Consolidated Financial Statements for the First Quarter of FY2025
April 1, 2024, to June 30, 2024

(The Year Ending March 31, 2025)
August 7, 2024

SANKYO CO., LTD.
https://www.sankyo-fever.co.jp/
Shares listed:
TSE Prime Market
Code number:
6417

Representative:
Akihiko Ishihara, President & CEO & COO
Contact:
Hiroshi Takahashi, Senior Executive Operating Officer
Telephone:+81-3-5778-7777
Supplementary materials for the quarterly financial statements:
Yes
Presentation to explain for the quarterly financial statements:
No(Figures less than 1 million yen have been omitted.)

1. Results for the first quarter of FY2025 (From April 1, 2024, to June 30, 2024)(1) Consolidated operating results(Percentage figures denote year-over-year changes.)

1st quarter of FY2025
1st quarter of FY2024(note)

Comprehensive income

Net sales

Operating income

Recurring income

Profit attributableto owners of parent

Millions of yen

Millions of yen

Millions of yen

Millions of yen

42,21050,777

17,273 (10.0%)
19,188 102.9%

17,575
19,482

12,50314,080(16.9%)
82.9%¥12,449 million

1st quarter of FY2025[(14.1%)]

Net income
per share

Fully diluted net
income per share

Yen

Yen

(9.8%)
98.2%

1st quarter of FY2024(11.2%)
77.5%¥14,498 million[116.5%]

56.21
57.00
1st quarter of FY2025
47.95
48.48
1st quarter of FY2024(Note) The Company carried out a share split at a ratio of five shares for one share of common stock, effective March 1, 2024. Net income pershare and fully diluted net income per share are calculated assuming that the share split was carried out at the beginning of the fiscal year
ended March 31, 2024.
(2) Consolidated financial position

As of June 30, 2024
As of March 31, 2024
(reference)

Shareholders' Equity

Total assets

Net assets

Capital adequacy
ratio

Millions of yen

Millions of yen%

291,667
292,119

253,011
251,57986.2
85.5¥251,295 million

As of March 31, 2024

As of June 30, 2024

¥249,863 million

2. Dividends(Base date)

1st quarter2nd quarter

Cash dividend per share
3rd quarter

Year-end

Full Year

Yen

Yen

Yen

Yen

Yen

50.00
150.00Year ended March 31, 2024
Year ending March 31, 2025
80.00
Year ending March 31, 2025 (Forecast)(Note) 1. Changes in the projected cash dividends in this quarter : No
2. The Company carried out a share split at a ratio of five shares for one share of common stock, effective March 1, 2024. For the end of thesecond quarters of the fiscal year ended March 31, 2024, the actual dividend amounts before the share split are presented. For the end of the
fiscal year ended March 31, 2024, the figures are presented after the share split, while the total amount of dividends for the full year is stated as“－.” The dividend for the full year of the fiscal year ended March 31, 2024 taking into account the share split is 80.00 yen.
3. As for the dividends for the fiscal year ending March 31, 2025 (forecast), it is our basic policy to pay performance-linked dividends targetingat the consolidated payout ratio of 40%. The business plan for the fiscal year ending March 31, 2025 is managed on an annual basis, and theinterim dividend and the year-end dividend cannot be projected separately. Therefore, only the sum of the dividends for the full year ispresented.

3. Forecast for FY2025 (From April 1, 2024, to March 31, 2025)(Percentage figures denote year-over-year changes.)

Net sales

OperatingincomeRecurringincomeProfit attributableto owners of

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Year ending
180,000(9.6%)
61,000 (15.9%)
42,00062,000 (15.3%)
March 31, 2025
Note: Changes in the forecasts of consolidated Financial results in this quarter : No
SANKYO Group manages its business plan on a full-year basis and thus only discloses full-year figures.

English translation of "KESSAN TANSHIN" originally issued in Japanese language(21.9%)

191.47-1-

* Notes(1) Significant changes in the scope of consolidation during the period:

Not applicable(2) Application of peculiar accounting methods:

Not applicable(3) Changes in accounting procedures
a. Related to accounting standard revisions etc.:
Applicableb. Other changes:
Not applicable
c. Changes in accounting estimates:
Not applicable
d. Retrospective restatements:
Not applicable(Note) For more details, please refer to “2.Quarterly Consolidated Financial Statements and Primary Notes (3)Notes to the quarterly
Consolidated Financial Statements (Notes to Changes in Accounting Policy)” in the attached material.

(4) Outstanding shares (common shares)
a. No. of shares outstanding (including treasury stock) As of June 30, 2024: 260,000,000 shares
40,636,891 sharesb. No. of treasury stock
As of June 30, 2024:
c. Average number of shares issued and outstanding 1st quarter of FY2025: 219,348,937 shares

As of March 31, 2024: 260,000,000 shares
As of March 31, 2024: 40,651,855 shares
1st quarter of FY2024: 290,439,822 shares(Note) 1. The No. of treasury stock includes the Company’s shares held by Share Benefit Trust for Directors (1,335,000 shares as of June 30,
2024, 1,350,000 shares As of March 31, 2024). The treasury stock deducted to calculate the Average number of shares issued and outstanding
includes the Company’s shares held by Share Benefit Trust for Directors (1,349,176 shares as of June 30, 2024)
2. The Company carried out a share split at a ratio of five shares for one share of common stock, effective March 1, 2024. Average number ofshares issued and outstanding are calculated assuming that the share split was carried out at the beginning of the fiscal year ended March 31,
2024.
*Review of the attached quarterly consolidated financial statements by Certified Public Accountants or Audit Firm: Not applicable* Disclaimer regarding Forward-looking Statements
The statements concerning future performance that are presented in this document are based on judgments using information available to the Company andwhich are deemed reasonable as of the release date of this material, and they are not intended to assure the achievement of such forecasts presented herein.
Actual results may differ due to various factors. For information regarding performance forecasts, please refer to “1.Overview of Operating Results (3)Forecastof Consolidated Results and Other Forecast Information” in the accompanying material.

English translation of "KESSAN TANSHIN" originally issued in Japanese language-2-

SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2025

1. Overview of Operating Results(1) Overview of Operating Results
During the first three months of the fiscal year ending March 31, 2025 (from April 1, 2024 to June 30, 2024), improvement ofconsumer sentiment in Japan failed to gain traction. However, in view of the upward trend of employment and incomes, themoderate recovery of the Japanese economy is expected to continue. On the other hand, the downward swing of overseas
economies, price increases, and the situation in the Middle East are concerns. These downside risks to the economy require carefulmonitoring.
In the pachinko and pachislot industry, although Smart Pachislot machines have been enjoying high machine utilization and are
diffusing strongly, the pachinko market has been somewhat sluggish, overshadowed by the pachislot market. However, pachinko
machines equipped with Lucky Trigger offering new gaming performance introduced since March 2024 have been attracting
attention. Moreover, Smart Pachinko machines with enhanced gaming performance have been introduced step by step since July
2024. The diffusion of Lucky Trigger machines and Smart Pachinko machines is expected to lead to recovery of the pachinko
market.
During the first quarter of the current fiscal year, the Group introduced two pachinko titles and one pachislot title. The sales volumesof these new titles are increasing as planned. In the pachislot machines business, thanks to vigorous product development of Smart
Pachislot machines, the Group’s lineup of Smart Pachislot machines, including L Pachislot Karakuri Circus and L Godzilla vsEVANGELION, which were introduced in the fiscal year ended March 31, 2024, as well as Pachislot Valvrave the Liberator
introduced in November 2022, is driving up high machine utilization in the pachislot market. Responding to continuing strong
demand from parlor operators, the Group produced additional units of these titles and achieved higher sales volumes.
As a result, on a consolidated basis, net sales were ¥42.2 billion, a decrease of 16.9% compared with the same period of theprevious year, operating income was ¥17.2 billion, a decrease of 10.0%, and recurring income was ¥17.5 billion, a decrease of
9.8%. Profit attributable to owners of parent amounted to ¥12.5 billion, a decrease of 11.2%.
Results of segments are presented below:
Pachinko Machines Business
Regarding the pachinko machines business, sales amounted to ¥17.8 billion, a decrease of 48.8% compared with the same periodof the previous year, and operating income amounted to ¥8.1 billion, a decrease of 45.9%. Sales of pachinko machines amounted
to 40,000 units, compared with 77,000 units for the same period of the previous fiscal year.
Two titles released included Fever Macross Frontier 5 (introduced in April 2024) and Fever SANGOKU SENKI 7500 (introduced
in June 2024) under the SANKYO brand.
Pachislot Machines Business
Regarding the pachislot machines business, sales amounted to ¥16.6 billion, an increase of 83.4% compared with the same
period of the previous year, and operating income was ¥9.7 billion, an increase of 101.9%. Sales of pachislot machines amounted
to 35,000 units, compared with 19,000 units for the same period of the previous fiscal year.
Although L Pachislot ENN ENN NO SHOUBOUTAI (introduced in May 2024) under the SANKYO brand was the only new title
introduced during the first three months of the fiscal year ending March 31, 2025, the Group manufactured additional units ofPachislot Valvrave the Liberator and two other titles.
Ball Bearing Supply Systems Business
Sales of the ball bearing supply systems business were ¥7.5 billion, an increase of 12.7% compared with the same period of theprevious year, and operating income was ¥0.6 billion, an increase of 0.9%.
Other Businesses
Sales of other businesses were ¥100 million, an increase of 43.9% compared with the same period of the previous year, andoperating income was ¥46 million, an increase of 44.8%.
(2) Overview of Financial Conditions
Total assets at the end of the first three months of the fiscal year ending March 31, 2025 amounted to ¥291.6 billion, having
decreased ¥0.4 billion compared with the figure at the previous fiscal year-end. This decrease was mainly attributable to a ¥10.0
billion decrease in marketable securities, despite a ¥3.6 billion increase in accounts receivable for provision of parts and materials
for value (included in “Other” of Current assets), a ¥2.7 billion increase in merchandise and finished goods, a ¥1.4 billion increasein raw materials and inventories, a ¥1.3 billion decrease in cash and deposits, and a ¥0.4 billion increase in prepaid expenses(included in “Other” of Current assets).
Total liabilities amounted to ¥38.6 billion, having decreased ¥1.8 billion compared with the figure at the previous fiscal year-end.
This decrease was mainly attributable to a ¥5.1 billion decrease in accrued income taxes, and a ¥2.7 billion decrease in accrued
consumption tax (included in “Other” of Current liabilities), despite a ¥5.6 billion increase in notes and accounts payable-trade, anda ¥0.4 billion increase in allowance for bonuses.

English translation of “KESSAN TANSHIN” originally issued in Japanese language-3-

SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2025

Net assets increased ¥1.4 billion compared with the figure at the previous fiscal year-end. This increase was mainly attributableto profit attributable to owners of parent amounted to ¥12.5 billion, while cash dividends paid amounting to ¥11.0 billion. As a result,net assets amounted to ¥253.0 billion and the shareholders’ equity ratio increased 0.7 percentage points to 86.2%.

(3) Forecast of Consolidated Results and Other Forecast Information
No revision has been made to the forecasts of financial results for fiscal 2025 announced on May 9, 2024.

English translation of “KESSAN TANSHIN” originally issued in Japanese language-4-

SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2025

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Figures less than 1 million yen have been omitted.)

As ofMarch 31, 2024

As ofJune 30, 2024

Millions of yen

Millions of yen

Cash and deposits

130,441

131,767

Notes and accounts receivable-trade, and contract assets

23,35023,335Marketable securities

74,99964,996Merchandise and finished goods

510

3,274

Work in process

705

289

Raw materials and supplies

14,553

16,032

Other

6,913

11,252(9)(10)

251,465

250,937

26,63026,931

Other

185

172

Total intangible fixed assets

185

172

Investment securities

6,601

6,519

Other

7,286

7,130

(48)

(24)

13,838

13,62540,65440,729292,119

291,667

Assets:Current assets:

Allowance for doubtful accounts
Total current assets

Fixed assets:
Tangible fixed assets
Intangible fixed assets:

Investments and other assets:

Allowance for doubtful accounts
Total investments and other assets
Total fixed assets

Total assets

English translation of "KESSAN TANSHIN" originally issued in Japanese language-5-

SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2025

Consolidated Balance Sheets(Figures less than 1 million yen have been omitted.)

As ofMarch 31, 2024

As ofJune 30, 2024

Millions of yen

Millions of yen

Notes and accounts payable-trade

7,444

13,124

Accrued income taxes

10,311

5,185

Allowance for bonuses

847

1,326

Provision for shareholder benefit program

162

162

Other

12,586

9,612

Total current liabilities

31,352

29,410489

489

Net defined benefit liabilities

5,128

5,125

Asset retirement obligations

76

76

Other

3,493

3,554

Total long-term liabilities

9,187

9,245

40,53938,655

Common stock

14,84014,840Capital surplus

23,75023,750Retained earnings

256,751

258,219

Less: treasury stock, at cost

(48,686)(48,669)

Total shareholders' equity

246,654248,140

3,240

3,184

(32)

(29)

3,208

3,154

1,716

1,716

251,579

253,011

292,119

291,667

Liabilities:
Current liabilities:

Long-term liabilities:
Provision for share awards for directors (and other officers)

Total liabilities

Net Assets:
Shareholders' equity:

Accumulated other comprehensive income:Net unrealized gain on other securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Subscription rights to shares

Total net assets

Total liabilities and total net assets

English translation of "KESSAN TANSHIN" originally issued in Japanese language-6-

SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2025(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Figures less than 1 million yen have been omitted.)

1st quarterof FY2024

1st quarterof FY2025

Millions of yen

Millions of yen

Net sales

50,77742,210

Cost of sales

22,45017,127Gross profit

28,32625,083

9,137

7,810

19,18817,273

Interest income

17

14

Dividend income

173

192

Other

105

97

Total non-operating income

296

304

Loss on management of investment partnership

2

-

Other

0

2

Total non-operating expenses

2

2

19,482

17,575

8-

Gain on sales of investment securities

426-

Total extraordinary gains

434-

Loss on sales of fixed assets

7-

Loss on disposal of fixed assets-

1

Total extraordinary losses

7

1

19,90917,574Current income taxes

5,385

4,932

Deferred income taxes

443

138

Total income taxes

5,829

5,070

Profit14,08012,503

Profit attributable to owners of parent

14,08012,503

Selling, general and administrative expenses
Operating income

Non-operating income:Non-operating expenses:

Recurring income

Extraordinary gains:
Gain on sales of fixed assets

Extraordinary losses:

Income before income taxes and minority interests

Income taxes:

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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2025

Consolidated Statements of Comprehensive Income(Figures less than 1 million yen have been omitted.)

1st quarterof FY2024

1st quarterof FY2025

Millions of yen

Millions of yen

14,08012,503Net unrealized gain (loss) on other securities

414

(56)

Remeasurements of defined benefit plans

2

3

417

(53)

14,49812,44914,49812,449--ProfitOther comprehensive income:

Total other comprehensive income

Comprehensive income

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

English translation of "KESSAN TANSHIN" originally issued in Japanese language-8-

SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2025(3) Notes to the quarterly Consolidated Financial Statements
Notes on premise of a going concern
Not applicable

Notes to Changes in Accounting Policy
Application of Accounting Standard for Current Income Taxes
The “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022;hereinafter, “Revised
Accounting Standard 2022”), etc. has been applied since the beginning of the first quarter of the fiscal year ending March 31,
2025.
Revisions concerning the categories in which current income taxes should be recorded (taxes on other comprehensive income)are subject to the transitional treatment set forth in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 andthe transitional treatment set forth in the proviso of paragraph 65-2 (2) of the Guidance on Accounting Standard for Tax EffectAccounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter, “Revised Guidance 2022”). The change in accounting
policies had no impact on the consolidated financial statements for the first quarter.
With regard to revisions related to changes in the accounting treatment for consolidated financial statements when gains/losses
on sale of shares, etc. in subsidiaries resulting from transactions between consolidated subsidiaries are deferred for tax
purposes, the Company has applied the Revised Guidance 2022 from the beginning of the first quarter. The change inaccounting policies was applied retrospectively to the consolidated financial statements for the first quarter of the previous fiscal
year and the entire previous fiscal year. The change in the accounting policies had no impact on the consolidated financial
statements for the first quarter of the previous fiscal year or the entire previous fiscal year.

Notes on significant changes in shareholders’ equity
1st Three Months of FY2025 (From April 1, 2024, to June 30, 2024)
Not applicable

Notes to Consolidated Statement of Cash Flows
The Company has not prepared a quarterly consolidated statement of cash flows for the first quarter.
Depreciation, including amortization related to intangible assets, for the first quarter is as shown below.

1st quarterof FY2024(April 1, 2023
to June 30, 2023)

Depreciation and amortization

English translation of "KESSAN TANSHIN" originally issued in Japanese language¥503

million

1st quarterof FY2025(April 1, 2024
to June 30, 2024)¥440

million-9-

SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2025

Notes on Segment Information(Segment information by business category)
1st quarter of FY2024 (From April 1, 2023, to June 30, 2023)(Figures less than 1 million yen have been omitted.)

1st quarter of FY2024 (Millions of yen)
Ｒeportable segments
Ball bearing
supply systems
business

Pachinkomachines
business

Pachislot
machines
business

34,887

9,056

6,734

50,67997

50,777-50,777

-

-

-

-

-

-

-

-

Total

34,887

9,056

6,734

50,67997

50,777-50,777

Segment income

14,997

4,818

595

20,41132

20,443(1,255)

19,188

Other

Total

Adjustments

Consolidated

Subtotal

Sales
Customers
Intersegment

1st quarter of FY2025 (From April 1, 2024, to June 30, 2024)(Figures less than 1 million yen have been omitted.)

1st quarter of FY2025 (Millions of yen)
Ｒeportable segments
Ball bearing
supply systems
business

Pachinkomachines
business

Pachislot
machines
business

17,866

16,6107,592

42,070140

42,210-42,210

-

-

-

-

-

-

-

-

Total

17,866

16,6107,592

42,070140

42,210-42,210

Segment income

8,118

9,729

600

18,44846

18,495(1,222)

17,273

Other

Total

Adjustments

Consolidated

Subtotal

Sales
Customers
Intersegment

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