2nd Mid-Term Business Plan(FY2024 to FY2026)
Tokyo Cosmos Electric Co., Ltd.
April 2024

Note: This document is a translation of the original Japanese version and provided for reference purposes only.
In the event of any discrepancy between the Japanese original and this English translation, theJapanese original shall prevail.

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Reviewing the 1st Mid-term Business Plan (FY2021 to FY2023)<Results of Structural Reform><Ongoing Issues>• Selected & Concentrated on Highly Profitable
Businesses• Construct Clear Financial Strategy• New Product Development• Increased Sales in Automotive products• Innovation / Reorganization inProduction• Fixed Cost Reduction & Productivity
Improvement
10,713( Millions of JPY )(***) : FX Rate (JPY / USD Term Average)（136）

10,100（140）

9,511
（113）

Forecast
16% increase
26% increased

8,700

8,500

17% increased

（105）

（105）

8,100

Net sales（105）

Operating profit

13%
1,350

1％

120
Plan795
Actualresults

FY 20218％

5％ 4404％ 310Plan

Actualresults

FY 2022

Plan990 Operating profit ratio
10%Forecast

FY 2023

22nd Mid-term Business Plan (FY2024 to FY2026)<Objectives>* Increase Investment for Sales Expansion & Production Innovation* Implement Versatile Management & Financial Strategy

Long-TermPlan

2nd1stMid-Term Plan

[Structural Reform][Structural Reform]

Investment
for Growth

Focused on
Improving OP

Net Sales 10.5 Bil. JPY
Net Sales 10 Bil. JPY
OP Ratio 10%
OP : Operating Profit

2029

Mid-Term Plan

OP Ratio

ROA
DOE

10%

9%3.5%

Further BusinessExpansion

Net Sales 13.5 Bil. JPY
OP Ratio

ROA
DOE

12%

11%
4.5%

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Framework : Investment for Sales Expansion and Production Innovation

GoalIssues

Structural Reform

Pursue Growth andEarning power

Key for GrowthEnhanceTechnologyDevelopment• Develop & Acquire New Technologies• Improve Existing Core Technologies for
New Applications• Invest in Management Resources(R&D / Talent Acquisition & Training )Maintain 10% OP
Strengthening• Increase Product Value
Profitability • Reorganize Production Systems & Methods• Leverage DX & AI / Improve Productivity
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Framework : Establish Business & Financial Foundations Adaptable to ChangeManagement Structure
Transformation

GoalIssues

Structural Reform

Improve
Financial
Structure

Diversification of Financing
Methods• Reduce Interest-Bearing Debt
• Enhance Capital Efficiency (Improve ROA)

Achieve Stable Growth ofShareholder Returns• Improve the Dividend on Equity (DOE)

Enhance
ShareholderReturns• Stable Shareholder Returns in the Mid- to Long-Term(Yen)Dividend Per Share5

Actions to Implement Management that is Conscious of Capital Cost and Stock Price

Expand and Grow Business, Improve Profitability
1) Capital Investment / R&D Budget Target: Total 2 Bil. JPY
2) FY2026 Target : ROA 9%

Stable Growth of Shareholder Returns- Define the Dividend Policy Indicator.
FY2026 Target: DOE 3.5% (Dividend Payout Ratio Approx. 40%)
Enhance IR Activities- Enhance disclosure and communication to Shareholders and Investors.
- Disclose Non-Financial Information on the Website (Sustainability, etc.).
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The forward-looking statements and forecasts for the future expressed in this document are based on current information. They
contain some risks and uncertainties. Please understand that actual performance and results may vary.

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