Sankyo Co., Ltd. · TSE:6417
Sankyo — Nomura Investment Forum 2013
36 slides from Sankyo's conference presentation, Dec 5, 2013
Slide 1: Presentation on Nomura Investment Forum 2013
Presentation on Nomura N Investment Forum 2013 1st Sec. of the TSE #6417 Current Price: ¥4,680 (December 2, 2013) Shares Outstanding: 9797.5 5 million Market Cap: ¥456,756 million Kimihisa Tsutsui President & COO The Company's plans, strategies and forecasts, except historical facts, contained in th
Slide 2: Company Overview
SANKYOC#HES Company Overview
Slide 3: Company Overview
会社概要 Company p y Overview SANKYO CO., CO LTD. LTD 1st Sec. of the TSE #6417 Development, Manufacture, and Sales of Pachinko and Pachislot Machines 3 Brands Structure ・東証１部上場（銘柄コード 6417） ・パチンコ、パチスロ機の開発・製造・販売 ・３ブランド展開 2
Slide 4: 3 Brands Structure
３ブランド展開 3 Brands Structure Development and Manufacture Masterpiece 開発・製造 代表作 SANKYO Fever Mobile Suit Gundam Sales Fever KODA KUMI Series Pachinko and Pachislot 販売 Development and Manufacture Masterpiece 開発・製造 代表作 Bisty CR Evangelion Series Sales CR The Story of aymi hamasaki Pachinko and Pachislot
Slide 5: Prosper with the Pachinko Industry
パチンコ産業と共に発展 Prosper p with the Pachinko Industryy 2013 2004 2001 1992 1980 1975 CR Evangelion CR Fever Wide Powerful Fever Powerful III Fever Open Tulip CR Fever Mobile Suit Gundam 4
Slide 6: Stock Information
株価指標 Stock Information Price 4 680 4,680 (December 2, 2013) Currency in JPY 時価総額 M k t Cap Market C 456 756M 456,756M 実績PER Trailing P/E (ttm) 74.73 予想PER Forward P/E (1 yr) 17.31 実績PBR Price/Book (mrq) 1.04 予想配当金 Forward Annual Dividend Rate 150.00 配当利回り Forward Annual Dividend Yield 3.20% 配当性向 Pay
Slide 7: Analyst Coverage
アナリストによるカバレッジ Analyst y Coverage g Mr. Souichiro Fukuda Mr. Satoshi Tanaka Mr. Masanori Minami Mr. Yusuke Maeda Mr. Takeshi Koyama y Analyst y coverage g Mr Masashi Morita Mr. Mr Eiji Maeda Mr. by 7 firms Source: QUICK 6
Slide 8: Focused on Game Machine-related Businesses
遊技機関連に特化した事業領域 Focused on Game Machine-related Businesses 22 1% 22.1% Ball Bearing Supply Systems and Others 51.2% Pachinko Machines 26.7% P hi l t Machines Pachislot M hi 7
Slide 9: Industry Trend
COWL. AAOKOIC. EOD Industry Trend
Slide 10: 30% of the Leisure Market
余暇市場の３割を占める巨大産業 30% of the Leisure Market 19.1 trill. yen Pachinko Rental Ball Fee パチンコ貸玉料 19.1兆円 18.8兆円 11.1 mil. people Pachinko Player Population パチンコファン人口 1,110万人 64.7 trill. yen Leisure Market 余暇市場全体 Source: Japan Productivity Center “Leisure White Paper” 9
Slide 11: Structure of Pachinko Industry
パチンコ産業の構造 Structure of Pachinko Industryy 19.1 trill. yen About 1.2 trill. yen Pachinko Rental Ball Fee Cost of Machine Purchase パチンコ貸玉料 遊技機購入費用 About 0.8 trill. yen Pachinko Machine Market About 3 trill. yen Gross Profit G P fit off Parlor P l About 0.4 trill. yyen パーラー粗利益 Pachislot Machine Market
Slide 12: Size of Pachinko Machine Market
パチンコ機市場 Size of Pachinko Machine Market 985 886 825 772 800 CY2013 3 332 3,332 Expected to be almost on par 2,900 2,602 2,494 2,500 Market Size (bn. yen) No. of Sales for Pachinko Machines (thou. units) CY2009 2010 2011 2012 2013E 2013年度 ほぼ横ばいを予想 Data for CY2009- CY2012: Survey by Yano Research Inst
Slide 13: Size of Pachislot Machine Market
パチスロ機市場 Size of Pachislot Machine Market 429 400 375 286 225 CY2013 Expected to be almost on par 1,259 1,326 1,300 979 766 Market Size (bn. yen) No. of Sales for Pachislot Machines (thou. units) CY2009 2010 2011 2012 2013E 2013年度 ほぼ横ばいを予想 Data for CY2009- CY2012: Survey by Yano Research Institute Pr
Slide 14: Share of Pachinko Machine Market (unit basis)
パチンコ機 販売シェア（台数ベース） Share of Pachinko Machine Market ((unit basis)) 30% 25% Sanyo y 20% Kyoraku 15% 10% Newgin Sammy SANKYO 5% Heiwa + Olympia 0% CY2008 2009 2010 2011 2012 Source: Yano Research Institute 13
Slide 15: Share of Pachislot Machine Market (unit basis)
パチスロ機 販売シェア（台数ベース） Share of Pachislot Machine Market ((unit basis)) 35% 30% 25% Sammy Yamasa 20% U i Universal l 15% 10% Kitac SANKYO 5% Daito 0% CY2008 2009 2010 2011 2012 Source: Yano Research Institute 14
Slide 16: Current Situations and Initiatives
現況と取り組み Current Situations and Initiatives
Slide 17: Business Outlook: Still Challenging
事業環境の見通しは依然厳しい Business Outlook: Still Challenging g g Pachinko Diffusion Index パチンコDI調査 +70 Pachislot machine utilization tili ation rate パチスロ稼働状況 +0 Overall business conditions 全般的業況 -21.9 -35.6 Pachinko machine utilization rate パチンコ稼働状況 -70 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2011 2012 20
Slide 18: Impact of the Consumption Tax Increase on Rental Balls
Impact of 消費税率引き上げが貸玉料に与える影響 the Consumption Tax Increase on Rental Balls Lending at the maximum rate (tax exclusive) 上限貸出（外税） 1ball = 4.32 yen 4.00 11.1% 0.32 Current method 1,080 Y 250 B (tax inclusive) 現行方式（内税） 232 B 1,000 , Y Pachinko parlor operators operators’ 1ball = 4.00 yen response to tax
Slide 19: Pachinko Rental Ball Fee Is Linked to Salary Workers' Allowance
Pachinko Rental Ball Fee 市場（貸玉料）は「サラリーマンの小遣い」に連動 Is Linked to Salaryy Workers’ Allowance 21 7 21.7 21.0 19.3 18.8 19.1 45.8 45.7 Expect benefits from the 41.9 38.8 ３9.7 impact of Abenomics アベノミクス効果に期待 25.3 25.2 25.7 24.8 20.8 Pachinko Rental Ball Fee (trill. (trill yen) パチンコ貸玉料（兆円） Salary Workers’ A
Slide 20: Pachinko/Pachislot Industry Vitalization Project
遊技産業活性化プロジェクト Pachinko/Pachislot / Industryy Vitalization Project j Cross-sector organization involving pachinko parlor operators, pachinko machine manufacturers, trading companies, and others related to the p pachinko/pachislot /p industryy パーラー、メーカー、商社等業界を横断する団体 Nichiyukyo 1. Cultivating more fans
Slide 21: Key Issues for FY 3/2014
２０１４年３月期 重点課題 Keyy Issues for FY 3/2014 / Continued p promotion as keyy issues 重点課題として引き続き推進 Establishment of the SANKYO brand 1 ＳＡＮＫＹＯブランドの確立 Enhanced presence in the pachislot market 2 パチスロ市場における存在感の向上 Early establishment of the 3-brand structure 3 ３ブランド体制の早期構築 20
Slide 22: Growth Strategy: Begin with Establishing the Brand
Growth Strategy: 成長戦略：まずはブランドの確立 Begin g with Establishing g the Brand Brand Empathy p y Trust Securityy = x x ブランド 共感 信頼 安心 Mainstay Titles Kyoraku 定番タイトル “Hissatsu Shigotonin” 4 必殺仕事人 Sanyo Sammy Popular p Products “S “Sea St Story”” 15 “Fi t off th “Fist N th Star” the North St ” 5 ヒット商品 海物語 北斗の拳
Slide 23: Develop Fever Mobile Suit Gundam into Mainstay Title
Develop 「フィーバー機動戦士ガンダム」を定番タイトルへ “Fever Mobile Suit Gundam” into Mainstayy Title Mainstay Titles 定番タイトル x2 22
Slide 24: Forecast of FY 3/2014 (Highlights)
２０１４年３月期 業績予想 Forecast of FY 3/2014 / (Highlights) ( g g ) Consolidated: mill. yen FY 3/2013 FY 3/2014 YoY Net Sales 104,150 200,000 +95,850 +92.0% Pachinko Machines 53,302 127,000 Pachislot Machines 27 822 27,822 55 100 55,100 Ball Bearing Suppry Systems 21,478 16,400 Other Business 1,546 1,500 Ope
Slide 25: Number of Pachinko/Pachislot Titles to be Released
販売予定タイトル数 Number of Pachinko/Pachislot / Titles to be Released FY 3/2014 Q1 Q2 Q3 Q4 Pachinko (Excluding Reused Models) Fever Mobile Suit GUNDAM Evangelion 8 Fever Slayers Revolution Evangelion 8 Y Beyond the Heavens Slonko Flower TEKKEN Cho Tenjiku （リユースを除く） Magicape g p 10+1 titles Ghost Neo Ghost
Slide 26: Progress up to the First Six Months of FY 3/2014
２０１４年３月期 第２四半期の進捗状況 Progress g up p to the First Six Months of FY 3/2014 / Q1 Q2 N t Sales Net S l 104,666 52.3% 200,000 million yen en Operating Income 82.5% 26,415 32,000 Recurring Income 80.7% 27,423 34,000 Net Income 84.3% 21,080 25,000 Unit Sales of 210 742 210,742 56 5% 56.5% 373 000 373,000 u
Slide 27: 5-year Financial Highlights
最近５年間の業績推移 5-year y Financial Highlights g g Consolidated: mil. yen FY 3/2009 FY 3/2010 FY 3/2011 FY 3/2012 FY 3/2013 Net Sales 187 877 187,877 222 673 222,673 201 606 201,606 173 682 173,682 104 150 104,150 Pachinko Machines 133,195 180,471 149,876 123,353 53,302 Pachislot Machines 33,598 23,698 30
Slide 28: Dividend Policy
配当方針 Dividend Policyy Stable dividend 安定配当 Commitment to 25% payout ratio 公約配当性向25％ FY 3/2014 No dividend cut since the listing 上場以来 減配がない DPS 150 yen Including interim dividend 中間配当を含む 27
Slide 29: Appendix
附属資料 Appendix
Slide 30: Business Results for the First Six Months of FY 3/2014
２０１４年３月期 第２四半期実績 Business Results for the First Six Months of FY 3/2014 / FY 3/2013 FY 3/2014 Forecast (6-Aug) FY 3/2013 FY 3/2014 連結：百万円 Consolidated: million yen 6 Months 6 Months YoY 6 Months Change Full Year Q1 Q2 Q3 Q4 Q1 Q2 売上高 売 高 Net Sales 53,782 104,666 +50,884 102,000 +2,666 200,000 22,864
Slide 31: Pachinko Machines Business
パチンコ機関連事業 Pachinko Machines Business FY 3/2013 FY 3/2014 Forecast (6-Aug) FY 3/2013 FY 3/2014 連結：百万円 Consolidated: million yen 6 Months 6 Months YoY 6 Months Change Full Year Q1 Q2 Q3 Q4 Q1 Q2 売上高 Net Sales 29 948 29,948 76 384 76,384 +46 436 +46,436 74 900 74,900 +1 484 +1,484 127 000 127,000 10 89
Slide 32: Pachislot Machines Business
パチスロ機関連事業 Pachislot Machines Business FY 3/2013 FY 3/2014 Forecast (6-Aug) FY 3/2013 FY 3/2014 連結：百万円 Consolidated: million yen 6 Months 6 Months YoY 6 Months Change Full Year Q1 Q2 Q3 Q4 Q1 Q2 売上高 Net Sales 12,154 19,189 +7,035 18,500 +689 55,100 5,705 6,449 195 15,473 15,327 3,862 営業利益 Operating I
Slide 33: Gross Margin/Operating Margin
売上総利益率／営業利益率 Gross Margin/Operating g / p g Margin g FY 3/2013 FY 3/2014 Forecast (6-Aug) FY 3/2013 FY 3/2014 連結 Consolidated 6 Months 6 Months YoY 6 Months Change Full Year Q1 Q2 Q3 Q4 Q1 Q2 売上総利益率 Gross Margin 51.0% 50.3% -0.7pt 50.0% +0.3pt 45.0% 47.7% 53.4% 36.8% 46.1% 50.1% 50.6% 営業利益率 Operatin
Slide 34: Game Machine Market
遊技機市場 Game Machine Market 4,000 全日遊連加盟パーラーの状況 Situation of Parlors that Are Members of Zennichiyuren 営業中の店舗数 3,500 No. of outlets currently in operation 3,339 3,332 11,167 11,155 11,177 11,171 11,137 11,089 11,093 11,069 11,040 11,042 11,033 10,994 3,000 3,158 3,163 3 076 3,076 3,107 , 3,042 2,900 2
Slide 35: SANKYO Group Companies
企業集団 SANKYO Group p Companies p （株）ジェイビー JB Co., Ltd. インタ ナショナル カ ド システム（株） インターナショナル・カード・システム（株） 40.0% フィ ルズ（株） フィールズ（株） International Card System Co., Ltd. 100.0% Fields Corporation 15.6% （株）三共エクセル （株）サン・ラック Sankyo Sa yo Excel ce Co Co.,, Ltd. td 100.0% 00 0 Su Luck Sun uc Co Co.,, Ltd. td 95 95.0
Slide 36: Good luck. Good life.
Good luck. Good life. sAN<KYO