Slide 1: Presentation on Business Results of FY 3/2024
Presentation on Business Results of FY 3/2024 (April 1, 2023 to March 31, 2024) May 9, 2024 SANKYO CO., LTD. Prime Market of the TSE #6417
Slide 2: Contents
Contents Overview of Financial Results P3 Overview of Business P11 FY 3/2025 Forecast P18 Appendix P32 © 2024 SANKYO CO., LTD. 2
Slide 3: Financial Highlights
Financial Highlights Sales volumes of pachinko and pachislot machines increased, resulting in increases in net sales and profits from the previous fiscal year. Profit attributable to owners of parent hit record-highs for two consecutive years. Net Sales 199,099 million yen YoY +26.6 % Consolidat
Slide 4: Summary of Financial Results
Summary of Financial Results In the pachinko market, the total sales volume of pachinko machines fell below that of Pachinko the previous fiscal year as the machine utilization was slightly sluggish due to the prevalence of the popular pachislot (Smart Pachislot) machines. Pachislot In the pachi
Slide 5: Summary of Financial Results
Summary of Financial Results million yen FY 3/2023 FY 3/2024 YoY Net Sales 157,296 199,099 +41,803 +26.6% Pachinko Machines Business 122,576 147,042 +24,466 +20.0% Pachislot Machines Business 22,551 32,143 +9,592 +42.5% Cost of Sales 66,380 88,420 +22,040 +33.2% Gross Profit 90,916 110,679 +19,763 +
Slide 6: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Ball Bearing Pachislot Supply Pachinko Other Machines Business Machines Business Business Business +7,504 +241 +9,592 +24,466 199,099 157,296 FY3/2023 FY3/2024 +41,803 million yen（+26.6%） © 2024 SANKYO CO., LTD. 6
Slide 7: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen Ball Bearing Pachislot Supply Machines Advertising Sales Business Pachinko Business expenses commission R&D Machines +1,021 increases increases expenses Business +7,232 increases Other factors +11,371 ‐674 ‐3,278 ‐1,001 ‐708 72,495 58,53
Slide 8: Costs and Expenses
Costs and Expenses million yen FY 3/2023 FY 3/2024 YoY SG & A Expenses 32,383 38,184 +5,801 +17.9% Advertising Expenses 1,739 2,413 +674 +38.8% Sales Commission 6,095 9,373 +3,278 +53.8% R&D Expenses 14,295 15,296 +1,001 +7.0% Salaries & Wages 2,988 3,542 +554 +18.5% Depreciation & Amortization 1,83
Slide 9: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-23 As of 31-Mar-24 YoY Main Factors of Change Total current assets 321,797 251,465 ‐70,332 Quick assets 295,714 228,789 ‐66,925 Decrease due to the repurchase of treasury stock Total fixed assets 44,153 40,654 ‐3,499 Investment securities 11,436 6,60
Slide 10: Contents
Contents Overview of Financial Results P3 Overview of Business P11 FY 3/2025 Forecast P18 Appendix P32 © 2024 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 FY 3/2024 YoY FY 3/2023 (Apr‐Mar) 122,576 Net Sales 122,576 147,042 +24,466 Sales volume of SANKYO-brand Operating Income 54,223 61,165 +6,942 and JB-brand pachinko machines ‐11,605 decreases. Percentage
Slide 12: Pachinko Machines Business
Pachinko Machines Business ©⼤久保篤／講談社 ©⼤久保篤・講談社／特殊消防隊動画広報課 ©創通・サンライズ ©カラー ©SUNRISE/VVV Committee 1Q 2Q 3Q 4Q Fever QueenⅡ Fever ENN ENN NO SHOUBOUTAI 30th ANNIVERSARY EDITION Fever Kaguya-sama: Love Is War Fever Valvrave the Liberator 3 New Title CODE GEASS Lelouch of the Rebellion -Rebellion to Re;
Slide 13: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2023 FY 3/2024 YoY FY 3/2023 (Apr‐Mar) 22,551 Net Sales 22,551 32,143 +9,592 Sales volume of SANKYO-brand Operating Income 9,280 15,289 +6,009 +4,752 pachislot machines increases. Percentage 41.2% 47.6% +6.4
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）/ ©2009,2011 BIGWEST/MACROSS F PROJECT ©カラー TM & © TOHO CO., LTD. ©⼤久保篤・講談社／特殊消防隊動画広報課 ©藤⽥和⽇郎・⼩学館／ツインエンジン Licensed by Sony Music Labels Inc. 1Q 2Q 3Q 4Q New Title Pachislot ENN ENN NO x4 x 44 L Pachislot Karakuri Circus x5 SHOU
Slide 15: Pachinko Machines Market Share (unit basis)
Pachinko Machines Market Share (unit basis) 40% 35% SANKYO 30% 25% 20% 15% □Sanyo △Newgin 10% ＋Sammy ◇Sansei R&D 5% 0% 2018 2019 2020 2021 2022 2023 Source: Yano Research Institute ※2023：Estimate of SANKYO © 2024 SANKYO CO., LTD. 15
Slide 16: Pachislot Machines Market Share (unit basis)
Pachislot Machines Market Share (unit basis) 30% 25% 20% Universal 15% Sammy Daito 10% SANKYO Kitac 5% 0% 2018 2019 2020 2021 2022 2023 Source: Yano Research Institute ※2023：Estimate of SANKYO © 2024 SANKYO CO., LTD. 16
Slide 17: Contents
Contents Overview of Financial Results P3 Overview of Business P11 FY 3/2025 Forecast P18 Appendix P32 © 2024 SANKYO CO., LTD. 17
Slide 18: Pachinko Market
Pachinko Market Sales volume forecast FY3/2025： 800 thousand units Sales Volume (April 1, 2024 to March 31, 2025) Total number of units sold FY3/2024： 850 units YoY Approx.-19.2％ thousand Thousand units (April 1, 2023 to March 31, 2024) （4 titles sold 30,000 units or more. ） 1,800 Total sales volu
Slide 19: Pachislot Market
Pachislot Market Sales volume forecast FY3/2025： 880 thousand units Sales Volume (April 1, 2024 to March 31, 2025) Total number of units sold FY3/2024：790 units YoY Approx.+13.1％ thousand Thousand units 1,000 (April 1, 2023 to March 31, 2024) （7 titles sold 20,000 units or more. ） 880 790 Total sa
Slide 20: Financial Forecasts
Financial Forecasts Given the market environment, we expect the sales volume of pachinko machines to be lower year on year, while the sales volume of pachislot machines is expected to be higher year on year. We aim to achieve the top share for three consecutive years in the pachinko machines bus
Slide 21: Summary of Financial Forecasts
Summary of Financial Forecasts FY 3/2025 million yen FY 3/2024 Forecast YoY Net Sales 199,099 180,000 -19,099 -9.6% Pachinko Machines Business 147,042 117,800 -29,242 -19.9% Pachislot Machines Business 32,143 51,600 +19,457 +60.5% Cost of Sales 88,420 77,500 -10,920 -12.4% Gross Profit 110,679 102,5
Slide 22: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Pachinko Machines Business Pachislot Ball Bearing 199,099 ‐29,242 Machines Supply Business Business Other Business +19,457 ‐9,297 ‐16 180,000 FY3/2024 FY3/2025 -19,099 million yen（-9.6%） © 2024 SANKYO CO., LTD. 22
Slide 23: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen Pachinko Machines Business Pachislot Ball Bearing Advertising Machines Supply expenses 72,495 ‐20,772 Business Business increases +3,180 Other factors ‐814 ‐540 ‐4,933 +13,368 Sales ‐984 commission R&D 61,000 decreases expenses increases
Slide 24: Costs and Expenses
Costs and Expenses FY 3/2025 million yen FY 3/2024 Forecast YoY SG & A Expenses 38,184 41,500 +3,316 +8.7% Advertising Expenses 2,413 2,953 +540 +22.4% Sales Commission 9,373 6,193 -3,180 -33.9% R&D Expenses 15,296 20,229 +4,933 +32.3% Salaries & Wages 3,542 3,377 -165 -4.7% Depreciation & Amortizat
Slide 25: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data Million yen FY 3/2025 million yen FY 3/2024 Forecast YoY FY 3/2024 (Apr‐Mar) 147,042 Net Sales 147,042 117,800 -29,242 Operating Income 61,165 40,500 -20,665 Sales volume of SANKYO-brand and JB-brand pachinko +8,093 Percentage 41.6% 34.4
Slide 26: Pachinko Machines Business
Pachinko Machines Business ©2009,2011,2021 BIGWEST/MACROSS F PROJECT 1Q 2Q 2Q以降 New Title P/e Fever Macross Frontier 5 Fever ARIFURETA SYOKUGYOU DE xx54 SEKAISAIKYOU Light ver. x9 Fever SANGOKU SENKI 7500 x2 Reused Fever ENN ENN NO SHOUBOUTAI Models Light ver. Sales of Unit - units - units Forecast
Slide 27: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen FY 3/2025 FY 3/2024 million yen FY 3/2024 Forecast YoY (Apr‐Mar) 32,143 Net Sales 32,143 51,600 +19,457 Sales volume of SANKYO-brand Operating Income 15,289 26,300 +11,011 pachislot machines increases. +17,954 Percentage 47.
Slide 28: Pachislot Machines Business
Pachislot Machines Business ©⼤久保篤／講談社 ©Project シンフォギアGX ©⼤久保篤・講談社／特殊消防隊動画広報課 ©Project シンフォギアAXZ 1Q 2Q 2Q以降 L Pachislot ENN ENN NO L Pachislot Symphogear “Seigi x no4Uta" x4 3 SHOUBOUTAI New Title x7 (Resale) L Pachislot Valvrave the Liberator x2 (Resale) L Godzilla vs EVANGELION (Resale) L Pachislot
Slide 29: Initiatives of SANKYO in FY 3/2025
Initiatives of SANKYO in FY 3/2025 Pachinko Machines Business Achieving the top sales share for three consecutive years. Generating titles that drive machine utilization, whether for Smart Pachinko machines or conventional pachinko machines. Fully leveraging the Groupʼs competitive edge in dev
Slide 30: About The Return of Profits to Shareholders
About The Return of Profits to Shareholders Cash dividend Dividend Policy The performance-linked dividends targeted at the consolidated payout ratio of 40% FY3/2025 Forecasts \80 per share（interim dividend: undecided） Repurchase of own shares Agilely judged in consideration of the following elem
Slide 31: Contents
Contents Overview of Financial Results P3 Overview of Business P11 FY 3/2025 Forecast P18 Appendix P32 © 2024 SANKYO CO., LTD. 31
Slide 32: Business Results for the Full Year of FY 3/2024
Business Results for the Full Year of FY 3/2024 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2023 FY 3/2024 Consolidated:milion yen Full year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 157,296 199,099 +41,803 180,000 27,763 42,200 58,102 29,231 50,777 65,413 54,398 28,511 Pachinko 122,576 147,04
Slide 33: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2023 FY 3/2024 Consolidated Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GP Margin 57.8% 55.6% -2.2pt 56.9% 56.0% 59.7% 55.0% 62.4% 55.8% 55.3% 55.1% 56.8% OP Margin 37.2% 36.4% -0.8pt 33.9% 34.1% 40.2% 37.2% 3
Slide 34: Pachinko Machines Business
Pachinko Machines Business FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2023 FY 3/2024 Consolidated:milion yen Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 122,576 147,042 +24,466 117,800 26,431 36,590 40,549 19,006 34,887 47,220 47,733 17,202 Operating Income 54,223 61,165 +6,942 40,500
Slide 35: Pachislot Machines Business
Pachislot Machines Business FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2023 FY 3/2024 Consolidated:milion yen Full Year Full Year YoY Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales 22,551 32,143 +9,592 51,600 628 4,123 9,425 8,375 9,056 12,630 1,490 8,967 Operating Income 9,280 15,289 +6,009 26,300 (289) 1,328
Slide 36: 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 3/2024 Net Sales 81,455 86,220 88,558 78,416 58,129 84,857 157,296 199,099 Operating Income 5,059 10,181 21,286 12,551 6,587 21,357 58,532 72,495 Recurring Income 3,832 11,319 22,300 13,476 7,488
Slide 37: Pachinko/Pachislot Machine Market
Pachinko/Pachislot Machine Market Market size Situation of parlors that are members of Zennichiyuren in the last year 3,000 3,500 12,000 3,000 2,500 2,432 2,338 2,205 10,000 2,077 2,500 2,000 8,000 1,969 1,957 1,952 1,947 1,931 2,000 1,920 1,909 1,901 1,897 1,890 1,881 1,868 1,572 1,475 1,500 1,358
Slide 38: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2019 2020 2021 2022 2023 2024J‐M 2018 116 Applicant 945 912 990 910 912 209 2019 97 Pass 430 295 313 230 186 58 Fail 560 499 598 669 666 134 2020 63 2021 SANKYO Group (Number of Pa s s ) 87 SANKYO+JB
Slide 39: Contact Us
Contact Us Investor Relations Office 【Notes on forward-looking statements】 The purpose of this document is to provide information on the material, and is not intended as a solicitation for Corporate Planning Division investment or any similar action. Please note that actual investment decisions shou