Sankyo Co., Ltd. · TSE:6417
Sankyo — Q3 FY3/2025 Earnings Presentation
29 slides from Sankyo's earnings presentation, Feb 4, 2025
Slide 1: Presentation on Business Results for the First Nine Months of FY 3/2025
Presentation on Business Results for the First Nine Months of FY 3/2025 (April 1, 2024 to December 31, 2024) February 4, 2025 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 © 2025 SANKYO CO., LTD. 2
Slide 3: Financial Highlights
Financial Highlights Despite year-on-year decreases in net sales and profits, strong progress has been made in line with the initial plan, resulting in upward revisions to the earning forecasts. In the pachislot machines business, we achieved substantial increase in net sales and profit due to t
Slide 4: Summary of Financial Results
Summary of Financial Results In the pachinko market, amid gradual diffusion of Smart Pachinko machines began with the enhancement of their gaming performance, titles with strong machine Pachinko utilization track records have started to emerge. Pachislot The pachislot market has been relatively
Slide 5: Revision of the Forecast of the Financial Results for the Year Ending March 31, 2025
Revision of the Forecast of the Financial Results for the Year Ending March 31, 2025 （announced on Feb. 4, 2025） Although the sales volume of pachinko machines is expected not to reach the initial plan, the sales volume of pachislot machines is expected to exceed the plan, and the total volume of
Slide 6: Revision of Dividend Forecast
Revision of Dividend Forecast（announced on Feb. 4, 2025） In line with the revision of the business results forecast, revised the amount of the year-end dividend based on the dividend policy of paying dividends with a consolidated dividend payout ratio of 40% as a benchmark （yen） 【Annual dividend per
Slide 7: Summary of Financial Results
Summary of Financial Results (Million yen) FY 3/2024 3Q FY 3/2025 3Q YoY FY 3/2025 Forecast Net Sales 170,588 153,700 -16,888 -9.9% 190,000 Pachinko Machines Business 129,840 80,212 -49,628 -38.2% 107,000 Pachislot Machines Business 23,176 55,275 +32,099 +138.5% 63,000 Cost of Sales 76,102 62,687 -1
Slide 8: Factors of Change in Consolidated Net Sales
Factors of Change in Consolidated Net Sales (Million yen) Pachinko Machines Ball Bearing Business Pachislot Supply Other Machines Business Business 170,588 -49,628 Business +547 +95 +32,099 153,700 FY3/2024 3Q FY3/2025 3Q -16,888 million yen（-9.9%） © 2025 SANKYO CO., LTD. 8
Slide 9: Factors of Change in Consolidated Operating Income
Factors of Change in Consolidated Operating Income (Million yen) Sales Pachinko Ball Bearing Advertising commission R&D Machines Supply expenses decreases expenses Pachislot Business Business decreases +3,827 increases Other Machines -90 +40 factors Business 65,264 -26,798 -2,101 +23,399 -1,100 62,4
Slide 10: Costs and Expenses
Costs and Expenses (Million yen) FY 3/2024 3Q FY 3/2025 3Q YoY FY 3/2025 Forecast SG & A Expenses 29,221 28,570 -651 -2.2% 39,000 Advertising Expenses 1,921 1,881 -40 -2.1% 2,822 Sales Commission 8,056 4,229 -3,827 -47.5% 4,962 R&D Expenses 11,116 13,217 +2,101 +18.9% 18,750 Salaries & Wages 2,561 3
Slide 11: Summary of Balance Sheet
Summary of Balance Sheet (Million yen) As of 31-Mar-24 As of 31-Dec-24 YoY Main Factors of Change Total current assets 251,465 293,228 +41,763 Increases in notes and accounts receivable-trade, and Quick assets 228,790 255,537 +26,747 contract assets Total fixed assets 40,654 40,710 +56 Investment se
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 © 2025 SANKYO CO., LTD. 12
Slide 13: Pachinko Machines Business
Pachinko Machines Business Factors of Change in Net sales Data (Million yen) (Million yen) FY 3/2024 3Q FY 3/2025 3Q YoY FY 3/2024 1st Nine Months (Apr-Dec) 129,840 Net Sales 129,840 80,212 -49,628 Sales volume of SANKYO-brand Operating Income 56,700 33,755 -22,945 and JB-brand pachinko machines -6,
Slide 14: Pachinko Machines Business
Pachinko Machines Business New Title x 9⇒8 Reused Models etc. 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 ©創通・サンライズ ©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 Libera
Slide 15: Pachislot Machines Business
Pachislot Machines Business Factors of Change in Net sales Data (Million yen) (Million yen) FY 3/2024 3Q FY 3/2025 3Q YoY FY 3/2024 1st Nine Months (Apr-Dec) 23,176 Net Sales 23,176 55,275 +32,099 Sales volume of SANKYO-brand Operating Income 11,075 32,595 +21,520 pachislot machines increases. +32,2
Slide 16: Pachislot Machines Business
Pachislot Machines Business ©⼤久保篤／講談社 ©2019 サンドロビッチ・ヤバ⼦，MAAM・⼩学館 ©⾚坂アカ／集英社・かぐや様は告らせたい製作委員会 ©カラー ©⼤久保篤・講談社／特殊消防隊動画広報課 ／シルバーマンジム 1Q 2Q 3Q 4Q L Pachislot How Heavy Are the L Pachislot ENN ENN NO SHOUBOUTAI L Pachislot Evangelion: 3.0+1.0 Dumbbells You Lift? New Title x 7⇒6 (Increased production) L Pach
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 © 2025 SANKYO CO., LTD. 17
Slide 18: Pachinko Market
Pachinko Market 800 thousand units Sales Volume Sales volume forecast FY2025： (Thousand units) 830 thousand units (April 1, 2024 to March 31, 2025) 1,500 Total number of units sold Approx. 660 thousand units YoY Approx. -7％ （9 titles sold 20,000 units or more. 1,185 (April to December, 2024) 1,200 (
Slide 19: Pachislot Market
Pachislot Market 880 thousand units Sales Volume Sales volume forecast FY2025： 680 thousand units (Thousand units) (April 1, 2024 to March 31, 2025) Total number 1,000 of units sold Approx. 550 thousand units YoY Approx. -12％ （6 titles sold 20,000 units or more. (April to December, 2024) (April to D
Slide 20: 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-Q3 Q4 In the pachislot machines business, conducted increased V
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 © 2025 SANKYO CO., LTD. 21
Slide 22: Business Results for the First Nine Months of FY 3/2025
Business Results for the First Nine Months of FY 3/2025 FY 3/2024 FY 3/2025 Forecast FY 3/2024 FY 3/2025 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 170,588 153,700 -16,888 190,000 50,777 65,413 54,398 28,511 199,099 42,210 48,519 62,971 Pachinko 129,840
Slide 23: Margin / Expenses etc.
Margin / Expenses etc. GP Margin/OP Margin FY 3/2024 FY 3/2025 Forecast FY 3/2024 FY 3/2025 Consolidated 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 GP Margin 55.4% 59.2% +3.8pt 57.9% 55.8% 55.3% 55.1% 56.8% 55.6% 59.4% 60.0% 58.4% OP Margin 38.3% 40.6% +2.4pt 37.4% 37.8% 40.2% 36.4% 25.
Slide 24: Pachinko Machines Business
Pachinko Machines Business FY 3/2024 FY 3/2025 Forecast FY 3/2024 FY 3/2025 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 129,840 80,212 -49,628 107,000 34,887 47,220 47,733 17,202 147,042 17,866 20,115 42,231 Operating Income 56,700 33,755 -22,945 42,000
Slide 25: Pachislot Machines Business
Pachislot Machines Business FY 3/2024 FY 3/2025 Forecast FY 3/2024 FY 3/2025 Consolidated:milion yen 9 Months 9 Months YoY Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Net Sales 23,176 55,275 +32,099 63,000 9,056 12,630 1,490 8,967 32,143 16,610 22,590 16,075 Operating Income 11,075 32,595 +21,520 35,000 4,818
Slide 26: 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 84,857 157,296 199,099 190,000 Operating Income 10,181 21,286 12,551 6,587 21,357 58,532 72,495 71,000 Recurring Income 11,319 22,300 13,476 7,488
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 3,000 2,500 2,432 2,338 2,205 10,000 2,077 2,500 2,000 8,000 2,000 1,890 1,881 1,868 1,862 1,856 1,572 1,842 1,832 1,824 1,820 1,803 1,808 1,807 1,475 1,500 1,358
Slide 28: Others
Others Number of Titles Sold (All Manufacturers) Compliance with Format Inspection Pachinko machines 2019 2020 2021 2022 2023 2024J-D 2019 97 Applicant 945 912 990 910 912 910 2020 63 Pass 430 295 313 230 186 223 2021 87 Fail 560 499 598 669 666 619 2022 76 SANKYO Group (Number of Pa s s ) SANKYO+JB
Slide 29: Contact Us
Contact Us Investor Relations Office 【Disclaimer 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