(From October 1, 2021 to March 31, 2022 / Date of Issue: Jun. 1, 2022)

In the Group operating results for the fiscal year ended March 31, 2022, the Consumer area of the Entertainment Contents Business remained solid. We also saw a turnaround in profits in the Pachislot and Pachinko Machines Business and the Amusement Machine Sales area, both of which had been hit hard by the COVID-19 pandemic. As a result, net sales were 320.9 billion yen (277.7 billion yen in the previous fiscal year) and ordinary income was 33.3 billion yen (1.7 billion yen). In addition, due to the recording of gain on sales of investment securities and a decrease in tax expenses, profit attributable to owners of parent was 37.0 billion yen (1.2 billion yen) and ROE was 12.7%. These results far exceeded our targets for the first year of our medium-term plan, which called for ordinary income of 20.0 billion yen and ROE of 5%. Moreover, as a measure to return profits to shareholders, we bought back approximately 30.0 billion yen of treasury stock. (*The actual acquisition period was from November 9, 2021 to April 19, 2022, and some acquisitions were shifted into the current fiscal year.)

In the fiscal year ending March 31, 2023, we expect higher sales and profits in each business area, for several reasons. We are looking for continued growth in the Consumer area, and are also planning to launch several new titles in line with our three strategies for the global branding of existing IPs. In the Pachislot and Pachinko Machines Business, we are targeting higher unit sales by launching new titles that take advantage of relaxation of regulation. In addition, we expect smaller losses in the Resort Business in line with the easing of restrictions on movement associated with COVID-19. Consequently, we revised our ordinary income target for the second year of the medium-term plan upward to 40.0 billion yen (compared to an initial forecast of 30.0 billion yen). Last year, we set policies on shareholder return for a DOE of 3% or more or a total return ratio of 50% or more. Based on DOE of 3%, our initial forecast is for an interim dividend of 20 yen and a year-end dividend of 21 yen (for an annual dividend of 41 yen). However, we will decide the final amount of the year-end dividend by adopting the higher of the above two policies when full-year results are finalized.

Over the medium to longer term, we are looking to further accelerate global earnings expansion and the growth of the Group. To achieve this, we will undertake aggressive investments to the Consumer area, where we anticipate expansion in markets worldwide, and to the gaming area, which promises future growth.

We also announced a sustainability vision for SEGA SAMMY HOLDINGS this time. We set targets and milestones going forward for the five categories of materiality the Group should address—human resources, products and services, environment, addiction, and governance—with the goal of achieving these targets in 2030. With regard to our response to the global issue of climate change, we will seek to achieve carbon neutrality for Scope 1 and 2 greenhouse gas emissions in all of our business segments by 2050.

Under our mission “Constantly Creating, Forever Captivating, – Making Life More Colorful -”, we have created the SEGA SAMMY Sustainability Vision. We set targets and milestones going forward for the five categories of materiality the Group should address—human resources, products and services, environment, addiction, and governance—with the goal of achieving these targets in 2030. Please see “Fiscal Year Ended March 2022 Results Presentation” for the details of initiatives for sustainability.