ANALYSTNETCompanyReport
GCCManagement™AnalysisReport

DANTO HOLDINGS CORPORATIONTSE Standard Securities Code: 5337

2024/6/11

GCC Management™ analysis suggests a possible price target of 1,732 yen.
Increase in value of tile business and expansion of investment business through collaboration with designers.
This report will analyze corporate value from the perspective of “GCC Management™,” a framework developed by J-Phoenix Research Corporation (“JPR”) that emphasizes the threeelements of Growth (sales growth), Connection (improved connections between people and business = higher return on capital), and Confidence (improved trust = lower businessrisk). This report analyzes corporate value from the perspective of GCC Management™, which emphasizes the three elements of GCC Management™. This report is based on JPR's
own projections based on disclosed materials, not on interviews with the company.

High possibility of profitability after 2025

Basic Report

DANTO HOLDINGS CORPORATION (“DANTO HOLDINGS”) was founded in 1885 on Awaji
Island in the tile business (construction ceramics, etc.) to produce and sell tiles for buildings.
The key points for DANTO HOLDINGS in terms of shareholder value are (1) turning around its
tile business, which has been significantly in the red, and (2) the upside of its investmentrelated business, which has been expanding since it became a pure holding company in 2006.
With respect to (1), we believe that JPR is on track to return to profitability through structuralreforms and rationalization, expansion of direct sales via the Internet, improvement of design
quality in collaboration with famous designers, and sales expansion through participation inprominent overseas trade fairs. Looking at Q1 FY12/2024, sales are up 16% YoY, and theoperating loss is shrinking. We expect further improvement in the future due to the above two
factors.

Edited and written by
J-Phoenix Research, Inc.
www.j-phoenix.com
Osamu Miyashita and Rin Komatsu

Company Profile

Human network and fundraising capacity
The above two points are supported by the support of DANTO HOLDINGS' major shareholders
and its ability to raise funds flexibly. Chairman Tomohiko Kato is strong in human networking
and has been encouraging investors to invest in DANTO HOLDINGS. As a result, DANTOHOLDINGS has been able to aggressively raise funds and management resources, including athird-party allocation of new shares to Honolulu, Hawaii-based TAT Capital Fund LLC (“TAT”)
in January 2023. Recently, on May 15, DANTO HOLDINGS disclosed a fundraising using stockacquisition rights, which was well received by the market, with the share price rising 4% fromthe closing price on the following day. In this report, we analyze the business of DANTOHOLDINGS, focusing on its three subsidiaries, and also analyze the companies in which
venture capitalists have invested. The report also analyzes the portfolio companies from theperspective of their future prospects and shareholder value (Reference: DANTO group's
notable portfolio companies).

Target share price: 1,732 yen

Location of Head
OfficeKita Ward, Osaka
City

Representative

Tomohiko Kato andTatsushi Maeyama

Date of
Establishment

1885/8/15

Paid-in Capital

JPY 2.85 billion

Date of Listing

May1,1949

URL

https://www.danto.co.jp/

Industry

Glass and stone
products

Key Indicators As of May22,2024

Under the above scenario, shareholder value was estimated using the “Excess Profit Method”(see Appendix 2) based on the GCC Management™ framework, and if 10 years of growth value
is factored in, shareholder value is estimated to be 62.9 billion yen, or approximately 2.6 times
the closing market price on May 4, 2024.
If the growth value for 10 years is factored in, the shareholder value is estimated to be 62.9
billion yen, approximately 2.6 times the market capitalization based on the closing price on
May 4, 2024, or 1,906 yen in terms of the share price. Considering the upside of the venture
capital investment (estimated at over 70 billion yen in the reference material), JPR believes
there is a good chance that this share price will be realized within two years. This price does
not take into account the impact of the stock acquisition rights; the target price would be
1,732 yen, assuming an increase of 3,300,000 shares as a result of the fundraising in May.

Stock Price

JPY 80252-week high

JPY 1,337

52-week low

JPY 562

Shares Outstanding

33,000,000stocks

Trading Units

100stocks

Market Capitalization JPY 26,466million

Target share price is 1,732 yen when dilution is taken into accountCompany Projected
Dividend

JPY 0

Estimated EPS basedon net income

JPY 1.85

Forecast PER

437 times

Actual BPS(As of December 31, 2023)

3.03times

Actual PBR

Performance trends

JPY 264.99

Net sales

compared toprevious
periodOperatingincomecompared toprevious
periodOrdinary
incomecompared toprevious
periodNet income

compared toprevious
periodEPS(Millions of yen)％

(Millions of yen)％

(Millions of yen)％

(Millions of yen)

％

(yen)

Stock prices
High price (yen)Low price (yen)FY12/2020 Results

5,415

-11.9

-1,181ー-1,230

ー

-195

ー

-6.60

1,065

58

FY12/2021 Results

5,018

-7.3

-898

ー

-1,031ー-967

ー-32.61490

190

FY12/2022 Results

4,644

-7.4

-1,044ー-1,082ー-370

ー-12.49417

203

FY12/2023 Results

5,554

19.6

-860

ー

-954

ー

-955

ー

-29.471,000

206

FY12/2023 1Q Results

1,388

24.2

-146

ー

-176

ー

-193

ー

-6.05

565

206

FY12/2024 1Q Results

1,623

16.9

-106

ー

-128

ー

75

ー

2.31

1,337

742

FY12/2024 Plan

6,300

13.4

-290

ー

-280

ー

60

ー

1.85

ー

ー

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities. JPR shall not be liable for any
consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities and other transactions rests solely with the investor. Please refer to thelast page of this report for more information on precautions.

1 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

1. Investment Summary
Shareholder
value analysis

Maximum upsidein market
capitalization
estimated at
62.9 billion yen

Estimation using the excess profit method
Up to 2.6x upside depending on realization of growth scenario
Based on the future prospects regarding the business development of DANTOHOLDINGS CORPORATION, JPR estimated shareholder value using the “ Excess
Profit Method” (see “Appendix 2”) according to the GCC Management™ framework.
The following chart visualizes the framework of the qualitative and quantitative
story and the results of the trial calculation. Assumptions are explained on the next
page and beyond. We estimate a maximum upside of 2.6 times depending on therealization of the growth scenario, and a maximum market capitalization upside of
62.9 billion yen.

■ Qualitative story framework and corporate value creation cycle
Qualitative story framework

Growth: Turnaround in tile business and upside in investment businessConnection:Leverage human networks and investments
Confidence: Contributing to society and creating local jobs throughinvestment
Support from Awaji Kotsu Group and U.S. funds and flexible financing▼
Tile business to web commerce & real estate DX & investment in promising ventures▼
Turnaround of tile business & expansion of scale of real estate business & capital gain▼
Activation of IR activities▼
Visualization of long-term growth story of "Turnaround and Future Prospects"▼
To stabilize stock price & achieve higher market capitalization

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell
securities. JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility forsecurities and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

2 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024■ Shareholder Value Analysis (Billions of Yen)
Quantitative Story Outline①Marketcapitalization

246② Maximum
upsideValue gap 383
Maximum upside to market
capitalization

＝

2.6
times

629

② Maximum upside = shareholder value that reflects the 10-year growth scenario tothe maximum extent possible¹.
③ Shareholders' equity 83 + ④ Excess profit value - 66 + ⑤ Growth value 612 =③
Shareholders' equity④ Excess
profit value⑤Growth value

83

-66

612

629

Source: Compiled by JPR. Market capitalization is based on closing price on February 8, 2024.
1: Fractions do not match due to rounding.
Source: JPR.

Shareholder Value Structure and Value Gap Analysis Based on the Excess Profit■ Method (Details)

Source:JPR※A more detailed assumed financial model is provided in “5. Financial Model”.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell
securities. JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility forsecurities and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.
This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell

3 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024■ shareholder value*¹ (in 100 million yen)Three qualitative and quantitative information assumptions set for estimating

Growth: Turnaround in tile business and upside in investment business
Value and worldview▶ Value and growth potential ▶

Net sales

Multiplication of tradition andcutting-edge

Contribution to markets throughthe investment business

CAGR of 21.0% is expected

DANTO HOLDINGS has 139 years of history andtradition as a cornerstone in the tile production
and sales business. DANTO HOLDINGS aims topursue convenience and design by building
relationships with overseas designers andcollaborating with web marketing companies. In
addition, DANTO HOLDINGS is developing
investment businesses in Touchstone CapitalManagement Co., Ltd. and Danto Technologies
Incorporated, and aims for profitability and longterm growth through both stock-type earnings
from investment businesses.

In the tile business, DANTO HOLDINGS provide
highly convenient products for users and offer
designs created in collaboration with overseas
designers. Touchstone Capital Management has
been in the business of selling Japanese realestate to foreign institutional investors, but will
now expand its clientele to include Japaneseinstitutional investors and individuals by digitally
securitizing real estate and small lots. Danto
Technologies is engaged in investment activities
in venture companies that contribute to
reducing environmental impact and advancing
scientific technology.

FY2024.12

63

FY2034.12

438▶

Enjoying high growth

Growth value

612

Connection:Leverage human networks and investments
Strategy

Business model

▶

ROIC

▶

Evolution of tile business andutilization of human resources in

Investment funds are raised
domestically and internationallyExpected to improve by 55.1
pointsTo further evolve the tile business, we will
collaborate with overseas designers and utilize
web marketing to expand sales channels. In theinvestment business, we have recruited andhired excellent human resources in both the realestate and venture capital businesses, and aremaking full use of their domestic and overseas
networks to develop and invest in quality
properties and projects.

Chairman Tomohiko Kato has a strong human
network. In January 2023, DANTO HOLDINGS
raised funds through a third-party allocation of
new shares to TAT Capital Fund LLC (TAT),
based in Honolulu, Hawaii. The funds will be
used to hire human resources, improve DANTOHOLDINGS's website, and stimulate investment
activities.

FY2024.12-4.3 ％

FY2034.12▶

50.9 ％

To a very high level

Excess profit value-66
Confidence: Contributing to society and creating local jobs throughinvestment
Financial sustainability
Support comes from thechairman's connections
DANTO HOLDINGS is attracting investor funds
from its chairman's connections, which allows
for bold measures to be taken. Funds areavailable until the tile business becomes
profitable and the investment business grows
profitable, making the business highlysustainable. DANTO HOLDINGS's funding has
been established jointly with other groupcompanies, and its cash flow is more stable thanthat of other small venture capital firms.

＋

Contribute to social
sustainability
Contribute to both local andglobal

WACC＝

Maintenance of status quo

10.6

DANTO HOLDINGS has a corporate culture thatprioritizes quality and environmental protection. By
hiringexternal

expertise,DANTO

HOLDINGS％

enhances its advanced management capabilities.
DANTO HOLDINGS is dedicated to comprehensive
employee training and safety measures, establishingsustainable manufacturing processes, continuous

Maintenance of status quo

quality improvement, job creation, and community
contribution. In its investment business, DANTOHOLDINGS

supports

thegrowthofventurecompanies, contributing to society and developing

Capital stock

technologies for disaster response to protect thenatural environment.

83*¹Compiled by JPR based on its own estimates of post-company plan estimates based on company disclosed materials.
This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell
securities. JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility forsecurities and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

4 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

2.Overview
Company profile
Company Name
Establishment
Representative
Head Office
Capital
Number of
Employees
Fiscal Year End
Business
Date of Listing
Stock exchange
where listed

DANTO HOLDINGS CORPORATION
ダントーホールディングス株式会社
1885/8/15
Tomohiko Kato, Tatsushi Maeyama
Osaka Head Office 3F Umeda Daibiru, 3-3-10 Umeda, Kita-ku, Osaka 530-0001,
2.085 billion yen (as of December 31, 2023)
199 Employees
Dec.
Pure holding company, real estate leasing business
1949年5月1日
Tokyo Stock Exchange Standard

Source: Prepared by JPR based on company data.

History
Year

Month

1885

Aug.

Dantosha was established at the current location of the head office, the Aman Plant (now Awajishima Plant Aman), with a

1893

Jul.

Company was reorganized as a joint-stock company and renamed Danto Corporation in accordance with the Commercial Code

1901

Mar.

Completed domestic tiles on the same level as imported tiles, becoming a pioneer in the manufacture of interior tiles in Japan.

1906

Jul.

Opened Osaka branch office.

1923

Feb.

Opened Tokyo Branch.

1949

May

Listed on the First Section of Osaka Securities Exchange.

1961

Oct.

Entered the Kanto region as the first production base in the tile industry.

1965

Jun.

Began construction of Fukuyama Plant, completed in September of the following year.

1966

Jul.

Increased capital to 1 billion yen and listed on the First Section of the Tokyo Stock Exchange.

Apr.

Changed company name to Danto Co., Ltd.

Aug.

Celebrated the 100th anniversary of the company's founding.

Jul.

Technical Research Institute was established in Fukura Plant (now Awajishima Plant Fukura).

Apr.

Aman and Fukura plants merged and renamed Awajishima Plant.

Apr.

Newly established a comprehensive showroom, Tile & Living Museum “D+dee plus” Tokyo, in Shinjuku OZONE, Tokyo.

Apr.

Completion of “D hall”, an energy-saving building for the global environment, at the Utsunomiya Plant.

Dec.

"D hall” received the ‘Mark of Excellence for Environment and Energy’ from the Institute for Building Environment and Energy

2000

Jan.

Awajishima Plant obtains ISO9002 certification, an international standard for quality assurance.

2001

Oct.

"D+dee plus” brand products were established.

2004

Jan.

Awajishima Plant obtains ISO 14001 certification, an international standard for environmental management systems.

Jul.

Transition to a holding company structure through a corporate split

Jul.

Danto Co., Ltd. changed its name to DANTO HOLDINGS CORPORATION.

Jul.

Danto Corporation, Danto Products Corporation, and Danto Capital Corporation were established as new group companies.

1985
1987

1999

2006

Details
capital of 10,000 yen, succeeding Sumihei Pottery.
of Japan.

Conservation.

Source: Prepared by JPR based on company data.
This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

5 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

History
Year

Month

2007

Oct.

Danto agreed to a business alliance with TOTO LTD. in the fields of tile manufacturing and technology.

2015

May

Established Danto USA Inc.

2016

Jan.

2018

Aug.

Details

Danto Tile Corporation, Danto Corporation, and Danto Capital Corporation merged with Danto Tile Corporation as the surviving
company.
Touchstone Capital Management Co., Ltd. becomed a consolidated subsidiary through the acquisition of all shares ofTouchstone Capital Management Co.

Dec.

Danto Investment Management, Inc. becomed a consolidated subsidiary through the acquisition of all of its shares.

2019

Jun.

Established limited liability company deeplus.

2020

Jul.

Acquired 50% of the shares of SRE Mortgage Alliance Inc. and made it a consolidated subsidiary.

Jul.

Danto Technologies Incorporated is established.

Nov.

Danto Power Incorporated (former Japan Polymer Material Laboratory Inc.) became a consolidated subsidiary through the2022

acquisition of all shares.

Source: Prepared by JPR based on company data.

Major consolidated subsidiaries and group companies
Business lines

Company nameBusiness outline

CapitalInvestment
ratio

Manufacturing,
Wholesale

DANTO TILE CO.,LTD.

Manufacture, sale and construction ofceramics, etc.

60 million
yen

100%

Real Estate

Touchstone CapitalManagement Co., Ltd.

Real estate investment andmanagement

400
million
yen

50%

CVC

Danto Technologies
Incorporated

Provision of funds and support for
venture companies

1 billionyen

50%

Source: Prepared by JPR based on company data.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

6 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

3. Growth story and evaluation based on the GCC
Management™ framework
GrowthTile business turns profitable and investment business has
upsideDANTO HOLDINGS CORPORATION
Turnaround and Future Prospects

Tile businessreturned to
profitability
Investment
business
growthDANTO HOLDINGS has a 139-year history and tradition as its foundation,and its philosophy is to take off in a big way into the future. DANTO
operates three businesses through its three consolidated subsidiaries, East
Japan Danto Tile Corporation, Touchstone Capital Management Co., Ltd.
and Danto Technologies Incorporated, and this report provides a GCC
analysis of each of these three companies.

Shareholders Supporting the Growth of the Three Companies
DANTO is reforming through capital injected by its major shareholders,and in July 2022, it will establish Danto Technologies, aiming for longterm growth by investing in advanced technologies to generate profits.

Earnings Targets (Consolidated basis) (Millions of yen)
2024
DANTO TILE CO.,LTD.
Touchstone CapitalManagement Co., Ltd.
Danto Technologies
Incorporated
Total

2025

2026

2027

2028

△200

0

50

100

200

330

585

1458

2558

4145

66

316

807

1423

2105

196

901

2315

4081

6450

Source: Compiled by JPR from the company website.

DANTO TILE CO.,LTD.
Creating "Comfortable Living with Tile"

Tradition as afoundation formodern design

DANTO TILE's corporate philosophy is "Life with Tile," and they aim tocontribute to society by creating "comfortable living with tile" andproviding affluent spaces. DANTO TILE's origins can be traced back to the
Sumimpei-yaki pottery that flourished during the Bunsei Era (1818-1830),
and Dantosha was founded in 1885 and has been producing tiles for many
years since. The secret to DANTO TILE's popularity over the years is its
high quality and design, and the company's unique manufacturing systemand "commitment" support its market superiority.

Pursuit of convenience from a designer's point of view througha renewed web design
DANTO TILE aims to provide "comfortable living with tiles" by pursuing
convenience and design in collaboration with overseas designers and web
marketing companies. Its high-quality tiles are highly valued in theconstruction industry, renovation market, and consumer market, and thecompany aims to achieve sales of 5 billion yen in 10 years.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

7 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024
Touchstone Capital Management Co., Ltd.
Shift Japan's financial assets from "savings" to "investment
Touchstone Capital Management Co., Ltd. aims to contribute to thepromotion of digitalization of financial assets through the construction ofsystems utilizing cutting-edge technologies (IT, AI, blockchain, etc.) andto shift Japanese financial assets from "savings" to "investment. In
addition, by promoting DX in the real estate business, the company aims
to revitalize the Japanese real estate market and meet the needs ofoverseas investors.

Needs forforeigninvestors

Digital securitization of real estate
Touchstone Capital Management, previously focused on selling Japanesereal estate to foreign institutional investors, will now expand its clientele
to include Japanese institutional investors and individuals by digitally
securitizing real estate and small lots. This approach, considered less risky
than holding stocks, offers a new asset management method for Japanese
investors, promoting a shift from financial assets to "investment." Thecompany aims to triple its current AUM to 300 billion yen and its fees toabout 1.5 billion yen through this strategy. Additionally, it plans to start
self-investment for capital gains, which is expected to generate evengreater profits.

Danto Technologies Incorporated
Identifying and fostering Japanese venture companies that
promote global innovation

Funding forpromisingtechnologicaldevelopments
through theFund

Danto Technologies is engaged in the business of investing in venturecompanies that contribute to the reduction of environmental impact andscientific and technological progress. Noteworthy is the "emergency LP
gas generator" useful in times of disaster, etc., provided by Danto Power
Corporation (formerly Japan Polymer Material Laboratories Co.)

Features of the emergency LP gas generator and comparison
with other products
Currently, storage batteries and diesel generators are the main sourcesof electricity supply during disasters. Storage batteries cannot be reused
once depleted until power lines are restored, while LP gas generators canbe reused as many times as logistics allow. Diesel generators can also bereused, but their fuel needs to be changed every six months, whereas LP
gas generators do not require such fuel changes.

Other areas of investment
Technology

Features

Water plasma

The patented water plasma generator is used to treat difficult-to-treat wastes that have become an environmental problem. Major

generator

applications include nuclear power plant decommissioning projects and asbestos rate disposal.

Compact andAutomotive on-board generators. More than half of the power generated by an engine is wasted heat. Using patented technology,

lightweight binary

the heat is used to generate electricity, turning the car into a running power plant.

generators
Next-generation

Rechargeable batteries with low cost and high energy density (patented). Main features are extremely low material andbatteries

manufacturing costs. No rare metals are used. Easy to mass-produce. High safety (flame-retardant materials used).

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

8 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

Connection

Leverage human networks and investments
DANTO HOLDINGS CORPORATION

Chairman Kato's Human Network

Local andglobal network

The driving force behind Growth's reforms described above is Chairman
Tomohiko Kato. Kato also serves as president of Awaji Kotsu, which owns
28.88% of DANTO HOLDINGS' shares. With its strength in human
network, the company is reaching out to global investors to turn aroundthe company, and in January 2023, it aggressively raised funds andmanagement resources through a third-party allocation of new shares to
Honolulu, Hawaii-based TAT Capital Fund LLC ("TAT"). DANTOHOLDINGS has been actively procuring funds and management resources.

DANTO TILE CO.,LTD.

Building Relationships with Designers

Creating a
climateconducive toworking withdesigners

DANTO TILE owns not only a manufacturing plant, but also facilities forresearch and development from the raw material soil, and is engaged in a
one-stop business of developing, manufacturing, and selling high-quality
tiles in-house. In the future, the company plans to focus on the pursuit ofdesign and the expansion of sales channels. In the pursuit of design, thecompany is collaborating with overseas designers.DANTO TILE hasalready exhibited at the Milan Design Week* and has established arelationship of trust with designers. In order to expand sales channels,
DANTO TILE is utilizing web marketing, enabling direct communication
with designers and creating an environment that makes it easier topropose unique designs.
*Milano Design Week: An event held every April in Milan in conjunction with the
Milano Salone, the world's largest interior design trade fair, attracting one million
people, and the world's largest design festival.

Respecting tradition, progressive brands are born.

International
brand value
increase.

In April 2024, the new brand "Alternative Artefacts Danto" was presented
at Milan Design Week. Creative direction will be provided by Teruhiro
Yanagihara, a high-profile designer based in the Kansai region withprojects underway in Japan, Sweden, Denmark, Italy, Belgium, andelsewhere, and the first collaborator, India Mahdavi, a furniture designer
active in Iran and France The first collaborator, India Mahdavi, is afurniture designer working in Iran and France.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

9 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

Touchstone Capital Management Co., Ltd.
Expansion into Digital Asset Management

100 billion intransactions in
6 months.

TAT, a U.S. company with which we have a capital alliance, hasdeveloped numerous projects over the past 50 years, mainly in the statesof Hawaii and California. For example, TAT's development of the Ko Olina
Resort in Oahu, Hawaii, and the Grand Wailea Resort in Maui are now
recognized as international luxury resorts. Sharing these achievements
and know-how has greatly contributed to strengthening the company's
competitiveness.
Touchstone Capital Management is one of the top-ranked firms in Japanin terms of transaction volume in this area from foreign investors, having
executed approximately 100 billion yen in transactions in the six months
from August 31, 2023 to February 29, 2024.
As a short-term goal, the company plans to expand its domain fromtraditional asset management to digital asset management by 2026.

Danto Technologies Incorporated
Expanding the digital securities market through secondary
distribution markets

Tailwind fromlegal reform

Danto Technologies plans to establish a Worldwide Innovation
Technology Fund with a view to collaborating with Touchstone CapitalManagement Co. The fund aims to raise funds from the market widely byutilizing a secondary secondary market (distribution among investors)
platform to sell the shares of companies in which it has invested to dateto other investors as a private equity fund.
Until now, the sale and purchase of security tokens, which are tokens ofequity in anonymous associations, between investors has been abottleneck because it has been necessary to give notice by deed. This has
been eased under specific conditions under the Law for Partial Revision of
the Industrial Competitiveness Enhancement Law (2021), etc. With the
opening of a private trading system in December 2023, which will be
operated by the Osaka Digital Exchange (ODX), the development of asecondary distribution market is expected to provide the market for digital
securities with a tailwind is blowing.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

10 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

ConfidenceContributing to society and creating local jobs throughinvestment
DANTO HOLDINGS CORPORATION
Buying Support by Investors

Financialstrength ofmany investors

According to the JPR hearing, DANTO HOLDINGS is attracting investor
funds through its chairman's connections, which allows it to take boldmeasures. Funds are ready by the time the tile business turns profitable
and the investment business grows profitable, making the business verysustainable.

DANTO TILE CO.,LTD.
Commitment to Quality and Contribution to Society

Contribution to
the local
community

DANTO TILE has a corporate culture that places the highest priority on
quality and environmental protection, and values trust and integrity
through contributions to society. Specifically, the company is committed
to thorough employee training and implementation of safety measures,
establishment of sustainable manufacturing processes, continuous
improvement of quality, creation of local employment, and community
contribution activities. These activities, together with the technology andtrust accumulated through years of business operations, have led to alower cost of capital, which is the foundation of the company's financial
stability.

Touchstone Capital Management Co., Ltd.

Financialstability

Touchstone Capital Management has developed a structure to make theacquisition and sales of income-producing real estate overseas and inJapan, which is a combination of around 30% equity and around 70%
non-recourse loans (loans whose repayment source is solely the cash flow
generated by the assets), the core of its future earnings structure. The
company is particularly focused on this business, which is considered tobe highly stable in terms of income and expenditures.

Danto Technologies Incorporated

Socialcontribution

Danto Technologies Incorporated contributes to society by supporting the
growth of innovative venture companies, and also contributes to social
contribution and protection of the natural environment through thedevelopment of emergency LP gas generators that are effective in timesof disaster. Funds are raised jointly with other group companies, and thecompany's cash flow is more stable than that of other small venture
capital firms.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

11 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

4. Summary of Business Results for the First Quarter of the Fiscal
Year Ending December 31, 2024
Summary offinancial results

Operating loss
improved Net
income returned
to profitability

Corporate Results
Summary of Business Results
DANTO HOLDINGS posted consolidated sales of 1,623 million yen in Q1
FY12/2024, up 16.9% YoY. Operating loss was 106 million yen, an
improvement from 146 million yen a year earlier. Recurring loss was 128
million yen, down from 176 million yen a year earlier. Net income
attributable to parent company shareholders was 75 million yen, up from
-193 million yen a year earlier, and total assets were 12,172 million yen,
up from 11,959 million yen a year earlier.

Segment information
Construction ceramics and other business
Both net sales andoperating loss
down

Net sales were 1,205 million yen in the same period of the previous year
(2023) and 1,161 million yen in the current period (2024), a decrease of
44 million yen (about 3.7%) from the same period of the previous year.
Operating loss was 205 million yen in the same period of the previous
year (2023) and 221 million yen in the current period (2024), an increaseof 16 million yen (approx. 7.8%) year-on-year.

Real estate business

Real estatebooming due toyen depreciation

With regard to the real estate business, while investors in Europe and the
U.S. remain cautious, Asian and domestic investors are actively investingin Japanese real estate due to the weak yen, and the market is firm. In
this environment, the company worked to expand assets undermanagement in the first quarter, receiving additional asset management
mandates from existing overseas investors as well as fees from the sale ofassets under management.

Venture capital business

Venturedevelopment andinvestment

Since the previous fiscal year, the company has begun equity investments
using its own funds and acquiring income-producing real estate, and is
now considering the acquisition of specific projects and the execution of
investments. In addition, consolidated subsidiary Danto Technologies
Incorporated is engaged in the worldwide innovation business, which aims
to discover and nurture Japanese venture companies, especially in termsof financial support. The program evaluates promising venture companies
in new scientific and technological fields and promotes efforts to makenew investments. This project will be carried out in collaboration with
Touchstone Capital Management Co., Ltd.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

12 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

5. Financial model
FY
PL

BS

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

▲ 59
231
▲ 290

2025.12
7,175
5,200
1,500
632
▲ 157
4,657
2,103
108.1%
679
264
415

2026.12
9,793
5,500
2,915
1,613
▲ 235
5,486
2,478
120.5%
2,111
282
1,829

2027.12
13,413
5,800
5,116
2,845
▲ 348
6,763
3,055
120.8%
3,894
299
3,595

2028.1218,001
6,000
8,290
4,210
▲ 499
8,292
3,745
119.3%
6,280
316
5,964

2029.1223,438
6,200
11,8906,038▲ 691
10,0464,538
117.2%
9,188
333
8,854

2030.1228,8786,400
15,505
7,874▲ 901
11,7005,285
113.3%
12,239346
11,8922031.1233,8386,600
18,8049,550▲ 1,116
13,4086,056
110.0%
14,728355
14,3732032.1237,9536,700
21,605
10,972▲ 1,325
14,792
6,681
107.1%
16,841361
16,4792033.12
41,2476,800
23,858
12,116▲ 1,528
15,8947,179
105.1%
18,539366
18,1732034.12
43,7746,900
25,60013,001▲ 1,726
16,7337,558
103.6%
19,850367
19,4832035.1243,7597,000
25,60013,001▲ 1,841
16,7227,553
100.0%
19,850367
19,483

▲ 630

▲ 430

▲ 380

▲ 330

▲ 230

▲ 30

290

290

290

290

290

290

330
66
▲ 56
0
10
▲ 280
300
20
▲ 40
60
33,000033,000
1.82
0
0
60
563
0
3,894
0
3,178
5,063
453

585
316
▲ 56
0
0
415
0
415
127
288
33,000033,000
8.73
0
0
288
768
0
5,314
0
3,400
5,063
637

1,458
807
▲ 56
0
0
1,829
0
1,829
560
1,269
33,000033,000
38.46
0
0
1,269
1,052
0
7,279
0
3,621
5,063
898

2,558
1,423
▲ 56
0
0
3,595
0
3,595
1,100
2,495
33,000033,000
75.60
0
0
2,495
1,412
0
9,769
0
3,838
5,063
1,238

4,145
2,105
▲ 56
0
0
5,964
0
5,964
1,825
4,139
33,000033,000125.42
0
0
4,139
1,838
0
12,720
0
4,050
5,063
1,656

5,921
3,019
▲ 56
0
0
8,854
0
8,854
2,709
6,145
33,000033,000186.21
0
0
6,145
2,264
701
15,672
0
4,252
5,063
2,094

7,721
3,937
▲ 56
0
0
11,8920
11,892
3,639
8,253
33,000033,000250.10
0
0
8,253
2,653
6,198
18,364
0
4,380
5,063
2,517

9,365
4,775
▲ 56
0
0
14,3730
14,373
4,398
9,975
33,000033,000302.27
0
0
9,975
2,976
13,87920,597
0
4,467
5,063
2,894

10,759
5,486
▲ 56
0
0
16,4790
16,4795,043
11,43733,000033,000346.5700
11,437
3,234
23,45622,384
0
4,534
5,063
3,223

11,881
6,058
▲ 56
0
0
18,1730
18,1735,561
12,61233,000033,000382.190012,612
3,432
34,62023,756
0
4,580
5,063
3,502

12,749
6,500
▲ 56
0
0
19,483
0
19,483
5,962
13,52133,000033,000409.730013,521
3,431
48,14923,748
0
4,580
5,063
3,501

12,749
6,500
▲ 56
0
0
19,483
0
19,483
5,962
13,52133,000033,000409.730013,521
3,431
61,67023,748
0
4,580
5,063
3,501

13,151

15,182

17,913

21,32025,32630,046

39,17549,877

61,89574,95388,472

101,993

1,267

1,728

2,368

3,177

4,137

5,097

5,973

6,699

7,280

7,726

7,724

7,724

1,271

2,553

3,375

3,478

2,385

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Other long-term liabilities

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

Capital stock, etc.
Foreign currency
Retained earnings, etc.
Net assets and liabilities
Liquidity on hand
Working capital
Current liabilities other
Investment in tangible
Depreciation of property,
Short-term marketable
Investment securities
Other assets
Retained earnings, etc.
Operating CF
Short-term debt
Long-term debt
Other Long-term Liabilities
Equity financing
Financing CF
Surplus Cash and Deposits
Surplus Cash and Deposits
Check

2,530
1,110
6,814
13,151
▲ 69
▲ 475
155
▲ 824
231
0
0
▲ 55
60
▲ 977
977
0
0
0
977
0
0
0

2,530
1,110
7,102
15,182▲ 205▲ 1,420
462
▲ 486
264
0
0
▲ 184
288
▲ 1,282
1,282
0
0
0
1,282
0
0
0

2,530
1,110
8,371
17,913▲ 284▲ 1,965
639
▲ 503
282
0
0
▲ 261
1,269
▲ 822
822
0
0
0
822
0
0
0

2,530
1,110
10,866
21,320▲ 360▲ 2,490
810
▲ 517
299
0
0
▲ 341
2,495
▲ 103
103
0
0
0
103
▲0
0
▲0

2,530
1,110
15,00525,326▲ 426▲ 2,950
960
▲ 528
316
0
0
▲ 418
4,139
1,093
▲ 1,09300
0▲ 1,093
0
0
0

2,530
1,110
21,15030,046▲ 427▲ 2,952
960
▲ 535
333
0
0
▲ 438
6,145
3,086
▲ 2,385000▲ 2,385
701
701
0

2,530
1,110
29,404
39,175▲ 389▲ 2,692
876
▲ 474
346
0
0
▲ 423
8,253
5,497
0
0
0
0
0
5,497
5,497
0

2,530
1,110
39,37949,877▲ 323▲ 2,233
726
▲ 442
355
0
0
▲ 377
9,975
7,681
0
0
0
0
0
7,681
7,681
0

2,530
1,110
50,81561,895▲ 258▲ 1,787
581
▲ 428
361
0
0
▲ 328
11,437
9,577
0
0
0
0
0
9,577
9,577
0

2,530
1,110
63,42874,953▲ 198▲ 1,372
446
▲ 411
366
0
0
▲ 279
12,612
11,164000
00
11,164
11,164
0

2,530
1,110
76,94988,472
1
8
▲3
▲ 367
367
0
0
1
13,521
13,52900000
13,52913,529
0

2,530
1,110
90,470101,993
0
0
0
▲ 367
367
0
0
0
13,521
13,52100000
13,521
13,5210

Net sales(Construction ceramics(Real estate business)(Venture capital business)(Adjustment amount)
Cost of sales
Selling, general andPercentage increase in
EBITDA
Total depreciation andOperating income(Building a business withceramic magnets, etc.)(Real estate business)(Venture capital business)(Adjustment amount)
Interest expenses
Other non-operating
Ordinary income
Extraordinary gains/losses
Income before income
Income taxes
Comprehensive income
Number of shares issued
Number of shares issued
Number of shares issued
EPS (yen)
Dividends
Dividends paid
Retained earnings
liquidity on hand
Surplus cash and deposits
Working capital
Short-term marketable
Depreciable property,
Investment securities
Other assets
Total assets
Current liabilities otherthan interest-bearing debt
Short-term debt
Long-term debt

CF

CompanyPlan
JPR Forecast

JPR
Forecast

Millions of yen

2024.12
6,300
4,900
1,100
421
▲ 121
4,540
2,050

Source: JPRThis report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

13 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

Millions of yen
FY
KPI

Ratio of invested capital tosales at the beginning of
the period
Invested capital at theSales Growth Rate
NOPAT
ROIC
Ratio of working capital to
Cost of sales / (Cost of
SG&A expenses/(cost of
Operating income ratio
Current liabilities otherthan interest-bearing debt
Liquidity on hand monthly
Short-term debt interest
Long-term debt interest
Effective tax rate
Dividend payout ratio
Gross DE ratio
Net DE ratio
Property, plant and
WACC
ROIC-WACC
Excess profit = (ROICPermanent value of excess
Estimated value of growthPresent Value Factor

CompanyPlan
JPR Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

JPR
Forecast

2024.122025.122026.122027.122028.122029.122030.122031.122032.122033.122034.122035.12

74.2%

79.6%

74.4%

69.9%

66.5%

64.1%

62.6%

61.6%

60.9%

60.6%

60.4%

60.4%

4,674
13.4%
-201
-4.3%
198
68.89%
31.11%
0.00%

5,711
22.2%
288
5.0%
198
68.89%
31.11%
5.78%

7,281
27.5%
1,269
17.4%
198
68.89%
31.11%
18.68%

9,372
28.7%
2,495
26.6%
198
68.89%
31.11%
26.80%

11,970
27.7%
4,139
34.6%
198
68.89%
31.11%
33.13%

15,016
25.4%
6,145
40.9%
198
68.89%
31.11%
37.78%

18,075
20.4%
8,253
45.7%
198
68.89%
31.11%
41.18%

20,831
15.2%
9,975
47.9%
198
68.89%
31.11%
42.48%

23,125
11.0%
11,43749.5%
198
68.89%
31.11%
43.42%

24,985
8.0%
12,61250.5%
198
68.89%
31.11%
44.06%

26,434
5.8%
13,52151.2%
198
68.89%
31.11%
44.51%

26,4260.0%
13,52151.2%
198
68.89%
31.11%
44.52%

64

64

64

64

64

64

64

64

64

64

64

64

0.9
0.00%
0.00%
30.6%
0.0%
13.6%
7.6%
7.7%
5.8%
-10.1%-472-8,150

0.9
0.00%
0.00%
30.6%
0.0%
26.5%
18.5%
7.7%
5.8%
-0.7%
-43
-737
7,413
89%

0.9
0.00%
0.00%
30.6%
0.0%
31.0%
21.3%
7.7%
5.8%
11.6%
848
14,642
15,379
84%

0.9
0.00%
0.00%
30.6%
0.0%
26.0%
15.4%
7.7%
5.8%
20.8%
1,952
33,71819,076
80%

0.9
0.00%
0.00%
30.6%
0.0%
13.6%
3.1%
7.7%
5.8%
28.8%
3,446
59,516
25,798
75%

0.9
0.00%
0.00%
30.6%
0.0%
0.0%
-12.5%
7.7%
5.8%
35.1%
5,276
91,116
31,600
71%

0.9
0.00%
0.00%
30.6%
0.0%
0.0%
-27.7%
7.7%
5.8%
39.9%
7,207
124,469
33,354
67%

0.9
0.00%
0.00%
30.6%
0.0%
0.0%
-40.2%
7.7%
5.8%
42.1%
8,769
151,450
26,981
64%

0.9
0.00%
0.00%
30.6%
0.0%
0.0%
-50.0%
7.7%
5.8%
43.7%
10,098
174,401
22,951
60%

0.9
0.00%
0.00%
30.6%
0.0%
0.0%
-57.7%
7.7%
5.8%
44.7%
11,166
192,845
18,444
57%

0.9
0.00%
0.00%
30.6%
0.0%
0.0%
-64.9%
7.7%
5.8%
45.4%
11,991207,091
14,246
54%

0.9
0.00%
0.00%
30.6%
0.0%

95%

7.7%

Source: JPRThis report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

14 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June3,2024

Reference: Announced on May 15, 2024 Issuance of stock acquisitionrightsOutline of stockacquisition rights

2.5 billion yen
raised from stockacquisition rights

Outline of the offering of stock acquisition rights
DANTO HOLDINGS announced on May 15, 2024 that it will issue its firstseries of stock acquisition rights (with an exercise price amendment
clause) through a third-party allotment to EVO FUND.
The allotment date of the stock acquisition rights is May 31. A total of
33,000 stock acquisition rights will be issued (3.3 million potential
shares). The company will raise an estimated net amount of 2,508 million
yen, which will be used for investment funds. The dilution ratio is 10.00%.

Purpose and reason for solicitation
DANTO HOLDINGS aims to recover its business performance and build astable earnings base with its main focus on the construction ceramics
business and real estate business. To this end, the company will invest inreal estate equity with its own funds through consolidated subsidiary
Touchstone Capital Management Co., Ltd. and promote the worldwide
innovation business through Danto Technologies Incorporated.
Specifically, DANTO HOLDINGS will invest in income-producing realestate, primarily in Tokyo, and make equity investments of 580 million
yen in Japanese venture companies. In order to achieve high profitability
and social contribution through these investments, the company resolved
to issue stock acquisition rights through a third-party allotment to raise
equity investment and working capital.

Aiming forsustainableearnings

Specific use of funds to be raised

Focus on new
business

DANTO HOLDINGS intends to use the estimated proceeds of 2,508
million yen from the issuance of the SARs for loans to group companies,
equity investments in Touchstone Capital Management and Danto
Technologies, and working capital for business strategies. The Company
intends to use the proceeds of 2,508 million yen as working capital for its
business strategy. If the amount raised exceeds the planned amount, it isplanned to be used for equity investment in Touchstone CapitalManagement.

Specific use of funds to be raised
Specific use
Equity investment in Touchstone CapitalManagement Co.
Equity investment in Danto Technologies
Incorporated
Working capital in business strategy
Total

Amount (Millions ofyen)

Scheduled date of expenditure

1,250

July 2024 - December 2024

1,000

June 2024 to December 2025

258

June 2024 to December 2025

2,508

ー

Source: Company website. Notice Concerning Issuance of First Series of Stock Acquisition Rights (with a Clause
to Revise Exercise Price) by Third-Party Allotment and Execution of a Stock Acquisition Rights Purchase
Agreement (Commit Issue)
This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

15 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June3,2024

Growth perspective

Stable earnings
and innovative
growth expected

Touchstone Capital Management Co., Ltd. will utilize its real estate
investment know-how and crowdfunding information to promote equity
investments in income-producing real estate using its own funds. The
company plans to invest in office buildings, rental condominiums, hotels,
logistics facilities, and commercial facilities in Tokyo and othermetropolitan areas, and plans to allocate 1,250 million yen from July to
December 2024. By doing so, the company aims to ensure the liquidity of
its assets and increase revenues at the time of sale. In addition, Danto
Technologies Incorporated plans to promote its worldwide innovation
business and allocate 1,000 million yen from June 2024 to December
2025 for equity investment in new ventures. This will strengthen thecompany's competitiveness in growth markets and increase long-term
earnings.

Connection perspective

Co-creation withsociety

Touchstone Capital Management Co., Ltd. and Danto Technologies
Incorporated will collaborate to identify and nurture Japanese venturecompanies. In particular, they will promote equity investments incompanies with environmental and innovative technologies. This will
ensure sustainable growth and the introduction of new technologies to themarket. In addition, DANTO TILE Corporation will borrow 168 million yen
as working capital to develop new designs and high value-added products
and strengthen promotional activities for overseas markets. This will
maximize the use of each company's management resources in an effort
to rebuild the brand and expand the market.

Confidence perspective

Optimize cost ofcapital andincreaseshareholder value

DANTO HOLDINGS plans to allocate 258 million yen from June 2024 to
December 2025 as working capital to ensure the stability and reliability ofeach business. In particular, the company will loan 90 million yen toDanto Power Incorporated to develop an emergency LP gas generator
utilizing IoT technology and to promote public relations activities. This will
strengthen the company's preparedness for natural disasters and provide
the market with highly reliable products. In addition, through prompt andflexible provision of funds, the company will support the establishment oftechnology and business turnaround of portfolio companies to improve
investment returns. These efforts will enhance corporate stability andsecure the trust of stakeholders.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

16 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

Reference: DANTO group's portfolio companies of interest■ Danto Power Incorporated's value growth story
Growth: Shaping the future of energy
Values and Worldview▶ Value provided and growth potential ▶

Disaster Preparedness and Clean
Energy Development

LP gas compensates for the
shortcomings of existing fuels
Currently,

future of energy and is focused on providing thegenerators are the mainstream sources of

Safety Association, there are approximately

next generation of convenience and security toelectricity supply in times of disaster. Storage

200,000 units of emergency power generationsociety.

batteries cannot be reused once they are

equipment in the national stock (2020). We

emergency LP gas generators needed in times of

exhausted until the power lines are restored,

calculated this figure assuming that 20% of

disaster and emergency situations, the company

whereas LP gas generators can be reused asthese can be replaced by our LP gas and that theis also focusing on research and development ofmany times as logistics allow. Diesel generators

unit sales price is 200,000 yen.

clean energy. As a value proposition, thecan also be reused, but the fuel needs to becompany provides safe and reliable solutions

changed every six months, whereas LP gas

that meet the needs of its customers while being

generators do not.

developing

andmarketingbatteries

andAssuming 20% market share

Danto Power is on a mission to pioneer the

Whilestorage

Net sales

diesel

According to the National Emergency Generator

Future Sales Targets

environmentally conscious and protecting the

8 billion yen

global environment.

Connection: A sustainable energy future through innovation
Strategies▶

Energy-centered product development
Danto

Power's

Types available for each need

Assumed to be average

is

the

Two types of emergency LP gas generators are

ROIC is assumed to be 15%, which is the valueofavailable: a stationary type that can be remotelyof an average trading company. Assuming that“ emergency LP gas generators, ” which areoperated using IoT technology (to be available in

the ratio of invested capital to sales is also 40%,

currently

spring 2024) and a portable type that is

the NOPAT is 480 million yen.

manufacture,

being

Technologies

business

ROIC

▶

sale

development,

main

Business model

anddeveloped

Incorporated,

by
a

Danto

consolidated

lightweight, quiet, and easy to use in a variety ofsubsidiary. Danto Power also plans to develop

locations. The stationary type, in particular, will

and market other products that can contribute to

reduce maintenance costs.

ROIC

society at large, such as “ clean energy-related
research and development.

15%

Confidence: Stable earnings and social contribution through environmentallyfriendly energy

Financial sustainability ＋

Contribution to social
sustainability

WACC
Assumed to be average

Cost reduction with IoT

Major contribution to the SDGs

Demand is expected to grow further in theContributing to the sustainability of society by

WACC is assumed to be 8% as the value of an

future, given the advantages of LP gas as a fuel,promoting clean energy. Generators fueled byaverage trading company. The excess profit

its environmental friendliness, and its potential

low-polluting LP gas provide a reliable source of

spread would then be 7%.

use in times of disaster. Furthermore, byenergy while reducing environmental impact.

integrating IoT technology, which enables

They promote the use of renewable energy

remote monitoring and operational efficiency,

resources and reduce greenhouse gas emissions.

into its generators, the company is increasing

Additionally, our generators can provide a stablecost

power supply in times of disaster, contributing toperformanceandpromotingrepeatbusiness. These strategies will generate stable

the restoration and preservation of social

cashinfrastructure.

flow

and strengthen thecompany's

financial base.

WACC

8%

*¹Compiled by JPR based on company disclosures and its own estimates of post-company plan estimates. JPR did not interview the company.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

17 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024■ Helix Co., Ltd's value growth story
Growth: Contribute to human development and leave a beautiful planet for future
generations

Values and Worldview ▶ Value provided and growth potential ▶
Balancing science and theenvironment
HELIX'scorporatephilosophy

Assumed share to waste haulerson

By providing quick and effective solutions to the

In 2018, there were approximately 200,000

contributing to human development and global

difficult environmental challenges of modern

industrial waste disposal permits. Assuming thatenvironmental

providingsociety, such as the treatment of industrial andthe system could be introduced in 20 of these

innovative products and services under the

medical waste, as well as the decommissioning

cases, the unit cost was set at 400 million yen.

theme of "handing over a beautiful earth toof nuclear power plants, the company isfuture generations." The company aims toearnestly working to clear the “bill” of economic

embody "wisdom, action, and logic" throughcosts and environmental burdens. Through its

technological innovation in the environmental

environmentallyfriendlybusiness. HELIX strives to balance scientifictechnology-based

treatment

progress, economic growth, and environmental

difficult-to-process materials, the company isconservation, representing a new corporate

addressing the three major challenges of themodel for the 21st century.

waste problem: quantity, quality, and price.

conservation

focuses

Minimizing negative environmental
impactNet sales

by

water

plasmasystems

Future Sales Targets

for

8 billion yen

Connection: Collaborating with other research institutions to make effective use of
byproducts

Strategies▶

Business model

ROIC

▶

Collaboration with other research
institutions

Toward a total business by utilizing
by-products

Assumed to be averageDue to the development of advanced technology

In the future, our business strategy will be based

ROIC is assumed to be 15%, which is the value

and

in

on the “Deployable Core Technology Strategy,”of the average manufacturing industry.

treatment technology research, collaboration

which aims not only to reduce environmental

Assuming that the ratio of invested capital towith the government, universities, and otherimpact but also to further develop our coresales is also 75%, which is the average for the

research institutions is essential. HELIX collects

technologies, including the establishment of

manufacturing industry, the NOPAT is 900

data internally and also relies on external

technologies for the effective use of by-products

million yen.

organizations to measure and verify datato contribute to the recycling of resources.

handlingofhazardous

materials

independently. Currently, HELIX is conducting
research

on

water

plasmasystemsin

ROIC

collaboration with Kyushu University, Tokyo
Institute of Technology, and several domestic

15%

and international companies.

Confidence: Sufficient research resources to reduce environmental impact

Financial sustainability ＋
Research funding is available forthe foreseeable future

Contribution to social
sustainability

＝

WACC

Use in industrial waste
treatment

Assumed to be average

Helix has increased its capital to 10 million yen

The water plasma treatment system is suitable

WACC is assumed to be 8% as the value of the(capital surplus of 85 million yen) and isfor specially controlled industrial waste, which isaverage manufacturing industry. The excess

considereddifficult to treat in incinerators and melting

profit spread would then be 7%.

to

be

well

funded.

Financialsustainability is high because research expenses

furnaces, and contributes greatly to reducing

are being funded by Danto Technologies withenvironmental impact.

plans to convert to equity later, and can becovered by investor introductions from DANTOWACCHOLDINGS.

8%*¹Compiled by JPR based on company disclosures and its own estimates of post-company plan estimates. JPR did not interview the company.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

18 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024■ Mobility Energy Circulation Co.,Ltd.'s value growth story
Growth: Building a “Running Power Plant"
Values and Worldview

Value provided and growthpotential▶

Net sales▶

Exhaust heat is the next generationof sustainable power sources

Reducing CO2 emissions by utilizing
exhaust heat

Mobility Energy Circulation views waste heat,

Ultra-compact, lightweight binary generators

The number of trucks owned in Japan iswhich is discarded throughout society, as anhave at their core the technology to convert

approximately 14.36 million (2022 Japan

important resource and is developing technology

exhaust heat into electrical energy, which allows

Automobile Manufacturers Association).

to convert it into electricity. By utilizing unused

them to be installed in small-scale facilities,

Assuming that 0.1% of these trucks will be

waste heat, the company is helping to reduce

vehicles,equipped with onboard generators, the unit cost

fuel

costs

and

ships.

In

particular,

Assumption of loading at 0.1%.

vehicle-andCO2emissions.

In

mounted binary generators use exhaust heatof an onboard generator was calculated atparticular,Mobility

EnergyCirculation

hasfrom engines to generate electricity, contributing

500,000 yen.

developed a compact and lightweight binary

to improved fuel efficiency and reduced CO2

generator that can be installed in vehicles andemissions in refrigerated refrigeration vehicles

small facilities that have been difficult to use in

and other vehicles. Demand is expected to growthe past. By converting small-scale waste heat

especially in the industrial and transportation

into a valuable energy source, Mobility Energy

sectors, which demand more efficient energy

Circulation will promote measures against global

use, and the market is expected to expand withwarming and the transition to a decarbonizedthesociety.

environmental issues.

current

increaseinawareness

Future Sales Targets

7.1 billionofConnection: Combining sustainability and market expansion

Strategies

Business model

▶

ROIC

▶

Developing new markets with waste
heat binary generators

Accelerate market entry with adiversified revenue structure

Assumed average value

The underlying strategy is to develop a new

In addition to product sales, Mobility Energy

ROIC is assumed to be 15%, which is the value

market segment in the existing waste heat

Circulation is developing a diversified revenueof the average manufacturing industry.

binary generator market by achieving ultra-

structure that includes leasing and an electricity

Assuming that the ratio of invested capital tocompact, lightweight, and low-cost products. By

sales revenue sharing model. This approachsales is also 75%, which is the average for the

makingsmall-scale

reduces the initial investment burden for

manufacturing industry, the NOPAT is 800

facilities, vehicles, and ships, which havecustomers and lowers the barriers to productmillion yen.

traditionally been difficult to install large-scale,

adoption. The company demonstrates thehigh-cost binary generators, Mobility Energy

performance and practicality of its products

Circulation is expanding the market for efficiently

through demonstration tests, enhancing market

convertingIn

recognition and reliability. Additionally, Mobility

addition, the company's strategy is to establish

Energy Circulation actively seeks domestic andtechnological barriers to entry and maintain its

international patents to protect its technology

competitive advantage by acquiring patents.

and maintain a competitive advantage.

products

available

wasteheat intotoelectricity.

ROIC

15%

Connection: Toward a sustainable society by preventing global warming

Financial sustainability ＋

Contribution to social
sustainability

Research and development expenses
are sufficientUtilizing exhaust heat for asustainable society
The

group, Mobility Energy Circulation has beenlightweightselected for a grant project by the New Energy

sustainability lies in their ability to efficiently

andutilize waste heat that would otherwise be

Technology

Development

binarytherebyofultra-compact

generators

reducing

to

WACC
Assumed average value

In addition to the investment from the DANTO

Industrial

contribution＝

and

WACC is assumed to be 8% as the value of thesocialaverage manufacturing industry. The excess

Organization (NEDO) in 2021, and is very welldiscarded,

funded. Mobility Energy Circulation is also

impact. This technology converts waste heatworking with renewable energy facilities andfrom vehicles, factories, and hot springs into

expanding into diverse industries to achieve

electricity, enhancing energy efficiency andsustainable growth.

reducing CO2 emissions. By generating power

profit spread would then be 7%.

environmental

without the use of fuel, it reduces dependence
on fossil fuels and helps prevent global warming.

WACC

8%

*¹Compiled by JPR based on company disclosures and its own estimates of post-company plan estimates. JPR did not interview the company.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

19 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024■ CIB Solution Co.,Ltd.'s value growth story
Growth: Solving society's overall energy problems
Values and Worldview ▶

Value provided and growthpotential

Net sales▶

Innovation for sustainability andsafetyProviding innovative energy solutions

CIB Solution Co., Ltd. is focusing on developing

CIB is bringing innovation to the energy sector

The lithium-ion battery market is worth 697.1

technologies to improve the safety and efficiency

through the provision of high-performance andbillion yen (Nikkei COMPASS survey 2024). Sinceof lithium-ion batteries with the aim of realizing

safe battery technology. In particular, by

we own the patent for copper-ion batteries, wea sustainable society. At the same time, thereducing the risk of lithium-ion battery ignition

assume that we can replace 3% of the market

company is actively researching alternativeand providing the market with higher capacitywith copper-ion batteries.

materials and developing new energy storageand more efficient energy storage solutions, CIB

systems to address the problem of lithium

is facilitating their expanded use in various

resource depletion. By promoting technologicalapplications, including electric vehicles (EVs).

innovation in this way, the company aims to

CIB also supports the sustainable use ofprovide next-generation solutions in the energy

resources through research and development offield to conserve the global environment and use

environmentally friendly batteries made fromresources sustainably.

new materials other than lithium.

Assumed market share of 3%

Future Sales Targets

21 billion

Connection: Securing market superiority through patents

Strategies▶

Business model

ROIC

▶

Promoting next-generation energy
solutionsHigh potential for business development

Assumed average value

Our objective is to provide sustainable energy

The patented copper-ion battery has a simple

ROIC is assumed to be 15%, which is the value

solutions.

R&D,

battery structure, which means that materialof the average manufacturing industry.

manufacturing, sales, and import/export of

CIB

is

engagedand manufacturing costs are extremely low andAssuming that the ratio of invested capital tobatteries, new energy-related equipment, andrare metals are not used. With the simplification

sales is also 75%, which is typical of the average

electrical equipment, and is strengthening itsof the manufacturing process and the prospect

manufacturing industry, the NOPAT is 2.36

efforts to address environmental issues throughof mass production, the potential for businessbillion yen.

technologicaldevelopment is quite high.

innovation.

in

CIB

supports

sustainable development in the energy sector
and is working to increase its corporate value to

ROIC

contribute to the achievement of the SDGs.CIB
has secured a competitive advantage in the15%market and created new business opportunities
by patenting copper-ion batteries and othertechnologies.

Connection: Environmental responsiveness and market competitiveness
Financial sustainability ＋

Contribution to social
sustainability

＝

WACC

Low cost and environmentallyfriendly

Sustainability through energy
technology

Assumed average value

CIB is developing a financial strategy to support

CIB is developing copper-ion batteries to provide

WACC is assumed to be 8% as the value of the

R&D and market expansion. Specifically, thesustainable energy solutions. This technology

average manufacturing industry. The excess

company secures

improves

profit spread would then be 7%.

stableearnings

through

energyefficiency,

reducesCO2

businesses related to the manufacture and saleemissions, and contributes to less dependenceof various types of batteries and new energy-

on fossil fuels. The smaller size and lower cost of

related equipment. Copper-ion batteries are athis technology allows it to be installed in smaller

low-cost, environmentally friendly, and simple tofacilities and is expected to expand its use in a

manufacture alternative to lithium-ion batteries.

wide range of industries. This is effective in

These innovative technological developments

preventing global warming and offers society astrengthen the financial sustainability of CIB andnew model for sustainable energy use.

keep it competitive in the market.

WACC

8%

*¹Compiled by JPR based on company disclosures and its own estimates of post-company plan estimates. JPR did not interview the company.
This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

20 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

Summary of growth value of four companies
Company name

Net sales

Invested
capital

NOPAT

ROIC

Excess profit

Shareholder
value impact

Danto Power
Incorporated

8 billion yen 3.2 billion yen

480 million
yen

15%

220 million yen

2.8 billion yen

Helix Co., Ltd

8 billion yen

6 billion yen

900 million
yen

15%

420 million yen

5.25 billion yen

Mobility
Energy7.1 billion yen
Circulation
Co.,Ltd.

5.33 billion
yen

800 million
yen

15%

370 million yen

4.66 billion yen

CIB Solution
Co.,Ltd.

21 billion yen

15.75 billionyen

2.36 billion
yen

15%

1.1 billion yen 13.78 billion yen

Total

44.1 billion
yen

30.28 billionyen

4.54 billion
yen

15%

2.11 billion yen 26.49 billion yen*JPR's own estimates of post-plan estimates based on company disclosures. JPR has not interviewed the company. Rounded to two decimal places.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation to buy or sell securities.
JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on this report. The responsibility for securities
and other transactions rests solely with the investor. Please refer to the last page of this report for more information on precautions.

21 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

Reference 1. For those new to JPR reports
GCC
Management™
Analysis
Visualize thevalue gap
betweentheoreticalshareholder
value andmarketcapitalization

Analyze by the three elements of Growth, Connection, andConfidence.
A framework for directly linking qualitative stories to shareholder
valueThis report analyzes corporate value from the perspective of GCC Management™,a framework developed by J-Phoenix Research Corporation ("JPR"), emphasizing
three elements: Growth (sales growth), Connection (improved human andbusiness connections = higher return on capital), and Confidence (improved trust= lower business risk). The following chart shows the overall picture of the GCC
Management™ framework. The following diagram shows the overall picture. The
qualitative future story is linked to financial indicators, which are finallyintegrated to estimate shareholder value. Using the excess profit method (see"Appendix 3. Basis of Calculation" at the end of this report), JPR estimates the
final theoretical shareholder value and visualize the value gap by comparing itwith the market capitalization.

GCC Management™ Analysis Framework

Source: JPRThis report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation tobuy or sell securities. JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on thisreport. The responsibility for securities and other transactions rests solely with the investor. Please refer to the last page of this report for more
information on precautions.

22 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

GCC
Management™
Evaluation
System
Evaluate thefeasibility of the
Growth andConnection storyof the value
creation processfrom threeperspectives

Evaluation of Growth and Connection
Evaluate the feasibility of qualitative stories from threeperspectives
JPR evaluates the feasibility of the value creation process based on GCC
analysis from three perspectives: conceptual design, implementation
design, and actual performance. "Conceptual design" is defined as"conceptualizing the concept of the value creation process" and"implementation design" is defined as "creating and operating a system
to systematize and implement the management resources necessary torealize the concept of the value creation process. Value creation
becomes an "achievement" only when "conceptual design" becomes"implementation design. JPR conducts subjective evaluations of"conceptual design," "implementation design," and "performance,"
which are then rated in an easy-to-understand manner at 90%, 70%,
50%, 30%, and 10%. Specifics are described below.

Conceptual Design," "Implementation Design," and "Performance" Evaluation
Framework% indication

90%

70%

50%

30%

”Conceptual
design”

Conceptual
design is very
logicallyorganized

Conceptual
design isapproximately
logicallyorganized

Conceptual
Conceptual
design is about design ishalfwayorganized to aorganized
certain degree

Conceptual
design isorganized to acertain degree”Implementation
design”

Conceptual
design isalmostimplemented

Conceptual
design isalmostimplemented

Conceptual
Conceptual
design isdesign is about
implemented
half
to a certain
implemented
degreeConceptual
design has
been
implemented,
albeitmarginally.

”Performance”

Targetedoutcomes areobserved as
actual results
almost exactly
as intended by
the conceptual
designTargetedoutcomes areobserved as
actual results
almost exactly
as intended by
the conceptual
designTargetedoutcomes areobserved as
actual results
as intended by
the conceptual
design about
half way
through

Targetedoutcomes areobserved asachievements,
albeit slight, as
intended by
the conceptual
designTargetedoutcomes areobserved as
actual results
to a certain
degree, as
intended by
the design10%

Source: JPRThis report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation tobuy or sell securities. JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on thisreport. The responsibility for securities and other transactions rests solely with the investor. Please refer to the last page of this report for more
information on precautions.

23 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

Evaluation of Confidence
Evaluation of financial stability and social contribution

Credibility of thevalue creation
process

JPR evaluates the feasibility of the value creation process based on GCC
analysis from three perspectives: “Conceptual Design”, “Implementation
Design” , and “ Actual Performance.” "Conceptual Design" is defined as"conceptualizing the concept of the value creation process" and"Implementation Design" is defined as "creating and operating a system
to systematize and implement the management resources necessary torealize the concept of the value creation process. ” Value creation
becomes an " Actual Performance" only when "Conceptual Design"
becomes "Implementation Design.” JPR conducts subjective evaluationsof "Conceptual Design," "Implementation Design," and " Actual
Performance," which are then rated in an easy-to-understand manner at
90%, 70%, 50%, 30%, and 10%. Specifics are described below.

"Conceptual Design," "Implementation Design," and " Actual
performance" Evaluation Framework% indication

90%

70%

50%

30%

10%

Financial Stability
The evaluation is based on a five-point
scale from the viewpoint of sufficientexperience in the value creation
process, differentiated value creation
capabilities that are difficult to imitate,
low risk of fluctuations such as
economic and seasonal fluctuations
due to stockholding, and an optimized
capital-liability structure.

Very
Highlycommendable

Can beevaluated
Highlyas a listedcommendcompanyable
onaverageCan becommendable to acertaindegreeVeryHighlycommendable

Can beevaluated
Highlyas a listedcommendcompanyable
onaverageCan becommendable to acertaindegreePartially
commendable

Social Contribution
The social issues addressed are
generally of great importance tosociety, the path to their solution is not
yet clear, and they are tackling achallenging task that requires both thecreation of a new concept and thesystematic creation of the optimal
governance structure for its
implementation.

Partially
commendable

Source: JPRThis report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation tobuy or sell securities. JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on thisreport. The responsibility for securities and other transactions rests solely with the investor. Please refer to the last page of this report for more
information on precautions.

24 / 26

TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

Reference 1. Basis of Calculation
Corporate value
estimated by useof ROIC andexcess return

Excess return analysis framework
Excess profit or economic value added is globally used as an indicator to estimate
corporate value, evidenced by its adoption by Kao Corporation, a Grand Prix
winner of the Tokyo Stock Exchange Fifth Corporate Value Improvement Award(FY2016). In the calculation of excess return, corporate value can be broken down
into four elements: invested capital, excess return value, growth value, and nonbusiness assets. This facilitates a better understanding of the structure that creates
corporate value. A company might be overvalued or undervalued when its market
cap is higher or is lower than its theoretical corporate value, respectively. The
contribution of each year's corporate value can be visualized in the following
figure, wherein shareholders' equity is simply represented as a sum of invested
capital and non-business asset, subtracting interest-bearing debts. The figure
below allows us to estimate how many years of growth might be incorporated into
the stock price.

Breakdown of corporate value using excess return[source] JPR

Estimated excess return is profit that exceeds investors' return expectations
against invested capital. Its present value is “ excess return value, ” while a
potentially growing portion of excess return is “ growth value. ” Moreover, assets
not used in business are added as non-business asset value in estimating atheoretical corporate value. Theoretically, the estimated corporate value using
excess return should be the same as the value estimated using the discount cash
flow (DCF) model. This report calculates excess return by using the following
figures in a simplified manner.

Excess return = NOPAT – Invested capital X WACC
Net Operating Profit After Tax (NOPAT) = Operating profit X (1 - Effective tax rate)
Invested capital = Total assets – Non-business assets – Current liabilities excluding Interest-bearing debt
Non-business assets = Cash and deposits exceeding 10% of sales + Short-term investment securities +Investment securities + Deferred gains or losses on hedges + Land revaluation difference + Foreign currencytranslation adjustments
Weighted average cost of capital (WACC) = After-tax interest rate of interest-bearing debt ☓(D/ (E+D)+Cost ofshareholders' equity ☓(E/D+E)
Cost of shareholders' equity=0.5%+5%☓ββ = Slope of a linear regression line of five-year daily returns of TOPIX and the stock price of the target
companyE = Market cap at the time of calculation
D = Short-term interest-bearing debt + Long-term liabilities + Minority interests in the latest financial
statements at the time of calculation
This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation tobuy or sell securities. JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on thisreport. The responsibility for securities and other transactions rests solely with the investor. Please refer to the last page of this report for more
information on precautions.

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TSE Standard DANTO HOLDINGS CORPORATION[5337]issued date:June11,2024

DisclamerThis report is issued by Toward the Infinite World, Inc. and IFIS JAPAN LTD. (hereafter“Issuers”) under the brand name “ANALYST NET” (a registered trademark) and written byexternal partners and analysts as its main authors.
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In the report issued under the brand name “ANALYST NET,” we aim to provide information andexplanations about the target companies using a nontraditional approach. In principle, the Issuers do
not seek a review of or authorization for the contents herein. (However, we highlight any errors orincorrect wording to the authors.)□Issuers may receive compensation directly or indirectly from the target companies in the project
proposal and infrastructure offering to issue this report.

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External partners and analysts may receive compensation directly or indirectly from the target
companies for additional work apart from writing this report. The external partners and analysts may
have already been involved or may be involved in some trading of securities of target companies in
the future.

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This report is created for the purpose of providing information that investors can refer to when they
are making decisions about investments and not for soliciting trading of securities or other financial
products. Investors are responsible for their final decisions on the trading of securities or otherfinancial products.

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Although the authors collected information during interviews with the target companies to create thisreport, the hypothesis and opinions in this report do not reflect the views of such companies and arefrom the authors' analyses and evaluations.

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Although this report is based on information that the authors believe to be reliable, we do notguarantee the accuracy, completeness, and/or timeliness of the contents. The opinions and forecasts
in this report are conducted at the time of publication and may be changed without notice.

□In any event, Issuers and authors are not liable for any direct, indirect, incidental, or special damages
that the investors may incur by relying on the information and analysis contained in this report.

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All contents of this report are the copyright of Issuers unless otherwise stated. No part of suchinformation shall be reproduced, sold, displayed, distributed, published, amended, or used forcommercial purposes without the Issuer's consent.

This report is prepared by J-Phoenix Research Inc. ("JPR") for the purpose of providing information to investors and is not intended as a solicitation tobuy or sell securities. JPR shall not be liable for any consequences, including any direct or indirect damages, resulting from the use of or reliance on thisreport. The responsibility for securities and other transactions rests solely with the investor. Please refer to the last page of this report for more
information on precautions.

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