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Sega Sammy Business Report: Fiscal Year Ended March 31, 2013

Key insights

6 takeaways

01
Sega Sammy experienced an 18.7% decline in net sales to ¥321.4 billion and a 67.4% drop in operating income for the fiscal year ending March 31, 2013, primarily due to delayed Pachislot and Pachinko machine releases.See it on page 2
02
Net income rose by 53.2% to ¥33.4 billion, driven by tax benefits from the liquidation of U.S. subsidiaries rather than operational performance.See it on page 14
03
The company pivoted toward digital growth with successful titles like Phantasy Star Online 2 and Puyo Puyo!! Quest, supported by the acquisition of Relic Entertainment and the integration of Butterfly Corporation.See it on page 9
04
Structural investments included a new production facility capable of manufacturing nearly 18,000 gaming machines daily to expand long-term capacity.See it on page 6
05
Sega Sammy maintained a strong financial position with ¥174.2 billion in cash and cash equivalents, supporting a dividend of 40 yen per share and an equity ratio of 59.7%.See it on page 1
06
Future strategy focuses on portfolio diversification through investments in Orbi nature-themed facilities and expansion into casino resort markets.See it on page 8

Summary

Sega Sammy Holdings experienced a challenging fiscal year ending March 31, 2013, characterized by a significant 18.7% decline in net sales to ¥321.4 billion and a 67.4% contraction in operating income. These results were primarily driven by the postponement of key titles within the Pachislot and Pachinko Machine Business, which historically serves as a core revenue pillar. Despite these operational setbacks, net income surged by 53.2% to ¥33.4 billion, bolstered by tax benefits resulting from the liquidation of U.S. subsidiaries and a stable equity ratio of 59.7%.

Strategic efforts during this period focused on structural reform and long-term capacity expansion, most notably through the opening of a high-capacity production facility capable of manufacturing nearly 18,000 gaming machines daily. While traditional segments like packaged software and amusement machines faced downward pressure, the company successfully pivoted toward digital growth. Titles such as Phantasy Star Online 2 and Puyo Puyo!! Quest demonstrated the viability of a cross-platform digital strategy, which was further supported by the acquisition of Relic Entertainment and the integration of Butterfly Corporation to bolster mobile and PC portal capabilities.

Looking ahead, the organization maintains a strong liquidity position with ¥174.2 billion in cash and cash equivalents, supporting a consistent dividend policy of 40 yen per share. Management remains committed to diversifying the entertainment portfolio through initiatives like the Orbi nature-themed facilities and continued expansion into casino resort markets. By leveraging a robust release schedule and deepening its digital footprint, the company aims to stabilize earnings and recover from the fiscal volatility experienced throughout the 2013 period.