Su stainab i l i t y M e s s a ge
Foundation for Value Creation

Continuing to be acompany that values
the obvious
Representative Director
Senior Executive Vice President

Masamitsu Kisaki
Each and every employee is a key player
in our Group Vision 2030

It took approximately one year to formulate the Group
Vision 2030, which was announced in April 2023. We held
various discussions with a healthy sense of both danger
and positivity, asking questions such as what are ourstrengths, what is our culture, where do we stand in theindustry, and what do we want to be in the future? Thebiggest issue we discussed was whether the Company wasgenerating revenues appropriate for a company listed on
the Prime Market of the Tokyo Stock Exchange. In order toface and overcome these issues, we determined that ournew Group Vision requires “innovation and challenges.”
Each and every employee is a key player in our Group
Vision. The word “company” in the phrase “Be a solution
company leading the next-generation circular economy”
includes, in addition to the meaning of a corporation, themeaning of colleagues who share values. In other words,Corporate
Philosophy(reason for existing)Vision(our purpose)

Material issues

Principles(action guidelines)

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it expresses how each and every employee contributes
to society through the company. There are a numberof actions a company should take to ensure that its key
players can take on innovation and challenges, andfulfill their roles to the fullest. The theme here deals withunderstanding the Group Vision, empathizing with it,
sharing its common values, and finally, putting it intoaction.
Because the Group Vision expresses what we want tobecome in a written form, it can seem abstract and difficult
to visualize in a familiar way. Therefore, by formulating“Principles (action guidelines)” that clarify the actions
that will lead to the realization of the Group Vision, wehave enabled our employees to take on “innovation andchallenges” in their daily work. These are actions that
we want each individual employee to undertake, and wehave summarized them in a short and easy-to-remember
phrase, the Four Shinka (advance, deepen, update, truevalue).

● Four Shinka

Advance(Co-creation withcustomers)

Deepen(Deepen relationships
with customers)

UpdateTake up the challenge of strengthening
and developing services and creating new
businesses, while continuing to resolve issues
for customers and society.
Improve the quality of operations through IT
utilization and digitalization, and build solid
relationships of trust with customers.

(Corporate culture)

Each individual employee embraces diversity
and makes the most of their own potential.

(Corporate value)

Aim to improve corporate value continuously
by creating social value and economic value.

True value

Introduction

Strategies for Value Creation

Material issues that connect the vision
and Principles

In addition, in formulating the Group Vision 2030, we reidentified material issues. As the previous Group Vision
aimed to realize CSV management that creates both
economic and social value, it had a strong focus on
business strategies as important issues for the realizationof CSV management. A decade has passed, and we have
now entered a phase of evolving CSV management.
Accordingly, we have re-identified social issues, such asa decarbonized society and human capital, as material
issues from the perspective of sustainability. Materialissues play an important role in connecting the Group
Vision and Principles, and we incorporate the issues
identified in material issues into the measures of ourMedium-term Plan. Management indicators and KPIs (KeyPerformance Indicators) based on these material issues
are linked to the performance goals of each and every
employee, including directors.

Dialogue sessions for all employees

Up to this point, I have explained the underlying beliefof the Group Vision, but the new Group Vision will truly
begin only when all employees have understood it. Tofoster understanding within the Company, four directors
worked to hold dialogue sessions at all our offices from
May to early July 2023. These dialogue sessions allowed
us to not only foster understanding of the Group Vision but
also to share our values. We took time to have in-depth
discussions with 20 to 30 staff from each office, and foroffices located outside the headquarters area, where thefour directors do not visit very often, we combined theevent with a social gathering. I hope that by spending time
together in this way, our ways of thinking and decisionmaking criteria were shared with employees, and thatwhen faced with issues going forward, they will ask
themselves, “How would Mr. Kisaki approach this?” Thesharing of values cannot be achieved overnight, but wewill continue working toward it, such as by monitoring theresults of engagement surveys conducted once a quarter.

Foundation for Value Creation

Financial/Corporate Data

We would like to share with our employees the simple

value of being a “company that values the obvious.” Thegoals for our Group Vision are set for 2030, which is thesame year as the SDGs goals, and one could say that theSGDs goals and targets are all “obvious.” I want to be acompany that values such “obvious” things.

Dialogue session

Carbon neutrality commitment for a nextgeneration circular economy

As of the current Medium-term Plan, we have included
non-financial indicators in the plan to integrate oursustainability initiatives with our business strategies. In
addition, we have declared our intention to become carbon
neutral by the fiscal year ending March 31, 2041. Enhancing
our sustainability initiatives is in line with the goals ofour Group Vision 2030. In our Medium-term Plan, wehave set a goal to further improve profitability, but rather
than pursuing immediate profits, our aim is to improve
profitability that can be sustained over the medium- tolong-term. I believe that each of these things leads to therise of values that place emphasis on the “obvious.”
We are ready to take on innovation and challenges
toward the creation of the next-generation circular
economy for 2030. If we can highlight the Company’s
uniqueness and solidify our position within the industry,we will be able to lead the next-generation circulareconomy. Going forward, it is likely that movements
related to natural capital, such as biodiversity, will
accelerate as global issues. We would like to respond tothese movements by providing our own unique “circulareconomy-oriented” services.

Previous material issues

New material issues

・Strengthen the partnership with NEC・Reinforce our base for funding
Expanding the revenue
・Expand our customer basebase
・Expand our global business・Create new businesses

Promotion of decarbonized society and circular economy

Business activity

Management foundation
Corporate culture
transformation

・Improve employee satisfaction

Strengthening
・Improve operational quality
management foundation・Ensure complianceBusiness activity

Promotion of establishment of social and ICT infrastructure
Creation of new services and businesses to resolve social
issuesManagement foundation

Investment in human capital

Pursuit of corporate governance that supports improved
corporate value

NEC Capital Solutions Limited Integrated Report 2023 20