Sega Sammy Holdings Inc. · TSE:6460

Sega Sammy — Q3 FY2021/3 Earnings Presentation

34 slides from Sega Sammy's earnings presentation, Feb 12, 2021

  1. Slide 1: Fiscal Year Ending March 2021 3Q Results Presentation

    Fiscal Year Ending March 2021 3Q Results Presentation February 12, 2021 [Disclaimer] Market forecasts, operating results forecast, and other information contained in these materials are based on judgements and projections of the Company’s managements from currently available information. Therefore,

  2. Slide 2: 1. Fiscal Year ending Mar 2021 3Q Results and Full Year Forecasts

    1. Fiscal Year ending Mar 2021 3Q Results and Full Year Forecasts

  3. Slide 3: Revision of operating results forecast for the full year FY2021/3

    Revision of operating results forecast for the full year FY2021/3 (JPY Billion) Revised Full Year Full Year Forecast Increase / Forecast (announced Decrease (announced on Nov 6) on Feb 12)  Full-year forecast revised upward, Sales 283.0 276.0 -7.0 driven by strong Consumer area Operating Income -1.

  4. Slide 4: Revision of operating results forecast for the full year FY2021/3

    Revision of operating results forecast for the full year FY2021/3  Consumer area in Entertainment Contents Business performed well, and cost restraint progressed in each segment.  Factors behind changes in ordinary income (Unit: billion yen) Increase Decrease Total -4-

  5. Slide 5: Strong performance in Consumer area (Full Game's sales trend)

    Strong performance in Consumer area (Full Game's sales trend) “Football Manager 2021”  Income expands continuously through repeat sales “YAKUZA : LIKE A DRAGON” (Western version) “Shin Megami Tensei Ⅲ NOCTURNE HD REMASTER” (Unit: billion yen) “Persona 4 Golden” (PC version) “Persona 5 Scramble Stri

  6. Slide 6: Strong performance in Consumer area (F2P sales trend)

    Strong performance in Consumer area (F2P sales trend)  Strong performance of new titles launched this fiscal year "Sakura Revolution" from Dec. "Re: ZERO -Starting Life in Another World- Lost in Memories" from Sep. "Project SEKAI COLORFUL STAGE feat. Hatsune Miku" from Sep. (Unit: billion yen) 15.5

  7. Slide 7: Shareholder Returns – Dividend Amount

    Shareholder Returns – Dividend Amount Dividend amount at end of FY2021/3: 20 yen  Transition of net income and dividends 20 yen 20 yen 20 yen 20 yen 20 yen 13.7 billion yen ● 10 yen 2.6 billion yen ● -3.0 billion yen ● Year- Year- Year- Interim Interim Interim end end end (plan) FY2019/3 results FY

  8. Slide 8: Progress of each measure of structural reform

    Progress of each measure of structural reform Major initiatives [Implemented in 3Q] • Transfer of the shares of company engaged in amusement facilities operation • Implementation of voluntary retirement program • Sales of investment securities (Sanrio shares, etc.) [Scheduled to be implemented in 4Q

  9. Slide 9: Organizational restructure

    Organizational restructure (1) Consolidation of administrative functions in SEGA SAMMY Group • Corporate functions and other administrative functions of Sammy Corporation and SEGA GROUP CORPORATION will be split and integrated into SEGA SAMMY HOLDINGS INC. and establish a system to drive and support

  10. Slide 10: Organizational restructure

    Organizational restructure (2) Reorganization of group companies in Entertainment Contents Business • Merge SEGA GROUP CORPORATION, an intermediate holding company, into SEGA CORPORATION, to accelerate global business development by streamlining the Group's structure and accelerating decision-making

  11. Slide 11: Impact of implementation of structural reform

    Impact of implementation of structural reform PL improvement for PL impact for the current FY the next FY Previous forecast Current forecast ・Structural reform expenses -20 billion yen -19.1 billion yen in Amusement Center (extraordinary losses) (extraordinary losses) 1.Review of Business Operations

  12. Slide 12: FY2021/3 3Q Results, Full-year Forecast Summary

    FY2021/3 3Q Results, Full-year Forecast Summary (JPY Billion) 2020/3 2021/3 Full Year Revised FY2021/3 3Q Results Full Year Through Through Through Forecast Forecast 3Q 4Q 3Q (announced on Nov 6) (announced on  Significant decline in sales and profit YoY, but Feb 12) Sales 280.8 366.5 210.1 283.0 2

  13. Slide 13: Breakdown of Income (FY2021/3 3Q results)

    Breakdown of Income (FY2021/3 3Q results) (Unit: billion yen) Non-operating income/losses and extraordinary income/losses Non-operating income 5.6 Operating Income 13.5 Gain on valuation of investment securities 4.2 Dividends income 0.3 Non-operating Income 5.6 Non-operating expenses 6.5 Non-operati

  14. Slide 14: Costs and Expenses

    Costs and Expenses (JPY Billion) 2020/3 2021/3 Revised Full Year Through Through Through Forecast Full Year Main factors for increase or decrease for 3Q and Forecast 3Q 4Q 3Q (announced (announced revised full-year forecast on Nov 6) on Feb 12) R&D Expense / Content Production Expense 56.4 76.5 43.5

  15. Slide 15: Consolidated Balance Sheet Summary

    Consolidated Balance Sheet Summary (Billion yen) 【Assets】 【Liabilities and Net Assets】 (Unit:billion yen) As of end of As of end of As of end of As of end of Account Change Account Change March 2020 Dec 2020 March 2020 Dec 2020 Cash and Deposits 159.0 151.4 -7.6 Accounts Payable 17.8 18.1 +0.3 Accou

  16. Slide 16: Liquidity of Funds

    Liquidity of Funds  Secured 336.9 billion yen as liquidity, enabling flexible response to funding demand, such as working capital for existing business and strategic investments in the future. (Unit: billion yen) Working capital of existing business: Approx. 70 billion yen -16-

  17. Slide 17: 2. Transition of results: Per segment

    2. Transition of results: Per segment

  18. Slide 18: Pachislot and Pachinko Machines Business

    Pachislot and Pachinko Machines Business (JPY Billion) 2020/3 2021/3 FY2021/3 3Q Results Revised Full Year Full Year Through 3Q Through 4Q Through 3Q Forecast (announced on Forecast  The extent of losses decreased QonQ, due to the (announced on Nov 6) Feb 12) strong sales of mainstay pachinko “P Sh

  19. Slide 19: Pachislot and Pachinko Machines Business (Sales Schedule)

    Pachislot and Pachinko Machines Business (Sales Schedule) New title Specification changed title ～FY2021/3 3Q FY2021/3 4Q～ Pachislot Kaidoumokushiroku Pachislot Hokuto No Ken Pachislot kaiji numa Shukumei Pachislot Shin Hokuto Muso Pachislot Initial D Pachislot The Seven deadly Pachislot Angel Beats!

  20. Slide 20: Reference: Pachislot and Pachinko Machines Business

    Reference: Pachislot and Pachinko Machines Business (Transition of utilization of pachinko halls, removal schedule)  Replacement accelerated from January 2021 due to the arrival of previous regulation machines’ deadline for removal. YoY comparison of average utilization rate of Removal schedule FY2

  21. Slide 21: Entertainment Contents Business

    Entertainment Contents Business FY2021/3 3Q Results (JPY Billion) 2020/3 2021/3  Significant increase in profit YoY due to Full Year Revised Full Through Through Through 3Q 4Q 3Q Forecast (announced on Year Forecast (announced on contribution of Consumer area. Nov 6) Feb 12) Sales 186.1 247.6 167.6

  22. Slide 22: Entertainment Contents Business (Per subsegment)

    Entertainment Contents Business (Per subsegment) FY2021/3 3Q Results (Full Game) Strong performance of repeat sales continued.  Consumer area (F2P) Strong performance of new titles and steady performance of existing titles.  Amusement Extent of losses decreased due to sales of regular products suc

  23. Slide 23: Consumer area (New titles of Full Game)

    Consumer area (New titles of Full Game)  Titles that supported the strong performance (New titles for 3Q) “Football Manager 2021" "YAKUZA : LIKE A DRAGON" "Shin Megami Tensei Ⅲ NOCTURNE HD REMASTER" © Sports Interactive Limited 2020. ©SEGA ©ATLUS Published by SEGA Publishing Europe Limited. (Wester

  24. Slide 24: Consumer area (Number of Full Game sales in units by IP)

    Consumer area (Number of Full Game sales in units by IP)  FY2021/3 3Q Results of Major titles IP Unit Sales Main titles (released month) “Mario & Sonic at the Olympic Games Tokyo 2020” (November 2019) Approx. “Team Sonic Racing” (May 2019) Sonic 3,700K units “Sonic Generations” (December 2011) “Son

  25. Slide 25: Consumer area (Strong F2P titles)

    Consumer area (Strong F2P titles)  Strong performance of new titles in FY2021/3 led to higher sales  Top 3 titles in sales from Oct.-Dec. 2020 (No. 1) (No. 2) (No. 3) "Re:ZERO -Starting Life in Another World- Lost in Memories" "Project SEKAI COLORFUL STAGE ©Tappei Nagatsuki,KADOKAWA/ “PHANTSAY STA

  26. Slide 26: Reference: Consumer area (Transition of Full Game sales)

    Reference: Consumer area (Transition of Full Game sales) (JPY Billion) 2020/3 2021/3 Full Year Revised Full Through Through Through Through Through Forecast Year Forecast 1Q 1Q 2Q 3Q 4Q 2Q 3Q (announced on (announced on Nov 6) Feb 12) Sales 26.7 55.8 90.2 125.5 32.4 61.4 102.4 132.5 136.0 Domestic 1

  27. Slide 27: Reference: Consumer area (Transition of Full Game sales in Units)

    Reference: Consumer area (Transition of Full Game sales in Units) 2020/3 2021/3 Full Year Revised Full Through Through Through Through Through Forecast Year Forecast 1Q 1Q 2Q 3Q 4Q 2Q 3Q (announced on (announced on Nov 6) Feb 12) Full Game: Number of Titles 9 titles 13 titles 26 titles 36 titles 4 t

  28. Slide 28: Entertainment Contents Business (Sales Schedule): Consumer

    Entertainment Contents Business (Sales Schedule) ～FY2021/3 3Q FY2021/3 4Q～ Persona 4 Golden YAKUZA : LIKE A DRAGON Persona 5 Scramble Strikers Shin Megami Tensei Ⅴ (PC version) (Western version) (Western version) * Scheduled for 2021 New titles A Total War Saga: TROY Puyo Puyo™ Tetris® 2 Full Game H

  29. Slide 29: Entertainment Contents Business (Sales Schedule): Amusement Machine Sales

    Entertainment Contents Business (Sales Schedule) ～FY2021/3 3Q FY2021/3 4Q～ <Existing titles> KanColle Arcade / StarHorse Series / Fate/Grand Order Arcade / WCCF FOOTISTA 2019 / SANGOKUSHI TAISEN Series Amusement Machine Sales maimai Series / O・N・G・E・K・I / CHUNITHM Series <Regular titles> UFO CATCHER

  30. Slide 30: Resort Business

    Resort Business FY2021/3 3Q Results 2020/3 2021/3 (JPY Billion) Full Year Revised Full  PHOENIX RESORT: Personal demand increased Through Through Through Forecast Year Forecast due to “Go To Travel Campaign”, and utilization of 3Q 4Q 3Q (announced on (announced on Nov 6) Feb 12) facilities was on a

  31. Slide 31: Resort Business (PARADISE SEGASAMMY)

    Resort Business (PARADISE SEGASAMMY) （KRW Billion） FY2020 3Q FY2021 3Q （KRW Billion） Results Results FY2021/3 3Q Results Sales 331.7 144.9 Casino 269.0 106.9  The number of facility users declined. Hotel 49.5 32.8 • Number of casino users YoY: 47.9% Other 13.1 5.1 • Streamlined the facilities opera

  32. Slide 32: Resort Business (PARADISE SEGASAMMY)

    Resort Business (PARADISE SEGASAMMY)  Transition of Drop* amounts at PARADISE SEGASAMMY (KRW Million) April 2017 Opening of Paradise City *Drop amounts: Purchased amount of chips by customers at the table *Calculation method was changed after Jan 2018 -32-

  33. Slide 33: Reference: Market and business environment for the current fiscal year

    Reference: Market and business environment for the current fiscal year 2020 2021 Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Pachislot and • Utilization has been recovering • Utilization is stable at about 70-80 percent, and the removal of previous • Halls suspended operation since r

  34. Slide 34: 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 — Q3 FY2021/3 Earnings Presentation on 6ix