Medium-term Plan 2025

Introduction

Medium-term Plan 2025

Our new Group Vision, “ Be a solution company leading the next-generation circular economy,” was established witha goal of 2030 that is in sync with the SDGs. Under the Medium-term Plan 2025, we will carry out CSV management,

which we had been implementing during the 10 years under our previous Group Vision, and take up the challenge ofreforms to realize a next-generation circular economy.

Review of Medium-term Plan 2020
Strategy(I)Expand core areas:

Strategy(III)Management objectives

Improve profitability and accelerate pursuit of sustainability management through realizing a next-generation circular economy● Profit targets(billion yen)

Profit attributable to owners of parentPlan

FY2021/3 FY2022/3 FY2023/3 Cumulative
totalResults

4.0
4.1

5.5
6.9

7.5
6.4

17.0
17.4

Though improving profitability remains an issue, net income reached three-year target● We attracted higher demand during the pandemic, primarily in the Leasing business, and achieved profit targets.

● An increase in assets with higher profitability and investment business initiatives contributed to revenue and profit.
● External credit ratings improved due to higher profitability and other factors. Our R&I rating was improved from“BBB+” to “A -” and our JCR rating was improved from “A -” to “A.”● Further improvements to revenue and profit are an issue, such as expanding the customer base and pursuing

initiatives with high added value.

Progress made in generating revenue from new businesses differed in each area

● The energy area saw an expansion in the scope of the business, and the healthcare area succeeded in steadily

securing assets for the warehousing business, resulting in revenue and profit in these two areas.

● In the tourism area, we made progress with investments and loans utilizing tourism resources as well as operationand fund businesses, but this area has yet to generate substantial amounts of revenue and profit.

● In the agriculture area, we struggled to stabilize revenue and generate revenue by pursuing the sixth

industrialization (encouraging workers in agriculture, forestry and fishery sector to produce, process and sell theirproducts) and optimizing the value chain.

● Although PFI was affected by the pandemic and high prices, progress was made in generating revenue fromprojects that we took part in as the representative company, among others.

Launch of new services is a work in progress● Through the acquisition of NEC Financial Services, LLC, we entered the North American market where “as aservice” type offerings are promoted.

● Efforts were made to launch a new service model with vendors and create new services, but this is still a work inprogress.

● Reinforcement, including of the organization, is necessary to create and establish new services unique to theProfitattributableto owners ofparentROA*ROE

Results in FY2024/3 FY2026/3
FY2023/3
PlanPlan

6.4

7.5

10.0

0.7%

0.7%

0.9%

6%

● Accelerated activities aimed at improving work motivation and reinforce improvements to employee engagement.
● Revamped workstyles, such as establishing a remote work environment and reworking the operation process.

● Recognized as a Health & Productivity Management Outstanding Organization 2023 (large enterprise category).

Reinforcement of sustainability initiatives● Issuance of Company’s first sustainability bond.

● Sustainability Committee was established and PDCA aligned with the TCFD (Task Force on Climate-related

Financial Disclosures) was begun.

● Became a supporter of TCFD recommendations.

137%* Consolidated net income/average balance forconsolidated operating assets

8%● Non-financial indicators (excerpts)
Objective

Description

CO2 reductions to achievecarbon neutrality

Scope1+2
Ratio of decline compared to FY2023/3
Cumulative contracts over threeEstablishment of social
year period for the national and local
infrastructure
governments
Promotion of cyclical use
Total number of disposals of products
following expansion of ICT
whose lease has ended over three-yearbusiness
periodPromotion of response toRenewable energy power generation
climate change
capacity (power generators owned)
Promotion of activities
School biotope education: Total
contributing to society
increase in number of schools overwith natural capital in mind
three-year period
Improve employee engagement Employee engagement score
Promotion of diversity
Ratio of female managers

TargetFY2026/3
20%
reduction
400.0
billionyen
700,000
units
100MW

10schools
34%
10%

Expand service business and create new cyclical services

Business Strategy(I)Expand services in renewable energy power generation, warehousing, IT asset management, PFI,
tourism, and other businesses
Create new services for a circular economy

・Create services leading to cyclical use of products
・Create services leading to virtuous circle for local economies and societies
・Create services leading to virtuous circle for corporate growthBusiness Strategy(II)Accelerate growth through strategic investment in core businesses

Expand scale of business through high added value for ICT-related services

・Enhancement of services related to PC-LCM*1 through system tie-ups with customers and vendors andstrengthening of planning functions, expansion of rental services, BPO*2 and consulting services

Expand and refine fields for financial products in Japan and overseas

・Expand financial product and investment targets, with a focus on investments/loans and advisory services, andincrease revenue and profit

Business Strategy(III)Strengthen vendor finance and expand customer base

Provide capital solutions aligned with vendors and customers

Improve profitability and create revenue opportunities by strengthening relationships with vendors
Cultivate transactions by developing and offering solutions for customers’ issues
Strategy to strengthen management foundationcompany.

Reinforcement of initiatives to improve employee engagement(billion yen)

HumanStrengthen management foundation supporting businessstrategies

The first three years, during which we will take on challenges to transform ourselves in order to realize the nextgeneration circular economy set forth in the Group Vision
Aim to create new cyclical services unique to the Company to practice CSV management and achieve a next-generation
circular economy● Financial indicators

Harvest new businesses:

Generate revenue from new businesses that capitalize on ourstrengths, including in non-financial sectors

Financial/Corporate Data

Set non-financial indicators such as measures to realize carbon neutrality

Advance services unique to us that demonstrates its strengths

Strategy(II)Foundation for Value Creation

Positioning of Medium-term Plan 2025

Environmental and social issues capital● Strategies

Strategies for Value Creation

Strengthenfoundation for sales
operations basedon digitalization ofoperating process
and use of digital
information

Launch core system
as DX foundation
andpromote DX
activities

Create organization, andintroduce HRmanagement systemaligned withmanagement strategies,and create corporate
culture conducive toongoing challenges andinnovation

Improveeffectiveness ofcorporate
governance

Implement
measures to achievecarbon neutrality(bring Scope 1 + 2 ona consolidated basis
effectively to zero by
FY2041/3)*1: PC-LCM: A one-stop IT equipment provision service from procurement through to operation and management.
*2 BPO (Business Process Outsourcing): A management strategy that aims to improve operational efficiency and reduce costs by partiallyoutsourcing a company’s business processes.

NEC Capital Solutions Limited Integrated Report 2023 14