Summary of Q&A, Conference call for FY 2024 Q2 Financial Results
Q1. Please tell us about the future response regarding cross-shareholdings.
A1. Regarding cross-shareholdings, we have been aware of the market's expectations and are considering
reducing them. We cannot make any comments on individual cases, however we will have careful discussion
with the related companies in the future.
Q2. How do you evaluate the first-half sales and operating profit? How was it compared to the plan?
A2. We do not set performance plans on a quarterly basis. Backed by factors such as the weaker yen than
expected and both the Automobile and Materials Handling Equipment businesses experiencing steadyproduction and sales, we believe that both sales and operating profit reached a high level.
Q3. While the full-year performance plan was revised upward, the operating profit for the second half appears
modest compared to the first half. What is the risks incorporated in the second half?
A3. The full-year performance plan was revised upward due to the steady performance in the first half and therevised assumption of a weaker yen for the second half. We have not changed our cautious stance for theAutomobile segment in the second half. Regarding the Materials Handling Equipment segment, we areassuming a challenging second half, incorporating risks such as supply constraints from forklift suppliers andthe impact of project delays in logistics solutions.
Q4. What are the factors that led to an increase in operating profit for the Materials Handling Equipment
segment in the first half compared to the previous fiscal year?
A4. We believe that the increase in sales volume of the forklift business, the favorable performance of thevalue chain including after-sales services, and the positive effect of the weaker yen on the exchange rate havecontributed to the improved performance.

Q5. It seems that the profit margin recovery in the materials handling equipment business is lagging behindcompetitors. Why is that?
A5. While we cannot comment on comparisons with other companies, one possible factor is that the leadtime from receiving orders to production and sales of forklifts has been prolonged, causing a delay in therealization of the effects of price increases.
Q6. The full-year sales plan for forklifts has decreased compared to the plan at the end of the first quarter.
Why is that? Are there any bottlenecks in the supply chain?
A6. There isn't a specific bottleneck, but parts supply delays, mainly in North America, is still occurring.
We have incorporated such risks into our second-half projections.
Q7. The number of forklift orders seems to be on a downward trend. What is the future outlook.
A7. In 2021 and 2022, orders were high due to pent-up demand after the pandemic, but the backlash isshowing to a certain extent this year. We expect this year to be a temporary plateau, but we hope for arecovery starting next year.
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Q8. Regarding the medium-term performance targets for the logistics solution business, what level of profit
margin are you aiming for? In addition, please tell us about the measures to improve profit margin as well.
A8. Currently, profit margins are sluggish due to rising raw material and purchased parts costs, higher laborcosts, and project delays caused by labor shortages. However, once the situation stabilizes, we would liketo aim for double-digit profits for the entire Materials Handling Equipment segment through measures
such as the modularization of systems and the strengthening our activities to receive repeat orders, which
we have been working on to date.
Q9. The operating profit margin for the Automobile segment in the first half was at a high level of 5.9%.
Will this high level of profit margin continue in the future?
A9. The high profit margin was achieved due to high levels of production in vehicle, engine, andcompressor businesses, as well as the weaker yen in the exchange rate. If the same level of production
and weaker yen continue, it should be probable that the same level of profit margin will be maintained.
Q10. What is the profitability of the onboard battery business?
A10. The profitability has been improving until the first half, but with the start of operation of the second
production line at the Ishihama Plant this fiscal year and the cost increases is expected, we do not see
the current pace of improvement to continue.
Q11. Please tell us about the productivity of each production line in the onboard battery business.
A11. The productivity of both the first and second production lines has improved compared to when
production started initially. We would like to launch the new line with higher productivity by utilizing ourexperience so far.
Q12. If there is any new information you can share about the development of bipolar-type lithium-ion
batteries and all-solid-state batteries, please let us know.
A12. We are jointly developing with Toyota Motor Corporation, leveraging the experience andknowledge of such as material development that we have cultivated through the development andproduction of bipolar-type nickel-metal hydride batteries. However, there is nothing we can share about
the specific technology or our involvement in production.
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