Sankyo Co., Ltd. · TSE:6417
Sankyo — Q1 FY3/2024 Earnings Presentation
28 slides from Sankyo's earnings presentation, Aug 7, 2023
Slide 1: Presentation on Business Results for the First Quarter of FY 3/2024
Presentation on Business Results for the First Quarter of FY 3/2024 (April 1, 2023 to June 30, 2023) August 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 P22 © 2023 SANKYO CO., LTD. 2
Slide 3: Financial Highlights
Financial Highlights Increases in both net sales and profits compared with the same period of the previous year due to increases in the sales volume of pachinko and pachislot machines. Good start for the achievement of the full-year financial forecasts. Net Sales 50,777 million yen YoY +82.9 % C
Slide 4: Summary of Financial Results (Market and SANKYO Group)
Summary of Financial Results The recovery of machine utilization has been evident in the pachislot market. In contrast, machine utilization has been sluggish in the pachinko market. Pachinko Pachinko sales market has been somewhat weak, because the machine utilization Pachislot in pachinko marke
Slide 5: Summary of Financial Results
Summary of Financial Results million yen FY 3/2023 1Q FY 3/2024 1Q YoY FY 3/2024 Forecast Net Sales 27,763 50,777 +23,014 +82.9% 175,000 Pachinko Machines Business 26,431 34,887 +8,456 +32.0% 131,600 Pachislot Machines Business 628 9,056 +8,428 +1342.0% 35,100 Cost of Sales 12,221 22,450 +10,229 +83
Slide 6: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen +6,074 +55 Ball Bearing Other 50,777 +8,428 Supply Business Business Pachislot Machines +8,456 Business Pachinko Machines Business 27,763 FY3/2023 1Q FY3/2024 1Q +23,014 million yen（+82.9%） © 2023 SANKYO CO., LTD. 6
Slide 7: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen +5,527 ‐844 ‐1,576 +2,462 The gross profit Advertising ‐536 19,188 of the pachislot expenses machine sales increases Sales commission R&D Other factors increases +4,700 increases expenses increases The gross profit of the pachinko machin
Slide 8: Costs and Expenses
Costs and Expenses million yen FY 3/2023 1Q FY 3/2024 1Q YoY FY 3/2024 Forecast SG & A Expenses 6,086 9,137 +3,051 +50.1% 36,400 Advertising Expenses 201 1,045 +844 +419.9% 2,484 Sales Commission 450 2,026 +1,576 +350.2% 7,870 R&D Expenses 2,969 3,505 +536 +18.1% 17,068 Salaries & Wages 622 722 +100
Slide 9: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-23 As of 30-Jun-23 YoY Factors of Change Total current assets 321,797 316,338 ‐5,459 Quick assets 295,715 289,603 ‐6,112 Decreases due to payments of taxes and dividends Total fixed assets 44,153 44,218 +65 Investment securities 11,436 11,953 +517 To
Slide 10: Contents: 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 P22 © 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 1Q FY 3/2024 1Q YoY FY 3/2023 1st Quarter (Apr‐Jun) 26,431 Net Sales 26,431 34,887 +8,456 Sales volume of SANKYO-brand Operating Income 10,963 14,997 +4,034 and JB-brand pachinko machines ‐6,107 decrease
Slide 12: Pachinko Machines Business: Titles
Pachinko Machines Business New Title x 10 Reused Models etc. ©⼤久保篤／講談社 ©創通・サンライズ ©⾚坂アカ／集英社・かぐや様は告らせたい製作委員会 ©⼤久保篤・講談社／特殊消防隊動画広報課 1Q 2Q 3Q-4Q Fever MOBILE SUIT GUNDAM Fever QueenⅡ Fever ENN ENN NO SHOUBOUTAI UNICORN LIGHT ver. 30th ANNIVERSARY EDITION Fever Kaguya-sama: Love Is War xx 34 CODE GEASS Le
Slide 13: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2023 1Q FY 3/2024 1Q YoY FY 3/2023 1st Quarter 628 (Apr‐Jun) Net Sales 628 9,056 +8,428 Operating Income (289) 4,818 +5,107 Percentage (46.0%) 53.2% Sales volume of SANKYO-brand +8,126 pachislot machines inc
Slide 14: Pachislot Machines Business: Titles
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 ©⼤久保篤／講談社 コミックス刊）／©藤田和日郎・小学館／ツインエンジン ©⼤久保篤・講談社／特殊消防隊動画広報課 Licensed by Sony Music Labels Inc. 1Q 1Q 2Q 1Q 3Q-4Q New Title Pachislot ENN ENN NO x4 x2 x5 SHOUBOUTAI L Pachislot Karakuri Circus xx 14 (resale) Reused L Pachislot Valvrave the Libera
Slide 15: Contents: Surroundings of Pachinko and Pachislot Industry
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, And Initiatives of SANKYO P16 Appendix P22 © 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. 230 thousand units YoY Approx. +12％ 1,800 （1 titles sold 30,000 units or more. (April to June, 2023) (April to June)） 1,500 Total sale
Slide 17: Pachislot Market
Pachislot Market Sales Volume Sales volume forecast FY2024： 750 thousand units Thousand units (April 1, 2023 to March 31, 2024) Total number Approx.200 units YoY Approx. +151％ 1,000 thousand of units sold （3 titles sold 20,000 units or more. (April to June, 2023) (April to June)） 800 750 673 Total
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. 1Q From 2Q onward Launch of pachinko machine titles equipped with Launch of mai
Slide 19: Launch of Pachinko Title "Fever Mobile Suit Gundam SEED"
Launch of Pachinko Title “Fever Mobile Suit Gundam SEED” A new pachinko title of “Mobile Suit Gundam" series will be released after a two-year interval. Adoption of a new frame “Freedom Flame”. ・Firstly equipped with Smart Handle as SANKYO brand. ・A simple yet high-performance new frame with a metic
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 © 2023 SANKYO CO., LTD. 20
Slide 21: Business Results for the First Quarter of FY 3/2024
Business Results for the First Quarter of FY 3/2024 FY 3/2024 Forecast FY 3/2022 FY 3/2023 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 50,777 +23,014 175,000 10,932 17,129 42,283 14,513 84,857 27,763 42,200 58,102 29,231 157,296 Pachinko 34,887 +8,456 131,600 9,1
Slide 22: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2024 Forecast FY 3/2022 FY 3/2023 Consolidated Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY GP Margin 55.8% -0.2pt 54.8% 56.3% 51.2% 59.0% 54.8% 56.4% 56.0% 59.7% 55.0% 62.4% 57.8% OP Margin 37.8% +3.7pt 34.0% 7.0% 12.5% 40.5% 9.1% 25.2% 34.1% 40.2%
Slide 23: Pachinko Machines Business
Pachinko Machines Business FY 3/2024 Forecast FY 3/2022 FY 3/2023 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 34,887 +8,456 131,600 9,189 16,481 36,107 10,083 71,860 26,431 36,590 40,549 19,006 122,576 Operating Income 14,997 +4,034 47,800 1,981 4,520 15,958 1,68
Slide 24: Pachislot Machines Business
Pachislot Machines Business FY 3/2024 Forecast FY 3/2022 FY 3/2023 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 9,056 +8,428 35,100 1,029 102 4,504 3,256 8,891 628 4,123 9,425 8,375 22,551 Operating Income 4,818 +5,107 16,400 (338) (1,131) 2,008 646 1,185 (289) 1,
Slide 25: 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 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 2,557 2,432 3,000 2,500 2,338 2,190 10,000 2,500 2,000 2,044 2,034 2,024 2,015 2,010 2,008 2,001 8,000 1,978 1,966 1,969 1,957 1,952 1,637 2,000 1,572 1,475 7,107
Slide 27: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2018 2019 2020 2021 2022 2023J‐J 2018 116 Applicant 711 945 912 990 910 466 2019 97 Pass 336 430 295 313 230 100 Fail 333 560 499 598 669 333 2020 63 SANKYO Group (Number of Pa s s ) 2021 87 SANKYO+J
Slide 28: 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