Sega Sammy Holdings FY 2015 Fiscal Year Results: Appendix of Consolidated Financial Statements

Key insights

6 takeaways

01
Sega Sammy Holdings reported a net loss of 11.2 billion JPY for the fiscal year ending March 31, 2015, driven by a 54% decline in operating income to 17.6 billion JPY.See it on page 1
02
The Pachislot and Pachinko segment, a core revenue driver, suffered an 18% drop in net sales and a 43% decline in operating income due to lower unit sales.See it on page 1
03
The consumer business segment acted as a stabilizer, with net sales rising 11% to 111.0 billion JPY and operating income doubling to 4.0 billion JPY.See it on page 5
04
Performance in the consumer sector was bolstered by the sale of 12.3 million units of packaged software and growth in digital games.See it on page 5
05
Management projects a recovery for fiscal year 2016, targeting 420.0 billion JPY in net sales and 25.0 billion JPY in operating income.See it on page 7
06
The 2016 growth strategy relies on a 60% increase in digital game sales and a 28% rebound in Pachislot machine unit sales to 265,000 units.See it on page 8

Summary

Sega Sammy Holdings’ fiscal year 2015 results, ending March 31, 2015, reflect a period of financial contraction characterized by declining net sales and operating income. Consolidated net sales fell 6% year-over-year to 354.9 billion JPY, while operating income experienced a significant 54% decline to 17.6 billion JPY. The company’s performance was heavily impacted by a downturn in the Pachislot and Pachinko machine segment, which saw an 18% decrease in net sales and a 43% drop in operating income, driven by lower unit sales compared to the previous fiscal year.

The consumer business segment provided a partial offset to these losses, achieving an 11% increase in net sales to 111.0 billion JPY and a 100% increase in operating income to 4.0 billion JPY. This growth was supported by strong performance in digital games and packaged software, with total unit sales for packaged games reaching 12.3 million units. Despite these gains, the overall consolidated net income resulted in a loss of 11.2 billion JPY, influenced by substantial extraordinary losses.

Looking toward the fiscal year ending March 2016, the company projects a recovery, forecasting consolidated net sales of 420.0 billion JPY and operating income of 25.0 billion JPY. The strategic outlook emphasizes a pivot toward the newly defined Entertainment Contents business, which is expected to drive growth through a 60% increase in digital game sales. The company also anticipates a rebound in the Pachislot and Pachinko segment, targeting 265,000 unit sales for Pachislot machines, representing a 28% increase over the 2015 results. These projections rely on management’s current market assessments and remain subject to inherent industry risks and uncertainties.