Management Strategy

For the next fiscal year, the Group will focus on the following points based on the strategy laid out in 3 above.

The Group has positioned initiatives regarding human capital, which is the source of corporate value creation, as one of its priority issues.

In order to enhance its development system—the source of its core competitiveness—and achieve its medium-term management objective, the Group recognizes the importance of bolstering its development workforce and enhancing productivity through investment in human capital.

As such, the Group recruits more than 100 developers every year. As of March 31, 2024, the Group has secured 2,675 developers in its workforce.

In order to directly understand the needs of employees and create a comfortable working environment, the Company takes advantage of opportunities for direct dialogue between management and employees through the exchange of opinions in various briefing sessions. The Company is also working to prevent employee turnover and improve engagement.

In addition, to respond to changes in the business environment, the Group is investing in securing and developing diverse human resources through recruitment and evaluation, regardless of gender, nationality, age, and other attributes. Toward this, by the end of March 2029 the Group aims to achieve a ratio of 85% or better for male employees taking childcare leave (66.7% at the end of March 2024) and a ratio of 88%* or better for female to male wage differences among permanent employees (83.8% at the end of March 2024). (*Ratio calculated by dividing the average salary for permanent female employees by the average salary for permanent male employees.)

In order to achieve the above objectives and further promote its human resources investment strategy going forward, the Group will enhance its corporate value by implementing the following measures:

Given the gravity of the impact of information on corporate activities, the Group is aware of the need to take measures against diverse cyber risks both in Japan and overseas and believes that ensuring information security is indispensable. The Group is working to strengthen its information security system to comply with laws and regulations related to information security, in addition to responding to personal information protection legislation and legislation for the protection of minors that are being advanced in various countries.

To this end, the Security Oversight Committee, an external advisory body, convened 7 times in the fiscal year ended March 31, 2024. Based on the committee’s advice, the Group is building capabilities for ongoing system operations and monitoring as well as early response and recovery in the case of emergencies, such as when unexpected security risks materialize. Going forward, the Group will continue to maintain and strengthen its information security structure based on the PDCA cycle.

The Group is engaged in a range of initiatives to resolve shared environmental and social issues, based on its management philosophy of being a company that stimulates the senses by creating a culture of play and bringing excitement to people through the entertainment medium of games, as well as on the goal of creating a sustainable society as set forth in the SDGs.

Through these initiatives, the Group will continue to build trusting relationships with all stakeholders, including shareholders, customers, business partners, employees, and local communities, while aiming to realize a better future by striving for sustainable growth and fulfilling its social responsibility.

a. Social contribution activities

The Group is engaged in social contribution activities that is focused on supporting children who will create the future.

In the fiscal year ended March 31, 2024, the Group continued to donate to organizations that work for the healthy development of children and youth, including the Fund to Support Children’s Future. The Group also provided monetary aid to victims and areas affected by the 2024 Noto Peninsula Earthquake, which caused severe damage in January of this year. In addition, the Group pledged continued financial aid to the Office of the United Nations High Commissioner for Refugees to support Ukrainian refugees.

[Support for Children in Need]

[Aid for victims and areas affected by the 2024 Noto Peninsula Earthquake]

[Aid for Refugees from Ukraine]

Additionally, the Group donated 10 million yen in relief money toward the earthquake in Eastern Taiwan that　occurred in April of 2024.

b. Environmental Initiatives

The Group is ahead of its competitors in the promotion of digital sales of its content, which is part of its efforts to conserve resources and curb CO₂ emissions in manufacturing and transporting disks. The Group is also working to reduce its environmental impact by implementing power-saving measures and recycling certain parts in the manufacturing and sale of pachislo machines.

As part of the Group’s environmental response, CO₂-free electricity sourced from renewable energy has been introduced in Company-owned buildings and other facilities in the Kansai area. As a result, approximately 21% of the power consumed by the Group in Japan is now provided by renewable energy. Furthermore, the Company is working to reduce its CO₂ output by introducing green power at the Company’s Tokyo branch and expanding the adoption of CO₂-free electricity at the Company’s other business locations. Additionally, the Group is making efforts to further reduce its environmental impact with initiatives such as using its own data centers, where power-saving measures are in place, while also using major cloud and data center service providers that promote the use of renewable energy.

In accordance with its management principles, the Group strives to build an appropriate relationship with stakeholders while continuously working to enhance corporate value.

In addition, in order to enhance the transparency and soundness of management and build a system that can respond to changes in the business environment, the Company is working to strengthen the supervisory function of the Board of Directors by ensuring the diversity of the Board of Directors and expanding opportunities for the active participation of external directors. Based on an evaluation of the effectiveness of the Board of Directors, and in order to further strengthen its functioning, the following efforts were made in the fiscal year ended March 31, 2024 to expand the provision of information and deepen mutual understanding at the Board of Directors meetings.

• Strengthened the reporting of opinions gathered from stakeholders through discussion to the Board of Directors
• Utilized roundtable discussions with external directors to encourage debate with top management on topics not limited to Board of Directors meeting agenda items, such as the Group’s current condition and long-term strategy

In the fiscal year ending March 31, 2025, the Group will address the following issues to enhance the effectiveness of management’s supervisory function.

[Main issues]

• Achieving synergies by holding roundtable discussions with external directors and strengthening collaboration within the Board of Directors
• Deepening discussions regarding the nomination and remuneration of directors and other senior management members to improve corporate value over the medium-to-long term
• Furthering the risk management system and expanding opportunities to discuss items for the long term

The Company will continue to promote the sharing and understanding of various issues at its Board of Directors meetings and strive for the further improvement of its functions.