

Going forward, we will work to further expand sales of existing titles in overseas markets and actively develop global titles originating from domestic R & D. In order to increase the presence of the Company Group and realize further growth, we decided to reorganize the Company Group because of the necessity of integrating the two major business companies of the Company Group, SGC and SIC, in order to make reallocation of the domestic R & D resources of the Company Group more flexibly than ever before, thereby strengthening our competitiveness in global markets. We expect the global game market to continue expanding as new game platforms and business models become more widespread with the development of technologies and infrastructures such as 5G and cloud. On the other hand, the Digital Games area centered on mobile games in Japan performed below expectation and made it difficult to achieve the targets initially set for "Road to 2020". In Entertainment Contents Business, the Packaged Games area performed favorably, centered on expanding overseas markets, and we were able to build a structure capable of generating stable profits. In May 2017, the Company Group formulated a medium-term management plan called "Road to 2020" with the fiscal year ending March 2020 as the final year, and have been worked to increase corporate value. Background and objectives of the reorganization The merger will be conducted with SGC as the surviving company.ġ. (SIC) into SGC and to change the trade names of some of its consolidated subsidiaries at its Director of the Board meeting held today. (the Company) has determined to absorb and merge SEGA Games Co., Ltd. It is hereby notified that SEGA SAMMY HOLDINGS INC. Notice of mergers between consolidated subsidiaries and changes in trade names of certain consolidated subsidiaries due to organizational restructuring in Entertainment Contents Business Senior Executive Officer, Managing Director of Finance & Accounting Division (TEL: 03-6864-2400)
