Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Q1 FY2022/3 Earnings Presentation
33 slides from Sega Sammy's earnings presentation, Aug 6, 2021
Slide 1: Q1 Results Presentation
Fiscal Year Ending March 2022 Q1 Results Presentation 2021/8/6 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 und
Slide 2: FY2022/3 Q1 Results / Full Year Forecast
01 FY2022/3 Q1 Results / Full Year Forecast -2-
Slide 3: Topics
Topics ➢ Steady start centered on the Entertainment Contents business Total ➢ Closely monitor the external environment, including COVID-19 and the worldwide shortage of semiconductors. Entertainment ➢ Strong overall, including the Consumer and Amusement Machine Contents Sales areas. Pachislot and Pa
Slide 4: Results Highlights
Results Highlights (Billion yen) 2021/3 2022/3 Q1 Through Q4 Q1 Full Year FY2022/3 Q1 Results Forecast Sales 48.3 277.7 59.4 312.0 Entertainment Contents 45.1 217.8 47.4 213.0 ➢ Steady start centered on the Consumer and Pachislot and Pachinko Machines 2.7 53.1 10.3 89.0 Amusement Machine Sales areas
Slide 5: Breakdown of Income (FY2022/3 Q1 Results)
Breakdown of Income (FY2022/3 Q1 Results) (Unit: billion yen) Breakdown of non-operating Operating 3.8 income/expenses and extraordinary Income income/losses Non-operating 0.7 Income Non-operating income Non-operating 1.1 Gain on investments in Expenses 0.5 partnership Ordinary 3.4 Income Non-operat
Slide 6: Costs and Expenses
Costs and Expenses ■Entertainment EntertainmentContents Contents (Billion yen) 2020/3 2021/3 2022/3 2022/3 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • R&D / content production expenses, advertising (Plan) R&D / Content production 12.8 11.9 17.6 16.3 9.2 9.8 11.8 14.7 9.9 57.9 expenses, etc. started at a
Slide 7: Costs and Expenses
Costs and Expenses ■Resort Resort (Billion yen) 2020/3 2021/3 2022/3 2022/3 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (Plan) 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 Advertising expenses 0.1 0.1 0.1 0.1 0.0 0.1 0.1 0.0 0.0 0.4 Depreciation 0.2 0.3 0.3 0.3 0.2 0.2 0.3 0.2
Slide 8: Trend of balance of content production expenses in B/S
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 -8-
Slide 9: 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, and excludes the No. of temporary employees. -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 June 2021 March 2021 June 2021 Cash and Deposits 154.9 123.2 -31.7 Accounts Payable 16.9 17.6 +0.7 Accounts Receivable 3
Slide 11: Entertainment Contents Business
02 Entertainment Contents Business -11-
Slide 12: Entertainment Contents Business
Entertainment Contents Business (Billion yen) 2021/3 2022/3 FY2022/3 Q1 Results Through Full Year Q1 Q1 Sales 45.1 Q4 217.8 47.4 Forecast 213.0 ➢ Strong performance in each business area Consumer Amusement Machine Sales 32.4 5.4 135.7 35.7 29.5 11.4 140.0 43.0 • Exceeded the expectation due to stead
Slide 13: Entertainment Contents Business (Per subsegment)
Entertainment Contents Business (Per subsegment) FY2022/3 Q1 Results (Full Game) Sold new titles centered on the remasters and the NA and EU versions. ◆ Consumer area (F2P) Launched PHANTASY STAR ONLINE 2 NEW GENESIS globally. ◆ Amusement Machine Strong sales of UFO Catcher® series, prizes, etc. Sal
Slide 14: Consumer area (Full Game's sales trend)
Consumer area (Full Game’s sales trend) (Unit: billion yen) 新作・リピートの数字の表はナシ -14-
Slide 15: Consumer area (F2P's sales trend)
Consumer area (F2P’s sales trend) "Project SEKAI COLORFUL STAGE! feat. Hatsune Miku" (Unit: billion yen) "PHANTASY STAR ONLINE 2" “PHANTASY STAR “PHANTASY STAR ONLINE 2” (From Jul. 2012) ONLINE 2 NEW GENESIS” (Global Version) "FIST OF THE NORTH STAR LEGENDS ReVIVE" [Top 3 titles in sales (Apr.-Jun.
Slide 16: PHANTASY STAR ONLINE 2 NEW GENESIS
Consumer area (Strong title) “PHANTASY STAR ONLINE 2 NEW GENESIS” Global distribution started in June and is performing strongly. ◆ Achieved cumulative sales of 100.0 billion yen. ◆ Total registered users exceeded 9 million worldwide. (Japan: 6.5 million, Overseas 2.5 million) ◆ Achieved the largest
Slide 17: Consumer Area (Major examples of new titles roll-out)
Reference: Consumer Area (Major examples of new titles roll-out) (Timing of Release) FY19/3 FY20/3 FY21/3 FY22/3 Platforms Regions Original Release Classifi- Xbox Xbox Epic Windows/ NA/ Title name Release PS4 PS5 Switch Steam Cloud Japan Asia (plan) cation One S/X Games EU date Apr. JUDGMENT (Remast
Slide 18: Pachislot and Pachinko Machines Business
03 Pachislot and Pachinko Machines Business -18-
Slide 19: Pachislot and Pachinko Machines Business
Pachislot and Pachinko Machines Business (Billion yen) 2021/3 2022/3 FY2022/3 Q1 Results Through Full Year Q1 Q1 Q4 Forecast Sales 2.7 53.1 10.3 89.0 ➢ Despite few titles, significant improvement in losses Pachislot 0.2 13.9 3.4 40.5 due to structural reforms, etc. Pachinko 0.0 28.5 4.7 42.7 Other /
Slide 20: Pachislot and Pachinko Machine Business (Progress of replacement)
Reference: Pachislot and Pachinko Machine Business (Progress of replacement to new regulation machines) Pachislot: The installation ratio of new regulation machines remain sluggish. Pachinko: Several popular titles have appeared, and replacement proceeds smoothly. Pachislot Pachinko *In-house estima
Slide 21: Resort Business
O04 Resort Business SEGASammy -21-
Slide 22: Resort Business
Resort Business FY2022/3 Q1 Results (Billion yen) 2021/3 2022/3 Q1 Through Q1 Full Year ➢ PHOENIX RESORT: Facility users decreased to Q4 Forecast 74.1% compared to FY2020/3 Q1 (318.2% compared Sales 0.4 6.3 1.5 9.5 Operating Income -1.7 -4.1 -1.1 -3.0 to FY2021/3 Q1) due to the impact of the spread
Slide 23: Submitted RFP proposal to Yokohama City (June 11, 2021)
Resort Business (IR business) Submitted RFP proposal to Yokohama City (June 11, 2021) Genting Singapore Limited, SEGA SAMMY HOLDINGS INC., SOHGO SECURITY SERVICES CO.,LTD. (ALSOK), KAJIMA Consortium CORPORATION, TAKENAKA CORPORATION and Obayashi Corporation Details of Planning, development, and oper
Slide 24: Appendix
O5 Appendix SEGASammy
Slide 25: Consumer Area (Sales trend)
Reference: Consumer Area (Sales trend) (Billion yen) 2021/3 2022/3 Through Through Through Full Year Q1 Q1 Q2 Q3 Q4 Forecast Sales 32.4 61.4 102.4 135.7 29.5 140.0 Domestic 12.4 27.9 48.7 64.6 13.0 65.0 Overseas 19.6 33.4 54.3 72.4 16.7 75.0 Overseas sales ratio 60.5% 54.4% 53.0% 53.4% 56.6% 53.6% O
Slide 26: Consumer Area (Full Game's unit sales trend)
Reference: Consumer Area (Full Game’s unit sales trend) 2021/3 2022/3 Through Through Through Full Year Q1 Q1 Q2 Q3 Q4 Forecast Full Game: Number of Titles Japan 0 title 0 title 2 titles 2 titles 0 title 5 titles Asia 1 title 1 title 4 titles 6 titles 1 title 9 titles North America / Europe 3 titles
Slide 27: Entertainment Contents Business (Sales Schedule)
Reference: Entertainment Contents Business (Sales Schedule) ～FY2022/3 Q1 In or after Q2 (plan) JUDGMENT (Remaster ver.) HUMANKIND™ Shin Megami Tensei Ⅴ Shin Megami Tensei III Nocturne HD LOST JUDGMENT Total War: WARHAMMER III New titles Remaster (Western ver.) Full game Olympic Games Tokyo 2020 - Th
Slide 28: Entertainment Contents Business (Sales Schedule)
Reference: Entertainment Contents Business (Sales Schedule) ～FY2022/3 Q1 In or after Q2 (Plan) Amusement Machine Sales <Major titles in operation> KanColle Arcade / StarHorse4 / Fate Grand Order Arcade / WCCF FOOTISTA 2021 / SANGOKUSHI TAISEN Series / maimai DX / O・N・G・E・K・I / CHUNITHM / fiz2 <Major
Slide 29: Pachislot and Pachinko Machine Business (Sales Schedule)
Reference: Pachislot and Pachinko Machine Business (Sales Schedule) New series Specification changed title ～FY2022/3 Q1 In or after Q2 (plan) Pachislot Rakuen Tsuiho Pachislot CODE GEASS -Expelled from Paradise- Pachislot Angel Beats! Pachislot GAMERA Lelouch of the Rebellion 3 Pachislot Twin Angel
Slide 30: Resort Business (PARADISE SEGASAMMY)
Reference: Resort Business (PARADISE SEGASAMMY) 2021/3 2022/3 (KRW Billion) Results Results FY2022/3 Q1 Results Q1 Through Q4 Q1 Sales 89.7 177.5 42.4 ➢ The number of casino users fell sharply to 51.5% Casino 75.8 126.8 30.2 Hotel 10.8 44.4 11.4 YoY due to the restriction of foreign visitors. Other
Slide 31: Resort Business (PARADISE SEGASAMMY)
Reference: Resort Business (PARADISE SEGASAMMY) ◼ Trend of Drop amounts* at PARADISE CITY (KRW Million) Apr. 2017 Opening of PARADISE CITY *Drop amounts: Purchased amount of chips by customers at the table *Calculation method was changed after Jan. 2018 -31-
Slide 32: Shareholder Returns
Reference: Shareholder Returns ◼ Dividend Results and Plan From FY2022/3, introduced the following return policies while being conscious of past dividend amount results, etc. • Dividend Policy: DOE (Dividend on Equity Ratio) 3% or more • Total return ratio: 50% or more • Regarding share buybacks, ma
Slide 33: https://www.segasammy.co.jp/
https://www.segasammy.co.jp/ 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 Nevada Commis
Sega Sammy Holdings — Q1 FY2022/3 Earnings Presentation on 6ix