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Financial results presentation6417SANKYO CO.,LTD.Machinery

Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue, operating profit and net income were below the prior-year quarter due to lower unit sales of pachinko and pachislot machines. Against the full-year plan, however, the Company assessed progress as broadly on track and decided to raise the dividend payout ratio and introduce DOE.

Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-21614
¥ million (year-on-year change in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥33,571 million-39.2%
Operating profit¥10,496 million-56.0%
Ordinary income¥11,108 million-54.5%
Net income¥8,074 million-53.7%
Gross Profit Margin60.4%
Operating profit margin31.3%
Selling, general and administrative expenses¥9,777 million
Results for the three months of the current quarter
Net Sales¥33,571 million
Operating profit¥10,496 million
Ordinary income¥11,108 million
Profit attributable to owners of parent for the quarter¥8,074 million
Full-year earnings forecast
Net Sales
¥174,000 million
Operating profit
¥56,000 million
Ordinary income
¥58,000 million
Profit attributable to owners of the parent
¥40,000 million
Pachinko machine unit sales
225,500 Units
Pachislot machine unit sales
127,000 Units
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales19.3%
Operating profit18.7%
Ordinary income19.2%
Profit attributable to owners of parent for the quarter20.2%
Pachinko machine unit sales22.2%
Pachislot machine unit sales13.3%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress broadly in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Pachinko machine-related business-14,515
Pachislot machine-related business-6,763
Supply equipment-related business-342
Other Businesses7
Operating profit
Pachinko machine-related business-9,117
Pachislot machine-related business-4,446
Supply equipment-related business-59
Increase in Advertising Expenses-88
Decrease in sales commissions497
Increase in R&D expenses-45
Decrease in salaries and allowances16
Other-113
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Projected total pachinko market unit sales in fiscal 2026700,000 machines
Projected total pachislot market unit sales in fiscal 2026750,000 machines
Full-year pachinko unit sales plan225,500 machines
Full-year pachislot unit sales plan127,000 machines
New initiatives
  • Raise the dividend payout ratio from 40% to 50% and introduce 5% DOE
  • Establish 株式会社サン・アート and acquire the Data Art business
  • Develop pop-up events, product initiatives and simulator games under the KUGITAMA project
  • Launch the new machine e Fever Yo-kai Watch
  • Launch the low-price rental plan KUGITAMA YELL in November 2026
  • Develop the official merchandise sales site FEVER STORE
  • Produce and develop ARG content
  • Raise the starting salary for university graduates joining in 2027 to ¥310,000 per month
Key KPIsA metric the company considers important as a management benchmark.
  • Number of new titles (pachinko)3 Title
  • Number of new titles (pachislot)1 Title
  • Indirect sales ratio (SANKYO Pachinko)14.7%
    Year on year against the same period last year+0.3pt
  • Indirect sales ratio (SANKYO Pachislot)11.6%
    Year on year against the same period last year▲9.5pt
  • Cumulative plays of the KUGITAMA simulatorApproximately 90,000 plays
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Pachinko unit sales
50,059 Units-36.9%
Pachislot unit sales
16,880 Units-52.6%
Volume and price factors in the pachinko machine-related businessSANKYO volume decline: ¥8,697 million decrease; SANKYO price decline: ¥1,524 million decrease; Bisty volume decline: ¥4,583 million decrease; Bisty price increase: ¥384 million increase
Volume and price factors in the pachislot machine-related businessSANKYO volume decline: ¥733 million decrease; SANKYO price increase: ¥381 million increase; Bisty volume decline: ¥6,732 million decrease; Bisty price increase: ¥364 million increase
Segment results
Pachinko machine-related business
Net Sales
¥22,197 million-39.5%
Operating profit
¥9,022 million-48.9%
Pachislot machine-related business
Net Sales
¥8,274 million-45.0%
Operating profit
¥2,943 million-61.7%
Supply equipment-related business
Net Sales
¥2,995 million-10.2%
Operating profit
¥175 million-24.9%
Other Businesses
Net Sales
¥104 million+7.2%
Market Size / Share
Pachinko marketApproximately 190,000 machines from April to June 2026, down 12% year on year
Pachislot marketApproximately 180,000 machines from April to June 2026, up 2% year on year
Pachinko market share targetTop market share for 5 consecutive fiscal periods
Position in the pachislot marketOne of the leading companies
Number of employees
Number of Employees922 people
Change during the period+12 people
Capital expenditures
¥608 million
Annual Dividend
Annual dividend per share¥100
Interim Dividend¥50
Year-end dividend¥50
Payout ratio
RateThe higher of 50% or 5% DOE
DOE5% (indicative floor)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥33,571 million (YoY -39.2%)
Operating profit¥10,496 million (YoY -56.0%)
Ordinary income¥11,108 million (YoY -54.5%)
Net income¥8,074 million (YoY -53.7%)
Gross Profit Margin60.4%
Operating profit margin31.3%
Selling, general and administrative expenses¥9,777 million
Results for the three months of the current quarterNet Sales ¥33,571 million / Operating profit ¥10,496 million / Ordinary income ¥11,108 million / Profit attributable to owners of parent for the quarter ¥8,074 million
Full-year earnings forecastNet Sales ¥174,000 million / Operating profit ¥56,000 million / Ordinary income ¥58,000 million / Profit attributable to owners of the parent ¥40,000 million / Pachinko machine unit sales 225,500 Units / Pachislot machine unit sales 127,000 Units
Progress against full-year forecastNet Sales 19.3% / Operating profit 18.7% / Ordinary income 19.2% / Profit attributable to owners of parent for the quarter 20.2% / Pachinko machine unit sales 22.2% / Pachislot machine unit sales 13.3%
Self-assessment against the planProgress broadly in line with plan
Segment resultsPachinko machine-related business Net Sales ¥22,197 million (YoY -39.5%) / Operating profit ¥9,022 million (YoY -48.9%) / Pachislot machine-related business Net Sales ¥8,274 million (YoY -45.0%) / Operating profit ¥2,943 million (YoY -61.7%) / Supply equipment-related business Net Sales ¥2,995 million (YoY -10.2%) / Operating profit ¥175 million (YoY -24.9%) / Other Businesses Net Sales ¥104 million (YoY +7.2%) / Operating profit Not disclosed
Breakdown of Factors Affecting the ChangeNet Sales Pachinko machine-related business -14,515 / Pachislot machine-related business -6,763 / Supply equipment-related business -342 / Other Businesses 7 / Operating profit Pachinko machine-related business -9,117 / Pachislot machine-related business -4,446 / Supply equipment-related business -59 / Increase in Advertising Expenses -88 / Decrease in sales commissions 497 / Increase in R&D expenses -45 / Decrease in salaries and allowances 16 / Other -113
Key KPIsIndicator name Number of new titles (pachinko) / Value 3 Title / Year on year against the same period last year Not disclosed, Indicator name Number of new titles (pachislot) / Value 1 Title / Year on year against the same period last year Not disclosed, Indicator name Indirect sales ratio (SANKYO Pachinko) / Value 14.7% / Year on year against the same period last year +0.3pt, Indicator name Indirect sales ratio (SANKYO Pachislot) / Value 11.6% / Year on year against the same period last year ▲9.5pt, Indicator name Cumulative plays of the KUGITAMA simulator / Value Approximately 90,000 plays / Year on year against the same period last year Not disclosed
Unit price and quantity metricsPachinko unit sales 50,059 Units (YoY -36.9%) / Pachislot unit sales 16,880 Units (YoY -52.6%) / Volume and price factors in the pachinko machine-related business SANKYO volume decline: ¥8,697 million decrease; SANKYO price decline: ¥1,524 million decrease; Bisty volume decline: ¥4,583 million decrease; Bisty price increase: ¥384 million increase / Volume and price factors in the pachislot machine-related business SANKYO volume decline: ¥733 million decrease; SANKYO price increase: ¥381 million increase; Bisty volume decline: ¥6,732 million decrease; Bisty price increase: ¥364 million increase
Number of employeesNumber of Employees 922 people / Change during the period +12 people / Hiring plan Not disclosed
Assumptions Underlying the Business OutlookProjected total pachinko market unit sales in fiscal 2026 700,000 machines / Projected total pachislot market unit sales in fiscal 2026 750,000 machines / Full-year pachinko unit sales plan 225,500 machines / Full-year pachislot unit sales plan 127,000 machines
Annual DividendAnnual dividend per share ¥100 / Interim Dividend ¥50 / Year-end dividend ¥50
Payout ratioRate The higher of 50% or 5% DOE / DOE 5% (indicative floor)
Capital expenditures¥608 million
Market Size / SharePachinko market Approximately 190,000 machines from April to June 2026, down 12% year on year / Pachislot market Approximately 180,000 machines from April to June 2026, up 2% year on year / Pachinko market share target Top market share for 5 consecutive fiscal periods / Position in the pachislot market One of the leading companies
New initiativesRaise the dividend payout ratio from 40% to 50% and introduce 5% DOE, Establish 株式会社サン・アート and acquire the Data Art business, Develop pop-up events, product initiatives and simulator games under the KUGITAMA project, Launch the new machine e Fever Yo-kai Watch, Launch the low-price rental plan KUGITAMA YELL in November 2026, Develop the official merchandise sales site FEVER STORE, Produce and develop ARG content, Raise the starting salary for university graduates joining in 2027 to ¥310,000 per month
Items this document does not state (7)
Number of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Unit sales of pachinko and pachislot machines declined. The Company explained that, in the pachinko market, parlors became more cautious in selecting new machines amid weak utilization, while pachislot sales volumes declined, mainly at Bisty.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027 | SANKYO CO.,LTD. (6417) timely disclosure | Komori