DAYTONA CORPORATION Q2 FY2025 earnings call

• Overall Interim Financial Results
  • Overall total revenue increased 7.6% year-over-year, and overall operating income increased 10.6% year-over-year, with all financial metrics exceeding prior year levels
  • The 34% revenue growth at Asia locations was the primary driver of overall company growth
• Quarterly Performance Breakdown
  • Q1: Inventory adjustments in the previous year's domestic wholesale distribution returned to normal
  • Q2: Growth was driven by promising new products including intercoms
  • Asia locations maintained strong performance across the full half-year, supported by sales channel expansion and new product introductions
• Strategic Regional Priorities
  • Continued investment in strengthening Indonesia operations and building new sales channels in the Philippines
  • Focus on improving local brand awareness, expanding sales networks, and launching new products across Asian markets
• Retail Strategic Focus
  • Responding to declining foot traffic by doubling down on value-added services such as vehicle inspections and repairs that can only be offered through physical stores
• Capital Return Strategy
  • Dividend decisions are made based on consolidated performance, financial position, planned business investments, and expected investment returns

1. Domestic Wholesale Business: Revenue grew 6% year-over-year, with growth across riding gear, battery and other repair/maintenance supplies, outdoor goods, and generators. No absolute monetary values were provided in the transcript. 2. Asia Wholesale Business: Revenue grew 34% year-over-year, driven by sales channel expansion and new product launches. New products accounted for over 15% of total revenue for this segment. 3. Retail Business: Experienced a decline in foot traffic due to changing consumer behavior, but increased demand for PIT services drove a 23% year-over-year increase in profit. 4. Other Business: Stable performance from the solar power generation business and improved profitability from the reuse sales business drove a 7% year-over-year increase in profit.

• Full-year 2025 December fiscal year guidance is maintained unchanged from prior projections
• Domestic wholesale business has delivered year-over-year revenue and profit growth through the first half, and is currently tracking slightly above original forecasts
• Asia wholesale business is continuing to outperform original growth projections, and management expects further expansion driven by growing local brand awareness, expanded sales channels, and new product launches
• Due to a fiscal year change from December to September for its Indonesian subsidiary, the subsidiary will only report 9 months of results (through September) in the current full fiscal year
• Management maintains a planned 6 yen increase in interim dividend to 135 yen year-over-year

• Foreign exchange rate fluctuations create uncertainty for future performance
• US tariff policy creates downside risk to business results
• Unstable global geopolitical conditions create unresolvable forward-looking uncertainty
• Uncertain shifts in consumer spending behavior could impact demand
• Unfavorable weather conditions could negatively affect operations and demand
• Management will update and revise official guidance if material changes to market conditions are expected to have a large impact on performance

No question and answer section was included in the provided transcript.