Sammy's new plant and distribution center in Kawagoe, Japan, will begin operating in September 2012. Establishing a production and supply system able to “instantly” handle intensive demand concentrated on short periods heralds the beginning of an all-out effort to maintain our leading share of the pachislot machine market while carving out one of the largest shares of the pachinko machine market.

We have made Phoenix Resort Co., Ltd., which operates one of Japan's largest resort complexes, Phoenix Seagaia Resort, a wholly owned subsidiary by acquiring all of its shares. Through this company, we want to acquire operational know-how in relation to managing the operations of large facilities, which we intend to leverage in the development and operation of new resort complexes in the future. We will effi ciently enhance our ability to attract customers and generate earnings by investing in light of detailed analysis of return on investment, exploiting our accumulated entertainment expertise, and intensifying collaborations among Group companies.

We have established a joint venture to develop a resort complex that includes a casino in the Incheon area of South Korea. Our partner is the Paradise Group, a tourism services business that operates casinos and manages hotels and spas primarily through Paradise Co., Ltd. At present, we are planning the development and operation of the resort complex and casino, with the Paradise Group having already acquired preferential rights as the project executor. Viewing the operation of resort complexes with casinos as new earnings opportunity, we will participate in the joint venture's management and move forward with plans.

In July 2012, SEGA divested the main capabilities of its network business to establish SEGA Networks, Ltd. The aim is to become a game changer for the market by establishing structures that enable rapid decision-making and operational implementation and pursuing organic collaborations within the Group.