Itoki (TYO: 7972)
Designing tomorrow's 'work'.
Office DX Company

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Summary◇Itoki is one of the leading office furniture companies, founded in Osaka in 1890. It ischaracterized by its high design quality and integrated manufacturing and sales system. Its
mission statement is "We Design Tomorrow. We Design WORK-Style." The company
advocates Office 3.0, the DX of the office. It promotes the manufacture and sale of officefurniture and the provision of comprehensive services to support the improvement ofoffice productivity.
◇President Koji Minato's leadership and improvement in performance and corporate
value: Under President Koji Minato, who has been at the helm as President andRepresentative Director since March 2022, the company's profitability has improved
markedly, and the share price has also appreciated this. Expectations are high for his futureskills.
◇Business overview: the leading businesses are Workplace business and Equipment /Public business.
◇ Workplace business: It provides services such as manufacturing and selling officefurniture, office repairs, assembly and construction, office space design, and project
management for office relocation. It is adding value by strengthening its proposals andconsulting services to improve office productivity and will promote Office 3.0, which uses
data to provide office operational support. In FY12/2023, sales were 94.2 billion yen,operating profit was 6.1 billion yen, and operating profit margin was 6.5%.

As of 9 May, 2024
Share price (5/8)

1,871 Yen

52weeks high/low¥2,200/756
Avg Vol (3 month)
683 thou shrs
Market Cap¥99.8 bn
Enterprise Value¥81.7 bn
PER (24/12 CE)
12.1 XPBR (23/12 act)
1.54 XDividend Yield (24/12 CE)
2.77 %ROE (TTM)
11.3 %
Operating margin (TTM)
6.4 %Beta (5Y Monthly)
1.56
Shares Outstanding
49.100 mn shrs
Listed market

TSE Prime section

Share price performance
Stock pricevs. TOPIX index (RHS)◇ Equipment / Public business: It provides logistics solutions such as warehousing andautomated logistics system equipment, equipment for research facilities, andenvironmental and space construction for public facilities. No. 1 supplier of shuttle-type
automated warehouses. FY12/2023 sales: 36.8 billion yen, operating profit: 1.9 billion yen,operating profit margin: 5.2%.
◇FY12/2023: the results of the reforms kicked in: In FY12/2023, sales reached 132.9
billion yen (+8% YoY) and operating profit 8.5 billion yen (+86% YoY), with sales, operating
profit, recurring profit and net profit all reaching record highs. This was due to a steadybuild-up of renewal projects and office relocations "with an emphasis on profit".
◇New medium-term management plan "RISE TO GROWTH 2006": aiming to move into a'highly profitable phase': The new medium-term management plan announced by thecompany in February 2024 positions the period from 2024 to 2026 as a 'highly profitablephase' to enhance sustainable growth potential. The company aims to maximise its
business value by combining sales of goods and services on a consolidated basis in
response to the growing need to improve productivity in offices, the DX-isation of offices
and the IoT-isation of office equipment. More precisely, it consists of the vital strategy '7
Flags' based on the concept of 'Tech x Design based on PEOPLE' and the ESG strategy. The
financial targets are sales of 150 billion yen, operating profit of 14 billion yen, operating
profit margin of 9% and ROE of 15% (> estimated cost of capital of 9-10%) in FY12/2026.
The company is also committed to reducing the cost of capital and fully meeting today's
demands of the stock market to maximise shareholder value and increase PBR.
◇Share price trends and highlights: the company's share price rose from JPY 347 to JPY
1,782 from the end of March 2022, when President Minato took office, to the end of March
2024, with PBR rising from below 1x to around 1.5x. It is believed that the management
policy and performance under President Minato's regime have significantly turned aroundthe investment sentiment concerned about the receding office needs that became
apparent with COVID-19 and the company's past low-profit structure. Going forward, thecompany's management is expected to move to the next stage, with a strong need to
improve office productivity, an emphasis on profitability on a consolidated basis, increased
motivation for employee ingenuity, a higher proportion of sales from selling functions, andthe materialisation of new profit opportunities outside of domestic offices. The progress ofthe medium-term management plan, both quantitatively and qualitatively, will be closely
monitored.

Itoki | 5/8/2024% ofShare prices
Relative share price

1mo.
7.2%
11.0%

3mo. 12mo.
25.0% 136.4%
16.2% 78.9%

Points of interest
Office furniture manufacturer that designs
tomorrow's 'work', established in 1890. In
addition to office furniture manufacturing,the company is also involved in architecture
and interior design. The company advocatesoffice DX and Office 3.0 and aims to add highvalue. Under its three-year medium-term
management plan, RISE To GROWTH 2026,
which ends in FY2026, the company aims toachieve sales of 150 billion yen, operating
profit of 14 billion yen and ROE of 15% in
FY2026 by promoting its key strategies '7
Flags' and ESG strategy under the theme of'enhancing sustainable growth'.
This report (Company note) has been preparedat the request of Itoki Corporation. For details,
please refer to the Disclaimer on the last page.

1

Table of contents
Summary
Key financial data
Company profile
History
Group overview / Production structure / Business diagram
Business overview
Workplace business
Equipment / Public business
Financial results
Full-year results for FY12/2023
FY12/2024 full-year forecast
Growth strategy
New medium-term management plan RISE To GROWTH 2026
Stock information, etc.
Share Price Trend
Share price observation
Major shareholders, Shareholding by ownership, Shareholder return policy
Corporate governance and the top management
Sustainability
Financial data

Key financial data
Fiscal Year

1
2
3
4
8
10
10
18
20
20
23
24
24
27
27
28
30
31
34
35

(Unit: ¥mn)
2017/122018/122019/122020/122021/122022/122023/12[Statements of income]Net sales

108,684

118,700

122,174

116,210

115,839

123,324

132,985

Gross profit
SG&A expenses
Operating income
Ordinary income

38,71841,264

41,67941,88841,69445,74952,24035,761

39,33940,77640,08939,15841,16743,717

2,956

1,925

903

1,798

2,536

4,582

8,523

3,295

2,365

945

1,881

2,437

4,177

8,555

Net income

2,402

1,722

-550

-235

1,166

5,294

5,905

Current assets
Cash and deposits
Non-current assets

58,147
19,97744,07362,143
16,22946,55958,10917,03049,95557,183
18,24647,91257,753
17,351
46,14471,027
26,87644,26073,304
24,795
44,132

Total assets

102,221108,703108,778

105,096

103,898

115,288

117,437

Total liabilities
Total net assets
Equity ratio (%)

54,894

61,21062,94460,90658,82265,37762,43747,32647,49245,834

44,18945,07649,91054,999

46

44

42

42

43

43

47

Cash flow from operating activities

3,565

1,384

3,586

4,561

2,774

5,804

6,321

Cash flow from investing activities-2,971-3,094-3,221-1,152-1,170

4,923-4,012[Balance Sheets][Statements of cash flows]

Cash flow from financing activities
Cash and cash equivalents at end of period-706-2,4630-2,267-2,658-1,426-4,14818,571

14,54015,494

16,697

15,79725,42023,664

Source: Omega Investment from company materials

Itoki | 5/8/2024

2

Company profile
Itoki is one of the four largest manufacturers of office furniture in Japan. It is a long-established company witha history of more than 130 years since its foundation in 1890.
With a mission statement of "We Design Tomorrow. We Design WORK-Style", the company not only
manufactures and sells office furniture but also provides consulting on working styles and space design,offering the value of creating spaces, environments, and places for workers. The company has long beencommitted to designing, and its products are renowned for design excellence.
The two business segments are.
Workplace business: mainly manufactures and sells office furniture, but as stated in its mission statement, thecompany advocates the creation of 'working environments' tailored to how customers work. In recent years,
the company has actively responded to the needs of a growing number of ways of working, such as working
from home and in dispersed locations, in addition to working "collectively" in an office. Moreover, thecompany provides consulting services and other total solutions.
Main products and services; office furniture (desks and workstations, tables, office and conference chairs,
system storage furniture, lockers), manufacture and sale of construction materials for office spaceconstruction, interior decoration work, office space design, project management for office relocation, etc.,
office repair and maintenance services, telework furniture, study furniture.
Equipment / Public business: provides logistics-related facilities, which have proliferated in recent years, aswell as research facility equipment for pharmaceutical companies, universities and research institutions, andequipment for public facilities.
Main products and services; logistics equipment (shuttle cart automatic storage systems (SAS)), storage
shelves, special doors, office security systems, research facility equipment, powder machinery andequipment, environmental and space construction for public facilities, etc.
The composition of sales by region is as follows: Japan, 120,790 million yen (91%); Asia, 11,397 million yen(9%); and others, 658 million yen, with domestic sales accounting for over 90%.

Sales by Segment
Workplace business
Equipment / Public business
OthersTotal sales
132.9 billion yen(FY12/2023)

Source: Omega Investment from company materials

Itoki | 5/8/2024

3

History (See the history table on the following page)
1890-1949: from popularising inventions and patents to selling and manufacturing officeequipment.
The company's origins date back to December 1890, when founder Kiichiro Itoh founded Itoh Ki Shoten in
Osaka's Koraibashi district to promote his inventions and patents and to handle imports. In 1903, the company
began importing and selling paper clips and staples. Both are commonly used in offices today but trace their
origins back more than 100 years when the company started to sell them. Later, in 1908, the Itoki Shoten
Engineering Department was established. It started producing office equipment such as hand-carry safes andsimple stationery. In the sense that the company began its business by importing, selling and repairing foreign
products after the opening of Japan to the outside world in the Meiji era, and later took on the challenge ofdomestic production and expanded its business, it has something in common with other Japanesemanufacturing companies that are now world leaders, such as Seiko Group Corporation (Hattori Watch Shop)and Brother Industries (Yasui Sewing Machine Shop).
In 1910, the company began importing and selling English typewriters, thermal bottles, etc. In 1913, it launched
the independently developed ‘Zeni-ai-ki’ (money recording and disbursing machine). In 1925, it began
manufacturing its steel-made furniture, including lockers. In 1937, it expanded into Tokyo, opening a Tokyo
branch in Gofukubashi, Chuo-ku.

1950-1969: Steel furniture creates modern offices. Highly regarded in terms of design.
After the war, demand for office furniture surged as Japan's economy grew rapidly; in 1955, the company
began manufacturing and selling steel desks. The company's steel furniture subsequently paved the way forvarious types of desks. In 1960 it established three major systems for filing, slip accounting and office layout. In
response to the demand for office rationalisation during the period of high economic growth, the company
offered filing and slip accounting systems, as well as 'office layout', a functional arrangement of furniture,
office equipment and supplies centred on desks, thereby establishing the Itoki brand in office systematisation.
Furthermore, in 1962, the company expanded into the field of home and student desks. In 1967, the company
adopted the catchphrase 'Good Design, Good System', establishing its image as a design company.
Meanwhile, as its business expanded, the company listed its shares on the Second Section of the Osaka
Securities Exchange in October 1961 and on the Second Section of the Tokyo Stock Exchange in September
1962.

1970-1989: office planning, promoting the New Office.
In the 1970s, the company began technical cooperation with overseas companies and introduced state-of-theart office systems to Japan. Beyond the mere supply of office furniture, the company had come to offer 'officeplanning’. In 1976, 14 of its products were selected for the G-Mark, and the company's reputation for designcontinued to grow. Since then, many products have been awarded the G Mark every year. In 1977, thecompany launched a research equipment and furniture system in cooperation with the Swiss company Vivo.
With this, the company entered the current Equipment / Public business field.
In 1984, local subsidiaries were established in Singapore and the USA. The company also developed its businesswith an eye on overseas markets. In 1985, the company adopted its CI, which is still used today. In 1987, thecompany was listed on the First Section of the Tokyo Stock Exchange and the Osaka Securities Exchange.

1990 to present: over 100 years in business and creating offices for the 21st century.
Even after 100 years in business, the company continues to provide products and services that meet thedemands of the times. In 1994, the company began selling free-access floors to meet the needs of the times. It
also focuses on quality control, and in 1998 it was registered for ISO 9001 certification. In 2001, the company
completed the accreditation of all its offices.
In 2005, the manufacturing division Itoki Crebio and the sales division Itoki merged and changed the company
name to Itoki Corporation. The integration of manufacturing and sales enabled quicker management decisions
and rationalisation of the group in the face of accelerating global trends.
Since then, the company has developed and marketed various new products in response to the demands of thetimes. The company offers ergonomically designed office chairs and office furniture; in 2017, the FLIP FLAP
(chair) won the international design award Red Dot Design Award.
In 2018, offices in the metropolitan area were consolidated in Nihonbashi, and ITOKI TOKYO XORK wasestablished. It advocates a comprehensive work style strategy that maximises workers' abilities and intends to
conduct various demonstrations as a place to practise the next generation of work styles, and to disseminate
the various knowledge and know-how generated from these experiments to society.

Itoki | 5/8/2024

4

Itoki Shoten was founded in December 1890 in Higashi-ku, Osaka.
In 1908 the Itoki Shoten Craft Department was established, and office equipment production began.
In April 1950, the company was spun off from Itoki Shoten and established Itoki Kosakusho Co. in Izumio,
Taisho-ku, Osaka.
The main changes since then have been as follows.
Itoki Shoten founded 1890

Launched 'Zeni-ai-ki'(money recording anddisbursing machine) 1913

1952

Jul.

A new Imafuku plant was built in Joto-ku, Osaka.

1954

Dec.

Head office moved to Joto-ku, Osaka.

1961

Jan.

Itoki All Steel Co., Ltd. was established (now a consolidated subsidiary).

Oct.

Shares listed on the Second Section of the Osaka Securities Exchange.

Sep.

Shares listed on the Second Section of the Tokyo Stock Exchange.

Dec.

Home Furniture Sales Divisions opened in Tokyo and Osaka.

1963

May

New Neyagawa plant established in Neyagawa-ku, Osaka.

1968

Nov.

Kyoto Plant established in Yawata City, Kyoto.

1972

Sep.

Shiga Plant was established in Omihachiman City, Shiga Prefecture.

1974

Jun.

Fuji Living Industry Co., Ltd. in Hakusan City, Ishikawa Prefecture became a subsidiary andproduced pipe chairs (currently a consolidated subsidiary).

1984

Aug.

Kyoto Plant No. 2 was established in Yawata City, Kyoto, relocating the Imafuku Plant.

1986

Nov.

An electronic device manufacturing plant was established in Omihachiman City, Shiga.

1987

Jun.

Listed on the First Section of the Tokyo Stock Exchange and Osaka Securities Exchange.

1991

Oct.

A chair manufacturing plant was established in Shiga Omihachiman City, Shiga.

1992

Aug.

Kyoto Plant No. 2 is relocated to Omihachiman City, Shiga.

1999

Aug.

Expansion of the Neyagawa plant in Neyagawa-ku, Osaka.

2000

Oct.

2002

Nov.

2003

Mar.

Itoki Technical Service Corporation was established.
Established Itoki (Suzhou) Furniture Co., Ltd. in China (now a consolidated subsidiary Novo
Workstyle (China) Limited).
Itoki Market Space Inc., was established (now a consolidated subsidiary).

2005

Jun.

Merged with the former Itoki Co., Ltd. and changed its name from Itoki Crebio to Itoki
Corporation.

Nov.

The Shiga Logistics Centre was established in Omihachiman City, Shiga.

2007

Dec.

Acquired shares of Business Jimki Corporation and changed the company name to ItokiHokkaido Co., Ltd.

2008

Dec.

2011

Apr.

2015

Mar.

1962

Steel desk 1955

Establishment of threemajor systems for filing,voucher accounting andoffice layout 1960

Expansion into homefurniture 1962

Launch of the 'vertebra’(chair) 1981

2016

Dec.

Kanto Plant is established in Midori-ku, Chiba City, and partially relocating the Kyoto Plant.
Included Dalton Corporation and its five subsidiaries under the umbrella as subsidiaries,
producing and selling research equipment and powder machinery (now a consolidated
subsidiary).
Included Shin Nihon System Technology Corporation into the group as a subsidiary to develop
various systems (now a consolidated subsidiary).
Itoki Engineering Centre Co., Ltd., Itoki Osaka Engineering Centre Co., Ltd. and Itoki Technical
Service Co., Ltd. merged and changed their name to Itoki Engineering Service Corporation(now a consolidated subsidiary).
Tarkus Interiors Pte Ltd., an interior decoration company based in Singapore, became asubsidiary (now a consolidated subsidiary).

2017

Jul.

Novo Workstyle Asia Limited was established in Hong Kong (now a consolidated subsidiary).

2018

Nov.

The new Tokyo head office "ITOKI TOKYO XORK" (XORK) opened in Chuo-ku, Tokyo.

2020

Jun.

2022

Apr.

2022

Nov.

ITOKI CHINA HOLDING Co., Ltd. was established in China (now a consolidated subsidiary).
Moved from the First Section of the Tokyo Stock Exchange to the TSE Prime market following areview of the TSE's market classification.
The AP Centre (Ampoule Process Centre) was established in Omihachiman, Shiga Prefecture.

2023

Apr.

Itoki Hokkaido Co., Ltd, a consolidated subsidiary of the company, is merged into the Company.

Jul.

Good Design Gold Awardfor the 'Spina' (chair)2007

New head office
Establishment of ITOKITOKYO XORK 2018

Itoki | 5/8/2024

Source: company's annual securities report5Founding DNA

Source: company materials

Itoki | 5/8/2024

6

Management leadership in the spotlight
One recent development of note is the current management team.
The current President and CEO, Koji Minato, joined the company in September 2021 and assumed his current
position in March 2022. He joined NTT in 1994 and holds an MBA from USC. He has since served as generalmanager of Sun Microsystems and (after Oracle acquired Sun Microsystems) vice-president of Oracle Japan, an
unusual background for a top corporate executive.
He is expected to appropriately guide the company in light of technological trends, such as the shift to IoT in
the office, and to utilise his management experience in foreign-owned companies to activate internal humanresources and improve financial performance.
Since taking over as president, his performance has fully met these financial, qualitative and share priceexpectations. The existing medium-term management plan, RISE ITOKI 2023, has largely achieved its targets,with sales and operating profit reaching new highs, employee engagement improving, and the share pricerising from 347 yen to 1,782 yen between end-March 2022 and end-March 2024, as evidence of this.
His skills will be further demonstrated in the new medium-term management plan starting in FY2024.

President Minato's approach

Short term

Doing the obvious, as a matter of course
・Quarterly numerical management
・Operating profit(evaluation of sales : Sales → Gross profit)

Medium to long term

・Do More with Less
・Simplicity, focus and speed・Advancing internal information systems(WIP)(vs. breaking with the past)

Source: Omega Investment from company materials

Itoki | 5/8/2024

7

Production structure

Source: Company materials

Group overview
As seen in the history, the company was founded in Osaka, but its current head office is in Chuo-ku, Tokyo(relocated in 2018). The company group comprises 32 consolidated subsidiaries, seven non-consolidated
subsidiaries, and two companies (see next section). Since the 2000s, the company has been actively expanding
overseas, particularly in ASEAN and China, acquiring local companies and establishing subsidiaries and affiliates
in each region.

Production structure
The company's production system is based at its domestic plants. This is because the company's primarymarket is the domestic market, and office furniture is bulky in volume due to its storage characteristics, so it is
not cost-effective to produce it overseas and import it at high transport costs.
The current main plant is the Shiga Plant, which manufactures chairs, desks, cabinets, and other products for
the Workplace business. It employs about 300 people. In September 2022, the Assembling Process Centre (APCentre) was opened at the same site, which started full operation in January 2023. The AP Centre is working to
reduce the cost ratios by centrally managing the company's products' storage, assembly, and shipping. The
centre will also relocate the production line for the system streamer SAR-R, whose demand is increasing rapidly
in the logistics market, to meet growing demand. The Neyagawa plant, one of the company's main plants formany years, was closed in 2022, with its production consolidated at the Shiga plant. The company sold the idle
land of the plant for 6.5 billion yen and is working on improving asset efficiency.

Business diagram
See the next page for a diagram of the business structure. The company and its group companies are involvedin manufacturing, sales, construction, interior decoration, installation, and maintenance services.
Overseas office furniture manufacturers often specialise only in manufacturing and sales and rarely provide
interior design, construction, or workplace design. In Japan, consulting companies and office design firms are
generally engaged between the office furniture provider and the client for large-scale projects to provide work
style design and workplace design. However, in recent years, office furniture manufacturers have also started
to offer a comprehensive service from upstream to construction and delivery of office furniture, starting withsmall and medium-sized projects, to obtain fees commensurate with the proposal's value.

Itoki | 5/8/2024

8

Major consolidated subsidiaries
Company nameBusiness activities

Itoki All Steel Co., Ltd.

Manufacture of counters, large top desks, wall storage furniture, desk panels, etc.

Fuji Living Industry Co., Ltd.

Manufacture of meeting and amenity chairs.

Itoki Market Space Inc.

Sales of shop fixtures/store planning

Itoki Engineering Service Corporation

Project management of office renewal and relocation, management of office furniturelayout delivery, and maintenance and inspection services for various other equipment.

Simasobi Corporation

Processing and sale of office furniture, office supplies and interior decorations, andcontracting of electrical work

Itoki Toko Manufacturing Co., Ltd.

Manufacture of steel doors, safety deposit boxes, various types of shielding doors, fireresistant walls, nuclear radiation shielding doors, etc.

Itoki Marui Industry Co., Ltd.

Manufacture of steel office machinery and equipment

Sanko Facilities Inc.

Sales of office equipment, furniture, fixtures and incidental goods, construction work,
design management

FMSTAFF Ltd.

Consulting services related to facility management, etc.

Itoki Shared Value Co., Ltd.

Office space sharing business, office furniture rental and reuse business, etc.

Shin Nihon System Technology Corporation

Provision of IT solution services

Dalton Corporation

Design, manufacture and sale of research and education equipment; design and sale ofpowder processing machinery; design and sale of high-tech plant systems.

MUTO-SAFE Co., Ltd.

AgencyTarkus Interiors Pte Ltd

Singaporean interior decoration company, made a subsidiary in 2016.

Novo Workstyle Asia Limited

Regional business headquarters for Asia, in Hong Kong, established 2017.

Novo Workstyle CO., Limited

Established in Jiangsu Province, China, to supply manufacturing components.

ITOKI SYSTEMS (SINGAPORE) PTE., LTD

Singapore subsidiary, sales of office furniture, proposals and logistics systems

ITOKI CHINA HOLDINGS Co., Ltd.

Holding company for Chinese operations. Under the umbrella of Novo Workstyle Co.
Offices in Beijing, Shanghai, Suzhou, Shenzhen, etc.

15 other companies

Business diagram◎: consolidated subsidiary

Workplace business

Goods, products, construction, interior decoration, installation, maintenance services[Others]◎Itoki Engineering Service Corporation◎FMSTAFF Ltd.
◎Tarkus Interiors Pte LTD◎Novo Workstyle Asia Limited◎ITOKI CHINA HOLDINGS Co., Ltd.

11 other companies. A total of 23 companies.

Equipment / Public business
Goods, products, construction[Sales]◎Itoki Market Space Inc.
◎Dalton Corporation

ClientItoki Corporation[Sales]◎Simasobi Corporation◎Sanko Facilities Inc.
◎NOVO WORKSTYLE CO., LTD.
◎ITOKI SYSTEMS(SINGAPORE)PTE,. LTD.
[Manufacturing]◎Itoki All Steel Co., Ltd.
◎Fuji Living Industry Co., Ltd.
◎Itoki Marui Industry Co., Ltd.

[Manufacturing]◎Itoki Toko Manufacturing Co., Ltd.
5 other companies. A total of 8 companies.

Information Technology / Sharing business
Software development, fixture rental◎Itoki Shared Value Co., Ltd.
◎Shin Nihon System Technology Corporation
A total of 2 companies.

Source: Omega Investment from company materials

Itoki | 5/8/2024

9

Business overview
Workplace businessA core business accounting for 71% of the consolidated sales: focus on proposal-based marketing
to improve profitability.
The company's Workplace business recorded FY12/2023 sales of 94.2 billion yen, an operating profit of 6.1
billion yen and an operating profit margin of 6.5%. Sales grew by +9.7% YoY, operating profit by +137.6% YoY
and operating profit margin by +3.5 percentage points YoY, achieving both sales growth and improved
profitability. The operating profit margin has steadily improved over the past three years, indicating that the
management policy of emphasising added value and profitability is gaining ground.
Sales by region were 82,573 million yen (88.0% of the total) in Japan, 11,220 million yen (11.7%) in Asia and 462
million yen (0.3%) in others, indicating that the domestic business is currently the main focus. However, thecompany is also looking to expand overseas markets.
Since the launch of steel desks in 1955, the company's office furniture business has successively developed andprovided products to meet office needs in line with Japan's economic growth and corporate businessexpansion. The company has made a significant contribution to developing the Japanese economy.
In the Workplace business, the aim is not just to sell office furniture but to provide higher added value by
proposing workplace design and obtaining commensurate value. In the past, it was challenging to differentiate
office furniture on a stand-alone basis, leading to price competition, which in turn led to significant discounts
together with non-office fixtures and fittings, which sometimes resulted in a decline in profitability. Although
the company's office furniture was originally well-designed and had won many G Marks (see figure above, nextpage), it could be said that the company needed to receive more compensation commensurate with the value
it provided. As mentioned above, recent efforts to review the operating structure and culture (from a focus onsales to a focus on profit), generate revenue commensurate with enhanced customer value, and sell highervalue-added products and services are bearing fruit.

Workplace business revenue and profit trends
Workplace business /Financial year
Net sales

2020/122021/1283,032

YoY
Segment profit

1,273

YoY
profit margin

1.5%

2022/122023/1280,561

85,94594,257

-3.0%

6.7%

9.7%

1,914

2,579

6,128

50.4%

34.7%

137.6%

2.4%

3.0%

6.5%

Source: Omega Investment from company materials

Itoki | 5/8/2024

10

History of Good Design Awards won by the company
2007

2012

2017

2020

2021

2022

9 point

9 point

7 point

6 point

9 point

8 pontSpina

cacomii+ meeting
furniture series

vertebra03

crossaADDCELL

LINEA

Wan

Note: Examples are mainly Good Design Best 100 award-winning products. The company has received a total of 86 Good DesignAwards since 2005

Source: Omega Investment from company materials

The office furniture market could add value as new ways of working evolve.
Japan's office furniture market: market size of 800 billion yen, with stable growth.
The Japan Office and Institutional Furniture Association (JOIFA), of which 109 office furniture-relatedcompanies are members, carries out various activities as an industry association and publishes statistics andsurveys as appropriate. JOIFA is presumed to have a grasp of the size of the office market in Japan but currently
does not reveal the data. Therefore, as a rough idea of the market size, reference values extracted from thesegment information of the four major office furniture companies, including the company, for the total of thefour companies have been graphed (however, differences in the segment definitions of the companies anddifferences in the accounting periods have been ignored; Itoki and Kokuyo's figures for the December period
and Okamura's figures used the FY2024 company forecast for FY2023 are shown in the graph. For Uchida Yoko,
the figures up to FY07/2023 are used.). Looking at each company's share within these four companies, in 2023
the company has 20%, Kokuyo 33%, Okamura 35% and Uchida Yoko 11%. Kokuyo and Okamura each holdalmost 1/3 of the market share, with the company in third place and Uchida Yoko in fourth place, a positioningthat has long been established. In addition, the market appears to be growing almost steadily (3-4%). When thesales of companies other than the four are included, the market is estimated to be worth around 800 billion
yen per year (of which around 400 billion yen is office furniture alone, the rest consists of consulting andinstallation) (Omega Investment estimate based on the sales size of JOIFA member companies, etc.).

Office furniture business sales of the four major office furniture companies

4,598(100 mn. Yen)UCHIDA
YOKO

4,000

3,000

OKAMURA

2,984

2,000
KOKUYO

1,000
Itoki

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Itoki

2021/2022 Workplace business segment: 'Creatingworking-environments' office furniture manufacturing andsales, office space design, etc. 2012 to 2010: Office-related
segment. No continuity between 2020 and 2021 due tosegment changes.

KOKUYOFY12/2022: Workstyle domain (furniture business): spacedesign and consultation, manufacture, purchase, sale, andinstallation of office furniture. FY 12/2019 – FY12/2021:
Spatial Value domain; FY12/2012 – FY12/2018: Furnituresales.

OKAMURA

Office Environmental business segment: manufacture andsale of office furniture, furniture for public facilities,
security products, etc.

UCHIDA
YOKO

Office-related business segment: development, manufactureand sale of office-related furniture, space design, design andconstruction, etc.

Source: Prepared by Omega Investment from the annual reports of the companies.

Itoki | 5/8/2024

11

Supply of large office buildings in the 23 wards of Tokyo (Mori Building survey)

Figure 1: Supply of large office buildings in the 23 wards of Tokyo
Number of buildings supplied(no. of buildings)'23 onwards, annual average
930,000 sqm/year
Supply [forecast](10,000 sqm)

Supply [actual] (10,000 sqm)

Past actual
annual average
1.02 million
sqm/year

Source: Omega Investment, based on Mori Building's 'Tokyo 23 Wards Large Office Building Market Trend Study 2023'.
Office building market outlook: The new supply of gross floor space will decrease in 2024, but supply will
increase
Demand for office furniture tends to be influenced by the supply of new office buildings, economic trends andcorporate performance. According to Mori Building's 'Tokyo 23 Wards Large Office Building Market Trend
Survey 2023', the supply of large office buildings is expected to decline in gross floor area in FY2024 and thenmove back and forth. However, the number of units is expected to remain firm until FY2025. Note that thisdocument is updated once a year with the latest values.
In addition, it is not only new office construction and relocations that affect the performance of the businessbut also the demand for renewals. As shown below, most business negotiations are for renewal projects, andthe proportion is increasing yearly. This can be attributed to the fact that customers are increasingly interested
in office productivity and that the company is becoming increasingly recognised as a provider of solutions tothis need. In light of the above, the business can be expected to grow without being restricted to new supply.

Percentage of business negotiations within Itoki (new construction/relocation/renewal)
Percentage of business negotiations within Itoki(new construction/relocation/renewal)

New construction/
relocation projects

Renewal projects

Source: Company materials

Itoki | 5/8/2024

12

Recent developments in the office furniture market: new business opportunities due to theincreasing sophistication of office needs.
In recent years, office needs have undergone a significant transformation. The office's role has changed fromthe past, partly due to the introduction of remote working due to COVID-19, and this could mean new business
opportunities for office furniture companies. Background includes.
a) Reform of work style: the Japanese economy has been stagnant for a long time. As the era of high growth,when productivity could be increased mainly in the manufacturing sector, ended and the proportion of
tertiary industry increased, it became difficult to increase productivity, particularly among white-collar
workers. Against this backdrop, there are indications that productivity should be improved through reforms
in how people work. To achieve this, the internal organisation of Japanese companies needs to change, andthe composition of corporate offices is undergoing a significant transformation from the old fixed-seatbased office environment (see figure, next page).
b) Advances in IT and networking: the way work is carried out in a company has changed significantly overthe last 10-20 years due to IT development. The office must respond to the evolution of hardware,
software, networks, etc. The change has been within the scope of Itoki’s Office 2.0, which the company has
advocated. In the future, Office 3.0, or the DX orientation of the office, will determine competition forsuperiority between companies.
c) The office as a place for new value creation: as indicated in a), how people work will change significantly.
The pandemic disease has triggered the introduction of remote work, but at the same time, it is still
essential to have places where people meet face-to-face and communicate with each other. In the future, itwill be crucial to maximise workers' abilities by combining the central office as a place to share experienceswith remote work, which is a flexible way of working at a high level.

The changing role required of offices
Office furniture and proposal capabilities that are compatible with the design ofspaces as more creative, productive, and innovative workplaces are required.
Reforming theway people
work

Progress in IT
andnetworking

Offices asplaces for newvalue creation
Fixed seats
Symbolic of the old Japanesecompany structure.

Acquisition ofhigh-valueadded humanresources

Source: Omega Investment from company materials

Itoki | 5/8/2024

13d) Attracting high value-added human resources: human resources are the biggest asset for future growth inall companies, but IT and other creative personnel need more supply. To retain such talented people, it isessential to have a great office environment and space.

The company's approach: multiplying Office 1.0, 2.0 and 3.0 to increase corporate value.
The company's answer to the changes in the office furniture and office space market described above is shownin the diagram below: in Office 2.0, the company has added value through office design and construction in
addition to manufacturing and selling office furniture. Office 3.0 will further promote office DX. Data iscollected by attaching sensors to office furniture and various parts of the office. By analysing this big data, itwill be possible to provide customers with higher value-added services.

The company's proposed Office 3.0 concept
Customer

Office 3.0 Office DX
Office 2.0
Office design and construction
Office 1.0
Office furniture manufacturing and sales

Office 1.0
Office furniture manufacturing and sales

Office 2.0
Office design and construction
Office 1.0
Office furniture manufacturing and sales

Expand the domain to Office 2.0 and 3.0 based on Office 1.0

Source: Company materials

As a place to put Office 3.0 into practice, the company consolidated its Tokyo headquarters in Nihonbashi in2018 and opened ITOKI TOKYO XORK, which also serves as a showroom. For more information, see the next
page.

This concept will materialise in 2024 as a 'Data Trekking' service based on the ITOKI OFFICE A/BI PLATFORM.
The service was launched on 14 February. It is a consulting service for customers planning to relocate or renew
their offices, using sensing data in the office as a guidepost to support agile office construction and operation
in a companionable manner.
This system is for accumulating and analysing space operation data, organisational survey data, layout data andcustomer-specific index data based on a unique platform, the ITOKI OFFICE A/BI PLATFORM. Data is acquired
using Workers Trail, an application that enables visualisation of "work" using beacon-based location
information. Itoki's proprietary cloud-based organisational survey allows for visualising individual andorganisational performance and conditions. Itoki's proprietary Performance Trail is a cloud-basedorganisational survey that visualises individual and organisational performance and conditions. The company's
consulting team will analyse the data using the Office Data Map, a dashboard-type system developed
independently by the company, which will be linked to the office designers.
Furthermore, on 13 March, the company signed a joint development agreement for generated AI with AI startup AKARI Inc. and has started developing applications related to automatic office design generation AI as partof the 'ITOKI OFFICE A/BI SERVICE' initiative.
Such a development will capture customers' individual needs and specifically help them reform their officeproductivity. It has the potential to improve customer satisfaction, retain customers, and generate recurring
revenues. The future development of this system will be the focus of much attention.

Itoki | 5/8/2024

14

Reception

Creating spaces for mental andphysical healthSpace for communication andindividual work

Work areas with a variety of space
options to suit the activity

Collaboration space where
people come and go

The company consolidated its metropolitan offices in Nihonbashi in the autumn of 2018. The
new head office, ITOKI TOKYO XORK, was opened. With W of work written as X, the office isnamed XORK to signify the evolution of the conventional way of working to the next level. XORK
will serve as a showroom for Itoki's new way of working, an office to realise it, and a place where
Itoki employees can personally embody their ideas.

The happiness of society as a
whole
Corporate HappinessTrying and changing
on one’s own

Ensuring stable growth in society.
To be achieved by maximisingproductivity and creativity as anorganisation, creating innovative
innovations and providing significant
added value to society.

X

Happiness of workers
Achieving one’s unique form ofhappiness.
To be achieved by maintaining goodmental and physical health, working
with high vitality and enthusiasm,
improving the quality of life in society
and enhancing one's lifestyle as awhole.

ABW
Activity Based Working
https://www.itoki.jp/xork/
Source: Company materials

Itoki | 5/8/2024

15

Data Trekking service based on ITOKI OFFICE A/BI PLATFORM.

Source: Company materials

Itoki | 5/8/2024

16

Peer competition：
As seen in the office furniture market, the four major players in this market - the company, Kokuyo (TSEP:
7984), Okamura (TSEP: 7994) and Uchida Yoko (TSEP: 8057) - hold about 50% of the market. The table below
compares each company's most recent figures and other data. All but Okamura have a history of more than
100 years, while Okamura also has a long track record of more than 70 years. Regarding the companies'businesses, most sales for Itoki Corporation and Okamura come from office furniture, fixtures, and fittings forcommercial facilities. Kokuyo, on the other hand, as is well known, also generates a large proportion of its sales
from stationery-related products. For Uchida Yoko, public-related (e.g., education-related ICT) and informationrelated (e.g., software licensing) sales account for 80% of its sales.
The graph on the next page compares the profitability of each company's office furniture business; as notedon page 11, the definition of each company's segment is not necessarily the same, but it should give a roughindication. Kokuyo and Okamura, which have high market shares, deliver high profit margins. Kokuyo has been
increasing its profit margin by more than 10% in recent years by focusing on proposal-based marketing andprojects for which it can charge a design fee. While Uchida Yoko has achieved high profit margins in its nonoffice-related businesses, it has been spoilt by low profit margins in its office-related businesses.

Four office furniture companies, operating profit margin trends in office furniture-related businesses（％）

15
KOKUYOOKAMURA

10

5

Itoki
UCHIDA
YOKO

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

-5
Source: Prepared by Omega Investment from the annual reports of the companies.

On the other hand, Itoki Corporation earned a profit margin of nearly 5% in 2012, but its profit margin has sincedeclined. When competing with the top two companies, the profit margin appears to have lowered due toprice discounts and other measures to secure sales rather than profit margins. The company has recognised the
problem and is working to improve profit margins by optimising sales prices in line with its value,
strengthening and expanding its consulting services, and monetising services such as delivery and design fees.
These have started to show results in recent years.

Itoki | 5/8/202417

Equipment / Public business
Logistics-related facilities, research facility equipment and other unique products.
FY12/2023 sales in the company's Equipment / Public business were 36,466 million yen (+3% YoY), operating
profit was 1,906 million yen (+28% YoY), and operating profit margin was 5.2%.
Sales by region were 36,466 million yen in Japan, 177 million yen in Asia, and 195 million yen in other areas.
Again, the domestic market is the main market.
The profit margin in this business also continues to improve steadily year on year.

Equipment product range

Source: Company materials

Equipment / Public business revenue and profit trends
Equipment / Public business /Financial year

2020/12Net sales

2021/1231,602

YoY
Segment profit

1,225

YoY
profit margin

3.9%2022/122023/1233,48835,667

36,839

6.0%

6.5%

3.3%

974

1,482

1,906

-20.5%

52.2%

28.6%

2.9%

4.2%

5.2%

Source: Omega Investment from company materials

Itoki | 5/8/2024

18

The Equipment / Public business dates to 1914, when the company began selling vent-type safes. Since then,the company has manufactured and sold a variety of warehouse-related fixtures and fittings and, since the1980s, has been an industry pioneer in developing and supplying a range of automated warehouse equipment.
Based on its experience producing safe doors, the company also produced and launched special large doors fornuclear power facilities. The company has continued developing numerous industry firsts, including developing
secure locking systems. In recent years, there has been an extreme need for automation equipment for
warehouse and distribution systems.
The main customers for logistics equipment are the automotive industry and equipment manufacturers. The
main customers for public facilities products are museums, art galleries and libraries. Sales of logistics
equipment depend on economic trends and corporate earnings. Still, they are expected to grow, as reducing
logistics costs is an ongoing and vital management issue in the manufacturing industry. On the other hand,sales of public facilities are affected by budget execution by public offices and local authorities.
In the same segment, research equipment is another product to note. Dalton Corporation, which the company
invested in in 2011 and became a wholly owned subsidiary in 2016, manufactures and sells these products.
Dalton Corporation was founded in 1939 as a manufacturer and distributor of scientific instruments andglassware for analysis (the company was called San-Ei Seisakusho when it was founded). It established ascientific research facilities division, which developed and sold products used in various research facilities; in
1996, it acquired a powder and granular equipment manufacturer and expanded into powder machinery; in2014, it introduced the Uni-X Lab Series of draft chambers and laboratory tables.

Dalton Corporation research facility equipment

Draft chamberlaboratory furniture

Powder equipment

Semiconductor manufacturing
equipment

CustomerPharmaceutical companies,
university research institutions

CustomerPharmaceutical companies,
university research institutions

Customer
Manufacturers, research
centresCustomersemiconductor manufacturer

Source: Omega Investment from company materials

Customers of laboratory equipment include pharmaceutical companies, universities and research institutions,and the sales are affected by trends in R&D expenditure/capital investment by pharmaceutical companies andscientific research funding by universities. Pharmaceutical companies, the largest customers, actively invest in
R&D expenditure to develop new drugs. On the other hand, while there are concerns that research budgets at
Japanese universities continue to be cut, major pharmaceutical customers' robust research investment budgets
are expected to continue. Hence, the sales of the company's research facility equipment should grow.

Itoki | 5/8/2024

19

Financial results
FY12/2023 financial results◇ Establishment of a profitable structure. Highest profit and dividend increase.
The company's FY12/2023 results showed sales of 132.9 billion yen (+8% YoY) and operating profit of 8.5 billion
yen (+86% YoY), with sales, operating profit, recurring profit and net profit all reaching record highs.
While steadily building up sales from renewal projects and office relocations, the company significantly
improved its profit margin through enhanced customer value. As a result, profits exceeded the company's
forecasts despite increased SG&A expenses due to strategic spending.
By segment, the Workplace-related business and the Equipment / Public business-related business each posted
increased revenue and operating profit, and operating profit margins improved. The results were flawless.
In addition, the company increased its year-end dividend by 5 yen YoY to 42 yen for FY12/2023, reflecting its
strong earnings.
As indicated by the strong performance of the peers in the industry, the industry environment is favorable,
benefiting from the tailwind. In particular, the company's operating profit margin has quickly risen to the 6%
range, a level not seen in the past ten years. The company should be commended for its progress instrengthening its structure under President Minato's leadership. It can be said that the company has completed
the "To develop an earning structure" in the final year of its mid-term plan.

Source: Company materials

Itoki | 5/8/202420◇ The previous medium-term management plan was achieved:
In FY12/2023, the company delivered results on target vis-a-vis the previous medium-term plan, with sales
largely in line with expectations and operating profit, operating profit margin, and ROE exceeding targets (seegraphs below). The company's internal factors, mainly at the parent company, such as a shift from equality tofairness in personnel evaluations to empower employees, a thorough focus on profitability, and enhanced
proposal capabilities for office design, etc., are thought to have had a multilayered effect.
Two points are particularly noteworthy in these results. The first is that employees are more proud of thecompany than before, which is a positive result of employee engagement, and the second is that ROE has
improved to 11.3%, which has led to an increase in the share price and a PBR over 1x.
The company's "To develop an earning structure" has not only improved financial figures but has also been
positively received by employees, and this overall strengthening of the company's structure is likely to have
improved investors’ evaluation of the company.

Source: Company materials

Itoki | 5/8/2024

21

◇ End of business alliance with Advantage Advisors Co.,Ltd.:
According to the company's timely disclosure on February 13, 20, and 21, 2024, the stock acquisition rights
issued to Advantage Advisors (AA, after this) were exercised in full on these dates, resulting in the issuance of
11.7 million shares of common stock, and 4.07 billion yen was paid to the company as compensation for thisissuance. On February 21, the company repurchased 7.965 million shares for 15.9 billion yen. According to the
February 28 large volume shareholding report, AA completed the sale of all of the company's shares acquiredin the transaction.
The key points are as follows. This is a minor concern from a medium- to long-term perspective.
- Increase in the number of shares outstanding: The number of shares outstanding at the end of December
2023 was 45.3 million after deducting treasury stock, and after this series of transactions, the number ofshares outstanding after deducting treasury stock will be 49.1 million. This represents an increase of
approximately 8% in the number of shares, which is a reasonable level of dilution. Considering future
earnings growth and an increase in the dividend payout ratio, this increase should be acceptable to many
shareholders.
- Financial burden: Although the company spent approximately 12 billion yen, it has a net cash position of
approximately 8 billion yen as of December 2023. Given the company's remarkable improvement in
profitability, there should be no problems in terms of debt financing, including borrowings and interest rates.
- Disposal of treasury stock: About half of the 4 million shares acquired this time were cancelled (March 8,2024). The remainder may be used for executive compensation or M&A, but there are currently no plans to
re-release the shares on the market. Therefore, there is no immediate impact on the supply-demand side of
the stock.
- Impact of the termination of the business alliance: Based on the company's financial results and the message
from management, it appears that the company has implanted in itself the ability to build a profitablestructure, so the direct negative impact of the termination of the business alliance is expected to be small.

Source: Company materials

Itoki | 5/8/2024

22

◇ FY12/2024 company forecast: Continued sales and operating profit increase, and operating
profit margin to rise further.
The company projects sales of 137.5 billion yen (+3% YoY), operating profit of 10 billion yen (+17% YoY),
recurring profit of 10 billion yen (+17% YoY), and net income of 7 billion yen (+19% YoY), which would be anincrease in sales and a further improvement in the operating profit margin.
The sales forecast is in line with the current growth rate of business negotiations in force. Meanwhile, thecompany's operating profit, excluding strategic SG&A expenses, was 11 billion yen in FY12/2023, which means
it is already within range of its 10 billion yen operating profit forecast.

Source: Company materials

Itoki | 5/8/2024

23

Growth strategy◇ New medium-term management plan RISE To GROWTH 2026: Moving into "Profitability
enhancement phase"On 13 February 2024, the company announced its new medium-term management plan, RISE TO GROWTH
2026, covering 2024-2026. It is positioned as a 'high-profitability phase' to enhance sustainable growth.
As mentioned earlier, the nature of the workplace, including the office, and its productivity improvements are
attracting increasing attention. The thinking style of management at client companies is changing from a onedimensional view of the office as a cost to a view of the office as an object of human capital investment that
pursues investment effects. Furthermore, office DX and the IoT of office equipment are expected to advance.
The company holds the mission "We Design Tomorrow. We Design WORK-Style”, hoping that thistransformation in workplace needs will lead to a long-term leap forward for the company.
This medium-term management plan is based on the "Tech x Design based on PEOPLE" concept and consists ofthe vital strategy "7 Flags" and ESG strategies.
The company's financial targets for FY2026 are sales of 150 billion yen (up 13% from FY12/2023), operating
profit of 14 billion yen (up 64%), operating profit margin of 9% (up 3 percentage points), and ROE of 15% (up 4percentage points). These are more focused on improving profitability than increasing revenue and show thecompany’s ambition to become an industry leader in terms of profitability by 2026.
Operating profit is expected to increase by a cumulative +5.5 billion yen from the current level, of which +4.8
billion yen is planned to be covered by increased earnings from the Workplace business. More specifically, theprofit plan is based on the effects of improvements through enhanced customer value, cost reductions in
production and logistics, improved profitability overseas, group synergies and increased revenues. It is set as amust-achieve target rather than a challenging target.
The company's message to the stock market is to maximize shareholder value and improve PBR by reducing
the cost of capital while aiming to achieve ROE in excess of the assumed 9-10% cost of equity capital. Regarding
shareholder returns, the company will raise its dividend payout ratio by 10 percentage points to 40%. This is
more than sufficient to meet the current expectations of the stock market.
The details of the plan will be discussed later in this report. Still, it can be said that it is a broadly welldeveloped plan that includes strengthening the core business base, seeding new office-related businesses,
developing specialized facility areas, strengthening the earnings structure on a consolidated basis, humancapital, and financial strategies.From the plan's first year, investors are likely to pay close attention to the rateof progress toward financial targets.

Source: Company materials

Itoki | 5/8/2024

24

The following is a summary of these seven priority measures and their KPIs.
2024-2026 Medium-term management plan
Flag 1
Office 1.0/2.0 area To strengthen value-added proposals for new work styles and office spaces that implement such work styles tosecure a base of sales and profits.
Measure 1
Appealing to the value of the experience through strengthening product capabilities 《Office1.0》
Value-added proposals for integrated spaces 《Office 2.0》
FY2026 sales growth of +10% over FY2023.
Operating profit margin of 10%.
Office3.0 area
Develop data-driven services that provide optimal work styles and office spaces through IoT and spatial sensing
of office furniture.
Measure 1
Development of new data services 《Office 3.0》
*1
Measure 2
Collaboration and capital alliance with AI companies
KPI
FY2026 single-year sales: 3 billion yen
3-year cumulative investment: 2.5 billion yen (excluding personnel expenses)
Specialized Facility Focus resources on development and engineering in the logistics facilities and research facilities domains andAreadevelop them into the second pillar of the company’s business.
Measure 2
KPI

Flag 2

Flag 3

Measure 1
Measure 2
KPI

Flag 4High Profitability
Measure 1
Measure 2
KPI

Flag 5

Group Synergy
Measure 1
Measure 2
KPI

Flag 6

Human Capital
MeasureKPI

Flag 7

Expansion of specialized facility areas
Establish maintenance businessSpecialty facility domain sales 30 billion yen (+40% over FY2023)
Operating profit 2 billion yen (+40% over FY2023)
FY2026 strengthening development and engineering structure through increasing people by more than 50*2

Increase production and operational efficiency by reorganizing the Group's production and supply system andrevamping the internal IT infrastructure
Supply Chain Optimization“Standardization, simplification, and automation" of operations
FY2026 manufacturing cost + distribution cost (consolidated): 5% reduction from FY2023
FY2026 increase in operating profit per employee: +50% from FY2023
Cumulative internal IT-related investment over three years (DX): 8 billion yen
Pursue group synergies by horizontally deploying successful experiences from the structural reform project
implemented by Itoki on a stand-alone basis to group companies
Horizontal deployment of structural reform methods to group companies
Promote functional collaboration among group companies
FY2026 consolidated group companies (simple sum of consolidated group companies excluding Itoki): 2%
improvement in operating profit margin from FY2023
FY2026 reduction of 3 billion yen in cash outflow outside the group
Enlighten each employee's independent and active "creativity and ingenuity" centered on personnel system
reformTransformation of HR System: Professional X Retention X Pay for Performance
FY2026 Employee Engagement Survey Results Percentage of affirmative responses to the key indicator "pride" 85%
The ratio of female managers: 13% in FY2026

Financial Strategy Systematically implement growth strategy investment, employee return, and shareholder return from a mediumto long-term perspective
Generate 65-75 billion yen in total from basic CF and other distributable funds over 3 years, to be distributed as *3
follows: 25 billion yen for strategic investment, 5 billion yen for R&D, 10 billion yen for capital investment, 10 billion
yen for human capital investment, and 20 billion yen for shareholder return

E
S
G

Environment
Society
GovernanceSupplemen- *1
tary
Information

Actions to achieve cost of capital and share price conscious management*4
Contribute to the realization of a society with zero negative impact on ecosystems
Contribute to maximizing society's human capital through our own business
Establish group-wide governance from a consolidated perspective
On February 14, 2024, the company launched "Data Trekking," a consulting service that supports agile officeconstruction and its operation in an accompanying manner, using sensing data in the office as a guidepost. The
service is expected to increase added value and recurring revenues by selling the products.

*2

Expanding the variety of SAS (shuttle-type multi-story automated warehouse system) for logistics, expanding
market share by introducing new airflow control products for research facilities, and establishing a business ingrowth areas for drug discovery/medical and semiconductor manufacturing.

*3 *4

See next figure

Source: Omega Investment from company materials

Itoki | 5/8/2024

25

Supplementary Information: Allocate the results of improved profitability to reinvestment in line with themedium- to long-term strategy and strengthen shareholder returns.

Supplementary Information: Achieve ROE that exceeds the cost of shareholders' equity and promote
higher PBR through expansion of equity spread.

Source: Company materials

Itoki | 5/8/202426

◇ Share price trends and focus: the results of reforms are reflected in share prices.
From the end of March 2022, when President Minato took office, to the end of March 2024, the company's
share price rose from 347 yen to 1,782 yen, and PBR went from below 1x to about 1.5x. It is believed that the
management policy and performance under President Minato's regime have significantly turned aroundinvestment sentiment, which was concerned about the receding office needs that emerged with the COVID-19
disaster and the company's past low profitability.
Secondly, there is a danger that when investors consider the company's prospects, they are too caught up in
the view that it sells goods to domestic offices, which narrows their view of the company's future potential.
This view should be swept away, and the company's future should be assessed flatly.
In other words, progress on qualitative milestones should be considered in addition to the financial KPIs
outlined in the medium-term management plan.
The company's 2027-2029 business profile is likely to become more apparent as the following factors comeinto play: a strong need to improve office productivity, a greater focus on profits on a consolidated basis,greater employee motivation for creativity and ingenuity, an increase in the proportion of selling functions
revenue, and new revenue opportunities outside the domestic office sector such as logistics and laboratories,
as well as expansion into the Asian market. As a result, the share price could move to the next stage.

Long-term trends in Itoki's share price and relative to TOPIX
Itoki

Price relative to TOPIX (RHS)

Source: Omega Investment

Long-term vision and direction of the new medium-term management plan

Source: Company materials

Itoki | 5/8/2024

27

Valuations
Below are the ROE trends (including projected ROE for Okamura and Uchida Yoko for the ongoing period) andPBR trends for the company and its three peers over the past five years.
Clearly, the company's ROE has improved to a level comparable to its competitors due to its improved
profitability, and PBR has risen accordingly to a level equivalent to its peers.
On the other hand, profit growth and further improvement in ROE are considered essential as future shareprice drivers. The ROE target in the company's new medium-term management plan is 15%, an improvementof 4 percentage points on the latest figures. As the ROE target becomes more feasible, there will be more
scope for PBR to expand.

Itoki ROE
UCHIDA YOKO ROE

KOKUYO ROEOKAMURA ROE

Itoki PBR
UCHIDA YOKO PBRKOKUYO PBROKAMURA PBR

Source: prepared by Omega Investment based on financial data from various companies.

Itoki | 5/8/202428

Share price and financial data of four office furniture companies
Code
Company nameFinancial year
Share price (4/19)
Market cap. (milion yen)
PER (x)PBR (x)Dividend yield (%)
Financial indicators (%)
ROE
ROA
Equity Ratio
Per Share Indicators
Number of shares outstanding at endof period (thousand shares)
EPS (yen, Plan)
BPS (yen, Act)DPS (yen, Plan)
Dividend payout ratio
Financial data
Net sales
Five-year growth rate
Gross profit
Gross profit margin
Operating profit
Five-year growth rate
Operating profit margin
Net profit attributable to owners of
the parent
Five-year growth rate
Net profit margin
Number of employees at end of term

7972

7984

7994

8057

Itoki

KOKUYOOKAMURAUCHIDA YOKO

December, 2023

December, 2023

March, 2023

July, 2023

1,819
88,772
11.78
1.50
2.86

2,517
286,913
13.41
1.14
3.02

2,269
214,752
10.68
1.34
3.79

6,730
66,250
11.04
1.24
2.82

11.3%
5.0%
46.8%

7.8%
5.3%
70.3%

10.8%
6.3%
59.6%

13.0%
4.8%
39.0%

49,100113,990

94,646

9,844

144.12
1,210.96
52.00
36.1%

187.742,209.32
76.00
40.5%

212.37
1,592.79
86.00
40.4%

609.625275.58
190.0031.2%

132,985
2.3%
52,240
39.3%
8,523
34.7%
6.4%

328,7530.8%
127,392
38.8%
23,8305.4%
7.2%

277,0152.8%
89,00532.1%
17,372
5.7%
6.3%

246,549
10.2%
42,674
18.6%
8,436
23.5%
3.4%

5,905

19,06915,906

6,366

27.9%
4.4%
3,892

6.0%
5.8%
6,931

8.0%
5.7%
5,492

28.3%
2.6%
3,241

Sales per Employee (thousand yen)

34,16947,43250,44076,072

EBITDAEBITDA margin
Statements of Cash Flows
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Free cash flow

7,821
8.6%

31,9209.7%

23,5858.5%

10,333
4.2%

6,321-4,012-4,1482,309

34,739-3,798-14,442
30,941

13,491-6,660-9,485
6,831

7,269-4,857-3,521
2,412

Source: Omega Investment from each company materials

Itoki | 5/8/2024

29

Major shareholders

As of 31 December 2023

Name or title

Address

Number ofsharesowned(Thousandsof shares)

Ratio of the number ofshares owned to thetotal number of issued
shares (%)

The Master Trust Bank of Japan, Ltd.

2-11-3 Hamamatsucho, Minato-ku

5,948

13.11

Nippon Life Insurance Company

6-6, Marunouchi 1-chome, Chiyoda-ku

2,225

4.90

Custody Bank of Japan

8-12, Harumi 1-chome, Chuo-ku

1,836

4.04

K.K. Ashisuto

4-12, Hiranomachi 2-chome, Chuo-ku,
Osaka

1,609

3.54

Itoki Crebio Business Association

5-1, Nihonbashi 2-chome, Chuo-ku

1,537

3.39

Mizuho Bank, Ltd.

5-5, Otemachi 1-chome, Chiyoda-ku

1,121

2.47

1,069

2.35

Sumitomo Mitsui Banking Corporation

1-2, Marunouchi 1-chome, Chiyoda-ku

Itoki Crebio Employee Stock
Ownership Plan

5-1, Nihonbashi 2-chome, Chuo-ku

993

2.19

Fumiko Ito

Minato-ku

923

2.03

Masamichi Yamada

Setagaya-ku

Total

827

1.82

18,09339.89

Source: Annual Securities Report of the company

Shareholding by ownership
As of 31 December 2023
Classification

Government andlocal authorities

Shares （100 shares per unit)
Foreign corporations, etc.
Financial
Other legal
Financial
Noninstitutions instruments firms
entities
Individuals
individuals

Individuals
and others

Total

Number ofshareholders(persons)

-

22

29

201

123

12

5,282

5,669

Number ofshares held
(units)-136,549

8,148

59,066

69,466

5,841

177,044456,114

Percentage ofshares held (%)-

29.937

1.786

12.94915.2291.280

38.815100.0

Status offractional
shares(shares)-

53,037-

Source: Annual Securities Report of the company

Itoki | 5/8/202430

Corporate governance and top management
The company has a board of auditors with eight directors, three of whom are outside directors and designatedas independent directors, one full-time auditor, and two part-time auditors (see details on the next page). The
company has also adopted an executive officer system to separate management oversight from businessexecution.
The company has not established voluntary advisory committees, such as nomination and remuneration.
However, when discussing the nomination and remuneration of senior management and directors, thecommittee's chairperson actively seeks the opinion of independent outside directors and receives appropriate
advice and involvement, so governance is considered to be practically functioning within the current
framework.
However, of the current 11 directors and auditors, 10 are male and one female (external), and all nationalities
are Japanese, which means that further diversity is required.
Some progress has been made regarding employee diversity (see below).

The company's corporate governance structure
General meeting of shareholders
Appointment/
Dismissal

Board of Directors
Managementmonitoring/
Supervision

Appointment/
Dismissal

Audit & Supervisory(8 directors (including 3 external directors))

Appointment/
Dismissal

Appointment/
Dismissal

Audit(Attendance/opinion)(3 auditors, including 2 external auditors)
Report/AdviceDiscussion/
ReportReport(Cooperation)

ReportAccounting
AuditorBusiness execution
Representative
director

Audit
Report/AdviceInternal audit
sectionBoard of managing
directors

Risk Management Committee(Full-time auditors inattendance)

Executive officers'
meeting
Executive officer

Compliance Committee
and others
Risk information

Each division

Audit
Financial audit

Source: Company materials

Itoki | 5/8/2024

31

List of directors and officers

Eiji Funahara
Full-Time
Audit &
常務監査役
Supervisory Board member

船原 英二

Apr. 1982 Joined Itoki Kosakusho Co., Ltd. (currently ITOKICORPORATION)
Jun.
2005
GeneralManager, Facilities Equipment Engineering
1982年
4⽉
株式会社伊藤喜工作所（現株式会社イトーキ）入社
Departmentof the Company)
2005年 6⽉
当社設備機器エンジニアリング部長
Jan. 2015 Executive Officer and General Manager, Production
2015年 1⽉ 当社執行役員生産本部生産統括部長
Department Group, Production Division of the Company
2020年
1⽉
当社常務執行役員生産本部長兼品質保証本部長
Jan.
2020
Managing
Executive Officer and General Manager,
兼生産統括部長
Production
Division, General Manager, Quality Assurance
Division,and General Manager, Production Department
2020年 3⽉
当社取締役常務執行役員生産本部長兼品質保証本部長
Groupof the Company
兼生産統括部長
Mar. 2020 Director, Managing Executive Officer, General Manager,
2024年 3⽉ 当社常勤監査役
Production Division, General Manager, Quality Assurance
Division, and General Manager, Production Department
Group of the Company
Mar. 2024 Full-Time Audit & Supervisory Board member of theCompany (current)

Itoki | 5/8/2024

Source: Company materials
32

Skills matrix of the Board of Directors’ Members

船原
Eiji

英二

Funahara

Source: Company materials

Itoki | 5/8/2024

33

Sustainability
As the company is a manufacturing company, CO2 emissions are inevitable in office furniture and logistics
equipment production. Therefore, the company is highly aware of the SDGs and ESGs and has prepared an
integrated report since 2021. In addition, the ESGDATA BOOK was published in 2022. It details the company's
evaluation of its materiality, KPI performance and other information.
Particularly noteworthy is that it has developed a medium-term environmental plan regarding theenvironment, which communicates concrete and quantitative progress for each year. For greenhouse gas
emissions, the plan sets out reduction targets not only for Scope 1 and 2 but also for Scope 3. Besides CO2
emissions, the plan also includes quantitative analyses of the introduction of renewable energy, carbon offsets,biodiversity, environmental accounting, etc.
About the SDGs, the following materialities have been defined. As noted before, there is scope for
improvement in terms of diversity, but as per corporate governance, risk management and compliancesystems are in place.

The company's approach to materiality

Source: Company materials

In addition, the employee diversity initiatives mentioned earlier are as follows and show steadyprogress.
Active recruitment of womenDistribution of Itoki employees[New graduates] Change in the ratioof male to female recruits

Human diversity increases with generational change[Management positions](Person) Gender ratio by age group(Person)[All employees] Ratio of men
and women by age group
The proportion of
women in the nextgeneration group isincreasing

Just under 150
managers
retired/rehired in
the last five years

Male
FemaleActive recruitment of experienced personnel(Years)(Years)[Recruitment] Ratio of new graduates/experienced recruits
New
graduates

Male

Female2023 (newgraduates)
Change in genderratio 1:2

Male

Female*Prepared from employee information as of November 2023. Directors and auditors are not included.

Promotion of women's activities
Launched SPLi, an internal community to promote women's
activities. Various activities to support career development
are implemented.

Experienced
recruits

The ratio of new
graduates/experi
enced recruits
7:3 → reversed
to 3:7.

Overseas recruitment
Partnership with Hanoi University of Technology,
Vietnam, to recruit high-level personnel: 2 joined in2011, 10 to join in 2012.

Source: Company materials

Itoki | 5/8/2024

34

Financial data (quarterly basis)
FY (¥mn)

2020/122021/122022/122023/12

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

37,707

26,99721,48930,01732,167

29,46822,41231,85835,34528,411

26,20533,36336,96531,22528,667

36,128

11.2

-9.3

-24.5

-0.1

-14.7

9.2

4.3

6.1

9.9

-3.6

16.9

4.7

4.6

9.9

9.4

8.3

Cost of sales

23,71017,765

13,811

19,036

20,101

18,72914,443

20,872

21,48318,03016,67821,384

22,216

18,954

17,48322,091Gross profit

13,997

9,232

7,678

10,981

12,02010,722

7,953

10,99913,862

10,381

9,527

11,97914,74812,271

11,184

14,037

SG&A expenses

10,996

9,602

9,590

9,901

10,352

9,453

9,203

10,150

9,898

9,973

9,812

11,484

9,970

10,047

11,006

12,694

Operating income

3,001

-370

-1,912

1,079

1,698

1,275

-1,242

829

3,964

407

-285

496

4,777

2,225

177

1,344

Year-on-year basis (%)

43.5

–

–

–

-43.4

–

–

-23.2

133.4

-68.7

–

-40.2

20.5

446.7

–

171.0

Operating profit ratio (%)

8.0

-1.4

-8.9

3.6

5.3

4.3

-5.5

2.6

11.2

1.4

-1.1

1.5

12.9

7.1

0.8

3.7

Non-operating income

154

162

251

237

240

161

171

122

125

164

171

96

125

114

141

101

[Statements of income]Net sales
Year-on-year basis (%)

Non-operating expenses
Ordinary income

273

168

107

172

250

257

101

185

115

130

177

539

79

68

52

249

2,882

-376

-1,768

1,143

1,657

1,173

-1,179

786

3,974

442

-291

52

4,824

2,271

265

1,195

Extraordinary income

0

6

125

980

1,255

78

133

88

786

139

118

6,762

1

15

120

50

Extraordinary expenses

116

42

55

1,503

20

456

518

1,474

44

64

38

3,465

21

10

24

308

Income before income taxes

2,766

-412

-1,697

620

2,893

795

-1,565

-600

4,716

516

-211

3,351

4,804

2,275

363

936

Total income taxes

1,039

134

-195

654

1,028

490

-132

-796

1,381

246

-21

1,585

1,506

864

161

-60

Net income

1,760

-557

-1,491

53

1,942

348

-1,440

316

3,388

288

-159

1,777

3,296

1,411

202

996

Year-on-year basis (%)

43.6

–

–

–

10

–

–

496.2

74.4

-17.2

–

462.3

-2.7

389.9

–

-44.0

Net income ratio (%)

4.7

-2.1

-6.9

0.2

6.0

1.2

-6.4

1.0

9.6

1.0

-0.6

5.3

8.9

4.5

0.7

2.8

Current assets

69,811

60,382

52,46357,18365,54362,17055,24957,75369,45864,09659,87371,027

72,23068,75568,04073,304

Cash and deposits

18,186

21,312

18,956

18,246

19,503

22,112

18,213

17,351

19,196

20,073

17,13826,876

20,89824,68823,192

24,795

Notes and accounts receivable – trade37,611

27,23020,29826,59932,061

26,596

21,38526,783

–

–

–

–

–

–

–

Notes and accounts receivable - trade,and contract assets

–

–

–

–

–

–

–

–

35,20528,234

24,111

29,316

34,51928,377

26,94831,158Non-current assets

49,872

49,93350,41047,912

46,92546,36946,046

46,144

46,64747,395

48,12644,26043,61142,91843,533

44,132

Property, plant and equipment

27,612

27,35027,32926,20625,184

24,77924,887

24,417

25,10526,042

26,932

24,97824,68924,952

24,73024,792Intangible assets

5,113

5,623

5,853

5,590

5,504

5,419

4,885

4,114

4,128

4,168

4,145

1,819

1,837

1,884

2,161

2,292

Goodwill

2,391

2,207

2,189

2,093

2,018

2,016

1,407

1,317

1,214

1,222

1,200

517

446

391

346

341

Investments and other assets

17,146

16,95917,227

16,116

16,236

16,17016,273

17,612

17,413

17,184

17,04817,462

17,08416,08016,641

17,048

Total assets

120,352 110,940 103,453 105,096 112,469 108,540 101,295 103,898 116,105 111,492 108,000 115,288 115,841 111,693 111,573 117,437

Current liabilities

55,44946,09740,19843,64649,24545,26640,30742,544

51,837

47,13843,65549,09947,85442,54742,01047,340

Short-term borrowings

15,616

13,28914,23913,234

13,45812,061

12,40912,50015,014

11,976

11,738

11,23910,874

10,29910,383

10,276

Non-current liabilities

18,327

18,22018,07917,25917,506

17,08816,257

16,277

16,334

16,02016,178

16,27816,23815,727

15,72415,096Long-term borrowings

9,475

9,574

9,453

8,508

8,711

8,193

7,435

7,591

7,427

7,174

7,266

7,530

7,453

7,062

6,959

6,577

Total liabilities

73,77764,31858,27760,90666,751

62,35456,56558,822

68,172

63,15859,83365,37764,09258,27557,73462,437

Total net assets

46,575

46,62145,17544,18945,717

46,18644,73045,07647,933

48,33348,16649,91051,74853,41853,83954,999

Shareholders’ equity

45,47945,39043,786

43,69145,04745,41943,97944,301

47,24947,56747,40849,18550,80652,26752,46954,960Share capital

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

5,294

Capital surplus

9,201

9,642

9,641

9,628

9,628

9,632

9,632

9,638

9,638

9,638

9,638

9,638

9,638

9,665

9,665

9,665

Retained earnings

31,03030,461

28,88428,95030,30630,65429,21329,53032,47732,76932,61034,38736,00837,41937,621

38,617

-46

-6

-33

-182

-182

-161

-161

-161

-161

-134

-134

-134

-314

-111

-111

-111

45

45

45

45

45

45

45

45

45

45

45

45

45

45

[Balance Sheets]

Treasury shares
Share acquisition rights
Total liabilities and net assets

120,352 110,940 103,453 105,096 112,469 108,540 101,295 103,898 116,105 111,492 108,000 115,288 115,841 111,693 111,573 117,437[Statements of cash flows]
Cash flow from operating activities

5,404

-843

4,577

-1,803

4,581

1,223

4,078

2,243

Cash flow from investing activities-1,442290

503-1,673-1,4106,333-3,265-747

Cash flow from financing activities

293-2,560-1,418-1,240-661-765-3,266-882

Free cash flow

3,962

-553

5,080

-3,476

3,171

7,556

813

1,496

Net increase in cash and cash equiv.

4,240-3,037

3,787-4,687

2,630

6,911

-2,466

711

Cash and cash equiv. at beginning of
period15,494

19,735

16,697

20,485

15,79718,50925,42022,953

Cash and cash equiv. at end of period

19,735

16,697

20,485

15,79718,50925,42022,953

23,664

Source: Omega Investment from company materials

Itoki | 5/8/2024

35

Financial data (full-year basis)
FY (¥mn)

FY12/2013 FY12/2014 FY12/2015 FY12/2016 FY12/2017 FY12/2018 FY12/2019 FY12/2020 FY12/2021 FY12/2022 FY12/2023[Statements of income]Net sales

103,461

102,993

106,516

101,684

108,684

118,700

122,174

116,210

115,839

123,324

-1.9

-0.5

3.4

-4.5

6.9

9.2

2.9

-4.9

-0.3

6.4

7.8

Cost of sales

67,11866,797

68,37465,021

69,966

77,43680,49574,322

74,14577,57580,744Gross profit

36,34336,19638,142

36,66338,71841,264

41,67941,88841,69445,74952,240

35.1

35.1

35.8

36.1

35.6

34.8

34.1

36.0

36.0

37.1

39.3

SG&A expenses

32,20333,723

33,83633,86235,761

39,33940,77640,08939,15841,16743,717

Operating income

8,523

Year-on-year basis (%)

Gross profit ratio (%)

132,985

4,140

2,472

4,306

2,800

2,956

1,925

903

1,798

2,536

4,582

Operating profit ratio (%)

4.0

2.4

4.0

2.8

2.7

1.6

0.7

1.5

2.2

3.7

6.4

Non-operating income

813

841

898

771

750

889

677

804

694

556

481

Non-operating expenses

528

495

605

483

412

448

634

720

793

961

448

4,425

2,818

4,599

3,087

3,295

2,365

945

1,881

2,437

4,177

8,555

Extraordinary income

685

615

171

97

228

919

27

1,111

1,554

7,805

186

Extraordinary expenses

238

262

524

267

121

204

35

1,716

2,468

3,611

363

4,872

3,171

4,246

2,918

3,401

3,081

938

1,277

1,523

8,372

8,378

Ordinary income

Income before income taxes
Total income taxes

876

813

-385

1,068

959

1,339

1,517

1,632

590

3,191

2,471

3,910

2,160

4,530

1,907

2,402

1,722

-550

-235

1,166

5,294

5,905

Net income ratio (%)

3.8

2.1

4.3

1.9

2.2

1.5

-0.5

-0.2

1.0

4.3

4.4

ROE（%）

10.2

5.2

10.4

4.2

5.2

3.7

-1.2

-0.5

2.6

11.1

11.3

Current assets

52,92555,71456,342

52,41058,147

62,143

58,10957,18357,75371,02773,304

Cash and deposits

19,553

21,211

21,456

19,83919,977

16,22917,03018,246

17,351

26,876

24,795

Notes and accounts receivable – trade26,24325,965

26,13823,241

26,86933,16028,244

26,59926,783

Notes and accounts receivable - trade, andcontract assets
Non-current assets

29,31631,15842,33541,007

41,832

43,27144,07346,55949,95547,912

46,14444,26044,132

Property, plant and equipment

28,19327,041

26,39525,322

24,42626,362

27,781

26,206

24,417

24,97824,792Intangible assets

1,230

1,109

1,313

1,142

3,651

4,437

4,945

5,590

4,114

1,819

2,292

34

26

240

208

2,793

3,005

2,413

2,093

1,317

517

341

Investments and other assets

12,911

12,857

14,123

16,80615,995

15,76017,22916,116

17,612

17,462

17,048

Total assets

95,261

96,721

98,175

95,681

102,221108,703108,778

105,096

103,898

115,288

117,437

Current liabilities

35,35936,677

36,10635,39039,68345,13347,55943,64642,54449,09947,340

Short-term borrowings

11,473

11,087

10,94011,76012,564

11,721

15,533

13,234

12,500

11,23910,276

Non-current liabilities

16,874

16,854

14,756

14,88815,211

16,076

15,385

17,25916,277

16,27815,096Long-term borrowings

5,124

5,089

5,171

5,296

5,328

5,113

6,633

8,508

7,591

7,530

6,577

Total liabilities

52,23453,53250,86350,27854,894

61,21062,94460,90658,82265,37762,437

Total net assets

43,02643,18947,31145,40247,32647,49245,834

44,18945,07649,91054,999

Shareholders’ equity

41,07941,632

45,67744,94946,863

46,85445,37043,812

44,93149,871

54,960Share capital

5,277

5,277

5,277

5,277

5,277

5,277

5,294

5,294

5,294

5,294

5,294

Capital surplus

13,061

13,061

13,222

13,14012,404

9,786

9,201

9,628

9,638

9,638

9,665

Retained earnings

22,07323,55629,22330,50432,315

31,10429,862

28,95029,53034,387

38,617

Treasury shares

-833

-834

-3,000-4,700-4,701

0

-46

-182

-161

-134

-111

45

45

45

45

105,096

103,898

115,288

117,437

Net income[Balance Sheets]

Goodwill

Share acquisition rights
Total liabilities and net assets

95,261

96,721

98,175

95,681

102,221108,703108,778[Statements of cash flows]
Cash flow from operating activities

3,162

5,715

4,522

5,072

3,565

1,384

3,586

4,561

2,774

5,804

6,321

Cash flow from investing activities-1,978-1,742-803-4,044-2,971-3,094-3,221-1,152-1,170

4,923-4,012-4,148Cash flow from financing activities

51-2,179-3,807-2,571-706-2,4630-2,267-2,658-1,426

Free cash flow

1,184

3,973

3,719

1,028

594

-1,710

365

3,409

1,604

10,7272,309

Net increase in cash and cash equiv.

1,944

1,814

184

-1,61988-4,031

952

1,203

-900

9,622

-1,755

Cash and cash equiv. at beginning of period

16,15618,102

19,918

20,10318,483

18,571

14,54015,494

16,697

15,79725,420Cash and cash equiv. at end of period

18,102

19,918

20,10318,483

18,571

14,54015,494

16,697

15,79725,42023,664

Source: Omega Investment from company materials

Itoki | 5/8/2024

36

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