DAYTONA CORPORATION Q4 FY2024 earnings call

• Domestic Wholesale Business Performance
  • Post-pandemic expansion of consumer discretionary options led to demand decline and ongoing industry inventory adjustment, resulting in lower revenue and profit in Q1, with gradual recovery starting from Q2
  • New product launches (including helmets, dashcams, generators, outdoor goods) and strong growth in maintenance products (led by batteries) drove a return to revenue and profit growth in the second half
  • High-priced traditional products (intercoms, dashcams, GIVI hard cases) saw sales declines due to high inflation, but growing demand for repair/maintenance products offset this decline
• Asia Wholesale Business Performance
  • Further expansion of the sales network at the Indonesia base improved brand support, and new product launches drove full-year continuous growth, resulting in full-year revenue and profit growth
  • The Indonesia business hit a record monthly sales high in December 2024
• Retail Business Performance
  • Post-pandemic consumer behavior shifts reduced store footfall and purchase volume, but the segment strengthened response to growing maintenance demand from increased motorcycle ownership, delivering profit growth despite a slight revenue decline
• Other Business Performance
  • Solar power sales fell slightly due to lower than average sunshine duration; the reuse business improved profitability via procurement and sales channel adjustments, delivering profit growth despite lower revenue
• Strategic Expansion Update
  • The Philippines local subsidiary has completed sales channel preparation by rolling out the Indonesia business model, and is ready to launch sales of Daytona-branded products for local vehicles

1. Domestic Wholesale Business: Revenue of 10.4 billion yen, a slight year-over-year increase; segment profit of 1.08 billion yen, down 14.3% YoY. In Q4, new product revenue hit 370 million yen, accounting for 15% of the segment's Q4 revenue. 2. Asia Wholesale Business: Revenue of 1.69 billion yen, up 66% YoY; segment profit of 410 million yen, up 65% YoY. The Indonesia subsidiary recorded its highest ever single-month revenue in December, and full-year segment revenue was 3.9 billion yen (up 11% YoY) with profit of 410 million yen (up 42% YoY). 3. Retail Business: Revenue of 2.27 billion yen, down 1.6% YoY; segment profit of 120 million yen, up 15.6% YoY. 4. Other Business: Revenue of 310 million yen, down 19.5% YoY; segment profit of 54 million yen, up 62.2% YoY. Total consolidated revenue for FY2024 was 14.5 billion yen, up 4% YoY; consolidated operating profit was 1.71 billion yen, flat YoY; consolidated ordinary profit was 1.74 billion yen, down 0.3% YoY.

• FY2025 (ending December 2025) consolidated guidance: Revenue of 14.8 billion yen, operating profit of 1.61 billion yen. The lower than trend revenue reflects the 9-month operating period for the Indonesia subsidiary due to a fiscal year change from December to September
• Domestic Wholesale Business: No sharp demand decline like FY2024 Q1 is expected; growth will be driven by aligning new product launches and services to the shift toward lower-priced products and longer motorcycle ownership trends. Targets number one support rating in 12 core product categories, with expansion of riding gear, generators and outdoor product lines
• Asia Wholesale Business: Continued growth is expected on the back of growing vehicle sales in Indonesia. Plans include expanding dealer count in Indonesia, launching new products, strengthening logistics capabilities, and scaling commercial operations in the Philippines
• Retail Business: Will strengthen capabilities to meet growing maintenance demand from rising motorcycle ownership, and develop hub locations to attract riders (such as the rental garage at Raikoland Kashiwa Store)
• Mid-term (through 2027) guidance: Targets 17.1 billion yen in consolidated revenue and 2.06 billion yen in operating profit. Growth will be centered on the Asia Wholesale Business, with further expansion in Indonesia, network building in the Philippines, and launch of export sales to Vietnam. Domestic Wholesale targets 20% industry share (up 6.5% from current levels) and number one support in 12 core categories. New businesses will target 12% internal revenue share by 2027, with a long-term target of 25%
• Dividend guidance: Forecasts a full-year dividend of 135 yen per share, up 6 yen from the prior year

• Weakening domestic demand for high-priced traditional motorcycle parts and accessories due to ongoing high consumer price inflation
• Higher procurement costs for overseas-sourced products due to yen depreciation, which suppresses segment profit
• Post-pandemic shift in consumer spending toward travel and dining out reduces demand for motorcycle-related products and retail footfall
• Lower-than-expected sunshine reduces revenue from the solar power segment of Other Business

No Question and Answer section was included in the provided transcript.