August 2, 2021(Translation)
Dear all,Name of Company:
Name of Representative:

SEGA SAMMY HOLDINGS INC.
Haruki Satomi,
President and Group CEO,
Representative Director(Code No. 6460, Tokyo Stock Exchange 1st Section)
Further Inquiry:

Makoto Takahashi,
Senior Vice President,
Executive Officer,
Managing Director ofCorporate Planning Division(TEL: 03-6864-2400)

Notice of Issuance of Stock Options to Employees of the Company and Director of the Board, Executive
Officers and Employees of the Company's Subsidiaries

SEGASAMMY HOLDINGS INC. (the Company) hereby notifies that we have resolved to issue stockacquisition rights as stock options at Board of Directors meeting held today as described below.

Description

1． Reasons for the issuance of stock acquisition rights as stock options
Set an aim to increase motivation and morale toward improving the overall performance of the Groupand to promote management that is conscious of shareholders and stock prices.
2． Name of stock acquisition rights
SEGA SAMMY HOLDINGS INC. stock acquisition rights issued in September 2021 (for employees)
3． Outline for the issuance of stock acquisition rights(1) Persons to whom stock acquisition rights are to be allotted and their numbers, and the number of theallotted stock acquisition rights
168 Employees of the Company: 3,510 rights
12 Directors of the Board of the Company's subsidiaries : 620 rights
25 Executive officers of the Company's subsidiary: 1,115 rights
1,448 Employees of the Company's subsidiary: 24,190 rights(2) Type, content and number of stocks to be issued upon the exercise of the stock acquisition rights
Shall be 2,943,500 shares of common stocks. The number of stocks to be issued upon theexercise of each stock acquisition right (for one right) shall be 100 stocks.
However, in the event that the Company conducts a stock split (including allotment of stocks
1without contribution) or a reverse stock split after the allotment date, the number of stocks
granted in relation to the stock acquisition rights that have not been exercised at the time of suchstock split or reverse stock split shall be adjusted proportionally in accordance with the ratio of
the stock split or reverse stock split using the following formula.
Number of stocks after the adjustment = number of stocks before the adjustment x ratio of split(or reverse split)
In addition, in the event that the Company merges with other company, conducts a corporatesplit, carries out a capital reduction, or any other unavoidable event that requires adjustment of
the number of granted stocks pertaining to this stock acquisition rights in accordance with thesecases, the Company may adjust the number of stocks to a reasonable extent by a resolution of
the Board of Directors meeting.
(3) Total number of stock acquisition rights
29,435 rights(4) Amount to be paid for stock acquisition rights
No payment of cash payment shall be required in exchange for the stock acquisition right.
(5) Exercise period of stock acquisition rights
From July 1, 2024 to June 30, 2026
(6) Conditions of exercise of stock acquisition rights
The persons to whom the stock acquisition rights are allocated shall remain Directors of theBoard, executive officers or employees of the Company or the Company's subsidiaries, or inother positions equivalent to that of at the time of exercising their stock acquisition rights.
Provided, however, that this shall not apply to the case where there are justifiable reasons suchas resignation due to the expiration of the term of office or other equivalent reasons.
Other conditions for the exercise of rights shall be as set forth in the stock acquisition rightsubscription agreement concluded between the Company and the subject persons based on aresolution of Board of Directors meeting.
(7) Amount of capital and capital reverse to be increased in the event that stocks are issued upon
exercise of stock acquisition rights
Amount of capital to be increased in the event that stocks are issued upon exercise of stockacquisition rights shall be one-half of the upper limit of the increase of capital and etc. calculated
in accordance with Paragraph 1 of Article 17 of the Corporate Accounting regulation, and any
fraction less than one (1) yen resulting from such calculation shall be rounded up to the nearest
one (1) yen.
Amount of capital reverse to be increased in the event that stocks are issued upon exercise ofstock acquisition rights shall be the amount subtracting the amount of capital to be increased as
mentioned above from upper limit of the increase of capital and etc. mentioned above.
(8) Matters concerning the acquisition of stock acquisition rights
If a proposal for approval of a merger agreement under which the Company will become an
extinguished company in an absorption-type merger or an extinguished company in aconsolidation-type merger, a split agreement or split plan in which the Company will be thesplitting company, a stock exchange agreement under which the Company will become a wholly
owned subsidiary in a stock exchange, or a stock transfer plan under which the Company will
become a wholly owned subsidiary through the stock transfer is approved at Company's general
meeting of shareholders and if the Company determines a certain date as necessary for the2acquisition of stock acquisition rights by a resolution of the Board of Directors meeting of theCompany, and such date arrives, the Company may acquire the stock acquisition rights withoutcompensation on such date.
(9) Restriction of transfer of stock acquisition rights
Any acquisition of stock acquisition rights by transfer shall require the approval of the Board ofDirectors meeting of the Company.
(10) Treatment of stock acquisition rights at the time of organizational restructuring
In the event that the Company effect a merger (limited to the case where the Company
extinguishes as a result of the merger), absorption-type company split (limited to the case wherethe Company becomes a split company), incorporation-type company split, stock exchange(limited to the case where the Company becomes a wholly-owned subsidiary company), or stocktransfer (hereinafter collectively referred to as the "Organizational Restructuring Acts"), in eachcase, the Company will respectively issue stock acquisition rights of corporation mentioned from
イ (i) to ホ (ho) in Item 8, Paragraph 1, Article 236 of the Companies Act (hereinafter"Restructured Company") to the persons who hold the stock acquisition rights remaining as ofthe effective date of Organizational Restructuring Acts (hereinafter "Remained Stock AcquisitionRights"), under the following conditions. In such cases, the remaining stock acquisition rights
shall be extinguished, and the Restructured Company shall issue new stock acquisition rights.
Provided, however, this shall be limited to cases where it is stipulated in an absorption-typemerger agreement, consolidation-type merger agreement, absorption-type company splitagreement, incorporation-type company split plan, stock exchange agreement, or stock transfer
plan that stock acquisition rights of the Restructured Company shall be granted in accordancewith the following conditions.
iType of stocks of Restructured Company to be issued upon the exercise of the stockacquisition rights
The type of stock shall be common stock of the Restructured Company.
ii
Number of stocks of Restructured Company upon the exercise of the stock acquisition rights
The decision shall be made in accordance with (2) above after taking into consideration
the conditions of the Organizational Restructuring Acts.
iii Number of the stock acquisition rights of a Restructured Company to be granted
The same number as the number of the remaining stock acquisition rights held by theholders of stock acquisition rights of Remained Stock Acquisition Rights shall be granted
respectively.
iv Exercise period of stock acquisition rights
The period shall commence on the exercise period of stock acquisition rights stipulatedin (5) above or the effective date of the Organizational Restructuring Acts, whichever islater, and shall end on the last day of the exercise period of stock acquisition rights
stipulated in (5) above.
v Conditions of exercise of stock acquisition rights
Determine in accordance with (6) above.
vi Matters related to the amount of capital and capital reverse to be increased in the eventthat the stocks are issued upon exercise of stock acquisition rights
Determine in accordance with (7) above.
vii Matters concerning the acquisition of stock acquisition rights
Determine in accordance with (8) above.
viii Restriction of transfer of stock acquisition rights
Any acquisition of stock acquisition rights by transfer shall require the approval of theRestructured Company.
ix Amount of assets to be contributed upon exercise of stock acquisition rights3

Amount of assets to be contributed upon exercise of each stock acquisition right to be
granted shall be the amount obtained by multiplying the adjusted amount to be paid perstock to be issued or transferred upon exercise of stock acquisition right taking theconditions of the Organizational Restructuring Acts and etc. into account by the numberof stocks of the Restructured Company to be issued upon the exercise of the stockacquisition rights as determined in accordance with ii above.
(11) Treatment of fractions resulting from the exercise of stock acquisition rights
Fractions of less than one stock in the number of stocks to be granted to the holders of stockacquisition rights who have exercised stock acquisition rights shall be rounded off.
(12) Allotment date of stock acquisition rights
September 1, 2021
(13) Amount of assets to be contributed upon exercise of stock acquisition rights
Amount of assets to be contributed upon exercise of stock acquisition right shall be the amountobtained by multiplying the amount to be paid in per stock to be issued upon exercise of thestock acquisition rights (hereinafter "Exercise Price") by the number of stocks to be issued upon
the exercise of this stock acquisition right.
The Exercise Price shall be the amount obtained by multiplying the average closing price of ourcommon stock on the Tokyo Stock Exchange on each day of the month preceding the month inwhich the allocation date belongs (excluding the days on which the transaction is not concluded)(herein after “Closing Price”) by 1.05, and any fraction less than one (1) yen resulting from suchcalculation shall be rounded up. Provided, however, if such amount is less than the closing priceon the day before the allotment date (or, if there is no closing price on that day, the most recent
closing price prior to that day), the amount shall be the closing price on the day before theallotment date. In the event that the Company conducts a stock split (including allotment ofstocks without contribution) or a reverse stock split to common stocks of the Company after theallotment date, the Exercise Price in relation to the stock acquisition rights that have not been
exercised at the time of such stock split or reverse stock split shall be adjusted proportionally inaccordance with the ratio of the stock split or reverse stock split using the following formula andany fraction less than one (1) yen resulting from such calculation shall be rounded up.
Exercise Price after the adjustment = Exercise Price before the adjustment x 1 / ratio of split (orreverse split)
In addition, in the event that the Company issues new stocks or disposes treasury stocks ofCompany's common stock at a price lower than the market price after the allotment date
(Excluding the cases of sale of treasury stock pursuant to the provisions of Article 194 of theCompanies Act (request for sale of shares constituting less than one unit by shareholders
constituting less than one unit), conversion or exercise of securities to be converted into or
convertible into common stock of the Company or stock acquisition rights (including those
attached to bonds with stock acquisition rights) that can demand the grant of common stock ofthe Company) , the Exercise Price shall be adjusted proportionally in accordance with thefollowing formula and any fraction less than one (1) yen resulting from such adjustment shall berounded up.

Exercise Price after the adjustment = Exercise Price before the adjustment x (number of stocks
outstanding + number of newly issued stocks x amount to be paid per share / market price pershare before new issue) / (number of stocks outstanding + number of newly issued stocks)
4

In the above formula, the "number of stocks outstanding" shall be the number obtained bydeducting the number of treasury stocks pertaining to the common stocks held by the Company
from the total number of common stocks outstanding by the Company, and in the case of
disposal of treasury stocks, the "number of newly issued stocks" shall be replaced with the"number of treasury stocks to be disposed of".
In addition to the above, in the event that the Company merges with other company, conducts acorporate split, carries out a capital reduction, or any other unavoidable event that requires
adjustment of the Exercise Price in accordance with these cases, the Company may adjust theExercise Price to a reasonable extent by a resolution of the Board of Directors meeting.
(14) Matters related to stock acquisition rights securities
The Company will not issue stock acquisition rights securities for stock acquisition rights.
4． Contents of the arrangements between the person to whom solicitation is sought and the submitting
company
Pursuant to the provisions of the stock acquisition right subscription agreement concluded between
the Company and the subject persons.

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