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Business Strategies

Business Outline

Business Outline
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Business Plan

In addition to Pachislot and Pachinko Machines which consist of pachislot and pachinko machines, the Group is engaged in a diverse array of entertainment businesses such as the Entertainment Contents Business which consists of the field of digital game software for smartphones and online PC games, the packaged game software field including home video game software, amusement machines, amusement center operations as well as the toy and animation fields. Our goal is to have strong competitiveness in these fields as our core businesses. Additionally, we are aiming to make a full-fledged entry into the integrated resort facility business and will make active efforts to make the Resort Business, which involves development and management of theme parks and resort facilities, a new core business.

（JPY Billion）

  FY Ended March 2018 FY Ended March 2019
Net sales Overall 323.6 390.0
  Pachislot and Pachinko Machines 105.6 122.0
  Entertainment Contents 208 258.0
  Resort 9.9 10.0
Operating income Overall 17.7 21.0
  Pachislot and Pachinko Machines 11.9 18.5
  Entertainment Contents 14.8 13.5
  Resort -2.5 -3.0
  Eliminations -6.5 -8.0
Operating income to net sales 5.5％ 5.4％

Business Plan by Segment

1.Pachislot and Pachinko Machines Business

Issues to be Addressed

Pachinko parlor operators continue to face increasingly harsh business conditions due to widespread practice of lowering ball rental fees and a decline in the number of players amidst the significant reforms in the market environment and regulation environment. In the Pachislot and Pachinko Machines Business, under these circumstances, developing and supplying products with innovative gameplay that meet market needs to maintain and expand market share are considered as management issues.

【Forecasts】

Overall

    • Full-scale sales of machines conforming to new rules from second half

Pachislot

    • Acceleration of sales of No. 6-type machines from the second half

Pachinko

    • Sales centered on machines conforming to previous regulation（“Pachinko CR Shin Hokuto Muso Chapter 2”etc.）

2.Entertainment Contents Business

Issues to be Addressed

With regard to Entertainment Contents Business, the predominance of top titles in the Japanese digital game software market is increasing, and as fall of medium and lower titles can be expected in the future, the Group is expected to maximize product quality focused on existing mainstay titles and to develop and supply new titles that will enter top sales rankings. Moreover, achieving entry into the overseas digital game software market focused on the rapidly growing Asian region is considered as a management issue.
In the packaged game software field, amusement machine field, amusement center operations field and animated film and toy fields, in addition to maintaining the effect of revenue recovery by structural reform initiatives, further improvements in profitability is considered as a management issue.

【Forecasts】

Overall

    • Launch of new titles mainly in digital games field

Digital Games

    • Launch of multiple new titles
      launch title numbers　2018/3 3 titles⇒2019/3　12 titles

Packaged Games

    • Planning new title launches

    • Planning overseas expansion/repeat sales

Amusement Machine Sales

    • Sales of “Fate/Grand Order Arcade”

    • Prior investment in casino machines

Amusement Center Operations

    • Expansion focusing on prizes

    • Introduction of e-money and new video games

Animation / Toys

    • Release of theatrical anime “Detective Conan: Zero the Enforcer”

    • Sales focusing on regular, mainstay products such as the“ANPANMAN” series

3.Resort Business

Issues to be Addressed

With regard to Resort Business, through the development and operation of resort facilities in Japan as well as integrated resorts overseas, while preparing for a full-fledged integrated resort business in the future by distributing management resources at an optimal level and conducting prior investments, it is an important management issue of the Group to accumulate expertise

【Forecasts】

Overall

    • Prior investment in domestic IR

PHOENIX RESORT

    • Results are expected to improve from the previous fiscal year when business was affected by factors such as the weather.

    • Various initiatives are planned, including proposing various accommodation plans and organizing events each season.

PARADISE SEGASAMMY

    • 1-2 Phase which includes a Club and Spa is scheduled to open.

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