RAKUS : Sustainability Report 2021

RAKUS SUSTAINABILIT Y REPORT 2021

	About Us		Value Creation		ESG		Data Section		Company Information

Contents

About Us

P2 Long-Term Vision

MISSION / VALUE

P3 Leadership Principles

P4 Message from the President

P8 Company History That Has Led to Value Creation

Value Creation

P10 Growth Trajectory

P11 Business Model and Performance of Cloud Business

P12 Features and Growth Strategy of Cloud Business

P13 Services:

Raku Raku Seisan / Raku Raku Meisai

P14 Services:

Raku Raku Hambai / Mail Dealer

P15 Services:

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

P16 Business Model and Performance of IT Outsourcing Business

P17 Management Resources That Underpin Value Creation and Growth

P18 Medium-Term Management Targets

ESG

P19 Environmental Data

P20 Social Contribution in Businesses

P21 Organizational Structure and Governance Policy

P22 Policy on Remuneration for Officers /

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

P23 Directors

P24 Audit & Supervisory Board Members

Data Section

P25 Consolidated Statements of Income

P26 Consolidated Balance Sheets

P27 Consolidated Statements of Cash Flows

P28 Non-financial Data

P29 Changes in Capital Structure and Dividends

Company Information

P30 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]

[e-mail]

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 2020 to March 2021.

• I t a l s o i n c l u d e s s o m e i n f o rm a t i o n o u t s i d e t h a t 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.

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	About Us		Value Creation		ESG		Data Section		Company Information

Long-Term Vision

MISSION

We constantly help companies

grow their business by providing IT services.

VALUE

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.

Become a Company Representing Japan

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

We capture signs of potential changes

and evolve proactively.

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	About Us		Value Creation		ESG		Data Section		Company Information

Leadership Principles

Take ownership

results

Leaders consider themselves to be owners of the company always act with a sense of ownership. They prioritize matters to the company's long-term sustained growth. A leader will forcefully if feeling that his or her boss or an executive is 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 from competitors and prime companies in other industries utilize this for their own company's growth.

				-oriented and do their very best to achieve their goals.
				stance, even when facing difficulties, and do not
				Anticipating the unexpected, leaders always have an
				plan.
				Communicate ideas with words
				Leaders can certainly communicate their own ideas with
	Act to become
	communicate their ideas in a courteous way, until they
				words. One's ideas can only be communicated with
'a company representing Japan'	words. If not well understood, leaders will repeatedly
make themselves understood.
	Our Leadership Principles are a code of conduct,		Tolerate failure
	Leaders tolerate failures based on hypothesis put
	highlighting the mindset that management of RAKUS
		forward by people around them. Even if having
	should embrace. Leaders correctly understand these		the knowledge sometimes things cannot be
	principles, which enables them to judge and act with a		understood without actual experience. Leaders
		consider failure to be a learning opportunity, and
	well-balanced approach from multiple perspectives. Each		encourage others to learn from their failures.
	principle may appear obvious, but when put together		Accept others' views
	create an unrivalled company. This gives us confidence
	that RAKUS will become 'a company representing Japan'		Leaders sincerely accept others' views even when
		different from their own thinking. Leaders have a
	in future.
		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.

Start small and grow big

needs to be done

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.

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.

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	About Us		Value Creation		ESG		Data Section		Company Information

Message from the President

Long-Term Vision

Become a company representing Japan

We are striving to 'become a company representing Japan.' In other words, over the next 10 years or so, we aim to become a well-known company in Japan that is ranked among the top 100 Tokyo Stock Exchange listed companies in terms of market capitalization. We believe that in order to raise awareness in our company, we must become a cloud service (SaaS) provider that has a huge workforce, boasts among the highest sales, and provides services to many people.

Growth Strategy

We can achieve growth while making a profit by

growing and investing in new services.

To achieve our long-term vision, we will need to attain annual sales of at least 100 billion yen. Sales for the fiscal year ended March 2021 was 15.3 billion yen, so we will need 6.5 times that amount. Our current core services-Raku Raku Seisan and Raku Raku Meisai-are cloud services that help our corporate customers improve efficiency of back-office operations through digitalization. I believe that improving efficiency through back-office digitalization presents a big opportunity for us.

Takanori Nakamura

President and Representative Director

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