Sankyo Co., Ltd. · TSE:6417
Sankyo — Q1 FY3/2025 Earnings Presentation
28 slides from Sankyo's earnings presentation, Aug 7, 2024
Slide 1: Presentation on Business Results for the First Quarter of FY 3/2025
Presentation on Business Results for the First Quarter of FY 3/2025 (April 1, 2024 to June 30, 2024) August 7, 2024 SANKYO CO., LTD. Prime Market of the TSE #6417
Slide 2: Contents: Overview of Financial Results
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, P16 And Initiatives of SANKYO Appendix P21 © 2024 SANKYO CO., LTD. 2
Slide 3: Financial Highlights
Financial Highlights Despite decreases in net sales and profits, both business performance and sales volumes of pachinko/pachislot machines achieved good progress in line with the plan. Efforts to increase the Groupʼs share of pachislot machine sales got off to a flying start, with the resale of
Slide 4: Summary of Financial Results
Summary of Financial Results Although the pachinko market has been somewhat sluggish, overshadowed by the Pachinko pachislot market, Lucky Trigger machines have been attracting attention. Pachislot In the pachislot market, the machine utilization and the sales volume remained Market stable, cent
Slide 5: Summary of Financial Results
Summary of Financial Results million yen FY 3/2024 1Q FY 3/2025 1Q YoY FY 3/2025 Forecast Net Sales 50,777 42,210 -8,567 -16.9% 180,000 Pachinko Machines Business 34,887 17,866 -17,021 -48.8% 117,800 Pachislot Machines Business 9,056 16,610 +7,554 +83.4% 51,600 Cost of Sales 22,450 17,127 -5,323 -23
Slide 6: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Pachinko Machines Business Ball Bearing 50,777 ‐17,021 Supply Other Pachislot Business Business Machines Business +858 +43 +7,554 42,210 FY3/2024 1Q FY3/2025 1Q -8,567 million yen（-16.9%） © 2024 SANKYO CO., LTD. 6
Slide 7: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen Pachinko Machines Sales Business Ball Advertising commission R&D ‐8,613 Pachislot Bearing expenses decreases expenses Other Machines Supply decreases +1,388 increases factors 19,188 Business Business +5,337 +18 +389 ‐284 ‐151 17,273 FY3/
Slide 8: Costs and Expenses
Costs and Expenses million yen FY 3/2024 1Q FY 3/2025 1Q YoY FY 3/2025 Forecast SG & A Expenses 9,137 7,810 -1,327 -14.5% 41,500 Advertising Expenses 1,045 656 -389 -37.2% 2,953 Sales Commission 2,026 638 -1,388 -68.5% 6,193 R&D Expenses 3,505 3,789 +284 +8.1% 20,229 Salaries & Wages 722 734 +12 +1.
Slide 9: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-24 As of 30-Jun-24 YoY Main Factors of Change Total current assets 251,465 250,937 ‐528 Quick assets 228,790 220,098 ‐8,692 Decreases due to payments of dividends Total fixed assets 40,654 40,729 +75 Investment securities 6,601 6,519 ‐82 Total assets
Slide 10: Overview of Business
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, P16 And Initiatives of SANKYO Appendix P21 © 2024 SANKYO CO., LTD. 10
Slide 11: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2024 1Q FY 3/2025 1Q YoY FY 3/2024 1st Quarter (Apr‐Jun) 34,887 Net Sales 34,887 17,866 -17,021 Sales volume of SANKYO-brand Operating Income 14,997 8,118 -6,879 and JB-brand pachinko machines ‐3,842 decrease
Slide 12: Pachinko Machines Business
Pachinko Machines Business ©2009,2011,2021 BIGWEST/MACROSS F PROJECT ©創通・サンライズ ©⻄﨑義展/宇宙戦艦ヤマト2202製作委員会 1Q 2Q 3Q-4Q P/e Fever MOBILE SUIT GUNDAM UNICORN Uchū Senkan Yamato 2202 P/e Fever Macross Frontier 5 Returns -The White Unicorn and the Black Lion- Super Wave xx 44 New Title Fever SANGOKU SENKI 75
Slide 13: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2024 1Q FY 3/2025 1Q YoY FY 3/2024 1st Quarter (Apr‐Jun) 9,056 Net Sales 9,056 16,610 +7,554 Sales volume of SANKYO-brand Operating Income 4,818 9,729 +4,911 +3,906 pachislot machines increases. Percentage 5
Slide 14: Pachislot Machines Business
Pachislot Machines Business ©⼤久保篤／講談社 ©Project シンフォギアGX ©⼤久保篤・講談社／特殊消防隊動画広報課 ©Project シンフォギアAXZ ©⾚坂アカ／集英社・かぐや様は告らせたい製作委員会 1Q 2Q 3Q-4Q L Pachislot ENN ENN NO SHOUBOUTAI L Pachislot Symphogear "Seigi no Uta" x2 x2 New Title x7 (Resale) Pachislot Valvrave the Liberator L Pachislot Kaguya-sama: Love Is
Slide 15: Surroundings of Pachinko and Pachislot Industry, and Initiatives
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, And Initiatives of SANKYO P16 Appendix P21 © 2024 SANKYO CO., LTD. 15
Slide 16: Pachinko Market
Pachinko Market Sales Volume Sales volume forecast FY2025： 800 thousand units Thousand units (April 1, 2024 to March 31, 2025) 1,500 Total number of units sold Approx. 200 thousand units YoY Approx. -16％ （2 titles sold 20,000 units or more. (April to June, 2024) 1,185 (April to June)） 1,200 1,055
Slide 17: Pachislot Market
Pachislot Market Sales Volume Sales volume forecast FY2025： 880 thousand units Thousand units (April 1, 2024 to March 31, 2025) Total number Approx.190 units 1,000 thousand YoY Approx. -5％ of units sold 880 （1 titles sold 20,000 units or more. (April to June, 2024) (April to June)） 790 800 673 698
Slide 18: Initiatives of SANKYO in the Pachinko and Pachislot Machine Markets
Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets Aim to achieve the top share for three consecutive years in the pachinko market. Aim to become one of the companies in the top group in the pachislot market. 1Q From 2Q onward Additional sales of three titles of Smart Pachislo
Slide 19: Launch of the Latest Pachinko Title of Fever MOBILE SUIT GUNDAM UNICORN Series
Launch of the Latest Pachinko Title of “Fever MOBILE SUIT GUNDAM UNICORN“ Series Fever MOBILE SUIT GUNDAM UNICORN Returns -The White Unicorn and the Black Lion- Evolving into a one-of-a-kind model The title follows the gaming nature of the former title, which had long been popular, and has evolved i
Slide 20: Appendix
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, P16 And Initiatives of SANKYO Appendix P21 © 2024 SANKYO CO., LTD. 20
Slide 21: Business Results for the First Quarter of FY 3/2025
Business Results for the First Quarter of FY 3/2025 FY 3/2025 Forecast FY 3/2023 FY 3/2024 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 42,210 -8,567 180,000 27,763 42,200 58,102 29,231 157,296 50,777 65,413 54,398 28,511 199,099 Pachinko 17,866 -17,021 117,800 26
Slide 22: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2025 Forecast FY 3/2023 FY 3/2024 Consolidated Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY GP Margin 59.4% +3.6pt 56.9% 56.0% 59.7% 55.0% 62.4% 57.8% 55.8% 55.3% 55.1% 56.8% 55.6% OP Margin 40.9% +3.1pt 33.9% 34.1% 40.2% 37.2% 35.9% 37.2% 37.8% 40.2
Slide 23: Pachinko Machines Business
Pachinko Machines Business FY 3/2025 Forecast FY 3/2023 FY 3/2024 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 17,866 -17,021 117,800 26,431 36,590 40,549 19,006 122,576 34,887 47,220 47,733 17,202 147,042 Operating Income 8,118 -6,879 40,500 10,963 17,312 16,889
Slide 24: Pachislot Machines Business
Pachislot Machines Business FY 3/2025 Forecast FY 3/2023 FY 3/2024 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 16,610 +7,554 51,600 628 4,123 9,425 8,375 22,551 9,056 12,630 1,490 8,967 32,143 Operating Income 9,729 +4,911 26,300 (289) 1,328 5,299 2,942 9,280 4,8
Slide 25: Financial Indicates
Financial Indicates million yen FY 3/2018 FY 3/2019 FY 3/2020 FY 3/2021 FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025E Net Sales 86,220 88,558 78,416 58,129 84,857 157,296 199,099 180,000 Operating Income 10,181 21,286 12,551 6,587 21,357 58,532 72,495 61,000 Recurring Income 11,319 22,300 13,476 7,488 22
Slide 26: Pachinko/Pachislot Machine Market
Pachinko/Pachislot Machine Market Market size Situation of Parlors that Are Members of Zennichiyuren for recent a year 3,000 3,500 12,000 2,500 2,432 3,000 2,338 2,205 10,000 2,077 2,500 2,000 8,000 1,947 1,931 1,920 1,909 1,572 2,000 1,901 1,897 1,890 1,881 1,868 1,862 1,856 1,842 1,475 1,500 1,358
Slide 27: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2019 2020 2021 2022 2023 2024J‐J 2019 97 Applicant 945 912 990 910 912 454 2020 63 Pass 430 295 313 230 186 109 Fail 560 499 598 669 666 303 2021 87 SANKYO Group (Number of Pa s s ) 2022 76 SANKYO+JB
Slide 28: Contact Us
Contact Us Investor Relations Office 【Notes on forward-looking statements】 The purpose of this document is to provide information on the material, and is not intended as a solicitation for Corporate Planning Division investment or any similar action. Please note that actual investment decisions shou