Beyond Expectation - Integrated Report 2017

Our mission and reason for
existence in a nutshell

Continuing to create moving experiences ー Making life more colorful ー

We aim to surpass the expectations of customers,
shareholders, and society and grow corporate value continuously.

We believe that continuing to provide customers with satisfaction?in other words, moving experiences?that exceed their expectations is the wellspring of our competitive strength as an entertainment company. Accordingly, each employee of the Group will tackle ambitious initiatives focused on providing moving experiences.

A MESSAGE FROM THE CEO

Photo:Hajime Satomi

By achieving our long-term vision and meeting social responsibilities, we will realize long-term, sustained enhancement of corporate value.

Hajime Satomi
Chairman and CEO (Representative Director)

A MESSAGE FROM THE COO

Photo:Haruki Satomi

With continuing to create moving experiences as our mission, we will work in concert to advance strategies.

Haruki Satomi
President and COO(Representative Director)

A MESSAGE FROM THE CFO

Photo:Koichi Fukazawa

Our financial strategies will provide powerful support for Road to 2020 measures.

Koichi Fukazawa
Executive Vice President and CFO (Director of the Board)

*1 As the recognition of net sales was changed (1) from a net basis to a gross basis and (2) from a shipment basis to a delivery basis in fiscal 2016, figures for fiscal 2015 reflect these changes retrospectively.

*2 The Company has adopted “Revised Accounting Standard for Business Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, issued on September 13, 2013) and has presented “net income (loss)” as “profit (loss) attributable to owners of parent” from fiscal 2016.

*3 ROA = Profit attributable to owners of parent ÷ Total assets

THE STRATEGY

Mid-term Business Results Trends

To ensure the steady implementation of various measures set out in Road to 2020 for the period through fiscal 2020, the SEGA SAMMY Group has established a Mission Pyramid as a framework to motivate and guide all Group employees. Each business will become an innovator in its industry and continue providing moving experiences that exceed customers’ expectations. Through these efforts, the Group will reach management goals for fiscal 2020, sustain growth in corporate value.

THE OPERATIONAL SEGMENTS

MOVING EXPERIENCES: A HISTORY

1960 Incorporated

SEGA

The former SEGA CORPORATION began as a creator of amusement machines in 1960. The company subsequently expanded into the amusement center operations and home video game areas and continued to bring leading-edge products to market. Creating innovative products is in the SEGA Group’s DNA.

1975 Established

Sammy

Since its establishment in 1975, Sammy hasdriven the development of the pachinko and pachislot machine market by creating pachislot and pachinko machines with industry-leading gameplay. Aiming to open up new horizons in entertainment based on its “Always Proactive, Always Pioneering” founding principle, the company is engaged in all aspects of business activities, including development, manufacturing, and marketing.

ADVANTAGE

The SEGA SAMMY Group will leverage three major advantages: "Innovative DNA" to create moving experiences, "financial foundations" to enable continuous investment, and "Point of contact with Customers" to support continuous innovation.

  1. ADVANTAGE1Innovative
    DNA
  2. ADVANTAGE2Financial
    Foundations
  3. ADVANTAGE3Points of
    Contact with
    Customers

THE VALUE-CREATION SYSTEM

The value creation process that translates moving experiences into corporate value

Based on its mission and reason for existence, namely continuing to create moving experiences and making life more colorful, the SEGA SAMMY Group will leverage three major advantages: innovative DNA, financial foundations, and points of contact with customers to provide customers of all businesses with moving experiences.

FROM MANAGEMENT INTEGRATION TO THE PRESENT DAY

The SEGA SAMMY Group aims to pursue sustainable corporate value improvement by conducting upfront investment in the growth area such as IR (integrated resort) business and by implementing continuous reform measures against regulatory changes in the pachinko and pachislot machine market, contraction of the amusement-related markets, structural change in the game content market, and other changes in the business environment.