ESG Initiatives in NEC's Purpose-Driven Management

March 29, 2023

Osamu Fujikawa

Executive Vice President and CFO,

Member of the Board (Representative Director), NEC Corporation

© NEC Corporation 2023

Strategy

EBITDA Growth Rate Annual Average: 9%

NEC's Growth Model

"Maximizing long-term profit" and "Optimizing short-term profit"

Non-financial measurement methodologies to underpin sustainable growth

3 © NEC Corporation 2023

Culture

Engagement Score: 50%

Transformation of people and culture Establishment of business infrastructure

Creating shared vision for a brighter future with

customers

External evaluations from an ESG perspective

Continued inclusion in major ESG indices

Dow Jones

Sustainability indicies FTSE4Good Index SeriesCDP (World, Asia Pacific)

*As of March 2023

4 © NEC Corporation 2023

Overview of ESG initiatives

Role of growth businesses and non-financial base in enhancing corporate value

Opportunities

and growth

Corporate

Free cash flows

=

value

Growth

Capital costs

rate

Risk reduction

5 © NEC Corporation 2023

Growth businesses in the Mid-term Management Plan 2025

DG/DF

Global

Core DX

Future growth businesses

5G

Healthcare & Life-related businesses

Businesses related to Carbon Neutrality

Note: DG = digital government DF = digital finance

Non-financial measurement methodologies

to underpin sustainable growth for the company and society

E Environmental action with a particular focus on climate change (decarbonization)

S

Security to maximize ICT possibilities

Provision and utilization of AI with respect for human rights

as the highest priority (AI and Human Rights)

Diverse human resource development and cultural

transformation

G

Corporate governance

Supply chain sustainability

Compliance

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Disclaimer

NEC Corporation published this content on 21 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2023 07:26:03 UTC.