Maximizing Long-Term Profit, Optimizing Short-Term Profit── .
I always keep this in mind and encourage all members of the NEC Group to be mindful of it as well. To contribute to society, it is essential to adopt a long-term perspective rather than merely pursuing immediate profits. This is because business is the long-term cycle of receiving compensation for the value created by solving various challenges and reinvesting that compensation to create new value.

This is precisely the core principle that connects both “corporate management” and “the realization of a sustainable society.”

The NEC Group has established the following as its Purpose: “Creating 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.”

You will have noticed that each element constituting this purpose relates to sustainability.

Everything we do is based on this purpose, and each and every one of our members embodies it. Together with our customers, partners, investors, and communities, we are moving forward toward a sustainable world by strongly promoting our business through a variety of advanced technologies.

“We are in a time of unprecedented change." Such expressions have been said on various occasions, both now and in the past. In other words, the world is in a constant state of change. The emphasis on sustainability, ESG (Environmental, Social, and Governance), and the SDGs (Sustainable Development Goals) will also change with the times.

As AI permeates society and we enter a period of dramatic change, often called the “Fourth Industrial Revolution,” we must reexamine the social challenges that need solving.

The top five global risks for the next two years, announced by the World Economic Forum in January 2025, include, "State-based armed conflict," "Extreme weather events," "Geoeconomic confrontation," "Misinformation and disinformation," and "Social polarization.” Digital technologies, including AI, underlie these global risks and will also be essential to their resolution. We recognize that NEC, as a tech company, has a responsibility to help resolve these issues.

One example of our approach to improving global security is our cybersecurity business. Continuing to protect the security of the public and private sectors in Japan will also bring peace of mind to the global community. In addition, our value creation model, NEC BluStellar, which is composed of advanced technologies, business models, human resources and organizations, enriches the scenarios that drive the digital transformation (DX) of our customers. We are confident that these scenarios, which include knowledge gained through our own business transformation, will be an effective way for all companies and organizations to avoid being left behind in the Fourth Industrial Revolution.

By actively utilizing Agentic AI, a newly developed autonomous AI, to visualize and analyze the relationship between business activities and the natural environment, NEC has produced the “TNFD (Task Force on Nature-related Financial Disclosure) Report.” This production is advancing rapidly by leveraging an environmental community with over 1,800 voluntary participants from various NEC Group divisions. It serves as an exemplary case of combining AI and human capabilities to enhance and streamline operations.

The benefits of digital technology should be shared fairly by all people and expand the options for a more affluent life. The NEC Group has been committed to the proper use of technology with its founding spirit of "Better Products, Better Service" and "Integrity," which places respect for human rights first. This position is also in line with the United Nations Global Compact, a global initiative signed by NEC in 2005 that advocates 10 principles in the four areas of human rights, labour, environment, and anti-corruption.

NEC will continue to work with all stakeholders to create social value and make steady progress toward realizing our Purpose. This is the most meaningful contribution we can make toward the realization of a sustainable world.