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SAMMY Group Mission INTRODUCTION Mission Pyramid Shared Across the Group SEGA SAMMY has established a Mission Pyramid, shared across the Group, to guide the business activities of SEGA and SAMMY and other group companies. The Mission Pyramid consists of Value (Mindset/DNA), Mission (Raison d’être), and Vision (Ideal self). The Group is striving to ensure that all its employees clearly understand the Mission Pyramid and work together to enhance corporate value.

GROUP MISSION

Value (Mindset / DNA) “Always Proactive, “Creation is ” Always Pioneering”

Mission (Raison d’être) “Constantly Creating, Forever Captivating” —Making life more colorful—

Vision (Ideal self) Be a Game Changer SAMMY SEGA 2020 REPORT INTEGRATED 04 05 Strengths That Realize Growth 1 Strengths A Business Portfolio That Can Handle Changes in the Environment INTRODUCTION PARADISE CITY ©PARADISE SEGASAMMY Co., Ltd. Phoenix Seagaia Resort The Group has built up a balanced business portfolio spanning a wide range of entertainment domains, and All rights reserved. ©Phoenix Resort has grown its various business areas while seizing diverse profit opportunities and hedging risks. Although operations have been impacted by the recent pandemic, the Group is undertaking structural reforms and taking other measures to shift to a business structure that can adapt flexibly to changes in the environment.

Pachislot and Machines Business Pachislot Machines Pachinko Machines Planning of pachislot and pachinko game content for PCs and Gaming Machines Addressing a wide variety of needs with industry-leading development capabilities Resort Business In the Pachislot and Pachinko Machines Business, the Group is developing pachislot and pachinko Creating venues for communication through the development machines, games for PCs and smartphones that use pachislot and pachinko content, and gaming and operation of domestic and overseas resort facilities equipment for casinos. Drawing on industry-leading development capabilities, the Group supplies Having started with Phoenix Seagaia Resort, one of ’s preeminent resort complexes located products that meet the needs of a diverse fan base. We are working to develop and market along the coast of Miyazaki Prefecture, SEGA SAMMY has continued to offer out-of-the-ordinary machines with innovative gameplay that will help revitalize the market for both pachislot and experiences that move the heart through the development and operation of South Korea’s first pachinko machines. integrated resort, PARADISE CITY, which opened in April 2017. Through managing these facilities, the Group is also gaining the expertise needed to enter the domestic IR business.

P Psalms of Planets Eureka HI-EVOLUTION ZERO ©2017 /Project EUREKA MOVIE Pachislot DISC UP © Entertainment Inc. ©Sammy ©Sammy ©Sammy

Entertainment Contents Business Consumer Games Amusement Machine Sales

Amusement Center Operations Animation and Toys Total War: THREE KINGDOMS the Animation ©SEGA ©SEGA. ©SEGA/SAKURA PROJECT Developing a wide range of business centered on consumer games The Group is aiming to grow its business by leveraging SEGA’s outstanding development capabili- ties, which have helped to launch innovative products across multiple areas. We are also working to maximize profits by expanding content globally, mainly in the Consumer Games area, such as games for smartphones and PCs.

SEGA Ikebukuro GiGO ©SEGA ENTERTAINMENT Co., Ltd. LEGENDS ReVIVE WHO are YOU? Real Rescue © & Tetsuo Hara/ 1983, Designed &© 2019 Worlds Apart Ltd. All Rights Reserved. Approved No. GC-218 © ©SEGA

Football Manager 2020 Fate/Grand Order Arcade SEGA SAMMY HOLDINGS SAMMY SEGA © Limited 2019. ©TYPE-MOON / 2020 REPORT INTEGRATED Published by SEGA Publishing Europe Limited. FGO ARCADE PROJECT 06 07 Strengths That Realize Growth 2 Strengths

Sonic the series INTRODUCTION Hit-Making Power “Innovative DNA” , SEGA’s iconic IP, appeared in 1991 as a Throughout its history, the SEGA SAMMY Group has produced numerous hits. These kinds of hits become high-speed in which Sonic runs through game our IPs* and they are not limited to a single medium, but spread across a wide range of fields such as pachislot, stages, passing through various ups and downs and loops at the speed of sound. This innovative IP continues to win the hearts of pachinko, consumer games, amusement machines, animation, and toys. There is no end to the SEGA SAMMY users around the world. The live-action movie Sonic the Hedgehog, Group’s journey to discover the next big hit. released in 2020, was a huge hit worldwide.

* IP: Intellectual property Released in 2001 Released in Released in 2017 Released in 2019

Over billion (Units and downloads*) (Full games and F2P total) * Including F2P title downloads

©SEGA Sonic Mania ©SEGA ©SEGA

Released in 2005 Released in 2020 Beast King Pachislot Beast King ©Sammy Oujya no kakusei ©Sammy Beast King series The first Beast King title was released in 2001. This was the machine that set off the AT* machine boom, which is a central chapter in the history of Approx. pachislot machines. With its “Savannah Chance,” the innovative, medal-increasing gameplay that overturned conventional concepts of pachislot, Beast King attracted a wide range of fans and became a huge hit, generating sales of 140,000 units. Subsequent series have units : Ryu ga Gotoku continued to evolve and continue to attract users even today. Cumulative unit sales ©SEGA ©SEGA * Models equipped with assist time functions. (Pachislot and pachinko machines and amusement machines total) Approx. million (Units) (Full games total) Ryu ga Gotoku series Approx. Hokuto No Ken series The IP that showcases “SEGA innovation,” Ryu ga Gotoku introduced a novel concept to the The initial Pachislot Hokuto No Ken machine boasts the largest sales volume ever gaming scene in 2005, and has been a huge hit ever since, with a cumulative total of 14 million in the pachislot market, with cumulative sales of approximately 620,000 units. package sales to date. The series has garnered tremendous support due both to its innovative million units Including pachinko machines, the total number of machines sold in the series is method of having real actors appear in its games, just like in a movie or drama, and to its (Pachislot and pachinko machines total) about 2.97 million, leading the pachislot and pachinko machine market. unique gameplay. ©SEGA

Expanding profit opportunities by Four IP Strategies

Released in 2003 Released in 2019 Released in 2008 Released in 2019 maximizing the value of the Group's IP Rich IP lineup of each studio Extensive library SEGA SAMMY is carrying out an IP strategy centered on four categories: existing IP, new IP, Grow Leverage revived IP, and external IP. By fully leveraging the IP existing IP revived IP lineup, the Group will expand profit opportunities

and maximize IP value, which will lead to sustainable ©SEGA growth in corporate value. ©SEGA

Create Utilize new IP external IP ©. ©SEGA. All rights reserved. Pachislot Hokuto No Ken Pachislot Hokuto No Ken Tenshou Pachinko CR Hokuto No Ken P Hokuto No Ken 8 Haou ©Buronson & Tetsuo Hara ©Buronson & Tetsuo Hara/NSP 1983, ©1983 Buronson & Tetsuo Hara ©Buronson & Tetsuo Hara/NSP 1983, SEGA SAMMY HOLDINGS SAMMY SEGA ©Sammy ©NSP 2007 Approved No.YAF-420 ©NSP2007, Approved No. SAE-307 ©NSP 2007 Approved No.YSE-020 Creation of original IP ©2017 BONES/Project EUREKA MOVIE 2020 REPORT INTEGRATED ©Sammy ©Sammy ©Sammy ©BANDAI NAMCO Entertainment Inc. Acquisitions of ©Sammy 08 development studios 09 Strengths That Realize Growth 3 Strengths IP Portfolio A Robust Financial Foundation INTRODUCTION

Pachislot and Pachinko Consumer Games Amusement Machines Toys, etc. Many of the Group’s businesses are “hit-making businesses,” in which continuous investment in development Machines Examples of acquired IP is required to generate hit titles, and the presence or lack of a hit has a significant impact on earnings. Financial First Total IP title appearance Multifaceted rollout Cumulative unit sales / downloads editions stability and cash flow generated by the Pachislot and Pachinko Machines Business and other segments year underpin stable development investment, and are also the foundation that enable the Group to continue doing Shin Approx. million (Units and downloads*2) 1992 — 30 17.4 series (Full games and F2P total) business in pursuit of future growth, even amid harsh operating conditions.

Persona 1996 — 18 Approx.13.1 million units series Equity Ratio (%) Total War 2000 — — — — More than 34.3 million (Units and downloads) series 65.0 65.1 64.2 59.0 55.3 2004 — — — — More than 22.0 million (Units and downloads) series

Examples of IP developed in-house First Total IP title appearance Multifaceted rollout Cumulative unit sales / downloads editions ©Sammy year

Sonic the Hedgehog More than billion (Units and downloads*2) A robust financial foundation enabling 1991 — 1.14 series (Full games and F2P total) steady investment in development Approx. 32.0 million (Units and downloads*2/IDs) 2016 2017 2018 2019 2020 E 1991*1 — (Full games and F2P, AM-registered IDs total series R&D Expenses and Content Production Expenses (Total for registrations after IP acquisition)) Net Cash (Billions of yen) Sakura Wars Approx. million units 1996 — — 4.1 series (Full games and F2P total) (Billions of yen)

96.4 Ryu ga Gotoku Approx. 14.0 million (Units and downloads) 2005 — 115 89.5 series (Full games total) 83.2 71.8 Approx. thousand units 1989 — 14 560 series (pachislot and pachinko machines and amusement machines total) 56.6

Beast King Approx. thousand units 2001 — 15 510 series (pachislot and pachinko machines and amusement machines total)

PHANTASY STAR 37.7 1987 — — Approx. 5.50 million users*3 48.1 series 44.9 49.9 59.4

CHAIN CHRONICLE Approx. 22.0 million (Units and downloads*2) 2013 — — 4 2016 2017 2018 2019 2020 series (Full games and F2P total) E 20.0 18.8 17.3 17.0 17.4 *1 SEGA CORPORATION acquired the rights in 1998. Figures for cumulative unit sales are the totals for titles that SEGA sold after acquiring the rights. Debt-to-equity ratio 2016 2017 2018 2019 2020 *2 Including downloads of free-to-play titles *3 Domestic total for ONLINE 2 (times) Pachislot and Pachinko Machines Business Examples of IP licensed from third parties Entertainment Contents Business 0.45 First Total IP title appearance Multifaceted rollout Cumulative unit sales / downloads editions year 0.34 SEGA feat. Approx. 6.4 million (Units and downloads) Project 2009 — 64 0.28 (Full games and F2P total) 0.26 series 0.25

Hokuto No Ken Approx. million units 2002 34 2.97 series (pachislot and pachinko machines total)

SOUTEN-NO-KEN Approx. thousand units 2009 — 13 480 ©SEGA series (pachislot and pachinko machines total) SEGA SAMMY HOLDINGS SAMMY SEGA 2020 REPORT INTEGRATED

© SEGA / © , ING. www.piapro.net 2016 2017 2018 2019 2020 10 11 SEGA SAMMY Group Value Creation Process Creation of Social Value

The Group will continue to provide value to all of its stakeholders by implementing effective strategies that Environment INTRODUCTION take advantage of the broadly applicable strengths it has cultivated over the years. Environmental Protection and Lower Power Consumption Lessening of environmental impact in Addressing Needs to Social Realize a Sustainable Society the manufacturing process Recycling Strengths That Realize Growth Reuse P.52 Addiction Countermeasures to Addiction

“Always Proactive, Always Pioneering” Working together with the industry to raise awareness SEGA SAMMY initiatives to prevent addiction

P.53 A Business Portfolio That Hit-Making Power A Robust Financial and Enhance Corporate Value Can Handle Changes “Innovative DNA” Foundation People Reforming Working Styles in the Environment and Creating Pleasant Working Environments Enhancing job satisfaction Increasing diversity P.06 P.08 P.11 Eliminating inequality P.54 “Creation is Life” Value Shared Across the Group Constantly Creating, Products and Services Innovative Product Development, Higher Product and Service Quality, Safe and Secure Products Forever Captivating OUTPUTS Pachislot machine sales: 123,000 units OUTCOME Pachinko machine sales: 104,000 units —Making Life More Colorful— Full game sales: 28.57 million units Phoenix Resort visitors: 839,000 guests (FY2020 results)

Pachislot and Pachinko Entertainment Resort Business P.55 Machines Business Contents Business

P.32 P.38 P.46 Creation of Economic Value Shareholders and Investors Generating profit and shareholder returns Effective Strategies Net sales: ¥366.5 billion Operating income: ¥27.6 billion Total cash dividends paid: ¥9.3 billion Cash dividends per share: ¥40 Corporate governance as a foundation for business (FY2020 results) P.62

SEGA SAMMY HOLDINGS SAMMY SEGA Value creation cycle VALUE GENERATION 2020 REPORT INTEGRATED 12 13