Securities Code 5208
https: //www.arisawa.co.jp

Mid-Term Management Plan
(FY2020 － FY2024)

Arisawa Mfg. Co., Ltd.
9th May, 2024

Management Policy
On the basis of the motto "Create, Innovate and Challenge“, we pledge to:Ⅰ. create new values and enhance customer satisfaction.
Ⅱ. discover customer demands and create new businesses with our creative technologies.
Ⅲ. strengthen corporate structure by improving our quality and productivity.
Ⅳ. contribute to solving the social and environmental issues, and realize the sustainable growth.

Management Policy

1／28

Contents
Ⅰ. Policy of Mid-Term Management Plan 2~3
Ⅱ. Business Strategy

Ⅲ. Financial Strategy

Ⅳ. ESG Strategy

4~16

17~21

22~28

Ⅰ. Policy of Mid-Term Management Plan
Introduce ROIC as benchmark for business management, and maximize
our corporate value with both business strategy and financial strategy.
Business strategy

Financial strategy

Enhancement of profitability

Improvement in capital efficiency■ Strengthen profit management
using ROIC
■ Explore existing businesses■ Create new businessMaximizationof corporate
value■ Change non-business assets
into business assets■ Enhance shareholder returns

Contribution to the development of a sustainable society
Business Plan

2／28

Ⅰ-2 Review of Previous Mid-term Management Plan
ROIC Goal is set 6.0% or more (FY2024)

WACC of 4.76% in FY2023 ＊1

Business performance of electronic materials, one of our group's main business fields, stagnated due to the downturnin the demand in Chinese market, but it is expected to recover from the fiscal year ending March 31, 2025. We expect
the ROIC goal of 6% set in this mid-term management plan to be achieved in the fiscal year ending March 31, 2027.
(Million yen) 100,000
80,000

Average annual growth rate

60,000

8～11%

4.3%

(FY2024～FY2026)(FY2021～FY2024)

40,00020,0000

FY2021

FY2022

FY2023

Sales (Million yen)

43,08942,722

42,114

Operating Profit (Million yen)

3,320

2,228

1,483

3,200

Operating Margin (%)

7.7

5.2

3.5

6.5

NOPLAT (Million yen)

2,424

1,627

1,083

2,300

Equity + Interest-bearing debt (Million yen)

56,85957,29757,20158,500

4.4

2.8

1.9

3.9

(Actual)ROIC (%) ＊2(Actual)＊1 By our own calculation based on third party organization’s calculated value＊2 NOPLAT (Net Operating Profit Less Adjusted Tax) / (Equity + Interest-bearing debt)

Business Strategy(Actual)FY2024(Forecast)

FY2026(Reference)

48,9006.0 or more

3／28

Contents
Ⅰ. Policy of Mid-Term Management Plan 2~3
Ⅱ. Business Strategy

Ⅲ. Financial Strategy

Ⅳ. ESG Strategy

4~16

17~21

22~28

Ⅱ. Business Strategy
We enhance profitability through “exploration of existing businesses” and “creation of new businesses”.
Exploration of existing businesses

Creation of new businesses■Develop differentiated products using unique
technologies■Reduce costs thoroughly■Improve production capability and efficiency■Realize external growth through flexible M&A■Realize internal growth through thedevelopment of new products using existing
technologies● Strengthen partnership with group companies to discover new applications and fields

Enhancement of profitability
Business Strategy

4／28

Ⅱ-1-1. Electronic Materials Segment
Plan and actual sales (forecast)(Million yen)
70,00060,000

Mid-Term Management Plan (12th May ’22)

Actual or Forecast (9th May ’24)

Average annual growth rate: 0.3%

8～12%

(FY2021～FY2024)(FY2024～FY2026)

50,00040,00030,00020,00029,76829,76826,54433,90025,10538,20030,00042,60010,0000

FY2021(Actual)FY2022(Actual)FY2023(Actual)FY2024(Forecast)

FY2026(Reference)

Mid-Term Management Plan as of May 12th, 2022 was not achieved due to the continued inventory adjustment ofsemiconductors caused by the economic downturn in China from the second half of the fiscal year ended March
31, 2023. It has been finally bottomed out now and the economy will gradually recover from the fiscal year ending
March 2025 onwards. We will focus on expanding its business in the semiconductor and in-vehicle fields.
Business Strategy

5／28

Ⅱ-1-1. Electronic Materials Segment
Aim to grow as our primary business with two strategies
Exploration ofexisting businesses

Business enhancement in the mobile field

Goals for FY 2024

■ Create value for customers andcontinue growth by offering productswith originality■ Develop new products and strengthen
the business foundation in the Asianmarkets by establishing ties with ourgroup companies

Existing businesses

Commercialization in the semiconductor
Creation of new
businesses

and in-vehicle fields■ Develop new products and enter new
fields■ Expand business in growing fields bystrengthening competitiveness in
production and technology

Business Strategy

・Early market launch of new products (e.g., generative AI, fastcommunication, foldable, etc.)

・Capture the growth of demand in Chinese and Asian markets
・Strengthen business foundation through alliances
New businesses

・Semiconductor field: Expand production capacity andstrengthen alliances

・In-vehicle field: Develop new products (materials with highheat dissipation, large current, etc.) and enter new fields

6／28

Ⅱ-1-2. Industrial Structural Materials and Insulation Materials Segment
Plan and actual sales (forecast)(Million yen)
30,000

Mid-Term Management Plan(12th May ’22)

Average annual growth rate: 15.0%

25,00015,00010,000
5,000
0

7～10%

(FY2024～FY2026)(FY2021～FY2024)

20,000

9,658
9,658

FY2021(Actual)11,71010,600

FY2022(Actual)13,135

12,400

FY2023(Actual)Actual or Forecast(9th May ’24)

14,70013,700

FY2024(Forecast)

FY2026(Reference)

Water treatment materials for drinking and industrial water etc., continue strong growth due to an increase indemand. Furthermore, the production of aircraft materials has also been in an increasing trend due to normalizationof the economy after Covid-19.
Also, the development of fuel cells and water electrolysis, etc. is gaining momentum to reduce environmental impact.
Business Strategy

7／28

Ⅱ-1-2. Industrial Structural Materials and Insulation Materials Segment
Develop unique products for further growth

Exploration of existing
businesses

Business enhancement in the transportation
infrastructure field

Goals for FY 2024

■ In-vehicle: Make differentiation and enter
markets using unique technologies

Existing businesses

Revenue expansion in the water treatment field・Water treatment field: Develop business with thegroup company network (expansion of regions andapplications)■ Aircraft: Increase added value through theanticipation of users' needs■ Creation of new demands by developing
high-performance products

Creation of new
businesses

Commercialization in the new energy field・Transportation infrastructure field: Develop lightweight and environmentally sound products andobtain their user certification

New businesses

・New energy field: Expand production capacity,strengthen alliance and enter new fields■ Enter the hydrogen energy andsuperconductivity fields and promote thedevelopment for commercialization

Business Strategy

8／28

Ⅱ-1-3. Display Materials Segment
Plan and actual sales (forecast)(Million yen)
10,0008,000

Mid-Term Management Plan(12th May ’22)

Average annual growth rate: 5.3%

Actual or Forecast(9th May ’24)

10～13%(FY2021～FY2024)(FY2024～FY2026)

6,000
4,000
2,000
0

3,253

4,163

3,535

3,253

3,500

4,000

FY2021

FY2022

FY2023(Actual)(Actual)(Actual)

3,800
4,800

FY2024(Forecast)

FY2026(Reference)

Application of 3D-related materials in the medical field is expanding in China and other
Asian region.
Business Strategy

9／28

Ⅱ-1-3. Display Materials Segment
Aim for growth by enhancing unique technology

Goals for FY 2024

Exploration of existing
businesses

Business enhancement in the medical highdefinition display

Existing businesses■ Expand the share of endoscopes andmicroscopes and attract overseas users

・Expand sales channels for robotic applications.

■ Expand sales channels for telemedicine androbotic use■ Meet the needs for a higher definition

Creation of new
businesses

Develop business in new fields

・Expand into Chinese market.

New businesses

・Expand into the industrial market sector.

・Make a full-scale entry into AR and VR markets.

■ Expand 3D filter application into nonmedical fields

Business Strategy

10／28

Ⅱ-2. Research and Development Investment
R&D expenses

Increase R&D expense to promote development of differentiated products

3,000
2,000
1,000
0

Industrial・Insulation

Electronic(Million yen)
4,000

1,926

1,992

Display

2,033

2,150

R&D/Sales ratio (Right axis)

(%)
40
30
20

263
477

273
453

234
556

250
600

1,186
4.5

1,266

1,243

1,300

10

4.4

FY2021

FY20220(Actual)

4.8

4.7

FY2023(Actual)(Actual)FY2024(Forecast)

FY2026(Reference)

Priority products for development
Electronic materials

Industrial structural materials
Electrical insulating materials■ FPC materials for high speed transmission■ FPC materials supporting high heatdissipation and large current■ FPC materials for micro wiring■ Insulation film for semiconductor board■ Hydrogen energy-related materials■ Fuel Cell, Rechargeable battery-related materials■For water treatment for drinking and industrial
water■ High-output motor-related materials

Business Strategy

Display materials■ For medical devices■ Functional film materials

11／28

Ⅱ-3. Priority Fields for Differentiated Products
Priority fields
Information
deviceNextgeneration
mobilityLife science

Develop differentiated products with focus on fields where growth is expected
Smartphones and tablets,
Server and PC(Fast and large-volume communications
and high performance)

Contribution to
IoT society

Mobility (EVs , FCVs and drone)
Aircraft weight saving

Contribution to
next-generationtransportation
devices

Medical field displays
Water processing for drinking and industrial water
Infrastructure development,(Electricity and disaster
response)
Decarbonization (Hydrogen energy and fusionenergy)New challenge
for environmental
changeRelatedglobal goals
Business Strategy

12／28

Ⅱ-3-1. Information Device Field (1)Change in business environment(Million units)

2,000

Smartphone demand forecast
Arisawa estimate

Average annual growth rate of 5G: 3%(FY2023～FY2026)

1,500

4G

5G

(Billion yen)

80,00060,0001,000

40,000500

20,0000

0

FY2021 FY2022 FY2023 FY2024 FY2025 FY2026

Fast and high-capacity
communications

Increase in folderable type

Arisawa estimate

IC
MemoryPower device
SensorAverage annual growth rate: 9% (FY2023～FY2026)

FY2021

FY2022

FY2023

Semiconductor
performance increase

Promotion of development of differentiated products

Business Strategy

Semiconductor device demand forecast

FY2024FY2025

FY2026

Diffusion of generative AI‥ Demand for high-speed communication materials
will increase with the spread of generative AI

FPC materials for fastcommunication

Insulation film forsemiconductor boards

FPC materials for
micro wiring

FPC materials supporting
folderable type13／28

Ⅱ-3-1. Information Device Field (2)Change in business environment(Index)300

200*HPC demand forecast

Evolution of network infrastructure and expansion of data center

Arisawa estimate＊High Performance Computing

8,000(FY2023～FY2028)

Source: Nikkei XTECH

Average annual growth rate:23%(FY2023～FY2028)

6,000
4,000

FY2025～

FY2023～2,000

Growth in demand forservers0

FY2028

Diffusion of Generative AI

Expansion of our related businesses

事業戦略

12,00010,000

Average annual growth rate: 18%

100
0

Nearline HDD demand forecast(10K units)

FY2023

FY2024FY2025Growth in demand forstorage

FY2026FY2027

FY2028Higher HDD capacity‥ Materials for semiconductor package boards andcircuit board for HDD

Insulating films for semiconductorboardsThin materials for circuit board

Photosensitive insulating film

Insulating materials with high heatdissipation
14／28

Ⅱ-3-2. Next-generation Mobility Field
Change in business environment
1.5
1.0

ICE

Arisawa estimate

HEV

PHV

EV

Average annual growth rate: 18% (FY2023～FY2030)(100 million yen)

12,000

FCV

8,000

0.0

0

FY2022

FY2023

～

4,000

～

0.5

FY2021

FY2025

Electrification

Market size of the domestic drone business

FY2030Service

Average annual growth rate: 20%

Source: Impress Corporation

Drone(FY2022～FY2028)

FY2021Higher power

Promotion of development of differentiated products

Business Strategy

Peripheral device service

FY2022～

Car powertrain forecast～(100 million units)

Note: Markets indicated by red squares are where
we can take advantage of our technologies

FY2025

Note)
Peripheral device service
includes the replacement battery,
maintenance and insurance.
Service includes logistics,
inspection and investigation.

FY2028Lighter weight‥ The demand for higher output with the progress ofelectrification requires high heat dissipation and high current
support.

Fuel cell, rechargeable battery relatedmaterials

FPC materials for high heat dissipationand high current support

Carbon fiber
structural materials

High-output motor-related materials
15／28

Ⅱ-3-3. Life Science Field
Noticeable environment change
Fields where we can take advantage of our technologies

Water treatment

MedicalGreen hydrogen

Promotion of development of differentiated products‥Water treatment materials are expected to expand applications. Hydrogen energy is also expected to expand use frommobility applications.

Business Strategy

Water treatment materials for drinking
and industrial water

Medical devise-related materials

Reinforcing materials for infrastructure
equipment

Hydrogen energy-related materials
16／28

Contents
Ⅰ. Policy of Mid-Term Management Plan 2~3
Ⅱ. Business Strategy

Ⅲ. Financial Strategy

Ⅳ. ESG Strategy

4~16

17~21

22~28

Ⅲ. Financial Strategy
We improve capital efficiency by actively and continuously returning surplus to shareholders
while managing cash flow effectively and converting non-business assets to business assets.

(1) Capital investment(2) Shareholder returns(3) Strategic investment

Exploration ofexisting businesses

Active and continuous
returnM&A and new business■ Maintain and expand therevenue base
■ Develop new applications■ Greater of either “dividendon equity (DOE) ratio of6%” or “total return ratio of
80% or more”.
■ Flexible share buybacks■ Tap into new markets
through external growth■ Create new businesses
using existing technologies

Improvement in capital
Financial Strategy

17／28

Ⅲ-1-1. Capital Investment (by segment)
Capital investment to expand existing business and promote development(Million yen)

Electronic

Industrial・Insulasion

Basic research・Others

Display

8,000

From FY2025 onward,
・Electronic materials:
Planning investments
to increase capacity.

7,100

6,000

4,487
4,000

2,268

85

161

81

309

2,000
1,817
0

285

FY2021(Actual)

3,213

1,562

2,455

FY2022(Actual)

1,314
1,620

FY2023(Actual)53
200

Prospects

200
1,000

150

FY2024(Plan)

Making R&D investments from a medium- to long-term
perspective from FY2022 to FY2024
Financial Strategy

・Industrial structuraland electricalinsulating materials:
Planning to installmachines for mass
production of new
business

5750

FY2025(Reference)

FY2026(Reference)

FY2027(Reference)

Planning to increase capacity and invest in new businesses
from FY2025 onward.
18／28

Ⅲ-1-2. Capital Investment (by purpose)
Progress (from FY2022 to FY2024)
Development of
new products

Increase inproduction
capacity

Plans (as of 12th May 2023)

Result and estimation (As of May 9, 2024)

5,900 million yen

6,900 million yen

5,600 million yen

4,250 million yen

・Innovation Center (establishment of base for open
innovation).
・Small coating machines and test facilities (expansion ofexisting business and Creation of new businesses).
・ThinFlex production facilities (expansion of sales in
Chinese market).
・Production facilities of insulation film for semiconductorboard (expansion of existing business).

⇒Under construction (Scheduled forcompletion in March 2025)⇒Running.

⇒Installed⇒Postponed. Term of installation is understudy.

Maintenance ofbuildings andequipment

2,700 million yen

2,850 million yen

Improvement of
production
processes

900 million yen

800 million yen

・Waste heat recovery system and onsite solar power
generation (promotion of carbon neutrality).
・Production management system and security measures(promotion of Digital Transformation).

⇒Sequentially Installing.
⇒Preparing for operation of production
management system.

Note: Amounts of maintenance of buildings and equipment were included in 8,100 million yen of the increase in production capacity and 1,100 million yen of the
improvement of production processes in the mid-term management plan as of May 12, 2023. Therefore, those are separately listed from this issue.

Financial Strategy

19／28

Ⅲ-2. Shareholder Return
Change in shareholder return policy from FY2024‥Greater of either “DOE ratio of 6%” or “total return ratio of 80% or more”

We set “Total return ratio: 80% or more” and implemented shareholder return actively until FY2023. On the other hand, the shareholder
returns have been unstable because we are sensitive to changes in business condition. Therefore, we decided to introduce a dividend
from the fiscal year ending March 31, 2025, in which the greater of either “dividend on equity (DOE) ratio of 6%”, which is a stabilityoriented dividend, or “total return ratio of 80% or more”, will be returned to shareholders.
(Adaptation period: until when the equity ratio of around 50% is achieved.)(Million yen)
8,000
6,000
4,000
2,000
0

Dividend(Left axis)

100.3

Total return ratio(Right axis)

Stock buy-back(Left axis)

104.1

121.6

Taget index of Total return ratio(Right axis)

116.2

150
100

80 %

50
0

750

(50)

3,173

2,985

1,993

(100)

2,790

(150)

FY2021'22/3

FY2022'23/3

FY2023'24/3

FY2024'25/3(Forecast)(Reference)(Reference)

Share price (Yen/Share) *

957

1,254

1,137

ー

ー

ー

Dividend (Yen/Share)

95

90

60

84 (forecast)ーー(Actual)＊ Closing price at the end of period

Financial Strategy

(%)
200

(Actual)(Actual)FY2025'26/3

FY2026
'27/3

(200)

20／28

Ⅲ-3. Strategic Investment
M＆A
Narrow down target and make capital investment in flexible manner, while making effective use of cash
reserves.

Arisawa Innovation CenterWith eyes on the next 100 years, we introduced a design that stimulates more communication
throughout the company and make our Innovation Center aims to be a “base for open innovation” where
unprecedented new value is created through the integration and co-creation of our technologies withother companies and research institutes. This is where people and ideas come and go.
Scheduled for completion in March 2025・ Three-story building・ Design which takes energy-saving into consideration withearth thermal, contemporary snow room, waste heat A/C,
etc.

Exterior perspective drawing

Financial Strategy

21／28

Contents
Ⅰ. Policy of Mid-Term Management Plan 2~3
Ⅱ. Business Strategy

Ⅲ. Financial Strategy

Ⅳ. ESG Strategy

4~16

17~21

22~28

Ⅳ. ESG Strategy
Ⅳ-1. Materiality to be tackled
We set KGIs (key goal indicators) to achieve in each materiality to pursue sustainable growthMateriality

KGI (Key Goal Indicator)

Contribution to
decarbonized society- Achieve carbon neutrality by 2030
- Promote energy and resource saving- Replace with renewable energy- Offer low environmental load materials

Development of diversified
human resources andimprovement in job
satisfaction- Develop next-generation human resources- Be a company where all employees can work lively

Promotion of
circular economy- Reduce emissions- Establish sustainable supply chain

Enhancement ofgovernance- Be an organization with a strong sense of ethics- Build an organizational structure with an open-door policy

ESG Strategy

Promising global goals

22／28

Ⅳ-2. Carbon Neutral Initiatives
Target: Achieve carbon neutrality by FY2030 *Progressing as planned(Actual result 33.9% vs. plan of 32% in FY2023)＊Target: CO2 direct emissions (Scope 1) and indirect emission (Scope 2)(Announced on Jun 16, 2021)

Our initiatives: use of renewable energy, improvement of energy use efficiency, energy creation (energy storage),and development of low-carbon products. （started to market in FY2023 ‥ reduction of 4t-CO2)(t-CO2)
1,800
2,609

35,00030,0005,278

25,00020,0002,541

38,541

31,705

4

4,943
8,129

15,00025,40433.9%

10,00020.3%

21,492

11.4%

5,000
0

Actual0%

FY2020

FY2021

FY202284%

FY2023CO2 emissions
Development of low-carbon products

69%
54%

92%

100%

77%

100%
80%

60%

60%
40%
20%

Plan
FY2024FY2025

FY2026FY2027

Use of renewable energy
Improvement of energy use efficiency

FY2028FY2029FY20300%Energy creation（solar power PPA）
Achievement rate of CN

Achievement rate of CN (carbon neutrality)＝(Total of renewable energy, energy creation, low-carbon products, and energy utilization efficiency) / CO2 emissions in 2020

ESG Strategy

23／28

Ⅳ-3. Contribution to Society Through Development
Select themes which influence customers, society and environment and aim for contribution to society
through our business.
Goals for contribution
to society

Important themes andour contribution story

Initiatives toclimate change

Prosperous life for all at
all ages

Resource circulationand efficiency

Renewable and decarbonizedenergySafety and life science

Energy saving and resourcesavingContribute to decarbonizedsociety by providing
materials supporting FCV,
EV, solar and wind power
generation, hydrogenenergy field.

Contribute to healthy lives
and promote well-being for all
at all ages by providing
materials supporting selfdriving, water treatment andmedical field.

Contribute to energy andresource conservation by using
biomass and recycled raw
materials, reducing productionenergy, and providing
lightweight materials formobility applications.

Related global goals
ESG Strategy

24／28

Ⅳ-4. Promotion of Human Capital Management
Development of diverse human resources
Human Capital Subcommittee was established in FY2023

Further promotion of human capital management■ Ensuring diversity (active role of female employee, persons with disabilities, and foreigners)…Training for female employees and male managers by outside instructors and outside directors■ Fair evaluation and treatment (ensuring equal opportunities and meritocracy) … Expansion of eligibility for regular transfer applicants■ Promote revitalization of human resources through training programs … Expansion of training menu and introduction of in-house internships■ Promote 15% culture system … Holding workshops to raise innovation awareness, various educational and training sessions■ Fostering a shareholder perspective … Stock compensation grants to employees

Creation of pleasant working environment■ Promote employees taking childcare leave and nursing care leave… Confirmation of intent and briefing for subjects and supervisor■ Promote employees taking paid leave… Set recommended dates for paid leave (e.g., before and after long holiday), and provide individual information to those eligible forrefresher leave■ Maintain good working conditions and support health maintenance and enhancement… Promote specific medical checkups and specific insurance guidance, and improve menu of employee cafeteria
FY2021 (Actual)

FY2022(Actual)

FY2023 (Actual)

FY2024 (Target)

Ratio of female employees in managerial positions

12.5%

10.6%

14.4%

20.0%

Ratio of mid-career employees in managerial positions

68.8%

70.5%

69.4%

70.0%

Ratio of gender wage gaps between men and women

77.6%

80.5%

85.9%

85.0%

Ratio of male employees taking childcare leave

29.4%

42.1%

38.1%

60.0%

Percentage of annual paid leave taken

57.2%

65.6%

67.0%

75.0%

ESG Strategy

25／28

Ⅳ-5. Promotion of Circular Economy and Harmonious Coexistence with Society
Establishment of sustainable supply chain and reduction of emissions
Engage in CSR activities with suppliers■ Inform suppliers of our CSR Procurement Policy and follow up with them based onquestionnaires

・Conduct questionnaires to half of raw material suppliers
・Evaluate responses from suppliers (identify risks) and request improvements from suppliers with low evaluation scores■ Disuse hazardous chemical substances■ Achieve zero emission by 2050

Harmonious coexistence with society
Develop community-based social activities and enhance brand power■ Return 0.5% of net profit of parent company to society

・Donations to academic institutions and schools
・Donation to health promotion business・Noto Peninsula Earthquake Donation to Ishikawa prefecture and Joetsu city

■ Become involved in social contribution activities

・Utilization of Innovation Center
・Cleanup of neighboring rivers
・Art classes of local elementary schools using wastes
・Provision of small electronic devices to welfare facility volunteer

ESG Strategy

26／28

Ⅳ-6-1. Corporate GovernanceWork to improve governance system to enhance corporate value

Actions for reform (implemented)
Implemented each action, and proceeded to improve governance reforms■ Assessment of effectiveness of the board of directors by a third party organization■ Increase in outside director ratio … 55.5%■ Ensuring of diversity including gender … Ratio of female employees in managerial positions: 22.2%,
Involvement of directors with diverse expertise■ Introduction of performance-based director's remuneration… Operating profit is adopted as the Key Performance Indicators and the rate of achievement of
CO2 reduction targets is also taken into account.
■ Establishment of voluntary nomination and compensation committee … 3 times held in FY2023

Future enhancement points
Further enhance governance system and implement actions to stimulate the board of directors■ Expansion of discussion on management of group companies■ Enhancement of training for directors and corporate auditors
ESG Strategy

27／28

Ⅳ-6-2. History of Improving Corporate Governance(Unit: person )Fiscalyear

Board of directors
Inside/Male

Outside/
Male

2015

5

2016

Board of auditors
Outside/Male

Inside/
Male

2

1

2

11

5

• Issuance of corporate governance report

5

2

1

2

11

5

• Self-assessment of the effectiveness of the boardof directors

2017

5

2

1

2

12

5

2018

5

2

1

2

12

5

4

2

2

11

(Served as
directors)

4• Non-renewal of the anti-takeover measures• Establishment of the Assignment andRemuneration Advisory Committee (voluntary
advisory body)

1

2

11

4

• Assessment of the effectiveness of the Board of
Directors by a third party organization• Introduction of exercising voting rights by anelectromagnetic method

1

1

2

10

4

• Change of stock awards for directors from Stock
Option to Restricted Stock

4

1

1

2

11

1

4

3

2

1

2

10

1

4

2020

4

3

2021

4

4

2022

4

2023

4

ESG Strategy

1

Inside/FemaleMain steps

Inside/Male

2019

Outside/FemaleCorporate officers

28／28This material is based on information available at the time of presentation, andcontains forward-looking statements which involve risks and uncertainties that
could cause actual results to differ materially from those presented in the forwardlooking statements. Therefore, there is no assurance that any forward-looking
statements in this material will be realized. Final investment decisions should bemade at your discretion.
Please pay particular attention to the figures for the fiscal year ending March 31,2026 and beyond. (Average annual growth rate in the page 3, 5, 7, and 9, reference
value in page 11, 18, and 20, market forecast of Arisawa estimate in page 13, 14
and 15 etc. )