Sega Sammy Holdings Inc. · TSE:6460

Sega Sammy — Q3 FY ending March 2016 Earnings Presentation

37 slides from Sega Sammy's earnings presentation, Feb 8, 2016

  1. Slide 1: FY Ending March 2016 3rd Quarter Results Presentation

    FY Ending March 2016 3rd Quarter Results Presentation February 8th, 2016 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

  2. Slide 2: Contents

    Contents 【FY Ending March 2016 3rd Quarter Results / Full Year Forecasts】 Consolidated Income Statements (Summary) 3 Results Highlights 4 Major Business Measures 5 Major Structure Reform Initiatives 6 Costs and Expenses Results 7 Consolidated Balance Sheet (Summary) 8 Segment Results / Forecasts Seg

  3. Slide 3: Consolidated Income Statements (Summary)

    Consolidated Income Statements (Summary) New Segment （Reference）Former Segment (JPY B illion) FY Ended March 2015 FY Ending March 2016 (JPY Billion) FY Ended March 2015 Full Year Revised Full Results Full Year Results YoY Forecast Year Forecasts YoY Results Full Year Through 3Q Results Through 3Q Re

  4. Slide 4: Results Highlights

    Results Highlights • Sales decreased and profits increased year-on-year Net Sales/Profits ⇒ Revised full-year forecasts downward on December 4 ⇒ Improvement was seen compared to same period last year in net income attributable to Other shareholders of parent company since corporate tax, etc. was sma

  5. Slide 5: Major Business Measures

    Major Business Measures (announced November 27, 2015) ① Transfer of shares of Index Corporation <Date of transfer of shares> <Overview of transfer of shares> Conclusion of share transfer agreement December 1, 2015 Name of subsidiary Index Corporation Date of the share transfer December 1, 2015 Conte

  6. Slide 6: Major Structure Reform Initiatives

    Major Structure Reform Initiatives <Structure reform initiatives> (Initiatives since the fiscal year ended March 2015) ■ Purpose: Review the earnings structure of the entire Group from a medium- to long-term perspective  Transition from cost structure reform, which has been pressed ahead with focus

  7. Slide 7: Costs and Expenses Results

    Costs and Expenses Results (JPY Billion) FY Ended March 2015 FY Ending March 2016 Full Year Revised Full Results Full Year Results YoY Forecast Year Forecasts YoY Through 3Q Results Through 3Q Change (announced (announced Change on May 11) on Dec 4) R&D Expense / Content 48.8 67.6 40.3 -17% 69.4 - -

  8. Slide 8: Consolidated Balance Sheet (Summary)

    Consolidated Balance Sheet (Summary) (JPY billion) 【 Assets 】 【 Liabilities and Net Assets 】 As of end of As of end of As of end of As of end of Account March 2015 December 2015 Change Account March 2015 December 2015 Change Cash and Deposits 102.2 81.2 -21.0 Accounts Payable 26.9 32.3 +5.4 Accounts

  9. Slide 9: Segment Results: Pachislot and Pachinko Machines

    Segment Results: Pachislot and Pachinko Machines (JPY Billion) FY Ended March 2015 FY Ending March 2016 Revised Full Year Full Year Forecast Results Full Year Results YoY Forecasts YoY (announced Through 3Q Results Through 3Q Change (announced Change on May 11) on Dec 4) S ales 108.9 152.1 90.4 -17%

  10. Slide 10: Segment Results: Pachislot

    Segment Results: Pachislot Delivery Data: Pachislot FY Ended March 2015 FY Ending March 2016 Revised Full Year Pachislot Full Year Forecast Results Full Year Results Forecasts (announced Through 3Q Results Through 3Q (announced on May 11) on Dec 4) 2 titles 3 titles 4 titles 7 titles - 83,516 units

  11. Slide 11: Segment Results: Pachinko

    Segment Results: Pachinko Delivery Data: Pachinko FY Ended March 2015 FY Ending March 2016 Revised Full Year Pachinko Full Year Forecast Results Full Year Results Forecasts (announced Through 3Q Results Through 3Q (announced on May 11) on Dec 4) 4 titles 5 titles 4 titles 5 titles - 196,357 units 20

  12. Slide 12: Segment Results: Entertainment Contents Business

    Segment Results: Entertainment Contents Business (JPY Billion) FY Ended March 2015 FY Ending March 2016 Full Year Revised Full Year Results Full Year Results YoY Forecast Forecasts YoY Through 3Q Results Through 3Q Change (announced (announced Change on May 11) on Dec 4) S ales 147.9 199.6 143.0 -3%

  13. Slide 13: Segment Results: Entertainment Contents Business

    Segment Results: Entertainment Contents Business Summary of Results Through 3Q Full Year Forecasts  As for digital games, although existing titles were solid, advertising costs have increased and asset value of some titles have been reviewed that were unable to gain market reception  Revised full-

  14. Slide 14: Segment Results: Entertainment Contents Business

    Segment Results: Entertainment Contents Business TOP 3 Titles (Digital Game) “PHANTASY STAR ONLINE 2” “CHAIN CHRONICLE – Kizuna no Shintairiku” “Puyopuyo!! Quest” ©SEGA © SEGA ©SEGA ■ Major Index / Digital Games (Digital Overall) *Sales top three title In the period of October-December 2015 FY Ended

  15. Slide 15: Segment Results: Entertainment Contents Business

    Segment Results: Entertainment Contents Business ■Major Index / Digital Games (Digital Overall)  Share of sales for top 3 titles increased due to strong performance of mainstay titles  As with the first half of the fiscal year, invested advertising costs in new and existing titles while sales incr

  16. Slide 16: Segment Results: Entertainment Contents Business

    Segment Results: Entertainment Contents Business ■Major Index / Domestic titles  There were fewer releases of new titles in 3Q compared to 2Q and so MAU decreased slightly; On the other hand, ARPMAU was strong ■Major Index / Noah Pass *1 *1. Noah Pass refers to a marketing support tool for smart de

  17. Slide 17: Segment Results: Entertainment Contents Business

    Segment Results: Entertainment Contents Business Delivery Data / Plan: Packaged Games *Number of titles reflects products which begin sales in the period FY Ended March 2015 FY Ending March 2016 Breakdown Full Year Revised Full Year by Region Results Full Year Results Forecast Forecasts Through 3Q R

  18. Slide 18: Segment Results: Resort Business

    Segment Results: Resort Business (JPY Billion) FY Ended March 2015 FY Ending March 2016 Full Year Revised Full Results Full Year Results YoY Forecast Year Forecasts YoY Through 3Q Results Through 3Q Change (announced on (announced Change May 11) on Dec 4) Sales 10.8 14.9 11.5 +6% 18.0 16.5 +11% O pe

  19. Slide 19: Segment Results: Resort Business

    Segment Results: Resort Business Summary of Results Through 3Q Full Year Forecasts “Phoenix Seagaia Resort”  To implement bridal fair celebrating the announcement of “Tenku no Banquet Hall” scheduled to open in the summer ■To hold “Dunlop Phoenix Tournament 2015”.  To hold “Ultimate Meat Journey i

  20. Slide 20: Segment Results: Resort Business - PARADISE CITY construction progress

    Segment Results: Resort Business ■ Construction progress of PARADISE CITY, South Korea’s first full-fledged integrated resort ＜Image after completion ＞ ＜Construction progress (as of December 31, 2015)＞ ＜Image of location＞ (scheduled to open in the first half of 2017) Incheon International Airport Cu

  21. Slide 21: Appendix

    Appendix © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  22. Slide 22: 1. Supplementary Information on the Market

    1. Supplementary Information on the Market © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  23. Slide 23: 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 17,426 500.0 17,173 16,988 16,801 16,504 393.5 16,076 15,617 371.9 377.2 387.8 15,165 14,674 356.2 365.0 13,585 400.0 15,000 294.7 304.3 12,937 270.3 274.3 279.9 284.9 12,1

  24. Slide 24: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets Sources:Yano research Institute Ltd. Sources : White Paper on Leisure Industry 2015, Japan Productivity Center - 24 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  25. Slide 25: Pachinko and Pachislot Machine Markets

    Pachinko and Pachislot Machine Markets Sources:Security Communications Association - 25 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  26. Slide 26: Pachislot / Pachinko Sales Share

    Pachislot / Pachinko Sales Share Share of Annual Pachislot Machine Sales 2010 2011 2012 2013 2014 Rank Manufacturer Units sold Share Manufacturer Units sold Share Manufacturer Units sold Share Manufacturer Units sold Share Manufacturer Units sold Share 1 Sammy 302,270 30.9% Sammy 300,866 23.9% U Com

  27. Slide 27: Packaged and Digital Game Market Data

    Packaged and Digital Game Market Data Home Video Game and Online Game Markets Scale Japan's Market for Game Content with Network Connectivity (JPY billion) 1,000.0 866.3 886.3 823.9 800.0 735.8 600.0 528.5 393.3 715.4 755.8 779.4 400.0 606.9 318.1 233.2 385.6 118.7 224.9 200.0 29.0 92.0 85.4 51.2 19

  28. Slide 28: 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 10,000 486,582 484,804 473,601 1,000 461,465 446,225 432,35

  29. Slide 29: 2. Supplementary Information on the Business

    2. Supplementary Information on the Business © SEGA SAMMY HOLDINGS INC. All Rights Reserved.

  30. Slide 30: Changes to Business Segment and Accounting Policy

    Changes to Business Segment and Accounting Policy (1) Change to Business segment FY ended March 2015 FY FYending March 2016 ending March 2016 Pachislot and Pachinko Machines Pachislot Pachislotand and Pachinko Machines Pachinko Machines Entertainment EntertainmentContents Business Contents Business

  31. Slide 31: Supplement: Prototype testing application and installation deadlines

    Supplement (Deadline for pachislot and pachinko machines’ prototype testing application/deadline for installment of new machines) ■Pachislot End of September 15, End of November 2014 2015 July 2016 Old-testing machines Prototype testing (before the change of application Installment of new machines p

  32. Slide 32: Supplement: Overview of specifications of pachislot/pachinko machines

    Supplement (Overview of specifications of pachislot/pachinko machines) ■Pachislot Normal (A) A+ART (Combined) AT・ART Sales: Approx. 16.7% Sales: Approx. 7.7% Sales: Approx. 75.9% Market Share Installment: Approx. 33.4% Installment: Approx. 5.9% Installment: Approx. 60.7% Combined machine type that M

  33. Slide 33: Business Composition of the Entertainment Contents Business

    Business Composition of the Entertainment Contents Business Amusement Amusement Center Digital Games Packaged Games Animation / Toy Machine Sales Operations • Planning / development / • Planning / development / • Development / • Planning / development / • Production / sales / operation of PC online

  34. Slide 34: Resort Business

    Resort Business Major initiatives taken in the Resort Business  Facility name: Phoenix Seagaia Resort  Location: Miyazaki prefecture (Miyazaki City)  Operating company: PHOENIX RESORT CO.,LTD.  Overview: Resort facility which holds accommodation facilities such as “Sheraton Grande Ocean Resort,”

  35. Slide 35: Past Operating Results (Former Segment basis)

    Past Operating Results (Former Segment basis) *The data in this page can be downloaded from following URL. From FY Ended March 2005 to FY Ended March 2015 (http://www.segasammy.co.jp/english/ir/library/pdf/settlement/2015/e_201503_4q_transition.xls) ※The counting rules for the number of facilities h

  36. Slide 36: Past Operating Results (New Segment basis)

    Past Operating Results（New Segment basis） *The data in this page can be downloaded from following URL. From FY Ended March 2015～ (http://www.segasammy.co.jp/english/ir/library/pdf/settlement/2016/e_201603_3q_transition.xls) (JPY billion) FY Ended FY Ending March 2015 March 2016 Results Results Resul

  37. Slide 37: 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 — Q3 FY ending March 2016 Earnings Presentation on 6ix