*Media reports indicate that the JFTC intends to issue another recommendation against KADOKAWA, this time for alleged violations of Japan’s Freelance Protection Act, after the Company reportedly failed to clearly state payment terms and delayed payments to more than 100 freelancers

*This follows the JFTC’s November 2024 recommendation against KADOKAWA and its subsidiary for Subcontract Act violations, raising further concerns about the effectiveness of the Company’s oversight and remedial measures

*Oasis has repeatedly warned of governance and accountability weaknesses under CEO Takeshi Natsuno and believes this latest development further underscores the need for management change at KADOKAWA

*Oasis urges shareholders to vote AGAINST CEO Natsuno’s reappointment and FOR Oasis’s proposal to dismiss CEO Natsuno as a director at the 2026 AGM

More information is available at www.abetterkadokawa.com

Oasis Management Company Ltd. (“Oasis”), the investment manager to private funds that own shares in KADOKAWA CORPORATION (“KADOKAWA” or the “Company”), today issued the following statement in response to media reports that the Japan Fair Trade Commission (“JFTC”) intends to issue another recommendation against KADOKAWA for violations of the Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators, widely known as the Freelance Protection Act.

According to media reports, the JFTC is expected to find that KADOKAWA failed to clearly state transaction terms, including payment deadlines, when outsourcing magazine production related work to freelance writers, stylists, illustrators and others, and that the Company may also be found to have delayed payments. Reports indicate that more than 100 freelancers may have been affected. The reported conduct is said to have occurred from the winter of 2024 onward. KADOKAWA has acknowledged that it is under investigation by the JFTC.

This reported development is deeply concerning. KADOKAWA’s creative businesses depend on the trust and cooperation of writers, illustrators, creators and other external partners. A failure to comply with basic legal obligations toward these stakeholders would reflect serious weaknesses in compliance, internal controls and management oversight.

This is not an isolated issue. In November 2024, the JFTC issued a recommendation against KADOKAWA and its subsidiary for violating the Subcontracting Act in relation to fees paid to writers, photographers and other business partners. Following that recommendation, management stated that it had taken steps to strengthen compliance and prevent recurrence. However, the fact that KADOKAWA is now reportedly facing another JFTC recommendation in a related area, involving conduct said to have occurred after 2024, raises serious questions about the effectiveness of those measures and suggests that the current management team has failed to adequately address the underlying issues.

Oasis has consistently raised concerns regarding KADOKAWA’s governance, internal controls, stakeholder management and lack of accountability under CEO Natsuno. In campaign materials released on May 21, 2026, Oasis highlighted the inadequacy of current management’s response to these issues on pages 110–112, which are available at www.abetterkadokawa.com. These reports further reinforce Oasis’s view that meaningful management change is necessary.

Oasis believes that the persistence of these issues, the apparent failure to implement effective remedial measures following the 2024 JFTC recommendation, and the continuation of weak governance and compliance systems require clear accountability from KADOKAWA’s Board and management. In light of the deterioration in performance and poor management oversight under CEO Natsuno throughout his tenure, the time has come for a management refresh.

Oasis reiterates its call for KADOKAWA shareholders to vote at the Company’s AGM scheduled for June 24, 2026 as follows:

• Vote AGAINST the Company’s proposal to reappoint CEO Natsuno as a director; and
• Vote FOR Oasis’s shareholder proposal to dismiss CEO Takeshi Natsuno as a director.

KADOKAWA needs real accountability, stronger governance and leadership capable of rebuilding trust with shareholders, creators, employees and all stakeholders.

For Oasis’s full campaign presentation, “A Better KADOKAWA”, and additional information regarding the June 2026 AGM, please visit www.abetterkadokawa.com. Oasis welcomes input from all stakeholders at info@abetterkadokawa.com.

Oasis is not in any way soliciting or requesting shareholders to jointly exercise their voting rights together with Oasis. Shareholders that have an agreement to jointly exercise their voting rights are regarded as “Joint Holders” under the Japanese large shareholding disclosure rules, and they must file a notification of their aggregate share ownership with the relevant Japanese authority for public disclosure. Oasis disclaims any intention to be treated as a Joint Holder and/or a Specially Related Person with any other shareholder under the Japanese Financial Instruments and Exchange Act (“FIEA”) by virtue of the expression of views and opinions and/or any engagement with shareholders and other third parties in or through this document, any public statements or any other information or materials created and/or published by Oasis (whether written or oral, and regardless of medium). Oasis has no intention to receive any power to represent other shareholders in relation to the exercise of their voting rights. This document exclusively represents the opinions, interpretations, and estimates of Oasis. Oasis is expressing such opinions solely in its capacity as an investment advisor to the Oasis funds. Oasis and/or the investment funds it advises hold, and may in the future hold, investments in the company referenced in this document. Accordingly, the views and opinions expressed in this document should not be regarded as impartial. Nothing in this document should be taken as any indication of Oasis’s current or future trading, voting or other intentions which may change at any time. Nothing stated herein is intended to be or should be construed as a proposal for the purposes of paragraph 1 of Article 14-8-2 of the Order for Enforcement of the FIEA (Cabinet Order No 321 of 1965), as amended by Cabinet Order No 247 of 4 July 2025 or otherwise, unless otherwise expressly indicated. The Document exclusively represents the opinions, interpretations, and estimates of Oasis.

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