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- Magnagement Message [Fiscal 2013 Plans]
For fiscal 2013, ending March 31, 2013, we will target higher revenues and earnings, aiming to realize year-on-year increases of 18.8% in net sales, to ¥470.0 billion, and 13.0% in operating income, to ¥66.0 billion. (These are the targets we announced on May 11, 2012.)
Expecting the Pachislot and Pachinko Machine Business segment to drive this increase in net sales, we plan to grow the segment's revenues 35.1% year on year. By marketing a series of major titles, we aim to boost pachislot and pachinko machine unit sales signifi cantly.
The higher operating income will primarily stem from the Consumer Business segment realizing a ¥15.6 billion improvement in earnings as a result of lower cost of sales and operating expenses thanks to the restructuring implemented in fiscal 2012.
Even though the Pachislot and Pachinko Machine Business segment will probably grow revenues, we anticipate a decline in the segment's earnings as its profit margins worsen, mainly due to setting profit margins at conservative levels compared with those of fiscal 2012 and a temporary deterioration in the pachinko machine product mix. Furthermore, as we advance initiatives to increase market shares in the medium term, cost of sales and operating expenses, such as R&D expenses, are likely to rise.
Also, we project operating income of the Amusement Machine Sales Business segment will decline from fiscal 2012's ¥7.4 billion to ¥1.3 billion. This will primarily reflect the absence of new major titles during fiscal 2013 because, after carefully examining marketability, we have suspended development of certain large-scale machines that were under development and intended for marketing in the current fiscal year.
In addition, we anticipate that higher operating income and the absence of the extraordinary loss incurred in fiscal 2012 when restructuring SEGA will enable an 83.5% year-on-year rise in net income, to ¥40.0 billion.
Committed to reaching these targets, we will accumulate earnings unstintingly.
| 2012 (Results) | 2013 (Plan) | YOY change | |
|---|---|---|---|
| Net sales | 395.5 | 470.0 | +18.8% |
| Pachislot and Pachinko Machine Business | 212.1 | 286.5 | +35.1% |
| Amusement Machine Sales Business | 49.9 | 40.5 | -18.8% |
| Amusement Center Operations | 44.6 | 44.5 | -0.2% |
| Consumer Business | 85.6 | 85.0 | -0.7% |
| Other | 3.0 | 13.5 | +350.0% |
| Operating income (loss) | 58.3 | 66.0 | +13.2% |
| Pachislot and Pachinko Machine Business | 71.0 | 70.0 | -1.4% |
| Amusement Machine Sales Business | 7.4 | 1.3 | -82.4% |
| Amusement Center Operations | 0.3 | 1.0 | +233.3% |
| Consumer Business | (15.1) | 0.5 |  |
| Other | 0.2 | (0.5) | |
| Corporate and eliminations | (5.4) | (6.3) | |
| Operating margin | 14.8% | 14.0% | -0.8pt. |
| Net income | 21.8 | 40.0 | +83.5% |
