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Management Strategy

(as of June 19, 2026)

Here you can find an itemized listing of our directors’ fundamental management policies, which include our basic corporate philosophy, management performance metrics, dividend policy, mid- to long-term strategies and challenges faced by management.

Forward-looking statements in the text below are based on the judgment of the Capcom Group as of the end of the previous consolidated fiscal year.

1. Fundamental Management Policy

Based on our "Management Philosophy" and with the aim of realizing the vision of what the Capcom Group (hereinafter referred to as the "Company," including its subsidiaries and affiliates) aspires to be, the Company strives to achieve stable medium- to long-term growth and enhance corporate value through its business activities.

To this end, the Company endeavors to ensure transparency, fairness, and promptness in management, while building relationships of trust with shareholders, customers, business partners, employees, regional communities, and other stakeholders, and striving for mutual prosperity with them.

[Corporate Philosophy]

To create an entertainment culture and be a creator that moves and excites people through the medium of games.

[Vision]

To be a company that captivates people around the world with our best-in-class immersive content.

2. Key Performance Indicators

At the Capcom Group, management’s objective is to increase corporate value through the sustainable growth of its businesses.

In addition to measuring performance with a medium-term management goal of 10% increased operating profit per fiscal year, the Company strives to enhance corporate value from a capital efficiency perspective by improving return on equity (ROE), while at the same time focusing on cash flow management. Further, the Company is working to maintain a consolidated dividend payout ratio of 30% as its basic policy while continuing to make stable dividend payouts, after giving due consideration to matters such as future expansion and changes in the business environment.

[Management Policy and Strategy] Mid-Term Plan

3. The Business Environment and Medium- to Long-Term Management Strategy

While the market for the Company’s core Digital Contents business is expected to grow steadily, driven by an increase in game content and the expansion of the global gaming user base, the business environment surrounding the Company is undergoing significant changes: the increasing number of distribution channels for content, diversification of devices, and the progress of technological innovation, including the widespread adoption of generative AI.

In such an environment, the Company will continue to strive to reach its medium-term management goal and realize its vision. It will seek to further expand the global reach of its content by enhancing its brand and attracting new users.

In order to achieve the long-term milestone of 100 million units in annual sales in its core Digital Contents business, the Company will work to strengthen global sales by enhancing its sales network that extends into over 240 countries and regions, improving localized marketing and its understanding of user needs, in addition to implementing long-term pricing measures.

Moreover, the Company will strive to develop the Arcade Operations and Amusement Equipments businesses by using popular IPs and major content, as well as generate new users and maximize profit-earning opportunities by raising awareness of IPs through investment in and leveraging of film and television productions, licensed merchandise, and esports.

In addition to the above strategies, the Company will continue its efforts to achieve its management goals by promoting its human resources investment strategy, which will be the driving force for the Company’s sustainable growth. It will strengthen investments in the research and development of cutting-edge technologies, such as its proprietary development engine, and the enhancement of its development environment, with the aim of adapting to new technologies and growing its product pipeline through the creation of new IPs and utilization of major existing IPs.

Through various activities, the Company will continue to work toward realizing its management philosophy of being a creator of entertainment culture that stimulates the senses and excites people through game entertainment.

4. Priority Business and Finance Issues

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

(1) Strategies by operating segment for the fiscal year ending March 2027

For the next fiscal year, the Company will focus on the following points based on the strategy laid out in 3 above.

A. Digital Contents business

In the Digital Contents business, the Company released a new science-fiction action-adventure game PRAGMATA (for PlayStation 5, Xbox Series X|S, PC and Nintendo Switch 2) as an all-new IP this April, and will also launch Onimusha: Way of the Sword (for PlayStation 5, Xbox Series X|S and PC), the latest installment in the Onimusha series. Additionally, the Company will strive to maximize profits and continuously increase its total unit sales volume by strengthening digital sales and promoting sales measures for catalog titles such as Resident Evil Requiem, which was released in the fiscal year under review, and Monster Hunter Wilds, which was released in the fiscal year prior to that. Furthermore, regarding Street Fighter 6, the Company will continue to pursue brand enhancement and user growth, including with a Hollywood movie adaptation of Street Fighter, and ongoing efforts in esports.

B. Arcade Operations business

In the Arcade Operations business, the Company will continue to expand into new store formats while pursuing steady openings and operation of stores both in Japan and overseas. Moreover, the Company will work to maximize the appeal of its stores and create synergies with other businesses by holding live events and other activities.

The Company plans to open 9 new stores in the fiscal year ending March 31, 2027.

C. Amusement Equipments business

In the Amusement Equipments business, the Company will steadily release new smart pachislo models, which are expected to continue driving the pachislo market, leveraging its popular IPs.

In the fiscal year ending March 31, 2027, the Company plans to sell 53 thousand units with the launch of 4 new models, including Biohazard RE:3 in May 2026.

D. Other Businesses

Regarding Other Businesses, in its eSports business, which leverages Street Fighter 6, the Company has announced it will hold the finals for the major tournaments Capcom Cup 13 and Street Fighter League: World Championship 2026 once again at the Ryogoku Kokugikan Arena in the 2026 season. Furthermore, to foster the next generation of players and further promote the competitive scene, the Company will continue to diversify its player base and drive wider awareness of Street Fighter 6, while redoubling its commitment to industry development and growth of the global market.

In addition, the Company will pursue strategies that maximize its Single Content Multiple Usage strategy on a global scale in order to expand penetration of the Company’s IPs worldwide via activities such as promoting movie and television adaptations of its content and cross-industry collaborations. As part of this approach, in the Media business, the Company plans to release a live-action Street Fighter movie in October 2026.

Through the above, the Company will continue its efforts to maximize corporate brand value while expanding the branding of its content.

(2) Sustainability initiatives

Based on its management philosophy, the Company is working to achieve stable growth and enhance corporate value over the medium to long term through its business activities, while also proactively addressing common environmental and social issues in order to create a world in which everyone can enjoy games with peace of mind.

Through these initiatives, the Company aims to create a better future by building trust with all stakeholders, including customers, business partners, and employees, among others.

A. Human resources investment strategy

The Company has positioned initiatives regarding human capital, which is the source of corporate value creation, as one of its priority issues and has therefore established a Chief Human Resources Officer (CHO) to promote its human resources investment strategy.

The Company will continue to enhance its corporate value by implementing the following initiatives:

a. Securing and developing human resources to support the future

In order to enhance its development system—the source of its core competitiveness—and achieve sustainable growth toward its management goals, the Company recognizes the importance of bolstering its development workforce and enhancing productivity through investment in human capital.

As such, in addition to continuing efforts to increase its workforce by more than 100 developers every fiscal year, the Company implemented various measures to enhance its ability to recruit top talent and retain employees, such as continuously increasing the average annual base salary of full-time employees (up 38.2% compared to the fiscal year ended March 2022), operating a more performance-linked bonus system and stock-based compensation system for employees, and raising the starting monthly salary for new graduates.

In addition, the Company held the Capcom Games Competition, a game development competition for students utilizing its proprietary RE ENGINE as part of its industrial-academic collaboration efforts, thereby creating opportunities to attract top talent by discovering and nurturing the next generation of game developers.

Furthermore, the Company has established the development personnel policy, CAPCOM-SHIP, to further instill the values and standards it strives for in its development. This policy is being leveraged in personnel development, organizational management, and team building.

As a result, the Company has secured 3,976 consolidated employees, of whom 3,011 were in development, as of March 31, 2026. Going forward, the Company will strive to secure and develop the human resources that will underpin its future.

b. Organizing and improving the working environment

In order to expand its development environment and facilities to accommodate the increasing scale of development and sophistication of technology, the Company is expanding its workforce and making growth investments, such as acquiring real estate as business assets. In addition, it is focusing on cultivating a corporate culture of respect for human rights and creating a comfortable working environment while raising the awareness of executives and employees through training and continuously leveraging opportunities for direct dialogue between management and employees. The Company will continue to focus on creating a better working environment to prevent employee turnover and increase engagement. Furthermore, the Company is promoting measures to maintain the well-being of employees, such as introducing multilingual counseling services and formulating guidelines to respond to abusive behavior from customers.

c. Ensuring human resource diversity

In order for the Company to further expand its development organization in the future, it is necessary to create an environment in which human resources with diverse backgrounds can maximize their abilities. The Company, therefore, is making efforts to secure and develop diverse human resources through recruitment and evaluation, regardless of gender, nationality, age, and other attributes.

The Company aims to achieve the percentage of male employees taking childcare leave to at least 85%, as well as raising the gender wage gap to at least 88% by the end of March 2029, in addition to introducing a partnership system with more inclusive definitions of spouses and conducting nursing care seminars.

As of March 31, 2026, the Company employs foreign nationals hailing from a total of 37 different countries and regions. It has therefore strived to enhance its support measures for foreign national employees, such as Japanese language learning and a special leave system for them to visit their home countries. The Company will continue to promote various initiatives and establish programs to create an environment where employees from various backgrounds can flourish.

(Reference)

	March 31, 2022	March 31, 2023	March 31, 2024	March 31, 2025	March31, 2026
No. of employees (consolidated)	3,206	3,332	3,531	3,766	3,976
Of which, development personnel	2,369	2,460	2,675	2,846	3,011
Average annual salary (non-consolidated) (thousand yen)	7,127	7,660	8,328	9,185	9,852
Operating profit per employee (consolidated) (thousand yen)	13,384	15,249	16,165	17,466	18,937
Turnover rate (non-consolidated) (%)	5.4	3.5	2.9	2.8	2.6
Paternity leave utilization rate (non-consolidated) (%)	34.5	45.5	66.7	79.7	79.7
Gender wage gap (non-consolidated) (%)	82.9	85.4	83.8	82.8	81.3

(Note) All of the above figures are based on full-time employees only. The paternity leave utilization rate is calculated for all employees, including temporary employees.

B. Intellectual property

The Company believes that it is essential to invest in the continuous creation of intellectual property, and to expand and deepen its global brand recognition to develop its business and achieve sustainable growth. Therefore, as it is crucial to maintain and improve its core strengths, consisting of its proprietary advanced technologies and development capabilities, the Company continues to aggressively pursue growth investments aimed at building its development environment. This includes research and development into cutting-edge technologies such as its proprietary game engine, other development investments, and the use of generative AI to enhance the efficiency and productivity of the game development processes. Through these efforts, the company is working to further expand and deepen the penetration of its content and corporate brand worldwide by consistently releasing content to the market and increasing catalog sales, thereby enhancing its brand value.

Furthermore, the Company is working to enhance its corporate value by promoting continuous utilization, proper management and protection of its wealth of intellectual property.

C. Initiatives for reinforcement of information security

The Company sells its content in more than 240 countries and regions globally and recognizes that information has a significant impact on its corporate activities. To further accelerate the global sales expansion and the digital shift of the businesses, it is essential to ensuring information security, including the appropriate management of personal information and measures such as information management and cybersecurity countermeasures.

As such, the Company aggregates information security-related risk data and discusses response policies and other matters. In addition, the Security Oversight Committee, an external advisory body, has been meeting regularly, and based on the oversight and advice from experts, the company is continuously working to strengthen information security.

In addition to building capabilities for early response and recovery in the case of emergencies, such as when unexpected security risks materialize, the Company has been working to raise awareness on information security by providing education and training provided to its officers and employees as well as other measures.

Through these initiatives, the Company continues to maintain and strengthen its information security management structure based on the PDCA cycle.

D. Environmental initiatives

The Company’s Digital Contents business accounts for approximately 70% of its total revenue and primarily entails the development and sale of software. This means that the Company’s environmental impact and climate-related risks are lower than the general manufacturing industry. Therefore, the Company believes that the impact of climate change risks and profit opportunities on its business activities and operating results will be minimal.

However, recognizing that addressing climate change is a challenge that requires the cooperation of everyone living on this planet, the Company is promoting environmental initiatives tailored to the specific characteristics of each business. Based on this view, the Company leads the promotion of digital sales of its content, which is part of its efforts to conserve resources and curb CO₂ emissions in manufacturing and transporting disks. The Company is also working to reduce environmental burdens, by implementing power-saving measures and recycling certain parts in the manufacturing and sale of pachislo machines.

Furthermore, as part of the Company’s environmental initiatives, it is promoting the introduction of CO₂-free electricity sourced from renewable energy at its major sites. As a result, approximately 30% of the power consumed by the Company in Japan is now provided by renewable energy. In addition, the Company is working to further reduce the environmental impact of its business activities by expanding the use of this type of electricity at each of its business locations and introducing green electricity at select locations, as well as by using its own data centers equipped with power-saving measures, and making use of major cloud and data center service providers that promote the use of renewable energy.

(3) Initiatives on corporate governance

The Company is continuously working to enhance its corporate governance to enhance the transparency and soundness of management, build a system that can respond to changes in the business environment, and raise its medium- to long-term corporate value.

A. Strengthening corporate governance

The Company is working to strengthen the performance of the Board of Directors by ensuring the diversity of the Board and the active participation of external directors to achieve sustainable growth and raise corporate value over the medium to long term, while taking into account the perspective of our stakeholders.

In addition, the Company strives to strengthen the oversight functions of management through information sharing and mutual understanding by ways of the Nomination and Remuneration Committee, which is chaired by an external director (and comprised of a majority of external directors), and meetings to exchange opinions between internal directors and external directors.

The Company has promoted diversity on the Board of Directors by appointing one new female external director in 2025, bringing the number of female directors to three. In addition, with respect to the remuneration system for directors, with a view to enhancing corporate value over the medium to long term, the Company is working to further align value creation with shareholders by incorporating a higher degree of performance-based remuneration and stock remuneration into the remuneration structure for executive directors, as well as other measures.

B. Strengthening the risk management system

The Company believes that it is important to develop and operate a system that can appropriately assess and manage the risks arising from its business activities in order to achieve sustainable growth. To this end, the Company has established the Risk and Compliance Committee, chaired by an external director, to act as an advisory body to the Board of Directors, and has also instituted a Risk and Compliance Council chaired by the representative director. These measures are intended to clarify the risk management system, and to centralize and enhance risk management across the Company.

In addition, the Risk and Compliance Council strives to ensure that corporate governance functions effectively by enhancing the effectiveness of risk management, including by regularly reporting on its activities to the Risk and Compliance Committee.