Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Investor Presentation (December 2015)
29 slides from Sega Sammy's investor presentation, Dec 18, 2015
Slide 1: Meeting Material
Meeting Material December 18, 2015
Slide 2: Forecast of this fiscal year
Forecast of this fiscal year
Slide 3: Overall Results/Forecasts: Q-Q Gross Sales (SGN Gross Sales)
Overall Results/Forecasts: Q-Q Gross Sales (SGN Gross Sales) In the fiscal year ending March 2016, gross sales are expected to realize 34% growth compared to the previous fiscal year although they are 27% below the initial forecast FY2016 （JPY billion） YoY Change ＋34％ Compared to Forecast △27％ 139 9
Slide 4: Overall Results/Forecasts: Comparison with the Previous Fiscal Year/Initial Forecast
Overall Results/Forecasts: Comparison with the Previous Fiscal Year/Initial Forecast ・Overseas and new titles except existing titles struggled ・Although sales grew, was unable to reach the forecast Sales (JPY billion) Domestic 52.5 Overseas ・Gradual decrease of existing titles was 12.0 mostly as exp
Slide 5: Overall Results/Forecasts: Outlook for 4Q Performance
Overall Results/Forecasts: Outlook for 4Q Performance Realize sales growth in 4Q through the following measures Sales Major initiatives (JPY billion) 13.9 (Asia) ・Release of major IP titles Asia ・Release of several localized titles 1.8 ・Growth of Hortensia SAGA Europe and U.S. (Europe and the U.S.)
Slide 6: Domestic Market
Domestic Market
Slide 7: Domestic Market Environment (1) Number of Downloads
Domestic Market Environment (1) Number of Downloads ・The number of downloads continues to be on a slight downward trend ・Market-share competition has started as the domestic market matured Units： Million of Downloads 97 90 81 83 82 84 79 80 78 73 72 74 71 Oct,2014 Oct,2015 Source data：GameStyle Lab
Slide 8: Domestic Market Environment (2) Sales by Ranking
Domestic Market Environment (2) Sales by Ranking ・The sales level of top ranked titles continues to rise ・If we cannot constantly release titles that can make top 50, risk of being eliminated from the market becomes higher 2012 2013 2014 2015 Sales Ranking 50 million ～ 200 million ～ 1 billion yen ～
Slide 9: Domestic Market Environment (3) Changes in Domestic Initial Investment
Domestic Market Environment (3) Changes in Domestic Initial Investment ・Over 1.5 billion yen initial investment solely in Japan when initial fiscal year’s operation and marketing costs are added → Increasing risks for aiming for permanent investment recovery only in Japan (Units :JPY billion) 1.70 マ
Slide 10: Presence of SEGA Networks (1) Top Sales Titles: October 2015
Presence of SEGA Networks (1) (TOP 50 sales titles: October 2015) Have been able to release hit titles continuously in the market with intensifying competition Google play App store A 12 A 15 B 8 B 10 C 7 SEGA 9 SEGA 5 C 7 D 5 D 5 E 4 E 4 F 3 F 3 G 2 G 3 H 2 H 2 I 2 I 2 Source: App Annie Copyright©
Slide 11: Presence of SEGA Networks (2) Portfolio Composition
Presence of SEGA Networks (2) Portfolio Composition New releases of more hit titles. Maintained solidified portfolio and laid groundwork Existing Titles New Titles Big hits (Over 500 million yen/month) Success Hits (Over 100 million yen/month) Likely to be hits (Over 50 million yen/month) Failure St
Slide 12: Major Initiatives for the 2nd Half of Fiscal Year (1) Existing Titles
Major Initiatives for the 2nd Half of Fiscal Year (1) Existing Titles Implement a number of large-scale updates for mainstay titles in November onward Improved sales of existing titles in addition to contribution from sales of new titles are forecast in 4Q CHAIN CHRONICLE – Kizuna no Shintairiku - E
Slide 13: Major Initiatives for the 2nd Half of Fiscal Year (2) New Titles
Major Initiatives for the 2nd Half of Fiscal Year (2) New Titles From next fiscal year onwards, further solidify titles with IP and collaborative titles while aiming for super hits in the higher rank “With Sanrio” project title ・Take advantage of Sanrio characters which are powerful IP ・Although g
Slide 14: Overseas Market
Overseas Market
Slide 15: Highlights and Road Map for Next Fiscal Year: Asian Market
Highlights and Road Map for Next Fiscal Year: Asian Market Although the forecast was not reached due to delays in releasing of titles, the released titles showed assuring results Accelerate towards the next fiscal year Unit: million yen ・Status of Release of Titles Initial Results Forecast (outlook)
Slide 16: Highlights and Road Map for Next Fiscal Year: European and U.S. Markets
Highlights and Road Map for Next Fiscal Year: European and U.S. Markets ・Although 4 new titles were released, half of them were a big failure ・Start restructuring the system for next fiscal year as localization has also been delayed Unit: million yen ・Status of Release of Titles Initial Results Fore
Slide 17: Major Titles for the 2nd Half of Fiscal Year
Major Titles for the 2nd Half of Fiscal Year Sonic Dash 2: Sonic Boom ・Released in October ・Surpassing 6 million downloads, expected to grow further from 4Q onward ・TV broadcasting of the animation has already started centering on the U.S. Puzzle & Glory ・New title from Demiurge Studios ・Release
Slide 18: Summary of Game Business
Summary of Game Business
Slide 19: Comparison with Forecast: Gap Analysis
Comparison with Forecast: Gap Analysis ・Failure of several major titles -Major failure at the launch Failed titles -Decline of quality due to the increase of production lines Failure in managing outsourcing companies Cause of failure was the intensifying -6.7 billion yen competitive environment ・Del
Slide 20: Summary of Road Map for Next Fiscal Year
Summary of Road Map for Next Fiscal Year Shift to management focusing on the following, in order to aim for further growth by adapting to environmental changes such as the intensification of competitive environment (maturing of the domestic market/acceleration of growth in the overseas market) and s
Slide 21: Development of New Market/Promotion of Non-Game Business
Development of New Market/Promotion of Non-Game Business
Slide 22: Non-Game Business (Noah Pass/goPlay)
Non-Game Business (Noah Pass/goPlay) ・Advertising business -As preparation for expansion completed, will start earnings contribution from 4Q -More releases of new products and monetization of data solution business will become concrete from next fiscal year ・PF business for overseas -Acquisition of
Slide 23: Case of Advertising Business: O2O Ad Service
Case of Advertising Business: O2O Ad Service O2O centering on smartphones (1) Know about (2) Shop visit (3) Purchase Noah Pass Visit-based Purchase-based (Game) reward type O2O reward type O2O ad ad Copyright© SEGA Games SEGA Networks Company All Rights Reserved. 23
Slide 24: O2O Ad (1) Visit-Based Reward Type O2O Ad
O2O Ad (1) Visit-Based Reward Type O2O Ad Ad Advertising revenue cost ゲーム ゲーム タイトル タイトル 10,000 shops 1 million in the first users inゲーム the ゲーム year first year タイトル タイトル Shop Sending visit users ゲーム ゲーム タイトル タイトル Building of reward type O2O service in the first fiscal year Copyright© SEGA Games SEGA
Slide 25: O2O Ad (2) Purchase-Based Reward Type O2O Service
O2O Ad (2) Purchase-Based Reward Type O2O Service Purchase-based reward type Shops Advertiser O2O service Around 45,000 nationwide ・Sending users ・Operation of services ・Ad posting page ・Settlement ・Distribution of earnings to game companies Copyright© SEGA Games SEGA Networks Company All Rights Res
Slide 26: Development of New Market: Southeast Asian Market (Go Game)
Development of New Market: Southeast Asian Market (Go Game) SDK allowing easy implementation of various functions ・GoPay ・NoahPass ・Customer support ・SNS, community, Wiki ・Analysis etc. Preventing loss of sales opportunities ・Corresponding to settlement methods of tens of companies Cross promotion a
Slide 27: Development of New Market (Credit Card Use Rate and Users Charged in Southeast Asia)
Development of New Market (Credit Card Use Rate and Users Charged in Southeast Asia) The rate of credit card use is low particularly in Southeast Asia for a size of users charged, and other methods of settlement are dominant (Unit) 1 million users Monetization of these users will Users charged in ga
Slide 28: Development of New Market: Southeast Asian Market (Go Game)
Development of New Market: Southeast Asian Market (Go Game) Recruitment of local managers David Ng founded Go Game Pte. Ltd. in 2015 after serving as Senior Director of Asia Online section of Electronics Arts, CEO of Gumi Pte. Ltd., etc. He is the founder and the CEO. Profile Careerofsummary David N
Slide 29: <Reference> goPlay Service Plans
<Reference> goPlay Service Plans Silver Gold Platinum 50 Platinum + Free Net 70% *Up to accumulated total of Sales/costs fifty-fifty model (Net Net20% (GoGame bears localization, $100,000 50%) *2 operation and marketing costs) *2 *Net 10% for over $100,000 Publishing Contents analysis Simplified in-
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