Message from our CSEO

The Chief Stakeholder Engagement Officer (CSEO) organization was established in April 2023 in order to strengthen engagement with all of our stakeholders. While we have always prioritized our communications with stakeholders, and consider them crucial for improving corporate value, in order to further grow in this time of great change in the industrial and societal landscapes, an awareness was strongly felt at the management level that we must create even more opportunities for discussions with stakeholders, and to incorporate those perspectives in our management of the Company. This was the background for establishing the CSEO organization. In our daily efforts, the organization's Corporate Communications, Sustainability, and Investor & Shareholder Relations teams each have a responsibility for different stakeholders, so that we may provide them with comprehensive engagement. Furthermore, this organization has gathered personnel with a wide range of expertise, including those from our business groups, to create a framework for effective communication internally and externally.

In our discussions with stakeholders, we are striving to create opportunities for two-way communication, where we not only unilaterally communicate issues such as strategic updates or our financial position, but also hear their opinions on how our Company is viewed by the capital markets and what moves we might make to improve corporate value. By quickly sharing the opinions and advice we receive with management, including the President and CEO and others, we look to encourage changes in internal awareness and incrementally improve our business execution.

Since establishing the CSEO organization, we have reexamined both the qualitative and quantitative aspects of our communications and disclosures. First, for our communications, we have arranged many opportunities for our President and CEO, CFO, and independent directors to have direct discussions with domestic and overseas institutional investors, analysts, and individual shareholders. Specifically, we have held the MCSV Creation Forum twice (Dialogue on Business Strategy and ESG Dialogue), to give institutional investors and analysts the opportunity to hear about, and give their opinions on, our MCSV creation initiatives. In addition to that, we are continuously strengthening our initiatives to communicate our Company vision and strategy to individual shareholders. We have also created short videos to introduce MC to primarily individual shareholders, providing easy-tounderstand information to those who have not had many points of contact with our Company until now.

For disclosures, we are constantly reviewing and expanding the content of our financial disclosure materials based on the feedback of our shareholders and investors. We are also expanding disclosures of our GHG emissions and we were the first in the industry to disclose emissions of Scope 3 Category 11.

While we are expanding disclosure information, one issue has been that our disclosure materials, including integrated reports, have not been effectively leveraged in our communications. To that end we have reexamined our disclosure framework, rearranging the information necessary for readers’ analysis and comprehension. As a result, the integrated report, which explains in a comprehensive manner our initiatives for corporate value enhancement, has been repositioned as a core disclosure for stakeholder engagement, and the information shared has been carefully selected and slimmed down with consideration for ease of use. Because we have provided an overview of our corporate value enhancement story in the integrated report, and rearranged more detailed initiatives and data in other media such as our sustainability website, we hope that our stakeholders will use the integrated report as a guide, to be read together with other disclosure materials in accordance with their own objectives.

Stakeholder engagement has become increasingly important with changes in the market environment and MC’s future growth, and we are aware of the necessity of strengthening initiatives through continuing dialogue and disclosure, in order to meet our stakeholders’ expectations.

One issue in particular is the appropriate evaluation of our potential for growth, and so we believe that it is necessary to work towards communicating MC’s value as an industrial conglomerate. While we aim to make use of our strengths as a conglomerate by creating new integrations between our businesses to generate MCSV, we have strengthened these dialogues and disclosures to increase the clarity of our medium- to long-term growth. In addition, our next Midterm Corporate Strategy will have been formulated with a greater awareness of the capital markets. Through these kinds of initiatives, we aim to enhance our corporate value by reducing capital costs and improving growth expectations.