Slide 1: Presentation on Business Results for the First Nine Months of FY 3/2023
Presentation on Business Results for the First Nine Months of FY 3/2023 (April 1, 2022 to December 31, 2022) February 8, 2023 SANKYO CO., LTD. Prime Market of the TSE #6417
Slide 2: Contents
Contents Overview of Financial Results P3 Overview of Business P13 Surroundings of Pachinko and Pachislot Industry, P18 And Initiatives of SANKYO Appendix P22 © 2023 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 steady increases in sales volumes, maintaining the momentum of the first half. Recording of extraordinary gains amounting to 6,068 million yen , partly owing to the
Slide 4: Summary of Financial Results
Summary of Financial Results Although the pachinko market remains stable machine utilization and purchasing Pachinko demand, a short-term shift in demand to pachislot machines has been seen against the backdrop of an improvement in the pachislot market. Pachislot Market Pachislot market have bee
Slide 5: Revision of the Forecast of the Financial Results for the Year Ending March 31, 2023
Revision of the Forecast of the Financial Results for the Year Ending March 31, 2023 (Disclosed in February 8, 2023) Sales volume of pachinko machines remained brisk up to the third quarter. Moreover, sales volume of pachinko machines in the fourth quarter, which has been cautiously estimated, is
Slide 6: Revision of the Forecast of the Dividend for the Year Ending March 31, 2023
Revision of the Forecast of the Dividend for the Year Ending March 31, 2023 (Disclosed in February 8, 2023) The company revises dividend forecast for year-end dividend per share to 90 yen, an increase of 30 yen from the previous forecast. Annual total cash dividends per share for the fiscal year e
Slide 7: Summary of Financial Results
Summary of Financial Results million yen FY 3/2022 3Q FY 3/2023 3Q YoY FY 3/2023 Forecast Net Sales 70,344 128,065 +57,721 +82.1% 155,000 Pachinko Machines Business 61,777 103,570 +41,793 +67.7% 121,600 Pachislot Machines Business 5,635 14,176 +8,541 +151.6% 22,100 Cost of Sales 30,471 55,374 +24,90
Slide 8: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales Million yen Pachislot Pachinko Machines Machines Business +7,397 ‐10 Business +8,541 Other 128,065 +41,793 Ball Bearing Business Supply Business 70,344 FY3/2022 3Q FY3/2023 3Q +57,721 million yen（+82.1%） © 2023 SANKYO CO., LTD. 8
Slide 9: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income Million yen Advertising expenses decreases Sales R&D commission expenses +5,820 +232 increases increases Other factors +27,839 ‐1,788 ‐1,869 The gross profit ‐2,229 48,039 of the pachislot The gross profit machine sales of the pachinko increases mac
Slide 10: Costs and Expenses
Costs and Expenses million yen FY 3/2022 3Q FY 3/2023 3Q YoY FY 3/2023 Forecast SG & A Expenses 19,838 24,651 +4,813 +24.3% 33,000 Advertising Expenses 1,443 1,211 -232 -16.1% 1,876 Sales Commission 3,801 5,589 +1,788 +47.0% 6,064 R&D Expenses 8,332 10,201 +1,869 +22.4% 14,614 Salaries & Wages 2,134
Slide 11: Summary of Balance Sheet
Summary of Balance Sheet million yen As of 31-Mar-22 As of 30-Dec-22 YoY Factors of Change Total current assets 264,859 317,349 +52,490 Increases in cash and deposits and notes and accounts Quick assets 250,242 295,989 +45,747 receivable‐trade, and contract assets Total fixed assets 44,353 41,766 ‐2
Slide 12: Overview of Business
Contents Overview of Financial Results P3 Overview of Business P13 Surroundings of Pachinko and Pachislot Industry, P18 And Initiatives of SANKYO Appendix P22 © 2023 SANKYO CO., LTD. 12
Slide 13: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2022 3Q FY 3/2023 3Q YoY FY 3/2022 1st Nine Months (Apr‐Dec) 61,777 Net Sales 61,777 103,570 +41,793 Sales volume of SANKYO-brand Operating Income 22,459 45,164 +22,705 and JB-brand pachinko machines +22,419
Slide 14: 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）/ ©カラー TM & © TOHO CO., LTD. ©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 -O
Slide 15: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data Million yen million yen FY 3/2022 3Q FY 3/2023 3Q YoY FY 3/2022 1st Nine Months (Apr‐Dec) 5,635 Net Sales 5,635 14,176 +8,541 Operating Income 539 6,338 +5,799 Sales volume of SANKYO-brand +7,587 Percentage 9.6% 44.7% pachislot machines
Slide 16: Pachislot Machines Business
Pachislot Machines Business ©創通・サンライズ 1Q 1Q 2Q 3Q 4Q Pachislot Aquarion ALL STARS x4 L Pachislot Valvrave the Liberator Pachislot MOBILE SUIT GUNDAM UNICORN New Title （Resale） x3 x4 L Pachislot Valvrave the Liberator Sales of 1,254 units 8,836 units 19,968 units - units Unit FY 3/2023 Forecast Progr
Slide 17: Surroundings of Pachinko and Pachislot Industry, and Initiatives of SANKYO
Contents Overview of Financial Results P3 Overview of Business P13 Surroundings of Pachinko and Pachislot Industry, And Initiatives of SANKYO P18 Appendix P22 © 2023 SANKYO CO., LTD. 17
Slide 18: 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. 760 thousand units YoY Approx. -16％ （2 titles sold 30,000 units or more. (April to December, 2022) (April to December)） 1,800 To
Slide 19: 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. 480 thousand units YoY Approx. +3％ （5 titles sold 20,000 units or more. (April to December, 2022) (April to December)） 800 Total
Slide 20: 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
Slide 21: Appendix
Contents Overview of Financial Results P3 Overview of Business P13 Surroundings of Pachinko and Pachislot Industry, P18 And Initiatives of SANKYO Appendix P22 © 2023 SANKYO CO., LTD. 21
Slide 22: Business Results for the First Nine Months of FY 3/2023
Business Results for the First Nine Months of FY 3/2023 FY 3/2022 FY 3/2023 Forecast FY 3/2022 FY 3/2023 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 70,344 128,065 +57,721 155,000 10,932 17,129 42,283 14,513 84,857 27,763 42,200 58,102 Pachinko 61,777 10
Slide 23: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2022 FY 3/2023 Forecast FY 3/2022 FY 3/2023 Consolidated 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 GP Margin 56.7% 56.8% +0.1pt 56.8% 56.3% 51.2% 59.0% 54.8% 56.4% 56.0% 59.7% 55.0% OP Margin 28.5% 37.5% +9.0pt 35.5% 7.0% 12.5% 40.5% 9.1%
Slide 24: Pachinko Machines Business
Pachinko Machines Business FY 3/2022 FY 3/2023 Forecast FY 3/2022 FY 3/2023 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 61,777 103,570 +41,793 121,600 9,189 16,481 36,107 10,083 71,860 26,431 36,590 40,549 Operating Income 22,459 45,164 +22,705 50,900 1,
Slide 25: Pachislot Machines Business
Pachislot Machines Business FY 3/2022 FY 3/2023 Forecast FY 3/2022 FY 3/2023 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 5,635 14,176 +8,541 22,100 1,029 102 4,504 3,256 8,891 628 4,123 9,425 Operating Income 539 6,338 +5,799 8,900 (338) (1,131) 2,008 64
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 84,857 155,000 Operating Income 18,826 5,059 10,181 21,286 12,551 6,587 21,357 55,000 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 1,572 2,110 2,080 2,065 2,059 2,050 2,044 2,044 2,034 2,024 1,47
Slide 28: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2017 2018 2019 2020 2021 2022J‐D 2017 90 Applicant 875 711 945 912 990 910 2018 116 Pass 361 336 430 295 313 230 2019 97 Fail 463 333 560 499 598 669 2020 63 SANKYO Group (Number of Pa s s ) 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