Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Responsible Gaming
• Ecological Responsibility
• Corporate Governance
• Sustainable Business

Environmental Achievements

• Reduced paint requirement from 29 tons to 22.5 tons by switching to water-based paints.
• Implemented waste separation and recycling programs in production facilities.
• Achieved significant energy savings through various measures in new buildings and existing facilities.
• Used low-emission trucks for transport.

Social Achievements

• Developed and implemented responsible gaming programs in various countries, including a unique access control system (NOVOCARD™) in Lower Austria.
• Supported numerous social and cultural initiatives in Austria and internationally.
• Maintained a workforce with above-average proportion of women (41.2% in Austria).
• Implemented a company code of conduct.

Governance Achievements

• Established a Corporate Compliance Programme to prevent legal violations.
• Appointed an internal Regulatory Compliance Officer.
• Implemented a data protection program with an external data protection official.

Climate Goals & Targets

Environmental Challenges

• Economic downturn affecting the gaming industry.
• Decreased casino investments.
• Product piracy.
• Ecological challenges of a manufacturing company.

Mitigation Strategies

• Countercyclical investments in R&D and expansion of gaming facilities.
• Intensified fight against product piracy.
• Implemented environmental initiatives in production sites.
• Developed a long-term environmental strategy.

Supply Chain Management

Responsible Procurement

• Preference for regional suppliers
• Compliance with environmental and labor law standards
• Use of certified wood and RoHS-compliant electronic components

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte Audit Wirtschaftsprüfungs GmbH

Environmental Metrics

ESG Focus Areas

• Responsible Corporate Governance
• Prevention and Player Protection
• Employees
• Social Commitment
• Environment and Environmental Management

Environmental Achievements

• Implementation of an environmental management system according to ISO 14001 at Austrian Gaming Industries GmbH (AGI) (certified in March 2014)
• Reduction of electronic scrap through measures including passing on old PCs/notebooks to a non-profit organization
• Introduction of a guideline for the collection and recycling of waste at Gumpoldskirchen

Social Achievements

• Reduced employee turnover to 15.3% worldwide and 19.8% early turnover
• Increased percentage of female employees to 38.3%
• Investment of €1.2 million in training and further education programs

Governance Achievements

• Introduction of a Group-wide compliance management system
• Group-wide implementation of a compliance platform (in progress in 2013)
• Establishment of a whistleblowing system

Climate Goals & Targets

Environmental Challenges

• Maintaining a balance between profitability and responsibility to stakeholders
• Managing compliance risks
• Addressing the challenges of responsible gaming in diverse international markets
• Raising employee awareness of environmental issues

Mitigation Strategies

• Implementation of a Group-wide compliance management system and risk management system
• Development and implementation of a Responsible Gaming Code
• Development of e-learning training programs on compliance and responsible gaming
• Distribution of an environmental guideline to all employees

Supply Chain Management

Responsible Procurement

• Focus on relationships with licensed gaming operators
• Clear sales processes and employee training for selecting sales partners
• Commitment to fair business conduct and avoidance of practices that limit competition

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1 (Application Level C+)

Certifications: ISO 14001 (AGI)

Third-party Assurance: Deloitte Audit Wirtschaftsprüfungs GmbH (limited assurance)

Environmental Metrics

ESG Focus Areas

• Employees
• Environmental
• Social
• Governance
• Environment

Governance Achievements

• Renewed certification to the internationally recognized G4 standard for player protection

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and associated lockdowns and restrictions impacting business performance, particularly in the Gaming Operations segment.
• Supply shortages and delays impacting production.
• Regulatory changes, such as tax increases in Italy and the new State Treaty on Gaming in Germany.

Mitigation Strategies

• Numerous cost optimization and efficiency enhancement measures implemented throughout the Group.
• State subsidies for personnel costs claimed.
• Continued work to realign the Global Sales and Global Production & Logistics business segments and to restructure the central Global Operations business segment.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: G4 standard for player protection

Environmental Metrics

ESG Focus Areas

• Responsible Entertainment
• Always Compliant
• Enjoy Working with Us
• Going Green
• Active in the Community

Environmental Achievements

• Expansion of photovoltaic systems at headquarters and numerous subsidiaries planned.
• Increased share of electricity from renewable sources in Spain.
• Installation of 1,430 solar panels in Germany.
• Photovoltaic plant in Australia generating over 306 MWh of green electricity annually.
• Additional 75 MWh contributed by a new plant in North Macedonia in 2022.

Social Achievements

• Launched Group-wide employer branding campaign “WE ARE NOVOMATIC”.
• Continued NOVOTalent program for high-potential employees.
• Implemented specialist management development training with a focus on digital leadership.
• Provided support to Ukrainian employees affected by the war.
• Achieved G4 certification for player protection in Italy and Spain.

Governance Achievements

• Implemented Group-wide whistleblowing platform NOVOTRUST.
• Expanded Group policy, contracting partner review and reporting.
• Group-wide AML survey conducted.
• Group-wide roll-out of corruption prevention e-learning course.
• Completed one of the largest transactions in NOVOMATIC’s history with the acquisition of a majority stake in the Italian HBG Group.

Climate Goals & Targets

Environmental Challenges

• Global rise in inflation rates.
• High price volatility in some expense items, such as energy costs.
• Conflict between Russia and Ukraine impacting global economy.
• Supply chain disruptions.
• Shrinking overall market in Germany.

Mitigation Strategies

• Hedging contracts.
• Investments in sustainable energy sources.
• Measures aimed at improving cost efficiency.
• Acquisitions to expand market presence.
• Continued focus on product innovation and performance.

Supply Chain Management

Supplier Audits: 90% of suppliers of producing NOVOMATIC subsidiaries audited in 2022.

Responsible Procurement

• NOVOMATIC Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Volatile energy prices.

Opportunities

• Expansion of renewable energy sources.

Reporting Standards

Frameworks Used: GRI, UN Global Compact, Sustainable Development Goals (SDGs), EU Taxonomy Regulation, Austrian Sustainability and Diversity Improvement Act (NaDiVeG)

Certifications: ISO 9001, ISO 27001, ISO 14001, ISO 45001, G4

Third-party Assurance: Deloitte Audit Wirtschaftsprüfungs GmbH

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 16

Detailed explanation of alignment with SDGs throughout the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• US-A-BIZ AWARD 2022 (Silver)
• Second-most valuable Austrian brand in the Austrian Brand Value Study 2022
• Fourth place in the Sustainable Brand Ranking of the European Brand Institute (EBI) with AAA
• Global Gaming Awards Asia (Novo Unity™ II)
• Various employer awards (Best Recruiters, Leading Employers, Best Employer, kununu TOP Company & OPEN Company, Austrian Leading Companies, berufundfamilie)