![[Securities code:6430]](/en/wp-content/themes/daikoku_en/img/common/txt_header_code01.png){kind=small}
Business results for the first quarter of the year ending March 31, 2015
Operating results
| Net sales |
Operating income |
Ordinary income |
Net income |
|||||
|---|---|---|---|---|---|---|---|---|
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
| First quarter, year ending March 31, 2015 |
12,913 | 13.9 | 1,493 | 13.5 | 1,536 | 13.2 | 957 | 20.8 |
| First quarter, year ending March 31, 2014 |
11,340 | -16.0 | 1,315 | -35.3 | 1,357 | -36.0 | 792 | -36.8 |
(Note) Comprehensive income
First quarter of the year ended March 31, 2015: ¥974 million (23.0%)
First quarter of the year ended March 31, 2014: ¥792 million (-37.0%)
| Net income per share | Diluted net income per share | |
|---|---|---|
| Yen | Yen | |
| First quarter, year ending March 31, 2015 |
64.77 | － |
| First quarter, year ending March 31, 2014 |
53.60 | － |
Financial position
| Total assets | Net assets | Shareholders’ equity ratio | |
|---|---|---|---|
| Million yen | Million yen | % | |
| First quarter, year ending March 31, 2015 |
53,376 | 32,399 | 60.7 |
| Year ended March 31, 2014 | 53,929 | 32,260 | 59.8 |
(Reference) Shareholders’ equity
First quarter of the year ended March 31, 2015: ¥32,399 million
First quarter of the year ended March 31, 2014: ¥32,260 million
Dividends
| Annual dividends(Yen) | |||||
|---|---|---|---|---|---|
| First quarter-end |
Second quarter-end |
Third quarter-end |
Year-end | Annual | |
| Year ended March 31, 2014 | － | 20.00 | － | 60.00 | 80.00 |
| Year ended March 31, 2015 | － | ||||
| Year ended March 31, 2015 (Forecast) |
10.00 | － | 30.00 | 40.00 | |
Forecast earnings for the year ending March 31, 2015
| Net sales | Operating income |
Ordinary income |
Net income | Net income per share |
|||||
|---|---|---|---|---|---|---|---|---|---|
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
| First half ending September, 2015 |
27,000 | 4.3 | 1,500 | -39.7 | 1,500 | -41.4 | 1,000 | -35.2 | 67.64 |
| Entire – year | 55,000 | -3.4 | 3,000 | -43.8 | 3,000 | -45.2 | 2,000 | -39.0 | 135.29 |
Qualitative Information Regarding the Consolidated Results for the First Quarter
1. Analytical Review of Operating Results
During the cumulative consolidated first quarter, the Japanese economy was expected to gradually pick up in general, supported by the ongoing depreciation of the yen, while some weakness was seen due to a negative reaction following a rush in demand ahead of the consumption tax hike.
The pachinko business, a part of the amusement industry in which the Daikoku Denki Group (“the Group”) is engaged, has not yet experienced negative effects from the consumption tax hike. However, it is required to deal sensitively with the next consumption tax hike, scheduled for October 2015 (from 8% to 10%).
Under these market environments, the Information System Segment held an exhibition event titled “MIRAIGATE 2014” in major cities in Japan, and launched and sold new data display tools “BiGMO Type IV”,”IL-X2″ and “DESTIA”. In this exhibition event, we also held a seminar titled “Break through the challenge by the application of new methodologies to build the foundations for the improvement of business performance, addressing how to cope with the consumption tax hike, which received a number of visitors involved in pachinko halls”.
The Control System Segment reviewed its operations and structures of its entire organization, aiming to achieve confidence from customers through contributions to improving the operating rate of pachinko game machines. In addition, the segment also set up the Quality Improvement Project in order to construct a framework for a quality assurance system on all of our products in general.
As a result of the above, during the cumulative consolidated first quarter, net sales amounted to \12,913 million, up 13.9% from the same period last year. Consolidated operating income was \1,493 million (up 13.5% year on year), consolidated ordinary income was \1,536 million (up 13.2% year on year), and consolidated net income amounted to \957 million (up 20.8% year on year).
Business results by segment
Information System Segment
During the cumulative consolidated first quarter, the large units of “VEGASIA” (CR unit) and “BiGMO PREMIUM” (data display tools) were sold and introduced to newly opened pachinko parlors. In addition, even in existing pachinko parlors, the replacement has been strongly facilitated from the former model to the new model “BiGMO PREMIUM” due to the strong market reception of the data display tools highlighting the amusing and thrilling features of a diversified pachislot game for fans.
As a result, net sales in the Information System Segment were \9,813 million (up 37.0% from the same period of the previous fiscal year), and segment operating income was \1,764 million (up 27.2% year on year).
Control System Segment
During the cumulative consolidated first quarter, the Control System Segment was actively engaged in bringing proposals aimed at acquiring new customers, and promoted new development projects and the receipt of a new order of products. In addition, the segment also worked on the development of new units and peripheral boards and other products.
As a result, net sales in the Control System Segment were \3,100 million (down 25.8% from the same period of the previous fiscal year), and segment operating income amounted to \145 million (down 63.7% year on year).
2. Analytical Review of Financial Position
Total assets as of June 30, 2014 were \53,376 million, a decrease of \553 million from the end of the previous consolidated fiscal year. The main factors for the decrease were a decrease in cash and deposits due to settlement of accounts payable-other, income taxes paid and cash dividends paid as well as a decrease in non-current assets due to the posting of depreciation and amortization, although there was an increase in inventories to be sold in the second quarter or afterward.
Total liabilities as of June 30, 2014 were \20,976 million, a decrease of \692 million from those at the end of the previous consolidated fiscal year. The main factors for the decrease were a decrease in accounts payable-other related to development expenses and repayment of long-term borrowings which more than offset an increase in notes and accounts payable-trade resulting from an increase in inventories.
Total net assets as of June 30, 2014 were \32,399 million, an increase of \138 million from those at the end of the previous consolidated fiscal year, due mainly to an increase in retained earnings resulting from strong operating results. The Group’s equity ratio was 60.7% (a rise of 0.9 percentage point compared to that at the end of the previous consolidated fiscal year).
3. Explanation of Forward-looking Information, Including Outlook for Consolidated Operating Results
There is no change in earnings forecast for the second quarter and the full year of FY2014, which were announced on May 12, 2014.