Management Strategy

The Capcom Group positions initiatives regarding human capital, which is the source of corporate value creation, as a priority issue.

In order to enhance its development system—the source of its core competitiveness—and achieve its medium-term management goals, the Group recognizes the importance of bolstering its development workforce and enhancing productivity as it pertains to the investment and effective use of human capital in the areas of research and development and contents production.

As such, the Group has recruited more than 100 developers every year. At the end of the fiscal year ended March 2023, the Group has secured approximately 2,460 developers in its workforce.
In addition, to respond to changes in the business environment, the Group is investing in securing and developing diverse human resources through recruitment and evaluation, regardless of their gender, nationality, age, and so on.

The Group currently has 29 female managers (11.6% of all managers), 3 managers of foreign nationality (1.2% of all managers), and 140 managers who are midcareer hires (56.0% of all managers). Note that from the fiscal year under review, the Group changed the way it aggregates these figures in accordance with related laws and regulations.

In order to further promote its personnel investment strategy, the Group will enhance its corporate value in tandem with improving employee engagement by implementing the following measures:

Based on the strategy laid out in 3 above, the Company will focus on the following areas in the next fiscal year:

In conjunction with its corporate philosophy listed above in 1, the Capcom Group is undertaking a variety of activities.

During the fiscal year ended March 31, 2023, the Group continued its donations to three organizations that work for the healthy development of children and young adults, including the Fund to Support Children’s Future. Further, the Group also continued to commit money in aid to the United Nations High Commissioner for Refugees to support Ukrainian refugees, and newly donated money in aid to victims of the Türkiye-Syria earthquake.

Recognizing the importance of diversity of the Board of Directors for sustainable growth, the Company strives to ensure that the Board of Directors consists of members with diverse perspectives, abundant experience, and advanced skills that are both diverse and specialized by selecting candidates based on their personal characteristics and insight regardless of their gender, nationality, age, and so on.

Furthermore, the Capcom Group’s strengths include its strong business foundation as well as its unique development system and business model established under the leadership of company representatives. The Company also strives to improve corporate governance by strengthening the supervisory function of the Board of Directors, such as in striving to increase opportunities for active participation of external directors, including participation in committees established on a voluntary basis.

In addition, based on an evaluation of the effectiveness of the Board of Directors and in order to further strengthen the Board of Directors’ function, in the year ended March 31, 2023, the Company made efforts to enhance its support system with a dedicated Board Operations team, while also providing expanded opportunities for information sharing with external directors by conducting site visits as well as meetings to exchange views with corporate officers.

In order to further enhance the effectiveness of the management supervisory function, the Company will work on the following issues during the fiscal year ending March 2024.

[Main issues]

• Further enhancing information sharing with external directors, such as by holding meetings to exchange opinions
• Carrying out discussion on the nomination and compensation of directors and other senior management members to build a management structure for next generation
• Discussing medium- to long-term corporate value enhancement
  Going forward, the Company will strive to share and promote understanding of issues facing the Board of Directors and further enhance its functions.

The Capcom Group has been engaged in the enhancement of its information security systems, with the understanding that in addition to addressing information protection laws that deal with personal information, as well as legislation protecting minors, the establishment of which is being advanced in various countries, taking measures against diverse cyber risks from both Japan and overseas is indispensable in consideration of the significance of the impact that information has on company activities.

Going forward, the Company will continue to work to operate and monitor its systems and maintain and strengthen its structure for emergency responses on an ongoing basis based on, among others, the advice of the Security Oversight Committee, an external advisory organization.

Regarding strategic holdings of publicly listed shares, the Company eliminates habitual cross-holding, personal favoritisms, etc. By comprehensively taking into consideration the relevant advantages and disadvantages from medium- to long-term perspectives, including whether the shareholdings contribute to future business relationships and sustainable enhancement of corporate value, the Company keeps its strategic holdings to a minimum and currently holds only three securities. As of the end of the fiscal year under review, the amount of its strategic holdings of such publicly listed shares accounted for less than 0.5% of its net assets.

As the Board of Directors has decided to sell all such shares, and this being agreed upon with all such companies, the Company will implement the sale as appropriate going forward.

• [Governance] Information on Shareholdings