Sega Sammy Holdings Consolidated Financial Statements: 9 Months Ended December 31, 2014

Sega Sammy Holdings’ consolidated financial results for the nine-month period ending December 31, 2014, reflect a period of significant contraction across its primary business segments. The company reported net sales of 267,512 million yen, representing a 12.0% decline compared to the same period in the previous fiscal year. Operating income experienced a sharper downturn, falling 65.1% to 16,264 million yen. The company ultimately recorded a net loss of 24 million yen, a stark reversal from the 44,329 million yen net income reported during the corresponding period in 2013, driven by increased tax provisions and costs associated with asset dismantling and the cessation of independent film production.

The Pachislot and Pachinko segment, a core revenue driver, faced headwinds due to regulatory changes in model testing procedures, which reduced the volume of new pachislot titles. While pachinko machine sales remained relatively resilient, segment net sales dropped 28.0% to 115,404 million yen. Conversely, the Consumer Business segment saw a 13.5% increase in net sales to 82,779 million yen, bolstered by strong performance in digital games for mobile and PC platforms, despite sluggishness in the packaged software and toy divisions. The Amusement Machine Sales segment reported a modest recovery, achieving an operating profit of 474 million yen, while Amusement Center Operations remained in a loss-making position of 542 million yen.

Geographically focused on the Japanese market with international distribution for consumer software, the report adheres to Japanese GAAP. The company implemented changes to its accounting policies regarding retirement benefit obligations during this period, adopting a benefit formula basis for attribution and a weighted average discount rate. These adjustments resulted in a minor increase in retained earnings but had an insignificant impact on operating income.