Human Capital Strategy (Reinforcing Talent and Fostering a Culture)

LY Corporation Group (the "Group") has established the mission of "Create an amazing life platform that brings WOW! to our users." To this end, the Group will challenge the creation of new value that bring surprise and inspiration to our users aiming to achieve unparalleled product-driven excellence.

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: “reinforcing human capital” and “fostering a unique culture.” The first pillar in particular is also positioned as a material issue. It aims to strengthen its talent by supporting employee growth and improving the working environment, while also fostering a unique 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 monitoring of the Group’s initiative is being advanced.

These policies and initiatives are monitored by the Sustainability Committee, chaired by the President and CEO, and comprised of members including the CFO and an independent outside director, 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 Strategy Overview From top to bottom, 1. Mission: Create an amazing life platform that brings WOW! to our users. Aiming to achieve: Unparalleled product-driven excellence 2. Human Capital Strategy: Connecting people with business to maximize the performance of human capital and organizations. The human capital strategy is mainly divided into two areas: "Human capital reinforcement" and "Fostering a unique culture," along with monitoring. Under "human capital reinforcement," there are two components: "Facilitating growth" and "Creating environments." Under "Facilitating growth," there are three components: "Human capital development," "Evaluation/Promotion & salary review," and "Strengthening human capital portfolio." - Under "Creating environments," there are three components: "Diversity," "Workstyle," and "Well-being." Under "Fostering a unique culture," there is "Fostering a unique culture through values," which further branches into three components: "Creating opportunities to Blend cultures," "Sharing and educating employees," and "Dialogue between management and employees." Under "Monitoring," there are two components: "Engagement" and "Awareness towards DE&I."

Reinforcing Human Capital
(1) The Group's strength lies in diverse portfolio of talented employees who possess exceptional skills and experience in DX, 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
Facilitating & fueling 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. In addition, the Group provides opportunities for employees to learn together while gaining broader perspectives and viewpoints by offering various training sessions including women’s leadership classes. The Company regularly provides a learning system that employees study according to their work needs and schedules, as well as training and e-learning programs for all employees and engineers.
Recruiting and supporting exceptional talent Our 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. 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 idea event for students), and regular communications such as Tech Blog.

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Fueling growth to maximize performance

(2) Establishing the Environment and Systems
Enhancing 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 an environment in which all employees can perform to their fullest regardless of their attributes and life stages.

Priority Areas Examples of Key Initiatives
Understanding & respecting for diversity The Group implements various initiatives, including support measures for balancing work with childcare, nursing care, and medical treatment. The Company promotes various initiatives to understand and respect diversity, including conducting DE&I training for executives, regularly implementing 'Company-wide DE&I awareness surveys' for all employees, hosting a company-wide awareness event called 'DE&I Week 2025', 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 females in managerial positions, which is set as an evaluation indicator for the diversity. Furthermore, as specific measures to improve the ratio of females in managerial positions, we are promoting initiatives such as the development of a "mentorship program" and a "coaching program" targeted at female managers. The Company is aware of the fact that there is a pay gap between male and female employees. Based on this recognition, the Company is currently working to identify the main factors contributing to wage disparities by conducting analyses from various perspectives such as age, years of service, job type, position, and grade, for further considerations.
Promoting autonomous working style The Group is working on creating an environment that includes 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. The Company ensures an environment where both people and organizations can maximize their performance by establishing systems and mechanisms for flexible working styles. Our 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. For remote work, employees can work in locations other than the office, including the use of satellite offices. Regarding working hours, the Company have adopted a flextime system without core hours, allowing employees to flexibly arrange their work hours to suit their lifestyles.
Enhancement of working 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 an Environment for Maximizing Performance

Fostering a Unique Culture
The Company aims to foster a sense of unity and cultivate a unique culture through its values, a workstyle defined to realize the Group's mission, thereby creating an environment where employees can maximize their performance.

Priority Areas Examples of Key Initiatives
Promoting communication between management and employees The Company regularly holds the company-wide LY Corporation All-Hands Meeting, providing a place for the CEO and management to explain policies, initiatives, and the surrounding context and reasoning in an open and straightforward way. Additionally, opportunities for communication between management and employees are established as needed on topics such as work styles, personnel evaluation systems, and data governance.
Enhancement of employee engagement The Group regularly conducts engagement surveys and employee satisfaction surveys to assess employee conditions across its companies. The Company regularly tracks organizational conditions through a monthly 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.

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Creating an Environment for Maximizing Performance,
Creating a Unique Culture Through Values

Monitoring
To measure the degree of performance, evaluation indicators and targets are set, and monitoring is conducted. The evaluation indicators and targets for diversity and human resources strategy are on a stand-alone basis. From fiscal year 2025 onwards, the Group plan to expand the scope to our entire group and disclose the group-wide performance.

 ・Ratio of Females in Managerial Positions

Evaluation Indicators Targets Results for FY2023 Results for FY2024
Ratio of Females in Managerial Positions Aim to achieve the same level as the gender composition of entire employees by 2030 18.5% 19.0%

 ・Human Capital Strategy

Target Areas Evaluation Indicators Results for FY2023 Results for FY2024
Reinforcing human capital: Facilitating growth Changes in aggregate values of items related to "growth support" in the engagement survey Aim to maintain or improve from the previous fiscal year Maintained
Reinforcing human capital: Creating environment Changes in aggregate values of items related to "environment" in the engagement survey Aim to maintain or improve from the previous fiscal year No maintenance or improvement observed
Fostering a unique culture Changes in aggregate values of items related to "philosophy strategy” in the engagement survey Aim to maintain or improve from the previous fiscal year No maintenance or improvement observed
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