The SEGA SAMMY Group’s mission is “Continuing to create moving experiences” and “Making life more colorful.” Our more than fifty entities share the common aspiration to enrich society by providing exciting experiences through entertainment, our core business. High-quality entertainment is essential for a mature society, and our creation of entertainment is the meaning for our existence and not merely because we enjoy it.
At present, the entertainment industry is in transition. The steady advance of an information-based society has led to diverse forms of entertainment and intensified competition across industries. These changes are moving forward at an unprecedentedly rapid pace. To provide the increased value that society needs in such an environment, the SEGA SAMMY Group must continue to be a “Game Changer” that overcomes the fear of change and continuously implements reform. With these aims, we have further advanced our core businesses, Pachislot and Pachinko Machines, Entertainment Content, and Resorts, while identifying growth fields in each business and implementing the structural reform of the Group to generate synergies.
All divisions of the Entertainment Content business produced profit in fiscal 2017, and this indicates that our structural reform has started to achieve solid results. The Pachislot and Pachinko business is facing the challenges of a shrinking market and a strict regulatory environment. Consequently, we have initiated industrywide efforts to survive, such as reviewing our development processes and building ties with other companies in the industry. In the Resort business, we opened PARADISE CITY in Incheon as a joint project with the South Korean Paradise Group, which is the country’s first integrated resort (IR) project, on April 20, 2017. We believe that the IR business is crucial for pursuing opportunities.
As a multi-dimensional entertainment company, the SEGA SAMMY Group has delivered a variety of entertainment value. The source for this value is the rich creativity and spirit of challenge demonstrated by our human resources. The workstyle reform that the Group has focused on recently is based on positioning our human resources as our most important management asset in support of the Group’s continuous progress while also maximizing their value. In fiscal 2019, we intend to consolidate the offices of the Group companies into a single location, and we expect this will accelerate communication among Group employees and serve as a driver for creating greater value. Furthermore, while solidifying our foundation for sound corporate management through systems for corporate governance and compliance, we are vigorously devoted to establishing a free, creative corporate culture that befits an entertainment company.
Entertainment has the power to move people, and this power is limitless. At integrated resorts, we have presented games and Pachislot and Pachinko machines as well as content that remains popular beyond any particular time period and an integrated resort offering guests the extraordinary experiences.
In areas stricken by natural disasters, we have set up activities to help people regain a sense of joy and enthusiasm for life. Only a multidimensional entertainment company can create this type of value, and we believe that it is our social responsibility to continuously generate such value.
We have signed on to the United Nations Global Compact and declared our commitment to the responsibilities and roles for realizing a sustainable global society. This represents our determination to always be a company that provides high-quality entertainment across the globe. We aspire to continue to be a corporate group in which every employees is proud of their work and confident that they are contributing to the sustainable development of society by continuously providing moving experiences to people worldwide.
I assumed the roles of president and COO of SEGA SAMMY HOLDINGS on April 1, 2017. In taking on this vital responsibility for managing the entire Group, I renewed my commitment to creating a company that employees can speak about with pride to their family and friends. The SEGA SAMMY Group adopted its mission of “Continuing to create moving experiences” and “Making life more colorful” as the meaning behind its existence. In May 2017, we announced the Road to 2020, which set the goals for fiscal 2020, thereby renewing our commitment with specific objectives as a leader in the multi-dimensional entertainment industry.
In fiscal 2019, the SEGA SAMMY Group intends to consolidate the business sites of Group companies, which have been in various locations in the Tokyo metropolitan area, to combine its capabilities with the aim of achieving further growth. These companies, including SEGA Holdings Co., Ltd. and Sammy Corporation, have developed the Mission Pyramid* as a guideline for their operations, and we are now working on adopting this across the entire Group. The Mission Pyramid is a framework that defines our Mission (the meaning of our existence), Vision (how we want to be), and Goal (target) as well as the detailed strategies, organizations, and tactics required to achieve them. It helps every employee to fully understand the focus of our business and work together to achieve that.
I feel that my top priority as COO is to envision the future of the Group that we should pursue and that will unite the passion of all employees under the banner of “Continuing to create moving experiences.
Creativity is essential for conducting business in the entertainment industry. Gaining high-quality input in leisure time outside of work is conducive to creating new ideas and the fostering of creativity. The initial step in our workstyle reform is to make employees aware of the need to review the principles underlying effective workstyles and improve the ways they work. Our role as management is to focus on developing a system for valuing employees who work efficiently.
We have initiated the reform by establishing a cross-Group organization, the Workstyle Consultation Department. It is responsible for supporting employees while developing onsite improvement measures with employees and accumulating expertise. We will create workplaces in which diverse people with different ideas can work comfortably. Moreover, we will realize efficient and flexible workstyles that enable both individuals and the company to continue to grow with the philosophy of “work hard, have great fun, learn well and enjoy both work and private lives.”
Around the time of our office relocation, we will establish training and self-development programs for employees toward creating an environment for developing talented people and further advancing the Group’s structural reform.
In fiscal 2017, we achieved increases in net sales and income for the entire SEGA SAMMY Group, including the Entertainment Content Business moving into the black in all business segments and regions, as a result of our efforts to reform our business structure across the Group. I am certain that these achievements prove that the “moving experiences” we have created and delivered have been well received by fans and society. People enjoy them when their excitement exceeds their expectations. The value of our Group is in continuously creating those moving experiences.
We will unite the Group’s capabilities under the new Mission Pyramid and establish an environment where all of us can reach our best performance and continue to create moving experiences that exceed the expectations of fans.
Any growth of the SEGA SAMMY Group must happen within the context of society’s development and in close relationship to our stakeholders. Practicing corporate social responsibility, or CSR, is something we do as a member of society. CSR in itself is not an extraordinary or difficult endeavor. It simply involves establishing a Group Mission and practicing it day to day.
We support the sustainable We support the sustainable development of society by following the law and social norms, generating a stable and appropriate profit, and paying taxes and dividends. These, however, are not enough. As a good corporate citizen, the SEGA SAMMY Group tackles global environmental problems and social problems (such as human rights) by taking a global point of view, and at the same time we create many benefits for our local communities.
I’m proud of our many Group employees who actively volunteered after the Great East Japan Earthquake of 2011. During the reconstruction efforts, they put on a variety of events in the affected areas to give people courage and strength. Thanks to them, I rediscovered the significance of the entertainment business and was particularly impressed with how much these employees grew. Going forward, we will not only take social initiatives, but also contribute to society in a range of forms through our business and our response to the environment.
Humans need more than just food, clothing, and shelter to live. A dynamic life requires play and fun, which is what entertainment is all about. Our goal and the role society expects of us is to bring enrichment, fulfillment, vitality for tomorrow, and other such values to people’s daily lives by providing entertainment that delivers smiles, joy, dreams and excitement to people throughout the world. We are conscientious at all times in offering safe, high-quality products and services and to develop and offer products and services that help to solve society’s problems through entertainment. We will moreover work with our Group companies, related industry groups, and others to encourage the sound development of young people and create appropriate environments for play and pastimes.
As good corporate citizens, the Group as a whole and its individual companies and workplaces maintain an active dialogue with members of the community and take initiatives to benefit society. Such initiatives also encourage each employee to grow and unify us in our aspiration for a stronger Group.
Climate change, resource depletion, and poverty are among the many problems we face on the global scale. The business activities of an enterprise inevitably have some impact on the environment. There is so much more we can do, as a Group and as individuals, than just comply with laws on pollution prevention, waste processing and the like. Our Group employees therefore will think about and act on what they can do to benefit the environment, by saving energy, recycling, or reducing consumables use.
Corporate governance, including compliance and risk management, is utterly crucial. The SEGA SAMMY Group is ensuring corporate management soundness, transparency, and efficiency by instilling our Management Philosophy, developing compliance awareness, and strengthening our legal compliance and internal control systems.
We moreover create healthy workplace environments, respect human rights, and show no tolerance for discrimination. Our purpose is to build a corporate culture where each employee can engage his or her creativity and challenge-taking spirit. Along with this, we maintain fair and impartial relationships with our suppliers and work together with them as partners.
The SEGA SAMMY Group views our business with a global perspective in our efforts to ensure sustained growth and to maximize enterprise value. Additionally, we enhance management transparency and meet the expectations of our shareholders and society through fair and timely disclosure and appropriate returns on profits.
The SEGA SAMMY Group can do more than grow for its own sake. We will strive to achieve strong, continuous growth by actively exploring new fields in a way that contributes to the invigoration of the overall Japanese economy and to the sustainable development of the world.
At the same time, At the same time, we need to realize that any expansion of our Group’s services and business will necessarily affect our stakeholders and society in a significant way. We must therefore renew our awareness of such circumstances and our responsibility, and fulfill our CSR in a manner as befits the SEGA SAMMY Group, to ultimately become a corporate group that is committed to corporate growth, social worth, and continuing to earn respect.