Human Resources Strategy:Detailed Report

ITOCHU Techno-Solutions Corporation
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Fiscal Year Ended March 31, 2022	2022
Integrated Report
［Human Resources Strategy: Detailed Report］

CTC Integrated Report 2022_Human resources edition

Contents

03 Message from the President

04 CTC Group Philosophy, Sustainability & Medium-Term Management Plan

06 Human Resources Strategy

Human Resources Management & General Affairs Division General Manager Interview

10 Initiatives to Increase the Value of Human Capital to Improve Corporate Value

12 Fiscal 2021 Human Capital Initiative Highlights

14 Case Study - Institute of Open Innovation Research "MIRAI,"Business Innovation & Digital Transformation Group

Creation of Innovation

16 Technology and Unique Skillset

21 Diversity Equity & Inclusion (DE&I)

25 Diverse, Flexible Workplace Environment

Improvement of Productivity

1. Engagement
2. Health and Well-Being

32 Human Resources-Related Measures in Medium-Term Management Plan

34 Human Resources-Related Data

Respecting Human Rights & Harassment Prevention

"Creation of a work environment with respect for human rights" is specified in the CTC Group Code of Conduct. The creation of fulfilling work environments with respect for human rights, character, individuality, and diversity underlies every activity taking place at CTC.

In July 2015, CTC became a participant in the United Nations Global Compact (UNGC), an initiative to achieve sustainable growth in the international community. In accordance with the UNGC's 10 principles covering topics such as human rights, labor, the environment, and anti- corruption, as well as the CTC Group Code of Conduct, we strive to create organizations where each and every employee is able to conduct themselves with a strong sense of ethics and responsibility from a global perspective and fulfill CTC's social responsibility through the work that they do each day.

To prevent harassment, we organize awareness-raising activities including compliance training for all employees, as well as clearly stating the prohibition of harassment in our employment regulations and formulating a harassment prevention guide. Our Human Resources Responsible Department has also established several in-house consultation services and set up a "help line" as an internal whistle-blowing system. The help line has both internal and external (lawyers) reporting routes, and in either case the privacy of the person providing the report as well as anyone related to the report is thoroughly protected while the reported information is carefully managed. We make it clear that those who use the help line shall not be subjected to disadvantageous treatment for having done so.

We will strive to ensure that human rights are respected at CTC without tolerating harassment in any form, as we foster an appealing, liberated organizational culture conducive to creativity.

Message from the President

Helping to create a prosperous society by maximizing the power of individuals who have inherited a culture of taking on new challenges

On April 1, 2022, we celebrated the 50th anniversary of our founding. Thanks to the efforts of many former employees and the support from our customers and business partners, I would like to express my most sincere gratitude for the fact that we have come this far. This is of course thanks to the tireless, daily work and ingenuity of our employees, our Company's greatest asset, who have inherited a culture of taking on ever more advanced challenges since our founding.

It is from this history that the secret sauce, which has been handed down as a strength of the CTC Group, has been created. This secret sauce is the very skillset that has been handed down with the addition of our technologies (capabilities) cultivated in an environment with experience and over time, spiced up with our inventiveness in the way we combine and propose these technologies. This is something that cannot simply be recreated overnight. On the other hand, if we fail to keep on adding to the sauce, always upgrading it for the next generation, then there may well not be any left for the future. As priorities and values diversify, the CTC Group is passing on this secret sauce as a way to enhance and consolidate our technology and skillsets, stepping up the creation of an environment that respects individuals to unlock the power of the individual.

At the CTC Group head office that was relocated and integrated in June 2021, it has become easier to exchange ideas between groups with the more widespread use of Activity Based Working (ABW), which allows free choice of location according to job phase. In April, we extended the range of options surrounding work and employment styles, and in 2023, we plan to introduce a personnel system that allows every employee to maximize their individual strengths to play a more active role. Our strength and flexibility to constantly undertake new things and keep on changing has been created through joint efforts with all our many different associates, from our employees, to vendors and business partners. We will continue to actively invest in human resources, including in initiatives for diversity equity & inclusion (DE&I) that increases our pool of associates and benefits from stronger diversity, and in wellbeing management for the health and happiness of our employees.

Based on our ultimate mission as a company, which is to "leverage IT's potential to change the future for the Global Good," we will continue to take on new challenges without delay, striving to sustainably improve our corporate value.

Ichiro Tsuge

President & CEO

03

CTC Group

Philosophy, Sustainability &

Medium-Term Management Plan

CTC Group Philosophy

The CTC Group Philosophy consists of four elements: the slogan, mission, values and our action guidelines. The slogan expresses our determination to society to fulfill our mission, and the mission expresses the goal we want to achieve with our corporate activities by how we contribute to the world through our core business. Values is an important keyword we need to be conscious of in order to fulfill our mission, while our action guidelines are words that serve as the basis for each employee to make decisions and take action.

Slogan

Challenging Tomorrow's Changes

Mission

Leveraging IT's potential to change the future for the Global Good.

Sustainability

In fulfilling the CTC Group's mission, aiming to realize a sustainable society, CTC has established its Sustainability Policy describing the initiatives unique to the Group and the values we hold dear.

In line with this Sustainability Policy, we have identified key material topics based on three pillars for further growth and to fulfill our social responsibilities as a company.

Sustainability Policy

Technology and Waza (Unique Skillset) for

the Future

The CTC Group will fulfill its mission,"Leveraging IT's

potential to change the future for the Global Good,"and aim

to achieve a sustainable society.

The Group will undertake the creation of a society in which many people can benefit from digital technology and waza (a unique skillset), which will be used to take advantage of them.

What is more, by expanding the possibilities of IT, the Group will contribute to the resolution of challenges found in the global environment and society.

Materiality (Material Topics)

Solve social issues through IT

●Endless pursuit of advanced technology

Values

Challenge for Change

Challenge for Value

Challenge for the Future

Action Guidelines

Are you determined? Are you constantly trying new things without ever giving up?

Are you creative? Do you generate value that exceeds customers'expectations?

Are you free thinking? Do you strive to map out a brighter future?

●Joint business creation with various partners ●Providing safe and reliable IT services

Develop human resources to carry the future

●Developing diverse professionals

●Creating corporate culture to respect and bring out the best in each other

●Contributing toward development of human resources who create the future

Implement responsible business activities

●Better, effective governance

●Contributing to action against climate change ●Responsible actions by each individual

CTC Integrated Report 2022_Human resources edition 04

Medium-Term Management Plan (Fiscal 2021-2023)

CTC Group Philosophy,

The CTC Group has formulated a medium-term management plan (for three years from April 2021 to March 2024) titled"Beyond the Horizons: To the Future Ahead"with the aim of achieving the mission of the CTC Group Philosophy of"Leveraging IT's potential to change the future for the Global Good." We have established three priority scenarios based on three basic policies. The first is Accelerate which focuses on digital transformation and expanding

business co-creation. The second is Expand which aims to expand 5G and cloud business, and the third is Upgrade which seeks to strengthen human resource development and the management base.

While continuing our past activities of creating added value for our customers and providing the best IT technologies, we are moving forward into the field of creating new prosperity for society by designing together, the very business of our customers.

Sustainability & Medium-Term Management

Beyond the Horizons: To the Future Ahead

Accelerate Create new prosperity	Priority scenarios
●The everyday DX for customers'tasks,
	customers'businesses, and consumers

Accelerate new initiatives that support customers'innovation

Expand Spread current prosperity

Further exploration and market expansion in our areas of strength

Upgrade Increase feasibilities

●Expand community development and joint business creation

●Provide high-value added services and state- of-the-art technologies

Priority scenarios

●Expand our 5G business, based on"creation" ●Strengthen our XaaS business

●Deploy domestic business models globally

Priority scenarios

●Greater overall strength combining growth of individuals with right people in right places

Future-minded personal transformation	●Transform our business infrastructure to adapt
and practical application	to changing environments
●Harmonious co-existence with diverse
	stakeholders

05 CTC Integrated Report 2022_Human resources edition