Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Q3 FY2022/3 Earnings Presentation
34 slides from Sega Sammy's earnings presentation, Feb 10, 2022
Slide 1: Fiscal Year Ending March 2022 Q3 Results Presentation
Fiscal Year Ending March 2022 Q3 Results Presentation 2022/2/10 Market forecasts, operating results forecast, and other information contained in this material are based on judgements and projections of the Company‘s managements Disclaimer based on currently available information. Therefore, please u
Slide 2: FY2022/3 Q3 Results / Full Year Forecast
01 FY2022/3 Q3 Results / Full Year Forecast -2-
Slide 3: Topics
Topics FY2022/3 Q3 Results Forecast ➢ Significant increases YoY in sales and ➢ Revised full-year operating results profits. forecast upward. Consolidated ➢ Recorded gain on sales of noncurrent ➢ Record gain on sales of investment assets as extraordinary income. securities as extraordinary income. ➢
Slide 4: Results Highlights
Results Highlights (Billion yen) 2021/3 2022/3 Revised Full Year Through Through Through Forecast Full Year Forecast FY2022/3 Q3 Results Q3 Q4 Q3 (announced (announced on Nov 8) on Feb 10) ➢ Significant increases YoY in sales and Sales 210.1 277.7 236.7 305.0 315.0 Entertainment Contents 167.6 217.8
Slide 5: Revision of Operating Results Forecast
Revision of Operating Results Forecast (Unit: billion yen) [Difference in operating income by segment from previous forecast] +6.0 -0.7 -0.3 +3.0 -5-
Slide 6: Breakdown of Income (FY2022/3 Q3 results)
Breakdown of Income (FY2022/3 Q3 results) (Unit: billion yen) Operating income 32.6 Breakdown of non-operating income/expenses and extraordinary income/losses Non-operating income 3.6 Non-operating income 3.6 Non-operating 2.9 expenses Gain on investments in partnership 2.3 Ordinary income 33.3 Non-
Slide 7: Costs and Expenses
Costs and Expenses ■Entertainment Contents (Billion yen) 2020/3 2021/3 2022/3 2022/3 Revised Full Year Full Year Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (announced Forecast (announced on Nov 8) on Feb 10) R&D / Content production expenses 12.8 11.9 17.6 16.3 9.2 9.8 11.8 14.7 9.9 13.5 12.7 55.8 54
Slide 8: Costs and Expenses
Costs and Expenses ■Resort (Billion yen) 2020/3 2021/3 2022/3 2022/3 Revised Full Year Full Year Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (announced Forecast (announced on Nov 8) on Feb 10) R&D / Content production expenses 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.1 0.1 Advertising expenses 0.
Slide 9: Quarterly Trends (By segment)
Reference: Quarterly Trends (By segment) (Unit: billion yen) ◼ Sales ◼ Operating income -9-
Slide 10: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Billion yen) 【Assets】 【Liabilities and Net Assets】 As of end of As of end of As of end of As of end of Account Change Account Change March 2021 Dec 2021 March 2021 Dec 2021 Cash and Deposits 154.9 110.2 -44.7 Accounts Payable 16.9 24.9 +8.0 Accounts Receivable 38.
Slide 11: Trend of Balance of Content Production Expenses in B/S (Consumer area)
Reference: 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 -11-
Slide 12: Shareholder Returns
Shareholder Returns Status of Acquisition of Treasury Stocks (cumulative total up to the end of January 2022) ✓ Total No. of shares acquired 6,272,500 shares (Progress 26.1%) ✓ Total cost of acquisition 11,799,771,500 yen (Progress 39.3%) [Reference] Details of Board of Directors resolution about ac
Slide 13: Trend of No. of Employees by Segment
Reference: 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. -13-
Slide 14: Entertainment Contents Business
02 Entertainment Contents Business -14-
Slide 15: Entertainment Contents Business
Entertainment Contents Business (Billion yen) 2021/3 2022/3 FY2022/3 Q3 Results Revised Full Year Through Through Through Forecast Full Year Forecast ➢ Strong performance in each business area Q3 Q4 Q3 (announced (announced on Nov 8) on Feb 10) • Strong performance of new titles, steady Sales 167.6
Slide 16: Entertainment Contents Business (Per subsegment)
Entertainment Contents Business (Per subsegment) FY2022/3 Q3 Results Future outlook (plan) • Strong sales of new titles, such as "Shin Megami • Release new titles such as Full Tensei V”. "Total War: WARHAMMER III“. Game • Sales of repeat titles remained steady. • Record royalty income • Recorded roy
Slide 17: Consumer Area (Full Game's sales trend)
Consumer Area (Full Game’s sales trend) (Unit: billion yen) -17-
Slide 18: Consumer Area (F2P's sales trend)
Consumer Area (F2P’s sales trend) "HATSUNE MIKU: COLORFUL STAGE!" (Unit: billion yen) "PHANTASY STAR ONLINE 2" "PHANTASY STAR ONLINE 2 (2012/7～) NEW GENESIS" "Fist of the North Star LEGENDS ReVIVE" [Top 3 titles in sales (October to December 2021)] (No. 1) (No. 2) (No. 3) “PHANTASY STAR ONLINE 2 “HA
Slide 19: Consumer Area (Major examples of new titles roll-out)
Reference: Consumer Area (Major examples of new titles roll-out) (Timing of Release) Platforms Region FY19/3 FY20/3 FY21/3 FY22/3 Original Epic Xbox Release Classifi- Nintendo Xbox Xbox Windows/ NA Title name Release PS4 PS5 Steam Games cloud Game Stadia Japan Asia (plan) cation Switch One X/S Store
Slide 20: Entertainment Contents Business (Sales Schedule)
Reference: Entertainment Contents Business (Sales Schedule) ～2022/3 Q3 In or after Q4 (plan) HUMANKIND™ Super Monkey Ball Banana Mania Total War: WARHAMMER III New titles Lost Judgment Shin Megami Tensei V Persona 4 Arena Ultimax Full Game Sonic Colors: Ultimate Football Manager 2022 Repeat Consumer
Slide 21: Entertainment Contents Business (Sales Schedule)
Reference: Entertainment Contents Business (Sales Schedule) ～2022/3 Q3 In or after Q4 (plan) KanColle Arcade / StarHorse4 / Fate Grand Order Arcade / SANGOKUSHI TAISEN Series <Major titles in operation> / maimai DX / O.N.G.E.K.I. / CHUNITHM / fiz2 Amusement Machine Sales <Major regular sales titles>
Slide 22: Pachislot and Pachinko Machines Business
03 Pachislot and Pachinko Machines Business -22-
Slide 23: Pachislot and Pachinko Machines Business
Pachislot and Pachinko Machines Business (Billion yen) 2021/3 2022/3 FY2022/3 Q3 Results Revised Full Year Through Through Through Forecast Full Year Forecast ➢ Recorded profit due to significant improvement Q3 Q4 Q3 (announced on Nov 8) (announced in income on Feb 10) Sales 37.3 53.1 51.8 65.0 73.5
Slide 24: Revision of Operating Results Forecast
Revision of Operating Results Forecast ◼ FY2022/3 Full-year forecast of unit sales (units) Pachislot Pachinko Unit sales increased compared to the previous full-year forecast ➢ Improvement in the component procurement status ➢ Increase in the number of titles to be sold Pachislot: Increase in the ne
Slide 25: Pachislot and Pachinko Machines Business (Sales Schedule)
Reference: Pachislot and Pachinko Machines Business (Sales Schedule) New series Specification changed title ～2022/3 Q3 In or after Q4 (plan) Pachislot Twin Angel PARTY Pachislot DRIFTERS -Battle in a Pachislot Pachislot GAMERA Pachislot Aladdin A Classic Brand-new World War- Pachislot ANEMONE Pachis
Slide 26: Resort Business
O04 Resort Business SEGASammy -26-
Slide 27: Resort Business
Resort Business (Billion yen) 2021/3 2022/3 Revised FY2022/3 Q3 Results Full Year Full Year Through Through Through Forecast Q3 Q4 Q3 (announced Forecast ➢ PHOENIX RESORT: Recovered centered on (announced on Nov 8) on Feb 10) individual customers Sales 4.8 6.3 6.6 9.5 8.5 • Facility users increased
Slide 28: Appendix
Appendix SEGASammy -28-
Slide 29: Consumer Area (Sales trend)
Reference: Consumer Area (Sales trend) (Billion yen) 2021/3 2022/3 Revised Full Year Full Year Through Through Through Through Through Forecast Q1 Q1 Forecast Q2 Q3 Q4 Q2 Q3 (announced (announced on Nov 8) on Feb 10) Sales 32.4 61.4 102.4 135.7 29.5 71.2 119.6 152.5 156.0 Domestic 12.4 27.9 48.7 64.
Slide 30: Consumer Area (Full Game's unit sales trend)
Reference: Consumer Area (Full Game's unit sales trend) 2021/3 2022/3 Revised Full Year Full Year Through Through Through Through Through Forecast Q1 Q1 Forecast Q2 Q3 Q4 Q2 Q3 (announced (announced on Nov 8) on Feb 10) Full Game: Number of Titles Japan 0 title 0 title 2 titles 2 titles 0 title 3 ti
Slide 31: Resort Business (PARADISE SEGASAMMY)
Reference: Resort Business (PARADISE SEGASAMMY) (KRW Billion) 2021/3 2022/3 FY2022/3 Q3 Results Through Q3 Through Q4 Through Q3 Sales 144.9 177.5 126.2 ➢ The number of casino users fell sharply due to the Casino 106.9 126.8 75.2 restriction of foreign visitors Hotel 32.8 44.4 46.7 YoY comparison: 5
Slide 32: Resort Business (PARADISE SEGASAMMY)
Reference: Resort Business (PARADISE SEGASAMMY) ◼ Trend of Drop amounts* at PARADISE CITY (KRW Million) 2017/4 Opening of PARADISE CITY *Drop amounts: Purchased amount of chips by customers at the table *Calculation method was changed after Jan. 2018 -32-
Slide 33: Basic Policy of Shareholder Returns
Reference: Basic Policy of Shareholder Returns ◼ Dividend Results and Plan From FY2022/3, introduced the following return policies while being conscious of past dividend amount results • Dividend Policy: DOE (Dividend on Equity Ratio) 3% or more • Total return ratio: 50% or more • Regarding share bu
Slide 34: https://www.segasammy.co.jp/english/
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 — Q3 FY2022/3 Earnings Presentation on 6ix