Integrated Report 2021: Sega Sammy

Sega Sammy’s 2021 Integrated Report details a comprehensive strategic pivot designed to restore profitability and drive long-term corporate value following a challenging fiscal year marked by the COVID-19 pandemic. The company’s primary thesis centers on a transition toward a "Global Leading Contents Provider," underpinned by a medium-term plan that prioritizes the Consumer business as the primary engine for growth. By leveraging its extensive intellectual property library, investing in "Super Game" development, and expanding its global studio network, the organization aims to achieve ¥500 billion in long-term net sales and an ROE exceeding 10% by fiscal year 2024.

Financial performance in 2021 reflected significant volatility, with consolidated net sales declining 24.2% to ¥277.7 billion and operating income dropping 76.4%. These results were heavily impacted by the contraction of the Pachislot and Pachinko segment and the disruption of resort operations. In response, the company executed aggressive structural reforms, including workforce reductions, the divestiture of amusement subsidiaries, and the recording of ¥34.19 billion in reform-related expenses. To ensure future stability, management has adopted a new capital efficiency framework, targeting a 50% total return ratio and utilizing ROIC to optimize the business portfolio.

The scope of this strategy encompasses the company’s global operations, with a specific focus on navigating market risks through enhanced corporate governance and ESG commitments. Despite setbacks in the integrated resort sector, the company remains committed to long-term development while simultaneously addressing social responsibilities, such as gambling addiction countermeasures and environmental sustainability. By integrating performance-based compensation, diversifying its workforce, and maintaining high liquidity, the organization seeks to foster an autonomous culture capable of navigating global market demands through 2030.