Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Obtained the third “Eruboshi” mark Certified by the Minister of Health, Labour and Welfare on Apr. 14, 2020
• Ratio of female managers (section chief or higher) 26% as of FY 4/2020
• Ratio of female employees who took childcare leave 88% in FY 2019

Governance Achievements

• The ratio of outside executives, including a female director, is over 1/3
• Nomination and remuneration committees established

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact: temporary closure of amusement arcades, suspension of operation of manufacturing outsourcees, delay in supervision of products, decrease in sales of photo stickers and orders for prizes, cancellation of orders for arcade prizes, drop in sales due to inventory adjustment of amusement arcades, decrease of members due to the number of customers who withdrew from membership exceeding the number of new members

Mitigation Strategies

• Efforts to keep the number of photo sticker booths in market; improve revenue from photo sticker booths in amusement arcades, and supply photo sticker booths stably; keep opening directly managed shops, and increase photo sticker booths
• Aim to enhance profitability by increasing average spending per customer while keeping the number of members stable; enhance the strategic integration with the photo sticker business; enhance the promotion of premium membership
• In the current term, sell products outside Japan, mainly in the Chinese market on a full-scale basis; keep enriching the product lineup of expensive hobby goods, and concentrate on the improvement in production efficiency
• Aim to create hit titles while controlling costs; aim to move into a black from the game and anime business in the term ending March 2021

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Guidelines for CSR procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Environmental Challenges

• Impact of COVID-19 on consumption trends and amusement market.
• Reinforcement of user acquisition in Content and Media, and Game and Anime Businesses.
• Initiatives for new businesses to diversify revenue bases.
• Stabilization of revenue in the Game and Anime Business.
• Diversification of characters and rapid changes in customer preferences.
• Securing of excellent human resources and strengthening of the organizational structure.

Mitigation Strategies

• Responding to changes in the environment (COVID-19).
• Improving content quality, increasing user acquisition rate and paid user rate, and enhancing compliance.
• Launching businesses quickly and efficiently, utilizing accumulated knowledge and know-how.
• Maximizing IP value through synergies among titles, creating series, and expanding international sales.
• Developing further relationships with right holders.
• Implementing mid-career recruitment and development programs for employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Diversity and Inclusion
• Corporate Governance
• Stakeholder Engagement
• Sustainable Business Practices

Social Achievements

• Obtained the third “Eruboshi” mark Certified by the Minister of Health, Labour and Welfare on Apr. 14, 2020
• 81% Percentage of paid days off taken FY3/2021 actual
• 100% Percentage of childcare leave for eligible women taken FY3/2021 actual
• 26% Composition of female managers (manager or higher) FY3/2022 current

Governance Achievements

• Established a nomination and remuneration committee, a majority of whose members are independent outside directors.
• Strengthened the Board of Director’s supervising function by raising the weight of independent outside directors to at least 1/3.

Climate Goals & Targets

Environmental Challenges

• Increase in costs due to the weak yen

Mitigation Strategies

• Price increase for some arcade game prizes
• Switch to dollar-denominated sales for some overseas items

Supply Chain Management

Responsible Procurement

• Fair, impartial deals and proper procurement

Climate-Related Risks & Opportunities

Awards & Recognition

• Eruboshi mark

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Reinforcement of User Acquisition in Photo Sticker Business, PiCTLINK, and game application business.
• Initiatives for New Businesses for Diversification of Revenue Bases.
• Stabilizing earnings in video game software and game application businesses.
• Diversification of Characters and Rapid Changes in Customer Preferences.
• Securing of Excellent Human Resources and Strengthening of the Organizational Structure.
• Addressing foreign currency risk (weak yen).
• Expanding Overseas Business Development.

Mitigation Strategies

• Improve content quality and added value; implement measures to capture new users.
• Launch businesses quickly and efficiently, utilizing accumulated knowledge and know-how.
• Develop hit titles, maximize IP value through synergies, create series, and expand international sales.
• Develop further relationships with right holders.
• Review human resources benefits system; implement mid-career recruitment; implement development programs.
• Enter into forward foreign exchange contracts as necessary.
• Strengthen local operations and sales systems; establish a local subsidiary in the US.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Create quality entertainment
• Provide customers with safety and peace of mind while improving quality
• Give consideration to the environment through business
• Implement Dynamic Vision
• Promote the creation of a satisfying work environment
• Develop diverse human resources essential to the improvement of corporate value
• Support the next generation that will create the future
• Support challenges of future generations
• Help youth grow in a healthy manner
• Contribute to local communities
• Ensure information security and privacy
• Conduct fair, impartial deals and proper procurement
• Protect intellectual property and undertake educational activities

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented Dynamic Vision, focusing on employee growth and a rewarding work environment. Achieved 28.7% female manager composition and 50% male childcare leave utilization rate.
• Supported youth through workplace tours and vocational lectures (8 schools in 2023, 10 in 2024).

Governance Achievements

• Established a nomination and remuneration committee with a majority of independent outside directors. Increased the weight of independent outside directors on the Board to at least 1/3. Two female directors (one-third of directors are women).

Climate Goals & Targets

Environmental Challenges

• GIRLS Trend Business struggled with decreased profits due to fewer plays and members. Game apps in FURYU New Business underperformed.
• Impact of the coronavirus pandemic on GIRLS Trend Business.
• Excess overseas distribution inventory impacting overseas product sales.

Mitigation Strategies

• Implementing product development and promotional measures to increase the frequency of play in GIRLS Trend Business (new photo sticker machines, collaborations).
• Focusing on high-margin products in Expensive hobby goods to improve profitability.
• Developing long-term IP and strengthening business as an IP licensor in FURYU New Business.
• Strengthening the PC market (Steam) and aiming to expand overseas sales in FURYU New Business.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair and impartial deals, communication through Purchasing Department, requests for cooperation with Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Third “Eruboshi” mark