Financial Results Briefing Materials(2023/4/1〜2024/3/31）

1Note to future-oriented statements
The forward-looking statements in this document,
including performance forecasting, are based on
currently available information and assumptions
considered reasonable by us and do not guarantee ourfuture financial results. Actual results may differ greatly
from the forecast figures depending on various factors.

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

2024/3（2023/4-2024/3）

2023/3（2022/4-2023/3）

Year-on-Year

1st Half

2nd Half

Full Year

1st Half

2nd Half

Full Yearchange42,56840,34382,91142,02841,986

84,014+1,103

MarginSales（millions of yen）

MarginMarginMarginMarginMargin%+1.3%
OperatingprofitOrdinary
profitProfitattributable toowners of parent

4,597
10.8%

5,731
13.5%

3,919
9.2%

4,433
11.0%

4,740
11.7%

3,152
7.8%

9,030
10.9%

10,471
12.6%

7,071
8.5%

4,1379.8%

5,611
13.4%

3,593
8.5%

3,622
8.6%

3,994
9.5%

3,509
8.4%

7,759
9.2%

9,605
11.4%

7,102
8.5%

△1,271△14.1%△866△8.3%+31+0.4%
3Quarterly Results200

184 183 183169

187 185（100 mil. of yen)
Sales

174

164

150

144

161 169

175

2Q

4Q

193

192
178 186

1Q

2Q

206 220 212

191

205 215 210 210

100500

1Q

2Q

3Q

4Q

1Q

2019/3

30

24 23

20

2Q

3Q

4Q

2020/3Operatingprofitmargin

2Q

3Q

4Q

1Q

2022/32323 21

21

15 14

3Q

4Q

1Q

2Q

3Q

4Q

111Q

92Q

1715 15

3Q

4Q

1Q

2Q

20

3Q

2Q

3Q

4Q

1Q

2023/3Operating profit
13

1Q

3Q

2021/3

100

1Q

16

4Q

21

1Q

2526

3Q

3Q

4Q

2024/3

18

2Q

2Q

4Q

20 21 21

1Q

2Q

3Q

2019/32020/32021/32022/32023/32024/3

11.3%

10.3%

7.7％

10.2％

10.9%

9.2%

15

4Q

4

Sales by Business（millions of yen）
2024/3（2023/4-2024/3）

2023/3（2022/4-2023/3）
1st Half

2nd Half

Full Year

1st Half

2nd Half

Full Yearchange14,28814,01228,30013,877

13,48527,362△938

23,387

20,85944,24622,424

21,511

43,935

△311

2,140

3,009

5,149

3,101

4,206

7,307

+2,158Others

2,752

2,463

5,215

2,624

2,785

5,409+194

Total

42,56840,34382,91142,02841,986

84,014+1,103

23,612

21,05844,67022,68021,75044,430△240

Margin

Belts (Japan)
Belts

Business(outside Japan)
Building &Construction Materials

33.6%
54.9%
5.0%
6.5%

100%

Sales outside Japan

55.5%

Margin
34.7%
51.7%
7.5%
6.1%

100%

52.2%

Margin
34.1%
53.4%
6.2%
6.3%

100%

53.9%

Belts(Japan)
Belts(outside Japan)

8.7%

Construction
Materials

52.3%

6.4%

32.6%

Margin
33.0%
53.4%
7.4%
6.2%

100%

54.0%

Margin
32.1%
51.2%
10.0%
6.6%

100%

51.8%

Margin
32.6%
52.3%
8.7%
6.4%

100%

52.9%

%

△3.3%
△0.7%

+41.9%
+3.7%
+1.3%

△0.5%

〈Sales outside Japan〉〈Sales by Business〉

OthersYear-on-Year％

5550
4540
35

46.5 45.1 46.5 46.1 46.3 46.3 49.5
43.7 45.0

53.9

52.9

37.5
2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/45

Breakdown of Belt Sales2023/3（2022/4-2023/3）
1st Half

2nd Half

Full Year

MarginMarginMargin（millions of yen）
2024/3（2023/4-2024/3）
1st Half
Margin2nd Half Full Year
MarginYear-on-YearchangeMargin%Automotive belt

18,797

17,99336,79019,316

19,40438,720+1,930Industrial belt

13,399

11,57524,974

11,80910,36922,178△2,796

OA equipment

1,616

1,454

3,070

1,372

1,455

2,827

△243

Conveyor belt

2,130

2,094

4,224

2,236

2,325

4,561

+337

1,733

1,756

3,489

1,569

1,442

3,011

△478

37,67534,87272,547

36,302

34,996

71,298△1,249

49.9%
35.6%

51.6%
33.2%

4.3%

4.2%

5.7%

Engineering plastics

6.0%

4.6%

Total

100%

5.0%

100%

〈2024/3〉
Automotive belt
Industrial belt

4.0%

6.4%

Engineering plastics

31.1%

34.4%

53.2%
32.5%

4.2%

3.8%

5.8%

6.2%

4.8%

100%

4.3%

millions of yen

4.2%

100%

55.4%
29.6%
4.2%
6.6%
4.1%

100%

54.3%
31.1%
4.0%
6.4%
4.2%

100%

+5.2%

△11.2%△7.9%+8.0%△13.7%△1.7%〈Belt Sales〉

600
400

OA equipmentConveyor belt

50.7%

54.3%

2000

2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3
Automotive belt
Industrial belt
OA equipment
Conveyor belt
Engineering plastics

6Analysis of Operating Profit
Sales
OperatingProfit
OrdinaryProfit

2023/3829.1

2024/3840.1

change
11.0

90.3

77.6

△12.7

104.7

96.1

△8.6

Operating Profit

40200 (－) Decrease in sales（Overseas local currency base)
Effects of sales composition
 (＋) Decrease in labor costs and logistics costs
Effects of FOREX Rates

Positive factor

20.990.3

Negative factor

Logistics costs

3.98060（100 mil. of yen）

1.1

1.6

7.8

4.1

0.3
OthersDecrease in sales（Overseas localcurrency base)
Effects of sales mix

Labor costs

Effects of FOREX Rates

77.6

Raw material costs
2023/3Operating
Income2023/32024/3Operating
Profit△12.7
Sales
Decrease

Sales Mix

Materials

Labor costs

Logistics

FOREX

Others2024/37

Capital expenditures and Depreciation（100 mil. of yen）

Capital expenditures
8060
40
200

1st Half

41

17 22710715

2012/3

2013/3

2nd Half

2760

21 2434 32 33

1491214101914

2014/3

2015/3

2016/32017/321111913

2018/3

2019/339（capitalized amounts）

2462152252

622023/32024/337 44 3630

21191813

2020/32021/32022/3752025/3 (F)Depreciation60

1st Half

2nd Half

40

40 39 41 43 44
31 28 29 31 31 28 30 30 33

20

16015

171616

14
1415

1415

2012/3

2013/3

2014/3

2015/3

2016/3

20

21

22

15

16

16

18

22

14

14

15

15

17

18

20

21

2017/3

2018/3

2019/32020/32021/32022/32023/32024/3A new plant of MITSUBOSHI BELTING-INDIA PRIVATE LIMITED,an affiliate company in India, has been completed and started operationsin April 2023.

442025/3 (F)New plant in India

8Forecast（millions of yen）

2025/32024/3Operating Profit
MarginOrdinary Profit
MarginProfit attributable toowners of parent
MarginForecastchange％84,014 45,000 43,500 88,500+4,486+5.3%+1,291+16.6%△1,005△10.5%+2,198+30.9%

Results
Sales

Year-on-Year

1st Half

2nd Half

Full year

7,759

4,400

4,650

9,050

9.2%

9.8%

10.7%

10.2%

9,605

4,100

4,500

8,600

11.4%

9.1%10.3%

9.7%

7,102

6,100

3,200

9,300

8.5%

13.6%

7.4%

10.5%

Exchange rate︓USD 144.6 yen

140 yen（period average）

9

Dividends
Interim
¥120
¥125
¥90

2023/32024/3(Forecast)
2025/3(Forecast)250

Payout ratio
2009/3︓482％
2010/3︓130％

200

Year-end
¥130
¥125
¥90

Total
¥250
¥250
¥180

Ordinary dividend
97

100 100

Special dividend

100

Payout ratio %

80

65

150
100
50
028

2130 26

3732 3624 8
164 364 824

12 12 16 24 32

2428

25 22
21 20 20 2440
430 2960
10250 55
250

41

14360

180 4020

24 24 28 28 3236 36 44 50 50 54 57

2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3

0The share was consolidated (2 shares→ 1 share) on Oct. 1, 2018. The values of dividends are converted on the post-consolidation basis.

’24 Mid-Term Business Plan (FY2024-FY2026)(F)

ＤＯＥ(Dividend on equity ratio) target︓ approx. 5.4％
（Dividend per share︓at least 180 yen / year）
10Retirement of treasury shares（Thousand Shares）Aggregate number of shares issued as of June 30,1998
51,998 (100%)
Total acquisition of common shares
25,799（50％）

FY2023Retirement

1,500

Disposal

20,835（40％）

Owned

Total retirement of treasury shares

Stock Market

Aggregate number of shares issued as of March 31,2024

31,104 (60％）

2.9％（Except acquisition and retirement of shares less than one unit）（The share was consolidated (2 shares→ 1 share) on Oct. 1, 2018. The values of dividends are converted on the post-consolidation basis.）

The Company has continued to acquire treasury shares.
・The Company intends to acquire treasury shares on an ongoing basis in appropriate amounts andat appropriate times, based on actual business results, trading in the Company’s shares and the share price, thedividend payout ratio included in the Mid-Term Business Plan, and the ratio of total returns.
・The Company aims to acquire 3 billion yen of shares in 3 years during “ ’24 Mid-Term Business Plan” (FY2024-FY2026).
・The Company retired 1,500 thousand shares of treasury shares in February , 2024.
・Treasury shares holding ratio after retirement is 8.8%.
11Action to Implement Management
That Is Conscious of Cost of Capital and Stock Price ①“ ’24 Mid-Term Business Plan” marks the second phase toward FY2030“Target Position.“ The previous plan focused on strengthening our businessfoundation, while the current plan positions itself as a period of acceleratedgrowth.
FY2030 “Target Position”
・Net sales: 100 billion yen ・Operating profit: 13 billion yen ・ROE︓10％’21 Mid-Term Business Plan
(FY2021-FY2023)

FY2023 Results’24 Mid-Term Business Plan
(FY2024-FY2026)

FY2026 KPI target

FY2023 KPI target
Profitability・Net sales: 80.0 billion yen
・Operating profit: 8.3 billion yen

・Net sales: 84.0 billion yen
・Operating profit: 7.7 billion yen

・Net sales: 91.5 billion yen
・Operating profit: 10.5 billion yen

Capitalefficiency

・ROE︓8%・Value of cross-shareholdings sold:at least 1.5 billion yen(over three years)

・ROE︓7.6%
・Value of cross-shareholdings sold︓
1.5billion yen（FY2021〜FY2023 Total）

・ROE︓9%・Value of cross-shareholdings sold︓
5.0 billion yen（FY2024〜FY2026 Total）

Capitalinvestment

・ 3-year capital investment
budget: 23.0 billion yen

・ 3-year capital investment :22.8 billion yen

・ 3-year capital investment budget:
20.0 billion yen（excluding M&A)

Shareholderreturns

・ Dividend payout ratio (FY21): 65%
・ Dividend payout ratio (FY22): 100%・ Dividend payout ratio (FY23): 100%・ Dividend payout ratio (FY21): 65%
・ Dividend payout ratio (FY22): 100%・ Dividend payout ratio (FY23): 100%・DOE(Dividend on equity ratio) target︓
approx. 5.4％
（Dividend per share︓at least 180 yen / year)
・Repurchase of treasury shares: 3.0 billion yen

ESG・ CO2 emission reduction target:
at least 22% vs. FY2013

・CO₂ emission reduction︓
35% vs. FY2013

・ CO₂ emission reduction target:
40% vs. FY2013

・115 yen/USD

・144.6 yen/USD（average rate for the period）

・130 yen/USD

Estimatedexchange rates（FY2024〜FY2026 Total）

12

Action to Implement Management
That Is Conscious of Cost of Capital and Stock Price ②2024/3
ROE : 7.6%

ROE・PBR
16.0%

1.60

14.0%

1.40

12.0%

1.20

10.0%

1.00

8.0%

0.80

6.0%

0.60

4.0%

0.40

PBR : 1.35 (x)(X)

ROE（ left ）ROE（target）（ left ）Cost of Capital（ left ）PBR （ right ）Strengthen financial position, then pursue higher capital efficiency“Current conditions of ROE and PBR”

“Target”

・Current ROE is higher than our recognized cost of capital.

・The Company will steadily implement the businessstrategies and capital policies in our Mid-Term Business
Plan to continuously improve our corporate value.

・In recent years, PBR has remained above 1x.
2024/32023/3

ROE︓7.6％
PBR︓1.35
ROE︓8.1％
PBR︓1.27

・FY2030 “Target Position”
ROE︓10％・FY2026（’24 Mid-Term Business Plan）
ROE︓9％
・ PBR︓Further Improvement
13

Individual business strategies①
1. Automotive parts
Respond to electrification・
contribute to environment

・Expand sales of high value-added system products for accessory
drive(for M-HEVs).
・Expand sales of products for electrification of 4-wheeledvehicle control equipment (EPS, PSD)
・Expand sales of rear-drive products for 2-wheeled vehicles,
multipurpose 4-wheeled vehicles, and personal mobility

Expand sales to global
aftermarket

・Expand sales to overseas 4-wheeled and 2-wheeled vehicle
aftermarket, focusing on developing countries

2. Industrial machinery
Respond to food safety

・Develop and expand sales of high-value-added products for
agricultural machinery and food-related industries

Respond to labor shortage

・Develop and expand sales of products for robots and logistics
equipment

Respond to Environment

・Develop and expand sales of environmentally friendly products using
biomass-derived, recycled, and other environmentally conscious
materials

Respond to energy
conservation

・Develop high-efficiency products
・Develop and expand sales of high-performance engineering plastic
materials, structural foam products, and other alternatives to metals
and other materials

Expand sales in the global
aftermarket

・Expand sales into the overseas aftermarket
14

Individual business strategies②
3. Construction materials
Respond to improvement of working
Environment

・Develop waterproofing and water shield systems and expand sales of
product in response to labor shortages

Respond to solutions for residential
environment issues

・Expand sales of energy saving and long-lasting products and systems in the building
exterior market

Respond to conservation of the naturalenvironment

・Undertake water shield installation work for prevention of environmental pollution and expand
sales of related products.
・Expand sales of materials for water purification and treatment facilities
・Expand sales to biodiversity protection markets such as biotope, greening promotion

Respond to infrastructure
improvement

・Expand sales of water shield materials and related products for agricultural reservoirs andriver flood control
・Undertake waterproofing works for water and sewage facilities, and road maintenance works

4. Electronic materials, Development products, and new sectors
Electronic materials
Respond to informatization

・Develop and expand sales of metallized substrate products contributing to theadvancement of next-generation mobile communication systems.

Respond to electrification(progress of EV)

・Expand sales of various conductive pastes contributing to improvement of thermal
management in electronic circuit boards and packages, and to enhancement ofperformance and reliability of semiconductors and passive electronic components

Respond to energy and resource
conservation

・Expand sales for unique products and solutions supporting the design anddevelopment of applications leading to energy and resource conservation

Respond to reducing environmental
impact・Expand sales of silver nanoparticle-based sintering pastes for bonding that
contribute to the replacement of lead solder in semiconductor and component
mounting

Development products and new sectors
Create new business by effectively utilizing technological assets

15

Status of dialogue with shareholders and investors
Dialogue with shareholders and investors（FY2022〜FY2023）
2022（Unit︓Number of times）

2023

Company Responders
President , Senior Managing Director(at the end of the second quarter andat the end of the fiscal year)

Financial results briefing for institutional
investors and securities analysts

22

Individual dialogue with institutionalinvestors and securities analysts

4464（Domestic institutional investors）

（30）

（35）

（Overseas institutional investors）

（8）

（18）

（Securities companies, etc. ）

（6）

（11）

・IR Planning（Office of the President）,
Corporate Planning Division, andFinance & Accounting Department takethe lead in conducting dialogue.
・President and Sustainability
Promotion Department also attend thedialogue depending on the theme.

Feedback to management
Contents
Financial results briefing

Report the content of the question and answer session to the directors andauditors

Individual dialogue

Timely reporting of opinions, major questions, etc. identified through dialogue
as necessary, as well as annual activity reports to the Board of Directors

The Company has established a “Policy for Constructive Dialogue with Shareholders” and is actively working toachieve constructive dialogue. The opinions received from shareholders and investors through dialogue arereported to directors, management, and related departments as necessary to share information and improve
management.
16

ESG initiatives（1）TimeCategory

Nov.

2000

S

Oct.
May
Oct.
JuneDec.

2003
2015
2018

March2021

GG
E S G
SE S GG2020

E
E S G

April

E S GEMayJuneJuly

2022

GE
E S G

Nov.

SGDec.

E S

Jan.
Feb.

2023

EES
S G

Initiatives
Mitsuboshi Belting Fureai Council, a volunteer organization comprising Group employees, formed
to promote town development where residents and businesses coexist
Executive Officer system introduced
Risk Management Committee and Compliance Committee established
CSR Promotion Committee established ※Renamed to SDGs Promotion Committee in March 2021
Work Style Reform Promotion Committee establishedSpecific SDGs initiatives formulated
Nomination and Remuneration Advisory Committee establishedCO2 emission reduction targets established（(vs. FY2013) FY2023︓20% reduction , FY2030︓35% reduction , FY2050︓CN）
Sustainability Promotion Committee and Sustainability Promotion Department established(Sustainability Promotion Committee comprises Management Council members and is chaired byPresident)
Working Group of Sustainability Promotion Committee organized
CO2 emission reduction targets revised（(vs. FY2013) FY2023︓20% At least 22% reduction , FY2030︓35% 46% reduction）
First female Director takes office (at least 1/3 of Directors are Outside Directors)
Shortened the term of office of directors from 2 years to 1 year
Information based on TCFD recommendations disclosed （CDP2022）
Materiality formulated
Human rights due diligence activities started（Human Rights Policy, Human Rights DD Implementation Guidelines,
and Human Rights DD Guidelines established ）Mitsuboshi Belting Group Code of Conduct revised
Announced support for each initiative（①TCFD, ②TCFD Consortium, ③Human Capital Management Consortium, ④GX League）
Initiatives to improve employee engagement promoted （Measuring engagement started ）Various policies formulated and disclosed （①Procurement Policy, ②Disclosure Policy）
Sustainability Linked Loan Agreement concluded
New mid-term target for CO2 emissions reduction established（FY2025︓27% reduction (vs. FY2013) ）17

ESG initiatives（2）TimeMarchJuneSep.

CategoryS G

E S G

2023

E S G
E S
E S G
E
GOct.
Feb.

2024

Initiatives
The Corporate Philosophy, Management Principle, etc. organized into a new philosophy system.
Selected as a constituent of the FTSE Blossom Japan Sector Relative Index, a leading index forESG investment“Sustainability Report 2023” published （Enhanced the content of the previous “CSR Report”）
https://www.mitsuboshi.com/english/news/news_en_231102_2/
Participation in the Taskforce on Nature-related Financial Disclosures (TNFD) Forum
Procurement Guidelines established
Received a “B” score from CDP in the areas of “Climate Change" and "Water Security“

Formulation of medium- to long-term targets for carbon neutrality by 2050
We have set the following numerical CO2 emission reduction targets (vs. FY2013)
・FY2023: At least 22%
・FY2025: 27％
・FY2030: 46%■ Scope1

CO2 emissions in FY2023 (forecast)：

26,337t、Reduction of 35%（Compared to FY2013）■ Scope2

Reduction targets value

40,00035,000FY2013

Reduction of 22%

Reduction of 27%

40,915Compared to FY2013

Compared to FY2013

FY2021

30,000

Reduction of 46%

34,97925,000Compared to FY2013

FY202228,93020,000

FY2023 ( F )26,337

15,000

Achieve CN
by FY2050

10,0005,0000（Unit：ton）

2013

…

2021

2022

2023

2025

2030

2050

(FY)

18