Realizing Returns through Earnings Growth and Cash Dividends

The SEGA SAMMY Group's basic policy on returning earnings is to heighten corporate value by implementing growth strategies that increase earnings and by directly returning profi t to shareholders through stable cash dividends. In addition, as explained above, the Group aims to continuously enhance corporate value by fostering existing businesses while making far-sighted investments to sustain development over a longer timeframe. Furthermore, if the Group is able to enter the casino business, it is likely to require large-scale investment. To enable dynamic decisions on investments for promising, carefully selected projects, we plan to build up retained earnings by generating net income each fi scal year, targeting a net cash position of ¥150 billion to ¥200 billion.

Regarding returning profi ts to shareholders, we aim to pay out approximately 20% to 30% of post-tax income as cash dividends. Each fi scal year, we determine returns to shareholders fl exibly in light of maintaining a balance with investment in growth fi elds. (For fi scal 2014 cash dividends and the outlook for current fi scal year, please see "Shareholder Value")