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Message from the President

June 17, 2024

Gross profit, operating profit, and net profit attributable to owners of parent reached record highs.
We contribute to our customers' business growth in a wide range of areas including cloud, security, and generative AI.

Thank you very much for your continued support.

Our company has adopted the slogan "Growing Big," and since fiscal 2013 has formulated a mid-term management plan, with the entire company working together to achieve the plan's goals. In the current fiscal year, the second year of the fourth mid-term management plan, sales revenue decreased compared to the previous fiscal year, but gross profit, operating profit, and net profit attributable to owners of the parent reached record highs. In particular, in the Enterprise domain, which is our focus area, sales revenue from Managed Security Services (MSS) grew 1.5 times compared to the previous fiscal year, and in the Public Sector domain, we have received new orders for projects from the Ministry of Land, Infrastructure, Transport and Tourism and Digital Agency, and are making steady progress.

Japanese companies have a strong demand for digitalization, and in particular, there is still a high level of interest in the use of generative AI in business. In response to this trend, we have been conducting early technical verification of generative AI and have begun providing generative AI services that utilize Microsoft products and technical know-how in security. We will continue to hone our technology in order to meet the demand related to generative AI.

In terms of our sustainability efforts, we were selected by CDP, an international non-profit organization, for a leadership level of "A-" in the "Climate Change Questionnaire 2023" at the first time. We were highly evaluated for our use of low-carbon products to reduce greenhouse gas emissions, our introduction of scenario analysis, risk management, and more.

As stated in the "Announcement of Opinion in Support of the Tender Offer by SoftBank Corp. for Our Shares and Recommendation to Tender" dated April 25, 2024, the Company has resolved to express an opinion in support of the tender offer and to recommend that its shareholders tender their shares in the tender offer, and in light of the above, has resolved not to pay any dividends for the fiscal year ending March 31, 2025.

The above was made on the assumption that the Company intends to make the Company a wholly owned subsidiary and that the Company's shares will be delisted. Going forward, as a member of SoftBank Corp. group, the Company will continue to leverage synergies with its parent company and work toward the realization of a prosperous information society.