I. SummaryMedium-te『 m mana gement plan pro g『 ess updateIn August 2019, we announced in "Medium-Term Management Plan COMMITSOOO" that we aim to be a "value co-creationcompany solving social issues with clients through business". In the plan. we set high growth targets of 100 billion yen inRevenue and 1O billion yen in operating profit for the year ending」une 2025; and 500 billion yen in Revenue and 50 billionyen in ope「ating profit for the year ending June 2030.
Based on these growth targets, we believe that the value of our group is to enrich society and to make people's lives betteras a value co-creation platform that co-creates solutions to social issues with stakeholders such as pa「tner companies, gov­ernment agencies, and local community, and to provide various resource bases, including technological elements to promoteand support the realization of such society and lives while redefining society and lifestyles through digital transformation(DX),.
Since the announcement of the medium-term management plan. our enti「e group has been vigorously working to create bus1nesses to solve various social issues. Currently. we are at the stage where some of the seeds we have sown a「e beginning tosprout into businesses that could become the core businesses of our group in the future.
We will focus on growing these buds while continuing to develop businesses and make investments as sowing new seeds.
Currently. the progress is remarkable. especially in the area of public-private co-creation. (Reference: https://socialx.inc/)We are also making steady progress in a wide range of fields, including a collaboration with a major pharmaceutical compa­n y a n d a m a j o r n o n - 1 i f e i n s u r a n c e c o m p a n y i n t h e fi e Id o f h e a It h c a r e. ( R e f e r e n c e : h t t p s : I I s c a Ia g r p . jp/news/2022/10-sma「thealthcare/)Our entire group will strive to achieve COMMITSOOO by consistently making these efforts bear fruit. which will lead to futurefinancial impact.

▼ Towa『d a wo 『ld whe 『e t he value s p『i n g s u p

Redefining society and life = sustainable t『ueDX

マFunctioning as a value co-c『eation platform

マSupporting the realization ofan enriched society and better livesThe medium-term management plan COMMIT5000 follow-up report02I.Summary

Pa t h t o ach i ev i ng ou『goalsThe following chart shows the path to achieving COMMITSOOO, the medium-term management plan.
It is difficult to directlyestimate the size of the market for the social issues we are addressing since in manycases we are thepioneer and there is no precedent for our work. Therefore. we have presented not only directly related markets, but alsoindirectly「elated areas for refe「ence to show the path to achieving COMMITSOOO. Based on ou「 group's major values (threecapabilities). we have been highlyevaluated for our experience in solving new and challenging social issues bycollaboratingwith partner companies and human resources. We are engaged in an increasing number of pro」ects from the ideation stage.
Although the p「ocesses will take time. the path toward a more enriched societyand a better life is becoming cleare「.We willdisclose our progress in due course and endeavor to deepen investors' understanding of our value-creating capabilities.
In the field of public-private co-creation, we are highly trusted by both the public and private sectors, and are involved inmany projects as disclosed in our IR. We believe that this increase in trust will lead to a lower cost of capital (higher PER)from the perspective of financial stabilityand contribution to society. and thus contribute to shareholder value.

Value for Ind

ividuals

Making people'slives better

Enriching society

Scala's Foundation

Solving issues through DXusing IT/Al/loT

Investments forsolving issues｀▼Scale of areas in which we are involved from the ideation stage※1Local governmentbudget balance

90 6

Real estate tech ma『ket1 2■tri Ilion yenPet business1 7trillion yen■■

Livestock shipment value

34■

trillion yen ※ 2※3

Spo『ts indust『y9 1trillion yen ※ 4※5Digital health

1 0trillion yen ※ 6trillion yen ※ 1■■: Ministry of Internal Affairs and Communications: The total amount of revenue and expenditure in the FY2022 local government finance plan is 90.6 trillionyen fO「 ordinary revenues and expenditureshttps://www.soumu.go.jp/iken/zaisei.html※ 2 : Ministry of Agriculture, Forestry and Fisheries: Livestock shipments in 2021 were 3.4 trillion yen.

https://www.maff.go.Jp/ J/chikusan/kikaku/lin/l_hosin/attach/pdf/index- 1 38.pdf※ 3 : Yano Research Institute Ltd.: Real estate tech market estimate is 1.2 trillion yen in FY2025

https://www.yano.eo.jp/press-release/show/press_id/2770※4 :」apan Sports Agency: Sports production value for 20 1 9 is 9. 1 trillion yenhttps://www.dbj.jp/upload/investigate/docs/1a672 Oc252 Ob97bca3f432880906ae0e.pd!
※ 5 : Yano Research Institute Ltd.: Estimated value for 202 1

is 1 .7 trillion yen based on related research.
https://www.yano.co.jp/press-release/show/press_id/3053※ 6 : Nikkei Business Publications, Inc.: Estimated value is 1.0 trillion yen in "Digital Health Future Strategy"

https://info.nikkeibp.co.jp/nxt/campaign/b/284240

The medium-term management plan COMMIT5000 follow-up report05