the MANAGEMENT TEAM Learn about the management team's approach A Message from the President and CEO

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  • A Message from the President and CEO [Growth roadmap for the Short, Medium, and Long Term]

We are determined to make decisive changes and get back on a robust growth track. HAJIME SATOMI President and Chief Executive Officer SEGA SAMMY HOLDINGS INC.

Growth roadmap for the Short, Medium, and Long Term

Targeting Realistic Scenarios

We expect higher revenues and lower earnings in fi scal 2015, ending March 31, 2015, which is to be a year of rebuilding earnings structures. The Pachislot and Pachinko Machine Business segment's profit margin is likely to decline temporarily as the ROM (read-only memory) capacities of LCD panels increase and movable gadgets increase. Due to prior investment, the Amusement Machine Sales Business segment is expected to record a larger loss. Furthermore, we anticipate that the nationwide consumption tax increase will result in the Amusement Center Operations segment also incurring a loss. Meanwhile, we project a 230% year-on-year rise in earnings from the Consumer Business segment. To ensure that we do not disappoint the expectation of shareholders and other investors, we will make an allout effort to realize targets while enforcing strict cost control.

Although we will continue working to return operating income to the ¥100 billion high-water mark reached directly after management integration, we will create realistic scenarios that acknowledge current conditions. In the past, the Pachislot and Pachinko Machine Business segment had titles that shipped 300,000 machines. Given current market conditions, however, we intend to base our targets on the view that even mainstay title sales are unlikely to surpass 100,000 machines. In a market where it is becoming clearer than ever that only the fi ttest will survive, we will claim leading shares of the pachislot and pachinko machine markets and generate operating income of around ¥50 billion stably in the segment. Meanwhile, SEGA will advance structural reform to improve its profi tability and secure operating income of ¥20 billion. Adding these two targets gives a short-to-medium-term target of ¥70 billion for operating income. After reaching this target, we will regain the ¥100 billion level by strengthening SEGA even further and fostering other operating companies. Furthermore, looking to the future, we will invest cash fl ows generated during this period in the integrated resort business.

Fiscal 2015 Plans

System that Consistently Creates Hit Products from Abundant ContentSee "The Group's Short-, Medium-, and Long-Term Strategies"