Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions from 8,815.1 (1,000Kwh) in FY2019 to 7,937.1 (1,000Kwh) in FY2020. Intensity decreased from 0.96 t-CO2/machine to 0.86 t-CO2/machine.
• Installed energy-saving air conditioners in seven halls and LED lighting in six halls, with plans to expand this to other halls.
• Minimized environmental impact of pachinko machine disposal through sales to trade-in dealers or recyclers.

Social Achievements

• Granted the “Eruboshi” certification with a three-star rating for promoting women’s participation in the workplace.
• Implemented measures to improve the working environment and support employees with childcare and housework.
• Introduced a “Personal System” to alleviate employees’ physical work burden.
• Provided mental health care and periodic health checks to employees.

Governance Achievements

• Full compliance with the CG Code (except for Code Provision A.2.1 regarding separation of Chairman and CEO roles).
• Compliance with the Model Code on securities transactions by directors.
• Established Audit, Remuneration, and Nomination Committees.

Climate Goals & Targets

Environmental Challenges

• Continuing market contraction and intense competition in the pachinko industry.
• Adverse impact of COVID-19 on customer traffic and temporary closure of pachinko halls.
• Stringent requirements on advertising due to regulations.
• Increased consumption tax in Japan.

Mitigation Strategies

• Acquiring machines that generate customer interest, renovating halls, and improving customer service.
• Monitoring market changes and enhancing operational efficiency.
• Implementing safety measures at pachinko halls to encourage customer traffic.
• Diversifying revenue streams through property investment and bond investments.
• Exploring new business segments, such as an employment support center.

Supply Chain Management

Responsible Procurement

• Comprehensive compliance checks on business partners to ensure they are not associated with anti-social forces.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: Eruboshi (three stars)

Awards & Recognition

• Eruboshi (three stars)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions from 6,440.8 t-CO2 in FY2021 to 5,746.0 t-CO2 in FY2022. Reduced power consumption from 16,610,000 Kwh in FY2021 to 14,123,600 Kwh in FY2022.
• Installed energy-saving air conditioners in six of twelve pachinko halls and replaced air conditioners in some halls with more energy-efficient models.
• Installed LED lighting in nine of twelve pachinko halls.

Social Achievements

• Granted the “Eruboshi” certification with a three-star rating in July 2018 for promoting women's participation in the workplace.
• Introduced a “Personal System” to alleviate employees’ physical workload.
• Provided mental health care and periodic health checks to employees.

Governance Achievements

• Adopted an “ESG Declaration” and established an ESG committee.
• Complied with the Model Code on Securities Transactions by Directors.
• Established a whistleblowing hotline.

Climate Goals & Targets

Environmental Challenges

• Continuing market contraction and intense competition in the pachinko industry in Japan.
• Adverse impact from regulatory measures reducing the attractiveness of pachinko and pachislot games.
• Further outbreak of COVID-19 in Japan.

Mitigation Strategies

• Analysis of customer preferences to acquire popular machines.
• Renovation of existing pachinko halls and improvement of customer service.
• Monitoring market changes for acquisition opportunities and enhancing operational efficiency.
• Implementation of safety measures at pachinko halls (hand sanitizer, mask requirements).
• Diversification of revenue streams (vending machines, rental properties, horse management services).

Supply Chain Management

Supplier Audits: Comprehensive compliance checks on business partners.

Responsible Procurement

• Fair tendering by internal procurement team.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to pachinko halls due to natural disasters

Transition Risks

• Increase in costs such as carbon tax

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: Eruboshi (three stars)

Awards & Recognition

• Eruboshi (three stars)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions from 5,746.0 t-CO2 in FY2022 to 5,151.2 t-CO2 in FY2023
• Reduced power consumption from 14,123.6 thousand Kwh in FY2022 to 12,705.7 thousand Kwh in FY2023
• Installed energy-saving air conditioners in five of eleven pachinko halls and replaced air conditioners in other halls with more energy-efficient models.
• Completed installation of LED lighting in eight of eleven pachinko halls.

Social Achievements

• Granted the “Eruboshi” certification by the Minister of Health, Labour and Welfare with the highest rating of three stars in July 2018.
• Introduced “Personal System” to alleviate employees’ physical work burden.
• Provided mental health care and periodic health checks to employees.
• Implemented measures to improve the working environment of employees to promote the active participation of female employees.

Governance Achievements

• Adopted the “ESG Declaration” which sets forth the Group’s basic policy on addressing ESG issues.
• Established an ESG committee that reports to the Board on material ESG issues.
• Complied with the Model Code on Securities Transactions by Directors.
• Amended the Articles of Association in view of changes to Appendix 3 to the Listing Rules.

Climate Goals & Targets

Environmental Challenges

• Prolonged decline in the pachinko business coupled with rising operation costs due to global price increase and the decline in purchasing power of consumers.
• Continuous market contraction and intense competition in the pachinko industry in Japan.
• Adverse impact of the “Regulations to Partially Amend Regulations on the Entertainment and Amusement Trades Rationalising Act and Regulations on Certifying Machines and Conducting Type Test on Machines” on the pachinko and pachislot industry in Japan.

Mitigation Strategies

• Exploring new measures and opportunities to improve the Group’s operational performance and diversify its income sources.
• Introducing new models of pachinko and pachislot machines (Smart Slot Machines and Smart Pachinko Machines) to attract more customers.
• Implementing various safety measures at pachinko halls to ensure the health and safety of customers (e.g., hand sanitizer, face masks, Self-POS System).
• Strengthening the Group’s financial position through a placing of new shares.

Supply Chain Management

Supplier Audits: Comprehensive compliance checks on anti-social force laws and regulations on new business partners; annual checks on ongoing business partners.

Responsible Procurement

• Engaging with suppliers registered with industrial associations to ensure compliance with the Amusement Business Law.
• Fair tendering by the internal procurement team.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to pachinko halls due to natural disasters

Transition Risks

• Increase in costs such as carbon tax

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: Eruboshi certification (three stars)

Awards & Recognition

• Eruboshi certification (three stars)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions from 5,151.2 t-CO2 in FY2023 to 4,711 t-CO2 in FY2024
• Reduced power consumption from 12,705.7 thousand Kwh in FY2023 to 10,368.7 thousand Kwh in FY2024
• Installed energy-saving air conditioners in five of ten pachinko halls
• Completed installation of LED lighting in seven of ten pachinko halls

Social Achievements

• Granted "Eruboshi" certification with a three-star rating in July 2018 for promoting women's participation in the workplace
• Introduced "Personal System" to alleviate employees' physical workload
• Provided mental health care and periodic health checks to employees
• Reduced lost days due to work injury from 227.7 days in FY2023 to 151.2 days in FY2024

Governance Achievements

• Established an ESG committee
• Adopted an ESG Declaration
• Implemented anti-corruption training for all staff
• Established a whistleblowing hotline

Climate Goals & Targets

Environmental Challenges

• Continuous market contraction and intense competition in the pachinko industry in Japan
• Adverse impact of the 2018 Regulations on the pachinko and pachislot industry
• Significant financial burden due to the high expenses involved in updating equipment for new banknotes issued in July 2024

Mitigation Strategies

• Analysis of customer preferences to acquire attractive machines
• Introduction of new pachislot and pachinko machines (6.5 Model Pachislot Machines, Smart Slot Machines, Smart Pachinko Machines)
• Renovation of existing pachinko halls
• Improvement of customer services through staff training
• Proactive steps to update pachinko and pachislot machines compatible with new banknotes
• Adoption of a new prize-exchange system ("Self-POS System")

Supply Chain Management

Supplier Audits: Comprehensive compliance checks on anti-social force laws and regulations for new business partners; annual checks for continuous business partners

Responsible Procurement

• Fair tendering by internal procurement team
• Engaging with suppliers registered with industrial associations to ensure compliance with the Amusement Business Law

Climate-Related Risks & Opportunities

Physical Risks

• Damage to pachinko halls due to natural disasters

Transition Risks

• Increase in relevant costs such as carbon tax

Reporting Standards

Frameworks Used: Appendix C2 of the Hong Kong Listing Rules

Certifications: Eruboshi (three-star rating)

Awards & Recognition

• Eruboshi (three-star rating)