Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Q2 FY2025/3 Earnings Presentation
49 slides from Sega Sammy's earnings presentation, Nov 8, 2024
Slide 1: Q2 FY Ending March 2025 Financial Results Presentation
Q2 for the Fiscal Year Ending March 2025 Financial Results Presentation Nov. 8, 2024 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
Slide 2: FY2025/3 Q2 Results / Forecast
01 FY2025/3 Q2 Results / Forecast -2-
Slide 3: Result Highlights (Consolidated)
Result Highlights (Consolidated) FY2025/3 Q2 Results (Billion yen) FY2024/3* FY2025/3 Thru Full Year Thru Full Year Exceeded initial expectations overall Q2 Results Q2 Forecast • Performed strong centered on CS*1 and Animation Sales 221.6 468.9 211.6 445.0 (Entertainment*2 ) Operating Income 40.0
Slide 4: (Reference) Per Segments Results
(Reference) Per Segments Results (Billion yen) FY2024/3 FY2025/3 Thru Full Year Thru Full Year Q2 Results Q2 Forecast Sales 221.6 468.9 211.6 445.0 Entertainment Contents 121.7 319.8 141.7 335.0 Pachislot and Pachinko Machines 92.5 133.2 64.7 105.0 Gaming 0.6 1.9 1.8 3.0 Other / Elimination 6.8 14.0
Slide 5: Breakdown of Income Statement (FY2025/3 Q2 Results)
Breakdown of Income Statement (FY2025/3 Q2 Results) (Unit: Billion yen) Breakdown of non-operating income/expenses and Operating income 32.8 extraordinary income/losses Non-operating income 4.4 Non-operating income 4.4 Interest income 1.6 Equity in earnings of affiliates 1.2 Non-operating expenses 4
Slide 6: Topics in Q2
Topics in Q2 Transfer Amplitude Studios through MBO • Background of transfer: Implemented as part of structural reforms for European business in Consumer area • Impact on business performance: Recorded 5.9 billion yen of loss on business restructuring as extraordinary losses (FY2025/3 Q2) Comple
Slide 7: (Reference) EBITDA Adjustment Items (FY2025/3 Q2 Results)
(Reference) EBITDA Adjustment Items (FY2025/3 Q2 Results) (Unit: Billion yen) Adjustment Items +0.5 Extraordinary +4.2 income of -6.8 +0.8 business ＋2.8 Interest expenses Depreciation and -0.0 Extraordinary amortization Profit attributable Goodwill, losses of to non-controlling trademark right busin
Slide 8: Impact of Exchange Rate Fluctuations
Impact of Exchange Rate Fluctuations [Impact of foreign exchange in Q2 Results] Positive impact of 3.8 billion yen for sales and 0.6 billion yen for operating income in Entertainment Contents business (Billion yen) Q1 Q2 Thru Q2 *1 Net Sales +2.7 +0.9 +3.6 CS Operating Income +1.7 -0.3 +1.4 Net Sa
Slide 9: Various Expenses, etc.
Various Expenses, etc. (Billion yen) FY2024/3 FY2025/3 Thru Full Year Thru Full Year Q2 Results Q2 Forecast FY2025/3 Q2 Results R&D / Content production 30.0 83.1 30.7 68.1 R&D / content production expenses: Entertainment Advertising 9.1 31.6 11.6 30.8 Contents Depreciation 2.0 4.4 2.2 4.4 • Despi
Slide 10: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Billion yen) 【Assets】 【Liabilities and Net Assets】 As of the end As of the end Increase As of the end As of the end Increase Account Account of Mar. 2024 of Sep. 2024 /Decrease of Mar. 2024 of Sep. 2024 /Decrease Cash and Deposits 211.7 175.5 -36.2 Accounts Payabl
Slide 11: Per Segments Results / Forecast
02 Per Segments Results / Forecast -11-
Slide 12: Entertainment Contents Business
Entertainment Contents Business (Billion yen) FY2024/3 FY2025/3 FY2025/3 Q2 Results Thru Full Year Thru Full Year Q2 Results Q2 Forecast Strong performance as a whole Sales 121.7 319.8 141.7 335.0 • Exceeded expectations due to strong DLC*1 sales etc. and Consumer 78.4 224.0 95.6 235.0 positive im
Slide 13: (Reference) Entertainment Content Business Sub-segment
(Reference) Entertainment Content Business Sub-segment FY2025/3 Q2 Results Forecast • Sales of new titles released in Q1 went sluggish • Full-scale sales of mainstay new titles • Repeat sales including Unicorn Overlord went strong Full game • Cost improvement mainly in Europe exceeded -Metaphor: ReF
Slide 14: (Reference) Consumer Area / Full Game: Sales Trend
(Reference) Consumer Area / Full Game: Sales Trend (Unit: Billion yen) -14-
Slide 15: (Reference) Entertainment Contents Business Roll-out Schedule
(Reference) Entertainment Contents Business Roll-out Schedule (CS/Animation area) Area Title Launch Region Platform CS*1 Full Game Shin Megami Tensei Ⅴ Vengeance Jun. 14, 2024 Global Multi-platform Super Monkey Ball Banana Rumble Jun. 25, 2024 Global Nintendo Switch™ Metaphor: ReFantazio Oct. 11, 20
Slide 16: (Reference) Entertainment Contents Business Roll-out Schedule
(Reference) Entertainment Contents Business Roll-out Schedule (Animation/AM & TOY area) Area Title Launch Region Platform Animation License-out/ Sonic the Hedgehog 3 Dec. 20, 2024 Global - Date in "Launch" is the scheduled release date in North America Investment Project The Angry Birds Movie 3 TBD
Slide 17: Pachislot & Pachinko Machines Business
Pachislot & Pachinko Machines Business (Billion yen) FY2024/3 FY2025/3 FY2025/3 Q2 Results Thru Full Year Thru Full Year Q2 Results Q2 Forecast Exceeded expectations Sales 92.5 133.2 64.7 105.0 • Sales of e Hokuto No Ken 10, the Group’s first smart pachinko Pachislot 64.6 88.7 28.2 49.6 and other
Slide 18: (Reference) Pachislot & Pachinko Machines Business Sales Schedule
(Reference) Pachislot & Pachinko Machines Business Sales Schedule [Main titles sold up to Q2 and titles planned to be sold in or after Q3] Title Installation Unit Sales Specification Range*1 Type Pachislot In or Smart Pachislot Golden Kamuy Apr. 2024 12,865 units Medium New Series before Smart Pachi
Slide 19: Gaming Business
Gaming Business (Billion yen) FY2024/3 FY2025/3 FY2025/3 Q2 Results Thru Full Year Thru Full Year Q2 Results Q2 Forecast Strong sales of casino machines Sales 0.6 1.9 1.8 3.0 Operating Income -0.9 -1.7 -1.0 -2.0 Gaming machine sales: Non-operating income 1.0 1.4 1.1 1.0 • Sales of Railroad Riche
Slide 20: (Reference) Gaming Business
(Reference) Gaming Business Strong utilization of Railroad Riches continues and contributes to strengthening the relationship with casino operators Sales trend of gaming machines (North Performance trend of Railroad Riches *1 America and Asia) (Units) *1 ”Top Indexing Games-Core (Low Denom, Vi
Slide 21: (Reference) Gaming Business
(Reference) Gaming Business Performance trend of Railroad Riches and Genesis Atmos® (cabinet) *1 *1 From ”Top Indexing NEW Games-Core, Video Ranking”, ”Top Indexing Games-Core (Low Denom, Video Reel) Ranking”, “Top Indexing Games-Core, Parent Theme Ranking”, “Top Indexing Cabinet-Portrait Slant Ra
Slide 22: (Reference) PARADISE SEGASAMMY
(Reference) PARADISE SEGASAMMY (KRW Billion) FY2024/3 FY2025/3 FY2025/3 Q2 Results Thru Full year Thru Q2 Results Q2 Sales 200.6 448.7 263.7 Casino sales continued to be strong Casino 145.5 327.9 205.0 • Casino sales remained strong, centered on Japanese VIP Hotel 46.5 100.3 48.4 customers Other 8
Slide 23: Future Initiatives
03 05 Future Initiatives -23-
Slide 24: Future Outlook
Future Outlook Overall The first half results exceeded expectations Need to closely monitor the trends in each business in the second half Entertainment Launch of mainstay new titles x Promotion of Transmedia strategy Contents Service launch of Sonic Rumble, the first title in cooperation wi
Slide 25: Consumer Area, Entertainment Contents Business
Consumer Area, Entertainment Contents Business Entertainment Contents Business -25-
Slide 26: Major IP Roll-out Plan_Sonic
Major IP Roll-out Plan_Sonic Promote Transmedia development towards new movie and games to be released at the of end the year under the theme of "Fearless: Year of Shadow" Fostering a sense of unity Strategic interaction of each initiative in community under to create a strong tailwind toward the en
Slide 27: Major IP Roll-out Plan_Sonic
Major IP Roll-out Plan_Sonic Strategically promote the Transmedia roll-out of Sonic IP Apr. 2024 Oct. 2024 Dec. 2024 This Winter ⒸSEGA ⒸSEGA SONIC X SHADOW GENERATIONS Sonic Rumble （Release: Oct. 25, 2024) (Service launch: this winter (Plan)) ©2024 PARAMOUNT PICTURES AND SEGA ©2024 PARAMOUNT PICTURE
Slide 28: Major IP Roll-out Plan_Sonic
Major IP Roll-out Plan_Sonic SONIC x SHADOW GENERATIONS (Full Game) (Release: Oct. 25, 2024) • Worldwide sales surpassed 1 million units in its release date • Gained high marks on review sites, etc. Scores at Metacritic METASCORE: 80 points User Score: 9.0 Customer review at Steam: Overwhelmingl
Slide 29: Major IP Roll-out Plan_Like a Dragon
Major IP Roll-out Plan_Like a Dragon Implement measures to strengthen sales in line with the drama series Release new title at the beginning of the coming year Oct. 2024 Feb. 2025 ⒸSEGA ©2024 Amazon Content Services Like a Dragon: Pirate Yakuza in Hawaii LLC or its Affiliates （Release: Feb. 21, 2025
Slide 30: Major IP Roll-out Plan_ATLUS
Major IP Roll-out Plan_ATLUS Metaphor: ReFantazio (Release: Oct. 11, 2024) • Worldwide sales surpassed 1 million units in its release date • Gained high marks on review sites, etc. Scores at Metacritic METASCORE: 94 points / Earned “Must-Play” User Score: 9.0 Customer review at Steam: Overwhelmi
Slide 31: Major IP Roll-out Plan_Football Manager 25
Major IP Roll-out Plan_Football Manager 25 Football Manager 25 （Release: Mar. 2025 (Plan)) • Postponed release date from November to March to ensure game quality • Changed the development engine to Unity Renewal of the UI* Enhancement of graphics • Addition of new elements Acquired full licens
Slide 32: Progress toward the Re-growth of European Business
Progress toward the Re-growth of European Business Transfer of Amplitude Studios through an MBO • Realized a business structure that focuses on strengths through selection and concentration • Recorded 5.9 billion yen of loss on business restructuring as extraordinary losses (FY2025/3 Q2) • Structu
Slide 33: (Reference) Progress toward the Re-growth of European Business
(Reference) Progress toward the Re-growth of European Business Recovery of Total War Total War: WARHAMMER III The ratio of “positive” out of all Steam reviews Steamの全レビューのうち「好評」の比率 92% Strengthen the communication with user community Reviewed the content and Apr. 2024 Customer review has pricing
Slide 34: Pachislot & Pachinko Machines Business
Pachislot & Pachinko Machines Business Pachislot & Pachinko Machines Business -34-
Slide 35: Market Trends: Utilization Trend
Market Trends: Utilization Trend Pachislot & Pachinko Utilization Trend Pachislot Pachinko Beginning of Out*1 installation of Out*1 Pachislot Smart Pachislot Hokuto No Ken • Steady utilization centered on smart pachislot Beginning of installation of Beginning of machines Pachinko installation of equ
Slide 36: Market Trends: Unit Sales Trend
Market Trends: Unit Sales Trend Pachislot & Pachinko Unit Sales Trend （Thousand Units） Pachislot • Unit sales are on an increasing trend over the medium to long term • Sales has progressed centered on 800 800 smart pachislot in the first half Pachinko • Unit sales are on a decreasing trend Apr.- Sep
Slide 37: Market Trends: Penetration of Smart Machines
Market Trends: Penetration of Smart Machines Unit sales & installation ratio of smart pachislot/pachinko （Units） （Installation Ratio） Smart Pachislot • Topical machines are appearing constantly • Installation ratio has exceeded 40% Smart Pachinko • Pace of penetration after introduction has been slo
Slide 38: e Hokuto No Ken 10
Smart Pachinko Title Our first smart pachinko title has been strong in both sales and utilization e Hokuto No Ken 10 • Unit Sales：Over 35 thousand units • Utilization level：Trending over market average Accounts for about 5% of utilization share within the 4 yen pachinko market*1 【Reference】Top ranki
Slide 39: Total Utilization Share
Total Utilization Share Trend of total utilization share of our Group & competitors Our total utilization share growth has stalled Share expansion through Smart Pachislot Hokuto No Ken and e Hokuto No Ken 10 remained temporary Continuous creation of hit Company A (No. 1) titles is the challenge
Slide 40: Lineup in and after Q3
Lineup in and after Q3 Continue to launch new titles while reviewing the lineup （FY2025/3） Aim to expand share by releasing sequels of hit titles and titles utilizing popular IP, etc.（FY2026/3~） New titles in and after Q3 of this FY (example) New titles from next FY onwards (example) Smart Pachislot
Slide 41: Gaming Business
Gaming Business Gaming Business -41-
Slide 42: Gaming Business
Gaming Business New titles following Railroad Riches installed in the U.S. • RAISE 'EM UP HOUSE OF THE DEAD SCARLET DAWN (Installation: Jun. 2024) • RAISE 'EM UP LEPRECHAUN (Installation: Jul. 2024) • SUPER BURST CARTIN‘ GOLD (Installation: Jun. 2024) ©SEGA Existing titles also continue to enjoy
Slide 43: Gaming Business: Steadily advance M&A procedure
Gaming Business Steadily advance M&A procedure Completion of Acquisition (Schedule) Impact on Financial Results • Impact on FY2025/3 financial results is immaterial FY2025/3 Q4 (expenses related to acquisition will be incurred) • Scheduled to be consolidated from FY2026/3 Q1 • Impact on FY2025/3 f
Slide 44: Investment in Growth
Investment in Growth Investment Strategy -44-
Slide 45: Re: To Maximize the Corporate Value: New Medium-term Plan
Re: To Maximize the Corporate Value: New Medium-term Plan Management focusing on capital efficiency Focused investment in Consumer area Stable growth in Pachislot & Pachinko Growth of profit business Expansion of Establishment of Gaming business equity spread Adjusted EBITDA over 230.0 billi
Slide 46: Concept of Investment in Growth and Shareholder Return
Concept of Investment in Growth and Shareholder Return: New Medium-term Plan 【Capital allocation policy】 <Allocation image <Source of cash> over the next 3 years> Generation of Enhance development investment to accelerate IP growth Development • Enhancement of major IPs in Japan studios: 90.0+ bil
Slide 47: To Maximize Corporate Value (Promotion of Value Sharing with Shareholders)
To Maximize Corporate Value (Promotion of Value Sharing with Shareholders) ■Enhance the measures toward the stock price improvement which involving employees • Continuous delivery of financial results and stock price information, etc. via CEO video Increase awareness of messages • Conduct a group-wi
Slide 48: Review of Stock-based Compensation Systems for Directors and Employees
Review of Stock-based Compensation Systems for Directors and Employees Background and aims of the review of the stock-based compensation system • To promote value sharing among shareholders, directors, and employees • To be aware of the stock price as an indicator and aiming to improve corporate val
Slide 49: https://www.segasammy.co.jp/en/ir/
https://www.segasammy.co.jp/en/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
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