Materiality | MEDIUS Holdings Co., Ltd.

Material Issues of the Medius Group

The Sustainability Committee played a central role in the review, and after deliberation and approval by the Board of Directors, we identified the materiality. Going forward, we will advance our sustainability activities based on these important issues in order to promote sustainable management from a long-term perspective, with the aim of realizing a sustainable society and achieving sustainable growth for our group.

[Material Issues and Subtopics]

Material Issues	Subtopics
Stable supplying reliable medical and nursing care equipment	Select and supply products that are high-quality, safe, and reasonably priced Ensure rapid, stable delivery of supplies required for provision of medical and nursing care Create a structure for delivery of supplies that can respond to emergencies such as natural disasters or another infectious disease Join forces with our suppliers to fulfill our societal responsibilities and contribute to society
Supporting medical and nursing care transform by using our imagination	Provide our total solutions service to help with medical and nursing care business management Take local characteristics into account when helping to provide information to the front lines of medical and nursing care and develop infrastructure
Conserving environment	Act on global warming Implement measures to establish a circular economy
Promoting human resource development that leads to value creation	Establish and maintain appropriate relations between management and workers, and promote occupational health and safety Promote increased understanding and protection of human rights, and create workplaces and systems that enable active participation by a diverse range of human resources Develop an HR system, and education and training programs, that enable both individuals and the Company to grow
Balancing sustainable trust and growth	Thorough compliance and anti-corruption measures Strengthen governance and risk management Reinforce our business foundation and expand our operations Improve disclosure of information on topics such as growth strategies and sustainability strategies

<Material Issues Identification Process>

We considered and identifiedmaterial issues through the following process.

STEP 1 Identifying and extracting issues

We have comprehensively grasped social issues by referring to market changes (mega trends), international guidelines such as the GRI Standards, and evaluation items from ESG evaluation agencies. In order to identify issues for our Group in light of social issues, we conducted a value chain analysis, management/business analysis, mega trend analysis, and stakeholder analysis to identify issues.

STEP 2 Organizing and consolidating issues

We compared the issues extracted in each analysis in STEP 1 against our group's philosophy, policies, strategies, and society's expectations and demands for the group, and organized and consolidated the issues.

STEP 3 Impact assessment

The issues organized and summarized in STEP 2 were evaluated along two axes: "the degree of impact the Group has on society and the environment" and "the degree of impact society and the environment have on the Group's management" Issues with a high degree of impact on each were positioned as material issue candidates.

STEP 4 Identifying materiality

After approval, we identified our materiality.

Indicators and Goals

We have established a medium- to long-term vision and indicators for materiality. Going forward, we will incorporate materiality into our sustainability action plan and promote sustainability activities across the entire Group.

Material Issues	Medium- to Long-Term Vision	Key indicators
Reliable medical and nursing care equipment Stable supply	Safety, quality, price, delivery time, and service Maintain and continue high levels of customer satisfaction Developing a system that can respond quickly to changes in the business environment, such as disasters Sustainability risks and impacts throughout the supply chain Identifying opportunities and taking action	BCP formulation Sustainability Procurement Policy Formulation
By imagination Supporting medical and nursing care reform	Understanding regional characteristics and contributing to the development of medical and nursing care infrastructure needed in the region Utilizing our solutions capabilities to contribute to improving the management of medical and nursing care facilities Providing comprehensive services	EDI (Electronic Data Interchange) Platform Construction
Conserving environment	Steady reduction of greenhouse gas emissions toward carbon neutrality Increase in the ratio of environmentally friendly products handled	Reduce greenhouse gas emissions (Scope 1+2) Target:42% reduction in FY2030 compared to FY2022 Environmental management system construction
Leading to value creation Promoting the active participation of human resources	All employees are highly motivated and can work with enthusiasm. Establishment of a safe and secure working environment, employment system, and education system that allows employees to work for a long time Implementing management that prevents human rights violations throughout the value chain Securing the human resources necessary to maintain and grow the business	Ratio of female managers Target:10% or more by fiscal 2030 Rate of men taking childcare leave Target:60% or more by fiscal 2030 Number of paid holidays taken per year Goal:10 or more days per year in 2030
Establishing lasting trust and Balancing growth	Conducting fair business, ensuring compliance, and preventing corruption Proper implementation of information security and prevention of incidents Analyzing the business environment and your company's situation, understanding risks and business opportunities, Implementing the response Secure high sales and profits, establish a stable management base, and create new profit pillars Establishment and investment in new businesses and initiatives	Board of Directors Ratio of independent outside directors Target:Maintain 1/3 or more Internal control training attendance rate Goal:Maintain 100% for the entire group