Special Dialogue

Introduction

Strategies for Value Creation

Foundation for Value Creation

Financial/Corporate Data

The role we must play inrealizing a “next-generation
circular economy”
With the Group Vision 2030 finally underway, we invited Mr. Takashi Nawa (outside director ofthe Company), a Professor at Hitotsubashi University Business School, School of International

Corporate Strategy and the author of Creating Shared Value for Management Innovation andProfessor at Hitotsubashi University Business
School, School of International Corporate Strategy

NEC Capital Solutions Limited

Outside Director

Takashi Nawa

NEC Capital Solutions Limited

President

Masaaki Suganuma

Review of the previous Group Vision“I highly commend the advanced andconcrete efforts that have been madetoward CSV.” (Mr. Nawa)

Under the previous Group Vision, whichbegan in FY2014/3, we accelerated our transformationfrom a leasing company to a company that provides capitalsolutions, and promoted the realization of CSV managementwith an eye toward resolving social issues. Throughout
this period, we were able to firmly cultivate understanding
and empathy for CSV management among our employees,
and were able to embark on new initiatives in fields suchas renewable energy and healthcare, paving the way to thegeneration of revenue. I believe that this past decade has
been a time in which we have been able to create a greaterawareness of CSV management while connecting ourcapital solutions to various other social issues.
Suganuma

KisakiWe started CSV management 10 years ago
when it was not as common as it is now, and over the past
decade, we have been able to develop a system to put CSV
management into practice, which now gives us a majoradvantage over other companies in the industry. We havealso achieved a certain degree of results in expanding ourbusiness domain to improve social value, including vendor
finance, ICT-related services, and financial products. In
terms of numbers, we were able to steadily accumulate
operating assets, achieve our three-year profit plan, andmeet our targets of over 100.0 billion yen in shareholders’equity and an equity ratio of over 10%. Compared to 1015

“Purposism” beyond Capitalism , to discuss the purpose of our Company aiming to create a nextNEC Capital Solutions Limited

Representative Director andSenior Executive Vice President

Masamitsu Kisakiyears ago, when we formulated our previous Group Vision,
our revenue level has increased significantly, and I would
summarize the past decade as a time in which we wereable to build the foundation for our next leap forward.
Nawa
I was involved as part of the team in theformulation of the previous Group Vision. Thanks to this, I
have been able to serve as an outside director to this day.
The Company has been emphasizing CSV as its purpose
from an early stage even from the global perspective—
before the adoption of the SDGs—and it can be said that therest of the industry is now catching up. I highly commend theCompany’s innovative spirit, and the fact that we actually
put it into practice with concrete businesses in terms ofenvironmental and social aspects, rather than simply talking
about it with fancy words. On the other hand, an importantquestion to ask ourselves is whether all employees,
including those in the back office, were able to make theirown purpose while rearranging the Company’s purpose tosuit each organization, and whether this was possible not
only in new businesses, but also in conventional businesses.
I would like to raise these points as issues that will affect thesuccess or failure of realizing our new vision.
Group Vision 2030

“Group Vision 2030 incorporates twomajor beliefs and commitments”(President Suganuma)

We have recently announced our Group Vision
2030, “Be a solution company leading the next-generation
Suganuma

generation circular economy, and the future direction of our CSV management, alongside President
Suganuma and Vice President Kisaki.					circular economy,” which describes what we aim to be ineight years’ time, and this vision incorporates two majorbeliefs and commitments.
The first is our belief in and commitment to becoming
a company that aims to create a next-generation circulareconomy. Leasing, which is the origin of the Company’s
founding, is a truly “circular economy-oriented”
business that can undertake proper 3R* processing ofreturned equipment. The Company has been supporting
environmentally friendly 3R processing since theearly 2000s, and I believe that the knowledge we haveaccumulated regarding “circular economy-oriented”
services through leasing is one of our major strengths.
Going forward, it is predicted that we will enter a world
where we must continue to recycle resources to maintainthe global environment, such as by achieving the SDGsand preserving biodiversity. We have decided to call thisa “next-generation circular economy,” and based on theabove prediction, we aim to demonstrate our value andcontribute to resolving social issues based on our original
strengths, while using “circulation” as a keyword.
The second is our belief in and commitment to becoming
a “Solution Company.” In addition to the meaning ofa company that provides solutions to resolve futuresocial issues, we also use the word “company” to meana group of colleagues who share the same values. Basedon this idea, I would like to work to improve employee* 3R means Reduce waste emissions and Reuse and Recycle waste.
It refers to a mechanism for reducing the environmental burden bymaking effective use of resources and cutting waste emissions.

(Date of dialogue: June 2023)

engagement toward resolving issues for the creation of anext-generation circular economy.
I am sometimes asked about the specific form of a nextgeneration circular economy, but at this stage, I havepurposely kept it to expressions focused on keywords. Just
as the Company has autonomously sensed changes in
the world and expanded additional domains centered on
financial solutions, I would like for our front-line members
to be able to autonomously grasp market changes andcreate solutions that respond to them. I would like to addthat I purposely use abstract expressions to convey thissense of expectation.
Kisaki
The Group Vision 2030 is the resultof identifying and deriving our strengths from two
perspectives: our reason for existing and long-term trends
in the world.
The first topic of discussion during formulation wasfuture megatrends. From this perspective, focusing on thehigh affinity between the SDGs, which are common goals
for the entire world to be reached in 2030, and our own
CSV management, we have decided to set the goals for thisGroup Vision as 2030, in line with the SDGs. The Company
has predicted that society in 2030 will be a CPS (CyberPhysical System) society in which physical space andcyberspace are highly integrated. We have been working
on the specifics of our Group Vision, taking advantage ofthe fact that our Company is the closest to a CPS society inthe industry.
In addition, one of the key points of the Group Vision
2030 in this context was the incorporation of the ideaof “Company = colleagues with shared values,” asNEC Capital Solutions Limited Integrated Report 2023 16

Special Dialogue

Introduction

discussed by Suganuma. We, the management team, have

the Company as very reliable, as we temporarily hold onto

on our strong desire to align the vision of the Companyevolution. In other words, the Leasing Business,

incorporated anthropomorphic expressions like this basedwith the vision of each and every employee. This sharingof values can be said to be the key to achieving our Group
Vision, and we hope to link this sharing and dissemination
to improving employee engagement and strengthening
human capital.

Nawa
The term “circular economy” is being used
recently, and I believe that it represents both an old andnew concept. I am very impressed by the fact that thenew Group Vision reflects management’s strong will todevelop the Vision into a next-generation model, as wellas to further develop the Company itself while leading
the next-generation circular economy. Using my own
interpretation and words, I would say that the Company
has upgraded to CSV management 2.0. In addition, as I
mentioned at the beginning, I hope that the Company
will strive to comprehensively strengthen human capitalso that all employees can move forward with confidence
toward the Group Vision 2030 and traditional businesses
do not get left behind.

Roadmap towards 2030

“I would like to develop resilient
strategies based on a new management
approach” (Vice President Kisaki)

Suganuma This is just my personal image at this point,
but I hope that by the time we reach 2030 after a series offuture initiatives, we will have become a company witha unique edge that people feel tempted to contact when
faced with issues, for example, in the healthcare or solar
power fields.
Also, we have very large assets in the national and localgovernments. Based on these strengths, I would like toexpand our non-core services to include more by 2030,
such as the operation of computer equipment. Moreover,
we will provide multifaceted services related to themanagement of the national and local governments, suchas by proactively making proposals to local governmentsthat consider PFI and PPP due to aging infrastructure, andstrive to create an environment where we can develop
meaningful relationships. I believe that such developments
will, in a sense, contribute to society and support thecirculation of public infrastructure.

The current Medium-term Plan for FY2024/32026/3 has just started, and the next Medium-term Plan for
FY2027/3-2031/3 is still in the rough stages of design, but
the current Medium-term Plan includes several points thatwill lead to the next Medium-term Plan.
Of these, the point I place the most emphasis on is theintroduction of a business matrix strategy. To put it simply,
this is a new combination of the four business segments ofKisaki

17Strategies for Value Creation

Leasing Business, Finance Business, Investment Business,and Other Business (service business), and theCompany’s four capital solutions of vendor finance,
ICT/professional services, customer sales and financialproducts. This allows each organization, each person incharge, and each individual to check their current positionand progress toward the objectives of the Medium-term
Plan at a detailed level, as necessary. At the same time,it also becomes possible to resiliently plan and executestrategies to achieve the goals. Over the next three years,
we will use this new management approach to consistently
and minutely monitor PDCA and aim to achieve ourmanagement targets for FY2026/3. Then, based on theprogress and final results of the current Medium-term Plan,
we will build a resilient plan for the next Medium-term
Plan.
[Business Matrix Strategy]

Leasing
BusinessICT/Vendor
Customer Financialprofessional
financesales
productsservices● Each organization, each person inFinanceBusinessInvestment
Business
Other
Business

Capital solutions axis

charge, and each individual checks
their current position and progress
toward the objectives of the Mediumterm Plan at a detailed level, asnecessary.

● Resiliently plan and executestrategies to achieve the objectives.

Business segment axis
Nawa
Currently, many private companies arestruggling with the paradox that holding on to assetsthat originally generate corporate value is hindering PBR.
As a company that understands the concerns of privatecompanies and supports asset transformation (AX) fromtangible to intangible assets, I see the current position ofFoundation for Value Creation

Kisaki

Financial/Corporate DataEarlier, Professor Nawa raised the issue ofassets and accompany the companies on their paths of

the importance of instilling purpose among employees.

which is our bread-and-butter business, is a “circulareconomy-oriented” business that is highly suited toof our corporate philosophy, which can be describedas our purpose, our vision, and our principles. Someparts of our Group Vision 2030 refer to a world that issomewhat far ahead, but by having people grasp thevision in terms of these three layers, I hope the vision
will seem more relatable to employees. We are keenly
aware of the fact that the management goals we have set
in order to implement this new, highly ambitious vision
are by no means easy. On the other hand, I believe thatby accomplishing these objectives, we will dramaticallyincrease our presence within the industry. We are striving
to steadily implement all kinds of measures, including theMedium-term Plan 2025, so that we can enjoy a virtuous
cycle in which we take the lead in creating new social value
and linking it to our next leap forward.

asset reorganization, and we look forward to playing aneven greater role in the future. Furthermore, for local
governments, I believe that initiatives for PPP and PFI,
which combine the power of the public and private sectors,
will become our key in the future. In the tourism businessand other businesses that we began working on under theprevious Group Vision, we not only made investments,
but also worked from the perspectives of both tourism
and regional revitalization. Based on these strengths, I
hope that we will become a co-creative organization that
undertakes all consultations about local concerns anddiscusses what the Company can do and incorporate.

In establishing this new vision, we formulated the trinity

Suganuma What I want to create the most through our
Medium-term Plan and vision is culture. The principles
mentioned by Kisaki are also included in this. As I
mentioned earlier, in order for us to become a company
that can autonomously respond to changes, it is essential

Towards sustainable growth in the futureNawa
As we approach the end of this discussion,
I would like to express my personal opinion on ourrelationship with NEC. To put it bluntly, I believe thatwithout our relationship with NEC, we would be in thesame position as many other general leasing companies.
NEC is a global company that is rated No. 1 in the worldin the security market, and I would like for the Company
to make effective use of the NEC brand to widely promote
our ability to provide safety and security even in theincreasingly advanced information society of the future.
Moreover, regarding the CPS-related topic that Vice
President Kisaki mentioned earlier, I hope that, while using
financial solutions, we will proceed in such a way that one
day we may be the ones guiding NEC while building a good
and trustworthy relationship.

to have a culture that is appropriate for this. Going forward,
I would like to continue to build this culture over the longterm. In addition, through this process, we would liketo become a company that works to communicate with
employees and foster job satisfaction, which is the mostimportant management theme.
Earlier, Professor Nawa mentioned CSV management
2.0. The Company has in fact entered a new management
stage towards its vision for 2030. As Kisaki mentioned,
the newly established vision is highly ambitious, butby holding dialogue sessions and other events for all
employees, we are working to share how our objectives
are possible based on our past performance. Please lookforward to our future development, evolution, and growth.

NEC Capital Solutions Limited Integrated Report 2023 18