![[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, 2021
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, 2021 |
5,311 | -41.9 | -331 | – | -277 | – | -211 | – |
| First quarter, year ending March 31, 2020 |
9,140 | 33.0 | 787 | 9.6 | 829 | 2.1 | 546 | -1.2 |
(Note) Comprehensive income
First quarter of the year ended March 31, 2021: ¥-204 million (-%)
First quarter of the year ended March 31, 2020: ¥540 million (1.6%)
| Net income per share | Diluted net income per share | |
|---|---|---|
| Yen | Yen | |
| First quarter, year ending March 31, 2021 |
-14.30 | – |
| First quarter, year ending March 31, 2020 |
36.99 | – |
Financial position
| Total assets | Net assets | Shareholders’ equity ratio | |
|---|---|---|---|
| Million yen | Million yen | % | |
| First quarter, year ending March 31, 2021 |
40,149 | 29,757 | 74.1 |
| Year ended March 31, 2020 | 42,702 | 30,406 | 71.2 |
(Reference) Shareholders’ equity
First quarter of the year ended March 31, 2021: ¥29,757 million
Year ended March 31, 2020: ¥30,406 million
Dividends
| Annual dividends(Yen) | |||||
|---|---|---|---|---|---|
| First quarter-end |
Second quarter-end |
Third quarter-end |
Year-end | Annual | |
| Year ended March 31, 2020 | – | 10.00 | – | 30.00 | 40.00 |
| Year ended March 31, 2021 | – | ||||
| Year ended March 31, 2021 (Forecast) |
10.00 | – | 30.00 | 40.00 | |
Forecast earnings for the year ending March 31, 2021
| 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, 2021 |
11,000 | -41.0 | -1,300 | – | -1,250 | – | -1,250 | – | -84.56 |
| Entire – year | 28,000 | -15.0 | 400 | -72.1 | 500 | -70.1 | 300 | -71.7 | 20.29 |
Qualitative Information Regarding the Consolidated Results for the First Quarter
Explanation of Operating Results
The Japanese economy in the first quarter of the current fiscal year (April 1 to June 30, 2020) saw economic activity stagnate due to the impact of globally rampant COVID-19 infections. In this pandemic, economic conditions deteriorated rapidly, with personal consumption related to eating out, leisure and tourism restrained by government requests for business closures and individuals to stay indoors based on its declaration of a state of emergency. Although economic activity resumed with the lifting of the emergency declaration, the pace of recovery was slow and the future outlook remains uncertain.
In the pachinko industry that our group is involved in too, pachinko parlors nationwide suspended business temporarily to help prevent the spread of COVID-19 infections. Business resumed sequentially from mid-May, and the state of pachinko parlor operations in June recovered to 73% compared to the same period of the previous year according to our DK-SIS data. In the amusement machine market, although parlors are replacing old pachislot machines with those produced under the new rules, sales were sluggish due to the extension of the deadline for the removal of the old machines. In the facilities market, with the enforcement of the revised Health Promotion Act from April 2020, pachinko parlors are now completely non-smoking and established smoking rooms.
Given this market environment, in the information systems business, we added new functions to the information disclosure terminal screens installed on the top of pachinko and pachislot machines to understand at a glance the state of cleaning and disinfection of machines, chairs, and other equipment as a measure to help prevent COVID-19 infections in pachinko parlors. In addition to creating an environment in which fans can play games with peace of mind, we promoted replacement with the company’s system aimed at improving the work efficiency of parlor staff. In the amusement machine market, machines with new game features such as “play time,” etc., have been launched so we have added content that conveys those features to fans in an easy-to-understand way. In addition, while sales and sales promotion activities are restricted due to stay-home requests, we held five DK-SIS seminars on the web to inform pachinko parlor operators about the latest information and methods for the efficient use of amusement machines.
In the control systems business, we promoted contract development of pachislot machines and activities to expand the business areas of the products we sell, and made efforts in research and study on technologies and parts aimed at reducing the cost of display units for pachinko machines. Along with improving business efficiency through a review of our development system, we also worked on planning and proposal activities for pachinko machines with new pachinko features (“play time,” etc.) While our amusement machine manufacturer customers are suspending business or working from home to prevent the spread of COVID-19 infections, we are taking similar measures at our company too. We are striving to minimize the impact on development and sales schedules by sharing information with customers and implementing planning and development work through telecommuting, using email and web conference systems.
Results in the first quarter of the current fiscal year showed sales of ¥5.311 billion (41.9% down YoY), an operating loss of ¥331 million (compared with operating income of ¥787 million in the same period of the previous year), an ordinary loss of ¥277 million (compared with ordinary income of ¥829 million in the previous fiscal year) and a quarterly net loss attributable to parent company shareholders of ¥211 million (compared with quarterly net income attributable to parent company shareholders of ¥546 million in the same period of the previous year).
Business performance by segment is as follows.
[Information System Segment]
In the first quarter in this business field, in addition to the difficult market environment continuing on from the previous fiscal year, the requests to suspend pachinko parlor business dealt the final blow, and with facility investment limited because of delays to the opening of new parlors and the cancellation of renovation plans, sales of major products were greatly below those for the same period of the previous year. Sales of MIRAIGATE services fell due to the period of suspension of the monthly fee-based service for closed pachinko parlors.
As a result, in this business field we recorded sales of ¥4.115 billion (45.6% down YoY) and a segment profit of ¥157 million (87.3% down YoY).
[Control System Segment]
In the first quarter in this business field, sales of parts for pachinko machines were favorable, but the number of amusement machines sold in the market overall decreased greatly under the impact of the pachinko parlor closures, resulting in sales of display units and control units below those for the same period of the previous year.
As a result, in this business field we recorded sales of ¥1.2 billion (23.9% down YoY) and a segment loss of ¥83 million (compared with a segment profit of ¥1 million in the same period of the previous year).
(Note) Intersegment transactions are included in the amounts for the segment business performance.
Explanation of Financial Position
Our total assets at the end of the first quarter of the current fiscal year were ¥40.149 billion, ¥2.552 billion less than at the end of the previous consolidated fiscal year, because sales activities contracted and accounts receivable and other trade receivables decreased significantly due to the impact of the requests to suspend business based on the declaration of a state of emergency and other measures associated with the spread of COVID-19 infections.
Our liabilities at the end of the first quarter of the current fiscal year were ¥10.391 billion, ¥1.904 billion lower than at the end of the previous consolidated fiscal year because accounts payable and other outgoings decreased due to a revision of purchasing plans and efforts to reduce expenses in light of the uncertain impact of COVID-19 infections.
Our net assets at the end of the first quarter of the current fiscal year were ¥29.757 billion, ¥648 million lower than at the end of the previous consolidated fiscal year because of the recording of a quarterly net loss attributable to parent company shareholders in association with the impact of COVID-19 infections as described above. Shareholders’ equity ratio was 74.1% (2.9 points up from the end of the previous consolidated fiscal year).
Explanation of Earnings Forecast such as Consolidated Business Results Forecast
There will be no changes to the earnings forecasts for the second quarter of the current fiscal year and the full term that were disclosed in the earnings briefing for the term ending March 2020, dated May 21, 2020.
We will promptly disclose any revisions that need to be made to the earnings forecasts in future.
In addition, there have been no material changes to the content disclosed in the latest securities report (submitted on June 26, 2020) concerning risks that may have an impact on results.