Sega Sammy Holdings Inc. · TSE:6460

Sega Sammy — Q3 FY2015 Earnings Presentation

35 slides from Sega Sammy's earnings presentation, Feb 13, 2015

  1. Slide 1: FY Ending March 2015 3rd Quarter Results Presentation

    FY Ending March 2015 3rd Quarter Results Presentation February 13th, 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 current

  2. Slide 2: Contents

    Contents 【FY Ending March 2015 3rd Quarter Results / Full Year 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

  3. Slide 3: FY Ending March 2015 3rd Quarter Results / Full Year Forecasts

    FY Ending March 2015 3rd Quarter Results / Full Year Forecasts © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  4. Slide 4: Consolidated Income Statements (Summary)

    Consolidated Income Statements (Summary) (JPY Billion) FY Ended March 2014 FY Ending March 2015 Revised Full Year Revised Full Year Results Full Year Results YoY YoY Forecasts Forecasts Through 3Q Results Through 3Q Change Change (announced on Oct 31) (announced on Feb 12) Net Sales 303.9 378.0 267.

  5. Slide 5: Results Highlights

    Results Highlights Net Sales/Profits ・Year-on-year, sales and profits decreased Other ・Revised full year forecasts on February 12, 2015 ・Sales and profits decreased year-on-year as number of pachislot titles decreased Pachislot and ・Number of pachinko units sales increased year-on-year, as sales of

  6. Slide 6: Major Business Measures

    Major Business Measures (announced on November 21, 2014) ＜PARADISE CITY: Facility Overview＞ ■Construction Start on Facility name PARADISE CITY PARADISE CITY Operating company PARADISE SEGASAMMY Co.,Ltd. Facility address IBC-1 2nd Phase District, Woonseo-dong, Jung-gu, Incheon, Republic of Korea Site

  7. Slide 7: Costs and Expenses Results/Forecast

    Costs and Expenses Results/Forecast (JPY Billion) FY Ended March 2014 FY Ending March 2015 Revised Full Year Revised Full Year Results Full Year Results YoY YoY Forecasts Forecasts Through 3Q Results Through 3Q Change Change (announced on Oct 31) (announced on Feb 12) R&D Expense / Content Productio

  8. Slide 8: Consolidated Balance Sheet (Summary)

    Consolidated Balance Sheet (Summary) As of end of March As of end of March Account 2014 End of 3Q Change Account 2014 End of 3Q Change Cash and Deposits 101.2 104.6 +3.4 Accounts Payable 37.2 37.0 -0.2 Accounts Receivable 48.1 53.6 +5.5 Corporate Bond 1.7 1.6 -0.1 Securities 107.7 110.2 +2.5 Short T

  9. Slide 9: Segment Results / Forecast: Pachislot and Pachinko Machines

    Segment Results / Forecast: Pachislot and Pachinko Machines (JPY Billion) FY Ended March 2014 FY Ending March 2015 Revised Full Year Revised Full Year Results Full Year Results YoY Forecasts Forecasts YoY Through 3Q Results Through 3Q Change (announced on Oct (announced on Feb Change 31) 12) Net Sal

  10. Slide 10: Segment Results/Forecast: Pachislot

    Segment Results/Forecast: Pachislot Shipment Data: Pachislot ＊Number of titles reflects products which begin sales in the period FY Ended March 2014 FY Ending March 2015 Revised Full Revised Full Pachislot Results Full year Results Year Forecasts Year Forecasts Through 3Q Results Through 3Q (announc

  11. Slide 11: Segment Results/Forecast: Pachinko

    Segment Results/Forecast: Pachinko Shipment Data: Pachinko ＊Number of titles reflects products which begin sales in the period FY Ended March 2014 FY Ending March 2015 Pachinko Revised Full Year Revised Full Year Results Full year Results Forecasts Forecasts Through 3Q Results Through 3Q (announced

  12. Slide 12: Segment Results / Forecast: Amusement Machine Sales

    Segment Results / Forecast: Amusement Machine Sales (JPY Billion) FY Ended March 2014 FY Ending March 2015 Revised Full Year Revised Full Year Results Full Year Results YoY Forecasts Forecasts YoY Through 3Q Results Through 3Q Change (announced on (announced on Change Oct 31) Feb 12) Net Sales 28.0

  13. Slide 13: Segment Results: Amusement Machine Sales

    Segment Results: Amusement Machine Sales Major Titles (Results) Title Game Type Sales WORLD CLUB Champion Football Series Trading Card Game 2.3 billion yen StarHorse3 Series Medal Game 1.3 billion yen SENGOKU-TAISEN Trading Card Game 1.1 billion yen *Sales figures include sales of expendable such as

  14. Slide 14: Segment Results/Forecast: Amusement Center Operations

    Segment Results/Forecast: Amusement Center Operations (JPY Billion) FY Ended March 2014 FY Ending March 2015 Revised Full Year Revised Full Year Results Full Year Results YoY Forecasts Forecasts YoY Through 3Q Results Through 3Q Change (announced on Oct (announced on Feb Change 31) 12) Net Sales 32.

  15. Slide 15: Segment Results: Amusement Center Operations

    Segment Results : Amusement Center Operations Domestic Facilities Same Store Sales Comps / Domestic Facilities Number Transition © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  16. Slide 16: Segment Results: Consumer Business

    Segment Results: Consumer Business (JPY Billion) FY Ended March 2014 FY Ending March 2015 Revised Full Year Revised Full Year Results Full Year Results YoY YoY Forecasts Forecasts Through 3Q Results Through 3Q Change Change (announced on Oct 31) (announced on Feb 12) Net Sales 72.3 99.8 82.1 +14% 11

  17. Slide 17: Segment Results: Consumer Business

    Segment Results：Consumer Business *Number of titles reflects products which begin sales in the period Sales Results (Packaged Game) (Number of titles by platform is based on SKU) FY Ended March 2014 FY Ending March 2015 Results Full Year Results Revised Full Year Forecasts Revised Full Year Forecast

  18. Slide 18: Segment Results: Consumer Business - Major Titles, Packaged Games

    Segment Results : Consumer Business Major Titles (Results) / Packaged Games Sales Unit Title (Region） Platform Launch (thousand) PS3, PS4, Xbox360, Alien: Isolation (Europe, US) 1,760 October XboxOne, PC Football Manager 2015 (Europe, US) PC 640 November Sonic Boom Rise of Lyric（Japan, Europe, US） W

  19. Slide 19: Segment Results: Consumer Business - Major Titles, Digital Games

    Segment Results: Consumer Business Major Titles (Results) /Digital Games ＜ PHANTASY STAR ONLINE 2 ＞  As a first project to commemorate the 15th anniversary of PHANTASY STAR series, “PHANTASY STAR ONLINE 2－ON STAGE－”was performed on December 2014 on stage for the first time  Implemented the updatin

  20. Slide 20: Group Structure Reform Activities

    Group Structure Reform Activities © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  21. Slide 21: Group Structure Reform Activities: Major Measures

    Group Structure Reform Activities Major Measures of Group Structure Reform in the fiscal year ending March 2015 1. Established Group Structure Reform Division (on May 9, 2014) ・Chairman: Hajime Satomi, President & CEO ・Vice Chairman: Akira Sugano, CFO & Executive Vice President 2. Announcement of Gr

  22. Slide 22: Implementation of Structure Reform in SEGA CORPORATION

    Group Structure Reform Activities Implementation of Structure Reform in SEGA CORPORATION（announced on January 30, 2015） SEGA has positioned domestic and overseas Digital Games, centered around smartphone and PC online gaming, as a growth area and has determined to implement the following measures in

  23. Slide 23: Impact of structure reform on operating results

    Group Structure Reform Activities Impact of structure reform implementation on operating results  Extraordinary loss arising in the year ending March 2015: approx. 15 billion yen (full Year） ■Revised the previous forecast announced on October 31, 2014 due to posting extraordinary loss (Billion yen)

  24. Slide 24: Implementation of Group Structure Reform

    Group Structure Reform Activities Implementation of Group Structure Reform  Determine to restructure into three business groups based on the group restructuring policy (announced on October 31, 2014) Each business group will make efforts to enhance management efficiency by constructing a system to

  25. Slide 25: Group Restructuring as of April 1, 2015

    Group Structure Reform Activities Implementation of Group Structure Reform Pachislot < Main Group Companies and Business Field （on and after April 1, 2015）> Pachinko Entertainment Content SEGA SAMMY HOLDINGS Resort PSS SAMMY SHD SLC PSR SSB (Equity Method) （An acronym of Group Company） PSR：PHOENIX R

  26. Slide 26: Significance and future direction of structure reform

    Group Structure Reform Activities Significance and future direction of structure reform The purpose of this structure reform is implemented to concentrate the management resource to major business and area, right-size the business contents and volume of other business and area, improve operational e

  27. Slide 27: Appendix

    Appendix © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  28. Slide 28: 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 17,773 17,426 500.0 17,173 16,988 16,801 16,504 16,076 15,617 14,674 371.9 377.2 387.8 15,165 349.8 356.2 365.0 13,585 400.0 15,000 294.7 12,323 268.0 270.3 274.3 279.9 284

  29. Slide 29: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets Sources:Yano research Institute Ltd. Sources : White Paper on Leisure Industry, Japan Productivity Center - 28 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  30. Slide 30: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets Pachislot machines:Prototype testing results 80 100.0% 80.0% 60 56.1% 60.0% 45.6% 46.8% 50.0% 46.7% 47.5% 60.0% 40 38.7% 37.1% 37.0% 40.4% 38.3% 42.6% 41.2% 38.3% 39.3% 42.9% 40.6% 18.4% 34.8% 34.5% 31.8% 31.6% 32.1% 29.8% 30.8% 40.0% 20 6.5% 20.0% 0 0.0% 10 11

  31. Slide 31: 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

  32. Slide 32: 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 1,000 474,808 486,582 484,804 473,601 461,465 446,22

  33. Slide 33: CS Market Data

    CS Market Data Home Video Game and Online Game Markets Scale Japan's Market for Game Content with Network Connectivity (JPY billion) 836.2 862.5 800.0 735.8 600.0 528.5 393.3 713.1 745.8 400.0 606.9 318.1 385.6 193.7 233.2 224.9 118.7 200.0 5.5 29.0 89.0 92.0 85.4 51.2 19.2 5.3 2.5 1.5 82.0 92.0 92.

  34. Slide 34: Past Operating Results

    Past Operating Results From FY Ended March 2005 to FY Ending March 2015 *The data in this page can be downloaded from following URL. (http://www.segasammy.co.jp/english/ir/library/pdf/settlement/2015/e_201503_3q_transition.xls) ※The counting rules for the number of facilities have been changed from

  35. Slide 35: 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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