KADOKAWA Corporation (hereinafter "KADOKAWA") will collaborate appropriately with a range of stakeholders, including shareholders, employees, business partners, customers, creditors, and communities under its management philosophy, Continuity and Change, in consideration of the increasing importance of value co-creation with the stakeholders in corporate management. KADOKAWA believes that the proper distribution of the earnings and results generated from value co-creation and productivity improvement to multiple stakeholders will result in maintaining momentum towards pay increases and the sustainable development of the economy, and thus returns to employees and consideration of business partners are important. Based on this, KADOKAWA will take the following initiatives.

---

Details

1.    Returns to employees

To achieve a Global Media Mix with Technology, KADOKAWA will drive innovation in line with three keywords and strive to maximize added value. The three keywords are "creativity" for building an environment to increase the independence of individuals and make possible creative decision making, "motivation," which implies that KADOKAWA will raise employees' motivation by building a compensation system in which compensation is paid according to performance, and "technology," which implies that KADOKAWA will actively introduce technologies to increase operational efficiency and drive business transformation.
While striving to maximize added value, KADOKAWA aims to achieve the sustainable return of the value to employees by raising wages based on generated earnings and results in appropriate timing and ways in consideration of social conditions and the situation of the Company and by actively making investments, primarily in human resources leading to sustainable growth and further productivity improvement.
Specifically, KADOKAWA will strive to increase employee engagement by changing the compensation structure to pay compensation according to each employee's performance, by developing an environment for work-at-home, and by introducing allowances to deepen employees' interest and understanding of content. As for investment in human resources, KADOKAWA will take steps to create an environment conducive to the active participation of diverse human resources by establishing a system where incentives will be provided to employees who have achieved certain qualifications to support proactive learning and where a second job will be approved to facilitate autonomous career development.

---

2.    Consideration of business partners

KADOKAWA will continue to comply with the Declaration of Partnership Building.

• Date of registration of the Declaration of Partnership Building
  January 31th, 2024
• URL of the Declaration of Partnership Building
  https://www.biz-partnership.jp/declaration/49651-07-00-tokyo.pdf

KADOKAWA will monitor the implementation of these initiatives and take steps steadily.

END
February 13th, 2024

---

---