In fiscal 2014, ending March 31, 2014, we will tackle initiatives with a firm resolve to get back on a growth track.

Plans call for year-on-year increases of 50.9% in net sales, to ¥485.0 billion, and ¥54.0 billion in operating income, to ¥73.0 billion. This means we are targeting our highest net sales in the past five years and our fourth highest operating income since management integration. Nevertheless, we believe these targets are within reach. The keys will be reinvigorating the Pachislot and Pachinko Machine Business segment and growing earnings in the digital game content business.

For the Pachislot and Pachinko Machine Business segment, we are aiming for improvements compared with fiscal 2013 of 89.9% in net sales and ¥50.5 billion in operating income, to ¥74.0 billion. The pachislot machine business aims to sell 270,000 more units by bringing several major titles to market. We will meet this unit sales target and reclaim the No. 1 market share.

In fiscal 2013, due to the market bias toward major titles, the pachinko machine business struggled, particularly in relation to its second-tier titles. In the current fiscal year, this business aims to market major titles to regain lost ground and boost unit sales by 100,000 units.

The Amusement Machine Sales Business segment has set its sights on growing revenues and earnings by releasing multiple major titles while increasing revenues through the introduction of new revenuesharing titles. In addition, although the Amusement Center Operations segment anticipates lower earnings due to higher deprecation accompanying a change in accounting policy in the fiscal year under review, it will heighten profitability by strengthening the marketing capabilities of existing amusement centers and scrapping and building amusement centers while proactively opening amusement centers in shopping centers and new areas.

In the digital game content business, the success of the Kingdom Conquest series testifies to the fan base that free-to-play (F2P)* content with high-quality graphics and complex gameplay is establishing. This is an area that SEGA pioneered, giving it an advantage. Therefore, SEGA will go on the offensive by mobilizing its team of more than 1,000 developers and wealth of intellectual properties. Furthermore, we will advance our cross-platform strategy for Phantasy Star Online 2 and other appealing intellectual properties. At the same time, while implementing lateral title rollouts regionally, we will make an all-out effort to increase sales channels and earnings opportunities. Meanwhile, we intend to expand our player base by offering content families can play with peace of mind. Working with partners that have expertise as well as presences in Japan and overseas markets, the Group will advance operations efficiently and effectively. In fiscal 2014, with the digital game business as its main driver, the digital game content business aims to grow revenues 30.7% and move into the black for the first time in three years.

* These are games based on a business model where basic play is free, but fees are charged for additional items within the games.