Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
August 7, 2024
Consolidated Financial Results
for the Three Months Ended June 30, 2024 (Under Japanese GAAP)
Company name: | Japan Cash Machine Co., Ltd. | |
Listing: | Tokyo Stock Exchange | |
Securities code: | 6418 | |
URL: | https://www.jcm-hq.co.jp | |
Representative: | Yojiro Kamihigashi, President and Representative Director | |
Inquiries: | Tsuyoshi Takagaki, Executive Director and Senior Executive Officer, | |
Executive General Manager of Corporate Planning Division | ||
Telephone: | +81-6-6643-8400 | |
Scheduled date to commence dividend payments: | ― | |
Preparation of supplementary material on financial results: | Yes (List on HP) | |
Holding of financial results briefing: | No |
(All amounts are rounded down to the nearest millions)
1. Consolidated financial results for the three months ended June 30, 2024 (April 1, 2024 to June 30, 2024)
(1) Consolidated operating results (cumulative) | (% indicate year-on-year changes) | |||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||
owners of parent | ||||||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||
June 30, 2024 | 10,104 | 58.2 | 1,917 | 595.2 | 2,377 | 170.6 | 2,004 | 167.1 | ||||||
June 30, 2023 | 6,386 | 6.3 | 275 | (41.0) | 878 | (23.3) | 750 | (19.8) | ||||||
Note: Comprehensive income | For the three months ended June 30, 2024: | ¥3,012 million | [517.5%] | |||||||||||
For the three months ended June 30, 2023: | ¥487 million | [(61.3)%] | ||||||||||||
Basic earnings | Diluted earnings | |||||||||||||
per share | per share | |||||||||||||
Three months ended | Yen | Yen | ||||||||||||
June 30, 2024 | 73.34 | － | ||||||||||||
June 30, 2023 | 25.57 | － | ||||||||||||
(2) Consolidated financial position | ||||||||||||||
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | |||||||||||
As of | Millions of yen | Millions of yen | % | Yen | ||||||||||
June 30, 2024 | 49,071 | 29,557 | 60.2 | 1,097.99 | ||||||||||
March 31, 2024 | 47,698 | 28,655 | 60.1 | 1,018.44 | ||||||||||
Reference: Equity | ||||||||||||||
As of June 30, 2024: | ¥29,557 million | |||||||||||||
As of March 31, 2024: | ¥28,655 million |
2. Cash dividends
Annual dividends per share | |||||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended | － | 7.00 | － | 19.00 | 26.00 | ||
March 31, 2024 | |||||||
Fiscal year ending | － | ||||||
March 31, 2025 | |||||||
Fiscal year ending | |||||||
March 31, 2025 | 14.00 | － | 14.00 | 28.00 | |||
(Forecast) | |||||||
Note: Revisions to the forecast of cash dividends most recently announced: None
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)
(% indicate the changes from the corresponding period of the previous year)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income | |||||
owners of parent | per share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Six months ending | 21,000 | 57.6 | 3,400 | 269.8 | 3,100 | 76.5 | 2,500 | 82.3 | 92.19 |
September 30, 2024 | |||||||||
Full year | 37,500 | 18.6 | 4,300 | 51.5 | 3,900 | 9.3 | 3,100 | (5.5) | 114.76 |
Note: Revisions to the earnings forecast most recently announced: Yes
* Notes
- Significant changes in the scope of consolidation during the period: None
- Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
- Changes other than (i): None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024
As of March 31, 2024
29,672,651 shares
29,672,651 shares
(ii) Number of treasury shares at the end of the period
As of June 30, 2024
As of March 31, 2024
2,753,076 shares
1,535,927 shares
- Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024
Three months ended June 30, 2023
27,325,308 shares
29,344,256 shares
- Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
- Proper use of earnings forecasts, and other special matters
The earnings forecasts and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions which the Company deems reasonable, and are not promises regarding the achievement of forecasts. Actual results may differ significantly from these forecasts due to a wide range of factors. For matters related to the above forecasts, please refer to page 3 of the attached documents.
Contents of Attachments
Index
1. Qualitative information on Quarterly Results …………………………………………………………………………… | 2 | |
(1) | Explanation of Operating Results…………………………………………………………………………………… | 2 |
(2) | Explanation of Financial Position…………………………………………………………………………………… | 3 |
(3) | Information on consolidated earnings forecasts and other forward-looking statements…………………………… | 3 |
2. Quarterly Consolidated Financial Statements and Major Notes…………………………………………………………… | 4 | |
(1) Quarterly Consolidated Balance Sheet……………………………………………………………………………… | 4 | |
(2) | Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income… | 5 |
Quarterly Consolidated Statement of Income | ||
Cumulative period for the consolidated first quarter …………………………………………………………… | 5 | |
Quarterly Consolidated Statement of Comprehensive Income | ||
Cumulative period for the consolidated first quarter …………………………………………………………… | 6 | |
(3) | Quarterly Consolidated Statements of Cash Flows…………………………………………………………………… | 7 |
(4) | Notes to Quarterly Consolidated Financial Statements …………………………………………………………… | 8 |
Notes on changes in accounting policies …………………………………………………………………………… | 8 | |
Notes on premise of a going concern ……………………………………………………………………………… | 9 | |
Note in the event of a significant change in the amount of shareholders' equity …………………………………… | 9 | |
Segment Information, etc. …………………………………………………………………………………………… | 9 | |
Significant subsequent events ……………………………………………………………………………………… | 10 |
1
1. Qualitative information on Quarterly Results
-
Explanation of Operating Results
With regard to the global economy during the three months ended June 30, 2024, while there are still factors of concern about the outlook, such as prolonged global inflation, tight monetary policies of various countries and rising geopolitical risks such as the situation in Middle East, the economy continues to recover gradually due to improvement in employment conditions and recovery of personal consumption in Europe, United States and Japan.
In the gaming market, which is the Group's primary market, appetite for capital investment in casino hotels and other facilities remained high against a backdrop of strong global travel demand, and in the domestic and overseas commercial markets, demand for products for contactless and non-face-to-face payment settlement remained strong. In addition, particularly in Japan, demand increased significantly in response to the issuance of new banknotes in July of this year.
Under these circumstances, in the gaming market, we continued conduct multifaceted marketing activities, including the introduction and proposal of system products that meet customer needs, and sales promotion activities for new products. In the overseas commercial market, in order to further expand sales of our products overseas, which is one of priority measures of our group, we developed new products that meet the needs of each region and country, and implemented initiatives to expand sales channels for our products by exhibiting at exhibitions in different markets in each country, with the aim of developing new markets, especially at our new bases in North, Central and South America. In the domestic commercial market, we further focused on aggressive sales promotion activities in response to various infrastructure improvements due to the increase in tourists visiting Japan and increased demand for our products due to the issuance of new banknotes.
As a result of the above, net sales in this three-month period totaled 10,104 million yen (up 58.2% YoY). In terms of profit, operating profit was 1,917 million yen (up 595.2% YoY) due to an increase in sales, as well as increased sales of profitable products in the domestic commercial and Equipment for the Amusement Industry segments in response to the issuance of new banknotes. In addition, the Company recorded foreign exchange gains resulting from the depreciation of the yen. This brought ordinary profit of 2,377 million yen (up 170.6% YoY) and profit attributable to owners of parent to 2,004 million yen (up 167.1% YoY)
During this three-month period, the average exchange rates were 149.90 yen to the U.S. dollar (133.45 yen in the previous first quarter) and 162.27 yen to the euro (143.97 yen in the previous first quarter). Furthermore, the exchange rate on the final day of the quarter applied to market valuation at the end of the first quarter of this fiscal year was 161.41 yen per U.S. dollar (151.42 yen at the end of the previous fiscal year).
Operating results by segment are as follows.
- Global Gaming
Sales of bill validator units for use in casino gaming machines, which were slumped in the same period of the previous year due to a shortage of parts and materials, increased significantly. As a result, segment sales totaled 4,780 million yen (up 79.5% YoY) and segment profit amounted to 1,067 million yen (up 266.1% YoY).
ⅱ. International Commercial
Due to an increase in sales of bill recycling units installed in self-checkout machines for contactless and non- face-to-face payments, segment sales amounted to 1,716 million yen (up 15.4% YoY). On the other hand, due to an increase in expenses for R&D of new products to develop new markets in North, Central and South America and participation in various exhibitions to expand sales channels, segment loss amounted to 109 million yen (loss of 115 million yen in the previous first quarter).
- Domestic Commercial
In addition to an increase in sales of bill recycling units for payment machines in parking lot and bill validator units for bus fare boxes, demand for renewal of our product increased in response to the issuance of new banknotes. As a results, segment sales totaled 1,327 million yen (up 116.7% YoY) and segment profit amounted to 567 million yen (profit of 43 million yen in the previous first quarter).
ⅳ. Equipment for the Amusement Industry
In addition to steady sales of dedicated smart gaming machine units, sales of bill validator units in response to the issuance of new banknotes and peripheral equipment such as bill transport systems increased. As a result, segment sales totaled 2,280 million yen (up 40.5% YoY) and segment profit amounted to 683 million yen (up 137.7% YoY).
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-
Explanation of Financial Position ⅰ. Assets, Liabilities and Net Assets
Total assets at the end of the first quarter of the current fiscal year increased by 1,372 million yen from the end of the previous fiscal year to 49,071 million yen.
Total current assets increased by 1,209 million yen from the end of the previous fiscal year to 41,352 million yen. "Notes and accounts receivable - trade, and contract assets" and" inventories" increase by 744 million yen and 618 million yen respectively, while "cash and deposits" decreased by 141 million yen.
Total non-current assets increased by 168 million yen from the end of the previous fiscal year to 7,600 million yen. The mark- to-market valuation of investment securities increased by 102 million yen.
Total deferred assets decreased by 5 million yen from the end of the previous fiscal year to 117 million yen due to amortization of bond issuance costs.
Total current liabilities decreased by 167 million yen from the end of the previous fiscal year to 9,092 million yen. "Current portion of long-term borrowings" increased by 240 million yen, "income taxes payable" increase by 192 million yen and "other" in current liabilities increase by 819 million yen due to an increase in contract liabilities, while "notes and accounts payable-trade" and "provision doe bonuses" decreased by 1,178 million yen and 204 million yen respectively.
Total non-current liabilities increased by 638 million yen from the end of the previous fiscal year to 10,420 million yen. "Long-term borrowings" increased by 660 million yen due to new borrowings.
Total net assets increased by 901 million yen from the end of the previous fiscal year to 29,577 million yen. "Treasury shares" increased by 1,576 million yen due to the purchase of treasury shares. "Retained earnings" increased by 1,469 million yen due to the recording of profit attributable to owners of parent and "foreign currency translation adjustment" increased by 937 million yen due to the depreciation of the yen, etc.
ⅱ. Cash Flows
Cash and cash equivalents (hereinafter referred to as "Net cash") during the first quarter of the current fiscal year decreased by 141 million yen from the end of the previous fiscal year to 12,380 million yen.
The status of each cash flow and their factors during the first quarter of the current fiscal year are as follows.
Cash flows from operating activities
Net cash provided by operating activities amounted to 822 million yen (expenditure of 1,326 million yen in the previous first quarter). This was mainly because funds increased due to profit before income taxes of 2,377 million yen, while funds decreased due to a decrease in trade payables of 1,488 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 90 million yen (revenue of 129 million yen in the previous first quarter). This was mainly because funds decreased due to purchase of property, plant and equipment of 79 million yen and other factors.
Cash flows from financing activities
Net cash used in financing activities totaled 1,240 million yen (expenditure of 533 million yen in the previous first quarter). This was mainly due to funds increased due to proceeds from long-term borrowings of 1,200 million yen, while funds decreased due to repayments of long-term borrowings of 300 million yen, purchase of treasury shares of 1,576 million yen and dividends paid of 534 million yen.
In addition to these items, there was an increase in funds due to effect of exchange rate change on cash and cash equivalents of 366 million yen.
-
Information on consolidated earnings forecasts and other forward-looking statements
The Company revised its consolidated earning forecast for the first half and full year of the fiscal year ending March 31, 2025, which were announced on May 9 ,2024.
For the details, please refer to the news release titled "Notice Concerning Upward Revision of Earnings Forecast" disclosed today.
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2. Quarterly Consolidated Financial Statements and Major Notes
(1) Quarterly Consolidated Balance Sheet
(Thousands of yen) | ||
As of March 31, 2024 | As of June 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 12,522,582 | 12,380,630 |
Notes and accounts receivable - trade, and contract | 6,575,455 | 7,319,990 |
assets | ||
Electronically recorded monetary claims - operating | 481,028 | 621,410 |
Securities | 58,404 | 62,004 |
Merchandise and finished goods | 12,209,054 | 12,671,406 |
Work in process | 1,195,138 | 1,669,608 |
Raw materials and supplies | 6,159,975 | 5,841,765 |
Other | 1,135,852 | 990,835 |
Allowance for doubtful accounts | (193,922) | (204,815) |
Total current assets | 40,143,568 | 41,352,836 |
Non-current assets | ||
Property, plant and equipment | 3,950,375 | 3,970,339 |
Intangible assets | 219,772 | 221,309 |
Investments and other assets | ||
Other | 3,334,003 | 3,481,316 |
Allowance for doubtful accounts | (72,611) | (72,611) |
Total investments and other assets | 3,261,392 | 3,408,705 |
Total non-current assets | 7,431,539 | 7,600,354 |
Deferred assets | 123,098 | 117,909 |
Total assets | 47,698,207 | 49,071,100 |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 4,583,516 | 3,405,174 |
Current portion of long-term borrowings | 1,260,000 | 1,500,000 |
Income taxes payable | 392,121 | 584,506 |
Provision for bonuses | 366,624 | 161,667 |
Provision for bonuses for directors (and other | 36,000 | － |
officers) | ||
Other | 2,622,456 | 3,441,492 |
Total current liabilities | 9,260,718 | 9,092,840 |
Non-current liabilities | ||
Bonds payable | 6,000,000 | 6,000,000 |
Long-term borrowings | 3,540,000 | 4,200,000 |
Other | 242,017 | 220,924 |
Total non-current liabilities | 9,782,017 | 10,420,924 |
Total liabilities | 19,042,736 | 19,513,765 |
Net assets | ||
Shareholders' equity | ||
Share capital | 2,220,316 | 2,220,316 |
Capital surplus | 2,764,839 | 2,764,839 |
Retained earnings | 24,570,828 | 26,040,398 |
Treasury shares | (2,353,842) | (3,930,052) |
Total shareholders' equity | 27,202,141 | 27,095,502 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 287,152 | 358,241 |
Foreign currency translation adjustment | 1,166,175 | 2,103,591 |
Total accumulated other comprehensive income | 1,453,328 | 2,461,833 |
Total net assets | 28,655,470 | 29,557,335 |
Total liabilities and net assets | 47,698,207 | 49,071,100 |
4
- Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income
(Quarterly Consolidated Statement of Income) (Cumulative period for the consolidated first quarter)
(Thousands of yen) | ||
Three months ended | Three months ended | |
June 30, 2023 | June 30, 2024 | |
Net sales | 6,386,657 | 10,104,417 |
Cost of sales | 4,032,340 | 5,554,679 |
Gross profit | 2,354,316 | 4,549,737 |
Selling, general and administrative expenses | 2,078,437 | 2,631,828 |
Operating profit | 275,878 | 1,917,908 |
Non-operating income | ||
Interest income | 4,962 | 3,145 |
Dividend income | 32,184 | 34,285 |
Foreign exchange gains | 538,859 | 485,154 |
Other | 38,749 | 6,474 |
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
614,757529,060
6,76124,997
－ 11,622
5,46132,978
Total non-operating expenses | 12,223 | 69,598 | |
Ordinary profit | 878,413 | 2,377,370 | |
Extraordinary income | |||
Gain on sale of investment securities | － | 335 | |
Total extraordinary income | － | 335 | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 878 | 0 | |
Total extraordinary losses | 878 | 0 | |
Profit before income taxes | 877,534 | 2,377,705 | |
Income taxes - current | 95,776 | 367,666 | |
Income taxes - deferred | 31,354 | 5,871 | |
Total income taxes | 127,130 | 373,537 | |
Profit | 750,404 | 2,004,167 | |
Profit attributable to owners of parent | 750,404 | 2,004,167 |
5
(Quarterly Consolidated Statement of Comprehensive Income) (Cumulative period for the consolidated first quarter)
(Thousands of yen) | |||
Three months ended | Three months ended | ||
June 30, 2023 | June 30, 2024 | ||
Profit | 750,404 | 2,004,167 | |
Other comprehensive income | |||
Valuation difference on available-for-sale | 22,886 | 71,088 | |
securities | |||
Foreign currency translation adjustment | ( | 285,369) | 935,780 |
Share of other comprehensive income of entities | － | 1,635 | |
accounted for using equity method |
Total other comprehensive income
Comprehensive income Comprehensive income attributable to
( | 262,483) | 1,008,504 |
487,921 | 3,012,672 |
Comprehensive income attributable to owners of | 487,921 | 3,012,672 |
parent | ||
Comprehensive income attributable to non- | － | － |
controlling interests | ||
6
(3) Quarterly Consolidated Statements of Cash Flows
(Thousands of yen) | |||||||
Three months ended | Three months ended | ||||||
June 30, 2023 | June 30, 2024 | ||||||
Cash flows from operating activities | |||||||
Profit before income taxes | 877,534 | 2,377,705 | |||||
Depreciation | 81,419 | 131,059 | |||||
Increase (decrease) in provisions | 169,984) | 235,714) | |||||
( | 37,147) | ( | 37,431) | ||||
Interest and dividend income | |||||||
Interest expenses | ( | 6,761 | ( 24,997 | ||||
Foreign exchange losses (gains) | 472,579) | 386,952) | |||||
Loss (gain) on sale of securities | ( | － | ( | ( | 335) | ||
Loss (gain) on sale and retirement of property, | 878 | 0 | |||||
plant and equipment | |||||||
Share of loss (profit) of entities accounted for | － | 11,622 | |||||
using equity method | |||||||
Decrease (increase) in trade receivables | 35,552) | 469,754) | |||||
1,419,395) | |||||||
Decrease (increase) in inventories | ( | ( | 235,977 | ||||
( | 94,728) | 1,488,519) | |||||
Increase (decrease) in trade payables | |||||||
Decrease (increase) in consumption taxes refund | (123,615 | ( | 627,356 | ||||
receivable | |||||||
Other, net | 6,888) | 158,103 | |||||
1,146,067) | |||||||
Subtotal | ( | ( | 948,114 | ||||
Interest and dividends received | 36,976 | 37,259 | |||||
Interest paid | 8,468) | 20,280) | |||||
208,489) | 142,864) | ||||||
Income taxes paid | ( | ( | |||||
Net cash provided by (used in) operating activities | 1,326,049) | ( | 822,228 | ||||
( | |||||||
( | |||||||
Cash flows from investing activities | |||||||
Net decrease (increase) in short-term investment | 402,363 | 345 | |||||
securities | |||||||
Purchase of property, plant and equipment | 264,442) | 79,465) | |||||
Proceeds from sale of property, plant and | ( | 534 | ( | － | |||
equipment | 8,370) | 11,482) | |||||
Purchase of intangible assets | |||||||
Purchase of investment securities | ( | 516) | ( | 388) | |||
( | ( | 640 | |||||
Proceeds from sale of investment securities | － | ||||||
Other, net | － | 100 | |||||
Net cash provided by (used in) investing activities | 129,569 | 90,250) | |||||
Cash flows from financing activities | ( | ||||||
Repayments of long-term borrowings | 300,000) | 300,000) | |||||
－ | 1,200,000 | ||||||
Proceeds from long-term borrowings | ( | ( | |||||
Dividends paid | 205,565) | 534,683) | |||||
( | ( | ||||||
Repayments of lease liabilities | ( | 28,132) | ( | 29,496) | |||
Purchase of treasury shares | 36) | 1,576,209) | |||||
Net cash provided by (used in) financing activities | 533,734) | 1,240,389) | |||||
( | ( | ||||||
( | ( | ||||||
Effect of exchange rate change on cash and cash | 98,294 | 366,458 | |||||
equivalents | |||||||
Net increase (decrease) in cash and cash equivalents | 1,631,919) | 141,951) | |||||
( | ( | ||||||
Cash and cash equivalents at beginning of period | 13,204,447 | 12,522,582 | |||||
Cash and cash equivalents at end of period | 11,572,527 | 12,380,630 |
7
(4) Notes to Quarterly Consolidated Financial Statements
Notes on changes in accounting policies
(Application of "Accounting Standard for Current Income Taxes" and relevant ASBJ regulations)
The Company has applied the "Accounting Standard for Current Income Taxes" (Accounting Standards Board of Japan (ASBJ) Statement No.27, October 28, 2022; hereinafter referred as the "Revised Accounting Standard 2022") and other relevant ASBJ regulations from the beginning of the first quarter of the fiscal year under review. The amendment to the classification of income taxes (taxes on other comprehensive income) follows the transitional treatment prescribed in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment prescribed in the proviso (2) of paragraph 65-2 of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No.28, October 28, 2022; hereinafter referred as the "Revised Implementation Guidance 2022"). This change in accounting policies has no impact on the quarterly consolidated financial statements.
In addition, the Company has adopted the Revised Implementation Guidance 2022 for the amendment related to the revised accounting treatment in consolidated financial statements of the deferral for tax purpose of gain or loss on sale of shares of subsidiaries, etc. among consolidated companies, taking effect from the beginning of the first quarter of the fiscal year under review. This change in accounting policies have been applied retrospectively, and the figures concerning quarterly consolidated financial statements and consolidated financial statements for the previous fiscal year have been prepared on a retrospective basis. This change in accounting policies has no impact on the quarterly consolidated financial statements for the same quarter of the previous fiscal year and the consolidated financial statements for the previous fiscal year.
8