Sankyo Co., Ltd. · TSE:6417
Sankyo — Q3 FY3/2022 Earnings Presentation
29 slides from Sankyo's earnings presentation, Feb 8, 2022
Slide 1: Presentation on Business Results for the First Nine Months of FY 3/2022
Presentation on Business Results for the First Nine Months of FY 3/2022 (April 1, 2021 to December 31, 2021) February 8, 2022 SANKYO CO., LTD. 1st Sec. of the TSE #6417
Slide 2: Contents
Contents Overview of Financial Results P3 Overview of Business P12 Surroundings of Pachinko and Pachislot Industry, P17 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 and pachislot machines. The two major pachinko titles led the favorable performance. Net Sales 70,344 million yen
Slide 4: Summary of Financial Results
Summary of Financial Results There have been some impacts of the worldwide semiconductor shortages, such as postponing the release of certain new models and restrictions on sales quantities. Pachinko The sales volume of pachinko machines was buoyant, partly supported by replacement Pachislot dem
Slide 5: Revision of the Forecast of the Financial Results for the Year Ending March 31, 2022
Revision of the Forecast of the Financial Results for the Year Ending March 31, 2022 Upward revision of the financial forecasts for the full year mainly due to robust sales of two titles, “Fever Mobile Suit Gundam Unicorn”, and “NEON GENESIS EVANGELION -Roar for tomorrow-”. We strategically post
Slide 6: Summary of Financial Results
Summary of Financial Results million yen FY 3/2021 3Q FY 3/2022 3Q YoY FY 3/2022 Forecast Net Sales 41,000 70,344 +29,344 +71.6% 83,600 Pachinko Machines Business 37,052 61,777 +24,725 +66.7% 71,500 Pachislot Machines Business 1,698 5,635 +3,937 +231.9% 8,800 Cost of Sales 19,428 30,471 +11,043 +56.
Slide 7: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Pachislot Ball Bearing Pachinko Machines Supply Machines Business Business Business Other Business FY3/2021 3Q FY3/2022 3Q +29,344 million yen（+71.6%） © 2022 SANKYO CO., LTD. 7
Slide 8: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen The gross profit of the pachislot machine sales Advertising Other factors expenses R&D increases expenses increases Sales decreases The gross profit commission of the pachinko increases machine sales increases FY3/2021 3Q FY3/2022 3Q +15
Slide 9: Costs and Expenses
Costs and Expenses million yen FY 3/2021 3Q FY 3/2022 3Q YoY FY 3/2022 Forecast SG & A Expenses 17,319 19,838 +2,519 +14.5% 27,000 Advertising Expenses 511 1,443 +932 +182.4% 1,808 Sales Commission 1,194 3,801 +2,607 +218.3% 4,505 R&D Expenses 8,787 8,332 -455 -5.2% 12,324 Salaries & Wages 2,305 2,1
Slide 10: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-21 As of 30-Dec-21 YoY Factors of Change Total current assets 243,343 272,777 +29,434 Decrease in cash and deposits, and increase in notes and Quick assets 234,738 257,828 +23,090 accounts receivable‐trade, and contract assets Inventories 4,268 5,322
Slide 11: Overview of Business
Contents Overview of Financial Results P3 Overview of Business P12 Surroundings of Pachinko and Pachislot Industry, P17 And Initiatives of SANKYO Appendix P22 © 2022 SANKYO CO., LTD. 11
Slide 12: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2021 3Q FY 3/2022 3Q YoY FY 3/2021 1st Nine Months (Apr‐Dec) 37,052 Net Sales 37,052 61,777 +24,725 Sales volume of SANKYO-brand Operating Income 9,799 22,459 +12,660 and JB-brand pachinko +5,955 machines inc
Slide 13: Pachinko Machines Business
Pachinko Machines Business xx 14 New Title x9→7 x1 Reused We strategically rescheduled the introduction of two titles, which was Models initially scheduled in 4Q, to the next fiscal year in order to focus on additional sales of major titles. 1Q 2Q1Q 3Q 4Q Fever Star Blazers: Space Fever Tiger Mask W
Slide 14: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen FY 3/2021 1st Nine Months (Apr‐Dec) million yen FY 3/2021 3Q FY 3/2022 3Q YoY 1,698 Net Sales 1,698 5,635 +3,937 Volume difference of Operating Income (2,157) 539 +2,696 SANKYO-brand pachislot 0 Percentage (127.0%) 9.6% mach
Slide 15: Pachislot Machines Business
Pachislot Machines Business ©カラー ©カラー／Project Eva. 1Q 2Q 3Q 3Q 4Q Pachislot Macross DELTA x4 Pachislot Symphogear NEON GENESIS EVANGELION "Yuki no Uta" - Resonance of souls - New Title x4→3 Pachislot Macross Frontier 4 Rescheduled for introduction after the next fiscal year to ensure compliance with
Slide 16: Surroundings of Pachinko and Pachislot Industry, and Initiatives of SANKYO
Contents Overview of Financial Results P3 Overview of Business P12 Surroundings of Pachinko and Pachislot Industry, And Initiatives of SANKYO P17 Appendix P22 © 2022 SANKYO CO., LTD. 16
Slide 17: Pachinko Market
Pachinko Market 1,100 thousand units Sales Volume Sales volume forecast FY2022： Thousand units 1,200 thousand units (April 1, 2021 to March 31,2022) Total number 2,100 of units sold Approx. 910 thousand units YoY Approx. +52％ （7 titles sold 30,000 units or more. (April to December, 2021) 1,800 (Apri
Slide 18: Pachislot Market
Pachislot Market 600 thousand units Sales Volume Sales volume forecast FY2022： Thousand units 700 (April 1, 2021 to March 31,2022) thousand units Total number 1,000 of units sold Approx. 460 thousand units YoY Approx. +67％ （5 titles sold 20,000 units or more. (April to December, 2021) (April to Dece
Slide 19: Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets
Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets In 4Q, through additional sales of major titles and by introducing reused models, we strove to capture last-minute demand in the run-up to the deadline for removal of machines compliant with the former regulations and will strive
Slide 20: Status of Repurchase of the Company's Own Shares
Status of Repurchase of the Companyʼs Own Shares ( As of January 31, 2022) 【Cumulative Number of Own Shares Repurchased】 (As of January 31,2022) Aggregate number of shares repurchased: 2,501,300 shares Aggregate amount of repurchase cost: 7,518 million yen 【Details of Share Repurchase】(Disclosed in
Slide 21: Appendix
Contents Overview of Financial Results P3 Overview of Business P12 Surroundings of Pachinko and Pachislot Industry, P17 And Initiatives of SANKYO Appendix P22 © 2022 SANKYO CO., LTD. 21
Slide 22: Business Results for the First Nine Months of FY 3/2022
Business Results for the First Nine Months of FY 3/2022 FY 3/2021 FY 3/2022 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 41,000 70,344 +29,344 83,600 17,960 7,372 15,668 17,129 58,129 10,932 17,129 42,283 Pachinko 37,052 61,77
Slide 23: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2021 FY 3/2022 Forecast FY 3/2021 FY 3/2022 Consolidated 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 GP Margin 52.6% 56.7% +4.1pt 56.8% 51.0% 46.0% 57.6% 53.4% 52.9% 56.3% 51.2% 59.0% OP Margin 10.4% 28.5% +18.1pt 24.5% 20.9% (36.2%) 20.2%
Slide 24: Pachinko Machines Business
Pachinko Machines Business FY 3/2021 FY 3/2022 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 37,052 61,777 +24,725 71,500 16,952 5,432 14,668 15,258 52,310 9,189 16,481 36,107 Operating Income 9,799 22,459 +12,660 23,900 5,408
Slide 25: Pachislot Machines Business
Pachislot Machines Business FY 3/2021 FY 3/2022 Forecast FY 3/2021 FY 3/2022 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 1,698 5,635 +3,937 8,800 210 1,303 185 1,324 3,022 1,029 102 4,504 Operating Income (2,157) 539 +2,696 700 (722) (597) (838) 267 (1,8
Slide 26: 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 83,600 Operating Income 13,233 18,826 5,059 10,181 21,286 12,551 6,587 20,500 Recurring Income 14,870 19,965 3,832 11,319 22,3
Slide 27: Pachinko/Pachislot Machine Market
Pachinko/Pachislot Machine Market Market size Situation of Parlors that Are Members of Zennichiyuren for recent a year No. of installed No. of installed Pachinko Pachinko Machines Machines No. of installed Pachislot Machines No. of installed Pachislot Machines No. of Shipped Pachinko Machines No. of
Slide 28: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2016 2017 2018 2019 2020 2021 2016 17,046 Sales per title (Left) 93 Number of titles Applicant 864 875 711 945 912 990 2017 15,793 90 Pass 396 361 336 430 295 313 Fail 458 463 333 560 499 598 2018 11
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