Sega Sammy Holdings Inc. · TSE:6460

Sega Sammy — Investor Presentation (February 2015)

40 slides from Sega Sammy's investor presentation, Feb 20, 2015

  1. Slide 1: Meeting Material

    Meeting Material February 20, 2015

  2. Slide 2: Group Structure Reform (1)

    Group Structure Reform (1) SEGA SAMMY HOLDINGS INC. Pachislot and pachinko Entertainment contents Resort business machines business business Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 1

  3. Slide 3: Group Structure Reform (2)

    Group Structure Reform (2) SEGA Holdings Co., Ltd. SEGA Games Co., Ltd. Company System Consumer Online Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Business Company SEGA Networks Company Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 2

  4. Slide 4: Q-Q Gross Sales

    Ｑ-ＱGross Sales The performance of this fiscal year is in line with the initial plan supported by strong performance of existing titles despite the decrease in the number of new titles due to strategic （billions of yen） delay in the release of new titles in current fiscal year. 10 FY2015 8.6 8.0 8 Y-

  5. Slide 5: Further Acceleration of Growth in FY2016

    Further Acceleration of Growth in FY2016 （billion of yen） 10 Domestic 8.6 8.0 Market 8 7.8 7.7 7.1 6.7 6 Overseas Market 4.3 4 2.1 2 1.5 1.6 1.3 Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Noah Pass 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2013 FY2014 FY2015 Forecast Copyright(c) SEGA Ne

  6. Slide 6: Domestic Market

    Domestic Market

  7. Slide 7: Hit Rate (1) Number of Top Sales Titles

    Hit Rate (1) (Number of TOP 50 sales titles : Jan 2015) Multiple titles continue to be ranked in top 50 Google play （# of titles） App store （#of titles） 0 2 4 6 8 10 12 0 2 4 6 8 10 12 A 11 A 11 B 6 SEGA 8 C 6 B 6 D 5 C 6 SEGA 5 D 5 E 4 E 4 F 3 F 3 G 3 Copyright(c) SEGA NETWORKS Corporation All Righ

  8. Slide 8: Hit Rate (2) Number of Hit Titles

    Hit Rate (2) Number of Hit Titles ・Many existing hit titles are on a growing trend in this fiscal year ・Release of many new titles in first half of next fiscal year is expected to further solidify hit titles Big hits （Over 500 million yen /month） Hits Success （Over 100 million yen /month） Likely to

  9. Slide 9: Key Title (CHAIN CHRONICLE)

    Key Title（CHAIN CHRONICLE） • Re-accelerated due to major update in 2Q • Anticipated to remain as one of the major key titles next fiscal year onward Gross Sales Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Apr May Jun Jul Aug Sep Oct Nov Dec CY2014 Copyright(c) SEGA Networks Co.,Ltd.

  10. Slide 10: Key Title (Puyopuyo!! Quest)

    Key Title（Puyopuyo!! Quest） ・Showing stable growth since release with further acceleration anticipated next fiscal year ・Monthly sales have grown and stabilized at over 500 million yen. （Reached record high sales in Dec 2014. ） ・Achieved 11 million DL Gross Sales Copyright(c) SEGA NETWORKS Corporati

  11. Slide 11: Ange Vierge / SAKATSUKU Shoot!

    Ange Vierge / SAKATSUKU Shoot！ ・Ange Vierge Gross Sales • Continued growth and had record high sales in December 2014 • Monthly sales remained stable at 100 to 200 million yen level • TV animation version to be created and further growth also anticipated as IP Apr May Jun Jul Aug Sep Oct Nov Dec CY2

  12. Slide 12: Well-Developed Pipeline with New Titles

    Well-Developed Pipeline with New Titles • 16 mainstay titles in this fiscal year will continued to be operated • About 20 titles with console quality to be added for full preparation • Over half of the 20 titles planned to be released in first half of next fiscal year Existing New Developed by SEGA

  13. Slide 13: Expand Domestic Pipeline with Business Collaboration

    Expand Domestic Pipeline with Business Collaboration ・Investment in game developer, PLAY HEART Secure production line with console quality. PLAYHEART,Inc. Established: 2011 Representative: Itsuki Fukuzato (President and Chief Executive Officer) Principal business: Development/operation of online gam

  14. Slide 14: Overseas Market

    Overseas Market

  15. Slide 15: Market Scale

    Market Scale Market Scale Asia 1 trillion yen ＝ Europe and U.S. 1 trillion yen Room to grow South East Asia＋South Asia ≒ South America＋ Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. EMEA Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 14

  16. Slide 16: Basic Strategy in the Overseas Market

    Basic Strategy in the overseas market Unique market ≒ Independent strategy Independent management system Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 15

  17. Slide 17: Progress of Overseas Expansion

    Progress of Overseas Expansion Sonic Dash • 98 million downloads on a cumulative basis • Record high downloads in Sega Networks’ history *143.5 million downloads on cumulative basis for the Sonic series alone CHAIN CHRONICLE • Released in 144 countries • Asia: Launched in March 2014 • Europe and the

  18. Slide 18: Overseas Contents Production Pipeline

    Overseas Contents Production Pipeline Target threefold growth while enhancing quality Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. FY2014 FY2015 Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 17

  19. Slide 19: Progress of Overseas Expansion

    Progress of Overseas Expansion Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 18

  20. Slide 20: Overseas Bases and Partner Developers

    Overseas Bases and Partner Developers Hire • Release several new titles next fiscal year • Proactively increase personnel Acquire • 100％ owned subsidiary • Representative title: Marvel Puzzle Quest • Release of new titles in 1Q Incubate • Established in December 2014 • Composed of experienced PC onl

  21. Slide 21: Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.

    Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 20

  22. Slide 22: Major Index

    Major Index① August 2013 As of February 17, 2015 Participating Companies 15 Developers 88 Developers (subscription filed) Participating apps 84 395 Total Users 20 million 89.1 million Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. MAU － 10.7 million /month *MAU: as of the end of January

  23. Slide 23: Effect of Noah Pass

    Effect of Noah Pass Quality Ecosystem ＜Banner ads CVR＞ ＜Retention Rate＞ ＜Investment Efficiency (to LTV)＞ 8～32 About three times more than ADNW About three times higher next day retention rate 8 Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. 1 ADNW Fee-based Fee-based ADNW reward ads rew

  24. Slide 24: Potential of Noah Pass

    Potential of Noah Pass B to B Sharing ＝ Free 88 Companies Open 395 titles Effective 89 million Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. users Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 23

  25. Slide 25: Cross-Industry Collaboration

    Cross-Industry Collaboration Monthly Monthly subscription subscription Service A Service B Commerce Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Portal A A Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 24

  26. Slide 26: Project 1

    Project 1 Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 25

  27. Slide 27: Cross-Industry Collaboration: Digital Comics

    Cross-Industry Collaboration: Digital Comics Sending new users Sending trial users who read episodes 1-3 Subscription to fee-based comics Mutually sending users over 200,000 times Sending new users Returning dormant users Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. © ムサヲ / 講談社 Copyri

  28. Slide 28: Cross-Industry Collaboration: Digital Comics

    Cross-Industry Collaboration: Digital Comics ✕ Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 27

  29. Slide 29: Project 2

    Project 2 Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 28

  30. Slide 30: Publication of Smartphone Game Users Kaitai Shinsho

    Publication of Smartphone Game Users Kaitai Shinsho Categorizing smartphone users and smartphone game users by type 7 types of smartphone game users 7 types of smartphone game users Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 2

  31. Slide 31: Advance to Dash Board

    Advance to Dash Board Dash Board Exclusive User/title/market Exclusive Reports Analytics Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. AD products Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 30

  32. Slide 32: Dashboard Analysis

    Dashboard Analysis Cluster composition Advertisement efficiency + Chronological changes Visualization of media contacts by cluster Market analysis Analysis (Macro + Title) Analysis of effects of events held in games Copyright(c) Analysis of In game KPI SEGA NETWORKS Corporation All Rights Reserved.

  33. Slide 33: Dashboard Analysis

    Dashboard Analysis Media contact ranking by Datasection Inc. TV Program Beverages Rank Name of program Genre Rank Name of product Genre 1 A Variety 1 A Soft drink 2 B Drama 2 B Energy drink 3 C Drama 3 C Canned coffee 4 D Animation 4 D Snacks 5 E Sports 5 E Soft drink 6 F News 6 F Ice cream 7 G Dram

  34. Slide 34: Dashboard: Original Report

    Dashboard: Original Report Original Report can’t be disclosed as its disclosure was limited to the meeting. Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 33

  35. Slide 35: Dashboard: Original Services

    Dashboard: Original Services Retargeting ads Ad network Original services Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Mass ads Reward ads Copyright(c) SEGA Networks Co., Ltd. All Rights Reserved. 34

  36. Slide 36: Business Partnership for Noah Pass (1)

    Business Partnership for Noah Pass (1) Strategic business partnership with Metaps Inc. Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 35

  37. Slide 37: Business Partnership for Noah Pass (1)

    Business Partnership for Noah Pass (1) Strategic business partnership with Metaps Inc. Combination of dashboard and Metaps analytics Collaboration in overseas development Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Collaboration among services developed by each company Copyright(c) S

  38. Slide 38: Business Partnership for Noah Pass (2)

    Business Partnership for Noah Pass (2) Strategic business partnership with Datasection Inc. Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 37

  39. Slide 39: Business Partnership for Noah Pass (2)

    Business Partnership for Noah Pass (2) Strategic business partnership with Datasection Inc. Visualization of media contact ranking Acceleration of cross-industrial exchange of big data generated by dashboard Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,

  40. Slide 40: Decision × Science

    DASH BOARD Decision × Science Beta service will be provided from Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. April 1, 2015 Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 39

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