FY2023

Presentation Material

Highlights

1

Results for the Fiscal Year Ended December 31, 2023






2

Financial Forecast for the Fiscal Year Ending December 31, 20243

Net sales increased year on year to a record high, driven by the strong sales of the writing instrument businessin Japan and the Americas and the positive impact of the yen’s depreciation.
Operating profit decreased as total costs increased, pushed up mainly by higher raw material costs, as prices
remained at high levels, and by higher labor costs.
We will pay a year-end dividend of 50 yen per share, which, together with the interim dividend of 50 yen, willbring the annual dividend to 100 yen per share (a payout ratio of 28.9%), an increase of 10 yen from theprevious fiscal year.

We expect 121 billion yen in net sales, 20 billion yen in operating profit, and 14 billion yen in profit attributableto owners of parent.
We remain focused on achieving the numerical targets for the final year of the Medium-Term Management
Plan.

Medium-Term Management Plan ProgressIn FY2023, we made steady progress in laying the foundation for the 2030 Vision of becoming the No. 1 brandin the global writing instrument market and growing the sales of our non-writing instrument businesses.

4

New Management Structure

Effective March 28, 2024, Fumio Fujisaki will become President & Representative Director

FY2023 Presentation Material1

FY2023 Consolidated Financial Results(Fiscal Year Ended December 31, 2023)

Results Summary

We posted record-high net sales, driven by the writing instrument business’s strong sales in such products as FRIXION
series in Japan and G-2 gel ink roller ball pen in the U.S. The yen’s depreciation also had a positive impact on net sales.

Profits fell due to economic slowdown caused by remained high prices and increase in total costs such as labor costs.
(Unit: million yen)

FY2022
FY2023
YoY Comparison
Full-Year Results Full-Year Results

FY 2023
Initial Forecast

Net sales

112,850

118,590

5.1%

115,000

Gross profit

60,112

61,8782.9%-

Operating profit

21,24419,003-10.6%

22,000

18.8%

16.0%

-2.8pt-Ordinary profit

22,633

20,840-7.9%

23,000

Profit attributable to owners of parent

15,773

13,661-13.4%

16,000

Profit per share (yen)399.86346.31-13.4%

405.58Return on equity (ROE)

14.5%

11.1%

-3.4pt-1 US dollar

131.62 yen

140.67 yen

1 euro138.14 yen

152.11 yen

1 yuan19.50 yen

19.82 yen

Operating margin

Averageexchange rate

FY2023 Presentation Material

3

Sales Breakdown
Comment on full-year results
The sales increase was driven by writing instrument business’s strong performance in Japan and Americas and by the
positive impact of the yen’s depreciation.
Comment on 4Q results
Year on year, sales increased in Japan, the Americas, and Asia but were flat in Europe. Compared with 3Q, sales rose inJapan and the Americas and fell in Europe and Asia.

(Unit: million yen)

FY2022
Full YearFY2023Full Year

ChangePercentage
Change35,05139,062

4,011

11.4%

11,024

11,836812

7.4%

Domestic market

26,64928,923

2,274

8.5%

8,488

9,109

620

7.3%

Overseas market

8,402

10,139

1,736

20.7%

2,535

2,727

192

7.6%

Sales

Japan

FY20224Q

FY2023
4Q

ChangePercentage
ChangeSales by Segment
Sales by BusinessAmericasSales

32,09035,360

3,270

10.2%

7,593

8,338

745

9.8%

EuropeSales

25,50624,313-1,193

-4.7%

5,272

5,261

-10

-0.2%

Asia

Sales

20,202

19,853

-348

-1.7%

4,855

4,901

46

1.0%

Sales

112,850

118,590

5,740

5.1%

28,74430,339

1,594

5.5%

Domestic market

26,64928,923

2,274

8.5%

8,488

9,109

620

7.3%

Overseas market

86,201

89,667

3,465

4.0%

20,256

21,229

973

4.8%

Sales

101,679

106,273

4,593

4.5%

25,19926,213

1,014

4.0%

Sales

11,171

12,317

1,146

10.3%

3,545

4,125

579

16.4%

Stationery/other

4,687

5,458

770

16.4%

1,282

1,709

427

33.3%

Toys

4,233

3,900

-332

-7.8%

1,618

1,656

37

2.3%

Industrial materials/other

2,250

2,958

708

31.5%

644

759

115

17.9%

Segment
total
Writing
instrumentbusiness
Non-writing
instrumentbusiness

Note: Industrial materials/other includes jewelry, ceramics, sundry items (MARK’S Inc.), and other products.
FY2023 Presentation Material

4Analysis of Changes in SalesJapan(Unit: million yen)

Steady sales of stationery products forJapanese market and overseas
distributors, mainly in the emerging
markets.

AmericasStrong sales in products such as the
G-2 gel ink roller ball pen in the U.S.
and the V-Board Master whiteboard
marker in Brazil, plus the positive
impact of foreign exchange rates.

EuropeConsumers refrained from buying
relatively expensive products such as
FRIXION series as the market
remained weak amid surging prices.

Asia

Sales struggled due to a sluggish
Chinese economy, which in particular
led to weak student demand.

FY2022

Japan

Americas

EuropeAsia

FX
FY2023translation
impactFY2023 Presentation Material

5Changes in Quarterly Sales by Geographic Segment(Unit: million yen)

33,99531,25027,631
22,3193,433

21,036 20,359

23,381 22,794
4,617

2,703

5,047

4,602

1Q

27,407

5,212

4,901

5,196

4,576

26,849
8,279

5,315

5,272
5,385

5,707

5,342

5,276

8,244

8,960

7,278

8,338

11,444

7,593
7,258

4,901

5,261
5,385

5,929

6,491

8,070

7,506

8,277

5,045

9,112

8,572

26,626

6,131

5,033
6,687

5,574

8,596

4,792
5,506

26,229

4,855
5,470

7,692
4,617

5,687

25,286
5,003

4,108
4,807

27,34528,74430,339

4,735

5,958

6,412

2Q

3Q
FY2020

4Q

10,170
7,572

6,647

6,872

1Q

2Q

3Q

4Q

11,024
8,465

8,117

7,444

1Q

2Q

3Q

FY2021Japan

FY2022
Americas

EuropeAsia

4Q

11,836

9,049

9,534

8,641

1Q

2Q

3Q

4Q

FY2023Total
FY2023 Presentation Material

6Operating Profit Breakdown by Segment
Comment on full-year results
Profits fell due to weak demand in overseas major markets, which was dampened by surging prices, and an increase in SG&A
expenses including labor costs.
As for adjustments, unrealized profits from inventories declined, as the US subsidiary adjusted its inventories.

Comment on 4Q results
Year on year, profit decreased in Japan due to a decline in sales to subsidiaries in the U.S. and Europe. Compared with 3Q, profit
increased in Japan, and the Americas returned to profitability, driven by strong sales in the year-end shopping season, while Europe(Unit: million yen)
and Asia saw a decline in profit on lower sales.
FY2022
Full Year
OperatingprofitJapan*
OperatingmarginOperatingprofitAmericas
OperatingmarginOperatingprofitEuropeOperatingmarginOperatingprofitAsia
OperatingmarginOperatingSegment
profitOperatingtotal
marginOperating
Adjustment profit
OperatingprofitTotal
OperatingmarginFY2023Full Year

Percentage
ChangeChangeFY20224Q

FY2023
4Q

Percentage
ChangeChange22,591

13,482-9,109-40.3%

6,169

3,871

-2,297-37.2%

64.5%

34.5%

-

-

56.0%

32.7%

-

-

605

1,182

576

95.3%

-199

553

753

-

1.9%

3.3%

-

-

-2.6%

6.6%

-

-

1,772

1,687

-85

-4.8%

-113

65

178

-

7.0%

6.9%

-

-

-2.2%

1.2%

-

-

996

809

-187

-18.8%

52

60

7

14.6%

4.9%

4.1%

-

-

1.1%

1.2%

-

-

25,965

17,161-8,804-33.9%

5,909

4,551

-1,358-23.0%

23.0%

14.5%

-

-

20.6%

15.0%

-

-

-4,720

1,842

6,562

-

-401

-374

27

-

21,24419,003-2,241-10.6%

5,507

4,176

-1,331-24.2%

18.8%

16.0%

-

-

19.2%

13.8%

-

-

* Since PILOT’s head office sells products manufactured in plants in Japan to Japanese and overseas customers (subsidiaries or local distributors), profits are accumulated in the Japan
segment.
FY2023 Presentation Material

7Analysis of Changes in Operating Profit(Unit: million yen)

• Recovery in the Japan and Americas segments• Decline in the Europe and Asian segments

Operating profit fell 10.6% year on
year, impacted by deterioration in theEuropean and Asian markets, as thecost rate rose due to such factors as
the production volumes of major
products declining and raw material
costs remaining at high levels. Higher
SG&A expenses, pushed up by pay
rises and efforts to secure humanresources, also weighed on operating
profit.

• Increase in labor costs
and advertising costs• Recording of good willamortization• Increase in raw materials, purchased
products, subcontracted labor fees, etc.
• Increase in cost rate due to decreased
production volume of major products

FY2022

Sales Cost offactors
sales

SG&A
FX
FY2023
expenses translation
impactFY2023 Presentation Material

8Balance SheetEquity ratio at the end of the fiscal year was 78.3％. We maintained a healthy financial position that would allow us tooperate stably even in the event of contingencies while actively making capital investments.

Net assets per share increased 11.9% from the end of the previous fiscal, mainly due to an increase in net assets
resulting from profit attributable to owners of parent and foreign currency translation adjustment.
(Unit: million yen)

As of December 31,
2022

As of December 31,
2023

Change106,606

107,138

531

Cash and deposits

46,12839,171-6,956

Non-current assets

49,93659,3309,394

Total assets

156,542

166,468

9,926

Current liabilities

36,792

31,567-5,224Non-current liabilities

1,760

2,555

795

Net assets

117,989

132,345

14,355

Total liabilities and net assets

156,542

166,468

9,926

2,954.51 yen

3,305.72 yen

351 yen

74.5%

78.3%

Current assets

Net assets per share
Equity ratio

FY2023 Presentation Material

9Cash Flow Statement

Cash flows from operating activities declined compared to FY2022 mainly due to decreases in profit before income taxes
and trade payables, but secured above 10 billion yen.



Cash outflows for investments increased as a result of growth investment dissolving a joint venture arrangement of a
production subsidiary in Indonesia and taking full control of it, as well as capital investment in plants in Japan.
(Unit: million yen)

FY2022
Full YearFY2023Full Year

ChangeCash flow from operating
activities

13,753

10,175-3,577

Cash flow from investing activities-5,350-10,707-5,356

Free cash flow

8,402

-531

-8,933

Cash flow from financing activities-8,370-7,380990

Cash and cash equivalents at theend of period

45,44438,329-7,115

FY2023 Presentation Material

10

Financial Forecast for the Fiscal YearEnding December 31, 2024

Financial Forecast for FY2024Net sales in the Japanese market are expected to increase, boosted by recovery in demand by inbound tourism anddemand for novelty goods, and by the full-year sales contribution of Mark’s Group Holdings, Inc., which joined thegroup in FY2023. Outside Japan, inflation rates are subsiding, and each overseas region is forecasted to increase sales
by actively enhancing their promotion activities.
Operating profit is expected to increase from FY2023 to 20 billion yen (operating margin of 16.5%) on higher sales,
although we expect that depreciation, labor costs, and other expenses will increase as we continue investing in people,
equipment, and R&D as necessary to achieve the 2030 Vision.
(Unit: million yen)

FY2023Full-Year Results

FY2024Full-Year Forecast

YoY Comparison

Net sales

118,590

121,000

2.0%

Operating profit

19,00320,000

5.2%

16.0%

16.5%

+0.5ptOrdinary profit

20,84021,0000.8%

Profit attributable to owners of parent

13,661

14,0002.5%

346.31354.882.5%

1 US dollar

140.67 yen

136.00 yen

1 euro152.11 yen

148.00 yen

1 yuan19.82 yen

19.50 yen

Operating margin

Profit per share (yen)Appliedexchange rate

FY2023 Presentation Material

12Analysis of Changes in Sales ForecastJapan(Unit: million yen)Japanese market expects a recovery in demands
for inbound tourism and for novelty goods, as wellas the contribution of Mark’s Inc. to higher sales.
Also, sales to overseas distributors are expected toincrease mainly in Asia where they are performingwell.

Americas

We expect a recovery in the writing instrument
market in the U.S. We will strive to expand ourmarket share by strengthening sales promotion toretailers, mainly for the G-2 gel ink roller ball pen.

EuropeWith inflation subsiding, consumer appetite is
expected to recover. We aim for a recovery in salesof FRIXION series to around FY2022 level in majorcountries by sales promotion initiatives including
collaborative products to boost sales of ballpoint
pens.

Asia


We have enhanced our sales organization in China.
We aim for a recovery in sales by strengthening
our presence in the eyes of consumers, mainly forour top products P-500 and Juice.

FY2023
results

Japan Americas Europe

Asia

FX
FY2024translation forecast
impactFY2023 Presentation Material

13Capital Investment: Capacity Expansion of Production
Bases and BCP management
In FY2024, we will invest in higher production capacity for existing plants and setting up bases inoverseas markets where growth is expected. The aim of this is rebuilding production structures from a
global perspective, with a balance between boosting production capacity to realize the 2030 Visionand taking measures under the business continuity plan.
 PILOT Corporation’s Hiratsuka Plant and Isesaki Plant: 7.6 billion yene.g., boosting production capacity for such as G-2 gel ink roller ball pen and Juice, and diversifying Isesaki Plant’s risks
 The Pilot Ink Co., Ltd.: 1.8 billion yene.g., diversifying Isesaki Plant’s risks, new equipment for production of new products, transferring equipment to PPINPRIVATE LIMITED (India)(Unit: 100 million yen)

FY2023Full-Year Results

FY2024Full-Year
Forecast

Hiratsuka Plant

YoY Comparison

Capitalinvestment

110

132

+22

Depreciation

45

62

+17

FY2023 Presentation Material

14

Shareholder Returns(Unit: yen)Interim dividend

Year-end dividend The annual dividend for

FY2023 is 100 yen per share(payout ratio of 28.9%),
making for the 8thconsecutive years ofdividend increases.
 The annual dividend for

FY2024 is expected to be
106 yen (payout ratio of
29.9%), an increase of 6 yen
per share from the previous
fiscal year.

28.9%
21.8%

22.5%
16.6%

100

Payout ratio

29.9%

106

90

55
27.5

60

50.0

53.0

50.0

30.0

27.5

30.0

FY2020

FY202140.0

FY202250.0

53.0

FY2023

FY2024(forecast)

FY2023 Presentation Material152022-2024
Medium-Term Management Plan
ProgressTasks to Be Addressed
The PILOT Group formulated the 2022–2024 Medium-Term Management Plan to realize our 2030 Vision based on our
purpose—Our Creations Inspire Creativity. Having positioned 2022–2024 as the three years for “Reform and Challenge,”
we will speedily implement the five basic strategies stated below and push forward initiatives for achieving the 2024
goals set respectively for the strategies as well as the managerial index and financial indicators.

PurposeOur Creations Inspire Creativity
We support the act of writing around the world and at the same time
support society and culture in fields other than writing.

2030 Vision

No. 1 Brand in the global
writing instrument market

Grow with non-writing
instrumentbusinesses as the second pillar

Offer value to the environment,
society, and employees

Expand overseas
business and maintaindomestic share

Sales composition ratio
25%

Contribution to the creationof a sustainable earthand society

2022–2024
Medium-Term
Management Plan

Five basic
strategies

Build the foundation for 2030 Vision– Three years for “Reform and Challenge”(1) Further
strengthenfunctions forbusiness expansion(2) Set to work on
capital and businessalliances and new
business concept(3) Strengthen theoverall group
governance system(4) Integratesustainability andthe Medium-Term
Management Plan

(5) Formulate andimplement long-term
design of humanresources

Guiding Principles
Three forces inbalance with each other

Shared joys andshared sorrows

Overcoming
difficulties

One step, one day

A very sincere
approach
FY2023 Presentation Material

17

Basic Strategy 1:
Further Strengthen Functions for Business Expansion
2024 Goal:
Toward 2030, we will drive forward to strengthening marketing and R&D functions, building supply chains, andstrengthening sales channels and distribution in stages
2023 Initiatives

Marketing,
R&D

2024 Target

2023 Progress

Strengthen product planning and sales
promotion activities that reflect customer
needs of respective
countries and regions

・ Developed human resources to strengthen product managers
・ Globally expanded the marketing team (set up a new Global Marketing Division)・ Enhanced “International Meeting” and shared information with major sales subsidiaries
in each country and region
・ Exhibited at Virtual Market 2023 Summer and WinterStrengthen functions of researchand development

Procurement,
production

Reallocate domestic production
bases to enhance BCP measuresand production facilities
Preparation for expansion of overseas
production

Distribution,
sales

Implement strategies for every domestic
channelEnhance sales network in every
country・ Created new development themes for non-writing instruments
・ Examined coexistence and co-prosperity for analog and digital technologies
・ Developed an optimum production structure, production goals, and investment plan inlight of supply chain risk analyses, stable supply, BCP, and other aspects
・ Planned the dispersion of production processes across factories as a countermeasure to
production risks, with the plan being implemented step by step・ Introduced a headquarters for the production department, consolidated the materials
procurement department
・ Planned and examined the details of the reconstruction of factories
・ Collected information on parts procurement for overseas production
・ Facilitated a shift to optimum operating and sales structures for each channel
・ Promoted the use of sales support systems
・ Started operation of a sales and manufacturing subsidiary in India
Established a sales subsidiary in Indonesia
・ Turned an Indonesian manufacturing joint venture into a wholly-owned subsidiary

FY2023 Presentation Material

18Basic Strategy 1:
Business Expansion in Emerging Markets
 In recent years, Republic of India, with its rapid economic growth, is seen as a promising market.

Since 1983, we have sold our products via distributors in the country, and our brands and products
are already well known there.
 We set up our sales and production subsidiary PPIN PRIVATE LIMITED and started its operations inJuly 2023 for the purpose of increasing our sales and market share in India.

Number of children in
primary education

20 times India (2022)
larger 131.34 million

Large potential
for the writing
instrument
marketJapan(2019)
6.49 million

Source:worldbank.org
Reference: https://graphtochart.com/education/india-primaryeducation-pupils.php
FY2023 Presentation Material

19Basic Strategy 2:
Capital and Business Alliances and New Business Concept2024 Goal:• Actively consider and implement capital and business alliances with other companies for business expansion• Increase market shares of the existing products and expand new item range, and create a new business concept from a
medium- to long-term perspective
2023 Initiatives

Status after capital and business alliance with Mark’s Inc.
・ Opened its flagship store MARK’STYLE AZABUDAI HILLS in
Azabudai Hills in November 2023
Planned mutual collaboration sales between PILOT and Mark’s
Inc.—between materials “to write” and “to be written”
・ Launched collaboration products・ Conducted personnel exchanges to understand each other’scultureWriting
instruments
StationeryMark’s Inc.
New
businessNewbusiness

Our strengths
×
Other companies’ strengths

Source of value creation

Technology

Brand

Supplychain

DesignGlobalnetwork

Knowhow

Quality

Customer
contact

Ideas

History

Industrial
materials

Toys
Newbusiness

Rolling out PILOT’s unique strengths
・ Reorganized its technologies in the IP landscape・ Searched and studied on seeds that can leverage PILOT’s
unique technologies
・ Examined development themes according to social needs
・ Launched a new penmanship course for writing own names

Establishing new “Future Creations Office”
・ Established a new Future Creations Office as a team dedicatedto creating businesses that will become the second pillar of
PILOT’s business in July 2023
FY2023 Presentation Material

20Basic Strategy 3:
Strengthen Overall Group Governance System
2024 Goal:• Shift to a Company with Audit and Supervisory Committee in 2022 to strengthen the supervisory function of theBoard of Directors and enable swift decision-making• Also, build a solid group governance structure and accelerate initiatives for accomplishing 2030 Vision
2023 Initiatives
Shift to a Company with Audit and Supervisory Committee• Reviewed the Board of Directors’
regulations• Promoted the separation between
supervision and execution• Implemented a board effectivenessassessment• Established and enhanced a speedy
execution structure(Promoted the delegation of authority)

Sustainable growth and medium- to long-term
increase in corporate value of PILOT Group• Reorganized various policies and rules on grouprisk management and enterprise risk management,group company management, and other matters• Rebuilt a system for monitoring intragroupperformance• Established a group governance reporting system• Developed a corporate culture based on the Purpose

Introduce IT throughout the group
IT infrastructuredevelopment,
DX promotion

Executive
directors
Executive
Officers

Formulate group management policy
Formulate
policies andrules

Board ofDirectors
Meeting

Build and operate a group governance system• Started examining the concept of the next generationcore system• Implemented various security measures

Driving DX throughout the group• Built a digital foundation for leveraging data

FY2023 Presentation Material

21

Basic Strategy 4:
Integrate Sustainability and Medium-Term Management Plan
2024 Goal:
Incorporate crucial sustainability issues into the Medium-Term Management Plan and work on solutions to accomplish
our vision to contribute to economic value as well as the environment, society and employees
2023 Initiatives

Initiatives for solving crucial sustainability issues

For global
environment• Offered limited editions of ballpoint pens that use reclaimed resin collected through a program forrecycling used pens
• Disclosed information based on TCFD recommendations• Set and disclose Scope 1 and 2 emissions reduction targets• Set and disclose water and waste reduction targets

For society• Handling the execution of agreements based on procurement policy and guidelines for suppliers• Provided environmental education (visiting schools for classes)• Co-sponsored the LIMITS HS-tournament 2023 for high school creators

For employees

Businessfoundation• Launched global leadership training (experience of working overseas) and experimental training indifferent departments• Continued running employee satisfaction surveys• Held meetings for the management and employees to have dialogue to facilitate awareness of the Purpose• Started sustainability penetration activities by using distributed guidebooks and streamed movies••••

Enhanced disclosure on PILOT’s website
Reorganized internal rules (e.g., group governance, enterprise risk, risk management)
Enhanced Audit Department and established Materials Procurement Department
Continued providing internal training on cybersecurity, etc.

FY2023 Presentation Material

22Basic Strategy 5:

Formulate and Implement Long-Term Design of Human Resource
2024 Goal:
Formulate a long-term design of human resources with a focus on 2030 and advance human resource development andstrengthening of organization, as well as enhancement of diversity and specialty by utilizing external human resources.
At the same time, develop unified organizational culture involving all the employees
2023 Initiatives
・ Formulate a long-term design of human resources
Developing a long-term design of human resources (HR strategies) that reflects recommendations by a meeting consisting of younger
employees, or bearers of the future, which discusses the concept of human resources for the future
・ Develop human resources, strengthen organization
Provided training, including global leadership training and experimental training in different departments
Carried out a competency assessment of head office employees and encouraged self-development using correspondence courses
Promoted education and training with training expenses per employee of:
FY2023 94,000 yen (FY2024 target: 80,000 yen) (FY2022 58,900 yen)・ Enhance diversity and specialty by utilizing external human resources
Augmented expertise by hiring new graduates and mid-career professionals from a diverse pool of candidates, regardless ofnationality and gender
FY2023 New graduates hired: 54, mid-career professionals hired: 39 (including 1 foreign national) (Target number for FY2024 midcareer hires: 50)(FY2022 New graduates hired: 29, mid-career professionals hired: 20 (including 4 foreign nationals)

・ Develop unified organizational culture involving all the employees
Promoted active participation by women
Share of women in managerial positions: 8.3% in 2023 (9.9% in 2022) *Comparison as of July
Encouraged the taking of childcare leave
Rate of taking childcare leave in FY2023: 100% for women, 50% for men (100% for women, 50% for men in FY2022)
Promoted the taking of paid leave, proper management of working hours, and diverse and flexible workstyles; and introduced
mechanisms for active communication
・ Implement the employee satisfaction survey
Total satisfaction rate: 69.6% (target: 75% or higher) (FY2022 rate: 69.0%)

Tasks we have to address include achieving proper organization and people deployment, conducting personnel evaluation appropriately,
creating an environment where it is easy to ask for advice, coordinating with other departments, and enabling diverse employees todemonstrate their ability.
We will continue with the measures stated above.
FY2023 Presentation Material232024 Managerial Index and Financial Indicators
2024 target
consolidated net sales

Financial KGIs

2023 result
2024 target
operating margin ratio

118.0 billion yen(105.0 billion yen in writing instrument business and 13.0 billion yen in non-writing instrument business)

118.5 billion yen(106.2 billion yen in writing instrument business and 12.3 billion yen in non-writing instrument business)

Ensure 18% or more

2023 result

16.0％

2024 target
ROE

Maintain and improve the current revenue base and stably secure 12% or more in a medium-to
long term

2023 result

11.1％

Investment for growthby 2024

Financial indicators

Progress by 2023

2024 target
Shareholder return policy
2023 result

With a resource of internal reserves of approx. 30.0 billion yen, we will actively allocate
investment over “human resource development and investment,” “existing business fields,”“growing and new business fields,” “capital and business alliances,” etc.
In 2022–2023, we invested 0.7 billion yen in human resource development and investment, 24.0 billion yen
in business fields (4.0 billion yen in R&D, 16.9 billion yen in CAPEX, 3.1 billion yen in overseas groupcompanies) and 1.0 billion yen in capital and business alliances.
We made investments associated with enhancing global human resource development and hiring midcareer talent, R&D that leverages PILOT’s technologies, augmenting production facilities for writing
instruments including BCP measures, setting up a manufacturing and sales subsidiary in India and a sales
subsidiary in Indonesia, and making a manufacturing subsidiary a wholly-owned one in Indonesia.

Achieve stable growth in dividends and aim for payout ratio of 30% or more
Continuously increased dividends while maintaining the principle of paying stable dividends
Annual dividend: 100 yen (up 10 yen), payout ratio: 28.9%

FY2023 Presentation Material

24

New Management Structure

New Management Structure(Effective March 28, 2024)

Fumio Fujisaki will become President & Representative Director by a resolution of the Annual General
Meeting of Shareholders scheduled on March 28, 2024, and by a resolution of the Board of Directors at
its meeting held after the General Meeting of Shareholders.
The management structure was changed at this time in order for Fumio Fujisaki to lead theformulation of the three-year Medium-Term Management Plan starting from the next fiscal year.
Shu Itoh, the current President & Representative Director, will oversee overall management as
Chairman & Director, and support the new President Fumio Fujisaki.

（Career summary）

Fumio Fujisaki
Born in 1960 (age 63)
B.A. in Commerce, Meiji University

1984

Joined The Pilot Pen Co ., Ltd. (currently PILOT
Corporation)

2011

General Manager of Planning Office

2015

Executive Officer, General Manager ofInternational Sales Division

2019

Senior Executive Officer
Managing Director, Pilot Corporation of Europe
S.A.

2022

Director & Senior Executive Officer (present)
FY2023 Presentation Material

26

Appendix

Changes in Quarterly Results(Unit: million yen)

FY2022

FY2023

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Net sales

26,22931,25026,62628,74427,40733,995

26,84930,339

YoY

15.1%

13.1%

5.3%

5.1%

4.5%

8.8%

0.8%

5.5%

Gross profit

13,568

16,688

13,793

16,062

14,62718,042

13,497

15,711

YoY

20.1%

12.6%

1.8%

10.6%

7.8%

8.1%

-2.1%

-2.2%

Operating profit

4,647

7,118

3,971

5,507

4,892

7,198

2,735

4,176

YoY

32.8%

14.2%

-18.4%

16.6%

5.30

1.1%

-31.1%-24.2%

Ordinary profit

5,338

8,451

4,289

4,554

5,251

8,860

3,193

3,535

YoY

39.0%

29.0%

-13.3%

-9.4%

-1.6%

4.8%

-25.5%-22.4%

Profit attributable to owners of parent

3,363

6,095

3,145

3,169

3,622

6,219

2,146

1,672

YoY

26.2%

36.2%

-8.3%

-14.3%

7.7%

2.0%-31.7%-47.2%FY2023 Presentation Material

28

Quarterly Changes by Geographic Segment(Unit: million yen)

FY2022

Japan

Americas

EuropeAsia

FY2023

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Sales

8,465

8,117

7,444

11,024

9,049

9,534

8,641

11,836

YoY

11.8%

22.1%

8.3%

8.4%

6.9%

17.5%

16.1%

7.4%

Operating profit

5,365

6,156

4,898

6,169

3,680

3,104

2,825

3,871

Operating margin

63.4%

75.8%

65.8%

56.0%

40.7%

32.6%

32.7%

32.7%

Sales

7,258

8,960

8,277

7,593

8,070

11,444

7,506

8,338

YoY

37.6%

8.7%

13.7%

17.0%

11.2%

27.7%

-9.3%

9.8%

Operating profit

597

517

-310

-199

347

942

-661

553

Operating margin

8.2%

5.8%

-3.7%

-2.6%

4.3%

8.2%

-8.8%

6.6%

Sales

5,929

8,596

5,707

5,272

5,385

8,279

5,385

5,261

YoY

11.0%

11.8%

-6.9%

1.2%

-9.2%

-3.7%

-5.6%

-0.2%

Operating profit

429

1,225

231

-113

294

1,126

201

65

Operating margin

7.2%

14.3%

4.0%

-2.2%

5.5%

13.6%

3.7%

1.2%

Sales

4,576

5,574

5,196

4,855

4,901

4,735

5,315

4,901

YoY

-0.6%

10.4%

3.9%

-11.3%

7.1%-15.1%

2.3%

1.0%

Operating profit

311

304

327

52

301

166

280

60

Operating margin

6.8%

5.5%

6.3%

1.1%

6.2%

3.5%

5.3%

1.2%

FY2023 Presentation Material

29

FAQ
About thePILOTGroup’s
Segments

The PILOT Group’s segments are divided by location based on our management structure.
The locations of the Group companies included in each segment are as follows: Japan segment

Japan (domestic sales, overseas sales*) Americas segment

United States, Mexico, Brazil
 Europe segment

France**, Germany, United Kingdom, Sweden, Australia
 Asia segment

China, Hong Kong, Taiwan, Singapore, South Africa* “Overseas sales” includes sales to countries and regions other than those where overseas consolidated subsidiaries handle direct selling.
** Our European headquarters is in France, which handles sales to various European countries excluding those in which we have establishedoverseas subsidiaries.

About
Overseas
Production
Bases

The PILOT Group has established production bases in various countries around the world.
Except for some manufacturing plants that make low-cost merchandise for the local
market, most of these plants are for processing products imported from Japan (packaging,some assembly). As a rule, we export and sell products manufactured in Japan.

FY2023 Presentation Material

30

DISCLAIMER
The results forecasts and forward-looking statements included in this document
were prepared based on information available as of February 13, 2024. Actual
results may differ materially from the contents of this document due to theirinherent risks and unforeseen events.

FY2023 Presentation Material31