Toward Sustained Shareholder Value Improvement

Changing the SEGA SAMMY Group without Fail

The Group's basic approach to shareholder value is to enhance corporate value by paying stable cash dividends and by increasing earnings through growth strategies.

Adopting a long-term perspective, we are proceeding with prior investment aimed at achieving sustained development. In particular, if we succeed in participating in the integrated resort business in Japan, we will need to undertake 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 in each fiscal year, targeting a net cash position of ¥150 billion to ¥200 billion.

Regarding returning profits, we aim to pay out approximately 20% to 30% of post-tax income as cash dividends. Each fiscal year, we determine returns to shareholders flexibly in light of maintaining a balance with investment in growth fields.

Fiscal 2015 Cash Dividends and Fiscal 2016 Outlook

Enhancement of corporate value through growth strategies will depend upon the accomplishment of the restructuring and initiatives outlined above. Therefore, we intend to move forward with unwavering resolve to meet the expectations of shareholders and other investors. As we do so, we would like to ask for their continued support.

August 2015