Strengthening the Management Foundation under the Medium-Term Management Plan “Innovation 2023”

「Under Trust & Challenge 2029, the company is accelerating its efforts to enhance corporate value along three pillars: transforming into a professional services company, enhancing corporate value through a virtuous cycle of growth and returns, and shifting to a talent portfolio that accelerates value creation, while further expanding the circle of trust that has made it the choice of customers and partners.」

「Accelerated investment in human capital」

「We aim to further enhance corporate value by making the shift of resources to growth areas the central focus for strengthening our earnings capacity, while pursuing integrated initiatives including management focused on the cost of capital and strengthening human capital.」

「To enhance the performance and engagement of the human resources that drive the growth of our Group, we developed talent aligned with our business strategy, fostered a culture in which diverse employees can take on challenges and play active roles, and improved compensation and other employment conditions, including base pay increases.」

「Selling, general and administrative expenses increased because of higher investment in human capital, including personnel training, and costs associated with upgrading internal systems. However, the effects of substantially higher revenue and improved cost ratios resulted in record-high profit for the nine-month consolidated cumulative period.」

「In pursuit of our Group’s foremost theme of enhancing corporate value, we are advancing integrated initiatives across business, financial and non-financial aspects, including management focused on the cost of capital and strengthening human capital.」

「Against this backdrop, our Group is implementing the medium-term management plan Innovation 2023, which ends in the current fiscal year, with the aim of becoming an Innovation Service Provider that enables customers to respond to digital transformation and strengthen their competitiveness. To achieve sustainable growth and enhance corporate value, we are working to transform our business structure and strengthen our management base in order to capture rising demand for digital transformation.」

「The progress during the current fiscal year, the second year of the plan, is as follows. In the information network solutions services business, we announced a new service framework to enable customers to achieve DX quickly. In the electronic devices business, we spun off the business from the Company to accelerate management decision-making and clarify management responsibility for the business. In addition, as part of efforts to strengthen the management foundation, we decided to adopt a management structure in which the Board of Directors focuses on its oversight function and at least 1/3 of its members are independent outside directors.」

「Viewing the COVID-19 pandemic as a turning point, we continue to pursue initiatives that contribute to sustainable growth and enhanced corporate value, including transformation of the business structure and strengthening of the management base.」

「Viewing the COVID-19 pandemic as a turning point, we continue to pursue initiatives that contribute to sustainable growth and enhanced corporate value, including transformation of the business structure and strengthening of the management base.」

「Viewing the COVID-19 pandemic as a turning point, we continue to pursue initiatives that contribute to sustainable growth and enhanced corporate value, including transformation of the business structure and strengthening of the management base.」

「③ Strengthening the management foundation: We consider it important for employees, who may be described as the greatest asset in management activities, to have a company where they can work comfortably and find their work appealing. We will therefore work to establish personnel systems that improve employee motivation and create a comfortable working environment. We will also improve efficiency by reviewing business processes and establish a group governance structure that contributes to raising the capabilities of the Group as a whole, thereby building an even stronger management foundation. In addition, to enhance corporate value, we will continue developing and recruiting DX talent, while considering M&A, capital and business alliances, and collaboration.」