Fiscal Year Ended March 2026: Results Presentation

Updated Jun 10, 2026 by Sega Sammy Holdings

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Financial

Fiscal Year Ended March 2026: Results Presentation

Published by Sega Sammy Holdings

Summary

Fiscal Year 2026/3 saw Sega Sammy’s revenue rise to ¥487.5 billion, driven by robust pachislot and Pachinko sales and the acquisition of two gaming companies. Despite higher top‑line growth, operating income fell to ¥47.1 billion because of a ¥58.8 billion extraordinary loss from goodwill impairments on Rovio and Stakelogic, resulting in a net loss of ¥5.7 billion. Adjusted EBITDA contracted sharply to ¥16.6 billion, though operating forecasts were met and sales are expected to climb further in FY2027/3; profits, however, will likely decline until the newly acquired gaming assets stabilize. The balance sheet shows goodwill unchanged at ¥26.3 billion, with other intangible assets amortised over 4–20 years. Cash flow from operations rose to ¥25.9 billion, largely due to impairment and amortisation gains, while investing cash outflows of ¥22.5 billion reflected the acquisitions of GAN and Stakelogic, leaving a modest free cash flow of ¥3.4 billion. Pachislot and Pachinko machine sales reached ¥132 billion, supported by flagship titles such as *Smart Pachislot Hokuto No Ken* and the new IP *Tokyo Revengers*. Operating income for this segment climbed to ¥32.1 billion, but a forecasted decline in FY2027/3 sales to ¥115.5 billion is anticipated, driven by fewer mainstay titles, a shift toward lower‑priced reel units, and rising semiconductor costs. The company expects new IP launches in the second half of FY2027/3 to offset this downturn. Medium‑term projections now target cumulative adjusted EBITDA just under ¥110 billion, far below the original over‑¥180 billion goal, and a return on equity that will miss the 10 % benchmark. Sales are projected to exceed ¥500 billion for the first time since FY2007/3, yet adjusted EBITDA and ordinary income for FY2027/3 are expected to fall short of plan targets. Key challenges include underperformance of new free‑to‑play titles, launch delays, and the need to improve profitability from recently acquired assets. Rovio’s post‑acquisition sales have underperformed, with *Angry Birds 2* stabilising but remaining below prior levels. The strategy focuses on revitalising core titles, expanding the Angry Birds IP through film and licensing initiatives, and launching additional mobile games in China to restore earnings. Operational improvements, trans‑media expansion, and targeted IP development underpin the plan for steady growth. Gaming‑machine sales continue to grow, reaching ¥8.3 billion in FY2026/3 with profitability across all profit levels. A strategic shift toward lease‑centric revenue is expected to drive medium‑to‑long‑term profits, despite a modest FY2027/3 sales forecast. Key titles such as the Railroad RICHES and Super Burst series maintain high utilisation, supporting strong casino revenue. The company is expanding its B2B footprint in the U.S., launching a next‑generation “V2” platform and pursuing social‑casino porting, while implementing proactive marketing and cost‑control initiatives across B2C and B2B segments. Sega Sammy Holdings Inc. operates as a Nevada‑registered public company, with subsidiaries licensed to manufacture, distribute, and provide information services for gaming equipment in Nevada and other jurisdictions. Shareholders are subject to Nevada Gaming Authority rules, with similar regulatory constraints potentially applying elsewhere. Forward‑looking statements acknowledge uncertainties arising from economic, regulatory, and operational risks that could materially affect future performance.

From the report

SEGASammy Fiscal Year Ended March 2026 Results Presentation May 12, 2026 The market forecasts, performance outlooks, plans, strategies, and other forward-looking statements contained in this document are based on information available to the Company and the judgment of its management at the time this material was created. They do not constitute a guarantee of future performance. The information provided herein involve uncertainties that may be affected by various factors, including economic conditions, industry trends, competitive environment, exchange rates, interest rates, raw material prices, changes, amendments or abolishment of laws and regulations, large-scale natural disasters, outbreaks of infectious diseases, conflicts, and risks related to cybersecurity. Such uncertainties could cause actual results or events to differ materially and adversely from those presently anticipated. The Company does not undertake to update or revise this document. Disclaimer In addition, information contained in this document that relates to parties other than the Company has been quoted from publicly available sources and other references. However, the accuracy or completeness of such information is not warranted or guaranteed. This document is for informational purposes only, and is not intended to solicit or recommend any investments.

rties other than the Company has been quoted from publicly available sources and other references. However, the accuracy or completeness of such information is not warranted or guaranteed. This document is for informational purposes only, and is not intended to solicit or recommend any investments. Any investment decisions should be made solely at your own discretion and responsibility. The Company and the information providers shall bear no responsibility whatsoever for any damages incurred by users as a result of utilizing the information contained in this document. Unauthorized reproduction, redistribution, or alteration of this document or its contents for any purpose is strictly prohibited. If you quote all or part of this document, please clearly indicate the source of the citation or link to this page. 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 damages arising from the translation. Should there be any inconsistency between this translation and the original Japanese-language version, the Japanese-language version shall prevail. © SEGA SAMMY HOLDINGS INC. All Rights Reserved. <Disclaimer> This document is a transcription from the financial results briefing presentation, and some edits and modifications have been made for ease of understanding. Speaker: Makoto Takahashi (Senior Executive Vice President and Group Officer, SEGA CFO, Executive SAMMY HOLDINGS INC.)

Pages: 62
Words: 16,290
Type: Financial

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erved. <Disclaimer> This document is a transcription from the financial results briefing presentation, and some edits and modifications have been made for ease of understanding. Speaker: Makoto Takahashi (Senior Executive Vice President and Group Officer, SEGA CFO, Executive SAMMY HOLDINGS INC.) I will explain the results for FY2026/3 and the forecast for FY2027/3.

Results Highlights (Consolidated) SEGASamy (Billion yen) FY2025/3 FY2026/3 FY2027/3 FY2026/3 Results Full-year Full-year Full-year Results Results Forecast ⮚ Sales increased and profits decreased compared to Sales 428.9 487.5 510.0 FY2025/3 • Full Game sales, new F2P titles and Rovio's performance were Operating Income 48.1 47.1 44.5 soft (CS*1) • Sales of mainstay pachislot titles were strong (Pachislot & Ordinary Income 53.1 54.2 47.5 Pachinko) • Sales increased and operating loss widened due to the Extraordinary income 10.0 0.8 0.0 consolidation of two acquired companies (Gaming) Extraordinary losses 8.3 58.8 1.0 ⮚ Resulted in a net loss due to the recognition of impairment losses on Rovio and Stakelogic Profit or loss attributable to 45.0 -5.7 32.5 FY2027/3 Forecast owners of parent Indicators in the Medium-Term Plan ⮚ Plan for an increase in sales and a decrease in profits compared to FY2026/3 Adjusted EBITDA 62.2 16.6 64.0 • Sales of new titles are expected to increase in Full Game ROE 12.2% -1.6% 8.9% (CS) • Continue to strengthen Transmedia expansion (CS) • Profits decline due to decrease in mainstay titles and rising *Adjusted EBITDA: Ordinary income + Interest expenses + Depreciation and amortization ±Adjustment items costs etc. (Pachislot & Pachinko) Adjustment items: • Loss widens due to upfront investments aimed at Extraordinary income of business, Extraordinary losses of business (impairment, title write-down, etc.), establishing a foundation for future growth (Gaming) Profit attributable to non-controlling interests, Goodwill, trademark right amortization, etc. associated with M&A -3- *1 CS=Consumer Area

t Extraordinary income of business, Extraordinary losses of business (impairment, title write-down, etc.), establishing a foundation for future growth (Gaming) Profit attributable to non-controlling interests, Goodwill, trademark right amortization, etc. associated with M&A -3- *1 CS=Consumer Area In FY2026/3, sales increased significantly compared to FY2025/3, while the income through ordinary income level remained generally in line with FY2025/3. The Pachislot & Pachinko Machines Business, where Pachislot sales performed strongly, and the Gaming Business, which completed acquisitions of two companies, contributed to increase in sales. Meanwhile, in the Entertainment Contents Business, Full Game sales, new F2P (Free-to- Play) titles, and Rovio’s performance were soft, and losses from the two acquired companies in the Gaming Business were incorporated, resulting in income through ordinary income level remaining generally in line with FY2025/3. In addition, impairment losses on goodwill, etc. related to Rovio and Stakelogic resulted in the recording of a net loss. Adjusted EBITDA amounted to 16.6 billion yen, representing a decrease compared to FY2025/3. Since adjustment items included impairment losses on goodwill, etc., extraordinary losses of business totaling 58.8 billion yen had a significant negative impact on results. On the other hand, results significantly exceeded the operating results forecasts announced on February 13 at each income level. Factors contributing to

uded impairment losses on goodwill, etc., extraordinary losses of business totaling 58.8 billion yen had a significant negative impact on results. On the other hand, results significantly exceeded the operating results forecasts announced on February 13 at each income level. Factors contributing to this included the non-occurrence of SG&A expenses in the Entertainment Contents Business and the Pachislot & Pachinko Machines Business, the non-payment of stockbased compensation for officers, etc., and an increase in equity method earnings in the Gaming Business, which was associated with the recording of deferred tax assets at PARADISE SEGA SAMMY. For FY2027/3, while sales are planned to increase, profits are expected to decline through the ordinary income level. By segment, in the Entertainment Contents Business, which we position as a growth business, we expect both sales and profit to increase as we plan to launch many new mainstay Full Game titles. On the other hand, in the Pachislot & Pachinko Machines Business, we expect a decline in mainstay titles and increase in costs due to factors such as soaring semiconductor prices resulting from the AI-driven demand. Furthermore, in the Gaming Business, we expect the loss to widen due to upfront investments aimed at establishing a foundation for future growth in the B2B business. However, we plan to return to profitability at the net income level.

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