Sega Sammy Holdings FY 2017 Fiscal Year Results Presentation Q1: Appendix

Sega Sammy Holdings provides a comprehensive overview of its corporate structure, business segments, and operational models as of mid-2016. Formed through the integration of Sega Corporation and Sammy Corporation, the group operates as a diversified entertainment entity with a primary focus on the development and manufacturing of pachislot and pachinko machines, digital and packaged gaming, amusement center operations, and integrated resort development.

The group’s business model for amusement machine sales is categorized into four distinct strategies: traditional pay-to-play, conversion kits for hardware upgrades, revenue-sharing arrangements, and free-to-play models. In the pachislot and pachinko sectors, the company maintains a significant market presence, utilizing a variety of machine types—ranging from high-payout AT/ART models to light-probability machines—to cater to diverse player preferences. These operations are subject to rigorous regulatory approval processes involving prototype testing and certification by public safety commissions.

Beyond gaming hardware, the group is actively expanding its footprint in the resort industry. Key initiatives include the operation of the Phoenix Seagaia Resort in Japan, the management of indoor theme parks like Joypolis and Orbi, and the development of integrated casino resorts in South Korea, such as the Paradise City project. The group’s financial strategy emphasizes the enhancement of corporate value through stable cash dividends and long-term growth investments. As of March 2016, the organization reported a consolidated workforce of 7,606 employees and a shareholder base exceeding 90,000, reflecting its status as a major player in the global entertainment landscape.