FY Ending March 2012 Interim Results Presentation: Sega Sammy Holdings

Sega Sammy Holdings experienced a complex fiscal landscape during the first half of the year ending March 2012, characterized by a 13.7% decline in net sales and a 21.1% drop in operating income. These results were primarily driven by weakened performance in the overseas consumer software market and increased operational expenses, including goodwill amortization. Despite these interim challenges, the company successfully executed strategic corporate maneuvers, including the acquisition of treasury stock and the transition of TAIYO ELEC into a wholly owned subsidiary, to solidify its long-term market position.

The organization maintains a positive outlook for the remainder of the fiscal year, having upwardly revised its full-year earnings forecasts. This optimism is anchored by the robust performance of the Pachislot and Pachinko segment, where high demand for flagship titles like Pachislot Hokuto No Ken is expected to drive a recovery in both sales and profits. Furthermore, the amusement center operations have demonstrated resilience through improved facility management, while the amusement machine division continues to provide steady contributions to the group’s overall financial health.

Looking toward the second half of the fiscal year, the company is shifting its focus toward high-profile software releases, such as Mario & Sonic at the London 2012 Olympic Games and Sonic Generations, with a full-year unit sales target of 20 million. Simultaneously, the group is aggressively expanding its digital footprint by prioritizing online services, including Football Manager Online and Sammy 777 Town. By balancing traditional hardware manufacturing with a growing emphasis on digital platforms, the company aims to overcome its interim setbacks and achieve year-on-year growth by the close of the fiscal period.