of Machine Sales and Installation P.20

Authority Approval of Pachinko and Pachislot Models P.21

Circulation of Pachinko and Pachislot Machines P.22

Pachinko and Pachislot Machine Structure P.23

Pachinko and Pachislot Machine Manufacturing Process P.24

Reuse of Pachislot Machine Components P.25

5. Golf Market Information

Golf Market Size P.27

6. Company Information

Company Profile P.29

Company History P.30

Stock Information P.31

【Contents】

Copyright Heiwa Corporation 2015 3

1. Consolidated Business Results


Net Sales and Operating Income

4

(million yen) 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Net Sales 76,677 62,462 49,689 63,328 85,880 95,120 177,111 181,570 198,605

Operating Income 3,421 447 -3,885 3,740 15,276 20,741 34,434 36,909 42,870

Ordinary Income 6,701 5,432 6,001 13,517 24,687 28,282 35,577 35,405 42,059

Net Income 3,771 3,365 1,711 11,947 20,451 20,516 20,123 20,361 26,235

Operating Income Ratio 4.5％ 0.7％ -7.8％ 5.9％ 17.8％ 21.8％ 19.4％ 20.3％ 21.6％

(million yen)

4.5%

0.7% -7.8%

5.9%

17.8%

21.8%19.4% 20.3%

21.6%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

-50,000

0

50,000

100,000

150,000

200,000

250,000

2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Net Sales

Operating

Income

Operating

Income Ratio

76,67762,462

49,689

63,328

85,880

95,120

177,111181,570

198,605


Segment Sales

5

(million yen) 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Net Sales 76,677 62,462 49,689 63,328 85,880 95,120 177,111 181,570 198,605

Pachinko & Pachislot

Business60,702 60,332 48,601 62,541 84,717 80,843 99,930 105,869 121,380

Pachinko Sales 44,129 30,859 31,202 50,827 52,106 58,252 78,998 66,105 89,589

Pachislot Salses 16,537 29,472 17,399 11,714 32,610 22,591 20,932 39,763 31,791

Golf Business - - - - - 13,228 74,479 73,145 74,807

Others 15,609* 2,130 1,087 786 1,162 1,048 2,700 2,555 2,417

* “Others” in 2007/3 includes sales from peripheral equipment and Pachinko parlors.

13,228

74,479 73,145 74,807

16,573 29,472

17,399 11,714 32,610

22,591

20,932 39,763 31,791

44,129 30,859

31,202 50,827

52,106 58,252

78,998 66,105

89,589

0

50,000

100,000

150,000

200,000

250,000

2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Pachinko Machine

Pachislot Machine

Golf Business

Others

(million yen)


Capital Investment, Depreciation and R&D Expenses

6

(million yen) 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Capital Investment 2,281 2,878 7,501 3,461 2,202 3,301 9,414 12,987 11,877

Depreciation 2,184 2,708 3,699 2,528 3,362 3,963 7,575 8,339 9,478

R&D Expenses 5,159 6,083 7,421 8,175 9,774 7,889 8,963 12,864 13,624

2,281 2,878

7,501

3,461

2,202

3,301

9,414

12,987

11,877

2,184 2,708

3,699

2,528 3,362

3,963

7,575

8,339

9,478

5,159

6,083

7,421

8,175

9,774

7,889

8,963

12,864

13,624

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Capital Investment

Depreciation

R&D Expenses

(million yen)


Trends of Assets, Liabilities and Net Assets

7

(million yen) 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Total Current Assets 76,034 92,301 88,439 126,560 137,985 148,086 162,023

Cash and deposits 38,911 36,971 24,541 37,756 74,549 96,425 109,628

Short-term investment

securities4,383 22,432 39,436 45,736 21,003 8,625 12,631

Merchandises and

finished goods212 407 536 5,596 3,469 1,678 2,212

Raw materials and

supplies11,304 10,966 5,054 7,451 4,673 6,656 5,511

Property, Plant and

Equipment31,086 31,622 30,079 245,155 247,300 260,386 261,603

Intangible Assets 163 108 85 3,854 4,253 5,062 5,062

Investments and Other

Assets33,186 32,717 30,178 31,305 27,517 24,972 19,144

Total Noncurrent Assets 64,435 64,449 60,343 280,315 279,071 290,420 285,810

Total Assets 140,470 156,750 148,783 406,875 417,057 438,506 447,833

Total Current Liabilities 10,507 27,621 34,918 72,062 69,227 69,216 68,299

Short-term loans payable - - - - 3,000 - -

Current portion of long-

term loans payable513 443 6,518 21,504 18,635 21,690 16,876

Current portion of bonds - - - - 7,984 - -

Total Noncurrent Liabilities 41,711 60,424 17,146 209,987 206,647 212,787 201,264

Bonds payable - - - 7,984 - 8,000 8,000

Long-term loans payable 8,085 7,641 1,122 134,818 142,611 138,815 131,337

Negative goodwill 30,107 21,505 12,903 4,301 - - -

Deposits received from

members- - - 39,262 37,739 36,173 34,352

Total Liabilities 52,218 60,424 52,065 282,049 275,875 282,003 269,564

Total Net Assets 88,251 96,326 96,717 124,826 141,182 156,502 178,269

Total Liabilities and Net Assets 140,470 156,750 148,783 406,875 417,057 438,506 447,833


Trends of Business Results

8

(million yen) 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Net Sales 49,689 63,328 85,880 95,120 177,111 181,570 198,605

Pachinko and Pachislot Business 48,601 62,541 84,717 80,843 99,930 105,869 121,380

Pachinko Machines 31,202 50,827 52,106 58,252 78,998 66,105 89,589

Pachislot Machines 17,399 11,714 32,610 22,591 20,932 39,763 31,791

Golf Business - - - 13,228 74,479 73,145 74,807

Others 1,087 786 1,162 1,048 2,700 2,555 2,417

Operating Income ▲3,885 3,740 15,276 20,741 34,434 36,909 42,870

Pachinko and Pachislot Business ▲635 6,291 17,688 24,637 25,494 30,119 34,321

Pachinko Machines ▲4,667 6,362 8,726 17,023 19,177 14,836 21,590

Pachislot Machines 4,032 -70 8,962 7,613 6,317 15,282 12,731

Golf Business - - - ▲908 12,162 9,891 12,109

Others 13 279 556 228 263 182 161

Not Allocated ▲3,263 ▲2,830 ▲2,968 ▲3,215 ▲3,485 ▲3,283 ▲3,722

Operating Profit Ratio ▲7.8％ 5.9％ 17.8％ 21.8％ 19.4％ 20.3％ 21.6％Ordinary Income 6,001 13,517 24,687 28,282 35,577 35,405 42,059

Net Income 1,711 11,947 20,451 20,516 20,123 20,361 26,235

Selling, General and Administrative

Expenses19,941 21,256 23,875 24,180 30,864 36,095 36,517

Labor Cost 4,428 3,734 4,407 5,851 7,554 7,621 7,700

Selling Expenses 3,991 6,049 6,488 6,448 7,884 8,994 8,632

Advertisement expense 2,067 3,825 2,612 2,841 3,197 3,856 3,560

Sales commission 1,393 1,486 2,931 2,513 2,690 3,572 3,675

Administrative Expenses 11,521 11,473 12,978 11,880 15,425 19,478 20,184

R&D expenses 7,421 8,175 9,774 7,889 8,963 12,864 13,624


Trends of Statements of Cash Flows

9

(million yen) 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Cash flow from operating activities 9,225 21,769 23,405 13,029 29,029 38,304 40,511

Cash flow from investing activities 3,925 ▲16,280 396 ▲64,563 ▲8,636 ▲18,424 ▲31,322

Cash flow from financing activities ▲36,127 ▲5,449 ▲20,366 45,406 ▲9,469 ▲12,069 ▲20,774

Effect of exchange rate change on

cash and cash equivalent101 20 ▲0 ▲11 ▲2 5 6

Net increase (decrease) in cash and

cash equivalents▲22,874 59 3,435 ▲6,139 10,921 7,816 ▲11,577

Cash and cash equivalents, beginning

of terms61,785 38,911 38,971 42,406 36,267 47,189 55,005

Cash and cash equivalents,

end of terms38,911 38,971 42,406 36,267 47,189 55,005 43,428


2. Segment Information

< Pachinko and Pachislot Machine Business >


Trends of Net Sales and Operating Income

11

(million yen) 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Net Sales 60,702 60,332 48,601 62,541 84,717 80,843 99,930 105,869 121,380

Pachinko Machines 44,129 30,859 31,202 50,827 52,106 58,252 78,998 66,105 89,589

Pachislot Machines 16,573 29,472 17,399 11,714 32,610 22,591 20,932 39,763 31,791

Operating Income 7,618 3,359 ▲635 6,291 17,688 24,637 25,494 30,119 34,321

Pachinko Machines 5,614 724 ▲4,667 6,362 8,726 17,023 19,177 14,836 21,590

% 12.7％ 2.3％ ▲15.0％ 12.5％ 16.7％ 29.2％ 24.3％ 22.4％ 24.1％

Pachislot Machines 2,004 2,634 4,032 ▲70 8,962 7,613 6,317 15,282 12,731

% 12.1％ 8.9％ 23.2％ ▲0.6％ 27.5％ 33.7％ 30.2％ 38.4％ 40.0％

44,129

30,859 31,202

50,827 52,106 58,252

78,998

66,105

89,589

16,753 29,472 17,399 11,714

32,610

22,591 20,932

39,763 31,791

12.7%（Pachinko）

2.3%

-15.0%

12.5%

16.7%

29.2%24.3% 22.4%

24.1%

12.1%（Pachislot）8.9%

23.2%

-0.6%

27.5%

33.7%

30.2%

38.4%40.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Sales of

Pachinko

Machines

Sales of

Pachislot

Machines

Operating

Income Ratio of

Pachinko

machines

Operating

Income Ratio of

Pachislot

machines

(million yen)


Unit Sales

12

(Units) 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Machine Sales Total 239,946 224,947 178,069 214,572 279,310 266,027 320,011 317,948 344,866

Pachinko Machines 184,832 119,350 109,725 170,328 168,219 187,308 252,411 197,146 252,103

Pachinko machines

with flames102,946 68,826 67,050 101,908 107,611 99,030 179,430 128,059 200,813

Pachinko machines

without flames81,886 50,524 42,675 68,420 60,608 88,278 72,981 69,087 51,290

Pachislot Machines 55,114 105,597 68,344 44,244 111,091 78,719 67,600 120,802 92,763

Pachislot machines

with flames- - 26,550 30,013 61,512 30,676 29,472 77,716 36,146

Pachislot machines

without flames- - 41,794 14,231 49,579 48,043 38,128 43,086 56,617

(Units)

55,114

105,597

41,794 14,231

49,579 48,043 38,128 43,086 56,617

26,550

30,013

61,512 30,676

29,472

77,716 36,146

81,886

50,524

42,675 68,420

60,608 88,278

72,981

69,087

51,290

102,946 68,826

67,050 101,908

107,611 99,030

179,430

128,059 200,813

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

Pachinko Machines

with Flames

Pachinko Machines

without Flames

Pachislot Machines

with Flames

Pachislot Machines

without Flames

Pachislot Machines


3. Segment Information

< Golf Business >


Trends of Net Sales and Operating Income

14

(million yen) 2012/3＊ 2013/3 2014/3 2015/3

Net Sales 13,228 74,479 73,145 74,807

Operating Income ▲908 12,162 9,891 12,109

% ▲6.9％ 16.3％ 13.5％ 16.2％

(million yen)

＊ Records of 3 month from Jan 2012 to Mar 2012

13,228

74,479 73,145 74,807

-6.9%

16.3%

13.5%

16.2%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2012/3 2013/3 2014/3 2015/3

Net Sales from Golf

Business

Operating Income from

Golf Business


Trends of Golf Course Users and Revenue per Customer

15

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total

2011/3 577,676 707,672 621,424 647,456 644,965 624,328 670,049 659,787 564,698 410,224 367,659 392,263 6,888,201

2012/3 500,025 601,959 574,666 625,432 606,561 571,119 631,035 599,343 527,390 413,787 332,607 502,389 6,486,313

2013/3 576,784 685,793 652,022 707,241 673,282 669,609 678,211 628,037 545,915 419,932 382,310 578,359 7,197,495

2014/3 581,377 695,817 652,238 673,318 660,019 654,753 641,042 669,488 568,476 465,157 294,507 541,624 7,097,816

2015/3 651,067 757,367 659,662 670,460 652,429 695,852 671,206 681,167 548,032 430,098 403,316 569,843 7,390,499

（yen） Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total

2011/3 10,128 10,198 9,804 9,468 8,778 9,399 10,027 10,228 9,875 9,092 8,504 8,773 9,605

2012/3 9,188 9,666 9,483 9,269 8,543 9,356 10,114 10,266 9,899 9,002 8,509 9,288 9,429

2013/3 9,686 9,522 9,342 8,734 8,171 9,184 9,640 9,922 9,727 9,000 8,436 9,347 9,234

2014/3 9,468 9,527 9,531 8,664 8,143 8,853 9,456 10,033 9,516 8,552 7,813 9,100 9,123

2015/3 9,215 9,422 9,180 8,703 8,300 8,964 9,477 10,122 9,440 8,591 8,077 8,797 9,076

【Number of Golf Course Users】

【Revenue per Customer】


Golf Course Portfolio

16

2014/3 2015/3

Courses18H

equivalentCourses

18H

equivalent

Owned Golf

Courses127 154.0 126 152.5

Leased Golf

Courses3 4.0 1 2.0

Contracted

Golf Courses2 2.0 1 1.0

Total 132 160.0 128 155.5

Hokkaido 6 9.5 6 9.5

Tohoku 9 11.5 9 11.5

Kanto 52 60.0 50 58.0

Chubu 14 18.0 14 18.0

Kansai 17 20.0 17 20.0

Chugoku 12 14.0 10 11.5

Shikoku 7 7.5 7 7.5

Kyusyu 15 19.5 15 19.5

Total 132 160.0 128 155.5

【Acquisition】

March 17, 2015Started operation of Sokyu Country Club

(Futtsushi, Chiba)

【Sale of Business & Lease Completion】

March 31, 2014

Lease completion of Shimane Golf Club

(Izumoshi, Shimane)

※Including total golf courses of 2014/3

April 30, 2014

Entrusted operation completed Obatago Golf

Club

(Kanragun Kanramachi, Gunma)

May 9, 2014Sold Kinugawa Kogen Country Club

(Nikkoushi, Tochigi)

July 8, 2014Sold Tokuyama Country Club

( Shunanshi, Yamaguchi)

Feb 28, 2015Lease completion of Sanbu Green Country Club

(Sanbushi, Chiba)


4. Pachinko and Pachislot

Market Information


Pachinko & Pachislot

Entertainment (excl. Pachinko & Pachislot)

Hobbies

Tourism

Sports

18

Pachinko and Pachislot Market Size

Leisure Market

65,216 billion yen

Source: Japan Productivity Center

18,818 billion yen

（28.9％）

24,260 billion yen

（37.2％）

8,198 billion yen

（12.6％）

10,022 billion yen

（15.4％）

3,918 billion yen

（6.0％）

【2013 Leisure Market Size】

2006 2007 2008 2009 2010 2011 2012 2013

Market size (billion yen) 274,550 229,800 217,160 210,650 193,800 188,960 190,660 188,180

Player population (million) 1,660 1,450 1,580 1,720 1,670 1,260 1,110 970

Player population as a % of Japan’s

population15.0％ 13.1％ 14.3％ 16.8％ 16.3％ 12.3％ 10.9％ 9.6%

Average annual expenditure (yen) 3,980 3,960 4,150 3,676 3,870 3,370 3,540 2,660

【Trends of Pachinko and Pachislot Market】

（ten thousand）（trillion yen）

27.45

22.98 21.71 21.06

19.38 18.89 19.06 18.81

1,660

1,450

1,580

1,720 1,670

1,260

1,110

970

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2006 2007 2008 2009 2010 2011 2012 2013

Pachinko & Pachislot Market Size Player Population


Trends of Pachinko Parlors

【Number of Pachinko Parlors】

2006 2007 2008 2009 2010 2011 2012 2013 2014

Number of Pachinko Parlors 14,674 13,585 12,937 12,652 12,479 12,323 12,149 11,893 11,627

Pachinko and Pachislot 12,588 12,039 11,800 11,722 11,576 11,392 11,178 10,873 10,610

Pachislot only 2,086 1,546 1,137 930 903 931 971 1,020 1,017

Average machines installation per

parlor (days)336 337 349 356 365 371 378 387 395

（Parlors）（Units）

Source: National Police Agency

12,588

12,039 11,800

11,722 11,576 11,392 11,178 10,873 10,610

2,086

1,546 1,137 930 903 931 971 1,020 1,017

336 337

349

356

365

371

378

387 395

300

320

340

360

380

400

0

4,000

8,000

12,000

16,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Parlors with Pachinko & Pachislot Parlors only with Pachislot Average Machines per Parlor


Trends of Machine Sales and Installation

【Number of Machine Sales and Installation】

(thousand units) 2006 2007 2008 2009 2010 2011 2012 2013 2014

Number of Pachinko Machine

Sold3,837 3,173 3,339 3,332 2,900 2,602 2,494 2,048 2,082

Number of Pachinko Machine

Installed2,932 2,954 3,076 3,158 3,163 3,107 3,035 3,009 2,954

Number of Pachislot Machine

Sold1,647 1,744 913 766 979 1,259 1,326 1,390 1,172

Number of Pachislot Machine

installed2,003 1,635 1,448 1,347 1,390 1,474 1,546 1,602 1,643

（thousand units）

Source: Yano Research Institute and National Police agency

3,837

3,173

3,339 3,332

2,900

2,602 2,494

2,048 2,082

1,647 1,744

913 766 979

1,259 1,326 1,390 1,172

2,932 2,954 3,076 3,158 3,163 3,107 3,035 3,009 2,954

2,003

1,635 1,448

1,347 1,390 1,474 1,546 1,602 1,643

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2006 2007 2008 2009 2010 2011 2012 2013 2014

Pachinko Sales Pachislot Sales Pachinko Installation Pachislot Installtion

* Number of Pachinko and Pachislot machine sales in 2014 are the company’s estimate.


Authority Approval of Pachinko and Pachislot Models

（thousand units）

2007 2008 2009 2010 2011 2012 2013 2014 2015/4

Pachinko machine models

approved441 373 537 544 535 534 412 505 159

Pachinko model approval rate 80.9％ 79.2％ 80.0％ 82.8％ 88.6％ 86.0％ 85.3％ 83.9％ 72.9%

Pachislot machine models

approved331 345 349 295 242 253 251 203 41

Pachislot models approval rate 42.5％ 43.5％ 42.9％ 40.1％ 39.3％ 36.0％ 39.0％ 37.2％ 43.2％

Source: Security Communications Association

441

373

537 544 535 534

412

505

159

331 345 349 295

242 253 251 203

41

80.9% 79.2% 80.0%82.8%

88.6%86.0% 85.3% 83.9%

72.9%

42.5% 43.5%

42.9% 40.1% 39.3%36.0%

39.0%

37.2%

43.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015/4

Pachinko Machine models Approved Pachislot Machine models Approved

Pachinko Models Approval Ratio Pachislot Models Approval Ratio


Circulation of Pachinko and Pachislot Machines

【Regulatory Restrictions】

【Pachinko and Pachislot Machine Certification Process】

Pachinko and Pachislot machines are governed by the Act on Control and Improvement of

Amusement Business, etc., its enforcement regulations, Regulations Concerning the Certification

and Official Inspection of Pachinko and Pachislot Machines, and other laws and regulations. A

manufacturer files an application for format inspection with a designated testing agency to receive

certification of compliance. Then, once approval following examination by a prefectural public

safety commission is obtained, the manufacturer sells and delivers the machines to Pachinko

parlors. A Pachinko parlor starts operation once inspection by a competent police station is

completed.

Pachinko and Pachislot

manufacturer

Designated testing agency

Prefectural public

safety commission Pachinko parlor

Competent police station

① ②③

④

⑤⑥ ⑦

⑧

① Application for format inspection

② Issue of format inspection result

③ Application for format examination

④ Certification

⑤ Contract and delivery

⑥ Application for approval

⑦ Approval

⑧ Start of operation


Pachinko and Pachislot Machine Structure

【Pachinko Machine (detachable type)】【Pachislot Machine（separable slot）】

Gauge Board

Body (flame)

Combined Unit

Chassis

Panel

� A Pachinko machine consists of a body and a

gauge board that is detachable. When installing a new

model, only the gauge board needs to be replaced and

there is no need to change the body.

� The detachable-type Pachinko machine design

was invented by Heiwa in 1971 and is now adopted by

all Pachinko machine manufacturers.

� With the separable slot design, the chassis and the

unit are separate. The installed model can be replaced

by a new model just by replacing the unit and the

panel without changing the chassis.

� The chassis (separable slot) developed by Heiwa’s

subsidiary Olympia Co., Ltd. has been employed for

the Group’s Pachislot machines since 2002.


Affixing Patterns to

the ReelsProduct Inspection

Assembling the front

units

24

Pachinko and Pachislot Machine Manufacturing Process

Adjusting Pins Product Inspection

Nailing Pins Shipping

Mounting

GadgetsCombining the

Units

Shipping

【Pachinko Machine】【Pachislot Machine】


Reuse of Pachislot Machine Components

Traded-in Machine

Disassembling Process

Components for Reuse


5. Golf Market Information


Pachinko & Pachislot Entertainment (excl. Pachinko & Pachislot)

Hobbies Tourism

Sports Golf Market

27

Golf Market Size

Leisure Market

65,216 billion yen

901 billion yen

（1.4％）

24,260 billion yen

（37.2％）

8,198 billion yen

（12.6％）

1,022 billion yen

（15.4％）

3,918 billion yen

（6.0％）

【2013 Leisure Market Size】

【Trends of Golf Market】

18,818 billion yen

（28.9％）

2006 2007 2008 2009 2010 2011 2012 2013

Golf Market size (billion yen） 10,420 10,770 10,550 10,000 9,650 9,220 9,110 9,010

Player Population 890 830 950 960 810 800 790 860

Annual Average Spending per Play 11,350 12,190 11,010 12,900 12,240 11,960 13,020 9,950

（billion yen）（ten thousand）

Source: Japan Productivity Center

10,420

10,770 10,550

10,000

9,650

9,220 9,110 9,010

890

830

950 960

810 800 790

860

0

200

400

600

800

1,000

1,200

8,000

8,500

9,000

9,500

10,000

10,500

11,000

2006 2007 2008 2009 2010 2011 2012 2013

Golf Market Size Golf Population


6. Company Information


Company Profile

29

As of March 31, 2015

Trade Name Heiwa Corporation

Head Office 1-16-1 Higashiueno, Taitoku, Tokyo, 110-0015

Foundation 1949

Establishment 1960

Main BusinessDevelopment, manufacture and marketing of

Pachinko and Pachislot machine

Capital 16,755 million yen

Accounting Period 12 months ending March 31

Bored of Directors Representative Director/ President Katsuya Minei

Representative Director/ Vice President Toshinobu Moromizato

Director Yasuaki Ikemoto

Director Yutaka Ota

Director Mikio Miyara

Director Toshio Yoshino

Director Katsumasa Nakada

Director Takashi Sagehashi

Director Nobuki Katsumata

Director Hisao Arai

Director Tamiki Kaneshi

Outside Director Kota Yamaguchi

Full-time Audit and Supervisory Board

Member

Koji Kawano

External Audit and Supervisory Board

Member

Takeshi Sato

External Audit and Supervisory Board

Member

Akinori Endo

Number of Employees Consolidation : 9,678 employees Non-consolidation：813 employees

Factory and OfficesFactory : Isesaki Branch Offices：Hokkaido, Sendai, Takasaki,

Tokyo, Nagoya, Osaka, Hiroshima, Fukuoka and other 20 branch offices

Main Banks Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, BTMU

Trade Name

Share of

Voting Rights

(%)

Head Office Main Business

Heiwa Corporation － Taitoku,

Tokyo

Development,

manufacture and

marketing of Pachinko

and Pachislot machine

Olympia Co., Ltd. 100.0Taitoku,

Tokyo

Development and

manufacture of

Pachinko and Pachislot

machine

AMTEX Co., Ltd. 100.0Isesaki,

Gunma

Manufacture of

Pachinko machine

PGM Holdings K.K. 80.4Minatoku,

Tokyo

Management of golf

business

Pacific Golf Properties K.K.100.0

（100.0）Minatoku,

Tokyo

Holding shares of

subsidiaries in the group

(Golf Business)

Pacific Golf Management K.K.100.0


Tokyo

Golf course

management

PGM Properties K.K.100.0


Tokyo

Golf course

administration

P

G

Olympia Co., Ltd.

（ Pachinko and Pachislot

Machine Business ）

AMTEX Co., Ltd.

（Pachinko and Pachislot

Machine Business）

PGM Holdings K.K.

Code Number2466

（Golf Business）

Heiwa Corporation

（ Pachinko & Pachislot Business ）

【Major Group Companies】Our group consists of 20 wholly owned subsidiaries, 1 unconsolidated subsidiary, 2

affiliated companies and 1 related company. Our principal businesses are Pachinko

and Pachislot machine business and golf business develop in leisure market.

P

P

G

G

G

*P : Pachinko and Pachislot Machine Business G : Golf Business


Company History

30

1 9 4 9 Founded in Kiryu, Gunma. Started to produce and sell Pachinko machine playing with tokens

1 9 6 0 Comic & Co. Y.K. and Heiwa Bussan K.K merged to form Towa Kogyo Co., Ltd.

1 9 6 4 Company name changed from Towa Kogyo Co. to Heiwa Kogyo Co.

1 9 7 1 Developed industry’s first Pachinko machine permitting simple replacement of its core elements

1 9 8 8 Company name changed from Heiwa Kogyo Co., Ltd. to Heiwa Corporation.

Shares registered for OTC transaction

1 9 9 1 Sold the industry’s first Pachinko machine with color LCD, Mohjong Monogatari.

Shares listed on the second section of Tokyo Stock Exchange

1 9 9 7 Shares listed on the first section of Tokyo Stock Exchange

1 9 9 8 Sold Pachinko machine tied up with nationally popular cartoon “Lupin the Third”

Business alliance with Olympia Co., Ltd., a manufacturer of Pachislot machines

2 0 0 2 Joint development with Olympia Co., Ltd. in the industry’s first Pachislot machine permitting simple replacement of its core elements.

2 0 0 4 Additional acquisition of shares of Olympia Co., Ltd.

2 0 0 7 Relocated Head Office to Taitoku, Tokyo

Business integration with Olympia Co., Ltd. By the stock exchange agreement.

2 0 0 9 Succeeded part of Olympia Co., Ltd.’s business through stock split.

2 0 1 1 Made PGM Holdings K.K., a golf course operator, a consolidated subsidiary.

2 0 1 3 Built head office building

2 0 1 4 Relocated Head Office (1-16-1 Higashiueno Titoku, Tokyo, 110-0015)


Japanese Institutions Individuals

Japanese Financial Institutions Foreign Institution and individuals

Japanese Security firms Treasure Stocks

Stock Information

31

Name Shares % of Shares

Ishihara Holdings 38,250,000 38.32％

Shinya Ishihara 2,994,000 2.99％

Masayuki Ishihara 2,994,000 2.99％

Japan Trustee Services Bank, Ltd. (Trust Account) 2,149,100 2.15％

The Master Trust Bank of Japan, Ltd.（Trust Account） 1,362,800 1.36％

Yuri Ishihara 1,000,000 1.00％

MELLON BANK, N.A. AS AGENT FOR ITS CLIENT MELLON OMNIBUS US PENSION 780,400 0.78％

Junko Ishihara 750,000 0.75％

The Gibraltar Life Insurance Co., Ltd. 744,700 0.74％

THE BANK OF NEW YORK, NON-TREATY JASDEC ACCOUNT 740,050 0.74％

【Major Shareholders】

Japanese Institution 39,937,100

Individuals 20,730,840

Japanese Financial Institution 9,257,600

Foreign Institutions and Individuals 14,849,483

Japanese Security firms 1,033,695

Treasury Stocks 14,000,342

【Stock Distribution by Type of Shareholders】

Total Number of Shares Authorized to be Issued 228,903,400

Total Number of Shares Issued 99,809,060

Number of Shareholders 14,269

Japanese

Institutions

40.10％

Individuals

20.77％

Japanese Financial

Institutions

9.28％

Foreign

Institutions and

individuals

14.88％

Japanese Security

firms 1.04％Treasury Stocks 14.03％

Documents

Supplementary Material - 株式会社平和 · Pachislot Machines 2,004 2,634 4,032 70 8,962 7,613 6,317 15,282 12,731 % 12.1 ％ 8.9 ％ 23.2 ％ 0.6 ％ 27.5 ％ 33.7 ％ 30.2 ％