4q Presentation 20210513 e
4q Presentation 20210513 e
4q Presentation 20210513 e
Results Presentation
2021/5/13
Market forecasts, operating results forecast, and other information contained in these materials are based on judgements and projections of the Company’s
Disclaimer managements from currently available information. Therefore, please understand that the contents herein involve risks and uncertainties, and the actual results
could differ materially depending on various factors.
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FY2021/3 Results, FY2022/3 Forecast
(JPY Billion) 2020/3 2021/3 2022/3
FY2021/3 Results
Full Year Full Year Full Year
Results Results Forecast
Sales 366.5 277.7 312.0 • Strength and weakness in each business became
Entertainment Contents 247.6 217.8 213.0 clearer due to the impact of COVID-19.
Pachislot and Pachinko Machines 108.5 53.1 89.0 • Significant growth in Consumer area.
Resort 10.4 6.3 9.5
Other / Elimination 0.0 0.5 0.5 • Recorded significant extraordinary income and
Operating Income 27.6 6.5 20.0 losses due to the implementation of "structural
Entertainment Contents 16.5 27.9 23.0 reform.“
Pachislot and Pachinko Machines 23.2 -10.6 9.0
Resort -3.6 -4.1 -3.0 • Net income was recorded due to deferred tax assets
Other / Elimination -8.5 -6.7 -9.0 being recorded.
Non-operating income 3.2 2.8 3.0
Non-operating expenses 5.5 7.6 3.0
Ordinary Income 25.2 1.7 20.0
Entertainment Contents 16.2 27.9 25.0 FY2022/3 Forecast
Pachislot and Pachinko Machines 22.7 -11.3 9.0
Resort -5.3 -8.9 -5.0 • Recovery of earnings in Pachislot and Pachinko
Other / Elimination -8.4 -6.0 -9.0 Machines Business, Amusement Machine Sales
Ordinary Income Margin 6.9% 0.6% 6.4%
Extraordinary income 3.1 28.8 -
area, etc.
Extraordinary losses 1.2 40.3 - • Expecting an increase in operating expenses and a
Income before income taxes 27.1 -9.8 20.0 reactionary fall of repeat sales following the strong
Profit attributable to owners of parent 13.7 1.2 14.0
ROE 4.6% 0.4% -
performance in Consumer area.
Dividends per share (JPY) 40.00 30.00 40.00
2) Reduction of Fixed
• Call for voluntary retirement, etc. -9.2 billion yen (extraordinary
expenses losses)
8.8
Improved
Impact from reduction of fixed Normalization
amount in P/L P/L
expenses associated with of labor
associated with improvement
structural reform expenses
structural reform
Working capital of
existing business:
Approx. 70 billion yen
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Entertainment Contents Business
FY2021/3 Results
(Billion yen) 2020/3 2021/3 2022/3 Significant increase in profit YoY due to the contribution of
Full Year Full Year Full Year
Results Results Forecast Consumer area.
Sales 247.6 217.8 213.0 Amusement Center Operations area was excluded from
Consumer 125.5 135.7 140.0 consolidation from 4Q due to the transfer of shares of the
Amusement Machine Sales 51.0 35.7 43.0
group company engaged in amusement facilities operation.
Amusement Center Operations 41.9 21.0 -
Animation / Toy 26.2 23.2 26.5
Other / Elimination 2.9 2.2 3.5
Operating Income 16.5 27.9 23.0
Consumer 14.7 31.4 21.0
Amusement Machine Sales -0.6 -1.6 1.7 FY2022/3 Forecast
Amusement Center Operations 1.4 -1.4 -
Animation / Toy 2.7 2.1 1.8 Consumer area expects the decline due to the reactionary fall
Other / Elimination -1.7 -2.6 -1.5 of repeat sales.
Non-operating income 1.3 0.9 2.4 Operating expenses such as R&D and advertising expenses
Non-operating expenses 1.6 1.0 0.4
Ordinary Income 16.2 27.9 25.0 associated with the increase in new titles will increase.
Ordinary Income Margin 6.5% 12.8% 11.7% Amusement Machine Sales area expects the improvement in
earnings due to the reduction of fixed expenses associated
with the structural reform.
Schedule to record allocated revenues of the Sonic movie.
Amusement ・Revenue from rev. sharing model and machine sales decreased due to the closure of stores and declined store
Machine Sales utilization due to the impact of COVID-19.
area ・Steady performance of regular products such as prize category and content update of mainstay titles.
FY2022/3 Forecast
(Full Game) Expecting the reactionary fall following the effect of stay-at-home spending in repeat sales and an
Consumer area increase in expenses associated with the increase in new titles.
(F2P) Launch of new "PHANTASY STAR ONLINE 2" series is scheduled .
Amusement ・Earnings improve due to the reduction of fixed expenses associated with the execution of structural reform.
Machine Sales ・Plan to launch regular products such as UFO Catcher series machines and prizes for UFO CATCHER, as well
area as new products.
(Animation) Release the theatrical version of “Detective Conan The Scarlet Bullet” and expect to record revenues
Animation / Toys
from animation production and distribution, etc.
area
(Toys) Plan to sell new products and regular products.
© SEGA SAMMY HOLDINGS INC. All Rights Reserved.
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Consumer Area (Full Game’s sales trend)
"Persona 5 Strikers"
"Football Manager 2021"
"YAKUZA : LIKE A DRAGON
(Unit: billion yen) "YAKUZA : LIKE A DRAGON" (Western version)
"Mario & Sonic at the Olympic Games "Shin Megami Tensei III NOCTURNE HD REMASTER"
Tokyo 2020"
"Football Manager 2020" "Persona 4 Golden"
(PC version)
"Persona 5 Strikers“
"Total War: THREE KINGDOMS" (Western version)
"A Total War Saga:
"Team Sonic Racing"
TROY"
"Persona 5 Royal"
*Repeat: Titles released in or before previous fiscal year including “Sonic” series, “Persona” series, “Total War” series, “Football Manager” series, and “YAKUZA” series, etc.
*Figures of the fiscal year ended March 31, 2019 are reference values before segment change
© SEGA SAMMY HOLDINGS INC. All Rights Reserved.
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Consumer Area (Full Game’s sales trend)
*Repeat: Titles released in or before previous fiscal year including “Sonic” series, “Persona” series, “Total War” series, “Football Manager” series, and “YAKUZA” series, etc.
*Figures of the fiscal year ended March 31, 2019 are reference values before segment change
© SEGA SAMMY HOLDINGS INC. All Rights Reserved.
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Consumer Area (Number of Full Game’s unit sales by IP)
【FY2021/3 Results of Major titles】
IP Unit Sales Major titles (Released month)
"Mario & Sonic at the Olympic Games Tokyo 2020“ (November 2019)
Approx. “Team Sonic Racing” (May 2019)
Sonic 4,400K units “Sonic Mania” (August 2017)
“Sonic Generations” (December 2011), etc.
“Total War: SHOGUN 2” (March 2011)
Approx. “Total War: ROME II” (September 2013)
Total War 4,000K units “Total War: WARHAMMER 2” (September 2017)
“Total War: Three Kingdoms” (May 2019), etc.
“Football Manager 2021” (November 2020)
Approx. “Football Manager 2020” (November 2019)
Football Manager 3,800K units “Football Manager 2020 Mobile” (November 2019)
“Football Manager 2021 Mobile” (November 2020)
“Persona 5 Strikers” (February 2020)
Approx. “Persona 4 Golden” (June 2020)
Persona 3,000K units “Persona 5 Royal” (October 2019)
“Persona 5” (September 2016), etc.
“Endless Space2” (May 2017)
“Alien: Isolation” (October 2014)
Others ー “YAKUZA : LIKE A DRAGON” (January 2020)
“Two Point Hospital” (August 2018), etc.
© SEGA SAMMY HOLDINGS INC. All Rights Reserved.
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Consumer Area (F2P’s sales trend)
38.1
33.1
"Re:ZERO -Starting
Life in Another
World- Lost in
Memories"
"Project SEKAI COLORFUL STAGE! “FIST OF THE NORTH STAR LEGENDS ReVIVE"
feat. Hatsune Miku" ©Tappei Nagatsuki,KADOKAWA/
Re:ZERO2 PARTNERS
© SEGA / © Colorful Palette Inc. / © Crypton Future Media, INC. ©Buronson & Tetsuo Hara/COAMIX 1983, Approved No.GC-218 ©SEGA
www.piapro.net All rights reserved. ©SEGA
(F2P)
© SEGA
"Shin Megami Tensei V" “LOST JUDGMENT”
©ATLUS. ©SEGA. All rights reserved. © SEGA
*Full Game = Mainly physical sales and download sales of full game for home video game consoles and PCs. (Additional download content sales are not included.)
*F2P = Mainly sales of contents offering free basic play and microtransaction for smartphones and PCs.
*Other = Sales of additional downloadable contents, consignment sales of 3rd party titles, revenue from consignment development, transfer of titles, offering of titles in batches to 1st parties,
sales of products other than game software, etc.
Sonic Series / Persona Series / Total War Series / Football Manager Series / YAKUZA Series, etc.
Consumer
In or before
PHANTASY STAR ONLINE 2 / Puyo puyo!! Quest / CHAIN CHRONICLE
FY2018/3~
FY2019/3~ SHIN MEGAMI TENSEI Liberation D×2 / SEGA Pocket Club Manager
FY2022/3~
PHANTASY STAR ONLINE 2 NEW GENESIS
New titles
*Scheduled to be released on June 2021
<Existing titles> KanColle Arcade / StarHorse Series / Fate/Grand Order Arcade / WCCF FOOTISTA / SANGOKUSHI TAISEN
Amusement Machine Sales
Sonic The Hedgehog Detective Conan: Detective Conan: Anpanman: Fluffy Flurry and the
(in Japan) The Scarlet Alibi The Scarlet Bullet Land of Clouds
Animation / Toys
*Scheduled to be released on
June 25, 2021
Improvement in earnings in the second half of the year, due to resume of sales activities of machines
Expect recovery in unit sales in FY2022/3 compared to FY2021/3, due to the arrival of
previous regulation machines’ deadline for removal
Expectation of annual unit sales in market, remaining number of previous regulation machines
Remaining number of
Remaining number of previous regulation
previous regulation machines
machines Pachinko: 820K Units
Pachislot: 720K Units
(Major titles launched in FY21/3) Month of Sales units (Titles to be launched in FY22/3) Month of
delivery delivery
Pachislot Pachislot Hokuto No Ken Pachislot Pachislot Angel Beats! Apr.
Mar. 17,456 units
Shukumei
Pachislot The Seven deadly Pachislot GAMERA Jun.
Nov. 6,207 units
Sins
Pachinko
Pachislot Initial D Jan. 5,369 units P Kabaneri of the Iron Fortress Apr.
Pachinko P Shin Hokuto Muso Chapter 3 Dec. 43,901 units P Hokuto no Ken 8 Kyuseishu May.
*In-house estimation based on DK-SIS data (Data for 4 yen Pachinko and 20 yen Pachislot)
FY2020 4Q FY2021 4Q
(KRW Billion) Results Results FY2021/3 Results
Sales 463.3 177.5
Casino 375.5 126.8 The number of facility users declined
Hotel 69.2 44.4
• Number of casino users YoY: 45.4%
Other 18.4 6.3
Cost of sales 391.2 216.0 • Streamlined the facilities operation by
Casino 210.4 95.2
suspending the operation of some facilities and
Hotel 118.2 85.4
Other 62.4 35.3 reducing fixed expenses.
Gross profit 72.1 -38.5
SG&A 52.1 28.1
Operating profit 19.9 -66.7 FY2022/3 Forecast
EBITDA 84.4 -7.7
Net profit -22.5 -106.2 Expecting that the restriction of foreign visitors
Number of casino visitors
382 174 in each country will continue up to 2Q.
(Thousands)
Expect the reduction of loss margin due to the
Source: Paradise IR
recovery in utilization of facilities.
SEGASAMMY
Equity method acquisition -1.6 -4.7
amount (Billion yen)
*PARADISE SEGASAMMY Co., Ltd. is an equity method affiliate of SEGA SAMMY HOLDINGS INC. *Figures for PARADISE SEGASAMMY Co., Ltd. are recorded
with three months delay as its settlement of accounts is December *Local accounting standard
© SEGA SAMMY HOLDINGS INC. All Rights Reserved.
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Resort Business (PARADISE SEGASAMMY)
Trend of Drop* amounts at PARADISE CITY (KRW Million)
April 2017
Opening of
PARADISE CITY
-36-
Long-term vision
Pachislot and
Entertainment Pachinko Resort Sustainability
Global Leading No.1 in Sales Opening
Contents Provider and Utilization of IR Environment Empathy Edge Economics
share
800
4,000
(Unit: Billion yen) 366.5
337.0 350.0 700
3,500 323.6 331.6
312.0
600
3,000 277.7
2,500
45.0 500
400
2,000
30.0
Sales1,500 25.2 300
20.0
1,000 14.5 200
Ordinary
7.4
Income 500 100
1.7
0 0
FY2018/3 FY2019/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3
Previous Mid-term Plan period (Road to 2020) Structural reform New Mid-term Plan
Aiming for ROE10% and ordinary income of 45.0 billion yen in FY2024/3
FY21/3 Results FY22/3 Forecast FY23/3 Forecast FY24/3 Forecast (Unit: Billion yen)
Sales 217.8 213.0 238.0 242.0
Entertainment Operating Income 27.9 23.0 28.5 39.0
Contents
Ordinary Income 27.9 25.0 30.0 40.0
Sales 53.1 89.0 88.0 96.0
Pachislot and Operating Income -10.6 9.0 9.0 13.0
Pachinko
Ordinary Income -11.3 9.0 9.0 13.0
Sales 6.3 9.5 10.5 10.5
Resort Operating Income -4.1 -3.0 -1.5 -1.3
Ordinary Income -8.9 -5.0 0.0 1.0
Sales 0.5 0.5 0.5 1.5
Other/ Elimination Operating Income -6.7 -9.0 -9.0 -8.7
Ordinary Income -6.0 -9.0 -9.0 -9.0
Sales 277.7 312.0 337.0 350.0
Operating Income 6.5 20.0 27.0 42.0
Consolidated Ordinary Income 1.7 20.0 30.0 45.0
ROE 0.4% 5% 7% 10%
Focused investment
Investment Consumer area Creation of Super Game
in growth IR business Certification as a
business operator of
IR
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Long-Term Objectives
(Trillion yen)
21 (Billion person)
3.2
19 2 2.8
1 0.8
4
4 0.7
2.0 0.4
10 5 0.4 0.2
5 0.4
1 0.2
0.3
2 0.2
3 8 1.7
7 1.4
1.0
3.2
1 2 2
0.1 0.1 0.1
2015 2020 2023 2015 2020 2023
*Source: Created based on Newzoo Report January 2021, 1USD = 105JPY *Source: Created based on Newzoo reports, All people who played games in any of the platform following
in the last six months; PCs, home videogame consoles, mobile devices and the cloud gaming services.
PlayStation Xbox
oculus Luna
Nintendo
【Key strategies】
Growth
High (Global) Priority Strategies for
Priority Strategies for potential
3 years 5 years
Strategy 1: Strategy 2: Creation of Super Game
Making existing IPs into global brand
Establishment of strong IP which is recognized as a Creation of titles which can be expanded globally
global brand
Growth Low
(Domestic)
potential
Strategy 2:
Creation of Super Game
Priority Strategies for
3 years
Earnings
Strategy 1:
Making existing IPs into global brand
Utilization of past IPs Support subscription
1 2 3
Expansion of Prolonging the Strengthening of
touch points product life cycle user engagement
©SEGA
FY2020/3~ FY2023/3~
Sequel of the movie, and anime will be
Made into a movie
distributed in Netflix
Make into
Global Online Media
IP utilization
© SEGA
© ATLUS ©SEGA All rights reserved.
© SEGA SAMMY HOLDINGS INC. All Rights Reserved.
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Pachislot and Pachinko Machines Business
Long-Term Objectives
FY2024/3
Improvement of
Creation of Hits business efficiency
Sources: National Police Agency and Yano research Institute Ltd. (*The data for 2020 are in-house estimations)
*Annual Turnover rate = Annual Pachislot and Pachinko machine unit sales / Number of installed Pachislot and Pachinko machine units in the market
1 2 3
Increase the
Review of Strengthening
profitability
product lineup media functions
of a Hit
Optimization of lineup
(Centering on series Create machines from user’s
perspective Expansion of user
machines) communication by utilizing
Deepening user analysis by digital medias
Strict selection and narrowing
down new IPs attribute
1 2 3
Improvement of
Promotion of
development Cost reduction
e-commerce
efficiency
Commonization of images Promote introduction of
between Pachislot and common components
Pachinko between Pachislot and Transition of Pachinko
Pachinko machine sales to e-commerce,
Rationalization of video following Pachislot machines
making Suppression of surplus
inventory by optimizing
Expansion of derivative titles the first lot
such as specification changed
(Medium to Long-Term Target:
title
Make surplus inventory Zero)
-10.6
Amusement
facilities
Amusement
Machines
Consumer FY2018/3 FY2019/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3
Results Results Results Results Forecast Forecast Results
Previous Mid-term plan period (Road to 2020) Structural Reform New Mid-term Plan
*Figures of the fiscal year ended March 31, 2019 are reference values before segment change
© SEGA SAMMY HOLDINGS INC. All Rights Reserved.
-64-
Financial Strategy, Others
To Maximize the Corporate Value (~FY2026/3)
Shift to the management focusing on capital efficiency
Investment focus on
Growth of profit Consumer business
Expansion of
equity spread Ordinary Income:
Over 50.0 Billion yen
ROE: Over 10%
Improvement of ROIC management
Maximization asset efficiency Management of business portfolio
of the Expansion
of TSR Improvement of per
Corporate business company ROIC
Value
Optimization of Reducing of WACC through optimal
capital structure
Capital cost Active use of debt according to the
Shareholder D/E ratio: risk
Reduction of long-term risk through
return around 0.5~0.6
enhancement of ESG
(Net D/E ratio: around 0.2~0.3)
Total return ratio:
50% or more
<Procurement> <Allocation>
Fundraising
D/E ratio: 0.5~0.6 times in 5 years later
(or Net D/E ratio: 0.2~0.3 times)
through interest-
bearing debt Consumer Area
Investment in IR business
growth Investment in growth of existing business
New business
Operating C/F
Stable increase in dividends (Referring
to past results, based on DOE3% or
Shareholder return
Total return ratio:
more)
Surplus capital 50% or more Share buybacks (Implement flexibly
considering business performance,
Working capital investment opportunities, and stock
Current level of level in 5 years price, based on total return ratio)
working capital later
Entertainment Contents
Investment in
Consumer area
growth
Materiality to be
addressed
Products and
Environment Addiction People Governance
Services
Develop innovative
In the process of Enhance Job products
Points of studying the Mitigate and Satisfaction Improve the quality Reinforce Corporate
initiatives financial impact prevent addiction Increase Diversity of products and Governance
of environmental Eliminate Inequality services
burden Supply safe and
trusted products
Items to respond
(Examples) Response to SCOPE3 and TCFD, diversity promotion, compliance with revised GC code, etc.
~FY24/3 ~FY30/3
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Regulations SEGASAMMY.
SEGA SAMMY HOLDINGS INC. (“the Company”) is registered with the Nevada Commission as a publicly https://www.segasammy.co.jp/english/pr/corp/group/list.html
traded corporation and has been found suitable to directly or indirectly own the stock of SEGA SAMMY (Sega Sammy Group Website list)
CREATION INC., and Sega Sammy Creation USA, Inc., both of which are subsidiaries that have been
licensed as manufacturers and distributors of gaming devices in Nevada. Pursuant to Nevada law, the *Company / product names in this document are trademarks or
Company’s shareholders are subject to the rules and regulations of the Nevada Gaming Authorities. A registered trademarks of the respective companies.
detailed explanation of Nevada gaming statutes and regulations can be found on the Company’s corporate
website:
https://www.segasammy.co.jp/english/ir/stock/regulation/
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