Group Vision 2030 and Medium-term
Plan 2025 (FY2024-2026)
April 28, 2023
NEC Capital Solutions Limited

FY2024: Fiscal Year Ending March 31, 2024
© NEC Capital Solutions Limited 2023

1. Group vision 2030
2. Medium-term Plan 2025

1. Group vision 2030

1. Corporate philosophy
Helping Societies Advance through “Capital Solutions“** Capital Solutions: The Company’s own term referring to the provision of solutions(“Solutions”) for a wide range of issues related to customers’ managerial resources(“Capital”)➢ We have developed our Group vision since 2013, which we have pursued underour corporate philosophy (reason for existing), to the stage at which we canimplement CSV (Creating Shared Value) management. We redefined what wewant to be, and established a new Group vision with a goal of 2030 that is insync with the SDGs, which have a high affinity with CSV management.

5© NEC Capital Solutions Limited 2023

2. Overview of Group Vision 2030
Be a solution company leading thenext-generation circular economy▍ Next-generation circular economy⚫ The next-generation circular economy that we envision for 2030 and beyond, not only
reduces adverse environmental impact through enhanced resource efficiency, but alsoutilizes resources in a continuous circular process, and is a circular economy that
continues to generate newly added value.

⚫ In order to resolve diversifying issues of both customers and the society, we will provide
services that lead to a virtuous circle for both the environment and our growth, andstrive to realize a next-generation circular economy through the practice of CSV
management.

▍ Solution Company*⚫ Implementation of “Capital Solutions” that is included in both our corporate philosophy(reason for existing) and company name.
⚫ Innovation of solutions for vendor finance, ICT services, and financial products both
domestically and overseas, expansion of not only conventional business segments but
also peripheral realms, and venturing to create new business opportunities and “circulareconomy-oriented” services.

6* “Company” means a business organization and a group of colleagues (partners) that shares the same values.
© NEC Capital Solutions Limited 2023

3. Our approach to “a next-generation circular economy”➢ Through our leasing business, we have been promoting initiatives to realize a circular
economy through the introduction of environmentally friendly products and recycling ofresources through advanced 3R processing.
➢ “A next-generation circular economy envisioned for 2030 and beyond is a world in which
resources continue to be used in a cyclical process and a circular economy and society thatcontinues to generate new added value.
➢ We aim to provide services that extend beyond conventional leasing and lead to a virtuous
circle for the environment and growth and achieve “a next-generation circular economy”.
➢ Create various and “circular economy-oriented” services through the innovation of capitalsolutions.

Vendor partners

Shareholde
rsEmployees

Products

Services

Co-creation of corporate value(Positive growth cycle)◆ Services that lead to cyclical use of products◆ Services that lead to a virtuous circle for local
economies and societies◆ Services that lead to a virtuous circle for corporate
growthProducts
Group

Regional revitalization
Energy/smart cities(Positive cycle for local
economies)

Customers

Services
Use

Activities contributing tosociety Biotope, etc.
(Biodiversity)

7

Resource cycle© NEC Capital Solutions Limited 2023

Recycling

Sharing Turning
products into services(Cyclical use)

Current services (example)
➢➢➢➢
➢➢➢
➢
➢

Leasing and rental with maintenance
Service model (from owning to using)
PC-LCM services
Subscription services
Effective use of asset (real estate-relatedbusiness)
Infrastructure sharing
Renewable energy power generation
Life cycle support for companies(fromestablishment to revitalization)
Projects to revitalize communities, etc.

4. Alignment with SDGs
➢ SDGs are “the sustainable development goals” adopted at the UN Summit in September
2015. These 17 goals are targets shared around the world that are to be achieved by 2030.
➢ The world faces a wide range of problems, including environmental problems, poverty,starvation, conflicts, social disparities, and energy issues. Companies that have pledged towork on these goals engage in their own business activities to achieve them.

➢ The Group works to raise social value through its business and to contribute to theachievement of SDGs by providing services to resolve social issues through theimplementation of CSV management.

Of the 17 goals, the Group can contribute to the following 8
goals in particular (we will respond to environmental
changes around the world, without limiting ourselves tothese goals)

Source: Website of United Nations

8© NEC Capital Solutions Limited 2023

5. Identifying material issues➢ Reidentifying material issues (important issues) to achieve the Group
Vision 2030
Material issues

Previous material issues

Strengthening businesscapability• Improve operational quality• Ensure compliance© NEC Capital Solutions Limited 2023

Management foundation

Business capability

Strengthening businesscapability• Improve employee
satisfaction

Business activity

Business activity
9Expanding the revenue base
• Strengthen the partnershipwith NEC• Reinforce our base forfunding• Expand our customer base
• Expand our global business• Create new businesses

Group’s initiatives

Promotion of decarbonizedsociety and circular economy• Response to climate change• Reinforcement and creation ofservices for a circular economy

Promotion of establishment ofsocial and ICT infrastructure• Establishment of social and ICT
infrastructure

Creation of new services andbusinesses to resolve social
issues

Revitalization of local communities andeconomies• Response to aging society•

Investment in human capital

Improvements to engagement
Ensuring diversity of HR
Realizing health management• HR and organization development toachieve sustainable growth• Workstyle reforms utilizing technology

Pursuit of corporate governancethat supports improved
corporate value• Respect for human rights• Improved effectiveness of corporate
governance• Thorough compliance• Enhancement of risk management••

2. Medium-term Plan 2025

1. Review of Medium-term Plan 2020 (1/2)
1 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
income targets.

➢An increase in assets with higher profitability and investment business initiatives contributed to revenueand profit.

➢External credit ratings improved due to higher profitability and other factors. Our R&I rating wasimproved 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 andpursuing initiatives with high added value.

2 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 insteadily 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
operation and fund businesses, but this area has yet to generate substantial amounts of revenue andprofit.

➢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 andsell their products) and optimizing the value chain.

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

11© NEC Capital Solutions Limited 2023

1. Review of Medium-term Plan 2020 (2/2)
3 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 a service” type offerings are promoted.

➢Efforts were made to launch a new service model with vendors and create new services, but this is still awork in progress.

➢

Reinforcement, including of the organization, is necessary to create and establish new services unique tothe company.

4 Reinforcement of initiatives to improve 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 enterprisecategory)➢Acquired Eruboshi Accreditation (third rank)➢

Accelerated activities aimed at improving work motivation and continued to reinforce improvements toengagement.

5 Reinforcement of sustainability initiatives➢

Issuance of Company’s first sustainability bond.

➢Sustainability Committee was established and PDCA aligned with the TCFD was begun.

➢12Became a supporter of TCFD recommendations.
© NEC Capital Solutions Limited 2023

2. Medium-term Plan 2025 and roadmap for
realization of Group vision“Group vision 2023”

Be a solution company leading the next-generation circular economy
Fiscal 2023ｰ2025
New Medium-term PlanFiscal 2026ｰ2030

Next Medium-term Plan

Take up the challenge of reforms torealize next-generation circular society

DevelopCreateservices unique to theCompany13© NEC Capital Solutions Limited 2023

services uniqueto the Company

Establish
revenue fromservices unique tothe Company

3. Aim in Medium-term Plan 2025
➢ Implement CSV management and resolve issues for customers and society
through business➢ Create services unique to the Company to achieve a next-generation
circular economy
Cycle for customers, society, shareholders andCompany
Resolve customers’
management issues by
providing services

CustomersResolve social issues
through businessSociety

Create new services
Services that lead to cyclical use ofproducts

Subscription service for ICT products
Establishment of a development-type joint service modelwith vendors
Encourage rejuvenation of real estate

Services that lead to virtuous circle for
local economies and societies
Company
Execute businessstrategy to realize
vision14© NEC Capital Solutions Limited 2023

Shareholders

Expansion of PFI and PPP businesses
Support in building cyclical model for regional finance
Coalition with DX services for local governments offeredby local vendors

Improve corporatevalue by implementing
CSV management

Services that lead to virtuous circle forcorporate growthServices tailored to companies’ life cycle
Advisory on fund investment and M&As

4. Management objectives (financial and non-financial)➢ Improve profitability and accelerate pursuit of sustainability
management through realizing a next-generation circular economy➢ Set non-financial indicators such as measures to realize carbon neutrality◼ Financial indicators◼ Non-financial indicators(excerpts)

Medium-term Plan 2025
Targets
FY endingMarch 2024
Mediumterm PlanFY endingMarch 2026Mediumterm PlanNetincome¥6.4bn¥7.5bn

¥10bn

ROA*

0.7%

0.7%

0.9%

ROE

6%

7%

8%

15© NEC Capital Solutions Limited 2023

Human capital＊Consolidated net income / average balance for consolidated operating assets

Environmental and social issues

Results in
FY ended
March 2023

ObjectiveDescription

CO2 reductions toachieve carbon
neutrality

Forecast

TargetFY endingMarch 2023

FY endingMarch 2026

Scope 1+2: Rate ofdecline compared to
FY22 forecasts

156t-CO220％
reduction

Establishment of social
infrastructure

Cumulative contracts
over three-year periodfor government offices
and local governments¥122bn¥400bnPromotion of cyclicaluse following
expansion of ICT
business

Total number ofdisposals of products
whose lease has ended
over three-year period

200,000units

700,000units

Promotion of response
to climate change

Renewable energy
power generation
capacity (powergenerators owned)

43.5MW

100MW

Promotion of activities
contributing to society
with natural capital in
mind

School biotope
education
Total increase in
number of schools overthree-year period

3 schools

10schools

Improve employee
engagement

Employee engagement
score

21%

34%

Promotion of diversity

Ratio of female
managers

5.2%

10%

5. Medium-term Plan 2025 (Business Strategy 1/2)
Business Strategy 1 Expand service business and create new cyclical services◼ Expand services in renewable energy power generation, warehousing, IT
asset management, and tourism 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 2Accelerate 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 through system tie-ups withcustomers and vendors and strengthening of planning functions, expansion ofrental services, BPO and consulting services◼ Expand and refine fields for financial products in Japan and overseas
16• Expand financial product and investment targets, with a focus on
investments/loans and advisory services, and increase revenue and profit© NEC Capital Solutions Limited 2023

5. Medium-term Plan 2025 (Business Strategy 2/2)
Business strategy 3

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 foundation◼ Strengthen foundation for sales operations based on digitalization of operatingprocess and use of digital information◼ Launch core system as DX foundation and promote DX activities◼ Create organization, and introduce HR management system aligned withmanagement strategies, and create corporate culture conducive to ongoingchallenges and innovation◼ Improve effectiveness of corporate governance◼ Implement measures to achieve carbon neutrality (bring Scope 1 + 2 on aconsolidated basis effectively to zero by FY2040)

17© NEC Capital Solutions Limited 2023

The presentation materials are solely for the purpose of providing corporate information of NEC
Capital Solutions Limited and not for soliciting purchase, sale, or investment in securities issued by
the Company. We ask for the discretion of investors in making investment decisions.
The presentation materials contain forward-looking statements pertaining to the Company’s plans,
strategies and financial targets, which are created based on currently available assumptions, data, ormethods and contain a certain level of risk or uncertain factors.
Investors are advised not to place undue reliance on the forward-looking statements as they onlyreflect the Company’s analysis and expectations. A number of important factors that could cause
actual results to differ materially from such statements include (i) change in general economic
conditions and laws/regulations in the Company’s market, (ii) potential legal liabilities relating to theCompany’s business and operations, (iii) fluctuating demand for and competitive pricing pressure on
the Company’s services, (iv) deterioration of the global economic and financial environment, (v)downturn of domestic and international stock markets, and so forth. Risks and uncertainties also
include any future events with material unforeseen impacts.
Forward-looking statements contain the most updated information as of the date of compilation.

New risks and uncertainties constantly arise, and it is impossible for the Company to predict suchevents or how they may affect the Company.

18© NEC Capital Solutions Limited 2023