RAKUS SUSTAINABILITY REPORT 2022

RAKUS SUSTAINABILITY REPORT 2022

01

Contents

About Us

P02 Long-Term Vision

MISSION / VALUE

P03 Leadership Principles

P04 Message from the President

P07 Company History That Has Led to Value Creation

Value Creation

P09 Growth Trajectory

P10 Business Model and Performance of Cloud Business

P11 Features and Growth Strategy of Cloud Business

P12 Services:

Raku Raku Seisan / Raku Raku Meisai

P13 Services:

Raku Raku Hambai / Mail Dealer

P14 Services:

Hai Hai Mail / Services Being Nurtured to Contribute to the Growth of the Next Generation

P15 Business Model and Performance of IT Outsourcing Business

P16 Management Resources That Underpin Value Creation and Growth

P17 Medium-Term Management Targets

ESG

P18 Environmental Data

P19 Social Contribution in Businesses

P20 Organizational Structure and Governance Policy

P21 Policy on Remuneration for Officers /

Attendance at Meetings of the Board of Directors and the Audit & Supervisory Board

P22 Directors/Audit & Supervisory Board Members

Data Section

P24 Consolidated Statements of Income

P25 Consolidated Balance Sheets

P26 Consolidated Statements of Cash Flows

P27 Non-financial Data

P28 Changes in Capital Structure and Dividends

Company Information

P29 Company Outline & Group Structure

Editorial Policy

This report contains the business, financial, and ESG information of RAKUS, and has been issued for the purpose of improving corporate value by engaging in dialogue with shareholders, investors, and other stakeholders about its contents. Scope 2 Standard has been applied for CO2 emissions from energy consumption in the report because in many cases the data centers used mainly by our Cloud business do not disclose the environmental impacts and amount of power consumption.

Website https://www.rakus.co.jp/en/

IR Information https://www.rakus.co.jp/en/irnews/

[Contact]

ir@rakus.co.jp

Scope of Report

This report covers RAKUS Co., Ltd. and its consolidated subsidiaries within and outside Japan as well as some other affiliates. For environmental data, please refer to the respective notes. The report applies to the period from April 2021 to March 2022.

* It also includes some information outside that period.

Performance Forecasts

Forecasts of performance contained in this report are determined based on information available at the time. Actual results may differ due to a variety of factors.

About Us

Long-Term Vision

MISSION

We constantly help companies

grow their business by providing IT services.

RAKUS has promoted digitalization of SMEs which have faced challenges of budget and digital literacy. But digitalization is essential for not only SMEs but also larger companies which use costly and inefficient legacy systems. When all of the 50 million workers in Japan benefit from the latest IT services, Japan will truly be a prosperous nation. We are determined to contribute to business growth of companies and well-being of their workers by helping them promote digital transformation through our IT services.

VALUE

VALUE 01 Fulfillment

We fulfill and go beyond our customers'

expectations.

VALUE 02 Nurture

We nurture human resources who have the

capability to yield tangible results.

VALUE 03 Improvement

We improve our activities day and night.

VALUE 04 Integrity

We have integrity with our stakeholders.

VALUE 05 Evolution

RAKUS SUSTAINABILITY REPORT 2022

02

Become a Company Representing Japan

We capture signs of potential changes

and evolve proactively.

About Us

RAKUS SUSTAINABILITY REPORT 2022

03

Act to become 'a company representing Japan'

Our Leadership Principles are a code of conduct, highlighting the mindset that management of RAKUS should embrace. Leaders correctly understand these principles, which enables them to judge and act with a well-balanced

approach from multiple perspectives. Each principle may appear obvious, but when put together create an unrivalled company. This gives us confidence that RAKUS will become 'a company representing Japan' in future.

Leadership

Principles

Take ownership

Leaders consider themselves to be owners of the company. That is why they always act with a sense of ownership. They prioritize matters that contribute to the company's long-term sustained growth. A leader will speak out forcefully if feeling that his or her boss or an executive is making a decision that will negatively impact the company's growth.

Aim for overall optimization

Leaders always think and act according to what is important for the company's overall growth. They focus beyond the interests of their own department or team. They actively collect information from other departments to optimize activities.

Treat people with sincerity

Leaders listen to what each and every individual has to say with sincerity. They consider things from the other party's perspective and not just from their own or the company's perspective. Leaders do their utmost to convince the other party and bring about a desirable outcome for both parties.

Continue learning and growing

Leaders have an insatiable desire to acquire new knowledge and experience necessary to achieve their own goals. They constantly update their knowledge through exposure to the latest information. Leaders actively learn from competitors and prime companies in other industries and utilize this for their own company's growth.

Start small and grow big

Leaders actively try new things. There is no knowing if new initiatives will actually work. So, leaders start test cases on a small scale and with a small budget to verify their hypotheses. They gradually increase the scale and budget while making choices and ultimately grow the business.

Consider the cost-benefit performance

Leaders are authorized to execute budgets. All budgets need to be verified for their cost-benefit performance. When leaders execute budgets, they demonstrate restraint because they are spending the company's money.

Focus on results

Leaders are goal-oriented and do their very best to achieve their goals. They take a firm stance, even when facing difficulties, and do not compromise. Anticipating the unexpected, leaders always have an alternative plan.

Communicate ideas with words

Leaders can certainly communicate their own ideas with words. One's ideas can only be communicated with words. If not well understood, leaders will repeatedly communicate their ideas in a courteous way, until they make themselves understood.

Tolerate failure

Leaders tolerate failures based on hypothesis put forward by people around them. Even if having the knowledge sometimes things cannot be understood without actual experience. Leaders consider failure to be a learning opportunity, and encourage others to learn from their failures.

Accept others' views

Leaders sincerely accept others' views even when different from their own thinking. Leaders have a healthy skepticism about themselves and objectively consider what is genuinely correct. Leaders confess their own mistakes and constantly strive to move forward in a better direction.

Do what needs to be done

Leaders always think about what should be done. Leaders implement measures to solve issues for customers and the organization and not what they would like to do.

About Us

Message from the President

Takanori Nakamura President and Representative Director

RAKUS SUSTAINABILITY REPORT 2022

04

Q. You published a sustainability report last year. What is the status of your ESG initiatives and information disclosure?

Publishing our first Sustainability Report last year provided us opportunities for discussion with many investors. Those discussions included numerous questions about materiality. We have been progressing discussions internally among management with a view to identifying materiality issues and publishing such information as soon as possible.

At our 22nd Annual General Meeting of Shareholders, Reika Saito, a lawyer, joined our board as an Outside Director. In addition to being a lawyer, because Ms. Saito also has experience overseas, she brings unique strengths to the board in terms of legal and overseas business experience. Going forward, we would like to consider expanding our business overseas, and in that event we expect Ms. Saito will bring her knowledge and experience to bear for us. From a governance perspective, Outside Directors account for 50% of our Board of Directors, so we believe we have strengthened our governance.

We are also progressing our efforts when it comes to investing in our people. We have been rewarding the efforts of employees who have been supporting the growth of the business by raising their salaries, continuously improving the working environment, and establishing a framework for employee wellbeing including the introduction of sick leave. We have also set up an enablement organization and, in addition to on-the-job training carried out in each business unit, we have started creating a framework to support training and

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Rakus Co. Ltd. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2022 15:42:05 UTC.