Recovering to Operating Income of 100 Billion

FY Ending March 2014 Interim Results Presentation November 5th, 2013 SEGA SAMMY HOLDINGS INC. [Disclaimer] The contents of this material and comments made during the questions and answers etc of this briefing session are the judgment and projections of the Company’s management based on currently available information. These contents involve risk and uncertainty and the actual results may differ materially from these contents/comments. © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Contents 【FY Ending March 2014 Interim Results / Full Year Forecasts】 Consolidated Income Statements 3 Results Highlights 4 Major Business Measures 5 Costs and Expenses 6 Consolidated Balance Sheet 7 Segment Results / Forecast Pachislot and Pachinko Machines 8 Amusement Machine Sales 11 Amusement Center Operations 13 Consumer Business 15 Future Activities 19 Appendix 26 - 1 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved. FY Ending March 2014 Interim Results / Full Year Forecasts © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Consolidated Income Statements (Summary) (JPY Billion) FY Ended Mach 2012 FY Ended Mach 2013 FY Ending Mach 2014 Initial Forecasts Results Full Year Results Full Year Results YoY Full year YoY Through 2Q Through 2Q Results Through 2Q Results Through 2Q Change Forecasts Change (announced on May 10) Net Sales 152.6 395.5 136.5 321.4 198.0 162.2 +19% 485.0 +51% Pachislot and Pachinko Machines 74.8 212.1 54.3 142.2 109.0 71.2 +31% 270.0 +90% Amusement Machine Sales 19.3 49.9 18.7 39.1 18.0 18.0 -4% 45.5 +16% Amusement Center Operations 23.2 44.6 21.7 42.7 23.0 21.9 +1% 45.5 +7% Consumer Business 33.4 85.6 35.3 83.8 41.0 43.8 +24% 109.5 +31% Other 1.6 3.0 6.3 13.4 7.0 7.1 +13% 14.5 +8% Operating Income 15.1 58.3 7.8 19.0 17.5 12.3 +58% 73.0 +284% Pachislot and Pachinko Machines 20.6 71.0 10.4 23.5 25.2 15.1 +45% 74.0 +215% Amusement Machine Sales 1.5 7.4 0.8 1.9 -0.1 -0.0 - 2.7 +42% Amusement Center Operations 1.6 0.3 0.8 1.1 0.4 0.2 -75% 0.2 -82% Consumer Business -6.0 -15.1 -0.7 -0.7 -3.7 1.1 - 3.9 - Other 0.2 0.2 -0.1 -0.4 -0.3 -0.4 - -0.3 - Eliminations -2.9 -5.4 -3.2 -6.3 -4.0 -3.6 - -7.5 - Operating Margin 9.9% 14.7% 5.7% 5.9% 8.8% 7.6% +1.9pt 15.1% +9.2pt Ordinary Income 14.7 58.1 7.2 20.9 17.0 14.2 +97% 72.0 +244% Extraordinary Gain 1.1 3.3 0.3 10.1 3.0 3.8 - 3.3 - Extraordinary Loss 5.3 18.5 0.3 5.4 - 0.6 - 4.8 - Income before income taxes and minority interests 10.4 42.9 7.3 25.6 20.0 17.4 +138% 70.5 +175% Net Income 3.9 21.8 3.8 33.4 9.0 11.3 +197% 47.0 +41% Dividends per share (JPY) 20 40 20 40 20 20 - 40 - Earnings per share (JPY) 15.79 86.73 15.74 137.14 37.18 46.76 - 194.17 - Net Assets per share (JPY) 1,115.46 1,167.59 1,125.09 1,304.44 - 1,401.90 - - - - 3 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Results Highlights ・Year-on-year, sales and profits increased Net Sales/Profits ・Downward revision of interim forecasts on September 20, no change for full year forecasts Other ・Recorded extraordinary loss of 609 million yen due to costs resulting from response to unforeseen issues of digital game ・Year-on-year, sales and profits increased due to sales of mainstay pachislot machines Pachislot and ・Year-on-year, pachislot unit sales increased Pachinko Machines ・Year-on-year, pachinko unit sales decreased due to the sales period for mainstay titles being changed to the second half of the fiscal year ・Recorded losses due to sales decreasing year-on-year Amusement ・Results are solid compared to the initial forecast Machine Sales ・Income from revenue sharing model continues to be strong Amusement Center ・Year-on-year, profits decreased as a result of same-store sales struggling to increase Operations ・“Orbi Yokohama” opened on August 19 ・Year-on-year, sales increased and returned to profit due to expansion of earnings in the digital business ・Sales of Packaged Game, “Total War: ROME II” are solid Segment breakdown Consumer Business ・Mainstay digital title of the previous fiscal period “Phantasy Star Online 2” surpassed 3 million registered IDs ・Applications “Puyopuyo!! Quest” and “CHAIN CHRONICLE” for smartphones are robust ・Year-on-year, sales increased mainly due to strengthening the management capabilities of Phoenix Resort Others ・Preliminary expenses in resort related activities occurred, such as the establishment of SEGA SAMMY BUSAN INC. - 4 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Major Business Measures （first half of 2013）・Business Description: Development, manufacture and sales of casino equipment Address: 3-1-1 Higashi-Ikebukuro, Toshima-ku, Tokyo Sunshine 60 39F Established SEGA SAMMY ・ ■ ・Established: June 3, 2013 CREATION, INC. ・Capital: 10 million yen ・President and Representative Director: Hisao Oguchi (Director and CCO at SEGA SAMMY HOLDINGS INC.) (announced on July 19, 2013) <SEGA SAMMY HOLDINGS INC. First Unsecured Straight Bond (with inter-bond pari passu clause)> ・Total value of bond: 5 billion yen ■Issuance of Straight ・Interest rate: 0.732% Corporate Bonds ・Term: 5 years ・Maturity date: July 25, 2018 <SEGA SAMMY HOLDINGS INC. Second Unsecured Straight Bond (with inter-bond pari passu clause)> ・Total value of bond: 5 billion yen ・Interest rate: 0.493% ・Term: 3 years ・Maturity date: July 25, 2016 (announced on September 18, 2013) ・Outline of business transfer: The operations conducted by Index Corporation including the Digital Game Business (design and development of console games and social games); Contents & Solutions Business (delivery of contents, ■Business Transfer of Index development of systems, consigned development related to amusement machines, internet advertising, etc.); Corporation Amusement Business (development and sales of commercial amusement machines) and related businesses. ・Assets and liabilities to be transferred: Tangible and intangible fixed assets as well as intellectual property assets related to the above operations to be transferred. *In principle, liabilities including interest-bearing debts will not be taken over ・Value of acquisition：14.1 billion yen ・Date for the transfer of operations: November 1, 2013 - 5 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Costs and Expenses Results/Forecasts (JPY Billion) FY Ended Mach 2012 FY Ended Mach 2013 FY Ending Mach 2014 Initial Forecasts Results Full Year Results Full Year Results YoY Full year YoY Through 2Q Through 2Q Results Through 2Q Results Through 2Q Change Forecasts Change (announced on May 10) R&D Expense / 19.7 53.3 19.1 45.2 24.1 23.0 +20% 54.9 +21% Content Production Expense Cap-ex 9.4 36.1 21.6 32.8 17.1 22.6 +5% 32.5 -1% Depreciation 6.4 16.1 7.4 18.1 10.7* 9.2 +24% 23.0* +27% Advertising 7.6 17.2 5.6 13.1 10.0 7.0 +25% 19.5 +49% ※ We’ve made a correction to the forecasts of the depreciation cost due to error in counting. - 6 - © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Consolidated Balance Sheet (Summary) (JPY billion) 【 Assets 】【 Liabilities and Net Assets 】 End of Previous Fiscal End of Previous Fiscal End of 2Q End of 2Q Account Year Change Account Year Change Cash and Deposits 176.5 110.4 -66.1 Accounts Payable 50.1 28.6 -21.5 Accounts Receivable 63.8 40.2 -23.6 Corporate Bond 5.8 1.7 -4.1 Securities 4.2 66.3 +62.1 Short Term Borrowings 12.8 12.8 +0.0 Inventories 42.5 44.6 +2.1 Other 34.9 29.0 -5.9 Other 31.5 21.9 -9.6 Total Current Liabilities 103.6 72.1 -31.5 Total Current Assets 318.5 283.4 -35.1 Corporate Bond 29.5 38.6 +9.1 Tangible Fixed Assets 87.0 99.0 +12.0 Long Term Debt 44.9 40.2 -4.7 Intangible Fixed Assets 22.9 21.6 -1.3 Other 30.4 33.6 +3.2 Investment Securities 72.7 100.6 +27.9 Total Noncurrent Liabilities 104.8 112.4 +7.6 Other 27.3 24.9 -2.4 Total Liabilities 208.4 184.5 -23.9 Shareholders Equity 307.6 315.5 +7.9 Total accumulated other comprehensive income 8.0 25.1 +17.1 Warrants 1.1 1.0 -0.1 Minority Interest 3.1 3.3 +0.2 Total Noncurrent Assets 209.9 246.1 +36.2 Total Net Assets 320.0 345.0 +25.0 Total Assets 528.5 529.6 +1.1 Total Liabilities and Net Assets 528.5 529.6 +1.1 (JPY billion) End of Previous Summary of Results Through 2Q End of 2Q Difference Fiscal Year ■Current Assets: Down 35.1 billion yen primarily due to the decrease of cash and deposits, accounts receivable while conversely, Total assets 528.5 529.6 +1.1 securities increased (short-term fund management) ■Noncurrent Assets: Up 36.2 billion yen primarily due to the increase in Net assets 320.0 345.0 +25.0 investment securities (increase of shares market price) and the purchase of land in Busan Equity ratio 59.7% 64.3% +4.6pt ・Total Assets：529.6 billion yen increased by 1.1 billion yen ■Equity ratio： 64.3% (+4.6pt) Current ratio 307.4% 393.1% +85.7pt ■Current ratio： 393.1% (+85.7pt) - 7 - © SEGA SAMMY HOLDINGS INC.

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