Sega Sammy : Q2 for Fiscal Year Ending March 2023, Results Presentation

Q2 for the Fiscal Year Ending March 2023

Results Presentation

2022/10/31

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 Q2 Results / Forecast

Results Highlights

(Billion yen)		FY2022/3		FY2023/3
		Through	Full Year		Through	Full Year
		Q2	Results		Q2	Forecast
Sales	134.8	320.9	150.0	375.0
Entertainment Contents	107.4	235.9	116.6	277.0
Pachislot and Pachinko Machines	23.3	75.8	27.5	86.0
Resort	3.8	8.6	5.6	11.5
Other / Elimination		0.3	0.6		0.3	0.5
Operating Income	14.6	32.0	9.5	40.0
Entertainment Contents	22.2	33.9	13.8	39.0
Pachislot and Pachinko Machines	-1.7	9.3	1.3	11.5
Resort	-1.8	-2.5	-0.4	-1.2
Other / Elimination		-4.1	-8.7		-5.2	-9.3
Non-operating income	2.6	5.9	4.9	2.0
Non-operating expenses		2.6	4.6		2.2	2.0
Ordinary Income	14.7	33.3	12.3	40.0
Entertainment Contents	22.7	36.8	17.2	40.0
Pachislot and Pachinko Machines	-1.3	10.2	2.0	12.0
Resort	-3.9	-6.7	-2.3	-3.0
Other / Elimination	-2.8	-7.0	-4.6	-9.0
Ordinary Income Margin		10.9%	10.4%		8.2%	10.7%
Extraordinary income	0.7	5.2	0.0	-
Extraordinary losses	0.3	0.6	0.2	-
Income before income taxes	15.1	37.9	12.0	40.0
Profit attributable to owners of parent		12.0	37.0		9.6	28.0
ROE		-	12.7%		-	-
Dividends per share (JPY)		20.00	40.00		20.00	41.00

FY2023/3 Q2 Results

• Progressed generally in line with expectations
• • Performed steadily as a whole (Entertainment Contents)
  • Strong sales of No. 6.5 models responding to the revision of regulation (Pachislot and Pachinko Machines)
  • Domestically in recovery trend centered on individual customers (Resort)

Forecast

• New title launches will proceed in each business
• • Full-scalesales of mainstay new titles (CS*, Pachislot and Pachinko Machines)
  • Loss margin is expected to narrow under the assumption of relaxation of behavioral restrictions (Resort)

*CS = Consumer area

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Breakdown of Income (FY2023/3 Q2 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

9.5

4.9

2.2

12.3

0.0

0.2

12.0

2.3

9.6

	(Unit: billion yen)
Breakdown of non-operating income/losses and
extraordinary income/losses
Non-operating income	4.9
Foreign exchange gains	2.9
Gain on investments in partnership	1.0
Dividends income	0.4
Non-operating expenses	2.2
Equity in losses of affiliates	1.3
Loss on investments in partnership	0.4
Extraordinary Income	0.0

Extraordinary Iosses

0.2

Taxes/Others

2.4

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Impact of Exchange Rate Fluctuations

[Impact of foreign exchange on Q2 results]

CS*

Non-operating

income

*CS = Consumer Area

• Positive impact of approx. 4.3 billion yen for sales and approx. 2.3 billion yen for operating income (vs. forecast)
• • 1 USD: Forecast 114 yen → AR133 yen (Mainly affected sales increase)
  • 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

• Recorded foreign exchange gains of 2.9 billion yen due to the exchange of assets and liabilities denominated in foreign currencies
• • Entertainment Contents: 2.1 billion yen
  • Pachislot and Pachinko: 0.5 billion yen
  • Consolidation / Elimination: 0.3 billion yen

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