Materiality | DeNA Co., Ltd.

Identification of Materiality

DeNA has identified our material issues for the first time. In April 2021, we formulated a new Mission, Vision, and Values (MVV), and the identification of our materiality in July 2024 is an initiative that is an extension of this MVV.
“We delight people beyond their wildest dreams” is our mission, the highest level concept in our MVV. We used that as a launching point to form our materiality and growth strategy (mid term plan), and we will endeavor to execute our plans from a mid to long term perspective.

Process of Identifying Materiality

We employed the following process to identify our material issues. We plan to re-evaluate and update our material issues as needed in line with our mid term growth strategy cycle (rough estimate of three years).

Identified Materiality

DeNA’s business environment is changing rapidly, and we face accelerating evolution in digital technology and social issues that are coming to the fore. Given these factors, we broke down the key business issues that DeNA is pursuing to achieve the MVV into three categories: business activities, corporate capital, and corporate infrastructure; and we allocated our nine material issues into those categories. We aim to contribute to creating new Delight and achieving sustained growth by enhancing our materiality.

Materiality Details & Initiatives

Materiality in Business Activities		Related Initiatives
Continued Initiatives to Create New Businesses	As an eternal venture, DeNA has always taken on challenges and changed shape as we provided Delight. We will continue to take on the challenge of creating new businesses to maintain our competitiveness amidst ever fiercer external environmental changes, and we aim to achieve even further growth and greater corporate value.	〇New Business Challenges
Operating Sound Services & Communities	We want our users to feel secure and to enjoy using our services. To this end, we are leveraging our core competencies built up through our history of operating community services. We pay close attention to customer feedback, improve our services and formulate rules, and we are also active in industry associations.	〇Customers
Creating & Catalyzing Regional Activity	DeNA aims to work together with stakeholders including the people in the areas of our operations and local municipalities, establish sound relationships, and collaboratively add value for the community. We leverage our core competencies in the services we provide to our regions, including our online services and sports, and we will continue to create and catalyze regional activity.	〇Community 〇Social Contribution Through Sports
Our Contribution Leveraging Technology for a Healthy Future	We contribute to the health of all people by leveraging our user experience design and technological capabilities gained through our community operations. In the healthcare and medical sphere we are working to extend healthy lifespans and make equitable health and welfare a reality, and for our employees we are working to provide health & productivity management.	〇Social Contribution Through Services

Materiality in Corporate Capital		Related Initiatives
[Human Capital] Providing Opportunities and Challenges to Leverage Diversity	In order to provide Delight to the world and sustainably grow our corporate value, we must provide an environment where our diverse personnel can focus on giving their all to taking on challenges that help to move the world another step forward. We commit to providing opportunities for our enterprising personnel to work in a unique environment filled with diverse businesses and people, giving them high goals to strive for, and enabling them to grow.	〇Employees 〇Respect for Human Rights
[Intellectual Capital] Strengthening Technology and Adapting to & Driving New Technology	Our highly specialist engineers use their technical expertise and creativity to make businesses a reality and ensure stable, high quality operations. All our employees proactively leverage new technologies, including AI technology, in our businesses, and create new value. We share the technical insights we gain as a front runner both internally and externally to drive technological development.	〇Technology & Monozukuri 〇AI Policy 〇Next Generation IT Training Support
[Social Capital] Maximizing Partnership Synergies	Collaboration with our partners is essential for us to create even further Delight. We combine each of our unique strengths to create ever greater value, while at the same time we follow sound business practices and aim to establish & maintain relationships with fairness, integrity, and on the principles of co-existence and co-prosperity.	〇Partners 〇Community

Materiality in Corporate Infrastructure			Related Initiatives
Strengthening Corporate Governance and Compliance	We strengthen our corporate governance to ensure management transparency and fairness as befits a public company, and to pursue sustained corporate value growth. We are deeply aware of our social responsibilities as a company, and we work to strengthen our compliance to ensure even higher levels of corporate ethics.		〇Corporate Governance 〇Compliance
Appropriate Protection of Information and Security Enhancement	We endeavor to appropriately protect the information entrusted to us by our customers and build a secure environment. We leverage our organization, personnel, and technology to handle any cyber threats, privacy infringement, or other issues through a holistic approach.		〇Information Security

Initiatives and KPIs for Materiality

DeNA has set initiatives and KPIs for each materiality.

Materiality in Business Activities

Continued Initiatives to Create New Businesses

Risks	- Decline in competitiveness due to slow response to market changes - Deterioration of profitability due to dependence on existing businesses
Oppertunities	- Expansion of business scale and diversification of revenue sources - Strengthening of customer base by developing new customer segments
Main Initiatives	- Creation of new businesses by employees - Contribution to the revitalization of the startup ecosystem and business growth
KPIs	(1) New AI products: Number of planned and released products (2) Startup fund: Number of investments and proposals
Target for FY2026	(1) - (2) -	FY2024 Results	(1) - (2) -

Operating Sound Services & Communities

Risks	- Loss of customers and decrease in revenue due to inappropriate content and issues - Restrictions or service suspension from platform providers
Oppertunities	- Promotion of continued use by gaining user trust - Strengthening market competitiveness by improving brand image
Main Initiatives	■Games - Formulation and implementation of internal development rules in compliance with laws and guidelines - Implementing countermeasures against cheating, patrolling, and establishing/enforcing criteria for warnings and deletions ■Live Streaming Services - Maintaining service integrity, including the protection of minors - Minimizing various incidents, including system failures - Improving user satisfaction with inquiry support ■Mobage Platform - Maintaining service integrity, including the protection of minors - Ensuring soundness through 24/7 monitoring - Responding to users who violate rules and inappropriate posts
KPIs	■Games (1) Compliance rate with development rules (2) Compliance rate with internal operational guidelines ■Live Streaming Services (1) User satisfaction with support ■Mobage Platform (1) 24/7 monitoring system operational rate (2) Report response rate
Target for FY2026	■Games (1) 100% (2) 100% ■Live Streaming Services (1) - ■Mobage Platform (1) 100% (2) 100%	FY2024 Results	■Games (1) 100% (2) 100% ■Live Streaming Services (1) 58% ■Mobage Platform (1) 100% (2) 100%

Creating & Catalyzing Regional Activity

Risks	- Shrinking customer base due to a decrease in touchpoints - Loss of business opportunities due to a decline in trust from regional stakeholders
Oppertunities	- Enhancing brand value and developing new customer segments - Creating business opportunities by strengthening collaboration with regional communities
Main Initiatives	■Yokohama - Attracting visitors to the Kannai area through events, etc. - Contributing to the community through baseball promotion activities ■Kawasaki - Holding SDGs events ■Sagamihara - Promoting the JIMOTOAI Project to solve social issues
KPIs	■Yokohama (1) Number of spectators (2) Number of visitors to events hosted in the surrounding area (3) Number of kindergarten, preschool, and elementary school visits and number of participants ■Kawasaki (1) Number of SDGs projects implemented ■Sagamihara (1) Number of community activities implemented (2) Number of people reached through community activities
Target for FY2026	■Yokohama (1) - (2) - (3) - ■Kawasaki (1) - ■Sagamihara (1) - (2) -	FY2024 Results	■Yokohama (1) 2,334,177 people *1 (2) 500,000 people (3) 120 kindergartens/preschools and 88 schools, for a total of approximately 18,000 participants ■Kawasaki (1) Cumulative total of 80 projects ■Sagamihara (1) 165 times (2) 92,044 people

*1: Attendance at official Yokohama DeNA BayStars games held at Yokohama Stadium

Our Contribution Leveraging Technology for a Healthy Future

Risks	- Loss of competitiveness due to being slow to respond to changes in the technological landscape and market environment - Shrinking labor market due to an increase in diseases and widening health disparities
Oppertunities	- Expanding revenue through preventative medicine and health management services - Contributing to the extension of healthy life expectancy and a reduction in medical costs - Addressing healthcare disparities and mismatches
Main Initiatives	■Healthcare - Supporting health promotion through the introduction and popularization of health-enhancing services, including PHR*2 - Contributing to the health promotion and prevention of severe illness for insured individuals and local residents through health insurers - Contributing to the optimization of medical expenses and more through the public use of accumulated data ■Medical - Supporting telemedicine and in-hospital networks using Join - Supporting medical care in underserved areas and disaster relief using Join Mobile Clinic ■Health and Productivity Management - Conducting seminars and events to improve literacy and encourage behavioral change, and disseminating information - Providing medical support for symptoms that hinder productivity
KPIs	■Healthcare (1) Number of eligible users of the kencom service (2) Number of municipalities and health insurers with which we have transactions (3) Number of papers and other publications ■Medical (1) Number of facilities that have adopted Join ■Health and Productivity Management (1) Self-rated health status (2) Performance productivity ratio
Target for FY2026	■Healthcare (1) - (2) - (3) - ■Medical (1) - ■Health and Productivity Management (1) 75% (2) 80%	FY2024 Results	■Healthcare (1) 6.37 million people (2) 526 health insurers (3) Over 30 publications ■Medical (1) 597 facilities ■Health and Productivity Management (1) 82% (2) 72%

*2: Personal Health Record

Materiality in Corporate Capital

[Human Capital] Providing Opportunities and Challenges to Leverage Diversity

Risks	- Stagnation of innovation caused by a lack of diversity in human resources - Talent outflow and recruitment difficulties due to the loss of organizational appeal - Deterioration of productivity due to a decline in employee engagement
Oppertunities	- Promotion of innovation and new business development by diverse human resources - Strengthening of recruitment capabilities through improved corporate reputation among job seekers - Strengthening of market competitiveness through improved brand value
Main Initiatives	- Hiring talent who can drive change expanding DeNA's potential - Incubating talent through setting stretch goals with a 50-50 chance of success and bold delegation of authority - Rewarding outstanding talent with compensation and further opportunities
KPIs	(1) Quality of recruitment 3 (2) Overall stretch score 4 (3) Evaluation impact factor *5
Target for FY2026	(1) 100% (2) 95% (3) 80%	FY2024 Results	(1) New graduates: 98% Mid-career hires: 96% (2) 68% (3) 69%

*3 Percentage of employees whose performance met or exceeded expectations in their one-year post-hire evaluation
*4 Percentage of employees who responded to the bi-annual organizational survey that they were taking on challenging, stretch goals
*5 Percentage of employees who feel they receive bold treatment (compensation, promotion/opportunity for initiative) for high performance/results

[Intellectual Capital] Strengthening Technology and Adapting to & Driving New Technology

Risks	- Loss of service credibility and competitiveness - Inadequate response to ethical issues and privacy violations - Increased and inefficient business operating costs - Management risks from regulatory changes and intellectual property disputes - Risk of human resource rigidity - Risk of development structure obsolescence
Oppertunities	- Advancement of services and improvement of market competitiveness - Creation of new businesses and expansion of revenue sources - Improvement of customer satisfaction and strengthening of brand value
Main Initiatives	- Construction of a unique framework to evaluate the AI skills of all employees (DARS: DeNA AI Readiness Score) - Company-wide implementation of an AI agent platform (Gemini Advanced) that each employee can use according to their work content - Presence of AI expert talent and an organizational strategy that spans departments - Disseminating technical capabilities/business applications by holding DeNA AI Day
KPIs	(1) AI Agent platform usage rate (2) AI skill evaluation for all employees and organizations
Target for FY2026	(1) - (2) -	FY2024 Results	(1) Gemini Advanced MAU*6 1,000 (2) -

*6 MAU: Monthly Active Users

[Social Capital] Maximizing Partnership Synergies

Risks	- Stagnation and suspension of main content provision due to the worsening of partnership relations - Decline in credibility from stakeholders
Oppertunities	- Stable operation and expansion of existing services - Promotion of innovation through synergies with partners
Main Initiatives	- Partnerships with external partners - Building relationships and exchanging information with each company involved in the business
KPIs	(1) Number of new AI-related business partners
Target for FY2026	(1) -	FY2024 Results	(1) -

Materiality in Corporate Infrastructure

Strengthening corporate governance and compliance

Risks	■Corporate Governance & Compliance - Loss of social credibility and impairment of corporate value - Risk of business interruption and administrative penalties due to legal violations - Disruption of business operations and loss of credibility due to deficiencies in the internal control system - Occurrence of troubles and damage to brand image due to inappropriate transactions or actions ■Climate Change - Increased carbon taxes and regulatory costs due to a delayed response to climate change - Decline in brand image due to a lack of climate change measures
Oppertunities	■Corporate Governance & Compliance - Gaining social credibility and improving corporate value - Stable business operations and improved reliability through legal compliance - Improved operational efficiency and risk avoidance through strengthening internal control systems - Gaining stakeholder support through transparent operations ■Climate Change - Developing new businesses, etc., that respond to changes in behavior and values - Improving corporate brand image and reputation
Main Initiatives	■Corporate Governance & Compliance - Strengthening Board of Directors’ functions - Ensuring transparency in the supervision and compensation systems for management ■Compliance - Providing compliance training - Implementing group-wide risk management ■Climate Change - Reducing greenhouse gas emissions - Acquiring SBT *7 certification for reduction targets
KPIs	■Corporate Governance & Compliance (1) Independent Outside Director Ratio (2) Diversity Ratio of Board of Directors Members ■Compliance (1) Number of Compliance Trainings Conducted (2) Risk Management Implementation Rate at the Company Level *8 ■Climate Change (1) (2) Greenhouse Gas Emissions
Target for FY2026	■Corporate Governance & Compliance (1) - (2) - ■Compliance (1) 12 times/year (2) 100% ■Climate Change By the end of FY2033 (1) Scope 1 + 2: 2,115 tCO2 (58.8% reduction from FY2023) (2) Scope 3: 67,282 tCO2 (35.0% reduction from FY2023)	FY2024 Results	■Corporate Governance & Compliance (1) 42.9% (3 out of 7) (2) 27.3% (3 out of 11 are female) ■Compliance (1) 12 times/year (2) 100% ■Climate Change (1) Scope 1 + 2: 4,043 tCO2 (2) Scope 3: 112,630 tCO2

*7 SBT (Science Based Targets) are greenhouse gas emission reduction targets based on scientific evidence
*8 The scope of the targets includes major domestic subsidiaries

Appropriate protection of information and security enhancement

Risks	- Service interruption, suspension, and occurrence of financial loss - User churn and litigation risk due to personal information leaks and privacy issues - Loss of trust from stakeholders such as partners and collaborators
Oppertunities	- Improving customer satisfaction through the stable provision of services - Strengthening competitiveness through improved reliability - Reducing operational costs through improved safety
Main Initiatives	- Providing security and privacy training - Conducting vulnerability diagnostics for services we provide (application and network diagnostics)
KPIs	(1) Number of Trainings Conducted for All Employees (2) Number of Vulnerability Assessments Conducted
Target for FY2026	(1) 4 times/year (2) Application Assessment: 150 cases/year NW Assessment: 4000 IP/year	FY2024 Results	(1) 4 times/year (2) Application Assessment: 171 cases/year NW Assessment: 4264 IP/year