Presentation on Business Results for the First Six Months of FY 3/2022 (April 1, 2021 to September 30, 2021)

November 8, 2021

SANKYO CO., LTD.

1st Sec. of the TSE #6417

Contents

Overview of Financial Results

P3

Overview of Business

P11

Surroundings of Pachinko and Pachislot Industry,

P16

And Initiatives of SANKYO

Appendix P24

© 2021 SANKYO CO., LTD.

2

Financial Highlights

  • Increases in both net sales and profits compared with the same period of the previous year due to an increase in the sales volume of pachinko machines.
  • Recording of extraordinary gains on the sales of a portion of the investment securities. ( disclosed in August 6, 2021)

Net Sales

28,061

million yen YoY

Consolidated

Operating Income 2,914

million yen

Financial

Net Income

4,575

million yen

Results

attributable to owners

of parent

Net Income

74.70

yen

per share

+10.8

+168.7

+225.0

+51.69

%

%

%

yen

Pachinko

Machines

Business

Net Sales

Operating Income

Sales of Unit

25,670

6,501

60,740

million yen

YoY

million yen

unit

+14.7

+37.2

+28.9

%

%

%

Net Sales

Pachislot

Operating

Machines Income

Business Sales of

Unit

© 2021 SANKYO CO., LTD.

1,131

(1,469)

2,384

million yen

YoY

million yen

unit

-25.2-150-38.0

%

million yen

%

3

Summary of Financial Results

Pachinko

Pachislot

Market

  • There were some impacts of the worldwide semiconductor shortages, such as postponing the release of certain new models and restrictions on sales quantities.
  • Replace of pachinko machines is generally proceeding smoothly as manufacturers have supplied extensive new pachinko titles and pachinko machines compliant with the new regulations are proving increasingly attractive to players.
  • In pachislot machine market there are too few attractive new models, and the pachislot machine market was in the challenging market environment.

SANKYO

Group

© 2021 SANKYO CO., LTD.

Number of New Titles of Pachinko machine released, except for reused models:Four

Number of New Titles of Pachislot machine released:One

  • Fever Mobile Suit Gundam Unicorn (launched in August 2021) was well received by players and pachinko parlors and we have received additional orders.
  • From 3Q onward, in the run-up to the due date for removal of machines compliant with the former regulations, we will mount a sales offensive, including introduction of a major title, in order to capture continuing demand for replacement with machines compliant with the new regulations.

4

Summary of Financial Results

million yen

FY 3/2021 2Q

FY 3/2022 2Q

YoY

FY 3/2022 Forecast

Net Sales

25,332

28,061

+2,729

+10.8%

73,000

Pachinko Machines Business

22,384

25,670

+3,286

+14.7%

56,700

Pachislot Machines Business

1,513

1,131

-382

-25.2%

11,500

Cost of Sales

12,788

13,132

+344

+2.7%

34,500

Gross Profit

12,544

14,928

+2,384

+19.0%

38,500

Percentage

49.5%

53.2%

+3.7pt

52.7%

SG & A Expenses

11,459

12,014

+555

+4.8%

29,600

Operating Income

1,084

2,914

+1,830

+168.7%

8,900

Percentage

4.3%

10.4%

+6.1pt

12.2%

Pachinko Machines Business

4,737

6,501

+1,764

+37.2%

10,900

Pachislot Machines Business

(1,319)

(1,469)

-150

2,000

Recurring Income

1,588

3,409

+1,821

+114.7%

9,600

Net Income

1,407

4,575

+3,168

+225.0%

6,600

attributable to owners of parent

© 2021 SANKYO CO., LTD.

5

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Sankyo Co. Ltd. published this content on 08 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2021 06:17:19 UTC.