SEGA SAMMY HOLDINGS
Integrated Report 2018
Integrating Our Strengths
INTEGRATING
OUR STRENGTHS
The mission of the SEGA SAMMY Group—which is also its reason for existence—calls on the Group to focus on continuing to create moving experiences and making life more colorful. We will realize this mission and sustain growth in corporate value by further improving and combining our strengths. These include the innovative DNA that SEGA and Sammy have passed down over successive generations, robust financial foundations, and a balanced business portfolio established through management integration.
OUTCOME
- Cultivates a sense of coherence and creates moving experiences (Surpass customers’ expectations)
- We will continue creating entertainment that surpasses customers’ expectations in a good way.
OUTCOME
- Surpass society’s expectations (Preserves and increases corporate value)
- Our mainstay businesses are focused on making life more colorful by creating “positives” that outweigh negative aspects for society while taking sincere measures to address issues.
OUTCOME
- Surpass shareholders’ expectations (Increase financial value)
- We aim to realize an operating income margin of at least 15% and ROA* of at least 5% in fiscal 2020.
* ROA = Profit attributable to owners of parent ÷ Total assets
- Management Resources that are Strengthened and Utilized Continually
-
・Intellectual Property Capital
・Human Capital
・Customers
・Social Capital
・Natural Capital
- Competitive Advantages
- ・Innovative DNA
・Financial Foundations
・Business Portfolio
- Corporate Strategies
- As well as concentrating the investment of cash from core businesses on growth businesses, we are advancing a portfolio strategy with a view to participating in the integrated resort business in Japan.
- Business Domain
- Pachislot and Pachinko Machines Business Entertainment Contents Business
Resort Business
- ESG (Environmental, social, and governance factors)
- ・Work-style reform aimed at promoting diversity
・Addiction countermeasures
・Cooperation with competitors and partners
・Lowering environmental burden and increasing profitability simultaneously
・Strengthening of monitoring and supervision of business management
OUTCOME
- Cultivates a sense of coherence and creates moving experiences (Surpass customers’ expectations)
- We will continue creating entertainment that surpasses customers’ expectations in a good way.
OUTCOME
- Surpass society’s expectations (Preserves and increases corporate value)
- Our mainstay businesses are focused on making life more colorful by creating “positives” that outweigh negative aspects for society while taking sincere measures to address issues.
OUTCOME
- Surpass shareholders’ expectations (Increase financial value)
- We aim to realize an operating income margin of at least 15% and ROA* of at least 5% in fiscal 2020.
* ROA = Profit attributable to owners of parent ÷ Total assets
- Management Resources that are Strengthened and Utilized Continually
-
・Intellectual Property Capital
・Human Capital
・Customers
・Social Capital
・Natural Capital
- Competitive Advantages
- ・Innovative DNA
・Financial Foundations
・Business Portfolio
- Corporate Strategies
- As well as concentrating the investment of cash from core businesses on growth businesses, we are advancing a portfolio strategy with a view to participating in the integrated resort business in Japan.
- Business Domain
- Pachislot and Pachinko Machines Business Entertainment Contents Business Resort Business
- ESG (Environmental, social, and governance factors)
- ・Work-style reform aimed at promoting diversity
・Addiction countermeasures
・Cooperation with competitors and partners
・Lowering environmental burden and increasing profitability simultaneously
・Strengthening of monitoring and supervision of business management

Innovative DNA
The heads of development at Sammy and SEGA discuss how the Group is continuing to evolve through the resonance and fusion of the innovative DNA of SEGA and Sammy.

Overcoming Adversity in the Pachislot and
Pachinko Machines Business


SEGA’s World-Class
Creativity

*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
1Integrating Our Strengths
- 2A Lineage of Innovative DNA
- 4Innovative DNA
- 8Financial Foundations
- 9Business Portfolio
- 10Integrating Our Strengths through Unity
12The SEGA SAMMY Group’s Model for Creating Moving Experiences
14A Message from the CEO
16A Message from the COO
22The SEGA SAMMY Group:Past and Present
- 22Reforming Tirelessly to Overcome Adverse Conditions
- 24Business Trends
- 26Operating Data
- 27Shareholder Value
- 28Financial Data
- 30IP Portfolio
- 32A Bird’s-Eye View of the SEGA SAMMY Group
- 34The Business Models of the Main Business Segments
36The SEGA SAMMY Group Going Forward
- 36The Business Environment Surrounding the SEGA SAMMY Group
- 38Group Strategy—Road to 2020
- 40Road Map to Corporate Value Enhancement
42A Message from the CFO
44Special Topics
- 44Special Topic 1:
Overcoming Adversity in the Pachislot
and Pachinko Machines Business - 48Special Topic 2:
SEGA’s World-Class Creativity
52Business Strategy
- 52Pachislot and Pachinko Machines Business
- 56Entertainment Contents Business
- 62Resort Business
65ESG
- 66Toward Sustainable Growth in Corporate Value
- 68Human Resource Strategy
- 70Work-Style Reforms (Examples of initiatives related to the seven themes)
- 72ESG Risks and Responses in the Value Chain
- 74Social Factors
- 76Environmental Factors
- 78Social Contributions
- 79Non-Financial Data
80Corporate Governance
- 80Corporate Governance
- 86Directors, Audit and Supervisory Board Members, and Executive Officers
89Financials
- 90Management’s Discussion and Analysis
- 95Company Profile / Stock Information
- 96Consolidated Balance Sheets
- 98Consolidated Statements of Income and Comprehensive Income
- 99Consolidated Statements of Changes in Net Asset
- 101Consolidated Statements of Cash Flows
- 103Notes to Consolidated Financial Statements
- 136Independent Auditor’s Report