August 7, 2024
(Translation)

Consolidated Financial Results
for the Three Months Ended June 30, 2024 (Japanese GAAP)
Name of Company
Listing
Code number
URL
Representative

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Inquiries

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TEL

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SEGA SAMMY HOLDINGS INC.
Tokyo Stock Exchange Prime6460
https://www.segasammy.co.jp/en/
Haruki Satomi
President and Group CEO, Representative Director
Yoichi Owaki
Executive Vice President, Executive Officer
Managing Director of Finance & Accounting Division+81-3-6864-2400

Scheduled date to commence dividend payments
Preparation of supplementary material on quarterly financial results
Holding of quarterly financial results briefing

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Yes
Yes (for institutional investors)(Amounts below one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 - June 30, 2024)(1) Consolidated Operating Results(Percentage represents changes from the prior period)
Profit attributable
Net sales
Operating income
Ordinary income
to owners of parent
Millions
Millions
Millions
MillionsThree months ended%%%%of yenof yenof yenof yenJune 30, 2024
104,755(3.2)
19,341(15.0)
21,830(5.5)
24,52542.1
June 30, 2023

108,259(Note) Comprehensive income
Three months ended June 30, 2024
Three months ended June 30, 2023

Three months ended
June 30, 2024-

22,765: ¥38,995 million: ¥26,017 million

Net income
per share
Yen

Net income pershare (diluted)
Yen

113.54113.10-23,096442.7

17,259446.4(49.9%)(233.3%)June 30, 2023
78.19
77.71
(Note) Due to the "Changes in method of presentation" for the three month ended June 30, 2024, the reclassified figures
for net sales and operating income have been retroactively applied, and the percentage change from the same period in
the prior fiscal year is not shown.
(2) Consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen

June 30, 2024

665,210

390,988

58.6

March 31, 2024

653,994357,702

54.6

As of

(Reference) Shareholders’ equity
As of June 30, 2024
: ¥390,077 million
As of March 31, 2024
: ¥356,919 million―1―

Equity ratio%

2. Cash Dividends
Cash dividends per share

Year ended
March 31, 2024
Year ending
March 31, 2025
Year ending
March 31, 2025 (plan)

First quarter

Second quarter

Third quarter

Yen

Yen

Yen

-

Year-end

Total

Yen

Yen

23.00

-

27.00

50.00

25.00

-

25.00

50.00

-

(Note) Revision to the forecast of cash dividends most recently announced: No
3. Forecast of Consolidated Financial Results for the Year ending March 31, 2025
(April 1, 2024 - March 31, 2025)(Percentage represents changes from the prior year)
Net sales

Operating income

Ordinary income

Profit attributable Net income
to owners of parent per share

Millions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yenFull-year
445,000(5.1)
45,000(22.2)
48,000(19.7)
39,00018.0
180.54(Note) 1. Revision to the forecast of operating results most recently announced: No
2. Due to the changes in the method of presentation from the first quarter of the current fiscal year, the percentagechange in net sales and operating income is based on a comparison with retroactively adjusted figures.
4. Other(1) Changes in significant subsidiaries during the period: Yes
New : Company name Exclusion : 1 Company name : Phoenix Resort Co., Ltd.
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatements
1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2. Changes in accounting policies due to other reasons: No
3. Changes in accounting estimates: No
4. Restatements: No(4) Number of issued shares (common stock)
1. Number of issued shares at the end of the period (including treasury stock)June 30, 2024
: 241,229,476
March 31, 2024
: 241,229,476
2. Number of treasury stock at the end of the period
June 30, 2024
: 25,407,391
March 31, 2024
: 25,214,788
3. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For Three months ended June 30, 2024 : 216,003,561
For Three months ended June 30, 2023 : 220,750,432(Note) Auditing procedures reviewed for this document by certified public accountants or accounting auditors: No―2―

(Note)- This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between
this translated document and the Japanese original, the original shall prevail.
- The forward-looking statements, such as results forecasts, included in this document are based on information available to the
SEGA SAMMY HOLDINGS INC. (the Company) at the time of the announcement and assumptions considered reasonable, anddo not purport to be a promise by the Company to achieve such results. Actual results could differ materially, depending on a range
of factors. For the assumptions prerequisite to the results forecasts and the points to be noted in the use of the forecasts, please see"Forecast of Consolidated Operating Results" on page 8.
- The Company plans to hold a briefing on financial results for institutional investors on August 7, 2024. The presentation materials
to be used on the day will be posted on TDnet and the Company's website in advance, and the details of the briefing and the content
of the explanation (video and audio) will also be posted on the Company’s website.

―3―Operating Results and Financial Position(1) Operating results for the three months ended June 30, 2024 (April 1, 2024 - June 30, 2024)■ Overall highlights
In the first quarter for the fiscal year ending March 31, 2025, the sales and profit fell from the same period in the prioryear when "Smart Pachislot Hokuto No Ken" was a huge hit. The sales mainly generated by new Full Games and some
repeat titles of consumer area in the Entertainment Contents Business and generated by titles in the Pachislot and Pachinko
Machines Business showed steady performance. As a result, the decrease in ordinary income from the same period in theprior year was limited to ¥1.2 billion, a better-than-expected start. Moreover, adjusted EBITDA, which the Company
adopted as the management indicator since the current fiscal year, reached to ¥25.8 billion with exceeding that from thesame period in the prior fiscal year, which is ¥24.7 billion. In addition, the Company recorded an extraordinary incomeof approximately ¥8.4 billion by transfer of the shares of Phoenix Resort Co., Ltd., and the profit attributable to ownersof the parent resulted in an increase from the same period in the prior year.
The Company also believes that the acquisition of Stakelogic B.V. press released in late July will contribute to the speedup for the growth of the Group's Gaming Business which the Company aim to establish as the third business pillar. As thedate of acquisition closed is estimated in the first quarter of the following fiscal year, the impact on profits in the current
fiscal year immaterial.
■ Highlights by segment« Entertainment Contents »Both sales and profit increased for the three months ended June 30, 2024, from the same period in the prior year. Sales
growth was due primarily to steady performance by new Full Games and repeat titles in the consumer area. For Full Game,the Group released "Shin Megami Tensei Ⅴ Vengeance", leading to sales of 500 thousand copies during the first threedays from the released day in worldwide. As repeat titles, "Unicorn Overlord" released in the prior year and "Persona 5
Royal (Remaster)", released in the fiscal year ended March 31, 2023, showed the favorable performance. The increase inprofit from the same period in the prior year was also due to the inclusion of Rovio Entertainment Corporation, which
was acquired in August, 2023. Although the impact on profits caused by the amortization of goodwill, other intangibles,
etc., was immaterial, Rovio Entertainment Corporation contributed to the Group's profit with its post amortization profit.
In the animation area, the Group recorded distribution and royalty income from the "Sonic" series film productions,
resulting in a significant increase over the same period of the prior fiscal year. In addition, as the importance of thisinitiative has increased with the promotion of transmedia development and further expansion of Pillar's mainstay IP under
the new Medium-term Plan, the method of presentation has been changed※1 and revenues related to film production ofthe "Sonic" series are included in sales from this fiscal year.※2
In the amusement and toy area, although the impacts of raw material price hikes have been caused by the depreciationof the Japanese yen, the Group has sold prize and regular toy products with steady performance from the same period in
the prior year.
※1 Distribution revenue by Sonic movie had been recorded as a non-operating profit until the prior fiscal year.
※2 The reclassified figures for net sales and operating income have been retroactively applied for the prior fiscal year..
Going forward, in consumer area, the Company also expects the repeat sales and existing F2P titles to establish solid
performance basis throughout the fiscal year. In addition, the Group plans to release the new Full Games such as"Metaphor: ReFantazio", "SONIC X SHADOW GENERATIONS", and a new F2P title, "Sonic Rumble", for the global
F2P market in and after the third quarter of this fiscal year. The Company expects the peak of the current fiscal year’s
performance to occur in the second half of the year through the set up of transmedia strategy, which the Group's IP
expansion and profit increase consisted of releasing new games combining animation, and merchandising.
※ For new released titles, please see "Results Presentation Q1 for the fiscal year ending March 31, 2025 on Page 16 and17"https://www.segasammy.co.jp/en/ir/library/―4―« Pachislot and Pachinko Machines »Both sales and profit fell for the three months ended June 30, 2024, from the same period in the prior year. The main
factor was a backlash from the hit "Smart Pachislot Hokuto No Ken" in the prior fiscal year. However, strong sales of new
titles released during the first quarter of the current fiscal year, such as "Smart Pachislot Psalms of Planets Eureka Seven
4 HI-EVOLUTION, and "Smart Pachislot Golden Kamuy", etc., and additional sales of titles released in the prior fiscal
year, such as "P Hokuto No Ken Tomo LT", etc., resulted in a better-than-expected start.
Going forward, the Group continuously sells both pachislot and pachinko machines. In the second quarter, the Groupplans to sell a featured title, "e Hokuto No Ken 10" (installed in August, 2024), as the Group's first smart pachinko
machines, and new multiple titles such as "Smart Pachislot Shin Hokuto Muso", etc. with expanding the marketing shares.
※ For new released titles, please see "Results Presentation Q1 for the fiscal year ending March 31, 2025 on Page 21"
https://www.segasammy.co.jp/en/ir/library/« Gaming Business »At the start of the new Medium-term Management Plan released in May 2024, the Group created the new "Gaming
Business". In Gaming Business, SEGA SAMMY CREATION INC. ("SSC") develops, manufactures, and distributes
gaming devices, and PARADISE SEGASAMMY Co., Ltd. (affiliate accounted for using the equity method), which is a
joint venture with Paradise Co., Ltd. in South Korea, develops and operates the integrated resort facility, "PARADISE
CITY".
In November 2023, with the aim of entering the online gaming market, especially the U.S. iGaming market expected tocontinuous grow in the future, the Company concluded an agreement to acquire GAN Limited ("GAN"), which operates
a B2B platform business mainly for U.S. casino operators. In July 2024, the Company also announced the conclusion ofan agreement to acquire Stakelogic B.V. ("Stakelogic"), a Netherlands-based company that develops B2B iGaming
content supplier business. The company is proceeding to complete the acquisition.
Sales increased from the same period in the prior year, and in profit basis, ordinary income turned positive. Gaming
equipment sales were robust, with "Railroad Riches™", a video slot machine compatible with the new "Genesis Atmos™"
cabinet that was introduced in U.S.A. in January 2024, recording high operating rates and receiving high evaluations fromthe market. In "PARADISE CITY", the casino sales have remained strong with the drop amounts (purchased amount ofchips by customers at the table) of Japanese VIP’s maintained at a high level.
*PARADISE SEGASAMMY Co., Ltd. is posted 3 months delay due to the fiscal year ended in December.
Going forward, the Group will further promote sales of gaming equipment by continuing to introduce gaming equipmentthat will receive high evaluations from the market in North America and Asia, increasing the number of machines installed,developing new customers, and acquiring new licenses. As for "PARADISE CITY", the Company expects equity method
accounting will contribute to profits led by casino sales generated by highly maintained Japanese VIPs.
Under the New Medium-term Plan, GAN will become a gaming service provider with comprehensive range of services
by adding Stakelogic's unique content to its own B2B platform business, which is one of its strengths. By combining these
services with SSC's customer network, the Group will create synergies and work to establish the gaming business as theCompany's third business pillar.

―5―■ Consolidated Financial Results for the Three Months Ended June 30, 2024
(Unit: Millions of yen)
Changes from the prior period

Three months ended
June 30, 2023

Three months ended
June 30, 2024

Net Sales

108,259

104,755(3,504)(3.2)

Operating income

22,765

19,341(3,424)(15.0)

Ordinary income

23,096

21,830(1,266)(5.5)

Profit attributable toowners of parent

17,25924,525

7,266

42.1

Adjusted EBITDA※1

24,75025,8991,148

4.6

Net income per share

78.19

113.54

35.35

45.2

Items
※1 Adjusted EBITDA

amount%Breakdown
Ordinary income + Interest expenses + Depreciation and amortization ±Adjustement items※2+ Extraordinary income by business※2 Adjustment items:- Extraordinary losses of business (impairments, title write-down, etc.)- Profit attributable to non-controlling interests+ Goodwill and trademark right amortization associated with M&A

Overview by segment is as follows.
At the start of the current fiscal year, the Group changed the reporting segments, which are "Entertainment Contents
Business", "Pachislot and Pachinko Machines Business", and "Gaming Business" instead of former segments,"Entertainment Contents Business", "Pachislot and Pachinko Machines Business", and "Resort Business". For details,
please see "Changes in reporting segments" in "SEGMENT INFORMATION".
« Entertainment Contents »(Unit: Millions of yen)
Changes from the prior period

Three months ended
June 30, 2023

Three months ended
June 30, 2024

Sales to third party

54,16372,585

18,42234.0

Inter-segment sales andtransfers

125

147

-

-

Total net sales

54,28872,73318,44434.0

Ordinary income

4,443

12,509

8,066

181.5

Adjusted EBITDA

5,027

15,702

10,675212.4―6―amount%« Pachislot and Pachinko Machines »(Unit: Millions of yen)
Changes from the prior period

Three months ended
June 30, 2023

Three months ended
June 30, 2024

50,50828,891(21,617)(42.8)

13

16

-

-

Total net sales

50,522

28,907(21,615)(42.8)

Ordinary income

21,716

10,715(11,000)(50.7)

Adjusted EBITDA

22,327

11,466(10,861)(48.6)

Sales to third party
Inter-segment sales andtransfers

amount%« Gaming Business »(Unit: Millions of yen)Three months ended
June 30, 2023

Three months ended
June 30, 2024

Changes from the prior periodamount%Sales to third party

363

680

317

87.3

Inter-segment sales andtransfers

3

5

-

-

Total net sales

366

686

319

87.1

Ordinary income

(219)

917

1,136

-

Adjusted EBITDA

(217)

756

973

-

(2) Finanial positions as of June 30, 2024
(Assets and liabilities)
Total assets as of the end of the fiscal year ended June 30, 2024 increased by ¥ 11,215million from the end of the priorfiscal year to ¥665,210 million.
Current assets increased by ¥6,596 million from the end of the prior fiscal year. This was attributable to increase in
securities, despite decreases in notes and accounts receivable and cash and cash deposits.
Noncurrent assets increased by ¥4,619 million from the end of the prior fiscal year. This was attributable to increases
in goodwill, trademark right, and investment securities, despite decrease in property, plant and equipment by exclusionof Phoenix Resort Co., Ltd. to be consolidated.
Total liabilities as of the end of the fiscal year ended June 30, 2024 decreased by ¥22,070 million from the end of theprior fiscal year to ¥274,221 million. This was attributable to decreases in income tax payable and provision for bonuses.
(Net assets)
Net assets as of the end of the fiscal year ended June 30, 2024 increased by ¥33,286 million from the end of the priorfiscal year to ¥390,988 million. This was attributable to recording of profit attributable to owners of parent, to increasing
foreign currency translation reserve, and other factors, despite decreases in shareholders’ equity due to cash dividends.
(Financial ratio)
The current ratio at the end of the current fiscal year ended June 30, 2024 increased by 57.8 percentage points from theend of the prior fiscal year to 349.3%.
The equity ratio at the end of the current fiscal year ended June 30, 2024, increased by 4.0 percentage points from theend of the prior fiscal year to 58.6%.

―7―

(3) Forecast of Consolidated Operating Results
No changes will be made to the forecast of consolidated financial results for the fiscal year ending March 31, 2025,
announced on May 10, 2024.

―8―

QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS
SEGA SAMMY HOLDINGS INC.
QUARTERLY CONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2024 AND JUNE 30, 2024
(Unit: Millions of yen)
Prior year
(As of March 31, 2024)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets―9―

Current period(As of June 30, 2024)

211,715
54,2698,095
14,37145,88821,501
39,605(443)
395,003

195,137
44,93825,847
17,311
51,36022,76944,415(180)
401,599

18,64741,45160,09914,011
36,77750,78830,26447,574
14,442
92,28134,30649,903
14,87599,08549,85856,941(189)
106,610
258,991
653,994

52,34461,565(173)
113,736
263,610665,210

SEGA SAMMY HOLDINGS INC.
QUARTERLY CONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2024 AND JUNE 30, 2024
(Unit: Millions of yen)
Prior year
(As of March 31, 2024)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term borrowings
Provision
Net defined benefit liability
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets―10―

Current period(As of June 30, 2024)

26,08522,507
10,626
13,3981
62,876
135,494

28,86022,507
5,539
5,232
52,840114,980

10,000124,500
430
5,666
2,659
17,540160,797296,292

10,000124,500
17
3,810
2,285
18,628159,241
274,22129,953
69,263
281,208(47,151)
333,274

29,953
69,263299,901(47,154)351,964

3,056
(230)
(1,109)20,388
1,540
23,645751
30
357,702653,994

3,386
99(1,109)34,388
1,348
38,113877
34
390,988665,210

SEGA SAMMY HOLDINGS INC.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2024
(Unit: Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Gain on investments in partnership
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in partnership
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and affiliates
Other
Total extraordinary income
Extraordinary losses
Loss on sales of noncurrent assets
Impairment loss
Loss on valuation of shares of subsidiaries and affiliates
Loss on sales of shares of subsidiaries and affiliates
Loss on business restructuring
Other
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit(Breakdown)
Profit attributable to owners of parent
Profit attributable to non-controlling interests―11―

Prior period
From April 1, 2023
To June 30, 2023
108,259
58,56949,69026,924
22,765Current period
From April 1, 2024
To June 30, 2024
104,755
54,45450,30130,96019,341

356
52
72
539
178
1,201

686
81
990
251
750
434
3,194

78
228
426
135
869
23,096

417
154
134
705
21,830

71
71

0
39
8,488
357
8,886

0
33
49
569
3
656
22,512
4,707
543
5,250
17,261

0
204
78
283
30,433
5,242
662
5,905
24,527

17,2592

24,5252

SEGA SAMMY HOLDINGS INC.
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2024
(Unit: Millions of yen)
Prior period
From April 1, 2023
To June 30, 2023
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―12―

Current period
From April 1, 2024
To June 30, 2024

682
8,670
(49)

330
323
13,206
(192)

(547)

799

8,755
26,017

14,46738,99526,01538,99222[Notes](Notes on assumptions for going concern)
Not applicable.
(Notes on significant changes in shareholders' equity)
Not applicable.
(Special accounting treatment applied in preparing quarterly consolidated financial statements)(Tax expense calculation)
Taxes are calculated by reasonably estimating the effective tax rate after application of tax effect accounting to income
before income taxes for the fiscal year and multiplying the quarterly income before income taxes by such estimatedeffective tax rate. However, a legally designated effective tax rate will be applied if such tax expenses are found to bevery unreasonable after calculation based on the relevant estimated effective tax rate.
(Changes in accounting policies)(Application of the Accounting Standard for current income taxes)
The Accounting Standard for Current Income Taxes (ASBJ Statement No.27, October 28, 2022; hereinafter referred toas the “Revised Accounting Standard 2022”), etc. have been adopted from the beginning of the first quarter ended June30, 2024.
The amendment to categories in which current income taxes should be recorded (taxes on other comprehensive income)follows the transitional treatment prescribed in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022
and the transitional treatment prescribed in the proviso (2) of paragraph 65-2 of the Implementation Guidanceo n Tax
Effect Accounting (ASBJ Guidance No.28, October 28, 2022; hereinafter referred to as the “Revised Implementation
Guidance 2022”). This change in accounting policies has no impact on the quarterly consolidated financial statements.
For the amendment related to the revised accounting treatment for consolidated financial statements when gains orlosses on sale of shares in subsidiaries resulting from transactions between consolidated companies were deferred fortax purposes, the Revised Implementation Guidance 2022 has been adopted from the beginning of the first quarter ended
June 30, 2024. This change in accounting policies was applied retrospectively. Hence, the quarterly consolidated
financial statements for the same quarter of the prior fiscal year and the consolidated financial statements for the priorfiscal year have been modified retrospectively. This change in accounting policies has no impact on the quarterly
consolidated financial statements for the same quarter of the prior fiscal year and the consolidated financial statements
for the prior fiscal year.
(Changes in method of presentation )Distribution income related to investments in film production in the U.S. has been recorded as "net sales" since thefirst quarter of current fiscal year although it was posted in "equity in earnings of affiliates" under "non-operating
income".
This change is due to the increased monetary importance of distribution income related to investments in film
production, as well as the increased importance of the business in the new mid-term plan, including the strengtheningof the transmedia strategy and further expansion of pillars.
To reflect this change in presentation, the quarterly consolidated financial statements for the first quarter of theprior fiscal year have been reclassified.
As a result, ¥209 million recorded in "equity in earnings of affiliates" under non-operating income in the quarterly
consolidated statements of income and comprehensive income for the first quarter of the prior fiscal year has been
reclassified as "net sales".

―13―

SEGMENT INFORMATION
1. Prior period (From April 1, 2023 to June 30, 2023)
Information on the amounts of net sales, income (loss) by each reporting segment(Unit: Millions of yen)
Reporting segment
Entertainment
Contents

Subtotal

Pachislot
Pachinko
Machines

GamingAmount in
Adjustment
consolidated financial(Notes)statements

Net sales(1) Sales to third parties

54,16350,508363

105,035

3,224

108,259(2) Inter-segment sales andtransfers

125

13

3

143

(143)

-

Total

54,28850,522

366

105,178

3,081

108,259

Segment income (loss)

4,443

21,716(219)

25,940(2,843)23,096(Notes) 1. Adjustments of ¥ 3,224 million for sales to third parties represents sales that do not belong to any business segments.
2. Adjustment to segment income (loss) of ¥(2,843) million includes loss of ¥(75) million that do not belong to any businesssegments, elimination of inter-segment transactions of ¥2 million, and general corporate expenses of ¥(2,770) million which
are not allocated to each reporting segment. General corporate expenses are mainly consisted of the expenses of the Groupmanagement incurred by the Company.
3. Adjustment has been made to segment income (loss) and ordinary income of the quarterly consolidated statements ofincome and comprehensive income.

2. Current period (From April 1, 2024 to June 30, 2024)
Information on the amounts of net sales, income (loss) by each reporting segment(Unit: Millions of yen)
Reporting segment
Entertainment
Contents

Subtotal

Pachislot
Pachinko
Machines

GamingAmount in
Adjustment
consolidated financial(Notes)statements

Net sales(1) Sales to third parties

72,58528,891

680

102,157

2,598

104,755(2) Inter-segment sales andtransfers

147

16

5

169

(169)

-

Total

72,73328,907686

102,326

2,429

104,755

Segment income (loss)

12,50910,715917

24,142(2,312)

21,830(Notes) 1. Adjustment of ¥2,598 million for sales to third parties represents sales that do not belong to any business segments.
2. Adjustment to segment income (loss) of ¥(2,312) million includes losses of ¥(197) million that do not belong to any businesssegments, elimination of inter-segment transactions of ¥0 million, and general corporate expenses of ¥(2,115) million
which are not allocated to each reporting segment. General corporate expenses are mainly consisted of the expenses of theGroup management incurred by the Company.
3. Adjustment has been made to segment income (loss) and ordinary income of the quarterly consolidated statements of income
and comprehensive income.
4. Detailed in "Changes in method of presentation", distributed income related to investments in film production in the U.S.,
which was previously posted in "equity in earnings of affiliates" under "non-operating income", is reclassified in "net sales"from the first quarter of the current fiscal year. To reflect this change in presentation, segment information for the first quarterof the prior fiscal year has been reclassified. As a result, "Net sales" of "Entertainment Contents Business" increased ¥209
million in the first quarter of the prior fiscal year, but there is no impact on segment income.

―14―

3. Changes in reporting segments(Changes in reporting segments)
At the start of the new Medium-term Management Plan, "WELCOME TO THE NEXT LEVEL!", the Group implemented theabolition of the "Resort Business" and creation of a new "Gaming Business". This was implemented from the perspective of thestrategies and business portfolio of the New Mid-term Plan. The newly established "Gaming Business" consolidates overseas online
gaming-related businesses, operation of existing integrated resorts, and development and manufacture of casino machines. As a result,"Entertainment Contents Business", "Pachislot and Pachinko Machines Business", and "Gaming Business" will become reportablesegments.
Segment information for the first quarter of the prior fiscal year is presented based on the reclassified method after the change.

(Notes to cashflow statements)
Quarterly consolidated statements of cashflow statement for the first quarter of the current fiscal year have not been prepared.
Depreciation and amortization (including amortization related to intangible assets excluding goodwill) and amortization of goodwill
for the first quarter of the current fiscal year are as follows.
(Unit: Millions of yen)
For the three months ended
For the three months ended
June 30, 2023
June 30, 2024
Depreciation and amortization expenses

2,680

3,441

480

672

Amortization expenses of goodwill―15―