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Laying Foundations for a Growth Driver NAOYA TSURUMI Chief Operating Officer and Senior Executive Vice President SEGA SAMMY HOLDINGS INC.

Build the Group's Future

Integrated resorts that include casinos could become a new industry in Japan. However, the birth of new industries is never easy. Given that casinos' legalization and other hurdles must fi rst be cleared, we are fully aware of the risk associated with taking advance measures. Nevertheless, after thorough consideration we will take the risk and the challenge because we believe that fusing our entertainment with casinos can create a major driver of growth going forward. Becoming the fi rst leader of the Group's integrated resort business has given me an important mission and responsibility: building a business portfolio for the future.

Accumulate as Much Expertise as Possible

The SEGA SAMMY Group has management resources that are adaptable to the integrated resort business, such as expertise in the operation of amusement centers. However, accumulated expertise in casino operations will likely be the decisive factor when selecting casino operators in Japan. Accordingly, we have assigned personnel from our integrated resort business division in Japan to positions in marketing, control, and operational management at the Paradise Casino Incheon, which is operated by PARADISE SEGASAMMY Co., Ltd., a joint venture in South Korea with the Paradise Group. Furthermore, we plan to send more personnel to the integrated resort including casinos that we are developing in Incheon, South Korea, when operations start up in 2017. Sharing the expertise we acquire throughout the Group will enable us to make a bold fi rst step into Japan's casino market.

Explore Tie-ups with Diverse Companies

Aiming to create comprehensive entertainment spaces that offer hospitality to customers, hold events, and incorporate shopping malls, entertainment facilities, and hotels, the SEGA SAMMY Group intends to accumulate skills that will allow it to design whole integrated resorts. Other preparations will include developing and manufacturing casino machines through SEGA SAMMY CREATION INC. Casino machines exhibited in May at the Global Gaming Expo Asia (G2E Asia) 2014 in Macau to showcase our technology and creativity in the entertainment area attracted a great deal of interest.

Integrated resorts in Japan will compete with casinos in Singapore, Macau, and Las Vegas. To differentiate our integrated resorts, they must surpass such competitors. With this in mind, we are highly likely to form partnerships with major companies across a range of areas. Currently, we are putting out feelers to many different companies.

Generally seen as a target, 2020 is only the potential starting point for casino operations in Japan. As seen in both Macau and Singapore, once operations begin growth will be rapid. Therefore, we are pinning high hopes on the period beyond 2020.



HAJIME SATOMI President and Chief Executive Officer SEGA SAMMY HOLDINGS INC.

NAOYA TSURUMI Chief Operating Officer and Senior Executive Vice President SEGA SAMMY HOLDINGS INC.

HIDEKI OKAMURA President, Representative Director, and Chief Operating Officer, SEGA CORPORATION

SHIGERU AOKI President, Representative Director, and Chief Operating Officer, Sammy Corporation


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