SANKYO CO., LTD. May 9, 2024 | |
For Immediate Release | |
Listed company name: | SANKYO CO., LTD. |
Representative: | Akihiko Ishihara |
President & CEO | |
(Code:6417,TSE Prime Market) | |
Contact: | Hiroshi Takahashi |
Senior Executive Operating Officer | |
Head of Administration Div. | |
TEL.: +81-3-5778-7777 |
Notice Concerning the Formulation of
the Mid-term Management Plan
The Company hereby announces that it has formulated a three-yearMid-term Management Plan which started in FY2025 and ends in FY2027.
1.Outline of the Mid-term Management Plan
As a leading company in the pachinko and pachislot industry, we aim for the invigoration and development of the industry and continuous improvement of corporate value by generating people's smiles through entertainment.
[Business strategies]
We aim to make our top sales share in the pachinko business a robust one, and also become one of the companies in the top group in the pachislot business.
[Financial strategies]
In order to achieve ROE that exceeds our capital cost, we will work on appropriate investment and measures for return of profits to shareholders centered around measures to improve the return on sales.
[ESG and sustainability]
We will work to identify sustainability issues and solve such issues, while strengthening information disclosure, in the aim of improving corporate value.
2. Key target figures (on a consolidated basis) | (million yen) | ||||||||||
FY 2023 | FY 2024 | FY 2025 | FY 2026 | FY 2027 | |||||||
(results) | (results) | (Figures announced | (Targets) | (Targets) | |||||||
in quarterly reports) | |||||||||||
Net Sales | 157,296 | 199,099 | 180,000 | 200,000 | 220,000 | ||||||
Operating Income | 58,532 | 72,495 | 61,000 | 73,000 | 88,000 | ||||||
Net Income | 46,893 | 53,791 | 42,000 | 51,000 | 61,000 | ||||||
attributable to | |||||||||||
owners of parent | |||||||||||
EPS(yen) | (*1) | 807.52 | 203.81 | 191.48 | 232.51 | 278.10 | |||||
Cash dividend per | (*1) | 150.0 | (*2) | 80.0 | 80.0 | 90.0 | 110.0 | ||||
shere (yen) | |||||||||||
Pay out ratio (%) | 18.6 | 39.3 | 41.8 | Aiming to achieve the level of 40% | |||||||
ROE (%) | 16.3 | 19.3 | Maintaining the level between 15% and 20% | ||||||||
PBR (times) (*3) | 1.04 | 1.47 | - | - | - |
*1 The figures are presented before the share split, which has been carried out effective March 1, 2024, by splitting one share to five shares.
*2 The figures are presented by adjusting the interim dividends assuming that the share split (from one share to five shares) was carried out at the beginning of the period.
*3 Calculated using the stock price at the end of each fiscal year.
This material is an English translation of Japanese announcement made on May 9, 2024. Although the Company intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.
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3. Details of the Mid-term Management Plan Please refer to the attached document.
This material is an English translation of Japanese announcement made on May 9, 2024. Although the Company intended to faithfully translate the Japanese document into English, the accuracy and correctness of this translation are not guaranteed.
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-A portent for sustainable growth-
Mid-Term Management Plan
(from FY3/2025 to FY3/2027) | May 9, 2024 |
SANKYO CO., LTD.
Prime Market of the TSE #6417
Outline of the Mid-term Management (from FY3/2025 to FY3/2027)
-A portent for sustainable growth-
As a leading company in the pachinko and pachislot industry, we aim for the invigoration and development of the industry and continuous improvement of corporate value by generating people's smiles through entertainment.
Business strategies
・Establishing a robust system for the pachinko business
・Accelerating growth in the pachislot business
Financial strategies
Working on the appropriate investment conscious of ROE and return of profits to shareholders
Continuous improvement of
corporate value
ESG and sustainability
Efforts toward sustainability issues and
strengthening of the investor relations and public
relations functions
© 2024 SANKYO CO., LTD. | 2 |
Outlook for the medium term (vision in three years)
"Aim for development of the industry and further growth of the Group"
FY 3/2027 Forecast
Pachinko Machine Sales Share
Continue No.１
Achieve over 30% sales share
Pachislot Machine Sales Share
Achieve 15％
Aim to become one of the companies in the top group
Consolidated
Net Sales
220 billion yen
Aim for growth in the pachinko and pachislot
businesses
Consolidated
Operating Income
88 billon yen
Reach a record-high profit (consolidated operating
income)
ＲＯＥ
15~20％
Maintain high levels in profit growth and appropriate
return of profits to shareholders
© 2024 SANKYO CO., LTD. | 3 |
Competitive advantage of the pachinko and pachislot businesses
Aim for further growth in the pachinko and pachislot businesses through the "comprehensive
strengths" of "development," "manufacturing," and "sales," which are our strengths
777
Development
Manufacturing Sales
Development
Promotion of the 3 brands（SANKYO, Bisty, JB）
- A diverse range of product lineups
- Top-classannual number of titles sold among manufacturers
- Ability to respond to new regulations
Manufacturing
Daily Pachinko 4,000units Pachislot 1,500units production
- Highly efficient production in fully automated plants equipped with cutting-edge facilities
- Production capacity that realizes simultaneous delivery to pachinko halls across Japan
- Top-classability to procure parts and materials among manufacturers
Sales
23 branches and sales offices across Japan
- We conduct sales activities attuned to each customer while using the nationwide locations as our base.
- Our house-brand direct sales ratio is approximately 80%, boasting the highest-level direct sales ratio in the industry.
© 2024 SANKYO CO., LTD. | 4 |
Numerical management targets
(million yen) | 3/2024 | 3/2025(Forecast) | 3/2026(Plan) | 3/2027(Plan) | ||
Results | ||||||
Net Sales | 199,099 | 180,000 | 200,000 | 220,000 | ||
Pachinko Machines Business | 147,042 | 117,800 | 132,400 | 144,700 | ||
Pachislot Machines Business | 32,143 | 51,600 | 57,000 | 64,700 | ||
Operating Income | 72,495 | 61,000 | 73,000 | record-high88,000 | ||
Percentage | 36.4% | 36.5% | profit | 40.0% | ||
Pachinko Machines Business | 61,165 | 48,400 | 57,600 | |||
Pachislot Machines Business | 15,289 | 30,300 | 36,200 | |||
Net Income | 53,791 | 51,000 | 61,000 | |||
attributable to owners of parent | ||||||
EPS(yen) | 203.81 | .51 | 278.10 | |||
Cash dividend per share(yen) | 80※ | 90 | 110 | |||
(Forecast) | ||||||
ROE | 19.3% | |||||
Unit Sales of Pachinko Machines(units) | 297,648 | 320,000 | ||||
Share | 34.9% | 31.0% | 31.1% | 32.0% | ||
Unit Sales of Pachislot Machines(units) | 70,379 | 119,500 | 130,000 | 150,000 | ||
Share | 8.8% | 13.6% | 14.4% | 15.8% | ||
※ Calculated assuming that the share split at a ratio of five shares for one share effective on March 1, 2024 was carried out at the beginning of the period
© 2024 SANKYO CO., LTD. | 5 |
Numerical management targets （Pachinko machines business）
Data
million yen | 3/2024 | 3/2027 | Change |
Results | Plan | ||
Net Sales | 147,042 | 144,700 | -2,342 |
R&D Expenses | 11,021 | 14,396 | +3,375 |
Operating Income | 61,165 | 57,600 | -3,565 |
Percentage | 41.6% | 39.8% | -1.8pt |
units | |||
Machines sales | 297,648 | 320,000 | +22,352 |
SANKYO+JB | 154,339 | 220,000 | +65,661 |
Bisty | 143,309 | 100,000 | -43,309 |
Securing stable revenue as the
core businesses
product lineups, leveraging the
diversifying preferences of players
number of titles sold
development that has uniqueness and gaming performance
that has wealth of novelty and
- Promoting development of Smart Pachinko machines
of new tie-up machines
of popular machines following series", "NEON GENESIS
.
© 2024 SANKYO CO., LTD. | 6 |
Numerical management targets （Pachislot machines business）
Data
million yen | 3/2024 | 3/2027 | Change |
Results | Plan | ||
Net Sales | 32,143 | 64,700 | +32,557 |
R&D Expenses | 4,274 | 5,833 | +1,559 |
Operating Income | 15,289 | 36,200 | +20,911 |
47.6% | 56.0% | ||
Percentage | +8.4pt | ||
units | |||
Machines sales | 70,379 | 150,000 | +79,621 |
SANKYO | 46,834 | 100,000 | +53,166 |
Bisty | 23,545 | 50,000 | +26,455 |
Allocating management resources deeming it as a growth business
system
of titles sold and strengthening
development that has uniqueness and gaming performance
that has wealth of novelty and
of Smart Pachislot machines
of new tie-up machines
popular pachinko machines titles, while new tie-up machines
© 2024 SANKYO CO., LTD. | 7 |
Market environment projection (trend in pachinko player population)
(million)
12
10.7
10
Increasing the player population is indispensable for development of the pachinko industry.
Market environment projection
of 7.1 million hit the bottom the COVID-19 pandemic, and
trend has continued.
8 | 7.7 |
7.1 | |
6 |
4
2
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
The Companyʼs initiatives to increase the player population
of Smart Pachinko and
of product lineups
of new tie-up machines TV commercials and web
Source: Japan Productivity Center
© 2024 SANKYO CO., LTD. | 8 |
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Disclaimer
Sankyo Co. Ltd. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 06:45:05 UTC.
