(Translation)
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April 26, 2024

News Release
Company name: HAGIWARA ELECTRIC HOLDINGS CO., LTD.
Representative: President and Representative Director
Moritaka Kimura(Securities code: 7467; TSE Prime Market, NSE Premier Market)
Inquiries:
Managing Executive Officer Masayuki Hasegawa(Tel: +81-52-931-3553)

Notice Concerning Formulation of Medium-Term Management Planand Change to Shareholder Return Policy
HAGIWARA ELECTRIC HOLDINGS CO., LTD. (the “Company”) has formulated the Hagiwara ElectricGroup’s new medium-term management plan “Make New Value 2026,” for the three-year period from the fiscal
year ending March 31, 2025 to the fiscal year ending March 31, 2027 , under its Management Vision “AnEngineering Solution Partner That Is Connecting Human, Society and Technology, Through AdvancedElectronics”. An outline of the new plan is given below.
The Company has also changed its shareholder return policy, lifting the dividend payout ratio target from around
30% to 30-40%.
1. Outline of the Medium-Term Management Plan
The Company positions the medium-term management plan “Make New Value 2026,” as a period to carry out
structural transformation and establish a business base in readiness for a new stage of growth for the Group. The
Company aims to grow the business to achieve ROE of 11% or higher, net sales of ¥300.0 billion and operating
profit of ¥11.0 billion in the fiscal year ending March 31, 2027 by implementing the following three initiatives:(1) Enhance proposal value through business model reform, (2) Reform Promote management with an awarenessof capital productivity, and (3) Maximize employee power by leveraging human capital.
Plan period
From the fiscal year ending March 31, 2025 to the fiscal year ending March 31, 2027
Management policies(1) Enhance proposal value through business model reform• Promote a solutions mindset to expand ancillary development and services with added value in existing
businesses.
• Leverage the Company’s insights such as device application technology and IoT architectural technology
to create new business models.
• Promote value-added innovation through group synergy and business collaborations with other companies.
(2) Reform management with an awareness of capital productivity• Build a management aware of cost of shareholders’ equity and focused on return on invested capital.
• Build and implement a system that enables a strategic approach toward the business portfolio.
(3) Maximize employee power by leveraging human capital• Realize human capital management that leverages the unique strengths of the Hagiwara Electric Group.
• Energize people and organizations by putting into operation the HR system renewed in fiscal year 2024.

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Quantitative targets

Fiscal year ending March 31, 2027

ROENet sales

Operating profit

11% or higher¥300.0 billion¥11.0 billion

The Company will provide a detailed explanation of the medium-term management plan at the financial resultsmeeting for the fiscal year ended March 31, 2024 to be held on June 3, 2024, and then post the material for thispresentation on the Company’s website.
Hagiwara Electric Group’s website
https://www.hagiwara.co.jp/english/ir/
2. Change to the Shareholder Return Policy (* Changes are underlined.)
The Company has changed its dividend payout ratio target as given below from the fiscal year ending March 31,
2025 for the purpose of strengthening the return of profit to shareholders.
Before change
The Company will implement distribution of profit commensurate with operating performance based on stabledividend payment, aiming at a consolidated dividend payout ratio of around 30% and also considering the ratioof dividends to consolidated net assets.
After change
The Company will implement distribution of profit commensurate with operating performance based on stabledividend payment, aiming at a consolidated dividend payout ratio of around 30-40% and also considering theratio of dividends to consolidated net assets.

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