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                                                                The world is undergoing dramatic changes with the emergence of high growth markets such as India and China, heightening needs to address issues of resources and the environment, and major industrial transformations such as the development of electric vehicles. Simply expanding business along the conventional path is no longer sufficient.

                                                              1. To respond swiftly and flexibly in this changing world, the bat365 login Group is advancing a transformation of our business portfolio. In accordance with our mid-term management initiative "Cs+ for Tomorrow 2021," we are advancing R&D for further business expansion in fields that contribute to a society of clean environmental energy and a society of healthy/comfortable longevity with peace of mind.

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                                                                  Depending on the degree of novelty and the market growth potential, R&D in the bat365 login Group is divided into medium- to long-term corporate R&D to create new businesses that span across different fields and R&D to enhance established businesses. To leverage the diversity of our operating configuration, R&D programs are seamlessly coordinated within the bat365 login Group, while external resources such as corporate venture capital (CVC) are proactively utilized in the creation of new businesses.

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                                                                          R&D expenses of the bat365 login Group were ¥89.7 billion in fiscal 2020. A breakdown of expenses by field of business is shown below.

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                                                                              Annual R&D expenses 2020FY89.7\billion/2019FY91.0\billion/2018FY90.1\billion/2017FY85.7\billion/2016FY79.6\billion/2015FY81.1\billion/2014FY75.5\billion/2013FY71.1\ billion

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                                                                                Breakdown of R&D expenses \89.7billion(FY2020) Material37%/Homes4%/Health Care44%/Homes4%/Corporate expenses16%

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                                                                                          The bat365 login Group works in collaboration with industry, academia, and government, advancing many joint R&D projects, and outsourcing technological developments to other companies, universities, and public research institutes both in Japan and around the world.

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