[Financial results]Sega Sammy’s September interim financial results show higher sales and lower profits!Pachinko/pachislot business turned profitable, game business profit decreased

SEGA SAMMY HOLDINGS INC.

Summary of Financial Results for the Second Quarter of the Fiscal Year Ending March 2023[JGAAP](Consolidated)

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According to the article

(1) Explanation of operating results
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abbreviation

Under this business environment, sales for the first half of the fiscal year under review were 150,095 million yen (up 11.3% year-on-year), operating income was 9,574 million yen (down 34.8% year-on-year), ordinary income was Profit was 12,300 million yen (down 16.6% year-on-year), and profit attributable to owners of parent was 9,619 million yen (down 19.9% ​​year-on-year).

An overview by segment is as follows.
Please note that the sales figures for each segment in the text do not include inter-segment sales.

《Entertainment Contents Business》
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In the consumer sector, we sold 10.14 million units (14.04 million units sold in the previous fiscal year) of new titles such as “Soul Hackers 2” and “Two Point Campus” as full games. In F2P, the existing title “Project Sekai Colorful Stage! feat. Hatsune Miku” continued to perform well.
In the amusement machine field, sales centered on the UFO Catcher R series and prizes.
In the video and toy field, in the video segment, we posted income from distribution of the movie version of “Detective Conan: Halloween Bride”, and in the toy segment, “Camera mo IN! Change your mouse! We sold new products such as Sumikko Gurashi PC Premium Plus Deco and standard products.
As a result of the above, net sales were 116,629 million yen (up 8.5% year-on-year), and ordinary income was 17,246 million yen (down 24.1% year-on-year).

《Pachislot and Pachinko Machine Business》
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Sales of pachislot machines amounted to 34,000 units (31,000 units sold in the same period of the previous fiscal year). “Pachislot Kou Tetsujyo no Kabaneri,” which was released in July as the group’s first 6.5 machine, is performing well in terms of sales and operation. As for pachinko machines, we sold 23,000 units (23,000 units in the same period of the previous fiscal year), including sales of “P Monster Hunter Double Cross Continuous Hunting ver.” All of the titles we have sold have sold more than planned, and have generally performed well.
As a result of the above, sales were 27,534 million yen (18.0% year-on-year increase), and ordinary income was 2,011 million yen (ordinary loss was 1,324 million yen in the same period last year).

《Resort Business》
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In the resort business, at the Phoenix Seagaia Resort, the government and its own measures to stimulate tourism demand contributed, and the number of facility users in the second quarter of the current consolidated accounting period was 3 in 2020, before the spread of the new coronavirus infection. Demand was high, especially from individual customers, exceeding the figures for the second quarter of the consolidated accounting period.
Overseas, at “Paradise City” operated by PARADISE SEGASAMMY Co., Ltd. (our equity-method affiliate), due to the impact of travel restrictions in each country due to the spread of the new coronavirus infection, from January 2022 Compared to January to June 2020, the drop amount (chip purchase amount) in June was 29.0%, and the number of casino visitors was 47.5%. On the other hand, since travel restrictions were partially eased after June 2022, there were signs of recovery in the number of Japanese VIP customers.
* PARADISE SEGASAMMY Co., Ltd. is recorded with a delay of 3 months due to the fiscal year ending in December.
As a result of the above, sales were 5,649 million yen (47.4% year-on-year increase) and ordinary loss was 2,392 million yen (ordinary loss was 3,955 million yen in the same period last year).

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