Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Q1 FY2016 Earnings Presentation
36 slides from Sega Sammy's earnings presentation, Aug 3, 2015
Slide 1: FY Ending March 2016 1st Quarter Results Presentation
FY Ending March 2016 1st Quarter Results Presentation August 3rd, 2015 SEGA SAMMY HOLDINGS INC. [Disclaimer] The contents of this material and comments made during the questions and answers etc of this briefing session are the judgment and projections of the Company’s management based on currently a
Slide 2: Contents
Contents 【FY Ending March 2016 1st Quarter Results/ 1st Half Forecasts】 Consolidated Income Statements (Summary) 3 Results Highlights 4 Major Business Measures 5 Costs and Expenses 6 Consolidated Balance Sheet (Summary) 7 Segment Results / Forecasts Segment Results: Pachislot and Pachinko Machines 8
Slide 3: Consolidated Income Statements (Summary)
Consolidated Income Statements (Summary) New Segment （Reference）Former Segment (JPY Billion) FY Ended March 2015 FY Ending March 2016 (JPY Billion) FY Ended March 2015 Results Results Full Year Results YoY Forecasts YoY Full Year YoY Results Results Full Year Through 1Q Through 2Q Results Through 1Q
Slide 4: Results Highlights
Results Highlights ・Sales decreased year-on-year and recorded operating loss as Net Sales/Profits there weren’t any new pachislot titles released in the Other Pachislot and Pachinko Machines Business etc. ・Sales decreased year-on-year and loss was recorded due to lack of new pachislot titles release
Slide 5: Major Business Measures
Major Business Measures (announced on June 9, 2015） ＜SEGA SAMMY HOLDINGS INC. Fourth Unsecured Straight Bond ■Issuance of Straight (with inter-bond pari passu clause)＞ Corporate Bonds Total value of 10 billion yen bond Interest rate 0.567% per annum Term and redemption 5 years method Maturity date J
Slide 6: Costs and Expenses Results
Costs and Expenses Results (JPY Billion) FY Ended March 2015 FY Ending March 2016 Results Results Full Year Results YoY Forecasts YoY Full Year YoY Through 1Q Through 2Q Results Through 1Q Change Through 2Q Change Forecasts Change R&D Expense / Content Production Expense 12.4 28.4 67.6 12.8 +3% 30.0
Slide 7: Consolidated Balance Sheet (Summary)
Consolidated Balance Sheet (Summary) (JPY billion) 【 Assets 】 【 Liabilities and Net Assets 】 As of end of As of end of As of end of As of end of Account March 2015 June 2015 Change Account March 2015 June 2015 Change Cash and Deposits 102.2 88.8 -13.4 Accounts Payable 26.9 19.3 -7.6 Accounts Receiva
Slide 8: Results: Pachislot and Pachinko Machines
Segment Results: Pachislot and Pachinko Machines (JPY Billion) FY Ended March 2015 FY Ending March 2016 Results Results Full Year Results YoY Forecasts YoY Full Year YoY Through 1Q Through 2Q Results Through 1Q Change Through 2Q Change Forecasts Change Sales 47.2 61.1 152.1 7.6 -84% 94.5 +55% 167.0
Slide 9: Results: Pachislot
Segment Results: Pachislot Delivery Data: Pachislot FY Ended March 2015 FY Ending March 2016 Pachislot Results Results Full Year Results Forecasts Full Year Through 1Q Through 2Q Results Through 1Q Through 2Q Forecasts 2 titles 2 titles 3 titles - 3 titles 7 titles 81,165 units 83,516 units 155,695
Slide 10: Results: Pachinko
Segment Results: Pachinko Delivery Data: Pachinko FY Ended March 2015 FY Ending March 2016 Pachinko Results Results Full Year Results Forecasts Full Year Through 1Q Through 2Q Results Through 1Q Through 2Q Forecasts 3 titles 3 titles 5 titles 1 title 3 titles 5 titles 39,718 units 62,893 units 206,7
Slide 11: Results: Entertainment Contents Business
Segment Results: Entertainment Contents Business (JPY Billion) FY Ended March 2015 FY Ending March 2016 Results Results Full Year Results YoY Forecasts YoY Full Year YoY Through 1Q Through 2Q Results Through 1Q Change Through 2Q Change Forecasts Change Sales 39.9 90.3 199.6 41.8 +5% 98.5 +9% 235.0 +
Slide 12: Results: Entertainment Contents Business Summary
Segment Results: Entertainment Contents Business Summary of Results Through 1Q 1st Half Forecasts ・Because of increase from Amusement machine sales area and ・While sales are expected to increase year-on-year due to growth in the digital Overall Amusement Center operations area remained stable, year-
Slide 13: Major Index / Digital Games
Segment Results: Entertainment Contents Business ■ Major Index / Digital Games (Digital Overall) FY Ended FY Ending March 2015 March 2016 1Q Results 2Q Results 3Q Results 4Q Results 1Q Results Average MAU（ Thousands, 3 months average） *1 6,690 5,750 5,510 5,430 5,490 Domestic ARPMAU (JPY) *2 1,225 1
Slide 14: Major Index / Digital Games (Digital Overall)
Segment Results: Entertainment Contents Business ■Major Index / Digital Games (Digital Overall) ■Balance of title portfolio improved as share of top 3 titles’ sales declined due to the release of mainstay titles such as “Hortensia SAGA” and “MONSTER GEAR” in 1Q. ■As a result of strategic injection o
Slide 15: Noah Pass: Major Index
Segment Results: Entertainment Contents Business ■Major Index / Digital Games (Digital Overall) ■MAU grew again due to release of new titles. ■ Total number of Noah Pass users surpassed 100 million (up 94% year-on-year) ■ Work to gain profits with an advertisement profit business model going forward
Slide 16: Delivery Data / Plan: Packaged Games
Segment Results: Entertainment Contents Business Delivery Data / Plan: Packaged Games *Number of titles reflects products which begin sales in the period FY Ended March 2015 FY Ending March 2016 Breakdown by Region Results Results Full Year Results Forecasts Full Year Through 1Q Through 2Q Results T
Slide 17: Results: Resort Business
Segment Results: Resort Business (JPY Billion) FY Ended March 2015 FY Ending March 2016 Results Results Full Year Results YoY Forecasts YoY Full Year YoY Through 1Q Through 2Q Results Through 1Q Change Through 2Q Change Forecasts Change Sales 2.8 6.6 14.9 3.4 +21% 7.0 +6% 18.0 +21% Operating Income
Slide 18: Results: Resort Business (Domestic)
Segment Results: Resort Business (Domestic) 1st Quarter 2nd Quarter and after ■Held events such as “Organic Night Market” ■ To offer a role-playing style adventure attraction “HELLO ■1st stage opening of Sheraton Grande Ocean Resort KITTY BLACK WONDER,” “Illumination Pool,” etc. after renovation of
Slide 19: Construction progress of PARADISE CITY
Segment Results: Resort Business ■ Construction progress of PARADISE CITY, South Korea’s first full-fledged integrated resort ＜Image after completion ＜Construction progress (as of June 30, 2015)＞ ＜Image of location＞ (scheduled to open in the first half of 2017)＞ Incheon International Airport Current
Slide 20: Appendix
Appendix © SEGA SAMMY HOLDINGS INC. All Rights Reserved.
Slide 21: 1. Supplementary Information on the Market
1. Supplementary Information on the Market © SEGA SAMMY HOLDINGS INC. All Rights Reserved.
Slide 22: Pachinko and Pachislot Machine Markets
Pachinko and Pachislot Machine Markets Number of pachinko hall and number of machines installed per hall (halls) (units) 20,000 17,426 500.0 17,173 16,988 16,801 16,504 393.5 16,076 15,617 371.9 377.2 387.8 15,165 14,674 356.2 365.0 13,585 400.0 15,000 294.7 304.3 12,937 270.3 274.3 279.9 284.9 12,1
Slide 23: Pachinko and Pachislot Machine Markets
Pachinko and Pachislot Machine Markets Sources:Yano research Institute Ltd. Sources : White Paper on Leisure Industry 2014, Japan Productivity Center - 23 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved.
Slide 24: Pachinko and Pachislot Machine Markets
Pachinko and Pachislot Machine Markets Sources:Security Communications Association - 24 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved.
Slide 25: Pachislot / Pachinko Sales Share
Pachislot / Pachinko Sales Share Share of Annual Pachislot Machine Sales 2009 2010 2011 2012 2013 Rank Manufacturer Units sold Share Manufacturer Units sold Share Manufacturer Units sold Share Manufacturer Units sold Share Manufacturer Units sold Share 1 Sammy 162,932 21.3% Sammy 302,270 30.9% Sammy
Slide 26: Packaged and Digital Game Market Data
Packaged and Digital Game Market Data Home Video Game and Online Game Markets Scale Japan's Market for Game Content with Network Connectivity (JPY billion) 1,000.0 866.3 886.3 823.9 800.0 735.8 600.0 528.5 393.3 715.4 755.8 779.4 400.0 606.9 318.1 233.2 385.6 118.7 224.9 200.0 29.0 92.0 85.4 51.2 19
Slide 27: Amusement Market Data
Amusement Market Data Amusement Machine and Amusement Center Operations Markets Scale Number of Amusement Facilities (Facilities) Amusement Machine / Facilities sales (JPY billion） Number of Amusement Machine units installed (Units) 600,000 10,000 486,582 484,804 473,601 1,000 461,465 446,225 432,35
Slide 28: 2. Supplementary Information on the Business
2. Supplementary Information on the Business © SEGA SAMMY HOLDINGS INC. All Rights Reserved.
Slide 29: Changes to Business Segment and Accounting Policy
Changes to Business Segment and Accounting Policy (1) Change to Business segment FY ended March 2015 FY FYending March 2016 ending March 2016 Pachislot and Pachinko Machines Pachislot Pachislotand and Pachinko Machines Pachinko Machines Entertainment EntertainmentContents Business Contents Business
Slide 30: Pachislot and Pachinko Prototype Testing and Installment Deadlines
Supplement (Deadline for pachislot and pachinko machines’ prototype testing application/deadline for installment of new machines) ■Pachislot September 15, End of End of November 2014 2015 July 2016 Old-format machines Prototype testing Installment of new (before the change of application deadline ma
Slide 31: Overview of Specifications of Pachislot/Pachinko Machines
Supplement (Overview of specifications of pachislot/pachinko machines) ■Pachinko Max Middle Light-middle Light/Easy-to-win, etc. Sales: Approx. 48.5% Sales: Approx. 12.8% Sales: Approx. 19.5% Sales: Approx. 19.2% Market Share Installment: Approx. 30.3% Installment: Approx. 16.2% Installment: Approx.
Slide 32: Business Composition of the Entertainment Contents Business
Business Composition of the Entertainment Contents Business Amusement Amusement Center Digital Games Packaged Games Animation / Toy Machine Sales Operations • Planning / development / • Planning / development / • Development / • Planning / development / • Production / sales / operation of PC online
Slide 33: Major Initiatives in the Resort Business
Segment Forecasts: Resort Business Major initiatives taken in the Resort Business Facility name: Phoenix Seagaia Resort Location: Miyazaki prefecture (Miyazaki City) Operating company: PHOENIX RESORT CO.,LTD. Overview: Resort facility which holds accommodation facilities such as “Sheraton Gr
Slide 34: Past Operating Results (Former Segment basis)
Past Operating Results (Former Segment basis) *The data in this page can be downloaded from following URL. From FY Ended March 2005 to FY Ended March 2015 (http://www.segasammy.co.jp/english/ir/library/pdf/settlement/2015/e_201503_4q_transition.xls) ※The counting rules for the number of facilities h
Slide 35: Past Operating Results (New Segment basis)
Past Operating Results（New Segment basis） *The data in this page can be downloaded from following URL. From FY Ended March 2015～ (http://www.segasammy.co.jp/english/ir/library/pdf/settlement/2016/e_201603_1q_transition.xls) (JPY billion) FY Ended FY Ending March 2015 March 2016 Results Results Full
Slide 36: Disclaimer
http://www.segasammy.com/ ［Disclaimer］ The contents in this material and comments made during the questions and answers etc. of this briefing session are the judgment and forecasts of the Company’s management based on the currently available information. These contents involve risk and uncertainty,
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