Earnings Presentation Materials

Overview of Results

Sankyo Co., Ltd. announced its second quarter (interim) results for the fiscal year ending March 2027. By segment, pachinko machine-related business revenue was 50,001 million yen, pachislot machine-related business was 25,082 million yen, supply equipment-related business was 5,733 million yen, and other businesses were 208 million yen. Total revenue was 81,025 million yen, operating income was 27,307 million yen, and selling, general and administrative expenses were 21,022 million yen. Revenue and profit decreased year-over-year. For the second half, increasing pachislot unit shipments is cited as a challenge as the company aims to achieve the full-year plan.

Shareholder Returns and Dividend Policy

In August 2026 the company revised its dividend policy. The basic policy is to pay the higher of a 50% payout ratio or DOE of 5%, and an interim dividend of 50 yen was implemented. Introduction of DOE allows dividends to more proactively reflect periods of strong performance, while DOE helps maintain stability in downswings. The company intends, in principle, to maintain the annual dividend amount. Factors considered for share buyback decisions include stock price, performance, shareholder feedback, the management environment, and investment opportunities.