Summary of Financial Data and Business Results for the Second

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Summary of Financial Data and Business Results for the Second This is an English translation of the official announcement in Japanese that was released on November 8, 2017. The translation is prepared for the readers’ convenience only. All readers are strongly recommended to refer to the original Japanese version for complete and accurate information. Should there be any inconsistency between the translation and the official Japanese text, the latter shall prevail. Summary of Financial Data and Business Results for the Second Quarter of the Fiscal Year Ending December 31, 2017 (JP GAAP, Consolidated) November 8, 2017 Listed Exchange: Tokyo Stock Exchange Company Name: Universal Entertainment Corporation Code No.: 6425 URL: http://www.universal-777.com Representative: (Name) Jun Fujimoto (Title) Representative Director and President Contact: (Name) Kenshi Asano (Title) Director and CFO TEL: +81-3-5530-3055 Scheduled Submission Date of Quarterly Report: November 8, 2017 Scheduled Commencement Date of Dividend Payment: - Supplementary Briefing Materials for Quarterly Settlement of Accounts: None available Briefing on Quarterly Settlement of Accounts: None scheduled (Amounts rounded down to nearest million yen) 1. Consolidated Business Results for the Second Quarter of Fiscal Year Ending December 31, 2017 (Period from April 1, 2017 to September 30, 2017) (1) Consolidated Operating Results (Percentages refer to changes from the same quarter in the previous fiscal year) Net Income Attributable Net Sales Operating Profit Ordinary Profit to Owners of Parent Million Yen % Million Yen % Million Yen % Million Yen % 2nd Quarter of Fiscal Year Ending 43,385 (23.3) (10,301) - (10,876) - (6,615) - December 31, 2017 2nd Quarter of Fiscal Year Ended 56,585 25.3 15,550 90.9 23,809 362.8 15,801 318.6 March 31, 2017 (Note) Comprehensive income 2nd Quarter of Fiscal Year Ending December 31, 2017: (6,865) million yen (-%) 2nd Quarter of Fiscal Year Ended March 31, 2017: (16,450) million yen (-%) Net Income per Share Diluted Net Income per Share Yen Yen 2nd Quarter of Fiscal Year Ending (83.86) - December 31, 2017 2nd Quarter of Fiscal Year Ended 215.33 215.25 March 31, 2017 (Note) “Diluted net income per share” for the second quarter of the fiscal year ending December 31, 2017 is not stated, because net loss was posted despite the existence of latent shares with a dilution effect. (2) Consolidated Financial Status Ratio of Shareholders’ Total Assets Net Assets Net Assets per Share Equity Million Yen Million Yen % Yen As of September 30, 2017 529,125 231,668 43.8 2,937.19 As of March 31, 2017 568,635 259,990 45.6 3,287.46 (Reference) Shareholders’ equity As of September 30, 2017: 231,717 million yen As of March 31, 2017: 259,350 million yen 2. Status of Dividends Annual Dividends End of 1st Quarter End of 2nd Quarter End of 3rd Quarter End of Fiscal Year Total Yen Yen Yen Yen Yen Fiscal Year Ended March 31, 2017 - 0.00 - 40.00 40.00 Fiscal Year Ending December 31, - 0.00 2017 Fiscal Year Ending December 31, - - - 2017 (Forecast) (Note) Revision from the dividend forecast most recently announced: None The dividend forecast for the fiscal year ending December 31, 2017 is to be determined. 3. Consolidated Business Results Forecast for the Fiscal Year Ending December 31, 2017 (Period from April 1, 2017 to December 31, 2017) (Percentages refer to changes from the previous corresponding period) Net Income Attributable Net Income per Net Sales Operating Profit Ordinary Profit to Owners of Parent Share Million Yen % Million Yen % Million Yen % Million Yen % Yen 101,900 - 16,700 - 16,700 - 15,800 - 200.28 - Full Fiscal Year - - - - 115,800 24,500 24,500 20,900 264.92 (Note) Revision from the business forecasts most recently announced: None At the 44th Ordinary Shareholders’ Meeting held on June 29, 2017, shareholders approved an amendment to the Articles of Incorporation that changed the end of the fiscal year from March 31 to December 31. As we will have an irregular nine-month fiscal year from April 1, 2017 to December 31, 2017, the forecast covers only this nine-month period and year-on-year comparisons are not presented. As the effect of regulation regarding Pachinko and Pachislot machines 1) it has been confirmed that the regulation for the 5.9 will come into effect starting in October 2017, and 2) there will be an announcement in the near future regarding a new standard. In addition, 3) it is predicted that there will be a strengthening of guidelines related to high-stakes machines. However, in spite of the impact that such environmental changes will have on the marketplace, the Company believes it also represents an opportunity for makers to explore different sales opportunities. Although our company has the technology and the production capability in place to support the new standards, it is currently difficult to get a complete read on how the attractiveness of the new machines will measure up in the actual market. For this reason, for our earnings forecast for the year ending December 31, 2017, we have decided to use a range-based full-year earnings format. Assuming that the accounting period for the Company and all consolidated subsidiaries covers the 12 months from April to March, the outlook for the next period (based on available comparisons) is as follows. (Percentages refer to changes from the previous corresponding period) Net Income Attributable Net Income Net Sales Operating Profit Ordinary Profit to Owners of Parent per Share Million Yen % Million Yen % Million Yen % Million Yen % Yen 133,000 - 19.6 - 23,800 - (16.8) - 23,700 - (12.3) - 23,400 - 25.6 - 296.61 - Full Fiscal Year 154,000 38.5 35,900 25.5 35,800 32.4 31,300 68.0 396.75 * Matters of Note (1) Changes in material subsidiaries during the period (Changes in specified subsidiaries accompanying changes in scope of consolidation) : None (2) Application of accounting procedures specific to the preparation of quarterly consolidated financial statements : None (3) Changes in accounting policies, changes in accounting estimates and/or restatements 1) Changes in accounting policies accompanying revision of accounting standards, etc. : None 2) Changes in accounting policies other than 1) : None 3) Changes in accounting estimates : None 4) Restatements : None (4) Number of outstanding shares (common stock) 1) Shares issued at end of fiscal period (including treasury shares) As of September 30, 2017: 80,195,000 shares As of March 31, 2017: 80,195,000 shares 2) Number of treasury shares at end of fiscal period As of September 30, 2017: 1,304,233 shares As of March 31, 2017: 1,304,232 shares 3) Average number of shares during fiscal period 2nd Quarter of Fiscal Year Ending December 31, 2017: 78,890,768 shares 2nd Quarter of Fiscal Year Ended March 31, 2017: 73,383,768 shares * The current financial report is not subject to quarterly review procedures. * Explanation on Proper Usage of Business Results Forecast and Other Noteworthy Items The forward-looking statements regarding business results, etc. as featured herein are based on information that is currently available and certain assumptions that are determined to be reasonable, but are not promises by the Company regarding future performance. Actual business results may vary significantly due to a number of factors. For preconditions for business forecasts, notes on the usage of business forecasts and so forth, please see “1. Qualitative Information Pertaining to Quarterly Settlement of Accounts, (3) Explanation of Consolidated Business Results Forecast and Other Forward-looking Statements” on page 4 of the Attached Materials. Universal Entertainment Corporation (6425) Second Quarter of Fiscal Year Ending December 2017 Attached Materials: Table of Contents 1. Qualitative Information Pertaining to Quarterly Settlement of Accounts 2 (1) Explanation of Operating Results 2 (2) Explanation of Financial Status 3 (3) Overview of Cash Flows 4 (4) Explanation of Consolidated Business Results Forecast and Other Forward-looking Statements 4 2. Quarterly Consolidated Financial Statements and Notes 6 (1) Quarterly Consolidated Balance Sheet 6 (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income 8 (Quarterly Consolidated Statement of Income) (The Cumulative Second Quarter of the Consolidated Fiscal Year) 8 (Quarterly Consolidated Statement of Comprehensive Income) (The Cumulative Second Quarter of the Consolidated Fiscal Year) 9 (3) Quarterly Consolidated Statement of Cash Flows 10 (4) Notes to Quarterly Consolidated Financial Statements 12 (Notes Pertaining to Going Concern) 12 (Changes in Accounting Policies) 12 (Notes in Event of Significant Fluctuation in Amount of Shareholders’ Equity) 12 (5) Additional Information 12 1 Universal Entertainment Corporation (6425) Second Quarter of Fiscal Year Ending December 2017 1. Qualitative Information Pertaining to Quarterly Settlement of Accounts (1) Explanation of Operating Results At the 44th Ordinary Shareholders’ Meeting held on June 29, 2017, shareholders approved an amendment to the Articles of Incorporation that changed the end of the fiscal year from March 31 to December 31. The purposes of this change are to facilitate comparisons of financial data with the performance of companies in other countries and to increase the transparency of Universal Entertainment’s management. The consolidated statement of income for the first six months of the previous consolidated fiscal year includes the period from April 1 to September 30, 2016 for companies with a March 31 fiscal year end and the period from January 1 to June 30, 2016 for companies with a December 31 fiscal year end. However, the consolidated statement of income for the first six months of the current nine-month transitional consolidated fiscal period uses the period from April 1 to September 30, 2017 for all companies included in the consolidated financial statements. In addition, retained earnings in shareholders’ equity on the consolidated balance sheet as of September 30, 2017 have been adjusted to reflect the profit and loss of companies with a December 31 fiscal year end for the period from January 1 to March 31, 2017.
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