Securities code: 6316
Nov. 30, 2022

To shareholders

4-15 Uchikanda 3-chome, Chiyoda-ku, Tokyo

Maruyama Mfg. Co., Inc.
Representative Director and President

Takaharu Uchiyama

Notice of the 87th Annual General Meeting of Shareholders
We would like to express our heartfelt thanks to you for your exceptional support.
The 87th annual general meeting of shareholders of our company is scheduled to be held as described below.
Instead of attending the meeting, you can exercise your voting rights in writing or via the Internet. We are sorry for bothering you,but please read the reference material for the general meeting of shareholders below, and exercise your voting rights by 5:40 pm on
Wednesday, December 21, 2022 (Japan time).
Sincerely❶ Date and time

Wednesday, December 22, 2022, 10:00 am (Japan time)
Reception will start at 9:00 am (Japan time)❷ Place

Bellesalle Kanda on the 2nd floor of Sumitomo Fudosan Kanda Bldg.,
7 Kandamitoshiro-cho, Chiyoda-ku, Tokyo(Please see “Map of the venue of the general meeting of shareholders” on the back cover.)Items to be reported

Business report, consolidated financial statements, non-consolidated financial statements and results of audit of consolidated financial
statements by accounting auditor and the audit and supervisorycommittee for the 87th term (Oct. 1, 2021 to Sep. 30, 2022)

Items to be resolved

Proposal 1: Partial revision of the Articles of Incorporation
Proposal 2: Appointment of five (5) directors, excluding directors
who are audit and supervisory committee members❸ Items to be discussed●When attending the meeting on that day, please submit your voting form enclosed herewith to the reception staff.
● Among the documents to be provided together with this notice, the following documents are available at our website in the Internet(https://www.maruyama.co.jp/), in accordance with law and Article 15 of the Articles of Incorporation of our company.
(1) “Consolidated statements of changes in net assets” and “Notes to consolidated financial statements”(2) “Non-consolidated statements of changes in net assets” and “Notes to non-consolidated financial statements”
The above documents (1) and (2) are included in consolidated and non-consolidated financial statements audited by accounting auditor and the audit
and supervisory committee for producing audit reports.
●If there is any revision to the reference materials for the general meeting of shareholders, business reports, consolidated or non-consolidated
financial statements, we will post the revised version on our website in the Internet (https://www.maruyama.co.jp/).

Proposal 1

Partial revision of the Articles of Incorporation

1. Reason for the proposal
1. Our company is enriching the lessons and training facilities for unmanned aircraft, such as drones for spraying
agricultural chemicals, as part of efforts to realize smart agriculture. In this situation, we would like to add new
purposes of business in Article 2 (Purpose) of the current Articles of Incorporation and change item numbers
accordingly, to diversify our business.
2. The amended provision set forth in the proviso of Article 1 of the Supplementary Provisions of the “ActPartially Amending the Companies Act (Act No. 70 of 2019)” was enforced on September 1, 2022, and asystem for electronic provision of materials for general meetings of shareholders was adopted. Accordingly,
we would like to revise the Articles of Incorporation as follows.
(1) It became mandatory to stipulate in the Articles of Incorporation that the information contained in referencematerials for the general meeting of shareholders will be provided electronically, so we would like to newly
establish the proposed first paragraph of Article 15 (Electronic Provision, etc.).
(2) We would like to newly establish the proposed second paragraph of Article 15 (Electronic Provision, etc.), sothat among the matters for which the system for electronic provision of information contained in reference
documents for general meeting of shareholders is adopted, the range of matters written in documents issued
for shareholders demanding written documents will be limited to the range set forth by the Ordinance of the
Ministry of Justice.
(3) Once a system for electronic provision of materials for general meetings of shareholders is adopted, theprovisions of Article 15 of the current Articles of Incorporation (Disclosure on the Internet and Deemed
Delivery of Reference Documents, etc. for General Meeting of Shareholders) will become unnecessary, so wewould like to delete them.
(4) We would like to add supplementary provisions regarding the validity of the provisions to be deleted as
mentioned above. Said supplementary provisions will be deleted after a specified period expires.

2. Details of the revision

The details of the revision are as follows.
(The underlined parts represent revised parts.)
Current Articles of Incorporation(Purpose)
Article 2 (provisions omitted)
Items 1 through 19 (provisions omitted)(Newly established)
Item 20 (provisions omitted)(Disclosure on the Internet and Deemed Delivery of Reference
Documents, etc. for General Meeting of Shareholders)
Article 15

Proposed revision(Purpose)
Article 2 (unchanged)
Items 1 through 19 (unchanged)
Item 20
Business of giving lessons and operating training
facilities for unmanned aircraft, such as drones
Item 21 (unchanged)(Deleted)

Upon convening a general meeting of shareholders,the Company may deem that the information which is
required to be described or indicated in reference
documents for the general meeting of shareholders,business reports, financial statements and consolidated
financial statements have been provided to theshareholders through the method of using the Internet
pursuant to the Ordinance of the Ministry of Justice.

(Newly established)(Electronic Provision, etc.)
Article 15
1. The Company will provide the information
contained in reference materials for thegeneral meeting of shareholders in electronic
format when convening a general meeting ofshareholders.

Current Articles of Incorporation(Newly established)

Proposed revision
2. Among the matters to be provided in electronic
format, the Company may choose not to include
all or part of the matters specified by the Ordinance of the Ministry of Justice in written
documents to be delivered to shareholders who
have requested said documents by the record
date of voting rights.
(Supplementary provisions)(Transitional Measures for the Electronic Provision ofReference Materials for General Meetings of Shareholders)
Article 1
1. Pre-amended Article 15 of the Articles ofIncorporation (Disclosure on the Internet andDeemed Delivery of Reference Documents, etc.
for General Meeting of Shareholders) willremain effective for a general meeting ofshareholders that will be held within 6 months
after September 1, 2022 (hereinafter referred toas “the enforcement date”), which is the date ofenforcement of the amended provision set forthin the proviso of Article 1 of the Supplementary
Provisions of the “Act Partially Amending theCompanies Act (Act No. 70 of 2019).”
2. The provisions of this article will be deleted on
the date when 6 months have elapsed from thedate of enforcement or 3 months have elapsed
from the date of the general meeting of shareholders mentioned in the preceding paragraph,
whichever is later.

●For reference
The electronic provision system means a system in which the materials of general meetings of shareholders are uploaded to our website, etc. and
we inform shareholders of the URL of said website, etc. in writing, to offer said materials to shareholders.
It is mandatory for listed companies to adopt the electronic provision system, so our company will apply this system from the 88th annual meetingof shareholders to be held in December 2023. We will send only a simple convocation notice, which describes how to access our website, etc. toshareholders.
After the adoption of the electronic provision system, shareholders who want to receive written materials of general meetings of shareholders needto complete the procedure for “requesting the issuance of written documents” by the record date of each general meeting of shareholders.
(If you want to receive written documents for the 88th annual meeting of shareholders to be held in December 2023, please complete the procedure by
September 30, 2023.)<Contact info for requesting the issuance of written documents>
To ask a securities company, please contact the securities company in which you opened an account.
To ask a shareholder registry administrator, please contact the Securities Agency Division of Mizuho Trust & Banking Co., Ltd. (Tel: 0120-524-324).

Proposal 2

Appointment of five (5) directors, excluding directors who areaudit and supervisory committee members

At the end of this general meeting, the terms of all of five (5) directors, excluding directors who are audit andsupervisory committee members, will expire and they will retire. Accordingly, we would like you to appoint
five (5) directors, excluding directors who are audit and supervisory committee members.
Regarding this proposal, the audit and supervisory committee of our company has judged that all candidates
are eligible.
The candidates for directors, excluding directors who are audit and supervisory committee members, are as
follows.
Candidate
No.

Name

1

Masanobu Ogashira

Representative Director
Director and Chairman

Reappointment

2

Takaharu Uchiyama

Representative Director
Director and President

Reappointment

3

Takahiro Ishimura

4

Kosuke Ohira

5

Makoto Takatori

Current post and section in our company

Managing Director
Head of Marketing Dept. and Head of Domestic
Marketing Dept.
Managing Director
General Manager of Production Division andManager of Chiba Factory
Director
General Manager of Administration Division

Reappointment

Reappointment

Reappointment

CandidateNo.

1

Reappointment

Masanobu
Ogashira(Born on May 10, 1952)

No. of shares of ourcompany he holds

22,449●Biography: His posts and sections in our company□
April 1976: Joined our company
December 1997: Director and President of Maruyama U.S., Inc.
October 2001: Assistant to the President and Chief of Group Management Division of our company
December 2001: Director of our company
July 2002: General Manager of Management Planning Department of our company
December 2003: Managing Director of our company
October 2004: General Manager of Administration Division of our company
April 2007: General Manager of Manufacturing Dept. and Manager of Chiba Factory of ourcompany
October 2008: Senior Managing Director and General Manager of Administration Division of ourcompany
October 2009: General Manager of Domestic Sales Division and General Manager of Overseas
Business Division of our company
October 2010: Representative Director and President of our company
October 2020: Representative Director and Chairman of our company (to the present)●Important concurrent posts□
There are no important concurrent posts.
●Reason for choosing him as a candidate for a director□
Mr. Masanobu Ogashira had played a role for improving our corporate value in a sustainable mannerby leading the management of our corporate group and supervising the decision making for andexecution of important management items as Representative Director and President since October2010. At present, he serves as Representative Director and Chairman, overseeing our businessadministration, and is expected to contribute to our business further. Therefore, we have chosen him
as a candidate for a director of our company.
●Notes on the candidate for a director□
1. There are no special interests between the candidate and our company.
2. Our company has entered into directors and officers liability insurance contract to cover damages
to be incurred by the insured as a result of liability that would arise due to execution of duties or
pursuit of such liability. If Mr. Masanobu Ogashira is elected, he will become one of the insured insaid insurance contract. This contract will be renewed with the same conditions, when the period
of insurance expires.
3. The number of shares of our company the candidate holds is the actual number of shares held asof September 30, 2022, including his equity in the executive share ownership plan.

CandidateNo.

2Takaharu
Uchiyama(Born on September 22, 1971)

No. of shares of ourcompany he holds

11,335●Biography: His posts and sections in our company□
April 1996: Joined our company
February 2006: Director and Vice-president of Maruyama U.S., Inc.
October 2006: Director and President of Maruyama U.S., Inc.
July 2011: General Manager of Management Planning Department of our company
December 2011: Director of our company
October 2018: General Manager of Administration Division of our company
December 2018: Managing Director of our company
October 2020: Representative Director and President of our company (to the present)
Reappointment●Important concurrent posts□
Representative Director and President of Maruyama Excell Co., Ltd.
●Reason for choosing him as a candidate for a director□
Mr. Takaharu Uchiyama possesses the experience of managing overseas subsidiaries of ourcompany and working for the management planning department, and has led the management
section for the entire corporate group, while exerting his leadership in strengthening corporategroup management and global business management of our corporate group. At present, heoversees business administration, proceeds with business operation, and leads our corporate groupas Representative Director and President. Since he is expected to contribute to our business further,
we have chosen him as a candidate for a director of our company.
●□Notes on the candidate for a director
1. There are no special interests between the candidate and our company.
2. Our company has entered into directors and officers liability insurance contract to cover damages tobe incurred by the insured as a result of liability that would arise due to execution of duties or pursuitof such liability. If Mr. Takaharu Uchiyama is elected, he will become one of the insured in said
insurance contract. This contract will be renewed with the same conditions, when the period of
insurance expires.
3. The number of shares of our company the candidate holds is the actual number of shares held as of
September 30, 2022, including his equity in the executive share ownership plan.

CandidateNo.

3

Reappointment

Takahiro
Ishimura(Born on July 17, 1962)

No. of shares of ourcompany he holds

7,125●Biography: His posts and sections in our company□
April 1985: Joined our company
October 2005: General Manager of Mass Retailer-targeted Sales Division of our company
October 2007: Manager of Kanto-Koshinetsu Branch of our company
April 2011: General Manager of Sales Promotion Department of our company
December 2011: Director of our company
October 2012: General Manager of Marketing and Sales Support Department, Sales Division of our company
October 2013: General Manager of Marketing and Sales Support Department and General Manager of Sales
Administration Division, Sales Division of our company
April 2014: General Manager of Marketing and Sales Support Department, Sales Division of our company
January 2017: General Manager of Overseas Sales Division and General Manager of Marketing and Sales
Support Department, Sales Division of our company
April 2017: General Manager of Overseas Sales Division, Sales Division of our company
October 2020: Managing Director, General Manager of Sales Division and General Manager of Domestic
Sales Division of our company (to the present)●Important concurrent posts□
Representative Director and President of Maruyama Logistics Co., Inc.
Director and Chairman of Maruyama U.S., Inc.
Director and President of Asian Maruyama (Thailand) Co., Ltd.
●Reason for choosing him as a candidate for a director□

Mr. Takahiro Ishimura possesses the experience of the sales of agricultural machinery and massretailer-targeted sales of our company, and exerted his leadership in marketing and sales support insideand outside Japan. At present, he manages sales inside and outside Japan as General Manager of Sales
Division and General Manager of Domestic Sales Division. Since he is expected to contribute to ourbusiness further, we have chosen him as a candidate for a director of our company.
●□Notes on the candidate for a director

1. There are no special interests between the candidate and our company.
2. Our company has entered into directors and officers liability insurance contract to cover damages tobe incurred by the insured as a result of liability that would arise due to execution of duties or pursuitof such liability. If Mr. Takahiro Ishimura is elected, he will become one of the insured in said
insurance contract. This contract will be renewed with the same conditions, when the period of
insurance expires.
3. The number of shares of our company the candidate holds is the actual number of shares held as of
September 30, 2022, including his equity in the executive share ownership plan.

Candidate
No.

4

KosukeOhhira(Born on December 10, 1966)

No. of shares of ourcompany he holds

5,813●Biography: His posts and sections in our company□
April 1989: Joined our company
October 2010: Director and Factory Manager of Maruyama MFG (Thailand) Co., Ltd.
October 2013: Director and Factory Manager of Nippon Kreis Co., Ltd.
October 2018: Executive Officer and General Manager of Procurement Dept. of our company
October 2019: General Manager of Production Division and Manager of Chiba Factory of ourcompany (to the present)
December 2019: Director of our company
October 2020: Managing Director of our company (to the present)
Reappointment●Important concurrent posts□
Representative Director and President of Nippon Kreis Co., Ltd.
Representative Director and President of Seibu Maruyama Co., Ltd.
●Reason for choosing him as a candidate for a director□
Mr. Kosuke Ohira possesses the experience of working for production section of our company andserving as Director of a related production subsidiary, and has exerted his leadership in production
sections inside and outside Japan. At present, he manages production sections as General Manager of
Production Division, Manager of Chiba Factory, and Representative Director/President of a related
production subsidiary. Since he is expected to contribute to our business further, we have chosen him
as a candidate for a director of our company.
●□Notes on the candidate for a director
1. There are no special interests between the candidate and our company.
2. Our company has entered into directors and officers liability insurance contract to cover damages tobe incurred by the insured as a result of liability that would arise due to execution of duties or pursuitof such liability. If Mr. Kosuke Ohira is elected, he will become one of the insured in said insurance
contract. This contract will be renewed with the same conditions, when the period of insurance
expires.
3. The number of shares of our company the candidate holds is the actual number of shares held as of
September 30, 2022, including his equity in the executive share ownership plan.

Candidate
No.

5

MakotoTakatori(Born on December 6, 1966)

No. of shares of ourcompany he holds

3,034●Biography: His posts and sections in our company□
April 1989: Joined The Fuji Bank, Limited.
February 2009: Assistant Manager of IT/System Planning Division of Mizuho Financial Group, Inc.
April 2013: Manager of Shinjuku-shintoshin Branch of Mizuho Bank, Ltd.
April 2016: Manager of Kitakyushu Branch of Mizuho Bank, Ltd.
June 2019: General Manager of Accounting Department of our company
April 2020: Executive Officer of our company
October 2020: General Manager of Administration Division of our company (to the present)
December 2020: Director of our company (to the present)
Reappointment●Important concurrent posts□
There are no important concurrent posts.
●Reason for choosing him as a candidate for a director□
Mr. Makoto Takatori possesses plenty of experience and broad knowledge regarding financial
institutions, and has exerted his leadership in the accounting section of our company by utilizing his
experience and knowledge. At present, he engages in the management and operation of the entire
corporate group as General Manager of Administration Division. Since he is expected to contribute toour business further, we have chosen him as a candidate for a director of our company.
●Notes on the candidate for a director□
1. There are no special interests between the candidate and our company.
2. Our company has entered into directors and officers liability insurance contract to cover damages tobe incurred by the insured as a result of liability that would arise due to execution of duties or pursuitof such liability. If Mr. Makoto Takatori is elected, he will become one of the insured in said insurance
contract. This contract will be renewed with the same conditions, when the period of insurance
expires.
3. The number of shares of our company the candidate holds is the actual number of shares held as of
September 30, 2022, including his equity in the executive share ownership plan.

For reference
If Proposal 2 is approved, the directors and their expected expertise will become as follows. Not all of theirknowledge is tabulated below.

Masanobu Ogashira
Representative Director
and Chairman
Takaharu Uchiyama
Representative Director
and President
Takahiro IshimuraManaging
Director/General
Manager of Sales
Division
Kosuke OhhiraManaging
Director/General
Manager of Production
Division
Makoto Takatori
Director/General
Manager of
Administration Division
Hiroyuki Hatano
Outside Director/Fulltime audit andsupervisory committee
memberAtsushi Toki
Outside Director/Auditand supervisorycommittee member
Takashi Sekigawa
Outside Director/Auditand supervisorycommittee member
Nobushige Ueki
Substitute Outside
Director/Audit andsupervisory committee
member

Generalbusiness
administration

International
experience

MarketingTechnology/
production

●

●

●

●

●

●

●

●

●

●

●

●

●

Personnel/legal
affairs

Finance/accounting

Digitaltechnology/IT

Audit

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

I

Matters relating to the current status of our corporate group

1 Progress and results of our business
During the consolidated fiscal year under review, the Japanese economy showed signs of a gradual recovery as thenumber of newly infected cases of COVID-19 began to decline and restrictions on social and economic activities
gradually eased. However, the outlook remains uncertain due to energy issues, the substantial depreciation of theyen, and the prolonged situation in Ukraine, in addition to the shortage of semiconductors and the rising cost of raw
materials.
In the agriculture and forestry machinery industry, the mainstay of our corporate group, shipments and productionof machinery, both for domestic and export markets, declined slightly from the previous year, mainly due to a recoil
from the effects of various policies implemented in the previous fiscal year.
Under these circumstances, in the domestic sales activities, our corporate group resumed large-scale exhibitions,etc. However, in anticipation of avoiding lost opportunities due to the reemergence of COVID-19, our company
expanded online exhibitions on our website to introduce our products and enhance our product line-up. In addition,with the aim of cultivating new business fields, our company expanded sales activities for ultrafine bubble products
by taking advantage of the pump technology, which is one of our company’s strengths. Overseas, we continued toaggressively expand sales of agricultural and forestry machinery and ultrafine bubble products through online
business negotiations, while resuming sales activities to visit local markets.
As a result, domestic sales of industrial pumps increased, but in the agri-distribution business, sales of large pest
control equipment and power sprayers decreased due to the recoil from the business continuity subsidy policy
implemented in the previous fiscal year, resulting in domestic net sales of 28,868 million yen (down 2.5% year-onyear). Overseas, sales of industrial pumps for North America and Europe and sales of brush cutters increased mainlyin Central and South Americas increased, resulting in overseas net sales of 10,771 million yen (up 36.3% year-onyear) and total net sales of 39,639 million yen (up 5.7% from year-on-year).
In terms of profit, operating income increased 9.7% year-on-year to 1,521 million yen, ordinary income increased
25.6% year-on-year to 1,635 million yen, and net income attributable to owners of parent increased 35.3% year-onyear to 1,158 million yen, mainly due to an increase in gross profit due to larger sales, despite a deterioration in the
gross profit margin caused by higher raw material costs.

2. Status of capital investment, etc.
Total capital investment in the current consolidated fiscal year amounted to 875 million yen. The main items wererenewal of production facilities at our Chiba Factory and manufacturing subsidiaries.

3. Status of fundraising
The funds required for the current fiscal year were financed by cash on hand and borrowings, and no funds were raised
through the issuance of new shares.

4. Status of significant corporate restructuring, etc.
No significant corporate restructuring, etc. occurred in the current consolidated fiscal year.

5. Issues to be addressed
The next fiscal year is the first year of the 8th Medium-Term Management Plan (October 2022 to September 2027),
and in order to follow the basic policy of this Medium-Term Management Plan, “Creation of Growth Businesses,”
all employees will work together to achieve the single-year plan and Medium-Term Management Plan by focusing
on the following items.
As a company that contributes to society in the areas of food, water, and the environment, our corporate group has
continued to supply products. We will further strengthen ESG management and continue to provide products that
contribute to society over the long term.
(1) Improvement of profit margin
We will strive to improve profit margin by developing high value-added products like ultrafine bubble products.
We will also change our business portfolio by focusing resources on the industrial machinery field, where profit
margin has been high.
(2) Establishing new businesses
By expanding the distribution of ultrafine bubble products to new markets, including overseas markets, we have beenable to add distribution to the general consumer market to the one that had been mainly to corporate customers. In
the future, we will take on the challenge of creating new growth businesses by utilizing DX and IoT technologies.

(3) Growth of overseas business
While expanding sales of models that have been successful in Japan in recent years, we will make maximum use of
the capabilities of our local production subsidiaries in Thailand to aggressively develop and produce products andmake further inroads into the Asian agricultural machinery market, which has become more active in recent years.
In sales, we will strive to expand sales through more detailed market development and marketing by utilizing local
human resources in each country.
(4) Further growth of existing businesses
In the agricultural machinery field, in addition to the development of smart agricultural equipment, we will develop
products that apply IoT and sensor technologies, develop products with new environmentally friendly engines, andexpand our battery product lineup. In the industrial machinery field, we will develop pump products for new
applications and strive to further expand our business both in Japan and overseas.
(5) Strengthening financial position, risk management, and human resource development
We will strengthen our financial position by drastically revising our management methods for both product andparts inventories and by working to reduce inventories. In addition, we will upgrade and implement BCM (BusinessContinuity Management) to avoid various risks. Furthermore, we will strive to hire, train, and develop a wide varietyof human resources for the future expansion of our business activities.

7th Medium-Term Management Plan (FY 9/2020 to FY 9/2022)◆Medium-term Management Plan Concept: “To Achieve Sustainable Growth”
1. Profitability improvement◆Quality measures◆Strengthening of financial position

2. Sparking innovation◆Growth of industrial machinery and overseas business◆Smart agriculture expansion

Numerical management targets (for FY 9/2022)
Net sales

37,700 million
yen

Operating
1,500 million yen
incomeROE

6.0% or higher(Note) On November 12, 2021, we revised our numerical management targets to 37,700 million yen for net sales, 1,500 million yen for operating income, and 6.0%
or higher for ROE.

1. Profitability improvement

2. Sparking innovation

To grow industrial
machinery business◆Strengthen product strategy for MUFB
products, etc.
◆Sell high value-added finished products

To grow overseas
business◆Develop products suited to local needs◆Build sales channels

To expand into smart
agriculture

To grow service business◆Strengthen R&D and enrich the line-up oflarge machinery, drones and battery products◆Acquire software, system and service skills◆Form alliance and cooperation with companies
in other industries◆Expand the after-sales market◆Respond quickly to changes in the market anddemand◆Enhance our service organization◆Gain better grasp of end-user information

Results of management indicators
In the 7th Medium-Term Management Plan, as stated in “2. Sparking innovation,” we have been engaged in activities to expand sales in theindustrial machinery business and overseas business, to enter the smart agriculture business, and to enhance after-sales service. As a result, net
sales and operating income increased, and we were able to achieve our management targets of 39,639 million yen in net sales, 1,521 million
yen in operating income, and 6.6% in ROE.
Going forward, we will strive for further growth by steadily implementing the various initiatives described in the 8th Medium-Term
Management Plan on the next page.

Net sales

39,639 million yen

Operatingincome1,521 million yen

ROE

6.6%

Numerical management targets (for FY 9/2027)
Net sales

48,000 million yen

Operatingincome2,800 million yen

ROE

7.5%

6. Changes in assets and profit/loss (consolidated)

By term
Item

84th term
FY 9/201985th term
FY 9/2020

86th term
FY 9/2021

87th term
FY 9/2022

Net sales(Million yen)

36,17734,89537,50339,639Ordinary income(Million yen)

399

763

1,302

1,635

301

648

855

1,158

62.42 yen

136.35 yen

183.10 yen

256.58 yen

Net income attributable to owners
parentof(Million yen)

Net income per share
Total assets(Million yen)

32,89432,73334,15434,459Net assets(Million yen)

15,495

16,042

16,98917,699(Notes)1. Net income per share is calculated based on the average number of shares outstanding during the term. The average number of shares outstanding during the term is calculated
excluding treasury shares. For the number of treasury shares, please refer to the notes under “II Matters concerning the company’s stock” below.
2. “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and others have been applied since the beginning of the current consolidated
fiscal year, and the figures for the current consolidated fiscal year are those after the application of such accounting standards.

7. Status of important subsidiaries
Corporate name

Nippon Kreis Co., Ltd.

Capital95 million yen

Ourcompany’s
shareholding
ratio
100％

Description of primary business

Manufacturing and sale of agricultural and forestry
machinery(Note)
There are 9 consolidated subsidiaries including the above important subsidiary.

8. Description of primary business
Division

Agriculturalandforestry machinery

Pest control
equipment
Forestrymachinery
Parts
OthersIndustrial machinery
Other machinery
Real estate leasing, etc.

Product line-up
Power sprayers, power dispersers and large pest control equipment
Bush cutters, chain saws and hedge trimmers
Attachments and accessory parts
Paddy ditch cutters, blowers, irrigation pumps, etc.
High-pressure pumps for industrial use, high-pressure cleaners andaccessory parts
Fire extinguishers, disaster prevention-related equipment andaccessory parts, machinery for environmental sanitation, and others
Real estate leasing and electricity sales

9. Main sales offices and factories(1) Our company
Name
Head Office

Location
Chiyoda-ku, Tokyo

Location
Fuefuki-shi,
Yamanashi
Tsuchiura-shi,
IbarakiKanuma-shi,
TochigiTogane-shi, Chiba

Yahaba-cho,
Shiwa-gun, Iwate

Name
Yamanashi
Sales Office
Ibaraki
Sales OfficeKita-Kanto
Sales Office
Chiba Sales
Officeｚ
Shizuoka
Sales Office

Hokkaido
Sales Office
Aomori
Sales Office
Akita Sales
OfficeIwate Sales
OfficeEbetsu-shi,
Hokkaido
Towada-shi,
Aomori
Akita-shi, Akita

Tendo-shi,
Yamagata

NagoyaSales Office

Toyota-shi, Aichi

Hokuriku
Sales OfficeNiigata
Sales OfficeTen-ei-mura,
Iwase-gun,
Fukushima
Nagaoka-shi,
Niigata

NaganoSales Office

Shiojiri-shi,
NaganoSouth
TohokuSales Office
Fukushima
Sales Office

Name
Hiroshima
Sales Office
Shikoku
Sales Office
Fukuoka
Sales Office
Kumamoto
Sales Office
MinamiKyushu
Sales Office
Chiba
Factory

Location
Hiroshima-shi,
Hiroshima
Kanonji-shi,
KagawaKurume-shi,
FukuokaOzu-cho, Kikuchigun, Kumamoto
Kagoshima-shi,
Kagoshima

Kanazawa-shi,Ishikawa

Togane No.
2 Factory

Togane-shi, Chiba

Osaka Sales
OfficeIbaraki-shi, Osaka

Kagamino
OfficeOkayamaSales OfficeKagamino-cho,Tomata-gun,Okayama

Fukushima
OfficeKagamino-cho,Tomata-gun,OkayamaTen-ei-mura,
Iwase-gun,
Fukushima

Fujieda-shi,
Shizuoka

Togane-shi, Chiba(Note)
As of October 1, 2022, the names of South Tohoku Sales Office and Miyagi Office were changed to Miyagi Sales Office.

(2) Subsidiaries
Corporate nameHead office location

Nippon Kreis Co., Ltd.
Maruyama Excell Co., Ltd.

Togane-shi, Chiba
Chiyoda-ku, TokyoMARUYAMA U.S., INC.
Seibu Maruyama Co., Ltd.

Texas, U.S.A.
Kagamino-cho,Tomatagun, Okayama
Ten-ei-mura, Iwase-gun,
Fukushima
Fuefuki-shi, Yamanashi
Chonburi, Thailand
Shanghai, China
Chonburi, Thailand

Maruyama Logistics Co., Inc.
Futaba Shoji Co., Ltd.
MARUYAMA MFG(THAILAND) CO., LTD.
Maruyama (Shanghai) Trading Co., Inc.
ASIAN MARUYAMA (THAILAND) CO.,LTD.

Base location
East Japan Sales Office (Chiba), West Japan Sales
Office (Osaka) and Chiba Factory (Chiba)

Chiba Center (Chiba Prefecture)(Note)In October 2021, we acquired the shares of Futaba Shoji Co., Ltd., making it a consolidated subsidiary in the current consolidated fiscal year.

10. Status of employees(1) Consolidated
Segment name

Number of employees

Agriculture and forestry machinery

686

Changes from the end of theprevious term
Up 4 employees

Industrial machinery157

Up 29 employees

Other machinery65

Up 2 employees

Company-wide (common)

44

-

952

Up 35 employees

Number of employees

Total(2) Non-consolidated
Segment name
Agriculture and forestry
machinery
Industrial machinery

407

Changes from the end of theprevious term
Down 25 employees

131

Up 16 employees

Other machinery

11-

Company-wide (common)

44

-

593

Down 9 employees

Total

11. Major lenders
Lenders

Amount of loan (million yen)Mizuho Bank, Ltd.

751

Norinchukin Bank

668

Chiba Kogyo Bank, Ltd.

331

Sumitomo Mitsui Trust Bank, Limited

275

Mizuho Trust & Banking Co., Ltd.

262

Matters concerning the company’s stockII

1. Total number of authorized shares
2. Total number of outstanding shares
3. Number of shares per trading lot
4. Number of shareholders

13,906,100
5,029,332 (including 598,572 treasury shares)
100
5,779

5. Major shareholders (top 10)
Name of shareholder
The Master Trust Bank of Japan, Ltd. (trust account)Maruyama Mfg. Partners Shareholding Association
Mizuho Bank, Ltd.
Norinchukin Bank
Maruyama Mfg. Employees Shareholding Association
Chiba Kogyo Bank, Ltd.
KUBOTA Corporation
Mizuho Trust & Banking Co., Ltd.
Custody Bank of Japan, Ltd. (trust account)
Sumitomo Mitsui Trust Bank, Limited

Number of shares held
(thousand)
295
244
210
205
163
162
95
90
83
73

Shareholding ratio (%)
6.67
5.51
4.74
4.63
3.68
3.67
2.15
2.03
1.88
1.66

(Notes)
1. Our company holds treasury shares (504,172 shares), which are not included in the above table.
2. The shareholding ratio is calculated excluding treasury shares (598,572 shares). As of September 30, 2022, 94,400 shares of our company’s stock held by Custody Bank ofJapan, Ltd. (trust E account) are included in the number of treasury shares, and are therefore not included in the table above.
Bank of Japan, Ltd. (trust E account) are included in the number of treasury shares, and are therefore not included in the table above.

6. Shares issued to corporate officers as remuneration for the execution of their duties during the fiscal year
under review
Number of shares
Directors (excluding members of the audit
and supervisory committee)
Executive officers
Executive officers (subsidiaries)-

Number of persons to whomshares were delivered
-

600

1

7. Other important matters concerning shares
None.

III
None.

Matters concerning share acquisition rights of our company

IV

Items regarding executives

1. Directors’ names, etc.
Name

Post

Masanobu OgashiraTakahiro Ishimura

Representative Director
Director and Chairman
Representative Director
Director and PresidentManaging Director

Kosuke OhiraManaging Director

Makoto Takatori

Director

Hiroyuki Hatano

Outside Director
Full-time audit andsupervisory committee
memberOutside Director
Audit and supervisorycommittee member

Takaharu Uchiyama

Atsushi Toki

Takashi Sekigawa

Outside Director
Audit and supervisorycommittee member

Responsibility and important concurrent post

Representative Director and President of Maruyama
Excell Co., Ltd.
Head of Marketing Dept. and Head of Domestic
Marketing Dept.
Representative Director and President of Maruyama
Logistics Co., Inc.
Director and Chairman of Maruyama U.S., Inc.
Director and President of Asian Maruyama (Thailand)Co., Ltd.
General Manager of Production Division and Manager of
Chiba Factory
Representative Director and President of Nippon Kreis
Co., Ltd.
Representative Director and President of Seibu
Maruyama Co., Ltd.
Director and Chairman of Maruyama MFG (Thailand)Co., Ltd.
General Manager of Administration Division andAccounting Section Chief

LawyerOutside auditor of Midori Anzen Co., Ltd.
Outside auditor of Nippon Steel Texeng Co., Ltd.
Outside Director of Ajinomoto Co., Inc.
Outside Director of GEOSTR Corporation
Outside auditor of SECROTEC Co., Ltd.
Outside auditor of Kyodo Milk Industry Co., Ltd.

(Notes)1. Managing Director Kosuke Ohira resigned from Director and Chairman of Maruyama MFG (Thailand) Co., Ltd. on October 1, 2022.
2. Director Makoto Takatori retired from the Accounting Section Chief, Accounting Department, on October 1, 2022
3. Three outside directors, Hiroyuki Hatano, Atsushi Toki, and Takashi Sekigawa, have been registered in the Tokyo Stock Exchange as independent officers.
4. Makoto Miyanishi, Outside Director, retired from his position at the end of the 86th Ordinary General Meeting of Shareholders held on December 21, 2021.
5. Toshihiro Kamakura, Director, resigned at the end of the 86th Ordinary General Meeting of Shareholders held on December 21, 2021
6. Atsushi Toki, Outside Director, assumed the position of outside auditor of SECROTEC Co., Ltd. in August 2022.
7. Takashi Sekigawa, Outside Director, resigned from Outside Director of Starzen Co., Ltd. in June 2022.
8. In order to strengthen the audit and supervisory function of the audit and supervisory committee, our company has appointed Mr. Hiroyuki Hatano as a full-time audit andsupervisory committee member to collect information from directors (excluding audit and supervisory committee members), share information at important internal meetings,
and enable sufficient cooperation between the Internal Audit Department and the audit and supervisory committee.

2. Matters concerning remuneration for directors(1) Total amount of directors’ remuneration, etc.
Classification

Total amount of

Total amount of remuneration by type (million yen)remuneration, etc.

Basic remuneration(million yen)

Number of

Performance-linked

Non-monetary

eligible directors

remuneration

remuneration,

and auditorsetc.
5

Director (excluding audit and supervisory
160

149

37

37

11

-

committee members)
Director (audit and supervisory committee members)(34)(Outside Director)
Total

198

(34)
186

-

-

(-)

(-)

11

5
(4)
-

10

(Note)
1. The above includes one director (audit and supervisory committee member) who retired and one director (audit and supervisory committee member) who resigned
during the current fiscal year.
2. Details of performance-linked remuneration are as described in “(2) Performance-linked remuneration” on page 34.

(2) Policy for determining directors’ remuneration, etc.

1. Basic policy
We shall position the remuneration system for directors as a mechanism to realize continuous enhancement ofour group’s corporate value and sustainable growth over the medium to long term, based on our basic
philosophy of corporate governance, and shall establish and operate the system in accordance with the following
points:The remuneration system shall promote the improvement of short-term and medium/long-term businessperformance and corporate value.
The type and level of remuneration shall be commensurate with the responsibilities, performance and results ofeach director within the range determined at a general meeting of shareholders.
The Executive Remuneration Advisory Committee, the majority of which are composed of outside directors,
shall ensure objectivity and transparency through deliberations.
The Board of Directors has confirmed that the method of determining the details of remuneration, etc. for eachindividual director for the current fiscal year and the details of remuneration, etc. determined are consistent withsuch policy, and that the report from the Executive Remuneration Advisory Committee is duly taken into
consideration, and we have concluded that the remuneration is in line with such determination policy.
2. Policy on remuneration standards(1) Executive directors (excluding those who are members of the audit and supervisory committee)
The remuneration for executive directors consists of three types of remuneration: basic remuneration as
monetary compensation; performance-linked remuneration linked to the performance of the company,
divisions, and individuals; and transfer-restricted stock remuneration. As the total amount of remuneration for
executive directors, the amount of monetary remuneration is set at no more than 300 million yen per year by aresolution of the 82nd Ordinary General Meeting of Shareholders held on December 19, 2017. As of the end of
said general meeting of shareholders, the number of eligible directors is 7. In addition, the amount of
remuneration under the transfer-restricted stock remuneration, which is separate from monetary remuneration,is set at no more than 30 million yen per year by a resolution of the 84th Ordinary General Meeting of
Shareholders held on December 19, 2019. The number of eligible directors as of the end of said general meetingof shareholders is 6.

(1) Basic remuneration
The level of remuneration is fixed on a monthly basis and is determined according to the director’s positionin the company’s remuneration regulations. The level of remuneration will not fluctuate in the short term, but
may be reviewed in the event of changes in the company’s performance. In addition, in order to clarify
management responsibility, the amount of remuneration will be reduced in the event of a significant decline inperformance or in the event of misconduct.
(2) Performance-linked remuneration
Performance-linked remuneration consists of two components: performance and results-linked remunerationand single-year performance-linked remuneration.
a. Performance and results-linked remuneration
This is a monthly remuneration that fluctuates annually based on the company’s performance in theprevious fiscal year, the performance of the division in charge, and individual results. The amount of
individual remuneration for directors is determined by Representative Director and President after
deliberation by the Executive Remuneration Advisory Committee based on the evaluation conducted byRepresentative Director and President using the director performance evaluation chart specified in theregulations and other materials. In accordance with the resolution of the Board of Directors, the Executive
Remuneration Advisory Committee shall deliberate on the amount of individual remuneration and delegate
the authority to decide the remuneration to Takaharu Uchiyama, Representative Director and President. The
reason for this delegation is that the company believes that the Representative Director is best suited toevaluate the divisions for which each Director is responsible while taking into consideration the company’s
overall business performance.
b. Single-year performance-linked remuneration
The monetary remuneration will reflect the Key Performance Indicators (KPI) determined to raiseawareness of the need to improve performance for each fiscal year, and will be paid as a bonus at a certain
time each year according to the degree of achievement of the target figures for each fiscal year. Specificperformance indicators and the amount to be paid will be determined by the Board of Directors after
deliberation by the Executive Remuneration Advisory Committee.
(3) Transfer-restricted stock remuneration
After setting a transfer restriction period in conjunction with the Medium-term Management Plan, commonshares of the company (“the shares”) will be issued with the aim of providing incentives to continuously
improve the company’s corporate value and to further improve value sharing with shareholders. Specificperformance indicators and the number of shares to be delivered will be determined by the Board of Directors
after deliberation by the Executive Remuneration Advisory Committee.
a. Transfer restriction period
The subject directors shall not transfer, create a security interest in, or dispose of the shares (the “transfer
restriction”) for a period of time specified by the company’s Board of Directors between one year and three
years (the “transfer restriction period”).
b. Treatment upon retirement
If a subject director retires from the position predetermined by the company’s Board of Directors during
the period up to the time when whether or not the subject director has achieved the ordinary income and otherperformance targets predetermined by the company’s Board of Directors (the “performance targets”), we shallnaturally acquire the shares without compensation.

c. Cancellation of transfer restriction
On the condition that the subject director continuously holds the position predetermined by the Board of
Directors of the company during the period up to the time when the company determines whether or not theperformance targets have been achieved, and provided that the performance targets have been achieved, it
shall cancel the transfer restriction with respect to all of the shares at the time when the transfer restriction
period expires. In addition, our company will naturally acquire without any compensation the shares forwhich the transfer restriction has not yet been lifted as of the time immediately following said lifting of therestriction.
d. Treatment in the event of organizational restructuring, etc.
If, during the transfer restriction period, a merger agreement under which the company shall become adefunct company, a share exchange agreement under which the company shall become a wholly owned
subsidiary, a share transfer plan, or any other matters relating to organizational restructuring, etc. areapproved at a general meeting of shareholders of the company (however, if such organizational restructuring,etc. does not require approval at a general meeting of shareholders, then the Board of Directors of thecompany shall approve such matters), the company will acquire the shares without compensation.
e. Other matters
Other matters shall be determined by the Board of Directors of the company.
(2) Directors who are members of the audit and supervisory committee
In consideration of their roles, the remuneration of directors who are members of the audit and supervisorycommittee shall consist solely of a monthly fixed remuneration, which shall be determined through discussions
by the audit and supervisory committee, taking into consideration the distribution of duties, within the limit of
the total amount of remuneration resolved at the general meeting of shareholders. The total amount of such
remuneration is set at no more than 84 million yen per year by resolution of the 82nd Ordinary General Meetingof Shareholders held on December 19, 2017. As of the end of the said general meeting of shareholders, thenumber of eligible directors is 3.
3. Policy on determination of the ratio of remuneration for each individual director
The Executive Remuneration Advisory Committee will consider the ratio of remuneration for each type of
executive directors based on benchmark remuneration levels set by companies of similar business size and in
related industries and business categories. The Board of Directors will respect the report of the Executive
Remuneration Advisory Committee and determine the details of remuneration, etc. for each individual director
within the range of the ratio of remuneration, etc. by type as indicated in the said report. The standard ratio foreach type of remuneration, etc. is as follows: basic remuneration: performance-linked remuneration: transferrestricted stock remuneration = 5:4:1 (in the case of achievement of performance indicators).

3. Matters concerning outside directors and outside audit and supervisory committee members(1) Significant concurrent positions and relationships with the company(i) Atsushi Toki, Director, concurrently serves as outside auditor of Midori Anzen Co., Ltd., outside auditor of Nippon
Steel Texeng Co., Ltd., Outside Director of Ajinomoto Co., Inc., Outside Director of GEOSTR Corporation, and outside
auditor of SECROTEC Co., Ltd. There is no special relationship between the company and Midori Anzen, Nippon Steel
Texeng, Ajinomoto, GEOSTR, and SECROTEC.

(ii) Takashi Sekigawa, Director, concurrently serves as outside auditor of Kyodo Milk Industry Co., Ltd., but there isno special relationship between the company and Kyodo Milk Industry. In addition, Mr. Sekigawa served concurrently
as Outside Director of our company and Starzen Co., Ltd., but there is no special relationship between our company
and Starzen Co., Ltd.

(2) Major activities during the current fiscal year
Attendance at Board of Directors
meetings and audit and supervisorycommittee meetings

Director
HiroyukiHatanoDirector
Atsushi Toki

Director
TakashiSekigawa

Statements made at Board of Directors meetings
and audit and supervisory committee meetings
Summary of duties performed in relation toroles expected of outside directors
Board of Directors: 13/13 (100%)
As a full-time audit and supervisory committee
Audit and supervisory committee: 14/14 member, he asked questions and expressed his(100%)
opinions on proposals, deliberations, etc., as
Executive Selection Advisory Committee: appropriate and as necessary, based on his
2/2 (100%)abundant experience at other companies andExecutive Remuneration Advisory from various perspectives.
Committee: 2/2 (100%)
Board of Directors: 12/13 (92%)
He asked questions and expressed his opinions
Audit and supervisory committee: 13/14 on proposals, deliberations, etc. as necessary(93%)
based on his abundant experience as an attorney
Executive Selection Advisory Committee: and from professional perspectives.
2/2 (100%)
Executive Remuneration Advisory
Committee: 1/2 (50%)
Board of Directors: 10/10 (100%)
Since assuming his position on December 21,
Audit and supervisory committee: 10/10 2021, he has asked questions and expressed his(100%)
opinions on proposals, deliberations, etc., as
Executive Selection Advisory Committee: appropriate and as necessary, based on his
2/2 (100%)abundant experience at other companies andExecutive Remuneration Advisory from various perspectives.
Committee: 0/0 (0%)

4. Matters concerning liability limitation agreement

An agreement between our company and each director (excluding executive directors) limits the liability fordamages as provided for in Article 423, Paragraph 1 of the Companies Act. The maximum amount of liability basedon the contract is the minimum liability limit stipulated by laws and regulations.

5. Matters concerning directors and officers liability insurance contract

Our company has concluded a directors and officers liability insurance contract with an insurance company as
stipulated in Article 430-3, Paragraph 1 of the Companies Act, which covers damages that may arise from an insured
person being held liable for the performance of his/her duties or being subject to claims related to the pursuit of suchliability. However, there are certain exclusions of liability, such as not covering damages caused by acts committedwith the knowledge that such acts are in violation of laws and regulations.

The insured under such insurance contract are the company’s directors (including directors who are members of
the audit and supervisory committee), directors and audit and supervisory committee members of its subsidiaries.
The premiums for all those insured are fully borne by our company.

V

Matters concerning an accounting auditor

1. Name

Seinan Audit Corporation

2. Amount of remuneration, etc.
(1)

Amount of remuneration to the accounting auditor for the current fiscal year

25 million yen(2)

Total amount of cash and other financial benefits payable by the company and its subsidiaries

25 million yen(Notes)1. The audit contract between our company and the accounting auditor does not distinguish between remuneration, etc. for audits based on the Companies Act andremuneration, etc. for audits based on the Financial Instruments and Exchange Act, and since it is practically impossible to distinguish between the two, the amountof remuneration, etc. in 1) is stated as the sum of these amounts.
2. The audit and supervisory committee decided to consent to the amount of remuneration, etc. of the accounting auditor as stipulated in Article 399, Paragraph 1 of
the Companies Act after reviewing the details of the audit, the performance of duties, and the estimated amount of remuneration of the accounting auditor.

3. Non-audit services
There are no applicable matters.

4. Policy on dismissal or non-reappointment of an accounting auditor
The audit and supervisory committee shall dismiss the accounting auditor with the unanimous consent of all
audit and supervisory committee members if the accounting auditor falls under any of the items of Article 340,
Paragraph 1 of the Companies Act and dismissal is deemed appropriate.
In addition, the audit and supervisory committee shall decide the content of the proposal for dismissal or nonreappointment of the accounting auditor to be submitted to the general meeting of shareholders when it is deemedthat any event has occurred that would impede the accounting auditor from conducting proper audits, etc.

5. Matters concerning liability limitation agreement
Our company and the accounting auditor have entered into an agreement to limit liability for damages as
stipulated in Article 423, Paragraph 1 of the Companies Act, and the maximum amount of liability based on thisagreement is the minimum liability amount stipulated in laws and regulations.

VI

Company structure and policies

1. System to ensure the appropriateness of business operations
The Board of Directors of our company has established and put into practice the following ten items as a system
to ensure that the execution of duties by directors complies with laws and regulations and the Articles ofIncorporation, and systems to ensure the appropriateness of business operations of our company and its subsidiaries.
(1) System to ensure that the execution of duties by directors and employees of the corporate group consisting of ourcompany and its subsidiaries (“our corporate group”) complies with laws and regulations and the Articles ofIncorporation(i) Our company regards compliance as one of the most important management issues and distributes the“Maruyama Group Compliance Manual,” which was formulated by the CSR Committee and established by
the Board of Directors, to all executives and employees of our corporate group, and periodically conducts
awareness-raising and training programs to instill a compliance mindset.
(ii) In preparation for the occurrence of compliance problems, we shall establish a reporting and consultation
hotline to receive whistleblower reports from within and outside our corporate group and maintain awhistleblower system that provides checks, prevents problems and responds promptly. We will also ensure
the protection of whistleblowers in accordance with the “Whistleblower Protection Regulations.”(iii) We shall not have any relationship, including business transactions, with antisocial forces or groups thatthreaten the order and safety of civil society. We will also take a resolute stance against unjustified demands.
To this end, we will establish necessary systems, including a department in charge and a method of response.
(2) System for the storage and management of information related to the execution of duties by the company’s directors(i) In accordance with the Articles of Incorporation and the Rules of the Board of Directors, minutes of thegeneral meeting of shareholders and the Board of Directors meetings shall be prepared, stored and managed
appropriately. In the same manner, the company shall properly store and manage related reference materials.
(ii) Minutes and reference materials of important internal meetings such as business execution meetings,
management meetings, joint management meetings, and various committees shall be prepared, stored, andmanaged appropriately in accordance with the Document Management Regulations.
(iii) Approval documents for directors shall be properly stored and managed in accordance with the provisionsof the Approval Document Regulations.
(3) Regulations and other systems for managing the risk of loss for our corporate group(i) In preparation for the occurrence of serious risks to corporate management (large-scale accidents, disasters,
scandals, disputes, etc.), the director in charge of crisis management shall periodically review and enhancethe “Crisis Management Response Manual” and take measures to prevent the occurrence of such problems.
In addition, we will operate Business Continuity Management (BCM) to ensure business continuity, andreview the Business Continuity Plan (BCP) and related manuals in a timely manner.

(ii) In the event of a significant problem involving our corporate group, the director in charge of crisis
management shall promptly convene a meeting of the CSR Committee to discuss countermeasures, and thedesignated director in charge shall implement the countermeasures appropriately.
(4) System to ensure the efficient execution of duties by directors of our corporate group(i) Our company will maintain an internal system that enables prompt and rational decision-making throughthe appropriate use of such meeting bodies as the business execution meetings, management meetings, joint
management meetings, and the CSR Committee.
(ii) We will enhance the internal system that enables the efficient execution of duties by reviewing andimproving internal regulations such as the distribution of duties among directors, segregation of duties
among divisions, and authority of duties.
(iii) The Internal Audit Office, which reports directly to the President, will audit the business operations of theentire company, including group companies, in accordance with internal audit standards.
(5) System to ensure the appropriateness of business operations in our corporate group(i) Our company shall establish a system to ensure the appropriateness of the group’s business operations byholding business execution meetings and management meetings consisting of the principal executives(including a full-time audit and supervisory committee member) of our corporate group and joint
management meetings consisting of all executives of our corporate group, based on an annual plan, tocommunicate and exchange information through regular reports on the financial status and other important
information of the group companies.
(ii) In the event that our corporate group is found to have committed an improper act or a serious violation oflaws/regulations, the Articles of Incorporation, or internal regulations, or any other act that may be a concern
from a risk management perspective, the directors of our corporate group shall report such act to the director
in charge of crisis management. Upon receipt of the report, the director in charge of crisis management shallpromptly convene a meeting of the CSR Committee, investigate the facts, and take necessary measures toavoid or mitigate the risk.
(iii) Our corporate group shall comply with all laws and regulations, including the Code of Conduct, as
described in the “Maruyama Group Compliance Manual.”(6) Matters concerning the employees to assist the audit and supervisory committee in the event that the audit andsupervisory committee requests the appointment of such employees (assistant employees)
Our company will assign one or more dedicated employees with extensive experience in the company’sbusiness to assist the audit and supervisory committee in its duties.
(7) Matters concerning the independence of employees assisting the audit and supervisory committee from directors(i) Employees assigned to assist the audit and supervisory committee shall not be subject to the direction andorders of directors other than members of the audit and supervisory committee.
(ii) When transferring, assigning, disciplining, or otherwise changing the employees assigned to the audit andsupervisory committee, prior approval shall be obtained in coordination with the audit and supervisorycommittee.

(8) System for reporting to the audit and supervisory committee by directors and employees of our corporate group as
well as other systems related to reporting to the audit and supervisory committee(i) In the event that a director or employee of our corporate group discovers any improper act or a serious
violation of laws/regulations, the Articles of Incorporation, or internal regulations, or any other act that may
be a concern from a risk management perspective, he/she shall immediately report such matter to the director
in charge of crisis management, who shall report the matter to the audit and supervisory committee without
delay if such matter falls under the following items:
a. Matters that may cause significant damage to the company
b. Important matters related internal audit status and risk managementc. Material non-compliance, including reports through whistleblowing
d. Other important matters concerning the management of the company(ii) If an employee assigned to the audit and supervisory committee discovers a material fact regarding thepreceding paragraph, he/she shall report it directly to the audit and supervisory committee without delay.
(iii) We ensure that the reporter is protected so that he/she will not be treated disadvantageously for making
such a report.
9) Other systems to ensure that audits by the audit and supervisory committee are conducted effectively(i) The departments of our corporate group shall promptly respond to and cooperate with investigations andinformation gathering by employees assigned to the audit and supervisory committee based on the
instructions of the audit and supervisory committee.
(ii) When requested by the audit and supervisory committee to report on the execution of operations, thedirector or employee in charge will promptly make a report.
(iii) Audit and supervisory committee members may attend all important internal meetings and various
committees, including the business execution meetings, management meetings, and joint management
meetings without any conditions.
(iv) The Representative Directors, etc. and audit and supervisory committee members shall have opportunities
to exchange information on a regular basis.
(v) Audit and supervisory committee members shall be able to receive advance payment and reimbursementof expenses necessary for the performance of their duties so as not to restrain their audit duties.
(10) Establishment of a system to ensure the appropriateness of financial reporting(i) The Internal Audit Office shall appropriately evaluate the status of development and operation of the internal
control system to ensure the appropriateness of financial reporting.
(ii) In order to make the internal control system more effective in ensuring the appropriateness of financial
reporting, the Internal Control Promotion Committee shall play a central role in the development andappropriate operation of the system.

2. Overview of the operation of the system to ensure the appropriateness of business operations(1) Execution of duties by directors
We have established the Rules of the Board of Directors and internal regulations to ensure that directors act
in accordance with laws, regulations, and the Articles of Incorporation. In the fiscal year under review, theBoard of Directors met 13 times, the business execution meetings met 12 times, the management meetings met
7 times, and the joint management meetings met twice.
(2) Execution of duties by the audit and supervisory committee
Audit and supervisory committee members conduct audits in accordance with the audit plan determined by
the audit and supervisory committee, attend meetings of the Board of Directors, business execution meetings,
management meetings, and joint management meetings, and regularly exchange information withRepresentative Directors, an accounting auditor, and the Internal Audit Office to audit the execution of duties
by directors and confirm the status of the development and operation of internal controls.
(3) Internal audits
We conduct internal audits of our company and its group companies in accordance with the internal audit
plan.
(4) Internal control over financial reporting
We evaluate internal control based on the basic policy for internal control over financial reporting.

VII Policy on determination of dividends from surplus, etc.
Our basic policy is to maintain stable dividends, while taking into consideration internal reserves necessary for
future business development and projected business performance. Also, we consider it one of our importantmanagement issues to appropriately return profits to shareholders while maintaining sound management andresponding to the future business environment, and we will continue to make efforts to enhance such returns.
Based on this basic policy, our Board of Directors decided on November 14, 2022 to pay a year-end dividend of
55 yen per share, with a payment date of December 23, 2022.
(1) Year-end dividend
55 yen per share(Total of 248,883,800 yen)
(2) Record date for year-end dividend
September 30, 2022
(3) Payment start date
Friday, December 23, 2022
(4) Dividend source
Retained earnings(Note) Amounts shown in this business report are rounded down to the indicated unit.

Consolidated balance sheet(as of September 30, 2022)

Item

Amount(Assets)
Current assets
Cash and deposits
Notes receivable
Accounts receivable-trade
Electronically recorded monetaryclaimsSecurities
Merchandise and finished products
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Fixed assets
Property, plant, and equipment
Buildings and structures
Machinery, equipment and vehicles
Land
Construction in progress
Other
Intangible assets
Other
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts

Total

assets22,615,028
4,995,662
92,9684,082,149
3,062,946
51,073
5,792,479
267,127
2,855,515
1,423,581-8,476
11,844,916
7,931,377
3,298,553
1,028,892
2,657,511
537,547
408,872
52,87952,8793,860,660
2,871,728
751,451
250,678-13,198

34,459,945

Note: The figures have been rounded off to the nearest thousand yen.

[Unit: thousand yen]

Item
(Liabilities)
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Short-term borrowings
Current portion of long-termborrowings
Corporate bonds redeemable within
one year
Income taxes payable
Contract liabilities
Reserve for bonuses
Reserve for product warranties
Reserve for shareholder benefits
Other
Fixed liabilities
Corporate bonds
Long-term borrowings
Liabilities for retirement benefits
Deferred tax liabilities
Asset retirement obligation
Other
Total liabilities(Net assets)
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury shares
Accumulated other comprehensive
incomeValuation difference on availablefor-sale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Cumulative adjustment related toretirement benefits
Non-controlling interest
Total net assets
Total liabilities and net assets

Amount14,293,500
2,029,784
6,754,770
2,615,848
109,262
10,000299,325
185,362
552,845
125,084
15,592
1,595,625
2,466,494
40,00051,121
1,837,301
147,002
176,597
214,470
16,759,995
16,195,194
4,651,066
4,514,110
7,986,042-956,025
1,426,122
996,333148
232,679
196,960
78,633
17,699,950
34,495,945

Consolidated profit-(from October 1, 2021 to September 30, 2022)
and-loss statement
Item[Unit: thousand yen]AmountNet sales

39,639,995

Cost of sales

29,675,567

Gross profit

9,964,428

Selling and general administrative expenses

8,442,593

Operating income

1,521,834

Non-operating income
Interest received

647

Dividends received

80,713

Insurance benefits received

24,501

Other

113,034

218,897

Non-operating expenses
Interest paid

36,520Loss on sale of receivables

14,973Non-deductible consumption tax, etc.

13,260Other

40,043

Ordinary income

104,797
1,635,934

Extraordinary income
Gain from sale of fixed assets

4,825

Gain from sale of investment securities

19,400Gain from negative goodwill

63,85788,083

143,586

143,586

Extraordinary loss
Loss on disposal of fixed assets
Net income before taxes and other adjustments

1,580,431

Income taxes-current

356,102

Income taxes in previous fiscal years

25,484

Deferred income taxes
Net income
Net income attributable to non-controlling interest
Net income attributable to owners of parent

36,805

Note: The figures have been rounded off to the nearest thousand yen.

418,393
1,162,038
3,589
1,158,448

Balance sheet (as of September 30, 2022)
Item

Amount

Item[Unit: thousand yen]Amount(Liabilities)(Assets)
Current assets
Cash and deposits

Current liabilities

16,035,261

20,864,313

Notes payable

3,109,192

Electronically recorded obligations

4,206,811

Notes receivable

12,891

34,912

Accounts payable-trade

5,427,733

Electronically recorded monetary claims

3,043,063

Accounts receivable-trade

3,595,899

Short-term borrowings

3,350,000

Securities
Merchandise and finished products

51,073
3,962,463

Work in process

213,165

Raw materials and supplies

1,657,161

Accounts receivable-other

3,343,772

Other

1,899,693

Allowance for doubtful accounts
Fixed assets
Property, plant, and equipment-46,084
11,880,045
6,895,519

Buildings

2,969,284

Structures

122,663

Machinery and equipment

699,798

Vehicles

3,893

Tools, furniture and fixturesLand

189,0482,547,440

Lease assets

18,427

Construction in progress

344,963

Intangible assets

52,244Other

52,244

Investments and other assets

4,932,280

Investment securities

2,836,513

Shares of affiliates

1,285,816

Investment in capital

2,408

Investment in affiliates

126,026

Long-term loans to affiliates

37,900

Deferred tax assets

511,117

Other

244,784

Allowance for doubtful accounts-112,285

Total assets

32,744,359

Note: The figures have been rounded off to the nearest thousand yen.

Current portion of long-term borrowings

100,000

Accounts payable-other

1,728,610

Income taxes payable

216,225

Contract liabilities

160,544

Reserve for bonuses

417,838

Reserve for product warranties

89,537

Notes payable-equipment

2,051

Reserve for shareholder benefits

15,592Other

307,424

Fixed liabilities

2,008,826

Liabilities for retirement benefits

1,645,421

Long-term deposits payable

119,099

Asset retirement obligation

176,597

Other
Total liabilities

67,70818,044,088(Net assets)
Shareholders’ equity
CapitalCapital surplus

13,705,034
4,651,066
4,514,110

Capital reserve

1,225,143

Other capital surplus

3,288,967

Retained earnings
Other retained earnings
Reserve for reduction entry

5,495,882
5,495,882
6,040

General reserve

1,100,000

Retained earnings carried forward

4,389,841

Treasury shares
Valuation and translation adjustments
Valuation difference on available-forsale securities
Deferred gains or losses on hedges-956,025
995,236
995,087
148

Total net assets

14,700,270

Total liabilities and net assets

32,744,359

Profit-and-loss (from October 1, 2021 to September 30, 2022)
statement
Item[Unit: thousand yen]AmountNet sales

35,967,692

Cost of sales

27,970,976

Gross profit

7,996,715

Selling and general administrative expenses

7,326,301

Operating income

670,414

Non-operating income
Interest received

13,308Dividends received

82,294

Exchange gain

137,041

Other

138,170

370,815

Non-operating expenses
Interest paid

36,519Loss on sale of receivables

14,973

Other

26,778

Ordinary income

78,271
962,957

Extraordinary income
Gain from sale of fixed assets

2,572

Gain from sale of investment securities

19,40021,972

143,407

143,407

Extraordinary loss
Loss on disposal of fixed assets
Net income before taxes

841,523

Income taxes-current

267,234

Income taxes in previous fiscal years
Deferred income taxes
Net income

27,098-57,762

Note: The figures have been rounded off to the nearest thousand yen.

236,570
604,952

Certified copy of the audit report on consolidated financial statements by accounting auditor
Audit Report by Independent Auditor

November 14, 2022

To the Board of Directors of Maruyama Mfg. Co., Inc.
Seinan Audit Corporation
Minato-ku, Tokyo
Representative
Partner,
Executive
MemberExecutive
MemberCertifiedPublicAccountant Takeshi Onogi
CertifiedPublicAccountant

Miho Toriumi

Audit opinions
Our audit corporation audited the consolidated financial statements (consolidated balance sheet, consolidated
profit-and-loss statement, consolidated statements of changes in net assets, and notes to them) of Maruyama
Mfg. Co., Inc. for the consolidated fiscal year from October 1, 2021 to September 30, 2022, in accordance with
Article 444, Paragraph 4 of the Companies Act.
Our audit corporation confirmed that the above consolidated financial statements comply with the corporate
accounting standards that are generally considered as fair and appropriate in Japan and appropriately indicate
the statuses of assets, profit, and loss of the corporate group composed of Maruyama Mfg. Co., Inc. and its
consolidated subsidiaries in the period covered by said consolidated financial statements in all important
aspects.
Grounds for the audit opinions
Our audit corporation conducted this audit, in accordance with the audit standards that are generally
considered as fair and appropriate in Japan. The responsibilities of our audit corporation in the audit standards
are described in the section titled “Responsibilities of auditors in the audit of consolidated financial statements.”
Our audit corporation is independent of your company and consolidated subsidiaries in accordance with theJapanese regulations regarding professional ethics, and fulfills our ethical responsibilities as an auditor. Our
audit corporation believes that we have obtained a sufficient amount of appropriate auditing evidence forexpressing opinions.
Emphasized items
As mentioned in the section titled “Important subsequent events,” your company and some consolidated
subsidiaries changed the system for lump-sum retirement benefits to the defined-contribution pension system
on October 1, 2022.
This does not affect the opinions of our audit corporation.
Other items
Other items are the business report and attached statements. Employers are responsible for producing anddisclosing them. The audit and supervisory committee is responsible for overseeing the execution of duties of
directors in determining and operating the process of reporting the other items.
Our audit corporation’s opinions about the consolidated financial statements do not cover the other items.
Our audit corporation does not express opinions about them.

When auditing the consolidated financial statements, our audit corporation is responsible for reading throughthe other items, checking whether or not there is any serious discrepancy between the contents of the other items
and the consolidated financial statements or our knowledge obtained through the audit, and also checking
whether or not there is any sign of significant errors in the other items other than serious discrepancies.
If our audit corporation finds any significant error in the other items during our audit, we are required toreport this fact.
There are no other items to be reported regarding the other items.
Responsibilities of employers and the audit and supervisory committee with respect to the consolidated financial
statements
Employers are responsible for producing and appropriately indicating the consolidated financial statementsin accordance with the corporate accounting standards that are generally considered as fair and appropriate inJapan. Their responsibilities include the establishment and operation of an internal control system that is
considered necessary by them for producing and appropriately indicating the consolidated financial statementsthat do not include serious false contents due to misconduct or error.
At the time of production of the consolidated financial statements, employers are responsible for judging
whether or not it is appropriate to produce the consolidated financial statements under the going concern
assumption, and disclosing the going concern items, if it is necessary to do so in accordance with the corporate
accounting standards that are generally considered as fair and appropriate in Japan.
The audit and supervisory committee is responsible for overseeing the execution of duties of directors indetermining and operating a financial reporting process.
Responsibilities of auditors when auditing the consolidated financial statements
Auditors are responsible for obtaining a reasonable guarantee about whether the consolidated financial
statements have no serious false contents due to misconduct or error through their audits, and expressing theiropinions about the consolidated financial statements from an independent viewpoint in their audit reports. False
contents may be produced through misconduct or error. If such false contents are likely to individually orcollectively affect the decision making of those who have read the consolidated financial statements, they are
considered as material.
Auditors are supposed to make professional judgments and conduct the following while maintaining
professional skepticism in the auditing process, in accordance with the auditing standards that are generally
considered as fair and appropriate in Japan.
To identify and evaluate material false indication risks due to misconduct or error, and then design andimplement auditing procedures to cope with the material false indication risks. The selection and applicationof auditing procedures depend on the judgments of auditors. Furthermore, auditors obtain a sufficient volume
of appropriate auditing evidence for expressing their opinions.
The objective in auditing the consolidated financial statements is not to express opinions about the effectivenessof internal control, but auditors discuss the internal control related to audits, in order to design appropriate
auditing procedures according to situations when evaluating risks.
To evaluate the appropriateness of the accounting policy and its application method adopted by employers, therationality of estimation in accounting carried out by employers, and the validity of related notes.

To determine whether or not it is appropriate for employers to produce the consolidated financial statements
under the going concern assumption and whether or not there are material uncertainties over the events orsituations that would cause serious doubts about the going concern assumption, based on the obtained auditing
evidence. If there is any material uncertainty over the going concern assumption, auditors need to give
instructions about the notes of the consolidated financial statements, and if the notes of the consolidated
financial statements regarding material uncertainties are not appropriate, auditors need to express theirmodified opinions of the consolidated financial statements in their audit reports. The conclusion of auditors
is based on the auditing evidence they have obtained before the date of submitting their audit report, but there
is a possibility that an enterprise will become unable to keep existing as a going business, according to future
events or situations.
To check whether or not the indication and notes of the consolidated financial statements comply with thecorporate accounting standards that are generally considered as fair and appropriate in Japan and whether or
not the indication, structure, and contents of the consolidated financial statements, including related notes,
and transactions and accounting events based on the consolidated financial statements are indicatedappropriately.
To obtain a sufficient volume of appropriate auditing evidence regarding the financial information of yourcompany and consolidated subsidiaries, in order to express opinions about the consolidated financial
statements. Auditors are responsible for giving instructions on, supervising, and implementing the audit ofconsolidated financial statements. Auditors are responsible for their respective audit opinions.
Auditors report to the audit and supervisory committee the ranges of audits they planned, their dates, material
findings in audits, such as serious defects in internal control founded during audits, and other items demandedby the auditing standards.
Auditors report to the audit and supervisory committee the observance of the Japanese regulations on
professional ethics regarding independence, items that are reasonably considered to affect the independence ofauditors, and the details of safeguard measures for removing or alleviating constraints if any.
Interests
Between your company or consolidated subsidiaries and our audit corporation or executive members, there
are no interests that should be described in accordance with the Certified Public Accountants Act.

Certified copy of the audit report by accounting auditor
Audit Report by Independent Auditor

November 14, 2022

To the Board of Directors of Maruyama Mfg. Co., Inc.

Seinan Audit Corporation
Minato-ku, Tokyo
Representative
Partner,
Executive
MemberExecutive
MemberCertifiedPublicAccountant Takeshi Onogi
CertifiedPublicAccountant

Miho Toriumi

Audit opinions
Our audit corporation audited the financial statements (non-consolidated balance sheet, non-consolidated
profit-and-loss statement, non-consolidated statements of changes in net assets, and notes to them) and attachedstatements (“the non-consolidated financial statements”) of Maruyama Mfg. Co., Inc. for the 87th fiscal year
from October 1, 2021 to September 30, 2022, in accordance with Article 436, Paragraph 2, Item 1 of theCompanies Act.
Our audit corporation confirmed that the above non-consolidated financial statements comply with thecorporate accounting standards that are generally considered as fair and appropriate in Japan and appropriately
indicate the statuses of assets, profit, and loss in the period covered by said non-consolidated financial
statements in all important aspects
Grounds for the audit opinions
Our audit corporation conducted this audit, in accordance with the audit standards that are generally
considered as fair and appropriate in Japan. The responsibilities of our audit corporation in the audit standards
are described in the section titled “Responsibilities of auditors in the audit of non-consolidated financial
statements.” Our audit corporation is independent of your company in accordance with the Japanese regulations
regarding professional ethics, and fulfills our ethical responsibilities as an auditor. Our audit corporation
believes that we have obtained a sufficient amount of appropriate auditing evidence for expressing opinions.
Emphasized items
As mentioned in the section titled “Important subsequent events,” your company changed the system forlump-sum retirement benefits to the defined-contribution pension system on October 1, 2022.
This does not affect the opinions of our audit corporation.
Other items
Other items are the business report and attached statements. Employers are responsible for producing anddisclosing them. The audit and supervisory committee is responsible for overseeing the execution of duties of
directors in determining and operating the process of reporting the other items.
Our audit corporation’s opinions about the non-consolidated financial statements do not cover the other items.
Our audit corporation does not express opinions about them.

When auditing the non-consolidated financial statements, our audit corporation is responsible for reading
through the other items, checking whether or not there is any serious discrepancy between the contents of theother items and the non-consolidated financial statements or our knowledge obtained through the audit, and also
checking whether or not there is any sign of significant errors in the other items other than serious discrepancies.
If our audit corporation finds any significant error in the other items during our audit, we are required toreport this fact.
There are no other items to be reported regarding the other items.
Responsibilities of employers and the audit and supervisory committee with respect to the non-consolidated
financial statements
Employers are responsible for producing and appropriately indicating the non-consolidated financial
statements in accordance with the corporate accounting standards that are generally considered as fair andappropriate in Japan. Their responsibilities include the establishment and operation of an internal control systemthat is considered necessary by them for producing and appropriately indicating the non-consolidated financial
statements that do not include serious false contents due to misconduct or error.
At the time of production of the non-consolidated financial statements, employers are responsible for judging
whether or not it is appropriate to produce the non-consolidated financial statements under the going concern
assumption, and disclosing the going concern items, if it is necessary to do so in accordance with the corporate
accounting standards that are generally considered as fair and appropriate in Japan.
The audit and supervisory committee is responsible for overseeing the execution of duties of directors indetermining and operating a financial reporting process.
Responsibilities of auditors when auditing the non-consolidated financial statements
Auditors are responsible for obtaining a reasonable guarantee about whether the non-consolidated financial
statements have no serious false contents due to misconduct or error through their audits, and expressing theiropinions about the non-consolidated financial statements from an independent viewpoint in their audit reports.
False contents may be produced through misconduct or error. If such false contents are likely to individually orcollectively affect the decision making of those who have read the non-consolidated financial statements, they
are considered as material.
Auditors are supposed to make professional judgments and conduct the following while maintaining
professional skepticism in the auditing process, in accordance with the auditing standards that are generally
considered as fair and appropriate in Japan.
To identify and evaluate material false indication risks due to misconduct or error, and then design andimplement auditing procedures to cope with the material false indication risks. The selection and applicationof auditing procedures depend on the judgments of auditors. Furthermore, auditors obtain a sufficient volume
of appropriate auditing evidence for expressing their opinions.
The objective in auditing the non-consolidated financial statements is not to express opinions about theeffectiveness of internal control, but auditors discuss the internal control related to audits, in order to design
appropriate auditing procedures according to situations when evaluating risks.
To evaluate the appropriateness of the accounting policy and its application method adopted by employers, therationality of estimation in accounting carried out by employers, and the validity of related notes.

To determine whether or not it is appropriate for employers to produce the non-consolidated financial
statements under the going concern assumption and whether or not there are material uncertainties over the
events or situations that would cause serious doubts about the going concern assumption, based on theobtained auditing evidence. If there is any material uncertainty over the going concern assumption, auditors
need to give instructions about the notes of the consolidated financial statements, and if the notes of theconsolidated financial statements regarding material uncertainties are not appropriate, auditors need toexpress their modified opinions of the consolidated financial statements in their audit reports. The conclusionof auditors is based on the auditing evidence they have obtained before the date of submitting their audit
report, but there is a possibility that an enterprise will become unable to keep existing as a going business,according to future events or situations.
To check whether or not the indication and notes of the non-consolidated financial statements comply with thecorporate accounting standards that are generally considered as fair and appropriate in Japan and whether or
not the indication, structure, and contents of the non-consolidated financial statements, including related
notes, and transactions and accounting events based on the non-consolidated financial statements areindicated appropriately.
Auditors report to the audit and supervisory committee the ranges of audits they planned, their dates, material
findings in audits, such as serious defects in internal control founded during audits, and other items demandedby the auditing standards.
Auditors report to the audit and supervisory committee the observance of the Japanese regulations on
professional ethics regarding independence, items that are reasonably considered to affect the independence ofauditors, and the details of safeguard measures for removing or alleviating constraints if any.
Interests
Between your company and our audit corporation or executive members, there are no interests that should be
described in accordance with the Certified Public Accountants Act.

Certified copy of the audit report by the audit and supervisory committee
Audit Report
The audit and supervisory committee audited the execution of duties by directors in the 87th fiscal year from October 1, 2021 to September 30,
2022. The method and results thereof are as follows.
1. Method and details of the audit
The audit and supervisory committee regularly received reports about the details of the resolutions of the Board of Directors regarding (b) and(c) of Article 399-13, Paragraph 1, Item 1 of the Companies Act and the statuses of establishment and operation of a system developed based on
said resolutions (the internal control system) from directors, employees, and others; demanded explanations when necessary, expressed our
opinions, and conducted an audit with the following method.
(i) In accordance with the auditing policy, the allocation of duties, etc. specified by the audit and supervisory committee, we attended important
meetings, received reports about the execution of duties of directors, employees, and others from them, demanded explanations whennecessary, browsed documents on important decisions, etc., and investigated the situations of business operations and assets at theheadquarters and major offices, in cooperation with the Internal Audit Department and other departments in charge of internal control, while
utilizing telephone lines, the Internet, etc. For subsidiaries, we communicated and exchanged information with the directors, audit andsupervisory committee members, and others of subsidiaries, and received business reports from subsidiaries when necessary.
(ii) We oversaw and checked whether the accounting auditor maintains its independent position and conducts appropriate audits, received reportson the status of execution of duties of the accounting auditor from them, and demanded explanations when necessary. In addition, theaccounting auditor informed us that a “system for ensuring appropriate execution of duties (items mentioned in Article 131 of the Regulation
on Corporate Accounting)” has been established in accordance with “the Quality Control Standards for Audit (Business Accounting Council
on October 28, 2005)” and so on, and we demanded explanations when necessary.
Based on the above methods, we examined the business report and attached statements, non-consolidated financial statements (non-consolidatedbalance sheet, non-consolidated profit-and-loss statement, non-consolidated statements of changes in net assets, and notes to the non-consolidated
financial statements), attached statements, and consolidated financial statements (consolidated balance sheet, consolidated profit-and-loss
statement, consolidated statements of changes in net assets, and notes to consolidated financial statements) for the relevant fiscal year.
2. Results of the audit(1) Results of the audit of the business report, etc.
(i) We confirmed that the business report and attached statements comply with laws, regulations, and the Articles of Incorporation andaccurately describe the situation of the company.
(ii) There is no misconduct related to the execution of duties by directors or serious violation of laws, regulations, or the Articles ofIncorporation.
(iii) We confirmed that the resolution of the Board of Directors regarding the internal control system is appropriate. In addition, there are
no items to be pointed out in the business report regarding said internal control system or execution of duties by directors.
(2) Results of the audit of the non-consolidated financial statements and attached statements
We confirmed that the method and results of the audit conducted by Seinan Audit Corporation are appropriate.
(3) Results of the audit of the consolidated financial statements
We confirmed that the method and results of the audit conducted by Seinan Audit Corporation are appropriate.
November 14, 2022

Audit and supervisory committee of Maruyama Mfg. Co., Inc.
Full-time audit and supervisorycommittee member (Outside
Director)
Audit and supervisory committee
member (Outside Director)
Audit and supervisory committee
member (Outside Director)

Hiroyuki Hatano
Atsushi Toki
Takashi Sekigawa

Topics

Establishment of “Fine Bubble Tech Co., Ltd.,” a limited liability company with Shibata Co., Ltd.
Our company has been putting energy into the development and sale of products based on “ultrafine bubbles” for several
years.
This time, we have established a new company named “Fine Bubble Tech Co., Ltd.” for researching and developing
ultrafine bubble products through the joint investment by our company and Shibata Co., Ltd., which develops ultrafine
bubble products, and started business operations on October 1, 2022.
The purpose of Fine Bubble Tech Co., Ltd. is to design and develop new ultrafine bubble products by utilizing Shibata’s
technology for generating ultrafine bubbles and our pump technology.
From now on, we will develop products for our daily lives and industries, and collaborate with research institutes andexperts, to popularize and distribute ultrafine bubble products more broadly.
Corporate profile
Corporate name: Fine Bubble Tech Co., Ltd.
Location: 3-4-15 Uchikanda, Chiyoda-ku, Tokyo
Capital: 10 million yen
Contribution ratio: 50% for Shibata Co., Ltd. and 50% forMaruyama Mfg. Co., Inc.
Representative Director and President: Takaharu Uchiyama
Representative Director and President: Yoshiki Shibata
Date of establishment: September 20, 2022
Start of operation: October 1, 2022

Release of the ultrafine bubble showerhead “habiller”
Our company developed and released “habiller,” a showerhead that can produce ultrafine bubbles.
“habiller” was developed for general consumers, as our company will keep concentrating on the ultrafine bubble business as the mainstay.
Three kinds of water streams can be generated according to purpose of use, and ultrafine bubbles are produced in all modes. 100 million
ultrafine bubbles per 1 ml are produced with a bubble diameter of around 0.1 μm, which can reach the depth of each pore to remove excessive
sebum and dirt while moisturizing hairs and the skin.
Our company will continue constant endeavors to cultivate new fields and markets.

Rainy stream

Silky stream

Line stream

Water volume is the largest, and this stream
embraces the whole body gently with thecharacteristic soft texture.

This stream is characterized by its thinness
and intensity, and can be expected tomassage the skin if the showerhead
approaches the skin.

Water pressure is moderate, and the stream isstraight. Users can feel that they are taking a shower
sufficiently, so this stream mode is suited forwarming a broad body part, such as the back.

1. 100 million bubbles we achieved as a result of pursuit of gentle skinand hair treatment
2. Simple design with a large round shape
3. Easily installed just by replacing your old showerhead with it
habiller

We donated the showerhead “habiller” to Togane City.
Our company donated 18 “habiller” ultrafine bubble showerheads to Togane City.
The donated showerheads will be installed in the shower rooms of Togane Arena. If a disasteroccurs, Togane Arena will be used as an evacuation center accommodating 1,070 evacuees.
Therefore, we hope that habiller will be installed in the facility as an environmental
improvement item, to help maintain the hygienic environment.
Our company will continue activities for contributing to local communities.