Takamatsu: Today, I would like to explain the new medium-term business plan for the start of the fiscal year
starting January 21, 2022.
As the name Mid-term Business Plan 2026 indicates, this plan is a 5-year plan covering the period from the
new fiscal year of 2022 to 2026. First of all, I would like to reiterate the Group Mission 2030, which wasannounced at the beginning of the current Mid-term Business Plan 2021. After that, I will proceed to explain
the Mid-term Business Plan.
The announcement of financial results for FY2021 is scheduled for March 4, 2022. Therefore, we would liketo ask for your understanding that our review of the current Mid-term Business Plan is mainly qualitative innature.

Now, please take a look at page 4.
Our group philosophy is creating happiness and prosperity, together with people and with society. To achieve
this goal, the DyDo Group will continue to embrace new challenges in a dynamic way. It expresses the spiritof coexistence and co-prosperity that we have cultivated through the growth of our business in collaboration
with many stakeholders, and our commitment to continue to take on challenges in order to continue to growin the future.
In addition, the group slogan is Offering delicious products for sound mind and body. Our mission is to provide
a healthy life for all people, both physically and mentally, by promoting business based on our philosophy.

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At the same time as the start of the current Mid-term Business Plan, we formulated Group Mission 2030, for
DyDo Group to create enjoyable, healthy lifestyles for people around the world, as an ideal of where, andwhat, we want to be for the near future, in order to realize the group philosophy.

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In order to achieve this, we have drawn up a roadmap that divides the period up to 2030 into 3 stages.
As the vending machine market, which is our core business, is expected to shrink due to a declining populationand labor shortage, we anticipate a decline in profit levels in the future if we carry out business as we go. Our
plan is, therefore, to invest for the future growth first, even though profitability might temporarily decline,
and get on a growth path in the latter half of the period.
Until the current FY2021, as the first step in the process of strengthening the foundation and investment stage,
we have been working on 3 basic policies: focusing on improving profits and implementing robust
management for existing businesses, making judgments about business continuity to facilitate strategic
management in International Beverage business, and implementing a growth strategy to achieve Group
Mission 2030.

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This slide shows the main achievements of the current Mid-term Business Plan.
In the COVID-19 pandemic, the business environment surrounding the vending machine business has changed
significantly, but for us, who have been making preparations to strengthen our business foundation, we
believe that we have been able to use these changes as a tailwind and make significant progress in our efforts
to strengthen our competitiveness.
In addition, the supplement mail-order business is a new business launched within DyDo DRINCO in 2012, andduring this Mid-term management period, we completed the recovery of the initial investment associatedwith the launch of the business, and it has grown into a business that earns solid profits.
Second, in our overseas business, we have been focusing on how to put our existing businesses on a growth
track, rather than expanding into new areas. Unfortunately, we have made the decision to withdraw from the
Malaysian business, but in Turkey, although the business has been greatly affected by the COVID-19 pandemic
and the weakening of the lira, the business foundation has been steadily established, with significant growth
mainly in the mineral water business.
With regard to the investment strategy, we executed capital investment to expand the contract system of
DAIDO Yakuhin (pharmaceutical-related business). As for the creation of new businesses in the healthcare
field, we are making steady progress in the orphan drug business, which we entered in 2019, having acquired
2 licenses. Although we did not realize any M&A projects in the healthcare field, we believe that we were able
to increase the accuracy of our business evaluations and deepen our understanding of the role we should playin the healthcare field as we proceeded with the consideration of multiple investment projects.

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We could not post high net sales due to sluggish demand caused by the COVID-19 pandemic, as well as by the
weak Turkish lira in yen terms overseas. However, we believe that we have been able to maintain a certain
level of profit despite the investments we have made.

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Next, this section describes in detail the progress made in accordance with the 3 basic policies of the Group
Mission 2030, as well as the achievements and challenges over the past 3 years.
The most significant achievement of the past 3 years has been the progress we have made in our efforts toestablish our superiority in the industry by reforming our vending machine business, and the path we shouldtake has become clearer.
As a result of the COVID-19 pandemic, the environment surrounding the vending machine business haschanged drastically, and the attitude of our competitors toward vending machines has also changed slightly.
However, we have been working on the reform with the belief that this is what we should do.
Although business activities were temporarily restricted to prevent the spread of infection, maintaining thevending machine operations gave us a strong sense of the mission that vending machines are theinfrastructure of the community. In the sales of new vending machine installations, we have been able toimprove the quality of our sales activities, including the establishment of an inside sales team, and we believethat we have been able to continue aggressive sales development without ever decreasing the volume of ouractivities, even though face-to-face sales activities have been limited.
Because we had a clear idea of what we needed to do, we were able to keep moving in the right direction. I
believe this is the result of our efforts. Going forward, we will work to improve our per-machine operations
as well as focus on the strong re-growth of our Domestic Beverage Business as our top priority.

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The COVID-19 pandemic changed the way we work and our attitude toward it. We were one of the firstcompanies to introduce telecommuting and flextime systems, and we have established them as a permanentsystem rather than a temporary one.
In addition, we continue to actively recruit mid-career workers in order to promote new businesses andrevitalize existing businesses. We would like to increase employee engagement by ensuring that our diverse
workforce is capable of realizing our company's philosophy, by instilling our philosophy in them, and by
guiding them to meet the philosophy.
In addition, countries around the world have been making steady progress toward achieving the common goalof a sustainable global environment, and the awareness and interest of society and people have been steadily
increasing.
The DyDo Group has also formulated the DyDo Group SDGs Declaration, and is first of all taking steps to raise
employee awareness. By taking the initiative in implementing initiatives, we will lead to awareness andbehavioral changes among consumers, business partners, and other stakeholders, which will lead to socialchange. We hope to be a group that leads such social change.

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Next, I would like to talk about our perceptions of the changes that have occurred over the past 3 years andthe changes that may occur in the future.
Needless to say, the business environment has changed dramatically due to the COVID-19 pandemic. I think
the most important change is that awareness of sustainability is increasing among global citizens, at least at
the national level in developed countries. In order for companies to continue and grow their business, it is
becoming more and more necessary for them to talk about their strategies as well as the sustainability ofsociety as a whole.

8In the future, it is expected that demand for products that contribute to one's health and are friendly to theenvironment and the earth will grow, and values will further diversify, creating new needs. We would like to
see these changes in the environment and consumer behavior as business opportunities for growth.

9In this context, we have identified material issues, a new set of management issues of high importance to us,
from the perspective of what we must do specifically to realize the Group Mission 2030.
Since our inception, we have grown our business through partnerships with our business partners, location
owners, and other stakeholders. In this spirit of co-existence and co-prosperity, we believe that we have beenable to continue to grow since our establishment because we have been able to provide value that is close to
our customers, delivering what they are looking for in a place close to them.

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The 8 material issues have been defined as the most important management issues to achieve our ideal statein 2030 and sustainable growth.
We need a functioning governance and the strength of our human resources to support the organizational
infrastructure. In addition, we are naturally required to promote DX, contribute to a decarbonized andrecycling-oriented society, and provide safety and security. Based on this, we believe that the source ofgrowth will be the evolution of the vending machine business that is close to our customers, the provision of
products that are delicious to the mind and body, and the continued provision of prescription drugs as thevalue that the Group provides to society.

11In order to identify those material issues and further incorporate the perspective of sustainability into ourbusiness activities, we have set a new CO2 emission reduction target for the Group as a non-financial KPI for
creating environmental value.
We will continue to lead the industry in our efforts to achieve carbon neutrality by 2050 in the vending
machine business, which is our core business. As a financial KPI for economic value creation, we have set a
new consolidated ROIC of 8% or higher.
Toward the year 2030, the DyDo Group will enhance its social, environmental, and economic value, andcontribute to the realization of a sustainable society where people around the world can live happy andhealthy lives.

12Now, on January 20, the current Mid-term Business Plan will end and we will enter the next Mid-term Business
Plan, the growth stage. We have positioned the new stage as a stage for business development from a longterm perspective while focusing on the re-growth of the Domestic Beverage Business, and have set a 5-year
period. The impact of the COVID-19 pandemic on our business, as well as the recent surge in raw material
prices, has led to an increase in costs, which has been a downward pressure on profits. On the other hand,
we will continue to make investments that will promote stronger growth as we make steady progress in ourefforts to re-grow our Domestic Beverage Business.
As a result, the timing of the rise in profit growth is expected to be slightly delayed from the timing initiallyenvisioned, but we are determined to secure the path to renewed growth and link it to the next stage of rapid
progress.

13This slide shows our current business portfolio and the direction of our growth.
We have color-coded each of the following 3 themes: innovation in the Domestic Beverage Business,
expansion of Overseas Business development, and building a second pillar in the non-beverage business, todistinguish between businesses that should improve growth and profitability in the medium term andbusinesses that should be nurtured from a long-term perspective for the future. The vertical axis shows theCompany's sales growth potential, and the horizontal axis shows the Company's profitability.
In the Domestic Beverage Business, which is located in the lower right corner of this portfolio, the vending
machine market, which is the main battleground, continues to shrink, and the trend toward oligopoly by top
manufacturers is expected to accelerate in the future. We are confident that through our efforts over the past
3 years, we will be able to demonstrate our strength in the vending machine market and continue to makeour presence felt as a top runner in the industry. We believe that re-growing this business, which is highly
profitable and is the cash cow of the Group, is the most important pillar of the new Mid-term Business Plan.

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As the path to re-growth of the Domestic Beverage Business and businesses to be invested and nurtured
become clearer, what we must do above all is to strengthen our earning power. We have changed the KPIfrom operating margin to ROIC in order to make each and every employee aware of asset efficiency and tobuild a strong organization.
We have set the final target figures for the growth stage, Mid-term Business Plan 2026, and the achievement
stage, respectively, to enhance the earning power of the entire DyDo Group.

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Next, let’s look at measures to address our material issues Here is a brief introduction to the foundation. The
first is corporate governance, which is the most important aspect of the organizational foundation.
We will promote each employee's understanding of the Group's philosophy, which is the raison d'etre of the
DyDo Group, as well as the newly formulated material issues, and further instill the values represented by the
DyDo Group philosophy. In addition, we will continue to strengthen our business management with anemphasis on capital efficiency based on ROIC, as well as strengthen our governance system as a group.

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We also believe that it is important for each and every employee to embody a joyful and physically andmentally healthy lifestyle in order to realize our group philosophy and Group Mission 2030.
We aim to increase the engagement of the Group's employees by securing and developing the humanresources who will lead the next generation, developing systems and environments that enable diverse
human resources to work and play actively regardless of nationality, age, gender, or career, and fostering a
corporate culture that encourages further challenges in order to remain a strong organization.

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Next, it is also essential to link the rapidly advancing digitalization to the growth of the Company with a senseof speed.
In the Mid-term Business Plan 2026, we will build and introduce the next core system, which is expected tosupport new businesses and operations, strengthen IT infrastructure, such as networks and information
security, reform existing operations using digital technology, and promote DX.
The Group's goal of DX is not limited to initiatives in the digital and IT sectors, but also includes initiatives ineach of the Group's business domains, in which each company and each sector proactively transforms its
business practices and processes. In the course of these efforts, we would like to incorporate digitaltechnology, the latest knowledge and ideas to transform existing businesses and create new businesses.

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Lastly, I would like to talk about our contribution to a decarbonized and recycling-oriented society.
As I mentioned earlier about our goal of becoming carbon neutral by 2050 in the vending machine business,
we will aim to achieve Scope 1 and 2 carbon neutrality by 2030 in the Domestic Beverage business with regard
to CO2 emissions. Other major subsidiaries of the Group in Japan will aim for a 50% reduction. For more details
on our initiatives in the Domestic Beverage business, please refer to the release issued today.
In addition, DyDo DRINCO has set 3 goals as priority issues for the realization of a recycling-oriented society
in 2020. In addition to promoting our own initiatives, we will also aim to change the behavior of our
stakeholders, including our business partners, by raising the awareness and actions of each and every
employee. At the same time, we also announced our endorsement of TCFD today. As a global citizen, we willcontinue to fulfill the responsibilities that only a corporation can fulfill.

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In 2030, the DyDo Group will evolve into a corporate group that creates enjoyable and healthy lives for people
around the world by creating value for each of its businesses.

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I will now briefly talk about the Mid-term Business Plan 2026, including strategies for each segment.
In the new Mid-term Business Plan, we have set basic policies in line with the 3 policies of the Group Mission
2030. The policies are renewing growth in the Domestic Beverage business, reformulating our international
business strategy, and strengthening and developing non-beverage segments. By promoting these 3 policies,
we will put the Company on a strong growth trajectory so that it can make a great leap forward in the nextstage.

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As management indicators to measure our progress in these policies, we have decided to set sales growthrate, consolidated operating profit ratio, and consolidated ROIC.
As the depreciation and amortization will increased along with the increasing investments, the period will notsee a large profit growth. However, as you can see on the bottom left, we will steadily increase cash flow andstrengthen our earning power.
An image of growth is shown in the lower right corner. The vertical axis shows net sales and the horizontal
axis shows ROIC, with the size of the circle indicating the absolute amount of operating profit.

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We believe that the most important specific strategy based on the basic policies is to ensure the re-growth of
the Domestic Beverage Business.
As specific measures in the Mid-term Business Plan 2026, in the vending machine channel, we will further
strengthen our sales capabilities by utilizing inside sales and increase the number of vending machines inoperation. And we will work to transform our profit structure by quickly establishing a smart operation system,and establish a firm advantage in the vending machine market.
In addition, in order to develop and provide products that are good for the body and soul, we will implement
measures to increase the appeal of vending machines, such as promoting cashless payment and creating abrand for DyDo vending machines as stores.
As for overseas, we will strive to develop a global brand that people will recall as a healthy brand when they
think of DyDo, not to mention growth in each of our bases.
And we believe that it is important for us to have a revenue base outside the beverage business in order toachieve sustainable growth in the future. In order to achieve this goal, we will continue to strengthen anddevelop our non-beverage healthcare and food businesses.

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I will now explain each segment. As I have already touched on the direction of the strategy, I will focus on
supplementary explanations on the concept and KPIs.
First of all, in the process of identifying the material issues of the Group, we have defined the ideal state andmaterial issues of each business, and have set strategies and KPIs associated with them.
First of all, in the Domestic Beverage Business, we have set our vision as shown here: In the vending machine
market, we will provide new value through constantly taking on challenges and co-creating and so continue
to lead the industry. As KPIs, we have set targets for the number of vending machines that generate sales andsales per machine. In addition, to reduce environmental impact, we have set sales per operation staff as anindicator for productivity improvement.

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Next is the Overseas Business.
Overseas, we currently need to pass the increased raw material costs caused by the weak lira on the selling
prices in order to improve profitability. However, in the medium to long term, we would like to build a strong
business model that enables us to naturally hedge foreign exchange risks within the Turkish business as wellas to grow the top line by expanding the export business, where the weak lira is a tailwind.
In addition to measuring the growth rate for each area, the KPIs include the proportion of foreign sales, which
is an important strategy in Turkey, in the Turkish business. In addition, we would like to create a global brandthat supports the health of people around the world, as stated as, where, and what, we want to be, whileleveraging our large existing base in Turkey and China.

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From the next slide, I will explain the non-beverage area. First of all, I would like to talk about DyDo DRINCO's
home shopping sales of supplements.
Although this business is currently included in the Domestic Beverage Business, we have set separate
strategies and targets for this business because it is of a reasonable size and the business structure is different
from the beverage business.
Although sales of Locomo Pro, the mainstay of this business, are steadily increasing every fiscal year, we
believe that there is still room for growth compared to other companies' supplements with strong sales. As apartner that accompanies the irreplaceable second lives of people who care about health care, we willcontinue to provide products and services that exceed expectations.
In the process of aiming for further sales growth, we would like to increase the number of regular customers,
make them loyal to DyDo as fans, and develop a second pillar product following Locomo Pro.

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Next, I would like to talk about the Pharmaceutical-related Business.
Although we do not have official statistical data, we believe that Daido Yakuhin is in the top position as acontract manufacturer of pharmaceutical and quasi-drug drinks. We believe that we are able to achieve thisbecause of our high production capacity and the high level of trust we have received from domestic
pharmaceutical and cosmetic manufacturers regarding the quality of our products.
However, with the establishment of the Kanto Plant, we still have a lot of capacity left. We will increase thenumber of orders we receive and the utilization rate by capturing the needs of major manufacturers for BCP
measures and large-lot orders that arise as they downsize their own manufacturing operations. While it is acontract manufacturer, it also focuses on its own development and can make proposals to manufacturers,
which is one of Daido Yakuhin's strengths. In the future, we will continue to explore new materials and new
formulations, and contribute to the launch of new products by contract manufacturers, thereby solidifying
our position as the number 1 contract manufacturer in the health and beauty field.

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Next is Tarami, which is responsible for the Food Business.
Over the past 3 years, it has been able to increase sales and expand its market share even as the jelly market
shrank, solidifying its position as a top manufacturer and improving its profit margin, which had been an issue.
On the other hand, the intensification of competition across business categories due to the diversification of
the dessert market and the large seasonal fluctuations in sales still remain as challenges.
We will continue to strive to improve productivity by decreasing the product loss rate and increasing thenumber of products manufactured, while at the same time, we will develop new business areas and expand
new sales channels in new categories and overseas export business, by utilizing the excellent fruit and jelly
processing technology we have cultivated to date.

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Finally, I will talk about the Orphan Drug Business.
Since the establishment of DyDo Pharma, Inc. in 2019, it has been making steady progress as a company inthe prescription drug business, including the hiring of professional personnel, the development of ourorganization, and the acquisition of a licensing agreement in 2021.
The business will begin to contribute to profit from the next achievement stage at the earliest. However, we
will continue to nurture this business from a long-term perspective, based on our mission to provide new
drugs with high social significance and treatments for patients suffering from rare diseases for which there
are no treatment options.

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Lastly, I would like to talk about financial discipline and fund allocation in executing investment strategies.
This time, we have added consolidated ROIC as a new management indicator, and it is our natural
responsibility to ensure that the level of ROIC is higher than WACC. In addition, we expect to generate morethan JPY60 billion in cumulative cash flow over the next 5 years, which we plan to continue to allocate mainly
to investments in vending machine-related assets to ensure the renewed growth of our Domestic Beveragebusiness.
In the current Mid-term Business Plan, M&A was one of the strategies to achieve growth in the healthcare
field, but in the future, we will use 2 years of operating cash flow as a strategic investment limit to seek new
growth opportunities, not only in the healthcare field but also in overseas expansion, and make appropriate
decisions for each individual project. Please understand that this amount is not included as a premise for sales
in the Mid-term Business Plan.
Finally, with regard to shareholder returns, we will continue to maintain our policy of stable dividends, but
we will aim to shift to a trend of increasing dividends as our business performance progresses.

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As I have explained above, in this growth stage, we will improve the ability to generate cash flow, especiallyin the Domestic Beverage business, and restructure our overseas strategy. In the non-beverage area, we will
strengthen our existing businesses, such as the Food business and the Pharmaceutical-related business, whichis engaged in the contract business, as well as develop the mail-order supplement business and the orphan
drug business. We will nurture these businesses so that they will lead us to the next stage of achievement in
2027.
Please look forward to the DyDo Group in the future. Thank you for your attention.

Disclaimer
This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail. DyDo Group
Holdings, Inc. assumes no responsibility for this translation or for direct, indirect or any other forms of damages
arising from the translation.

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