Message from the Management

Always boldly designing Our Purpose and working to solve our issues of materiality

Traditionally, Brother has had an open corporate culture in which the relationships between superiors and subordinates have not been so hierarchical. This open-mindedness and the spirit of "At your side," which puts customers first in every situation, are the very DNA of Brother that creates the Brother's strengths and the driving force behind its ability to change its business in response to changing times and environments without being afraid of transformation. As the global Team Brother, we are able to grow by building trust and sharing our knowledge base with each other. In the belief that "people's voices" inspires transformation, I value engaging in dialogues with employees and listening to their views with a neutral attitude, thereby producing new ideas while building mutual trust. To realize a sustainable world, we will further refine this DNA and strengths and create unique Brother's value.

In the Brother Group Vision "At your side 2030" formulated for 2030, we declare Our Purpose as "By being 'At your side,' we enable people's productivity and creativity, contribute to society, and help protect the earth." As a roadmap toward fulfillment of Our Purpose, we have formulated the FY2025-2027 medium-term business strategy "CS B2027" and reviewed the five issues of materiality we had identified as priority social issues in 2022, resulting in six issues of materiality redefined in 2025.

• "Supporting people's value creation"
• "Realizing a diverse and active society"
• "Pursuing a responsible value chain"
• "Reducing CO₂ emissions"
• "Circulating resources"
• "Supporting value creation through governance"

We believe that, to contribute to society, we can support people's value creation by ensuring that all Group employees work together to create excellent value and promptly provide it, thereby satisfying our customers. We believe that diversity of human resources is essential for that purpose. With the increasing uncertainty in the world, the range of options becomes limited if many people share the same opinions. Assigning women and foreign nationals to key positions is certainly important, but diversity of thinking is more important than that of people's categorical attributes. We will promote value creation by aggregating various ideas from various ways of thinking.
Social responsibility in the value chain is also an important theme. Through the "Brother Group Human Rights Global Policy" and participation in the Responsible Business Alliance (RBA), we will respect the human rights of all workers in the entire supply chain, and ensure a safe and secure working environment.

To "Protect the earth", we have set forth the "Brother Group Environmental Vision 2050" to address climate change, aiming to make all of our business activities carbon neutral and minimize CO₂ emissions throughout the value chain by 2050. Promoting sustainable use of resources, we will continue to improve the system for resource circulation throughout the value chain and aim to achieve sustainable use of resources and minimize the environmental impact of waste by, for example, reducing the ratio of virgin materials used in our main products to 65% or less by FY2030.

"Supporting value creation through governance" has been newly added to our issues of materiality in FY2025. We hope to strengthen our governance so that, when we make investments aimed at M&A, for example, we can ensure the transparency and fairness of management and encourage appropriate risk-taking toward transformation. I believe that such an "aggressive" style of governance will enable the Brother Group to fulfill its future vision and increase its corporate value.

Toward achievement of the new medium-term business strategy "CS B2027"

In the medium-term business strategy CS B2027, with an eye to the realization of the Brother Group Vision "At your side 2030," we commit ourselves to accelerating our business portfolio transformation and improving our profit-generating capability for the long-term enhancement of our corporate value, under the theme "Creating our Future. Boldly." Aiming to expand our sales in the industrial area to approximately 50% by FY2030, we will implement the strategy by stepping out of our comfort zone and overcome our psychological barriers with our own will.

To achieve this, we have set four key targets.

The first key target is to achieve 100 billion yen of operating profit, which is our top priority indicator.
To achieve this target, we will clarify the role of each business and ensure that each business will execute strategies based on key indicators set for it.

The second is to expand growth investments. We will execute growth investments of approximately 200 billion yen over the three years.
We will allocate resources primarily to the industrial area and proactively promote M&A and alliances.

The third is to strengthen our technological and human resources foundations. We will work to strengthen our technological and human resources foundations that support our strategies while steadily implementing the strategies of each business and producing satisfactory results. We will therefore enhance the profit-generating capabilities of the entire Group.

The fourth is to raise our stock price with a view to increasing our corporate value.
We will also significantly enhance shareholder returns while seeking a good balance with growth investments.
We will promote management conscious of capital costs and the stock price, thereby increasing shareholder value.

My mission and action targets toward achievement of "At your side 2030."

I will take the following four key actions to accomplish my mission.

• ◯ Accountability
  Fulfilling accountability with an extremely keen sense of ownership
• ◯ Authenticity
  Facing the situation head-on and always having honest communication
• ◯ Boldness
  Being ambitious to always boldly design Our Purpose, that is, what we should be, instead of what we can do
• ◯ Excellence
  Always aiming for the best in execution

Of these, what Brother needs most right now is boldness. Envisioning Our Purpose and fulfilling it requires us to do something more than simply continuing with our current styles of thought and action. I hope that we will break away from the boundary that defines what Brother is now and go beyond the limit we had imposed on ourselves. I believe that this will lead us to the future we aim for.

We will continue to enhance our corporate value over the long term through dialogue with our stakeholders. We hope that you will support the future of the Brother Group.