Sega Sammy Holdings Inc. · TSE:6460

Sega Sammy — SEGA Networks — Investor Presentation (May 2014)

22 slides from Sega Sammy's investor presentation, May 29, 2014

  1. Slide 1: Meeting Material

    Meeting Material 5/29/2014 Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.

  2. Slide 2: Consumer Business of SEGA SAMMY HOLDINGS

    Consumer Business of SEGA SAMMY HOLDINGS Main Operating Companies Main products, services Package SEGA CORPORATION “Ryu ga Gotoku”, ”Sonic The Hedgehog™” “FOOTBALL MANAGER”, “TOTAL WAR” “Company of Heroes” ATLUS.CO.,LTD “Megami Tensei” series “Persona” series “Etrian Odyssey” series Digital SEGA COR

  3. Slide 3: Growth comparison – SEGA SAMMY Digital business vs SEGA Networks

    Growth comparison – SEGA SAMMY Digital business vs SEGA Networks ・ 163% growth is projected at the end of Q2 FY2015 for all SEGA SAMMY Digital Business ・ With it’s rapid growth, SEGA Networks(SGN) is expected to hold 50% of Sega Sammy’s Digital Business sales in Q2 FY2015 60% 180% SGN 売上シェア SGN sale

  4. Slide 4: FY2014 Highlights

    FY2014 Highlights

  5. Slide 5: Q-Q Gross Sales

    Ｑ-Ｑ Gross Sales ・Sales doubled in the past six months ・Achieved 487％ year-on-year growth （billion yen） 10 Original Forecast 8 7.6 7.8 6.7 6.1 6 4.3 4 2.1 2 1.6NETWORKS Corporation All Rights Reserved. 1.5Copyright(c) SEGA 1.3 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2013 FY2014 Copyright(c) SEGA Networks Co.,Ltd. A

  6. Slide 6: Titles Released

    Titles Released ・Significant increase in hit rates since FY 2013 4Q ◎：Titles sold over 100 million yen ○：Titles within Top 50 ・Have achieved to built a sustainable capability of bringing a stable title portfolio since the last FY FY2013 Q3 FY2014 Q1 Before FY2013 Q2 FY2013 Q4 FY2014 Q2 Copyright(c)

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

    High Hit Rate(1) Number of TOP 50 sales titles: Apr2014 Google play （# of titles） App store （#of titles） 0 2 4 6 8 10 0 2 4 6 8 10 12 14 A 8 SEGA 12 B 6 A 8 C 6 B 6 SEGA 5 C 6 D 5 D 5 E 4 E 4 F 3 F 4 Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. G 3 G 4 H 2 H 4 I 2 I 3 Copyright(c) SEG

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

    High Hit Rate (2) Number of Hit Titles ・The already high hit rate has further increased after 2013 - Top 50 hit rate 80％（68％ overall） - Titles sold over 100 million yen: 5 titles（8 titles overall） Big hits (Over 500 million yen /month) Hits (Over 100 million yen /month) Success Likely to be hits (Ov

  9. Slide 9: Key Title

    Key Title ・Achieved cumulative sales of 7.5 billion yen in 9 months of launch ・Monthly sales has grown and stabilized between 0.9 to 1 billion yen in recent months due to increased DL ・DL increased to nearly 3 million DL at the end of 4Q 3,000 1,200 Gross Sales 2,500 DL 1,000 2,000 800 1,500 600 1,0

  10. Slide 10: Key Title

    Key Title ・Stable growth since release ・Monthly sales have grown and stabilized at over 500 million yen ・Also achieved 9 million DL in early May 10,00 0 700 9,000 Gross Sales 600 8,000 DL 500 7,000 6,000 400 5,000 300 4,000 3,000 200 2,000 Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.

  11. Slide 11: Strength of the Company -- Realizing Sustained Growth

    Strength of the Company -- Realizing Sustained Growth ・ Has nearly 15 studios with the Sega Group and collaborative companies combined Volume of ・ Human resources can be procured without external recruiting process Extensive development resources Pipeline ・ Human resources can be procured without tr

  12. Slide 12: Slide 12

  13. Slide 13: Major Index (1)

    Major Index (1) As of End of March August 2013 2014 Participating companies 15 companies 57 companies (subscriptions filed) Participating apps 84 246 Total users 20 million 41.6 million Maximum introductions/app 50,000/month Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. 100,000/month 3

  14. Slide 14: Major Index (2)

    Major Index (2) MAU +200% Titles +300% Compared to August 2013 Number of Apps (Cumulative) MAU Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Jan 13 Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan 14 Feb Mar *All figures are as of April 17, 2014. The number of apps is counted separate

  15. Slide 15: Entering the Overseas Market

    Entering the Overseas Market ・ Partnership on provision of services in China, Taiwan, Hong Kong, Macau and South Korea ・ Marked a good start in South Korea after release at the end of March Appstore 2nd place Google Play 20th place ・ Releases planned in May for China, in July for Taiwan, Hong Kong a

  16. Slide 16: FY2015 Forecast

    FY2015 Forecast Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 15

  17. Slide 17: Q-Q Gross Sales

    Ｑ-Ｑ Gross Sales （billion yen） 12 11.0 10 7.8 8.0 8 6.7 6 4.3 4 2.1 2 1.5 1.6 Copyright(c) SEGA NETWORKS Corporation All Rights Reserved. 1.3 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2013 FY2014 FY2015 Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved. 16

  18. Slide 18: Domestic Lineup/Pipeline

    Domestic Lineup/Pipeline ・Largest-scale development Pipeline in the industry（15 New titles＋13 existing titles） ・Actively planting seeds to create new big hit titles backed by high hit rates ⇒New titles by the Chain Chronicle team, major MO-ARPG, major IP titles, etc. Big hits （Over 500 million yen/m

  19. Slide 19: Domestic Pipeline

    Domestic Pipeline ・ A wide range of lineups with potential to become a big hit is planned New titles by Chain ・ New RPG from the Chain Chronicle team (planned for 2Q) Chronicle team Major MO-ARPG ・ New cooperative 3D MO-ARPG from our in-house studio (planned for 3Q） ・ Plans to provide several new ti

  20. Slide 20: Expansion of Earnings from Other Domains/IP

    Expansion of Earnings from Other Domains/IP Improving earnings Nurturing IP PlayStation®Vita version “Chain Chronicle V” Chain Chronicle Crimson Retaining the realm and basic functions found in the smartphone version, a Featuring magazine: “Bessatsu Shonen Magazine” new game will be developed for Pl

  21. Slide 21: Full-scale Entry to Overseas Market (Europe and the U.S.)

    Full-scale Entry to Overseas Market（Europe and the U.S.） ・ Renovation of organization structure - Reinforcement to bring know-how from the Japanese market - Accelerating strategic Alliance/Partnerships ・ Utilization of the massive Japanese title library & pipeline - Maximizing release numbers utiliz

  22. Slide 22: Full-scale Entry to Overseas Market (Asia)

    Full-scale Entry to Overseas Market (Asia) ・ Utilization of the massive Japanese title library & pipeline - Release of “Puyopuyo!! Quest” following “Chain Chronicle” and “Dragon Coins” - Continuous release of other domestic titles ・Promotion of independent business starting with some regions - Partn

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