![[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, 2020
Operating results
| Net sales |
Operating income |
Ordinary income |
Net income attributable to equities of parent |
|||||
|---|---|---|---|---|---|---|---|---|
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
| First quarter, year ending March 31, 2020 |
9,140 | 33.0 | 787 | 9.6 | 829 | 2.1 | 546 | -1.2 |
| First quarter, year ending March 31, 2019 |
6,872 | -5.7 | 718 | – | 812 | – | 553 | – |
(Note) Comprehensive income
First quarter of the year ended March 31, 2020: ¥540 million (1.6%)
First quarter of the year ended March 31, 2019: ¥532 million (-%)
| Net income per share | Diluted net income per share | |
|---|---|---|
| Yen | Yen | |
| First quarter, year ending March 31, 2020 |
36.99 | – |
| First quarter, year ending March 31, 2019 |
37.46 | – |
Financial position
| Total assets | Net assets | Shareholders’ equity ratio | |
|---|---|---|---|
| Million yen | Million yen | % | |
| First quarter, year ending March 31, 2020 |
43,303 | 29,995 | 69.3 |
| Year ended March 31, 2019 | 43,729 | 29,898 | 68.4 |
(Reference) Shareholders’ equity
First quarter of the year ended March 31, 2020: ¥29,995 million
Year ended March 31, 2019: ¥29,898 million
Dividends
| Annual dividends(Yen) | |||||
|---|---|---|---|---|---|
| First quarter-end |
Second quarter-end |
Third quarter-end |
Year-end | Annual | |
| Year ended March 31, 2019 | – | 10.00 | – | 30.00 | 40.00 |
| Year ended March 31, 2020 | – | ||||
| Year ended March 31, 2020 (Forecast) |
10.00 | – | 30.00 | 40.00 | |
Forecast earnings for the year ending March 31, 2020
| Net sales | Operating income |
Ordinary income |
Net income attributable to owners of parent |
Net income per share |
|||||
|---|---|---|---|---|---|---|---|---|---|
| Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
| First half endin September, 2020 |
16,500 | 16.0 | 600 | -31.2 | 625 | -37.8 | 400 | -37.3 | 27.06 |
| Entire – year | 34,000 | 9.1 | 1,200 | -21.5 | 1,250 | -28.5 | 800 | -36.7 | 54.12 |
Qualitative Information Regarding the Consolidated Results for the First Quarter
Explanation of Operating Results
The Japanese economy remained on the track of moderate recovery during this first consolidated fiscal quarter, due to the effects of various policies, including improvements in employment and income, etc.
On the other hand, the economic outlook still continues to be uncertain due to concerns about economic uncertainty overseas, volatility in financial and capital markets, and policy trends in various countries.
In the pachinko industry, in which the Daikoku Denki Group (“the Group”) is engaged, the reluctance to open new stores or renovate existing ones is continuing due to the impact of the new regulations enforced from February 1, 2018, but demand for facility investment to attract customers increased temporarily during the sales battle in Golden Week, which ran for ten consecutive days this year.
In addition, the industry needs to respond in sequence to issues such as the “Basic Plan for the Promotion of Countermeasures Against Addictions Such as Gambling, etc.,” which was determined by the Cabinet on April 19, 2019, the “Revised Health Promotion Act,” which will strengthen countermeasures against passive smoking, and the transition to equipment made under the new regulatory system when certifications expire, etc.
In this market environment, the Information System Segment held exhibitions and seminars under the title “Key for the MIRAI” in major cities nationwide. At the exhibitions, they presented the new “X (Kai)” AI hall computer, the first renewal in 12 years since the “CII” hall computer was released. At the seminars, they gave lectures on how to use type six pachislot machines, raising the ball charge after the consumption tax increase and using “pachinko machines with fixed settings.”
In addition, they strengthened proposals for the “VEGASIA III” CR unit by incorporating use of the “Fan-SIS” fan trend data publication service, and made efforts to spread the “Market-SIS” trade area analysis service, which analyzes and displays the state of customer attraction in the surrounding area from various angles.
In the Control System Segment, we worked on improving quality by making the development process more efficient and reducing development costs. In addition, we promoted activities to expand planning and product proposals to all pachinko machines, reflecting the market analysis of “pachinko machines with fixed settings” compliant with the new regulations.
As a result, for this consolidated fiscal first quarter, net sales amounted to 9,140 million yen (up 33.0% from the same period last year), operating income was 787 million yen (up 9.6% from the same period last year), and ordinary income was 829 million yen (up 2.1% from the same period last year), and quarterly net income attributable to parent company shareholders amounted to 546 million yen (down 1.2% from the same period last year).
Business performance by segment is as follows.
[Information System Segment]
During the first consolidated fiscal quarter in this segment, sales of major products trended steadily, including significantly increased sales of “REVOLA,” which has had strengthened proposals as a large LCD calling lamp for pachinko machines, etc., while there were few new openings or large-scale renovations and the difficult market environment continued, because demand for capital investment increased during the sales battle in Golden Week.
Sales of “VEGASIA III” CR units, which continue to be evaluated highly for their security functions, also increased significantly.
As a result, net sales in this segment were 7,568 million yen (up 48.7% from the same period last year) and segment income was 1,234 million yen (up 67.5% from the same period last year).
[Control System Segment]
During the first consolidated fiscal quarter in this segment, sales of control units for pachinko machines continued strongly, but sales of display units were lower than for the same period last year.
As a result, net sales in this segment were 1,578 million yen (down 11.9% from the same period last year), and segment income was 1 million yen (down 99.6% from the same period last year).
(Note) Intersegment transactions are included in the amounts for the segment business performance.
Explanation of Financial Position
Total assets at the end of this first consolidated fiscal quarter were 43,303 million yen, a decrease of 426 million yen from the end of the previous consolidated fiscal year. Although cash and deposits increased due to sales trending well in April, this was due to accounts receivable decreasing in association with development recovery.
Total liabilities as of the end of this first consolidated fiscal quarter amounted to 13,307 million yen, a decrease of 523 million yen from the end of the previous consolidated fiscal year. The main factors for this include a decrease in accounts payable related to research and development expenses and software, although there was an increase in electronically recorded obligations due to the recording of large purchases in April.
Net assets at the end of this first consolidated fiscal quarter were 29,995 million yen, an increase of 97 million yen from the end of the previous consolidated fiscal year. The main factors for this include increased retained earnings because the recorded net income for the quarter attributable to parent company shareholders exceeded the amount of dividends paid. The Group’s equity ratio was 69.3% (an increase of 0.9 points when compared to that at the end of the previous consolidated fiscal year).
Explanation of Earnings Forecast such as Consolidated Business Results Forecast
Results for this first consolidated fiscal quarter progressed generally as initially planned.
The results forecast for the second quarter and the full term of fiscal 2020 announced on May 14, 2019 remains unchanged.
There have been no material changes in the disclosure of risks in business, etc., that may have an impact on business results since the disclosure in the latest financial statements (submitted on June 28, 2019).