Notice of Recording of Extraordinary Losses (Impairment Losses) and the Differences between the Operating Results Forecast and the Actual Results

Notice of Recording of Extraordinary Losses (Impairment Losses)
and the Differences between the Operating Results Forecast and the Actual Results

 SEGA SAMMY HOLDINGS INC. (the “Company”) hereby notifies that it has recognized extraordinary losses (impairment losses) for the fiscal year ending March 2026. It also notifies that the differences have arisen between the consolidated operating results forecast for the fiscal year ended March, 2026, announced on February 13, 2026, and the actual results for the same period announced today.

Description

1. Recording of extraordinary losses (impairment losses)

 As stated in the “Notice of Recording of an Extraordinary Losses (Impairment Losses) and Revision of Operating Results Forecast” disclosed on February13, 2026, regarding Stakelogic B.V. (“Stakelogic”), the acquisition of which was announced in 2024, the business environment in the Netherlands, which was its primary market, has deteriorated at a faster pace than anticipated due to stricter regulations, resulting in lower profitability than originally projected at the time of the acquisition.

 Considering these circumstances, the Company recognized an impairment loss of approximately ¥0.7 billion in the fiscal year ended March 2026, associated with the downsizing of the operations in the Netherlands. In addition, based on an assessment of future recoverability in accordance with the “Accounting Standard for Impairment Losses on Fixed Assets,” the Company also recognized impairment losses of approximately ¥18.0 billion which is the total amount of goodwill and other fixed assets. As a result of the above, impairment losses totaling approximately ¥18.7 billion were recognized.

2. Details of differences between the consolidated operating results forecast and the actual results for the fiscal year ended March, 2026 (from April 1, 2025 to March 31, 2026)

(Unit: million yen unless otherwise indicated)

◼ Reasons for the Differences

 Although sales were generally in line with the previously announced forecast, operating income exceeded the previous forecast due to lower-than-expected operating expenses in the Entertainment Contents Business and the Pachislot & Pachinko Machines Business as well as the reversal of stock-based compensation expenses and other factors. Ordinary income also exceeded the previous forecast due to factors such as recording of foreign exchange gains.

 Furthermore, while the impairment losses of approximately ¥18.7 billion related to Stakelogic, as described in “1. Recording of extraordinary losses (impairment losses)” exceeded the approximately ¥15.0 billion assumed in the previous forecast, following a careful review of the recoverability of deferred tax assets, the Company recorded a deferred tax adjustments of approximately negative ¥12.8 billion (negative indicates a gain). As a result, net loss attributable to owners of parent was smaller than the previous forecast.

 For details on the consolidated financial results for the fiscal year ended March 2026, please refer to the “Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Japanese GAAP)” released today.

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