Japan Cash Machine Co., Ltd. · TSE:6418
Japan Cash Machine — FY2006 Earnings Presentation
28 slides from Japan Cash Machine's earnings presentation, May 2006
Slide 1: Business Results for the Year Ended March 2006
(Provided for convenience purpose only. Japanese-language original controls in all cases.) Business Results for the Year Ended March 2006 May 2006 Stock Code:6418 The First Section of the Tokyo and Osaka Stock Exchange http://www.jcm-hq.co.jp
Slide 2: Business Results
Year Ended March 2006 Business Results ( In millions of yen) Sales and Income Increased/ March 2006 March 2005 Decreased Net Sales 32,594 37,947 -5,352 -14.1 Operating 4,824 8,644 -3,820 -44.2 Income Ordinary 5,023 8,882 -3,858 -43.4 Income Net Income 2,969 4,983 -2,014 -40.4 Highlights for current
Slide 3: Sales by Business Segment
Year Ended March 2006 Sales by Business Segment ( In millions of yen) Increased/ M arch 2006 M arch 2005 Decreas ed Money-handling 18,340 23,992 -5,651 -23.6 machines Cas h Regis ter 525 717 -192 -26.8 Equ i pm e n t for th e am u se m e n t 12,539 12,159 379 3.1 i n du stry Other Products 1,188 1,0
Slide 4: Sales by Geographical Segment
Year Ended March 2006 Sales by Geographical Segment ( In millions of yen) Increas ed/ M arch 2 0 0 6 M arch 2 0 0 5 Decreas ed J apan 2 8 ,0 7 8 3 1 ,7 8 4 -3 ,7 0 5 -1 1 .7 N o rth 1 0 ,1 5 6 1 2 ,0 9 1 -1 ,9 3 5 -1 6 .0 A m e rica A s ia 6 ,0 3 4 9 ,7 7 3 -3 ,7 3 9 -3 8 .3 E uro pe 5 ,9 8 2 5 ,6 4
Slide 5: Operating Income by Geographical Segment
Year Ended March 2006 Operating Income by Geographical Segment ( In millions of yen) Increas ed/ M arch 2006 M arch 2005 Decreas ed Japan 2,711 5,133 -2,421 -47.2 North 796 1,725 -928 -53.8 Ame rica As ia 246 592 -345 -58.3 Europe 1,176 1,388 -211 -15.2 Elimination -107 -194 -86 - Total 4,824 8,644
Slide 6: Factors of increase or decrease in net sales
Year Ended March 2006 Factors of increase or decrease in net sales ( In millions of yen) Decrease in sales of money-handling machines for North America Influence of March 2005 foreign exchange 178 Net Sales 388 Decrease in sales of -2,198 money-handling machines for Increase in sales of domestic mar
Slide 7: Factors of increase or decrease in operating income
Year Ended March 2006 Factors of increase or decrease in operating income ( In millions of yen) 11,000 Decrease in sales 10,000 for the overseas 9,000 market Decrease in sales of money-handling 8,000 machines for the March 2005 domestic market 7,000 -2,183 6,000 Cost Down Other Operating -1,416 5,00
Slide 8: Factors of variance from the Initial plan
Year Ended March 2006 Factors of variance from the Initial plan Initial Initial AActual ctual Variance Variance Plan Plan Initial Plans Money-handling Money-handling 2 4 ,6 0 0 1 8 ,3 4 0 -6 ,2 6 0 machines 2 4 ,6 0 0 1 8 ,3 4 0 -6 ,2 6 0 machines Expansion and Launch of: Cas h Reg is ter 1 ,2 0 0 5
Slide 9: Business Results Forecast
Forecast for the Year Ending March 2007 Business Results ( In millions of yen) Forecast March 2007 Increased/ March 2006 (Forecast) Decreased Net Sales 38,800 32,594 6,206 19.0 Operating 6,700 4,824 1,876 38.9 Income Ordinary 6,700 5,023 1,677 33.4 Income Net Income 4,200 2,969 1,231 41.5 Highlights
Slide 10: Business Expansion
Forecast for the Year Ending March 2007 Business Expansion North America Gaming: Expansion of component business Applied to table game (automation & labor savings by equipping with bill validator unit) Sales expansion and full support system of component devices, such as printers and monitors Commer
Slide 11: Sales by Business Segment
Forecast for the Year Ending March 2007 Sales by Business Segment ( In millions of yen) M arch 2007 Incre as e d/ M arch 2006 (Fore cas t) De cre as e d Money-handling 22,700 18,340 4,360 23.8 machines Cas h Regis ter 800 525 275 52.4 Equipment for the amus ement 14,000 12,539 1,461 11.7 indus try O
Slide 12: Sales by Geographical Segment
Forecast for the Year Ending March 2007 Sales by Geographical Segment ( In millions of yen) M arc h 2 0 0 7 Inc r e as e d/ M arc h 2 0 0 6 (F o re c as t) De c r e as e d J apan 3 3 ,5 0 0 2 8 ,0 7 8 5 ,4 2 2 1 9 .3 N o rth 1 1 ,9 0 0 1 0 ,1 5 6 1 ,7 4 4 1 7 .2 A m e ric a A s ia 7 ,4 0 0 6 ,0 3 4
Slide 13: Operating Income by Geographical Segment
Forecast for the Year Ending March 2007 Operating Income by Geographical Segment ( In millions of yen) M arch 2007 Increas ed/ M arch 2006 (Fore cas t) Decreas ed Japan 4,050 2,711 1,339 49.4 North 1,000 796 204 25.6 Ame rica As ia 300 246 54 22.0 Europe 1,350 1,176 174 14.8 Elimination - -107 107 -
Slide 14: Transition of foreign exchange
Transition of foreign exchange 140 135 131.95 137.31 130 134.41 135.00 124.83 131.65 125 120 116.51 115.72 115 118.26 110.94 110 108.07 105 110.00 100 March 2002 March 2003 March 2004 March 2005 March 2006 March 2007 (Forecast) Effect on Operating Income Per Yen (In millions of yen) US US$$ 33 33 47
Slide 15: Mid-Term Business Plan
Mid-Term Business Plan Enhancement of Shareholders’ Shareholders’ Common Interest Reaching for a New Stage Building solid relationships with of Growth all stakeholders Introduction of the policy toward a Large-Scale Purchase of JCM Seek for the highest business Shares performance to update the recor
Slide 16: Transition of Return of Profits
Transition of Return of Profits Basic Policy on Return of Profits Encouraging long- long-term holding of shares (Non-consolidated Commemorative dividend per share Common dividend per share Dividend ratio Dividend Ratio Dividend per share (%) (Yen) 43.7 38.2 35.8 36 36 Yen Yen(original (originalforec
Slide 17: Reform of Product Supply System
Reform of Product Supply System Global Network System Shortening Production Leadtime Reduction of Inventories Japan Sourcing of key parts Sales Basis in US & Europe Final assembly and Production Basis inspection according to in Asia individual customer specifications Sourcing of general parts and as
Slide 18: Reinforcement of Production System: Overview of Nagahama Plant
Reinforcement of Production System Overview of Nagahama Plant Efficiency of product distribution system in the domestic Increase of productivity Concentration of logistic base Location : Nagahama City, Shiga prefecture Increase of productivity up to twice as large Total floor area : 14,760 Productio
Slide 19: Enforcement of Sales Structure: Overview of Macau Branch
Enforcement of Sales Structure Overview of Macau Branch Increase of Corporate reputation Casino Hall Name of Branch : JCM GOLD(H.K.)LTD,MACAU BRANCH High Quality Active Description of Business : Sales and maintenance service of money- Customer Service Sales Development handling machines, such as bil
Slide 20: Business Alliance with Abilit Corporation
Business Alliance with Abilit Corporation Jointly Developed Product with Abilit Corporation Pachisuro Pachisuro Pachinko Pachinko Machines Machines Machines Machines Compatibility of IC-Sticks and member cards resulting from business alliance with Abilit Corporation Pachinko-Card Unit : CROZ Series
Slide 21: New Product Lineup: SR-7000
New Product Lineup SR-7000 Automatic Token Supply Systems Corresponding to opening For Equipment for the amusement industry a new chain of major pachinko halls SR-7000 Reasonable Price for medium to small- small- scale pachinko halls Features Supply Supplytokens tokensatattwice twicethe thespeed spe
Slide 22: New Product Lineup: PUB-7
New Product Lineup PUB-7 Market Gaming Asia Vending Machines Europe Exchange Machines PUB-7 Bill Vaidator Unit Money-Handlig Machines Features Low Lowcost cost Easy Easyto tomount mount Improved Improvedsecurity security&&bill billacceptance acceptancerate rateby byapplying applying new system new s
Slide 23: Transition of Capital Investment and Depreciation
Transition of Capital Investment and Depreciation Capital Investment North America Global System Nagahama Others 2,500 ( In millions of yen) 2,018 2,000 1,581 1,500 1,000 770 777 1,017 619 500 275 236 641 289 0 March 2002 March 2003 March 2004 March 2005 March 2006 March 2007 (Forecast) Depreciation
Slide 24: Cash Flow
Cash Flow Transfer Price Taxation:-1,445 million yen Income taxes paid: -3,693 million yen Cash dividends paid 14,000 ( In millions of yen) -1,477 million yen CF from CF from 13,000 operating activities investing activities Effect of exchange rate 12,000 2,369 2,616 changes on cash and cash 11,000 M
Slide 25: Management Index
Management Index Shareholders’ Shareholders’ equity per share Shareholders' Shareholders' equity per share Shareholders' equtity equity Retroactive value ratio ( ) per share (Yen) Sahreholders' equity ratio 1,600 78.7 80.6 70.8 76.1 80 1,400 66.6 70.9 1,158.62 1,200 1,067.37 1,080.26 1,030.95 60 1,0
Slide 26: Management Index
Management Index Net Income per Share Net income per share Retroactive value ROE Net income per share ROE (Yen) (%) 300 50 250 224.52 40 200 160.78 171.14 166.42 141.97 30 21.2 21.8 150 16.9 11.3 16.3 98.42 20 100 136.05 14.5 80.53 94.22 50 10 0 0 March 2002 March 2003 March 2004 March 2005 March 20
Slide 27: Contact
Contact PR/IR section Corporate Planning Dept. TEL +81-6-6703-8400 May 25, 2006 Tokyo May 30, 2006 Osaka The projected results included in this presentation material and any other information regarding projections and strategies are based on the current available information that can be obtained rea
Slide 28: Supplementary material: Consolidated business results
JAPAN CASH MACHINE CO., LTD. Supplementary material for the presenetation Cnosolidated business results for the year ended March 31, 2006 and forecasted results for the year endigng March 31, 2007 March 2007 March 2006 March 2005 March 2004 March 2003 March 2002 Forecast Business Results Net Sales (