Human Capital Strategy
- Human Capital Reinforcement and Fostering Corporate Culture

LY Corporation Group (the "Group") has established "WOW Our Users!" as its mission. The Group is committed to acting with integrity to deliver experiences that surpass user expectations, while upholding stakeholder trust and meeting their expectations.

The competitive advantage of the Group's businesses essentially derives from its ability to create innovative services and products, which is underpinned by its employees. The strength of the LY Corporation ("the Company") and the Group companies lies in the presence of numerous employees who have built and driven the diverse range of services that are being offered. Therefore, establishing a cycle in which employees can work more energetically and create outstanding products and services is one of the Group's top priorities.

Believing that maximizing the growth and performance of people and organizations enhances the Group's human capital value, the Group works on two main pillars: “human capital reinforcement” and “fostering corporate culture.” The first pillar in particular is also positioned as one of its material sustainability-related risks and opportunities. It aims to strengthen its talent by supporting employee growth and improving the working environment, while also fostering corporate culture by enhancing communication between management and employees, leading to increased employee engagement. The Company is committed to promoting diversity as it recognizes that having a diverse workforce is essential to the creation of innovative ideas and strategies.

In the area of human capital, the Group monitors its initiatives with the aim of enhancing its human capital value by fostering the growth of its people and organizations and maximizing their performance, thereby driving sustainable growth in corporate value. To achieve this goal, it continuously measures and analyzes engagement as a key indicator and uses the findings to improve the effectiveness of its initiatives. The Group also conducts annual surveys of subsidiaries on labor management practices and human capital, regularly convenes HR leaders from major Group companies, and holds conferences for Group company employees responsible for human capital initiatives. Through these activities, Group companies share their progress and challenges, confirm the Group’s overall direction, and drive continuous improvements in human capital initiatives.
These policies and initiatives are monitored by the Sustainability Committee, chaired by the President and CEO, to ensure that the human capital strategy will lead to the realization of the Group's mission. The results of each evaluation indicator and target are reported on this page.

Furthermore, regarding the supervisory structure, the Board of Directors receives proposals and reports on important matters from the Sustainability Committee as needed, and also receives reports on company-wide risks, including sustainability-related risks, from the Risk Management Committee once every six months in principle. The Board of Directors oversees sustainability-related risks and their management through deliberation and resolution of the important matters brought up for discussion.

Human Capital Strategy Overview

Human Capital Reinforcement
(1) Initiatives to Promote Growth
The Company focuses on developing all employees into AI-proficient talent, equipping them with the capabilities needed to transform operations and services with generative AI at their core. These efforts are part of the human capital strategy to advance the Company's management priorities of “transforming all services into AI agents” and “strengthening LINE Official Account and LINE MINI App.”

The Company seeks to enhance its earnings capabilities by creating an environment where employees can focus on more creative challenges and rapidly develop new products and services. It is also establishing a framework to quickly identify and reallocate the talent and capabilities needed to execute its business strategy, even amid unforeseen external changes such as rapid technological innovation or structural shifts in the labor market. The Group's strength lies in its diverse portfolio of talented employees who possess exceptional skills and experience in digital transformation, AI, and data utilization, have created numerous services, and drive various businesses. The Group aims for the sustainable growth of both employees and products/businesses by creating diverse opportunities that contribute to the growth of employees. To this end, the Group is committed to building opportunities and environments that facilitate this growth.

Priority Areas	Examples of Key Initiatives
Supporting & promoting employee growth	The Group holds a contest-style event called “INTERSECTION” to share outstanding knowledge generated within the Group companies. The Group provides growth opportunities for employees by soliciting entries from employees themselves in the Technology, Service, and Corporate divisions, conducting a selection process, and holding presentations and awards ceremonies. It also offers voluntary programs such as leadership classes for women, providing opportunities for employees to learn together and broaden their perspectives and insights from one another. In July 2025, the Company introduced a company-wide rule requiring the use of generative AI, aiming for 100% adoption among all employees. To equip employees with the foundational skills needed to use generative AI safely and effectively, it provides structured training including basic literacy, internal rules, and practical workplace applications, enabling them to integrate generative AI into their daily work. By using generative AI to streamline existing operations and redirect time and resources to higher-value work and new challenges, the Company is creating an environment that fosters creativity and new challenges, aiming to continuously generate innovation. To further accelerate practical adoption, it also provides opportunities for employees to develop their own AI agent prototypes. It encourages broad participation through internal recruitment, and recognizes projects with outstanding ideas and results, thereby supporting employee-led challenges and continuous innovation. In other areas, the Company has also established a learning platform that enables employees to learn based on their work needs and career aspirations, while continuously providing company-wide and specialized training.
Recruiting & empowering exceptional talent	The Group implements a year-round internal and inter-group open recruitment secondment system that allows employees to self-nominate for positions available across Group companies, supporting the active participation of talented individuals. It also uses internal recruitment postings and other initiatives to optimally allocate talent to priority areas and align its talent portfolio with its business strategy. The Company strives to acquire a diverse range of talented individuals through initiatives such as year-round recruitment, internship programs, hosting “'Hack U” (a development event for students), and regular dissemination of technical information.
Revamping performance evaluation and remuneration systems	To maximize individual employee performance and invigorate the organization as a whole, the Company is revamping its performance evaluation and remuneration systems to better differentiate performance based on factors such as contributions to products and Company-wide results, as well as cost and productivity. In addition, the Company has introduced stock-based remuneration for officers and employees who are involved in management over the medium to long term, enabling them to share in the value created and pursue further value creation in alignment with investors.

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Fueling Growth to Maximize Performance

(2) Establishing Environments and Systems
Enhancing the Group's work environment and systems is essential in ensuring that employees feel a sense of fulfillment in their work and experience growth together with the Group. The Group respects human rights and is committed to creating supportive environments in which all employees can perform to their fullest regardless of their attributes and life stages.

Priority Areas	Examples of Key Initiatives
Understanding & respecting diversity	The Group implements various initiatives, including support measures for balancing work with childcare, nursing care, and medical treatment. To promote understanding and respect for diversity, the Company promotes measures such as conducting DE&I training for executives, regularly implementing company-wide DE&I awareness surveys for all employees, hosting “DE&I Week 2025” (a company-wide awareness event), and developing a “Personnel Composition Report” system that allows monthly monitoring of employee attribute ratios. In addition, the Company has established a system that allows for monthly monitoring of the ratio of women in managerial positions, which is set as an evaluation indicator for diversity. Furthermore, as specific measures to improve the ratio of women in managerial positions, the Company promotes initiatives such as the development of a "mentorship program" and a "coaching program" targeted at female managers. The Company has also updated its General Employer Action Plan, setting a target to achieve the same gender ratio of employees who are at the entry point to senior leadership (level 4) as the overall workforce by FY2030. Through this initiative, the Company is working to build a pipeline for leadership roles. In addition, beginning this consolidated fiscal year, the Company is analyzing the factors behind its gender pay gap. The analysis indicates that the gap may be affected by the low proportion of women in management and senior grades (level 4 and above), as well as differences between men and women in their distribution across senior grades. Going forward, the Company will continue its analysis using indicators such as the management ratio and grade distribution, while enhancing the quality of its analysis through new indicators and ongoing monitoring.
Promoting autonomous workstyles	The Group is working on creating supportive environments that include the introduction of flexible work hours and remote work options. The Company ensures an environment where both people and organizations can maximize their performance by establishing systems and mechanisms for flexible working styles. Under the “LY Corporation Working Style,” the Company adopts a hybrid model combining office and remote work, creating an environment that provides opportunities for in-person collaboration while leveraging the benefits of remote work. Employees may also work remotely outside the office, provided the work environment meets Company requirements. The Company has a flextime system with no core hours, allowing employees to adjust their working hours to suit their lifestyles. Its offices feature standard desks as well as diverse workspaces such as team communication areas, standing desks, and quiet booths. In addition, lunch and drinks are offered at affordable prices, supporting employees to work in a comfortable environment.
Enhancing employee well-being	The Group undertakes specific measures to combat lifestyle diseases and overwork, protect mental health, and support women's health. The Company aims to improve the well-being of employees by enhancing health management and life support measures, focusing on the physical and mental health of each and every employee. This includes conducting medical interviews for employees with excessively long working hours, implementing stress checks, and providing health examinations at the time of hiring and on a regular basis.

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Creating Supportive Environments for Maximizing Performance

Fostering Corporate Culture
To realize its mission, the Group has defined and shared its values as a common set of values and behavioral guidelines that align people from diverse backgrounds toward a common direction. By fostering a sense of unity and cultivating a distinctive corporate culture, the Company is creating supportive environments where employees can perform to their full potential.

Priority Areas	Examples of Key Initiatives
Facilitating communication between management and employees	The Group undertakes initiatives including all-hands meetings, messages from management to employees, and employee recognition programs. The Company regularly holds the LY Corporation All-Hands Meeting, providing a place for the President and management to explain policies and initiatives, as well as their background and rationale, in an open and straightforward way. It also provides opportunities for management to respond to feedback and questions from employees, promoting two-way communication. Additionally, opportunities for communication between management and employees are established as needed on topics such as work styles, employee evaluation systems, and data governance.
Improving employee engagement	The Group regularly conducts engagement surveys and employee satisfaction surveys to assess employee conditions across its companies. Every month, the Company regularly tracks organizational conditions through a survey that quantifies employee engagement. This produces a score that represents how motivated someone is in contributing to their organization/job and taking steps to act on it. Survey results not only help employees to stay self-aware but also aids managers in better understanding if individuals and organizations are sufficiently engaged for performing at their best or what factors may be holding them back. Engagement is continuously measured and analyzed as a key indicator and the findings are used to improve and enhance the effectiveness of initiatives.

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Creating Supportive Environments for Maximizing Performance
Fostering Corporate Culture Through Values

Monitoring
To measure the degree of performance, the Company has established indicators and targets and monitors progress against them. The evaluation indicators and targets for diversity apply to the Company on a standalone basis. Those for the human capital strategy also applied to the Company on a standalone basis in FY2024 but have been expanded to cover the Group from FY2025, with Group-wide results now disclosed.

・Ratio of Women in Managerial Positions

*1 The evaluation indicators and targets related to diversity apply to the Company on a standalone basis.
*2 Managers refer to Division Leads, Unit Leads, SBU/CBU Leads, and Domain Leads.
*3 As certain calculation definitions were revised beginning in FY2025, the FY2025 results are not directly comparable with the FY2024 results.
*4 The target timeline has been corrected from "2030" to "FY2030" due to an error in the original wording. (September 2026)

・Human Capital Strategy

*As the scope was expanded from the Company on a standalone basis to the Group from FY2025, the FY2025 results cannot be directly compared with the FY2024 results.