Business Strategies｜Management Policy｜Investor Relations

Business Summary
Business Plan
Business Plan by Segment / External Environment: 1.Entertainment Contents Business
2. Pachislot & Pachinko Business
3. Gaming Business

Business Summary

The SEGA SAMMY Group is mainly comprised by the Entertainment Contents Business, which offers a diversity of fun through consumer and arcade game content, toys and animation; the Pachislot & Pachinko Machines Business, which conducts everything from development to sales of pachislot & pachinko machines; and the Gaming Business, which operates integrated resorts and develops casino gaming products and software.

To details of Business Areas

Business Plan

			FY2026/3 Results	FY2027/3 Forecast
Net sales	Overall		487.5	510.0
		Entertainment Contents	326.6	357.0
		Pachislot and Pachinko Machines	132.0	115.5
		Gaming	25.3	34.5
		Other / Elimination	3.6	3.0
Adjusted EBITDA	Overall		16.6	64.0
		Entertainment Contents	13.3	52.5
		Pachislot and Pachinko Machines	33.7	27.5
		Gaming	-18.4	-4.0
		Other / Elimination	-12.0	-12.0

(Billion yen)

Sales Composition

To details of Business Plan

Business Plan by Segment / External Environment

1. Entertainment Contents Business

Business Plan

	FY2026/3 Results	FY2027/3 Forecast
Net Sales	326.6	357.0
Operating Income	32.4	42.5
Ordinary Income	34.4	43.5
Adjusted EBITDA	13.3	52.5

(Billion yen)

FY2026/3 Results

Sales increased while profit decreased compared to FY2025/3

●Full Game and some new F2P titles, and Rovio’s performance were soft (CS)

●Existing F2P titles, subscription services, DLC* (all CS), and Animation area performed steadily

●Licensing revenue grew steadily throughout the fiscal year (CS)

*DLC = Downloadable Content

FY2027/3 Forecast

Plan for an increase in both sales and profits compared to FY2026/3

●Launch four new Full Game titles based on mainstay IPs (CS)

●F2P titles launched in FY2026/3 are expected to contribute throughout the full year (CS)

●Expect growth in licensing revenue (CS)

●Strengthen sales of prizes merchandise (AM)

External Environment

Consumer area

Global video games market environment

The global video game content market is becoming more diversified in terms of content delivery methods, and the new market is emerging due to
the growth of emerging economies. Expectations for the growth of the video game market also continue to increase, as the environment is now
conducive to the provision of content and services for a longer period of time, regardless of device or platform, to the entire world.

Diversification of the way to interact with games and expansion of eco system

The acceleration of Digital Transformation (DX) and the emergence of new technologies such as 5G and cloud services have greatly influenced and shaped the entertainment industry. Traditionally, games and other kinds of entertainment-related content were distributed separately by device and by region in a form of package. Nowadays however, it is easier than ever for our products and services to reach users all over the world via digital distribution channels.

The way people interact with games is also becoming far more diverse than in the past. Game players are naturally at the center of the ecosystem. The broader ecosystem is also expanding, though, as games draw together many people on a global scale, to encompass not only game players but also, for example, streamers who broadcast their games and their viewers. These factors are also expected to fuel growth in the game population going forward.

Example of an ecosystem based on video game

Amusement Machines / Facilities Market

In the amusement machine market, despite the impact of soaring raw material prices due to the weak yen, the prize category continues to perform well, and the market as a whole remains firm

2. Pachislot & Pachinko Machines Business

Business Plan

	FY2026/3 Results	FY2027/3 Forecast
Net Sales	132.0	115.5
Operating Income	32.1	24.0
Ordinary Income	33.3	25.0
Adjusted EBITDA	33.7	27.5

(Billion yen)

FY2026/3 Results

Increase in sales and profits compared to FY2025/3

●Strong sales of mainstay titles and new IP titles, particularly in pachislot

●Main titles sold:

Smart Pachislot Tokyo Revengers
Smart Pachislot Hokuto No Ken Chapter of Resurrection 2
Smart Pachislot Kabaneri of the Iron Fortress: The Battle of Unato, etc.

FY2027/3 Forecast

Decrease in sales and profits compared to FY2026/3

●Reactionary decline due to fewer mainstay titles

●Increase in costs mainly due to rising parts costs

●Pachislot: Decline in selling price associated with the full-scale rollout of reel unit sales

●Pachinko: Unit sales decline due to an anticipated slowdown in the market sales

In addition to mainstay titles, plan to launch several IP titles adapted for the first time on pachislot & pachinko machines

External Environment

Along with the decline of the player population since 1995, there has been a long-term downtrend in the overall number of pachinko halls, as well as in the number of machines installed and in annual machine turnover. On the other hand, the number of machines installed per pachinko hall is on the rise due to increasing sizes of pachinko halls and other factors. Smart Pachislot is currently driving the pachislot market, while the pachinko market may also see a recovery as Smart Pachinko and machines with Lucky Trigger become more widespread.