February 13, 2024
Name of listed company:

Taki Chemical Co., Ltd.

Representative:

Takamoto Taki, Representative Director, President

Code number:

4025 (Prime Market of Tokyo Stock Exchange)
Osamu Okamoto, General Manager, General Affairs &Personnel Department
Tel:+81-(0)79-437-6002

Inquiries to:

Notice regarding action to implement managementthat is conscious of cost of capital and stock priceTaki Chemical Co., Ltd. (the “Company”) announces that its Board of Directors, at a meeting held on
February 13, 2024, resolved policies on actions to implement management that is conscious of cost ofcapital and stock price toward achieving sustainable growth and enhancing corporate value over themedium to long term as follows:

1. Analysis of current situation
FY12/2019

FY12/2020

FY12/2021

FY12/2022

FY12/2023

1,911

2,166

2,982

3,144

1,337

5.3

5.9

6.8

6.7

4.1

Basic earnings per share (yen)157.64180.37221.46237.53156.86

Dividends per share (yen)

40.00

45.00

50.00

50.00

50.00

Net assets per share (yen)3,033.53

3,114.67

3,378.42

3,689.28

3,994.74

Equity-to-asset ratio (%)

61.5

62.763.5

63.5

65.9

Year-end stock price (yen)

4,675

6,520

5,800

4,555

3,215

Ordinary profit (million yen)
ROE (%)PBR (times)
1.54
2.09
1.72
1.23
0.80
・The Company and its group companies (collectively the “Group”) achieved record-high earnings in
the fiscal year ended December 31, 2021 and 2022 as a result of its efforts to increase profitability.
For the fiscal year ended December 31, 2023, however, the Group reported a year-on-year decreasein sales and profit because of slack in the Agriculture business, higher energy cost, and other factors.
Amid these trends in business performance, the Company’s stock price has tended to decline from2020 partly due to delays in the progress of the commercialization of Tricholoma bakamatsutake,and PBR has remained below 1.0 since October 2023. The Company considers that this is mainly
because it has not lived up to the stock market’s expectations to enhance its corporate value.
2. Policies on actions to address the current situation(1) Based on the Taki Chemical Group’s mission of “Tradition and Innovation—Become a Company ofChoice 100 Years down the Road,” the Group recently formulated the “Long-Term Vision 2050,”

which clarifies the ideal state of the Group and what it wishes to achieve. Under the Vision, theGroup will strive to boost corporate value and achieve sustainable growth from a long-term
perspective.
(2) Meanwhile, under the five-year “Medium-Term Management Plan 2028” started in 2024, the Groupwill aim to achieve targets set forth as consolidated net sales of ¥42,000 million, consolidated
operating profit of ¥3,000 million, and ROE of at least 6.0%.
(3) The Group will work on strengthening communications with stakeholders and further improving
shareholder return.
3. Initiatives in line with the policies(1) With putting the environment, society and local community at the core of the strategy, the Group will
strengthen the tree pillars of its businesses, namely Agriculture, Chemicals, and Real estate, toachieve sustainable growth through developing creative and innovative new businesses and products.
(2) In line with the following basic policies set out in the Medium-Term Management Plan 2028, theGroup will endeavor to increase sales and improve profits by steadily implementing action plans setfor each business, thereby achieving the targets.
a. Invest aggressively in growth businesses and create new businesses
b. Enhance profitability by strengthening existing businesses
c. Implement sustainability transformationd. Promote GRC (Governance, Risk Management and Compliance)

Along with the Long-Term Vision 2050 and the “Medium-Term Management Plan
2028,” please refer to the “Taki Chemical Group—Long-Term Vision and theMedium-Term Management Plan,” which has been disclosed on the Company’s
website today, by scanning the QR code.
(3) Strengthen communication with stakeholders and further improve shareholder returna. Communicate with shareholders and investors
The Group will further enhance the relationship with investors so that they will support us forthe medium to long term, by communicating with them through a variety of methods such as
timely and appropriate information disclosure, the CSR Report, briefing sessions for individual
investors, and each IR meeting.
b. Maintain stable dividends on a continual basis and further improve shareholder return
The Company positions the profit return to its shareholders as a key management priority.
Accordingly, it has revised its forecast of dividends for the fiscal year ending December 31,
2024 to ¥55 per share, an increase of ¥5 per share from ¥50 per share (planned) for the fiscal

year ended December 31, 2023. In efforts to further bolster shareholder return, the Company
will always keep in mind the payout ratio of 30% or more on a consolidated basis. TheCompany will seek to increase the total payout ratio by continuing to flexibly repurchase its
own shares in a timely and appropriate manner, thereby further enhancing shareholder return.
c. Raise capital efficiency
The Group will carry on a financial strategy that is conscious of raising capital efficiency
through reducing cross-shareholdings. In addition, the Group will be committed to furtherenhancing profitability by aggressively investing in growth businesses through the effective
use of funds on hand and the utilization of various financing measures to boost ROE.