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Material Issues

SANKYO Group’s Sustainability Priority Issues (Material Issues)

Creation of innovative products through originality and ingenuity<br>
Creation of innovative products through originality and ingenuity

- Creation of high value-added products
- Organizations and systems that enable innovations
- Responsibility for safety and reliability of products

Promotion of active participation by human resources
Promotion of active participation by human resources

- Respect for diversity and human rights
- Investment in human resource development
- Creating workplace that makes work rewarding

Reduction of environmental impact
Reduction of environmental impact

- Initiatives toward climate change
- Effective use of resources

Response to social issue
Response to social issue

- Initiatives to prevent dependence of end users

Corporate governance<br>
Corporate governance

- Promotion of corporate governance that adapts to social demand

Process for Identifying Key Sustainability Issues (Material Issues)

Material issues were identified through a process of internal discussions and dialogues with external experts, led by the Sustainability Committee and involving the management team. During this process, we particularly emphasized the following points.

Important Points in Identifying Material Issues

1. Corporate Motto, Management Philosophy
2. Identifying corporate issues from a long-term perspective
3. Considering opinions and requests related to environmental and social issues from stakeholders

■Specific Steps

STEP1

Identifying Long-Term Issues

Based on the perspective of our long-term corporate activities, we comprehensively identified a wide range of issues related to the environment, society, and the pachinko and pachislot machine industry.

STEP2

Communication with Stakeholders

We enhanced the accuracy of our information and scrutinized potential issues through active communication with institutional investors and external experts.

STEP3

Mapping of Issues Identified and Scrutinized

We determined the key points for consideration in the identified and scrutinized candidate issues, mapping them from both stakeholder and corporate perspectives based on these key points.

STEP4

Discussion by Management

The mapped candidate issues were discussed by the Sustainability Committee, chaired by the Representative Director, President and attended by the general managers of each division.

STEP5

Identification of Material Issues

Issues prioritized for discussion and decision were identified as materialities, and these decisions were subsequently reported to the Board of Directors following approval by the Sustainability Committee.

Determination Process of Sustainability Priority Issues (Material Issues)

Based on these internal discussions, including those involving the management, as well as input from a range of stakeholders including institutional and individual investors, shareholders, customers, and local residents we mapped out potential issues. This mapping was based on evaluating the importance of these issues from both our own perspective and that of our stakeholders.

As a result, we identified five key sustainability issues (material issues) that we have prioritized for action.

Determination Process of Sustainability Priority Issues (Material Issues)

Efforts toward sustainability priority issues (material issues) and maximizing corporate value

As a leading manufacturer in the pachinko and pachislot machine industry, along with its affiliated companies, the Group is committed to the mission of “creating innovative products through originality and ingenuity.” This mission is built on a management foundation rooted in ESG principles. By addressing the five identified key sustainability issues (material issues), we aim to create innovative products supported by a stronger management foundation, thereby maximizing corporate value through the simultaneous creation of both economic and social value.

Efforts toward sustainability priority issues (material issues) and maximizing corporate value

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