Message from the President

Thank you for your continued understanding and support of the environmental initiatives undertaken by the Senshu Electric Group.

As we strive to achieve carbon neutrality by 2050, we are steadily advancing practical initiatives, starting with actions we can implement today. In addition to setting and pursuing targets for the efficient use of resources and energy, we are promoting waste reduction and environmental beautification.

We are also addressing workstyle reforms as part of our broader sustainability efforts. Specifically, we are working to reduce overtime hours, increase paid leave utilization, and have introduced a system that allows employees to take paid leave on an hourly basis. Furthermore, to promote gender diversity, we are taking steps to increase the childcare leave utilization among male employees. We believe that enhancing productivity within limited working hours is closely linked to our environmental initiatives.

In line with these efforts, we implemented a comprehensive smoking ban across all company premises and during working hours in January 2026. While the primary objective is to improve employee health by reducing smoking ratios, we believe this initiative will also contribute to higher productivity and further strengthen our environmental management. Details of these initiatives are provided in the “Human Capital and Diversity” section of our Sustainability Management in the Annual Securities Report and Integrated Report, as well as on our website. We encourage you to review these materials.

Turning to the broader business environment, the Japanese economy has emerged from prolonged deflation and is entering an inflationary phase, with stock markets reaching record highs. At the same time, the rapid expansion of AI and data centers is driving a significant increase in global electricity demand, putting pressure on existing environmental initiatives. The current pace of renewable energy development is insufficient to meet the growing demand from hyperscale data centers, particularly those operated by major U.S. technology companies. This is one factor contributing to the recent rise in copper prices. While the restart of nuclear power plants may offer part of the solution, from a broader environmental perspective, the early realization of carbon neutrality remains highly desirable. As a company engaged in the distribution of electric wire we recognize the importance of responding to these long term trends, including the expansion of renewable energy and energy storage markets.

Finally, in advancing our environmental management, we revisited the definition provided by Japan’s Ministry of the Environment, which emphasizes integrating environmental considerations into management to achieve both environmental conservation and enhanced corporate value. Rather than responding passively to regulations, we will position environmental management as a strategic driver of growth, strengthening our corporate brand and creating new business opportunities.

We sincerely appreciate your continued support.

Mar.2026

SENSHU ELECTRIC CO.,LTD.
Representative Director,President
Motohide Nishimura