CEO Message

Our driving force for innovation and growth is our belief
that a company which does not inspire resonance cannot survive.

We recently formulated a long-term vision for the SEGA SAMMY Group, with the fiscal year ending March 2030 as the target year. Our mission under that vision is to be "Constantly Creating, Forever Captivating”—aiming to be a game changer and bring energy and color to society by continually creating exhilarating experiences. Our goal is to contribute to the enrichment of the social environment and the creation of culture through sustainable management, while also achieving continual improvement in corporate value.

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Realizing Our Vision for 2030

When formulating our sustainability vision, we focused in particular on social change and the needs of society. As a listed company, our fundamental policy for sustainable management is defined by the principles of the Corporate Governance Code. We see this as a growth driver, and as our basic guideline for sustainable management.

As we began to formulate our sustainability vision, we were also aware of the need to address the Sustainable Development Goals (SDGs). In the past we have tended to work on social initiatives without setting any deadlines, but I believe that there is also need to work tirelessly toward specific goals. By 2030, which is the target year for the SDGs, Generation Z people, a group known for their sensitivity to environmental issues, will be aged around 30 and are likely to be taking on core roles in the business community.

Our vision defines how we want our company to evolve, and how it should evolve, in the period to 2030. We are now at the stage of implementing effective plans to realize a sustainable future under that vision.

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Key word: Resonance

I firmly believe that the ability to inspire resonance is vital to a company’s survival. Even if a company creates hit products and becomes highly profitable, it cannot look forward to long-term survival without the ability to inspire resonance.

People today choose companies not according to profitability and past successes, but rather on the basis of their commitment to social contribution through their activities. People will not feel a sense of resonance toward a company or any desire to work for it unless they can take pride in the fact that the company is useful to and needed by society.

How can we inspire this sense of resonance? I believe that first of all we need to have integrity and humility as human beings. In the past a company could justify its existence by earning profits. That is no longer true. A company needs to inspire resonance and earn respect, both among its own work force, and also in society in general. Resonance is the key to the improvement of sustainability. I see this as our first priority, and I am determined to take effective action to generate resonance within the SEGA SAMMY Group and beyond.

Raising awareness of the importance of resonance within the SEGA SAMMY Group

Generally speaking, the core goal of sustainability management is to achieve a situation that is sustainable from Environmental, social, and governance (ESG) perspectives. This is a grand concept, but individual employees may find it difficult to form a clear picture of what they specifically need to do themselves. If we can help people to see sustainability management in simpler terms as the things that we must to do to keep our company alive, we can modify their mindsets and behavior in a positive direction and encourage them to take ownership of the concept.

I am working to disseminate this approach within the SEGA SAMMY Group by turning my words into action and setting an example through my leadership. We cannot build resonance and earn trust unless our actions match our words. In an era characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), some people think that it is acceptable to say one thing in the morning and something else in the afternoon. I believe that our goals and vision must be clear and consistent.

I try to set an example by participating actively in company events, such as “SEGA SAMMY Sustainability Weeks” and “Town Hall Meetings”, and by attending training sessions and engaging in dialogue with employees. People are more motivated to participate if they know that the CEO will also be attending events, and there is a heightened sense of enthusiasm at such events. I have launched a video feature named Haruki Monthly View Live (HMVL) on our internal portal site. I use this program to raise awareness of our goals by speaking directly to employees once a month. I recognize the importance of communicating with stakeholders through external messaging, but my first priority is to foster a sense of ownership among our employees, who are also stakeholders, and to modify their behavior patterns as the basis for group-wide reforms.

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Initiatives to benefit stakeholders

We are working to reduce not only our own GHG emissions, but also the amounts emitted across all of our supply chains. We do not impose our expectations unilaterally on our business partners. Instead, we share our expertise and work cooperatively to achieve outcomes.

We are also strongly committed to human rights, including the use of supply chain management to prevent human rights violations in any of supply chains, even in cases that do not involve direct transactions. Specifically, we carry out risk assessments as part of our efforts to prevent slave labor and human trafficking by overseas suppliers, especially the contract manufacturers from which we procure toys and prize goods for our Entertainment Contents Business. For example, one of the major customers to which we provide content requires the SEGA SAMMY Group to maintain highly effective human rights policies. We work with our outsourcing partners to ensure that our operations comply with these high human rights standards. This approach has resulted in the accumulation of extensive resources of knowledge and expertise, which we also apply to other contractors, resulting in further improvement across all of our operations. In recent years, end users have become more critical in their assessments of business corporations. Once it was enough to offer exciting products, but consumers today also want to be sure that no human rights violations occur during the manufacture of our games. Shareholders, investors, and even end users carry out research into a company’s philosophy and stance in order to decide whether or not that company is worthy of their interest. This trend is now part of the business mainstream and is reflected in the growing importance of accountability.

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Diversity, equity, and inclusion as a Global Company

Our goal under our medium- to long-term strategy for the Entertainment Contents Business is to become a global leading content provider. In recent years, people in developed countries have become increasingly focused on issues relating to gender, ethnicity, nationality, and other attributes. I am convinced that we need to work more proactively to raise and maintain awareness of human rights issues.

The SEGA SAMMY Group supports Black Lives Matter and Stop Asian Hate and has declared its commitment to the eradication of all forms of racial discrimination and violence. Group employees and game fans have reacted positively to these actions. It is a fact of life that whenever an opinion is voiced there will be some form of opposition. However, we see no purpose in using flowery language to produce diplomatically worded statements. Instead, we are determined to move forward in ways that reflect the unique colors of SEGA SAMMY without fear of criticism. That commitment is expressed in the use of the word “colorful” in our mission statement.

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Tackling negative issues head-on

We enrich people’s lives by providing fun and exhilaration through our Pachislot and Pachinko games, consumer games, arcade games, and other gaming products. However, there are also negative social consequences, including obsessive and addictive disorders. The SEGA SAMMY Group is determined to tackle these issues head-on, and we have identified addiction as a key issue in our Materiality. I believe that SEGA SAMMY is unusual in that it has made a public declaration of this type. When I became CEO, I resolved that we should clearly state our determination as a company to recognize issues and find real solutions without hiding these negative aspects.

We also work with various industry organizations to address and prevent obsessive disorders and gaming addiction. One such initiative is an industry-academia research project on gambling addition at Kyoto University. The aim of this research is to identify advance signs that people are about to engage in dangerous gambling and clarify the mechanisms involved in addictive conditions, by collecting and analyzing data about actual players in overseas casinos, and to develop practical solutions that will prevent this behavior from escalating or recurring.

We aim to respond to the expectations of society by working to minimize the negative aspects of entertainment, while creating even greater positive benefits in the form of captivating experiences that include fun, stimulation, and relaxation.

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Valuing emotions as well as dreams

Many companies claim that they provide dreams to the world. I believe that SEGA SAMMY provides not only dreams, but also emotional experiences. For example, people experience joy when they win at Pachislot and Pachinko games, and disappointment when they lose. Entertainment is fundamentally a process of providing enjoyment, but some of our games, pachislot and pachinko machines, movies, and animation products have sad endings. Life is not limited to good experiences, and sometimes we also feel sadness and anger. We add a human dimension to our products by portraying these aspects realistically.

The SEGA SAMMY Group will continue to create exciting experiences through a core focus on entertainment with a rich human dimension, including a full spectrum of emotions. Emotion and diversity are part of our definition of the word “colorful”. That is what makes the SEGA SAMMY Group unique.

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