Interim report
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パチンコ で 、 _∽∽ 笑颜 。 Good luck . Good life . SANKYO Consolidated Financial Statements for the First Quarter of FY2027 SANKYO CO . , LTD . April 1 , 2026 , to June 30 , 2026 ( The Year Ending March 31 , 2027 ) https://www.sankyo-fever.co.jp/ Shares listed : TSE Prime Market Representative : Contact : Toshio Ogura , President & CEO & COO Code number : 6417 Masahiro Akaishi , Senior Executive Operating Officer & Head of Administration Div . + 81-3-5778-7777 Telephone : Supplementary materials for the quarterly financial statements : Presentation to explain for the quarterly financial statements : Yes No FASF August 6 , 2026 ( Figures less than 1 million yen have been omitted . ) 1. Results for the first quarter of FY2027 ( From April 1 , 2026 , to June 30 , 2026 ) ( 1 ) Consolidated operating results 1st quarter of FY2027 1st quarter of FY2026 ( Note ) Comprehensive income Net sales Millions of yen 33,571 ( 39.2 % ) 55,185 Operating income Recurring income Millions of yen 10,496 30.7 % 23,851 ( 56.0 % ) 38.1 % 1st quarter of FY2027 ¥ 7,926 million [ ( 54.5 % ) ] 24,391 1st quarter of FY2026 38.8 % ( Percentage figures denote year - over - year changes . ) Millions of yen 11,108 ( 54.5 % ) Profit attributable to owners of parent Millions of yen 8,074 ( 53.7 % ) 17,447 39.5 % ¥ 17,431 million [ 40.0 % ] Net income per share Fully diluted net Yen 1st quarter of FY2027 40.88 80.36 income per share Yen 40.34 79.32 1st quarter of FY2026 ( 2 ) Consolidated financial position Total assets As of June 30 , 2026 As of March 31 , 2026 Millions of yen 287,611 287,458 Net assets Capital adequacy ratio ( Reference ) Shareholders ' Equity As of June 30 , 2026 Millions of yen 249,137 250,155 ¥ 247,659 million % 86.1 86.5 As of March 31 , 2026 ¥ 248,677 million 2. Dividends 1st quarter 2nd quarter ( Base date ) Yen Year ended March 31 , 2026 Yen 45.00 Year ending March 31 , 2027 Year ending March 31 , 2027 ( Forecast ) 50.00 ( Note ) Changes in the projected cash dividends in this quarter : Yes 3. Forecast for FY2027 ( From April 1 , 2026 , to March 31 , 2027 ) Year ending March 31 , 2027 Cash dividend per share 3rd quarter Yen Year - end Full Year Yen Yen 45.00 90.00 50.00 100.00 ( Percentage figures denote year - over - year changes . ) Net sales Millions of yen 174,000 Operating income Millions of yen Recurring income Millions of yen Profit attributable Net income to owners of per share ( 2.9 % ) 56,000 ( 10.4 % ) 58,000 ( 9.4 % ) Millions of yen 40,000 ( 14.4 % ) Yen 202.52 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 -1-
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* 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.: Not applicable b. Other changes: Not applicable c. Changes in accounting estimates: Not applicable d. Retrospective restatements: Not applicable (4) Outstanding shares (common shares) a. No. of shares outstanding (including treasury stock) As of June 30, 2026: shares As of March 31, 2026: shares b. No. of treasury stock As of June 30, 2026: shares As of March 31, 2026: shares c. Average number of shares issued and outstanding 1st quarter of FY2027: shares 1st quarter of FY2026 shares *Review of the attached quarterly consolidated financial statements by Certified Public Accountants or Audit Firm: Not applicable (Note) The No. of treasury stock includes the Company’s shares held by Share Benefit Trust for Directors (1,247,500 shares as of June 30, 2026, 1,247,500 shares As of March 31, 2026). 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 (1,247,500 shares as of June 30, 2026,1,318,005 shares as of June 30, 2025) 32,486,271 217,122,696197,513,729 230,000,000 32,486,271 230,000,000 * 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 and which 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)Forecast of Consolidated Results and Other Forecast Information” in the accompanying material. Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. English translation of "KESSAN TANSHIN" originally issued in Japanese language - 2 -
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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2027 English translation of “KESSAN TANSHIN” originally issued in Japanese language - 3 - (1) Overview of Operating Results In the pachinko and pachislot industry, in contrast to the pachislot market, where machine utilization remained solid and par lor operators’ purchasing demand was stable, the pachinko market saw parlor operators become increasingly cautious in selecting new machines against a backdrop of sluggish machine utilization, and total sales volume fell below the level of the same period of the previous fiscal year. In these circumstances, during the first quarter of the current fiscal year, the Group introduced the new pricing policy “SAN KYO YELL PRICE” with the aim of revitalizing the pachinko market by reducing the financial burden of new machine introduction for parlor operators through price revisions. In the pachinko machines business, the Group launched three new titles, including tw o titles subject to this policy, and also responded to the needs for the manufacture of additional units of two existing titles with strong machine utilization. In addition, in June, the Group launched “e Tokyo Ghoul Chōdeka Chō Ichigeki ver.,” a new-spec version of “e Tokyo Ghoul,” which continues to enjoy overwhelming popularity even now, more than a year after its debut in April of last year, and the new model has gained high popularity. Meanwhile, in the pachislot machines business, the Group launched one new title, and also responded to the needs for the manufacture of additional units of one existing title that maintained strong machine utilization; both businesses got off to a solid start against their full-year plans. As a result, on a consolidated basis, net sales were ¥ 33.5 billion, a decrease of 39.2% compared with the same period of t he previous year, operating income was ¥10.4 billion, a decrease of 56. 0%, and recurring income was ¥11.1 billion, a decrease of 54.5%. Profit attributable to owners of parent amounted to ¥8.0 billion, a decrease of 53.7%. Results of segments are presented below: Pachinko Machines Business Regarding the pachinko machines business, sales amounted to ¥22.1 billion, a decrease of 39.5% compared with the same period of the previous year, and operating income amounted to ¥9.0 billion, a decrease of 48.9%. Sales of pachinko machines amounted to 50,000 units, compared with 79,000 units for the same period of the previous fiscal year. Three titles released included e Fever Kinnikuman (introduced in April 2026), Fever Queen II (introduced in May 2026), and e Fever DEAD MOUNT DEATH PLAY Konshin 9000 (introduced in June 2026) under the SANKYO brand. Pachislot Machines Business Regarding the pachislot machines business, sales amounted to ¥8.2 billion, a decrease of 45.0% compared with the same period of the previous year, and operating income was ¥2.9 billion, a decrease of 61.7%. Sales of pachislot machines amounted to 16,000 units, compared with 35,000 units for the same period of the previous fiscal year. Although L Pachislot MOBILE SUIT GUNDAM UNICORN Awakening DRIVE (introduced in April 2026) under the Bisty brand was the only new title introduced during the first three months of the fiscal year ending March 31, 2027, the Group manufactured additional units of L Pachislot ENN ENN NO SHOUBOUTAI 2 under the SANKYO brand, which has achieved strong machine utilization. Ball Bearing Supply Systems Business Sales of the ball bearing supply systems business were ¥ 2.9 billion, a decrease of 10.3% compared with the same period of the previous year, and operating income was ¥0.1 billion, a decrease of 25.0%. Other Businesses Sales of other businesses were ¥0.1 billion, an increase of 6.9% compared with the same period of the previous year, and operating income was ¥30 million, an increase of 3.6%. (2) Overview of Financial Conditions Total assets at the end of the first three months of the f iscal year ending March 31, 202 7 amounted to ¥287. 6 billion, having increased ¥0.1 billion compared with the figure at the previous fiscal year -end. This increase was mainly attributable to a ¥10.6 billion increase in notes and accounts receivable-trade, and contract assets , a ¥5.8 billion increase in accounts receivable for provision of parts and materials for value (included in “Other” of Current assets), a ¥1.8 billion increase in raw materials and supplies, and a ¥1.5 billion increase in merchandise and finished goods, despite a ¥19.7 billion decrease in cash and deposits. Total liabilities amounted to ¥38. 4 billion, having in creased ¥1.1 billion compared with the figure at the previous fiscal year -end. This increase was mainly attributable to a ¥5.5 billion increase in notes and accounts payable-trade, a ¥1.5 billion increase in liabilities related to transactions involving provision of parts and materials for value (included in “Other” of Current liabilities), and a ¥0.5 billion increase in allowance for bonuses, despite a ¥6.5 billion decrease in accrued income taxes. Net assets decreased ¥1.0 billion compared with the figure at the previous fiscal year -end. This decrease was mainly attributable to cash dividends paid amounting to ¥8.9 billion, while recording of profit attributable to owners of parent amounted to ¥8.0 billion. As a result, net assets amounted to ¥249.1 billion and the shareholders’ equity ratio decreased 0.4 percentage points to 86.1%. 1. Overview of Operating Results
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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2027 English translation of “KESSAN TANSHIN” originally issued in Japanese language - 4 - (3) Forecast of Consolidated Results and Other Forecast Information No revision has been made to the forecasts of financial results for fiscal 2027 announced on May 13, 2026. However, with regard to dividends, the Group has revised the projected cash dividends announced on May 13, 2026. For details, please refer to “Notice concerning Change in Dividend Policy (Increase in Dividend Payout Ratio and Introduction of DOE) and Revision of Projected Cash Dividends (Dividend Increase),” disclosed separately today (August 6, 2026).
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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2027 2. Quarterly Consolidated Financial Statements and Primary Notes (1) Quarterly Consolidated Balance Sheets (Figures less than 1 million yen have been omitted.) Assets: Current assets: Cash and deposits Notes and accounts receivable-trade, and contract assets Electronically recorded monetary claims - operating Marketable securities Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Fixed assets: Tangible fixed assets Intangible fixed assets: Other Total intangible fixed assets Investments and other assets: Investment securities Other Allowance for doubtful accounts Total investments and other assets Total fixed assets Total assets 1,518 41,283 16,587 (15) 6,728 (75) 287,611 16,201 287,458 6,351 9,578 15,852 (76) 355 364 57,719 9,548 57,501 9,987 15,656 4,832 (8) 7,152 6,344 15,491 As of June 30, 2026 59,972 132,463 364 Millions of yen Millions of yen 112,673 As of March 31, 2026 59,976 229,956 355 3,063 230 117 229,892 41,162 13,804 English translation of "KESSAN TANSHIN" originally issued in Japanese language - 5 -
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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2027 Quarterly Consolidated Balance Sheets (Figures less than 1 million yen have been omitted.) Liabilities: Current liabilities: Notes and accounts payable-trade Accrued income taxes Allowance for bonuses Provision for shareholder benefit program Other Total current liabilities Long-term liabilities: Provision for share awards for directors (and other officers) Net defined benefit liabilities Asset retirement obligations Other Total long-term liabilities Total liabilities Net Assets: Shareholders' equity: Common stock Capital surplus Retained earnings Less: treasury stock, at cost Total 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 As of March 31, 2026 1,434 Millions of yen As of June 30, 2026 3,243 63 9,542 (55,795) 23,750 14,840 9,484 38,473 244,564 245,434 37,302 4,571 28,931 4,550 7,769 Millions of yen 13,367 9,613 10,968 3,729 261,769 63 3,693 9,387 144 144 903 27,817 3,017 1,177 1,177 287,458 287,611 2,774 250,155 249,137 (55,795) 14,840 23,750 2,902 262,639 1,478 3,095 340 321 1,478 English translation of "KESSAN TANSHIN" originally issued in Japanese language - 6 -
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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2027 (2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income Quarterly Consolidated Statements of Income (Figures less than 1 million yen have been omitted.) Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income: Interest income Dividend income Other Total non-operating income Non-operating expenses: Loss on management of investment partnership Other Total non-operating expenses Recurring income Income before income taxes and minority interests Income taxes: Current income taxes Deferred income taxes Total income taxes Profit Profit attributable to owners of parent - 0 0 0 24,391 11,108 2 1 6,943 3,033 489 163 17,447 8,074 20,274 33,896 541 612 135 259 9,777 10,044 182 1st quarter of FY2027 1st quarter of FY2026 Millions of yenMillions of yen 13,297 21,289 33,571 55,185 164 23,851 10,496 312 100 17,447 8,074 24,391 11,108 2,870 6,454 English translation of "KESSAN TANSHIN" originally issued in Japanese language - 7 -
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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2027 Quarterly Consolidated Statements of Comprehensive Income (Figures less than 1 million yen have been omitted.) Profit Other comprehensive income: Net unrealized gain (loss) on other securities Remeasurements of defined benefit plans Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of the parent Comprehensive income attributable to non-controlling interests 1st quarter of FY2026 Millions of yen 17,431 3 (19) 17,431 17,447 (16) 1st quarter of FY2027 Millions of yen (128) (19) 8,074 (147) 7,926 - 7,926 - English translation of "KESSAN TANSHIN" originally issued in Japanese language - 8 -
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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2027 (3) Notes to the Quarterly Consolidated Financial Statements Notes on premise of a going concern Not applicable Notes on significant changes in shareholders’ equity 1st Three Months of FY2027 (From April 1, 2026, to June 30, 2026) Not applicable Notes to Consolidated Statement of Cash Flows Depreciation and amortization million million¥739 1st Three Months of FY2027 (April 1, 2026 to June 30, 2026) 1st Three Months of FY2026 (April 1, 2025 to June 30, 2025) The Company has not prepared a quarterly consolidated statement of cash flows for the first three months of the fiscal year ending March 31, 2027. Depreciation, including amortization related to intangible assets, for the first three months of the fiscal year ending March 31, 2027 is as shown below. ¥543 English translation of "KESSAN TANSHIN" originally issued in Japanese language - 9 -
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SANKYO CO., LTD. (TSE #6417) Results for 1st Quarter of FY2027 Notes on Segment Information (Segment information by business category) 1st quarter of FY2026 (From April 1, 2025, to June 30, 2025) (Figures less than 1 million yen have been omitted.) Sales Customers Intersegment Total Segment income 1st quarter of FY2027 (From April 1, 2026, to June 30, 2026) (Figures less than 1 million yen have been omitted.) Sales Customers Intersegment Total Segment income 1st quarter of FY2026 (Millions of yen) 1st quarter of FY2027 (Millions of yen) Reportable segments Other Total Adjustments 22,197 - 33,467 - - 12,141 104 12,172 30 Pachislot machines business Ball bearing supply systems business Subtotal Pachinko machines business - 97 17,644 7,686 233 - 33,571 - 33,467 29 25,594 33,571 - 104 23,851 Consolidated - (1,742)25,564 9,022 2,943 22,197 8,274 2,995 - - 8,274 175 (1,676) 33,571 10,496 - 33,571 97 Pachinko machines business 55,185 - - 55,185 Consolidated - - 2,995 55,185 - 55,185 Reportable segments Other Total Adjustments 36,712 15,037 3,337 55,088 Ball bearing supply systems business Subtotal - - - - 36,712 15,037 3,337 55,088 Pachislot machines business English translation of "KESSAN TANSHIN" originally issued in Japanese language - 10 -