Creating Inspirational ValueReport
CMC Group Sustainability Report, March 2024
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CMC GROUP | Creating Inspirational Value Report

INTRODUCTIONMESSAGE FROM OUR CEO
CONTENTSIn October 2023, we established the CMC Group’s approach tosustainability, which aims “to achieve sustainability of
information value.”

02 CMC GROUP SUSTAINABILITY

For us, sustainability means working alongside our clients todeliver “inspirational value” to all stakeholders.
To achieve this, it is essential that we understand the true natureof the challenges faced both by our clients and by society as awhole, and constantly strive to find solutions to these issues.
We are pleased to share our vision and progress on creating
inspirational value with you here in the “Creating Inspirational
Value Report”.

03 BUSINESS MODEL STRATEGY
04 HOW WE CREATE INSPIRATIONAL VALUE
05 MATERIAL ISSUES
06 THE SOURCES OF VALUE CREATION
08 OUR HISTORY OF VALUE CREATION

Editorial Policy

Yukiyasu Sasa
President and CEO
CMC CorporationMarch 2024

This report has been published as a tool to facilitate
dialogue with our stakeholders. Here, we introduce ourstrategic story and how we are working to realize the CMC
Group's vision. We will continue working to improve thecontent of the report.
Information Disclosure
Information on our sustainability policies and initiatives canbe found on the following pages.

Sustainability

https://www.cmc.co.jp/english/sustainability/IR News | Investor Relations*

https://www.cmc.co.jp/ir/* Information currently available in Japanese only.

01

CMC GROUP | Creating Inspirational Value Report

CMC GROUP SUSTAINABILITYP U R POS E

To achieve sustainability of information value
Continuing to provide “inspirational value” to all of our stakeholders by ensuring “the right people have the right information,at the right time, in the right way” – this is the CMC Group’s enduring purpose.

The CMC Group values system expresses
the way in which each and every one of ouremployees can help realize our vision. TheOur Fundamental
Approach to Sustainability

scenes in the background of our vision area depiction of the future ways of life wewant to make a reality. We will continue toVISION

Since our earliest days, we’ve moved withthe times, and our products and services

challenge ourselves to realize our visionand keep delivering inspirational value.

The potential of people
meets the power of data –better lives through better
information

have evolved to keep pace. What hasn’tchanged, however, is our commitment toworking alongside our clients to deliver“inspirational value” to all stakeholders.
When people’s innate potential and skills

CMC Group Way
https://cmc.jp/english/about/vision/

The CMC Group Way defines the actions andbehaviors expected of all Group employees. We
aim to prove ourselves worthy of the trust that ourclients and other stakeholders place in us.

are combined with the power of data, wecan change the way we live and work forthe better. We will continue to open up

Take OwnershipRespond Enthusiasticallynew possibilities and help to make life
more enjoyable.

Express Gratitude

BeInspiringKeep Building

Business Plans
M i d - R a n g e P l a ns
C o m p a n y G o a l s / Di v i s i onal Targets

VALUESC MC Gr o u p Wa yAlways Do Your Best

Never Give Up02

CMC GROUP | Creating Inspirational Value Report

BUSINESS MODEL STRATEGY | Infinity Loop

How We “Achieve Sustainability of Information Value”
Our business model strategy – the “Infinity Loop” – encapsulates our purpose ofcontinuing to deliver the right information to the right people at the right time.
From highly confidential blueprints and unwritten “tribal knowledge”, to corporate
value systems and marketing strategies, we are entrusted with the full spectrumof our clients’ information.
Our job is to make sense of this vast quantity of information and carefully

1

3

Organize and record clients’ information

Understand how information is used

The first step is the groundwork. To ensure information
can be conveyed in an easy-to-understand manner, wetake clients’ technical data, product information, and“tribal knowledge” and organize it into a coherent
system, then enter it into a digital platform.

The third step is listening to the “voice of thecustomer” to confirm that the optimal
information is reaching the right people.

consider what, when, and how it should be communicated to the various users
who need it. The CMC Group’s point of difference lies in our ability to organizeand streamline the flow of our clients’ information with dedicated digital
1platforms and feedback mechanisms that unlock the power of data3

to identify what users really want.

244
Accumulate and update data
After analyzing how information is used,
we refine data records and provide
feedback to our clients to further improvethe information being provided.

2Develop , operate , and maintain platforms

Deliver information

At the heart of all of our business model are customized,
centrally managed platforms and systems that wecreate from the ground up.

Tailored information is delivered tovarious users depending on theirneeds.

03CMC GROUP | Creating Inspirational Value Report

HOW WE CREATE INSPIRATIONAL VALUEINPUTThe Sources of Value Creation

Human Capital

Realizing our Vision

OUTCOME
Clients

P06

People who can design and bring to life businesses
that achieve “sustainability of information value”

UsersEmployees
925 (consolidated), 436 (non-consolidated)
Note: As of September 30, 2023

Intellectual Capital

P07

Shareholders
andinvestors

The technology to connect the right people withthe right data so that information is conveyed inan easy-to-understand mannerSocial & Relationship Capital P07
Finding solutions to social challenges through cocreation with our clients, and collaboration withindustry, governments, and academia

Manufactured Capital

P07

Locations established in markets in which ourclients’ businesses are growing

Number of CMC Group locations
Japan: 16 locations
Global: 11 locations in 8 countries

Financial Capital Financial HighlightsLocal

The potential of people communities
meets the power of data –better lives through better
information

Employees
and theirfamilies

Growth Strategy

OUTPUT

Material Issues

P05

Manuals & Knowledge Business■ Manuals Business – Content development

Mid-Range Business Plan (FY22 – FY24)

Unleashing the potential of people. Harnessing the power of data.
Ready for what comes next.

We understand clients’ technical and productinformation, and transform it into easy-tounderstand content■ Knowledge Business – Strategic support

Business Model

P03

Working alongside our clients gives us a deep understanding of their products and theindustries in which they operate. Our business model, shown below, aims to create a cyclethat enhances the value of information for society as a whole.

We create content and support clients’ businessstrategy (personnel development, process improvement,marketing strategy)

Key Markets(Industries our clients operate in)■ Logistics■ Mobility■ Manufacturing ■ Local Government■ Medical/Pharmaceutical■ Robotics/Software Robotics

A robust financial foundation from which to growour business and increase profitability
Equity ratio
76.5 %ROE
9.7 %Operating Income 2.62 billion yen (consolidated)

1.52 billion yen (non-consolidated)

Note: Financial results for the fiscal year ended September 30, 2023

Business Activities

CMCGROUP
WayValues

CMC Group Way “Be inspiring”

04CMC GROUP | Creating Inspirational Value Report

MATERIAL ISSUES
Working alongside our clients to solve material issues is how we contribute to the creation of a sustainable society.
We strive to deliver inspirational value to our clients and all other stakeholders by finding solutions to challenges that society faces.

■ Material Issues and Examples of InitiativesTarget SDGs

Major
opportunities
and risksMaterial
issues

Initiatives- Evolving digital technology- Aging of experienced workers and needto pass on skills to next generation- Declining working-age population- Evolution and increasing complexity ofproducts and services- Enforcement of legal obligations
pertaining to safe use of products- People living longer, healthier lives- Movement and outflows of talent(“brain drain”)- Evolving digital technology- Addressing the needs of our clients’environments

1

2

3

Facilitating behavioral changes
that increase productivity andalleviate labor shortages

Helping to create environments inwhich products and services can be

Creating working environments where

Building the foundation on whichused safely and with peace of mind

a diverse range of employees
can thrivenext-generation businesses• Promoting digital transformation (business
transformation, manpower reduction, etc.)• Frameworks for ensuring the right information
reaches the right people• Developing people• Business process management (streamlining,increasing productivity, etc.)• Strengthening Group governance* QOL: Quality of life; QOW: Quality of work4
can be developed• Helping clients make their businesses moreenvironmentally friendly• Promoting QOL/QOW*• Building partnerships with industry,
governments, and academia• Harnessing the power of the latest technology■ Process for Identifying Material Issues
1. Selection of Potential Issues

2. Materiality Assessment

3. Identification of Material Issues

With reference to the Sustainable Development Goals,

The selected issues are assessed from two perspectives:

Items assessed as high priority from both perspectives

Sustainability Promotion Committee Members“the importance to stakeholders”, with emphasis on theare discussed with members of the board of directors to(representatives from each organization) select potential

expectations and interests of our clients, and “the impact

identify the Group’s material issues.

material issues relevant to the CMC Group.

on the CMC Group’s business”.

05

CMC GROUP | Creating Inspirational Value Report

THE SOURCES OF VALUE CREATION | Human Capital
We believe the CMC Group’s greatest asset is our people. Our professional employees are the key to value creation, and we go to great
lengths to position them for success.

CMC Corporation

Personnel Development

Creating a Work Environment
Where People Can Thrive

Our training programs are geared to developing
employees who, while working alongside our clients,
can design and bring to life businesses that achieve“sustainability of information value”.

We want our work environments to be places that
respect our employees’ diversity and allow them towork safely and happily.

Main Initiatives* 1

Main Initiatives* 1●Spreading awareness of and instilling core values(CMC Group Way Promotion Committee)●Creation of systems and a workplace culture that supports
diverse ways of working(Flexible working hours (no “core time”), telecommuting,childcare leave, nursing care leave, permission to work side
jobs, re-employment of older workers, etc.)●Professional training tailored to markets/
functions/job roles(Product/Service workshops, skills training, etc.)●Developing expertise(CEO-led training for high performers, training for nextgeneration leaders, “Tongaru Camp” online training
platform, etc.)●Health Promotion(Periodic health checkups above and beyond statutory
requirements, seminars on health promotion and mental
wellbeing, CMC Group Way calisthenics, mental health worker
consultation service, etc.)●Quality improvement awareness raising(CS Promotion Committee)

436*2● Certified by the Nagoya City
Council as “a company that
actively promotes women in theworkforce”● Sports YellCompany 2024

Main Corporation● Certified Health & Productivity Management Outstanding
Organization (Small and Medium-Sized Corporationdepartment; fourth consecutive year in 2024)● Excellent Corporation for Health Management(Silver Level Certification)● Recognition of activities to promote women’s participation
and advancement in the workplace*7● Tokyo Work-Life Balance Certification● Sports Yell Company 2024

CMC Xmedica Corporation

CMC Group Human Capital at a Glance*

CMC Corp. Employees(Non-consolidated)● Certified Health & Productivity
Management Outstanding
Organization (Large EnterpriseCategory) for the fourth year in arow in 2024

● Minato City Work-Life Balance Promotion Certification●Support for self-development(Subsidized training, qualification allowances)

925

Certified Nagoya City Council“Women in the Workforce Promoter”● Tokyo Father's Childcare Leave Promotion Project 2023

●Support for individual career development(Career training, 1-on-1 guidance from supervisors)

Total Employees(Consolidated)

External Evaluations

Group Employeeswith ICT Expertise

223206Group Employees who
are Qualified Mechanics...of which, qualified Class 1
Auto Mechanics

Average
Length ofService● Excellent Corporation for Health Management* With the exception of total (consolidated) employee numbers and employees with ICT expertise,
figures are for CMC Corporation (non-consolidated), as of September 30, 2023.

42

15.5

years*2(Silver Level Certification)

Annual Leave
Utilization Rate

80%

No-Overtime
Day Rate

77%

Paternity Leave
Utilization Rate*3, 5Percentage of Women inManagement/Leadership
Positions*3, 4

17.8%

55.6%

Maternity Leave
Utilization Rate*6100%*1 Includes initiatives conducted by CMC Corporation on a standalone basis. *2 Excludes employees seconded to other organizations; includes employees seconded to the CMC Group from other organizations. *3 Includes employees seconded to other organizations,including other CMC Group companies; excludes directors, part-time employees, employees seconded to CMC Group from other organizations (Denominator: 422 employees). *4 The percentage of women in management positions is: CMC Corporation: 6.2%; CMC
Solutions: 22.2%; CMC Xmanicom Corporation: 31.3%; and Main Corporation: 42.9%. *5 Period of leave taken: At least 2 weeks; Main Corporation utilization rate: 100%. *6 Period of leave taken: At least 12 months (including maternity leave). *7 “Kurumin” Certification
2023: Based on the Act on Advancement of Measures to Support Raising Next Generation Children, this program recognizes organizations that are supportive of childcare; “Eruboshi” Certification (3 Stars): Based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace, this accreditation system recognizes workplaces that are conducive to promoting women’s empowerment.

06

CMC GROUP | Creating Inspirational Value Report

THE SOURCES OF VALUE CREATION | Intellectual Capital, Social and Relationship Capital, Manufactured CapitalIntellectual Capital | External Evaluations
DX Certification

ISO27001
Certification

Accredited by the Ministry ofEconomy, Trade and Industry as
a company with the expertise toachieve digital transformation,
both internally and for clients.

(Information Security)

ISO14001 Certification* 1, 2

• MONET Consortium• Declaration ofPartnership Building• 3D Scanning Technology Association• Chubu Marketing Association• Aichi e-Sports Union
No.I050-ISO/IEC 27001

Our products are made with raw
materials from well-managed, ForestStewardship Council ®-certified
forests, recycled materials, andother resources sourced fromproperly managed suppliers.

• Maruboshi Europe E.U.R.L.* (France)(Quality)(Environment)

FSC® Certification*¹

Manufactured Capital |Domestic andGlobal Locations

ISO9001 Certification* 1, 2

Social and Relationship Capital |External Endorsements and Memberships*1 Registered organization: Nakagawa Office*2 Scope of registration: Production of general printed materials (catalogs, manuals, etc.)• Japan Technical Communicators
Association• Platform for Public
Private Collaboration
on SDG RegionalDevelopment• Japan Association of Graphic ArtsTechnology• All Japan Federation of Printing
Industry Associations• Aichi Social Insurance Association3• CMC Productions USA, Inc. (USA)JapanEuropelocations• Maruboshi Europe B.V.* (Netherlands)• Maruboshi Central & Eastern Europe Sp. zo.o. (Poland)Asia

7locations• GCMC Information Technology Co., Ltd.* (China; 2 locations) http://www.cmc-china.cn• GCMC Network Technology Co., Ltd. (China) http://www.cmc-china.cn• CMC Group Asia Co., Ltd.* (Thailand/Singapore) https://www.cmcgroupasia.com• Taiwan Maruboshi Documentation Technology Co., Ltd. (Taiwan; 2 locations) https://www.maruboshi.com.tw

16

https://cmcprousa.comlocations

North America

1location• CMC Corporation (8 locations) https://www.cmc.co.jp• CMC Solutions, Inc.* https://www.cmc-solutions.co.jp• CMC Xmanicom Co., Ltd.* https://www.cmc-xmanicom.co.jp• Main Co., Ltd.* https://www.cc-main.co.jp• CMC Xmedica Co., Ltd.* https://cmc-xmedica.co.jp• Fuchucar Co., Ltd.* http://www.fuchucar.co.jp• FIT Co., Ltd. https://www.fit2001.com• Kimura Information Technology Co., Ltd. https://www.k-idea.jp• Dreams Design Corporation https://www.dreams-design.co.jp
Companies marked with an asterisk (*) are consolidated subsidiaries
Note: Certifications and affiliations pertain to CMC Corporation.

07

CMC GROUP | Creating Inspirational Value ReportOUR HISTORY OF VALUE CREATION
Moving with the times. Focusing on what is essential and continuing
Extending our value proposition
to provide inspirational value.
in the design and engineering fields ofthe mobility industry

Since our earliest days, we have focused on the true nature of our clients’ concerns, and our services have2019

value, responding to changes in society and the information that people need to thrive.
Readying ourselves for a digitalsociety by strengthening our people
development value proposition
Expansion of our value proposition inthe mobility industry

2011

1998

Expansion ofclient baseMain Corp.* becomessubsidiary

CMC Xmanicom* (prev. Maruboshi Corp.),
Maruboshi Europe B.V.* (Netherlands),
Maruboshi Europe E.U.R.L* (France),
Maruboshi Central & Eastern Europe (Poland),and Taiwan Maruboshi Information
Technology (Taiwan) become subsidiaries

2005

1962

Ramping up value proposition in the
medical/pharmaceutical industries

ICT
Strategy

Natural Language
Processing AI

Data
Streamlining

Product lineup
expansion

Chatbots

2017

RPA
Expansion ofclient baseStrategicSupportxR(Intangible: Craftingexperiences)

CMC Xmedica* (prev. Asahi C&I)
becomes subsidiary2012

Marketing
StrategyPersonnel
Development

Foundation of CMC Asia Pacific(current CMC Group Asia*) (Thailand)Business Process
Management

2006

ContentDevelopment

Technical Manuals

Microfilm

1970

Genba
know-howBusiness and capital alliance
formed with FIT Corp.

Business and capital alliance
formed with Kimura Information
Technology

Foundation of CMC Solutions* (spin-off ofsoftware development department)

1962

Fuchucar Corp.*
becomes subsidiary

Tracking & Sensing

Ramping up use of digital technology
as we look towards the future

Foundation ofCMC Corporation

Product lineup
expansionProduct lineup
expansion

Product lineup
expansion

Foundation of CMC Productions
USA (USA)Foundation of GCMC Information
Technology* (China)

Business and capitalalliance formed withDreams Design Corp.

2016

Expansion into global markets

2023

Boosting the value of our services
through the use of digital technology

2018

evolved to meet the needs of the times. With an eye on the future, we are continuing to deliver inspirational

Accelerating development of
products that meet the needs ofautomotive repair workshops(Tangible: Making“things”)

Printing

2000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Business Expansion Timeline
Mobility
Manufacturing
Logistics
Medical/Pharmaceutical
Robotics/Software Robotics
Local Government
Notes:
・We use the term “mobility industry” to collectively refer to clients of ours who provide products and services related to the movement of people and goods; it includes a wide range of industries from automotive to aviation and railways.
・Companies marked with an asterisk (*) are consolidated subsidiaries.

08https://cmc.jp/english/

Creating Inspirational Value Report
Published March 2024
Publisher / Inquiries:

CMC Corporation

Corporate Planning DivisionCorporate Planning Department
1-1-19 Heiwa, Naka-ku, Nagoya, Aichi, 460-0021
keieikikaku@cmc.co.jp