Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Q1 FY2023/3 Earnings Presentation
33 slides from Sega Sammy's earnings presentation, Aug 4, 2022
Slide 1: Fiscal Year Ending March 2023 Q1 Results Presentation
Fiscal Year Ending March 2023 Q1 Results Presentation 2022/8/4 Market forecasts, operating results forecast, and other information contained in this material are based on judgements and projections of the Company‘s managements based on currently available information. Therefore, please understand th
Slide 2: FY2023/3 Q1 Results / Forecast
01 FY2023/3 Q1 Results / Forecast -2-
Slide 3: Results Highlights
Results Highlights (Billion yen) 2022/3 2023/3 Full Year Full Year FY2023/3 Q1 Results Q1 Q1 Results Forecast Sales 59.4 320.9 66.1 375.0 ➢ Overall results were generally in line with Entertainment Contents 47.4 235.9 52.7 277.0 Pachislot and Pachinko Machines 10.3 75.8 10.5 86.0 expectations Resort
Slide 4: Breakdown of Income (FY2023/3 Q1 results)
Breakdown of Income (FY2023/3 Q1 results) (Unit: billion yen) Operating income 2.7 Breakdown of non-operating income/losses and extraordinary income/losses Non-operating income 2.5 Non-operating income 2.5 Non-operating Foreign exchange gains 1.5 expenses 1.0 Dividends income 0.4 Ordinary income 4.2
Slide 5: Impact of Exchange Rate Fluctuations
Impact of Exchange Rate Fluctuations [Impact of foreign exchange on Q1 results] ➢ Positive impact of approx. 1.5 billion yen for sales and approx. 0.8 billion yen for operating income (vs. forecast) • 1 USD: Forecast 114 yen → AR128 yen (Mainly affected sales increase) CS* • 1 GBP: Forecast 157 yen
Slide 6: Costs and Expenses, etc.
Costs and Expenses, etc. ■Entertainment Contents (Billion yen) 2021/3 2022/3 2023/3 2023/3 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Forecast R&D / Content production expenses 9.2 9.8 11.8 14.7 9.9 13.5 12.7 18.3 11.9 66.6 Advertising expenses 1.7 2.8 3.3 3.7 2.2 3.9 3.7 4.4 2.7 19.0 Depreciation 2.2 2.3
Slide 7: Costs and Expenses, etc.
Costs and Expenses, etc. ■Resort (Billion yen) 2021/3 2022/3 2023/3 2023/3 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Forecast R&D / Content production expenses 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.1 0.0 0.0 Advertising expenses 0.0 0.1 0.1 0.0 0.0 0.2 0.1 0.0 0.0 0.4 Depreciation 0.2 0.2 0.3 0.2 0.1 0.2 0.2 0.1
Slide 8: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Billion yen) 【Assets】 【Liabilities and Net Assets】 As of end of As of end of Increase As of end of As of end of Increase Account Account March 2022 June 2022 /Decrease March 2022 June 2022 /Decrease Cash and Deposits 152.4 111.5 -40.9 Accounts Payable 24.4 21.5 -2
Slide 9: Per Segments Results / Forecast
02 Per Segments Results / Forecast -9-
Slide 10: Entertainment Contents Business
Entertainment Contents Business (Billion yen) 2022/3 2023/3 Full Year Full Year FY2023/3 Q1 Results Q1 Q1 Results Forecast Sales 47.4 235.9 52.7 277.0 ➢ Overall results were generally in line with Consumer 29.5 158.3 34.7 192.0 expectations Amusement Machine Sales 11.4 49.7 13.1 55.8 Animation / Toy
Slide 11: Entertainment Contents Business: Per Subsegments
Entertainment Contents Business: Per Subsegments FY2023/3 Q1 Results Forecast Full • Released three new titles • Full-scale sales of mainstay new titles start from Q2 onward; Game • Repeat sales slightly went below expectations "SONIC FRONTIERS", Persona Series (Remaster), etc. • Strong performance
Slide 12: Consumer Area / Full Game: Sales Trend
Consumer Area / Full Game: Sales Trend (Unit: billion yen) -12-
Slide 13: Consumer Area / F2P: Sales Trend
Consumer Area / F2P: Sales Trend "HATSUNE MIKU: COLORFUL STAGE!" "PHANTASY STAR ONLINE 2 NEW GENESIS" (Unit: billion yen) “PHANTASY STAR ONLINE 2” (2012/7~) “SEGA NET MAHJONG MJ“ (2013/7~) Top 3 titles in sales from Apr. - Jun. 2022 (No. 1) (No. 2) (No. 3) “PHANTASY STAR ONLINE 2 "HATSUNE MIKU: COLO
Slide 14: (Reference) Consumer Area: Sales Trend
(Reference) Consumer Area: Sales Trend (Billion yen) 2022/3 2023/3 Through Through Through Full Year Q1 Q1 Q2 Q3 Q4 Forecast Sales 29.5 71.2 119.6 158.3 34.7 192.0 Domestic 13.0 30.9 50.3 66.6 15.7 66.1 Overseas 16.7 40.3 69.4 92.0 19.2 126.1 Overseas sales ratio 56.6% 56.6% 58.0% 58.1% 55.3% 65.7%
Slide 15: (Reference) Consumer Area / Full Game: Unit Sales Trend
(Reference) Consumer Area / Full Game: Unit Sales Trend 2022/3 2023/3 Through Through Through Full Year Q1 Q1 Q2 Q3 Q4 Forecast Full Game: Number of Titles Japan 0 title 3 titles 5 titles 6 titles 3 titles 15 titles Asia 1 title 4 titles 7 titles 9 titles 3 titles 15 titles North America / Europe 3
Slide 16: (Reference) Consumer Area / Full Game: Major New Titles
(Reference) Consumer Area / Full Game: Major New Titles [FY2023/3 Q1 New titles] “13 Sentinels: Aegis Rim” “Hatsune Miku: Project DIVA Mega Mix+” “Sonic Origins” （for Nintendo Switch™） (for PC) ©SEGA ©ATLUS. © SEGA / © Crypton Future Media, INC. www.piapro.net ©SEGA. All rights reserved. -16-
Slide 17: (Reference) Consumer Area / Full Game: Major New Titles
(Reference) Consumer Area / Full Game: Major New Titles [FY2023/3 New titles (plan)] *Only announced titles are listed “Soul Hackers 2” “Two Point Campus” “SONIC FRONTIERS” ©ATLUS. ©Two Point Studios 2022. Published by SEGA. ©SEGA ©SEGA. All rights reserved. “Persona 5 Royal” “Persona 3 Portable” “P
Slide 18: (Reference) Entertainment Contents Business: Sales Schedule
(Reference) Entertainment Contents Business: Sales Schedule ~FY2023/3 Q1 In or after FY2023/3 Q2 (plan) 13 Sentinels: Aegis Rim Persona 5 Royal Soul Hackers 2 (for Nintendo Switch™) (Remaster) Persona 3 Portable Sonic Origins Two Point Campus New titles (Remaster) Full Game Hatsune Miku: Project DIV
Slide 19: (Reference) Entertainment Contents Business: Sales Schedule
(Reference) Entertainment Contents Business: Sales Schedule ~FY2023/3 Q1 In or after FY2023/3 Q2 (plan) StarHorse4 / EIKETSU TAISEN / maimai DX / CHUNITHM / O.N.G.E.K.I. / <Major titles in operation> INITIAL D THE ARCADE / KanColle Arcade / Fate Grand Order Arcade / lalamee Amusement Machine <Major
Slide 20: Pachislot and Pachinko Machines Business
Pachislot and Pachinko Machines Business (Billion yen) 2022/3 2023/3 Full Year Full Year FY2023/3 Q1 Results Q1 Q1 Results Forecast Sales 10.3 75.8 10.5 86.0 ➢ Went in line with expectation Pachislot 3.4 30.6 3.3 32.7 • Major titles sold: Pachinko 4.7 37.1 5.1 44.5 Other / Elimination 2.2 8.1 2.1 8.
Slide 21: Pachislot: No. 6.5 models of the Company
Pachislot: No. 6.5 models of the Company Started the launch of No. 6.5 models from July 2022 ➢ “Pachislot Kabaneri of the Iron Fortress” (Delivery: July 2022) • Strong start in both sales and utilization ➢ Continue to launch more No. 6.5 models • "Pachislot Persona 5" (Delivery: September 2022) • “P
Slide 22: Revision of regulation in the future
Revision of regulation in the future Future revision of the regulation will further expand the range of gameplay • Extension of upper limit in advantageous section (extension of upper limit of number of games) No. 6.5 model (Changed from 3,000G limit to 4,000G limit) (from June 2022) • Revision of m
Slide 23: (Reference) Pachislot & Pachinko Machines Business: New series Sales Schedule
(Reference) Pachislot & Pachinko Machines Business: New series Sales Schedule Specification changed title ～FY2023/3 Q1 In or after FY2023/3 Q2 (plan) Pachislot Kabaneri of the Pachislot Pachislot RYUKYU BEAT-30 Pachislot Konosuba: Iron Fortress God’s Blessing on This Wonderful Pachislot KEMONO FRIEN
Slide 24: Resort Business
Resort Business (Billion yen) 2022/3 2023/3 Full Year Full Year FY2023/3 Q1 Results Q1 Q1 Results Forecast Sales 1.5 8.6 2.6 11.5 ➢ PHOENIX RESORT: Recovery trend centered on Operating Income -1.1 -2.5 -0.3 -1.2 individual customers Non-operating income 0.0 0.0 0.0 0.0 • Measures to stimulate touris
Slide 25: (Reference) Status of Each Facility: PHOENIX RESORT
(Reference) Status of Each Facility: PHOENIX RESORT ◼ PHOENIX RESORT: Sales by type of facility users • Due to the strong performance of individual customers, sales and the number of facility users have been higher than before COVID-19 • Group customers are also expected to recover in the future -25
Slide 26: (Reference) Status of Each Facility: PARADISE SEGASAMMY
(Reference) Status of Each Facility: PARADISE SEGASAMMY (Unit: KRW million) ◼ Trend of Drop amounts* at PARADISE CITY *Drop amounts: Purchased amount of chips by customers at the table -26-
Slide 27: Appendix
O03 Appendix SEGASammy
Slide 28: Trend of Balance of Content Production Expenses in B/S
Trend of Balance of Content Production Expenses in B/S (Consumer area) (Unit: billion yen) *Balance of work in progress R&D expenses of titles before release + Balance of unamortized R&D expenses of released titles -28-
Slide 29: Trend of No. of Employees by Segment
Trend of No. of Employees by Segment (Unit: employees) *No. of employees are the No. of full-time employees and permanent contract employees. Excludes the No. of temporary employees. -29-
Slide 30: Resort Business (PARADISE SEGASAMMY)
Resort Business (PARADISE SEGASAMMY) (KRW Billion) 2022/3 2023/3 Full year FY2023/3 Q1 Results Q1 Q1 Results Sales 42.4 161.5 45.6 ➢ Casino visitors remained low due to travel Casino 30.2 86.6 22.7 restrictions Hotel 11.4 67.7 20.0 • Compared to FY2021/3 Q1: 31.8% Other 0.7 7.0 2.8 Cost of sales 42.
Slide 31: Concept of Investment in Growth (~FY2026/3)
Concept of Investment in Growth (～FY2026/3) Continue to consider investing in the following growth areas Strengthen development Area of ⚫ Expansion of organic development pipeline consideration ⚫ Strengthen global mobile and online games resources for investment Consumer Area Approx. 100.0 billion y
Slide 32: Shareholder Returns
Shareholder Returns (Process of Determining Return Amount and Method) FY2023/3 FY2024/3 Q1 Q2 Q3 Q4 Q1 FY2022/3 Q1 Results Q2 Results Q3 Results FY2023/3 Results Results announcement announcement announcement announcement announcement Share buybacks (if implemented) Interim dividend Year-end dividen
Slide 33: Cautionary Statement and Website Information
https://www.segasammy.co.jp/english/ Cautionary Statement for Investors and Shareholders with Respect to Nevada Gaming Statutes and Please visit below website for more information of products and services of Regulations SEGASAMMY. SEGA SAMMY HOLDINGS INC. (“the Company”) is registered with the Nevad
Sega Sammy Holdings — Q1 FY2023/3 Earnings Presentation on 6ix