Sega Sammy : Fiscal Year Ending March 2021 1Q Results Appendix

Fiscal Year Ending March 2021 1Q Results Appendix

August 5, 2020

[Disclaimer]

Market forecasts, operating results forecast, and other information contained in this materials are based on judgements and projections of the Company's managements based on currently available information. Therefore, please understand that the contents herein involve risks and uncertainties and that actual results could differ materially depending on various factors.

© SEGA SAMMY HOLDINGS INC. All Rights Reserved.

Results Highlights

Consolidated

Business

Pachislot and

Pachinko

Machines

Business

Entertainment

Contents

Business

Resort Business

1Q Results

• Significant decline in sales YoY and recording of losses.

• Pachislot and Pachinko Machines Business, Amusement Machine Sales & Amusement Center Operations and Resort Business are heavily influenced by COVID-19.

• Sales decreased YoY and recorded losses as no new title launched.

• Delayed the release of new titles considering the impact of COVID-19 on Pachinko halls.
• Sales were mainly attributable to Sammy Networks and etc.

• Sales decreased but profit increased YoY due to strong performance in Consumer area.

• Consumer area performed strong centered on repeat sales overseas.
• Recorded losses in Amusement Machine Sales and Amusement Center Operation due to the temporary closure and a decline in utilization of facilities.
• Common fixed expenses and others incurred during temporary closure period are recorded as extraordinary losses.

• Sales decreased and losses expanded YoY due to significant decline in the number of users.

• Closed facilities temporary in respond to request.

Forecast

• Expected to record losses for the full year assuming the impact of COVID-19 will remain.
• Undertake structural reforms.
• Dividend plan is not yet determined.
• Sales decrease YoY and recording losses due to the decrease of unit sales.

• Unit sales decrease YoY for both pachislot and pachinko.
• Launch titles to coincide with the demand for replacement at the end of 2020.

• Despite the contribution of Consumer area, profit decreased significantly YoY due to spread losses in Amusement Machine Sales and Amusement Center Operation area.

• The profit of Consumer area is expected to be increased significantly
• Proceed the optimization of business and shift of R&D resources to growing area in Amusement Machine Sales and Amusement Center Operation.
• Non-operatingincome from the movie "Sonic the Hedgehog" is expected in the second half of the year.

• Sales decrease and losses expand YoY

• The demand for travel decreases
• Start the optimization of the facility operations.
• Expecting that the restriction of foreign visitors will not lift in South Korea within this year.

- 2 -

Current impacts of the spread of COVID-19

- 3 -

Changes in segment classifications and others

The following changes have been made from the fiscal year ending March 2021.

• " Operating income " to " Ordinary income "
• • The Company has changed its method of measuring segment income from "operating income" to "ordinary income," which is the profit recurring from business as a whole, including equity in net profits and losses of affiliates, etc.
• Gaming machine business into Pachislot and Pachinko Machines Business segment
• • The gaming machine business, which develops and sells gaming machines for casinos, was shifted from Amusement Machine Sales area of Entertainment Contents Business segment to Pachislot and Pachinko Machines Business segment.
• "Digital + Packaged Games" area to "Consumer" area
• • Digital Games area and Packaged Games area have been integrated into 1

sub-segment and changed the name to Consumer area.

- 4 -

Consolidated Income Statements (Summary)

(JPY Billion)		2020/3		2021/3
	1Q	Through	Through	Through	1Q	Full Year
	2Q	3Q	4Q	Forecast
Sales	72.7	165.5	280.8	366.5	48.3	277.0
Pachislot and Pachinko Machines	17.1	44.2	86.3	108.5	2.7	56.0
Entertainment Contents	53.0	115.7	186.1	247.6	45.1	214.0
Resort	2.4	5.5	8.2	10.4	0.4	6.5
Other / Elimination	0.0	0.0	0.0	0.0	0.1	0.5
Operating Income	3.4	14.6	28.0	27.6	-3.8	-15.0
Pachislot and Pachinko Machines	1.0	7.3	19.9	23.2	-8.4	-9.5
Entertainment Contents	5.2	13.2	17.0	16.5	8.1	9.0
Resort	-0.8	-1.5	-2.3	-3.6	-1.7	-6.5
Other / Elimination	-2.0	-4.4	-6.6	-8.5	-1.8	-8.0
Non-operating income	0.8	1.3	1.8	3.2	0.6	4.0
Non-operating expenses	1.9	3.3	4.0	5.5	0.8	9.0
Ordinary Income	2.3	12.6	25.8	25.2	-4.0	-20.0
Pachislot and Pachinko Machines	0.9	7.2	19.4	22.7	-8.5	-10.0
Entertainment Contents	4.9	12.8	16.0	16.2	8.2	11.0
Resort	-1.6	-3.1	-3.3	-5.3	-2.1	-12.5
Other / Elimination	-1.9	-4.3	-6.3	-8.4	-1.6	-8.5
Ordinary Income Margin	3.2%	7.6%	9.2%	6.9%	-	-
Extraordinary income	0.0	0.0	3.0	3.1	0.2	0.2
Extraordinary losses	0.1	0.1	0.5	1.2	2.5	3.2
Income before income taxes	2.2	12.5	28.3	27.1	-6.4	-23.0
Profit attributable to owners of parent	1.7	9.8	22.9	13.7	-3.3	-17.0
Dividends per share (JPY)	-	20.00	20.00	40.00	-	-
Earnings per share (JPY)	7.32	42.05	97.92	58.65	-14.04	-72.31
Net Assets per share (JPY)	1,259.70	1,276.36	1,318.14	1,251.02	1,219.49	-

*The results of FY2020/3 reflect the change of segment classification retrospectively.

- 5 -

Costs and Expenses

(JPY Billion)		2020/3		2021/3
	1Q	Through	Through	Through	1Q	Full Year
	2Q	3Q	4Q	Forecast
R&D Expense / Content	17.1	33.5	56.4	76.5	14.7	64.2
Production Expense
4.3	8.9	14.3	18.1	5.4	17.3
Pachislot and Pachinko Machines
Entertainment Contents	12.8	24.7	42.3	58.6	9.2	46.8
Resort	0.0	0.0	0.1	0.1	0.0	0.0
Other / Elimination	0.0	-0.1	-0.3	-0.3	0.1	0.1
Cap-ex	5.1	10.5	16.1	22.8	3.6	15.2
Pachislot and Pachinko Machines	0.9	1.8	2.5	3.5	1.1	3.6
Entertainment Contents	4.0	8.3	12.9	18.2	2.2	10.7
Resort	0.0	0.1	0.1	0.2	0.0	0.3
Other / Elimination	0.2	0.3	0.6	0.9	0.3	0.6
Depreciation	3.6	7.3	10.9	14.8	3.6	13.4
Pachislot and Pachinko Machines	1.0	1.9	2.8	3.6	0.8	2.9
Entertainment Contents	2.1	4.2	6.4	8.9	2.2	8.5
Resort	0.2	0.5	0.8	1.1	0.2	0.9
Other / Elimination	0.3	0.7	0.9	1.2	0.4	1.1
Advertising	3.6	8.5	12.9	17.4	2.0	16.9
Pachislot and Pachinko Machines	0.2	0.8	1.2	1.5	0.1	2.0
Entertainment Contents	3.0	6.4	10.2	14.1	1.7	13.4
Resort	0.1	0.2	0.3	0.4	0.0	0.2
Other / Elimination	0.3	1.1	1.2	1.4	0.2	1.3

*The results of FY2020/3 reflect the change of segment classification retrospectively.

- 6 -

Consolidated Balance Sheet (Summary)

(JPY billion)	【Assets】		【Liabilities and Net Assets】
Account	As of end of	As of end of	Change	Account	As of end of	As of end of	Change
March 2020	June 2020	March 2020	June 2020
Cash and Deposits	159.0	157.0	-2.0	Accounts Payable	17.8	15.7	-2.1
Accounts Receivable	40.4	24.5	-15.9	Corporate Bonds	10.0	-	-10.0
Short term investment securities	5.3	0.2	-5.1	Short Term Loans Payable	13.3	43.3	+30.0
Inventories	47.0	56.0	+9.0	Other	45.0	29.7	-15.3
Other	17.2	27.5	+10.3	Total Current Liabilities	86.1	88.7	+2.6
Total Current Assets	268.9	265.2	-3.7	Corporate Bonds	10.0	10.0	-
Tangible Fixed Assets	86.6	85.2	-1.4	Long Term Loans Payable	42.0	42.0	-
Intangible Fixed Assets	17.9	18.5	+0.6	Other	23.2	23.8	+0.6
Investment Securities	55.0	56.3	+1.3	Total Noncurrent Liabilities	75.2	75.8	+0.6
Other	29.7	28.9	-0.8	Total Liabilities	161.4	164.6	+3.2
				Shareholders Equity	301.2	293.2	-8.0
				Total accumulated other	-7.1	-6.5	+0.6
				comprehensive income
				Warrants	0.8	0.7	-0.1
				Non-controlling intesrests	1.9	2.0	+0.1
Total Noncurrent Assets	189.2	188.9	-0.3	Total Net Assets	296.8	289.5	-7.3
Total Assets	458.2	454.1	-4.1	Total Liabilities and Net Assets	458.2	454.1	-4.1

- 7 -

Segment Results: Pachislot and Pachinko Machines

(JPY Billion)		2020/3		2021/3
	1Q	Through	Through	Through	1Q	Forecast
	2Q	3Q	4Q
Sales	17.1	44.2	86.3	108.5	2.7	56.0
Pachislot	7.0	11.1	46.2	54.1	0.2	19.7
Pachinko	5.4	23.8	26.8	37.4	0.0	26.7
Other / Elimination	4.7	9.3	13.3	17.0	2.5	9.6
Operating Income	1.0	7.3	19.9	23.2	-8.4	-9.5
Non-operating income	0.1	0.2	0.4	0.7	0.1	0.3
Non-operating expenses	0.1	0.3	0.8	1.1	0.2	0.8
Ordinary Income	0.9	7.2	19.4	22.7	-8.5	-10.0
Ordinary Income Margin	5.3%	16.3%	22.5%	20.9%	-	-
Pachislot
Number of Titles	0 title	1 title	3 titles	5 titles	0 title	8 titles
Unit Sales (units)	17,930	28,360	105,860	123,336	485	52,000
Pachinko
Number of Titles	2 titles	4 titles	5 titles	7 titles	0 title	5 titles
Unit Sales (units)	16,212	66,140	75,094	104,581	177	71,000
Board + Frame	8,020	15,850	18,878	33,056	54	44,000
Board	8,192	50,290	56,216	71,525	123	27,000

*From FY2021/3, the gaming machine business, which develops and sells gaming machines for casino, was shifted from Amusement Machine Sales area of

Entertainment Contents Business segment to Pachislot and Pachinko Machines Business segment.
*The results of FY2020/3 reflect the change of segment classification retrospectively.	- 8 -

Segment Results: Pachislot and Pachinko Machines

■ Major Titles launch in 2021/3

～2021/3 1Q

Pachislot	Pachislot Shin
	Hokuto Muso

Pachinko	EVOLUTION ZERO
	P Psalms of Planets
	Eureka Seven HI-

"Pachislot Shin Hokuto Muso"	"P Psalms of Planets Eureka Seven
	HI-EVOLUTION ZERO"
©Buronson & Tetsuo Hara/NSP 1983, Approved No.KOM-620	©2017 BONES/Project EUREKA MOVIE
© 2010-2013 Koei Tecmo Games Co., Ltd.	©BANDAI NAMCO Entertainment Inc.
©Sammy	©Sammy

New title

Specification changed title

2021/3 2Q~

Pachislot

Kaidoumokushiroku

kaiji numa

P ROAD TO EDEN	P Shin Hokuto Muso
Chapter 3

"Pachislot Kaidoumokushiroku	"P Shin Hokuto Muso Chapter 3"
kaiji numa"
nobuyuki／Koudansha・VAP・MADHOUSE・NTV・D.N.Dream Partners	©Buronson & Tetsuo Hara/NSP 1983, Approved No.KOO-411
©2010-2013 Koei Tecmo Games Co., Ltd.
nobuyuki／Koudansha・VAP・NTV

©Sammy	- 9 -

Segment Results: Entertainment Contents Business

(JPY Billion)		2020/3			2021/3
1Q	Through	Through	Through	1Q	Full Year
2Q	3Q	4Q	Forecast

Sales	53.0	115.7	186.1	247.6	45.1	214.0
Consumer	26.7	55.8	90.2	125.5	32.4	125.0
Amusement Machine Sales	10.1	24.6	41.1	51.0	5.4	35.0
Amusement Center Operations	10.4	22.0	32.2	41.9	3.4	28.0
Animation / Toy	5.0	11.7	20.3	26.2	3.4	24.0
Other / Elimination	0.6	1.6	2.2	2.9	0.4	2.0

Operating Income	5.2	13.2	17.0	16.5	8.1	9.0
Consumer	5.3	9.7	12.1	14.7	12.5	22.5
Amusement Machine Sales	-0.4	0.7	1.1	-0.6	-1.6	-3.5
Amusement Center Operations	0.7	1.9	1.7	1.4	-2.0	-7.5
Animation / Toy	0.3	1.7	2.9	2.7	-0.0	0.5
Other / Elimination	-0.7	-0.9	-0.9	-1.7	-0.8	-3.0
Non-operating income	0.3	0.3	0.3	1.3	0.2	3.0
Non-operating expenses	0.6	0.8	1.3	1.6	0.1	1.0

Ordinary Income	4.9	12.8	16.0	16.2	8.2	11.0
Ordinary Income Margin	9.2%	11.1%	8.6%	6.5%	18.2%	5.1%
No. of domestic amusement centers	191	192	195	192	195	194
YoY sales rate comparison of existing	109.0%	103.6%	100.7%	97.7%	27.4%	62.7%
amusement centers

*As the breakdown of sub-segment, Digital Games area and Packaged Games area have been integrated into 1 sub-segment and changed the name to Consumer area from FY2021/3. *From FY2021/3, the gaming machine business, which develops and sells gaming machines for casino, was shifted from Amusement Machine Sales area of Entertainment Contents Business segment to Pachislot and Pachinko Machines Business segment.

*The results of FY2020/3 reflect the change of segment classification retrospectively.

- 10 -

Segment Results: Entertainment Contents Business

Consumer Area (KPI)

＜Sales by Business Model＞

(JPY Billion)		2020/3		2021/3
			1Q	Through	Through	Through	1Q	Full Year
			2Q	3Q	4Q	Forecast
Sales	26.7	55.8	90.2	125.5	32.4	125.0
		Domestic	12.9	57.0	45.9	64.2	12.4	58.0
		Overseas	13.9	29.0	45.4	63.9	19.6	69.2
		Overseas sales ratio	52.1%	52.0%	50.3%	50.9%	60.5%	55.4%
		Other / Elimination	-0.1	-0.2	-1.2	-2.6	0.2	-2.3
	Full Game	11.5	19.4	37.8	57.0	14.4	51.3
		Japan	0.7	1.7	9.0	15.3	1.8	5.6
		New titles	0.2	0.6	7.5	12.5	0.0	1.2
		Repeat titles	0.5	1.1	1.5	2.7	1.7	4.4
		Asia	0.8	1.3	2.3	5.3	1.3	4.7
		New titles	0.4	0.5	1.1	3.5	0.7	2.0
		Repeat titles	0.3	0.8	1.1	1.7	0.5	2.7
		North America / Europe	9.9	16.3	26.4	36.3	11.1	40.9
		New titles	6.6	10.1	16.9	22.9	1.2	17.3
		Repeat titles	3.3	6.1	9.4	13.3	9.9	23.6
		Download sales ratio	65.9%	58.6%	48.4%	46.0%	66.5%	62.0%
	F2P	9.1	18.1	27.6	38.1	10.4	47.1
		Japan	8.4	16.9	25.8	35.3	8.4	40.6
		Asia	0.0	0.0	0.1	0.3	0.0	0.7
		North America / Europe	0.6	1.1	1.6	2.4	1.9	5.8
	Other	6.1	18.4	25.8	33.0	7.2	28.7

*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.

*Others = 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 non-game software products, etc.

- 11 -

Segment Results: Entertainment Contents Business

							2020/3			2021/3
					1Q	Through	Through	Through	1Q	Full Year
					2Q	3Q	4Q	Forecast
	Full Game: Number of Titles		9 titles		13 titles	26 titles	36 titles	4 titles		30 titles
		Japan		2 titles		3 titles	9 titles	11 titles	-		3 titles
		Asia		3 titles		3 titles	6 titles	12 titles	1 title		12 titles
		North America / Europe		4 titles		7 titles	11 titles	13 titles	3 titles		15 titles
	Full Game: Sales in Units		6,490		12,100	20,570	28,570	12,980		34,100
		(Thousands)
		Japan		270		610	1,760	2,790	470		1,370
		New titles		60		170	1,180	1,910	10		270
		Repeat titles		210		440	580	880	460		1,090
		Asia		240		420	680	1,360	400		1,470
		New titles		130		130	300	780	150		450
		Repeat titles		110		280	380	580	240		1,020
		North America / Europe		5,970		11,060	18,110	24,410	12,100		31,250
		New titles		2,110		3,240	5,970	8,790	620		6,300
		Repeat titles		3,860		7,820	12,140	15,620	11,480		24,940
	Total New titles		2,300		3,550	7,460	11,480	790		7,040
	Total Repeat titles		4,180		8,550	13,110	17,090	12,190		27,050
				*Numbers of titles and sales units of Full Game in FY2020/3 results was revised due to the change of subsegment classifications
2021/3 1Q Major Titles
		1Q titles		Release		Platform			Launched region
		Persona 4 The Golden (PC version)	2020/6			PC		Japan / Asia / North America / Europe
		Repeat titles
						Platform			Launched region
		Total War series					PC		Japan / Asia / North America / Europe
		Alien series					Multi-platform		Japan / Asia / North America / Europe
		Football Manager series					PC		Japan / Asia / North America / Europe

- 12 -

Segment Results: Entertainment Contents Business

2021/3 1Q Results of Titles

- 13 -

Segment Results: Entertainment Contents Business

Consumer Area (KPI)

＜Sales breakdown of F2P＞

(JPY Billion)		2020/3		2021/3
	1Q	Through	Through	Through	1Q	Full Year
	2Q	3Q	4Q	Forecast
Sales	9.1	18.1	27.6	38.1	10.4	47.1
Titles before FY2018/3	6.5	12.7	18.2	24.5	5.1	19.2
Titles released in FY2019/3	2.4	4.7	7.0	9.1	2.2	8.3
Titles released in FY2020/3	0.0	0.6	2.3	4.4	1.4	5.9
Titles release in FY2021/3	-	-	-	-	1.5	13.5
＜Numbers of titles for F2P＞
		2020/3		2021/3
	1Q	Through	Through	Through	1Q	Full Year
	2Q	3Q	4Q	Forecast
No. of new titles launched	1	4	4	4	2	5
No. of titles in operation	20	21	20	19	20	23
No. of titles ended services	-4	-6	-7	-8	-1	-1

＜Top 3 titles in sales for F2P＞

Title name

1. PHANTASY STAR ONLINE 2 North American Version
2. PHANTASY STAR ONLINE 2
3. SEGA Pocket Club Manager

Release

2020/4

2012/7

2018/4

*Top three titles in the period of Apr-Jun 2020

- 14 -

Segment Results: Entertainment Contents Business

Amusement Center Area (KPI)

Temporary

Closure

period

*July figure is preliminary value

CY2020

- 15 -

Segment Results: Entertainment Contents Business

■Major Titles in 1Q and titles to be launched in and after 2Q, fiscal year ending Mar 2021

〜2021/3 1Q

2Q~

Existing titles

F2P

Consumer

New titles

）

Kemono Friends 3 (2019/9～)

PHANTASY STAR ONLINE 2 （North American version）

Sonic at the Olympic Games -Tokyo 2020™

Project SEKAI COLORFUL STAGE feat. Hatsune Miku

Re:ZERO -Starting Life in Another World- Lost in Memories

- 16 -

Segment Results: Entertainment Contents Business

■Major Titles in 1Q and titles to be launched in and after 2Q, fiscal year ending Mar 2021

1Q

2Q~

Consumer

Full Game

Persona 4 The Golden	A Total War Saga: TROY	HUMANKIND™
	Shin Megami Tensei Ⅲ	Shin Megami Tensei Ⅴ
	NOCTURNE HD REMASTER

Amusement Machine Sales

Animation/Toys

＜Existing titles＞ KanColle Arcade / StarHorse Series / Fate/Grand Order Arcade /WCCF FOOTISTA 2019

maimai Series / O・N・G・E・K・I / CHUNITHM Series

TRANSFORMERS SHADOWS	fiz	Initial D THE ARCADE
RISING

Sonic The Hedgehog

(in Japan)

Disney&Disney/Pixer Characters	Disney Characters
Magical Smart Note	D.I.Y. TOWN Series

- 17 -

Segment Results: Resort Business

(JPY Billion)					2020/3			2021/3
			1Q	Through	Through	Through	1Q		Forecast
			2Q		3Q	4Q
Sales				2.4	5.5	8.2	10.4		0.4	6.5
Operating Income				-0.8	-1.5	-2.3	-3.6		-1.7	-6.5
		Non-operating income		0.1	0.2	0.2	0.2		0.0	0.0
	Non-operating expenses		0.9	1.7	1.2	1.9		0.3	6.0
Ordinary Income				-1.6	-3.1	-3.3	-5.3		-2.1	-12.5
	Ordinary Income Margin		-	-	-	-		-	-
PHOENIX RESORT	＞
＜
Sales				2.2	5.0	7.7	9.9		0.3	6.0
Operating Income				-0.1	-0.1	-0.0	-0.2		-1.0	-2.4
No. of facility users (Thousands)		189	454	658	839		44	484
3 accommodation facilities		75	194	283	359		12	200
2 golf courses				25	46	70	92		9	70
Other facilities				89	214	305	388		23	214

- 18 -

Segment Results: Resort Business (PARADISE CITY)

Transition of Drop amount* at Paradise City

*Drop amount: Purchased amount of chips by customers at the table

(KRW Millions)

Apr,2017

Opened

Paradise City

• PARADISE SEGASAMMY Co., Ltd. is an equity method affiliate
• Figures for PARADISE SEGASAMMY Co., Ltd. are recorded with three months delay
• Local accounting standards

（KRW Billion）	FY2020 1Q	FY2021 1Q
Results	Results
Sales	90.6	89.7
Casino	74.7	75.8
Hotel	13.2	10.8
Other	2.6	3.0
Cost of sales	88.7	78.4
Casino	44.5	40.8
Hotel	27.3	25.9
Other	16.7	11.6
Gross profit	1.9	11.2
SG&A	9.0	8.8
Operating profit	-7.1	2.4
EBITDA	8.2	17.5
Net profit	-14.3	-5.3
Number of casino visitors	82	66
(Thousands)
	Source: Paradise IR
SEGASAMMY	-0.8	-0.3
Equity method acquisition
amount (Billion yen)

- 19 -

Segment Results: Resort Business

- 20 -

Segment Results: Resort Business (Phoenix Seagaia Resort)

■Exterior	■Golf Course	■Convention Center
	Facility name	Phoenix Seagaia Resort
	Operating	Phoenix Resort Co., Ltd.
	company
	Facility address	3083 Aza Hamayama, O-Aza Shioji, Miyazaki City, Miyazaki Prefecture
		■Miyazaki Airport 20-minute by car
	Access	■JR Miyazaki train station Approx. 25-minute by public bus(chargeable)	15-minute by car
		■Express way Approx. 25-minute drive from Miyazaki Interchange
	Number of	758 (as of June 30 2020 (including, concurrent officers, full-time employees, seconded employees, contract employees and
	employees	part-time employees)
	Site area	2,511,144m2
		Hotel	950 rooms (Sheraton Grande Ocean Resort, Luxze Hitotsuba and Cottage HIMUKA)
	Facility	Golf Courses	45 holes (Phoenix Country Club, Tom Watson Golf Course), Phoenix Golf Academy
	composition	Convention Center	Approx. 5,500 m2 (capacity for approx. 5,000 people)
		Other Entertainment Facilities	Spa, hot springs, fitness club, horse riding club, tennis court and wedding halls
		etc.

©Phoenix Resort

- 21 -

Segment Results: Resort Business (PARADISE CITY)

■Exterior■Casino facility■Lobby lounge (Hotel)

Facility name	PARADISE CITY
Operating company
PARADISE SEGASAMMY Co.,Ltd.
Facility address
186, Yeongjonghaeannam-ro321-gil,Jung-gu, Incheon, Republic of Korea
Access to PARADISE CITY	■ 3-minute drive by car or shuttle bus (free of charge) 5-minute ride on linear monorail (free of charge)
	and 15-minute walk from Incheon International Airport
	■Also a 5-minute drive from Incheon Interchange on the expressway
Number of employees	2,144(as of June 30, 2020) (including, concurrent officers,
full-time employees, seconded employees, contract employees and part-time employees)
Site area	330,000㎡
Investment amount
Approx. 1,567.5 billion KRW (amount invested by SEGA SAMMY: 331.9 billion KRW; shareholding ratio: 45%)
	•	Casino (table games: 158 units, electronic table games: 4 units 62 seats, slot machines: 291 units)
	•	Hotel (711 rooms; additional facilities: restaurant, banquet hall, indoor and outdoor pools, etc.)
Facility composition	•	Convention ・PLAZA (Commercial facility / cultural center, shopping mall)
Facilities in temporary suspension (from Jul 1, 2020)
	•	SPA ・CLUB	・Boutique Hotel (58 rooms)
	•	WONDER BOX (for families)

- 22 -

Order for Enforcement of the Act on Development of Specified Complex Tourist Facilities Areas

Casino facility		Upper limit for square measures of gaming areas within casino facility is 3% of
	the total floor area of IR facilities
Facility No.1:	International	Capacity of the largest international convention and conference room must be
more than 1,000 people. Total capacity of whole international convention and
	convention and
	conference facilities must be more than twice of the capacity of the largest
	conference facilities
	international convention and conference room.
		Square measures of exhibition facilities must meet the standards according to
		the below tier based on capacity of the largest international convention and
Facility No.2:	Exhibition facilities	conference room.
(Capacity of the largest international convention and conference room)
		・More than 1,000 and less than 3,000 people	⇔ Total floor area of exhibition facilities: more than 120K ㎡
		・More than 3,000 and less than 6,000 people	⇔ Total floor area of exhibition facilities: more than 60K ㎡
		・More than 6,000 people	⇔ Total floor area of exhibition facilities: more than 20K ㎡
Facility No.3:	Facilities enhancing	Theater, entertainment hall, concert hall, stadium, cinema, museum, gallery,
	the attractiveness of	restaurant and other facilities that contribute enhancing the attractiveness of
	tourism	Japanese tourism
Facility No.4:	Facilities with	Facilities satisfying below 4 conditions
	customer transfer	1) showcase function, 2) concierge function, 3) multilingual support function, 4)
	functions	sufficient facility scale
Facility No.5:	Accommodation	Total square measures for floor area of all guest rooms must be more than
100K ㎡ and facilities must have suite rooms with appropriate square measures
	facilities
	and certain ratio of suite rooms.
Facility No. 6	Other facilities	Facility contributing to the promotion of visit and stay of domestic and inbound
tourists
		Can applies only to places where foreign travelers can stay until they complete
Other: Restriction of casino ads	immigration procedures at airports operating international flights and passenger
		terminals of ports where foreign cruise ships are in service
Other: Transaction subject to report	Cash transactions exceeding 1 million yen between casino business operators
and customers

- 23 -

Pachislot and Pachinko Machines revision of rules

• APPENDIX：Overview of revision to the rules＞

Date of

enforcement

Pachislot and

pachinko machine manufacturers

Pachinko

halls

February 1, 2018

1. Matters related to regulations of pay-out balls/medals
2. Addition of standards for pachislot and pachinko machines with which pay-out balls/medals information can be easily checked
3. Introduction of "multi stage payout- ratio" to pachinko machines
4. Addition of responsibilities of administrators

• Curbing of gambling element is intended in the matters related to regulations of pay-out balls/medals.
• "Multi stage payout- ratio" is newly approved for pachinko machines.

*(2) Able to play without touching balls and medals (record and pay-out electronically)

- 24 -

Pachislot and Pachinko Machines revision of rules

＜APPENDIX：Comparisons of pay-out ratio (image)＞ 【Pachislot】

Regulation before change

Pay-out ratio

【Pachinko】

Regulation before change

New regulation

G＝Games ()＝Current regulation

New regulation

• Machines will be transformed to become more playable with the setting of the lower limit of pay-out probability.
• The introduction of "multi stage payout- ratio" will allow broader ways to play.

Pay-out ratio

		Balls and medals payed out
	Pay-out ratio=
Play time	Balls and medals used

- 25 -

Pachislot and Pachinko Machines revision of rules

＜APPENDIX：Overview of revisions to regulations ＞ 【Pachislot】

		Test		Multi stage	Number of pay-out
Content					medals when hitting a
400G	1,600G	6,000G	17,500G	payout-ratio
	jackpot (Upper limit)
Regulation		－		Over 55% and less
before	Less than 300%	Less than 150%	Up to 6 stages	480
than 120%
change
New	Over 33% and less	Over 40% and less	Over 50% and less	Over 60% and less	Up to 6 stages	300
regulation	than 220%	than 150%	than 126%	than 115%

G=Games

【Pachinko】

		Test		Multi stage	Number of pay-out
Content				balls when hitting a
1 hour	4 hours	10 hours	payout-ratio
	jackpot (Upper limit)
Regulation	Less than 300%	－	Over 50% and less	－
before	2,400
than 200%
change
New	Over 33% and less	Over 40% and less	Over 50% and less	Up to 6 stages	1,500
regulation	than 220%	than 150%	than 133%

- 26 -

Transition of revision of rules (February 2018) and easing of voluntary regulation, etc.

Pachislot

Revision of rules

• Changes in pay-out regulation

New Regulation Machine (1) (Regulation for 6.0 model machine)

Gameplay in shorter time improved

• Removal of upper limit of the no. of obtained medals per game
• Revival of assist time machines

New Regulation Machine (2) (Regulation for 6.1 model machine)

Mainly improved gameplay related to visual effects

• Addition of visual effects using the lever and buttons
• Addition of visual effects using mini-reel machine (video reel machine)
• Gameplay of assist time(*1) improved

2018/2

								2020/5
								Extension of deadline
								for removal of previous	2022/2
2018/4
			2019/12 Review of voluntary regulation
			reg. machines
			Complete transition
										to new regulation
				2019/5
	2018/11			2020/1 Changes in Interpretation
				machines

Pachinko

• Changes in pay-out regulation
• Introducing "Setting" to pachinko machines

New Regulation

Machine (1)

Development of machines with high jackpot continuous rate

• Elimination of the 65% upper limit in continuous rate of probability change

New Regulation

Machine (2)

Gameplay Widens

• Elimination of the lower limit on the number of win balls
• Elimination of the lower limit in game numbers can be played at normal status

New Regulation

Machine (3)

Primarily new gameplay added

• Ability to enter into time reduction (*2) after consumed the predetermined number of games
• Elimination of 100 times upper limit of count in time reduction
• Enable to enter into time reduction with specific symbols
• Can use count of limiters (*3) up to 2 types

*1: AT=assist time

*2: Time reduction = Function to play games efficiently without greatly reducing the number of balls.

*3: Limiter = one of the functions in probability change, refers to the function of the probability change ends when the predetermined number of jackpots times consumed.

- 27 -

Schedule for transferring to new regulation machines

Overview of the extension of the deadline of previous regulation machines

May 20, 2020

• The transitional period of previous regulation machines with some exception extended for 1 year by the amendment of enforcement regulations of the Law on Control and Improvement of Amusement and Entertainment Businesses.
• 21st Century Pachinko and Pachislot Industry Association which consists of 14 groups from the industry resolved the phased removal

Number of previous regulation machines that are due for removal	Thousand of units
*Schedule after the announcement of extension of deadline for removal
(Estimates)
	2020	2021
	Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar	Apr May Jun Jul Aug Sep Oct Nov Dec

Pachislot			2021/3	435		2022/3	612
						Olympic	Approx.	Transfer to
No. of units to		Approx. 14	Approx. 62 Approx. 118	Approx. 241	Approx. 337
be removed		new reg.
	period	275
							completes
Pachinko			2021/3	441		2022/3	923
						Olympic	Approx.	Transfer to
No. of units to		Approx. 9	Approx. 29	Approx. 26	Approx. 377	Approx. 599
be removed		period	324	new reg.
							completes

*Numbers above are in-house estimation as of end of July, 2020

- 28 -

Schedule for transferring to new regulation machines

- 29 -

Schedule for transferring to new regulation machines

- 30 -

Pachinko and Pachislot Machine Markets

Source: White Paper on Leisure Industry 2019, Japan Productivity Center

- 31 -

Pachinko and Pachislot Machine Markets

Sources : National Police Agency

Sources: National Police Agency and Yano research Institute Ltd. (*The data for 2019 are our forecasts)

- 32 -

Pachinko and Pachislot Machine Markets

Sources: National Police Agency and Yano research Institute Ltd. (*The data for 2019 are our forecasts)

- 33 -

Pachinko and Pachislot Machine Markets

Source: Security Communications Association

- 34 -

Pachislot / Pachinko Machine Sales Share

Share of Annual Pachislot Machine Sales

		2013			2014			2015			2016			2017			2018
Rank	Manufacturer	Units sold	Share	Manufacturer	Units sold	Share	Manufacturer	Units sold	Share	Manufacturer	Units sold	Share	Manufacturer	Units sold	Share	Manufacturer	Units sold	Share
1	Sammy	301,575	21.7%	Sammy	207,828	16.8%	UNIVERSAL	165,000	17.0%	Sammy	215,736	24.3%	KITA	107,000	17.7%	D company	80,000	17.7%
DENSHI
2	UNIVERSAL	215,000	15.5%	UNIVERSAL	205,000	16.6%	Sammy	142,337	14.7%	UNIVERSAL	203,000	22.9%	DAITO	100,000	16.5%	K company	68,000	15.0%
3	HEIWA/	120,000	8.6%	DAITO	128,000	10.4%	HEIWA/	113,997	11.8%	KITA	90,500	10.2%	Sammy	85,041	14.1%	Sammy	67,140	14.8%
OLYMPIA	OLYMPIA	DENSHI
4	SANKYO	116,291	8.4%	YAMASA	108,000	8.8%	KITA	100,000	10.3%	HEIWA/	80,953	9.1%	UNIVERSAL	43,000	7.1%	H company	47,244	10.4%
DENSHI	OLYMPIA
5	DAITO	102,000	7.3%	HEIWA/	92,763	7.5%	SANKYO	80,125	8.3%	Enterrise	57,000	6.4%	YAMASA	38,000	6.3%	U company	37,365	8.3%
OLYMPIA

Share of Annual Pachinko Machine Sales

Source: Yano Research Institute Ltd.

*Estimated by Yano Research Institute Ltd. with fiscal years from July of each year through June the following year as criteria

- 35 -

Packaged and Digital Games Market Data

Home Video Game and Online Game Markets Scale

Home Video Games: Overall Shipment Scale	Japan's Market for Game Content with Network Connectivity
(JPY billion)	(JPY billion)

Source: CESA Games White Paper		Source: f-ism

- 36 -

Amusement Market Data

Amusement Machine and Amusement Center Operations Markets Scale

Number of Amusement Facilities / Amusement Machine unit installed

Amusement Machine / Facilities sales (JPY billion)

Source: JAIA, National Police Agency

- 37 -

Past Operating Results①

From FY Ended March 2015~

*The data in this page can be downloaded from following URL. (https://www.segasammy.co.jp/english/ir/library/pdf/settlement/2020/e_202103_1q_transition.xls)

(JPY Billion)	FY Ended	FY Ended	FY Ended	FY Ended	FY Ended		FY Ended		FY Ended
		March 2015	March 2016	March 2017	March 2018	March 2019		March 2020		March 2021
		Full Year	Full Year	Results	Full Year	Results	Results	Results	Results	Results	Results	Results	Results	Results
		Results	Results	Through 2Q	Results	Through 2Q	Through 4Q	Through 2Q	Through 4Q	Through 1Q	Through 2Q	Through 3Q	Through 4Q	Through 1Q
	Net Sales	366.8	347.9	169.5	366.9	194.7	323.6	171.0	331.6	72.7	165.5	280.8	366.5	48.3
	Pachislot and Pachinko Machines	152.1	132.7[141.0]*	64.9	148.2	88.3	105.6	58.6	101.4	17.1	44.1[44.2]*	86.2[86.3]*	108.3[108.5]*	2.7
	Entertainment Contents	199.6	198.8[190.5]*	97.8	205.7	101.5	208.0	107.2	219.6	53.0	115.8[115.7]*	186.2[186.1]*	247.7[247.6]*	45.1
	Resort	14.9	16.3	6.7	13.0	4.7	9.9	5.1	10.5	2.4	5.5	8.2	10.4	0.4
	Other / Elimination	-	-	-	-	-	-	-	-	0.0	0.0	0.0	0.0	0.1
	Operating Income	17.4	17.6	15.3	29.5	26.8	17.7	10.2	13.0	3.4	14.6	28.0	27.6	-3.8
	Pachislot and Pachinko Machines	25.7	21.5[20.9]*	10.6	26.3	21.4	11.9	9.6	13.4	1.3[1.0]*	7.8[7.3]*	20.7[19.9]*	24.9[23.2]*	-8.4
	Entertainment Contents	0.0	3.6[4.2]*	9.1	11.1	10.1	14.8	6.1	9.8	4.9[5.2]*	12.7[13.2]*	16.1[17.0]*	14.8[16.5]*	8.1
	Resort	-2.3	-1.8	-1.3	-2.2	-1.2	-2.5	-1.1	-2.4	-0.8	-1.5	-2.3	-3.6	-1.7
	Other / Elimination	-6.0	-5.7	-3.1	-5.7	-3.4	-6.5	-4.4	-7.8	-2.0	-4.4	-6.6	-8.5	-1.8
	Operating Margin	4.7%	5.1%	9.0%	8.0%	13.8%	5.5%	6.0%	3.9%	4.7%	8.8%	10.0%	7.5%	-
	Non-operating income	2.8	3.1	2.1	3.8	1.8	3.2	1.3	2.1	0.8	1.3	1.8	3.2	0.6
	Pachislot and Pachinko Machines	-	-	-	-	-	-	-	-	0.1	0.2	0.4	0.7	0.1
	Entertainment Contents	-	-	-	-	-	-	-	-	0.3	0.3	0.3	1.3	0.2
	Resort	-	-	-	-	-	-	-	-	0.1	0.2	0.2	0.2	0.0
	Non-operating expenses	3.4	4.3	2.0	4.8	3.3	6.4	2.3	7.7	1.9	3.3	4.0	5.5	0.8
	Pachislot and Pachinko Machines	-	-	-	-	-	-	-	-	0.1	0.3	0.8	1.1	0.2
	Entertainment Contents	-	-	-	-	-	-	-	-	0.6	0.8	1.3	1.6	0.1
	Resort	-	-	-	-	-	-	-	-	0.9	1.7	1.2	1.9	0.3
	Ordinary Income	16.8	16.4	15.4	28.5	25.2	14.5	9.1	7.4	2.3	12.6	25.8	25.2	-4.0
	Pachislot and Pachinko Machines	-	-	-	-	-	-	-	-	0.9	7.2	19.4	22.7	-8.5
	Entertainment Contents	-	-	-	-	-	-	-	-	4.9	12.8	16.0	16.2	8.2
	Resort	-	-	-	-	-	-	-	-	-1.6	-3.1	-3.3	-5.3	-2.1
	Other / Elimination	-	-	-	-	-	-	-	-	-1.9	-4.3	-6.3	-8.4	-1.6
	Ordinary Income Margin	4.6%	4.7%	9.1%	7.8%	12.9%	4.5%	5.3%	2.2%	3.2%	7.6%	9.2%	6.9%	-
Profit attributable to owners of parent	-11.3	5.3	24.2	27.6	17.7	8.9	6.7	2.6	1.7	9.8	22.9	13.7	-3.3
	Net Income Margin	-	1.5%	14.3%	7.5%	9.1%	2.8%	3.9%	0.8%	2.3%	5.9%	8.2%	3.7%	-

*Net sales of new segment is shown in total amount bases.

*Basis for recording of sales was changed from shipping basis to delivery basis from FY2016/3.

*In line with the change of accounting policy, the figures for new segment reflect the change from FY2015/3 retrospectively.

*Some business has shifted from Entertainment Contents business to Pachinko and Pachislot business and numbers shown in [] are retroactively adjusted figures which reflect such change. *Number of packaged titles include the number of titles in Asian territory except Japan from FY2017/3.

*Numbers of titles and sales units of Full Game in FY2020/3 results was revised due to the change of subsegment classifications in Entertainment Contents business

- 38 -

Past Operating Results②

From FY Ended March 2015~

*The data in this page can be downloaded from following URL. (https://www.segasammy.co.jp/english/ir/library/pdf/settlement/2020/e_202103_1q_transition.xls)

(JPY Billion)	FY Ended	FY Ended	FY Ended	FY Ended	FY Ended		FY Ended		FY Ended
	March 2015	March 2016	March 2017	March 2018	March 2019		March 2020		March 2021
	Full Year	Full Year	Results	Full Year	Results	Results	Results	Results	Results	Results	Results	Results	Results
	Results	Results	Through 2Q	Results	Through 2Q	Through 4Q	Through 2Q	Through 4Q	Through 1Q	Through 2Q	Through 3Q	Through 4Q	Through 1Q
ROA	-2.2%	1.0%	-	5.2%	-	1.8%	-	0.6%	-	-	-	3.0%	-
ROE	-3.4%	1.8%	-	9.2%	-	2.9%	-	0.9%	-	-	-	4.6%	-
Equity Ratio	60.0%	55.3%	-	59.0%	-	65.0%	-	65.1%	-	-	-	64.2%	-
Cash flows to interest bearing debt ratio	301.9%	798.8%	-	178.6%	-	334.7%	-	520.9%	-	-	-	207.2%	-
Interest coverage ratio	45.2 times	19.1 times	-	61.4times	-	36.5 times	-	27.3 times	-	-	-	83.6 times	-
R&D expense / content production expense	67.6	58.0	31.7	67.1	30.7	62.0	30.8	66.6	17.1	33.5	56.4	76.5	14.7
Cap-ex	28.7	28.0	13.8	27.0	10.3	24.1	17.8	34.4	5.1	10.5	16.1	22.8	3.6
Depreciation	17.6	16.6	7.6	16.3	8.2	16.2	7.4	14.5	3.6	7.3	10.9	14.8	3.6
Advertising	19.1	17.9	7.6	14.8	7.8	15.4	8.4	16.0	3.6	8.5	12.9	17.4	2.0
# of pachislot titles	6 titles	7 titles	3 titles	10 titles	8 titles	9 titles	1 title	6 titles	0 title	1 title	3 titles	5 titles	0 title
Unit sales	207,830 units	142,337 units	81,895 units	215,736 units	75,380 units	85,041 units	12,853 units	67,140 units	17,930 units	28,360 units	105,860 units	123,336 units	485 units
# of pachinko titles	10 titles	8 titles	3 titles	9 titles	4 titles	5 titles	3 titles	7 titles	2 title	4 titles	5 titles	7 titles	0 title
Unit sales	241,425 units	199,014 units	75,542 units	138,321 units	119,312 units	140,013 units	117,891 units	159,848 units	16,212 units	66,140 units	75,094 units	104,581 units	177 units
YoY sales comparison of existing	100.1%	103.1%	110.8%	108.5%	101.5%	101.9%	104.5%	104.0%	109.0%	103.6%	100.7%	97.7%	27.4%
amusement centers
No. of domestic amusement centers	198 facilities	194 facilities	189 facilities	191 facilities	189 facilities	189 facilities	189 facilities	190 facilities	191 facilities	192 facilities	195 facilities	192 facilities	195 facilities
# of game software titles	30 titles	29 titles	21 titles	42 titles	16 titles	38 titles	18 titles	31 titles	9 titles	13 titles	26 titles	36 titles	4 titles
Sales (Thousand units)	12,280	9,220	4,650	10,280	8,650	17,330	11,180	23,440	6,490	12,100	20,570	28,570	12,980

- 39 -

Shareholder Returns

Dividend Policy Continue to pay an annual dividend of ¥40

*Dividend plan for this fiscal year is not yet determined.

Introduction of	We introduced shareholders benefit program to encourage shareholders to experience our services and hold our shares
Shareholder Benefits	over the mid to long term. From March 31, 2020, we have expanded the contents of the program and also introduced
	the option for donation to social contribution activities.

Number of owned	Shareholder benefit contents (annual)
shares	Less than 2	More than 2
	consecutive years	consecutive years (New)
More than 100 shares	i) 2,000 yen worth
Less than 1,000 shares
More than1,000 shares	i) 2,000 yen worth
Less than 3,000 shares	ii) 20,000 yen worth
More than 3,000 shares	i) 2,000 yen worth	i) 2,000 yen worth
ii) 40,000 yen worth
Less than 5,000 shares	ii) 40,000 yen worth	iii) 1 ticket (To be gifted on
		December)
	i) 2,000 yen worth	i) 2,000 yen worth
More than 5,000 shares	ii) 40,000 yen worth	ii) 40,000 yen worth
Less than 20,000 shares	iii) 2 tickets	iv) 2 tickets
	iv) 2 tickets	v) 2 tickets
	i) 2,000	yen worth
20,000 shares or more	ii) 40,000 yen worth
(New)	iv) 2 tickets
	vi) 2 tickets

1. Voucher for either UFO Catcher, redeemable at SEGA game centers in Japan or redeemable at SEGA Catcher Online
2. Facility use ticket, redeemable at Phoenix Seagaia Resort (Miyazaki Prefecture)
3. Free accommodation ticket (1 room, maximum 2 adults) usable at Sheraton Grande Ocean Resort in Phoenix Seagaia Resort
4. Free accommodation ticket (1 room, maximum 2 adults) usable at Paradise Hotel & Resort in Paradise City (Incheon, Korea)
5. Free accommodation ticket (1 room, maximum 2 adults) usable at premium category "Club Floor" of Sheraton Grande Ocean Resort in Phoenix Seagaia Resort
6. Free accommodation ticket (1 room, maximum 2 adults) usable at premium category suite room of Sheraton Grande Ocean Resort in Phoenix Seagaia Resort

*Please see the official website of SEGA SAMMY HOLDINGS
for the details about shareholder benefits program	- 40 -

Company Profile

Company Profile

(As of March 31, 2020)

Company Name	SEGA SAMMY HOLDINGS INC.
Address	Sumitomo Fudosan Osaki Garden Tower, 1-1-1
	Nishi-Shinagawa,Shinagawa-ku, Tokyo
Established	October 1, 2004
Capital	¥29.9 billion
Number of Employees	8,798 (Consolidated)
Stock Exchange	Tokyo Stock Exchange (Stock Code：6460)

Information on Outstanding Shares

(As of March 31, 2020)

Number of shares authorized for issuance	800,000,000 shares
Total number of shares issued and outstanding	266,229,476 shares
Number of Shareholders	72,584

■Principal Shareholders

Name of Shareholder	Shares	Shareholding
Held	Ratio (%)

Managements (As of June 24, 2020)

Chairman and Group CEO, Representative Director	Hajime Satomi
President and Group COO, Representative Director	Haruki Satomi
Senior Executive Vice President, Director of the Board	Naoya Tsurumi
SeniorExecutiveVicePresidentandGroupCFO,DirectoroftheBoard	Koichi Fukazawa
Senior Vice President, Director of the Board	Hideo Yoshizawa

HS Company

SEGA SAMMY HOLDINGS INC.

The Master Trust Bank of Japan, Ltd. (Trust account)

FSC Co., Ltd.

Japan Trustee Services Bank, Ltd. (Trust account)

35,308,00013.26

31,138,23811.69

16,252,1006.10

13,622,8405.11

10,185,7003.82

Director of the Board (External)	Takeshi Natsuno
Director of the Board (External)	Kohei Katsukawa
Director of the Board (External)	Melanie Brock
Standing Audit & Supervisory Board Member	Shigeru Aoki
Audit & Supervisory Board Member	Yukito Sakaue
Audit & Supervisory Board Member (External)	Mineo Enomoto
Audit & Supervisory Board Member (External)	Kazutaka Okubo
Substitute Audit & Supervisory Board Member (External)	Kazuaki Inaoka

■Distribution of Shareholders

Financial Institutions	18.06%
Securities Companies	1.64%
Other Companies	21.06%
Foreign Institutions and Individuals	27.32%
Japanese Individuals and Other	20.22%
Treasury Stock	11.70%

*Including the number of share less than 1 unit

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https://www.segasammy.co.jp/english/ir/

Please visit below websites for products and service information. https://www.segasammy.co.jp/english/pr/corp/group/list.html(SegaSammy Group Website list)

* Company / product names in this document are trademarks or registered trademarks of the respective companies.

Cautionary Statement for Investors and Shareholders with Respect to Nevada Gaming Statutes and

Regulations

SEGA SAMMY HOLDINGS INC. ("the Company") is registered with the Nevada Commission as a publicly traded corporation and has been found suitable to directly or indirectly own the stock of SEGA SAMMY 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's shareholders are subject to the rules and regulations of the Nevada Gaming Authorities. A 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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