Slide 1: Presentation on Business Results of FY 3/2025
Presentation on Business Results of FY 3/2025 (April 1, 2024 to March 31, 2025) SANKYO CO., LTD. Prime Market of the TSE #6417 May 12, 2025
Slide 2: Contents
CONTENTS SECTION Overview of Financial 01 Results SECTION Overview of 02 Overview of Business Financial Results SECTION Progress of the Medium- 03 Term Management Plan (from FY3/2025 to FY3/2027) SECTION 04 FY 3/2026 Forecast SECTION 05 Appendix 2 © SANKYO CO., LTD.
Slide 3: Overview of Financial Results: Consolidated Financial Results
Overview of Financial Results Consolidated Financial Results Achieved year-on-year increase in profit (record-high profit) ≪Results of Operations by Segment≫ due to significant growth of the high-margin pachislot machines business. Pachinko Machines Business Became the first company in the industry
Slide 4: Summary of Financial Results by Segment
Overview of Financial Results Summary of Financial Results by Segment ≪Pachinko Machines Business≫ ≪Pachislot Machines Business≫ FY3/2025 Financial Results FY3/2025 Financial Results Net Sales Number of New Titles Net Sales Number of New Titles 107.7 billion yen Eight 63.4 billion yen Six （YoY -26.7
Slide 5: Summary of Financial Results
Overview of Financial Results Summary of Financial Results Million yen FY 3/2024 FY 3/2025 YoY Net Sales 199,099 191,821 -7,278 -3.7% Pachinko Machines Business 147,042 107,725 -39,317 -26.7% Pachislot Machines Business 32,143 63,462 +31,319 +97.4% Cost of Sales 88,420 79,492 -8,928 -10.1% Gross Pro
Slide 6: Factors of Change in Consolidated Net Sales
Overview of Financial Results Factors of Change in Consolidated Net Sales Pachinko Pachislot Ball Bearing Other Machines Machines Supply Business Business Business Business Million yen FY 3/2024 FY 3/2025 YoY +664 +56 199,099 -39,317 191,821 +31,319 Net Sales 199,099 191,821 -7,278 -3.7% Pachinko Ma
Slide 7: Factors of Change in Consolidated Operating Income / Costs and Expenses
Overview of Financial Results Factors of Change in Consolidated Operating Income／Costs and Expenses Sales R&D Salaries & Pachinko Pachislot Ball Bearing Advertising commission expenses Wages Other factors Machines Machines Supply expenses decreases increases increases Business Business Business incr
Slide 8: Summary of Balance Sheet
Overview of Financial Results Summary of Balance Sheet Million yen As of 31-Mar-24 As of 31-Mar-25 YoY Main Factors of Change Total current assets 251,465 294,541 +43,076 Quick assets 228,789 262,442 +33,653 Total fixed assets 40,654 42,167 +1,513 Investment securities 6,601 5,349 -1,252 Sales of a
Slide 9: Contents
CONTENTS SECTION Overview of Financial 01 Results SECTION 02 Overview of Business Overview of SECTION Progress of the Medium- Business 03 Term Management Plan (from FY3/2025 to FY3/2027) SECTION 04 FY 3/2026 Forecast SECTION 05 Appendix 9 © SANKYO CO., LTD.
Slide 10: Pachinko Machines Business
Overview of Business Pachinko Machines Business ≪Factors of Change in Net sales ≫ （Million yen） ≪Data≫ FY 3/2024 FY 3/2024 FY 3/2025 YoY 147,042 Million yen (Apr-Mar) Net Sales 147,042 107,725 -39,317 Sales volume of SANKYO-brand and JB-brand pachinko machines increases. +6,600 Operating Income 61,1
Slide 11: Pachinko Machines Business Lineup
Overview of Business Pachinko Machines Business≪ lineup ≫ New Title Eight Six Two Reused Models etc. Seven P/e Fever MOBILE SUIT GUNDAM UNICORN P/e Fever Macross Frontier 5 P/e Fever Symphogear 4 Sairai -Shiroki Ikkakujū to Kuroki Shishi- Five Two Fever SANGOKU SENKI 7500 Fever ARIFURETA SYOKUGYOU D
Slide 12: Pachislot Machines Business
Overview of Business Pachislot Machines Business ≪Factors of Change in Net sales≫ ≪Data≫ （Million yen） Million yen FY 3/2024 FY 3/2025 YoY FY 3/2024 32,143 (Apr-Mar) Net Sales 32,143 63,462 +31,319 Sales volume of SANKYO-brand Operating Income 15,289 35,686 +20,397 pachislot machines increases. +30,
Slide 13: Pachislot Machines Business Lineup
Overview of Business Pachislot Machines Business≪ lineup ≫ New Title Six Five One L Pachislot How Heavy Are the L Pachislot ENN ENN NO SHOUBOUTAI Dumbbells You Lift? L Pachislot Evangelion: 3.0+1.0 （Increased production） L Pachislot ARIFURETA SYOKUGYOU Pachislot Valvrave the Liberator L Pachislot Sy
Slide 14: Pachinko Machines Market Share
Overview of Business Pachinko Machines Market Share≪unit basis≫ 40% 34.1% SANKYO 30% 25.4% 26.4% 20% 15.5% Sanyo 14.5% 12.5% Sammy 10% Newgin Fujishoji 0% 2019 2020 2021 2022 2023 2024 Source: Yano Research Institute 2024：Estimate of SANKYO 14 © SANKYO CO., LTD.
Slide 15: Pachislot Machines Market Share
Overview of Business Pachislot Machines Market Share≪unit basis≫ 30% Sammy SANKYO 20% Universal 19.3% 9.0% 10% 7.4% Heiwa・Olympia 5.1% Daito 1.6% 3.3% 0% 2019 2020 2021 2022 2023 2024 Source: Yano Research Institute ※2024：Estimate of SANKYO 15 © SANKYO CO., LTD.
Slide 16: Contents
CONTENTS SECTION Overview of Financial 01 Results SECTION Progress of the 02 Overview of Business Medium-Term SECTION Progress of the Medium- Management Plan 03 Term Management Plan (from FY3/2025 to FY3/2027) (from FY3/2025 to FY3/2027) SECTION 04 FY 3/2026 Forecast SECTION 05 Appendix 16 © SANKYO
Slide 17: Mid-Term Management Plan SANKYO VISION 25-27
Mid-Term Management Plan Mid-Term Management Plan「SANKYO VISION 25-27 -A portent for sustainable growth-」 (announced on May 9, 2024) Summary Pachinko Machine As a leading company in the pachinko and pachislot industry, we aim for the invigoration Sales Share and development of the industry and conti
Slide 18: Mid-Term Management Plan: Business Strategies
Mid-Term Management Plan Mid-Term Management Plan「SANKYO VISION 25-27 -A portent for sustainable growth-」 (announced on May 9, 2024) Business strategies Pachinko Machines Business Pachislot Machines Business Securing stable revenue as the core businesses Allocating management resources deeming it as
Slide 19: Mid-Term Management Plan: FY 3/2025 Review
Mid-Term Management Plan Mid-Term Management Plan：FY 3/2025 Review Numerical management targets In the first year of the Mid-Term Management Plan, results exceeded the plan mainly due to growth of the pachislot machines business (Numerical target in Mid-Term (Results) Management Plan) (Mi l l i on y
Slide 20: Mid-Term Management Plan: Market Environment and FY 3/2026 Forecast
Mid-Term Management Plan Mid-Term Management Plan：FY 3/2026 Forecast Market environment （Trend in the sales volumes of pachinko and pachislot machines） The market environment is more challenging (Thousand units) than we assumed when formulating the Mid- 2,500 Term Management Plan. ―Clear trend towar
Slide 21: Prospects for Numerical Targets
Mid-Term Management Plan Mid-Term Management Plan：FY 3/2026 Forecast Prospects for Numerical Targets Mid-Term Management Plan figures for FY 3/2026 revised, but Mid-Term Management Plan figures for FY 3/2027 unchanged （Mid-Term Management （Mid-Term Management (Plan) Plan figures） Plan figures） （Mill
Slide 22: Pachinko Machines Market Share Forecast
Mid-Term Management Plan Mid-Term Management Plan：Pachinko Machines Market Share Forecast Trend in share (Pachinko machines market) Aim for the top market share for 40% ◆ In FY2024, as in FY2023, we achieved the top five consecutive years market share by a wide margin over second 35% place and below
Slide 23: Pachislot Machines Market Share Forecast
Mid-Term Management Plan Mid-Term Management Plan：Pachislot Machines Market Share Forecast Trend in share (Pachislot machines market) 30% ◆ In FY2024, production of additional units of models with high machine utilization and sales of new models were brisk. As a result, Aim to secure a position in 2
Slide 24: Mid-Term Management Plan: Initiatives
Mid-Term Management Plan Mid-Term Management Plan：Initiatives Outcome of Initiatives Growth of the pachislot machines business has contributed significantly to the Company’s “growth” and business “stability.” In FY 3/2025, sales volume in the pachislot machines business grew 3.6 times and net sales
Slide 25: Status of New Business Initiatives
Mid-Term Management Plan Mid-Term Management Plan：Initiatives Status of New Business Initiatives Focusing on planting the seeds of new businesses that aim to create synergy with the pachislot and pachinko machines businesses Production and sale of manga Production and sale of manga through, for exam
Slide 26: About Return of Profits to Shareholders
Mid-Term Management Plan About return of profits to shareholders With the performance-linked dividends targeted at the consolidated payout ratio of 40% as our basic policy, we manage balance sheets appropriately in view of making additional shareholder returns through agile share buyback. (Yen) Annu
Slide 27: Announcement of Share Repurchase
Mid-Term Management Plan About The Return of Profits to Shareholders Announcement of Share Repurchase（announced on May 12, 2025） Reason for Repurchase of Own Shares The Company intends to repurchase its own shares in order to enhance capital efficiency, implement a flexible capital policy in respons
Slide 28: Management Focused on Cost of Capital and Share Price
Mid-Term Management Plan Management Focused on Cost of Capital and Share Price Current Recognition PBR（times) ROE（%） PER（times） Exceeded 1x in recent years, driven by Higher than the cost of equity calculated Despite the improvement in performance improvements in performance and using the CAPM and c
Slide 29: Future Initiatives to Improve ROE and PER
Mid-Term Management Plan Management Focused on Cost of Capital and Share Price Future Initiatives Improve ROE and PER through various initiatives to increase PBR over the medium to long term Improve ROE Improve PER Increase net sales and profit margin Reduce cost of equity Appropriate return of prof
Slide 30: Contents
CONTENTS SECTION Overview of Financial 01 Results SECTION 02 Overview of Business FY 3/2026 SECTION Progress of the Medium- Forecast 03 Term Management Plan (from FY3/2025 to FY3/2027) SECTION 04 FY 3/2026 Forecast SECTION 05 Appendix 30 © SANKYO CO., LTD.
Slide 31: Pachinko Market
FY 3/2026 Forecast Pachinko Market ≪Sales Volume≫ Total number （Thousand units） of units sold Sales volume forecast FY3/2025 1,500 （April 1, 2024 to March 31, 2025） FY3/2026 850 (April 1, 2025 to March 31, 2026) thousand units 850 1,185 1,200 YoY Approx.+2% thousand 1,055 units （10 titles sold 20,00
Slide 32: Pachislot Market
FY 3/2026 Forecast Pachislot Market ≪Sales Volume≫ Total number （Thousand units） of units sold Sales volume forecast FY3/2025 1,000 （April 1, 2024 to March 31, 2025） FY3/2026 680 (April 1, 2025 to March 31, 2026) thousand units 800 673 698 781 680 700 YoY Approx.-13% （7 titles sold 20,000 units or m
Slide 33: Financial Forecasts
FY 3/2026 Forecast Financial Forecasts While net sales of the pachinko/pachislot machines businesses are ≪Results of Operations by Segment≫ expected to flatline year on year, total net sales are expected to decline due to subdued demand in the ball bearing supply business. Pachinko Machines Business
Slide 34: Summary of Financial Forecasts
FY 3/2026 Forecast Summary of Financial Forecasts FY 3/2026 Million yen FY 3/2025 Forecast YoY Net Sales 191,821 185,000 -6,821 -3.6% Pachinko Machines Business 107,725 114,200 +6,475 +6.0% Pachislot Machines Business 63,462 60,100 -3,362 -5.3% Cost of Sales 79,492 80,000 +508 +0.6% Gross Profit 112
Slide 35: Factors of Change in Consolidated Net Sales
FY 3/2026 Forecast Factors of Change in Consolidated Net Sales Pachinko Pachislot Machines Machines Ball Bearing Business Business Supply FY 3/2026 Business -3,362 Other FY 3/2025 Forecast YoY +6,475 Business Million yen -9,861 191,821 -72 Net Sales 191,821 185,000 -6,821 -3.6% 185,000 Pachinko Mach
Slide 36: Factors of Change in Consolidated Operating Income / Costs and Expenses
FY 3/2026 Forecast Factors of Change in Consolidated Operating Income／Costs and Expenses Pachinko Pachislot Machines Machines Ball Bearing Advertising Sales Business Business Supply expenses commission R&D Salaries & -1,111 Other FY 3/2026 Business increases increases expenses Wages -5,716 factors 7
Slide 37: Pachinko Machines Business
FY 3/2026 Forecast Pachinko Machines Business ≪Factors of Change in Net sales≫ （Million yen） ≪Data≫ FY 3/2026 FY 3/2025 107,725 FY 3/2025 Forecast YoY (Apr-Mar) Million yen Net Sales 107,725 114,200 +6,475 Sales volume of SANKYO-brand and JB-brand pachinko machines decreases. -5,375 Operating Income
Slide 38: Pachinko Machines Business Lineup
FY 3/2026 Forecast Pachinko Machines Business≪ lineup ≫ New Title （Plan） Nine Seven two （Increased production） P/eフィーバーうたわれるもの P/e Fever Utawarerumono e Fever Karakuri Sākasu 2 Maō ver. e Fever ENN ENN NO SHOUBOUTAI 2 From 2Q onward e Tokyo Ghoul Fever MOBILE SUIT GUNDAM UNICORN x4 Sairai 129ver. e
Slide 39: Pachislot Machines Business
FY 3/2026 Forecast Pachislot Machines Business ≪Factors of Change in Net sales≫ （Million yen） ≪Data≫ FY 3/2026 FY 3/2025 63,462 Million yen FY 3/2025 Forecast YoY (Apr-Mar) Net Sales 63,462 60,100 -3,362 Sales volume of SANKYO-brand -14,583 Operating Income 35,686 29,200 -6,486 pachislot machines de
Slide 40: Pachislot Machines Business Lineup
FY 3/2026 Forecast Pachislot Machines Business≪ lineup ≫ New Title （Plan） Seven Four Three LB Pachislot Evangelion Ｌ Pachislot MOBILE SUIT GUNDAM SEED -The Door of Promises- From 2Q onward （ Increased production ） L Pachislot Kaguya-sama ha Kokurasetai x4 （ Increased production ） Pachislot Karakuri
Slide 41: Contents
CONTENTS SECTION Overview of Financial 01 Results SECTION 02 Overview of Business Appendix SECTION Progress of the Medium- 03 Term Management Plan (from FY3/2025 to FY3/2027) SECTION 04 FY 3/2026 Forecast SECTION 05 Appendix 41 © SANKYO CO., LTD.
Slide 42: Business Results for the Full Year of FY 3/2025
Appendix Business Results for the Full Year of FY 3/2025 FY 3/2024 FY 3/2025 FY 3/2026 FY 3/2024 FY 3/2025 Consolidated:milion yen Full year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 199,099 191,821 -7,278 185,000 50,777 65,413 54,398 28,511 42,210 48,519 62,971 38,121 Pachinko 147,04
Slide 43: Margin / Expenses etc.
Appendix Margin / Expenses etc. GP Margin/OP Margin FY 3/2024 FY 3/2025 FY 3/2026 FY 3/2024 FY 3/2025 Consolidated Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GP Margin 55.6% 58.6% +3.0pt 56.8% 55.8% 55.3% 55.1% 56.8% 59.4% 60.0% 58.4% 55.9% OP Margin 36.4% 38.4% +2.0pt 34.1% 37.8% 40.2
Slide 44: Pachinko Machines Business
Appendix Pachinko Machines Business FY 3/2024 FY 3/2025 FY 3/2026 FY 3/2024 FY 3/2025 Consolidated:milion yen Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 147,042 107,725 -39,317 114,200 34,887 47,220 47,733 17,202 17,866 20,115 42,231 27,513 Operating Income 61,165 43,815 -17,
Slide 45: Pachislot Machines Business
Appendix Pachislot Machines Business FY 3/2024 FY 3/2025 FY 3/2026 FY 3/2024 FY 3/2025 Consolidated:milion yen Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 32,143 63,462 +31,319 60,100 9,056 12,630 1,490 8,967 16,610 22,590 16,075 8,187 Operating Income 15,289 35,686 +20,397 29
Slide 46: Financial Indicates
Appendix 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 3/2025 Net Sales 86,220 88,558 78,416 58,129 84,857 157,296 199,099 191,821 Operating Income 10,181 21,286 12,551 6,587 21,357 58,532 72,495 73,605 Recurring Income 11,319 22,300 13,47
Slide 47: Pachinko/Pachislot Machine Market
Appendix Pachinko/Pachislot Machine Market Market size Situation of parlors that are members of Zennichiyuren in the last year 2,500 3,500 2,338 12,000 2,205 2,077 3,000 1,969 2,000 10,000 2,500 1,475 1,500 8,000 1,358 1,347 1,355 2,000 1,862 1,856 1,842 1,832 1,824 1,820 1,803 1,808 1,807 1,799 1,7
Slide 48: Others
Appendix Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2020 2021 2022 2023 2024 2025J-M 2019 97 Applicant 912 990 910 912 910 219 2020 63 Pass 295 313 230 186 223 60 Fail 499 598 669 666 619 138 2021 87 SANKYO Group (Number of Pa s s ) 2022 76 S
Slide 49: Contact Us
Contact Us Investor Relations Office Corporate Planning Division 【Disclaimer on Forward-Looking Statements】 The purpose of this document is to provide information on the material, ir-desk@sankyo-fever.co.jp and is not intended as a solicitation for investment or any similar action. Please note that