Sega Sammy Holdings Inc. · TSE:6460
Sega Sammy — Q3 FY2023/3 Earnings Presentation
33 slides from Sega Sammy's earnings presentation, Feb 9, 2023
Slide 1: Q3 FY2023/3 Results Presentation
Q3 for the Fiscal Year Ending March 2023 Results Presentation 2023/2/9 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, please under
Slide 2: FY2023/3 Q3 Results / Forecast
01 FY2023/3 Q3 Results / Forecast -2-
Slide 3: Results Highlights
Results Highlights (Billion yen) FY2022/3 FY2023/3 Full Year Revised FY2023/3 Q3 Results Full Year Through Full Year Through Forecast Forecast Q3 Results Q3 (announced on May 13) (announced ➢ Sales and profits increased YoY, progressed steadily on Feb 9) Sales 236.7 320.9 271.9 375.0 381.5 • Perform
Slide 4: Revision of Operating Results Forecast
Revision of Operating Results Forecast [Increase or decrease in operating income by segment from initial forecast] (Unit: billion yen) +5.5 0.0 -1.0 ➢ Entertainment Contents Business • Expect the cost for revaluation of asset quality of inventory assets at the end of the fiscal year (CS) 0.0 +1.0 •
Slide 5: Breakdown of Income (FY2023/3 Q3 Results)
Breakdown of Income (FY2023/3 Q3 Results) (Unit: billion yen) Breakdown of non-operating income/losses and Operating income 38.2 extraordinary income/losses Non-operating income 4.3 Non-operating income 4.3 Gain on investments in partnership 1.6 Foreign exchange gains 1.5 Non-operating expenses 2.4
Slide 6: Impact of Exchange Rate Fluctuations
Impact of Exchange Rate Fluctuations [Impact of foreign exchange on Q3 results] (Unit: billion yen) ➢ Positive impact of approx. 11.3 billion yen for sales and approx. 5.6 billion yen for operating income in Entertainment Contents business Q1 Through Q2 Through Q3 Sales +1.5 +4.3 +11.3 CS Operating
Slide 7: Costs and Expenses, etc.
Costs and Expenses, etc. ■Entertainment Contents (Billion yen) FY2021/3 FY2022/3 FY2023/3 FY2023/3 Revised Full Year Full Year Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (announced Forecast (announced on May 13) on Feb 9) R&D / Content production expenses 9.2 9.8 11.8 14.7 9.9 13.5 12.7 18.3 11.9 14.
Slide 8: Costs and Expenses, etc.
Costs and Expenses, etc. ■Resort (Billion yen) FY2021/3 FY2022/3 FY2023/3 FY2023/3 Revised Full Year Full Year Forecast Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (announced Forecast (announced on May 13) on Feb 9) R&D / Content production expenses 0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 Advertisi
Slide 9: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Billion yen) 【Assets】 【Liabilities and Net Assets】 As of end of As of end of Increase As of end of As of end of Increase Account Account March 2022 Dec 2022 /Decrease March 2022 Dec 2022 /Decrease Cash and Deposits 152.4 147.6 -4.8 Accounts Payable 24.4 32.6 +8.2
Slide 10: Shareholder Returns
Shareholder Returns (Process of Determining the Amount of Return and Methods) FY2023/3 FY2024/3 Q1 Q2 Q3 Q4 Q1 FY2022/3 Q1 Q2 Q3 FY2023/3 Results Results Results Results Results Announcement Announcement Announcement Announcement Announcement Share buybacks (if implemented) Interim dividends Year-en
Slide 11: Per Segments Results / Forecast
02 Per Segments Results / Forecast -11-
Slide 12: Entertainment Contents Business
Entertainment Contents Business (Billion yen) FY2022/3 FY2023/3 Full Year Revised Full Year FY2023/3 Q3 Results Through Full Year Through Forecast Forecast Q3 Results Q3 (announced on May 13) (announced on Feb 9) ➢ Performed generally in line with expectations Sales 177.8 235.9 210.4 277.0 280.0 • W
Slide 13: Entertainment Contents Business: Per Subsegments
Entertainment Contents Business: Per Subsegments FY2023/3 Q3 Resutlts Forecast • Strong sales of new titles "Sonic Frontiers" and • Launch several major IP titles Full Game "Persona 5 Royal" (Remaster) • Expect revaluation of asset quality of some titles • Repeat sales went weak • Strong sales of ex
Slide 14: Strong Titles in Q3 (Full Game)
Strong Titles in Q3 (Full Game) "Sonic Frontiers" "Persona 5 Royal" (Remaster) Multi-platform release Multi-platform release Nov. 8, 2022 Oct. 21, 2022 Sold over 2.9 million units worldwide Sold over 1.3 million units worldwide (as of the end of December 2022) (as of the end of December 2022) ©SEGA
Slide 15: Consumer Area / Full Game: Sales Trend
Consumer Area / Full Game: Sales Trend (Unit: billion yen) -15-
Slide 16: Consumer Area / F2P: Sales Trend
Consumer Area / F2P: Sales Trend "Project SEKAI COLORFUL STAGE! feat. Hatsune Miku" (Unit: billion yen) “PHANTASY STAR ONLINE 2” (2012/7~) "PHANTASY STAR ONLINE 2 NEW GENESIS" “SEGA NET MAHJONG MJ“ (2013/7~) [Top 3 titles in sales from Oct. to Dec.] (No. 1) (No. 2) (No. 3) "Project SEKAI COLORFUL ST
Slide 17: (Reference) Consumer Area: Sales Trend
(Reference) Consumer Area: Sales Trend (Billion yen) FY2022/3 FY2023/3 Revised Full Year Full Year Through Through Through Through Through Forecast Q1 Q1 Forecast Q2 Q3 Q4 Q2 Q3 (announced (announced on May 13) on Feb 9) Sales 29.5 71.2 119.6 158.3 34.7 75.0 142.5 192.0 188.0 Domestic 13.0 30.9 50.3
Slide 18: (Reference) Consumer Area / Full Game: Unit Sales Trend
(Reference) Consumer Area / Full Game: Unit Sales Trend FY2022/3 FY2023/3 Revised Full Year Full Year Through Through Through Through Through Forecast Q1 Q1 Forecast Q2 Q3 Q4 Q2 Q3 (announced (announced on May 13) on Feb 9) Full Game: Number of Titles Japan 0 title 3 titles 5 titles 6 titles 3 title
Slide 19: (Reference) Entertainment Contents Business: Sales Schedule (Consumer)
(Reference) Entertainment Contents Business: Sales Schedule ~FY2023/3 Q3 In or after Q4 (plan) 13 Sentinels: Aegis Rim Persona 4 Golden Soul Hackers 2 Sonic Frontiers (for Nintendo Switch™) (Remaster) Persona 5 Royal Persona 3 Portable New titles Sonic Origins Two Point Campus (Remaster) (Remaster)
Slide 20: (Reference) Entertainment Contents Business: Sales Schedule (Amusement Machine)
(Reference) Entertainment Contents Business: Sales Schedule ~FY2023/3 Q3 In or after Q4 (plan) StarHorse4 / EIKETSU TAISEN / maimai DX / CHUNITHM / O.N.G.E.K.I. / MJ ARCADE <Major titles in operation> INITIAL D THE ARCADE / KanColle Arcade / Fate Grand Order Arcade / lalamee Amusement Machine <Major
Slide 21: Pachislot and Pachinko Machines Business
Pachislot and Pachinko Machines Business (Billion yen) FY2022/3 FY2023/3 Full Year Revised FY2023/3 Q3 Results Full Year Through Full Year Through Forecast Q3 Results Q3 (announced Forecast (announced ➢ Progressed steadily overall on May 13) on Feb 9) • Especially the sales of pachislot machines (No
Slide 22: Sales Titles in Q4
Sales Titles in Q4 ➢ "Pachislot Kabaneri of the Iron Fortress" • Maintaining high utilization level since its launch in Jul. 2022 • Unit sales: 19,205 units (as of the end of Dec. 2022) • Large-scale additional sales in Jan. 2023 ➢ "P Shin Hokuto Muso Chapter 4" • Delivery month: February 2023 "Pach
Slide 23: Smart Pachislot Hokuto No Ken
“Smart Pachislot Hokuto No Ken” ➢ The first smart pachislot for the Group ➢ Follows "Pachislot Hokuto No Ken", the No. 1 machine in all-time sales volume ➢ Delivery month: Apr. 2023 (plan) "Smart Pachislot Hokuto No Ken" ©Buronson & Tetsuo Hara／COAMIX 1983, ©COAMIX 2007 Approved No. YRA-114 ©Sammy -
Slide 24: (Reference) Pachislot and Pachinko Machines Business: Sales Schedule
(Reference) Pachislot and Pachinko Machines Business: New series Sales Schedule Specification changed title ～2023/3 Q3 In or after 2023/3 Q4 (plan) Pachislot Kabaneri of the Iron Fortress Pachislot Kabaneri of the Iron Fortress Pachislot Hard Boiled (Additional sales) Pachislot Smart Pachislot Hokut
Slide 25: Resort Business
Resort Business (Billion yen) FY2022/3 FY2023/3 Full Year Revised FY2023/3 Results Full Year Through Full Year Through Forecast Q3 Results Q3 (announced Forecast (announced ➢ PHOENIX RESORT: Recovery trend centered on on May 13) on Feb 9) individual customers Sales 6.6 8.6 8.7 11.5 11.5 • Measures t
Slide 26: (Reference) Status of Each Facility: PHOENIX RESORT
(Reference) Status of Each Facility: PHOENIX RESORT ◼ PHOENIX RESORT: Sales by type of facility users • Cumulative Q3 sales and No. of facility users exceeded before COVID-19 levels due to strong sales of individual consumer • Continue to expect high individual customer demand from the contribution
Slide 27: (Reference) Status of Each Facility: PARADISE SEGASAMMY
(Reference) Status of Each Facility: PARADISE SEGASAMMY ◼ Trend of Drop amounts* at PARADISE CITY (KRW million) *Drop amounts: Purchased amount of chips by customers -27-
Slide 28: Appendix
O03 Appendix SEGASammy
Slide 29: Trend of Balance of Content Production Expenses in B/S
Trend of Balance of Content Production Expenses in B/S (Consumer area) (Unit: billion yen) *Balance of work in progress R&D expenses of titles before release + balance of unamortized R&D expenses of released titles -29-
Slide 30: Trend of No. of Employees by Segment
Trend of No. of Employees by Segment (Unit: employees) *No. of employees are the No. of full-time employees and permanent contract employees. Excludes the No. of temporary employees -30-
Slide 31: Resort Business (PARADISE SEGASAMMY)
Resort Business (PARADISE SEGASAMMY) (KRW Billion) 2022/3 2023/3 FY2023/3 Q3 Results Full year Through Q3 Through Q3 Results Sales 126.2 161.5 169.7 ➢ Recovery trend due to relaxation of travel restrictions Casino 75.2 86.6 85.6 • While number of casino visitors remained sluggish, casino sales Hotel
Slide 32: Concept of Investment in Growth (~FY2026/3)
Concept of Investment in Growth (～FY2026/3) Continue to consider investing in the following growth areas Strengthen development Area of ⚫ Expansion of organic development pipeline consideration ⚫ Strengthen global mobile and online games resources for investment Consumer Area Approx. 100.0 billion y
Slide 33: Website and Cautionary Statement
https://www.segasammy.co.jp/english/ Cautionary Statement for Investors and Shareholders with Respect to Nevada Gaming Statutes and Please visit below website for more information of products and services of Regulations SEGASAMMY. SEGA SAMMY HOLDINGS INC. (“the Company”) is registered with the Nevad
Sega Sammy Holdings — Q3 FY2023/3 Earnings Presentation on 6ix