Sega Sammy Holdings FY 2017 Q2 Results Presentation: Appendix

Sega Sammy Holdings functions as a comprehensive entertainment conglomerate formed through the 2004 integration of Sega Corporation and Sammy Corporation. The organization’s primary objective is to deliver immersive entertainment experiences globally across a diversified portfolio. This portfolio spans pachislot and pachinko machine manufacturing, digital and packaged game development, amusement center operations, animation and toy production, and the development of integrated resorts.

The group maintains a significant presence in the Japanese gaming market, particularly in the pachislot and pachinko sectors. In the pachislot market, the company holds a 51.9% share in AT/ART machine sales and a 31.0% share in combined A+ART machines. Within the pachinko segment, the company captures 43.4% of the middle-probability machine market. These operations are subject to a rigorous regulatory approval process involving prototype testing and certification by public safety commissions. Beyond traditional gaming, the entertainment contents business leverages intellectual property across digital platforms, home consoles, and arcade systems, utilizing varied business models such as revenue-sharing and free-to-play structures to maximize engagement.

Strategic expansion is currently focused on the resort sector, with major projects including the Phoenix Seagaia Resort in Japan and the development of integrated resorts in South Korea, such as the Paradise City complex in Incheon. As of September 2016, the group employed 7,719 personnel and maintained a stable shareholder return policy centered on consistent cash dividends. The company’s corporate structure is supported by a broad base of 87,413 shareholders, with a significant portion of ownership held by individual investors and foreign institutions. These operations reflect a long-term commitment to enhancing corporate value through both established gaming hardware and emerging resort-based entertainment.