Slide 1: Presentation on Business Results of FY 3/2023
Presentation on Business Results of FY 3/2023 (April 1, 2022 to March 31, 2023) May 11, 2023 SANKYO CO., LTD. Prime Market of the TSE #6417 1
Slide 2: Contents
Contents Overview of Financial Results P3 Overview of Business P11 FY 3/2024 Forecast P18 Appendix P32 © 2023 SANKYO CO., LTD. 2
Slide 3: Financial Highlights
Financial Highlights Sales volumes of pachinko and pachislot machines increased greatly, resulting in great increases in net sales and profits from the previous fiscal year. Profit margin also increased greatly in line with the increase in net sales. Net Sales 157,296 million yen YoY +85.4 % Con
Slide 4: Summary of Financial Results: Market
Summary of Financial Results Total sales volumes of pachinko and pachislot machines fell short of those for the previous fiscal year as replacement demand to new regulation machines, which occurred Pachinko in the previous fiscal year, dissipated. Pachislot Although machine utilization and parlo
Slide 5: Summary of Financial Results
Summary of Financial Results million yen FY 3/2022 FY 3/2023 YoY Net Sales 84,857 157,296 +72,439 +85.4% Pachinko Machines Business 71,860 122,576 +50,716 +70.6% Pachislot Machines Business 8,891 22,551 +13,660 +153.6% Cost of Sales 37,037 66,380 +29,343 +79.2% Gross Profit 47,819 90,916 +43,097 +90
Slide 6: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Pachislot Machines Pachinko Business Machines +8,098 ‐35 Business Other 157,296 +13,660 Ball Bearing Business Supply +50,716 Business 84,857 FY3/2022 FY3/2023 +72,439 million yen（+85.4%） © 2023 SANKYO CO., LTD. 6
Slide 7: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen The gross profit of the pachislot machine sales The gross profit increases of the pachinko ‐4 ‐1,598 machine sales +8,541 ‐2,313 increases Advertising Sales ‐2,387 expenses commission R&D increases expenses Other factors 58,532 +34,936 i
Slide 8: Costs and Expenses
Costs and Expenses million yen FY 3/2022 FY 3/2023 YoY SG & A Expenses 26,462 32,383 +5,921 +22.4% Advertising Expenses 1,735 1,739 +4 +0.2% Sales Commission 4,497 6,095 +1,598 +35.5% R&D Expenses 11,982 14,295 +2,313 +19.3% Salaries & Wages 2,678 2,988 +310 +11.6% Depreciation & Amortization 2,113
Slide 9: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-22 As of 31-Mar-23 YoY Factors of Change Total current assets 264,859 321,797 +56,938 Ｉｎcreases in notes and accounts receivable‐trade and Quick assets 250,241 295,714 +45,473 marketable securities Total fixed assets 44,353 44,153 ‐200 Investment sec
Slide 10: Contents
Contents Overview of Financial Results P3 Overview of Business P11 FY 3/2024 Forecast P18 Appendix P32 © 2023 SANKYO CO., LTD. 10
Slide 11: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2022 FY 3/2023 YoY FY 3/2022 (Apr‐Mar) 71,860 Net Sales 71,860 122,576 +50,716 Sales volume of SANKYO-brand Operating Income 24,142 54,223 +30,081 and JB-brand pachinko machines +31,086 increases. Percentage
Slide 12: Pachinko Machines Business
Pachinko Machines Business 原作／藤⽥和⽇郎「からくりサーカス」（⼩学館少年サンデーコミックス刊）/ ©カラー TM & © TOHO CO., LTD. ©⼤森藤ノ・SBクリエイティブ/ダンまち2製作委員会 ©藤⽥和⽇郎・⼩学館／ツインエンジン Licensed by Sony Music Labels Inc. ©Project シンフォギアＧＸ ©Project シンフォギアAXZ 1Q 1Q 2Q 3Q 4Q New Title Fever Danmachi Fever Star Blazers: Space Battleship Yamato 2202 -O
Slide 13: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2022 FY 3/2023 YoY FY 3/2022 (Apr‐Mar) 8,891 Net Sales 8,891 22,551 +13,660 Sales volume of SANKYO-brand Operating Income 1,185 9,280 +8,095 +10,359 pachislot machines increases. Percentage 13.3% 41.2% +27.8
Slide 14: Pachislot Machines Business
Pachislot Machines Business ©創通・サンライズ 1Q 1Q 2Q 3Q 4Q Pachislot Aquarion ALL STARS x4 L Pachislot Valvrave the Liberator Pachislot MOBILE SUIT GUNDAM UNICORN （Resale） New Title x3 x4 L Pachislot Valvrave the Liberator Sales of Unit 1,254 units 8,836 units 19,968 units 21,523 units Total 51,581 units
Slide 15: Pachinko Machines Market Share (unit basis)
Pachinko Machines Market Share (unit basis) 35% Sanyo 30% SANKYO 25% 20% 15% Sansei R&D 10% Sammy Newgin Fuji 5% 0% 2017 2018 2019 2020 2021 2022 Source: Yano Research Institute ※2022：Estimate of SANKYO © 2023 SANKYO CO., LTD. 15
Slide 16: Pachislot Machines Market Share (unit basis)
Pachislot Machines Market Share (unit basis) 30% Kitac 25% 20% Universal 15% Sammy 10% Daito SANKYO Yamasa 5% 0% 2017 2018 2019 2020 2021 2022 Source: Yano Research Institute ※2022：Estimate of SANKYO © 2023 SANKYO CO., LTD. 16
Slide 17: Contents
Contents Overview of Financial Results P3 Overview of Business P11 FY 3/2024 Forecast P18 Appendix P32 © 2023 SANKYO CO., LTD. 17
Slide 18: Pachinko Market Sales volume forecast
Pachinko Market Sales volume forecast FY3/2024： 1,000 thousand units Sales Volume (April 1, 2023 to March 31, 2024) Total number of units sold FY3/2023：1,050 units YoY Approx.-11％ thousand Thousand units 1,800 (April 1, 2022 to March 31, 2023) （5 titles sold 30,000 units or more. ） 1,500 Total sal
Slide 19: Pachislot Market Sales volume forecast
Pachislot Market Sales volume forecast FY3/2024： 750 thousand units Sales Volume (April 1, 2023 to March 31, 2024) Total number of units sold FY3/2023： 620 units thousand Thousand units YoY Approx.-8％ (April 1, 2022 to March 31, 2023) （6 titles sold 20,000 units or more. ） 1,000 Total sales volume
Slide 20: Financial Forecasts
Financial Forecasts Year-on-year increases in sales and operating Income are forecast due to increases in the sales volume of pachinko machines and pachislot machines. Aim at a great increase in sales volume of pachislot machines against the backdrop of the buoyant pachislot market. Net Sales 17
Slide 21: Summary of Financial Forecasts
Summary of Financial Forecasts FY 3/2024 million yen FY 3/2023 Forecast YoY Net Sales 157,296 175,000 +17,704 +11.3% Pachinko Machines Business 122,576 131,600 +9,024 +7.4% Pachislot Machines Business 22,551 35,100 +12,549 +55.6% Cost of Sales 66,380 79,100 +12,720 +19.2% Gross Profit 90,916 95,900
Slide 22: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Pachislot Ball Bearing Machines Supply Business Business Other +12,549 ‐3,993 Business +125 175,000 Pachinko Machines Business +9,024 157,296 FY3/2023 FY3/2024 +17,704 million yen（+11.3%） © 2023 SANKYO CO., LTD. 22
Slide 23: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen The gross profit of the pachislot machine sales increases +7,311 ‐745 The gross profit Advertising ‐1,775 of the pachinko expenses increases Other factors machine sales decreases Sales ‐2,773 commission +2,120 59,500 increases 58,532 ‐3,
Slide 24: Costs and Expenses
Costs and Expenses FY 3/2024 million yen FY 3/2023 Forecast YoY SG & A Expenses 32,383 36,400 +4,017 +12.4% Advertising Expenses 1,739 2,484 +745 +42.8% Sales Commission 6,095 7,870 +1,775 +29.1% R&D Expenses 14,295 17,068 +2,773 +19.4% Salaries & Wages 2,988 3,100 +112 +3.7% Depreciation & Amortiza
Slide 25: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data Million yen FY 3/2024 million yen FY 3/2023 Forecast YoY FY 3/2023 (Apr‐Mar) 122,576 Net Sales 122,576 131,600 +9,024 Operating Income 54,223 47,800 -6,423 Sales volume of SANKYO-brand and JB-brand pachinko ‐2,211 44.2% 36.3% -7.9pt Perc
Slide 26: Pachinko Machines Business
Pachinko Machines Business 1Q 1Q 2Q 2Q-4Q New Title Fever ENN ENN NO SHOUBOUTAI Fever SPLASH×SPLASH xx 54 x 10 CODE GEASS Lelouch of the Rebellion Fever Queen Ⅱ Rebellion to Re;surrection 30th ANNIVERSARY EDITION x1 Fever Mobile Suit Gundam Unicorn Reused LIGHT Ver. Models NEON GENESIS EVANGELION （R
Slide 27: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen FY 3/2024 FY 3/2023 million yen FY 3/2023 Forecast YoY (Apr‐Mar) 22,551 Net Sales 22,551 35,100 +12,549 Sales volume of SANKYO-brand Operating Income 9,280 16,400 +7,120 +6,219 pachislot machines increases. Percentage 41.2%
Slide 28: Pachislot Machines Business
Pachislot Machines Business 原作／藤田和日郎「からくりサーカス」（小学館少年サンデー コミックス刊）／©藤田和日郎・小学館／ツインエンジン Licensed by Sony Music Labels Inc. 1Q 1Q 2Q 1Q 2Q-4Q Pachislot ENN ENN NO SHOUBOUTAI x4 L Pachislot Karakuri Circus xx 14 New Title x5 x2 Sales of Unit - units - units - units Forecast of Sales of Unit 90,000 units ©
Slide 29: Initiatives of SANKYO in FY 3/2024
Initiatives of SANKYO in FY 3/2024 Pachinko Machines Business Aim to maintain and enhance brand power and share of sales. Continue to offer both mainstay titles and new tie-up machines to meet diverse preferences of players. Fully demonstrate the superiority of the Groupʼs development capabili
Slide 30: About The Return of Profits to Shareholders
About The Return of Profits to Shareholders Cash dividend Dividend Policy The Companyʼs dividend policy is to continue stable dividend payments, taking into consideration financial results, the financial position, the payout ratio, and other factors comprehensively. FY3/2024 Forecasts \150 per sha
Slide 31: Contents
Contents Overview of Financial Results P3 Overview of Business P11 FY 3/2024 Forecast P18 Appendix P32 © 2023 SANKYO CO., LTD. 31
Slide 32: Business Results for the Full Year of FY 3/2023
Business Results for the Full Year of FY 3/2023 FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2022 FY 3/2023 Consolidated:milion yen Full year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 84,857 157,296 +72,439 175,000 10,932 17,129 42,283 14,513 27,763 42,200 58,102 29,231 Pachinko 71,860 122,576
Slide 33: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2022 FY 3/2023 Consolidated Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GP Margin 56.4% 57.8% +1.4pt 54.8% 56.3% 51.2% 59.0% 54.8% 56.0% 59.7% 55.0% 62.4% OP Margin 25.2% 37.2% +12.0pt 34.0% 7.0% 12.5% 40.5% 9
Slide 34: Pachinko Machines Business
Pachinko Machines Business FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2022 FY 3/2023 Consolidated:milion yen Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 71,860 122,576 +50,716 131,600 9,189 16,481 36,107 10,083 26,431 36,590 40,549 19,006 Operating Income 24,142 54,223 +30,081 47,800
Slide 35: Pachislot Machines Business
Pachislot Machines Business FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2022 FY 3/2023 Consolidated:milion yen Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 8,891 22,551 +13,660 35,100 1,029 102 4,504 3,256 628 4,123 9,425 8,375 Operating Income 1,185 9,280 +8,095 16,400 (338) (1,131) 2,
Slide 36: Financial Indicates
Financial Indicates million yen FY 3/2016 FY 3/2017 FY 3/2018 FY 3/2019 FY 3/2020 FY 3/2021 FY 3/2022 FY 3/2023 Net Sales 137,130 81,455 86,220 88,558 78,416 58,129 84,857 157,296 Operating Income 18,826 5,059 10,181 21,286 12,551 6,587 21,357 58,532 Recurring Income 19,965 3,832 11,319 22,300 13,47
Slide 37: Pachinko/Pachislot Machine Market
Pachinko/Pachislot Machine Market Market size Situation of parlors that are members of Zennichiyuren in the last year 3,000 3,500 12,000 2,557 3,000 2,500 2,432 2,338 10,000 2,190 2,500 2,000 2,059 2,050 2,044 2,044 2,034 2,024 2,015 8,000 2,010 2,008 2,001 1,978 1,966 1,637 2,000 1,572 1,475 7,279
Slide 38: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines Number of 2018 2019 2020 2021 2022 2023J‐M 2017 90 titles Applicant 711 945 912 990 910 219 2018 116 Pass 336 430 295 313 230 48 2019 Fail 333 560 499 598 669 144 97 2020 63 SANKYO Group (Number of P
Slide 39: Contact Us
Contact Us Investor Relations Office 【Notes of forecasts】 The Company's plans, strategies and forecasts, except historical facts, contained in this document may be subject Corporate Planning Division to change due to factors of risk and uncertainty. Therefore, the Company does not guarantee their at