Sega Sammy Holdings Inc. · TSE:6460

Sega Sammy — FY2014 Earnings Presentation

35 slides from Sega Sammy's earnings presentation, May 12, 2014

  1. Slide 1: FY Ended March 2014 Full Year Results Presentation

    FY Ended March 2014 Full Year Results Presentation May 12th, 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 availa

  2. Slide 2: Contents

    Contents 【FY Ended March 2014 Full Year Results / FY Ending March 2015 Full Year Forecasts】 Consolidated Income Statements 3 Future Activities FY Ended March 2014 Highlights 4 Group Structure Reform 25 Major Business Measures 5 Operating Income Primary Factors Appendix 27 6 Behind Fluctuations Net I

  3. Slide 3: FY Ended March 2014 Full Year Results / FY Ending March 2015 Full Year Forecasts

    FY Ended March 2014 Full Year Results/ FY Ending March 2015 Full Year Forecasts © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  4. Slide 4: Consolidated Income Statements (Summary)

    Consolidated Income Statements (Summary) (JPY Billion) FY Ended March 2013 FY Ended March 2014 FY Ending March 2015 Results Full Year Results Full year YoY Forecasts YoY Full year YoY Through 2Q Results Through 2Q Results Change Through 2Q Change Forecasts Change Net Sales 136.5 321.4 162.2 378.0 +1

  5. Slide 5: FY Ended March 2014 Highlights

    FY Ended March 2014 Results Highlights ・Sales and profits increased year-on-year mainly due to the sales of mainstay products in Pachislot and Pachinko Machines Business. Net Sales / Profits ・Both sales and operating income fell below the forecast at the beginning of the fiscal year due to revising

  6. Slide 6: Major Business Measures

    Major Business Measures （June, 2013） ・Business Description: Development, manufacture and sales of casino equipment ・Address: 3-1-1 Higashi-Ikebukuro, Toshima-ku, Tokyo Sunshine 60 39F ■Established SEGA SAMMY ・Established: June 3, 2013 CREATION, INC. ・Capital: 10 million yen ・President and Representa

  7. Slide 7: Operating Income - Primary Factors Behind Fluctuations

    Operating Income – Primary Factors Behind Fluctuations (Major Causes) （JPY Billion) Pachislot Pachislot AM Machine AM Center Consumer Other AM Machine AM Center Consumer Other Pachinko Pachinko Operating Income －3.1 －0.8 +2.7 －1.1 Operating Income ・ Due to the －4.7 sluggish market ・Domestic same-sto

  8. Slide 8: Net Income

    Net Income （JPY Billion） FY Ended March 2013 FY Ended March 2014 FY Ending March 2015 (Full Year Results) (Full Year Results) (Full Year Forecasts) Ordinary Income 20.9 40.5 35.0 Extraordinary Gain 10.1 15.7 0.0 Gain on transfer of benefit obligation Gain on sales of investment relating to employees

  9. Slide 9: Costs and Expenses Results/Forecast

    Costs and Expenses Results/Forecast (JPY Billion) FY Ended March 2013 FY Ended March 2014 FY Ending March 2015 Results Full Year Results Full year YoY Forecasts YoY Full year YoY Through 2Q Results Through 2Q Results Change Through 2Q Change Forecasts Change R&D Expense / Content Production Expense*

  10. Slide 10: 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 As of end of March As of end of March Account 2013 2014 Change Account 2013 2014 Change Cash and Deposits 176.5 101.2 -75.3 Accounts Payable 50.1 37.2 -12.9 Accounts Rec

  11. Slide 11: Consolidated Cash Flows

    Consolidated Cash Flows （JPY billion） +16.1 -27.1 +16.5 －13.3 +4.8 －14.3 +19.7 －13.2 +9.9 -12.3 -9.7 +0.6 +47.5 Other Other Decrease in notes and Other accounts payable- Cash dividends trade paid 202.7 Decrease in notes and Payments for Repayment of long- accounts receivable- transfer of business te

  12. Slide 12: Pachislot / Pachinko Market Forecasts

    （Pachislot / Pachinko Market Forecasts） Pachislot Machine Pachinko Machine (million units) (million units) 1.75 1.00 3.5 1.00 Maket unit sales (left) Market install base (left) Maket unit sales (left) Market install base (left) Sega Sammy sales (left) Turnover (right) Sega Sammy sales (left) Turnove

  13. Slide 13: Segment Results/Forecast: Pachislot and Pachinko Machines

    Segment Results/Forecast: Pachislot and Pachinko Machines (JPY Billion) FY Ended March 2013 FY Ended March 2014 FY Ending March 2015 Results Full Year Results Full year YoY Forecasts YoY Full year YoY Through 2Q Results Through 2Q Results Change Through 2Q Change Forecasts Change Net Sales 54.3 142.

  14. Slide 14: Segment Results/Forecast: Pachislot

    Segment Results/Forecast: Pachislot Shipment Data: Pachislot ＊Number of titles reflects products which begin sales in the period FY Ended March 2013 FY Ended March 2014 FY Ending March 2015 Pachislot Results Full Year Results Full Year Forecasts Full Year Through 2Q Results Through 2Q Results Throug

  15. Slide 15: Segment Results/Forecast: Pachinko

    Segment Results/Forecast: Pachinko Shipment Data: Pachinko ＊Number of titles reflects products which begin sales in the period FY Ended March 2013 FY Ended March 2014 FY Ending March 2015 Pachinko Results Full Year Results Full Year Forecasts Full Year Through 2Q Results Through 2Q Results Through 2

  16. Slide 16: Segment Results/Forecast: Amusement Machine Sales

    Segment Results/Forecast: Amusement Machine Sales (JPY Billion) FY Ended March 2013 FY Ended March 2014 FY Ending March 2015 Results Full Year Results Full year YoY Forecasts YoY Full year YoY Through 2Q Results Through 2Q Results Change Through 2Q Change Forecasts Change Net Sales 18.7 39.1 18.0 38

  17. Slide 17: Segment Results: Amusement Machine Sales

    Segment Results: Amusement Machine Sales Major Titles (Results) Title Game Type Sales WORLD CLUB Champion Football Series Trading Card Game 2.5 billion yen CODE OF JOKER Video Game 2.4 billion yen SENGOKU-TAISEN Trading Card Game 2.1 billion yen BORDER BREAK Series Video Game 1.5 billion yen StarHor

  18. Slide 18: Segment Results/Forecast: Amusement Center Operations

    Segment Results/Forecast: Amusement Center Operations *1 The counting rules for the number of facilities have been changed for the fiscal year ended March 2014 as a result of the establishment of Sega Entertainment Co., Ltd. and the integration of the amusement center operation business within the G

  19. Slide 19: Segment 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) 110 101.6 102.1 100.7 250 95.6 93.1 98.8 95.7 99.4 96.2 96.3 100 96.6 94.

  20. Slide 20: Segment Results/Forecast: Consumer Business

    Segment Results/Forecast: Consumer Business Summary results of FY Ended March 2014 Forecast of FY Ending March 2015 Overall ■ Year-on-year, sales increased and returned to profit ■ Year-on-year, sales and profits are forecasted to increase from expanded earnings in the digital games field ■ Packaged

  21. Slide 21: Segment 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) - 20 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  22. Slide 22: Consumer Business: Major Titles, Packaged Games

    Segment Results : Consumer Business Major Titles (Results) / Packaged Games Sales Unit Title (Region） Platform Launch (thousand) Total War： ROME II（Europe, US） PC 1,130 September Football Manager 2014 （Europe, US） PC 790 October Sonic Lost World （Japan, Europe, US） Wii U, 3DS 710 October Company of

  23. Slide 23: Consumer Business: Major Titles, Digital Games

    Segment Results: Consumer Business Major Titles (Results) /Digital Games ＜PHANTASY STAR ONLINE 2＞  Started providing ”PHANTASY STAR ONLINE 2 es” for Android in April 2014 (iOS version to be launched in May)  Started providing services in Taiwan, Hong Kong and Macau in April 2014  Start providing

  24. Slide 24: Activities Concerning the Casino Related Business

    Activities Concerning the Casino Related Business Main Activities Concerning the Casino Related Business (Resort Complex / Casino Machines) <Operation of Phoenix Seagaia Resort>  Development and operation of resort complexes (hotels, golf courses and international conference halls, etc.), such as P

  25. Slide 25: Future Activities

    Future Activities © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  26. Slide 26: Group Structure Reform

    Group Structure Reform Set-up of “Group Structure Reform Division”  Established “Group Structure Reform Division” as of May 9, 2014 (General Manager: Hajime Satomi, Chairman of the Board and Chief Executive Officer Deputy General Manager: Akira Sugano, Director) Aim: To prepare to inject managemen

  27. Slide 27: Appendix

    Appendix © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  28. Slide 28: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets Number of Pachinko Hall and Number of Machines Installed Per Hall Sources : National Police Agency and Yano Research Institute Ltd. 365 371.9 377.2 20,000 18,164 17,773 349.8 356.2 400 17,426 17,173 16,988 336.5 337.9 16,801 16,504 323.1 16,076 15,617 279.9 284

  29. Slide 29: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets (thousand） Pachinko and Pachislot Machines-Unit Sales and Market Size (billions of yen） Sources : Yano Research Institute Ltd. 8,000 1,200.0 985.2 898.6 921.3 1,000.0 869.9 868.6 886.9 6,000 825.7 786.5 772.9 800.0 672.0 599.8 568.3 569.1 561.5 4,000 518.4 526.

  30. Slide 30: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets Pachislot machines:Prototype testing results Sources:Security Communications Association 80 100.0% 60 80.0% 56.1% 48.1% 50.0% 46.7% 43.6% 39.6% 35.7% 45.6% 46.8% 40.4% 38.3% 42.6% 41.2% 60.0% 40 38.2% 37.2% 29.9% 34.8% 34.5% 38.7% 37.1% 29.8% 37.0% 30.8% 31.8%

  31. Slide 31: 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

  32. Slide 32: Amusement / Game Market Data

    Amusement / Game Market Data Number of Amusement Facilities (Facilities) Amusement Machine and Amusement Center Operations Markets Scale Number of Amusement Machine units installed (Units) 600,000 10,000 486,582 484,804 473,601 460,031 474,808 461,465 446,225 Amusement Machine / Facilities sales (JP

  33. Slide 33: CS Market Data

    CS Market Data Japan's Market for Game Content with Network Connectivity(JPY billion） Sources:f-ism 800 700.1 700 635.1 600 528.5 500 393.3 548.9 400 497.5 318.1 385.6 300 233.2 224.9 118.7 176.7 193.7 29.0 200 5.5 0.5 92.0 89.0 85.4 51.2 5.5 86.0 19.2 10.4 100 90.3 92.0 92.2 88.7 89.5 90.5 75.0 82.

  34. Slide 34: 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/2014/e_201403_4qtransition.xls) ※The counting rules for the number of facilities have been changed from fi

  35. Slide 35: 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,

Sega Sammy Holdings — FY2014 Earnings Presentation on 6ix