Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Q2 FY2020 Earnings Presentation
23 slides from Sega Sammy's earnings presentation, Oct 31, 2019
Slide 1: FY Ending March 2020 2Q Results Phone Conference
(All contents here are the translation of Japanese materials) Thank you for taking the time to be at the phone conference concerning our 2Q results for the fiscal year ending March 31, 2020. I am Yoichi Owaki, Vice President, Senior Executive Officer and Managing Director of the Finance & Accounting
Slide 2: Fiscal Year Ending Mar 2020, 2Q Results / Full Year Forecasts
1. Fiscal Year Ending Mar 2020, 2Q Results / Full Year Forecasts Secasammy
Slide 3: 2Q results overview
We will explain the individual details later, but as a whole, sales decreased and profit increased in 2Q compared with the same cumulative period in the previous fiscal year. Sales decreased mainly because of the drop in sales units in the Pachislot and Pachinko Machines Business compared with the s
Slide 4: Breakdown of income
Let’s move on to page 4, which covers the breakdown of income. As for non-operating expenses, equity in losses of affiliates includes the results of Paradise City for January to June. The margin of losses increased compared with the same period in the previous fiscal year due to an increase in commo
Slide 5: Costs and expenses
Next, page 5 indicates various costs and expenses. R&D expenses increased in association with the launch of new titles in Packaged Games area. Cap-ex decreased compared with the same period in the previous fiscal year as cap- ex increased exceptionally in the previous year as one off expenses associ
Slide 6: Consolidated balance sheet
Now, please look at the consolidated balance sheet on page 6. Among current assets, cash and deposits decreased largely. This is due to acquisition of securities intended for short-term management including certificates of deposit, as well as repayment of interest-bearing debt and payment of dividen
Slide 7: 2Q Results / Full Year Forecast per Segments
2. 2Q Results / Full Year Forecast per Segments SecaSanmy
Slide 8: Pachislot and Pachinko Machines Business
Next, please turn to page 8 for details per segment. First of all, as for the Pachislot and Pachinko Machines Business, we launched major titles such as “Pachislot AnoHana: The Flower We Saw That Day” and “P Hokuto No Ken 8 Haou.” Although sales units of Pachislot increased, sales units of Pachinko
Slide 9: Pachislot and Pachinko Machines Business: major titles
Pachislot and Pachinko Machines Business Major titles in 2Q Titles in and after 3Q Pachislot Machine Pachinko Machine Pachislot Machine Pachinko Machine “Pachislot AnoHana: “P Hokuto No Ken 8 “Pachislot Hokuto No Ken “P GAOGAOKING 3” The Flower We Saw That Day” Haou” Tenshou” ANUHANA PROJECI ©Sammy
Slide 10: Entertainment Contents Business
Next, please turn to page 10. Here is information about the Entertainment Contents Business. In the second quarter, sales and profit increased from the same period in previous fiscal year, led by Digital Games area. Operating income has already exceeded the amount in the full-year forecast for the E
Slide 11: Digital Games area
First, in Digital Games area, we saw a significant year-on-year improvement in profit. In addition to the launch of multiple new titles including “Fist of the North Star LEGENDS ReVIVE,” existing titles performed solidly in general. Furthermore, two titles, namely “Sonic Racing” and “Chu Chu Rocket!
Slide 12: Major topics in 2Q: Digital Games
Major topics in 2Q Launched service of multiple titles MLOICIZ “Fist of the North Star LEGENDS ReVIVE” “ . o ‘Kemono Friends 3’ (©Buronson & Tetsuo Hara/NiSP 1983, Approved No. GC-218 SEGA ‘©Kemono Friends Project2G ©SEGA Digital Games “LEAGUE OF WONDERLAND” SEGA 12
Slide 13: Packaged Games area
Page 13 covers Packaged Games area. In the second quarter, “Mega Drive Mini” was released in Japan, Asia and North America. Although some of the new titles performed below our expectation, repeat sales, etc. have performed solidly. The factor behind the decrease in profit albeit increase in sales fr
Slide 14: Major titles in 2Q and after 3Q: Packaged Games
Major titles in 2Q < . 20204 ED “Mega Drive Mini” “Olympic Games Tokyo 2020 - The Official Video Game” @SFGA TM 1OGTOKYO2020/USOC 96USC220506. ©2019 IOC. All Rights Reserved “PERSONA 5 ROYAL” @ATIUS @SFGA All rights reserved Packaged Games Major titles in and after 3Q “New Sakura Wars” SEGA (©2015 C
Slide 15: Amusement Machine Sales area
Next, please turn to page 15, which covers Amusement Machine Sales area. In the second quarter, although sales of prize machines such as “UFO CATCHER” remained steadily, profit decreased due to utilization of video games sold in the previous fiscal year falling below our expectations as well as incr
Slide 16: Amusement Center Operations area
Page 16 covers Amusement Center Operations area. Amusement Center Operations continued to perform solidly in the second quarter centering on prize machines category, and sales at existing stores was 103.6% year on year. Going forward, 4 new stores are scheduled to be opened while 1 store is to be cl
Slide 17: Animation/Toys area
Page 17 shows Animation/Toys area. As for Animation, we recorded allocated revenue from film distribution for “Detective Conan: The Fist of Blue Sapphire,” which set a series box-office record for revenue. Moreover, Toys performed solidly by selling regular products centering on the "ANPANMAN“ serie
Slide 18: Animation / Toys: topics in and after 3Q
Animation / Toys Topics in and after 3Q yee | 21h pte « Theatrical version of Toys: “WHO are YOU ? Real Rescue” “Lupin The Third THE FIRST” , Designed &©2019Worlds Apart Lid. All Rights Reserved ‘©Monkey Punch/2019 Movie “Lupin The Third" Production Committee GOSEGATOYS 18
Slide 19: Resort Business
Next, let me explain about the Resort Business on page 19. In the Resort Business, although the profitability of PHOENIX RESORT improved, prior investment expenses aimed at participation in domestic Integrated Resort (IR) increased, resulting in an increase in losses. However, performance is at a le
Slide 20: PHOENIX RESORT
I will explain about PHOENIX RESORT on page 20. In the second quarter, despite the impact of repeated natural disasters including typhoons, the number of users increased due to implementation of various measures including those during summer vacation, enhancement of promotions targeting the Kyushu a
Slide 21: 25th Anniversary of SEAGAIA
25th Anniversary of SEAGAIA 25RD > YH 4-Tihe ZIRE PHOENIX RESORT we -21- 21
Slide 22: Paradise Segasammy results
Page 21 shows the results for PARADISE SEGASAMMY, our equity-method affiliate. Since the figures for PARADISE SEGASAMMY are recorded with a delay of three months, the results shown here are for January to June 2019, which shows an increase in losses from the same period in previous fiscal year. This
Slide 23: Nevada gaming notice and website list
https://www.segasammy.co.jp/english/ c y for and with Respect to Nevada Gaming and Please visit below websites for products and service information. Regulations hipr hum ‘SEGA SAMMY HOLDINGS INC. (‘the Company’) is registered with the Nevada Commission as a publicly traded corporation and has been f
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