Sega Sammy Fiscal Year Ended March 2020 Results Presentation

Key insights

6 takeaways

01
Group sales and operating income both increased year on year for the fiscal year ended March 2020. Operating income reached 27.6 billion yen, an operating margin of 7.5%, compared with 13.0 billion yen and 3.9% the prior year.See it on page 4
02
The company recorded a tax expense increase from the reversal of deferred tax assets of approximately 7 billion yen, attributed to the impacts of COVID-19.See it on page 4
03
Pachislot unit sales rose to 123,336 units from 67,140, while Pachinko unit sales fell to 104,581 units from 159,848.See it on page 10
04
Entertainment Contents segment operating income rose to 14.8 billion yen from 9.8 billion yen, and Digital Game segment operating income increased to 9.8 billion yen from negative 1.9 billion yen.See it on page 14
05
The company did not decide the FY2021/3 forecast or dividend plan, because the COVID-19 impact is difficult to calculate rationally.See it on page 4
06
Among the Road to 2020 shortfall factors, the company cited revision of the rules for Pachislot and Pachinko machines and insufficient hit titles in the Digital Games area.See it on page 20

Summary

This is a results presentation from SEGA SAMMY HOLDINGS INC., dated May 13, 2020, covering the fiscal year ended March 2020 on a consolidated group basis. It reports sales and profit by business segment (Pachislot and Pachinko Machines, Entertainment Contents, Resort), reviews progress against the Road to 2020 mid-term plan, and describes the expected impacts of COVID-19 on each business. Group sales rose to 366.5 billion yen from 331.6 billion yen, and operating income rose to 27.6 billion yen from 13.0 billion yen, an operating margin of 7.5% versus 3.9%. Profit attributable to owners of parent was 13.7 billion yen, against 2.6 billion yen the prior year. The company reversed deferred tax assets of approximately 7 billion yen, which it recorded as income taxes-deferred. Pachislot unit sales rose to 123,336 units from 67,140, while Pachinko unit sales fell to 104,581 units from 159,848. The Entertainment Contents segment's operating income rose to 14.8 billion yen from 9.8 billion yen, with Digital Game operating income at 9.8 billion yen. The company reported a Road to 2020 operating margin result of 7.5% against a target of 15%, and it noted that the main shortfall factors were the revision of Pachislot and Pachinko machine rules and insufficient hit titles in Digital Games. Forecasts for the fiscal year ending March 2021 and dividends have not been decided because the COVID-19 impact is difficult to estimate rationally.