Sankyo Co., Ltd. · TSE:6417
Sankyo — H1 FY3/2025 Earnings Presentation
28 slides from Sankyo's earnings presentation, Nov 7, 2024
Slide 1: Presentation on Business Results for the First Half of FY 3/2025
Presentation on Business Results for the First Half of FY 3/2025 (April 1, 2024 to September 30, 2024) November 7, 2024 SANKYO CO., LTD. Prime Market of the TSE #6417 1
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 P21 © 2024 SANKYO CO., LTD. 2
Slide 3: Financial Highlights
Financial Highlights The progress against the earnings forecast of full year has been steadily good, despite of a decrease in net sales and profit, compared to the previous year. In the pachislot machines business, we achieved substantial increase in net sales and profit due to the buoyant sales
Slide 4: Summary of Financial Results
Summary of Financial Results In the pachinko market, signs of recovery of the market is shown by the emergence Pachinko of new gaming performance “Lucky Trigger” and Smart Pachinko machines equipped with new gaming performance. Pachislot In the pachislot market, although sales volume fell short
Slide 5: Summary of Financial Results
Summary of Financial Results (Million yen) FY 3/2024 2Q FY 3/2025 2Q YoY FY 3/2025 Forecast Net Sales 116,190 90,729 -25,461 -21.9% 180,000 Pachinko Machines Business 82,107 37,981 -44,126 -53.7% 117,800 Pachislot Machines Business 21,686 39,200 +17,514 +80.8% 51,600 Cost of Sales 51,687 36,516 -15,
Slide 6: Progress against the Forecasts of Financial Results FY 3/2025
Progress against the Forecasts of Financial Results FY 3/2025 Business Results for the First Half of FY 3/2025 Net Sales Progress (Million yen) 50.4% 90,729 180,000 Progressing well in line with the earning Operating Income forecasts 59.5% 36,288 61,000 (Net sales and profit) The progress of net s
Slide 7: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales (Million yen) Pachinko Machines Business Pachislot Ball Bearing 116,190 Machines Supply Other -44,126 Business Business Business +17,514 +1,070 +81 90,729 FY3/2024 2Q FY3/2025 2Q -25,461 million yen（-21.9%） © 2024 SANKYO CO., LTD. 7
Slide 8: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income (Million yen) Pachinko Machines Business Pachislot Ball Sales R&D 45,460 -23,281 Machines Bearing Advertising commission expenses Other expenses Business Supply decreases increases factors decreases business -1,231 +12,990 +2,337 -31 -10 +54 36,288
Slide 9: Costs and Expenses
Costs and Expenses (Million yen) FY 3/2024 2Q FY 3/2025 2Q YoY FY 3/2025 Forecast SG & A Expenses 19,042 17,924 -1,118 -5.9% 41,500 Advertising Expenses 1,627 1,573 -54 -3.3% 2,953 Sales Commission 3,828 1,491 -2,337 -61.1% 6,193 R&D Expenses 7,148 8,379 +1,231 +17.2% 20,229 Salaries & Wages 1,459 1
Slide 10: Summary of Balance Sheet
Summary of Balance Sheet (Million yen) As of 31-Mar-24 As of 30-Sep-24 YoY Main Factors of Change Total current assets 251,465 271,093 +19,628 Quick assets 228,790 237,889 +9,099 Total fixed assets 40,654 41,449 +795 Investment securities 6,601 5,869 -732 Total assets 292,119 312,543 +20,424 Increas
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 P21 © 2024 SANKYO CO., LTD. 11
Slide 12: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data (Million yen) (Million yen) FY 3/2024 2Q FY 3/2025 2Q YoY FY 3/2024 2nd Quarter (Apr-Sep) 82,107 Net Sales 82,107 37,981 -44,126 Sales volume of SANKYO-brand Operating Income 36,515 15,841 -20,674 and JB-brand pachinko machines -17,417 d
Slide 13: Pachinko Machines Business
Pachinko Machines Business New Title x9 Reused Models etc. ©創通・サンライズ 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）/ ©Project シンフォギアＧＸ ©カラー TM & © TOHO CO., LTD. ©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ＸＶ 1Q 2Q 3Q 4Q P/e Fever MOBILE SUIT GUNDAM UNICORN Fever Valvrave the Liberator
Slide 14: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data (Million yen) FY 3/2024 2nd Quarter (Million yen) FY 3/2024 2Q FY 3/2025 2Q YoY (Apr-Sep) 21,686 Net Sales 21,686 39,200 +17,514 Sales volume of SANKYO-brand Operating Income 11,483 23,272 +11,789 pachislot machines increases. +19,537 P
Slide 15: Pachislot Machines Business
Pachislot Machines Business ©⼤久保篤／講談社 ©Project シンフォギアGX ©2019 サンドロビッチ・ヤバ⼦，MAAM・⼩学館／シル ©Project シンフォギアAXZ ©⾚坂アカ／集英社・かぐや様は告らせたい製作委員会 ©⼤久保篤・講談社／特殊消防隊動画広報課 バーマンジム 1Q 2Q 3Q 4Q L Pachislot How Heavy Are the L Pachislot ENN ENN NO SHOUBOUTAI Dumbbells You Lift? x1 New Title x7 (Increased production) Pachis
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 P21 © 2024 SANKYO CO., LTD. 16
Slide 17: Pachinko Market
Pachinko Market Sales Volume (Thousand units) Sales volume forecast FY2025： 800 thousand units (April 1, 2024 to March 31, 2025) 1,500 Total number of units sold Approx. 430 thousand units YoY Approx. -13％ （6 titles sold 20,000 units or more. (April to September, 2024) 1,185 (April to September)） 1,
Slide 18: Pachislot Market
Pachislot Market Sales Volume Sales volume forecast FY2025： 880 thousand units (Thousand units) (April 1, 2024 to March 31, 2025) 1,000 Total number 880 of units sold Approx. 360 thousand units YoY Approx. -11％ （2 titles sold 20,000 units or more. (April to September, 2024) 781 (April to September)）
Slide 19: Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets
Initiatives of SANKYO in The Pachinko and Pachislot Machine Markets Aim to achieve the top share for three consecutive years in the pachinko market. Aim to become one of the companies in the top group in the pachislot market. Q1-Q2 From Q3 onward In the pachislot machines business, conducted
Slide 20: Appendix
Contents Overview of Financial Results P3 Overview of Business P12 Surroundings of Pachinko and Pachislot Industry, P17 And Initiatives of SANKYO Appendix P21 © 2024 SANKYO CO., LTD. 20
Slide 21: Business Results for the Second Quarter of FY 3/2025
Business Results for the Second Quarter of FY 3/2025 FY 3/2024 FY 3/2025 Forecast FY 3/2024 FY 3/2025 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 116,190 90,729 -25,461 180,000 50,777 65,413 54,398 28,511 199,099 42,210 48,519 Pachinko 82,107 37,981 -44,126
Slide 22: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2024 FY 3/2025 Forecast FY 3/2024 FY 3/2025 Consolidated 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 GP Margin 55.5% 59.8% +4.2pt 56.9% 55.8% 55.3% 55.1% 56.8% 55.6% 59.4% 60.0% OP Margin 39.1% 40.0% +0.9pt 33.9% 37.8% 40.2% 36.4% 25.4% 36.4%
Slide 23: Pachinko Machines Business
Pachinko Machines Business FY 3/2024 FY 3/2025 Forecast FY 3/2024 FY 3/2025 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 82,107 37,981 -44,126 117,800 34,887 47,220 47,733 17,202 147,042 17,866 20,115 Operating Income 36,515 15,841 -20,674 40,500 14,997 21,5
Slide 24: Pachislot Machines Business
Pachislot Machines Business FY 3/2024 FY 3/2025 Forecast FY 3/2024 FY 3/2025 Consolidated:milion yen 6 Months 6 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Net Sales 21,686 39,200 +17,514 51,600 9,056 12,630 1,490 8,967 32,143 16,610 22,590 Operating Income 11,483 23,272 +11,789 26,300 4,818 6,665 (40
Slide 25: Financial Indicates
Financial Indicates (Million yen) FY 3/2018 FY 3/2019 FY 3/2020 FY 3/2021 FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025E Net Sales 86,220 88,558 78,416 58,129 84,857 157,296 199,099 180,000 Operating Income 10,181 21,286 12,551 6,587 21,357 58,532 72,495 61,000 Recurring Income 11,319 22,300 13,476 7,488
Slide 26: 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 3,000 2,500 2,432 2,338 2,205 10,000 2,077 2,500 2,000 8,000 2,000 1,920 1,909 1,901 1,897 1,890 1,881 1,868 1,862 1,856 1,842 1,832 1,824 1,572 1,475 1,500 1,358
Slide 27: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2019 2020 2021 2022 2023 2024J-S 2019 97 Applicant 945 912 990 910 912 709 2020 63 Pass 430 295 313 230 186 170 Fail 560 499 598 669 666 452 2021 87 2022 SANKYO Group (Number of Pa s s ) 76 SANKYO+JB
Slide 28: Contact Us
Contact Us Investor Relations Office 【Notes of forecasts】 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 should be made at you