Sega Sammy : Fiscal Year Ending March 2023 Q1 Results Presentation

Fiscal Year Ending March 2023 Q1

Results Presentation

2022/8/4

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 understand that the contents herein involve risks and uncertainties and that actual results could differ materially depending on

various factors.

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01	FY2023/3 Q1 Results / Forecast

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Results Highlights

(Billion yen)	2022/3	2023/3
		Q1	Full Year		Q1	Full Year
		Results		Forecast
Sales	59.4	320.9	66.1	375.0
Entertainment Contents	47.4	235.9	52.7	277.0
Pachislot and Pachinko Machines	10.3	75.8	10.5	86.0
Resort	1.5	8.6	2.6	11.5
Other / Elimination		0.2	0.6		0.3	0.5
Operating Income	3.8	32.0	2.7	40.0
Entertainment Contents	8.4	33.9	6.5	39.0
Pachislot and Pachinko Machines	-1.6	9.3	-0.9	11.5
Resort	-1.1	-2.5	-0.3	-1.2
Other / Elimination		-1.9	-8.7		-2.6	-9.3
Non-operating income	0.7	5.9	2.5	2.0
Non-operating expenses		1.1	4.6		1.0	2.0
Ordinary Income	3.4	33.3	4.2	40.0
Entertainment Contents	8.5	36.8	8.1	40.0
Pachislot and Pachinko Machines	-1.4	10.2	-0.6	12.0
Resort	-1.9	-6.7	-1.1	-3.0
Other / Elimination	-1.8	-7.0	-2.2	-9.0
Ordinary Income Margin		5.7%	10.4%		6.4%	10.7%
Extraordinary income	0.0	5.2	-	-
Extraordinary losses	0.2	0.6	0.1	-
Income before income taxes	3.2	37.9	4.1	40.0
Profit attributable to owners of parent		2.9	37.0		3.1	28.0
ROE		-	12.7%		-	-
Dividends per share (JPY)		-	40.00		-	41.00

FY2023/3 Q1 Results

• Overall results were generally in line with expectations
• • Steady performance overall, despite repeat sales slightly went below expectations (CS*)
  • Went in line with expectation (Pachislot & Pachinko)
  • Domestic was in recovery trend centered on individual customers (Resort)

Forecast

• New title launches will proceed in each business
• • Full-scalesales of mainstay new titles start from Q2 onward (CS)
  • Start the launch of models responding to the revision of regulation from July (Pachislot & Pachinko)
  • Loss margin is expected to narrow under the assumption of relaxation of behavioral restrictions (Resort)

*CS = Consumer Area	-3-

Breakdown of Income (FY2023/3 Q1 results)

Operating income

Non-operating income

Non-operating expenses

Ordinary income

Extraordinary income

Extraordinary losses

Income before income taxes

Taxes/Others

Profit attributable to owners of parent

2.7

2.5

1.0

4.2

-

0.1

4.1

1.0

3.1

	(Unit: billion yen)
Breakdown of non-operating income/losses and
extraordinary income/losses
Non-operating income	2.5
Foreign exchange gains	1.5
Dividends income	0.4
Non-operating expenses	1.0
Equity in losses of affiliates	0.6

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Impact of Exchange Rate Fluctuations

[Impact of foreign exchange on Q1 results]

• Positive impact of approx. 1.5 billion yen for sales and approx. 0.8 billion yen for operating income (vs. forecast)

	•	1	USD: Forecast 114 yen → AR128 yen (Mainly affected sales increase)
CS*	•	1	GBP: Forecast 157 yen → AR162 yen (Mainly affected cost increase)
	•	1	Euro: Forecast 130 yen → AR138 yen (Mainly affected sales increase)

*The above foreign exchange differences are included in "Others" in CS.

*Reference: Recorded with exchange rate of 1 USD = ¥105 for FY2020/3 to FY2022/3 and 1 USD = ¥114 for FY2023/3

	➢ Recorded foreign exchange gains of 1.5 billion yen due to the exchange of
Non-operating	assets and liabilities denominated in foreign currencies
income	• Entertainment Contents: 0.9 billion yen
	• Pachislot & Pachinko: 0.3 billion yen
	• Consolidation / Elimination: 0.2 billion yen
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*CS = Consumer Area