CAPCOM CO.,LTD.

Based on the facts stated in this report, the Group’s operations are centered on the digital content business, amusement facilities business, amusement equipment business, and other businesses, including the character business. Its principal group companies comprise multiple domestic and overseas subsidiaries and affiliates engaged in development, sales, and operations, and the business segments correspond to the same classifications shown in the business system diagram. The digital content business develops and sells home video games and mobile content; the amusement facilities business operates stores equipped with arcade machines, retail stores, and other facilities; the amusement equipment business develops, manufactures, and sells gaming machines and other equipment to arcade operators and other customers; and the other businesses include the character business and related activities. As part of its strategic policy, the Company has set a medium-term management target of "10% growth in operating profit every fiscal year" and seeks to pursue cash flow-focused management, with an emphasis on cash movements, while improving capital efficiency. Its basic policy is to maintain a consolidated dividend payout ratio of 30% and continue stable dividend payments. Against the backdrop of expanding global markets, the Company is working to expand the global sales network for its digital content business to more than 240 countries and regions, raise awareness of its IP, develop licensed products, video content, and esports, acquire new users through broader IP penetration, and maximize revenue opportunities. As investments in human capital, it is increasing its development workforce, raising average base annual salaries, operating an equity compensation program, and increasing starting salaries for new graduates. It is also continuing to invest in research and development of cutting-edge technologies, including its proprietary development engine, as a driving force for sustainable growth.