7th Medium-Term
Management Plan
Resonate 2024

©D.Golik / The Fryderyk Chopin InstituteReview of the 6th Medium-Term Management Plan Resonate 2021

Key Strategies
Enhance selling power• Capture lifestyle changes and stay-at-home demand due to the COVID-19 pandemic andexpand the global sales of digital pianos in addition to high-value-added products including“Shigeru Kawai” and hybrid products.

Production
Power

OrganizationalPower• Improved profitability through price optimization.
• Despite the impact of the suspension of music classes due to COVID-19, the number of pianocourse students increased from the pre-pandemic level as a result of measures for ensuringsafety and peace of mind.

Products andServices
Power

SellingPower

Strengthen products and services power• Developed hybrid pianos, “NOVUS NV10S” and “NOVUS NV5S”.
• Released high-end upright pianos into the Chinese market.
• Released collaboration products of mini pianos: “First-class wooden furniture-style mini grand piano” and “Lexus original mini piano”.

• Two contestants using our pianos were prize winners at the 18th International Chopin Piano Competition.

R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

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Review of the 6th Medium-Term Management Plan Resonate 2021

Key Strategies
Strengthen production power• Strengthened the production system for pianos, including “Shigeru Kawai”, at Ryuyo
Plant and in Indonesia.
• Expanded production capacity for digital pianos to accommodate strong demand.
• Developed an optimal supply chain system amid disruptions to the procurement of raw
materials and logistics due to COVID-19.
• Proceeded with initiatives to continuously improve quality and realized strategic costmanagement by starting operation of a new production system.

Deepen organizational power

Production
Power

Products andServices
Power

OrganizationalPower

Selling
Power• The Company was certified as a Health and Production Management Outstanding Organization(in the large corporation category).
• Enriched education and training programs for each level of employees and expanded and reinforced employee skills development.
• Implemented support for balancing work, child-rearing, and nursing care; and work-style reforms through the “Love it!” project for
promoting women's participation and advancement.
• Sped up business management by holding weekly executive management meetings and flexibly responding to change in an uncertain
external environment.
• Enhanced company-wide productivity by automating internal procedures and utilizing RPA.
R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

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Review of the 6th Medium-Term Management Plan Resonate 2021

Business Strategies
Overseas expansion of theeducational and tuningbusiness• Advanced the establishment of infrastructure, such as online competitions andvirtual grade tests, amid the restrictions on activities due to the impact of COVID-19.

Precision metal business• In the metal business, volumes of orders received were generally firm, but plannedlarge capital investments were suspended due to changes in the automobile
industry, resulting from the COVID-19 pandemic.
• In the coating business, volumes of orders received fell in line with the trend in theautomobile industry, caused by the spread of COVID-19.

R e s o n a t e 2024

• The audio business saw sales of soundproof rooms rise partly due to stay-at-homedemand.
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

4

Review of the 6th Medium-Term Management Plan Resonate 2021
Earnings Trends

Neither net sales nor operating profit achieved the plan in the first and second fiscal years due to the impact of
COVID-19. However, the Company expects to fulfill the consolidated profit and loss plan for the final year
mainly due to the reopening of global economic activities and stay-at-home demand.
FY ended March2019

FY ended March 2020

FY ended March 2021

FY ending March 2022

Results

Plan

Results

Plan

Results

Plan

OutlookNet sales

723.7

730.0

713.0

740.0

675.2

760.0

835.0

Operating profit

36.6

31.0

29.6

36.0

34.9

42.0

56.0

Operating margin

5.1%

4.2%

4.2%

4.9%

5.2%

5.5%

6.7%

Ordinary profit

39.1

31.0

31.1

36.0

40.0

42.0

58.0

Profit

20.1

19.0

15.4

22.5

25.7

26.5

37.0

ROE

8.4%

7.5%

6.1%

8.3%

9.7%

9.2%

12.0%

[Unit: 100 million yen]

Net Sales
Operating Profit
Trends[Unit: 100 million yen]

Net Sales Plan

Net Sales Results

Operating Profit Plan

Operating Profit Results

900

65

800

55

700

45

600

35

500

R e s o n a t e 2024

25
FY ended March 2019 Results

FY ended March 2020 Results

FY ended March 2021 Results

FY ending March 2022 Outlook
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

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Review of the 6th Medium-Term Management Plan Resonate 2021
Net Sales by Business
Segment[Unit: 100 million yen]
FY ended March 2019 Results

800.0

600.0

585.8

626.5

FY ending March 2022 PlanFY ending March 2022 Outlook

680.0

400.0

200.0

106.0

101.0

110.0
31.8

32.5

45.0

0.0
Musical instrument and education

Operating Profit byBusiness Segment

Precision metal

Other[Unit: 100 million yen]
FY ended March 2019 Results

50.0

FY ending March 2022 PlanFY ending March 2022 Outlook

39.3

40.0

31.5
30.0

25.7

20.0

16.4
11.3

11.3

10.0

0.0

0.0
Musical instrument and education

R e s o n a t e 2024

-10.0

Precision metal

-0.2

0.8

Other
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

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Review of the 6th Medium-Term Management Plan Resonate 2021
Japan

Keyboard (100 million yen)
Instruments 120
Sales Plan by Region

(%)
150

(100 million yen)

North America

120

82.3
80

125

62.1

60

100

150

120

50

68.7

60

China

140

Growth rate of
the number ofdigital pianos
242%

120

108.7

159.8

150

125

100

62.8

60

100

40
75

75
20

0

50
FY ended March 2019 FY ending March 2022

FY ended March 2019 FY ending March 2022
Outlook
Results(100 million yen)

98.0

80

20

0

(%)

125

76.7

80

75
20

Europe

100

40

40

160

(100 million yen)

100

100

180

(%)

(%)

(100 million yen)

150

120

Other

50
FY ended March 2019 FY ending March 2022
Outlook
Results

Outlook

Results

0

(%)
150

Growth rate of thenumber of pianos

Growth rate of thenumber of digital pianos

100
125

125
80

FY ended
March 2019

FY endingMarch 2022

Results

Outlook

$

110.4

109.8

€

130.4

129.9

Rate

100
100

80
60

40
75

40

100

35.5
25.4

75

20

20
0

50
FY ended March 2019 FY ending March 2022
Outlook
Results

R e s o n a t e 2024

60

0

50
FY ended March 2019 FY ending March 2022
Outlook
Results

Impact of a 1-yen depreciation against
the dollar [Operating profit]$▲47 million yen for full year€

40 million yen for full year
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

7

7th Medium-Term Management Plan
Resonate 2024

KAWAI’s Vision Management Philosophy

Aiming to Become a Creative andHighly Favored Company• Create a comfortable and affluent living environment• Provide products and services that put customer satisfaction first• Advance corporate activities for a new era• Take care of employees and aim to become a cheerful company

Aim to become the top brand in piano manufacturing, which is theCompany's founding business, strive to enhance corporate value andbrand power and realize sustainable growth by pursuing customer
satisfaction and developing music culture.
R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

9

Long-term Vision

100-year Brand■Aim for remarkable improvements in profitability andcorporate value by further enhancing selling power, productpower, production power and organizational power toreinforce the KAWAI Brand.
■Work on setting up the earning power of the musicalinstrument and education business, which is the corebusiness, for the purpose of becoming “No. 1 in pianos”.

R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

10

7th Medium-Term Management Plan Positioning* “Speed up growth” was the positioning of the previous mediumterm management plan. However, the positioning of thismedium-term management plan has been changed to “Steady
growth in a new business environment”, taking into consideration
the fact that profit increased considerably ahead of the initial plan
mainly thanks to stay-at-home demand, uncertainty in demandfor keyboard musical instruments after the stay-at-homedemand, disruption in the supply chain, and so on.

2027: The centenary of the Company

100-year Brand
2025-2027
8th Medium-Term
Management Plan

Expansion for the Future2022-2024 Resonate 2024
7th Medium-Term
Management Plan

Steady growth in a new business environment*

2019-2021 Resonate 2021
6th Medium-Term
Management Plan

Further strengthen the foundation for growth

2016-2018 Resonate 2018
5th Medium-Term
Management Plan
R e s o n a t e 2024

Improve earning power and achieve an operating margin of 5% (Plan)
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

11

7th Medium-Term Management Plan Earnings Goal
*Figures announced on February 9, 2022

Earnings
Goal

FY ending March 2022
Outlook*FY ending March 2025
Plan

Net sales

835.0

900.0

Operating profit

56.0

68.0

Operating margin

6.7%

7.6%

Ordinary profit

58.0

68.0

Profit

37.0

44.0

ROE

12.0%

10% or more

109.8 yen
129.9 yen

115.0 yen
125.0 yen

[Unit: 100 million yen]Exchange Rate

US$
EURO

Net Sales [Unit: 100 million yen]
Operating Profit
900
4th Medium-Term Management Plan
TrendsNet Sales
5th Medium-Term Management Plan

Profit for the fiscal year under review is
profit attributable to owners of theparent.

Operating Profit

70

6th Medium-Term Management Plan

60

800

50
40

700

30
20

600

10
500

0
FY03/2014
Results

R e s o n a t e 2024

FY03/2015
Results

FY03/2016
Results

FY03/2017
Results

FY03/2018
Results

FY03/2019
Results

FY03/2020
Results

FY03/2021
Results

FY03/2022
Outlook

FY03/2025
Plan
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

12

7th Medium-Term Management Plan Earnings Goal
[Unit: 100 million yen]

[Unit: 100 million yen]980

Net Sales by
Business Segment

FY ending March
2022
OutlookFY ending March
2025
Plan

3 years
Growth rate

Musical instrument
and education

680.0

753.0

+10.7%

Precision
metal

110.0

Other

45.0

880

835.0

+73.0
Musicalinstrument andeducation

780
680

▲2.0

▲6.0

Precision
metal

Other

Column 3

Column 4 FY ending
Column
5
March
2025

900.0

580

108.0

▲1.8%

480
380

39.0

▲13.3%

280
Column1
FY endingMarch
2022Column 2
Outlook

Plan[Unit: 100 million yen]

Operating Profit
by Business
Segment

FY ending March
2022
OutlookFY ending March
2025
Plan

3 years
Growth rate

39.3

52.5

+33.6%

Precision
metal

16.4

15.6

▲4.9%

Other

0.8

50

40
30

0.5

▲37.5%

+13.2

70

60

Musical instrument
and education[Unit: 100 million yen]

80

56.0
Musicalinstrument
andeducation▲0.8
Precision
metal

▲0.3

▲0.1

Other

Adjustments*

68.0

20
10

Adjustments*

▲0.5

▲0.6

-

* “Adjustments” are intersegment eliminations and corporate expenses not allocated to each segment.

R e s o n a t e 2024

0PreviousMarch
TermMusicalPrecision metal
FY ending2022
instrument andOutlookeducation

Other

Adjustments*
200 million
yen 2025
FY ending
March

Plan
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

13

7th Medium-Term Management Plan Earnings Goal
Japan

Keyboard (100 million yen)
Instruments 120
Sales Plan by Region

150

100

88.3

82.3

80

(%)

60

(100 million yen)

North America

120
100

125

100

86.5

80

120

0

50

125

68.7

60

China

190.5

150

125

100

60

100

40
75

75
20

0

50
FY ending March 2022 FY ending March 2025

FY ending March 2022 FY ending March 2025
Plan
Outlook(100 million yen)
200

(%)

104.8

98.0

100

20

20

(%)

(100 million yen)

150

120

Other

0

50
FY ending March 2022 FY ending March 2025
Plan
Outlook

Plan

Outlook

(%)
150

159.8

Growth rate of thenumber of pianos

Growth rate of thenumber of digital pianos

100

140

125

125
80

120
100

100

80
60

60
40

100

35.5

43.9

75

40

75
20

20
0

50
FY ending March 2022 FY ending March 2025
OutlookR e s o n a t e 2024

150

Europe

80

75

160

(100 million yen)

40

40

180

(%)

Plan

0

50
FY ending March 2022 FY ending March 2025
Plan
OutlookFY endingMarch 2022

FY endingMarch 2025

Outlook

Plan

$

109.8

115.0

€

129.9

125.0

Rate

Impact of a 1-yen depreciation against
the dollar [Operating profit]$▲52 million yen for full year€

49 million yen for full year
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

14

7th Medium-Term Management Plan

Overview

7th Medium-Term Management Plan Overview
Basic Policy
Build a rock-solid system to mark the centenary by growing steadily, compatible with the new
business environment, with the aim of establishing a 100-year brand.
Draw the future that KAWAI wishes to bring into reality by seeing “far beyond” the centenary.

Key Strategies
In order to grow steadily in the new businessenvironment, we will focus our efforts on thefollowing:• “Evolving customer touch points”• “Strengthening domains of growing

demand”• “Handling cost increases”
R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

16

7th Medium-Term Management Plan Overview
Basic Strategies
Musical instrument and education business
Aiming to further improve earning power andexpand business, we will speed up reinforcementof the following:• “Brand Power”

Resonate2024• “Selling Power”• “Products and Services Power”• “Production Power”• “Organizational Power”

Precision metal business
Ramp up profits by "expanding orders received for new products", "accelerating cultivation of
new customers", and "establishing a system for increasing production"
R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

17

Key Strategies

7th Medium-Term Management Plan Key Strategies
We will concentrate our efforts on the following strategies in order to grow steadily in the dramatically-changed businessenvironment due to the impact of COVID-19.

Evolving customer touch points
Implement promotional measures tailored to changes in customer purchasing
behavior.
(Communicate the value of products and services to "as many target customers as possible" ina way that is "as easy to understand as possible" by fusing real and digital measures.)

Strengthening domains of growing demand
Broaden the lineup of product categories in particular whose demand has
grown due to changes to lifestyles (hybrid products and digital pianos) and expand
and reinforce their production system.

Handling cost increases
Improve productivity and set appropriate prices in order to address rising costs,
resulting from surges in the cost of materials, such as semiconductors, andoverseas transportation fees.

R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

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Basic Strategies(Musical Instrument and Education Business)7th Medium-Term Management Plan Basic Strategies(Musical Instrument and Education Business)

Strengthening Brand Power
Further strengthen the KAWAI brand toward building a 100-year brand.
Evolve communication styles with customers.
• Establish a production-line visitor tour route and a test-playvenue for “Shigeru Kawai” at Ryuyo Plant• Double down on digital marketing
Elevate the presence of the KAWAI Brand at international pianocompetitions, prestigious music colleges and famous halls.
Improve the brand image by deepening ties with distinguishedpianists and artists.
Discover and support the next generation of promising artists
through the “Shigeru Kawai International Piano Competition”.
©D.Golik / The Fryderyk Chopin InstituteR e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

21

7th Medium-Term Management Plan Basic Strategies(Musical Instrument and Education Business)

Strengthen selling power(manufacture and sale of musical instruments)
Add value to products and strive to raise market share in each market
Mature markets (Japan, North America and Europe)• Increase sales of high value-added products including “Shigeru Kawai”
and hybrid pianos• Strengthen brand communication power and customer touch points bymaking better use of directly-managed stores• Deepen co-prosperity relationships with agents and expanding sales
channels

Chinese market• Expand sales channels in growth areas• Reinforce selling power by refurbishing or replacing stores in mature areas• Elevate the presence of the KAWAI Brand within dealers

Emerging markets

Kawai Hamburg

R e s o n a t e 2024

• Deepen relationships with new business partners and utilize musicclasses in Southeast Asia
• Tighten relationships with business partners and cultivate new
relationships in Latin America, the Middle East and Africa

Kawai Dallas
Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

22

7th Medium-Term Management Plan Basic Strategies(Musical Instrument and Education Business)

Strengthen Selling Power (Music Education)
Raise brand recognition and create demand for keyboard musicalinstruments by promoting and popularizing music cultureJapan• Select and concentrate on high-demand areas• Expand music classes centered on increasing the number of pianocourse students

Overseas: Advance overseas expansion that is important froma medium to long term perspective< Southeast Asia >• Appeal to educational institutions about the necessity of musiceducation and development of instructors• Introduce and expand group lessons tailored to each country's
income level• Hold grade tests and competitions under the KAWAI Brand<China>• Continue to strengthen collaboration with the Soong Ching Ling
Foundation concerning music classes• Expand and strengthen the tuning training business by utilizing online
methods and developing tuning contract services
R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

23

7th Medium-Term Management Plan Basic Strategies(Musical Instrument and Education Business)

Strengthen Products and Services Power
Constantly search for “customer satisfaction” by leveraging
the technology unique to piano manufacturers

Continue research on the raw material and basic
development level
Strengthen planning and development power that “starts
from customers” through market surveys
Set competitive prices based on a marketing approach
Expand and reinforce product lineups by introducing digital pianos
with its large growth potential in the affordable price range

Expand and reinforce the system for high-quality aftersales service through MPA*
*MPA stands for “Master Piano Artisan”, an internal qualification awarded only to the most highly skilled piano technicians.

Shigeru Kawai Piano R&D Laboratory

R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

24

7th Medium-Term Management Plan Basic Strategies(Musical Instrument and Education Business)

Strengthen production power
Strengthen QCDF* in the global production system(Efficiently produce and supply quality products in a timely and stable manner)*Quality, Cost, Delivery, Flexibility

Pass KAWAI's unique technology, cultivated over many years, tothe next generation and globally expand the production of
keyboard instruments that deserve a 100-year brand

Promote investment in human resources and equipment andfacilities in order to improve quality and productivity
Continuously carry out cost reduction activities mainly byautomating production processes
Expand and reinforce production lines and extend plants in response
to increasing demand for “Shigeru Kawai” and digital pianos
Establish a stable supply system from the prior process with an eye on
geopolitical risks and a future system for increasing production volumes

Kawai Indonesia Plant No. 4

R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

25

7th Medium-Term Management Plan Basic Strategies(Musical Instrument and Education Business)

Reinforce organizational power
Review the organization from a functional perspective, build
an organizational system and allocate the personnel
necessary for corporate expansion

Enhance employee engagement by focusing on education
and welfare programs in line with the times
Promote “Health and Production Management”, whichempowers employees to demonstrate their skills in theirown way by being continuously certified as a Health andProduction Management Outstanding Organization”
Prepare an “environment that allows anyone to work withoutworry” for promoting women’s participation andadvancement, and diversity
Focus on development of human resources to increase thepool of human resources who can work actively on the
global stage and develop Kawai into a robust company
Enhance company-wide productivity and improve efficiency
in routine work
R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

26

Basic Strategies(Precision Metal Business)7th Medium-Term Management Plan Basic Strategies(Precision Metal Business)
Metal Business
Increase received orders for new car-mounted
products and establish a system to increase
production
Expand existing products into new areas andreceive orders for new products
Accelerate capital investment to improve productivity

Acoustic Business
Expand products for personal use and cultivate the corporate
marketDevelop new products by pursuing comfortable acoustic space
Establish a production system to meet expanded sales
R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

28

Business Portfolio Strategy
Realize “sustainable and steady growth” even in highly uncertain times by concentrating management
resources on “stable growth markets” for which Kawai has “high competitiveness”.
Musical instrument and education business

Precision metal businessThis is the origin and core business of the Company. This business inherited
the founder’s spirit of “making the world’s No. 1 piano” and has kept releasing
innovative products to society.

The Precision Metal Business, which has grown by utilizing the technology
cultivated in pianos, has now become one of the mainstays in the business
management of the Company.

Kawai has the world’s No. 4 market share by sales of piano and digital piano*.
Furthermore, Kawai pianos have been adopted in famous international pianocompetitions, boasting globally high recognition and competitiveness.

Especially, the Business has provided major car manufacturers in Japan andoverseas with high value-added components, leveraging high-levels oftechnological capabilities.

*Based on research by the Company

In anticipation of growth in the car-mounted market, the Business is further
exploring the car-mounted component market.

Other 5%

Total investments for three years: 7,000 million yen (double the previous
medium-term management plan)

Precision
metal
13%

Musical instrument
and education
82%

R e s o n a t e 2024

Composition of Sales
by Business Segment(Outlook for 95th
term)

Ordinary investments(4,500 million yen)

Basic investments in existing businesses for renovation andproductivity improvement(Almost equal to the level of depreciation)

Strategic investments(2,500 million yen)

Expansion of the digital piano plant/renewal of the flagship store
Extension of production lines for car-mounted components

Intellectual property
and HR investments(Expenses)

R&D/Marketing/Strategic HR investments
Artist relations

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

29

Formulation of Sustainability Policy
The Kawai Group has established a sustainability policy and strives to enhance its medium- tolong-term corporate value.
Sustainability Policy
In realizing the management philosophy “Aiming to Become a Creative and Highly Favored Company ... ”, we will strive to achievesustainable development as a company by ensuring harmony with the global environment and society and moreover, the soundnessof management through corporate activities for the purpose of making quality musical instruments and contributing to music culture.
In parallel, we will help bring a sustainable society into being in cooperation with customers and all other stakeholders.

We will protect the global environment and resources from a global perspective in each of our business fields,
and do our utmost to realize a truly generous spirit and affluent society.

As an "excitement producing business" that delivers sensation and satisfaction through music, we will build good
relationships with all stakeholders with the aim of building a rich and compassionate society.

To achieve the sustainable enhancement of our corporate value, we will comply with laws, regulations and otherrules and engage in putting sound and transparent management into practice.

R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

30

Environmental and Social Initiatives
To address issues related to sustainability, we will concentrate our efforts on the environmental and social
issues and work towards growing sustainably as a company.

Global Environmental Initiatives

Diversity promotion

Promotion of Music Culture

Afforestation activities in Japan and overseas• Afforestation of saplings in Indonesia• Implementation of initiatives to achieve work-lifebalance, centered on the “Love it!” project for
promoting women's participation andadvancement

From 1971
Over 2,000 Kawai Concerts were held throughout
Japan, inviting a variety of performers.

(From 2007 onwards, about 700,000 trees in total havebeen planted.)• Tree planting and nurturing in the Tohoku Region
to support the restoration of coastal disasterprevention forests (from 2015)• Setting of basic policies and numerical targets toensure the diversity of core human resources

From 2017
Shigeru Kawai International Piano Competition
held to nurture the next generation of pianists

Reduction of environmental load
• Mitigation of global warming (reduction of CO2
emissions)• Effective use of resources (reduction of waste)

Numerical
targets
Ratio of women in
12.5%
managerial positions
Ratio of women in
20%
supervisory positions
Number of foreign
15 persons
employees
Number of employees
recruited mid-career 50 persons©D.Golik / The Fryderyk Chopin Institute*Completion timing: End of March 2025

R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

31

7th Medium-Term Management Plan Shareholder Return

Basic Policy

Taking into account the business environment going forward and businessdevelopment, the Company’s basic policy is set as providing flexible shareholder
returns aimed at delivering stable dividends to shareholders and enhancing capitalefficiency while securing internal reserves to stabilize the management base, andthe Company will strive to improve the total return ratio.

R e s o n a t e 2024

Copyright 2022 Kawai Musical Instruments Mfg.Co.,Ltd.

32

The Company's earnings forecasts and future predictions described in this document are based on information available to the Company atthe time of preparation. Actual results and achievements may differ materially from these forecasts due to changes in various external andinternal factors, such as economic conditions, the intensification of selling competition and risks associated with intellectual property rights.