Security code 6373
June 2, 2022

To Shareholders
I-197 Kumasaka-machi, Kaga City, Ishikawa

Daido Kogyo Co., Ltd.
President
Hirofumi Araya

Notice of Convocation of the 129th Ordinary General Meeting of Shareholders
You are cordially invited to attend the 129th Annual General Meeting of Shareholders of DAIDO KOGYO CO., LTD. (the"Company"). The meeting will be held as described below.
In holding this General Meeting, we have carefully examined the propriety of holding from the viewpoint of preventing therecent spread of the novel coronavirus (COVID-19) infection and decided to take appropriate measures deemed necessary to
hold the Meeting.
From the viewpoint of preventing the spread of COVID-19 infection, shareholders are kindly requested to take the time toconsider the "Reference Documents for the General Meeting of Shareholders" below, and consider exercising their voting
rights in writing (by mail) or via the Internet, etc. following the instructions to be described no later than June 23, 2022
(Thursday), 5:00 p.m., including the possibility of refraining from attending the Meeting.
Sincerely yours
1.
2.

3.

Date
Time
Place

and

Agenda of the
Meeting
Matter to bereported

Proposals tobe resolved
Proposal No. 1
Proposal No. 2
Proposal No. 3
Proposal No. 4

Friday, June 24, 2022, at 10:00 a.m. (Start of reception: 9:00 a.m.)
Main Hall, 1st floor of CHIENKAN
I-197 Kumasaka-machi, Kaga City, Ishikawa(Please refer to the hall map at the end of this document.)

1. Business Report, Consolidated Financial Statements, and the results of the audits of the Consolidated
Financial Statements by the Accounting Auditor and the Board of Company Auditors for the 129th Fiscal
Term (from April 1, 2021 to March 31, 2022)
2. Non-Consolidated Financial Statements for the 129th Fiscal Term (from April 1, 2021 to March 31,
2022)

Appropriation of surplus
Partial Revision of the Articles of Incorporation
Election of six Directors (except Directors serving the Audit and Supervisory Committee)
Election of four Directors serving the Audit and Supervisory Committee

For those attending the Meeting, please read the "Requests for Preventing Infection Spread of the Novel Coronavirus (COVID-19)" onpage 2 of this Notice and present the enclosed Voting Rights Exercise Form at the reception desk on arrival at the meeting.
Of the documents that should be provided in this Notice of Convocation, the following are posted on the Company's Internet website (asshown below) pursuant to the provision of the applicable laws and regulations and the Articles of Association of the Company and are
therefore excluded from the documents provided by this Notice of Convocation: "Systems for ensuring the appropriateness of businessand the status of operation of such systems," "Basic policy on corporate control," and "Policy on deciding dividends of surplus, etc." inthe Business Report, as well as "Notes to Consolidated Financial Statements" in the Consolidated Financial Statements and "Notes to
Non-Consolidated Financial Statements" in the Non-Consolidated Financial Statements. Therefore, the business report, consolidated
financial statements, and financial statements described in this Notice of Convocation are part of the business report, consolidated
financial statements, and financial statements audited by the accounting auditors or the Audit and Supervisory Committee when they
prepared Accounting Audit Report or Audit Report.
Any revisions to the Reference Materials for the General Meeting of Shareholders, Business Report, Financial Statements andConsolidated Financial Statements will be posted on the Company's website on the Internet (see below).
Company's website：https://www.did-daido.co.jp/- 2 -Requests for Preventing Infection Spread of the Novel Coronavirus (COVID-19)
1. Prior exercise of voting rights
From the viewpoint of preventing the spread of COVID-19 infection, shareholders are kindly requested to consider the
possibility of exercising your r voting rights in writing (by mail) or via the Internet, etc. in advance of the Meeting to avoid
attending the Meeting on the day of the Meeting.
< Time limit for exercising voting rights: Arrived or sent by Thursday, June 23, 2022, 5:00 p.m. >2. The Company's responsive actions- No small gift is delivered to shareholders who attend the General Meeting.
- On the day of the General Meeting, the Company's directors and operation staff of the General Meeting undergo healthcheck including temperature and wear a face mask.
- Alcohol disinfectants are arranged for use by shareholders near the reception of the Hall.
- In order to reduce the risk of infection, seats in the Hall are arranged keeping a wide space between seats, so that the
number of seats available in the Hall is expected to decrease significantly as in the previous year. Please forgive us if
there is no seat available for you.
- In this General Meeting, in order to reduce the time of meeting for preventing the infection spread, we are going to omit
detailed presentation of the matters to be reported and agenda items in the Hall. Shareholders are cordially requested toread in advance the Notice of Convocation of this General Meeting, etc.
- We may limit the number of directors who attend the General Meeting from the viewpoints of preventing infection
spread and continuation of the Company's business, regardless of their health condition on the day of Meeting.
3. Requests to shareholders attending the General Meeting- Shareholders who attend the General Meeting are requested to cooperate in the measures taken to prevent the infection
spread, including spraying an alcohol disinfectant and wearing a face mask.
- Operation staff may approach and ask shareholders who are coughing or otherwise look sick. They may be requested tocheck the temperature or move to another seat or leave the Hall. We appreciate your understanding in advance.
- We will change the aforementioned actions as appropriate according to future situations. If you intend to attend theGeneral Meeting, please be sure to check with our website (https://www.did daido.co.jp/) in advance.
We are very sorry for a lot of inconvenience and disruption we caused to shareholders and appreciate your understanding
and cooperation in consideration of the circumstances.

- 3 -Information on the Exercise of Voting Rights
The right to vote at general meetings of shareholders is an important right of shareholders.
Please exercise your voting rights after reviewing the Reference Documents for the General Meeting of Shareholders
shown below.
The following three methods are available for exercising voting rights.

If attending the General
Meeting of Shareholders

If exercising voting rights
by mail (postal mail)If exercising voting rights
through the Internet, etc.

Please present the enclosed Voting
Rights Exercise Form at the reception
deskPlease indicate your approval ordisapproval of the proposals on theenclosed Voting Rights Exercise Form inaccordancewiththefollowing
instructions and return it to us

Please follow the instructions on the next
page to enter your approval ordisapproval of the proposals.

Date and Time

Exercise period

Exercise period

10:00 a.m. (reception starts at 9:00 a.m.)
Friday, June 24, 2022

Arrival by Thursday, June 23, 2022,
5:00 p.m.

Input by Thursday, June 23, 2022,
5:00 p.m.

Information on how to fill out the Voting Rights Exercise Form
Please enter your approval or disapproval for the proposals
here.
Proposal No.1 and No.2
When you approve:>> Put the mark "○" in the "Approval" column.
When you disapprove:>> Put the mark "○" in the "Disapproval" column.
Proposal No.3 and No.4
When you approve all candidates:>> Put the mark "○" in the "Approval" column.
When you disapprove all candidates:>> Put the mark "○" in the "Disapproval" column.
When you disapprove some candidates:>> Put the mark "○" in the "Approval" column and enter thenumbers of candidates you disapprove.
*The Voting Rights Exercise Form is a sample image.
If you exercise your voting rights both by mail (postal mail) and through the Internet, etc., we will treat the exercise of voting rights through the Internet, etc. as a valid exercise of voting
rights. If you exercise your voting rights multiple times through the Internet, etc., we will treat the last vote as a valid exercise of voting right.

- 4 -Guide to voting right exercise over the Internet, etc.
How to read QR Code“Smart Exercise”

How to enter the voting code andpassword
website for exercising

You can log in to the website for exercising voting rights without
entering your voting code and password.

voting rights

Scan the QR code on the bottom right corner of the Voting Rights
Exercise Form.

https://www.web54.net

Access the website for exercising voting rights.

Click "Continue.”Enter the "Voting Code" indicated on the Voting Rights
Exercise Form.
* "QR Code" is a registered trademark of DENSO WAVEEnter "Voting Code."

Follow the instructions on the screen to enter your approval ordisapproval.

Click "Login."Enter the "password" indicated on the Voting Rights
Exercise FormEnter "Password."
Please set a new
password to be usedfor voting.

You may exercise your voting rights only
once using the "Smart Exercise" function.
If you wish to change the content of your vote after you
have exercised your voting rights, please access thewebsite for PCs, log in with the "code for exercising
voting rights" and "password" indicated on the Voting
Rights Exercise Form, and exercise your voting rights
again.
*If you scan the QR code again, you can go to the PC

If you have any questions about how to exercise
your voting rights through the Internet, etc.,
please contact us at the right phone number.

Click "Register."Follow the instructions on the screen to enter your approvalor disapproval.
* The operation screen is a sample image.

Sumitomo Mitsui Trust Bank Transfer Agency Web Support Dial-in Number

0120 – 652 - 031 (Toll-free)(Inquiries accepted: 9:00 a.m. - 9:00 p.m.)

Institutional investors can use the platform for electronic exercise of voting rights for institutional investors, which is operated by ICJ, Inc.

- 5 -

Reference Documents for the General Meeting of Shareholders
Proposal No.1: Appropriation of surplus
The Company would like to treat the appropriation of surplus as follows:

Matters regarding year-end dividend
The Company considers return of profits to shareholders as an important management policy and takes a policy on
dividends to distribute dividends considering comprehensively full-year performance, management environment, andmedium-to long-term reinforcement of financial standing with focus on maintenance of stable dividends. For dividend
payout ratio, we aim to achieve at least 15% of net income for the term attributable to the shareholders of theconsolidating parent company during the term of 12th Medium-Term Management Plan and increase dividends
continuously.
In accordance with the dividend policy and target of dividend payout ratio stated above, we propose to pay the year-end
dividend for the 129th fiscal year as follows considering the business results for the fiscal year under review the need forretained earnings to prepare for future growth, etc.

[1] Type of dividend property:

Cash[2] Matters regarding allocation of dividend
property and the amount thereof:¥35 per common share[3] Effective date of surplus dividend:

June 27, 2022.

Total amount: ¥382,292,085- 6 -Proposal No. 2: Partial Revision of the Articles of Incorporation
1. Reason for proposal
Since the revised provisions stipulated in the proviso of Article 1 of the Supplementary Provisions of the "Act for
Partial Amendment to the Companies Act" (Act No. 70 of 2019) will come into effect on September 1, 2022, theCompany will revise its Articles of Incorporation as follows to prepare for the introduction of the electronic provisionsystem for shareholder meeting materials.
(1) Paragraph 1, Article 15 of the draft of the revised Articles of Incorporation provides that the Company shall takemeasures to electronically provide information that constitutes the contents of reference documents for General
Meeting of Shareholders, etc.
(2) Paragraph 2, Article 15 of the draft provides for the limitation of the scope of matters to be described in the
document to be delivered to the shareholders who have requested delivery of the document.
(3) The provision for deemed provision of reference documents for General Meeting of Shareholders, etc. through theInternet (Article 15 of the current Articles of Incorporation) shall be deleted as it is no longer necessary.
(4) In accordance with the new establishment and deletion of the provisions above, supplementary provisions
regarding the effective date, etc. will be established.
2. Details of revision
Details of revision are as follows.
(The underline part shows the revised part.)
Present Articles of Incorporation

Proposed revision(Deemed Provision of Reference Documents etc. ofGeneral Meetings of Shareholders through the Internet)
Article 15 In convening general meetings of shareholders,the Company may deem that it has provided its
shareholders with the information concerning
the matters to be described or represented in
the reference documents of the general
meeting, business report, financial statements,
and consolidated financial statements bydisclosing such documents etc. in a method
using the Internet as stipulated by theOrdinance of the Ministry of Justice.

- 7 -(Deleted)Present Articles of Incorporation(New)

Supplementary Provisions(New)

Proposed revision(Measures for Electronic Provision, etc.)
Article 15 1. When convening a General Meeting of
Shareholders, the Company shall takemeasures to electronically provide informationthat constitutes the contents of reference
documents for the General Meeting of
Shareholders, etc.
2. Of the matters for which electronic provision
measures are taken, the Company may exclude
all or part of those that are provided for in therelevant Ordinance of the Ministry of Justicefrom the documents to be delivered to theshareholders who have made a written request by
the record date for voting rights.
Supplementary Provisions(Transitional Measures for Electronic Provision of General
Meeting of Shareholders Materials)
Article 2 1. The deletion of Article 15 (Deemed Provisionof Reference Documents etc. of General
Meetings of Shareholders through the Internet)of the Articles of Incorporation before revisionand the establishment of Article 15 (Electronic
Presentation Measures, etc.) of the Articles ofIncorporation after revision shall come into
effect on September 1, 2022.
2.
Notwithstanding the preceding paragraph,
Article 15 (Deemed Presentation of Reference
DocumentsforGeneralMeetings
ofShareholders, etc. through the Internet) of the
Articles of Incorporation before revision shallremain in force with respect to general meetingsof shareholders to be held on or before the end of
February 2023.
3.
These Supplementary Provisions shall be deleted
after March 1, 2023 or the day on which threemonths have elapsed from the date of theGeneral Meeting of Shareholders set forth in thepreceding paragraph, whichever is later.

- 8 -Proposal No. 3: Election of six Directors (except Directors serving the Audit and Supervisory Committee)
The term of office of all six (6) Directors (excluding Directors who are Audit and Supervisory Committee members;hereinafter the same shall apply in this proposal) will expire at the conclusion of this General Meeting of Shareholders.
Accordingly, we would like you to elect six Directors.
In addition, there was no particular opinion from the Audit and Supervisory Committee regarding this proposal.
The candidates for Directors are as follows.
(References)

Candidate
No.

Name

Kozo Araya

Reappointment

２

Hirofumi Araya

Reappoint
ment

３

Katsuyuki Kikuchi

Reappointment

４

Toshihiro Shimizu

Reappointment

５

Masanori Sanada

Reappointment

６

Toshio Ishimura

Reappointment

１

Responsibilities at the Company
Representative Director

Attendance to Board of
Director’s Meetings
12/12(100%)

Chairman
Representative Director
President
MarketingManager

Strategy

OfficeManaging Director
Manager of IT Strategy Officefor Manufacturing Reform
Managing Director
Business
Manager

Strategy

OfficeDirector
Business Administration Div.
Manager
Director
Industrial
Manager- 9 -Products

Div.

12/12
(100%)

12/12(100%)
12/12(100%)
12/12(100%)
12/12(100%)

Candidate
No.

Name
(Date of birth)
Sex

Kozo Araya(October 25, 1950)
Male

1

Reappointment

Career summary

Numberofshares of theCompany held

1973 Joined Daido Kogyo Co., Ltd.
1976 Purchasing Manager of Daido Kogyo Co., Ltd
1977 Director, Daido Kogyo Co., Ltd1978 First Manufacturing Dept. Manager of Daido Kogyo Co.,
Ltd.
Aug. 2002 Representative Director & President of Daido Kogyo Co.,Ltd.
June 2006 Chairman, Kaga Chamber of Commerce and Industry
June 2019 Representative Director & Chairman of Daido Kogyo Co.,
Ltd. (to date)

69,225 shares

April
April
June
Nov.

The reasons why the Company elects him as a candidate for Director:
Mr. Kozo Araya has been involved in the management of the Company over a long time since assumed office as a directorof the Company in June 1977. Since August 2002, he has contributed to a great extent to the expansion of the Company’s
global operations as Representative Director of the Company, and considering that he has a great deal of work experience in
the Company and the Group and knowledge on global business operations, etc., we determined that he is continuously
appropriate as a candidate for a director.
April
Sep.
June
June
April

Hirofumi Araya(August 20, 1971)
Male
Reappointment22002 Joined Daido Kogyo Co., Ltd.
2004 Sales Dept. Manager, Sales Div. of Daido Kogyo Co., Ltd.
2005 Automotive Technology and Sales Dept., Automotive Div.
2007 Executive Officer of Daido Kogyo Co., Ltd.
2008 Representative Director & President of Daido Sittipol Co.,Ltd.
April 2010 Representative Director & President of D.I.D Asia Co.,
Ltd.
Sep. 2010 Representative Director & President of Daido India pvt.
Ltd.
June 2011 Director and Technical Development Div.
Manager of Daido Kogyo Co., Ltd.
June 2013 Managing Director
In charge of Motorcycle / Automotive Div.
Director & Vice Chairman of Daido Sittipol Co., Ltd
June 2015 Representative Director & Vice President of Daido Kogyo
Co., Ltd.
In charge of Research & Development Div. of Daido
Kogyo Co., Ltd.
Director & Chairman of Daido Sittipol Co., Ltd. (to date)June 2017 In charge of Business Strategy Div. and, Research &Development Div. of Daido Kogyo Co., Ltd.
June 2019 Representative Director & President of Daido Kogyo Co.,
Ltd. (to date)
In charge of Internal Control Audit Office
June 2021 Marketing Strategy Office Manager of Daido Kogyo Co.,Ltd (to date)

11,830shares(Important concurrent position)
Director & Chairman of Daido Sittipol Co. Ltd
The reasons why the Company elects him as a candidate for Director:
Mr. Hirofumi Araya has assumed various important posts including President and Representative Director of the Company's
overseas subsidiaries in Asia, which is an important area for the Group. He has been engaging in the planning of businessstrategies at the Business Strategy Division, as well as actively leading the Development Division, toward development ofgrowth markets/ growth areas and expansion of business areas/ technology areas of the Company. Thus, he has a great dealof work experience in the Company and the Group and knowledge on global business operations, etc., so we determined that
he is continuously appropriate as a candidate for a director.

- 10 -

Candidate
No.

Name
(Date of birth)
Sex

Katsuyuki Kikuchi(October 10, 1957)
Male
Reappointment

3

Career summary

Numberofshares of theCompany held

April 1981 Joined Daido Kogyo Co., Ltd.
Dec. 2004 Manager of Chain Manufacturing Dept., Production Div. of
Daido Kogyo Co., Ltd.
June 2005 Manager of Automotive Manufacturing Dept., Automotive
Div. of Daido Kogyo Co., Ltd.
Jan. 2011 Fukuda Plant Manager of Daido Kogyo Co., Ltd
June 2011 Director, Daido Kogyo Co., Ltd.
Manufacturing Div. Manager of Daido Kogyo CO., Ltd.
June 2015 Managing Director (to date)
Administration Div. Manager of Daido Kogyo CO., Ltd.
In charge of Safety & Quality Div. of Daido Kogyo Co.,Ltd.
June 2017 In charge of Automotive Parts Div. of Daido Kogyo Co.,Ltd.
June 2019 Production Engineering Div. Manager
June 2020 In charge of Production Engineering Div. of Daido Kogyo
Co., Ltd.
June 2021 Manager of IT Strategy Office for Manufacturing Reform,
Daido Kogyo Co., Ltd (to date)

2,000
shares

The reasons why the Company elects him as a candidate for Director:
Mr. Kikuchi has a philosophy required of a manufacturing company and mature judgment on the way personnel resources
should be based on his long term experience of leading the manufacturing of the Company. He presently serves as theManager of IT Strategy Office for Manufacturing Reform and Managing Director, promoting our manufacturing reform
utilizing IT. Based on his profound knowledge and experience in both manufacturing and administration, we determined that
his experience and results will be useful for management of the Company, and that therefore he is continuously appropriate
as a candidate for a director.

Toshihiro Shimizu(February 21, 1959)
Male

4

Reappointment

April 1983 Joined Daido Kogyo Co., Ltd.
Sep. 2004 Corporate Planning Dept. Manager, Administration Div. of
Daido Kogyo Co., Ltd.
June 2005 Corporate Planning Office Manager of Daido Kogyo Co.,Ltd.
June 2007 Manager, Corporate Planning Office, Daido Kogyo Co.,
Ltd.
Aug. 2007 Representative Director & President, Daido Industrial E
Comercial Ltda.
April 2009 Representative Director & President, Daido Industria De
Correntesda Amazonia Ltda.
June 2010 Executive Officer of Daido Kogyo Co., Ltd.
June 2013 Director, Daido Kogyo Co., Ltd.
Industrial Products Div. Manager of Daido Kogyo Co.,Ltd.
June 2017 Managing Director of Daido Kogyo Co., Ltd.(to date)
In charge of Motorcycle Parts Div. (to date)
Industrial Parts Div.
Representative Director & President of D.I.D Asia Co.,Ltd.
June 2020 In charge of Research & Development Div. of Daido
Kogyo Co., Ltd.
June 2021 Business Strategy Office Manager of Daido Kogyo Co.,
Ltd.(to date)

30,000shares

The reasons why the Company elects him as a candidate for Director:
Mr. Shimizu assumed important posts in business planning functions, and engaged in the management of several overseas
subsidiaries as Representative Director. He has extensive experience in business execution and deep insight. He now serves
the manager of Business Strategy Office as a managing director and is responsible for the planning and execution of
medium- to long-term business strategies for the entire Group. We have therefore determined that his experience and results
will be useful for management of the Company, and that he is continuously appropriate as a candidate for director.

- 11 -

Candidate
No.

Name
(Date of birth)
Sex

Masanori Sanada(January 7, 1962)
Male

5

Reappointment

Career summary

Numberofshares of theCompany held

April 1984 Joined Daido Kogyo Co., Ltd.
June 2005 Administration Dept. Manager, Administration Div. of
Daido Kogyo Co., Ltd.
June 2007 Corporate Planning Office Manager of Daido Kogyo Co.,Ltd.
June 2013 Executive Officer of Daido Kogyo Co., Ltd.
Administration Div. Manager of Daido Kogyo Co., Ltd.
June 2015 Representative Director & President of Daido Sittipol Co.,Ltd.
June 2019 Senior Executive Officer of Daido Kogyo Co., Ltd.
Administration Div. Manager of Daido Kogyo Co., Ltd.
June 2020 Director, Daido Kogyo Co., Ltd. (to date)June 2021 Business Administration Div. Manager of Daido Kogyo
Co., Ltd. (to date)

5,000
shares

The reasons why the Company elects him as a candidate for Director:
Mr. Sanada has profound knowledge on finance and accounting based on his long-term experience of leading theadministration and management planning departments. He also served the representative director of overseas subsidiaries
and has extensive experiences and achieved results in management of the Company's Group. He currently serves, as
Director, the Manager of the Business Administration Division, and we have determined that his experiences and results will
be useful for management of the Company and decided that he is continuously appropriate as a candidate for director.

Toshio Ishimura(October 15, 1961)
Male

6

Reappointment

April 1984 Joined Daido Kogyo Co., Ltd.
Dec. 2004 AS Business Dept. Manager of Daido Kogyo Co., Ltd.
June 2005 Manager, Corporate Planning Office of Daido Kogyo Co.,Ltd.
Manager, Industrial Machinery Sales Dept. of D.I.D
June 2009 Industrial Machinery Sales Dept. Manager of D.I.D Co.,Ltd.
June 2011 Director of D.I.D Co., Ltd.
June 2017 Executive Officer of Daido Kogyo Co., Ltd.
Industrial Products Div. Manager of Daido Kogyo Co.,
Ltd. (to date)June 2019 Senior Executive Officer of Daido Kogyo Co., Ltd.
June 2020 Director, Daido Kogyo Co., Ltd. (to date)

4,200
shares

The reasons why the Company elects him as a candidate for Director:
Mr. Ishimura has a great deal of business experience and knowledge based on his long term experience of leading theindustrial machinery business as well as excellent capability and knowledge on corporate management through theexperience of serving as a director of a domestic subsidiary, etc. He currently serves, as Director, the Manager of theIndustrial Machinery Business Dept., and we have determined that his experiences and results will be useful for
management of the Company and decided that he is continuously appropriate as a candidate for director.

(Notes) 1. A director candidate Mr. Hirofumi Araya serves concurrently as Chairman and Director of Daido Sittipol Co.,
Ltd., which engages in the business falling under the same category as the Company's and has business (chains andother products) with the Company. Additionally, the Company provides a guarantee for its loan of the funds.
2. There are no special interests between the other director candidates and the Company.
3. D.I.D Co., Ltd. was a consolidated subsidiary of the Company but merged into the Company as of April 1, 2018.
4. The Company has entered into a liability insurance contract with an insurance company for directors andcorporate auditors, as stipulated in Article 430-3, Paragraph 1 of the Companies Act. The summary of the contentsof this insurance contract is shown on page 26 of the Business Report. When the election of the candidates for
director is approved, they will continue to be covered as an insured person under the relevant insurance contract.
Note that the insurance contract is going to be renewed next time with the same content.

- 12 -

Proposal No. 4: Election of four Directors serving the Audit and Supervisory Committee
The terms of office of all the four (4) Directors serving the Audit and Supervisory Committee will expire at the conclusionof this General Meeting of Shareholders.
Accordingly, we would like you to elect four Directors serving the Audit and Supervisory Committee.
Please note that the Board of Auditors has already given approval to this proposal.
The candidates for Directors serving the Audit and Supervisory Committee are as follows.
Candidate
No.

Name(Date of birth)
Sex

Career summary
June

Kiyohiro Kajiya

June(February 4, 1961)
Male

June

Reappointment

June

1

June

2009 Manager, Production System Dept., Business Support Div.
of Daido Kogyo Co., Ltd.
2011 Manager, Industrial `Machinery Business Dept. andIndustrial Machinery Dept. of Daido Kogyo Co., Ltd.
2015 Manager, Industrial Machinery Business Dept. andIndustrial Machinery Manufacturing Dept. of Daido
Kogyo Co., Ltd.
2017 Executive Officer of Daido Kogyo Co., Ltd.
Safety and Quality Div. of Daido Kogyo Co., Ltd.
2020 Director [Audit and Supervisory Committee Member] of
Daido Kogyo Co., Ltd. (to date)

Number ofshares of theCompany held

2,500
shares[Reason for selecting him as a candidate for Director serving the Audit and Supervisory Committee, etc.]
Mr. Kajiya has various business experiences in the Company's engineering, manufacturing, and quality departments andplayed a leading role in manufacturing. We have determined that his abundant experiences and knowledge will be useful for
reinforcement of the Company's auditing and decided that he is continuously appropriate as a candidate for director serving
the Audit and Supervisory Committee.

Tamotsu Sawa
(August 15, 1947)
Male

2

Reappointment

OutsideIndepen
dent

April
June
June
June
June
June
June

1970 Joined Araya Industrial Co., Ltd.
2002 Director, Araya Industrial Co., Ltd.
2008 Managing Director, Araya Industrial Co., Ltd.
2012 Representative Director & President, Araya Industrial Co.,Ltd.
2015 Director of Daido Kogyo Co., Ltd.
2018 Director and Senior Advisor of Araya Industrial Co., Ltd.
2020 Director [Audit and Supervisory Committee Member] of
Daido Kogyo Co., Ltd. (to date)0 shares［Reason for selection as a candidate for outside director serving the Audit and Supervisory Committee and outline of expectedroles, etc.]
Mr. Sawa served as the representative director of another company and has abundant experience in business management
over the years. We have determined that his experiences and results will be useful for management of the Company andexpected to contribute to the reinforcement of the Company's corporate governance system, and decided that he iscontinuously appropriate as a candidate for director serving the Audit and Supervisory Committee.

- 13 -

Candidate
No.

Name
(Date of birth)
Sex

Career summary

Number ofshares of theCompany held

1984 Joined Inoue Tatsuo Accounting Office(present KPMG Azsa & Co.)
Mar. 1988 Registered as Certified Public Accountant.
May 2003 Asahi & Co.
(present KPMG Azsa & Co.)May 2007 Representative Partner, KPMG Azsa & Co.
(present KPMG Azsa & Co.)
Feb. 2014 Representative Partner, Hokuriku Auditing Office (todate)
June 2016 Outside auditor, Komatsu Matere Co., Ltd. (to date)June 2019 Outside auditor, Takamatsu Machinery Co., Ltd.
Chairman of the Hokuriku Association of the JapaneseInstitute of Certified Public Accountants (to date)June 2020 Director [Audit and Supervisory Committee Member] of
Daido Kogyo Co., Ltd. (to date)(Important concurrent position)
Representative Partner of Hokuriku Auditing OfficeOutside auditor of Komatsu Matere Co., Ltd.
Chairman of the Hokuriku Association of the Japanese Institute ofCertified Public Accountants

0 shares

Oct.

Seiji Sakashita(February 2, 1958)
Male

3

Reappointment

OutsideIndependent[Reason for selection as a candidate for outside director serving the Audit and Supervisory Committee and outline of expectedroles, etc.]
Mr. Sakashita has never directly participated in business management but has a great deal of knowledge and experience infinance and accounting and is familiar with corporate accounting as CPA. In addition, we have determined thatreinforcement of the Company's audit system is expected from utilization of his wide-range performance and experience asrepetitive director of auditing offices and outside director of other listed companies for management of the Company anddecided that he is continuously appropriate as a candidate for director serving the Audit and Supervisory Committee.
Nov. 1996

Shoji Takechi(February 14, 1967)
Male

4

Reappointment

OutsideIndependent

Graduate School of Engineering, the University ofTokyo
Assistant specialized in Naval Architecture and Ocean
Engineering
Mar. 1997 Joined Sumitomo Heavy Industries, Ltd.
April 2000 Graduate School of Engineering, the University ofTokyo
Assistant specialized in Environment and Ocean
Engineering
Nov. 2003 Assistant Professor, same major, same school, same
University
April 2006 Assistant Professor, specialized in Technology
Management and Strategy, same school, same University
April 2007 Associate Professor, same major, same school, same
University
April 2009 Associate Professor, Academic Foundations Programs,
Kanazawa Institute of Technology
April 2010 Associate Professor, Department of Management
Systems, Faculty of Information Science, Kanazawa
Institute of Technology
April 2012 Professor, Department of Management Systems, Facultyof Information Frontier, Kanazawa Institute ofTechnology (to date)June 2020 Director [Audit and Supervisory Committee Member] of
Daido Kogyo Co., Ltd. (to date)（Important concurrent position)
Professor, Department of Management Systems, Faculty ofInformation Frontier, Kanazawa Institute of Technology

0 shares[Reason for selection as a candidate for outside director serving the Audit and Supervisory Committee and outline of expectedroles, etc.]
Mr. Takechi has never directly participated in business management but has high-level expertise in knowledge andengineering through his long-term service as a professor of the university's engineering department. In addition, the field of
his expertise has a high affinity for the Company's business field, so we have determined that he is expected to give
appropriate advice and conduct an audit on management of the Company based on his experience and performance and that
he is continuously appropriate as a candidate for director serving the Audit and Supervisory Committee.

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Outside：Candidates for outside director

Independent：Candidate for director who meets the requirements for independent officers provided by the Tokyo Stock
Exchange(Notes) 1. There are no special interests between each candidate and the Company.
2. Mr. Tamotsu Sawa, Mr. Seiji Sakashita and Mr. Shoji Takechi are candidates for outside director.
3. The term of office of Mr. Tamotsu Sawa, Mr. Seiji Sakashita and Mr. Shoji Takechi as an outside director of theCompany will have been two years upon the conclusion of this General Meeting. Mr. Sawa Tamotsu had been
an outside director of the Company until he was appointed as a member of the Audit and Supervisory
Committee, and his term of office as an outside director of the Company is seven years together with his termof office as a member of the Audit and Supervisory Committee.
4. Mr. Seiji Sakashita previously worked for KPMG AZSA LLC, the Company's accounting auditor, but retired
from the firm in June 2013.
5. The Company has entered into a contract with Mr. Kiyohiro Kajiya, Mr. Tamotsu Sawa, Mr. Seiji Sakashita, andMr. Shoji Takechi pursuant to Paragraph 1, Article 427 of the Companies Act to limit their liability fordamage as set forth in Paragraph 1, Article 423 of the same Act. The limit of the liability for damage under thecontract is the amount limited by laws and regulations. The Company plans to continue the contract with Mr.
Kiyohiro Kajiya, Mr. Tamotsu Sawa, Mr. Seiji Sakashita, and Mr. Shoji Takechi if their re-appointment isapproved.
6. The Company has entered into a liability insurance contract with an insurance company as stipulated in Paragraph
1, Article 430-3, of the Companies Act. The summary of the contents of this insurance contract is shown on
page 26 of the Business Report. When the election of the candidates for director serving the Audit andSupervisory Committee Member is approved, they will continue to be covered as an insured person under the
relevant insurance contract. Note that the insurance contract is going to be renewed next time with the samecontent.
7. The Company has designated Mr. Tamotsu Sawa, Mr. Seiji Sakashita and Mr. Shoji Takechi as independent
directors as stipulated by the Tokyo Stock Exchange, and has notified their designation to the Exchange, andintends to continue to appoint them as independent officers if their re-appointment is approved.

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[Reference] Skill matrix of the Board of Directors after the General Meeting of Shareholders(Note) The skill matrix of the Board of Directors will be as follows if the candidates listed in this Notice of Convocation
are elected as proposed.
Corporate
management Marketing andBusinesssales
strategy

Director

Name

Kozo Araya●

Hirofumi
Araya

●

●

Masanori
Sanada●ToshioIshimura

Audit and Supervisory
Committee Member●●

Katsuyuki
KikuchiToshihiro
Shimizu

Tamotsu Sawa
Seiji Sakashita

●
●

●

●

●

Outside●OutsideOutside

●

●

●

●

●

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Globalexperience

●
●

●

●
●

(Independent)

Shoji Takechi (Independent)

Personnel andLegal affairs
labor affairs andand risk
human-resource
management
development

●
●

●
●

(Independent)

Finance●●

Kiyohiro
KajiyaTechnology, Manufacturing
IT, R&D
and quality

●
●

●

●

●

●

●