UK hlodern Siavery Act statement

In accordance wih Anicte 54 ofthe UK Modem SiaveFy Act of2015,SEGA SAMMMY HOLDINGSINC.
(hereinafter refered to as

SEGA SAMMY")hereby releases this statement on effotts to prevent stavery,

human tramcking and other human rights violations in the businesses and supply chains of the SEGASAMMY Group.
1,Organizational S,ucture ofSEGA SAMMY Group

SEGA SAMMY is a holding company for the SEGA SAMMY Group,which is the comprehensive
company Bloup of entertairlment businesses,

SEGA SAMMY Group's mission isContinuing to create

moving expericnces"and̀̀Making life more colorfut"across a wide range of genres ranging from Pachislot
and Pachinko rnachines business centered on Sanll■ y Corporation to entenainment contents business centeredon SEGA Group's digital game business,which includes alnusement machine development and facihty
operation, development of video contents and toys, and resott business, which is represented by thedevelopment and operation ofhotels.

Our mission as a comprehensive entenainment cOmpany working to provide new means of ente五 五nmentis
to maximize group― wide synergy and offer entertttnment products at a quality level only the SEGA SAMMY
Group is capable of providing.

In the UK,the SEGA SAMMY GЮ up is engaged mainly in game software development and salesthlough
Sega Europe Ltd,and flve other companies.In the iscal year ending March 31,2018,total turnover at our six

UK companies totaled approximately￡ 205 million.
Please referto the following URLs for more informttion aboutthe SECA SAMMY Group.
httpsiモ翠wwsettasammv.co.ip/en寇

1をsh/

2. Poncy on Prevention of Slavery and Human Trafflcking

The SEGA SAMMY GЮ up respects human ttghts and engages in a variety ofinitiat市

es to prevent human五ghts宙 olations such as slavery and human tramcking in ow businesses and supply chains.

SEGA SAMMY vowsto

Respect human riBhts",

Protect humtt rights",and

Prohibit human rights

violttions"under thè̀SEGA SAMMY Group Code of Conduct'',and to tteat all Group employees fairly incompliance with iabou卜 reltted laws and regulations underPoncy"in theFurther,theSEGA SAWIMY Group Human Resources(3roup Management Poncy".

SEGA SAMMY Group Supply― Chain CSR Deployrnent Cuidebook"sets fo■

h clear standardsPЮ hibit imumanc trcatmcnt and in,ingements of human dBhts",

Prohib■ forcedfor compliance as tolabour"and̀̀Prohibit child labour"in order t9 prevent human rights violations in the supply chain such as

siavery and human tramcking.

Since 2014,SEGA SAMMY has panicipated in he U前 ted Nations Global Compact(declared suppon fOr its ten principles, Principle 4 of the LINGC states
en.inatiOn of all forms offbrced and compulsoりlabour".

UNGC'')andBusinesses should uphold thePlease refer to the following URLs for more infoュ ニュ
Дation aboutthe SEGA SAMMY Group Codc ofConduct,

the Group Management Policy,andthe SEGA SAMMY Group Supply―

Chain CSR Deployコ nent Guidebook.

SEGA SAMMY Group Code ofConduct
https:チ,wwttsettasammv.co.ip/entlish/pr/commu/csr/宜r cst/

Gloup Management Policy

SEGA SAMMY Group Supply‐ Chain CSR Deployment Guidebook
h位 っsiヽw‐ settasammv.co.ip/en21ish/media/五 le/pr/commu/csr/2014H01 supplvchain csr.pdf

3.Efforts to Prevellt Slavery and Human Tramcking
Supply Chain Manattement lnitittives

The SEGA SAMMY Group believes that slavery and human traricking are more likely to occur in supply
chains outside of the SE《 3A SAMMY Group as opposed to within,and is accordingly working on supply

chain managementto ensure thtt human ri8htS Violations also do not occurin external supply chains,

Speciically,the SEGA SAMMY Group conducts slavery and human tramcking risk assessments andimplements initiatives to prevent stavev and human trafflcking especiany regarding procurement of prize
products and toy products for thc Group's cntcrtainment content business, mainly targeting factories ofoverseas lnanufacturing subcontractors that are considered potentially high― risk.

れrith respect to prize products,the Purchasing Divisionτnd the Quality Conrol Division of Segalnteractive Co。 ,Ltd.together visit subcontractor factories once every two months to perfoHn factory audits byGroup employees ttld third panies,including on― site inspections(appЮ 対mately 920/O coverage ratio based on
he number of prize product manufacturers contracted under Sega lnteract抒e Co.,Ltd.).Sega Ente五 所nmentCo.,Ltd.also conducts a questionnaire suⅣ ey on slave labour and human ttamcking for its lnain supphers ofamusement facility prize products and strives to reduce risks by keeping track of product management(apprO苅 mately 600/O coverage ratio based on he purchase alnount of prize products at SEGAENTERTAINMENT Co。 ,Ltd.)。
れrith respect to toy products,SECA TOYS CO.,LTD.is promoting the re― execution of manuttcturingsubcontractor agreements that include provisions for comphance with laws and regulations related to childlabollr and forced labour,and has also been pЮ viding human dghts tr所 ning for purchasing depanment
employees and local staff and monitoring whether third― patty labour standard comphance certiicates havebeen obtained by subcoHractors(apprO対

mately 960/c coverage ratio based on the number of toy productmanufacturers contracted under Se8a TOYS CO.,LTD.).

FurtheL in the SECA SAMMY Gloup,Sega Europe Ltd.in the UK issues sttteme耐 s(in English only)
pursuantto he UK Modem Slavery Act.
http://w、 wⅢwiseFtta.co.uk/modern― slavery‐ act― transparencv― statement

Intemal AwarenessSECA SAMMYhas held explanatory sessions forthe heads ofmttor purchasing d抒

iSons wtthin he SECA

SAMMY Group on the prevention of slavery and human tramcking, as wen as a training session on theprevention of siavery and human trafrlcking fOr the heads of the toy division in February 2016.

FurtheL an

employees ofthe SEGA SAMMY Group(Cumulat抒 e total of appro対 mately 2,400 employees as of March2018)have undergone CSR tr五 ning and learned about our e∬ o五 s to prevent child labour and forced labol止4. Future Endeavors
SEGA SAMMY will continue to implement dle aforementioned supply chttn management initiatives in thebusinesses and supply chains ofthe SEGA SAMMY G■ oup as part of our endeavours necessary to prevent

human ights violations such as stave labour and human traFicking.In this way,SEGA SAMMY wiH
endeavour to prevent human rights violations such as slavery and human trafflcking.

5. Board approval
This stttement has been approved by SEGA SAMMY's Board ofDirectors.

September 28,2018

SECA SAMMY HOLDINGSINC.