FY Ended March 2014 Full Year Results Presentation

FY Ended March 2014
Full Year Results Presentation
May 29th, 2014
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
Contents


FY Ended March 2014 Full Year Results ------------ p.2
FY Ending March 2015 Full Year Forecasts -------- p.11

p.16
Business Environment -------------------------------------Future Activities ----------------------------------------- p.26

Dividends -------------------------------------------------- p.38

Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
1
FY Ended March 2014 Full Year
Results
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
2
FY Ended March 2014 Full Year Results
Consolidated Statements of Income (Summary)
Earned acclaim from halls for the brand's comprehensive strength
・・・Information System Segment marked record sales
FY Ended
March 2014
Net Sales
58,861
56,954
△3.2％
＋11.7％
Gross profit-net
18,776
18,691
△0.5％
＋9.9％
Selling, general and
administrative expenses
11,753
13,353
＋13.6％
＋2.7％
Operating Income
7,023
5,338
△24.0％
＋33.5％
Ordinary income
7,244
5,474
△24.4％
＋36.9％
Net income
4,161
3,278
△21.2％
＋63.9％
Research and
development expenditure
2,720
3,656
＋34.4％
＋4.5％
(Millions ¥)
YoY
Change
Vs. Forecasts
Change
FY Ended
March 2013
(Note) The planned ratio is the value of earnings projection for the term ending in March 2014
announced on November 11, 2013, as well as the planned ratio described in the
materials for the briefing of the second quarter closing of the term ending in March
2014 held on November 28, 2013 targeting institutional investors and analysts.
■ Factors of sales decrease
In the term ending in March 2014, the Information
System Segment marked record sales since its
inauguration attributable to the highly acclaimed CR
unit (prepaid type inter-machine ball dispenser) and
data display tools, but the sales of the Control
System Segment declined partly because the
number of sales models engaged in by the Company
was small.
■Stability factors of gross margin on
sales
The gross margin on sales is attributable to the sales
growth in the Information System Segment that has
good profit margins.
■Factors of increased sales
administrative expenses
The Company has started to aggressively invest in
the development of next-generation product lines in
the Information System Segment.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
3
Operating Income
YoY Change
-¥1,685 Million
(Millions of yen)
-85
Gross
profit-net
-936
Research and
development
expenditure
-664
The others
FY2013
Results
7,023
FY2014
Results
5,338
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
4
Shifts in net sales and operating income
(Millions of yen)
Net sales
Operating income
7,023
58,861
56,954
51,857
5,338
47,096
4,626
34,483
3,525
226
FY2010 2011/3期
FY2011 2012/3期
FY2012 2013/3期
FY2013 2014/3期
FY2014
2010/3期
FY2010 2011/3期
FY2011 2012/3期
FY2012 2013/3期
FY2013 2014/3期
FY2014
2010/3期
売上高
営業利益
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
5
FY Ended March 2014 Full Year Results
Consolidated Balance Sheets (Summary)
YoY
Change
2013/3
2014/3
Current assets
39,789
37,045
‐2,744
Noncurrent assets
16,916
16,884
‐32
Total assets
56,706
53,929
‐2,776
Current liabilities
24,544
20,159
‐4,385
Noncurrent liabilities
1,722
1,509
‐213
(Millions ¥)
■ Total
assets (YoY Change) -¥2,776 million
Current assets -¥2,744 million
There was an increase in non-revenue money in the term
ending in March 2015, but this was due to a large decrease in
cash and deposits as well as raw materials.
Noncurrent assets -¥32 million
The disposal of idle assets, etc., are decreasing factors.
Total liabilities
26,267
21,669
‐4,598
Net assets
30,439
32,260
＋1,821
Total liabilities and net assets
56,706
53,929
‐2,776
Debt
1,269
800
‐469
‐0.02times
0.04times
0.02times
53.7％
59.8％
＋6.1％
Receivables turnover period
61.6days
73.5days
＋11.9days
Inventory turnover period
45.7days
55.8days
＋10.0days
Payable turnover period
88.3days
105.8days
＋17.4days
Debt Equity Ratio
Capital adequacy ratio
■ Total
liabilities (YoY Change) -¥4,598 million
Although there was an increase in accounts payable, this was
due to a large decrease in trade payables and income tax
payables, etc.
■ Net
assets (YoY Change) +¥1,821 million
This was due to the increase in retained earnings. In addition,
the owned capital ratio was 59.8%, a 6.1% increase compared
to the previous consolidated fiscal year.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
6
Research and development expenses・Increase of tangible fixed assets and intangible assets・
Operating CF･Shareholders' equity
9,600
59.8%
35,000
60.0%
2,720
3,000
3,123
2,275
1,684
1,855
0
340
-2,792
研究開発費
FY2014
2014/3期
FY2013
2013/3期
FY2012
2012/3期
-3,000
Research and development expenses
有形固定資産及び無形固定資産の増加額
Increase of tangible fixed assets and intangible assets
営業キャッシュフロー
Operating
CF
30,000
50.0%
27,026
25,953
25,000
40.0%
20,000
30.0%
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
2014/3期
FY2014
3,656
2013/3期
FY2013
3,589
32,260
30,439
2012/3期
FY2012
2,505
53.7%
52.9%
2011/3期
FY2011
6,000
自己資本(百万円)
equity (Millions ¥)
Shareholders‘
5,682
FY2011
2011/3期
研究開発費、固定資産増加額、営業CF
（百万円） ¥)
(Millions
55.1%
自己資本比率（％）
equity ratio(%)
Shareholders‘
9,000
Shareholders‘ equity
自己資本
Shareholders‘ 自己資本比率
equity ratio
7
FY Ended March 2014 Full Year Results
Consolidated Statements of Cash Flows(Summary)
(Millions ¥)
FY Ended
March 2013
FY Ended
March 2014
YoY
Change
■ Operating CF (compared to the previous period)
-¥9,260 million
The proceeds of cash from sales activities was ¥340 million, and a
major part of it was due to a large decrease in the amount of trade
payables attributable to the last day of the previous consolidated
fiscal year falling on a bank holiday as well as the payment amount
for corporate income taxes and the like being large.
Operating CF
9,600
340
△9,260
Investment CF
2,153
△1,655
3,808
Financing CF
△7,003
△1,809
＋5,194
Cash and cash
equivalents
18,406
15,281
△3,124
Time deposits that
have more than three
months until maturity
■ Investment CF (compared to the previous period)
-¥3,808 million
The expenditure of funds from investing activities was ¥1,655
million, and a major part of it was due to large expenditures on
non-current assets attributable to production equipment and
refurbishments costs of our branch offices as well as the costs to
upgrade software.
■ Financing CF (compared to the previous period)
+¥5,194 million
100
100
0
The expenditure of funds from financing activities was ¥1,809
million, and a major part of it was due to the repayment of debts
and the payment of dividends.
■ Cash and cash equivalents (compared to the previous period)
-¥3,124 million
The cash and cash equivalents in this consolidated fiscal year
amounted to ¥15,281 million, a decrease of ¥3,124 million.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
8
Business results by segment
YoY
Change
前期比
(Millions ¥)
Information
System
Segment
Net sales
Net sales -¥1,907 million (-3.2%), Operation income -¥1,685 million (-24.0%)
FY Ended
FY Ended
March 2013 March 2014
31,685
36,065
YoY
Change
＋13.8%
Vs.
Forecasts
＋16.3%
■ Information System Segment
Marked record sales since the inauguration: Sales of
CR unit and data display tools contributed.
(1) The Company strove to further improve customer
satisfaction by making efforts such as enhancement of
"C II Standard," a hall supporting service using the
MIRAIGATE network.
Segment
income
6,069
6,093
＋0.4%
＋10.8%
Net sales
27,184
20,889
－23.2%
＋4.4%
Segment
income
2,930
1,127
－1,976
－1,883
－4.7%
－0.9%
Net sales
58,861
56,954
－3.2%
＋11.7%
Operating
income
7,023
5,338
－24.0%
＋33.5%
Sales went down partly because the number of sales
models the Company was involved in was small.
(Note) The planned ratio is the value of earnings projection for the term ending in March
2014 announced on November 11, 2013, as well as the planned ratio described
in the materials for the briefing of the second quarter closing of the term ending
in March 2014 held on November 28, 2013 targeting institutional investors and
analysts.
The sales of peripheral components such as liquid
crystal panels, motors, switches and power supplies
performed steadily through efforts to strengthen
proposals for planning capabilities and augment the
development line by fusing with Group companies.
Control
System
Segment
Corporate expenses
Corporate
－61.5% ＋181.8%
(2) "VEGASIA", a CR unit that highlighting enhanced
security and effective operational capacity, "BiGMO
PREMIUM", an improved version of BiGMO with a
larger monitor and higher functionality, and "IL-X",
a call-out lamp, were highly valued in the market,
contributing to favorable performance in sales.
■ Control System Segment
Business segment sales and income figures include intersegment transactions.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
9
Business results by segment
Business segment sales
27,184
26,289
Segment operating income
2,930
20,889
1,127
21,367
2,752
583
11,054
6,069
6,093
FY2013
FY2014
4,793
31,685
25,595
23,492
36,065
3,834
3,047
25,741
-1,088
FY2010
FY2011
FY2012
FY2013
FY2014
Information System Segment
FY2010
FY2011
FY2012
Control System Segment
（※）Business segment sales and income figures include intersegment transactions.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
10
FY Ending March 2015 Full Year
Forecasts
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
11
Future outlook
○Net Sales ¥1,954 million decrease
■ Information System Segment (¥3,065 million decrease) ¥36,065 million→¥33,000 million
The Information System Segment will further promote sales of "VEGASIA" (a CR unit with
enhanced functions, etc. in conjunction with the hall computing system "C II") and data display tools
per machine centering on "BiGMO PREMIUM" (a new model released in November 2013 with a
high evaluation in the market).
■ Control System Segment (¥1,111 million increase) ¥20,889 million→¥22,000 million
Aiming to improve operating performance, the segment will activate collaboration with partners with
technological strength for the expansion of business domains and will engage in creating machines
with a market outlook of three years ahead.
○Sales administrative expense (¥1,647 million increase) ¥13,353 million → ¥15,000 million
The main factors of increase are development expenses (Information - ¥900 million increase, Control
- ¥100 million increase), outsourcing expenses, sales promotion expenses, sales fees, etc.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
12
Forecast earnings for the year ending March 31, 2015
Year ended March 31, 2014
(Millions ¥)
First half
Second half
Total
Year ended March 31, 2015
(Forecast)
First half
Second half
YoY
Change
Total
Net Sales
25,882
31,072
56,954
27,000
28,000
55,000
‐3.4％
Gross profit-net
8,191
10,500
18,691
8,500
9,500
18,000
‐3.7％
Selling, general and
administrative expenses
5,704
7,649
13,353
7,000
8,000
15,000
＋12.3％
Operating income
2,487
2,851
5,338
1,500
1,500
3,000
‐43.8％
Ordinary income
2,559
2,915
5,474
1,500
1,500
3,000
‐45.2％
Net income
1,543
1,735
3,278
1,000
1,000
2,000
‐39.0％
Net income per share
104.38
―
221.80
67.64
―
135.29
―
Research and development
expenses
1,125
2,531
3,656
1,700
3,000
4,700
＋28.6％
Depreciation expense
688
764
1,452
700
900
1,600
＋10.2％
Capital investment
192
797
989
300
300
600
‐39.3％
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
13
セグメント別売上見込
Year ended March 31, 2015
(Forecast)
Year ended March 31, 2014
(Millions ¥)
Information
System Segment
Control
System Segment
Control
System
Segment
Total
First half
Second half
Total
15,562
20,503
36,065
15,000
18,000
33,000
Segment income
2,950
3,143
6,093
2,300
2,000
4,300
Net Sales
10,320
10,569
20,889
12,000
10,000
22,000
508
619
1,127
100
400
500
‐970
‐913
‐1,883
‐900
‐900
‐1,800
Net Sales
25,882
31,072
56,954
27,000
28,000
55,000
Segment income
2,487
2,851
5,338
1,500
1,500
3,000
Segment income
Sales ratio （First half：Second half）
Information
System
Segment
Second half
Net Sales
Corporate expenses
Corporate
First half
45.4%
54.6%
100%
49.1%
50.9%
100%
Hall computing system 「C」(unit)
90
113
203
90
110
200
Disclosure of information system
3,741
5,821
9,562
3,800
4,700
8,500
Prize management system
1,901
1,937
3,838
1,600
1,900
3,500
Network services
1,363
1,499
2,862
1,500
1,650
3,150
6
12
18
7
7
14
2,958
7,125
10,083
4,500
5,800
10,300
7,243
4,000
1,500
5,500
Video processing unit (Number of models)
Video processing unit
4,659
2,584
（※）Business segment sales and income figures include intersegment transactions.
Sales of parts
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
14
＜参考資料＞セグメント別売上推移（３期分）
Year ended March 31, 2011
(Millions ¥)
Information
System Segment
Control
System Segment
Second half
Total
First half
Second half
Total
First half
Second half
Total
Net Sales
11,379
12,112
23,492
11,553
14,187
25,741
16,724
14,960
31,685
Segment income
1,954
1,093
3,047
1,765
3,028
4,793
4,030
2,039
6,069
Net Sales
5,133
5,921
11,054
16,552
4,814
21,367
10,947
16,236
27,184
Segment income
‐447
‐641
‐1,088
1,325
‐741
583
549
2,381
2,930
‐894
‐838
‐1,732
‐972
‐879
‐1,852
‐976
‐1,000
‐1,976
16,510
17,972
34,483
28,100
18,995
47,096
27,665
31,195
58,861
612
‐386
226
2,118
1,407
3,525
3,603
3,420
7,023
47.9％
127
2,467
2,737
642
3
1,556
2,355
52.1％
104
2,721
3,252
715
7
2,856
1,786
100％
231
5,188
5,989
1,357
10
4,412
4,141
59.7％
120
2,493
2,525
732
6
11,036
3,485
40.3％
123
4,051
2,721
954
3
1,492
2,481
100％
243
6,544
5,246
1,686
9
12,528
5,966
47.0％
118
4,310
2,252
1,113
9
5,933
4,365
53.0％
87
3,847
1,795
1,294
11
9,906
5,053
100％
205
8,157
4,047
2,407
20
15,839
9,418
Net Sales
Segment income
Sales ratio （First half：Second half）
Hall computing system 「C」(unit)
Information Disclosure of information system
System
Prize management system
Segment
Network services
Control
System
Segment
Year ended March 31, 2013
First half
Corporate expenses
Corporate
Year ended March 31, 2012
Video processing unit (Number of models)
Video processing unit
Sales of parts
（※）Business segment sales and income figures include intersegment transactions.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
15
Business Environment
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
16
Recent industry trends and outlook
○ Recent industry trends
(1) According to the DK-SIS data of the Company, there has been a gradual downward trend on a
continual basis in the performance of pachinko halls in the last few years, and 2013 recorded
the lowest ever operation and profit.
The decline in operations of pachinko game machines (especially ¥4 dispensing pachinko) has
continued, and the operation of pachislot game machines that performed steadily since 2009
and onwards peaked, making it impossible to compensate for the performance of the entire hall,
thus causing a severe situation to persist.
(2) While aggressive investments such as for new pachinko halls and remodeling of big halls were
made by large-scale chain stores, the number of halls that have closed or suspended the
operations has increased, and it is believed that the performance disparity between hall
management companies is getting bigger.
(3) The number of halls nationwide during the 2013 fiscal year was 11,893 (-256 stores). The
number of game machines installed nationwide increased for the fourth consecutive year at
4,611,714 (+19,678 machines) due to the increase in pachislot game machines (+52,829
machines), although the number of pachinko game machines decreased (-33,162 machines).
The number of game machines installed per store increased to 387.8 (+9.8 machines), reflecting
the situation in which the enlargement of hall size is progressing even more.
（Data） According to the 2013 White Paper on Adult Entertainment Business issued by the Community Safety Bureau of the National Police Agency
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
17
Recent industry trends and outlook
○ Industry trends in the present
(1) Although the Japanese economy is on the course of a gradual economic recovery against the
backdrop of the effects of the further economic measures and financial policies by the
government, the outlook is uncertain due to the consumption tax hike. Also, in terms of the
pachinko industry, which is a leisure industry in which the Company is engaged, it is believed
that the spread towards economic recovery will still take a while, but it is projected that in the
medium term the economy will recover gradually towards the hosting of the "2020 Tokyo
Olympics".
(2) The pachinko hall market of the current fiscal year is still not headed for expansion, and its scale
is assumed to be about the same as the previous fiscal year.
Each company is still tending to be cautious of expanding company size, and it is believed that
each will make efforts to attract customers at existing halls. It is thought that the effects of
advertising and game machine replacement are high just as before, but it is difficult to make an
aggressive move in consideration of advertising regulations and cost-effectiveness, so it is
assumed that companies will aim for the maintenance and improvement of customer attraction
by enhancing facilities that provide a comfortable game environment for fans such as through
continuing to implement and replace public information terminals as well as updating air
conditioning equipment.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
18
Changes in the size of market total gross profit and shifts in performance by year
Although market conditions are projected to be severe in the short term, it is expected to recover towards a ¥4 trillion
market size in the medium term
Pachinko business scale
[Changes in the size of total gross profit and performance by year]
(Note) Source of survey materials: Daikoku Denki "DK-SIS"
Market trends in the present envisioned
by the Company (estimate of the Company)
Recovery of ¥4 trillion
size of market gross profit
Consumption
tax hike
Hosting of
Tokyo
Olympics
※The gross profit size data is the value obtained by inference based on the market data from DK-SIS data
※Running time per hour is calculated by 5000 balls for pachinko and 2000 coins for pachislot
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
19
Reference) Shifts in the average amount of a corporate worker's pocket money

Since the 1990s, pocket money
of a corporate worker in Japan has
shifted in a downward trend.
 Trend of increase of the base amount
is expanding. Partly due to the shortage
of manpower, it is highly assumed that
the salaries at Japanese companies will
continue to grow for the time being
 In the short term, due to the impact of
the consumption tax hike, the amount
of pocket money may decline, but in
the medium term, it is anticipated to
increase.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
20
Pachinko business scale
Shifts in the number of pachinko halls and installed pachinko and pachislot game machines
（halls）
18,000
（thousand machines）
6000
16,988
16,000
店舗数
Number of pachinko halls
16,801 16,504
16,076
15,617
15,165
14,674
4,611,714
14,000
12,000
（＋19,678） 5000
Peak of total game machines(2004） 13,58512,937
12,652 12,479 12,323
4,969,156 machines
12,149 11,893
4000
Peak of Pachinko game machines(1996）
3,906,767 machines
10,000
パチンコ台数
Number of pachinko game
machines
パチスロ台数
Number of pachislot game
machines
Number of total game machines
遊技機総台数
3,009,314
（-33,162）
8,000
3000
■Number of pachinko halls
11,893 halls
（-256 halls YoY）
2000
6,000
1,602,148
4,000
Peak of Pachislot game machines(2006）
2,003,482 machines
■ Number of game machines
（＋52,829）
1000
2,000
387.8 machines per hall
（＋9.8 machines YoY）
Total 4.61million machines
0
0
（+19,678 machines YoY）
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
（ Source of data ） The 2013 White Paper on Adult Entertainment Business issued by the Community Safety Bureau of the National Police Agency
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
21
Changes in gross profit structure
(Comparison of April 2011 - 2014)
2011/4
2012/4
2013/4
2014/4
（ Source of data ）
“DK-SIS White paper” Daikoku Denki
gross profit share
57%
50%
49%
47%
13%
14%
14%
2011
57%
12%
29%
2%
2012
50%
13%
35%
2%
2013
49%
14%
34%
3%
2014
47%
14%
35%
4%
2011
¥4 pachinko
50%
Pachinko(low-price dispenser) 20%
¥20 pachislot
27%
Pachislot(low-price dispenser)
3%
2012
45%
22%
29%
4%
2013
42%
23%
28%
7%
2014
40%
24%
29%
7%
¥4 pachinko
Pachinko(low-price dispenser)
¥20 pachislot
Pachislot(low-price dispenser)
12%
number of machines share
29%
2%
35%
34%
35%
2%
3%
4%
¥4 pachinko
¥20 pachislot
Pachinko(low-price dispenser)
Pachislot(low-price dispenser)
<Reading and understanding from gross profit share>
○ Decline of ¥4 pachinko
○¥20 pachislot shifting from increase to flat
○Gradual increase of pachislot
(low-price dispenser)
Advance indicators of pachinko hall creation
(configuration of the number of machines)
Continuous decline of ¥4 pachinko share
Flat performance of low-price dispensing pachinko share
Slight increase of ¥20 pachislot share
Shift towards increasing trend of low-price dispensing pachislot share
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
22
Hall computing system that accounts for the top share of the market at 35%
Hall computing system
Daikoku Denki excelled in the production of
electric circuits at its inauguration, and
developed a device to count pachinko balls by
utilizing this knowledge and technology. Later,
the Company was the first in the industry to
provide new products and services such as
through a proprietary system to collect and
manage the data of each machine, in addition to
the development of "Data Robot", an
information terminal that displays game
machine data to customers, and "DK-SIS", a
service to provide information that supports hall
management, as well as the launch of the
"MIRAIGATE" brand.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
23
DK-SIS Daikoku Denki Strategic Information System
"DK-SIS"—an industry-leading strategic information tool that helps to realize improved hall performance
Strengths
of DK-SIS
● Accumulation of business know-how with a core of data on approximately 1.29 million game machines and
¥9.7 trillion scale of annual sales
● Provision of various consulting services with DK-SIS data as the backbone
● Strategic proposals and sales activities to game machine manufacturers utilizing DK-SIS data
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
24
Trends in the Number of DK-SIS Members
4,000
3,463
3,591
3,676
Performance for the term
ending in March 2014
3,282
3,122
Number of members
of members
Number
会員ホール数
3,000
3,676
Number of managed machines
1.29 million machines
Sales volume
Data corresponding to ¥9.7 trillion
2,000
1,000
The only information strategy tool in the
pachinko industry that possesses data on
27.9% of the number of pachinko and
pachislot game machines nationwide
0
'10/3期
FY2010
'11/3期
FY2011
'12/3期
FY2012
'13/3期
FY2013
'14/3期
FY2014
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
25
Future Activities
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
26
Strategic direction
Make efforts towards stable performance through the sales promotion of data display
Ⅰ
tools for each machine centering on "VEGASIA", a CR unit, and "BiGMO PREMIUM"
as well as the expansion of MIRAIGATE services.
Ⅱ
Ⅲ
Improve profitability over the medium term through new businesses such as the
strengthening of the development system of pachislot game machines.
Promote aggressive investments towards the development of "next-generation flagship
product lines" for pachinko halls.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
27
[Reference] Pachinko business scale
20%
100%
10%
50%
0%
0%
-10%
-50%
-20%
-100%
弊社_売上高（四半期、前年同期比）
Our net sales (YoY Change)
Number
of game machines (YoY Change : Dynamic statistical survey of selected service industries)
特定サービス産業動態統計_パチンコホール_設置台数(前年比)
Net特定サービス産業動態統計_パチンコホール_売上高(前年比)
sales of pachinko halls (YoY Change: Dynamic statistical survey of selected service industries)
Our弊社_売上高（四半期_前年比)
net sales (YoY)
2013/12
2007年4月
2007/4
2007年8月
2007/8
2007年12月
2007/12
2008年4月
2008/8
2008年8月
2008/12
2008年12月
2009/4
2009年4月
2009/8
2009年8月
2009/12
2009年12月
2010/4
2010年4月
2010/8
2010年8月
2010/12
2010年12月
2011/4
2011年4月
2011/8
2011年8月
2011年12月
2011/12
2012年4月
2012/4
2012年8月
2012/8
2012年12月
2012/12
2013年4月
2013/4
2013年8月
2013/8
2013年12月
特定サービス産業動態統計_パチンコホール
of game machines, Net sales of pachinko halls (YoY
Number
売上高・設置台数（前年同月比、％）
statistical survey of selected service industries)
Change: Dynamic
Dynamic statistical survey of selected service industries - pachinko hall
（ Source of data ） Dynamic statistical survey of selected service industries - pachinko hall （Ministry of Economy, Trade and Industry : 2014/5/14）
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
28
（ Source of data ） Dynamic statistical survey of selected service industries - pachinko hall （Ministry of Economy, Trade and Industry : 2014/5/14）
20%
500%
10%
250%
0%
0%
-10%
-250%
-20%
-500%
net sales of Control System Segment
Our
弊社_制御システム事業_売上高
(YoY Change)
（四半期、前年同期比）
特定サービス産業動態統計_パチンコホール_売上高(前年比)
statistical survey of selected service industries)
Our net sales of Control System Segment (YoY Change)
弊社_制御システム事業_売上高(前年比)
2007/4
2007年4月
2007/9
2007年9月
2008/2
2008年2月
2008年7月
2008/7
2008年12月
2008/12
2009年5月
2009/5
2009年10月
2009/10
2010年3月
2010/3
2010年8月
2010/8
2011年1月
2011/1
2011年6月
2011/6
2011年11月
2011/11
2012年4月
2012/4
2012年9月
2012/9
2013年2月
2013/2
2013年7月
2013/7
2013年12月
2013/12
20%
500%
10%
250%
0%
0%
-10%
-250%
-20%
-500%
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
29
（四半期、前年同期比）
Our net
sales of Information System Segment
弊社_情報システム事業_売上高
(YoY Change)
Net sales of pachinko halls (YoY Change: Dynamic
特定サービス産業動態統計_パチンコホール
of game machines, Net sales of pachinko halls (YoY
Number
statistical survey of selected service industries)
Change: Dynamic
売上高・設置台数（前年同月比、％）
2007/4
2007年4月
2007/9
2007年9月
2008/2
2008年2月
2008/7
2008年7月
2008/12
2008年12月
2009/5
2009年5月
2009/10
2009年10月
2010/3
2010年3月
2010/8
2010年8月
2011年1月
2011/1
2011年6月
2011/6
2011年11月
2011/11
2012年4月
2012/4
2012年9月
2012/9
2013年2月
2013/2
2013年7月
2013/7
2013年12月
2013/12
特定サービス産業動態統計_パチンコホール
of game machines, Net sales of pachinko halls (YoY
Number
売上高・設置台数（前年同月比、％）
statistical survey of selected service industries)
Change: Dynamic
[Reference] Pachinko business scale
Dynamic statistical survey of selected service industries - pachinko hall
Net sales of pachinko halls (YoY Change: Dynamic
特定サービス産業動態統計_パチンコホール_売上高(前年比)
statistical survey of selected service industries)
Our net sales of Information System Segment (YoY Change)
弊社_情報システム事業_売上高(前年比)
Business strategy
Information System Segment
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
30
Generic strategy
Information System Segment
Conduct in earnest investment for the
development of next-generation product lines
Continue to provide value-added services by
striving to strengthen our relationship with
MIRAIGATE users
Create products that are competitive in the
market and launch the new products in the
market in a timely manner
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
31
Business strategy
Control System Segment
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
32
Generic strategy
制御システム事業
Operational contribution to pachinko halls
Start making game machines with an eye to the
market environment three years ahead
Sales of multiple models of pachislot game
machines
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
33
Towards the full-scale expansion of pachislot business
Increase sales volume with multiple models, aiming for operational contribution to halls
FY2014 Results
* "Gross profit of cumulative total machines" indicates: The total of
"machine gross profit" during the period from its launch to the point
where it falls below the DK-SIS average operation
About the performance contribution of Prism Nana
Sales volume : about 4,000
（ Source of data ）”DK-SIS white Paper” Daikoku Denki
Pachislot model contribution ranking: 19th/74 models (ART type released in 2013)
Operational contribution: 10 weeks achieved
Gross profit of cumulative total machines: ¥547,000 (gross profit contribution achieved)
FY2015 We plan to sell plurality of model in pachislot
models
Sales volume
FY2014
FY2015
Results
Forecast
Developed with a focus on "Moe Slots", which has
been attracting the attention of the "anime generation"
1
2
3,949
12,000
Create high-operation pachislot products that are sought by "fans"
and "halls" and become a company that is counted on by anime fans
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
34
Mid-term business plan
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
35
Generic strategy
Realization of growth based on evaluation and trust
Information System Segment
Positioning the next three years as an important period to lead into the following years
when next-generation systems will be completed, the Company will further enhance
our brand evaluation through the proposal of new services and products, while laying
the foundation for our services as a pachinko hall management company.
Control System Segment
(1) In order to efficiently develop models that win support from many pachinko fans,
the Company will strengthen our relationships of trust with game machine
manufacturers.
(2) Improvement of earnings by turning the pachislot business into the black
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
36
Generic strategy
Realization of growth based on evaluation and trust
Net Sales
210
Segment income
11
220
5
61
360
330
2014年3月期
FY2013
2015年3月期
FY2014
43
2016年3月期
FY2015
2017年3月期
FY2016
2014年3月期
FY2013
2015年3月期
FY2014
2016年3月期
FY2015
2017年3月期
FY2016
＜Information System Segment＞
Positioning the next three years as an important period to lead into the following years when nextgeneration systems will be completed, the Company will strengthen our ties with pachinko hall
management companies (i.e. increase profitability) through the reinforcement of MG services, and will
increase sales through the timely proposal of new products.
＜Control System Segment＞
Development of game machines that can contribute to operations and improvement of earnings by
turning the pachislot business into the black.
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
37
Dividends
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
38
Dividends
<Policy> The Company implements "special dividends" according to the revenue based on
"consecutive dividends"
Net sales
(Millions ¥)
Net income
Operation income
FY2011 Results
34,483
226
△342
－%
FY2012 Results
47,096
3,525
1,663
35.6%
FY2013 Results
58,861
7,023
4,161
32.0%
FY2014 Results
56,954
5,338
3,278
36.1%
FY2015 Forecasts
55,000
3,000
2,000
29.5%
(¥ per year)
100
90
80
The Company pays "special dividends"
according to performance.
(Indicated in orange in the graph)
80
60
40
Shareholders'
equity ratio
40
40
40
Consecutive dividends
20
(Interim dividend of ¥10 and
year-end dividend of ¥30)
0
2011/3期
FY2011
2012/3期
FY2012
特別配当金(期末)
Consecutive dividends
Special dividends
2013/3期
FY2013
期末配当金
2014/3期(予)
FY2014
特別配当金(中間)
Interim dividend
Interim dividend
2015/3期(計画)
FY2015
(Forecast)
中間配当金
Year-end dividend
Year-end dividend
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
39
Disclaimer
The contents in this material and comments made during the
questions and answers etc. of this briefing session are the
judgment and forecasts of the Company’s management based
on the currently available information.
These contents involve risk and uncertainty, and the actual
results may differ materially from these contents/comments.
■Contact details for inquiries
Daikoku Denki Co., Ltd.
Inquiries: Investor Relations
E-MAIL [email protected]
Copyright ©DAIKOKU DENKI Co., Ltd. All rights reserved.
40

Download Report