P t ti Presentation on CLSA Japan Forum 2012

Presentation
P
t ti on
CLSA Japan Forum 2012
Kimihisa Tsutsui
Director & Senior Executive Vice President
February 27, 2012 at Grand Hyatt Tokyo
The Company's plans, strategies and forecasts, except historical facts, contained in this
document may be subject to change due to factors of risk and uncertainty. Therefore, the
Company does not guarantee their attainability explicitly or implicitly.
The Company assumes that the ‘factors of potential risk and uncertainty’ may include the
economic climate, especially concerning the pachinko and pachislot markets which
constitute the Company’s main business field, competition in the market and
competitiveness of the Company’s products, and also include other unpredictable factors.
Company Overview
C
Company
O
Overview
i
2
SANKYO CO., LTD.
1st Sec. of the TSE #6417
Development, Manufacture, and Sales
of Pachinko and Pachislot Machines
2 Brands Structure
5
5-year
Fi
Financial
i l Highlights
Hi hli h
Consolidated: mill. yen
Net Sales
3
Forecast
FY 3/2008 FY 3/2009 FY 3/2010 FY 3/2011 FY 3/2012
280,511
187,877
222,673
201,606
160,000
Pachinko Machines
217,955
133,195
180,471
149,876
110,000
Pachislot Machines
40,511
33,598
23,698
30,316
25,000
Ball Bearing Suppry Systems
20,652
19,566
17,118
19,652
23,600
Other Business
1,391
1,516
1,385
1,761
1,400
Operating Income
72,294
40,626
55,776
51,923
33,000
(persentage)
(25 8%)
(25.8%)
(21 6%)
(21.6%)
(25 0%)
(25.0%)
(25 8%)
(25.8%)
(20 6%)
(20.6%)
Recurring Income
75,770
44,900
59,366
55,909
37,000
Net Income
45,672
27,883
36,198
34,733
21,000
Net Income per Share (basic)
Y468.78
Y288.92
Y376.00
Y364.09
Y224.73
Sales Units: Pachinko
725,819
451,941
572,464
424,533
322,000
Sales Units: Pachislot
169,239
133,714
104,266
116,424
100,000
A l Coverage
Analyst
C
4
Mr. Koki Shiraishi
Mr. Satoru Kikuchi
Mr. Masanori Minami
Mr. Yoshihiko Tabei
Mr. Takeshi Koyama
Mr. Yuta Sakurai
Mr. Masashi Morita
Mr. Eiji Maeda
Source: QUICK
Mr. Souichiro Fukuda
F
Focused
d on Game
G
Machine-related
M hi
l d Businesses
B i
S l Composition
Sales
C
ii
10.7%
15.0%
74.3%
Pachinko Machines
Pachislot Machines
Ball Bearing Supply Systems and Others
5
P
Prosper
with
i h the
h Pachinko
P hi k Industry
I d
6
2012
2001
1992
1980
1975
Fever Powerful III
CR Fever
Wide Powerful
Fever
Open Tulip
CR Evangelion
E
g li 7
30% off the
h LLeisure
i
M
Market
k
L i
Leisure
Market
M k
7
67.9
67 9 trill.
ill yen
19.3
trill. yen
Pachinko player population:
16.7 million
1 in every 6.3 adults
Pachinko Rental Ball Fee
Source: Japan Productivity Center for Socio-Economic Development
S
Structure
off P
Pachinko
hi k IIndustry
d
Pachinko Rental
Ball Fee
19.3 trill. yen
Gross Profit
of Parlor
3.0 trill. yen
Prize
（85%）
Other Expenses
Operating Income
（2/3）
Gross Profit
（15%）
Cost of
Machine
Purchase
（1/3）
8
Size of Game
Machine Market
1 0 ttrill.
1.0
ill yen
Si off Pachinko
Size
P hi k Machine
M hi Market
M k
9
978
856
3,173
900
886
800
3,331
3,332
2,900
Challenging for the time being
2,500
Market Size (bn. yen)
No. of Sales for Pachinko Machines
((thou. units))
CY2007
2008
2009
2010
2011E
Source: Yano Research Institute Ltd.
Sh
Share
off P
Pachinko
hi k Machine
M hi Market
M k (unit
( i basis)
b i )
10
D i
Dominance
off top-tier
i companies
i
17.2%
29 3%
29.3%
12-13%
29 8%
29.8%
CY 2009
SANKYO
14.6%
Kyoraku
CY 2010
Sanyo
Sammy
CY 2011E
Newgin
Others
Source: Yano Research Institute Ltd.
Si off Pachislot
Size
P hi l Machine
M hi Market
M k
11
500
370
286
242
225
Upward trend after hitting
bottom in 2009
1,744
913
765
979
1,150
,
Market Size (bn. yen)
No. of Sales for Pachislot Machines
((thou. units))
CY2007
2008
2009
2010
2011E
Source: Yano Research Institute Ltd.
Sh
Share
off Pachislot
P hi l Machine
M hi Market
M k (unit
( i basis)
b i )
12
I
Increasing
i dominance
d i
off top-tier
i companies
i
13.6%
34 7%
34.7%
23 5%
23.5%
CY 2009
SANKYO
9-10%
11.9%
Sammy
CY 2010
Daito
Universal
CY 2011E
Yamasa
Others
Source: Yano Research Institute Ltd.
“E
“Evangelion”
li ” Bolstered
B l
dS
Sales
l and
d Profit
P fi
N S
Net
Sales
l (mill.
( ill yen))
280,511
222,673
,
201,606
187 877
187,877
160,000
42%
29%
18%
44%
31%
Sales of “Evangelion” series (value)
3/2008 3/2009 3/2010 3/2011 3/2012E
13
Present Situation
and Initiatives
SANKYO’ Ideal
SANKYO’s
Id l P
Profile
fil
15
Expansion of the Market
No.1
Market Capitalization
No.1
No
1
Market Share
No.1
N
1
Popularity among Players
FY 3/2012
R i i off the
Revision
h Forecast
F
(FY 3/2012)
FY 3/2012
16
(2-Feb)
(13-May)
Change
160 000
160,000
182 000
182,000
-22,000
,
Operating Income
33,000
40,000
-7,000
Recurring Income
37,000
43,000
-6,000
Net Income
21,000
26,000
-5,000
million yen
Net Sales
-12.1%
-17.5%
17 5%
-14.0%
-19.2%
Sales Units:
Pachinko
322,000
369,000
-47,000
Sales Units:
Pachislot
100,000
169,000
-69,000
-12.7%
-40.8%
Limited Popularity of Models Introduced in 3Q
among Players
Pl
17
Sales Units
The Story of ayumi hamasaki
–Introduction
I t d ti
Fever Space
p
Battleship
p
YAMATO
Evangelion
g
7
F
Fever
Macross
M
Frontier
F ti
Fever Lucent
Pachislot X JAPAN
Pachinko
Pachislot
Mumu World DX II
Popularity among Players
Introduction of Promising Products Postponed to
the Next Fiscal Year
4Q FY 3/2012
Fever Haouden ZERO
18
FY 3/2013
Fever Space Battleship YAMATO
-- Amadeji & Tamashii 7
2 Titles
Evangelion 7
Evangelion-- the Heartbeat of Life
Pachinko
Pachislot
3 Titles
Fl i Start
Flying
S
off “Evangelion
“E
li 7” Pachinko
P hi k M
Machine
hi
High hopes for vitalization of the lackluster
mid-spec segment
Entrenched popularity of Evangelion
recognized anew
19
N
Next
is
i SANKYO
20
“This may be a new idea”
New development structure came
into its own
Line-up of super-powerful content
“2009: Future Research Team launched”
The Issue is to Expand the Base of
Individual Shareholders
21
Sh h ld Composition
Shareholder
C
ii
4.1%
19.9%
45 1%
45.1%
4.1%
Owners Group
Foreigners
Individuals
26.8%
Others
Treasury Stock
As of September 30, 2011
Di id d Policy
Dividend
P li
22
Di id d per Share
Dividends
Sh
(yen)
3/1992
25
3/1993
/
- 3/1995
/
30
3/1996 - 3/1997
40
3/1998
50*
3/1999 - 3/2004
40
3/2005
70
3/2006 - 3/2007
100
3/2008 -
150
No dividend cut since the listing
Commitment to 25% payout ratio
*Note: Commemorative dividends
Sh
Share
B
Buyback
b k Policy
P li
23
Sh h ld Composition
Shareholder
C
ii
Treasury
Stock
Oth
Others
Owners
Group
Decide the timing and the
amount flexibly
Purchase shares from the
owners group as well as from
other shareholders
As of September 30, 2011
SANKYO Highlights
Hi hli h
1
Focused on Game Machine-related Businesses
2
“Evangelion” Bolstered Sales and Profit
3
Three No. 1’s (Popularity among Players, Market Share, Market Capitalization)
4
Flexible Share Buyback
5
No Dividend Cut since the Listing in 1991
24