Note: 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.
The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from thetranslation.

Securities Code: 6482
June 2, 2022
Dear Shareholders,

Notice of Convocation for
the 49 Ordinary General Meeting of Shareholdersth

We would like to express our deepest appreciation for your continued support and patronage.
Notice is hereby given that the 49th Ordinary General Meeting of Shareholders of YUSHINPRECISION EQUIPMENT CO., LTD. will be held as set out below:
If you do not expect to attend the meeting in person, you may exercise your voting rights in writing or
via electromagnetic means (the Internet and others). Please refer to the enclosed Reference Documents for
the General Meeting of Shareholders and exercise your voting rights by 5 p.m. on Tuesday, June 21, 2022
(JST) at the latest.
Details1.
2.

Date and Time:
Place:

Wednesday, June 22, 2022 at 10 a.m.
Conference Room on the 6th Floor,
Head Office of YUSHIN PRECISION EQUIPMENT CO., LTD.
555 Kuzetonoshiro-cho, Minami-ku, Kyoto

3.

Objectives of the Meeting:
Matters to be reported:a)b)

Business Report and Consolidated Financial Statements for the49th Fiscal Year (from April 1, 2021 to March 31, 2022) as well as
the audit reports from the Accounting Auditor and the Board of
Corporate Auditors on the Consolidated Financial Statements
Report on the Non-Consolidated Financial Statements for the 49th
Fiscal Year (from April 1, 2021 to March 31, 2022)

Agenda for resolution:
Proposal 1: Partial Amendments to the Articles of Incorporation
Proposal 2: Election of Eight (8) Directors
Sincerely Yours,
Takayo Kotani
Representative Director and President
YUSHIN PRECISION EQUIPMENT CO., LTD.
555 Kuzetonoshiro-cho, Minami-ku,
Kyoto, Japan

Notes:
If any changes have been made to the matters appearing in the Reference Documents for the General Meeting of Shareholders,Business Report, Non-Consolidated Financial Statements or Consolidated Financial Statements, such changes will be posted on
the Company’s website: (https://www.ype.co.jp)
Of the documents required to be appended to this Notice of Convocation as attachments, “Consolidated Statements of Changes
in Net Assets”, “Basis of Preparing Consolidated Financial Statements and other Notes”, “Statements of Changes in Net Assets”
and “Significant Accounting Policies and other notes”, have been posted on the Company’s website (https://www.ype.co.jp) in
accordance with laws and regulations and Articles of Incorporation, and are therefore not included in the attached documents.
Besides, “Consolidated Statements of Changes in Net Assets”, “Basis of Preparing Consolidated Financial Statements and otherNotes”, “Statements of Changes in Net Assets” and “Significant Accounting Policies and other notes” were audited by the
Accounting Auditor and the Corporate Auditor as part of the Consolidated Financial Statements and the Non-consolidated
Financial Statements in preparing the Audit Report.

– 1 –Reference Documents for the General Meeting of Shareholders

Proposal 1: Partial Amendments to the Articles of Incorporation
1. Reasons for the proposal
The amended provisions stipulated in the proviso of Article 1 of the Supplementary Provisions of the
Law for Partial Amendment of the Companies act (Law No. 70 of 2019) will be enforced on September 1,
2022. The Company proposes to amend its Articles of Incorporation in preparation for the introduction ofan electronic delivery system for the materials of the General Meeting of Shareholders, as follows.
(1) Paragraph 1, Article 14 of the proposed amendment stipulates that electronic provision measures shallbe taken with respect to the information contained in the Reference Documents for the General
Meeting of Shareholders, etc.
(2) Paragraph 2, Article 14 of the proposed amendment establishes provisions for limiting the scope ofmatters to be stated in the document to be provided to shareholders who request for delivery of
documents.
(3) Internet Disclosure and Deemed Provision of Reference Documents for the General Meeting of
Shareholders (Article 14 of the current Articles of Incorporation) shall be no longer necessary, andtherefore they shall be deleted.
(4) In conjunction with the above-mentioned addition and deletion, the Supplementary Provisions
concerning the effective date, etc. shall be established.
2. Details of the proposed amendment
The details of the proposed amendment are as follows:(Amendments are underlined)
Proposed Amendment(deleted)

Current Articles of Incorporation(Internet Disclosure and Deemed Provision ofReference Documents for the General Meeting of
Shareholders)
Article 14:
When the Company convenes the General
Meeting of Shareholders, the Company discloses
reference documents for the General Meeting of
Shareholders, business reports and information to
be described or indicated in financial statements
and consolidated financial statements through theInternet in accordance with the provisions
stipulated in the Ordinance of the Ministry ofJustice and those documents or information can bedeemed as provided to the shareholders.
(Newly established)(Measures of Electronic Provision, etc.)
Article 14:
The Company provides information containing in
the reference documents for the General Meetingof Shareholders, etc. by electronic means when the
Company convenes a General Meeting of
Shareholders.

– 2 –(Measures of Electronic Provision, etc.)
Article 14:
2.
Of the matters in regard to measures of Electronic
Provision, the Company shall not need to provide
all or part of the documents stipulated in theordinance of the Ministry of Justice to theshareholders who request the documents to beprovided in writing before the record date entitled
to exercise voting rights.
(Supplementary provision)(Transitional measures of Electronic Provision
providing documents for the General Meeting of
Shareholders)
Article 1:
The deletion of Article 14 (Internet Disclosure andDeemed Provision of Reference Documents for
the General Meeting of Shareholders) and additionof the proposed amendment of Article 14(Measures of Electronic Provision, etc.) shall takeeffect as of September 1, 2022.
2.
Notwithstanding the provision of the preceding
paragraph, Article 14 (Internet Disclosure andDeemed Provision of Reference Documents for
the General Meeting of Shareholders) shall be still
effective for the General Meeting of Shareholders
held within six (6) months from September 1,
2022.
3.
This supplementary Provision of this section shallbe deleted on the date after six (6) months passed
since September 1, 2022 or the date after three (3)months passed since the date of the General
Meeting of the Shareholders in the preceding
paragraph, whichever comes later.

– 3 –Proposal 2: Election of Eight (8) Directors
The terms of all Directors (8 members) will expire at the conclusion of this General Meeting of
Shareholders.
The Company therefore requests Shareholders to vote for these eight (8) candidates for Directors.
The candidates for the position of Directors are as follows.

No.

1

Current position in
the Company

Name

Takayo Kotani

Areas of responsibility,
and representation ofother organizations

Representative Director andPresident

Reappointment

2

Yasushi Kitagawa

Reappointment

Executive Managing Director

General Manager of
Manufacturing Division
and General Manager ofPurchasing Division

3

Kota Oda

Reappointment

Managing Director

General Manager
General Affairs
Department

4

Tomohiro Inano

Reappointment

Director

General Manager ofSales Division

5

Masahito Fukui

Reappointment

Director

General Manager ofCorporate Management
Department

6

Yasuo Nishiguchi

Director

Chairman of YAMADA
Consulting Group Co.,Ltd.

Director

Professor emeritus at
Kyoto University

Director

Director of LUCKLAND
CO., LTD. (Audits
Committee)
Outside Director of
Mandom Corporation

Reappointment
External Independent

Reappointment
7

Hiroshi Matsuhisa
External Independent

Reappointment
8

Reiko Nakayama
External Independent

– 4 –

of

No.

Career summary, position, areas of responsibility,
and representation of other organizations

Name(Date of birth)

Reappointment

Takayo Kotani
1(August 26, 1977)

April 2008
October 2008
April 2009
April 2019
June 2019
June 2020
October 2020
June 2021

Joined the Company
Manager of R&D Section
General Manager of R&D Department
Executive Officer and General Manager of R&D Department
Executive Officer and General Manager of R&D Division
Managing Director and General Manager of R&D Division
Director, Executive Vice President
and General Manager of R&D Division
Representative Director and President (to present)

Number of shares held: 1,968,532 shares
Reasons for appointment:
Takayo Kotani has been involved in R&D, promotion of development strategies and management, and has a wealth ofexperience and achievements. Her achievements have been recognized socially, such as receiving the Japan Society of
Mechanical Engineers Prize for the development of robot technology. Since June 2021, she has served as
Representative Director and President, providing leadership in formulating management strategies for sustainablegrowth and strengthening the organizational structure of the Company. The Company has renominated her for
Director because can be expected to strengthen the decision-making and supervisory functions of the Board of
Directors.
Reappointment
September 2007
November 2007
April 2008
April 2009

August 2009
June 2010
June 20132

Yasushi Kitagawa(August 12, 1958)

June 2017

July 2020
June 2021

Joined the Company
Deputy General Manager of Manufacturing Division
Deputy General Manager of Manufacturing Division
and Quality Assurance Department
Executive Officer,
Deputy General Manager of Manufacturing Division
and Quality Assurance Department
Executive Officer, General Manager of Manufacturing Division
and Quality Assurance Department
Director and General Manager of Manufacturing Division
and Quality Assurance Department
Managing Director and General Manager of Manufacturing Division
and Quality Assurance Department
Executive Managing Director
and General Manager of Manufacturing Division
and Quality Assurance Department
Executive Managing Director
and General Manager of Manufacturing Division
Executive Managing Director
and General Manager of Manufacturing Division
and General Manager of Purchasing Division (to present)

Reasons for appointment: 4,800 shares
Reasons for appointment:
Yasushi Kitagawa has been engaged in management and operation of production, thus having a wealth of experiencein the business. The Company has renominated him for Director because can be expected to strengthen the decisionmaking and supervisory functions of the Board of Directors.

– 5 –

No.

Career summary, position, areas of responsibility,
and representation of other organizations

Name(Date of birth)

Reappointment
October 2015
April 2019
June 2020
June 2021
3

Kota Oda

Joined the Company
as General Manager of General Affairs Department
Executive Officer
and General Manager of General Affairs Department
Directorand General Manager of General Affairs Department
Managing Director
and General Manager of General Affairs Department (to present)(June 10, 1978)
Number of shares held: 10,000 shares
Reasons for appointment:
Kota Oda has been involved in management and operation of general affairs, human resources, work style reformpromotion, governance strengthening and compliance strengthening, etc., thus having a wealth of experience in thebusiness. The Company has renominated him for Director because can be expected to strengthen the decision-making
and supervisory functions of the Board of Directors.
Reappointment
June 1989
August 2005
April 2008

4

Tomohiro Inano(December 13, 1962)

July 2009
February 2010
March 2011
March 2014
June 2017

Joined the Company
General Manager of YUSHIN PRECISION EQUIPMENTTRADING (SHENZHEN) CO., LTD.
General Manager of Chinese Area and YUSHIN PRECISIONEQUIPMENT TRADING (SHENZHEN) CO., LTD.
Assistant to General Manager of Sales Division
Deputy General Manager of Sales Division
General Manager of Sales Division
Executive Officer and General Manager of Sales Division
Director and General Manager of Sales Division (to present)

Reasons for appointment: 3,400 shares
Reasons for appointment:
Tomohiro Inano has been involved in management and operation of sales, thus having a wealth of experience in thebusiness. The Company has renominated him for Director because can be expected to strengthen the decision-making
and supervisory functions of the Board of Directors.
Reappointment
October 2013
July 2015
April 2017

April 2020

5

Masahito Fukui

June 2020(June 30, 1960)

Joined the Company as General Manager of Internal Audit Office
General Manager of Accounting Department
Executive Officer
and General Manager of Corporate Management Department
and General Manager of Accounting Department
Executive Officer
and General Manager of Corporate Management Department
Directorand General Manager of Corporate Management Department (topresent)

Number of shares held: 5,000 shares
Reasons for appointment:
Masahito Fukui has been involved in management and operation of group accounting and finance, IT systemmanagement, and auditing, etc., thus having a wealth of experience in the business. The Company has renominatedhim for Director because can be expected to strengthen the decision-making and supervisory functions of the Board of
Directors.

– 6 –

No.

Career summary, position, areas of responsibility,
and representation of other organizations

Name(Date of birth)

Reappointment
March 1975
June 1987
June 1992
June 1997
June 1999
June 2003
June 2005

Yasuo Nishiguchi
6(October 9, 1943)

April 2006
June 2009
June 2014
March 2015
June 2016
March 2018
April 2020

External

Independent

Joined Kyoto Ceramic Co., Ltd.(currently Kyocera Corporation)
Director
Senior Managing Director and Representative Director
Executive Vice president and Representative Director
President and Representative Director
President and Representative Director and President
and Executive Officer
Chairman of the Board and Representative Director,
and Chief Executive Officer
Advisor and Director
Retired from the office of Director
External Director of the Company (to present)
Chairman and CEO of Socionext Inc.
Outside Director of YAMADA Consulting Group Co., Ltd.
Retired from Chairman and CEO of Socionext Inc.
Chairman of YAMADA Consulting Group Co., Ltd. (to present)

Number of shares held: 42,600 shares
Reasons for selection as a candidate for External Director and expected role:
The Company has renominated Yasuo Nishiguchi as a candidate for External Director to continue to utilize hisknowledge and experience in all aspects of management, which he has cultivated through his key positions as President
and Representative Director and the Chairman of Kyocera Corporation, in the management of the Company. He is
expected to strengthen the functions of the Board of Directors of the Company by providing management advice andsupervision from an independent standpoint, utilizing his specialized knowledge as a person with management
experience.
Reappointment
June 1976
October 1987
April 1994

Hiroshi Matsuhisa
7

April 2012
June 2014
June 2016(August 5, 1947)
June 2018

External Independent

Research Assistant of school of precision engineering in Faculty ofEngineering at Kyoto University
Assistant professor
Professor( transferred to graduate school of department of MechanicalEngineering and Science by a reorganization in 1995 )Professor emeritus at Kyoto University (to present)
External Director of the Company (to present)
Outside Corporate Auditor ofTechnology Seed Incubation Co., Ltd.
Retired from Outside Corporate Auditor ofTechnology Seed Incubation Co., Ltd.

Number of shares held: 15,000 shares
Reasons for selection as a candidate for External Director and expected role:
The Company has renominated Hiroshi Matsuhisa as a candidate for External Director to continue to utilize his expertiseas an academic expert in engineering in the management of the Company. He is expected to strengthen the functions of
the Board of Directors of the Company by providing advice and supervision of management from an independent
standpoint. Although he has no experience for business administration directly, the Company judges that he has the ability
to perform duty properly as an External Director of the Company as mentioned above.

– 7 –

No.

Career summary, position, areas of responsibility,
and representation of other organizations

Name(Date of birth)

Reappointment
April 1983

Reiko Nakayama

8(April 2, 1959)

January 1997
March 2000
October 2004
October 2008
February 2009
March 2013
March 2015
March 2016

June 2018
June 2019
Number of shares held: 15,062 shares

External Independent

Joined Japan Associated Finance Co., Ltd. (currently JAFCO Group
Co., Ltd.)
Joined Marusan Securities Co., Ltd.
General Manager of Investment information
General Manager of Underwriting
Part-time Director of LivTech, Inc.
Director and Head of Administrative H.Q. of LivTech, Inc.
Retired from the office of Director of LivTech, Inc.
Outside Director of LUCKLAND CO., LTD.
Director of LUCKLAND CO., LTD. (Audits Committee)(to present)
External Director of the Company (to present)
Outside Director of Mandom Corporation (to present)

Reasons for selection as a candidate for External Director and expected role:
The Company has renominated Reiko Nakayama as a candidate for External Director to continue to apply her abundantinsight based on her experience as a general manager of an underwriting department of a securities company, an officer
in charge of administration of an operating company, and an External Director to the management of the Company. She
is expected to strengthen the functions of the Company's Board of Directors by providing management advice andsupervision from an independent standpoint.
Note:
1.
2.
3.
4.

5.

6.

7.

8.

The candidates for Directors have no special interests in the Company.
Takayo Kotani’s registered name is Takayo Oda.
Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama are candidates of External Directors.
Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama are the present External Directors of the Company. Yasuo
Nishiguchi and Hiroshi Matsuhisa, their term of office as Director of the Company is respectively eight (8) years at theclosing of this General Meeting of Shareholders, Reiko Nakayama, her term of office as Director of the Company isfour (4) year at the closing of this General Meeting of Shareholders
The Company has registered Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama as Independent Officers
provided in the rules of the Tokyo Stock Exchange. If Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama arereappointed, the Company plans to continue to make them Independent Officers.
The Company has concluded an agreement with Yasuo Nishiguchi, Hiroshi Matsuhisa, and Reiko Nakayama to limit
their liabilities for damages under Paragraph 1, Article 423 of the Companies Act in accordance with the provisions ofParagraph 1, Article 427 of the Companies Act. The maximum amount of liability for damages under such agreement
shall be the minimum amount of liability under Paragraph 1, Article 425 of the Companies Act. If the reappointment of
Yasuo Nishiguchi, Hiroshi Matsuhisa, and Reiko Nakayama is approved, the agreement will be continued.
The Company has concluded an indemnification agreement with Takayo Kotani, Yasushi Kitagawa, Kota Oda,
Tomohiro Inano, Masahito Fukui, Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama to guarantee theexpenses set forth in Paragraph 1, Article 430-2 of the Companies Act and the loss set forth in Item 1 and 2 of thatparagraph to the extent stipulated by laws and ordinances. If the reappointment of each candidate is approved, theCompany plans to continue the agreement with each person.
The Company has concluded Directors and Officers Liability Insurance (hereinafter referred to as "D&O Insurance") as
stipulated in Paragraph 1, Article 430-3 of the Companies Act with an insurance company. The insurance will coverany damages, etc. (However, damages that fall under the reasons for exemption specified in the insurance contract are
excluded.) that the Corporate Auditors, etc. are liable for damages due to their work. The Company bears the entire
premium for D&O insurance. If Takayo Kotani, Yasushi Kitagawa, Kota Oda, Tomohiro Inano, Masahito Fukui, Yasuo
Nishiguchi, Hiroshi Matsuhisa, and Reiko Nakayama are reappointed, they will continue to be insured by D&O
insurance. The contract period for D&O insurance is one year, and it will be renewed after a resolution by the Board of
Directors before the expiration of the period.

– 8 –Reference information

Skills Matrix of the Directors and Corporate Auditors

Yasushi
Kitagawa

Executive
Managing
Director

Male

✓

✓

✓

Kota
Oda

Managing
director

Male✓

Tomohiro
Inano

Director

Male✓

Masahito
Fukui

Director

Male

✓

Yasuo
Nishiguchi

External Director

Male

✓

HiroshiMatsuhisa

External Director

Male

Reiko
Nakayama

External Director

Female✓KatsumiNoda

Full-time
Corporate
Auditor

Male✓

HirohoKamakura

External
Corporate
Auditor

Male

✓

✓

✓

Naohiro
Tsuda

External
Corporate
Auditor

Male

✓

✓

✓

✓
✓

✓

✓
✓

✓
✓

✓
✓

✓

✓

✓

– 9 –

✓

✓
✓

This table shows the three primary skills of each personnel excluding “Management.”
This table does not show all knowledge or experience of each director and auditor.

✓
✓

✓

✓

Governance,
Risk management
and Compliance✓

IT and DX✓

Finance and Accounting✓

GlobalDevelopment, Engineering,and Quality

FemaleSales and Marketing

Management

Representative
Directorand President

Position

TakayoKotani

Name

GenderHuman resource Development
and Sustainability

The following table shows primary skills (knowledge, experience, capability) of the Directors andCorporate Auditors upon Proposal 2 is approved.

✓✓

(Attached Documents)

Business Report(from April 1, 2021 to March 31, 2022)
1.

Current Business Conditions

Net sales

Operating profit

20,874 million yen

2,890 million yen

13.0% Y/Y

14.6% Y/Y

Ordinary profit

Profit attributable to owners of parent

3,085 million yen

2,112 million yen

18.3% Y/Y

15.6% Y/Y

(1) Progress and achievements
With regard to the global economy during this consolidated fiscal year ended March 31, 2022, theworld economy has shown a recovery trend toward positive growth, partly due to the fact that vaccinations
against COVID-19 have progressed worldwide, and restrictions on business activities have been eased in
an increasing number of regions. However, the future outlook still remains uncertain due to concerns
about negative impacts on productions associated with a lack of semiconductors at a worldwide level andthe rising ocean freight rates, as well as harmful effects caused by geopolitical risks.
Under these circumstances, YUSHIN Group has continued business activities on a global scale while
paying close attention to the possibility of COVID-19 infection and placing the safety of its customers,
business partners and employees as its first priority.
As a result, orders received during this consolidated fiscal year ended March 31, 2022 significantly
increased comparing previous consolidated fiscal year.
As for the consolidated business results for this fiscal year ended March 31, 2022, sales of customordered equipment decreased year on year due to a slow recovery in a large project but sales of take-out
robots increased with results of focusing on sales of new models and keeping on-time delivery in
difficulties of parts procurements. In regard to regional sales, YUSHIN Group increased sales of take-out
robots in Japan and Asia, and also maintained a good sales performance in China and North America. As aresult, Net sales increased by 13.0% year on year to 20,874 million yen.
Operating profit increased by 14.6% year on year to 2,890 million yen due to the increase in Net sales.
Ordinary profit increased by 18.3% year on year to 3,085 million yen due to rise of Foreign exchange
gains and Profit attributable to owners of parent increased by 15.6% year on year to 2,112 million yen.
In addition, YUSHIN Group launched “RC-SE” series, with equipped “Smart ECO Vacuum” function
contributing energy saving, and “SX-41” high-speed side-entry robot, expecting running in a clean room
for medical relating productions in July 2021, and also released “YD” series, with environment friendly
functions, which is a successor model of the main take-out robot, “YC” series in November 2021.
Consolidated net sales by product category(Thousands of yen)
Years ended March 31
Product

2021

2022

Y/Y

Amount%Amount%Take-out robots

11,904,506

64.4

14,282,738

68.4

20.0

Custom-ordered equipment

3,422,063

18.5

3,124,841

15.0

(8.7)

Parts and maintenance service

3,147,394

17.0

3,467,065

16.6

10.2

Total

18,473,964

100.0

20,874,646

100.0

13.0

– 10 –%

Reference information

Current trend of business performances

Net Sales

Ordinary profit(millions of yen)

25,000(millions of yen)

4,000

21,833

20,87420,011

3,085

18,47320,000

3,000

2,791

2,608
2,205

15,0002,000
10,000
1,000

5,000

0

0
FY2019FY2020

FY2021

FY2022FY2019Profit attributable to owners of parent

FY2020

FY2021

FY2022

Earnings per share(millions of yen)

(yen)

2,500

75.00

2,112
1,903

2,000

62.06

1,827

60.00

54.54

1,532

53.70
45.01

1,500

45.00

1,000

30.00

500

15.00

0

0.00
FY2019FY2020

FY2021

R&D Expenditure

FY2022FY2019Equity Ratio

(%)
10.0

80.9

85.3

83.5

83.5
7.2

75.0

7.1
5.7

500

413

369

347

367

250

FY2022

(%)
100.0

750

FY2021

ROE(millions of yen)
1,000

FY2020

50.0

6.5

5.0

25.0

0

0.0
FY2019 FY2020 FY2021 FY2022

0.0
FY2019 FY2020 FY2021 FY2022– 11 –FY2019 FY2020 FY2021 FY2022

Reference information

Sales information

Sales by Product category
Take-out Robots(millions of yen)

Sales Ratio
Take-out Robots

20,00014,282
12,770

FY2022
68.4%

11,904- increased by 2,378 million yen(20.0%) from previous FY to 14,282
million yen- grew as capital investment recovered
after economic activity restarted.

10,000Overseas
7,256 Overseas
7,718

Overseas
8,911

FY2020

FY20220
FY2021

Custom-Ordered Equipment(millions of yen)
5,000

2,500

Sales Ratio
Custom-ordered
Equipment

4,056
3,422

3,124

Overseas
2,034

Overseas
1,840

FY2021

FY2022

Overseas
2,866- decreased by 297 million yen (8.7%)
from previous FY to 3,124 million
yen.
- Medical related sales did not grow,but demand for automation in various
industries is increasing.

0
FY2020Parts and maintenance service

16.6%(millions of yen)

Sales Ratio
Parts andmaintenance service

5,000

3,467
3,185

15.0%FY2022

FY2022

3,147

2,500

Overseas
1,728 Overseas
1,784

Overseas
1,971

FY2020

FY2022- increased by 319 million yen (10.2%)
from previous FY to 3,467 million
yen.
- increased as COVID-19 restrictions
were relaxed.

0
FY2021– 12 –

Reference information

Sales information

Sales by Regions
Japan
39.6%
(millions of yen)
10,0008,159

Sales Ratio
Japan

8,262

FY2022

6,936
5,000

- increased by 1,325 million yen(19.1%) from previous FY to8,262 million yen.
- grew as capital expenditure
recovered.

0
FY2020

FY2021

FY2022

Asia(millions of yen)

Sales Ratio
Asia

10,000

5,900

5,786

6,940

33.2%

5,000

- increased by 1,154 million yen(19.9%) from previous FY to
6,940 million yen.
- Take-out robot sales grew as thedemand in China recovered.

0
FY2020

FY2021

FY2022

FY2022

North America
19.7%(millions of yen)
5,000

3,343

Sales Ratio
North America

4,103
3,375

2,500

- increased by 728 million yen(21.6%) from previous FY to4,103 million yen.
- Take-out robot sales for medicalandsundrygrew
while
automotive was stagnant.

0
FY2020

FY2022

FY2021

FY2022– 13 –

Europe5.2%(millions of yen)

Sales Ratio
Europe3,000

FY2022

2,079
1,782
1,075

1,500

- decreased by 706 million yen(39.7%) from previous FY to
1,075 million yen.
- Custom-ordered equipment for
medical remained slow due to
COVID-19 situation.

0
FY2020

FY2021

FY2022Other areas

2.4%(millions of yen)

Sales Ratio
Other areas

1,000

527

FY2022

593
492

500

- decreased by 101 million yen(17.0%) from previous FY to
492 million yen.

0
FY2020

FY2021

FY2022

Recovery from COVID-19
In FY ended March 2022, although the impact of the newcoronavirus infection (COVID-19) lingered in someregions, demand for take-out robot significantly recoveredin many regions due to a recovery in capital expenditures
after economic activities restarted. In particular, models
tailored to local customer needs were playing an active role,
particularly in China and the Asian region. Demand forhigh-value-added models also increased in the United Statesand Europe.

– 14 –In addition, we have been developing and commencing
sales of take-out robots with enhanced functions that arefriendly to the global environment and new models for the
medical field, which is becoming increasingly important.
Yushin Group contributes to the society and environmental
conservation of the next generation by delivering to ourcustomers' factories the take-out robots that are equippedwith the performance and functions required in the world in
the future.

(2) Capital investment
The total amount of capital investment YUSHIN Group made during this consolidated fiscal year ended
March 31, 2022 was 846 million yen. It was mostly for the cost to acquire the neighboring land, 654
million yen.
(3) Financing activities
No material items to report.
(4) Assets and operating results FY2019 – FY2022
Years ended March 31,

FY2019FY2020

FY2021

FY2022

Net sales(thousands of yen)

21,833,399

20,011,700

18,473,964

20,874,646

Ordinary profit(thousands of yen)

2,791,364

2,205,033

2,608,925

3,085,275

Profit attributable toowners of parent(thousands of yen)

1,903,435

1,532,851

1,827,868

2,112,238

Earnings per share
(yen)

54.54

45.01

53.70

62.06

Total assets(thousands of yen)

33,197,260

31,933,368

34,688,675

36,892,986

Net assets(thousands of yen)

27,117,484

27,471,961

29,199,402

31,047,712

783.03800.04850.95904.77

Book value per share(yen)

Notes: Earnings per share is calculated based on the average number of issued shares during the fiscal year and Book value pershare are calculated based on the number of issued shares at the end of the fiscal year.

(5) Issues to be addressedWith regard to the external environment surrounding YUSHIN Group, it is expected that uncertainty
still remains due to such factors as the prolonged COVID-19 infection and geopolitical risks as well as theglobal logistics disruption. However, in the medium- and long-term, the worldwide trend of production
automation continues in consideration of labor safety and implementation of production efficiency.
Under this environment, YUSHIN Group will continue to capitalize on changes in the businessenvironment swiftly and aim for further development as a leading company in take-out robot industry,based on management philosophy of "Look outward far and wide, constantly seek technologicalinnovation and give back to society for all it has given us." To this end, YUSHIN Group will work to
expand sales of the robots by enhancing product appeal and strengthen global sales development. For
custom-ordered equipment, in response to rising demand for automation both domestically and overseas
due to labor shortages and rising labor costs, YUSHIN Group will continue to work to expand sales anddevelop new businesses.
To improve organization strength, YUSHIN Group will develop human resources and strengthenorganization structure and IT system, and then improve productivity by enhancing quality, efficiency andspeed in operations.
Furthermore, YUSHIN Group will also work to instill corporate identity(CI) created for clarifying the
stance required in order to inherit the strengths and good qualities of YUSHIN and usher in a new era.
YUSHIN Group will increase its effort for the risk management including COVID-19 infection control
and disaster prevention in order to continue providing customers with the products and services. YUSHINGroup will also analyze climate change risks and consider the countermeasures.

– 15 –

(6) Status of major subsidiaries
Name

YUSHIN KOREA CO., LTD.

YUSHIN PRECISIONEQUIPMENT TRADING(SHANGHAI) CO., LTD.
YUSHIN PRECISIONEQUIPMENT TRADING(SHENZHEN) CO., LTD.
YUSHIN PRECISIONEQUIPMENT (TAIWAN) CO.,LTD.

Location

Siheung-Shi,
South Korea

Shanghai,
China
Shenzhen,
Guangdong,
China
Taipei City,
Taiwan(R.O.C.)

Capital stock

Percentage ofshareholding

KRW350 million

100%

US$200,000

100%

US$400,000

100%

NT$5 million

100%

PT. YUSHIN PRECISIONEQUIPMENT INDONESIA

Bekasi,Indonesia

IDR2,841 million

99%

YUSHIN PRECISIONEQUIPMENT (VIETNAM)
CO., LTD.

Hanoi,
Vietnam

US$300,000

100%

YUSHIN PRECISIONEQUIPMENT SDN. BHD.

Selangor,
Malaysia

MYR1 million

100%

YUSHIN PRECISIONEQUIPMENT (THAILAND)
CO., LTD.

Bangkok,Thailand

THB8 million

49%

YUSHIN PRECISIONEQUIPMENT (INDIA) PVT.
LTD.

Chennai,
India

INR17.4 million

97.9%

YUSHIN EUROPE GMBH

Bayern,Germany

EUR25,000

100%

YUSHIN AUTOMATIONLTD.

Worcestershire,
U.K.

GBP150,000

95.6%

YUSHIN AMERICA, INC.

Rhode Island,
U.S.A.

US$8,000

100%

GUANGZHOU YUSHINPRECISION EQUIPMENT
CO., LTD.

Guangzhou,
Guangdong,
China

RMB13.742
million100%– 16 –

Major operations
Sales and maintenance &repair of the Company
products.
Manufacturing, sales andmaintenance & repair ofCustom-ordered equipment
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products.
Manufacturing, sales andmaintenance & repair ofCustom-ordered equipment
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products
Sales and maintenance &repair of the Company
products.
Manufacturing, sales andmaintenance & repair ofCustom-ordered equipment
Manufacturing of theCompany products(7) Major operations (as of March 31, 2022)
Development, manufacture and sale of Cartesian robots and other industrial equipment and systems forfactory automation.
(8) Main sales offices and factories (as of March 31, 2022)
Name

Location

Head Office

Minami-ku, Kyoto-city

Fushimi Factory

Fushimi-ku, Kyoto-city

Technical Center

Minami-ku, Kyoto-city

Higashi-Nihon General Sales OfficeKita-ku, Saitama-city

Nishi-Kanto Sales Office

Atsugi-city, Kanagawa

Nagano Sales Office

Shiojiri-city, Nagano

Tohoku Sales Office

Fukushima-city, Fukushima

Tsukuba Sales Office

Tsukuba-city, Ibaraki

Chubu General Sales Office

Toyokawa-city, Aichi

Shizuoka Sales Office

Suruga-ku, Shizuoka-city

Nagoya-Nishi Sales Office

Kuwana-city, Mie

Nishi-Nihon General Sales Office

Minami-ku, Kyoto-city

Toyama Sales OfficeToyama-city, Toyama

Hiroshima Sales Office

Asaminami-ku, Hiroshima-city

Fukuoka Sales Office

Hakata-ku, Fukuoka-city

Philippines Representative Office

Makati City, Philippines(9) Employees (as of March 31, 2022)
Number of employees

Increase from the end of previous FY

692 (55)

11

Note: The number of employees represents full-timers only (including seconded employees to the Company). Part-timers andother irregular employees are represented separately as their average annual number indicated in parentheses ( ).

(10) Major creditors (as of March 31, 2022)
No items to report.
(11) Other important matters pertaining to the status
No items to report.

– 17 –

2.

Matters Pertaining to the Shares of the Company (as of March 31, 2022)(1) Number of shares authorized:(2) Total number of issued shares:(3) Number of shareholders:(4) Major shareholders:

80,000,000
35,638,066
5,316
Number of shares held
(thousands of shares)

Name

Shareholding ratio (%)

Yushin Industry Co., Ltd.

11,992

35.2

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,958

8.7

Takayo Oda

1,968

5.8

Miki Murata

1,847

5.4

Custody Bank of Japan, Ltd. (Trust Account)

1,380

4.1

The Kyoto Chuo Shinkin Bank, Ltd.

1,088

3.2

Mayumi Kotani

1,040

3.1

RBC IST 15 PCT NON LENDING ACCOUNT-CLIENT
ACCOUNT862

2.5

MUFG Bank, Ltd.

849

2.5

STATE STREET BANK AND TRUST COMPANY
505001

839

2.5

Note:
1. The company holds 1,602,804 shares of treasury shares, but is excluded from the major shareholders shown above.
2. Shareholding ratio is calculated excluding the treasury shares.

– 18 –

3.

Matters Pertaining to Officers of the Company(1) Directors and Corporate Auditors (as of March 31, 2022)
Position

Responsibilities and representation ofother organization

Name

Representative Director
and President

Takayo Kotani

Executive Managing Director

Yasushi Kitagawa

General Manager of Manufacturing Division
and General Manager of Purchasing Division

Managing Director

Kota Oda

General Manager of General Affairs Department

Director

Tomohiro Inano

General Manager of Sales Division

Director

Masahito Fukui

General Manager of Corporate Management Department

Director

Yasuo Nishiguchi

Chairman of YAMADA Consulting Group Co., Ltd.

Director

Hiroshi Matsuhisa

Professor emeritus of Kyoto University

Director

Reiko Nakayama

Director of LUCKLAND CO., LTD. (Audits Committee)
Outside Director of Mandom Corporation

Full-time Corporate Auditor

Katsumi Noda

Corporate Auditor

Corporate Auditor

Hiroho Kamakura

Certified Public Accountant
Outside Corporate Auditor of Trusco Nakayama Corporation
Outside Corporate Auditor of FUJIO FOOD SYSTEM CO.,LTD.
Outside Corporate Auditor of SymEnergy Inc.

Naohiro Tsuda

Attorney
Senior Partner of Naniwabashi Law Office LPC
Outside Corporate Auditor of TOYO SHUTTER CO., LTD.

Notes:
1.
Directors, Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama are External Directors stipulated in Item 15, Article 2of the Companies Act.
2.
Corporate Auditors, Hiroho Kamakura and Naohiro Tsuda are External Corporate Auditors stipulated in Item 16, Article 2 of
the Companies Act.
3.
Corporate Auditor, Hiroho Kamakura is a Certified Public Accountant and has specialist knowledge in finance and accounting.
4.
The Company has designated Director, Yasuo Nishiguchi, Director, Hiroshi Matsuhisa , Director, Reiko Nakayama, Corporate
Auditor, Hiroho Kamakura and Corporate Auditor, Naohiro Tsuda as Independent Officers as prescribed by the Tokyo Stock
Exchange and reported to the Exchange.

– 19 –

5.

Change of Directors and Corporate Auditor during the period under review
Name

Before change

After change

Date of change

Mayumi Kotani

Representative Director
and President

Honorary Chairperson

June 22, 2022

Takayo Kotani

Directorand Executive Vice President
and General Manager of R&D Division

Representative Director
and President

June 22, 2022

Satoshi Kimura

Executive Managing Director
and General Manager of Purchasing DivisionNon-full-time Corporate Advisor

June 22, 2022

Yasushi Kitagawa

Kota Oda

Executive Managing Director
Executive Managing Director
and General Manager of Manufacturing Division June 22, 2022
and General Manager of Manufacturing Division
and General Manager of Purchasing Division
Director
Managing Director
June 22, 2022
and General Manager of General Affairs
and General Manager of General Affairs
Department
Department

Naohiro Tsuda---

External Corporate Auditor

June 22, 2022

Yoshihisa Nakanishi

Full-time Corporate Auditor

Resigned

June 22, 2022

Michitoshi Morimoto

External Corporate Auditor

Resigned

June 22, 2022

6.

7.

8.

The Company has concluded an agreement with Yasuo Nishiguchi, Hiroshi Matsuhisa, Reiko Nakayama, Katsumi Noda,
Hiroho Kamakura and Naohiro Tsuda to limit their liability for damages under Paragraph 1, Article 423 of the Companies
Act in accordance with the provisions of Paragraph 1, Article 427 of the Companies Act. The maximum amount of liability
for damages under such agreement shall be the minimum amount of liability under Paragraph 1, Article 425 of theCompanies Act.
The Company has concluded an indemnification agreement with Takayo Kotani, Yasushi Kitagawa, Kota Oda, Tomohiro
Inano, Masahito Fukui, Yasuo Nishiguchi, Hiroshi Matsuhisa, Reiko Nakayama, Katsumi Noda, Hiroho Kamakura andNaohiro Tsuda to guarantee the expenses set forth in Item 1, Article 430-2 of the Companies Act and the loss set forth in
Item 2 of that paragraph to the extent stipulated by laws and ordinances.
The Company has concluded Directors and Officers Liability Insurance (hereinafter referred to as "D&O Insurance") as
stipulated in Paragraph 1, Article 430-3 of the Companies Act with an insurance company. The scope of insured persons under
the D&O insurance is Directors, Corporate Auditors, Executive Officers and Employees. The insurance will cover thedamages, etc. (However, damages that fall under the disclaimer stipulated in the insurance contract are excluded) when theinsured persons become liable for damages due to business operations. The Company bears the entire premium for D&O
insurance.

(2) Policy for Determining the Content of Remuneration and the Other for Directors
1. Policy under this consolidated fiscal year ended in March, 2021
At a meeting of the Board of Directors held on February 5, 2021, the Company passed a resolution on
the policy for deciding the details of remuneration, etc. for each individual director. The Board of
Directors has consulted the Nomination and Compensation Committee regarding the details of theresolution and received its report.
The Board of Directors has confirmed that the method of determining the content of remuneration, etc.
and the content of remuneration, etc. determined are consistent with the relevant decision policy and thatthe report from the Nomination and Compensation Committee has been respected, and has determined thatthe content of remuneration, etc. for individual Directors for the relevant fiscal year is in line with therelevant decision policy.
[1] Policy on determining the amount of remuneration, etc. for each individual director and the methodof calculation thereofRemuneration for Directors of the Company consists of fixed remuneration and performancelinked remuneration, the level of which is determined in consideration of business performance andother factors. Remuneration, etc., for External Directors consists of fixed remuneration, and it is ourpolicy not to pay performance-linked remuneration from the viewpoint of independence for businessexecution.

– 20 –

[2] Details of the performance indicators pertaining to the performance-linked remuneration, etc. and themethod of calculating the amount or number of such performance-linked remuneration, etc.
The performance-linked remuneration is indexed to ordinary income, which is a financial figurethat indicates the earnings status of the Company.
[3] Policy on determining the ratio of remuneration, etc. to the amount of remuneration, etc. for eachindividual director
The Company's current remuneration system for Directors consists of fixed remuneration (basic
remuneration) and performance-linked remuneration, with performance-linked remuneration basedon short-term performance. The remuneration composition ratio for Directors is set based on the levelof companies with similar business scale and related performance and business categories as theCompany.
[4] Policy on determining the timing and conditions of remuneration, etc. to be paid to Directors
The basic remuneration for Directors of the Company is fixed monthly remuneration, which isdetermined by comprehensively taking into account the duties they are in charge of, the performanceof each fiscal year, and the degree of their contribution. Bonuses for directors are paid once a year inaccordance with performance indicators and the degree of achievement of targets for a single fiscal
year.
[5] Matters concerning the delegation of decision on the details of individual remuneration, etc. of
Directors
The Nomination and Compensation Committee, which is an advisory body to the Board of
Directors, deliberates on the remuneration system for Directors and other matters, reports to theBoard of Directors or expresses its opinions, and the President and Representative Director, who is
entrusted by the Board of Directors, decides the amount of remuneration, etc. for Directors based on
the above calculation policy.
The contents delegated to the representative directors is the amount of basic remuneration for eachdirector and the evaluation and allocation of bonuses based on business performance. The
Nomination and Compensation Committee is chaired by External Director Yasuo Nishiguchi, and its
other members consisted of Representative Director and President Mayumi Kotani, Director andExecutive Vice President Takayo Kotani, External Director Hiroshi Matsuhisa, External Director
Reiko Nakayama, External Corporate Auditor Hiroho Kamakura, and External Corporate Auditor
Michitoshi Morimoto on or before June 21, 2021, and have consisted of Representative Director andPresident Takayo Kotani, External Director Hiroshi Matsuhisa, External Director Reiko Nakayama,
External Corporate Auditor Hiroho Kamakura, and External Corporate Auditor Naohiro Tsuda on orafter June 22, 2021
No other non-monetary remuneration for Directors is treated.
2. Future Considerations
At the meeting of the Board of Directors held on March 7, 2022, the Company reviewed thecompensation system for directors based on the resolution approved at the General Meeting of
Shareholders and adopted a new policy.
Under the new policy, the objectivity and fairness of the compensation decision-making process havebeen enhanced, and the Company has clarified its policy of establishing a system of medium-to long-term
performance-linked compensation in accordance with the degree of achievement of the plan and theenhancement of corporate value while advancing the formulation and implementation of the medium-term
management plan.
The new executive compensation system has been implemented since April 2022, and the monthly
remuneration is scheduled to begin from July 2022, and short-term performance bonuses and mediumterm performance and stock price-linked bonuses are scheduled to begin from June 2023.

– 21 –

(3) Total remuneration and other payments made to Directors and Corporate Auditors

Classification

Total remunerationand other payments(Thousands of yen)

Total amount by type of remuneration and otherpayments (Thousands of yen)Fixed
remuneration

Performancelinked
remuneration,etc.

Non-monetary
remuneration,etc.

Number oftargetDirectors/
Corporate
Auditors

Directors(Excluding External
Directors)

187,950

155,550

32,400-7

External Directors

16,80016,800--3

Subtotal

204,750

172,350

32,400-10

Corporate Auditors(Excluding External
Corporate Auditors)

15,00015,000--2

External Corporate Auditors

8,700

8,700

-

-

3

Subtotal

23,70023,700

-

-

5

Total

228,450

196,050

32,400-15

Notes:
1.
The 48th Ordinary General Meeting of Shareholders held on June 22, 2021 resolved total remuneration for all Directors within
700,000 thousand yen per year (including remuneration for External Directors within 100,000 thousand yen.) At the end of
the General Meeting of Shareholders, the number of Directors was eight (8) (including three (3) External Directors.)
There are currently no Directors who have concurrent employment positions.
2.
The 43rd Ordinary General Meeting of Shareholders held on June 20, 2016 resolved total remuneration for all Corporate
Auditors within 100,000 thousand yen per year. At the end of the General Meeting of Shareholders, the number of Corporate
Auditors was four (4.)
3.
The index related to executive bonuses, such as performance-linked remuneration, is ordinary profit, and the Company has
selected this index because it is a financial figure that indicates the profit status of the Company. The calculation method of
performance-linked remuneration, etc. is determined by multiplying the index by a certain coefficient for each position after
comprehensively considering the duties in charge, performance of each period, contribution level, etc. (The target of the index
related to performance-linked remuneration for the current fiscal year is 2,100,000 thousand yen, and the actual result is
2,604,428 thousand yen.)4.
The procedure for determining the amount of remuneration for officers is as follows: The Nomination and Compensation
Committee first deliberates on the remuneration system for directors, and then reports or gives opinions to the Board of
Directors. Then, Representative Director and President (Mayumi Kotani on or before June 21, 2021, Takayo Kotani on orafter June 22, 2021) who has been entrusted by the Board of Directors, makes the decision within the upper limit resolved at
the General Meeting of Shareholders, taking into consideration their duties, achievements and contributions for each term.
The reason for delegating to the Representative Director is that the Company has determined that it is suitable for evaluating
the duties of each Director, taking into consideration the business performance of the Company as a whole. In addition, theNomination and Compensation Committee deliberates on important policies in advance to determine the delegated content.
5.
Other than the remunerations mentioned above, based on the resolution of the 33rd Ordinary General Meeting of
Shareholders held on June 29, 2006, the Company paid a retirement benefit of 66,780 thousand yen to a retired director at
the end of the 48th Ordinary General Meeting of the Shareholders. The plan for retirement benefits for directors andcorporate auditors was terminated at the 33rd Ordinary General Meeting of Shareholders held on June 29, 2006, and no
additional reserve has been recorded since then. The amount of 66,780 thousand yen had been reserved according to theperiod during which she was appointed as a director before June 2006.

(4) External Directors and External Corporate Auditors[1] Important position at other organizations and the relationship between the Company and otherorganizations.
- Yasuo Nishiguchi is the Chairman of YAMADA Consulting Group Co., Ltd. There is no special
relationship between the Company and YAMADA Consulting Group Co., Ltd.
- Hiroshi Matsuhisa is a professor emeritus of Kyoto University. There is no special relationshipbetween the Company and Kyoto University.
- Reiko Nakayama is the Director of LUCKLAND CO., LTD. (Audits Committee) and the Outside
Director of Mandom Corporation. There is no special relationship between the Company and
LUCKLAND CO., LTD. and Mandom Corporation.
- Hiroho Kamakura is the Outside Corporate Auditor of Trusco Nakayama Corporation, FUJIO
FOOD SYSTEM CO., LTD. and SymEnergy Inc. There is no special relationship between the
Company and Trusco Nakayama Corporation, FUJIO FOOD SYSTEM CO., LTD., and
SymEnergy Inc.
- Naohiro Tsuda is a Senior Partner of Naniwabashi Law Office LPC and an Outside Corporate
Auditor of TOYO SHUTTER CO., LTD. There is no special relationship between the Company
and Naniwabashi Law Office LPC and TOYO SHUTTER CO., LTD.
– 22 –

[2] The following describes the activities during the period under review.
Position and Name

Director, Yasuo Nishiguchi

Director, Hiroshi Matsuhisa

Director, Reiko Nakayama

Attendance, Remarks and Outline of Duties Performed
Regarding the Roles Expected of External Directors
In the period under review, Yasuo Nishiguchi attended all of 13 Meetings ofBoard of Directors. Based on his wide knowledge and experience across therunning a company which he had cultivated through holding prominent
corporate positions such as President and Representative Director, andChairman of the Board and Representative Director at Kyocera Corporation, hesupervises and advises management from a professional and independent
standpoint. He plays an appropriate role in ensuring the adequacy of decision
making. Also, as a member of the Nomination and Compensation Committee,
he attended all of 4 Committee Meetings held in the current fiscal year andleads the supervisory function in the process of selecting executive candidates
and determining executive compensation, etc. from an objective standpoint.
In the period under review, Hiroshi Matsuhisa attended all of 13 Meetings ofBoard of Directors. Based on the specialized knowledge by the person withacademic standing in engineering, he supervises and advises management froma professional and independent standpoint. He plays an appropriate role inensuring the adequacy of decision making. Also, as a member of theNomination and Compensation Committee, he attended all of 4 Committee
Meetings held in the current fiscal year and take on the supervisory function in
the process of selecting executive candidates and determining executive
compensation, etc. from an objective standpoint.
In the period under review, Reiko Nakayama attended all of 13 Meetings ofBoard of Directors. Based on her experience of securities company
underwriter, and management executive officer and outside officers ofoperating companies, she supervises and advises management from a
professional and independent standpoint. She plays an appropriate role inensuring the adequacy of decision making. Also, as a member of theNomination and Compensation Committee, she attended all of 4 Committee
Meetings held in the current fiscal year and take on the supervisory function in
the process of selecting executive candidates and determining executive
compensation, etc. from an objective standpoint.
Attendance and Remark

Position and Name

Corporate Auditor, Hiroho Kamakura

Corporate Auditor, Naohiro Tsuda

In the period under review, Hiroho Kamakura attended 12 of 13 Meetings ofBoard of Directors and all of 8 Meetings of the Board of Corporate Auditors.
Based on the specialized knowledge as a Certified Public Accountant, he asked
questions to clarify ambiguities that arose with respect to matters reported or
resolved, and provided opinions. Additionally, he perused the reports of theinternal auditing results, exchanged opinions concerning auditing, andparticipated in joint discussions on important matters. In addition to receiving
the Accounting Auditor’s detailed report on regular basis, he also regularly
exchanged opinions with top management. Also, as a member of theNomination and Compensation Committee, he attended all of 4 Committee
Meetings held in the current fiscal year and expressed his opinions on thelegality.
Naohiro Tsuda attended all of 10 Meetings of Board of Directors and all of 6
Meetings of the Board of Corporate Auditors held after he took up his position
on June 22, 2021. Based on the specialized knowledge as an attorney, he asked
questions to clarify ambiguities that arose with respect to matters reported or
resolved, and provided opinions. Additionally, he perused the reports of theinternal auditing results, exchanged opinions concerning auditing, andparticipated in joint discussions on important matters. In addition to receiving
the Accounting Auditor’s detailed report on regular basis, he also regularly
exchanged opinions with top management. Also, as a member of theNomination and Compensation Committee, he attended all of 2 Committee
Meetings held after he took up his position in the current fiscal year andexpressed his opinions the on legality.

Note:
In addition to the frequency of convening meetings of the Board of Directors described above, there were 5 times of written
resolutions adopted, deeming that there have been resolutions of the Board of Directors Meetings pursuant to Article 370 of
the Companies Act and Article 24 of the Articles of Incorporation.

– 23 –

4.

Matters Pertaining to Accounting Auditor(1) Name of Accounting Auditor: Grant Thornton Taiyo LLC
Note: Deloitte Touche Tohmatsu LLC resigned at the end of the 48th Ordinary General Meetingof Shareholders. They were the accounting auditor of the Company.
(2) Amount of compensation and other payments for the Accounting Auditor
The amount of compensation and other payments payable to the
Accounting Auditor for the reporting year
Total amount of monetary and other property benefits payable by theCompany and its subsidiaries

30,000 thousand yen
30,000 thousand yen

Notes1: In the audit contract between the Company and the Accounting Auditor, audit fees pursuant to the Companies Act
and those pursuant to the Financial Instruments and Exchange Act are not clearly separated and this separation ispractically impossible. Therefore, the amount of compensation and other payments to the Accounting Auditor isrepresented as the total payment.
2: Upon receipt of the necessary materials and reports from the Directors, in-house related departments andAccounting Auditor, the Board of Corporate Auditors acknowledged the details of the audit and status of thecourse of accounting duties by the Accounting Auditor, the grounds for calculation of the estimated remuneration
for auditing, and reviews of the audit calculation. As a result, the Board of Corporate Auditors believes that theaudit remuneration presented by the Accounting Auditor was appropriate and gave consent under Paragraph 1,
Article 399 of the Companies Act.

(3) Policy for making decisions regarding the dismissal or non-reappointment of Accounting
Auditor
The Board of Corporate Auditors will determine the content of the proposals relating to the dismissal or
non-reappointment of the Accounting Auditor, to be submitted to the General Meeting of Shareholders,should the execution of the Accounting Auditor’s duties be impeded, is deemed necessary by the Board of
Corporate Auditors,
The Board of Corporate Auditors will dismiss the Accounting Auditor should it determine that same
corresponds to the provisions in each item of Paragraph 1, Article 340 of the Companies Act, with theagreement of all the members of the Board of Corporate Auditors. In such a case, a Corporate Auditor
appointed by the Board of Corporate Auditors will report the fact of and the reason for the dismissal of the
Accounting Auditor to the first General Meeting of Shareholders called after the dismissal.
(4) Outline of the Contents of the Contract for Limitation of Liability
Based on the provisions of Paragraph 1, Article 427 of the Companies Act, Grant Thornton Taiyo LLC,
which is an Accounting Auditor, has entered into a contract for limitation of liability for damages underParagraph 1, Article 423, of the Companies Act. The maximum amount of liability for damages based on
the contract is the minimum amount stipulated by law.

– 24 –

5.

Matters Pertaining to the Development of Systems to Ensure a Properness of Operations

The Company has established the basic policy of Internal Control System for the development of asystem to ensure that the execution of duties by Directors conforms to laws and regulations, and the
Articles of Incorporation as well as other systems that ensure the properness of operations of theCompany, as follows. (Board of Directors Resolution on June 12, 2015) The main points of the basic
policy are as follows.
(1) System to ensure that business execution of Directors and employees complies with laws andregulations and the Articles of Incorporation.
The Company raises the awareness for and holds training on legal compliance to increase awareness ofcompliance as well as establishes “Whistle-Blowing Regulations” providing the procedure for reporting
violations.
(2) System for keeping and managing the information on business execution of the Company’s
Directors.
Information is kept and managed according to laws and regulations, and internal regulations(“Document Regulations,” “Contract management rules,” “Internal Information Management
Regulations,” “Basic policy on information security”, “Information System Management Regulations”,“Personal Information Management Regulations”, “Personal Information Protection Policy (Privacy
Policy)”, “Regulations for the Proper Handling of Specific Personal Information”, etc.)(3) Regulations on and other systems for risk management of losses of the Company and our
subsidiaries.
Risk of currently estimated losses is managed by setting a committee and making discussion according
to degree of its significance. Events delivering losses to the Company would be reported to Directors andCorporate Auditors by the Executive in charge and discussed and managed by all executives.
(4) System to ensure effective business execution by Directors of the Company and our subsidiaries.
Effective business execution by Directors is ensured by followings.
[1] The Board of Directors determines significant matters and oversees business execution by Directors.
[2] Information is shared among Directors, Executives, and Corporate Auditors at executive meetings.
[3] Notice of significant matters on management, understanding of status and business instructions are
conducted at management meetings and YSM management meetings.
[4] At the subsidiaries meetings, the information regarding the Company and its subsidiaries is sharedand significant matters are discussed at the Board of Directors of the Company to resolve issues.
(5) The systems to ensure appropriate works of the corporate group consisting of the Company andits subsidiaries, and to make reports to the Company on matters concerning business execution
by Directors of subsidiaries.
The Internal Control System is developed as well as “Subsidiaries Management Regulations” obligates
subsidiaries to make periodic reports relating to business results, fiscal conditions and other significant
information of subsidiaries.
At the subsidiaries meetings, the information regarding the Company and its subsidiaries is shared andsignificant matters are discussed at the Board of Directors of the Company to resolve issues.
(6) System to ensure effective Corporate Auditors’ audit.
Corporate Auditors attend the Board of Directors meetings and required significant meetings including
management conference as well as read major approval documents and other significant documents
concerning business execution and receives explanation from Directors and employees of the Company
and Directors of subsidiaries as necessary.

– 25 –

(7) System on employees assisting works of the Company’s Corporate Auditors when Corporate
Auditors require allocation of the assisting employees.
Employees assisting the work of the Company’s Corporate Auditors can be allocated as staff asnecessary. Corporate Auditor has the authority to give instructions and orders to his or her Corporate
Auditor staff.
(8) System to ensure that those reporting to the Board of Corporate Auditors and Corporate
Auditors, etc. are not unfavorably treated for the reason of the report.
The Company ensures that executives and employees reporting to Board of Corporate Auditors andCorporate Auditors are not treated unfavorably because of the report and thoroughly inform the whole
company of this.
In the “Whistle-Blowing Regulations,” it is prescribed to prohibit dismissal and give other unfavorable
treatment for the reason of the report.
(9) Matters on the policy for dealing with expenses or debts resulting from business execution of theCompany’s Corporate Auditors.
The Company, when Corporate Auditors require the Company to make advance payment in respect ofbusiness execution according to Article 388 of the Companies Act, immediately deals with the relevant
expenses and debts unless it is considered unnecessary to make advance payments.
(10) Systems on Eliminating Anti-Social Forces
The Company assumes a resolute attitude to anti-social forces threatening order and security of civilsociety as well as closely exchanges information and cooperates with the relevant specialized agencies
including police against anti-social forces and thoroughly informs employees of the above policy.
In order to improve the effectiveness and efficiency of operations, to ensure reliability of financial
reports, and to expansively develop the operations of the internal control system aimed at securing assets
and compliance to laws and regulations pertaining to business activities according to the Basic Policy forInternal Control System, The Internal Control Regulations and the Committee of Internal Control
Operations Regulations have been enacted.
The scope of responsibility of the Board of Directors and Corporate Auditors as well as the system for
implementation and details of activities for executives and employees, and the procedures for evaluation
and reporting were clarified in the internal control Regulations. Furthermore, basic policy on themaintenance and operation of Internal Control is formulated. The structure of the committee aimed at
facilitating internal control as well as how to promote its mission and activities were clarified in theCommittee of Internal Control Operations Regulations, and the activities are promoted.

– 26 –

6.

Overview of the Business Operations of Systems to Ensure a Properness of Operations

Major operational status of the Internal Control System executed by the YUSHIN Group in the current
consolidated fiscal year is as follows.
(1) Status of addressing compliance
The Company enhances to strengthen and ensure compliance through establishing regulations andactivities, as follows.
[1] Regarding company rules and regulations, the Company provides information concerning recent
trends in relevant laws and regulations, and implements and ensures company regulations (“Office
Regulations”, “Contract management rules”, “Internal Information Management Regulations”, “Basic
policy on information security”, “Information System Management Regulations”, “Personal
Information Management Regulations”, “Personal Information Protection Policy (Privacy Policy)”,“Regulations for the Proper Handling of Specific Personal Information”, “Harassment Prevention
Regulations”, etc.) And the Company also compiled “YUSHIN Organizational Knowledge Book”(Y-Book) as an organization’s knowledge collection to improve operation quality, maintaining
disciplines, and instill awareness of compliance.
[2] As for enlightenment and training, the Company is conducting enlightenment and training on
compliance, important rules and insider trading prevention, and is working to instill complianceawareness. The Company also conducts an internal questionnaire on power harassment, and based on
the results, it is working to create an environment that prevents harassment.
[3] In order to prevent compliance violations from occurring, detect violations at an early stage, andrespond promptly and effectively when a violation is discovered, the Company has establishedinternal and external contacts to provide opportunities for reporting and to strengthen their operation.
[4] In addition, as a response to the revision of the Electronic Book Maintenance Act, the Company has
introduced a system for storing electronic transaction data and begun the operation. The Company
has also established rules concerning the preparation of operating procedures, and has once again
clarified how to handle important documents and confidential matters of the Company, and is
working to ensure that all employees are fully aware of these rules within the Company.
(2) Status of addressing the risk management of losses
For the risk management overall, the Committee of Internal Control offers consultations for
implementation of companywide measures. If any event causing damage to the Company arises, theDirector in charge immediately reports to the Board of Directors and the Board of Corporate Auditors, andall executives will offer consultations to take action, while efforts to avoid risks are also being enhancedby having the Corporate Auditors conduct inspections and hearings on any event that is seen to have therisk of causing damage.
In addition, to minimize risks that may occur, the Company has prepared the "Yushin Disaster
Prevention and Business Continuity Plan (BCP Manual)", and regularly conducts drills on disaster andpersonal safety confirmation systems, etc. as a confirmation of operations.
Moreover, the Company has established relevant regulations and provide education to protect
information assets and personal information.
(3) Status of addressing to conducting proper and efficient execution of assigned duties
Assigned duties of the Directors are executed efficiently as described below.
[1] Board of Directors determines significant matters and supervise the status of business execution of
the Directors.
[2] The Nomination and Remuneration Committee has been established as an advisory body aiming toincrease the objectivity, appropriateness and transparency of the composition of the Board of
Directors and the nomination and remuneration of Directors, etc. to link the medium- to long-term
growth of the Company group and increase its corporate value. The selection of candidates of
Directors and Corporate Auditors and the compensation system for directors are discussed by the
Nomination and Remuneration Committee, and a report or opinion is given to the Board of Directors[3] In order to further improve the functions of the Board of Directors, the Company is conducting aninternal questionnaire on the analysis and evaluation of the effectiveness of the Board of Directors asa whole, and analyzing and evaluating the results to make improvements.
[4] Significant matters are discussed among Directors, Executive Officers and Corporate Auditors at theexecutive meetings thereby sharing such significant information.
[5] Significant matters relating to the corporate management are communicated at management meetings.
– 27 –

The operating status of the Company is monitored and necessary guidance is provided.
(4) Status of addressing the proper operations of the business group consisting of the Company andits subsidiaries
In order to promote the development of the internal control system, “Internal Control Regulations” and“Committee of Internal Control Operations Regulations” have been enacted at the Board of Directors’
meeting held on February 7, 2018. Specifically, the scope of responsibilities of the Board of Directors andCorporate Auditors concerning internal control, as well as the system for implementation (supervision,actual system for implementation, etc.) and details of activities (policy, process to promote thedevelopment of operations, etc.) for executives and employees and the procedures for evaluation andreporting (scope of target, procedure, correction measures in case of deficiencies, etc.) were clarified by“Internal Control Regulations”, while the structure of the committee aimed at facilitating internal control,
as well as how to promote its mission and activities (supervision, system for implementation, scope oftarget activities, education, etc.) were clarified in “Committee of Internal Control Operations
Regulations.” Based on “Internal Control Regulations”, along with the basic policy on the development
and operation of Internal Control, the Company has enacted a basic plan for conducting evaluations andare promoting activities. Furthermore, the Company’s subsidiaries hold meetings three (3) times a year soas to share information relating to the Company and its subsidiaries and monitoring status of business
operations.
(5) Ensuring of effectiveness of Corporate Auditors’ audit
Corporate Auditors conduct audits pursuant to the audit policies and the audit schedule as prescribed by
the Board of Corporate Auditors by attending the Board of Directors and executive meeting, management
meeting and other meetings. Corporate Auditors conduct interviews on the status of execution of duties by
the Directors and the Internal Audit Office and then inspect significant decisions as noted in the
documentation, such as the approval documents, contracts and agreements. Corporate Auditors also
investigate the statuses of business operations, corporate properties and fraudulent acts relating to theperformance of Directors’ duties, infringement of rights and violations of laws and regulations, and the
Articles of Incorporation.
At conducting audit, Corporate Auditors utilize the expertise of the external corporate auditors, andkeep internal coordination with the Internal Audit Office. Other than that, Corporate Auditors develop thestandards and guidelines called “Audit Practice Standards relating to the Internal Control System” forCorporate Auditors conducting audits of the Company’s Internal Control System, and conduct audits
pursuant to such practice standards.

– 28 –

7.

Policy Concerning Decisions on the Dividends of Surplus

The YUSHIN Group manages its businesses considering the return of profits to shareholders as one of
its important managerial issues.
To that effect, it is the basic policy of the YUSHIN Group to proactively return profits to shareholders
by maintaining a stable operational base, improving its ROE and effectuating dividends based on theperformance results of each respective fiscal year. Specifically, the YUSHIN Group has a target at therealization of 30% and more of dividend payout ratio to consolidated Profit attributable to owners of theparent.
For this fiscal year, the year-end dividend is decided to be 10 yen per share. This makes the full-year
dividend of 19 yen per year with the interim dividend of 9 yen per share.

– 29 –

Consolidated Financial Statements
Consolidated Balance Sheets (as of March 31, 2022)
Account(Thousands of yen)AmountAccount

ASSETS
Current assets

AmountLIABILITIES
24,500,630

Current liabilities

5,668,885

Cash and deposits

12,404,898

Notes and accounts payable - trade

1,710,595

Notes and accounts receivable trade5,905,288

Electronically recorded obligations- operating

935,700

Merchandise and finished goods

1,074,756

Accounts payable - other519,785

Work in process

1,203,508

Accrued expenses

236,362

Raw materials and supplies

3,571,482

Income taxes payable

560,244

Consumption taxes receivable

87,049Advances received

1,162,547

Prepaid expenses

170,071

Provision for bonuses

300,053

Other

91,445

Provision for bonuses for directors

32,400Allowance for doubtful accounts(7,869)Provision for product warranties

137,341

Other

73,854Non-current assets

12,392,355

Property, plant and equipment

10,926,037

Buildings

3,755,406

Structures

Non-current liabilities

176,388

Retirement benefit liability

100,402

94,048Deferred tax liabilities

24,179Machinery equipment andVehicles119,383

Other

51,807

Tools, furniture and fixtures

131,560

Total liabilities

Land

5,845,274

NET ASSETS

6,812,488

Leased assets

1,090

Shareholders’ equity

29,866,827

Construction in progress

12,058

Share capital

1,985,666

Intangible assets

186,751

Capital surplus

2,024,597

Telephone subscription right

11,430Retained earnings

27,212,010

Software101,051

Treasury shares(1,355,446)

Others74,270Investments and other assets

1,279,566

Investment securities

263,848

Retirement benefit asset

264,457

Deferred tax assets

647,939

Total accumulated othercomprehensive income
Valuation difference on availablefor-sale securities
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans

Other

181,809

Non-controlling interests

Allowance for doubtful accounts(78,488)

Total net assets

31,047,712

Total liabilities and net assets

36,892,986

Total assets

36,892,986– 30 –

927,367
88,637796,769
41,960253,516

Consolidated Statements of Income (from April 1, 2021 to March 31, 2022)
Account(Thousands of yen)AmountNet sales

20,874,646

Cost of sales

11,883,001

Gross profit

8,991,644

Selling, general and administrative expenses

6,100,809

Operating profit

2,890,835

Non-operating income
Interest and dividends income

12,432

Purchase discounts

7,963

Foreign exchange gains

96,608

Surrender value of insurance policies

71,930

Other

6,795

195,729

1,289

1,289

Non-operating expenses
Other
Ordinary profit

3,085,275

Extraordinary income
Gain on sales of non-current assets

1,311

1,311

221

221

Extraordinary loss
Loss on sales and retirement of non-current assets
Profit before income taxes

3,086,364

Income taxes - current

958,781

Income taxes – deferred(6,320)

Profit952,461
2,133,903

Profit attributable to non-controlling interests

21,664

Profit attributable to owners of parent

2,112,238– 31 –

Non-Consolidated Financial Statements
Balance Sheets (as of March 31, 2022)
Account(Thousands of yen)AmountAccount
LIABILITIESASSETS
Current assets

Amount18,983,304

Current liabilities

4,133,455

Cash and deposits

9,282,145

Notes payable - trade

31,806

Notes receivable - trade

1,618,841

935,700

Accounts receivable - trade

3,841,921

Electronically recorded obligations operating

503,929

Accounts payable - trade

1,571,001

Work in process

1,012,546

Accounts payable - other413,659

Raw materials and supplies

2,119,796

Merchandise and finished goods

Accrued expenses

144,531

Prepaid expenses

71,775

Income taxes payable

467,613

Consumption taxes receivable

87,049Advances received

142,973

Other

445,399

Provision for bonuses

293,000

Provision for bonuses for directors

32,400Allowance for doubtful accounts(100)

Non-current assets

12,437,330

Property, plant and equipment

10,069,861

Provision for product warranties

83,000

Buildings

3,320,553

Other

17,767Structures

94,048

Total liabilities

4,133,455

Machinery and equipment

35,355

VehiclesTools, furniture and fixturesLand

62
93,8076,512,884

Leased assets

1,090

Construction in progress

12,058Intangible assets

108,549

NET ASSETS
Shareholders’ equity

27,198,542

Share capital

1,985,666

Capital surplus

2,023,903

Legal capital surplus
Retained earnings

2,023,903
24,544,419

Telephone subscription right

11,430Legal retained earnings

286,314

Software97,119Other retained earnings

24,258,104

Investments and other assets

2,258,919

Investment securities
Stocks of subsidiaries andaffiliates

263,848

Investments in capital ofsubsidiaries and affiliates

297,873

Deferred tax assets

590,364

Other

255,903

Allowance for doubtful accounts
Total assets

851,320

Reserve for dividend equalization

1,000,000

General reserve

8,700,000

Retained earnings brought forward

14,558,104

Treasury shares
Valuation and translation adjustments(390)
31,420,635

Valuation difference on available-forsale securities(1,355,446)
88,637
88,637

Total net assets

27,287,179

Total liabilities and net assets

31,420,635– 32 –

Statements of Income (from April 1, 2021 to March 31, 2022)
Account(Thousands of yen)AmountNet sales

15,088,961

Cost of sales

9,147,111

Gross profit

5,941,850

Selling, general and administrative expenses

4,125,385

Operating profit

1,816,464

Non-operating income
Interest income

2,929

Dividend income

644,382

Purchase discounts

7,963

Foreign exchange gains

52,961

Surrender value of insurance policies

71,930

Other

8,884

789,051

1,088

1,088

Non-operating expenses
Other
Ordinary profit

2,604,428

Extraordinary income
Gain on sales of non-current assets

369

369

Extraordinary losses
Loss on sales and retirement of non-current assets

202

Loss on valuation of shares of subsidiaries

22,274

Profit before income taxes

22,4772,582,320

Income taxes - current

649,783

Income taxes - deferred(20,734)

Profit629,049
1,953,271– 33 –

[Certified copy of the Accounting Auditors’ Report concerning consolidated statutory report](There is no TRANSLATION. Please refer to INDEPENDENT AUDITORS’ REPORT written in
Japanese.)– 34 –

[Certified copy of the Accounting Auditors’ Report concerning non-consolidated statutory report](There is no TRANSLATION. Please refer to INDEPENDENT AUDITORS’ REPORT written in
Japanese.)– 35 –

[Certified copy of the Audit Report of the Board of Corporate Auditors](TRANSLATION)

Audit Report
Regarding the performance of duties by the Directors for the fiscal year from April 1, 2021 to March 31,
2022, the Board of Corporate Auditors hereby submits its audit report, which has been prepared throughdiscussions based on the audit report prepared by each Corporate Auditor.
1.

Auditing Methods adopted by the Corporate Auditors and Board of Corporate Auditors and Details of
Such Methods(1) The Board of Corporate Auditors established auditing policies, allocation of duties, and other relevant
matters, and received reports from each Corporate Auditor regarding his or her audits and results
thereof, as well as received reports from the Directors, other relevant personnel, and the Accounting
Auditors regarding performance of their duties, and requested explanations as necessary.
(2) Each Corporate Auditor complied with the auditing standards of Corporate Auditors established by
the Board of Corporate Auditors, followed the auditing policies, allocation of duties, and otherrelevant matters, communicated with the Directors, the Internal Audit Office, other employees, andany other relevant personnel, and made efforts to optimize the environment for information collection
and audit, and conducted audits as follows.
[1] Participated in the Board of Directors’ Meetings and other important meetings, received reports
from the Directors, employees, and other relevant personnel regarding performance of theirduties, requested explanations as necessary, examined important authorized documents andassociated information, and studied the operations and financial positions at the head office andprincipal offices. In addition, with respect to subsidiaries, we communicated and exchanged
information with Directors, Corporate Auditors, and other relevant personnel of the subsidiaries,
and received business reports from subsidiaries as necessary.
[2] We received periodic reports and requested explanations as necessary from the Directors, otherrelevant personnel and expressed our opinion about conditions of construction and applicationon the content of the resolution of the Board of Directors and system actually placed as “Internal
Control System” in accordance to this resolution, which is stipulated in Paragraphs 1 and 3,
Article 100 of the Enforcement Regulation of the Companies Act as a system required to ensure
the compliance of laws and regulations, and the Articles of Incorporation in the execution ofbusinesses by the Directors and necessity to ensure a properness of operation in the businessgroup consisting of the Company and its subsidiaries written in the business report.
[3] We monitored and verified whether the Accounting Auditors maintained their independence andimplemented appropriate audits, and we received reports from the Accounting Auditors
regarding the performance of their duties and requested explanations as necessary. In addition,
we received notice from the Accounting Auditors that “the system for ensuring that duties are
performed properly” (matters set forth in each Item of Article 131 of the Company Accounting
Rules) is appropriately established in accordance with “Quality Control Standard on Audit”(Business Accounting Council, October 28, 2005) and requested explanations as necessary.
Based on the above methods, we examined the business report and its supporting schedules, the nonconsolidated financial statements (Balance Sheets, Statements of Income, and Statements of Changes in
Net Assets) and its supporting schedules, and the consolidated financial statements (Balance Sheets,Statements of Income, and Statements of Changes in Net Assets) related to the relevant business year.

– 36 –

2.

Audit Results(1) Results of Audit of Business Report and Other Relevant Documents[1] In our opinion, the business report and supporting schedules are in accordance with the related
laws and regulations and Articles of Incorporation, and fairly represent the Company’s
condition.
[2] With regard to the performance of duties by the Directors, we have found no evidence ofwrongful action or material violation of related laws and regulations, nor of any violation withrespect to the Articles of Incorporation.
[3] In our opinion, resolutions of the Board of Directors for the Internal Control System arefair. And also the contents of the business report about the Internal Control System, and the
Director’s activities and implementation have no issues to be pointed out.
(2) Results of Audit of Financial Statements and Supporting Schedules
In our opinion, the methods and results employed and rendered by the Accounting Auditors, Grant
Thornton Taiyo LLC, are fair and reasonable.
(3) Results of Audit of Consolidated Financial Statements
In our opinion, the methods and results employed and rendered by the Accounting Auditors, Grant
Thornton Taiyo LLC, are fair and reasonable.

May 16, 2022

Board of Corporate Auditors,
YUSHIN PRECISION EQUIPMENT CO., LTD.
Full-time Corporate Auditor
External Corporate Auditor

Katsumi Noda [SEAL]
Hiroho Kamakura [SEAL]

External Corporate Auditor

Naohiro Tsuda [SEAL]– 37 –

Topics
YD series launched - main product
The Company launched YD series, its main product and changed from YC series in November 2021,
focusing on four themes (environmental impact reduction, productivity improvement, more operator
friendliness, and less downtime) that are often requested by customers, and have equipped YD series withthose functions to realize customers’ requests.
As for the environmental load reduction, which are expected to be increasingly required in the future,
the Company has developed Smart ECO Vacuum, which reduces CO2 emissions by significantly reducing
air consumption (up to 78% reduction), ECO Monitor, which displays power and air consumption status inreal time, and Ecology Mode, which automatically slows down and adjusts the running speed of take-out
robots.
In addition, the Company has prepared a lot of functions that contribute to improving the productivityof customers. They enjoy popularity among our users. The one of the functions of YD series includes
third-generation CFRP that was improved fromCFRP used in the YC-series to reduce vibrational
magnitude by 13% and a take-out diagnostic function that assists in determining the source of the take-out
failure.

<YD Series>
Exhibited at FIP in France
The Company exhibited YD series, the main take-out robot, at FIP Exhibition in Lyon, France in April
2022. This is the first exhibition for the Company in France. The visitors put high value on the robots for
its eco-friendliness, high-speed, vibration damping, and clean room compatibility. Europe is where thedemand for injection molding related equipment is high, and the Company is trying to expand its sales togrow more in global market. The Company is planning to exhibit at K2022 (Dusseldorf, Germany), thelargest exhibition for the plastic-industry in the world, in autumn 2022.

– 38 –

Sustainability Initiatives
Based on YUSHIN management philosophy, the Company aims to achieve sustainable growth andmaximize corporate value over the medium-and-long term while earning the trust of our shareholders andall other stakeholders.
The Company recognizes that addressing sustainability issues is one of the important management
issues. The Company strives to develop products that contribute to energy conservation at customers'
plants, and to reduce electricity consumption and CO2 emissions in our activities. Through these efforts,
we aim to manage our business with minimal environmental impact.
The Company believes that these ideas and initiatives are closely related to the United Nations
Sustainable Development Goals (SDGs.) The Company will continue to strive to strengthen sustainability
through our business activities.
1. Continuous Development of Energy-Saving Products
As part of the Company’s Environmental Action Policy, all of its employees are committed to making
environmental contributions in product developments and to reducing environmental impacts.
The Company continues to develop energy-saving products as a manufacturer of production equipment
operating 24/7 at customers’ plants.
RC-SE series, launched in July 2021, incorporates SmartECO Vacuum(PAT.P), which evolved fromthe ECO Vacuum®, the Company’s proprietary technology to reduce the air consumption. By lowering theconsumption up to 78%, the model has successfully reduced electrical usage on air compressors.

Smart ECO Vacuum
2. Addressing Climate Change
Since April 2022, the Company has been converting 100% of the electricity used at the HQs, TechnicalCenter, and all domestic local offices contracted directly with power supply companies. The Company has
achieved this by buying electricity generated by renewable energy sources, and consuming solar power
generated in our plant.
In addition, the Company announced our support to the recommendations of Task Force on Climaterelated Financial Disclosures (TCFD) in April 2022.

Domestic subsidiaries and power usage

Power source map– 39 –