Sankyo Co., Ltd. · TSE:6417

Sankyo — 2013 Mizuho Investment Conference

34 slides from Sankyo's conference presentation, Sep 10, 2013

  1. Slide 1: Presentation on 2013 Mizuho Investment Conference

    Presentation on 2013 Mizuho Mi h Investment Conference 1st Sec. of the TSE #6417 Current Price: ¥4,580 (September 2, 2013) Shares Outstanding: 9797.5 5 million Market Cap: ¥446,996 million Kimihisa Tsutsui President & COO The Company's plans, strategies and forecasts, except historical facts, contai

  2. Slide 2: Company Overview

    ＳＡＮＫＹＯご紹介 © TSUBURAYA PROD. Company Overview

  3. 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

  4. 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 Suite 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

  5. Slide 5: Stock Information

    株価指標 Stock Information Price 4 580 4,580 (September 2, 2013) Currency in JPY 時価総額 M k t Cap Market C 446 996M 446,996M 実績PER Trailing P/E (ttm) 73.13 予想PER Forward P/E (1 yr) 17.12 実績PBR Price/Book (mrq) 1.03 予想配当金 Forward Annual Dividend Rate 150.00 配当利回り Forward Annual Dividend Yield 3.27% 配当性向 Pa

  6. Slide 6: 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 5

  7. Slide 7: 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 6

  8. Slide 8: Industry Trend

    BS eri Or io Industry Trend

  9. Slide 9: 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” 8

  10. Slide 10: 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. Slide 16: Current Situations and Initiatives

    現況と取り組み Current Situations and Initiatives

  17. Slide 17: 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

  18. Slide 18: 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 17

  19. Slide 19: 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 18

  20. Slide 20: 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

  21. Slide 21: 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 H2 (Q3-Q4) Pachinko (Excluding Reused Models) Fever Mobile Suit GUNDAM Evangelion 8 Fever Slayers Revolution Beyond the Heavens Slonko Flower Magicape g p （リユースを除く） パチンコ、パチスロ各１タイトルの販売時期を下期へ変更 10 titles in total Ghost Neo

  22. Slide 22: Progress up to the First Quarter of FY 3/2014

    ２０１４年３月期 第１四半期の進捗状況 Progress g up p to the First Quarter of FY 3/2014 / Net Sales 63,456 31.7% 200,000 ((Mil. yyen)) Operating Income 20,487 64.0% 32,000 Recurring Income 20,707 60.9% 34,000 Net Income 16,277 65.1% 25,000 Unit Sales of 123,404 33.0% 373,000 (Units) Pachinko Machines Unit Sales of 41

  23. Slide 23: 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

  24. Slide 24: 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 23

  25. Slide 25: Appendix

    附属資料 Appendix

  26. Slide 26: Business Results for the First Quarter of FY 3/2014

    ２０１４年３月期 第１四半期実績 Business Results for the First Quarter of FY 3/2014 / FY 3/2014 Forecast (6-Aug) FY 3/2012 FY 3/2013 連結：百万円 Consolidated: million yen Q1 YoY 6 Months Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 売上高 売 高 Net Sales 63,456 +40,592 102,000 200,000 31,641 39,894 30,666 71,481 22,864 30,918 13,743 3

  27. Slide 27: Pachinko Machines Business

    パチンコ機関連事業 Pachinko Machines Business FY 3/2014 Forecast (6-Aug) FY 3/2012 FY 3/2013 連結：百万円 Consolidated: million yen Q1 YoY 6 Months Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 売上高 Net Sales 43 428 43,428 +32 533 +32,533 74 900 74,900 127 000 127,000 18 135 18,135 31 792 31,792 17 391 17,391 56 035 56,035 10

  28. Slide 28: Pachislot Machines Business

    パチスロ機関連事業 Pachislot Machines Business FY 3/2014 Forecast (6-Aug) FY 3/2012 FY 3/2013 連結：百万円 Consolidated: million yen Q1 YoY 6 Months Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 売上高 Net Sales 15 327 15,327 +9 622 +9,622 18 500 18,500 55 100 55,100 8 388 8,388 2 486 2,486 1 705 1,705 11 703 11,703 5 705 5,705

  29. Slide 29: Gross Margin/Operating Margin

    売上総利益率／営業利益率 Gross Margin/Operating g / p g Margin g FY 3/2014 Forecast (6-Aug) FY 3/2012 FY 3/2013 連結 Consolidated Q1 YoY 6 Months Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 売上総利益率 Gross Margin 50.1% +2.4pt 50.0% 45.0% 47.2% 44.3% 45.8% 53.0% 47.7% 53.4% 36.8% 46.1% 営業利益率 Operating Margin 32.3% +27.0pt 24.5

  30. Slide 30: 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 11,222 11,227 11,199 11,167 11,155 11,177 11,171 11,137 11,089 11,093 11,069 11,040 3,000 3,158 3,163 3 076 3,076 3,107 , 3,035 2,900 2

  31. Slide 31: Unit of Sales of Pachinko Machine Volume by Brand

    ブランド別パチンコ機販売台数 Unit of Sales of Pachinko Machine Volume byy Brand 2013 Jan-Jun 2012 Jan-Jun CY2012 (Jan-Dec) 1 A 179,000 17.8% 3 134,000 10.4% 1 461,000 18.2% 2 B 162,000 16.1% 5 108,000 8.4% 7 140,000 5.5% 3 SANKYO 132,933 13.2% 8 69,096 5.4% 8 126,288 5.0% 4 C 131,000 13.0% 10 53,000 4.1% 9 109,00

  32. Slide 32: Unit of Sales of Pachislot Machine Volume by Brand

    ブランド別パチスロ機販売台数 Unit of Sales of Pachislot Machine Volume byy Brand 2013 Jan-Jun 2012 Jan-Jun CY2012 (Jan-Dec) 1 A 130,000 18.9% 7 39,000 6.1% 6 77,000 5.8% 2 B 80,000 11.6% N.A N.A 3 C 63,000 9.1% 8 33,000 5.2% 7 61,000 4.6% 4 D 63,000 9.1% 2 98,000 15.3% 5 98,000 7.4% 5 Bisty 56,765 8.2% 6 49,706 7

  33. Slide 33: 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

  34. Slide 34: Good luck. Good life.

    Good luck. Good life. sAN<KYO

Sankyo — 2013 Mizuho Investment Conference on 6ix