SEGA SAMMY GROUP CSR BOOKLET 2020 ⒸSEGA ⒸSammy ⒸTMS ⒸATLUS ⒸSEGA/ ⒸKOEI TECMO GAMES All rights reserved. CONTENTS 01 Company Profile, Group Overview and 05 Business Overview 13 Management Major CSR Activities SEGA SAMMY Group Taking 23 With Customers Editorial Policy, Scope of this Report, and 02 on New Challenges 30 With Partners Performance Data 07 Regional Revitalization 34 With Employees 03 Executive Messages Feature through Entertainment Hajime Satomi Chairman and Group CEO, 42 With Shareholders and Representative Director SEGA SAMMY HOLDINGS INC. 09 SEGA SAMMY Group’s Investors Reconstruction Support Haruki Satomi President and Group COO, 44 With Society – Environment Representative Director SEGA SAMMY HOLDINGS INC. 12 Response to the Novel Coronavirus 49 With Society – Serving Society Pandemic Company Profile Company Name SEGA SAMMY HOLDINGS INC. Chairman and Group CEO, Representative Director Address Sumitomo Fudosan Osaki Garden Tower, 1-1-1 SEGA SAMMY HOLDINGS INC. Hajime Satomi Nishi-Shinagawa, Shinagawa-ku, President and Group COO, Representative Director Tokyo 141-0033, Japan SEGA SAMMY HOLDINGS INC. Haruki Satomi Established October 1, 2004 Principal Business Management and related operations as Capital 29.9 billion yen the holding company of the SEGA SAMMY Group, a multi-dimensional entertainment company group Number of Employees 8,798 (consolidated) As of March 31, 2020 Group Overview The SEGA SAMMY Group continuously creates experiences that move the heart of customers of all ages in Japan and overseas by providing creative entertainment as a multi-dimensional entertainment company group engaged in a wide range of business areas. Pachislot and Pachinko Machines Business Entertainment Contents Business Resort Business PP E R Net sales Net sales Net sales 108.3 billion yen 247.7billion yen 10.4 billion yen Ratio of consolidated Ratio of consolidated Ratio of consolidated net sales net sales net sales 29.5% 67.6% 2.8% Major Business Line Major Business Line Major Business Line Development, production and sales of Development and sales centered on the Development and management of hotels and pachislot and pachinko machines core product of digital games as well as golf courses related to the integrated resort Fiscal 2020 Results Fiscal packaged games and amusement machines; business and other facilities busines Group Companies development and operation of amusement SAMMY, RODEO, ELEC, GINZA centers; planning, production and sales Group Companies (and 13 other companies) of animation films; and development, Group Companies Japan: PSR and 2 other production and sales of toys companies Group Companies Overseas: PSS and 1 other company SHD, SGC, SIC, SLS, SE, DL, ATLUS, TOYS, TMS, MARZA, and SSC (and 17 other companies in Japan and 44 overseas) Major CSR Activities (Fiscal Year) • Began publishing a CSR Report • Formulated policy for promoting CSR for employees • Employees began volunteering in • Began voluntary activity (training) for new Group • Published a Guide to CSR areas affected by the Great East employees in earthquake-affected areas • Published the CSR Handbook (employee handbook) Japan Earthquake • Began compliance training for Group executives • Determined key CSR items and the CSR promotion plan • Conducted a materiality analysis • Held dialogue with CSR experts • Began training on individual topics 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 • SEGA • Established the Group • Began publishing the CSR Report • Held dialogue with NPOs • Designated common CSR initiative • Declared support for and CORPORATION Management Philosophy, Group • Published the Environmental Handbook • Began compliance training themes for the Group signed the United Nations and SAMMY CSR Charter, and Group Code of • Published the Compliance Handbook for newly appointed Group • Began CSR training for new employees Global Compact CORPORATION Conduct executives • Began an event to support • Established the Group integrated their reconstruction after the Great East Management Policy and businesses to Japan Earthquake Group Guidelines create the SEGA • Invited those who had evacuated into • Began CSR training for SAMMY Group the Tokyo area to the Tokyo Joypolis members of management at Group companies 01 SEGA SAMMY GROUP CSR BOOKLET 2020 Editorial Policy Abbreviation of Organization Names in this Report We have been publishing a CSR report with the aim of reporting on the CSR activities of the SEGA Each Segment SAMMY Group to our various stakeholders, while at the same time enhancing our activities and PP: Pachislot and Pachinko Machines Business; E: Entertainment information disclosure through communication with them. We updated the editorial policy for our 2018 Contents Business; R: Resort Business; Group: SEGA SAMMY CSR report to incorporate ESG information, which had been included in a recent integrated report as HOLDINGS INC., Entertainment Contents Business, Pachislot and an emphasis sought by investors and after we had reviewed content that has not been covered by the Pachinko Machines Business and Resort Business integrated report as well as what must be reported in depth from a CSR perspective. Additionally, the Major Companies for Each Segment report includes more “Voice” sections so that it more closely communicates the SEGA SAMMY Group’s SSHD: SEGA SAMMY HOLDINGS INC., SHD: SEGA Holdings Co., Ltd., business and other engagements as well as the work styles of our employees. SAMMY: Sammy Corporation, ATLUS: ATLUS CO., LTD., BTF: Butterfly Corporation, DL: DARTSLIVE Co., Ltd., ELEC: TAIYO ELEC Co., Ltd., Guidelines Used for Reference MARZA: MARZA ANIMATION PLANET INC., PSR: PHOENIX RESORT CO., Scope of this Report LTD., PSS: PARADISE SEGA SAMMY Co. Ltd., RODEO: RODEO Co., Ltd., GRI Sustainability Reporting Standards SE: SEGA ENTERTAINMENT Co., Ltd., SGC: SEGA Games Co., Ltd., SIC: 2016/2018 Reporting Period SEGA Interactive Co., Ltd., SLS: SEGA LOGISTICS SERVICE CO., LTD., SNW: ISO 26000 (Guidance on Social Responsibility) Sammy Networks Co., Ltd., SSC: SEGA SAMMY CREATION INC., SSGE: Fiscal 2020 (April 1, 2019 to March 31, 2020) SEGA SAMMY GOLF ENTERTAINMENT INC., TOYS: SEGA TOYS CO., LTD., Some parts of the report include information that occurred after or TMS: TMS ENTERTAINMENT Co., Ltd. GINZA: GINZA Corporation Publication Dates before this period, with the time outside the period clearly stated. • Some activities include Group companies other than those listed above. Boundary of Reporting Organizations November 2020 * Abbreviations and departments of persons interviewed for the VOICE columns (previous report: September 2019, next SEGA SAMMY HOLDINGS INC., SEGA Holdings Co., Ltd. are accurate as of fiscal 2020. Content related to activities in fiscal 2021 refer to report: September 2021) (including key Group companies), Sammy Corporation new company names that reflect the organizational restructuring. Performance Data Number and Percentage of Female Management- Net Sales (Consolidated) Number of Employees2018 (Consolidated)2019 2020 (FY) Level Staff*¹ (billions of yen) Regular Employees Non-regular Employees Number of female Percentage of female 400 management-level management-level 366.5 sta (left axis) sta (right axis) (%) 323.6 331.6 10,000 120 12 8,798 300 8,214 102 7,726 7,754 7,993 8,121 8,000 86 9 90 81 200 6,000 6.6 6.4 60 5.0 6 4,000 100 30 3 2,000 0 0 0 0 （年度） 2018 2019 2020 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) Number of Employees Who Took Childcare Leave and Who Returned to Work After Childcare Leave*¹ Average Overtime Hours per Month*¹ Total CO₂ Emissions*² Percentage of employees who Percentage of employees who (Hours) (t-CO) returned to work after childcare returned to work after leave (male) childcare leave (female) 25 120,000 Number of employees who Number of employees who 21.9 took childcare leave (male) took childcare leave (female) （名） 100 100 100 (%) 20 19.7 19.4 93,852 91,697 160 100 90,000 86,348 98.6 95.2 87.2 15 120 106 96 75 60,000 10 80 74 50 30,000 5 40 25 40 21 24 0 0 0 0 2018 2019 2019 (FY) 2018 2019 2020 (FY) 2018 2019 2020 (FY) *1 We have made partial changes to the scope of the report and method of data collection. For details, see page 41. *2 For the method of our environmental data collection and scope of the report, see page 48. • Began CSR training for employees of Group companie • Employees engaged in voluntary activities in areas affected by heavy rains in July 2018 • Explained and sought cooperation from suppliers for the SEGA • Relocated the Group headquarters to the south area of JR Osaki Station (consolidated SAMMY Group Supply-Chain CSR Deployment Guidebook about 6,500 employees) • Established the SEGA SAMMY • Held baseball classes at Fukushima Prefecture and other areas • Launched the Waku Lab work-style reform site on the intranet, introduced a flextime affected by the Great East Japan Earthquake system and experimental teleworking program Culture and Art Foundation • Established SEGA SAMMY BUSINESS SUPPORT INC. as a special subsidiary • Began publishing the Integrated Report •Received the highest “Gold” rating in the PRIDE Index •Received the grand prize in the 5th Corporate Volunteer Awards 2015 2016 2017-2018 2018-2019 • Registered for the Tokyo Barrier-free Mindsets Support Corporations • Conducted a sustainability analysis of management • Signed a comprehensive partnership agreement with Shichigahama- • Opened an official Twitter • Held a stakeholder dialogue machi, Miyagi Prefecture on regional revitalization account for CSR • Employees engaged in voluntary