Sankyo Co., Ltd. · TSE:6417
Sankyo — Q1 FY3/2023 Earnings Presentation
29 slides from Sankyo's earnings presentation, Aug 4, 2022
Slide 1: Presentation on Business Results for the First Quarter of FY 3/2023
Presentation on Business Results for the First Quarter of FY 3/2023 (April 1, 2022 to June 30, 2022) August 4, 2022 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 © 2022 SANKYO CO., LTD. 2
Slide 3: Financial Highlights
Financial Highlights Substantial 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 machines. Sales volumes of certain titles exceeded the plan. Good start for the achievement of the full-year financial fore
Slide 4: Summary of Financial Results
Summary of Financial Results The protracted shortage of semiconductors and other electronic components has had a substantial impact on the launch schedules of pachinko and pachislot machine manufacturers. Pachinko Pachislot The total number of units of pachinko machines sold did not grow, mainly
Slide 5: Summary of Financial Results
Summary of Financial Results million yen FY 3/2022 1Q FY 3/2023 1Q YoY FY 3/2023 Forecast Net Sales 10,932 27,763 +16,831 +154.0% 110,000 Pachinko Machines Business 9,189 26,431 +17,242 +187.6% 93,400 Pachislot Machines Business 1,029 628 -401 -39.0% 11,300 Cost of Sales 4,779 12,221 +7,442 +155.7%
Slide 6: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen +17,242 ‐401 ‐3 ‐7 Pachislot 27,763 Ball Bearing Other Machines Supply Business Pachinko Business Business Machines Business 10,932 FY3/2022 1Q FY3/2023 1Q +16,831 million yen（+154.0%） © 2022 SANKYO CO., LTD. 6
Slide 7: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen +370 ‐165 ‐411 +9,895 ‐167 ‐835 Advertising Sales R&D expenses commission expenses decreases increases 9,455 The gross profit increases of the pachislot Other factors machine sales decreases The gross profit of the pachinko machine sales
Slide 8: Costs and Expenses
Costs and Expenses million yen FY 3/2022 1Q FY 3/2023 1Q YoY FY 3/2023 Forecast SG & A Expenses 5,385 6,086 +701 +13.0% 32,200 Advertising Expenses 571 201 -370 -64.8% 2,306 Sales Commission 285 450 +165 +57.9% 5,238 R&D Expenses 2,558 2,969 +411 +16.1% 14,970 Salaries & Wages 573 622 +49 +8.6% 2,33
Slide 9: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-22 As of 30-Jun-22 YoY Factors of Change Total current assets 264,859 262,482 ‐2,377 Decrease in cash and deposits and notes and accounts Quick assets 250,242 246,590 ‐3,652 receivable‐trade, and contract assets Total fixed assets 44,353 43,084 ‐1,26
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 P22 © 2022 SANKYO CO., LTD. 10
Slide 11: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2022 1Q FY 3/2023 1Q YoY FY 3/2022 1st Quarter (Apr‐Jun) 9,189 Net Sales 9,189 26,431 +17,242 Sales volume of SANKYO-brand Operating Income 1,981 10,963 +8,982 and JB-brand pachinko machines +16,242 increases
Slide 12: Pachinko Machines Business
Pachinko 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コミックス刊）/ ©⼤森藤ノ・SBクリエイティブ/ダンまち2製作委員会 ©藤⽥和⽇郎・⼩学館／ツインエンジン Licensed by Sony Music Labels Inc. ©Project シンフォギアＧＸ ©Project シンフォギアAXZ 1Q 1Q 2Q 3Q-4Q New Title Fever Danmachi Fever Star Blazers: Space Battleship Yamato 2202 -ONLY ONE- Fever Macross Fron
Slide 13: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2022 1Q FY 3/2023 1Q YoY FY 3/2022 1st Quarter (Apr‐Jun) 1,029 Net Sales 1,029 628 -401 Operating Income (338) (289) +49 Sales volume of SANKYO-brand ‐461 Percentage (32.8%) (46.0%) pachislot machines decrea
Slide 14: Pachislot Machines Business
Pachislot Machines Business 1Q 1Q 2Q 3Q-4Q Pachislot Aquarion ALL STARS xx 14 New Title x3 x1 Sales of - units 1,254 units - units Unit FY 3/2023 Forecast Progress 1,254台（4.2 %） 30,000 units © 2022 SANKYO CO., LTD. ※ Introduction of titles is in line with the current plan to date, but may be subject
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 P22 © 2022 SANKYO CO., LTD. 15
Slide 16: Pachinko Market
Pachinko Market Sales Volume Sales volume forecast FY2023： 1,000 thousand units Thousand units (April 1, 2022 to March 31, 2023) Total number 2,100 of units sold Approx. 200 thousand units YoY Approx. -30％ （0 titles sold 30,000 units or more. (April to June, 2022) (April to June)） 1,800 Total sale
Slide 17: Pachislot Market
Pachislot Market Sales Volume Sales volume forecast FY2023： 600 thousand units Thousand units (April 1, 2022 to March 31, 2023) Total number 1,000 of units sold Approx. 80 thousand units YoY Approx. -25％ （0 titles sold 20,000 units or more. (April to June, 2022) (April to June)） 800 753 Total sale
Slide 18: Initiatives of SANKYO in the Pachinko and Pachislot Machine Markets
Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets Aim to increase the Groupʼs share of sales in the pachinko market and improve the Groupʼs presence in the pachislot market Implement all possible measures to deal with the shortage of electronic components and achieve business p
Slide 19: Launch of models featuring new IPs
Launch of models featuring new IPs Launch of several new models featuring new IPs that the Group hopes to make into future main product series. In FY 3/2023, the Group released first new IP title “Fever Danmachi” and second title “Fever Karakuri circus” and also plan to release new IPs titles in
Slide 20: About Smart Pachinko Machines/ Smart Pachislot Machines
About Smart Pachinko Machines/ Smart Pachislot Machines Differentiation of gaming performance from current models (excerpts) Smart Pachinko ・Lower limit of jackpot probability: Changed from 1/320 for current models to 1/350 ・Relaxation of performance in time-shortening mode Smart Pachislot ・Uppe
Slide 21: Appendix
Contents Overview of Financial Results P3 Overview of Business P11 Surroundings of Pachinko and Pachislot Industry, P16 And Initiatives of SANKYO Appendix P22 © 2022 SANKYO CO., LTD. 21
Slide 22: Business Results for the First Quarter of FY 3/2023
Business Results for the First Quarter of FY 3/2023 FY 3/2023 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 27,763 +16,831 110,000 17,960 7,372 15,668 17,129 58,129 10,932 17,129 42,283 14,513 84,857 Pachinko 26,431 +17,242 93,400 16,95
Slide 23: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2023 Forecast FY 3/2021 FY 3/2022 Consolidated Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY GP Margin 56.0% -0.3pt 55.6% 51.0% 46.0% 57.6% 53.4% 52.9% 56.3% 51.2% 59.0% 54.8% 56.4% OP Margin 34.1% +27.0pt 26.4% 20.9% (36.2%) 20.2% 13.6% 11.3% 7.0% 12
Slide 24: Pachinko Machines Business
Pachinko Machines Business FY 3/2023 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 26,431 +17,242 93,400 16,952 5,432 14,668 15,258 52,310 9,189 16,481 36,107 10,083 71,860 Operating Income 10,963 +8,982 31,900 5,408 (671) 5,062 3,117 1
Slide 25: Pachislot Machines Business
Pachislot Machines Business FY 3/2023 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen Q1 YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Net Sales 628 -401 11,300 210 1,303 185 1,324 3,022 1,029 102 4,504 3,256 8,891 Operating Income (289) +49 1,900 (722) (597) (838) 267 (1,890) (338) (1,131) 2,008
Slide 26: Financial Indicates
Financial Indicates million yen FY 3/2016 FY 3/2017 FY 3/2018 FY 3/2019 FY 3/2020 FY 3/2021 FY 3/2022 FY 3/2023E Net Sales 137,130 81,455 86,220 88,558 78,416 58,129 84,857 110,000 Operating Income 18,826 5,059 10,181 21,286 12,551 6,587 21,357 29,000 Recurring Income 19,965 3,832 11,319 22,300 13,4
Slide 27: 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 2,749 2,637 2,557 11,000 3,000 2,500 2,432 2,338 10,000 2,500 2,000 9,000 1,687 1,665 1,637 2,000 2,157 2,149 2,137 2,134 2,127 2,130 1,572 2,110 2,080 2,065 2,05
Slide 28: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2017 2018 2019 2020 2021 2022J‐J 2017 90 Applicant 875 711 945 912 990 443 2018 116 Pass 361 336 430 295 313 119 Fail 463 333 560 499 598 300 2019 97 SANKYO Group (Number of Pa s s ) 2020 63 SANKYO+J
Slide 29: 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