December 9, 2021

To All Concerned Parties

Company: CHINO CORPORATION
Representative: Mikio Toyoda, President and CEO(Securities code: 6850, First Section of the Tokyo Stock Exchange)

Contact: Kazumasa Ohmori, Executive Officer, Executive
Manager, Business Management Headquarters(Tel: +81-3-3956-2115)［Delayed］Plan to Meet Continued Listing Criteria for the New Market Segment
Regarding the restructuring of the market segments operated by Tokyo Stock Exchange, Inc. scheduled forApril 2022, CHINO CORPORATION (“the Company”) today submitted an application to select the Prime
Market for its listing. As the Company had not yet met the continued listing criteria for the Prime Market as of
the transition date of record (June 30, 2021), it hereby notifies that it has prepared a plan to meet continued
listing criteria for new market segment, the details of which are provided below.
1. Status of Group Satisfaction of Continued Listing Criteria and Plan Timeframe
The Company’s satisfaction of Prime Market continued listing criteria as of the transition base date is thatthe number of tradeable shares and tradeable share ratio, calculated based on the state of distribution of theCompany’s share certificates, etc. as understood by Tokyo Stock Exchange at the point of record and otherfactors, meet the respective criteria.
But the tradeable share market cap and average daily trading value do not meet the respective criteria.
We are pursuing various initiatives aimed at meeting the continued listing criteria for tradeable sharemarket cap and average daily trading value by fiscal year ending March 31, 2027(the final year of Midterm plan 2026).
2. Basic Policy on Initiatives Aimed at Satisfaction of Continued Listing Criteria, Issues, and Initiative Details
The basic policy, issues, and details of initiatives pertaining to improvement in the tradeable share market
cap and average daily trading value to meet the Prime Market continued listing criteria are described in theattached Plan to Meet the Continued Listing Criteria.

Plan to Meet Continued Listing Criteria for
the New Market Segment

CHINO CORPORATION(Securities Code: 6850)

December 9, 2021
Copyright© 2021 CHINO Corporation. All Rights Reserved

1Agenda
1. Status of Group Satisfaction of Continued Listing Criteria
and Plan Timeframe
2. Basic Policy to Meet the Continued Listing Criteria
3. CHINO’s Issues and Initiatives
4. Increase in financial results through Medium-Term
Management Plan
5. Strengthen investor relations
6. Initiative Aimed at Improving Tradeable Share Ratio

Copyright© 2021 CHINO Corporation. All Rights Reserved2

1. Status of Group Satisfaction of Continued ListingCriteria and Plan Timeframe【 Status of Group Satisfaction of Continued Listing Criteria 】

CHINO CORPORATION (“the Company”) has not met the Prime Market continued listing criteria
for tradeable share market cap and tradeable share ratio as of thetransition base date (June 30, 2021).
Prime Market
Continued Listing Criteria

The Company
Figures

Status of Group
Satisfaction

No. of Shareholders

800 units

3,920 units〇

No. of Tradeable Shares

20,000 units

50,437 units〇

Tradeable Share Market Cap¥ 10 billion¥ 7.23 billion×

Tradeable Share Ratio

35 %54.4 %〇

Average Daily Trading Value¥ 20,000 thousand¥ 19,843 thousand×【 Plan Timeframe 】

The period of the plan for meeting the continued listing criteria is defined as the period until theend of the final fiscal year, fiscal 2026 (i.e. end of March 2027), of our Medium-Term
Management Plan 2026 (for fiscal 2021 - fiscal 2026).
For fulfilling the criteria as early as possible ahead of schedule, we will carry out various actions
specified in this plan.
Fiscal year ending March 31, 2027 (fiscal 2026) is the final year our “Mid-termplan 2026”(fiscal 2021 – fiscal 2026).
We have established this as the plan timeframe for meeting the continued listing criteria.

* We published the medium-term plan for six years from April 2021 to March 2027 on March 9, 2021.
https://www.chino.co.jp/wp/wp-content/uploads/20210513.pdf* The Medium-Term Management Plan 2026 (for fiscal 2021 - fiscal 2026) is hereinafter referred to as the Medium-term Management Plan.
Copyright© 2021 CHINO Corporation. All Rights Reserved32. Basic Policy to Meet the Continued Listing Criteria【 Status of Group Satisfaction ofTradeable Share Market Cap Criteria 】

Tradeable Share
Market Cap

Prime Market
Continued ListingCriteria

The Company Figures¥ 10 billion¥ 7.23 billion“Tradeable Share Market Cap” ＝ “Market Cap” × “Tradeable Share Ratio”
The Medium-term Management Plan has four basic strategies: first, further development
and expansion of growth areas; second, enhancement of core businesses and value
creation; third, strengthening of the foundations and expansion of business overseas; andfourth, establishment of a resilient management base. We will carry out priority measures
based on these strategies and step up investor relations (IR) activities to increase ourrecognition in the market with a view to boosting our corporate value.
According to the Tokyo Stock Exchange's initial assessment, our tradeable share ratio is54.4% and this meets the relevant requirement for listing on the Prime market. We will
additionally implement efforts to increase the tradeable share ratio in a bid to raise thetradeable share market cap.

【 Status of Group Satisfaction of
Daily Trading
Average Daily Trading Value Criteria 】 AverageValue

Prime Market
Continued ListingCriteria

The Company Figures¥ 20,000 thousand¥ 19,843 thousandTo fulfill the requirement in tradeable share market cap in mentioned above, we will
accelerate implementation of the Medium-term Management Plan in order tocontinuously increase corporate value. We believe that this action will help us
sufficiently meet the requirement in daily average transaction value.
Copyright© 2021 CHINO Corporation. All Rights Reserved43. CHINO’s Issues and Initiatives【 Status of Group Satisfaction of Tradeable Share Market Cap Criteria 】(1) Issues and Initiatives Aimed at Improving Market Cap
We are aware that it is our priority issues to continuously boost our corporate
value and to increase our recognition in the stock market in order to gain an
appropriate evaluation.
To address these issues, we will be taking the following measures.
(1) Carry out the Medium-term Management Plan to improve financial results(2) Strengthen investor relations(3) Increase return to shareholders (including a dividend increase throughmeasure (1) and flexible acquisition of treasury shares)(2) Issues and Initiatives Aimed at Improving Tradeable Share Ratio
We understand it is vital to improve liquidity of our shares. In particular, in the
aspect of cross-holding shares, we will review cross-shareholdings with otherlisted companies, banks and others owning our shares. In addition, we will
pursue measures to increase the number of individual shareholders and thenumber of shares they hold.

Copyright© 2021 CHINO Corporation. All Rights Reserved54. Increase in Financial Results through Medium-Term
Management Plan
FY2020

FY2026

Net sales (Billion yen)

21.08

30.00

Operating profit (Billion yen)

1.13

2.70

Operating margin(%)

5.4

9.0

Overseas sales (Billion yen)

3.51

7.00

ROE （%）

8.1

10.0

ROA （Operating profit: %）

4.0

8.0

(Actual)(Goal)

Increase corporate value
Attain continuous growth2026

90th anniversary of foundation

Phase 2

FY20202023
Phase 1

Accelerate growth

Solidify foundations for growth
Copyright© 2021 CHINO Corporation. All Rights Reserved

64. Increase in Financial Results through Medium-Term
Management Plan
■ Four basic strategies under the Medium-Term Management Plan

Increase
corporate value
for a medium andlong term
Contribution tobuilding of a carbonfree society

Four basic strategies

Build a path forcontinued growth

Further development and expansion of growth
Solution
areas
The Group will generate group synergies and accelerate thedevelopment and provision of unique solutions for new growthareas.
Enhancement of core businesses and value
Integration
creation
The Group will enhance its core businesses through the
integration of original technologies and services and create newvalue with customers.
Strengthening of foundations and expansion ofRelationshipbusiness overseas
The Group will increase its earning potential by strengthening
the relationship between domestic and overseas business anddeploying regional strategies.

Establishment of resilient management
Innovation & Speedbase
The Group will enhance the resilience of its human resources,
organizations, ICT, governance and finances to support the creation of
corporate value, innovation, and agile management.

Sustainability management
Response to ESG issues

Contribution to the SDGs

Copyright© 2021 CHINO Corporation. All Rights Reserved

7

4. Increase in Financial Results through Medium-Term
Management Plan
■Medium-Term Management Plan (basic strategy 1)

Further development and expansion of growth areas

Solution

The Group will generate group synergies and accelerate the development and provision of uniquesolutions for new growth areas.

▶ Realizing a sustainable society
Hydrogenutilization
technologis

Semiconducto
rs andelectronic
components

Nextgeneration
batteries

New material

Medical drugs
and food
management

Logistics

Towards a safe and secure society＜Background＞

Change in industrial structure· Change in energy demand structure· Increasingly stringent environmental regulations· Breakthroughs in information and communication· Accelerated actions towards realizing a carbon-free society· Massive growth of next-generation battery markets

technologies (ICT)· Fast progress of digital transformation (DX)· Growing needs for health and longevity· Development of life science industries

Opportunities for growthand expansion· Innovation in logistics

Copyright© 2021 CHINO Corporation. All Rights Reserved

84. Increase in Financial Results through Medium-Term
Management Plan
■Medium-Term Management Plan (basic strategy 2)

Enhancement of core businesses and value creation

Integration

The Group will enhance its core businesses through the integration of original technologies and services
and create new value with customers.

▶ Features and reliability for advancing measurement,
control and monitoring to the next stage
Original technologies(features)Services (reliability)

Create (or co-create) exciting value＜Background ＞

Review on our own resources· Temperature standards technologies· Temperature measurement
technologies
Advance distinctive· Infrared measurement
original technologies
technologies· Humidity and gas measurement
technologies· Loop solutions· Instrumentation systems

Reliability of Chino's temperaturetechnologies and services that areclose to customers

Strengthen service capabilities.
Achieve engineering that excites
customers

Copyright© 2021 CHINO Corporation. All Rights Reserved

94. Increase in Financial Results through Medium-Term
Management Plan
■Medium-Term Management Plan (basic strategy 3-(1))
Strengthening of foundations and expansion of business overseas

Relationship

The Group will increase its earning potential by strengthening the relationship between domestic andoverseas business and deploying regional strategies.

▶ Cultivate global niche markets in collaboration
between operations in Japan and overseas and between
production, sales and development teams.
＜Background＞· Stagnant global economy under the
pandemic· U.S.-China dispute and nationalism· Growth of China, India and ASEAN
countries· Implement segment strategies for separate
countries and regions.
· Strengthen systems and develop humanresources.
· Construct global infrastructure with the use of ICT.
· Continuously increase our presence in Asianmarkets.

Copyright© 2021 CHINO Corporation. All Rights Reserved104. Increase in Financial Results through Medium-Term
Management Plan
■Medium-Term Management Plan (basic strategy 3-(2))
Regional
strategies
Europe

South
Korea

· Increase demand from environmental andenergy markets.
· Strengthen the network of distributors.

Shanghai Dahua-CHINO Instrument Co., Ltd.

Korea CHINO Corporation
UnitedStatesCHINO Instrumentation (Kunshan)Co., Ltd
China· Increase demand from markets of electric andelectronic components and semiconductors.
· Step up sales efforts in new material and green
industry markets.

· Increase demand from markets ofautomobiles, aircraft components
and semiconductors.
· Develop into a core production
plant in the Asia business.

· Increase licensed production ofdevices for environmental andenergy markets.
· Change selling approaches with theuse of e-commerce sites.

CHINO Works America Inc.
Overseas
Business
Division

CHINO Corporation India Private Limited
CHINO Corporation (Thailand) Limited
India· Increase demand from markets of automobiles,
aircraft components and pharmaceuticals.
· Evolve into a basis for cultivating Middle East andAfrica markets.

ASEAN· Increase demand from the markets ofautomotive components, food and newmaterials.
· Expand calibration and instrumentation
services.

Copyright© 2021 CHINO Corporation. All Rights Reserved

114. Increase in Financial Results through Medium-Term
Management Plan
■Medium-Term Management Plan (basic strategy 4-(1))

Establishment of resilient management baseInnovation & Speed

The Group will enhance the resilience of its human resources, organizations, ICT, governance andfinances to support the creation of corporate value, innovation, and agile management.

▶ Respond swiftly and flexibly to changes in the super-VUCA
era to ambitiously carry out management strategies based on
creation of shared value (CSV)＜Background＞
Radical changes in social andeconomic systems· Acceleration of the decline in birth rate
and aging of the population· Diversification of values and work styles· Shift to a full-scale digital society· Rise of multi-stakeholder capitalism· Occurrence of the COVID-19 pandemic
It is essential to build a flexible and resilient
management base for accurately
understanding social needs and issues andquickly responding to them.

Construct and enhance systems andfunctions on the basis of:▫Establishing personnel management aimed
at improving engagement;▫ Ensuring quickness and efficiency inbusiness execution through DX;▫ Advancing corporate governance; and▫ Implementing financial strategies with agreater focus on capital efficiency
improvement
in a way that conforms to the vision andthe business strategies. Keep creating newvalue while meeting expectations ofstakeholders.

Copyright© 2021 CHINO Corporation. All Rights Reserved

124. Increase in Financial Results through Medium-Term
Management Plan
■Medium-Term Management Plan (basic strategy 4-(2))
Implementation ofCreation of innovation
speedy management
Establishment of resilient management base

Personnel
management

IC T b a s e

Governance· Recruit and develop
professionals whopractice themanagement vision.

· Build and improve a
digital platform forbusiness process
reengineering (BPR).

· Create workplaceenvironments
offering job
satisfaction to boost
the vigor of theorganization.

· Introduce the latest
information andcommunication
solutions that supports
DX progress.

· Increase thetransparency andsoundness ofmanagement toenhance governance.

· Reconstruct humanresources systems
to achieve fairness
and higher
productivity.

持続的な成長· Provide education for
the effective
companywide use of ICT
and bolstering security.

· Make more
information
available throughconstructive
dialogues withshareholders andinvestors.
· Strengthen grouprisk management
matched withenvironmental
changes andbusiness expansion.

Copyright© 2021 CHINO Corporation. All Rights Reserved

Financials t ra t e g i es

· Execute financial
strategies based on
soundness with anemphasis on growthpotential and capitalefficiency.
- Seek an optimal
capital composition toensure financial health.
- Positively invest in
growth with attention
paid to investment
efficiency.
- Provide stabledividends with a payout
target of at least 30%.

13

4. Increase in Financial Results through Medium-Term
Management Plan
■Implementation of sustainability management
The Group aims to contribute to the realization of environmental and social sustainability byconducting business activities which provide both economic and social value, focusing on therealization of “decarbonization” and a “safe and secure society.”-to the realization of acarbon-free society

The Chino Group pushes the limits ofmeasurement, control and monitoring technologies● Expand products and solutions designed
to resolve environmental issues.
Hydrogen utilization, next-generation● Make efficient use ofresources and energy.
● Take actions to preserve
biological diversity.

● Contributing to local

communities● Strengthen supply chains andalliances.

Contribute to theresolution of global
environment andenergy issues.

● Help achieve a safe and secure society
through medical drugs, food manage● Respond to wide-ranging needs in actionsfor Society 5.0 or a smart
Provide safety andexcitement with
distinctive
technologies.

Actions
towards
Co-existence andFair andshared prosperity solving
transparent
with all
ESG issues corporate
stakeholders
activities● Diversity management● Carry out work style reforms and healthmanagement.

● Provide temperature standards
technologies and calibration services
that serve as bases for all industries.

● Advance corporate governance.
● Implement strict compliance.
● Enhance the group risk
management system.

● Step up IR/SR activities and information
distribution.
● Distribute economic value properly.

Copyright© 2021 CHINO Corporation. All Rights Reserved

14

4. Increase in Financial Results through Medium-Term
Management Plan
■ Basic policy on financial (cash flow) management
Carry out financial strategies based on soundness with an emphasis on growth potential and capitalefficiency■ Positively invest in
growth and improve
capital profitability

Create operating cash flows
Depreciation

Net profit
Increase capitalefficiency· Reduce working capital (improve cash conversion cycle (CCC))· Reduce cross-shareholdings

Increase returnto shareholders
Payout ratio of
30% or higher

Optimizeliabilities

Invest in growing
domains and futureInterest-bearing
Debts

Invested capital

Shareholders'equityIncrease corporate value for a medium

Capital costs

WACC＜ROICROE of 10%
or higher

Copyright© 2021 CHINO Corporation. All Rights Reserved

ReturnSustainable growth15

5. Stepping Up IR Activities■ Improving information disclosure
We will continuously improve information disclosure for the purpose of enhancing
corporate value over the medium to long term.
With regard to information disclosure in English to overseas investors, we alreadypublish consolidated financial results and notices of ordinary general meetings ofshareholders in English. We will work to successively publish other disclosure
documents, including securities reports, in English.
■ Increasing market recognition
This fiscal year, we will start to hold briefings and distribute briefings online forindividual investors (online distributions scheduled to start late in December 2021) in
addition to continuing to organize two financial results briefings for institutional
investors and analysis at real venues and in an online format (live audio distribution)
each year.
We will also expand opportunities to present our company online, on the radio, on
paper media and in many other media.
■ Bolstering constructive dialogues
We will increase dialogues at the time of holding financial results briefings for
institutional investors and analysis. In addition, we will actively increase
opportunities of individual meetings with institutional investors to step up
constructive dialogues.

Copyright© 2021 CHINO Corporation. All Rights Reserved

166. Efforts to Increase Tradeable Share Ratio
Composition of tradeable shares and other shares(according to the results of an initial assessment by the Tokyo Stock Exchange)

16%
2%
6%
9%
1%
11%

55%

9%

Tradeable shares
Shares owned by major
shareholders
Shares owned by officers
and others
Treasury shares
Shares owned by ordinarybanks
Shares owned by insurancecompanies
Shares owned by industrial
corporations

6%

48%

Individuals and others
Trust banks, life insurancecompanies, etc.
Bank

16%

Securities companies
Other Japanese corporations

1%
6%

Corporations outside Japan, etc.

14%

Treasury stock■ Reducing cross-shareholdings
We will accelerate the reduction of cross-shareholdings with listed companies, banks
and others while respecting their policies on cross-shareholdings and continuously
reviewing the purposes and effects of holding their shares.
■ Efforts to increase individual shareholders
For the purpose of encouraging more individual investors to hold our shares and toincrease the number of shares they hold, we will carry out the above actions to step up IR
activities and increase the number of tradeable shares.
Copyright© 2021 CHINO Corporation. All Rights Reserved

17