Kanematsu : posted details of the medium-term management plan, "Integration 1.0.“

Kanematsu's Values

Founding Purpose

"Let us sow and nurture the seeds of global prosperity"

• Fusajiro Kanematsu (1889)

Since our founding, Kanematsu has prioritized the pursuit of economic growth along with human prosperity through the creation of social values that emphasize fairness and public interest as fundamental values.

We believe that striking a balance between hard work and passion in our business endeavors leads to profitability. The Kanematsu Group conducts business as a unified entity while adhering to organizational rules with sincerity, fostering a spirit of dedication to the company and respect for interpersonal relationships.

With our 100% non-resources business portfolio built up over the years as a foundation, our mission is to pursue sustainable social, environmental, and economic values concurrently.

As a trading company building a sustainable society for both the present and the future, we strive to be a preferred choice for our customers and business partners by swiftly adapting to changes and innovating new business ventures.

Guided by these corporate principles, we will continue to actively pursue the creation of business, aiming for sustainable growth and returns, while fulfilling our responsibility to society and contributing to a better future.

Table of Contents

1. Previous Medium-Term Vision, "future 135"

• Achievement of Targets
• Key Initiatives
• Acquiring KEL and Kanematsu Sustech
• Acceleration of Innovation Investment

1. Kanematsu's Envisioned Goal

• Business Environment and Kanematsu's Mission
• Kanematsu After the Medium-Term Management Plan

1. Basic Policies of the integration 1.0

• Overview of the Six Basic Policies
• Structure of the integration 1.0
• Key Initiative 1: Promotion of Groupwide Management
• Key Initiative 2: Expansion of Value Proposition
• • Three Key Areas
  • DX/ICT Solutions
  • GX
  • Innovation

• Key Initiative 3: Strengthening Organizational Capabilities22-23

1. • Key Initiative 4: Strengthening Human Capital
2. - Alignment of Strategies24
3. - The Committee25
4. • Key Initiative 5: Enhancement of Management Functions26

4. Maximizing Shareholder Value

10 • Reduce Cost of Capital and Improve Expected Earnings Growth

• Rate29

• Communication with Shareholders and Investors30

1）Net profit = Profit attributable to owners of the parent

2）Target after revision of the medium-term management plan in May 2021

3 Total return ratio

TargetForecast

30% - 35%32.0%

Credit to Sierra Space

Developing new business models and transforming existing businesses through digital technology

2) Acceleration of innovation investment

Implemented innovation investment system to incentivize the development of a future-oriented portfolio

Improved employee engagement through relocation of the headquarters

Kanematsu University:

A program for human capital development

Introduced segment-level ROIC

Performance-linked stock compensation for directors

Abundant industry knowledge and strong competitiveness in the ICT solutions business

Implement DX initiatives throughout the supply chain to enhance value

Build a stable and sustainable supply chain and realize a decarbonized society

Prioritize sustainability and foster an environmentally-friendly society through business activities

• Allocate mediumDXto long-term management resources to the growing IT sector, focusing on meeting the demand for security measures, operational efficiency, and potential demand for supply chain DX.
• Strengthen and expand application domains that complement our robust infrastructure construction business and securing IT human resources through M&A.
• Promote business collaboration through personnel exchange and information sharing within the Group.
• Evolve into a trading company specializing in developing DX business models.

Optimal

allocation of management resources

Utilization of

M&A

Corporate

initiatives

• Invest in R&D GXto expand business areas and develop new technologies and construction methods.
• Implement medium to long-term investment and business reforms to bolster the non-residential sector.
• Strengthen and expand the customer base and R&D capabilities through M&A.
• Promote Groupwide GX and strengthen sustainability initiatives.

Space

Mobility

Materials

• A US-based company specializing in the design, development, and manufacture of aerospace equipment, with involvement in space exploration and commercial space transportation.
• Focusing on development of Dream Chaser®, a next-generation spaceplane, and a commercial space

• A British company that develops and operates landing infrastructure for the Advanced Air Mobility, as well as uses drones for a variety of business requirements.
• Engaging in Dubai's vertiport project, which involves establishing and operating vertiports.
• Operating drone services for logistics and surveillance purposes in multiple countries.
• An Australian environmental technology startup that develops proprietary enzyme technology capable of selectively breaking down plastic into its original monomer components.
• Aiming to utilize the technology to reduce plastic waste and contribute to the transition towards a circular economy.
• An emerging company specializing in the development and manufacture of Carbon Nanotubes (CNTs).
• CNTs are anticipated to be utilized in various industries such as aerospace, automotive, and electronics

for their remarkable physical and chemical properties.

 Expanding the application range of CNTs is expected to benefit industries pursuing a sustainable future.

• A Japanese biotechnology company engages in the development and production of Brewed Protein™ materials created through a microbial fermentation processes.
• The sustainable material Brewed Protein can be processed into diverse forms including textiles and films.

Through its long history as a trading company, Kanematsu has cultivated;

• An understanding of the supply chain
• The Group's intangible assets

For companies and society involved in the supply chain,

Kanematsu's mission is to make supply chains more efficient and sustainable.

• Labor shortage

Decline in the labor force due to the shrinking population, logistics and supply chain delays caused by the 2024 problem1), and rising labor costs and per capita labor burden.

• Expediting management

Need for adaptability and strong information processing capabilities in grasping rapid changes in customer needs and technological innovation as well as prompt decision-making to maintain competitiveness and capture business opportunities.

• Addressing sustainability

Movements towards decarbonized society, resource circulation within society and the economy, as well as commitment to corporate social responsibility.

• Age of VUCA2), with rapid changes and uncertainty.
• Issues confronted by companies operating within the supply chain.