Sankyo Co., Ltd. revised consolidated earnings guidance for the year ending March 31, 2018. For the year, on consolidated basis, the company expects net sales of JPY 84,000 million, operating income of JPY 4,000 million, recurring income of JPY 5,000 million and profit attributable to owners of parent of JPY 3,500 million or JPY 43.12 per share compared to net sales of JPY 97,000 million, operating income of JPY 81,000 million, recurring income of JPY 8,700 million and profit attributable to owners of parent of JPY 5,800 million or JPY 71.45 per share previous guidance. Regarding the pachinko and pachislot industry, as part of measures against compulsive gambling, regulations that partially revise the Regulations Partially Amending the Ordinance for Enforcement of the Act to Control Businesses That May Affect Public Morals and the Regulations Concerning the Certification and Official Inspection of Game Machines are scheduled to come into force on February 1, 2018. Because it is difficult to forecast at this stage how the fans will react to pachinko and pachislot machines compliant with the revised regulations, pachinko parlor operators, the Group's customers, are postponing their decision regarding replacement with the new machines and other review of the model lineup.

The company provided non-consolidated earnings guidance for the year ending March 31, 2018. For the year, on non-consolidated basis, the company expects net sales of JPY 70,900 million, operating income of JPY 500 million, recurring income of JPY 3,300 million and profit attributable to owners of parent of JPY 2,900 million or JPY 35.72 per share. Although sales volumes of pachinko and pachislot machines are expected to decrease from 173,000 units to 164,000 units and from 33,000 units to 29,000 units, respectively, net sales are expected to be slightly higher than the result for the previous fiscal year and amount to JPY 70,900 million, owing to an increase in unit sales prices reflecting change in the sales mix. Regarding profit, recurring income and net income are expected to be lower than the results for the previous fiscal year due to a decrease in dividend income from affiliates, despite an increase in operating income from a growth in net sales.