# KAWAI MUSICAL INSTRUMENTS MANUFACTURING CO.,LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第99期(2025/04/01－2026/03/31) (S100YG4C)
> Page: https://vizora.meequs.com/en/company/kawai
> Retrieved: 2026-09-30T21:02:13.294Z

## Company

Kawai Musical Instruments Manufacturing, founded in 1927, is a company in Non-ferrous Metals & Wires listed on TSE Prime. It has 2,917 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | KAWAI MUSICAL INSTRUMENTS MANUFACTURING CO.,LTD. |
| Ticker | 7952 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/7952.T) |
| Listing | TSE Prime |
| Head office | 静岡県浜松市中央区寺島町200番地 |
| Representative (per filing) | 代表取締役社長 執行役員 河合 健太郎 |
| Founded | Aug 1927 |
| Share capital | ¥7.12B |
| Employees (consolidated) | 2,917 |
| Average salary (parent only) | ¥6M |
| Fiscal year end | March |
| Website | www.kawai.co.jp (https://www.kawai.co.jp/) |
| Corporate number | 2080401001323 |
| EDINET | E02363 |
| Industries (Vizora) | Non-ferrous Metals & Wires, IT Services & System Integration, TVs, Audio & Musical Instruments, Education |

> Profile source: annual securities report (S100YG4C, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Education (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 17.3 | 26 |
| Profitability | 8.3 | 30 |
| Cash conversion | 1.8 | 28 |
| Efficiency | 31.7 | 30 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 78% of Kawai Musical Instruments Manufacturing's sales come from Musical instruments and Education, with Material processing and Other Business making up much of the rest.
- Operating profit was close to zero, a slight profit per ¥100 of sales.
- Revenue changed -1.2% from the prior year, operating profit -64.2%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥72B |  |
| Operating income | ¥113M | Margin 0.2% |
| Net income | ¥1.14B | Margin 1.6% |
| Free cash flow | -¥3.69B |  |
| Largest business | Musical instruments and Education | of segment revenue 78.4% |
| Employees (consolidated) | 2,917 |  |
| EPS | ¥66.17 |  |
| Book value per share | ¥2365.28 |  |
| Equity ratio | 59.3% |  |
| Shares outstanding | 9,011,000 |  |
| Treasury shares | 372,000 |  |
| Shareholders | 5,342 |  |
| Average salary (parent only) | ¥6M | Filing company only |
| Cash ratio | 12.7% | Cash ÷ revenue 13.9% |
| Vs. industry median margin | -4.8 pp | TVs, Audio & Musical Instruments |
| ROE | 3.1% | Derived from disclosed figures |
| ROA | 1.5% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 74% of positive segment profit
- FY2026, segment profit share differs by 59 points

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥67520000000 | ¥72049000000 | +6.7% |
| Operating income | ¥3492000000 | ¥113000000 | -96.8% |
| Operating margin | 5.2% | 0.2% | -5 pp |
| Employees | 2,868 people | 2,917 people | +1.7% |
| Cash and equivalents | ¥18417000000 | ¥10029000000 | -45.5% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 楽器教育 → 楽器教育 | 78.4% |
| 楽器教育 → 事業再編・廃止 | 3.3% |
| 素材加工 → 素材加工 | 13.5% |
| その他 → 事業再編・廃止 | 4.8% |
| 新設・再編 → 素材加工 | 0.9% |
| 新設・再編 → その他事業 | 7.2% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Musical instruments and Education | 5 years | +0.5% | ¥56492000000 | -1.5% | 2 |
| Material processing | 5 years | +2.6% | ¥10343000000 | 7.3% | 2 |
| Other Business | 2 years | +2.3% | ¥5213000000 | 5.2% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 72,049 | 100.0% | S100YG4C |
| Cost of revenue | 53,307 | 74.0% | S100YG4C |
| Gross profit | 18,742 | 26.0% | S100YG4C |
| SG&A | 18,629 | 25.9% | S100YG4C |
| Operating income | 113 | 0.2% | S100YG4C |
| Ordinary income | 952 | 1.3% | S100YG4C |
| Pretax income | 1,614 | 2.2% | S100YG4C |
| Income tax | 472 | 0.7% | S100YG4C |
| Net income | 1,141 | 1.6% | S100YG4C |
| Net income attributable to owners | 1,141 | 1.6% | S100YG4C |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 74 |
| SG&A | 26 |
| Operating income | 0 |
| (Ref.) Net income | 2 |

### Margin funnel

Gross margin 26.0% → Operating margin 0.2% → Net margin 1.6%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -1.2%; Core profit growth: -64.2%
Operating leverage (core profit growth ÷ revenue growth): 53.90×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 72,918 | 72,049 | -869 | -1.2% |
| Gross profit | 18,296 | 18,742 | 446 | +2.4% |
| Operating income | 316 | 113 | -203 | -64.2% |
| Net income attributable to owners | 405 | 1,141 | 736 | +181.7% |
| Operating cash flow | -1,698 | -761 | 937 | — |
| Free cash flow | -3,270 | -3,686 | -416 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 71,302 | 2,960 | 4.2% | 1,545 | 1,572 | 260 | S100LQY9 |
| FY ending Mar 2021 | 67,520 | 3,492 | 5.2% | 2,579 | 4,942 | 4,082 | S100OJ73 |
| FY ending Mar 2022 | 85,703 | 6,696 | 7.8% | 5,046 | 5,082 | 4,029 | S100R65E |
| FY ending Mar 2023 | 87,771 | 5,045 | 5.7% | 3,672 | -613 | -2,018 | S100TWJL |
| FY ending Mar 2024 | 80,192 | 3,255 | 4.1% | 2,782 | 1,442 | 114 | S100W5N2 |
| FY ending Mar 2025 | 72,918 | 316 | 0.4% | 405 | -1,698 | -3,270 | S100YG4C |
| FY ending Mar 2026 | 72,049 | 113 | 0.2% | 1,141 | -761 | -3,686 | S100YG4C |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥24.7M |
| Operating income per employee (consolidated) | ¥38.7K |
| Net income per employee (consolidated) | ¥391.2K |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 2,969 | 2,977 | 2,895 | 2,811 | 2,917 |
| Average salary (parent company) | ¥5.7M | ¥5.8M | ¥5.8M | ¥5.9M | ¥6M |
| Average age (parent company) | 45.9 years | 46.1 years | 45.9 years | 45.2 years | 43.4 years |
| Average tenure (parent company) | 22.4 years | 22.5 years | 22.2 years | 21.2 years | 19.2 years |

Year over year: Employees (consolidated) +3.8% · Revenue (consolidated) -1.2%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Musical instruments and Education | 56,492 | 78.4% | -852 | -1.5% |
| Material processing | 10,343 | 14.4% | 756 | 7.3% |
| Other Business | 5,213 | 7.2% | 271 | 5.2% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Musical instruments and Education | 78.4% | — | — | -1.5% |
| Material processing | 14.4% | 73.6% | 59.3 | 7.3% |
| Other Business | 7.2% | 26.4% | 19.2 | 5.2% |

Loss-making segment (excluded from profit shares): Musical instruments and Education -852 JPY mn

Segment → industry: Material processing → Non-ferrous Metals & Wires / Other Business → IT Services & System Integration / Musical instruments and Education → TVs, Audio & Musical Instruments / Musical instruments and Education → Education

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | -761 | -1.1% | S100YG4C |
| Capital expenditure | 2,925 | 4.1% | S100YG4C |
| Free cash flow | -3,686 | -5.1% | 算出 |
| Investing cash flow | -3,491 | -4.8% | S100YG4C |
| Financing cash flow | 1,548 | 2.1% | S100YG4C |
| Dividends paid | 817 | 1.1% | S100YG4C |
| Change in cash | -2,437 | -3.4% | S100YG4C |
| Cash and equivalents | 10,029 | 13.9% | S100YG4C |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 21,489 | 17,975 | 17,064 | 12,466 | 10,029 | S100TWJL, S100W5N2, S100YG4C |
| Total assets | 68,391 | 70,818 | 73,538 | 73,991 | 78,879 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Net assets | 33,559 | 38,461 | 43,141 | 44,541 | 46,745 | S100TWJL, S100W5N2, S100YG4C |
| Share capital | 7,122 | 7,122 | 7,122 | 7,122 | 7,122 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Property, plant and equipment | 13,331 | 13,535 | 13,857 | 15,008 | 17,568 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Intangible assets excluding goodwill | 636 | 610 | 596 | 492 | 624 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Goodwill | — | — | — | — | 134 | S100YG4C |
| Investment securities | 5,313 | 5,339 | 7,175 | 7,232 | 9,884 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Current assets | 46,436 | 48,687 | 49,715 | 48,518 | 48,324 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Current liabilities | 20,572 | 19,357 | 18,303 | 17,475 | 20,215 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Trade payables | 5,717 | 6,655 | 5,607 | 4,876 | 5,280 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Short-term borrowings | 5,895 | 5,217 | 5,197 | 5,562 | 7,625 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Long-term borrowings | 4,396 | 3,709 | 2,921 | 2,884 | 3,684 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Total liabilities | 34,831 | 32,357 | 30,396 | 29,449 | 32,134 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Non-controlling interests | 174 | 199 | 214 | — | — | S100R65E, S100TWJL, S100W5N2 |
| Equity attributable to owners of parent | 32,311 | 35,339 | 37,392 | 36,997 | 37,326 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Retained earnings | 24,895 | 27,923 | 29,971 | 29,556 | 29,877 | S100R65E, S100TWJL, S100W5N2, S100YG4C |
| Treasury stock | -964 | -989 | -985 | -976 | -967 | S100R65E, S100TWJL, S100W5N2, S100YG4C |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 13% | S100YG4C |
| Property, plant and equipment | 22% | S100YG4C |
| Intangibles and goodwill | 1% | S100YG4C |
| Investment securities | 13% | S100YG4C |
| Other assets | 51% | S100YG4C |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 7% | S100YG4C |
| Other liabilities | 34% | S100YG4C |
| Equity | 59% | S100YG4C |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 68,391 | 70,818 | 73,538 | 73,991 | 78,879 |
| Equity | 33,559 | 38,461 | 43,141 | 44,541 | 46,745 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 21,489 | 17,975 | 17,064 | 12,466 | 10,029 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 24.4% | S100YG4C |
| Fixed assets ÷ total assets | 22.3% | S100YG4C |
| Goodwill ÷ parent equity | 0.4% | S100YG4C |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 12.7% |
| Cash ÷ revenue | 13.9% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | -673.5% |
| Cash vs. profit gap | -1,902 JPY mn (of net income -166.7%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 71.6% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 4.1% |
| Investing CF relative to operating CF | — |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 5.9% | 1.25× | 7.4% | 2.12× | 15.6% | S100R65E |
| 2023 | 4.2% | 1.26× | 5.3% | 2.06× | 10.9% | S100TWJL |
| 2024 | 3.5% | 1.11× | 3.9% | 1.98× | 7.7% | S100W5N2 |
| 2025 | 0.6% | 0.99× | 0.5% | 1.98× | 1.1% | S100YG4C |
| 2026 | 1.6% | 0.94× | 1.5% | 2.06× | 3.1% | S100YG4C |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 9.8% | 2026-03-31 |
| エイチエスビーシー ブローキング セキュリティーズ（アジア） （常任代理人 香港上海銀行東京支店） | Major shareholder | 9.4% | 2026-03-31 |
| 株式会社河合社団 | Major shareholder | 5.5% | 2026-03-31 |
| 住友不動産株式会社 | Major shareholder | 5.1% | 2026-03-31 |
| 河合楽器取引先持株会 | Major shareholder | 4.8% | 2026-03-31 |
| ＮＯＭＵＲＡ ＰＢ ＮＯＭＩＮＥＥＳ ＬＩＭＩＴＥＤ ＯＭＮＩＢＵＳ－ＭＡＲＧＩＮ （ＣＡＳＨＰＢ） （常任代理人 野村證券株式会社） | Major shareholder | 4.3% | 2026-03-31 |
| 日本毛織株式会社 | Major shareholder | 4.0% | 2026-03-31 |
| カワイ従業員持株会 | Major shareholder | 4.0% | 2026-03-31 |
| 明治安田生命保険相互会社 | Major shareholder | 3.5% | 2026-03-31 |
| 東京海上日動火災保険株式会社 | Major shareholder | 3.2% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第99期(2025/04/01－2026/03/31) | S100YG4C | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YG4C,, |
| 有価証券報告書－第98期(2024/04/01－2025/03/31) | S100W5N2 | 2025-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W5N2,, |
| 有価証券報告書－第97期(2023/04/01－2024/03/31) | S100TWJL | 2024-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TWJL,, |
| 有価証券報告書－第96期(2022/04/01－2023/03/31) | S100R65E | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R65E,, |
| 有価証券報告書－第95期(令和3年4月1日－令和4年3月31日) | S100OJ73 | 2022-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OJ73,, |
| 有価証券報告書－第94期(令和2年4月1日－令和3年3月31日) | S100LQY9 | 2021-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LQY9,, |

## Key alliances (from the filing's material contracts)

| Partner | Type | Description | Source |
| --- | ---: | ---: | ---: |
| 学研ホールディングス | Alliance | 業務提携（教室事業・シニア向け事業など。2026年2月に資本提携は解消し業務提携のみ継続） | S100YG4C |
| パーソンズ ミュージック コーポレーション | Capital alliance | 資本業務提携（KAWAI ブランドの楽器生産・販売、音楽教室展開など） | S100YG4C |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).