Brief Report of Settlement of Accounts (Kessan Tanshin) for Full Fiscal Year Ending March 31, 2009
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Brief Report of Settlement of Accounts (Kessan Tanshin) of Aruze Corp. (6425) for Period Ended March 2009 Brief Report of Settlement of Accounts (Kessan Tanshin) for Full Fiscal Year Ending March 31, 2009 June 2, 2009 Listed Company Name: ARUZE CORP. Listed Exchange Market: JQ Code Number: 6425 URL: http://www.aruze.com Representative: (Position) Representative Executive Officer and President (Name) Hajime Tokuda Contact Person: (Position) General Manager, Finance and Accounting Department (Name) Masayuki Saito Telephone: 03-5530-3055 Scheduled Date of Annual Shareholders Meeting: Scheduled Submission Date of Securities Registration Report: June 26, 2009 June 29, 2009 Scheduled Dividend Payment Commencement Date: - (Amounts are rounded down to nearest million yen) 1. Consolidated Financial Results for Full Fiscal Year Ending March 31, 2009 (April 1, 2008 to March 31, 2009) (1) Consolidated Results of Operations (Percentages indicate ratio of increase/decrease from previous fiscal year) Net sales Operating income Ordinary income Net income Million yen % Million yen % Million yen % Million yen % Mar. 2009 Fiscal Year 19,993 (72.3) (11,605) - (13,224) - (14,808) - Mar. 2008 Fiscal Year 72,133 102.7 16,088 - 23,311 - 38,086 315.4 Net income per share Ratio of current Ratio of ordinary Ratio of operating Net income per share after adjustment of net income to income to total assets income to net sales latent shares shareholders’ equity Yen Yen % % % Mar. 2009 Fiscal Year (185.26) - (11.6) (8.0) (58.0) Mar. 2008 Fiscal Year 476.52 476.45 28.9 13.1 22.3 (Reference) Equity in profit/loss of affiliates Fiscal year ending Mar. 31, 2009: 2,092 million yen; Fiscal year ending Mar. 31, 2008: 6,468 million yen (2) Consolidated Financial Position Total assets Net assets Shareholders’ equity ratio Net assets per share Million yen Million yen % Yen Mar. 2009 Fiscal Year 145,761 112,838 74.7 1,362.23 Mar. 2008 Fiscal Year 184,826 147,327 79.7 1,841.84 (Reference) Shareholders’ equity Fiscal year ending Mar. 31, 2009: 108,889 million yen; Fiscal year ending Mar. 31, 2008: 147,227 million yen (3) Consolidated Cash Flow Position Net cash provided by (used Net cash provided by (used Net cash provided by (used Cash and cash equivalents at in) operating activities in) investment activities in) financing activities end of period Million yen Million yen Million yen Million yen Mar. 2009 Fiscal Year (10,942) (40,420) 596 14,177 Mar. 2008 Fiscal Year 17,063 23,999 (22,946) 56,004 2. Status of Dividends Dividends per share Total Dividend Dividend ratio End of 1st End of 2nd End of 3rd End of dividends payout ratio to net assets (Record Date) Full year Qtr Qtr Qtr fiscal year (annual) (consolidated) (consolidated) Yen Yen Yen Yen Yen Million yen % % Mar. 2009 Fiscal Year - 0.00 - 60.00 60.00 4,796 12.6 3.6 Mar. 2008 Fiscal Year - 0.00 - 0.00 0.00 - - - Mar. 2010 Fiscal Year - 0.00 - 20.00 20.00 22.8 (forecast) 3. Forecast of Consolidated Financial Results for Fiscal Year Ending March 31, 2010 (April 1, 2009 to March 31, 2010) (Percentages indicate ratio of increase/decrease from year-to-year and from period-to-period) Net income Net sales Operating income Ordinary income Net income per share Million yen % Million yen % Million yen % Million yen % Yen Year to end of 2nd Quarter 22,000 107.7 2,000 - 2,000 - 1,500 - 18.76 Full Year 58,000 190.1 12,000 - 12,000 - 7,000 - 87.57 -1- Brief Report of Settlement of Accounts (Kessan Tanshin) of Aruze Corp. (6425) for Period Ended March 2009 4. Others (1) Changes in material subsidiaries during fiscal year (changes in specified subsidiaries accompanying change in scope of consolidation): Present Newly added: 1 company (Molly Investments Cooperatieve U. A.) Excluded: 3 companies (Seven Works Corporation, Aruze Global Trading Corporation, Seta Corp.) (Note) See p. 6, entitled “Status of the Corporate Group” for details. (2) Changes in principles, procedures, methods of presentation etc. for accounting methods pertaining to preparation of consolidated financial statements (items marked as changes under significant items serving as the basis for preparation of consolidated financial statements) [1] Changes resulting from revision of accounting standards: Present [2] Changes other than [1]: Absent (Note) See p. 23, entitled “Changes in significant items serving as basis for preparation of consolidated financial statements,” for details. (3) Total number of issued shares (common stock) [1] Shares issued at end of fiscal year (incl. treasury stock) Mar. 2009 Fiscal Year: 80,195,000; Mar. 2008 Fiscal Year: 80,195,000 [2] Number of treasury stocks at end of fiscal year: Mar. 2009 Fiscal Year: 260,363; Mar. 2008 Fiscal Year: 260,034 (Note) See p. 32, entitled “Per share information,” for details on the number of shares serving as the basis of calculating net income per share for the fiscal year in question (consolidated). (Reference) Summary of Non-Consolidated Financial Results 1. Non-Consolidated Financial Results for Fiscal Year Ending March 31, 2009 (April 1, 2008 to March 31, 2009) (1) Non-Consolidated Results of Operations (Percentages indicate ratio of increase/decrease from previous fiscal year) Net sales Operating income Ordinary income Net income Million yen % Million yen % Million yen % Million yen % Mar. 2009 Fiscal Year 9,904 (83.2) (7,406) - (6,168) - (10,098) - Mar. 2008 Fiscal Year 58,903 83.9 9,521 - 9,846 - 9,350 - Net income per share after Net income per share adjustment of latent shares Yen Yen Mar. 2009 Fiscal Year (126.33) - Mar. 2008 Fiscal Year 116.99 116.98 (2) Non-Consolidated Financial Position Total assets Net assets Shareholders’ equity ratio Net assets per share Million yen Million yen % Yen Mar. 2009 Fiscal Year 130,141 97,506 74.8 1,217.96 Mar. 2008 Fiscal Year 131,596 112,379 85.3 1,404.63 (Reference) Shareholders’ equity Fiscal year ending Mar. 31, 2009: 97,357 million yen; Fiscal year ending Mar. 31, 2008: 112,279 million yen 2. Forecast of Non-Consolidated Financial Results for Fiscal Year Ending March 31, 2010 (April 1, 2009 to March 31, 2010) (Percentages indicate ratio of increase/decrease from year-to-year and from period-to-period) Net income Net sales Operating income Ordinary income Net income per share Million yen % Million yen % Million yen % Million yen % Yen Year to end of 2nd quarter 18,500 - 2,500 - 2,500 - 2,000 - 25.02 Full year 54,500 450.3 10,000 - 10,000 - 6,000 - 75.06 *Explanation and Other Noteworthy Items Regarding Proper Application of Financial Results Forecast The forecasts of financial results and other items concerning the future as featured herein are based on information currently available and certain assumptions that are determined to be reasonable. Actual financial results, etc. may differ significantly due to various factors. Note that Aruze Gaming America, Inc., as well as Aruze Gaming Africa (Pty.) Ltd. and Aruze Gaming Australia Pty. Ltd. which are subsidiaries of Aruze Gaming America, Inc., are scheduled to be excluded from the scope of consolidation of the Company. Accordingly, the forecast of consolidated financial results does not include the results of Aruze Gaming America, Inc., Aruze Gaming Africa (Pty.) Ltd. and Aruze Gaming Australia Pty. Ltd. -2- Brief Report of Settlement of Accounts (Kessan Tanshin) of Aruze Corp. (6425) for Period Ended March 2009 1. Operating Results (1) Analysis of Operating Results (Operating Results for Fiscal Year in Question) In the consolidated fiscal year in review, the Japanese economy remained unstable due partly to the escalating oil prices in the first half, and partly to the sharp falls in share prices triggered by the global financial crisis that began with the U.S. banking crisis following the collapse of a large U.S. securities company. As for the environment surrounding Pachislot machines, the user base continued to shrink due to the restriction of volatility upon transition from Type 4 to Type 5 machines, and this led to a drop in buying motivation among parlors. Also, the global financial crisis brought a slump in the domestic economy, and the number of parlors decreased. Because of this bleak environment surrounding Pachislot machines as described above, only 18,000 Pachislot machines were sold and installed and 40,000 units underwent servicing for software replacement during the current consolidated fiscal year,. As a result, sales revenue in the current consolidated fiscal year ended at 19,993 million yen (72.3% down over the same term of the previous fiscal year), with operating loss amounting to 11,605 million yen. Also, 2,092 million yen of investment gains under the equity method was recorded due partly to the full-year net profit of US$210,206,000 reported by Wynn Resorts, Limited (NASDAQ code: WYNN), which is an equity-method affiliate, while 4,066 million yen in foreign exchange loss was also recorded due partly to the inclusion into the scope of consolidation of the three subsidiaries involved in the casino project in the Philippines with effect from the third quarter. As a result, 13,224 million yen in ordinary losses was posted. Also, the capital increase by Wynn Resorts, Limited and other events, led to the reporting of 4,769 million yen in gain on change in equity, and 4,728 million yen in valuation losses on inventory assets was also recorded. These resulted in an extraordinary loss of 5,655 million yen, and consequently a net loss of 14,808 million yen for the period in review was posted. Discussed below are the results for each business segment.