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Social Action Policy

At the SANKYO Group, we consider the promotion of active human resource participation as a crucial foundation of our management. We are committed to creating an environment where our employees can fully express their individuality and thrive by respecting diversity and human rights, investing in human resource development, and fostering a rewarding workplace. Additionally, we take responsibility for addressing social issues, including addiction, as part of our corporate activities, with the goal of achieving better coexistence with society.

Promotion of Active Human Resource Participation

Supporting the Success of Diverse Talent

In the pachinko and pachislot machine industry, the player base is composed of 72.0% men and 28.0% women, reflecting a predominance of male users. This is also evident in recruitment, where men account for more than 85% of new graduate applicants. As a manufacturer, our primary hiring focus is on development and sales. Development positions draw heavily from pachinko and pachislot players, resulting in a higher proportion of male candidates, while sales positions involve handling heavy machines, leading to fewer applications from women.
Against this backdrop, the Group is committed to fostering a workplace environment where diverse talent can thrive. We are advancing diversity and inclusion through initiatives such as promoting women’s participation, encouraging childcare leave among male employees, and expanding employment opportunities for persons with disabilities.

■Specific Initiatives

Proactive hiring of women
Female employees are assigned to recruitment roles, and opportunities are provided during the selection process for female applicants to engage directly with them.
Continued implementation of work-style reforms
Eligible employees are encouraged to take childcare leave, with male employees specifically recommended to take at least one week of leave.
Promotion of employment
of persons with disabilities
The Company promotes initiatives to support the retention of employees with disabilities by properly assessing their work capabilities,
establishing consultation points, and providing opportunities for dialogue.

■SANKYO’s Targets and Results

Item
Target
FY3/2025 Result
Ratio of female hire
15% or higher
25.0%
Average length of service for female employees
17 years or longer
16.5 years
Ratio of women in management positions
10% or higher
4.3%
Ratio of eligible employees taking childcare Leave
Male employees:
50% or higher
Female: 100.0%
Male: 7.1%
Employment rate of persons with disabilities
2.5% or higher
2.3%

Developing Outstanding Talent

In the pachinko and pachislot machines market, machines have become increasingly diverse year by year in terms of mechanisms and gaming performance. Anticipating market needs, our urgent priority is to develop highly entertaining machines that not only satisfy fans and parlors but also attract potential and lapsed fans, ensuring that the pachinko and pachislot machines industry continues to be supported as a form of popular entertainment over the long term. In addition, to prevent organizational stagnation, we believe it is necessary to ensure the appropriate allocation of personnel within the Company, improve operational efficiency through systematization, and promote changes in employee mindsets.
The Group regards an active human resources strategy as a top priority for prevailing in a challenging environment and achieving sustainable growth. By securing talented individuals with advanced expertise as well as strong logical thinking and communication skills, and by further enhancing the motivation and performance of existing employees, we aim to strengthen the Group’s human capital and further enhance corporate value.

■Initiatives Based on SANKYO’s Human Capital Strategy

Securing talented people
Starting salary for college graduates to be raised to 300,000 yen or more from FY3/2025
Change of recruitment test (Design Thinking Test) to secure DX personnel
Early training of young employees
Provision of education and training in stages from the first to the third year of
employment, with the goal of developing a fully-fledged employee in three years
Expansion of growth opportunities
Promoting early promotion of young employees who demonstrate strong
performance to managerial positions based on a corporate culture that encourages taking on challenges

■Training Programs for New Graduate Employees and Newly Appointed Managers (Selected Examples)

Training program name
Purpose of implementation
Training hours per person
Trainees (persons)
FY3/2025
New Employee Training
The objective is for trainees to understand the social structure and corporate philosophy while acquiring fundamental business manners and skills for reporting, informing, and consulting. They also learn how to improve their work by using the PDCA cycle and develop the ability to work efficiently.
The program is designed to help trainees build a solid foundation as a contributing member of society, thereby enhancing their performance and productivity in the workplace.
The objective is for trainees to understand the social structure and corporate philosophy while acquiring fundamental
business manners and skills for reporting, informing, and consulting. They also learn how to improve their work by using
the PDCA cycle and develop the ability to work efficiently.
The program is designed to help trainees build a solid foundation as a contributing member of society, thereby enhancing their
performance and productivity in the workplace.
30 hours
19
Follow-up Training
The goal is to help trainees acquire the skills they need to enhance their performance in the workplace and foster personal growth.
Specifically, trainees will learn how to effectively use the PDCA cycle and acquire the skills to review and improve their work.
Trainees will also develop the ability to maintain and enhance their motivation, as well as that of the team, by learning motivation management techniques. Additionally, the program aims to help trainees develop effective communication skills and acquire techniques to enhance their relationships in the workplace.
The goal is to help trainees acquire the skills they need to enhance their performance in the workplace and foster personal growth.
Specifically, trainees will learn how to effectively use the PDCA cycle and acquire the skills to review and improve their work.
Trainees will also develop the ability to maintain and enhance their motivation, as well as that of the team, by learning
motivation management techniques. Additionally, the program aims to help trainees develop
effective communication skills and acquire techniques to enhance their relationships in the workplace.
8 hours
19
Next Skills Training
The goal is to help trainees clarify their sense of purpose in their work while learning efficient and effective work techniques.
Specifically, the program focuses on mastering methods for working with a sense of purpose, scheduling techniques, and communication skills using the assertion and DESC methods. The program is designed to maximize individual performance and increase overall workplace productivity.
The goal is to help trainees clarify their sense of purpose in their work while learning efficient and effective work techniques.
Specifically, the program focuses on mastering methods for working with a sense of purpose, scheduling techniques,
and communication skills using the assertion and DESC methods. The program is designed to maximize individual performance
and increase overall workplace productivity.
8 hours
23
Training for Newly Appointed Managers
The program aims to systematically develop participants’ understanding of the roles and behavioral standards expected of managers, including compliance awareness, information security measures, sustainability, diversity and inclusion, risk management, and organizational management, while enhancing their practical capabilities. Specifically, it seeks to equip participants with the mindset and skills required of managers, such as fulfilling responsibilities and conducting personnel evaluation, maintaining appropriate conduct, applying risk-reduction measures against cybercrime, addressing diversity and the SDGs, preventing harassment, approaching risk effectively, and improving work allocation and communication.
The program aims to systematically develop participants’ understanding of the roles and behavioral standards
expected of managers, including compliance awareness, information security measures, sustainability, diversity and inclusion,
risk management, and organizational management, while enhancing their practical capabilities. Specifically, it seeks to equip
participants with the mindset and skills required of managers, such as fulfilling responsibilities and conducting personnel
evaluation, maintaining appropriate conduct, applying risk-reduction measures against cybercrime, addressing diversity and
the SDGs, preventing harassment, approaching risk effectively, and improving work allocation and communication.
12 hours
17

Health and Productivity Management

The Group regards health management as an integral part of work. Our basic policy is to create a workplace environment that enables employees to work comfortably and to enhance initiatives that promote physical and mental health. These include promoting the use of paid leave, reducing overtime hours for all employees, and conducting stress checks for all employees. By ensuring strict compliance with laws and regulations, we work to properly manage working hours and to reduce and prevent excessive work, while continuously engaging in activities to maintain and improve health. In addition, the Company is working to revise its human resources systems to enhance employees’ motivation to work, with the aim of creating a workplace where employees can take pride in their work.

Policy on Respect for Human Rights

Guided by our corporate motto of “ingenuity,” the Company provides highly entertaining pachinko and pachislot machines and related services and strives to fulfill its social responsibilities by adhering to high ethical standards. The Company’s Code of Conduct supports and respects international human rights standards and norms, such as the International Bill of Human Rights*1 and the Guiding Principles on Business and Human Rights*2, and, based on various guidelines on corporate conduct, serves as a guide to ensure that all employees act with integrity and propriety.

*1: A collective term for the Universal Declaration of Human Rights; the two International Covenants on Human Rights (the International Covenant on Economic, Social and Cultural Rights and the International Covenant on Civil and Political Rights); and the First and Second Optional Protocols to the International Covenant on Civil and Political Rights.
*2: An international document approved by the United Nations Human Rights Council in 2011 that sets out how businesses should respect human rights in their activities.

Basic Policy

The Company complies with applicable laws and regulations, the International Bill of Human Rights*1, and the Guiding Principles on Business and Human Rights*2. We respect the human rights of all employees, business partners, customers, and local communities. We do not tolerate any form of harassment, forced labor, child labor, or discrimination based on race, religion, gender, age, sexual orientation, physical characteristics, nationality, or any other attribute, and we provide a sound and safe working environment. If the Company has a negative impact on human rights, we will make every effort to address it.

Workers’ Rights

The Company complies with applicable laws and respects employees’ freedom of association and their rights to organize, to engage in collective bargaining, and to take collective action as fundamental labor rights. We guarantee employees the freedom to form or join labor unions—or to refrain from joining them—as a means for labor and management to discuss working conditions, wage levels, and other matters. We also comply with statutory minimum wage requirements and, by paying wages sufficient to support a decent standard of living, ensure that employees can lead a culturally fulfilling life.

Whistleblowing System

The Company has established a whistleblowing system that defines procedures for appropriately handling consultations and reports from employees and others regarding organizational or individual violations of laws and regulations. The purpose of this system is to facilitate the early detection and correction of misconduct and thereby strengthen compliance management. Beginning in FY3/2026, the Company introduced an internal reporting form that enables anonymous submissions, allowing employees to raise concerns with confidence. This form is positioned as an important tool for ensuring swift and appropriate responses while giving the highest priority to the privacy and protection of whistleblowers. The Company also continues to actively promote awareness and understanding of the whistleblowing system.

Fair Business Practices

The Company strives to build sound relationships with business partners through fair, transparent, and free competition as well as through proper transactions, and strictly prohibits the provision of improper benefits or bribery. In addition, we require ethical conduct across the entire supply chain in line with our Code of Conduct and promote responsible corporate activities.

Responding to Social Issues
Efforts to Prevent Addiction Among End Users

Declared as a Top Priority by Industry Groups

In 2017, the 21st Century Association of the Pachinko and Pachislot Industry, comprising 13 amusement industry organizations, issued a “Statement on the Issue of Pachinko and Pachislot Addiction.” This statement reinforced the industry's commitment to addressing the issue of pachinko and pachislot addiction as a top priority. To contribute to the healthy development of the industry, the Company supports this statement and implements the following initiatives aimed at preventing addiction to these machines.

1.Incorporating Awareness-Raising Messages in Advertising

As part of a voluntary initiative by the manufacturers’ association, the unified phrases “Pachinko and pachislot are moderately enjoyable games” and “Be careful not to get too involved” are displayed on LCD screens, commercials, posters, and other promotional materials. The Company also ensures that these unified phrases are prominently displayed in our advertising efforts.

2.Pachinko and Pachislot Addiction Awareness Week

Every year, from May 14 to May 20, Pachinko and Pachislot Addiction Awareness Week is observed. During this period, industry associations disseminate information to raise understanding of pachinko and pachislot addiction (excessive involvement) and publicize the awareness week—such as by displaying posters and other notices.

3.Support for the Recovery Support Network (RSN), a Pachinko Addiction Counseling Organization

Established in 2006 with support from industry associations, the Recovery Support Network (RSN) engages in a wide range of initiatives, including awareness-raising activities and telephone counseling. The Company supports these efforts through the Japan Pachinko Machine Manufacturers Association, of which it is a member, thereby contributing to industry-wide initiatives in this area.

Recovery Support・Network(RSN)外部リンクアイコン

4.Financial Support for Private Organizations Working to Prevent and Address Addiction

Through the Pachinko/Pachislot Social Contribution Organization (a general incorporated association), the 21st Century Association of the Pachinko and Pachislot Industry provides grants to private organizations and others engaged in the prevention and resolution of addiction issues. The Company supports these efforts through the Japan Pachinko Machine Manufacturers Association, of which it is a member, thereby contributing to industry-wide initiatives in this area.

Efforts to Contribute to Local Communities

Donations Through the Corporate Version of the Furusato Nozei (Hometown Tax Donation) Program

By supporting local governments connected to the Company through the locations of Group companies or business collaboration, as well as areas affected by natural disasters, the Company seeks to strengthen relationships with local residents and municipalities, implement collaborative projects that contribute to the SDGs, among other initiatives, and contribute to the development of a sustainable society.

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