Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Q1 FY2024/3 Earnings Presentation
36 slides from Sega Sammy's earnings presentation, Aug 1, 2023
Slide 1: Q1 for the Fiscal Year Ending March 31, 2024 Results Presentation
Q1 for the Fiscal Year Ending March 31, 2024 Results Presentation 2023/8/1 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 u
Slide 2: FY2024/3 Q1 Results / Forecast
01 FY2024/3 Q1 Results / Forecast -2-
Slide 3: Results Highlights
Results Highlights (Billion yen) FY2023/3 FY2024/3 Full Year Full Year FY2024/3 Q1 Results Q1 Q1 Results Forecast Sales 66.1 389.6 108.0 433.0 ➢ Strong start driven by Pachislot and Pachinko Entertainment Contents 52.7 282.8 53.8 305.0 Pachislot and Pachinko Machines 10.5 94.2 50.9 115.0 Machines Bu
Slide 4: Q1 Topics
Q1 Topics ➢ Status of TOB for the acquisition of Rovio Entertainment Oyj • Extended the tender offer period to August 7, 2023 (announced on July 3, 2023) *As some procedures for obtaining regulatory approval required for the completion of the Tender Offer took some time. All of these are now obtaine
Slide 5: Breakdown of Income (FY2024/3 Q1 Results)
Breakdown of Income (FY2024/3 Q1 Results) (Unit: billion yen) Breakdown of non-operating income/losses and Operating income 22.5 extraordinary income/losses Non-operating income 1.4 Non-operating income 1.4 Gain on investments in partnership 0.5 Interest income 0.3 Non-operating expenses 0.8 Equity
Slide 6: Impact of Exchange Rate Fluctuations
Impact of Exchange Rate Fluctuations [Impact of foreign exchange on Q1 results] ➢ Positive impact of approx. 1.4 billion yen for sales and approx. 0.4 billion yen for operating income in Entertainment Contents business (Billion yen) Q1 Sales +1.4 CS Operating Income +0.6 Sales - AM Operating Income
Slide 7: Costs and Expenses, etc. Entertainment Contents / Pachislot & Pachinko
Costs and Expenses, etc. ■Entertainment Contents (Billion yen) FY2022/3 FY2023/3 FY2024/3 FY2024/3 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Forecast R&D / Content production expenses 9.9 13.5 12.7 18.3 11.9 14.8 16.4 22.9 12.5 68.9 Advertising expenses 2.2 3.9 3.7 4.4 2.7 5.0 6.3 6.7 3.1 23.6 Depreciati
Slide 8: Costs and Expenses, etc. Resort / Other / Elimination
Costs and Expenses, etc. ■Resort (Billion yen) FY2022/3 FY2023/3 FY2024/3 FY2024/3 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Forecast R&D / Content production expenses 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 Advertising expenses 0.0 0.2 0.1 0.0 0.0 0.1 0.1 0.1 0.0 0.5 Depreciation 0.1 0.2 0.2 0.1 0.1 0.2
Slide 9: 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 2023 June 2023 /Decrease March 2023 June 2023 /Decrease Cash and Deposits 179.5 171.6 -7.9 Accounts Payable 30.5 29.5 -1.
Slide 10: Per segments Results / Forecast
02 Per segments Results / Forecast -10-
Slide 11: Entertainment Contents Business
Entertainment Contents Business (Billion yen) FY2023/3 FY2024/3 FY2024/3 Q1 Results Full Year Full Year Q1 Q1 Results Forecast ➢ Performed generally in line with expectations Sales 52.7 282.8 53.8 305.0 Consumer 34.7 187.9 33.7 205.0 • Although both new titles and repeat sales went below Amusement M
Slide 12: Entertainment Contents Business: Per Subsegments
Entertainment Contents Business: Per Subsegments FY2024/3 Q1 Results Forecast • Both new titles and repeat sales went below • Start full-scale sales of mainstay new titles from 2nd half of Full Game expectations the fiscal year • Launched three new titles "Sonic Superstars", Like a Dragon and Person
Slide 13: Consumer Area / Full Game: Sales Trend
Consumer Area / Full Game: Sales Trend (Unit: billion yen) -13-
Slide 14: Consumer Area / F2P: Sales Trend
Consumer Area / F2P: Sales Trend "Project SEKAI COLORFUL STAGE feat. Hatsune Miku" (Unit: billion yen) "PHANTASY STAR ONLINE 2" (2012/7～) "PHANTASY STAR ONLINE 2 NEW GENESIS" "SEGA NET MAHJONG MJ" (2013/7～) [Top 3 titles in sales from April to June 2023] (No. 1) (No. 2) (No. 3) "Project SEKAI COLORF
Slide 15: (Reference) Consumer Area: Sales Trend
(Reference) Consumer Area: Sales Trend (Billion yen) FY2023/3 FY2024/3 Through Through Through Full Year Q1 Q1 Q2 Q3 Q4 Forecast Sales 34.7 75.0 142.5 187.9 33.7 205.0 Domestic 15.7 33.8 52.4 71.4 14.5 71.6 Overseas 19.2 41.1 89.8 116.7 19.3 135.4 Overseas sales ratio 55.3% 54.8% 63.0% 62.1% 57.3% 6
Slide 16: (Reference) Consumer Area / Full Game: Unit Sales Trend
(Reference) Consumer Area / Full Game: Unit Sales Trend FY2023/3 FY2024/3 Through Through Through Full Year Q1 Q1 Q2 Q3 Q4 Forecast Full Game: Number of Titles Japan 3 titles 7 titles 11 titles 15 titles 2 titles 12 titles Asia 3 titles 7 titles 11 titles 15 titles 2 titles 13 titles North America /
Slide 17: (Reference) Consumer Area / Full Game: Major New Titles
(Reference) Consumer Area / Full Game: Major New Titles [Titles released in Q1, FY2024/3] *Figures in () to the right of the titles are actual release dates “Etrian Odyssey Origins Collection” (Jun. 1) “Sonic Origins Plus” (Jun. 23) ©ATLUS. ©SEGA. All rights reserved. ©SEGA -17-
Slide 18: (Reference) Consumer Area / Full Game: Major New Titles
(Reference) Consumer Area / Full Game: Major New Titles [Titles to be released in or after Q2, FY2024/3] *Only announced titles are listed. Figures in () to the right of the title are the planned release dates “Samba de Amigo: Party Central” (Aug. 30) “ENDLESS™ Dungeon” (Oct. 19) ©SEGA ©Amplitude St
Slide 19: (Reference) Consumer Area / Full Game: Major New Titles
(Reference) Consumer Area / Full Game: Major New Titles [Titles to be released in or after Q2, FY2024/3] *Only announced titles are listed. Figures in () to the right of the title are the planned release dates “Like a Dragon: Infinite ∞ Wealth” “Persona 5 Tactica” (Nov. 17) “Sonic Superstars” (Fall
Slide 20: (Reference) Entertainment Contents Business: Sales Schedule (Consumer)
(Reference) Entertainment Contents Business: Sales Schedule ～FY2024/3 Q1 In or after FY2024/3 Q2 (Plan) Company of Heroes 3 HUMANKIND™（for Console） Persona 5 Tactica – Console Edition Etrian Odyssey Origins Collection Samba de Amigo: Party Central Sonic Superstars New titles Sonic Origins Plus ENDLE
Slide 21: (Reference) Entertainment Contents Business: Sales Schedule (Amusement Machine)
(Reference) Entertainment Contents Business: Sales Schedule ～FY2024/3 Q1 In or after FY2024/3 Q2 (Plan) StarHorse4 / EIKETSU TAISEN / maimai DX / CHUNITHM / O.N.G.E.K.I. / MJ ARCADE <Major titles in operation> INITIAL D THE ARCADE / KanColle Arcade / Fate Grand Order Arcade / HORI A TALE / romakyun
Slide 22: Pachislot and Pachinko Machines Business
Pachislot and Pachinko Machines Business (Billion yen) FY2023/3 FY2024/3 FY2024/3 Q1 Results Full Year Full Year Q1 Q1 Results Forecast Sales 10.5 94.2 50.9 115.0 ➢ Strong start Pachislot 3.3 41.0 31.5 66.6 • Especially pachislot machines (No. 6.5 models and smart Pachinko 5.1 44.2 16.4 37.7 Other /
Slide 23: Major Titles Released in Q1
Major Titles Released in Q1 ➢ Cumulative unit installed: Approx. 60,000 units (as of the end of July 2023) *Of the above, Approx. 5,000 units were delivered in advance during FY2023/3 • Maintain industry-leading utilization • Announced additional sales (Scheduled for install in August 2023) "Smart P
Slide 24: Major Titles to be Released in or after Q2
Major Titles to be Released in or after Q2 ➢ "Smart Pachislot BIOHAZARD: VENDETTA" (installed in July 2023) • The 2nd smart pachislot for the Group • Strong sales ➢ Plan to launch other mainstay titles • "P Black Lagoon4" (installed in July 2023) • "Pachislot Kizumonogatari -Hajimari No Toki-” (sche
Slide 25: (Reference) Pachislot and Pachinko Machines Business: Sales Schedule
New series (Reference) Pachislot and Pachinko Machines Business: Titles which installation started from previous FY / Sales Schedule Specification changed title ～FY2024/3 Q1 In or after FY2024/3 Q2 (Plan) Pachislot Kabaneri of the Iron Fortress Smart Pachislot Pachislot Kizumonogatari Pachislot (Add
Slide 26: Resort Business
Resort Business (Billion yen) FY2023/3 FY2024/3 FY2024/3 Q1 Results Full Year Full Year Q1 Q1 Results Forecast ➢ Performed steadily Sales 2.6 11.5 2.9 12.0 • PHOENIX RESORT: In addition to the steady performance of Operating Income -0.3 -1.1 -0.3 -1.0 individual customers, the number of group custom
Slide 27: (Reference) Resort Business / PARADISE SEGASAMMY
(Reference) Resort Business / PARADISE SEGASAMMY (KRW Billion) FY2023/3 FY2024/3 Full year FY2024/3 Q1 Results Q1 Q1 Results ➢ Recovered centered on Japanese VIP customers Sales 45.6 270.5 91.2 Casino 22.7 157.5 63.3 • Casino sales recovered centered on Japanese VIP customers Hotel 20.0 95.9 23.2 •
Slide 28: Appendix
O03 Appendix SEGASammny
Slide 29: Trend of Balance of Content Production Expenses in B/S (Consumer area)
Trend of Balance of Content Production Expenses in B/S (Consumer area) (Unit: billion yen) Q1 • Balance has increased compared to the end of the same quarter in previous fiscal year due to fewer launch of new titles FY2024/3 Forecast • Balance is expected to rise towards the 2nd half of the fiscal y
Slide 30: Content Production Expenses: Revision of Amortization Rule
Content Production Expenses: Revision of Amortization Rule （Consumer area – Full Game) (Unit: billion yen) ＜Increase / decrease of R&D and content production expenses＞ • Revised the amortization rule of content production expenses due to lengthening of product lifecycles • Content development amorti
Slide 31: 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 -31-
Slide 32: Status of each facility: PHOENIX RESORT
Status of each facility: PHOENIX RESORT ◼ PHOENIX RESORT: Sales by type of facility users FY2024/3 Q1 Results • The number of group customers recovered following the holding of large-scale MICE such as international conferences and corporate events Forecast • In addition to capturing steady individu
Slide 33: Status of each facility: PARADISE SEGASAMMY
Status of each facility: PARADISE SEGASAMMY (Unit: KRW million) ◼ Trend of Drop amounts* at PARADISE CITY *Drop amounts = Purchased amount of chips -33-
Slide 34: Repost: Concept of Investment in Growth (~FY2026/3)
Repost: Concept of Investment in Growth (～FY2026/3) *announced on April 28, 2023 ◼ Implemented investment in the following growth area Area of consideration Progress for investment ⚫ Expansion of organic development Strengthen pipeline development resources ⚫ Strengthen global mobile and online ⚫ Es
Slide 35: Repost: Shareholder Returns
Repost: Shareholder Returns (Process of Determining the Amount of Return and Methods) *announced on April 28, 2023 FY2024/3 FY2025/3 Q1 Q2 Q3 Q4 Q1 FY2023/3 Q1 Q2 Q3 FY2024/3 Results Results Results Results Results Announcement Announcement Announcement Announcement Announcement Share buybacks (if i
Slide 36: https://www.segasammy.co.jp/ja/ir/
https://www.segasammy.co.jp/ja/ir/ Cautionary Statement for Investors and Shareholders with Respect to Gaming Statutes and Regulations Please visit below website for more information of products and services of SEGASAMMY. SEGA SAMMY HOLDINGS INC. ("the Company") is registered with the Nevada Commiss
Sega Sammy Holdings — Q1 FY2024/3 Earnings Presentation on 6ix