Financial

Full-Year Results for the Fiscal Year Ended March 2026: Major Questions in Results Briefing

Summary

The briefing clarified Sega Sammy Holdings’ fiscal‑year 2026 performance and forward strategy amid evolving market conditions. Social factors such as AI demand and Middle East tensions were deemed manageable, with a 1.5 billion yen impact already factored into the Pachislot & Pachinko forecast; no material risks from Middle East events were anticipated. M&A activity will remain limited to small‑scale transactions, while the company continues to strengthen its content pipeline by releasing four major IP titles in FY2027/3, scheduled for the second half of the year to maximize full‑price sales. The firm highlighted a shift toward data‑driven pricing and promotion, leveraging AI to optimize global KPIs across Europe, North America, South America, Southeast Asia, and Africa. Repeat sales initiatives will be supported by anniversary events for Sonic (35th) and Persona (30th), as well as cross‑media projects such as the Sonic movie and transmedia expansions for Like a Dragon. In gaming, the company expects FY2027/3 to be the bottom of losses for its Stakelogic unit, with a projected operating loss of 1.6 billion yen; structural reforms aim to reverse this trend by FY2028/3. The Gaming Business’s profitable segments—Gaming machine sales, GAN B2C, and PARADISE SEGASAMMY—will continue to drive earnings, while GAN B2B and Stakelogic receive targeted efficiency measures. PARADISE SEGASAMMY’s smart table development is positioned to reduce dealer training and operating costs, potentially expanding into international casinos. Overall, the company projects increased content production expenses in FY2028/3 due to a larger title slate and higher personnel costs, but anticipates corresponding profit growth from the expanded Full Game portfolio.

From the report

~~Major ~~ ~~Full-year Results for the Fiscal Year Ended March 202~~ 6 ~~Questions in Results Briefing for Analysts and Institutional Investors (Summary)~~ June 5, 2026 SEGA SAMMY HOLDINGS INC. IR/SR Department, Corporate Planning Division ■ Date and Time: May 12, 2026 (Tuesday) 13:00- ■ Respondents: Haruki Satomi (President and Group CEO, Representative Director of SEGA SAMMY HOLDINGS INC.) Makoto Takahashi (Senior Executive Vice President and Group CFO, SEGA SAMMY HOLDINGS INC.) <DISCLAIMER> *This document is an excerpt and summary of the Q&A session at the financial results briefing, and some edits and modifications have been made to improve comprehensibility. *This is an English translation from the original Japanese-language version. The translation is provided for your reference and convenience only and without any warranty as to its accuracy or otherwise. The Company assumes no responsibility for this translation and for direct, indirect or any other forms of loss or damage arising from the translations. Should there be any inconsistency between the translation and the original Japanese document, the Japanese language version shall prevail.

erwise. The Company assumes no responsibility for this translation and for direct, indirect or any other forms of loss or damage arising from the translations. Should there be any inconsistency between the translation and the original Japanese document, the Japanese language version shall prevail. Company-wide ~~Q. Please explain the impact of social conditions (AI-driven demand, Middle East situation, etc.) on ~~ ~~your business performance.~~ A. In the Pachislot & Pachinko Machines Business, we have incorporated an impact of approximately 1.5 billion yen into our forecast. Regarding procurement and R&D, we are leveraging the experience gained during the supply chain disruptions caused by the COVID-19 pandemic and are steadily implementing countermeasures, and visibility is improving. At present, we do not anticipate any material risks arising from the situation in the Middle East, but we will continue to monitor it closely. ~~Q. Please explain your future M&A policy.~~ A. As we mentioned in Q3 results announcement, we will refrain from large-scale M&A for the time being. Going forward, we may conduct smaller-scale M&A transactions as necessary to complement our existing capabilities. 1/6

Entertainment Contents Business ~~Q. Although you plan to release four major titles from mainstay IPs, why are unit sales of new ~~ titles ~~in FY2027/3 not expected to increase significantly YoY?~~ A．This is because their releases are concentrated in the second half of the fiscal year, limiting the period during which sales can be recorded within the fiscal year and this is factored in the forecast. In addition, FY2026/3 included relatively small-scale titles released on additional platforms, which were also counted as new titles and contributed to unit sales. ~~Ｑ. Regarding the four mainstay Full Game titles scheduled for release in FY2027/3, how do you ~~ view ~~the impact of major title releases by other companies?~~ A. As content oversupply continues to intensify, we will be competing with various forms of content—not just game titles from other companies—for consumers’ leisure time. Therefore, we need to remain mindful of such impacts. Taking into account the characteristics of each title, we intend to release them at the most appropriate timing. ~~Q. When dividing expected sales of new Full Game titles in FY2027/3 by expected unit sales, ~~ the ~~average selling price appears higher than usual. Please explain the reason.~~ A．While we do not disclose average selling prices, we plan to release four major titles of mainstay IP in the second half of the fiscal year and expect them to be sold at or near full-price.

xpected unit sales, ~~ the ~~average selling price appears higher than usual. Please explain the reason.~~ A．While we do not disclose average selling prices, we plan to release four major titles of mainstay IP in the second half of the fiscal year and expect them to be sold at or near full-price. ~~Q. Is STRANGER THAN HEAVEN intended primarily for existing fans of the Like a Dragon series, ~~ or ~~is it aimed at attracting new fans?~~ A．Development is progressing as a completely new title designed to be enjoyed broadly, including by players with no prior experience with the Like a Dragon series. We are also featuring overseas artists and globally recognized actors, with the aim of expanding global sales beyond previous series. ~~Q. Regarding repeat sales of Full Game, is your policy to prioritize maintaining average selling ~~ prices ~~over increasing unit sales through discounts?~~ A．More than ever before, we will carefully assess each title’s lifecycle and determine the optimal pricing for each region. Our policy is to implement flexible pricing strategies and promotions tailored to the characteristics of each market, including Europe, North America, South America, Southeast Asia, and Africa. Going forward, we will manage KPIs on a global basis and optimize sales promotion timing, pricing, and sales measures while also utilizing AI and other technologies.

omotions tailored to the characteristics of each market, including Europe, North America, South America, Southeast Asia, and Africa. Going forward, we will manage KPIs on a global basis and optimize sales promotion timing, pricing, and sales measures while also utilizing AI and other technologies. ~~Q. Regarding initiatives to strengthen “sales capabilities” through a data-driven approach, ~~ what ~~specific directions for sales expansion are you currently referencing?~~ A．Our policy is to maximize sales for the IP as a whole by conducting promotions and sales campaigns for related catalogue titles, including titles from the same series, alongside new releases. Referring to successful examples from other companies in the industry, we are preparing initiatives to coordinate pricing measures 2/6

and promotions for catalogue titles when launching new titles of mainstay series such as Like a Dragon, Persona, and Sonic. ~~Q. In conjunction with new title releases, the Sonic movie, and anniversary initiatives for each IP ~~ in ~~FY2027/3, is it possible to increase repeat sales of related titles?~~ A．FY2027/3 includes multiple anniversary initiatives, such as the 35th anniversary of Sonic and the 30th anniversary of Persona, and we believe this represents an opportunity to strengthen repeat sales of related titles. Across every IP, in line with the new titles scheduled for release in FY2027/3, we will advance initiatives including repeat sales expansion to maximize sales. Q. As you shift game promotion toward a more community-driven approach, how will you change ~~your community management efforts going forward?~~ A．Traditionally, our community initiatives focused primarily on new title sales, but going forward we aim to link these initiatives with repeat sales, merchandising, and video adaptations. In addition, we will support activation of game fan communities through the provision of official information to them and will monitor their related metrics as KPIs to implement the PDCA cycle.

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