In the severe environment of VUCA, where the future is unpredictable, we have formulated a mid to longterm business plan, “Beyond the OCEAN”, based on the opinions of all divisions, including global operations,and by adopting a back-casting perspective from a long-term vision, rather than updating the mid-termbusiness plan as in the past.
"Beyond the OCEAN" has been compiled based on the following three perspectives.
"Purpose" that will be pursued no matter what environmental changes occur.
"Long-term strategy" to grasp environmental changes and make strategic moves.
"Resilience" that can be applied even when the environment is different from what is expected.
The mid-term business plan, as a mid-term milestone, covers the four-year period until fiscal 2026. We
named it "NEXUS-26" with the idea of "connecting values", "connecting with bonds" and "groupmanagement".
With “Beyond the OCEAN” and “NEXUS-26”, we will continue to create new value.

First, I would like to explain Beyond the OCEAN, our mid to long-term business plan through 2030.
Our brand slogan, “Passion in Creating Tomorrow,” means that our diverse workforce will work together tocreate new value. We believe that it represents the significance of our existence of our company, and wehave changed from a brand slogan to a purpose.
We will continue to make this purpose the axis of our management, which is to create value for a sustainable
tomorrow through the active participation of diverse human resources.

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Next, I will explain the concept of the mid- to long-term business plan.
In order for us to survive amidst the transformation of long-term trends and mobility values, we must
thoroughly leverage our strengths, technology and on-site capabilities, and trust and the number-one market
share.
To this end, it is extremely important to have a human resources strategy that will enable our employees toplay an active role and realize their purpose to create new value.
The Company's long-term themes of focus are co-growth of sales and profits, to create value through diverse
technologies, and to integrate sustainability and management.

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First, it is important to enhance the foundation as a mid- to long-term growth image. It is important torecognize the connection between society and the environment and our business, prevent negative impacts,
and create positive value.
The key to this is employees. Through the “Human Capital Strategy to achieve our Purpose,” employees
perform to their potential and “create value with diverse technologies.” As a result, "business strategy" will
be effectively implemented and "co-growth of sales and profit" will be realized.
Our business strategy is to further enhance the profitability of our mainstay stamping business segment byintroducing high value-added products in the areas of lightweight and EVs, and to deepen ties with our major
customers.
Furthermore, in the valve segment and molding segment, we will boldly develop the EV market by utilizing
our sealing and sound and vibration-proofing technologies, not only for car manufacturers but also for megasuppliers.
Furthermore, we will actively take on challenges outside the mobility field and nurture the seeds for creating
the pillars of the next generation through products that solve social issues by leveraging our coretechnologies.
Through these mid and long-term strategies, we will create value in both financial and non-financial aspects.
This is consistent with our sustainability materiality and will be integrated into our management objectives.

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The market environment is changing rapidly, and the market environment and growth scenario may not be
as expected.
To survive in these times, we recognize the importance of resilience -- the ability to flexibly overcomechanges in the environment, no matter how they occur.
The current long-term strategy incorporates elements such as an active diverse workforce, expansion ofbusiness areas, trust building with stakeholders, and an appropriate financial level, all of which are linked toresilience.
Furthermore, we will pursue a new era of risk management that quickly identifies risks and opportunities,
overcomes weaknesses, strengthens strengths, and manages them in an integrated manner.

4For management targets, we have established targets based not only on financial value, but also on nonfinancial value.
Our financial value target is JPY210 billion in sales and sustained growth thereafter in order to improve
capital efficiency and achieve sustainable growth.
We have also set our operating margin ratio and ROE at 7% and 8%, respectively, for 2026, and we aim toincrease them to 10% and 10%, respectively, by 2030.
As for non-financial value targets, based on the materiality of solving social and customer issues through our
products, we will increase the sales ratio of our core business, the mobility field, to 50% in 2026 and to 70%
in 2030 for EVs.
In new fields, we aim to launch 15 new products and services by 2026 and 35 by 2030.
We would also like to use employee engagement as an indicator of our sustainability value goal, which is toempower our employees and create a sustainable society, a goal that embodies purpose. The first survey
will be conducted during this fiscal year and targets will be established based on the results.
In addition, for natural capital, we have already set a long-term goal of reducing CO2 emissions to 50% of
the FY2019 level by 2030, and as a milestone, we aim to achieve a 30% reduction by 2026.

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Materiality regarding sustainability is included in the current mid-term plan, and we will continue to promote
initiatives based on the KPIs that have been established.
Of these, those themes that we consider particularly important and have a significant impact on corporate
value will be set as the management targets I mentioned earlier, and we will work on them with high priority.
In terms of materiality through business, especially in the development of environment-conscious productsthat have a large impact on our core business, we have set a management target for the ratio of sales for
EVs, which has been a KPI for some time.
In addition, as part of our will to create new value, we set the number of new products and services to belaunched as a management target in order to contribute to a sustainable mobility society and enriched
lifestyles.
As a manufacturing company, minimizing our environmental impact is one of our most important tasks, andwe have set the reduction of CO2 emissions as our management target in relation to climate change, whichis the most urgent issue.
Above all, we have newly set the improvement of employee engagement as a management goal related to
all materiality pillars of respect and success of human resources, which is important to become a company
that has “Passion in Creating Tomorrow,” which is our purpose.

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From here, I would like to explain NEXUS-26, our mid-term business plan to realize Beyond the OCEAN.
First, a review of the previous mid-term business plan, OCEAN-22, shows that although we achieved our sales
targets, we fell short of our goals for profit and capital efficiency, such as operating income and ROA, due tothe significant impact of production fluctuations and material price hikes caused by the impact of COVID-19
and the semiconductor shortage.

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As for the results of OCEAN-22, on the business side, as I just mentioned, despite the challenging
environment, sales steadily improved, reaching a record high in FY2022, and profits also reached a record
high in FY2021.
In addition, we were able to establish and expand mass production of ultra-high-tensile steel cold stamping
technology, evolve technological development for electrification, and actively develop products outside themobility field by utilizing our core technologies to bring several products to market.
We have also been active in sustainability management, identifying materiality in 2020, announcing PACIFIC
Environmental Challenge 2050, and actively working to become carbon neutral. We have also strengthened
our efforts in human capital initiatives, including the formulation of a human rights policy and theimplementation of health management. We have also strengthened our information disclosure and received
high evaluations from CDP, EcoVadis, and other evaluation agencies.
On the business side, however, the Company faces challenges in improving profit margins and capitalefficiency, and recognizes the importance of integrating the various technologies it possesses to increase
competitiveness in order to improve these areas.
In addition, we need to strategically integrate our sustainability initiatives, and to pave the way for a newera, it is also important for us to become a company where people can say what they think, challenge what
they think, and grow as a result of working at our company.
The four focus themes outlined in the mid to long-term plan are closely linked to the resolution of these midterm issues. "NEXUS-26" is based on a "Human Resources Strategy" that enables diverse human resources
to play an active role in realizing "Purpose".
These human resources will draw on the potential of the diverse technologies that are our strength, and in
addition to strengthening our existing customer base, we will also develop new markets.
Our basic approach is to "Integrately create value based on sustainability" and achieve "Co-growth of sales
and profits."8

We have organized our goals by business under these four themes.
The stamping business segment will increase both sales and profits by increasing added value and expanding
sales through automotive body structural proposals, based on on-site capabilities to follow production
fluctuations in order to contribute to decarbonization, such as reduction of weight and CO2 emission during
production.
In the molding business segment, we will leverage our strengths in soundproofing, vibration-proofing, anddecorating technologies to strengthen sales expansion to new customers, while aiming for sustainablegrowth through materials and product development based on a circular economy.
In the valve TPMS segment, we aim to become a development-oriented business that generates high added
value by leveraging its strengths in wireless communication technology and high quality, and to create newpillars of business with products for EVs.
As for new products, we will pursue evolution by upgrading the products we have already launched, whilestrengthening our search for new fields and developing a data business to solve social issues into a pillar ofour business.

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The sales by segment thus depict a picture in which each segment grows almost in proportion to the size of
its sales in FY2023 and FY2026.
As the market recovers from the COVID-19 pandemic, the main growth factors for stamping and molding
business segments will be operation of the new Higashi-Ogaki Plant and increased production through capital
investment overseas; and for the valve segment, increased sales of the newly launched electric expansion
valves will contribute.
Since FY2021, we have partially revised our revenue recognition, so sales decreased year on year due to thechange in accounting standards. The above are sales targets based on the new standards after this change.
As shown in the chart on the right, sales in FY2026 are expected to be 240 billion yen, and the average annual
growth rate from FY2022 will be 5%.

10Our financial strategy is to boldly invest in growth while remaining conscious of the cost of capital. Ourfinancial policy is to use generated operating cash flow as a source of funds to make strategic investments
and shareholder returns, with temporary shortfalls to be covered by borrowings.
We are conscious of capital efficiency and aim to achieve ROE of 8% or more in 2026 and 10% or more in
2030. Our investment policy is to make aggressive strategic investments with a new stamping plant and a
new line of electric expansion valves to realize future business growth.
Our shareholder return policy is to target a dividend payout ratio of 30%, while flexibly implementing sharebuybacks to enhance shareholder returns.
We will strive to increase corporate value by generating cash flow through these business investments andbusiness growth investments, improving capital efficiency, and enhancing shareholder returns.

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Next, I would like to share our growth strategy by business segment.
First, as our goal for 2030, the stamping business will become a proposal-based technology group that cansurvive in the age of decarbonization, thereby deepening ties with central customers and expanding highvalue-added stamping products.
In addition, we will establish a solid business foundation by promoting production technology innovationand smart factories to increase cost competitiveness and ease of work and productivity that surpass thoseof our competitors.
The first of NEXUS-26's focus themes is to create products for decarbonization. In particular, the cold
stamping method, which is our specialty, has an advantage over the hot stamping method in reducing CO2
emissions during production.
We will propose the replacement of hot stamped parts, and also expand the number of EV products.
We will also use structural analysis technology to propose optimal structures to zones and increase bulk
orders for body parts, thereby improving our manufacturing and technological capabilities.
Furthermore, we will improve our cost competitiveness and establish a solid business foundation throughefficient manufacturing using AI and other digital technologies.
In this way, we will build a highly profitable structure while improving capital efficiency through both valueadded creation and cost competitiveness.

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A particularly large strategic investment in the stamping business is the new plant under construction at theHigashi-Ogaki Plant. This responds to the demands of the times by increasing stamping facilities andautomating welding lines, as well as introducing renewable energy and improving work comfort.
At the same time, a new machinery building will be built to strengthen the cost competitiveness of ultrahigh-tensile steel cold stamping and dies for large parts, shorten lead times, and expand the internalizationof technology and skills.
In addition, a new R&D building will be constructed to strongly promote the development of new dies andIoT-related products.
By combining these functions, it will serve as a global “mother factory” that creates new value and is
responsible for steady growth in sustainable sales and profits.

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Next, I will explain the strategy for the molding business as a business that we would like to strengthen inparticular.
We believe that while our production facilities for molding base, and we intend to strengthen this business.
Our goal for 2030 is the creation of new markets and a shift to a circular economy through the applicationof soundproofing, vibration-proofing, and new decorating technologies.
There are three main focus themes.
The first is to establish sound and vibration-proofing technology and promote new products and new
business development. Here, we will accelerate new products for EVs and expand sales to new customers,
especially to mega-suppliers.
Next, in the decorating business, we will expand our global production capacity while developing the fastgrowing markets of ASEAN and India from our plant in Thailand.
Furthermore, the third theme of focus is to strengthen our ability to develop materials that are compatible
with the circular economy era.

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The molding business has diverse strengths, including sound and vibration-proofing technology, film
decoration technology, design capabilities from material formulation, and an in-house integrated systemfrom planning and design to design and production.
In particular, with the expansion of the EV market, we are pushing forward with the development of new
customers globally while leveraging our existing customer base, such as compressor covers using sound andvibration-proofing technology, and aerodynamic wheel caps utilizing our design capabilities based on
improved aerodynamic performance.

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In the valve business, our goals for 2030 are to realize speedy development-oriented business expansionthat anticipates market needs, and to establish a new business pillar in products for thermal management
systems for EVs.
As a focus theme for NEXUS-26, we believe it is important for business growth, especially in the age ofelectrification, to introduce new products that utilize core technologies such as sealing technology andwireless communication technology, and to establish a brand.
In the area of TPMS, where price competition is fierce, we have begun to expand sales to emerging EV
manufacturers and are working to expand sales volume.
In addition, we will promote structural reform of existing businesses, including reorganization of global
production and development bases and improvement of productivity through digital innovation.

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As the cornerstone of our valve business strategy, we will promote the development and sales expansion of
products for thermal management systems. With the development of battery EVs, the market for heat pumpsystems and various valves for heat utilization systems around batteries is expected to grow.
We will expand sales globally by developing products and establishing a mass production system that takes
advantage of our strengths, such as sealing technology and high reliability cultivated in the valves business.
By maximizing the use of energy from EVs, we will strongly promote this business as one that contributes toreducing environmental impact through our products, and aim to establish a new business pillar with valves
for heat management systems.

17New product development is an area in which we continue to take on various challenges in order to createa business pillar in the long run.
As our goal for 2030, we would like to make the data businesses utilizing wireless, apps, cloud, AI, and big
data new business pillars.
Our approach is to expand our business domain with a focus on businesses that contribute to society andsolve social issues, and to evolve the logistics, livestock, infrastructure, and lifestyle-related businesses
already on the market by upgrading them.
We also hope to solve social issues by creating products and services in completely new fields.
To this end, we have launched a new business creation project under the name of OMEGA PROJECT, which
is open to internal applications.
By advancing these initiatives, we hope to achieve sales of JPY10 billion and operating income of JPY2 billion
by 2030.

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Our technology development strategy is based on two axes: deepening the various core technologies ofexisting businesses to create new value, and improving the development environment to accelerate thecreation of new businesses, while also collaborating in the development of existing and new businesses.
In July 2025, the R&D Center will be put into operation on the Higashi-Ogaki Plant site, and under the themeof a co-creation space, the Center will conduct integrated R&D of development and production technologies
and realize the creation of new businesses in the future.
In addition, to create effective intellectual property that contributes to the creation of new value as anintellectual property strategy, we will promote intellectual property analysis, human resource development,
and the development of systems to strengthen the intellectual property management capabilities of theentire Group.
By combining these efforts, we will promote business growth that contributes to society by supplying highvalue-added products and services.

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As stated in our purpose, “Passion in Creating Tomorrow,” our human resource strategy is to become acompany where all workers have their thoughts and can play an active role.
We believe that by achieving this, we can become a company that is chosen by people and in which everyone
can demonstrate their abilities, even in an era of changing work styles.
To realize our purpose, we respect each person's ideas, enhance the foundation for everyone to express
their thoughts, and create an environment where people can realize what they want to do and learn.
Based on the idea that this will lead to business growth, we have identified seven themes based on employee
feedback and materiality.
We believe that by addressing these issues, we can realize a synergistic effect between the realization of
employee wellbeing and the enhancement of corporate value.

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Here is a chart of specific initiatives organized by these seven themes.
First, the focus is on fostering a culture of challenge by understanding and increasing employee engagement.
This will lead to vitality that will lead to infrastructure development, such as respect for human rights, safety
and health, improvement of the working environment, and business growth such as human resource
development and D&I.
We believe that this will create a virtuous cycle of increased engagement.
This increased engagement is an essential part of our company's purpose -- “Passion in Creating Tomorrow.”

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The digital strategy aims to realize smart factories globally that visualize all production processes, quickly
identify problems in overall production, quickly make improvements, and promote efficiency andautomation.
Last year, we integrated the business of our digital subsidiary, P.I. System Corporation, into ours, and we arepromoting business innovation using digital technology in an organic and rapid manner.
On top of that, there are three themes for NEXUS-26 initiatives.
First, the core systems will be restructured, production sites will be digitized, and their integration, fusion,and utilization will be promoted.
In addition, we will raise the level of digital literacy of all employees, which is necessary to promote
digitalization, while nurturing specialized human resources and placing them in the right positions.
As a precondition for such efforts, we will also accelerate efforts to enhance cybersecurity on a global basis.

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Minimizing environmental impact, one of the pillars of materiality, is also an extremely important issue forachieving sustainability as a manufacturing company, and we are working on this issue with the long-termgoal of PACIFIC Environmental Challenge 2050 from 2020.
In particular, the reduction of CO2 emissions is a theme that is critical to our survival both socially and as acompany. We have set the reduction of CO2 emissions as a management goal and are accelerating our efforts
through daily improvements, innovative technologies, and the introduction of renewable energy.
Regarding the reduction of waste emissions, we are reviewing our targets because some data were notincluded in the domestic emissions, but we will continue to aim to minimize the emissions by 2050 and shift
to a recycling-oriented business.
The conservation of water resources is also deeply related to biodiversity, which has been the focus of muchattention in recent years, and we intend to reduce risk and contribute to the local community in accordancewith the regions in which our bases are located.

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Finally, we believe that building trust with stakeholders is extremely important to enhance long-term
corporate value.
First, for corporate ethics and compliance, individuals must have a sense of ethics in addition to sincerity incomplying with laws and regulations in order to achieve purpose and sustainability in a rapidly changing
business environment. If this is damaged, social credibility will be lost. In order to continuously enhance thiscredibility, we are further improving employee training and conducting periodic surveys.
Improving customer satisfaction is of course an extremely important prerequisite for business, and we will
deepen long-term relationships of trust by anticipating and proposing the needs of our customers, including
not only basic requirements such as QCD, but also social and environmental values.
As a good partner in management, we aim to enhance dialogue with investors and shareholders and further
improve information disclosure to enhance our corporate value over the long term.
In the area of responsible procurement, in addition to procurement risks such as material price hikes andgeopolitical risks, we will also strengthen our efforts for human rights, environmental due diligence, thereduction of negative impacts, including the supply chain, as they have become extremely important.
As a company that does business in seven countries around the world, our relationships of trust with thepeople of each region are a source of strength in various aspects of our business operations.
Thus, fostering a relationship of trust with stakeholders will lead to the happiness of stakeholders and thelong-term competitiveness of the Company.
This is what we believe are indispensable for the realization of the “Passion in Creating Tomorrow.”
As a company that embodies the purpose of the “Passion in Creating Tomorrow,” we will continue topromote Beyond the OCEAN and NEXUS-26 as a unified Group in order to achieve sustainable growth.
We would like to pursue better management by receiving honest opinions from you, our partners, and would
appreciate your assistance in this endeavor.

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