[the GROUP]

| Management Resources Creating Entertainment Value

Human Capital

The SEGA SAMMY Group’s personnel are brimming with ideas for tomorrow’s entertainment and have the creativity and drive to make them a reality. We view human capital as our most important management resource for realizing continuous growth. With this in mind, we provide workplaces conducive to heightening motivation and maximizing diverse talents.

Optimization of Personnel Portfolio Consolidated Employee Numbers Until around fiscal 2007, consolidated employee Employees Restructuring Restructuring numbers trended upward as M&As in Japan and 9,000 7,888 overseas added consolidated subsidiaries to the 7,734 7,665 7,472 7,008 7,500 6,856 6,700 6,416 6,236 Group. From fiscal 2008—when the Group recog- 6,000 nized an operating loss—consolidated employee 6,000 5,407 numbers began to decline. In particular, employees 4,500 in the Amusement Center Operations segment decreased steeply because the segment revised 3,000 its amusement center portfolio as part of business 1,500 restructuring aimed at improving the segment’s 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 profitability. Consequently, we have made prog- FYE ress toward rightsizing the Amusement Center Operations segment’s workforce. Employee Numbers by Segment From fiscal 2012, however, consolidated emplo- Employees yee numbers began trending upward again mainly 3,500 3,036 because the Group included Phoenix Resort Co., 2,838 3,000 Ltd., and THQ Canada Inc. (currently Relic Enter- 2,482 2,391 2,338 2,346 2,500 2,241 2,229 tainment Inc.) as subsidiaries, assumed Index 2,033 2,093 1,862 1,759 1,797 2,000 1,665 1,712 1,662 1,652 1,672 1,694 Corporation’s businesses, and increased busi- 1,554 1,620 1,537 1,738 1,434 ness lines in the digital game area in Japan and 1,500 1,461 1,517 1,482 1,540 1,555 1,411 1,417 1,403 1,430 1,047 1,343 1,016 overseas. In fiscal 2015, the Group implemented 1,162 1,000 994 660 608 681 a voluntary retirement program that focused on the 560 500 503 531 Amusement Machine Sales Business segment 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 and the toy sales area. As a result, we have opti- Pachislot and Pachinko Machine Business Amusement Machine Sales Business FYE mized our personnel portfolio and lowered the Amusement Center Operations Consumer Business average age of our personnel. Due to the Group’s shift toward businesses that promise favorable growth and profitability, development personnel numbers have been declining in the Amusement Machine Sales Business segment while rising in the Pachislot and Pachinko Machine Business and the Consumer Business segments. Furthermore, in recent years the Consumer Business segment has been redeploying human capital from the packaged game software area to the digital game area.

Toshihiro Nagoshi

CCO (Chief Creative Officer) and Director, consumer–online company Ryu ga Gotoku 0: Chikai no Basho SEGA Games Co., Ltd. ©SEGA

CCO and Director SEGA Interactive Co., Ltd. Representative work: Ryu ga Gotoku series, Super Monkey Ball series, Daytona USA series, etc.

30 SEGA SAMMY HOLDINGS Employee Numbers by Segment Development Personnel by Segment

1 1 1

6 10 12 18 20 17

29 2005 2015 43 2005 2015 % % % % 56 27 21 38 42 27

19 9

2

Pachislot and Pachinko Machine Business Amusement Machine Sales Business Amusement Center Operations Consumer Business Other Corporate

Employment of Diverse Personnel Personnel Development and Utilization Sammy Corporation aims to foster personnel able The Group seeks personnel who share its To foster personnel that are able to adapt flexibly to conduct duties from a viewpoint of optimiz- mission and vision and have a strong desire to and rapidly to volatile business conditions, the ing companywide operations that is based on a create new entertainment. Based on the Group’s SEGA Group develops the abilities and careers grasp of companywide work flows. To this end, personnel portfolio strategy and in light of their of personnel by combining groupwide training the company focuses efforts on job rotation respective employment standards, operating with training that reflects the characteristics of and diverse support for career development. companies employ and assign personnel based specific ranks, positions, and divisions. Through The company provides opportunities for per- on consideration of diversity and appropriately an internal recruiting system and other mea- sonnel to develop their abilities by offering matching the duties of personnel with their sures, we enable individual employees to realize training programs for each rank of employee. abilities and suitability regardless of gender or their abilities to the fullest and create a corpo- Also, with a view to assignment that encour- nationality. In fiscal 2015, the Group as a whole rate culture that promotes independence and ages the development of specialists, the com- employed 144 new graduates, of whom 42 were encourages personnel to take on challenges. pany has established a self-application system women, and 288 mid-career personnel, of whom In adherence with its strategic emphasis on that allows personnel to apply for transfers to 67 were women. strengthening collaboration among divisions, different positions.

New Graduate Hires Mid-Career Hires Female Managers: Number and Percentage

Employees Employees Employees % 160 350 80 12 144 42 288 300 67 59 115 120 111 60 9 44 250 31 102 221 44 41 200 175 5.7 80 40 6 80 34 4.6 71 150 141 126 4.1 22 100 104 40 20 3

50

0 2013 2014 2015 0 2013 2014 2015 0 2013 2014 2015 0

Men Women FY Men Women FY Number (left) Percentage (right) FY

Satoshi Sakai

Producer PHANTASY STAR ONLINE 2 SEGA Games Co., Ltd. ©SEGA Representative work: PHANTASY STAR ONLINE series PHANTASY STAR ONLINE 2 series Sonic Adventure etc.

ANNUAL REPORT 2015 31 [the GROUP]

| Management Resources Creating Entertainment Value

Human Capital

The SEGA Group’s Education System The Sammy Corporation’s Education System

Rank Target Training details Duration Managers General employees New New managers New-manager training (management skills, labor management, 4 days Coach training (for instructors) managers mental health evaluation)

Manager training Manager Manager candidates Training for development of next-generation leaders 2 days Third-year-employee training candidates (enhancing ability to perform duty and solve problems) Ability development Leaders Leaders, from their first year Career training (self-evaluation and reconfirmation of personal strengths) 1 day New New-employee follow-up training Evaluator evaluator training Leadership awareness training (strengthening ability to influence others) 2 days training New-employee training Mid-level Mid-level employees, from their third year Career training (self-evaluation and reconfirmation of personal strengths) 1 day Qualification-specific promotion support training employees Logical thinking training (strengthening problem-solving 2 days and negotiation skills) E-learning Mid-level employees, in their first year Training to increase ability to lead junior employees 3 days Other education (selective education, business etiquette, etc.) (enhancing listening skills and learning guidance methods)

New New employees, in their third year Presentation training (strengthening presentation 3 days

development employees technique and persuasiveness) TOEIC English exam Self- New employees, after their first year New-employee follow-up training 3 days

Correspondence education New employees, when they join the company New-employee training and value-chain training 5 months

Collaboration and Personnel Exchanges in accordance with the principles related to initiatives include childcare and family care leave among Organizations human rights set out in the United Nations systems as well as information sharing to help Aiming to create Group synergies, the Group is Global Compact, to which the Group became employees return to work without difficultly. promoting personnel exchanges and transfers a signatory in 2014. Moreover, we aim to SEGA SAMMY HOLDINGS INC., SEGA that transcend the boundaries of operating respect human rights not only in relation to Holdings Co., Ltd., Sammy Corporation, other companies and organizations. For example, employees but in our value chain as a whole. main companies, and the entire Group share infor- organic collaboration among the digital game, mation about occupational health and safety packaged game software, and the amusement Health Management and Occupational Safety issues and revise respective systems continu- machine sales areas of the Entertainment We help employees maintain and improve their ously in light of them. Contents Business segment enables flexible health by providing regular health checkups and Furthermore, to ensure employees realize mutual use of development resources without assisting them to receive complete physicals. their abilities to the fullest, the Group encour- personnel transfers or organizational changes. In addition, we have established a health man- ages employees in all Group companies to Furthermore, with creating entertainment con- agement center. We also keep employees balance work and family commitments. In the tent as a com-mon theme, this segment is informed by posting a range of health and Group’s nine main companies, more employees realizing mutual use of content and develop- safety information on a website for employees. are taking childcare leave, a higher percentage ment resources and creating new businesses Furthermore, we have adopted a systemic of them are returning to work, and more male through information sharing, personnel ex- approach to reducing working hours and encour- employees are taking childcare leave. changes, and other forms of organizational aging employees to take vacations. Other collaboration.

Respect for Human Rights The SEGA SAMMY Group manages the employ- ment, assignment, and support of personnel

SENGOKU-TAISEN Yasuhiro Nishiyama ©SEGA

Creative Officer, Chief of No. 1 Research and Development Division SEGA Interactive Co., Ltd. Puyopuyo!! Quest Arcade Representative work: ©SEGA Wonderland Wars series CHAIN CHRONICLE series CODE OF JOKER series etc.

CODE OF JOKER ©SEGA 32 SEGA SAMMY HOLDINGS Collaboration among Organizations of the Entertainment Contents Business Segment Our intellectual properties and our approximately 2,000 development personnel are the industry’s largest development resource. Our ability to realize mutual use of this resource without organizational changes or personnel transfers is a major strength.

Market Market

Amusement machines Animation and toys area area

Mutual use of abundant intellectual properties and approximately 2,000 development personnel

Digital games area Packaged game software area

Market Partners Market

Ayumu Hoshino

Pachislot Hokuto No Ken tomo Director, Division Manager, ©Buronson & Tetsuo Hara/ Research and Development Division NSP1983 ©NSP2007, Approved No.YFC-128 ©Sammy Sammy Corporation Representative work: CR Hokuto No Ken 6 Ken-oh Hokuto No Ken series ©Buronson & Tetsuo Hara/NSP1983 ©NSP2007, Approved No.YDA-108 ALADDIN series ©Sammy Juoh series

ANNUAL REPORT 2015 33