As we begin 2025, I want to extend a warm welcome to the new year.

I sincerely hope that 2025 will be a safe and prosperous year for everyone.

As we head into the new year, the world today is facing many challenges. Conflicts where the end seems distant or impossible, regime changes, the rise of populism and nationalism, the crisis over global warming, threats from our neighbors and political instability globally all cause concern, uncertainty and mistrust.

Reflecting specifically on the technology industry to which the NEC Group belongs, the progress of generative AI has been remarkable, and it is having a major impact on how we work and live. However, no one really knows yet what kind of changes it will bring to society.

In today's world, when it is not possible to predict what will happen tomorrow, it is becoming increasingly difficult to determine where to place our trust and how to choose the right partners and solutions. Sometimes, there may even seem to be no agreeable choices.

Fortunately, Japan is associated with reliability and trust, and as a business that was first established 125 years ago in Japan, the NEC Group has been entrusted with significant responsibilities by governmental bodies, municipalities, and private clients globally. Given the current global situation, and in an era where technology is constantly driving change, we believe that as a reliable partner and company that produces cutting-edge technologies, we have a responsibility to safeguard the well-being of society.

Our diversified business portfolio with two segments at its core gives us the foundation to be a reliable partner for society.

First, in the Social Infrastructure business, the NEC Group provides the digital advancements that protect backbone infrastructure that is essential for economic security, including telecommunication networks, submarine cables, and aerospace and defense-related businesses. We also contribute to day-to-day safety in the security domain, including cyber security, where threats are rapidly increasing. Our record of accomplishments domestically in Japan is reflected in the trust we have earned globally, and organizations around the world are increasingly interested in the solutions provided by the NEC Group.

Next, in the IT Services business, which promotes digital transformation (DX) for public agencies and local governments, as well as private companies in a wide range of industries and sectors, we are expanding the value we provide based on our value creation model, "NEC BluStellar," which helps our customers succeed in their transformation initiatives. We clarify the customer's goals, identify issues, define processes to resolve them, align the organization and human resources to the desired direction, and provide comprehensive solutions from implementation to maintenance and operation. Moreover, NEC BluStellar is enriched by the advanced AI, security technology, and related know-how cultivated in the Social Infrastructure business—as well as the distinct strengths of the entire NEC Group.

The NEC Group's experience and track record of implementing DX for public agencies and large enterprises, including NEC BluStellar, will also be useful in promoting DX across Japan, including local governments and small and medium-sized enterprises that are responsible for the local economy. One of the strengths of the NEC Group is its ability to provide end-to-end services, such as network maintenance and construction work. By proceeding with the reorganization and integration of our business base, including NEC Networks & System Integration Corporation and NEC Nexsolutions, Ltd., we are able to put in place a structure that will empower us to provide value that exceeds the expectations of customers.

At the root of such value provision is our ability to research and develop globally competitive cutting-edge technologies, such as AI and security solutions, and our "client zero" execution capability, which accelerates data-driven management while accumulating knowledge, including that from services of global partners, by using our own company as a test bed. Moving ahead, the NEC Group will continue to leverage advanced technologies and enhance its expertise in order to become a leading global player for DX-related technologies and services.

Furthermore, we will continually develop NEC BluStellar to lead the DX of our customers, and the DX of society as a whole. These two commitments will be important themes going forward. The purpose put forth by the NEC Group is to "create the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential." With this aim in mind, we are keenly aware of the role the NEC Group must play as we accelerate the delivery of social value.

The ongoing 2025 Mid-term Management Plan will soon reach its final year. Our relentless efforts to reform have led to significant improvements in our business performance and evaluations from society. We strongly believe we are moving in the right direction and we look forward to delivering on our market promises in fiscal 2025.

My confidence in our position is thanks to each and every NEC Group employee who embraces changes and challenge even themselves to change. Through my continued dialogue with global group employees, I feel a fundamental understanding of our Purpose is gradually taking root. In order to continue maximizing the value of the NEC Group, I will continue to share my vision with the executives and employees of each group company and manage the group in a way that allows each employee to utilize their individuality and truly fulfill their respective roles.

Our journey of change will not come to an end. Our principle is to continue changing at all times. Setting the direction for each NEC Group employee from a medium-to-long-term perspective, we will press forward even further. Learning from the successes and challenges of our transformations so far, we are preparing for future growth in 2025 and beyond. This is how we will become a more trusted and chosen partner worldwide.

January 6, 2025 
Takayuki Morita 
President and CEO
NEC Corporation

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