Business of TENMA Group
Plastic Molding Manufacturer
OEM Business

Original Brand Product●Housewares●Storage cases●Kitchen supplies●Sanitation products,etc.

Successful in two
business forms

Category-Leading
Consumer Brand Company“Fits” brand: More than 100 million units sold

●OA equipment parts●Home appliance parts●Vehicle components●Media cases, etc.

In Asian growth markets, top global companies
select TENMA as their partner
CAGR: 5.9% (Past 10 Fiscal Years)

1Review of Previous Medium-Term Management Plan
●The final year of the 2nd Medium-Term Management Plan (Year-end March 2021) wasaffected by COVID-19, and fell below the target.
●However, withdrawal from unprofitable businesses was largely completed during the periodof the 2nd Medium-Term Management Plan, thus improving profitability.
●As for the business environment, we will review our growth strategy from a long-term
perspective to adjust to accelerated social transformations caused by COVID-19.

[Main strategies of the 2ndMedium-Term ManagementPlan]

2nd Medium-Term
Management Plan
2019/32020/32021/3

Actual performance

2021/3Goal

Net Sales(M JPY)84,76585,762

73,63991,000Operating
Profit (M JPY)

2,349

3,065

2,892

4,500

Operating
Profit ratio (%)

2.8

3.6

3.9

5.0

COVID-19
influence

Active global investment(Responding to business
opportunities to expand overseas)

Improve profitability oforiginal brand businessin Japan2

Review of Previous Medium-Term Management Plan
Outline of Management Strategy(Qualitative Goals)
 Further development of injection
molding technology and peripheraltechnologies such as dies
 Promotion of Global Strategy
・Expanding original brand businessin China
・Active investment in Vietnam andThailand Profitability reform in original brandbusiness Automation in the manufacturing
processes

 Number of customer complaints=>48% reduction from FY18 to FY20
 Vietnam: Completion of Noi Bai Plant
Thailand: Expansion of Platinburi Plant
 Development of high value-addedproducts
 Promote automation projects
throughout the company=>Introduction of robots at six plants
 Local employees from Indonesia andVietnam were accepted as trainees atHQ

 Strengthen human assets atoverseas subsidiaries
3

Vision and Positioning of theNew Medium-Term Management Plan

Our roadmap to become a
100-year company
In 2049, TENMA will celebrate its 100 year anniversary.
Aiming to be a "100-year company“, TENMA Group has
renewed its effort to visualize the “ideal image” of what
it needs to become, as well as the necessary steps to getthere, from a long-term perspective of 10 and 20 years.

“Transformation period”
to achieve our “ideal image”

The 3rdMedium-Term
Management
Plan
Fiscal 2022 to fiscal 2024

The 4thMedium
TermPlan[Ideal Image]Long-term Vision

Improving our Lives and theEnvironment ThroughCoexistence with Plastic
Long-term Goal
(Targets for Fiscal Year 2031)

The 5thMedium
TermPlan

Operating profitNet sales
110 billion yen 9 billion yen

ROE

9% or more

ROIC

9% or more

4Long-Term Vision of the TENMA Group

Improving Our Lives and the Environment
Through Coexistence with Plastic

Approach toEnvironmental
Problems

BusinessDevelopmentand Evolution

Employee
Growth andHappiness

Address social issues asa resin molding manufacturer

Enjoy the fruits of our businessgrowth with all stakeholders

Become a company offering
opportunities and satisfaction

5

3rd Medium-Term Management Plan
Basic Policy
3rd Medium-Term Management Plan (Fiscal Year 2022 to 2024)[Basic Positioning] "transformation period" toward achieving our "ideal image"

Basic Policy 1 Promoting sustainable management“Sustainability Office” (newly established in May 2021) to lead sustainable management
based on our emphasis on E (Environment) · S (Society) · G(Governance)
Among the 17 goals covered by SDGs, TENMA has selected 6 items related to ourbusiness to use as company-wide guidelines for activities to realize our vision.

Basic Policy 2 Building a foundation for growth
Review our resource allocation and focus on building a foundation for long-term
growth for the TENMA Group, especially in R&D and DX areas.
6

3rd Medium-Term Management Plan
Corporate Strategy
Through the promotion of these strategies,
faciliatate "transformation" as the basis for achieving our "ideal image"

Strategy(1)Development of
Human Assets

Strategy(4)

Promotion of DX
and Factory Automation

Strategy(2)Address
Environmental Issues

Strategy(5)

Promotion of R&D

Strategy(3)Strengthen
Corporate Governance

Strategy(6)

Expand Business Areas[Basic Policy 1]

Promoting sustainable
management[Basic Policy 2]

Building a foundation forgrowth7

3rd Medium-Term Management Plan
Corporate Strategy
Strategy(1)Development of
Human Assets

Strengthen development of “Human Assets" which is thesource of competitiveness
1)Efforts to promote a variety of human resource●Respect for diversity: Provide a workplace where all employees candemonstrate their abilities, regardless of gender, age or nationality.
●Personnel system reform: Fair treatment and evaluation according to eachindividual’s ability and responsibility●Work style reform: Making it possible to select work styles according todifferent life stages (Introduction of telework and flextime systems, etc.)

2)Efforts to improve employee satisfaction●Improving the work environment of employees●Establishment of a system to promote non-regular employees to regularemployees●Enhancing the Corporate Brand Value of “TENMA Group” (Improve company
loyalty and the status of our employees)

83rd Medium-Term Management Plan
Corporate Strategy
Strategy(2)Address
Environmental Issues

Promoting the 3R activity of plastics as a leading company inresin molding●To make more effective use of plastics,
develop products including Recycled
Plastics

Reduce●Reserch the use of Bioplastics for ourproducts●Durable products●Reduction of wastematerials

3RRecycle●Development ofproducts including
recycled plastics

Reuse● Maintain a corporate
culture to treat machineand resources with care9

3rd Medium-Term Management Plan
Corporate Strategy
Strategy(3)Strengthen
Corporate Governance●Non-mandatory Nomination and Compensation Committee
established in November 2020=> Ensure a more objective process for nomination and compensation●The ratio of independent outside directors shall be at least 1/3 inconsideration for further improvement=>to engage in objective and vigorous board discussions=>to achieve transparent and effective board of directors●Established Internal Control Office=>Strengthen control of overseas subsidiaries, review regulations
and ensure consistency throughout the company●Improving the efficiency of auditing operations through IT investment
10

3rd Medium-Term Management Plan
Corporate Strategy
Strategy(4)Promotion of DX andFactory Automation*Core Organization: "Digital Strategy Office"Shift from operational efficiency to new business opportunities
through DX promotion
1 Active promotion of digital shift in production and operations


Digitize company-wide infrastructure and establish a management foundation that can plan, execute, andevaluate business strategies by using accumulated dataStrengthen cost competitiveness by automating product assembly and on-site logistics

2 Strengthen EC strategy for our products and expand globallyStrengthen marketing of new products by making active use of online services and develop products that
accurately meet market needs
In anticipation of EC market growth, we will use IT to expand our products globally and develop products.

3 Creation of new businessesStrive to break away from the legacy corporate culture and take on new business opportunities outside theconfines of the traditional equipment industry.
Build new business models by using IT and leveraging domestic distribution networks and brand recognition11

3rd Medium-Term Management Plan
Corporate Strategy
Strategy(5)Promotion of R&D"Research and Development Office" was newly established in May 2021
in the Production Division to dedicate to technological development.
Main Activities of "Research and Development Office"●Establish special molding technology and material development
technology as our elemental technologies●Collaborate with the Development Department, Sales Department,
Technology Department, and Corporate Planning Department toestablish technology to embody functions necessary in future markets●Promote research activities related to upstream technologies such asmaterials and molds and increase added value●Enhance the added value of existing businesses by strengthening
decorative molding technology and robotics technology

12

3rd Medium-Term Management Plan
Corporate Strategy
Strategy(6)Expand Business Areas

Expand our business domain through marketing strategy andtechnology development(Strategy (4))(Strategy (5))“Sales Planning Dept.” (established in May 2021) will play a leading role inexpanding our business.
Development of Environment Conscious Products (Bioplastics, etc.)
Enter new products in the houseware business
Promotion of original brand business in ASEAN countries
Acquisition of mold manufacturing technology and development ofmold business
Challenge to enter new markets for commercial products(Logistics materials, medical equipment, drones, toys, etc.)13

3rd Medium-Term Management Plan
Business Strategy
Classification by Region
Japan

China

Classification by Business Domain◎OA
Business

OEM
Business

Original
BrandBusiness
New
Business

Southeast
Asia

HomeAppliances
Business◎◎Vehicle
Business―◎Housewear
Business◎☆

――●Medical●Logistics
materials●Environment,etc.

☆

Regional Strategies◎ : Focus: Maintain highmarket share☆ : New Launch: AS-IS-: Not applicable

By Business
AreaStrategy14

3rd Medium-Term Management Plan
Business Strategy
Strategies by Business Domain
OEM business

Original brand business (Houseware business)

OA and home appliances business

Becoming a Top Manufacturer●Measures to increase added value(Unit assembly business, decoration technology, etc.)●Expanding the scope of business through newtechnological capabilities (Special moldingtechnology, mold manufacturing technology, etc.)

Developing new markets, new commercial
materials, and expanding overseas●New sales channels: In addition to “HC (home center)route”, expand sales channels to "Specialty stores“, "Factory" and"EC“●New products: Development of new products that canappeal to new markets●Overseas expansion: Expand business in China and launchbusiness in ASEAN countries

Vehicle business

Focus on Southeast Asia
●Further promote our business in Southeast Asia,
where we have already entered
Our first step toward global expansion

New business

Building new business models
around DX and promoting alliances

Building a new business model with DX
Alliances and investments in new business areas wheresynergies with existing businesses can be expected15

3rd Medium-Term Management Plan
Business Strategy
Regional StrategiesJapanSoutheast Asia:●Increase orders for assembly
parts in OEM business●Enhancement of research anddevelopment activities●Reorganization of logistics network●Accumulation of factory automation
know-how●Development of EC business●Increase sales in home
appliance and vehicle
businesses which are expected
to expand

China:●Considering establishment ofa new factory●Acquisition of mold manufacturing
capability●Promotion of the housewarebusiness●Entering the OEM business in newfields●Increase market share in theoriginal brand business16

3rd Medium-Term Management Plan
Investment Strategy and Capital Policy
Investment StrategyCapital Policy

Total investment for 3 years

As an effort to increase corporate value,
continuously return profits toshareholders through capital policies.

18 billion yen

Infrastructure: 10.8 bil yen
Strengthening
Profitability
5.0 bil yen
Business
Expansion:
2.2 bil yen*Regarding the investment to strengthen
profitability and business expansion, carefullyreview the balance of risk and return on each deal.
*Consider the cost of capital whan making newinvestments. Be disciplined to keep ROIC
improvement in mind whan making decisions.

Dividend policy
Dividends on Equity (DOE)
2.5% or more

Purchase of treasury stock・ To return profits to shareholders, over
10 billion yen should be used forpurchase of treasury stock=>of which the total amount was 2
billion yen, as announced publicly on
August 7, 2020 (Repurchase period: Until
August 10, 21)

17

3rd Medium-Term Management Plan:
Perfomance Goals and Management Indicators
Goals

Third Medium-Term
Management Plan

Results of the Second Medium-Term
Management Plan
2019/3

Net sales (million yen)
Operating income

2020/32022/32021/32023/32024/384,76585,762

73,63981,00084,50087,000

2,349

3,065

2,892

3,400

3,800

4,200-

--

3,900

4,600

5,400

2.8

3.6

3.9

4.2

4.5

4.8

---

4.8

5.4

6.2

(million yen)

Operating income
excluding strategic
expenses (million yen)

Operating income
margin (%)

Operating income margin[excluding strategic expenses] (%)
Net sales

2nd Term

2nd Term
2018/3

2019/32020/32021/3

3rd Term

3rd Term
2022/32023/32024/32031/3

2018/3

2019/32020/32021/32022/32023/32024/32031/318

[Reference 1] Changes in Business Portfolio■Trends in Sales Composition by Business Domain
HW
33 billion yen
30%*2021/3 is actual results. All others are planned values.

Other
7.7 billion yen
9%

Other
7.1 billion yen
10%OA
40 billion yen
36%

HW
23.3 billion yen
27%OA
39 billion yen
45%[2031/3]
110 billion yen

HW
20.1 billion yen
27%

OA
32.4 billion yen
44%[2024/3]
87 billion yen
Other
10 billion yen
9%

VEHICLES
8.7 billion yen
8%[2021/3]
73.6 billion
yen
VEHICLES
7.5 billion yen
8%

VEHICLES
6.4 billion yen
9%

new area
5 billion yen5%

home appliances
7.4 billion yen
10%home appliances
13.3 billion yen
12%home appliances
9.5 billion yen
11%19

[Reference 2] ROE 9% Roadmap(billions yen)

Net income (Left Axis)

100
80

712

60
40

50
30

30

31

55

63

1,000
795

793

787

764

748

737

733

721

(billions yen)

Equity (Right Axis)

64

67

795
69

72

793

600
400

34

200

200

2021/32022/32023/3

(%)

6.0

131

131

4.2

4.1

4.0

2025/36.7
4.3

2026/32022/32023/32028/3792024/3*2021/3 is actual results. All others are planned values.

2025/32029/3

Total return ratio (Right Axis)

7.3

8.1

8.2

71
2026/38.42030/38.72031/3
9.0

96

100

103(%)

160

120
100
80

63
2027/3

0

140

92

62
2021/32027/3

4.6
88

2.0
0.0

2024/3

ROE (Left Axis)

10.0
8.0

800

2028/32029/32030/32031/36020