Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

Securities Code: 6358
June 7, 2023
To our shareholders:
Ichiro Sakai
President and Representing Director

SAKAI HEAVY INDUSTRIES, LTD.
1-9-9 Shibadaimon, Minato-ku, Tokyo

Notice of the 75th Annual General Meeting of Shareholders
We are pleased to announce the 75th Annual General Meeting of Shareholders of SAKAI HEAVY
INDUSTRIES, LTD. (the “Company”), which will be held as indicated below.
The Company’s website
https://www.sakainet.co.jp/ir/stock/soukai.html (in Japanese)(Access the website above, and from the menu, select “Investor Relations,” “Stock Information,” and“General Meeting of Shareholders” to find the notice.)
In addition to the Company’s website, the matters subject to measures for electronic provision are posted on
the following website of Tokyo Stock Exchange (TSE).
Tokyo Stock Exchange’s website (Listed Company Search)https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show (in Japanese)(Access the TSE website above, enter the Company’s name “SAKAI HEAVY INDUSTRIES” in the “Issue
name (company name)” field or its securities code “6358” in the “Code” field to search for the Company,
select “Basic information” and “Documents for public inspection/PR information” in that order, and thenfind the information posted in “[Notice of General Shareholders Meeting /Informational Materials for a
General Shareholders Meeting].”)
In lieu of attending the meeting in person, you may exercise your voting rights in writing (by postal mail) or
via the Internet. Please review the attached Reference Documents for General Meeting of Shareholders, andindicate your approval or disapproval of the proposals in the voting form, and exercise your voting rights nolater than 5:45 p.m. on Wednesday, June 28, 2023 (JST).

-1-1. Date and Time:Thursday, June 29, 2023 at 10:00 a.m. (JST)

2. Venue:

Shiba Park Hotel, 2F, Rose
1-5-10 Shiba Koen, Minato-ku, Tokyo

3. Purposes:
Items to be reported:
1. The Business Report and the Consolidated Financial Statements for the 75th fiscal year (from
April 1, 2022 to March 31, 2023), and the results of audits of the Consolidated Financial
Statements by the Financial Auditor and the Audit and Supervisory Committee
2. The Non-consolidated Financial Statements for the 75th fiscal year (from April 1, 2022 toMarch 31, 2023)
Items to be resolved:
Proposal No. 1 Appropriation of Surplus
Proposal No. 2 Election of Two Directors (Excluding Directors Who Are Audit and Supervisory
Committee Members)
Proposal No. 3 Election of Two Directors Who Are Audit and Supervisory Committee Members
4. Instructions for Exercising Voting Rights
Please refer to the “Instructions for Exercising Voting Rights” on page 3.
5. Matters related to electronic provision measures
Along with this document, we will deliver the documents of matters subject to measures for electronic
provision to shareholders who have requested paper-based delivery. However, the following items are
excluded from the documents, pursuant to the provisions of laws and regulations and Article 15 of the
Articles of Incorporation of the Company:(1) “Resolutions regarding the System to Ensure the Appropriateness of Business Operations,” “Basic
Policy and Progress of System Development for Eliminating Antisocial Forces,” “Overview ofOperation Status to Ensure the Appropriateness of Business Operations,” and “Basic Policy forControl of Stock Company” in the Business Report(2) “Notes to Consolidated Financial Statements” in the Consolidated Financial Statements(3) “Notes to Non-consolidated Financial Statements” in the Non-consolidated Financial Statements
Therefore, the delivered documents make up a part of the Consolidated Financial Statements and Nonconsolidated Financial Statements audited by the Financial Auditor in preparing its Financial Auditor’sReports, and a part of the Business Report, Consolidated Financial Statements and Non-consolidated
Financial Statements audited by the Audit and Supervisory Committee in preparing its Audit Report.
If you attend the meeting in person, please submit the voting form at the reception desk.
Should the matters subject to measures for electronic provision require revisions, the description of the revisions, the original
versions, and the revised versions will be posted on the Company’s website and TSE website, described above, on the Internet.

-2-

Instructions for Exercising Voting Rights
The exercise of voting rights in the General Meeting of Shareholders is the important right of allshareholders.
Please exercise your voting rights after reviewing the Reference Documents for the General Meeting of
Shareholders.
There are three ways to exercise your voting rights as described below.
Attending the General Meeting of Shareholders
Please submit the voting form at the reception desk.
Date and time: Thursday, June 29, 2023, at 10:00 a.m. (JST)Exercising Voting Rights in Writing (by Postal Mail)
Please indicate your approval or disapproval of each proposal on the voting form, and post it without
affixing postage stamps.
Exercise due date: to be received by 5:45 p.m. on Wednesday, June 28, 2023 (JST)Exercising Voting Rights via the Internet
Please indicate your approval or disapproval of each proposal in accordance with the instructions on thefollowing page.
Exercise due date: to be given by 5:45 p.m. on Wednesday, June 28, 2023 (JST)Instructions for Filling Out the Voting Form
Proposal No. 1
 If you approve, put a circle in the box marked 賛.
 If you disapprove, put a circle in the box marked 否.
Proposals No. 2 and No. 3
 If you approve all candidates, put a circle in the box marked 賛.
 If you disapprove all candidates, put a circle in the box marked 否.
 If you disapprove of some candidates, put a circle in the box marked 賛 and write the candidates’
number of whom you disapprove.
 If you exercise your voting rights both in writing (by postal mail) and via the Internet, we will only
accept the exercise of your voting rights via the Internet as effective. If you exercise your voting rights
more than once via the Internet, only the last vote shall be deemed effective.
 If neither approval nor disapproval of a proposal is indicated on the voting form you sent by postal mail,it shall be deemed a vote of approval.

-3-

Instructions for Exercising Voting Rights via the Internet, Etc.
How to scan the QR CodeYou can log in to the voting rights exercising website without entering the login ID and temporary
password indicated on the voting form.
1. Scan the QR Code indicated on the voting form.
Note: “QR Code” is a registered trademark of DENSO WAVE INCORPORATED.
2. Indicate your approval or disapproval by following the on-screen instructions.
How to enter your login ID and temporary password
Voting rights exercising website (https://evote.tr.mufg.jp/)
1. Access the voting rights exercising website.
2. Enter the “login ID and temporary password” indicated on the voting form and click “Login.”
3. Register a new password.
4. Indicate your approval or disapproval by following the on-screen instructions.

If you have any difficulties about the use of apersonal computer or smartphone for exercising
your voting rights via the Internet, pleasecontact:

Securities Agency Division (Help Desk), Mitsubishi UFJ Trust andBanking Corporation

Phone: 0120-173-027(toll-free and available from 9:00 a.m. to 9:00 p.m., only in Japan)-4-Reference Documents for the General Meeting of Shareholders
Proposal No. 1 Appropriation of Surplus
The Company proposes the appropriation of surplus as follows:
Year-end dividends
The Company works to secure a stable management base over the long term, and also places importance on
the continuation of stable dividends, and makes it a basic policy to distribute results that are supported bybusiness performance and a sound financial structure.
The Company has given comprehensive consideration to matters including the business performance of the
fiscal year, and it proposes to pay year-end dividends for the fiscal year as follows:(1) Type of dividend property
To be paid in cash.
(2) Allotment of dividend property and their aggregate amount
120 yen per common share of the Company
Total dividends: 508,297,080 yen
Accordingly, the annual dividend for the fiscal year, including the interim dividend, will be 200
yen per share.
(3) Effective date of dividends of surplus

June 30, 2023

Reference
Dividend trends(Yen)Interim dividend

Year-end dividend

250

165

200
150
100
50
0

100
50

80
50

50

30

72nd term

73rd term

200
120

105
60

80

74th term

75th term（planned）-5-

Proposal No. 2 Election of Two Directors (Excluding Directors Who Are Audit andSupervisory Committee Members)
The terms of office of two Directors, excluding Directors who are Audit and Supervisory Committee
Members, will expire at the conclusion of this meeting. Therefore, the Company proposes the election of two
Directors, excluding Directors who are Audit and Supervisory Committee Members.
Candidates for the role of Director (excluding Director who is an Audit and Supervisory Committee Member)are as follows:
Candidate No.

1

Date of birth
December 4, 1961

Ichiro Sakai

Reelection

Career summary, and position and responsibility in the Company (Significant concurrent
positions outside the Company)
July 1990
Joined the Company
June 1991

Director and Deputy General Manager of Corporate Planning Office

July 1993

Managing Director and General Manager of Business Promotion Office

Mar. 1995
Number of theApr. 1995
Company’s shares
owned: 136,664 shares Jan. 2000
Tenure:32 years Dec. 2008
June 2019

President and Representing Director (current position)
Director and Chairman of SAKAI AMERICA, INC.
Director and Chairman of SAKAI AMERICA MANUFACTURING, INC.
Director and Chairman of SAKAI AMERICA, INC.
Outside Director of PRONEXUS INC. (current position)

Attendance atBoard of Directors
Reasons for nomination as candidate for Director
meetings:
18/18 Ichiro Sakai assumed the office as Director in June 1991, and has served as President andRepresenting Director of the Company since March 1995, and has abundant experience andadvanced knowledge as a manager. The Company has nominated him as a candidate for Director
because he is considered to be suitable for the medium-term development of the Group and thestrengthening of corporate governance.

-6-

Candidate No.

2

Kenichi Mizuuchi

Date of birth
February 23, 1955

Reelection

Career summary, and position and responsibility in the Company (Significant concurrent
positions outside the Company)
Aug. 1982
Joined the Company
Apr. 1995

Head of Shikoku Sales Office, Domestic Sales Department, Sales Division

Apr. 2006

General Manager of Extensive Sales Department, Domestic Business Division

Apr. 2014

General Manager of Domestic Business Division and General Manager ofDomestic Sales Department

Number of theCompany’s shares
owned: 16,800 shares June 2014
Tenure:1 yearJune 2016
Attendance atBoard of Directors
July 2017
meetings:
16/18

Director, General Manager of Domestic Business Division, General Manager ofDomestic Sales Department
Director, General Manager of Domestic Business Division and General Manager
of Domestic Sales Department
Managing Director, General Manager of Domestic Business Division and General
Manager of Domestic Sales Department

June 2019

Managing Executive Officer, General Manager of Domestic Business Division andGeneral Manager of Domestic Sales Department

Apr. 2020

Senior Managing Executive Officer, General Manager of Domestic Business
Division and General Manager of Domestic Sales Department

Apr. 2022

Senior Managing Executive Officer and General Manager of Domestic Business
Division

June 2022

Director, Senior Managing Executive Officer and General Manager ofDomestic Business Division (current position)

Reasons for nomination as candidate for Director
Kenichi Mizuuchi assumed the Office as Director in June 2014, and has been engaged in the sales
activities of the Company’s products in the domestic market as General Manager of Domestic
Business Division. The Company has nominated him as a candidate for Director because he hasabundant sales and marketing experience in road machinery and is considered to be suitable fordeveloping the Company’s global niche strategy.
Notes: 1.
2.

There is no special interest between each of the candidates and the Company.
The Company has entered into a directors and officers liability insurance policy with an insurance company as
stipulated in Article 430-3, paragraph (1) of the Companies Act of Japan, and the policy covers damages andlitigation expenses incurred by the insured, including the Company’s Directors. (However, there are certain
exemptions, such as damages not being covered for acts committed by the insured with the knowledge that they
were in violation of laws and regulations). In the event that each candidate is elected and assumes the office as a
Director, they will be the insured under the policy. In addition, the Company plans to renew the policy with thesame terms at the next renewal.

-7-

Proposal No. 3 Election of Two Directors Who Are Audit and Supervisory Committee
Members
Out of four Directors who are Audit and Supervisory Committee Members, the terms of office of three
Directors, Kazushi Kiyomiya, Ryuichi Tokunaga, and Makoto Kikkawa, will expire at the conclusion of thismeeting.
Accordingly, considering the current status of the Company’s auditing system involving cooperation with theinternal audit department, the Company has judged that a system with three Directors who are Audit andSupervisory Committee Members, a decrease of one person, can maintain the effectiveness of audits and,
therefore, proposes to elect two Directors who are Audit and Supervisory Committee Members.
In addition, the consent of the Audit and Supervisory Committee has been obtained for this proposal.
Candidates for the role of Director who is an Audit and Supervisory Committee Member are as follows:
Candidate No.

1

Kazushi Kiyomiya

Date of birth
October 31, 1953

Reelection

Career summary, and position and responsibility in the Company (Significant concurrent
positions outside the Company)
July 1984
Joined the Company
July 2002

General Manager of International Procurement Department

Oct. 2002

General Manager of International Procurement Department, Global Production
Division

Number of theJune 2004
Company’s shares
owned: 7,900 shares
Apr. 2008
Tenure:4 years

Director and General Manager of International Procurement Department, Global
Production Division
Director, Deputy General Manager of Global Production Division, and General
Manager of International Procurement Department, Global Production Division

Attendance at
Apr. 2009
Director and General Manager of Corporate Planning Department
Board of Directors
Apr. 2018
Director
meetings:
17/18
June 2019
Director and Audit and Supervisory Committee Member (current position)
Attendance at
Reasons for nomination as candidate for Director
Audit and Supervisory
Kazushi Kiyomiya assumed the office as Director in June 2004 and has been involved inCommittee
meetings:
13/14 international procurement and corporate planning for many years. He has sufficient knowledge of
the Company’s finance and accounting, having been in charge of coordinating the Company’s
management figures as the head of the Corporate Planning Department, and therefore, the Company
believes that he is qualified to serve as a Director who is an Audit and Supervisory Committee
Member.
Notes: 1.
2.

3.
4.

There is no special interest between the candidate and the Company.
It is prescribed in the current Articles of Incorporation of the Company that the Company may enter into anagreement with non-executive Directors to limit their liability for damages to the Company within a certain range.
In accordance with this, Kazushi Kiyomiya, who is a non-executive Director, has entered into a limited liability
agreement with the Company.
If the election of Kazushi Kiyomiya is approved, the Company plans to renew the limited liability agreements with
him in accordance with laws and regulations.
The Company has entered into a directors and officers liability insurance policy with an insurance company as
stipulated in Article 430-3, paragraph (1) of the Companies Act of Japan, and the policy covers damages andlitigation expenses incurred by the insured, including the Company’s Directors. (However, there are certain
exemptions, such as damages not being covered for acts committed by the insured with the knowledge that they
were in violation of laws and regulations). In the event that the candidate is elected and assumes the office as a
Director, the candidate will be the insured under the policy. In addition, the Company plans to renew the policy
with the same terms at the next renewal.

-8-Candidate No.

2

Haruyasu Asakura

Date of birth
April 16, 1961

New election

Career summary, and position and responsibility in the Company (Significant concurrent
positions outside the Company)
Apr. 1984
Joined Mitsubishi Corporation
May 1999

Partner of Apax Globis Partners

Feb. 2001

Managing Director of Carlyle Group

July 2009
Number of theMar. 2016
Company’s shares
owned:– shares Nov. 2022
Tenure:Senior Managing Director (COO) of Innovation Network Corporation of Japan
Representative Director, President (CEO and CIO) of Marunouchi Capital Inc.
Representative Partner of HA Management LLC (current position)– years Reasons for nomination as candidate for outside Director and outline of expected roles

Haruyasu Asakura has extensive experience in private equity funds, which has helped him develop
Attendance at
broad insights into capital markets and corporate value improvement. The Company believes he is
Board of Directors
meetings:–/– suitable to serve as an outside Director who is an Audit and Supervisory Committee Member andhas nominated him as a candidate for Director.
Attendance at
Audit and Supervisory
Committee
meetings:–/–

Notes: 1.
2.
3.
4.

5.

6.

There is no special interest between the candidate and the Company.
If the election of Haruyasu Asakura is approved, the Company plans to submit notification to the Tokyo Stock
Exchange that he is designated as an independent officer as provided for by the aforementioned exchange.
Haruyasu Asakura is a candidate for outside Director of the Company.
Pursuant to Article 427, paragraph (1) of the Companies Act of Japan, if the election of Haruyasu Asakura isapproved, the Company will enter into an agreement with him to limit his liability for damages under Article 423,
paragraph (1) of the same Act. The maximum amount of liability for damages based on such agreement shall be
the minimum liability amount stipulated in Article 425, paragraph (1) of the same Act.
The Company has entered into a directors and officers liability insurance policy with an insurance company as
stipulated in Article 430-3, paragraph (1) of the Companies Act of Japan, and the policy covers damages andlitigation expenses incurred by the insured, including the Company’s Directors. (However, there are certain
exemptions, such as damages not being covered for acts committed by the insured with the knowledge that they
were in violation of laws and regulations). In the event that the candidate is elected and assumes the office as a
Director, the candidate will be the insured under the policy. In addition, the Company plans to renew the policy
with the same terms at the next renewal.
Currently, there is no special interest between HA Management LLC, at which Haruyasu Asakura serves as a
Representative Partner, and the Company.

-9-Current status of the corporate group(1) Progress and results of operations
The business environment affecting SAKAI HEAVY INDUSTRIES, LTD. and its subsidiaries (the“Group”) during the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023) experienced aprolonged rise in security tensions caused by a sharp confrontation between the U.S. and China andRussia’s invasion of Ukraine. However, the environment was on a solid recovery path even underdrastically changing global conditions, such as worldwide inflation of energy, material, and other various
prices, supply chain disruptions resulting in decreased supply capacity, and interest rates raised by central
banks in Europe and the U.S. that affect trends in international capital markets.
Under these circumstances, the Group has continued to strengthen its pricing and product supply
capabilities, establish a sustainable management structure through ESG and DX, and implement thestrategy to ensure medium- to long-term growth with overseas and next-generation businesses.
As a result, net sales for the fiscal year under review were 31,450 million yen, an increase of 18.3% year
on year. This achievement was supported by expanded overseas sales even while supply chain issues put
downward pressure on production and sales activities. Operating profit was 2,500 million yen, an
increase of 81.2% year on year. This was contributed by the overseas business that focused on pricerevisions and streamlining to improve its earnings structure. Consequently, ordinary profit was 2,320
million yen, an increase of 65.4% year on year, and profit attributable to owners of parent was 1,690
million yen, an increase of 18.7% year on year.
The following presents net sales on a consolidated basis by geographic segment.
Net sales in Japan were 15,200 million yen, an increase of 6.4% year on year, due to continued solid
demand against the backdrop of measures to accelerate national land resilience.
Net sales to overseas were 16,250 million yen, an increase of 32.0% year on year, reflecting a further
recovery in demand at North American and Southeast Asian markets.
Net sales to North America were 7,750 million yen, an increase of 53.8% year on year, as theInfrastructure Investment Act boosted road construction investments although higher interest rates caused
a decline in housing starts.
Net sales to Asia were 7,790 million yen, an increase of 20.1% year on year, supported by large markets,mainly Indonesia and Vietnam, with continuous solid environments, while some markets showed signsof deceleration in growth.
Net sales to other markets were 700 million yen, a decrease of 9.3% year on year, despite a steady trend
in Oceanian markets.

- 10 -

74th term
(Previous fiscal year)

75th term(Fiscal year under review)(From April 1, 2021 toMarch 31, 2022)(From April 1, 2022 toMarch 31, 2023)

Amount(Millions of yen)Amount(Millions of yen)Amount(Millions ofyen)

Increase(Decrease)(%)

26,59931,459

4,860

18.3

Operating profit

1,383

2,506

1,122

81.2

Ordinary profit

1,407

2,327

920

65.4

Profit attributable to owners of parent

1,427

1,694

267

18.7

Net sales

Year-on-year change

Net sales in Japan and overseas are as presented in the following table.

Geographic segment

74th term(Previous fiscal year)

75th term(Fiscal year under review)(From April 1, 2021 toMarch 31, 2022)(From April 1, 2022 toMarch 31, 2023)

Amount(Millions ofyen)

Composition
ratio
(%)

Amount(Millions ofyen)

Composition
ratio
(%)

Year-on-year change
Amount(Millions ofyen)

Increase(Decrease)
(%)

Japan

14,292

53.7

15,208

48.3

916

6.4

Overseas

12,30646.3

16,251

51.7

3,944

32.0

North America

5,039

19.0

7,751

24.7

2,712

53.8

Asia

6,492

24.4

7,796

24.8

1,303

20.1

Others

775

2.9

703

2.2

(72)

(9.3)

26,599100.0

31,459

100.0

4,860

18.3

Total

Note: Major countries and regions that belong to each overseas geographic segment in the fiscal year under review
North America .............................................................. United States
Asia ............................................................................... Indonesia, China and the various countries surrounding the
Mekong River
Others ........................................................................... Africa, Oceania and Central and South America- 11 -

(2) Issues to be addressed
Japan continues to accelerate measures for disaster prevention, mitigation, and resilience with thegovernment’s 15-trillion-yen, five-year plan, and the United States has infrastructure investment plans
totaling 1.2 trillion dollars. ASEAN and emerging countries are also further committed to infrastructure
investment and mine development. These drivers are expected to enable global demand for construction
equipment to remain solid, despite a series of ups and downs amid the turbulent global situation.
On the other hand, the global economic outlook is unpredictable. The factors include rapid inflation andtight money policies around the world, bloc economy resulting from the dramatically changing security
landscape, and ICT and AI technology that cause social changes.
Under these circumstances, the Group strives to improve its profit structure through sales price revisions
and higher value-added projects, get the most from human capital investments and DX to increase
productivity and create new additional values, and adjust the supply chains and global business activities
based on separate economic blocs. With these commitments, the Group drives transformation to makethe management system more adaptable to emerging business situations.
The Group also makes continuous efforts to further develop Asian markets while pioneering North
American markets, expand overseas business domains, leverage innovative technology to create nextgeneration businesses, and be more responsive to demand changes. In addition, the Group actively
promotes ESG to grow corporate value in the medium- to long-term.

- 12 -

Consolidated Financial Statements
Consolidated Balance Sheet (As of March 31, 2023)
Item
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetaryclaims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, equipment andvehiclesLand
Leased assets
Other
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts

AmountItem
Liabilities
Current liabilities
Notes and accounts payable - trade27,440,377
7,484,336
8,068,886

Electronically recorded obligations operating

1,395,360
3,406,701
1,228,708
4,816,726
1,039,755(97)
13,364,280
7,383,615
3,087,145

14,377,834
2,515,028
4,631,090

Short-term borrowings
Income taxes payable
Provision for product warranties
Other
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Other

4,751,028
336,586
336,364
1,807,735
1,130,986
58,252309,248486,712
132,943
143,830

3,238,498

Total liabilities

15,508,820

275,573
135,018
307,527
5,673,136
3,826,612
390,867
1,455,915(258)

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

22,074,576
3,295,841
6,541,784
12,642,202(405,251)

647,380

Accumulated other comprehensive
incomeValuation difference on available-forsale securities
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Non-controlling interests

Total assets(Thousands of yen)Amount40,804,658

3,158,197
1,837,502
1,319,532
1,162
63,064

Total net assets

25,295,837

Total liabilities and net assets

40,804,658

Note: Listed amounts have been rounded down to the nearest thousand yen.

- 13 -

Consolidated Statement of Income (From April 1, 2022 to March 31, 2023)
Item(Thousands of yen)AmountNet sales
Cost of sales

31,459,945
23,294,752

Gross profit
Selling, general and administrative expenses

8,165,192
5,659,100

Operating profit
Non-operating income
Interest income
Dividend income
Other

2,506,092
5,465
126,140
33,647

Non-operating expenses
Interest expenses
Foreign exchange losses
Bank charge
Other

197,275
54,39487,044
4,829

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

165,252

343,5442,327,800

Extraordinary losses
Loss on disposal of non-current assets
Profit before income taxes
Income taxes - current
Income taxes - deferred

1,911

1,911

178

178
2,329,533

559,556
70,060629,617

ProfitProfit attributable to non-controlling interests

1,699,916
5,517

Profit attributable to owners of parent

1,694,399

Note: Listed amounts have been rounded down to the nearest thousand yen.

- 14 -

Consolidated Statement of Changes in Equity (From April 1, 2022 to March 31, 2023)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

Retained earnings

3,258,349

6,504,292

11,728,758

37,49237,492

Treasury shares

Total shareholders’equity(403,884)

21,087,515

Changes during period
Issuance of new shares

74,984

Dividends of surplus(780,956)(780,956)

Profit attributable to ownersof parent

1,694,399

1,694,399

Purchase of treasury shares(1,366)(1,366)

Net changes in items otherthan shareholders’ equity
Total changes during period

37,49237,492

913,443(1,366)

987,060

Balance at end of period

3,295,841

6,541,784

12,642,202(405,251)

22,074,576

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements accumulateddifference ontranslationof defined
otheravailable-for-saleadjustment
benefit planscomprehensive
securities
incomeBalance at beginning of
period

1,564,136

465,857(3,964)

2,026,029

Non-controlling
Total net assetsinterests

47,82623,161,371

Changes during period
Issuance of new shares

74,984

Dividends of surplus(780,956)

Profit attributable to ownersof parent

1,694,399

Purchase of treasury shares(1,366)

Net changes in items otherthan shareholders’ equity

273,366

853,675

5,126

1,132,168

15,237

1,147,405

Total changes during period

273,366

853,675

5,126

1,132,168

15,237

2,134,466

Balance at end of period

1,837,502

1,319,532

1,162

3,158,197

63,06425,295,837

Note: Listed amounts have been rounded down to the nearest thousand yen.

- 15 -