Note: This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, theoriginal shall prevail. The Company assumes no responsibility for this translation or for direct,
indirect or any other forms of damages arising from the translation.

May 14, 2024

To all parties concerned:
Company

Fujitec Co., Ltd.
(Stock Code 6406)
Representative Masayoshi Harada
President and CEO
Contact:
Kosuke Sato
Director, Senior Executive Operating Officer,
General Manager of Finance HQ(TEL 072-622-8151)

Fujitec announces New Mid-term Business Plan
Fujitec (TSE: 6406) today announced that we launch new Mid-term Business Plan “Move On 5” (FY2024FY2028).

For details, please refer to the attachment.

May 14, 2024

Fujitec Co., Ltd.
(TSE ticker: 6406)

Copyright 2024 Fujitec All Rights reserved0Table of Contents

I

Fujitec Overview

II

Why Invest

III

Business Strategy

IV

Capital Allocation

Copyright 2024 Fujitec All Rights reserved

1

Fujitec overview

Copyright 2024 Fujitec All Rights reserved2Characteristics of elevator industry
The elevator & escalator industry is long-term stable and capital-efficientLong-term CAGR of
5%~10%1

Generate recurring
profit throughmaintenance

Lifecycle-based
revenue throughmodernization

1. Based on research by Fujitec
Copyright 2024 Fujitec All Rights reserved

3Corporate Profile
A global provider of elevators and escalators with a 76-year history

Respecting people, technologies, and products,
we collaborate with people from nations around the world
to develop beautiful and functional cities
that meet the needs of a new age.

Management
VisionRegional Mix1

Business Mix1

South
13
Asia

42 NI
2,294
MOD, 56
Repair,and Maint.

32
East Asia

Service stations

Japan

2,294

2,294

320

19
36

Founded

Revenue (100 million JPY)

Others2

Americas/
Europe1948

156

Sales offices~11,800
Employees

1. Based on 2023 revenue
Copyright 2024 Fujitec All Rights reserved4Consistently embrace “Continuity and Change", leveraging the quality ofour products and services to deliver an exceptional riding experience tomore customers

Fujitec's strength

Fujitec's uniquestrengths that differentiate
it from competitors

Continuity

ChangeKey areas to focus on forfurther enhancing
corporate values

Pursue “Safety and Reliability”

Selection and Concentration

Focus on Quality

Strengthen Group Management

Human Resource Development

Copyright 2024 Fujitec All Rights reserved

Continue topursue withoutchangeNew Initiatives
for theNew Fujitec

Enhance governance andcommunication

5

Our 'unwavering Safety and Reliability' have gained
long lasting customers' trust
Fujitec's strength
Further “Safety and Reliability”
1 R&D Automatic elevator ops. datacollection in the event of anearthquake Visualization of restoration needs
and the prompt dispatch ofengineers Further update for other natural
disasters such as heavy rains

2 Systems

 Quality Lab to be launched in 2025
 Conduct E2E safety tests fromdevelopment, procurement,
prod. and installation,
on various components

in line with
"Fail-Safe"
concept

to thoroughly
prevent
malfunctions/accidents

Copyright 2024 Fujitec All Rights reserved

6Diligently pursue high quality to ensure unwavering safety and security
and to deliver the comfort developed in luxury sites to more customers
Fujitec's strength
Customers' First, High-quality ride
Developing productsthat deliver the highest quality and comfort
 Installed in luxury hotels and high-rise offices/
residences Highly evaluated by our customer from luxury
hotelsSo quiet while moving, I wondered if I forgot topress the button
ー Representative of a luxury hotel
We are the best hotel in the world, adopting thebest facilities, including Fujitec elevators
ーOwner of a luxury hotel
Copyright 2024 Fujitec All Rights reserved

7Enhancing satisfaction among all stakeholders through the"Corporate Culture Transmission"
Fujitec's strength
Development of talent prioritizing
hospitality
Continuing the tradition of "the spirit of
hospitality" through talent development,
passed down since the company's founding Employees' compassionate and proactive actions
are highly regarded by customers, users, andpartners
 Expressions of gratitude from clients for hospitality
During maintenance work, after confirming
safety, users are guided to their destination floor
via the elevator.
Subsequently, the customer receives a thankyou email from the userーAwarded a letter of appreciation from the customer
Copyright 2024 Fujitec All Rights reserved

8Reflection on Previous Mid-term plan (Vision24)
Though continuous sales growth has been achieved, lack of ability to implement, andunexpected market recession led to delay in key initiatives / financial progress
Achieved:
Sustained revenue growth FY2022-FY2023

Issue:
Delayed implementation of key initiatives mainly due
to unexpected increase in material cost and market
recession in China

Domestic Business

Overseas Business

Production & Operations

Corporate

Overview

 Expansion in NI with higher
profitability by process
innovation / cost reduction
 Expansion in After Mkt Biz

 Expansion in NI by invest.
 Expansion in After mkt biz
 Cost competitiveness Cost transformation
through harmonizedprocurement among sites +Next-Gen, Tech.

 Stronger CF, higher
dividends, and capital costmgmt.
 Disclosure/GovernanceAchieved

 Complete large-scale PJs
 Continuous growth in MNT.
through NI/MOD

 Pilot PJ with Next-Gen inJapan– AI, remote monitoring
systems, etc.

 Improve capital efficiency
 Environmental reporting Initiatives on better
governance scheme

Issue Less cost reduction due todelay in STD. model sales
 Deteriorated profitability
due to higher material cost

 Rapid growth in NI in
growing markets(e.g.,India)
 After mkt biz in mature
markets (e.g.,NA) Limited costcompetitivenessdue to delay in STD. model Deteriorated profitability
due to China's real estate
recession Delay in harmonizedprocurement, andinstallation of Nex-Gen
Tech.

 Growth investment andhigher shareholder returnnot well balanced
 Limited Feasibility andtransparency in governance

Copyright 2024 Fujitec All Rights reserved

9Fujitec's long term vision in 10 years
Establish a top trusted
brand in the industry
where everyone canexperience the unique
beauty and hospitality ofa dedicated Japanesemanufacturer

Biz StrategyCreate the highest value demanded in each region and provide elegant sophistication
Establish a solid market presence in each market where Fujitec operates
Successfully grow innovative business seeds to profitable businesses, such as remotemonitoring with digital

Organizational Foundation
 Continuously improve organization foundation for further
growthPeople/Culture Foster global talents with tech./capabilities though opportunities
across the globe
 Develop culture without fear of failure and with a spirit of courageContribution to the society Support infrastructures all over the world while tackling env. Andsocial issues

Copyright 2024 Fujitec All Rights reserved

10Why invest

Copyright 2024 Fujitec All Rights reserved

11Why Fujitec

Steady growth & significant margin improvement
Strongmanagement
commitment toimprove theoperations anddeliver higher
return toshareholders

Higher shareholder return through abundant FCF and optimal
capital allocationRobust FCF generation based on stable maintenance revenue
Higher shareholder returns, starting with a dividend payout ratio of80%

Strong management commitment to ensure implementation

Copyright 2024 Fujitec All Rights reserved

Regional portfolio management with clear focus between grow andimprove
Company-wide initiatives to improve margins by enhancing the
profitability of NI/MOD and the productivity of maintenance

PMO at HQ and region to manage the execution
Alignment of management compensation linked to performance,
including stock prices
12Major KPIs and targets
Targeting 3.0x OP margin improvement while maintaining revenue CAGR 8%.
Stronger cash generation to ensure higher dividends payout ratio for our shareholders(100 million yen)

FY2023

Revenue

2,294

Gross profit
(%)

484
(21%)

860
(26%)

Operating profit(%)

145(6.4%)

440(13.5%)

ROE

12.9%

18%

Dividends payout ratio

67.8%

80%

228.55 yen

384 yen140.44 yen

135.00 yen

EPS
USD to JPY exchange rate
Copyright 2024 Fujitec All Rights reserved

FY20283,250(CAGR 8%)13

NI/MOD growth targets
Boost NI/MOD revenue with improved profitability through reduced manufacturing
costs
MOD
NI
2023

2028

2023

2028

Revenue+10%+10%Gross profit+15%
From deficit to profitable Concentrate geographical coverage to maintain/improve profitability with increasing the number of units in stock
through expansion of NI/MOD Optimize the supply chain and standardize production models to reduce manufacturing costs and enhance
profitability to the level of peers
Copyright 2024 Fujitec All Rights reserved

14

Maintenance growth targets
Increase in number of units of maint. contracts to drive sales/profit of this profitablesegment
Revenue+5%
fromNumber of units of maintenancemaintenancecontracts
+7%
2023
+5%

Gross profit
frommaintenance

2023

2028

2028

2023

2028

 Organic and Inorganic growth (NI/MOD) in mature markets to increase maint. contracts
 Implement smart productivity and operational improvements in maintenance to enhance
profitability to the level of peers
Copyright 2024 Fujitec All Rights reserved

15

SG&A Reduction Target
Reduce SG&A by standardizing admin and sales operations, implementing BPR, andenhancing productivity
Impact on Consolidated SG&A ratio-2pt

Total Change in SG&A Amountfrom FY2023 to FY2028-8Billion yen

Improve the SG&A ratio to the level of major competitors by standardizing andstreamlining operations using digital tools and controlling various expenses
Copyright 2024 Fujitec All Rights reserved

16

Financial targets as a result of key initiatives
Accelerate growth with well-balanced region and business mix
Revenue by region

Revenue by business
23-28
CAGR

(100 million yen)

23-28
CAGR

(100 million yen)

3,250
~5%

3,250
560

5%

540

12%

2,294
~10%

1,160

8%

~55%

880

1,140

5%

(148)

(150)

FY2023

FY2028OP
6.4%
Margin(%)

13.5%

2,294
457
310

~50%

6%

~50%

10%

793

Japan

Americas & Europe

East Asia

Eliminations/Other

South Asia

~40%

GP
Margin(%)

~-5%

~-5%

FY2023

FY2028

21%

26%

NI

Export/Other

MTN/MOD

Eliminations

Note: East Asia includes Korea, China, Taiwan, and Hong Kong. South Asia includes India, Sri Lanka, Myanmar, Malaysia, Singapore, Indonesia, Vietnam, Philippines, Thailand.
Copyright 2024 Fujitec All Rights reserved17Three pillars of the new Mid term plan, Move on fiveA

Move On５,
Vision for B
FY2028 in
the new
Mid-termplan
C

Copyright 2024 Fujitec All Rights reserved

Selection andconcentrationof regional/
business mix

 Clarifying the strategic positioning of regional businesses Appropriately allocating resources and defining clear directions for
initiatives based on the "focal points" of each region

 Emphasizing both quality and profitability
Achieving both  Optimizing the supply chain and standardizing models andconstruction methods in NI and MOD
high quality
 Enhancing smart productivity and operations in maintenanceand high
through digital technology
profitability
 Reducing SG&A by standardizing admin and sales operations,
implementing BPR, and improving operational productivity

Building arobustbusinessfoundation

 Establishing a group management system and building a PMO
structure with clear responsibilities and roles
 Developing global talent to support high quality andbusiness growth Further strengthening ESG management

18

Business Strategy
A Regional/BusinessSelection & Concentration

Copyright 2024 Fujitec All Rights reserved

19Principle of regional selection/concentration
We segment regions with clear framework and identify “FOCUS” and “HOW” to implement
High

Business feasibility1

High

Grow

Market life cycler

Emerging
markets
NI demand
drivesgrowthServicedemanddrivesgrowthTurnaround or Exit

Focus:
 NI portfolio increase and profitable increaseHow: Promote area-focused investment and sales expansion
incl. inorganic growth

Stabilize
Maturemarkets

Low

Focus: Current business mix
How: Maintain share, andprofitability throughorganic growth + share up (selective)

Refocus
Focus:
 MOD/Maint. businessHow: Faster MOD install Higher retention rate Taking sharesfrom competitors
 + Margin enhancement

Focus:
 Turnaround to drive future
growth in profitability
or exitsHow: Implement intensive
turnaround program throughmultiple levers with acertain timeframe Consider exit if
improvements are notexpected within a set period

Low
1. Based on multiple aspects: Sales size, OP margin(%), competitive advantage, macro-trend, etc
Copyright 2024 Fujitec All Rights reserved

20Impact from business strategy: Selection and concentration
Each regional segment will contribute to achieving both growth and margin targets

FY2023

IND

Refocus
IDN

Stabilize

JPN

USA

SGP HKGCAN

MEX

MYS ARG

Turnaroundor Exit1

FY2028CHN TWN・・・・・・

OP margin(100 million yen)

Grow1

440

80
30
150
145

OP Margin(%)

6.4%

30

13.5%

1.List only the major countries
Copyright 2024 Fujitec All Rights reserved

21Regional Selection/Concentration
Deep-dive (1/4) : Grow - India
Grow

Turnaround

Multi-brand strategy enables accumulating NI portfolio beyond
market growth
Strategy1: FUJITEC INDIA

Stabilize

RefocusSouth Asia (incl. India)(100 million yen) FY2023

Sales

FY2028Strategy2: FUJITEC EXPRESS

Focuses on strategic key cities
and CBDs1 with competitive
strength

Further strengthen brand of thesecond brand 'FUJITEC
EXPRESS'

Capture projects with tailoredproducts and enhanced sales
efforts

Focus on mass market and win
contracts for NI & Maint.

Boost local production capacity for India-wide sales expansion

+12%

NI
Maint./
MOD
Export/
other

310
~5%
~55%
~40%

OP
margin(%)

16%

Copyright 2024 Fujitec All Rights reserved

540
~5%
~40%
~55%

16%

Leverage customer contact with digital tools/apps
to improve both sales efficiency & customer loyalty

1. CBD (Central business district) is a major business and commercial district

22

Regional Selection/Concentration
Deep-dive (2/4) : Refocus – North America
Grow

Stabilize

TurnaroundKey issues and countermeasures

RefocusAmericas & Europe (incl. North
America)(100 million yen) FY2023

Sales

MOD

Export/other

Initiatives for Mid-term plan Intensified competition with ISP Maint. quality improvement
 Faster Maint. services

 Inorganic growth considerations
for further top-line growth Consideration/execution of M&Aof ISPs Inadequate reflection of MOD
market needs

 Expansion of MOD pkg products
fulfilling market needs

 Lack of competitiveness of NI
models Introduction of new NI products

Cost Insufficient production cost
reduction

 Further utilization of EEVI(Mexico)Fnd.

 Difficulty in hiring skilled workers

 Recruitment enhancement

ToplineFY2028

560
550

457
~5%
320
~70%

~5%

20
10
~70% 200

160

130
~25%
OP
margin(%)

Current issues and initiatives taken+5%

NI
Maint./

Through diversification of product and rebuilding of supply chain
along with M&A, North America increase share and improve OP

3%

Copyright 2024 Fujitec All Rights reserved

320
~25%

12%

23

Regional Selection/Concentration
Deep-dive (3/4) : Refocus – JapanGrow

Stabilize

Turnaround

Japan targets to improve profitability but also grow by enhancing
field personnel capabilities and introduce new product etc.,
Key issues and countermeasures

Refocus

Current issues and initiatives taken

Initiatives for Mid-term plan

 Additional raw material priceincreases control measures

 Dev. & introduction of new
standardized (elevator) product Responding to the rise of ISPs Expansion of Maint. resource
partnership Acquisition of MOD projects forother companies' elevators

 Expansion of MOD products

Cost Inflation countermeasure Increase price based on material
cost inflation outlook

Cost+
Topline

 Staff shortage &the 2024 problem

 Productivity improvement throughdigital & man-hour management
 HR & Compensation management
improvement to secure talent

ToplineJapan(100 million yen) FY2023

Sales

+5%

NI
Maint./
MOD

Export/
other

1,140
880

~5%

~5%

~60%

~60%
~35%

OP
margin(%)

FY20288%

Copyright 2024 Fujitec All Rights reserved

~35%

15%

24

Regional Selection/Concentration
Deep-dive (4/4) : Turnaround – China (1/2)
GrowStabilize

Execute a turnaround by tackling six comprehensive issues from
topline to operational foundation, and get back on a growthtrajectory

TurnaroundKey issues and countermeasures

Refocus

6 key issues causing downturn
ToplineEast Asia (incl. China)(100 million yen) FY2023

Sales

+8%

NI

~10%

MOD

793
~20%
~30%
~50%

OP
margin
(%)

Cost

~30%

Copyright 2024 Fujitec All Rights reserved

 Right focus on key sub-markets
and define Go-to-Market strategy

 Inadequate A&D management

 A strong A&D network
establishment & collaboration
enhancement
 ISP M&A and conversion rate
improvement initiatives

 Lack of price competitiveness in
products
 Inefficient sales network/ org
structure

~60%

Fnd.
2%

 Insufficient selection &concentration of focus markets

 Delay in establishing org system
to expand service business

1,160

Maint./
Export/other

FY20289%
1.

6 levers to unlock turn-around Inadequate performance
management functions

A&D stands for Agent and Distributor

 Dev. & introduction of low-costequipment through rigorous costmanagement initiatives
 Consolidate branch network andstreamline organization
 Performance management
operations redesign &management enhancement25Regional Selection/Concentration
Deep-dive (4/4) : Turnaround – China (2/2)

Stabilize

Turnaround

Refocus

Despite market stagnation due to the real estate
downturn, targeting high-potential segments could
leverage Fujitec's strengths can drive revenue growth.
Features of potential market

East Asia (incl. China)(100 million yen) FY2023

Sales

+8%

NI

1,160

Maint./

793
~20%
~30%
~50%

OP
margin(%)

Prioritizes high quality and brandwith low price sensitivity

~10%

MOD

Export/other

FY20282%

Copyright 2024 Fujitec All Rights reserved

~30%
~60%

9%

Geographic demand focuses onprosperous coastal andhigh-tier cities

Examples of market segmentsHomeelevator Demand from wealthy
and youth-driven rural
return trend drive market
growthAdd-OnProject

 Government support andinfrastructure investment
drive market growth

Small
Infra

 Hospital expansion in
mid-sized cities drive
market growth

KA
Residential

 State-owned enterpriseinvestment drive market
growth

・・・

Grow

26

Business Strategy
Ｂ

High quality & high profitability

Copyright 2024 Fujitec All Rights reserved27Impact from business strategy: Company-wide margin
improvement initiatives
Company-wide margin improvement initiatives largely contribute to profitability/productivity(100 million yen)

FY2023

Regional
Selection/
Concentration Overarching margin improvement initiatives(100M yen)

Smart
Productivity w/
margin improv.

Streamlined
Supply chain &Manufacturing

Maintenance

NI/MOD

Mitigate inflation impact
and boost margins
via diverse initiative

FY2028

Employee
Empowerment
w/ lower cost

440
40

160

20
145

OP Margin(%)

6.4%

Copyright 2024 Fujitec All Rights reserved

80

13.5%
28

Company-wide margin improvement initiatives
Deep-dive (1/3): smart productivity with margin improvement
Smart productivity and operational Improvement to enhance field profitability

TargetProductivity improv. per
employee at major refocus sites

GP margin
vs. 2023+2pt1
Mitigate inflation
impact and boost
margins via
diverse initiatives

~+19%

~+19%

Key initiatives
Operation improvement for further
margin and productivity improvement
 Top-line improvement: Pricing, Contract review
 Productivity improvement: Geographic concentrationof portfolio for efficient coverage, Increased
specialization of talents
 Other Initiatives for Engineers: Dev. & introduction of
new installation method, Capability enhancement w/
training etc., Revision of salary/contract

Smart productivity improvement with
Digital Technologies
 Preventive maintenance with remote monitoring Remote Support / Training
 Efficient operation with AR
 Route-optimization with AI technology

1. Estimate excluding impact from mix change. Gross profit breakdown in Japan is calculated by dividing SG&A based on sales of MOD/Maint.
Copyright 2024 Fujitec All Rights reserved29Company-wide margin improvement initiatives: Examples ofsmart productivity initiatives with digital technologies
Preventive maintenance systems withremote monitoring

Remote Support and Remote Training

Deploy global remote monitoring systems (GRMS) with AI
analysis capabilities in all sites and increase maint. productivity

Accelerate installation of smart equipment with connected tech.
to shorten maint. time by allowing real-time support

Handsfree- visualcommunication while working

Real time support fromback office

Efficient Operation with AR

Routes optimization for maintenance with AI

Maintenance systems and tools with AR in each site to improve
maintenance productivity

AI-based automatic routing systems for maintenance to reduce
maintenance time and improve efficiency
Call
back

RMS
Facility

Unit

Staff
location

Earthquaque
Schedule

AI × Google map
Automatic rounting

Copyright 2024 Fujitec All Rights reserved30Company-wide margin improvement initiatives
Deep-dive (2/3): Streamlined supply chain and manufacturing
Supply chain optimization and standardization PF will improve manufacturing and construction costs

TargetKey initiatives

NI+14pt1Gross profit margin
vs. FY2023

MOD
+8pt1
Gross profit margin
vs. FY2023

Standard Model/Standard
construction methods
 Reduce parts cost with standard
models/systems
 Reduce construction time with simple
structure and easy installation methodologies

Optimization of Make or Buy
 Optimize Inhouse/Outsource andLocal/Global andenhance cost competitiveness

Optimization of production footprint Leverage sites with capacity andcost competitiveness(e.g., India, China)
 Diverse risk with multiple prod. Sites

Lead
COGS reduction
 Contribute to
reduction ofmaterial /labor costs

Streamlining the
supply chain as afoundation for
COGS reduction
measure1. Estimate excluding impact from mix change. Gross profit breakdown in Japan is calculated by dividing SG&A based on sales of MOD/Maint.
Copyright 2024 Fujitec All Rights reserved31Company-wide margin improvement initiatives: Examples of
streamlined supply chain and manufacturing

Reduce product cost throughintroduction of standard models

Improve installation method byautomation/robotization

Introducing & deploying standard, simple-design models for
optimal quality/cost balance regionally

Globally roll-out original robots/ automation equipment
jointly developed with robot companies toimprove efficiency

Copyright 2024 Fujitec All Rights reserved32Company-wide margin improvement initiatives
Deep-dive (3/3): employee empowerment with lower cost
Improve SG&A ratio through BPR, IT infra/productivity improvement and other SG&A cost levers

TargetKey Initiatives
Admin/Sales OPs standardization & BPR
 Efficiency improvement of routine/non-routine operations by implementationof Fujitec Gen GPI
 Efficiency improvement of admin/sales operations by RPA
 Improve operation efficiency by BPR+2pt
Operatingprofit margin
vs. FY2023

IT infra. Renewal and Productivity improv./Cost reduction
 Significant productivity improvement and cost reduction in Ops costs by IT
infra. Renewal
 Efficiency improvement by DX promotion for sales operation

Disciplines on spends for other SG&A
 Further productivity improvement
 Review and reduce other spends – labor, rent, travel etc.

Copyright 2024 Fujitec All Rights reserved33Company-wide margin improvement initiatives:
Examples of potential SG&A reduction levers
Starting to review SG&A spends and reviewing several cost reduction potential levers

Major cost reduction levers
Labor

Further review of personnel cost (in addition to OPs standard. & BPR
and IT infra. update) Benchmark other companies to set the target scale, optimize Span-of-Control
 Natural decrease due to retirement, Hiring-freeze, etc.

Rent

Review of office rent Consolidation/Integration of offices, maximize space utilization, etc.

TravelStricter rules for business trips and transportation expenses
 Air ticket booking deadline, cap on accommodation charge, frequency ofbusiness trips optimization, etc

Advertisement

Review of advertisement
 Event frequency optimization, prioritization of advertisements, etc.

OthersScrutiny and review of contracts
 Competitive quotes, Internal/External benchmark on unit price, etc.

Copyright 2024 Fujitec All Rights reserved

34

Business Strategy
C

Strong business foundation

Copyright 2024 Fujitec All Rights reserved

35

Strong BoD with diverse backgrounds
Directors

Outside Directors

67%
Independence
Masayoshi Harada

Takeshige Nakajima

Kaoru Umino

CEO from 2023
Joined Fujitec
in 1984

GM of Engineering &Production
Joined Fujitec
in 2019

Chairman of the
Board
Partner, DLA Piper
Tokyo

Clark Graninger

Anthony Black MD of WealthPark
Capital K.K
 Executive officer
at Shinsei Bank
and Aozora Bank1

 Service President,
Husky Injection
Molding Systems
 Global VP,
Service & Field
Operations, Otis
Elevator
Company1

22%
Women

33%
Kosuke Sato

Torsten Gessner

CFO Chairman ＆CEO,
ThyssenKrupp
NA1
 Area Director, Otis
UK & Central
Europe1

Joined Fujitec in 2021

1. Past experience
Copyright 2024 Fujitec All Rights reserved

Ako Shimada

Shakil Ohara

VP, General Counsel
and Corporate
Secretary,
Ushio America

DIGIFIT Corporation
Co-CEO
Maple Associates
Pte Ltd Co-CEO(New Candidates
for Directors)

NonJapanese36Implementation structure
Establish clear roles and responsibility at execution and PMO structure, monitor corporate performance and key
initiatives using KPIs

Operation System
Cadence of Meetings

Steering committee

Strictly define key meeting's
cadence (incl. owner, responsible
personnel for reporting, frequency
and duration) for impact realization
Project Management
Office (PMO)

KPI Monitoring

Region
Cost
Cost
Selection/
Transformation Transformation
Concentration(COGS)(SG&A)

Copyright 2024 Fujitec All Rights reserved

Businessfoundation
enforcement

Working
capitaloptimization

Monitor company-wide performanceand the progress of key initiatives
using KPIs.
 E.g., Unit price, volume,
sales volume per sales
personnel, etc.

37Management compensation
Alignment of management compensation with important KPIs to ensure management
commitment
ApproachCompensation based onachievement of Mid-term
management plan, stock prices
and other important companywide initiatives (TBD; e.g, ESG
targets)
Draft a compensation systemthrough consultation with theNomination and Compensation
Advisory Committee to ensuretransparency

Copyright 2024 Fujitec All Rights reserved

Compensation tied to achievementof KPI
Base Salary

Bonus

RSU

38

ESG (Environment)
We will actively address global environmental issues and contribute to the society

E: Environment

Materialities:
Initiatives to reduce
environmental impact
Related SDGs

Key Themes

Initiatives

Contributing tolower-carbon
society inresponse to
climate changeEnergy Savings

 Expand environmentally-friendly products and services
such as lighter-weight products and energy-saving features(e.g.,standby power reduction)

Product
Lifecycle
Management

 Improve environmental efficiency by improving operational efficiency
together with partner companies– Promotion of environmentally-friendly logistics, etc.

Reduce energy consumption, greenhouse gas emissions, and waste
Strengthen sense of ownership through education on global
warming prevention & decarbonization initiatives
Promote resource conservation, reduction of waste materials, andrecycling by improving products and construction methods
Development and introduction of anti-flood-damage technologies

We will continue
to contribute togreenhouse gas
emission
reduction with theabove initiatives
Copyright 2024 Fujitec All Rights reserved

KPI&Targets

Reducegreenhousegas by 46%
from 2019
scope 1 and 2
to 2030(Reference) Historical CO2 emission data(t)

CO2 emission(left)

CO2 emission/sales (right)

40,00020,000026,55023,69024,290

1.46

1.40

1.30

2019

2020

2021

(t/ 10 Mil
JPY)

4
2
0

39

Various initiatives to achieve a "Safety & Reliability"
and comfortable society
Product verification
Research towers in major hubs fortesting & evaluating various equipment

The pursuit of quality of
product & parts
Pursuit of quality and cost throughparts analysis, failure analysis, etc.

Advanced tech R&D
Development, test & evaluation ofadvanced tech such as (touchless
button) "AirTap"

Pursuit of “Safety & Reliability"& comfort

Implementation of various
initiatives globally

Skill development of on-site staff

Remote monitoring

Upskilling & cultivation of on-site staff in various regions

24/7 monitoring to track the real-time status & collect info

Copyright 2024 Fujitec All Rights reserved40

Human Resource Development
To uphold the pursuit of “Safety and Reliability” and “Focus on Quality”, talent is unequivocally our mostvaluable asset

Foster a culture of challenge
within the organization andprovide a supportive work
environment with evaluationbased reward to facilitate
employee growth

Copyright 2024 Fujitec All Rights reserved

Every employee embodying
hospitality, maintains holistic
well-being and earns hightrust from stakeholders
and customers

Strive to achieve balance oftrusted 'people' and 'skills' forcustomers through diverse
training programs aimed atenhancing the expertiseof employee

41Capital Allocation

Copyright 2024 Fujitec All Rights reserved

42Capital allocation
Enhance capital efficiency through debt utilization, cash compression, and opt. working capital, while balancing
accelerated growth investments with high shareholder returns
Last three years(FY2021-2023) (100M yen)
557

Next five years(FY2024-2028)(100M yen)

557

1,900

1,900

99

250

250

600
198
1,350

545

80%

2

ROE

DOE

18%

15%

12

100

Cash-inCash-inCash-out

3400
Cash-out

Drive Strategic investment
 Invest in high-growth regions
 Conduct M&A in areas of focus

Debt
Cash

200

Leverage Liabilities
 While maintaining financial health,actively reduce cash on handand increase debt utilization

After-tax OCF 1

Increased working capitalfrom sales

124

Optimize working capital Improve the working capitalturnover in each region to industry
standards to curb capital outflow

Payoutratio

Opt. working capital

650

136

1

4

Renewal & capacity
expansion investment
Dividend
Strategic investment or
additional shareholder returns

Higher shareholder return High-level shareholder returns witha target payout ratio of 80%
 Dynamically conduct sharebuybacks while ensuring strategic
invest. for growth

1. includes investment cash flows such as dividend receipts, fixed deposit receipts, and receipts from policy-held stocks
Copyright 2024 Fujitec All Rights reserved

43Appendix

Copyright 2024 Fujitec All Rights reserved

44

Acceleration of renewal & capacity expansion & strategic
investment in M&A globallyContent of renewal & capacity expansion and strategic investment (overview)

Renewal & capacity
expansion investment


Investment in capacity expansion for
new Elevator and Escalator plants

Investment in production capacity for
manpower-saving & automation at
global plantsCompletion of quality lab

Renewal & expansion of existing
facilities & equipment– Expansion of MOD training facility– Update of service center

Copyright 2024 Fujitec All Rights reserved

Strategic investment for M&A
 M&A investments in North America &Japan to strengthen capabilities andimprove profitability in the services
business M&A investment to achieve a quick win in
the growth segment in China & strengthen
portfolio in maint. Business M&A investment in South Asia to achievea rapid growth45

Upside opportunity and Business risk / Countermeasure
Upside effects by additional measures while minimizing business risks
Opportunity

Margin of maintenance SG&A

Business viability

Margin of NI/ MOD














Further acquisition of NI/MOD units throughadditional M&A in South Asia and Japan
Further reduction of component costs in China
Margin improvement through MOD PKG
and SC optimization in mature markets
such as Singapore and Hong Kong
Profitability improvement of MOD throughlaunching specialized projects in North
America and Japan, where market growthpotential is significant
In East Asia/China, further improvement of
conversion rates through providing highvalue-added and high-quality services
In mature markets such as Singapore andHong Kong, development of new models/
services, utilizing unique new technologies
and multifaceted measures on digital/
analog to achieve margin improvement
Further increase in maintenance stock inJapan through additional M&A
Further efficiency improvements in admin/sales operations and intensified efforts tocontrol expenses across all regions,leading to further reduction of SG&A

Business
Foundation
Copyright 2024 Fujitec All Rights reservedーBusiness Risk and CountermeasureGlobal economic downturns leading to
NI/MOD market growth slowdown

 Review and reallocation of resources
according to market conditions, regional
strategies / measures

Loss of price competitiveness due to priceincreases, customer attrition

 Further enhancement of high-quality
service delivery to improve customer
satisfaction and loyalty

Damage to stable product supply anddeviation from customer needs due todifficulties in introducing new models andoptimizing the supply chain throughconsolidation of production bases

 Supply chain optimization, regularmonitoring of progress and effects of
new model introductions, also thoroughprevention by identifying risk factors inadvance

Excessive resource allocation andincreased costs for multifaceted measures
aimed at improving conversion rates andmargins

Loss of talent and missed growth
opportunities due to excessive restrictionof various expenses and management
costs



Strengthening business foundations andSG&A cost control counteract each other,failing to achieve expected effects

 Under a strict PMO structure, firmly
monitoring both business growth andprofit margin improvement
 Formulation of action plans that balance
SG&A reduction and robust foundationbuilding, monitoring of above measures
as well46

(Ref.) market (TAM1 ) outlook in each major regions
Rapid
growthNI

MOD

GrowthFlat

SluggishgrowthMaint.

Japan

Redevelopment in urban & local
areas drives strong andcontinuous demand for NI

Model changes & renewals drive
higher MOD demand

North
America

Growth in NI market slows, mainly due
to changes in the politicalenvironment, incl. the U.S. presidential
election & the economic slowdown

Needs for updates and renewalsof building facility drive higher
MOD demand

India

Moderate & low-priced NIs remain
the major products of the market,
driving market growth

MOD is expected to grow further
by the government's focus on
infrastructure development

Spread of connected tech inmaint. will drive market growthSouth Asia

Government-led infrastructure
investment & redevelopment ofresorts that addresses tourism
recovery drives NI growth
While some segments grow, suchas home elevators, NI declined
due to government regulation onreal estate investment
Economic recession and stagnant
real estate dev. have slowed thegrowth of the NI market

Demand for connected MODs withpreventive maint. functions are
expected to grow

Increased demand for maint. of
infrastructure & commercial
facilities drives market growth

Government incentives for MOD
will likely be a tailwind for further
growthThe rapid increase in demand formaint. & after-sales service due tothe aging of previously installed
equipment
Demand for maint. remains stable
due to inflation, etc.

China

East Asia

Commercial renovation & urban
redevelopment PJs drive MOD
market growth

Growth in maint. of manufacturers
is flat due to a slowdown in NI
cases & the rise of ISPs
(independent maint. companies)
Stable demand growth in maint.
is expected

1. Total Addressable Market
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47

Copyright 2024 Fujitec All Rights reserved