Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — FY2020/3 Earnings Presentation
36 slides from Sega Sammy's earnings presentation, May 13, 2020
Slide 1: Fiscal Year Ended March 2020 Results Presentation
Fiscal Year Ended March 2020 Results Presentation May 13, 2020 [Disclaimer] Market forecasts, operating results forecast and other information contained in this materials are based on judgements and projections of the Company’s managements based on currently available information. Therefore, please
Slide 2: Current impacts of the spread of COVID-19
Current impacts of the spread of COVID-19 [Response of the Company] Employees to work from home • From end of February - work from home in principle; from April 8 - suspension of going to the office in principle; from May 11 to 31 - work from home in principle (Headquarter at Osaki) [Impact on the
Slide 3: 1. Fiscal Year Ended March 2020 Results
１．Fiscal Year Ended March 2020 Results -3-
Slide 4: Results Highlights
Results Highlights (Unit: billion yen) FY2020/3 Full-year Results 2019/3 2020/3 Full Year Full Year Both sales and profit increased YoY. Results Results Unit sales of Pachislot increased in Pachislot Sales 331.6 366.5 and Pachinko Machines Business. Operating Income 13.0 27.6 Strong performanc
Slide 5: Breakdown of Income
Breakdown of Income (Unit: billion yen) (FY2020/3 Full Year results) Non-operating income/ losses and extraordinary income / losses (JPY Billion) Non-operating income 3.2 Dividends income 0.4 Gain on investments in partnership 0.6 Other 2.2 Non-operating expenses 5.5 Equity in loss of affiliates 2.8
Slide 6: Consolidated Costs and Expenses
Consolidated Costs and Expenses (Unit: billion yen) 2019/3 2020/3 Full Year Full Year 2021/3期 計画 Results Results （Main Factors） R&D Expense / Content Production Expense 66.6 76.5 Increased in association with the launch of new titles in Packaged Games area 19/3期実績 34.4 22.8 Cap-ex 20/3期実績 Decrea
Slide 7: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Unit: billion yen) As of end of As of end of Change Total Current Assets March 2019 260.4 March 2020 268.9 +8.5 Main factors Changes 137.4 159.0 +21.6 ＋8.5 Cash and Deposits Current Assets Accounts Receivable 39.2 40.4 +1.2 Securities 14.5 5.3 -9.2 Cash and deposi
Slide 8: Consolidated Cash Flows
Consolidated Cash Flows Cash Flows from Operating Activities Cash and cash equivalents (Unit: billion yen) Income before income taxes +27.1 Depreciation and amortization +17.1 End of 148.0 Increase in trade notes and FY2019/3 -2.8 accounts receivable - trade CF Decrease in notes and accounts from -6
Slide 9: 2. Per Segments Results
2. Per Segments Results SeEGASammy
Slide 10: Pachislot and Pachinko Machines Business
Pachislot and Pachinko Machines Business Sales Operating income Operating income margin (Unit: billion yen) FY2020/3 Full-year Results Both sales and profit increased YoY. Adjusted release timing for several titles in response to approval status of prototype testing and etc. Profitability impr
Slide 11: Pachislot and Pachinko Machines Business: Major titles in FY2020/3
Pachislot and Pachinko Machines Business Major titles in FY2020/3 Pachislot Pachinko "Pachislot Hokuto No Ken "Pachislot Psalms of "P Anohana: Planets Eureka Seven 3 "P Hokuto No Ken 8 Haou" Tenshou" The Flower We Saw That Day" HI-EVOLUTION ZERO" ©Buronson & Tetsuo Hara/NSP 1983, ©2017 BONES/Project
Slide 12: Pachislot and Pachinko Machines Business: Major titles in FY2021/3
Pachislot and Pachinko Machines Business Major titles in FY2021/3 Pachislot Pachinko "P Psalms of Planets "Pachislot Shin Hokuto Muso" Eureka Seven HI-EVOLUTION ZERO" ©Buronson & Tetsuo Hara/NSP 1983, Approved No.KOM-620 © 2010-2013 Koei Tecmo Games Co., Ltd. ©2017 BONES/Project EUREKA MOVIE ©Sammy
Slide 13: Entertainment Contents Business
Sales Entertainment Contents Business Operating income Operating income margin (Unit: billion yen) FY2020/3 Full-year Results Both sales and profits increased YoY. Revenue in Digital Games area contributed the whole segment. Significant increase in the sales of Packaged Games area - 13 -
Slide 14: Entertainment Contents Business Per Sub Segments
Entertainment Contents Business Per Sub Segments Sub Segment Summary 2019/3 2020/3 ・Recorded one-off revenue from transfer of titles and offering of titles (Billion yen) Results Results ・Expenses decreased due to the impairment loss recorded in the Digital Game Sales 219.6 247.7 previous fiscal year
Slide 15: Digital Games
Digital Games Major Titles for FY2020/3 Major titles in and after FY2021/3 “Fist of the North Star “Phantasy Star Online 2” “Sonic at the Olympic Games – LEGENDS ReVIVE” North American version Tokyo 2020™” ©Buronson & Tetsuo Hara/COAMIX 1983, Approved No.GC-218 (Full service launched in April 2020)
Slide 16: Packaged Games
Packaged Games Major Titles for FY2020/3 Major titles in and after FY2021/3 “Team Sonic Racing” “PERSONA 5 ROYAL” “Ryu ga Gotoku 7” “Total War Saga: TROY” ©SEGA ©ATLUS ©SEGA All rights reserved. ©SEGA © SEGA. Developed by The Creative Assembly Limited. “Mario & Sonic at the Olympic “Total War: Games
Slide 17: Resort Business
Resort Business Sales Operating income (Unit: billion yen) FY2020/3 Full-year Results Sales remained at the same level YoY while the scale of losses expanded. Expenses increased in associated with the enhancement of measures towards domestic Integrated Resort (IR). (PHOENIX RESORT) Despite an
Slide 18: PARADISE SEGASAMMY (Equity method affiliate)
PARADISE SEGASAMMY (Equity method affiliate) Transition of Drop amounts* at Paradise City （KRW Billion） (KRW Million) FY2019 4Q FY2020 4Q Results Results Sales 301.6 463.3 Casino 248.6 375.6 Hotel 50.3 69.2 Other 2.8 18.5 Cost of sales 284.4 391.2 Casino 161.4 210.5 Hotel 99.2 118.3 Other 23.9 62.5
Slide 19: 3. Review of Road to 2020
３．Review of Road to 2020 (FY2018/3 to FY2020/3 Mid-Term Management Plan) - 19 -
Slide 20: Review of Road to 2020: Overall Summary
Review of Road to 2020: Overall Summary Progress toward Mid-Term Plan (Road to 2020) announced on FY2017/5 (Unit: billion yen) Mid-Term Plan︓Target for FY2020/3 Operating Income RT2020 Margin Result 7.5％ 15％ 7.5％ 4.7% ROA Result 5％ 3.0％ Main factors behind the shortfall in achievement of the med-ter
Slide 21: Review of Road to 2020: Pachislot and Pachinko Machines Business
Review of Road to 2020: Pachislot and Pachinko Machines Business Operating KPI target income margin 30％ 23％ (Unit: billion yen) Achieved RT2020 Improvement in profitability by reducing procurement costs mainly through reuse Not Achieved Increase of unit sales - 21 -
Slide 22: Review of Road to 2020: Entertainment Contents Business
Review of Road to 2020: Entertainment Contents Business Operating KPI target income margin 10％ 6％ Operating 30.0 billion 14.8 billion (Unit: billion yen) income yen yen Achieved RT2020 Making mainstay IP as a series Expanding sales in Asia, Europe and the North America Not Achieved Creation of
Slide 23: Review of Road to 2020: Resort Business
Review of Road to 2020: Resort Business Acquisition of know-how toward the entry in IR Accumulated the know-how of Target business development and operation of IR Achieved Acquired Gaming Machine Manufacturer and Distribution Licenses in Nevada, U.S.A. PARADISE CITY achieved the operating profit
Slide 24: Review of Road to 2020: Others (ESG/SDGs related)
Review of Road to 2020: Others (ESG/ SDGs related) Identified five elements as materiality (important issues) and working on inculcation to the whole group and practice ・Reduction of long overtime hours ・Promotion of work-life balance 1. Enhancement of job satisfaction and ・Creating an environment
Slide 25: 4. Impacts of the spread of COVID-19
４．Impacts of the spread of COVID-19 Forecast for fiscal year ending March 2021 and next mid- term management plan is under reconsideration The impacts for each business associated with the spread of COVID-19 we can assume at this point and the response of our company groups to them are described f
Slide 26: Impacts of COVID-19 (Pachislot and Pachinko business) (1)
Impacts of the spread of COVID-19 (Pachislot and Pachinko business) (1) Need to reconsider the launch timing of machines due to a decrease in the number of reception of prototype testing by Security Communications Association and the suspension of operation in pachinko halls. Elements Details • Part
Slide 27: Impacts of COVID-19 (Pachislot and Pachinko business) (2)
Impacts of the spread of COVID-19 (Pachislot and Pachinko business) (2) The vast majority of the pachinko halls in nationwide are suspending the operation of the halls Elements Details • Lottery application for reservation of prototype testing at Security Communications Association is in suspension
Slide 28: Impacts of COVID-19 (Digital and Packaged Games)
Impacts of the spread of COVID-19 (Digital and Packaged Games) Overseas download sales tend to grow, but if the current situation is prolonged, there may be the delay in development schedule. Elements Details • The development environment for employees working from home is being developed, Developme
Slide 29: Impacts of COVID-19 (Amusement Machine sales)
Impacts of the spread of COVID-19 (Amusement Machine sales) Delays in development schedules and decline in orders due to the drop of facility utilization is concerned. Element Details • Delays in the development schedule have begun to occur due to factors such as a Development decline in development
Slide 30: Impacts of COVID-19 (Amusement Center Operation)
Impacts of the spread of COVID-19 (Amusement Center Operation) Temporary closure or shortened operation time of facilities has been incurred and the impact from deterioration in operation of facilities is concerned Elements Details • From March 3 to 24, suspended operations of 9 facilities for kids
Slide 31: Impacts of COVID-19 (Animation and Toys)
Impacts of the spread of COVID-19 (Animation and Toys) If the current situation is prolonged, there may be the delay in development and launch schedule. Elements Details Planning and • There is the possibility of delays in animation production, planning and development development schedules if work
Slide 32: Impacts of COVID-19 (Resort Business)
Impats of the spread of COVID-19 (Resort Business) There are concerns about a decline in demand due to self-restraint on going out and restrictions on travel both in Japan and overseas. Element Details • Since March, limiting the operation format in some facilities, but there have been cancellations
Slide 33: Impacts of COVID-19 (Resort Business)
Impacts of the spread of COVID-19 (Resort Business) There are concerns about a decline in demand due to restrictions on travel among the world. Elements Details • Casino section: From March 24 to April 20, closure of the operation; from AM 6:00 in April 20, operation resumed • Some facilities other
Slide 34: 5. Future Outlook
5. Future Outlook SeEGASammy
Slide 35: 6. Q&A
6. Q&A SeEGASammy
Slide 36: Cautionary Statement for Investors (Nevada Gaming)
https://www.segasammy.co.jp/english/ Cautionary Statement for Investors and Shareholders with Respect to Nevada Gaming Statutes and Please visit below websites for more information of products and service of Regulations SEGASAMMY. SEGA SAMMY HOLDINGS INC. (“the Company”) is registered with the Nevad