Sankyo : 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

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

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.

Consolidated

Financial

Results

Net Sales

Operating Income

Net Income

attributable to owners of parent

Net Income per share

70,344

20,033

16,949

277.42

million yen YoY	+71.6
million yen	+371.0
million yen	+313.0
yen	+210.34

%

%

%

yen

Pachinko

Machines

Business

Net Sales

Operating Income

Sales of Unit

61,777

22,459

138,494

million yen

YoY

million yen

unit

+66.7

+129.2

+60.5

%

%

%

Pachislot	Net Sales	5,635	million yen	YoY
Operating	539
Machines	million yen
Income
Business	Sales of	12,608	unit
	Unit

© 2022 SANKYO CO., LTD.

+231.9

+2,696

+204.2

%

million yen

%

3

Summary of Financial Results

Pachinko

Pachislot

Market

• There have been some impacts of the worldwide semiconductor shortages, such as postponing the release of certain new models and restrictions on sales quantities.
• The sales volume of pachinko machines was buoyant, partly supported by replacement demand as the deadline for removal of machines compliant with the former regulations was January 31, 2022.
• The sales volume of pachislot machines increased significantly toward the end of the year, centering on successor models of powerful series.

SANKYO

Group

© 2022 SANKYO CO., LTD.

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

Number of New Titles of Pachislot machine released：Two

• Major titles, "Fever Mobile Suit Gundam Unicorn", and "NEON GENESIS EVANGELION ‒ Roar for tomorrow-", gained the enthusiastic support of players, with orders received and sales exceeding the forecasts.
• 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 to capture demand once replacement has been completed.

4

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 postponed the introduction schedule for two pachinko titles and one pachislot title after the next fiscal year in order to refine them so as to ensure compliance with the new regulations as well as to focus on additional sales of major titles in 4Q.

			FY 3/2021	FY 3/2022	FY 3/2022	Variance from	Variance from
million yen				Results	Forecast	Revised Forecast	FY 3/2021	Previous Forecast
Net Sales				58,129	73,000	83,600	+25,471	+10,600
			(+43.8%)	(+14.5%)
Operating Income			6,587	8,900	20,500	+13,913	+11,600
		(+211.2%)	(+130.3%)
Percentage				11.3%	12.2%	24.5%	+13.2pt	+12.3pt
Recurring Income				7,488	9,600	21,400	+13,912	+11,800
			(+185.8%)	(+122.9%)
Net Income				5,749	6,600	17,200	+11,451	+10,600
attributable to owners of parent	(+199.2%)	(+160.6%)
Pachinko machine				126,565	154,000	163,000	+36,435	+9,000
Sales of Unit		(unit)		(+28.8%)	(+5.8%)
Pachislot machine				7,679	30,000	22,000	+14,321	-8,000
(unit)
Sales of Unit					(+186.5%)	(-26.7%)

© 2022 SANKYO CO., LTD.	5