Dynam Japan : VOLUNTARY ANNOUNCEMENT UNAUDITED QUARTERLY REVENUE INFORMATION FOR THE NINE MONTHS ENDED 30 DECEMBER 2017 （PDF 584KB）

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ࣺό䔼ٟμΠφϜδϟύϯϗʔϧσΟϯάε

DYNAM JAPAN HOLDINGS Co., Ltd.*

(incorporated in Japan with limited liability)

(Stock Code: 06889)

VOLUNTARY ANNOUNCEMENT UNAUDITED REVENUE INFORMATION

FOR THE NINE MONTHS ENDED 31 DECEMBER 2017

This announcement is made by ࣺό䔼ٟμΠφϜδϟύϯϗʔϧσΟϯάε (DYNAM JAPAN HOLDINGS Co., Ltd.*) (the "Company" and together with its subsidiaries, the "Group") on a voluntary basis.

The board of the directors (the "Board") of the Company hereby announces the unaudited revenue information of the Group for the nine months ended 31 December 2017.

*for identification purpose only

2016
(in ¥ millions)	(in ¥ millions)
Gross pay-ins(Note 1)
- High playing cost halls	344,087	376,268
- Low playing cost halls	239,738	239,660
Total gross pay-ins	583,826	615,928
Gross payouts(Note 2)
- High playing cost halls	285,133	315,101
- Low playing cost halls	183,576	182,661
Total gross payouts	468,709	497,763
Revenue(Note 3)
- High playing cost halls	58,954	61,166
- Low playing cost halls	56,163	56,999
Total revenue	115,117	118,165
(Referential information)
Hall operating expenses	104,730	109,104
- Pachinko and pachislot
machine expenses	26,452	27,757
As at	As at
31 December	31 December
Number of halls	2017	2016
- High playing cost halls	180	181
- Low playing cost halls	271	263
Total number of halls	451	444

Nine months ended	Approximate	Approximate
31 December	comparative	comparative
2017	change	change
(%)	(in ¥ millions)	(in ¥ millions)	(%)
-8.6%	234,204	254,500	-8.0%
0.0%	162,923	161,746	0.7%
-5.2%	397,127	416,246	-4.6%
-9.5%	194,714	213,239	-8.7%
0.5%	125,202	123,200	1.6%
-5.8%	319,916	336,439	-4.9%
-3.6%	39,490	41,262	-4.3%
-1.5%	37,721	38,547	-2.1%
-2.6%	77,211	79,809	-3.3%
-4.0%	69,706	72,474	-3.8%
-4.7%	18,083	17,074	5.9%
As at	As at
30 September	30 September
2017	2016
-1	180	181	-1
8	270	263	7
7	450	444	6

(Referential information) Six months ended 30 September 2017 2016

*Numbers may not add up due to rounding.

Note 1: Gross pay-ins represent the amounts received from pachinko balls and pachislot tokens rented to customers less unutilised balls and tokens.

Note 2: Gross payouts represent the aggregate costs of G-prizes and general prizes exchanged at pachinko halls by customers.

Note 3: Revenue represents gross pay-ins less gross payouts.

During the nine months period, the severe business environment has been continued in our pachinko hall industry.

Under such business environment, the Group has made efforts to grow and develop with local communities and to improve the machine utilization through various kinds of business measures under the important policies of setting up our halls from the customers' viewpoint and operating each of our halls with a focus on customers' needs.

The Group is aiming at making Pachinko game an accessible amusement everybody can enjoy and is working to expand the market shares in the industry by opening low playing cost halls. The Group opened 6 new low playing cost halls during the period from 1 April 2017 to 31 December 2017. As a result, the number of halls in the Group reached 451, consisting of 180 high playing cost halls and 271 low playing cost halls, as at 31 December 2017.

Also, the entire pachinko hall operators has improved playing environment in halls by gradual reduction of a ratio of number of high playing cost machines.

Through the efforts and initiatives mentioned above, the overall results were that our total gross pay-ins for the nine months ended 31 December 2017 was ¥583,826 million, recording a decrease of approximately 5.2% as compared to the corresponding nine months period of previous fiscal year. Also, our total revenue decreased by approximately 2.6% to ¥115,117 million as compared to the corresponding nine months period of previous fiscal year.

The Company is continuously committed to reducing hall operating expenses especially focusing on management of machine expenses thereby securing profitability.

CAUTION STATEMENT

Investors are reminded that the above revenue information and operational statistics for the nine months ended 31 December 2017 and the comparative figures for the nine months ended 31 December 2016 are based on the Group's internal records and management accounts and have not been reviewed or audited by auditors. Investors are cautioned that the revenue trend shown above may not be representative of the trend of profit after tax of the Group and undue reliance on or use of such information may cause investment risks. Investors are advised to exercise caution when dealing in the shares of the Company from time to time.

This announcement was prepared in English. In case of any inconsistency between the English version and the Chinese version, the English version shall prevail.

By order of the Board ࣺό䔼ٟμΠφϜδϟύϯϗʔϧσΟϯάε

(DYNAM JAPAN HOLDINGS Co., Ltd.*)

Kohei SATO

Chairman of the Board

Tokyo, Japan, 26 January 2018

As of the date of this announcement, the executive director of the Company is Mr. Kohei SATO, the non-executive directors of the Company are Mr. Yoji SATO, Mr. Tatsuji FUJIMOTO and Mr. Noriaki USHIJIMA, and the independent non-executive directors of the Company are Mr. Ichiro TAKANO, Mr. Mitsutoshi KATO, Mr. Thomas Chun Kee YIP, Mr. Kei MURAYAMA and Mr. Kiyohito KANDA.

*

For identification purposes only