DYNAM JAPAN : ESG REPORT 2020

DYJH

ESG Report 2020

DYNAM JAPAN HOLDINGS Co., Ltd.

(incorporated in Japan with limited liability) Stock Code: 06889

DYNAM JAPAN HOLDINGS Co., Ltd.

ESG Report 2020

(1 April 2019 - 31 March 2020)

C o n t e n t s

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All employees work in unison to promoting ESG activities in line with our corporate philosophy.

Group Philosophy and The Structure

The Group engages in ESG with the idea of achieving sustainable growth based on its corporate philosophy entailing "a centurial commitment to building trust and encouraging dreams". We believe promoting ESG is the embodiment of this philosophy.

Corporate Philosophy

Five Management Policies

Three Principles of Actions

Charter of Corporate Behavior

A Centurial Commitment to Building Trust and Encouraging Dreams

A company cannot exist unless it consistently fulfills the responsibilities it has towards its employees, shareholders, financial institutions, business partners and other stakeholders, while at the same time it supports and contributes to customers and local residents. A company is expected to improve the daily lives of its stakeholders. It must also create a world in which all people are united in trust and able to live in peace. This corporate philosophy represents the spirit in which people and organizations that are united in trust continuously strive to achieve sustainable growth by using their collective energy to achieve their dreams. The term "centurial" that is used in our corporate philosophy refers to the long term. The Group maintains a long-term commitment to building trust and encouraging dreams.

Charter of Corporate Behavior

The reason for existence of a company is to achieve sustainable growth in line with the expectations of stakeholders, including shareholders, managers, employ- ees, partners, financial institutions and customers, and to grow to a certain scale and level of reliability that enable it to contribute to society. All employees of the Group share this principle.

The Group names the stakeholders described above "trusted associates". We are committed to strengthening our relationship with these partners through our business activities, so that we can grow based on a farreaching vision. As it grows, the Group will consistently fulfill the roles expected of it by each stakeholder, to ensure that the trust from the stakeholder also grows.

Trust, however, is fragile, and even a momentary lapse of focus can damage it forever. To ensure that it can continue to conduct its business without compromising that trust, the Group has adopted new internal control systems to improve its operations. These systems also clarify and eliminate factors that have the potential to lead to misconduct or violations of laws and regulations.

All of the Group employees, including those that work in the field, constantly take initiatives with full knowledge that such actions help to improve their operations. Through these initiatives, each member strongly believes that the Group can achieve stronger operating results and contribute to society more effectively.

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Group ESG Concept

2. For our Customers We prioritize our customers by constantly providing products and services from the customers' viewpoint.

System for Group ESG Advancement

In accordance with our basic ESG policy, and under the leadership of the board (the "Board") of directors (the "Directors") of the Company, the highest management decisionmaking entity, all employees work in unison to advance ESG activities across the entire Group. In the conference mainly run by the responsible section of ESG, we discuss and examine ESG activities for the Group's contribution to the sustainable development of society along with our "trusted associates*".

In disclosing this ESG Report, the Group refers to customers, local communities, business partners, employees, and shareholders of the Company (the "Shareholders") and investors as "trusted associates", but this does not limit who may be regarded as a trusted associate. Our basic stance is that the phrase is a broad concept that includes everybody (financial institutions, etc.) referred to in our corporate philosophy and code of conduct, and this in turn entails all involved stakeholders.

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We will continue to increase corporate value while aiming to be indispensable to local communities (local infrastructure) and continuing to improve value for all trusted associates.

Creation of Value for All Trusted Associates

Improvements in Both Social Value and Economic Value through ESG

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Living with Local Communities

Aiming to Become Indispensable to Local Communities (Local Infrastructure)

The Group engages in economic activities deeply rooted in communities through its core business of pachinko hall operations. Pachinko hall operations are made possible not just by the customers who come to the halls, but through the support of all trusted associates such as local community residents, business partners and employees. Without the development of local communities, it is not possible for the Group for to develop. We aim to gain recognition from trusted associates and become indispensable to local communities (local infrastructure). We believe this will lead to the Group developing together with the local communities. To become local infrastructure, it is indispensable to use the Group's core businesses to confront issues facing society and to build a relationship of trust with local communities. We also believe it's important to grow together with the community and develop business while continuing to strive for constant improvement of corporate value.

Setting Specific Goals to Become Local Infrastructure

Until now, the Group has aimed to make pachinko into infrastructure based on the vision of providing everyday entertainment that anyone can enjoy in a comfortable environment. However, there was no clear way to know whether pachinko has become infrastructure, nor has any specific action guidelines been put down. We discussed among in-house departments about what it is for pachinko to be a local infrastructure, and we itemized the views and values that had never been clearly stated hitherto as it was considered tacit knowledge. The Group then set the 10 Goals to Make Pachinko into a Local Infrastructure as medium- to longterm action guidelines.

Making Pachinko into Infrastructure

Management of Risks and Opportunities

Companies have an impact on society in various ways as a result of their business activities. We see business opportunities for long-term growth from the positive impact we can have on solving problems in local communities, such as the health benefits of playing pachinko in preventing dementia, and ideas for new types of pachinko halls. We understand there are risks that threaten business growth, including the negative impact of gaming addiction. While monitoring and properly managing these risks and opportunities, we aim to maximize the value we provide to trusted associates.

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We identify topics centered on people and clarify the course of initiatives, while referring to international guidelines and the opinions of trusted associates.

While considering the viewpoints of trusted associates, we have categorized each topic we think to be vital to the sustainable development of the Group: E stands for the environment, S stands for society and G stands for governance. Our actual ESG activities are aligned with a category, clarifying the aims of specific initiatives.

Process for Identifying and Deciding Priority ESG Topics

References Made to International Guidelines and Objectives

The Group has narrowed down its ESG categories while referring to guidelines set by The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") for disclosing ESG information and international guidelines related to ESG.

Reference Guidelines

Appendix 27 to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange

Appendix 27 is an attachment to the rules for companies listed on the Hong Kong Stock Exchange. It contains guidelines for the disclosure of ESG information.

Global Reporting Initiative (G4)

Global Reporting Initiative (G4) is an international guideline for the disclosure of ESG information created by the Global Reporting Initiative, a non-profit organization whose mission is to set international standards related to sustainability.

ISO 26000

ISO 26000 is the Guidance for Social Responsibility issued by the International Organization for Standardization (ISO).

International Goals

New international goals have been created to address social issues, including Sustainable Development Goals by the United Nations in 2015 and the Paris Agreement at COP21. The Group views this global trend as the universal social request that should be recognized in discussing the Group's ESG. We refer to these items and categories of needs in our process for deciding our main ESG topics.

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Our Main ESG Topics and Initiatives

Relationship between our ESG and the goals

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Naming our stakeholders "trusted associates," we build relationships by disclosing information and engaging in dialogues.

Two-Way Communications

The Group names its "stakeholders", such as customers, local communities, business partners, employees, Shareholders and investors, as "trusted associates". We are strongly aware of the importance of building relationships based on trust. Since before its listing in 2012, the Group has placed an emphasis on communication and the disclosure of information referred to in the management policy. This is because we believe the sustainable development of the Group depends on listening to and understanding the opinions and expectations of our many trusted associates while engaging in business activities. While properly disclosing information, the Group uses discussions with stakeholders as an opportunity to examine whether its business activities meet their demands and expectations, and feeds back this information in business activities.

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E

Environment

1. Group Operations and The Environment
2. Energy Usage

12 Green IT

1. Initiatives for A Recycling Society
2. The Local Environment

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5 Environment

With the understanding that global environmental problems are issues that affect the entire human race, we aim to reduce the environmental burden of our core operations through efforts to preserve the environment.

In 2015, COP21 was held in Paris, and an agreement was reached to set international targets for combating global warming. Global environmental issues such as climate change, energy consumption, and pollution are developing, with economic activity as a contributing factor.

Society is organizing itself on the premise of further sustaining our global environment.

Fulfilling corporate responsibility in regards to the environment is considered essential to the Group's sustainable development. The Group aims to reduce the environmental burden of its core operations through efforts at environmental conservation.

Group Operations and The Environment

The Group has an impact on the global environment through the operation of its pachinko halls, its core business. Below is a summary of environmental impact recognized by the Group and the scope of its environmental management system.

Disclosure of information about the environment

We disclose the amount of electricity used and its carbon dioxide ("CO2") equivalent based on the recognition that electricity usage indirectly leads to the emission of greenhouse gases (Scope 2). We also report on our activities to reduce environmental impact by appropriately managing energy usage, properly disposing of waste, and paying attention to the local environment.

The total power consumption and CO2 emissions are calculated in accordance with the prescribed aggregation method for environmental reporting to the Ministry of Economy, Trade and Industry in Japan. *1, 2, 3 calculated based on the Group in Japan

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5 Environment

Energy Usage

Direction of Specific Measure

Appropriately managing energy usage

With the aim of contributing as much as possible to the realization of a sustainable society and in recognition of its important role in environmental conservation, the Group appropriately manages energy usage at all of its facilities, including the 448 pachinko halls across Japan and its head office.

In employee offices, efforts to save electricity include adjusting the temperatures of air conditioning systems and turning off indoor lighting and other equipment when not in use as these are major consumers of electricity. Through the use of green IT as well, the Group will further establish each em- ployee's awareness on electricity conservation.

Green IT

The Group has a large number of information communications devices located in the employee spaces of pachinko halls and the offices of its headquar- ters. Our aim is to help realize a low carbon society by appropriately managing electricity usage, while helping to preserve the environment by using this information communications equipment to increase work efficiency and cut down on electricity consumption.

Web conferencing

Videoconferencing systems are promoted for online meetings involving employees working in different locations. This helps minimize energy consumption by reducing the distance that employees must travel.

Moving to paper-free, electronic in-house documents

By moving to paper-free, electronic in-house documents, we aim to reduce the amount of office paper used as well as cut down on the consumption of electricity by photocopiers and printers. Electronic documents also facilitate the efficient use of web conferencing.

Limiting the use of in-house servers

We are moving ahead with the use of the cloud-based desktop as a service (DAAS) as a response to conserve electricity. Electricity usage is reduced by limiting the use of computer servers by making software available to users over the network.

Proper disposal by subcontractors of used information communications equipment

When subcontracting the disposal of information communications equipment, we obtain certification from the vendors proving proper disposal, including CO2 reduction certificates, reuse-recycle certificates, and resource consumption reduction outcome certificates. In this way, we obtain greater clarity on how waste is disposed.

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5 Environment

Initiatives for A Recycling Society

Direction of Specific Measure

Proper disposal of waste to realize a recycling society

To contribute to the realization of a recycling society, we have ongoing initiatives in place to reduce environmental impact as much as possible by limiting the amount of natural resources we use and ensuring waste is properly disposed after making every effort to minimize waste volume.

When used game machines are disposed of, they are treated as industrial waste and must be disposed of in line with pre-established procedures prescribed by Japanese law. The Group has created in-house rules for the disposal of waste in compliance with laws and regulations, and has a framework for properly disposing game machines. Parts and materials that can be reused are handled by the Yugiki Recycle Kyokai. In only rare cases are game machines sent directly to landfill as waste.

Creating a framework for zero waste

In addition to reducing waste as much as possible, we have been working to create a framework for producing zero waste. When upgrading equipment in our pachinko halls, for example, our terms and conditions for business partners require that a minimum of cardboard is used for the transportation of equipment to our pachinko halls, and that returnable containers are employed instead to help reduce the impact on the environment.

Reduce Environmental Impact Through Efficient Utilization of Logistics Functions

Reuse of game machines among Group halls

To control machine expenses (the procurement cost of gaming machines), the Group has established 16 distribution centers throughout Japan, each of which covers the logistical needs and facilitates the sharing of gaming machines among 20 to 30 halls. In addition, the centers help to establish a framework for minimizing generation of industrial waste.

Reduction of CO2 Emissions Through Modal Shift for Gaming Machine Transport

Considering the possibility of future expansion for gaming machine distribution, Group company Dynam has begun a modal shift from trucking transport to railway container transport. Along with the ability to implement accurate and stable transportation of goods, CO2 emissions will also be reduced through railway container transport, a method of transport that can be said to be considerate of the environment. From here on, Dynam will proactively carry out the modal shift to rail transport for long-distance mass conveyance between distribution centers, striving to lessen its environmental impact and move towards a realizing a sustainable society.

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5 Environment

The Local Environment

Direction of Specific Measure

Consideration for the local environment

As a member of local communities, the Group pays special consideration to the environment around its pachinko halls where local residents live, while ensuring compliance with laws and regulations.

Low-noise Recreational Spaces

We strive to reduce noise within our pachinko halls (i.e., loud noises and jarring sounds) to provide our customers with a comfortable environment for playing pachinko. We have been updating equipment in each of our pachinko halls to keep down noise levels by installing sound-dampening materials and soundproof walls. Moreover, we consider local residents who live nearby by taking measures to reduce noises made by outdoor air conditioning systems and ventilation systems.

Compliance with Laws and Regulations and Monitoring by Third-party Organizations

Compliance with environmental laws and regulations

Our corporate activities are in compliance with Japanese laws and regulations related to the environment. Including but not limited to air and greenhouse gas emissions discharges into water and land, and generation of hazardous and non-hazardous waste. We have not experienced any legal violations.

Monitoring by third party organizations

Dynam, the subsidiary of the Company, is evaluated and rated by the Pachinko-Trusty Board (PTB) every year, and is monitored by third-party organizations for compliance with laws and regulations as a pachinko hall operator, in addition to their internal management systems. PTB is an independent industry organization consisting of leaders and experts dedicated to improving the social stature of companies that operate pachinko halls. Since its establishment in 2005, PTB has conducted audits for the purpose of ensuring pachinko hall operators are trustworthy and safe for society. PTB's evaluation standards consist of 93 items and 10 categories, including the following two categories under five items for evaluating environmental conservation.

Social requirements

• Consideration of local communities (1) (neon lights, signage, etc.)
• Consideration of local communities (2) (noise)
• Consideration of local communities (3) (parking for cars and bicycles)

Other major laws and regulations

• Methods for disposing waste
• Environmental and energy-saving measures

In 2019, Dynam was highly rated for these five items under the said two cate- gories, showing that its management framework is a model-company level for listed companies.

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S

Social

16 Customers

20 Communities

23 Business Partners

25 Employees

31 Shareholders and Investors

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6 Social Customers

Aiming to create value by making pachinko equal to everyday entertainment that is fun, pleasant and safe for everyone.

Based on its customer-first policy, the Group takes action with customers foremost on our minds, providing products and services from the standpoint of customers. In operating pachinko halls, we create valuable experiences for our customers who play games on our game machines and through other services that bring them joy and comfort. We understand that continuing this approach steadily leads to the long-term creation of value. As local infrastructure, we will create value for our customers with the aim of providing everyday entertainment that anyone can enjoy in a comfortable environment.

Direction of Specific Measure

Aiming to Make Pachinko as Everyday Entertainment

Our vision of an ideal pachinko hall is one built without excessive investment, with rows of pachinko game machines that are fun and compelling to play in a comfortable setting staffed with fully-trained employees. To remain a going concern, we believe it is vital to turn pachinko into everyday entertainment that gives customers pleasure when they are playing pachinko. To this end, we strive to create an environment that is safe and relaxing for playing pachinko by constantly improving the recreational space and through customer satisfaction initiatives and employee training focused on people.

Operations with a Focus on People

Every day, our employees working in the Group's pachinko halls always put their effort in improving the operations by focusing on people. Our employees put their heads together and discuss the types of customer interactions and services that we should provide in terms of prices, quality and comfort, which are put into practice on the operational front lines. Out of these efforts, the ones likely to bring the best outcomes are shared among all pachinko halls through briefing meetings. As other companies in the sector are merged into the Group, the mixing of personnel will bring new ideas we previously did not have, thereby enhancing synergies and creating value across the Group as a whole.

Compliance with laws and regulations

We are in compliance with Japanese laws relating to health and safety, advertising, labelling and privacy matter relating to services provided by the Group.

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6 Social Customers

Efforts to Improve Customer Satisfaction

Training for interacting with customers

Employees are trained on how to interact with customers by external experts and other employees who have extensive experience and certain qualifications, to improve the quality of customer interactions with a focus on people while reviewing daily operations objectively. In addition to acquiring knowledge, our training programs are combined with on-the-job training that emphasizes the practical application of learning outcomes on the operational front lines.

Customer service desk

The opinions of our customers are essential to improving our services from the standpoint of customers. The Group learns about the diverse opinions and requests of our customers as employees at each pachinko hall interact directly with customers on a daily basis, and also through our customer service desk, telephone calls, letters and emails. All of this information is used to improve customer satisfaction.

Synergies through personnel exchanges among Group companies

Dynam and Yume Corporation exchange personnel by transferring employees between their pachinko halls. Each company brings their customer interaction and operational know-how accumulated over many years, increasing synergies at both companies and their abilities to provide customers with higherquality services.

Briefing meetings with a focus on people

Of the nationwide efforts with a focus on people, the best case studies are highlighted and shared at periodically held briefing meetings. These wideranging case studies serve as opportunities to raise awareness of discovering ways of creating new value, including through measures from a woman's point of view, promotions involving customers, and stronger ties with customers through prizes.

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6 Social Customers

Promotion of low playing cost games

One of our initiatives aiming for everyday entertainment is the promotion of low playing cost games. Low playing cost games are designed to entertain customers without imposing a significant cost burden on them. We have been promoting low playing cost games ahead of other pachinko companies.

*1,2,3 Calculated based on three pachinko hall operators of the Group (Dynam, Yume Corporation, and Cabin Plaza)

Improving and enhancing the recreational space of our pachinko halls

We aim to increase the value of our pachinko halls as recreational spaces, improving them in both soft and hard aspects, so customers can enjoy playing games in the comfortable environment of our pachinko halls.

Examples of Main Measures

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6 Social Customers

Creation of Framework for Playing Pachinko in a Safe and Secured Environment

For everyone to be able to easily enjoy playing pachinko as everyday entertainment, the Group believes in providing spaces that are always safe and secured for customers to play pachinko and seeks to evolve this framework.

Measures against addiction problem

We invite outside experts to give lectures while holding study sessions on a regular schedule for employees to correctly understand the issue of gaming addic- tion. Our internal training systems treat this issue as one of the most important topics. We periodically held meetings to assess the status quo across the entire organization, drew up specific policies and action plans, and then implemented these measures.

Initiatives involving industrywide entities

In order for the pachinko industry to take responsibility in addressing addiction issues and to disseminate more information on measures, etc., Pachinko hole companies jointly conduct study sessions on addiction issues so that society can gain understanding and cooperation. We will educate our employees further on this issue to provide an appropriate guidance to customers with addiction problems.

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6 Social Communities

While growing together as local infrastructure, we aim to have a mutually beneficial relationship with communities.

We have embraced "pachinko, living with communities" as our slogan for depicting our corporate stance on the operation of pachinko halls. This slogan comes from the belief that without development of towns there can be no development of the Group. As local infrastructure, we have taken initiatives to provide places for recreation in communities, reinventing pachinko as a form of everyday entertainment that anyone can enjoy in safety. Growing together as local infrastructure, we aim to have a mutually beneficial relationship with communities as we give back to society through our core business.

Direction of Specific Measure

Contributing to Society Through Our Business

Through the operation of pachinko halls, our core business, the Group provides entertainment venues where local people can spend time relaxing. We wish to be an essential part of communities by giving our customers a valuable experience filled with fun and relaxation at our pachinko halls.

An Everyday Form of Entertainment that Communities Need

The Group advocates "pachinko, living with communities" while operating pachinko halls in our core business. Our aim is to offer everyday entertainment needed by communities, while working to solve social issues through our core business, such as promoting employment and addressing an aging population.

Balanced Development of Local Communities

Looking at the landscape of the entertainment industry in Japan, entertainment facilities tend to concentrate in major metropolitan areas due to regional demographics and economic disparities. In regional areas where there are fewer entertainment facilities than major metropolises, we think that pachinko halls play a major role as a form of everyday entertainment. The Group has adopted a suburban strategy as a facet of its chain store management practices, and opens halls throughout Japan without showing a preference for a particular region.

Initiatives to Promote Self-Sufficiency Among Senior Citizens

Amid a rapid aging of the population across Japan, as an operator of pachinko halls we have put in motion initiatives responding to the needs of local communities from the perspective of welfare for senior citizens.

The Group aims to help senior citizens lead fulfilling lives through pachinko.

Pachinko Experience Parties at Nursing Care Facilities for Senior Citizens

With the aim of contribution to each region through pachinko, we held events where senior citizens could play Torepachi!, a type of pachinko designed for senior citizens, at facilities such as nursing care facilities.

Torepachi! is a pachinko machine specially developed by Toyomaru Sangyo, a pachinko machine supplier for welfare training, and is expected to provide rehabilitation benefits as participants become motivated to play these games for fun. Torepachi! makes it easier to concentrate on rehabilitation exercises for various areas. Group employees from nearby pachinko halls also participated in managing the pachinko hands-on events.

In addition, we entertained visitors to our pachinko halls with major game events based on the official "Moories" characters.

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6 Social Communities

Promoting Regional Employment

The Group has adopted a suburban strategy as a facet of its chain store management practices, and opens halls throughout Japan without showing a preference for a particular region. We believe the Group should play a major role in contributing to stability in the lifestyle of local residents by offering employment opportunities at our regional pachinko halls.

Contributing to Local Employment

By opening halls throughout Japan without showing a preference for a particular region, the Group is able to contribute to creating employment in various communities.

Employees Work Only in Designated Regions

The Group has put in place a system of hiring employees to work at pachinko halls in only designated regions. Employees hired by the Group commute from their homes to local pachinko halls, and are allowed to continue working there without being reassigned to a different region. In this way, our employment practices are rooted in local communities.

Extending Employment of Senior Citizens

With the aim of having senior citizens lead fulfilling lives while participating in society, in August 2016 we raised the hiring age for the Group's employees from 65 to 70, and increased the maximum work age to 75 years old. Our senior citizen employees work in our pachinko halls, parking lots and administrative positions.

Direction of Specific Measure

As Local Infrastructure

The Group's pachinko halls across Japan play an ongoing role as essential local infrastructure in the development of local communities by providing human and economic assistance and we aim to continue such activities.

Responding to Natural Disasters and Supporting Reconstruction in Affected Areas

With pachinko halls spread across the nation, the Group believes it is important to engage in grassroots activities tied to local communities. In particu- lar, we believe it is essential to assist with the reconstruction of areas affected by natural disasters. Having experienced many natural disasters, including the Hanshin Awaji Great Earthquake, Great East Japan Earthquake, and Kumamoto Earthquake, the Group takes action to rapidly provide assistance soon after a natural disaster strikes, centered on the provision of disaster relief materials, volunteer activities, and monetary donations.

Collaboration with Sakura Line 311, a Specified Non-profit Corporation

The Group cooperates with Sakura Line 311, a specified non-profit corporation.

Sakura Line 311 aims to plant cherry trees in Rikuzentakata City, Iwate Prefecture, with one every 10 meters along the line marking the crest of the tsunami that struck roughly 170 kilometers of coastline after the Great East Japan Earthquake on 11 March 2011. This avenue of trees shows to future generations of people that they should evacuate above the line in the event of another tsunami.

Agreeing with the aims of this activity, the Group volunteers to help with tree-planting events held twice a year in the spring and autumn. As a member of the community, we will watch over these cherry trees so as to not forget the lessons of the Great East Japan Earthquake.

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6 Social Communities

Building Relationships of Trust Through Grassroots Activities

We emphasize collaboration and coordination with local communities through ongoing grassroots activities that help the region, while communicating well with local residents.

Grassroots Initiatives in Each Community

We help coordinate the cleaning of areas around our pachinko halls across the country, volunteer to manage local festivals and fireworks shows, donate gifts to social welfare organizations, and help with blood donation drives by providing space in our parking lots.

Dialogue with Local Residents

We hold events where local residents can talk directly to the managers of our local pachinko halls. We listen to their opinions about our pachinko halls and learn information about the region, which are reflected in the operation of our pachinko halls.

Building Relationships with Landowners

When negotiating agreements on land for opening new halls with land owners, staff from the department for developing new halls patiently explain the rent, duration and other land lease stipulations in details, while providing an overview of the Group's business philosophy and content.

Economic Support Through Gifts and Donations to Communities

The Group provides economic assistance in the form of gifts and donations to local governments and philanthropic organizations in regions where it operates pachinko halls, and Sports Sponsorship.

Support for Sports Activities

The Group supports sports activities as a part of its efforts to contribute to the community.

Co-sponsorship of Squash Events

Through Dynam, we are an official partner of Japan Squash Association, helping spread the enjoyment of squash to as many people as possible as a co-sponsor of events.

Co-sponsorship of Figure Skating Events

Dynam supports the development of figure skating as a sport that brings excitement and inspiration to people by helping athletes achieve their highest levels of artistic performance.

Co-sponsorship of Surfing Events

Yume Corporation is a co-sponsor of major surfing events held by the Japan Pro Surfing Association.

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We aim to create value from the perspective of our customers by improving the value chain through partnerships and fair transactions with our business partners.

The Group procures from external business partners items required to operate pachinko halls, such as game machines, peripheral equipment and general prizes. Going beyond the internal organizations of the Group, the operation of pachinko halls is made possible through a comprehensive effort including external business partners. With the intention of providing everyday entertainment to our customers, the Group aims to create value from the customer's point of view by improving its value chain along with business partners through partnerships and fair transactions that comply with laws and regulations.

Direction of Specific Measure

Practice of Supply Chain Management

The procurement of items, such as game machines and general prizes, are important transactions that directly affect business performance. When assessing the impact of the Group's business activities on the environment and society, we believe it is important to take into account indirect effects, including the activities of our business partners, and make an effort to avoid or minimize unintentional negative outcomes. While following international guidelines as well as domestic laws and regulations concerning human rights, labor and the environment, the Group intends to constantly improve supply chain management by complying strictly with laws and regulations, including with business partners, and following an ethical code of conduct.

Fair Transactions with Business Partners

Major Business Partners of the Group

The Group mainly conducts business transactions with suppliers of the game machines and general prizes used at its pachinko halls. The Group buys game machines from 45 game machine manufacturers, and out of those, transactions with top 5 game machine manufacturers account for 59.9% of the consideration of the total transactions. For general prizes, the Group deals with 34 prize suppliers, and out of those, transactions with top 5 prize suppliers account for 91.3% of the total number of prize makers. Out of the top 5 game machine manufacturers the Group does business with, 2 companies are listed in Japan. All of the above-mentioned business partners are Japanese companies.

Conducting Sound Transactions in Compliance with Laws

Before entering into an agreement with a new business partner, the legal division of the Group (the "Legal Division") conducts a compliance check of the business partner and looks for any problems in its operations and history of business transactions. The legitimacy of the basic agreement with the business partner is checked, and documentation with our corporate code of conduct is given to the business partners after contracts are signed. We also share our corporate philosophy with the new supplier. From an international standpoint, the Group is expected to address social issues including regional environmental pollution and the inhumane treatment of labor, such as coerced and child labor. The Group is fully aware of these international expectations and actions prohibited by law in Japan, and will never engage in a transaction that violates corporate ethics. We have not encountered any violations of the law, including our business partners in Japan. To maintain sound operations, we will continue to manage our supply chain by always engaging in sound transactions in full compliance with laws and regulations.

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Direction of Specific Measure

Creation of Value in Business Partnerships

Concept chart

Trust

Value Chain

Value Creation from the

Perspective of Customers

Joint Development with Business Partners

Joint Development of Game Machines that Satisfy Customer Needs

The Group designs its own private brand game machines based on its business policy of providing everyday entertainment. Our private brand machines offer a simple and easy-to-grasp artistic staging and do not require complicated techniques to play. Based on the massive volume of gameplay data gathered at our pachinko halls, we develop game machines to 100% original specifications with the game machine manufacturers, and roll them out in our halls. So far, we have developed 74 game machines in partnership with game machine manufacturers.

Development and Rolling Out of Private Brand ("PB") Machines

Dynam continues to maintain its long-standing aim of providing pachinko gaming as an everyday entertainment that everyone can enjoy easily. As one method to achieve this, Dynam has been developing game machines in collaboration with the game machine manufacturers, based on the massive volume of gameplay data that we possess. Dynam's PB machines (a type of new game machine) have been designed to enable customers to experience the original pleasure of

pachinko with only small amounts of money, thereby enabling them to enjoy the game for long periods. Looking ahead, we will continue to develop PB machines to enhance the variation in game machines in our halls that can be easily enjoyed with small amounts of money. The new brand that we have started to introduce in the fiscal year ended 31 March 2018 is called Goraku and it incorporates the concept of everyday entertainment.

Joint Development of General Prizes

We strive to have quality general prizes ready as part of our aim to provide everyday entertainment. We endeavor to offer services that bring our customers happiness by including popular products and special prizes for seasonal events. Our prize planning entails taking advantage of the planning capabilities of our suppliers while incorporating information about customer preferences gathered at our pachinko halls. So far, we have developed 16 prizes in partnership with prize suppliers.

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6 Social Employees

We train our Human Resources, an Essential Component of

Sustainable Growth, to Enhance their Skills and Abilities.

The Group has declared Training of Human Resources as one of its management policies. We believe sustainable growth hinges on our efforts to raise the level of our human capital with the aim of creating value focused on people, so we seek to enhance human resources through the development of each and every employee's skills, abilities, motivation, and experience in the organization. Our employees are the wellspring of our competitive advantage. We make every effort to maintain and improve proper working environment in accordance with laws and regulations, so our employees can work in healthy and safe conditions.

Direction of Specific Measure

Fostering a Corporate Culture where Diverse People can Thrive

The Group respects diversity in human resources, and believes the creation of a corporate culture where people with diverse backgrounds can thrive is a driving force behind gains in corporate value.

Equal Employment Opportunities and Fair Compensation

At the Group, we welcome people of diverse backgrounds and respect human rights in our non-discriminatory hiring practices, which are based on our hiring policy and corporate code of conduct. As of 31 March 2020, the Group had a total of 17,533 employees, representing a diverse workforce with regard to nationality, gender, age and disability. Each of our employees set their own objectives, against which they are fairly evaluated for promotions and raises, for an open and fair human resources system.

ESG Report 2020 25

6 Social Employees

Commitment to the Ministry of Health, Labor and Welfare Positive Actions

Dynam and Yume Corporation have committed to four objectives based on the Ministry of Health, Labor and Welfare's positive action plan for advancing women in the workplace. These four objectives are: improve workplace conditions, expand the hiring of women, help women remain employed, and increase women in management positions. We proactively take actions on our own initiative to fix any underlying employment discrepancies between men and women.

Compliance with Laws Regarding Women in the Workplace, Setting Objectives

In 2018, we formulated the action plan below based on the Act of Promotion of Women's Participation and Advancement in the Workplace (the "Women's Participation and Advancement Act").

Action Plan for the Women's Participation and Advancement Act (from 1 March 2016 to 31 March 2018)

Understanding and supporting LGBT

Since 2018, we have been holding study sessions for managers and department managers, centering on our group company Dynam Co., Ltd., as an activity to promote understanding of sexual minorities. After that, we held a study session for personnel and hiring managers and site managers, and started working to improve the environment such as changing rooms and toilet pictograms.

With the introduction of the LGBT same-sex partnership system in August 2020, we will increase the number of LGBT-Ally by revising the regulations and setting up a consultation desk, and also starting employee education. We will foster a corporate culture that accepts diversity.

ESG Report 2020 26

6 Social Employees

Direction of Specific Measure

Enhancing Human Resources' Skills Through Training

The strength of the Group's human resources is a reflection of its ability to train employees. We have built an innovative training system through years of experience, a core competence that cannot be easily duplicated by rivals.

Three Pillars of Human Resources Training

The Group's human resources training system revolved around three major pillars comprising education and training, on-the-job training, and the Jinsei Daigaku (University of Life) program. By strengthening our human resources though human resources training unique to the Group, we aim to create a driving force for value creation and sustainable growth.

Personnel Development Power

Human Resources Development

Strengthening Human Resources with Ongoing Hiring of College Graduates

We have hired a set number of new graduates, mainly college graduates as candidates for senior positions, every year since 1989, when we began to open locations outside the Tokyo metropolitan area. We have been focusing on training these new recruits. Some of the employees that began their career here 20 years ago have ascended the ranks and become senior department heads and managers of business sites. Moreover, 4 employees have become directors of Dynam.

Large-Scale Training Facilities

The Group has two large-scale training facilities in Japan where employees from across the nation can assemble at the same time for training.

ESG Report 2020 27

6 Social Employees

Direction of Specific Measure

Creating a Business Environment that Facilitates Work

We intend to create a work environment where anyone can work without hindrance, believing it necessary to improve employee satisfaction and help them maintain a healthy body and mind to invigorate the corporate organization and fully leverage the abilities of every single employee.

Action Plan for Act on Advancement of Measures to Support Raising Next-Generation Children

Based on the Act on Advancement of Measures to Support Raising Next-Generation Children, which was enacted in 2015, the Group has formulated and implemented the following action plan.

Action Plan for Act on Advancement of Measures to Support Raising Next-Generation Children (1 February 2015-31 March 2018)

Enhancing Balance Support Systems

The Group has put in place work-life balance systems that go beyond the requirements of laws and regulations. We encourage employees to use all of their annual paid vacation through policies allowing six straight days off and memorial breaks. We also let employees work shorter hours so they can take care of toddlers up until they enter elementary school, and offer nursing care leave for parents until their children have finished their final year of elementary school.

Improving Productivity by Managing Work Hours

In addition to these systems, on a companywide scale, we focus on improving the performance of every single employee during their work hours by reassessing how they work. Such work improvements have also led to a reduction in work hours. Improving work procedures within the constraints of an employee's work hours on a companywide scale also has had the added benefit of preventing excessive work, such as discouraging employees from working overtime without compensation and cutting down on overtime work.

Reducing Employee Workload

To reduce the amount of detail work performed manually by employees, such as equipment maintenance, we prioritize use of maintenance-free equipment in our pachinko halls to the extent possible. Reducing the workload of employees allows them to interact more with customers and focus on more productive work.

Certified by the Ministry of Health, Labor and Welfare as a Company that Supports Child Raising

Kurumin Mark Obtained

Dynam has been recognized by the Ministry of Health, Labor and Welfare as a company that proactively supports child raising, based on the Law on Advancement of Measures to Support Raising Next-Generation Children with the receipt of the Kuru- min Mark on 27 October 2017. Dynam was recognized for achieving the objectives it set in action plans based on the Law and for allowing both women and men to take leave for raising their children.

Telework for Employees of the Dynam Headquarters

We are implementing telework as a response to the outbreak of the coronavirus (COVID-19) for employees of the Dynam headquarters. From a variety of work styles, we are considering new work styles that do not limit work locations or hours.

ESG Report 2020 28

6 Social Employees

Promoting Health-Focused Management

DYNAM has a clear vision to transform pachinko into "a daily entertainment that everyone can enjoy with peace of mind," making it an integral part of the community. In order to realize this, we believe that the mental and physical health of each employee is essential, and we have established the "DY- NAM Health Management Declaration", and take measures against obesity rate measures, smoking rate measures and health literacy as three pillars of health we will promote management.

DYNAM's "Health-focused management declaration"

DYNAM promotes work environment and employee health initiatives, enabling employees and their families to have a rewarding life. Supporting em- ployees, who are an importamt asset of the Company, and maintaining health are conditions that are essential to the Company's sustainable growth and development.

"Work-life balance" is important to maintain a healthy and relaxed lifestyle both physically and mentally, in the age of one hundred years of life. At DYNAM, we will promote healthy management, focusing on "health improvement of the body", "health improvement of the mind", and "creation of the work environment", while paying attention to "work-life balance".

Health Management Initiatives for All Employees

All employees are required to have periodic health checkups. In the fiscal year ended 31 March 2020, 92.7% of our employees took health examinations, and we aim for a 100% health checkup ratio. Employees whose test results are less desirable than normal meet with our in-house healthcare professionals for guidance on how to improve their lifestyles. Moreover, we focus on creating an environment that prioritizes health, such as by encouraging employees to quit smoking.

Body and Mind Health Advice Service

With regards to mental health, the DYNAM Group Consultation Office has special nurses on staff to provide health advice while coordinating with external mental health organizations to protect individual privacy. The EAP Consultation Office is also available to employees for mental health care. Our employees undergo periodic stress checks, and can take advantage of systems to help manage their stress.

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6 Social Employees

Labor and Management Work Style Reform Initiatives

Proactive Disclosure of Work Hours to Improve Work Conditions Further with Release of Average Monthly Overtime Hours

Dynam has committed to having management and labor work together on improving work conditions. While preventing excessively long work hours, we are taking steps to properly manage overtime, including the management of working hours down to the minute. Last fiscal year, Dynam began releasing average monthly overtime hours exceeding the requirement to publish employee overtime planned for 2020, thinking that it would create motivation to reduce overtime hours and fix the custom of working long hours across different industries. In the fiscal year ended 31 March 2020, the average monthly overtime was 3.7 hours for all Dynam employees.

Compliance with laws and regulations

We are in compliance with Japanese laws related to labour, including but not limited to compensation and dismissals, recruitment and promotion working hours, rest periods, equal opportunity, diversity, anti-discrimination and other benefits and welfare; safety working environment and protecting employees from occupational hazards.

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By returning value to Shareholders, we strive to meet the expectations of our Shareholders while engaging in faithful and highly transparent communications with our Shareholders and investors.

The Group believes maximizing corporate value will ultimately lead to the satisfaction of Shareholder and investor. To build relationships of trust with our Shareholders and investors, we proactively engage in IR activities in line with management policies and rules for information disclosure as outlined in our Charter of Corporate Behavior. Through these activities, we seek to convey the activities of the entire Group to our Shareholders and investors accurately. We focus on meeting Shareholder expectations by continuing to return value to Shareholders through the reliable payment of dividends as a basic policy.

Direction of Specific Measure

Highly Transparent Communication through Information Disclosure

The Group has been engaged in proactive information disclosure from even before its listing on the Hong Kong Stock Exchange and has continued to build relationships of trust with Shareholders and investors by enhancing the transparency of management.

Proactive IR Activities

The Company holds results briefings twice a year in Hong Kong and Tokyo for financial analysts and institutional investors. We also entertain requests for follow-up interviews and small meetings at any time, while also inviting foreign investors to Japan for explanatory meetings and tours of our facil- ities. Management continues to engage in direct communications with investors by participating in conferences for individual investors that are sponsored by securities firms in Japan.

Key IR Engagements (Fiscal Year Ended 31 March 2020)

Top Management Participation in IR Activities

Opportunities are created for top management to explain the Company's performance and forwardlook- ing strategies directly to institutional investors and financial analysts, when we make announcements for the annual results and interim results twice a year.

In addition, we aim to deepen the public's understanding on the Company through dialogues with financial analysts and the news media in small meetings where top management, Directors in charge of various departments, and executive officers explain our operations.

Communication with Shareholders and Investors

We take special care to promptly and fairly disclose information while proactively disseminating infor- mation. To disseminate IR information from the standpoint of fair disclosure promptly and openly, we have created an IR section on our website to publish earnings results, financial data and other information in English, Japanese and Chinese.

ESG Report 2020 31

Direction of Specific Measure

Meeting Shareholders' Expectations through Returns to Shareholders

Management believes in the importance of returning to Shareholders some of the profits generated through the Group's business activities. By providing a reliable stream of cash returns to Shareholders, we hope to meet their expectations and build relationships of trust.

Consistent Payment of Stable Dividends

The Company focuses on the consistent payment of stable dividends as its basic policy for distributing profits to Shareholders. For the fiscal year ended 31 March 2020, we decided to distribute a year-end dividend of ¥3 per share of the Company (the "Shares") in accordance with our stable dividend poli- cy. Combined with the interim dividend of ¥6 per Share, the total annual dividend is ¥9 per Share for a dividend payout ratio of 54.1%.

Dividend per Share and dividend payout ratio

DIVIDEND POLICY

According to the dividend policy the Company has in place, the Company intends to share its profits with the Shareholders in an aggregate amount per year of no less than 35% of the Company's annual consolidated net income. Declaration and payment of dividends by the Company is subject to compliance with applicable laws and regulations including the Companies Act of Japn and the articles of incorporation of the Company. The dividend policy will continue to be reviewed and updated from time to time by the Board.

Selected for Inclusion in the Hang Seng Foreign Companies Composite Indexes on the Hong Kong Stock Exchange

Since 2013, the Shares have been selected for inclusion in the Hang Seng Foreign Companies Composite Indexes (HSFCCI) on the Hong Kong Stock Exchange.

The HSFCCI consist of stocks with average annual market capitalizations of at least HK$3.0 billion selected from among the foreign securities traded on the Hong Kong Stock Exchange. As of 31 March 2020, 12 foreign stocks, including the Company, have been selected for inclusion in

HSFCCI.

ESG Report 2020 32

G

Governance

1. Overview of Our Corporate Governance
2. Initiatives for Risk Management

37 Initiatives for Compliance

ESG Report 2020 33

The Group Corporate Governance System for Our

Sustainable Development

The Group has built a corporate governance system to appropriately manage decision-making and execution of duties as a corporate enterprise. We believe that meeting the expectations of various trusted associates (stakeholders), such as local communities, business partners, employees, Shareholders, and investors, through appropriate decision-making and execution of duties will raise the Company's value for each of these people, which will drive comprehensive enhancement of our corporate value.

Principal 5 Committees

Group Assets Management and

Valuation Committee

Group Internal Control Committee

Group Personnel Committee

Group Financial Statement

Committee

Group Legal Committee

Institutional Design

As an institutional design, the Group has chosen to become a company with a nomination committee, etc., and has established three committees: the Nomination Committee, the Remuneration Committee, and the Audit Committee. The Group has also adopted an executive officer system to clarify management decision-making and supervisory functions, and execution of duty functions. Decision-making and supervisory functions are conducted by the Board and the individual directors who comprise the Board, while the execution of duties is conducted by executive officers. Execution of duties at Group companies and items for discussion are reported on and discussed at business report meetings. A system is in place whereby progress on duties and matters to be addressed for each specific function are reported and discussed at the management strategy meeting and its five main subcommit- tees. For details of the Group's corporate governance, please refer to the Corporate Governance Report section in the Annual Report.

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Total Risk Management Structure

Each company of the Group independently manages the risk of its operational execution. Meanwhile, the Group has established the Group Risk Management Committee. This Committee takes initiatives from a Group-wide perspective to resolve issues related to risks of the overall Group.

Total Risk Management (Concept Chart)

The GroupInternalControl Committee

ReportingMonitoring

The Group Risk Management Committee

Analyze and evaluate compliance, information security, major natural disasters and other critical risks from a Group-wide perspective

Optimize and reinforce the Group's risk mitigation policy

Implement measures within the

Propose and reportGroup, such as risk prevention advice, training, monitoring

Group companies

Risk management optimized to business of each company

Initiatives Taken by the Group Risk Management Committee

The Group has established a Group Risk Management Committee, a committee set up under the Group Internal Control Committee, to strengthen the risk management of the overall Group. The Group Risk Management Committee analyzes and evaluates compliance, information security, large-scale di- sasters, and other important risks from the vantage point of risks against the overall Group. It also strives to strengthen measures against risks from the perspective of the optimization of the Group.

Crisis Management

In addition to the initiatives that are designed to prevent the occurrence of risks, it is also important for a company to develop crisis management to deal with a crisis, should it take place. The Group has established a structure in which the Group Risk Management Committee can promptly make deci- sions, provide information and take specific steps even at a time when a crisis takes place. The basic policy of crisis management is to place the priority on the safety and confidence of customers and other partners in trust, take steps to prevent the reoccurrence of risks, and maintain relevant records.

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Prepare and practise BCP to enable response during emergencies

Over the past few years, Japan has experienced natural disasters with greater frequency, including a massive earthquake. In the event of a crisis situation, establishing a framework to practice our BCP (business continuity plan) is an issue designed to minimize damage to our business assets and enable continuation of core operations or restoration of them as quickly as possible. Ensuring a BCP can be implemented in an emergency is an urgent issue. The Group Risk Management Committee takes the lead in keeping manuals up to date and periodically conducting training to keep the entire Group in a state of readiness.

Set up an emergency response center, quickly gather information and respond appropriately to the situation

In the fiscal year ended 31 March 2020, a heavy rain hit West Japan in July 2018, and two of our halls were also affected. Based on the heavy rainfall forecast, we set up an emergency response center and worked to understand the instruction to the falls concerned and the damage situation of the affected halls. In addition to the immediate resumption of operations of the two affected halls, we also engaged in regional restoration support activities.

Backup plan for our data centers

The Group has its own data centers that house servers, networking equipment and other IT equipment. By having data centers with identical functions in two locations in Japan, we are able to maintain a network that is constantly backed up in case of an emergency.

Alternative facility for headquarters functions

The Group keeps up-to-date disaster manuals and conducts emergency response center training so that in the event of headquarters functions being im- paired, our offices in other region can take over as an alternative headquarters and function as an emergency response center.

Emergency communications network for all employees

In the event of a major earthquake, we have put in place an automated safety confirmation system as a part of our Disaster Communications System for employees working in regions susceptible to an earthquake with an intensity of lower 6 on the Japanese scale of 7. Four times a year, we conduct training on the safety confirmation system based on various emergency scenarios through the Disaster Communications System.

Strengthening risk financing

The Group is aware of the importance of risk financing as a capital reserve in the event of losses stemming from the materialization of risks in an emergency situation.

Commitment line of ¥15,000 million for earthquake response

Dynam has a commitment line agreement with a syndicate of banks for use in the event of an earth- quake. Under a traditional commitment line, there were some lingering concerns about being able to secure funds, because financial institutions could invoke an exception clause for major natural disas- ters. By obtaining a commitment line specifically for use after an earthquake, we have a method for rapidly raising funds within the framework of the agreement in the event of an earthquake or other natural disaster.

This commitment line is a revolving credit facility with an upper limit of ¥15,000 million.

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Initiatives for Compliance

We take steps to develop organization and a corporate culture that prioritize compliance, to ensure that it meets the expectations of customers and society and fulfills its corporate social responsibilities.

The Group Charter of Corporate Behavior represents the corporate behavior and commitment that are shared by all employees.

The reason for existence of a company is to achieve sustainable growth in line with the expectations of stakeholders, including shareholders, managers, employees, partners, financial institutions and customers, and to achieve a scale and a level of reliability that enable it to contribute to society. All employees of the Group share this principle. To ensure that it can continue to conduct its business without compromising that trust, the Group has adopted new internal control systems to improve its operations. These systems also continually clarify and eliminate factors that have the potential to lead to misconduct or violations of laws and regulations.

Compliance Promotion Structure Rooted in Actual Operation

A Group Internal Control Committee has been established to develop and manage a structure that promotes compliance from an inter-Group perspective. The Group Internal Control Committee examines policies related to the Group's compliance management and execution plans of internal control, and monitors progress in the development of compliance and internal control structures.

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Establishing a hotline to identify promptly and solve issues

In principle, employees of the Group are to report and consult with their managers when they become aware of activities that violate the Group Charter of Corporate Behavior. However, to promptly identify and solve such issues that are difficult to report or consult internally, a DYJH Group Hotline (a whistleblowing system) has been established using an external law firm and is available to all Group companies.

Not only the Group's employees, but also other workers, such as dispatched workers and contractors, as well as all family members of the employees, including those of dispatched workers, are encouraged to use the hotline to report activities that violate the Group Charter of Corporate Behavior or that may potentially create problems in the future.

Each issue that is presented through the hotline is examined by attorneys and the departments of the Group companies in charge, while carefully protecting the privacy of all related parties. If any particular problems are found, those in charge will take actions such as issuing improvement orders, and confirm later that the problems have been resolved and that full measures to prevent any recurrence have been carried out. They also report the matter to the Audit Committee.

Protection of Whistleblowers

As the Group established a hotline, under its internal rules, it prohibits whistleblowers from being treated unfairly. It has also established Whistleblowing Rules that state such obligations as following up on whistleblowers after the incidents to thoroughly enforce the rules for protecting whistleblowers.

Flow of Handling of the DYJH Group Hotline

Thorough Implementation of Fair Business Activities

The basic premise of the operations of the Group is to comply with laws and regulations, including the Law on Control and Improvement of Amusement Business (the Amusement Business Law), and to carry out fair business activities. Accordingly, the Group has developed operating manuals for its operation sites, and revises and manages these manuals to respond to revisions in laws and changes in the business environment.

The Group also strives to ensure that all halls nationwide comply with the related laws and regulations by establishing information sites related to regulations concerning sales methods and advertising restrictions, and publishing guidelines.

Moreover, the Group makes its best efforts to raise awareness and knowledge about compliance by publishing Rules on Compliance with the Anti-Monopoly Act, Rules on the Prevention of Unfair Competition Concerning Trade Secrets, Rules on the Prevention of Insider Trading, and other rules on the internal intranet site.

The Group has developed operational guidelines on anti-money laundering measures and evaluated the measures for effectiveness on a regular basis.

Prohibition of Bribery and Other Activities to Ensure the Transparency of Business Activities

The Group confirms in the Group Charter of Corporate Behavior that the Group will develop legally, socially, and ethically sound, reasonable, and equal relationships with business partners to ensure that it can economically grow together with its business partners and in compliance with laws and regulations on prevention of bribery, extortion, fraud and money laundering. Furthermore, the Group prohibits its employees from receiving or offering entertainment or gifts from or to organizations, companies, individuals, or any other parties, and ensures that they maintain a sound and transparent relationship with such parties in compliance with laws and regulations.

ESG Report 2020 38