Sankyo Co., Ltd. · TSE:6417
Sankyo — H1 FY3/2024 Earnings Presentation
30 slides from Sankyo's earnings presentation, Nov 7, 2023
Slide 1: Presentation on Business Results for the First Half of FY 3/2024
Presentation on Business Results for the First Half of FY 3/2024 (April 1, 2023 to September 30, 2023) November 7, 2023 SANKYO CO., LTD. Prime Market of the TSE #6417
Slide 2: Contents
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, P16 And Initiatives of SANKYO Appendix P23 © 2023 SANKYO CO., LTD. 2
Slide 3: Financial Highlights
Financial Highlights Substantial increases in both net sales and profits compared with the same period of the previous year due to substantial increases in the sales volume of both pachinko machines and pachislot machines. Achieved good progress for the forecasts of financial results for fiscal
Slide 4: Summary of Financial Results
Summary of Financial Results In the market for Smart Pachinko/Pachislot machines, with several hit titles emerging, Smart Pachislot machines are diffusing earlier than Smart Pachinko machines because of their more positive contribution on machine utilization. Pachinko Pachislot Regarding Smart P
Slide 5: Summary of Financial Results
Summary of Financial Results million yen FY 3/2023 2Q FY 3/2024 2Q YoY FY 3/2024 Forecast Net Sales 69,963 116,190 +46,227 +66.1% 175,000 Pachinko Machines Business 63,021 82,107 +19,086 +30.3% 131,600 Pachislot Machines Business 4,751 21,686 +16,935 +356.5% 35,100 Cost of Sales 29,238 51,687 +22,44
Slide 6: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Ball Bearing Supply Other Pachislot Business Business Machines +89 +10,116 Business Pachinko +16,935 116,190 Machines Business +19,086 69,963 FY3/2023 2Q FY3/2024 2Q +46,227 million yen（+66.1%） © 2023 SANKYO CO., LTD. 6
Slide 7: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen Pachislot Machines Advertising Business Sales expenses commission R&D +11,340 increases increases expenses Other factors Pachinko increases +44 Machines ‐716 Business ‐2,081 ‐700 45,460 +11,158 26,415 FY3/2023 2Q FY3/2024 2Q +19,045 mill
Slide 8: Costs and Expenses
Costs and Expenses million yen FY 3/2023 2Q FY 3/2024 2Q YoY FY 3/2024 Forecast SG & A Expenses 14,308 19,042 +4,734 +33.1% 36,400 Advertising Expenses 911 1,627 +716 +78.6% 2,484 Sales Commission 1,747 3,828 +2,081 +119.1% 7,870 R&D Expenses 6,448 7,148 +700 +10.9% 17,068 Salaries & Wages 1,265 1,4
Slide 9: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-23 As of 30-Sep-23 YoY Main Factors of Change Total current assets 321,797 317,860 ‐3,937 Cash in a portion of marketable securities Quick assets 295,715 291,705 ‐4,010 Decrease due to the repurchase of treasury stock Total fixed assets 44,153 44,752
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 P23 © 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 3/2023 2Q FY 3/2024 2Q YoY FY 3/2023 2nd Quarter (Apr‐Sep) 63,021 Net Sales 63,021 82,107 +19,086 Sales volume of SANKYO-brand Operating Income 28,275 36,515 +8,240 and JB-brand pachinko machines ‐4,316 decrese
Slide 12: Pachinko Machines Business
Pachinko Machines Business New Title x 10 Reused Models etc. ©⼤久保篤／講談社 ©創通・サンライズ ©カラー ©⼤久保篤・講談社／特殊消防隊動画広報課 ©SUNRISE/VVV Committee 1Q 2Q 3Q 4Q Fever ENN ENN NO SHOUBOUTAI Fever MOBILE SUIT GUNDAM Fever QueenⅡ Fever Kaguya-sama: Love Is War Fever Valvrave the Liberator 3 UNICORN LIGHT ver. 30th ANNIVE
Slide 13: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen FY 3/2023 2nd Quarter million yen FY 3/2023 2Q FY 3/2024 2Q YoY (Apr‐Sep) 4,751 Net Sales 4,751 21,686 +16,935 Operating Income 1,039 11,483 +10,444 Sales volume of SANKYO-brand +9,330 Percentage 21.9% 53.0% +31.1pt pachislo
Slide 14: Pachislot Machines Business
Pachislot Machines Business ©⼤久保篤／講談社 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. ©カラー ©2009,2011 BIGWEST/MACROSS F PROJECT ©⼤久保篤・講談社／特殊消防隊動画広報課 1Q 1Q 2Q 3Q 4Q New Title Pachislot ENN ENN NO x4 L Pachislot Karakuri Circus x 44 x5 SHOUBOUTAI L Pachislot
Slide 15: Surroundings of Pachinko and Pachislot Industry, and Initiatives of SANKYO
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, And Initiatives of SANKYO P16 Appendix P23 © 2023 SANKYO CO., LTD. 15
Slide 16: Pachinko Market
Pachinko Market Sales Volume Sales volume forecast FY2024： 1,000 thousand units Thousand units (April 1, 2023 to March 31, 2024) Total number of units sold Approx. 500 thousand units YoY Approx. -5％ 1,800 （3 titles sold 30,000 units or more. (April to September, 2023) (April to September)） 1,500 T
Slide 17: Pachislot Market
Pachislot Market 750 thousand units Sales Volume Sales volume forecast FY2024： Thousand units 800 (April 1, 2023 to March 31, 2024) thousand units Total number 400 1,000 thousand Approx. units YoY Approx. +66％ of units sold （5 titles sold 20,000 units or more. (April to September, 2023) 800 (April t
Slide 18: Initiatives of SANKYO in the Pachinko and Pachislot Machine Markets
Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets Aim to maintain and enhance brand power and share of sales in the pachinko market. Aim to ensure the Group forges ahead in the pachislot market. Q1-Q2 From Q3 onward Launch of mainstay titles and new IP titles. Launch of 16t
Slide 19: Launch of 16th Neon Genesis Evangelion Series Pachinko Machine
Lanunch of 16th of “Neon Genesis Evangelion” Series of Pachinko Machine (planned release date: December) Simultaneous release of Smart Pachinko machine which is first release of “Neon Genesis Evangelion” series of pachinko machine. Equipped with footage from the movie EVANGELION:3.0＋1.0 Type Rei (co
Slide 20: Change in the Dividend Policy
Change in the Dividend Policy (announced on September 21, 2023) ＜New Dividend Policy＞ The Companyʼs basic policy is to pay performance-linked dividends with a consolidated dividend payout ratio of 40% as a benchmark. However, the minimum annual dividend per share shall be set at \100 to maintain sta
Slide 21: Repurchase and Cancellation of Own Shares
Repurchase and Cancellation of Own Shares Announcement of repurchase and cancellation of own shares (disclosed on November 7,2023) Board of Number of shares purchased and Number of shares Purchase period Pranned Disposal Date Directors' meeting aggregate amount of repurchase cost: disposed up to 10,
Slide 22: Appendix
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, P16 And Initiatives of SANKYO Appendix P23 © 2023 SANKYO CO., LTD. 22
Slide 23: Business Results for the Second Quarter of FY 3/2024
Business Results for the Second Quarter of FY 3/2024 FY 3/2023 FY 3/2024 Forecast FY 3/2023 FY 3/2024 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 69,963 116,190 +46,227 175,000 27,763 42,200 58,102 29,231 157,296 50,777 65,413 Pachinko 63,021 82,107 +19,086
Slide 24: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2023 FY 3/2024 Forecast FY 3/2023 FY 3/2024 Consolidated 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 GP Margin 58.2% 55.5% -2.7pt 54.8% 56.0% 59.7% 55.0% 62.4% 57.8% 55.8% 55.3% OP Margin 37.8% 39.1% +1.4pt 34.0% 34.1% 40.2% 37.2% 35.9% 37.2%
Slide 25: Pachinko Machines Business
Pachinko Machines Business FY 3/2023 FY 3/2024 Forecast FY 3/2023 FY 3/2024 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 63,021 82,107 +19,086 131,600 26,431 36,590 40,549 19,006 122,576 34,887 47,220 Operating Income 28,275 36,515 +8,240 47,800 10,963 17,31
Slide 26: Pachislot Machines Business
Pachislot Machines Business FY 3/2023 FY 3/2024 Forecast FY 3/2023 FY 3/2024 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 4,751 21,686 +16,935 35,100 628 4,123 9,425 8,375 22,551 9,056 12,630 Operating Income 1,039 11,483 +10,444 16,400 (289) 1,328 5,299 2,9
Slide 27: Financial Indicates
Financial Indicates million yen FY 3/2017 FY 3/2018 FY 3/2019 FY 3/2020 FY 3/2021 FY 3/2022 FY 3/2023 FY 3/2024E Net Sales 81,455 86,220 88,558 78,416 58,129 84,857 157,296 175,000 Operating Income 5,059 10,181 21,286 12,551 6,587 21,357 58,532 59,500 Recurring Income 3,832 11,319 22,300 13,476 7,48
Slide 28: 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 2,637 12,000 2,557 2,432 3,000 2,500 2,338 2,190 10,000 2,500 2,000 2,024 2,015 2,010 2,008 2,001 8,000 1,665 1,978 1,966 1,969 1,957 1,952 1,947 1,637 1,931 1,572 2,000
Slide 29: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2018 2019 2020 2021 2022 2023J‐S 2018 116 Applicant 711 945 912 990 910 703 2019 97 Pass 336 430 295 313 230 150 Fail 333 560 499 598 669 501 2020 63 2021 SANKYO Group (Number of Pa s s ) 87 SANKYO+J
Slide 30: 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