Sega Sammy Holdings Inc. · TSE:6460

Sega Sammy — Q1 FY2015 Earnings Presentation

27 slides from Sega Sammy's earnings presentation, Aug 4, 2014

  1. Slide 1: FY Ending March 2015 1st Quarter Results Presentation

    FY Ending March 2015 1st Quarter Results Presentation August 4th, 2014 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 currently a

  2. Slide 2: Contents

    Contents 【FY Ending March 2015 1st Quarter Results/ 1st Half Forecasts】 Consolidated Income Statements (Summary) 2 Results Highlights 3 Major Business Measures 4 Costs and Expenses 5 Consolidated Balance Sheet (Summary) 6 Segment Results / Forecasts Segment Results: Pachislot and Pachinko Machines 7

  3. Slide 3: Consolidated Income Statements (Summary)

    Consolidated Income Statements (Summary) (JPY Billion) FY Ended March 2014 FY Ending March 2015 Results Results Full Year Results YoY Forecasts Full year Through 1Q Through 2Q Results Through 1Q Change Through 2Q Forecasts Net Sales 90.7 162.2 378.0 88.3 -3% 160.0 450.0 Pachislot and Pachinko Machin

  4. Slide 4: Results Highlights

    Results Highlights Net Sales/Profits ・Year-on-year, sales and profits decreased Other ⇒ Performed well against forecasts through 2Q, announced on May 9 ・Pachislot unit sales decreased year-on-year although mainstay title “Pachislot SOUTEN-NO-KEN 2” Pachislot and was released and generally performed

  5. Slide 5: Major Business Measures

    Major Business Measures (announced on June 11, 2014) ■Issuance of Straight <SEGA SAMMY HOLDINGS INC. Third Unsecured Straight Bond Corporate Bonds (with inter-bond pari passu clause)> ・Total value of bond:10 billion yen ・Interest rate:0.519% ・Term: 5 years ・Maturity date: June 17, 2019 Implement sel

  6. Slide 6: Costs and Expenses Results/Forecast

    Costs and Expenses Results/Forecast (JPY Billion) FY Ended March 2014 FY Ending March 2015 Results Results Full Year Results YoY Forecasts Full year Through 1Q Through 2Q Results Through 1Q Change Through 2Q Forecasts R&D Expense / Content Production Expense*1 10.7 25.1 59.2 12.4 +16% 31.5 69.6 Pach

  7. Slide 7: Consolidated Balance Sheet (Summary)

    Consolidated Balance Sheet (Summary) (JPY billion) 【 Assets 】 【 Liabilities and Net Assets 】 As of end of March As of end of March Account 2014 End of 1Q Change Account 2014 End of 1Q Change Cash and Deposits 101.2 125.7 +24.5 Accounts Payable 37.2 32.8 -4.4 Accounts Receivable 48.1 58.8 +10.7 Corpo

  8. Slide 8: Results/Forecast: Pachislot and Pachinko Machines

    Segment Results/Forecast: Pachislot and Pachinko Machines (JPY Billion) FY Ended March 2014 FY Ending March 2015 Results Results Full Year Results YoY Forecasts Full year Through 1Q Through 2Q Results Through 1Q Change Through 2Q Forecasts Net Sales 51.8 71.2 181.8 47.4 -8% 60.0 217.5 Pachislot 41.9

  9. Slide 9: 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 Pachislot Results Results Full Year Results Forecasts Full year Through 1Q Through 2Q Results Through 1Q Through 2Q Forecasts 1 ti

  10. Slide 10: 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 Results Results Full Year Results Forecasts Full year Through 1Q Through 2Q Results Through 1Q Through 2Q Forecasts 1 title

  11. Slide 11: Results/Forecast: Amusement Machine Sales

    Segment Results/Forecast: Amusement Machine Sales (JPY Billion) FY Ended March 2014 FY Ending March 2015 Results Results Full Year Results YoY Forecasts Full year Through 1Q Through 2Q Results Through 1Q Change Through 2Q Forecasts Net Sales 6.8 18.0 38.6 7.2 +6% 20.0 46.0 Domestic 5.5 15.5 32.6 5.5

  12. Slide 12: Results: Amusement Machine Sales

    Segment Results: Amusement Machine Sales Major Titles (Results) Title Game Type Sales WORLD CLUB Champion Football Series Trading Card Game 0.4 billion yen BORDER BREAK Series Video Game 0.3 billion yen SEGA NETWORK MAHJONG MJ5 Evolution Video Game 0.2 billion yen *Sales figures include sales of exp

  13. Slide 13: Results/Forecast: Amusement Center Operations

    Segment Results/Forecast: Amusement Center Operations (JPY Billion) FY Ended March 2014 FY Ending March 2015 Results Results Full Year Results YoY Forecasts Full year Through 1Q Through 2Q Results Through 1Q Change Through 2Q Forecasts Net Sales 10.0 21.9 43.2 9.6 -4% 21.5 42.0 Operating Income -0.0

  14. Slide 14: Results: Amusement Center Operations

    Segment Results : Amusement Center Operations Domestic Facilities Same Store Sales Comps / Domestic Facilities Number Transition 120 300 （％） （store ） Number of Domestic Facilities (right) Domestic same store comparisons (left) 110 103.3 102.1 101.6 101.7 250 99.4 100.7 98.8 100 95.7 94.9 94.0 94.0 9

  15. Slide 15: Results/Forecast: Consumer Business

    Segment Results/Forecast: Consumer Business (JPY Billion) FY Ended March 2014 FY Ending March 2015 Results Results Full Year Results YoY Forecasts Full year Through 1Q Through 2Q Results Through 1Q Change Through 2Q Forecasts Net Sales 18.8 43.8 99.8 21.1 +12% 51.0 128.5 Packaged Games 7.6 16.2 38.9

  16. Slide 16: 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 Breakdown Results Results Full Year Results Forecasts Full Year by Region Throug

  17. Slide 17: Results: Consumer Business - Packaged Games Major Titles

    Segment Results : Consumer Business Major Titles (Results) / Packaged Games Sales Unit Title (Region） Platform Launch (thousand) PERSONA Q SHADOW OF THE LABYRINTH (Japan) 3DS 250 June “PERSONA Q SHADOW OF THE LABRINTH” ⒸATLUS ⒸSEGA All rights reserved. - 16 - © SEGA SAMMY HOLDINGS INC. All Rights Re

  18. Slide 18: Results: Consumer Business - Digital Games

    Segment Results: Consumer Business Major Titles (Results) /Digital Games ＜PHANTASY STAR ONLINE 2＞  Surpassed 3.5 million registered IDs as of July 20, 2014  Started distribution in Taiwan, Hong Kong, Macau and six South East Asian countries  Implemented the updating event of “PHANTASY STAR THANKS

  19. Slide 19: Appendix

    Appendix © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  20. Slide 20: 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

  21. Slide 21: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets (thousand) Pachinko and Pachislot machines-Unit Sales and Market Size (billions of yen) 8,000 1200.0 985.2 7,000 921.3 869.9 898.6 868.6 886.9 1000.0 6,000 825.7 786.5 772.9 672.0 800.0 5,000 599.8 568.3 569.1 561.5 526.3 536.5 4,000 518.4 522.5 490.9 502.5 600

  22. Slide 22: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets Pachislot machines:Prototype testing results 80 100.0% 80.0% 60 56.1% 46.8% 50.0% 46.7% 47.5% 60.0% 45.6% 40 39.6% 35.7% 37.2% 38.7% 37.1% 37.0% 40.4% 38.3% 42.6% 41.2% 38.3% 34.8% 34.5% 31.8% 31.6% 32.1% 29.9% 29.8% 30.8% 40.0% 26.7% 23.2% 20 20.0% 0 0.0% 4 5

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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.

  26. Slide 26: Past Operating Results

    Past Operating Results *The data in this page can be downloaded from following URL. From FY Ended March 2005 to FY Ended March 2014 (http://www.segasammy.co.jp/english/ir/library/pdf/settlement/2015/e_201503_1q_transition.xls) ※The counting rules for the number of facilities have been changed from f

  27. Slide 27: 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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