Sega Sammy : Notice of Participation in Integrated Resort Business in Yokohama City
06/11/2021 | 05:32am EDT
June 11, 2021
(Translation)
Dear Sirs or Madams,
Name of Company:
SEGA SAMMY HOLDINGS INC.
Name of Representative:
Haruki Satomi,
President and Group CEO,
Representative Director
(Code No. 6460, Tokyo Stock Exchange 1st Section)
Further Inquiry:
Makoto Takahashi,
Senior Vice President,
Executive Officer, Managing Director of Corporate Planning Division (TEL: 03-6864-2400)
Notice of Participation in Integrated Resort Business in Yokohama City
SEGA SAMMY HOLDINGS INC. ("the Company") resolved at Board of Directors meeting held on June 11, 2021 to apply for a request for proposal ("RFP") for the scheduled business operator of the installation and operation of Specified Integrated Resort that will be conducted by Yokohama City by forming a consortium ("Consortium") in collaboration with Genting Singapore Limited ("GENS"), one of the world's leading resort facility operators, together with SOHGO SECURITY SERVICES CO.,LTD. (ALSOK), KAJIMA CORPORATION, TAKENAKA CORPORATION, and Obayashi Corporation, with the aim of participating in integrated resort business in Japan ("Domestic IR business") and submitted an RFP proposal to Yokohama City on the same day, which was accepted.
Participation in the Domestic IR business is based on the assumption that the series of business operator selection processes proceed successfully including the Consortium will be selected as the business operator in the RFP and Yokohama City is approved as the Specified Complex Tourist Facilities Area.
1. Purpose of this case
Since 2012, the Company has accumulated expertise in the development and operation of integrated resort through the consolidation of PHOENIX RESORT CO.,LTD. in Miyazaki prefecture and through PARADISE SEGASAMMY Co, Ltd., a joint venture in South Korea with the aim to participate in Domestic IR business.
In this process, we have come to the conclusion that GENS is the best partner for the success of our Domestic IR business, who has been successfully developing and operating Resorts World Sentosa in Singapore, one of the regions that operates and develops integrated resort under the strictest discipline in the world. We worked with GENS to analyze the market for Domestic IR business, formulate development plans, organize consortium, etc., and prepared for an RFP application and we have officially applied for the RFP conducted by Yokohama City.
The launch of a formal Domestic IR business is subject to the following prerequisites: the execution of agreement between shareholders for the purpose of establishing joint ventures, etc.; the formal selection of the Consortium as a business operator in the RFP; and subsequent approval of Yokohama City as the Specified Complex Tourist Facilities Area by the Ministry of Land, Infrastructure, Transport and Tourism. Through these processes, we aim to be selected as a formal operator of Domestic IR business.
1
2. Outline of this case
Details of business
Planning, development, and operation of IR facilities in Yokohama City Scheduled opening date: late 2020s (plan)
Divisions in charge of the concerned business
We assume that the Consortium will become the main entity, but the details are undecided.
Amount and content of expenditure for the commencement of concerned business
We plan to spend up to approximately 120.0 billion yen from us on a cumulative basis up to business
start date, assuming that we pass a series of processes such as the selection as a business operator and area certification. The amount of expenditures may fluctuate depending on the ratio of borrowings from financial institutions and other factors in the future. In addition, even if the maximum expenditure is made, we expect that this business will not be included in the scope of consolidation of the Company.
3.Overview of GENS
(1)
Name
Genting Singapore Limited
(2)
Location
10 Sentosa Gateway, Resorts World Sentosa, Singapore
(3)
Job Title/Name of
President COO, Tan Hee Teck
Representative
(4)
Details of business
Development and operation of integrated resort facilities
(5)
Capital stock
5,528 million SGD (Approx. 458.7 billion yen)
(6)
Date of
August 16, 1984
establishment
Capital
There is no capital relationship between the Company
relationship
and the company concerned which should be listed.
Personal
There is no personal relationship between the
Company and the concerned company which should
relationships
Relationship
be listed.
(7)
between a listed
Business
There is no business relationship between the
company and the
Company and the concerned company which should
relationship
company concerned
be listed.
Relevant
Status to
The company concerned does not qualify as a relevant
Relevant
party of the Company.
Party
(8)
Consolidated operating and financial results of the concerned company for the last three years
Fiscal year end
Fiscal year ended
Fiscal year ended
Fiscal year ended
December 31, 2018
December 31, 2019
December 31, 2020
Consolidated net assets
S$7,781 million
S$8,058 million
S$7,836 million
645,823 million yen
668,814 million yen
650,388 million yen
Consolidated total assets
S$9,767 million
S$9,250 million
S$8,788 million
810,661 million yen
767,750 million yen
729,404 million yen
Consolidated net assets
S￠ 64.6
S￠ 66.8
S￠ 64.9
per share
53.6 yen
55.4 yen
53.9 yen
Consolidated revenue
S$2,539 million
S$2,480 million
S$1,064 million
210,737 million yen
205,840 million yen
88,312 million yen
Consolidated operating
S$975 million
S$863 million
S$116 million
profit
80,925 million yen
71,629 million yen
9,628 million yen
Consolidated net profit for
S$755 million
S$689 million
S$69 million
the financial year
62,665 million yen
57,187 million yen
5,727 million yen
Consolidated basic
S￠ 6.27
S￠ 5.71
S￠ 0.57
earnings per share
5.2 yen
4.7 yen
0.5 yen
Dividends per share
S￠ 3.5
S￠ 4.0
S￠ 1.0
2.9 yen
3.3 yen
0.8 yen
*Some information are undisclosed as per the request of the other party.
*S$ = Singapore dollars
2
*S￠ = Singapore cents
*Exchange rate: 1S$ = 83 yen (As of the end of May 2021)
4. Schedule
(1)
Resolution date at Board
June 11, 2021
of Directors meeting
(2)
Selection of a business
Summer 2021 (plan)
operator
(3)
Area Certification
In or after May 2022 (plan)
(4)
Commencing date of
Late 2020s (plan)
business
5. Forecast
Expenditures aimed at participating in Domestic IR business are subject to be selected as a business operator, etc. in a series of processes. Therefore, the impact on the full-year consolidated operating results for the fiscal year ending March 31, 2022 is minimal.
Through this Consortium, we will proactively participate in IR business in Yokohama City, create new industry in Japan, and contribute to the revitalization of the domestic economy and the tourism industry. We will also aim to expand Domestic IR business in the future by developing and operating highly transparent and sustainable IR facilities that contribute to the sustainable development of society.
- End -
(Reference) Consolidated operating results forecast for this fiscal year (Announced on May 13, 2021) and consolidated operating results for the previous fiscal year
Sega Sammy Holdings Inc. published this content on 11 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 June 2021 09:31:03 UTC.
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