Results Through 3Q of FY 2010 / Full Year Outlook]

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Results Through 3Q of FY 2010 / Full Year Outlook] ResultsResults throughthrough 3Q3Q ofof FYFY 20102010 February 8th, 2010 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. * Numbers of plan for the year ended March 31, 2010 on this documents are based on the numbers publicized on May 13, 2009 © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Contents [Results through 3Q of FY 2010 / Full Year Outlook] Highlight 2 Consolidated Income Statements 3 Costs and Expenses 4 Consolidated Balance Sheets 5 Segment Results / Outlook Segment: Pachislot Pachinko 6 Segment: Amusement Machines 10 Segment: Amusement Facilities 12 Segment: Consumer Business 14 Listed Subsidiaries Results / Outlook Sammy Networks / TMS Entertainment 19/20 SEGA TOYS / TAIYO ELEC 21/22 Appendix 23 -1- © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Highlights ・Net sales: ¥285.3 billion, Operating income: ¥28.8 billion (¥24.1 billion), Net income: ¥16.9 billion (¥12.2billion) *Numbers shown in parentheses are reference values based on previous accounting policy (unaudited) Net Sales / Profits ・Posted extraordinary loss of ¥7.4 billion, which included impairment loss and loss on liquidation of subsidiary ・Decreased sales year-on-year, but returned to profitability ・No change in full year plan ・Increased sales and profits year-on-year ・ Pachislot Pachinko Year-on-year, pachislot unit sales decreased but pachinko unit sales increased ・Gross margin ratio increased due to such factors as a review of unit prices, increase in pachinko board sales ratio and decrease in parts procurement costs Segment Overview ・Decreased sales and profits year-on-year compared to previous fiscal year, when big titles were introduced Amusement Machines ・Strong utilization of “BORDER BREAK,” introduced through revenue sharing model ・Strong sales of CVT kits for major titles ・Decreased sales year-on-year due to reduction in number of facilities Amusement Facilities ・Profitability improved due to review of facility portfolio and reduction in operating expenses ・SEGA domestic same-store sales performed at a lower level in year-on-year terms ・Sales decreased year on year, but profitability improved Consumer ・Strong overall domestic sales of game software but overseas sales below our expectations ・Postponed a part of title to next fiscal year -2- © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Consolidated Income Statements (JPY Billion) FY 2009 FY 2010 Results FY Results YoY FY YoY through 3Q Results through 3Q Change Plan Change Net Sales 309.0 429.1 285.3 -7.7% 420.0 -2.1% Pachinko Pachislot 106.2 161.6 125.6 +18.3% 186.0 +15.1% Amusement Machines 49.9 61.9 33.1 -33.7% 43.0 -30.5% Amusement Facilities 54.4 71.3 41.4 -23.9% 52.0 -27.1% Consumer 96.0 131.3 82.9 -13.6% 136.0 +3.6% Other 2.3 2.9 2.2 -4.3% 3.0 +3.4% Operating Income -2.7 8.3 28.8 (24.1) - 27.0 (22.0) +225.3% (+165.1%) Pachinko Pachislot 5.2 14.5 26.9 +417.3% 22.0 +51.7% Amusement Machines 6.2 6.8 4.7 (3.8) -24.2% (-38.7%) 2.5 (2.0) -63.2% (-70.6%) Amusement Facilities -4.9 -7.5 -0.6 - -1.0 - Consumer -5.6 -0.9 1.4 (-2.3) - 8.5 (4.0) - Other 0.2 0.3 0.3 +50.0% 0.0 - Eliminations -3.9 -4.9 -3.9 - -5.0 - Ordinary Income -5.0 6.6 27.6 (22.9) - 26.0 (21.0) +293.9% (+218.2%) Extraordinary Gain 2.1 3.5 2.3 - -- Extraordinary Loss 5.9 30.2 7.4 - -- Net Income -10.8 -22.8 16.9 (12.2) - 15.0 (10.0) - Dividend per share (JPY) -30- - 30 - Earning per share (JPY) -43.03 -90.83 67.27 - 59.54 - Net Assets per share (JPY) 929.90 882.47 917.74 - -- * Numbers shown in parentheses are based on previous accounting policy (reference) -3- © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Costs and Expenses (JPY Billion) FY 2009 FY 2010 Results FY Results YoY FY YoY through 3Q Results through 3Q Change Plan Change R&D expense / 43.4 59.6 32.7 (37.4) -24.7% (-13.8%) 51.2 (56.2) -14.1% (-5.7%) Content Production expense Cap-ex 20.1 26.6 11.4 -43.3% 16.9 -36.5% Depreciation 18.9 26.6 12 -36.5% 18.2 -31.6% Advertising 16.7 20.7 14.3 -14.4% 22.5 +8.7% *Numbers shown in parentheses are reference values based on previous accounting policy (unaudited) Summary of Results through 3Q ■Cap-ex and depreciation expenses decreased significantly year-on-year, mainly due to decrease in amusement facilities ■R&D costs and content production expenses decreased year-on-year, mainly due to reduction in the amusement machine segment and consumer segment, as well as cost deferrals in consumer segment in accordance with postponement of introduction of some titles ■Advertising costs decreased year-on-year, mainly due to decrease in consumer business -4- © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Consolidated Balance Sheets (JPY Billion) 【 Assets 】 【 Liabilities and Net Assets 】 Account Prior Current Change Account Prior Current Change Cash and Cash Equivalents 106.4 97.9 -8.5 Accounts Payable 51.2 52.8 1.5 Accounts Receivable 80.4 85.9 5.5 Corporate Bond 3.2 18.6 15.3 Securities 26.7 56.6 29.8 Short Term Borrowings 5.4 6.1 0.7 Inventories 41.5 42.5 1.0 Other 37.1 33.8 -3.2 Other 31.4 25.7 -5.7 0.0 Total Current Liabilities 97.1 111.6 14.4 Total Current Assets 286.7 308.9 22.2 Corporate Bond 52.8 45.5 -7.3 Tangible Fixed Assets 65.1 62.2 -2.9 Long Term Dept 6.7 6.6 -0.1 Intangible Fixed Assets 13.2 13.4 0.2 Other 24.6 24.6 0.0 Investment Securities 27.7 28.5 0.8 0.0 Others 31.1 25.9 -5.1 Total Long-term Liabilities 84.2 76.8 -7.3 Total Liabilities 181.4 188.4 7.0 Shareholders Equity 246.7 256.1 9.3 Valuation/Translation Adjustments -24.4 -24.9 -0.5 Warrants 1.2 1.2 0.0 Minority Interest 18.9 18.2 -0.6 Total Fixed Assets 137.1 130.1 -7.0 Total Net Assets 242.5 250.6 8.1 Total Assets 423.9 439.1 15.2 Total Liabilities and Net Assets 423.9 439.1 15.1 Summary of Results through 3Q (JPY Billion) Prior Current Change Compared to the end of the previous consolidated accounting year, while securities Total Assets 423.9 439.1 +15.1 increased by 29.8 billion yen due to such factors as the purchase of negotiable securities of deposit, fixed assets decreased by 7.0 billion yen due to such factors as Net Assets 242.5 250.6 +8.1 a decrease in tangible fixed assets as well as a decrease in lease and guarantee deposits. As a result, total assets at the end of the third quarter consolidated Equity ratio 52.4% 52.6% +0.2pt accounting period came to 439.1 billion yen, up 15.1 billion yen from the end of the previous consolidated accounting year. Current ratio 295.0% 276.8% -18.2pt -5- © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Segment: Pachislot Pachinko (JPY Billion) FY 2009 FY 2010 Results FY Results YoY FY YoY through 3Q Results through 3Q Change Plan Change Net Sales 106.2 161.6 125.6 +18.3% 186.0 +15.1% Pachislot 29.4 33.8 25.6 -12.9% 51.4 +52.1% Pachinko 68.4 116.5 95.1 +39.0% 128.1 +10.0% Other 8.4 11.2 4.9 -41.7% 6.4 -42.9% Operating Income 5.2 14.5 26.9 +417.3% 22.0 +51.7% Operating Income Margin 4.9% 9.0% 21.4% +16.5pt 11.8% +2.9pt Unit Sales (Pachislot) 108,500 123,286 79,243 -27.0% 180,000 +46.0% Unit Sales (Pachinko) 237,288 391,831 329,850 +39.0% 450,000 +14.8% Summary of results through 3Q Full Year Outlook ■Multiple mainstay titles with innovative game features to be introduced Pachislot Pachislot ■Unit sales decreased year-on-year due to no new releases of major titles in ⇒Strong sales of Sammy branded “Pachislot TOMORROW’s Joe” 3Q (Aggregated order receipt: 37 thousand units *As of end of January) ■Continued strong sales of Sammy’s “Pachislot Psalms of Planets Eureka ⇒Sammy “Pachilsot POPEYE BRID” SeveN,” which was introduced in 2Q ⇒Rodeo “Shin Onimusya” (Aggregate order receipts: 55 thousand units *As of end of January) ⇒TAIYO ELEC “BLOOD+” Pachinko Pachinko ■Multiple new titles to be introduced ■Unit sales increased year-on-year ⇒Sammy “Pachinko CR Sakura Taisen2” ■Review of unit prices and increase in board sales ratio ⇒TAIYO ELEC “CR Hikaru Genji”, “CR Shin Honnoujinohen ~ ■Reduction in parts procurement costs centered on liquid crystal display Yumemaboroshi no Gotoku ~” ■Strong sales of multiple mainstay titles ■Reduction in parts procurement costs centered on liquid crystal display -6- © SEGA SAMMY HOLDINGS INC. All Rights Reserved. Segment: Pachislot Sales Breakdown / Pachislot * Number of titles reflects products which began sales in period FY 2009 FY 2010 Results FY Results FY through 3Q Results through 3Q Plan 5 titles 6 titles 4 titles 6 titles 52,139 units 58,184 units 74,005 units 100,000 units 4 title 4 titles 1 title 3 titles 29,056 units 30,073 units 1,563 units 60,000 units 2 titles 2 titles 1 title 3 titles 6,268 units 6,268 units 1,806 units 20,000 units “Pachislot Psalms of Planets Eureka SeveN” 3 titles 5 titles 0 title - (Sammy) © 2005 BONES / Project EUREKA・MBS 12,083 units 19,657 units 27 units - © Sammy © 2009 NBGI 2 titles 2 titles 2 titles - Unit Supply 8,954 units 9,104 units 1,842 units - 16 titles 19 titles 8 titles 12 titles Total 108,500 units 123,286 units 79,243 units 180,000 units * Unit Supply includes the supply of parts to other makers.
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