Slide 1: Presentation on Business Results for the First Six Months of FY 3/2022
Presentation on Business Results for the First Six Months of FY 3/2022 (April 1, 2021 to September 30, 2021) November 8, 2021 SANKYO CO., LTD. 1st Sec. 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 P24 © 2021 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 an increase in the sales volume of pachinko machines. Recording of extraordinary gains on the sales of a portion of the investment securities. ( disclosed in August 6, 2021) Net
Slide 4: Summary of Financial Results
Summary of Financial Results There were some impacts of the worldwide semiconductor shortages, such as postponing the release of certain new models and restrictions on sales quantities. Pachinko Replace of pachinko machines is generally proceeding smoothly as manufacturers have Pachislot supplie
Slide 5: Summary of Financial Results
Summary of Financial Results million yen FY 3/2021 2Q FY 3/2022 2Q YoY FY 3/2022 Forecast Net Sales 25,332 28,061 +2,729 +10.8% 73,000 Pachinko Machines Business 22,384 25,670 +3,286 +14.7% 56,700 Pachislot Machines Business 1,513 1,131 -382 -25.2% 11,500 Cost of Sales 12,788 13,132 +344 +2.7% 34,50
Slide 6: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Pachislot Ball Bearing Machines Supply Other +3,286 Business Business Business Pachinko ‐382 28,061 ‐143 ‐32 Machines 25,332 Business FY3/2021 2Q FY3/2022 2Q +2,729 million yen（+10.8%） © 2021 SANKYO CO., LTD. 6
Slide 7: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen +2,041 2,914 The gross profit of the pachislot machine sales +989 decreases Other factors ‐50 The gross profit Advertising of the pachinko expenses machine sales increases increases 1,084 Sales +322 ‐959 commission increases R&D expenses
Slide 8: Costs and Expenses
Costs and Expenses million yen FY 3/2021 2Q FY 3/2022 2Q YoY FY 3/2022 Forecast SG & A Expenses 11,459 12,014 +555 +4.8% 29,600 Advertising Expenses 245 1,204 +959 +391.4% 2,032 Sales Commission 437 949 +512 +117.2% 3,901 R&D Expenses 5,969 5,647 -322 -5.4% 14,859 Salaries & Wages 1,248 1,139 -109 -
Slide 9: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-21 As of 30-Sep-21 YoY Factors of Change Total current assets 243,343 250,578 +7,235 Increase in cash and deposits, and Decrease in notes and Quick assets 234,738 235,517 +779 accounts receivable‐trade Inventories 4,268 7,809 +3,541 Total fixed asset
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 P24 © 2021 SANKYO CO., LTD. 10
Slide 11: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2021 2Q FY 3/2022 2Q YoY FY 3/2021 1st Six Months (Apr‐Sep) 22,384 Net Sales 22,384 25,670 +3,286 Sales volume of SANKYO-brand Operating Income 4,737 6,501 +1,764 and JB-brand pachinko machines +1,080 increas
Slide 12: Pachinko Machines Business
Pachinko Machines Business New Title x9 Reused Models 1Q 2Q1Q 3Q 4Q Fever Star Blazers: Space Fever Valvrave the Liberator 2 Battleship Yamato 2202 Fever Macross Frontier 4 Fever Tiger Mask W Light ver. xx 14 Fever Powerful Fever Mobile Suit Gundam Unicorn J-RUSH 5 Fever Symphogear 2 x1 Light / Ligh
Slide 13: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2021 2Q FY 3/2022 2Q YoY FY 3/2021 1st Six Months (Apr‐Sep) 1,513 Net Sales 1,513 1,131 -382 Volume difference of Operating Income (1,319) (1,469) -150 0 SANKYO-brand pachislot Percentage (87.2%) (129.9%) -4
Slide 14: Pachislot Machines Business
Pachislot Machines Business ©2009,2011 BIGWEST/MACROSS F PROJECT 1Q 2Q 3Q 3Q 4Q Pachislot Macross DELTA x 42 Pachislot Symphogear NEON GENESIS EVANGELION - Resonance of souls - New Title x4 x 44 Pachislot Macross Frontier Sales of - units - units 2,367 units 17 units Unit FY 3/2022 Forecast Progress
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 P24 © 2021 SANKYO CO., LTD. 15
Slide 16: Pachinko Market
Pachinko Market 1,000 thousand units Sales Volume Sales volume forecast FY2022： Thousand units 1,100 thousand units (April 1, 2021 to March 31,2022) Total number 2,100 of units sold Approx. 600 thousand units YoY Approx. +145％ （4 titles sold 30,000 units or more. (April to September, 2021) 1,800 (Ap
Slide 17: Pachislot Market
Pachislot Market 400 thousand units Sales Volume Sales volume forecast FY2022： Thousand units 600 (April 1, 2021 to March 31,2022) thousand units Total number 1,000 of units sold Approx. 220 thousand units YoY Approx. +36％ （2 titles sold 20,000 units or more. (April to September, 2021) (April to Sep
Slide 18: Status of Install of the Machines with the former regulations
Status of Install of the Machines with the former regulations Schedule of Removal of the Machines with the former regulations Parlors are going to remove all the machines with the former regulations by January, 2022 in stages. Target： Pachinko：About 440 thousand units Pachislot： About 570 thousand
Slide 19: Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets
Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets Capture of the demand for new models due to the deadline for the removal of machines compliant with the former regulations is January 31, 2022. Keep up with the sales schedule as planned, while minimizing the impact of the semic
Slide 20: The 15th title of Evangelion series
The 15th title of “Evangelion” series (launch in December, 2021) New pachinko frame “BIG IMPACT” • One of the industryʼs largest movable gimmicks • Lever-type gimmick “IMPACT Lever” to make the presentation more exciting Equipped with ”Smart Handle” which is the first time in the industry. • The
Slide 21: Regarding the Repurchase of Own Shares
Regarding the Repurchase of Own Shares ( disclosed in November 8, 2021) We decided to acquire treasury shares as a flexible shareholder return policy in view of the financial results forecast, the level of the stock price and other factors in addition to the payment of dividends on a stable and co
Slide 22: Results of acquisition and cancellation of treasury shares so far
Results of acquisition and cancellation of treasury shares so far 【Purchase of treasury stock】 【Disposal of treasury stock】 Board of Directors' Number of shares Number of shares meeting Purchase period Disposal date purchased disposed June 13, 2008 June 24, 2008 1,000,000 8,290,200 shares June 11, 2
Slide 23: Appendix
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, P16 And Initiatives of SANKYO Appendix P24 © 2021 SANKYO CO., LTD. 23
Slide 24: Business Results for the First Six Months of FY 3/2022
Business Results for the First Six Months of FY 3/2022 FY 3/2021 FY 3/2022 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 25,332 28,061 +2,729 73,000 17,960 7,372 15,668 17,129 58,129 10,932 17,129 Pachinko 22,384 25,670 +3,286 56,
Slide 25: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2021 FY 3/2022 Forecast FY 3/2021 FY 3/2022 Consolidated 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 GP Margin 49.5% 53.2% +3.7pt 52.7% 51.0% 46.0% 57.6% 53.4% 52.9% 56.3% 51.2% OP Margin 4.3% 10.4% +6.1pt 12.2% 20.9% (36.2%) 20.2% 13.6% 11.3%
Slide 26: Pachinko Machines Business
Pachinko Machines Business FY 3/2021 FY 3/2022 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 22,384 25,670 +3,286 56,700 16,952 5,432 14,668 15,258 52,310 9,189 16,481 Operating Income 4,737 6,501 +1,764 10,900 5,408 (671) 5,062 3
Slide 27: Pachislot Machines Business
Pachislot Machines Business FY 3/2021 FY 3/2022 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 1,513 1,131 -382 11,500 210 1,303 185 1,324 3,022 1,029 102 Operating Income (1,319) (1,469) -150 2,000 (722) (597) (838) 267 (1,890) (3
Slide 28: Financial Indicates
Financial Indicates million yen FY 3/2015 FY 3/2016 FY 3/2017 FY 3/2018 FY 3/2019 FY 3/2020 FY 3/2021 FY 3/2022E Net Sales 146,579 137,130 81,455 86,220 88,558 78,416 58,129 73,000 Operating Income 13,233 18,826 5,059 10,181 21,286 12,551 6,587 8,900 Recurring Income 14,870 19,965 3,832 11,319 22,30
Slide 29: 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 2,833 2,749 2,637 2,557 11,000 3,000 2,500 2,432 10,000 2,500 2,000 2,254 2,246 2,244 2,245 2,232 2,219 2,187 2,179 2,172 2,160 2,157 2,149 9,000 1,691 1,687 1,66
Slide 30: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2016 2017 2018 2019 2020 2021J‐S 2016 17,046 Sales per title (Left) 93 Number of titles Applicant 864 875 711 945 912 753 2017 15,793 90 Pass 396 361 336 430 295 235 Fail 458 463 333 560 499 431 2018
Slide 31: Amendment of internal regulations after machine regulations amendment in 2018
Regarding the amendment of internal regulations after the amendment machine regulations in 2018 2018 2020 Aug. Advent of pachinko machines with payout Change in the “Standards for Interpretation Jan. settings of Technical Standards” （Apply：January, 2020〜） Nov. Pachinko new internal regulations （Appl
Slide 32: 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