INTEGRATED Report 2018 | Investor Relations

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

A Message from the CEO

We will realize sustained long-term growth in corporate value by tirelessly taking on challenges based on long-term viewpoints.

Hajime Satomi

Chairman and Group CEO (Representative Director)
SEGA SAMMY HOLDINGS INC.

A Message from the COO

Aiming to achieve Road to 2020 and the future vision of the Group beyond it, we will maintain a sound, far-sighted approach, even if this means taking a roundabout route.

Haruki Satomi

President and Group COO (Representative Director)
SEGA SAMMY HOLDINGS INC.

A Message from the CFO

While advancing financial strategies in light of medium-to-long-term perspectives, we will support the implementation of Road to 2020 and achieve continuous increases in corporate value.

Koichi Fukazawa

Executive Vice President and Group CFO (Director of the Board)
SEGA SAMMY HOLDINGS INC.

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