Meeting Material - セガサミーホールディングス

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Meeting MaterialFebruary 20, 2015

Group Structure Reform (1)SEGA SAMMYHOLDINGS INC.Pachislot and pachinkomachines businessEntertainment contentsbusinessResort businessCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.1

Group Structure Reform (2)SEGA Holdings Co.,Ltd.SEGA Games Co., Ltd.CompanySystemConsumerOnlineCopyright(c) SEGA NETWORKS Corporation All RightsReserved. BusinessCompanySEGA Networks CompanyCopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.2

Q-QGross SalesThe performance of this fiscal year is in line with the initial plan supported by strongperformance of existing titles despite the decrease in the number of new titles due to strategic(billions of yen)delay in the release of new titles in current fiscal year.108.6FY2015Y-Y 150% c) SEGA NETWORKS Corporation All Rights Reserved.Q3Q40Q2Q1FY2013Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.Q2Q3FY2014Q4Q1Q2FY2015Q3Q4Forecast3

Further Acceleration of Growth in FY2016(billion of yen)108.67.887.78.0DomesticMarket7.16.76Overseas Market4.342.121.31.51.6Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Noah Pass0Q2Q3FY2013Q4Q1Q2Q3Q4FY2014Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.Q1Q2FY2015Q3Q4Forecast4

Domestic Market

Hit Rate (1) (Number of TOP 50 sales titles : Jan 2015)Multiple titles continue to be ranked in top 50Google play02App store(# of titles)46810A012112(#of 5E4F3Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.G2H2I2Source: App AnnieCopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.6

Hit Rate (2) Number of Hit Titles・Many existing hit titles are on a growing trend in this fiscal year・Release of many new titles in first half of next fiscal year is expected to further solidifyhit titlesBig hits(Over 500 million yen/month)SuccessHits(Over 100 million yen/month)Likely to be hits(Over 50 million yen/month)Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.FailureStalling titles(Over 30 million yen/month)Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.7

Key Title(CHAIN CHRONICLE) Re-accelerated due to major update in 2Q Anticipated to remain as one of the major key titles next fiscal yearonwardGross SalesCopyright(c) SEGA NETWORKS Corporation All Rights t(c) SEGA Networks Co.,Ltd. All Rights Reserved.8

Key Title(Puyopuyo!! Quest)・Showing stable growth since release with further acceleration anticipatednext fiscal year・Monthly sales have grown and stabilized at over 500 million yen.(Reached record high sales in Dec 2014. )・Achieved 11 million DLGross SalesCopyright(c) SEGA NETWORKS Corporation All Rights t(c) SEGA Networks Co.,Ltd. All Rights Reserved.9

Ange Vierge / SAKATSUKU Shoot!・Ange ViergeGross SalesAprMay Continued growth and had record high sales inDecember 2014 Monthly sales remained stable at 100 to 200million yen level TV animation version to be created and furthergrowth also anticipated as IPJunJulAugSepOctNovDecCY2014・SAKATSUKU Shoot! Continued further growth and had record highsales in December 2014 Further continuous growth anticipated in 2015Gross SalesCopyright(c) SEGA NETWORKS Corporation All Rights TSUKU Shoot!” is translated in English for the sake of convenience.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.10

Well-Developed Pipeline with New Titles 16 mainstay titles in this fiscal year will continued to be operated About 20 titles with console quality to be added for full preparation Over half of the 20 titles planned to be released in first half of next fiscal yearExistingNewDeveloped bySEGA Networks5 titles 10 titlesDeveloped bySEGA5 titles 5 titlesCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Co-Develop/PublishCopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.6 titles 5 titles11

Expand Domestic Pipeline with Business Collaboration・Investment in game developer, PLAY HEARTSecure production line with console 011Itsuki Fukuzato(President and Chief Executive Officer)Principal business: Development/operation of online gamesDevelopment/distribution of games formobile phonesDevelopment/operation of the InternetservicesCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.12

Overseas Market

Market ScaleMarket ScaleAsia 1 trillion yen Europe and U.S. 1 trillion yenRoom to growSouth East Asia South Asia South America Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.EMEACopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.14

Basic Strategy in the overseas marketUnique market Independent strategyIndependent management systemCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.15

Progress of Overseas ExpansionSonic Dash 98 million downloads on a cumulative basis Record high downloads in Sega Networks’ history*143.5 million downloads on cumulative basis for theSonic series aloneCHAIN CHRONICLE Released in 144 countries Asia: Launched in March 2014 Europe and the U.S.: Launched in December 2014Expansion of Local Developmental System Expanded local developmental system to 2 studios with 70Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.staff Developed original titles such as Crazy Taxi City Rush,Sonic Dash, Super Monkey Ball BounceCopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.16

Overseas Contents Production PipelineTarget threefold growth while enhancing qualityCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.FY2014Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.FY201517

Progress of Overseas ExpansionCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.18

Overseas Bases and Partner DevelopersHire Release several new titles next fiscal year Proactively increase personnelAcquire 100% owned subsidiary Representative title: Marvel Puzzle Quest Release of new titles in 1QIncubate Established in December 2014 Composed of experienced PC online game/home video gamedevelopers. Release new titles at end of next fiscal yearPartnerCopyright(c) SEGA NETWORKS Corporation All Rights Reserved. Capital and business partnership Distribution of new titles in Japan Further accelerate cooperation towards end of 2015Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.19

Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.20

Major Index①August 2013As of February 17, 201515 Developers88 DevelopersParticipating apps84395Total Users20 million89.1 millionParticipating Companies(subscription filed)MAUCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.-10.7 million/month*MAU: as of the end of January, 2015Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.21

Effect of Noah PassQuality Ecosystem Banner ads CVR Retention Rate Investment Efficiency (to LTV) ADNWAbout three times higher next dayretention rateAbout three times more than ADNW8 328Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Fee-basedreward adsCopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.1Fee-basedreward adsADNW22

Potential of Noah PassB to B Sharing 88CompaniesFreeOpen395 titlesEffectiveCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.89 millionusers23

Cross-Industry CollaborationMonthlysubscriptionService ACommerceAMonthlysubscriptionService BCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.Portal A24

Project 1Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.25

Cross-Industry Collaboration: Digital ComicsSending new usersSending trial users who readepisodes 1-3Subscription to fee-basedcomicsMutually sending usersover 200,000 timesSending new usersReturning dormant usersCopyright(c) SEGA NETWORKS Corporation All Rights Reserved. ムサヲ / 講談社Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.26

Cross-Industry Collaboration: Digital Comics Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.27

Project 2Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.28

Publication of Smartphone Game Users Kaitai ShinshoCategorizing smartphone users and smartphone game users by type7 types of smartphone game users7 types of smartphone game usersCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.29

Advance to Dash BoardDash lyticsCopyright(c) SEGA NETWORKSCorporation All Rights Reserved. AD productsCopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.30

Dashboard AnalysisCluster composition Chronological changesMarket analysis(Macro Title)Advertisement efficiencyAnalysisVisualization of media contactsby clusterAnalysis of effects of eventsheld in gamesCopyright(c)Analysis of In gameKPI SEGA NETWORKSCopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.Corporation All Rights Reserved.31

Dashboard AnalysisMedia contact ranking by Datasection Inc.BeveragesTV ProgramRank Name of programGenreRank Name of productGenre1AVariety1ASoft drink2BDrama2BEnergy drink3CDrama3CCanned coffee4DAnimation4DSnacks5ESports5ESoft drink6FNews6FIce cream7GDrama7GSnacks8H910Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Animation8HIce creamIInformational program9ISoft drinkJAnimation10JIce creamCopyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.32

Dashboard: Original ReportOriginal Report can’t be disclosed as itsdisclosure was limited to the meeting.Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.33

Dashboard: Original ServicesRetargeting adsAd networkOriginalservicesCopyright(c) SEGA NETWORKSReward adsCopyright(c) SEGA Networks Co., Ltd. All Rights Reserved.Corporation All Rights Reserved. Massads34

Business Partnership for Noah Pass (1)Strategic business partnership with Metaps Inc.Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.35

Business Partnership for Noah Pass (1)Strategic business partnership with Metaps Inc.Combination of dashboard and Metaps analyticsCollaboration in overseas developmentCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Collaboration among services developed by each companyCopyright(c) SEGA Networks Co., Ltd. All Rights Reserved.36

Business Partnership for Noah Pass (2)Strategic business partnership with Datasection Inc.Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.37

Business Partnership for Noah Pass (2)Strategic business partnership with Datasection Inc.Visualization of media contact rankingAcceleration of cross-industrial exchange of big data generated by dashboardCopyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co., Ltd. All Rights Reserved.38

DASH BOARDDecision ScienceBeta service will be provided fromApril 1, 2015Copyright(c) SEGA NETWORKS Corporation All Rights Reserved.Copyright(c) SEGA Networks Co.,Ltd. All Rights Reserved.39

Representative title: Marvel Puzzle Quest Release of new titles in 1Q Established in December 2014 Composed of experienced PC online game/home video game developers. Release new titles at end of next fiscal year Capital and business partnership Distribution of new titles in Japan