[Company analysis] Maruhan Corporation (マルハン)

「Maruhan Corporation (マルハン)」is a mutual entertainment company that operates bowling alleys, movie theaters, and most of all, pachinko hall "Maruhan". In the entertainment industry, this company has the largest sales, with an overwhelming scale of 200 million annual visitors. In the past, the company had prepared for listing on the Tokyo Stock Exchange, but they eventually forfeited it. The number of consolidated employees is approximately 12,230.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Maruhan Corporation
Company name (Japanese)	マルハン
Date of establishment	May 1957
Headquarters location	〒602-0822 京都府京都市上京区出町今出川上る青龍町231
Capital	10,000
Consolidated sales	1,550,396
Consolidated operating profit	33,611
Consolidated total assets	557,903
Consolidated capital	290,642
Capital adequacy ratio	52.1%
Consolidated number of employees	12,230

 

 

 

2. Summary and Features

 
「Maruhan」was established by Han Chang-u(韓昌祐) in 1972, and is known for introducing the hall-type pachinko store for the first time in the industry. In the past, pachinko halls in Japan had a dirty and gruesome atmosphere. However, soon after the introduction of the "Pachinko hall", which has a bright atmosphere where the inside can be seen from the outside, become popular rapidly.

 

Currently,「Maruhan」has stores all over Japan except Tokushima, Shimane and Okinawa. With a total of 317 stores, this is the largest company in the pachinko industry. 「Maruhan」is also known as a family company which the founding family is deeply engaged in its management. As of 2009, their sales exceeded ¥ 2 trillion.

During the heyday pachinko industry, the whole market size was evaluated about 30 trillion yen. However, the amount has been shrink after 2000s, the sales also have fallen to about half that amount, and the number of pachinko store is decreasing every year. Most of all, the reputation about pachinko industry is getting worse. So, other entertainment industry such as theme parks and golf courses have some room for groth, but pachinko, will definitely shrink in the long term.

So now,「Maruhan」is trying to expand its business to the financial industry. For the first time as a Japanese company, by investing in「Satapana Bank Plc.」, A commercial bank in Cambodia, and they have also entered the banking industry. Opened on April 1, 2016, this bank currently has 160 offices throughout Cambodia and holds the second largest market share in Cambodia.

 

 

 

3. Major Business

 

■ Comprehensive amusement business
They operate pachinko halls, bowling alleys, movie theaters, building management business, food and beverage business, golf business, overseas financial business, etc.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,678,820	1,550,934	1,550,396
Consolidated operating profit		35,327	31,611	33,611
Consolidated total assets		499,484	515,801	557,903
Consolidated net assets		261,664	274,457	290,642
Breakdown of sales	Pachinko business	1,644,170	1,515,809	1,511,250
	Financial business	12,926	15,063	17,785
	Others	35,887	34,940	35,835
	Adjustments	-14,164	-14,878	-14,475