BUFFALO INC. Business Report 2025
Fiscal Year: April 1, 2024 to March 31, 2025
Key Products: Wi-Fi 7, NAS, Airdog
To Our Stakeholders
A message from Hiroyuki Maki, President & C.E.O. of BUFFALO INC.
Letter from the President
I extend my sincere gratitude to all stakeholders for their continued support. May 1, 2025, marked the 50th anniversary of BUFFALO INC. (BUFFALO). Prior to this, MELCO HOLDINGS INC. (MELCO HD) and Buffalo merged on April 1, 2025, to form the listed company BUFFALO INC. I took over from our founder, Makoto Maki, in 2015, managing Melco HD as President for 10 years. We have completed group reorganization and reforms to expand our business domain and fortify our management foundation. This period has been fortunate, renewing our resolve to focus on BUFFALO's mission.
For sustainable growth and maximizing corporate value, we will manage each business independently and autonomously. This reorganization will clarify growth strategies and reallocate management resources. We will separate management and executive roles within our operating company for swift decision-making, striving for our founding concept of "original value creation." Your continued understanding and support are appreciated.
June 2025
Management Concept and Code of Conduct
On the occasion of the merger and the 50th anniversary, BUFFALO INC. formulated a management concept and code of conduct based on its founding spirit:
- Management Concept: Original Value Creation
- Code of Conduct:
- Fair and Open: Fairness and an open attitude
- Simple and Speedy: Execute simply and swiftly
- Logical Thinking: Logical way of thinking
- Leading Edge: Go to the cutting edge and then the forefront
POLICY
Completed reorganization to realize swift business execution and profit improvement
Despite shrinking Japanese demand and rising costs due to the weak yen, profitability improved through price increases. The Japanese economy saw increased inbound demand, but personal consumption remained stagnant due to rising necessity prices. The global economic outlook is uncertain due to the situation in Ukraine and the Middle East. Capital investment in the digital home appliance industry for corporate users is trending upward, while home user market demand is shrinking. To improve profitability in the IT-Related Business, prices for some computer peripherals were raised in April 2024. We also focused on selling main products. Shimadaya Corporation was spun off, limiting its contribution to the Food Business to the interim period. As a result, net sales were 143,170 million yen (down 1.8% YoY), operating income was 8,899 million yen (up 242.6% YoY), ordinary income was 9,030 million yen (up 250.6% YoY), and net income attributable to parent company shareholders was 6,006 million yen (up 99.4% YoY).
Promoting sales of high value-added products
In the IT-Related Business, we launched the TeraStation, a NAS for SOHO and small businesses, emphasizing performance and reliability for digital transformation. We also launched a tri-band router compatible with Wi-Fi 7, supporting MLO technology for stable, high-speed home communication. Market conditions remain tough, leading us to maintain market share by sales volume and improve profitability through price increases.
Sales volume for the Airdog high-performance air purifier and AMD's RYZEN CPUs increased year-on-year. An allergy awareness campaign boosted sales through department stores for the Airdog series.
For the IT-Related Business, net sales were 121,100 million yen (up 13.6% YoY) and segment income was 7,573 million yen (up 1,848.5% YoY). In the Food Business, net sales were 21,862 million yen (down 43.9% YoY) and segment income was 2,629 million yen (down 21.5% YoY).
*1 Wi-Fi is a registered trademark of Wi-Fi Alliance.
*2 AMD, Ryzen and combinations thereof are trademarks of Advanced Micro Devices, Inc.
Focusing on the IT-Related Business to further improve profitability
We transitioned from a pure holding company to an operating company by merging with our wholly-owned subsidiary Buffalo Inc. and changing our trade name on April 1, 2025. An executive officer system will separate management and business execution for swift operations. Our exclusive sales agreement for the Airdog series with our main overseas partner expires on August 29, 2025. We will focus on the IT-Related Business to enhance profitability.
Forecast for the fiscal year ending March 31, 2026, anticipates net sales of 106,000 million yen (down 26.0% YoY), operating income of 4,500 million yen (down 49.4% YoY), ordinary income of 4,500 million yen (down 50.2% YoY), and net income attributable to parent company shareholders of 3,200 million yen (down 46.7% YoY).
Recent situation of our company
- June 2023: Transitioned to a company with an audit and supervisory committee to strengthen auditing and supervisory functions.
- March 2024: Focused on stable supply and maintaining prices during the COVID-19 pandemic.
- April 2024: Increased prices of 1,090 BUFFALO-branded products.
- October 2024: Spun off and listed Shimadaya (Standard Market).
- April 2025: MELCO HOLDINGS merged with Buffalo, changing the trade name to BUFFALO. Introduced an executive officer system and departmental organization.
- June 2025: Introduced a restricted stock unit remuneration plan.
Financial Performance Trends (Graphs described textually)
Consolidated Net Sales: Showed fluctuations, with 143,170 million yen in March 2025, and a forecast of 106,000 million yen for March 2026 (est.).
Consolidated Ordinary Income: Decreased from 13,083 million yen in March 2022 to a forecast of 4,500 million yen for March 2026 (est.). The margin also decreased.
Net Income Attributable to Parent Company Shareholders: Varied, reaching 6,006 million yen in March 2025, with a forecast of 3,200 million yen for March 2026 (est.).
Net Income per Share: Fluctuated, with 383.99 yen in March 2025, and a forecast of 210.45 yen for March 2026 (est.).
BUSINESS SEGMENT
Value Chain Engineering
The company's strength lies in its engineering cycle, deepening activities in IT hardware. Information technology now encompasses intangible value in services and solutions. BUFFALO INC. is accelerating added value creation through its engineering activities.
Engineering Cycle Diagram Description
The diagram illustrates a circular process encompassing:
- Plan
- Sales plan
- Procurement
- Manufacturing
- Inspection
- Shipment
- Sales
- Support
- Product procurement
- Cost reduction
- Quality improvement
- Product development
- Service enhancement
This forms a circular system providing feedback, contrasting with a limited or one-way business practice. The engineering cycle is offered as a solution.
IT-Related Business
This segment focuses on digital consumer electronics and computer peripherals. Products include network Wi-Fi routers and access points for corporate users, cable LAN switches, external drives, NAS with remote monitoring for corporate users, and MagWiper (magnetic data degaussing). Products enhancing daily life include the Airdog air purifier, nasne® network recorder/media storage, and digital music library devices. Services include data recovery, remote management (Kiki Navi), and network construction for corporate users.
*nasne® is a registered trademark of Sony Interactive Entertainment LLC.
Product Highlights and Awards
- Wi-Fi 7-compatible router
- nasne®
- NAS for corporate users
- Airdog
- External hard disk
- Digital music library
- Kiki Navi
- BUFFALO Regular Data Recovery Service
BCN AWARD 2025 (January to December 2024): BUFFALO INC. won in 15 categories, including Wireless LAN (23rd consecutive year), NAS (12th consecutive year), External HDD (17th consecutive year), and Hub (24th consecutive year). These awards are based on aggregate sales at major electrical appliance stores across Japan.
TOPICS
TOPIC 1: Initiatives for Value Chain Engineering
Entered into a capital and business alliance agreement with Secure Inc.
On February 14, 2025, BUFFALO INC. entered into a capital and business alliance with SECURE, INC. to gain business synergies. SECURE provides high-value-added solutions combining AI technology with entrance/exit management, surveillance, and physical security systems.
The synergy is defined as "functional and infrastructure synergy," combining current products and operations. Cost synergies are the initial focus, aiming for new business creation and domain expansion in the medium to long term. Synergies will be achieved through joint purchasing, construction/installation consolidation, and contact center consolidation.
Synergy Stages:
- Stage 1: Functional and infrastructure synergy (Short term): Synergy through linkage of current products and operations. Includes joint purchasing, consolidation of construction/installation, and contact center consolidation.
- Stage 2: Engineering synergy (Medium term): Improvement of products, services, and operations in current businesses. Includes joint development of storage/network equipment, kitting/construction improvement, and equipment quality improvement.
- Stage 3: Business creation synergy (Long term): Joint development of new services and business domains. Includes overseas expansion and expansion of AI solutions.
TOPIC 2: DELA™ network switch received the Stereo Sound Grand Prix 2024
The DELA™ network switch (high-end model "S1") from DELA Inc. (a BUFFALO group company) received the Stereo Sound Grand Prix 2024. This award recognizes its contribution to improving sound quality during streaming playback. It is the second such award for DELA, following the DELA Music Library in 2022, and notable for a network switch product.
BUSINESS OVERVIEW
Financial Performance Summary
Consolidated Net Sales
Total net sales for March 2025 were 143,170 million yen. The IT-Related segment contributed 121,100 million yen (84.6% of total), showing a 13.6% YoY increase. The Food segment contributed 21,862 million yen (15.3% of total), a 43.9% YoY decrease.
Consolidated Operating Income
Operating income for March 2025 was 8,899 million yen. The IT-Related segment income was 7,573 million yen (up 1,848.5% YoY), while the Food segment income was 2,629 million yen (down 21.5% YoY).
Net Income per Share
Net income per share for March 2025 was 383.99 yen.
Consolidated Net Sales and Segment Income/Loss Breakdown
IT-Related Business: Net Sales: 121,100 million yen (up 13.6% YoY). Segment Income: 7,573 million yen (up 1,848.5% YoY).
Food Business: Net Sales: 21,862 million yen (down 43.9% YoY). Segment Income: 2,629 million yen (down 21.5% YoY).
Financial Trends (Graphs described textually)
Consolidated Net Sales: Trended around 140-145 billion yen from March 2022 to March 2025, with a forecast of 106 billion yen for March 2026 (est.).
Consolidated Operating Income: Showed significant growth from March 2024 (2,597 million yen) to March 2025 (8,899 million yen), with a forecast of 4,500 million yen for March 2026 (est.).
Net Income per Share: Increased from 179.66 yen in March 2024 to 383.99 yen in March 2025, with a forecast of 210.45 yen for March 2026 (est.).
FINANCIAL STATEMENTS
Consolidated Balance Sheet
| Item | Fiscal Year Ended March 31, 2025 (million yen) | Fiscal Year Ended March 31, 2024 (million yen) |
|---|---|---|
| 1 Assets | ||
| Current assets | 69,043 | 75,627 |
| Non-current assets | 7,743 | 20,308 |
| Property, plant and equipment | 786 | 11,080 |
| Intangible assets | 2,846 | 3,705 |
| Investments and other assets | 4,109 | 5,523 |
| Total assets | 76,786 | 95,936 |
| 2 Liabilities | ||
| Current liabilities | 30,795 | 29,068 |
| Non-current liabilities | 953 | 2,945 |
| Total liabilities | 31,749 | 32,014 |
| 3 Net assets | ||
| Shareholders' equity | ||
| Capital | 1,000 | 1,000 |
| Capital surplus | 250 | 250 |
| Retained earnings | 43,567 | 62,097 |
| Treasury stock | (327) | (756) |
| Total shareholders' equity | 44,489 | 62,590 |
| Accumulated other comprehensive income | ||
| Net unrealized gains (losses) on other securities | 357 | 1,030 |
| Deferred gains or losses on hedges | (55) | 150 |
| Foreign currency translation adjustments | (24) | (4) |
| Remeasurements of defined benefit plans | 270 | 155 |
| Total accumulated other comprehensive income | 547 | 1,332 |
| Total net assets | 45,037 | 63,922 |
| Total liabilities and net assets | 76,786 | 95,936 |
Point 1: Assets
Total assets decreased by 19,150 million yen to 76,786 million yen by March 31, 2025. Current assets decreased by 6,584 million yen, mainly due to a reduction in accounts receivable-trade. Non-current assets decreased by 12,565 million yen, primarily due to a reduction in property, plant, and equipment.
Point 2: Liabilities
Total liabilities decreased by 264 million yen to 31,749 million yen. Current liabilities increased by 1,727 million yen, driven by higher income taxes payable and notes/accounts payable-trade. Non-current liabilities decreased by 1,991 million yen.
Point 3: Net Assets
Total net assets decreased by 18,885 million yen to 45,037 million yen. This was mainly due to net income, dividend payments, dividend in kind, treasury stock acquisition, and changes in consolidation scope.
Consolidated Income Statement
| Item | Fiscal Year from April 1, 2024 to March 31, 2025 (million yen) | Fiscal Year from April 1, 2023 to March 31, 2024 (million yen) |
|---|---|---|
| Net sales | 143,170 | 145,773 |
| Cost of sales | 103,804 | 109,700 |
| Selling, general and administrative expenses | 30,466 | 33,474 |
| Operating income | 8,899 | 2,597 |
| Non-operating income | 328 | 287 |
| Non-operating expenses | 198 | 309 |
| Ordinary income | 9,030 | 2,575 |
| Extraordinary income | 616 | 2,097 |
| Extraordinary loss | 387 | 63 |
| Net income before taxes and other adjustments | 9,259 | 4,609 |
| Income, resident and enterprise taxes | 3,772 | 1,308 |
| Income taxes-deferred | (520) | 288 |
| Net income attributable to parent company shareholders | 6,006 | 3,012 |
Consolidated Cash Flow Statement
| Item | Fiscal Year from April 1, 2024 to March 31, 2025 (million yen) | Fiscal Year from April 1, 2023 to March 31, 2024 (million yen) |
|---|---|---|
| Cash flows from operating activities | 14,725 | 6,625 |
| Cash flows from investing activities | (1,363) | 5,366 |
| Cash flows from financing activities | (7,159) | (2,606) |
| Effect of exchange rate changes on cash and cash equivalents | (17) | 66 |
| Net increase (decrease) in cash and cash equivalents | 6,184 | 9,451 |
| Cash and cash equivalents at the beginning of the period | 29,958 | 20,506 |
| Decrease of cash and cash equivalents due to the exclusion from consolidation | (4,534) | -- |
| Cash and cash equivalents at the end of the period | 31,609 | 29,958 |
Financial Trends (Graphs described textually)
Total Assets: Decreased from 95,936 million yen in March 2024 to 76,786 million yen in March 2025.
Capital to Asset Ratio: Was 58.7% in March 2025, down from 66.6% in March 2024.
For detailed information, visit BUFFALO IR.
COMPANY INFORMATION (Current as of April 1, 2025)
BUFFALO INC.
- Company Name: BUFFALO INC.
- Capital Stock: 1 billion yen
- Business Activities: Development, manufacture, and sale of digital home appliances and PC peripherals; data recovery service.
- Number of Employees: Non-consolidated: 658; BUFFALO Group consolidated: 1,042
- Number of Group Companies: 14 (11 in Japan; 3 overseas)
Board Members (Current as of June 25, 2025)
- Representative Director: Hiroyuki Maki
- Director (Full-time Audit & Supervisory Committee Member): Yoshimasa Nagase
- Director: Chisato Nakayama
- Director (Full-time Audit & Supervisory Committee Member): Jun Kamiya
- Director: Iwao Tsusaka
- Director (Audit & Supervisory Committee Member): Hiroyuki Miyajima
- Director (Audit & Supervisory Committee Member): Kumiko Otsuka
Executive Officers (Current as of April 1, 2025)
- President & C.E.O.: Hiroyuki Maki
- Executive Vice President & C.O.O.: Taiji Watanabe
- Senior Managing Executive Officer: Manabu Wada
- Managing Executive Officer: Takashi Nishiwaki
- Managing Executive Officer: Katsumi Iwasaki
- Managing Executive Officer: Manabu Yano
- Managing Executive Officer: Kazunori Yokoi
- Executive Officer: Shinya Matsuzaki
- Executive Officer: Norihito Sato
- Executive Officer: Nobuhiro Tamura
- Executive Officer: Takashi Hinata
- Executive Officer: Yasuo Takami
- Executive Officer: Koji Mitani
- Executive Officer: Tsuyoshi Tomiyama
- Executive Officer: Hiroshi Nagao
- Executive Officer: Masaya Ishimaru
- Executive Officer: Makoto Oya
Group Companies
Japan
- CFD Sales Inc.: Development, manufacture and sale of personal computer parts and peripheral equipment.
- BIOS Corporation: Development, manufacture and sale of storage-related products.
- BUFFALO IT Solutions Inc.: Sale of network-related equipment and PC peripherals, and network infrastructure construction and maintenance services.
- Advanced Design Corp.: Data recovery/erasure/conversion services and manufacture and sale of data erasure products.
- DigiOn, Inc.: Development and sale of network and storage software.
- DELA Inc.: Development and sale of audio equipment and related products.
- toConnect, Inc.: Direct marketing of products.
Overseas
- USA: BUFFALO AMERICAS, INC.: Sale of network-related equipment and PC peripherals.
- Taiwan: BUFFALO TECHNOLOGY (TAIWAN) Inc.: Procurement and management of parts.
STOCK INFORMATION (Current as of March 31, 2025)
Stock
- Number of Shares Outstanding: 15,300,000 (including 94,538 treasury stocks)
- Number of Shareholders: 6,097
Major Shareholders (Top 10)
| Shareholder Name | Number of Shares Held (1,000 Shares) | Shareholding Ratio (%) |
|---|---|---|
| MELCO Group Inc. | 6,315 | 41.53(41.27) |
| Hiroyuki Maki | 2,247 | 14.78(14.69) |
| ECM MF | 1,567 | 10.31(10.24) |
| The Master Trust Bank of Japan, Ltd. (trust account) | 623 | 4.09(4.07) |
| Maki Makoto Foundation | 500 | 3.28(3.26) |
| Custody Bank of Japan, Ltd. (trust account) | 144 | 0.94(0.94) |
| Taiji Iwasaki | 142 | 0.93(0.93) |
| Melco Mutual Aid Association | 124 | 0.81(0.81) |
| JP MORGAN CHASE BANK 385781 | 82 | 0.54(0.54) |
| Hiromi Maki | 79 | 0.52(0.51) |
Notes: Shareholding ratios are calculated based on total outstanding shares less treasury stocks. Ratios in parentheses include treasury stock.
Shareholder Notes
- Fiscal year-end: March 31
- Ordinary general meeting of shareholders: June
- Dates to determine stock ownership: For voting rights and year-end dividends: March 31. For interim dividends: September 30.
- Stock listings: Standard Market of the Tokyo Stock Exchange and Premier Market of the Nagoya Stock Exchange.
- Securities code: 6676
- Stock trading name: BUFFALO INC. (or BUFFALO)
- Number of shares per trading unit: 100 shares
- Method of public notice: Posted electronically on https://www.buffalo.jp/koukoku/
- Stock agencies: Sumitomo Mitsui Trust Bank, Limited.
- Managing underwriter: Daiwa Securities (Main), Nomura Securities, Mizuho Securities, SMBC Nikko Securities (Secondary).
Shareholding Distribution by Type of Shareholder
The distribution shows:
- Financial institutions: 5.34%
- Financial instruments business operators: 1.16%
- Other Japanese corporations: 45.36%
- Foreign corporations: 16.18%
- Individuals and others: 31.32%
- Treasury stock: 0.61%
Notes: Share numbers are rounded down to the nearest thousand. Composition ratios are rounded to two decimal places.
Tokyo Headquarters: Pacific Century Place Marunouchi, 1-11-1 Marunouchi, Chiyoda-ku, Tokyo, 100-6215 Japan. TEL: 81-3-4213-1122 FAX: 81-3-4213-1123
Nagoya Headquarters: Akamon-dori Bldg., 3-30-20 Ohsu, Naka-ku, Nagoya-shi, Aichi, 460-8315 Japan. TEL: 81-52-249-6610 FAX: 81-52-249-6609
