P.70 Digital AI Group

70 03. Performance & Data

Digital AI Group

Leveraging digital and AI technologies across all business frontlines to strengthen our Groupʼs competitiveness while building new value creation models and lead the transformation of society and industry.

Main relevant material issues

▍Quantitative information

800　600　400　200　0 15　10　5　0

FY2025 Investment｜Approx. ¥779.0 billion

Main investment areas

• SCSK became a wholly owned subsidiary;

Net One Systems joined our Group

Major asset replacement

• SCSK divested its stake in ARGO GRAPHICS

▍External Environment: Business Environment

Opportunities

• Increasing demand for business and operational transformation driven by digital and AI technologies
• Growing demand for AI infrastructure and enablement foundation
• Growing need for robust cybersecurity and AI governance frameworks

Risks

• Customers shifting to in-house development enabled by AI-powered automation

▍Internal Environment: Key Strengths

• Digital and AI business expertise,

business platform, and talent pool built up around SCSK

• Business frontlines, customer base, and industry expertise across our SBUs
• Company-wide digital/AI expertise accumulated through our Center of Excellence (CoE)

▍Business Strategy

• Growth driven by SCSKʼs evolution toward AI and offering-based business models, leveraging its existing competitive advantages and strengths
• Growth through the deployment of digital and AI technologies across all business frontlines of our group to build new value creation models and achieve growth
• Growth through new businesses creation enabled by collaboration between our Group and SCSK

▍Business Portfolio Overview

Digital solutions SCSK Network integration Net One Systems Digital marketing SC Digital GX promotion GX concierge DX & AI engineering Insight Edge Open Innovation Lab MIRAI LAB PALLETE Quantum technology Quantum Transformation Accelerate the deployment of digital and AI technologies across our Group and serve as a Center of Excellence (CoE) to consolidate and share expertise CDO function Strengthen IT governance and security measures for the AI era while reinforcing our Groupʼs management foundation CIO function Digital AI Capabilities × Talent Development Maximize synergies

▍Medium-Term Management Plan 2026

Initiatives in final year of the medium-term management plan

• Deepening operational integration between SCSK and Net One Systems toward April 2027
• Advancing co-creation initiatives following the full acquisition of SCSK
• Integration of digital and AI related organizations through the establishment of the Digital AI Group
• Strengthening digital solutions capabilities, including consulting, digital and AI, global expansion, BPO, etc.

Initiatives for next medium-term management plan

• Supporting SCSKʼs sustainable growth as a shareholder
• Advancing DAIS as a Center of Excellence (CoE) to accelerate growth across our Group
• Creating collaborative business opportunities in key focus areas through collaboration between our business frontlines, SCSK, and other digital solutions companies

▍Key Market Trends

Japanʼs digital and IT market is projected to reach approximately ¥40 trillion by 2030; we aim to expand our business platform and market presence in this rapidly growing sector, which is expected to achieve a CAGR of approximately 11%

Japanʼs digital and IT market (Trillions of yen)

CAGR: 11% (forecast)

Source: Estimates based on reports published by Gartner and Yano Research Institute, and other sources.

• ※Tatsushi Tatsumi CEO, Digital AI Group