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, the original shall prevail.
The Company assumes no responsibility for this translation or for any direct, indirect or other forms of damages arising from thetranslation.

Securities Code: 6482
June 10, 2024
Dear Shareholders,

Notice of Convocation for
the 51 Ordinary General Meeting of Shareholdersst

We would like to express our deepest appreciation for your continued support and patronage.
Notice is hereby given that the 51st Ordinary General Meeting of Shareholders of YUSHINPRECISION EQUIPMENT CO., LTD. will be held as set out below:
This General Meeting of Shareholders has adopted electronic provision measures. Therefore, in accordance with Article 325-3 of the Companies Act, we have posted the electronic provision measure matters on our website on the Internet (https://ir.ype.co.jp/en/stock/meeting.html), where you can check thedetails.
In addition to our website, we have also posted the matters on the Tokyo Stock Exchange (TSE) website (https://www2.jpx.co.jp/tseHpFront/JJK020010Action.do?Show=Show), where you can access thematters by 1) searching for “YUSHIN” in the issue name (company name) filed or “6482” in the code field,2) selecting “Basic Information” – “Documents for Public Inspection/PR Information.”
If you do not intend to attend the meeting in person, you may exercise your voting rights inwriting or by electromagnetic means (the Internet and others). Please refer to the enclosed Reference
Documents for the General Meeting of Shareholders and exercise your voting rights no later than
5:30 p.m. on Monday, June 24, 2024 (JST).
Details1.
2.

Date and Time:
Venue:

Tuesday, June 25, 2024 at 10 a.m.
Conference Room on the 6th Floor,
Head Office of YUSHIN PRECISION EQUIPMENT CO., LTD.
555 Kuzetonoshiro-cho, Minami-ku, Kyoto

3.

Objectives of the Meeting:
Matters to be reported:a)b)

Business Report and Consolidated Financial Statements for the 51st
Fiscal Year (from April 1, 2023 to March 31, 2024) as well as theaudit reports from the Accounting Auditor and the Board of Corporate Auditors on the Consolidated Financial Statements
Report on the Non-Consolidated Financial Statements for the 51st
Fiscal Year (from April 1, 2023 to March 31, 2024)

Matters to be resolved:
Proposal 1: Partial Amendments to The Articles of Incorporation
Proposal 2: Election of Seven (7) Directors
Proposal 3: Election of Two (2) Auditors
Sincerely Yours,
Takayo Kotani
Representative Director and President
YUSHIN PRECISION EQUIPMENT CO., LTD.
555 Kuzetonoshiro-cho, Minami-ku,
Kyoto, Japan– 1 –Notes:In the event of any modifications to electronic provision measures matters, the information before and after the modifications
will be posted on the respective websites listed on the previous page.
Among electronic provision measures matters, “Matters Relating to the Development of Systems to Ensure Proper Operations”,“Overview of the Business Operations of the Systems to Ensure Proper Operations”, “Consolidated Statements of Changes in
Equity”, “Basis of Preparing Consolidated Financial Statements and other Notes”, “Statements of Changes in Equity” and “Significant Accounting Policies and other notes” are not included in the documents delivered to shareholders who have requested
delivery of such documents, pursuant to the provisions of laws and regulations and Article 14, Paragraph 2 of the Articles ofIncorporation of the Company.
“Matters Relating to the Development of Systems to Ensure Proper Operations” and “Overview of the Business Operations of
the Systems to Ensure Proper Operations” are included in the business report audited by the Corporate Auditors in preparing theauditor’s report. “Consolidated Statements of Changes in Equity”, “Basis of Preparing Consolidated Financial Statements andother Notes”, “Statements of Changes in Equity” and “Significant Accounting Policies and other notes” were audited by the Accounting Auditor and the Corporate Auditor as part of the Consolidated Financial Statements and the Non-consolidated Financial
Statements in preparing the Audit Report.

– 2 –Reference Documents for the General Meeting of Shareholders
Proposal 1: Partial Amendments to The Articles of Incorporation
1. Reason for the proposal
The Company was established under the name “株式会社ユーシン精機” in Japanese and “YUSHINPRECISION EQUIPMENT CO, LTD.” in English in accordance with the founder’s wish to “become atrustworthy company” and has remained so to this day. In order to carry forward this wish, further strengthen
our brand, and achieve sustainable growth and increase our corporate value in the medium to long term, weare changing Article 1 (Corporate Name) of the current Articles of Incorporation to a new corporate name,“ＹＵＳＨＩＮ株式会社” in Japanese and “Yushin Company” in English.
The effective date of this partial amendment to the Articles of Incorporation will be April 1, 2025, with a
Supplementary Provisions, which will be deleted after the effective date.
2. Reason for the amendments
Current(Corporate Name)
Article 1
The name of the Company shall be 株式会社ユーシン 精 機 in Japanese and YUSHIN PRECISIONEQUIPMENT CO, LTD. in English.
(newly added)

Proposed Amendments(Corporate Name)
Article 1
The name of the Company shall be ＹＵＳＨＩＮ株
式会社 in Japanese, and Yushin Company in English.
(Supplementary Provisions)(Transitional measures regarding the corporate namechange)Article 1
1. The change in Article 1 (Corporate name) of the
Articles of Incorporation shall become effect on
April 1, 2025.
2. The provisions of this Article shall be deleted after
the effective date of the corporate name change.

(newly added)*Underlines indicate changes.

Proposal 2: Election of Seven (7) Directors
The terms of office of all eight (8) Directors will expire at the conclusion of this General Meeting of
Shareholders.
Therefore, the Company is asking shareholders to vote for these seven (7) Director nominees, reducing
the number of Directors by one (1).
The nominees are as follows.

No.

Current position in
the Company

Name

Responsibilities and major concurrent positions

1

Takayo Kotani

Reappointment

Representative Director andPresident

2

Kota Oda

Reappointment

Director andExecutive Vice President

General Manager of
Administration Division

Executive Managing Director

General Manager of
Manufacturing Division
and General Manager ofPurchasing Division

3

Yasushi Kitagawa

Reappointment

– 3 –

4

Tomohiro Inano

5

Yasuo Nishiguchi

Reappointment

Managing Director

General Manager ofSales Division

Director

Chairman of YAMADA
Consulting Group Co.,Ltd.

Director

Professor emeritus at
Kyoto University

Director

Outside Director (Audit
and Supervisory Committee member ) of
LUCKLAND CO., LTD.

Reappointment
External Independent

Reappointment
6

Hiroshi Matsuhisa
External Independent

Reappointment
7

Reiko Nakayama
External Independent

– 4 –

No.

Name
(Date of birth)

Brief biography, positions, responsibilities, and major concurrent positions
Reappointment

Takayo Kotani

April 2008
October 2008
April 2009
April 2019
June 2019
June 2020
October 2020

(August 26, 1977)
June 2021

1

Joined the Company
Manager of R&D Section
General Manager of R&D Department
Executive Officer and General Manager of R&D Department
Executive Officer and General Manager of R&D Division
Managing Director and General Manager of R&D Division
Director and Executive Vice President
and General Manager of R&D Division
Representative Director and President (to present)

Number of shares held: 1,968,532 shares
Reasons for appointment:
Takayo Kotani has been involved in R&D, promotion of development strategies and management, and has a wealth ofexperience and accomplishments. Her achievements have been socially recognized, such as receiving the Japan Societyof Mechanical Engineers Prize for the development of robot technology. Since June 2021, she has served as Representative Director and President, taking the lead in formulating management strategies for sustainable growth and strengthening the Company’s organizational structure. The Company has nominated her as a Director because she is expected
to strengthen the decision-making and supervisory functions of the Board of Directors.
Reappointment
October 2015
April 2019
June 2020
June 2021
2

Kota Oda(June 10, 1978)

June 2022

Joined the Company
as General Manager of General Affairs Department
Executive Officer
and General Manager of General Affairs Department
Directorand General Manager of General Affairs Department
Managing Director
and General Manager of General Affairs Department
Director and Executive Vice President
and General Manager of Administration Division (to present)

Number of shares held: 15,000 shares
Reasons for appointment:
Kota Oda has extensive experience and success in overseeing and managing corporate divisions. As Executive Vice
President since June 2022, he has taken the lead in formulating strategies for the Company's sustainable growth andstrengthening the organizational structure. The Company has nominated him as a Director candidate as he is expected
to further strengthen the decision-making and supervisory functions of the Board of Directors.

– 5 –

No.

Name
(Date of birth)

Brief biography, positions, responsibilities, and major concurrent positions
Reappointment
September 2007
November 2007
April 2008
April 2009

August 2009
June 2010
June 20133

Yasushi Kitagawa

June 2017(August 12, 1958)
July 2020
June 2021

Joined the Company
Deputy General Manager of Manufacturing Division
Deputy General Manager of Manufacturing Division
and Quality Assurance Department
Executive Officer,
Deputy General Manager of Manufacturing Division
and Quality Assurance Department
Executive Officer, General Manager of Manufacturing Division
and Quality Assurance Department
Director and General Manager of Manufacturing Division
and Quality Assurance Department
Managing Director and General Manager of Manufacturing Division
and Quality Assurance Department
Executive Managing Director
and General Manager of Manufacturing Division
and Quality Assurance Department
Executive Managing Director
and General Manager of Manufacturing Division
Executive Managing Director
and General Manager of Manufacturing Division
and General Manager of Purchasing Division (to present)

Number of shares held: 11,000 shares
Reasons for appointment:
Yasushi Kitagawa has been involved in the management and operation of production and purchasing, and thus has
extensive experience and achievements in the business. The Company has nominated him as a Director as he is expected
to strengthen the decision-making and supervisory functions of the Board of Directors.
Reappointment
June 1989
August 2005
April 2008

4

Tomohiro Inano(December 13, 1962)

July 2009
February 2010
March 2011
March 2014
June 2017
June 2022

Joined the Company
General Manager of YUSHIN PRECISIONEQUIPMENT TRADING (SHENZHEN) CO., LTD.
General Manager of Chinese Area and YUSHINPRECISION EQUIPMENT TRADING (SHENZHEN) CO., LTD.
Assistant to General Manager of Sales Division
Deputy General Manager of Sales Division
General Manager of Sales Division
Executive Officer and General Manager of Sales Division
Director and General Manager of Sales Division
Managing Director and General Manager of Sales Division(to present)

Number of shares held: 14,300 shares
Reasons for appointment:
Tomohiro Inano has been involved in management and operations, including sales, and has extensive experience andsuccess. The Company has nominated him as a Director because he is expected to strengthen the decision-making andsupervisory functions of the Board of Directors.

– 6 –

No.

Name
(Date of birth)

Brief biography, positions, responsibilities, and major concurrent positions
Reappointment
March 1975
June 1987
June 1992
June 1997
June 1999
June 2003
June 2005

Yasuo Nishiguchi
5(October 9, 1943)

April 2006
June 2009
June 2014
March 2015
June 2016
March 2018
April 2020

External

Independent

Joined Kyoto Ceramic Co., Ltd.(currently KYOCERA Corporation)
Director
Senior Managing Director and Representative Director
Executive Vice president and Representative Director
President and Representative Director
President and Representative Director and President
and Executive Officer
Chairman of the Board and Representative Director,
and Chief Executive Officer
Advisor and Director
Retired from the office of Director
External Director of the Company (to present)
Chairman and CEO of Socionext Inc.
Outside Director of YAMADA Consulting Group Co., Ltd.
Retired from Chairman and CEO of Socionext Inc.
Chairman of YAMADA Consulting Group Co., Ltd. (to present)

Number of shares held: 59,400 shares
Reasons for selection as a candidate for External Director and expected role:
The Company has renominated Yasuo Nishiguchi as a candidate for External Director in order to continue to utilize hisknowledge and experience in all aspects of management, which he has cultivated through his key positions as President
and Representative Director and the Chairman of KYOCERA Corporation, in the management of the Company. He is
expected to strengthen the functions of the Company’s Board of Directors by advising and supervising managementfrom an independent standpoint, utilizing his expertise as a person with management experience.
Reappointment
June 1976
October 1987
April 1994

Hiroshi Matsuhisa
6(August 5, 1947)

April 2012
June 2014
June 2016
June 2018

External

Independent

Research Assistant of school of precision engineering in Faculty ofEngineering at Kyoto University
Assistant professor
Professor( transferred to graduate school of department of Mechanical Engineering and Science by a reorganization in 1995)
Professor emeritus at Kyoto University (to present)
External Director of the Company (to present)
Outside Corporate Auditor ofTechnology Seed Incubation Co., Ltd.
Retired from Outside Corporate Auditor ofTechnology Seed Incubation Co., Ltd.

Number of shares held: 25,000 shares
Reasons for selection as a candidate for External Director and expected role:
The Company has renominated Hiroshi Matsuhisa as a candidate for an External Director in order to continue to utilize
his expertise as an academic expert in engineering in the management of the Company. He is expected to strengthen thefunctions of the Company’s Board of Directors by advising and supervising management from an independent standpoint. Although he has no direct business management experience, the Company believes that he has the ability toproperly perform the duties as an External Director of the Company as described above.

– 7 –

No.

Name
(Date of birth)

Brief biography, positions, responsibilities, and major concurrent positions
Reappointment
April 1983

Reiko Nakayama

7

January 1997
March 2000
October 2004
October 2008
February 2009
March 2013
March 2015
March 2016

(April 2, 1959)
June 2018
June 2019
June 2023
Number of shares held: 20,062 shares

External Independent

Joined Japan Associated Finance Co., Ltd. (currently JAFCO Group
Co., Ltd.)
Joined Marusan Securities Co., Ltd.
General Manager of Investment information
General Manager of Underwriting
Part-time Director of LivTech, Inc.
Director and Head of Administrative H.Q. of LivTech, Inc.
Retired from the office of Director of LivTech, Inc.
Outside Director of LUCKLAND CO., LTD.
Outside Director (Audit and Supervisory Committee member) of
LUCKLAND CO., LTD.
(to present)
External Director of the Company (to present)
Outside Director of Mandom Corporation
Retired from Outside Director of Mandom Corporation

Reasons for selection as a candidate for External Director and expected role:
The Company has renominated Reiko Nakayama as a candidate for External Director to continue to apply her rich insightbased on her experience as a general manager of an underwriting department of a securities company, an officer in chargeof administration of an operating company, and an External Director to the management of the Company. She is expected
to strengthen the functions of the Company's Board of Directors by advising and supervising management from an independent standpoint.
Notes:
1.
2.
3.
4.

5.

6.

7.

8.

The candidates for Directors have no special interests in the Company.
Takayo Kotani’s registered name is Takayo Oda.
Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama are candidates of External Directors.
Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama are the present External Directors of the Company. Yasuo
Nishiguchi and Hiroshi Matsuhisa, their term of office as an External Director of the Company is respectively ten (10)years at the conclusion of this General Meeting of Shareholders, Reiko Nakayama, six (6) years.
The Company has registered Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama as Independent Officers provided in the rules of the Tokyo Stock Exchange. If Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama are reappointed, the Company plans to continue to make them Independent Officers.
The Company has concluded an agreement with Yasuo Nishiguchi, Hiroshi Matsuhisa, and Reiko Nakayama to limit
their liabilities for damages under Article 423, Paragraph 1 of the Companies Act in accordance with the provisions ofArticle 427, Paragraph 1 of the Companies Act. The maximum amount of liability for damages under such agreement
shall be the minimum amount of liability under Article 425, Paragraph 1 of the Companies Act. If Yasuo Nishiguchi,
Hiroshi Matsuhisa and Reiko Nakayama are reappointed, the agreement will be continued.
The Company has concluded an indemnification agreement with Takayo Kotani, Kota Oda, Yasushi Kitagawa, Tomohiro
Inano, Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama to guarantee the expenses set forth in Article 430-2,
Paragraph 1 of the Companies Act and the loss set forth in Item 1 and 2 of that paragraph to the extent stipulated by laws
and ordinances. If the reappointment of each candidate is approved, the Company plans to continue the agreement witheach person.
The Company has concluded Directors and Officers Liability Insurance (hereinafter referred to as “D&O Insurance”) as
stipulated in Article 430-3, Paragraph 1 of the Companies Act with an insurance company. The insurance will cover any
damages, etc. (However, damages that fall under the reasons for exemption specified in the insurance contract are excluded.) that Directors are liable for damages due to their work. The Company bears the entire premium for D&O insurance. If Takayo Kotani, Kota Oda, Yasushi Kitagawa, Tomohiro Inano, Yasuo Nishiguchi, Hiroshi Matsuhisa, and Reiko
Nakayama are reappointed, they will continue to be insured by D&O insurance. The contract period for D&O insurance
is one year, and it will be renewed after a resolution by the Board of Directors before the expiration of the period.

Proposal 3: Proposal 3: Election of Two (2) Corporate Auditors
Katsumi Noda, Corporate Auditor, and Hiroho Kamakura, Corporate Auditor, will retire from office upon
the expiration of their terms at the conclusion of this General Meeting of Shareholders.
Therefore, the Company proposes the election of two (2) new Corporate Auditors.
The Board of Auditors has agreed to this proposal.
The nominees for Corporate Auditors are as follows

– 8 –

No.

Name
(Date of birth)

Brief biography, positions, responsibilities, and major concurrent positions
Newly appointed
October 2013
July 2015
April 2017

April 2020
1

Masahito Fukui(June 30, 1960)

June 2020
June 2022

Joined the Company as General Manager of Internal Audit Office
General Manager of Accounting Department
Executive Officer
and General Manager of Corporate Management Department
and General Manager of Accounting Department
Executive Officer
and General Manager of Corporate Management Department
Directorand General Manager of Corporate Management Department
Director, Corporate Management (to present)

Number of shares held: 5,000 shares
Reasons for appointment:
Masahito Fukui has extensive experience and success in management and operations, including group accounting andfinance, IT systems, and auditing. The Company has nominated him as a Corporate Auditor because he is expected tostrengthen the auditing function by applying his experience and achievements to auditing duties.
Newly Appointed
October 1980
March 1985
July 1999
July 20192

Yoshiki Yamada(January 26, 1954)

June 2020
June 2021

July 2021
Number of shares held: - shares

External

Independent

Joined Tohmatsu Awoki & Co. (currently Deloitte Touche Tohmatsu
LLC)
Registered as a Certified Public Accountant
Appointed as a partner of Tohmatsu & Co. (currently Deloitte Touche
Tohmatsu LLC)
Opened and registered Certified Public Accountant Yoshiki Yamada
OfficeOutside Corporate Auditor of Konishi Co., Ltd.
Outside Director (Audits and Supervisory Committee member) of
Konishi Co., Ltd. (to present)
Partner in Rutland Audit Corporation (to present)

Reasons for appointment:
The Company nominated Yoshiki Yamada as a candidate for External Corporate Auditor because the Company expects
that his expertise in finance and accounting as a certified public accountant will be utilized in the Company's auditing
operations, thereby strengthening the auditing function. Although he has not been directly involved in corporate management in the past, for the reasons stated above, the Company believes that he will be able to appropriately perform his
duties as an External Corporate Auditor.
Notes:
1.
2.
3.
4.
5.

6.

7.

8.

The candidates for Directors have no special interests in the Company.
Masahito Fukui is a candidate for Corporate Auditor.
Yoshiki Yamada is a candidate for External Corporate Auditor.
Yoshiki Yamada meets the requirements for Independent Officers set by the Tokyo Stock Exchange and will be appointed
as an Independent Officer if elected.
If Masahito Fukui and Yoshiki Yamada are elected, the Company will enter into an agreement to limit liability for damages under Article 423, Paragraph 1 of the Companies Act in accordance with the provisions of Article 427, Paragraph 1of the same act. The maximum amount of liability for damages under the relevant agreement shall be the minimum
liability amount stipulated in Article 425, Paragraph 1 of the same law.
Pursuant to Article 430-2, Paragraph 1 of the Companies Act, the Company has entered into an indemnification agreementwith Masahito Fukui, under which the Company will indemnify him for the expenses set forth in Paragraph 1 and thelosses set forth in Paragraph 2 of the same Article to the extent provided by law, and will continue such agreement with
him if he is elected.
If Yoshiki Yamada is elected, the Company plans to enter into an indemnification agreement with him pursuant to Article
430-2, Paragraph 1 of the Companies Act, whereby the Company will indemnify him to the extent provided by law for
the expenses set forth in Item 1 and losses set forth in Item 2 of the same Article.
The Company has concluded Directors and Officers Liability Insurance (hereinafter referred to as “D&O Insurance”) as
stipulated in Article 430-3, Paragraph 1 of the Companies Act with an insurance company. The insurance will cover any
damages, etc. (However, damages that fall under the reasons for exemption specified in the insurance contract are excluded) that the Corporate Auditors are liable for damages due to their work. The Company bears the entire premium for
D&O insurance. If Masahito Fukui is elected, he will continue to be insured by D&O insurance. If Yoshiki Yamada iselected, he will be newly insured by D&O Insurance. The contract period for D&O insurance is one year, and it will berenewed after a resolution by the Board of Directors before the expiration of the period.

– 9 –Reference information

Skills Matrix of Directors and Corporate Auditors

Kota
Oda

Director andExecutive
Vice President

Male

✓

Yasushi
Kitagawa

Executive
Managing
Director

Male✓

Tomohiro
Inano

Managing
Director

Male

✓

Yasuo
Nishiguchi

External Director

Male

✓

HiroshiMatsuhisa

External Director

Male

Reiko
Nakayama

External Director

Female✓Masahito
Fukui

Full-time Corporate Auditor

Male

✓

TetsuyaNonakaExternal Corporate Auditor

Male

✓

Yoshiki
YamadaExternal Corporate Auditor

Male

✓

✓

✓
✓
✓
✓
✓

✓
✓

✓

Governance,
Risk management
and Compliance✓

IT and DX✓

Finance and Accounting

Human resource Development
and Sustainability✓

GlobalDevelopment, Engineering,and Quality

FemaleSales and Marketing

Management

Representative
Directorand President

Position

TakayoKotani

Name

Gender

The following table sets forth the list of Directors and Corporate Auditors, if Proposals are approved, andtheir skills.

✓

✓

✓

✓

✓

✓

✓

✓

✓
✓
✓

✓

✓
✓

✓
✓

✓

This table shows the maximum four primary skills of each personnel except “Management”.
This table does not reflect all of the knowledge or experience of each Director and Auditor.

– 10 –✓

(Attached Documents)

Business Report(from April 1, 2023 to March 31, 2024)
1.

Current Business Conditions

Net sales

Operating profit

23,615 million yen

2,437 million yen

5.6% Y/Y(7.7%) Y/YOrdinary profit

Profit attributable to owners of parent

2,586 million yen

1,692 million yen(7.2%) Y/Y(12.0%) Y/Y(1) Progress and achievements
In the business environment surrounding our group during the consolidated fiscal year under review, there
were some differences in the direction of the economy in each region, as geopolitical risks remained due tothe prolonged situation in Russia and Ukraine and the sharp rise in resource prices caused by the unstablesituation in the Middle East continued. In the U.S., domestic demand led economic growth, and capital
investment remained firm, while in Europe, the economy weakened due to economic deterioration causedby monetary tightening, and in China, the economic uncertainty triggered by deteriorating real estate market
conditions, and the recovery in production and consumption was slow and sluggish. The business environment remained severe for our group due to weak domestic and overseas capital investment demand and highenergy and raw material prices.
Under these circumstances, our Group continued to develop new customers on a global scale and expand
sales of medical-related custom-ordered equipment. However, orders for take-out robots were sluggish
worldwide, partly due to sluggish demand for injection molding machines. Although the amount of orders
received for medical-related custom-ordered equipment declined compared to the previous consolidated
fiscal year, when orders were particularly concentrated, we maintained a high level of order backlogs andanticipate sales in the next fiscal year and beyond.
As for the consolidated fiscal year under review, sales in Japan and Asia decreased compared to theprevious consolidated fiscal year, while sales in Europe increased due to the influence of WEMO Automation AB, which became a subsidiary in May 2023, and the contribution of a large sales for medical-related
custom-ordered equipment. As a result, consolidated Net sales increased 5.6% from the previous fiscal year
to 23,615 million yen. As for profits, Operating profit decreased 7.7% from the previous fiscal year to 2,437
million yen, due in part to aggressive investment in human resources despite the deteriorating gross profit
margin caused by soaring raw material prices. Ordinary profit decreased 7.2% to 2,586 million yen despite
foreign exchange gains, and Profit attributable to owners of parent decreased 12.0% to 1,692 million yen.
In this consolidated fiscal year under review, we acquired 100% of the shares of WEMO Automation AB,
making it a subsidiary of the Company. This will enable the Group to enhance its brand value and expand
its market share in the European region, and to realize synergies through the mutual utilization of bothcompanies’ technological and purchasing capabilities.
As a new model in the “PA” series of palletizing robots developed for logistics sites that require rapid
automation due to labor shortages, we began selling the “PA-50LC” in August 2023, which has a lower
overall height and higher transfer capacity while maintaining the space-saving benefits.

– 11 –

Consolidated net sales by product category(Thousands of yen)
Years ended March 31
Product

2023
Amount2024%

AmountY/Y%%

Robots14,154,064

63.3

13,504,094

57.2

(4.6)

Custom-ordered equipment

4,406,207

19.7

5,882,676

24.9

33.5

Parts and maintenance services

3,812,917

17.0

4,228,772

17.9

10.9

Total

22,373,189

100.0

23,615,543

100.0

5.6

– 12 –

Reference information

Current Trend of Business Performances

Net sales

Ordinary profit(Millions of yen)

25,00022,373(Millions of yen)

23,6154,000

20,87420,0003,085

18,473

3,000

2,787

2,608

2,586

15,0002,000
10,000
1,000
5,000

0

0
FY2021

FY2022

FY2023

FY2024FY2021

Profit attributable to owners of parent

FY2022

FY2023

FY2024

Earnings per share(Millions of yen)

(Yen)

2,500

75

2,112
2,000

62.06
1,922

1,827

60

1,692

1,500

45

1,000

30

500

15

0

49.72

0
FY2021

FY2022

FY2023R&D expenses

FY2024FY2021Equity ratio

800

347

367

399

200

FY2024

(%)
10

83.5
492

FY2023

(%)
100

600

FY2022

ROE(Millions of yen)

400

56.50

53.70

83.5

79.0

79.6

75

6.5

7.1
6.1
5.1

50

5

25

0

0
FY2021 FY2022 FY2023 FY2024

0
FY2021 FY2022 FY2023 FY2024– 13 –FY2021 FY2022 FY2023 FY2024

Reference information

Sales Information

Sales by product category
Robots(Millions of yen)

Sales Ratio
Robots

20,00014,282

14,154FY2024

13,50457.2%- decreased by 649 million yen (-4.6%)
from the previous FY to 13,504 million yen.
- Sales decreased due to sluggish demandfor injection molding machines.

10,000Overseas Overseas Overseas
8,911
8,887
8,305
0
FY2022

FY2023

FY2024

Custom-ordered equipment(Millions of yen)
5,882

6,000

Sales Ratio
Custom-ordered
Equipment

4,406

FY2024
24.9%

3,124
3,000

Overseas
4,609
Overseas
1,729- increased by 1,476 million yen(+33.5%) from the previous FY to5,882 million yen.
- Sales increased due to large sales to
medical customers in Europe.

Overseas
2,408

0FY2022

FY2023

FY2024

Parts and maintenance services

17.9%(Millions of yen)

Sales Ratio
Parts andmaintenance services

6,000

4,228
3,467

FY2024

3,812

3,000

Overseas
1,971

Overseas
2,225

Overseas
2,531

FY2022

FY2023

FY2024- increased by 415 million yen(+10.9%) from the previous FY to4,228 million yen.
- Sales are increasing as the number ofrobots in operation increases globally.

0– 14 –

Reference information

Sales Information

Sales by regions
Japan(Millions of yen)
10,000

8,262

8,851

Sales Ratio
Japan

8,168

5,000

- decreased by 682 million yen (7.7%) from the previous FY to
8,168 million yen.
- Demand for capital investment
was sluggish, especially in theelectronics sector.

0
FY2022

FY202334.6%
FY2024FY2024

Asia(Millions of yen)

Sales Ratio
Asia

10,000

6,940

6,860

24.2%

5,726
5,000

- decreased by 1,134 million yen(-16.5%) from the previous FY
to 5,726 million yen.
- Sales declined due to the economic slowdown, especially in
China.

0
FY2022

FY2023

FY2024FY2024

North America(Millions of yen)
6,000

4,103

4,674

Sales Ratio
North America

4,930

3,000

- increased by 255 million yen(+5.5%) from the previous FY to
4,930 million yen.
- Sales of take-out robots and custom-ordered equipment werestrong, especially for mobility
and medical related applications.

0
FY2022

FY2023

FY202420.9%

FY2024– 15 –

Europe
15.7%(Millions of yen)

Sales Ratio
Europe6,000

FY2024

3,704
3,000

1,075

1,333

FY2022

FY2023- increased by 2,371million yen(+177.9%) from the previous FY
to 3,704 million yen.
- Sales increased due to the acquisition of WEMO in Sweden as a
subsidiary and large sales of custom-ordered equipment for medical use.

0
FY2024

Others

4.6%(Millions of yen)

Sales Ratio
Others

3,000

1,500

1,086
492

- increased by 432 million yen(+66.2%) from the previous FY
to 1,086 million yen.
- Sales to Mexico and other markets remained strong.

653

0
FY2022

FY2023

FY2024FY2024– 16 –

(2) Capital investment
The total amount of capital investments made by the Group in the current consolidated fiscal year was
350 million yen, which mainly included 192 million yen for the renovation of the Fushimi Factory.
(3) Financing activities
No material items to report.
(4) Assets and profit/loss
Years ended March 31,

FY2021

FY2022

FY2023

FY2024

Net sales(Thousands of yen)

18,473,964

20,874,646

22,373,189

23,615,543

Ordinary profit(Thousands of yen)

2,608,925

3,085,275

2,787,011

2,586,759

Profit attributable toowners of parent(Thousands of yen)

1,827,868

2,112,238

1,922,822

1,692,366

Earnings per share
(Yen)

53.70

62.06

56.50

49.72

Total assets(Thousands of yen)

34,649,136

36,892,986

40,843,235

42,821,381

Net assets(Thousands of yen)

29,171,922

31,047,712

32,586,298

34,418,934

Book value per share(Yen)

850.14904.77948.361,001.03

Notes:
Earnings per share are calculated based on the average number of shares outstanding during the fiscal year and Book value pershare, on the number of shares outstanding at the end of the year.

(5) Issues to address
As for the external environment surrounding our group, capital investment demand remains weak in someregions such as China and Europe, and the global economy remains uncertain, but the trend toward production automation, which is aimed at improving production efficiency and solving labor shortage problem
while taking occupational safety into consideration, is expected to continue worldwide.
In this environment, YUSHIN Group will continue to quickly take advantage of changes in the businessenvironment and strive for further development as a leading company in take-out robot industry, based on
the management philosophy of “Look outward far and wide, constantly seek technological innovation andgive back to society for all it has given us.”
To achieve this, we need to expand sales of take-out robots by strengthening global sales development
and product competitiveness. To strengthen global sales development, we will use WEMO Automation AB
in Sweden as a foothold to increase our market share in Europe, and in other regions, we will also gather
accurate market information to increase our global market share. To strengthen our product capabilities, wewill continue to develop products that provide higher added value in the automation of our customers' factories. In the area of custom-ordered equipment, we will continue to expand sales in response to growing
automation needs in Japan and overseas due to labor shortages and rising labor costs, and we will continue
to develop new businesses where we can take advantage of our strengths. In maintenance services, we willfurther strengthen our global network, which is one of our strengths, and establish a system to deliver peaceof mind to our customers.
In addition, we will promote measures in line with the KPIs for the five materialities identified for the
fiscal year ending March 31, 2023: “Promotion of occupational safety,” “Productivity improvement of thecustomers’ factory,” “Tackling climate change,” “Human capital enhancement,” and “Strengthening corporate governance.” In particular, with respect to “Human capital enhancement,” we will promote recruitment
and training of human resources, centered on the penetration of our corporate philosophy, to achieve sustainable growth and enhance our corporate value over the medium to long term.

– 17 –

(6) Status of major subsidiaries
Name

Location

YUSHIN KOREA CO., LTD.

Siheung-Shi,
South Korea

Capital stock

Percentage ofshareholding

Major operations

KRW350 million

100%

Sales and maintenance & repair of our group’s products
and manufacture and sales of
streamlining machinery

US$200,000

100%

Sales and maintenance & repair of our group’s products

YUSHIN PRECISIONEQUIPMENT TRADING(SHANGHAI) CO., LTD.
YUSHIN PRECISIONEQUIPMENT TRADING(SHENZHEN) CO., LTD.
GUANGZHOU YUSHINPRECISION EQUIPMENT
CO., LTD.
YUSHIN PRECISIONEQUIPMENT (TAIWAN) CO.,LTD.

Shanghai,
China
Shenzhen,
Guangdong,
China
Guangzhou,
Guangdong,
China
Taipei City,
Taiwan(R.O.C.)

US$400,000

100%

Sales and maintenance & repair of our group’s products

RMB13.742 million

100%

Manufacturing of our group’s
products

NT$5 million

100%

Sales and maintenance & repair of our group’s products

PT. YUSHIN PRECISIONEQUIPMENT INDONESIA

Bekasi,Indonesia

IDR2,841 million

99%

Sales and maintenance & repair of our group’s products

YUSHIN PRECISIONEQUIPMENT (VIETNAM)
CO., LTD.

Hanoi,
Vietnam

US$300,000

100%

Sales and maintenance & repair of our group’s products

YUSHIN PRECISIONEQUIPMENT SDN. BHD.

Selangor,
Malaysia

MYR1 million

100%

Sales and maintenance & repair of our group’s products

YUSHIN PRECISIONEQUIPMENT (THAILAND)
CO., LTD.

Bangkok,Thailand

THB8 million

49%

Sales and maintenance & repair of our group’s products
and manufacture and sales of
streamlining machinery

YUSHIN PRECISIONEQUIPMENT (INDIA) PVT.
LTD.

Chennai,
India

INR17.4 million

97.9%

Sales and maintenance & repair of our group’s products

YUSHIN EUROPE GMBH

Bayern,Germany

EUR25,000

100%

Sales and maintenance & repair of our group’s products

YUSHIN AUTOMATIONLTD.

Worcestershire,
U.K.

GBP150,000

95.6%

Sales and maintenance & repair of our group’s products

YUSHIN AMERICA, INC.

Rhode Island,
U.S.A.

WEMO AUTOMATION AB

Värnamo,SwedenNotes:
1.
2.

US$8,000

100%

SEK120,000

100%

Sales and maintenance & repair of our group’s products
and manufacture and sales of
streamlining machinery
Development, manufacturing,sales and maintenance & repair of our group's products

WEMO AUTOMATION AB has been included in the scope of consolidation from this consolidated fiscal year as theCompany acquired all the shares of WEMO AUTOMATION AB in May 2023 and made it a subsidiary.
Yushin Europe GmbH resolved to dissolve on December 12, 2023 and is in the process of liquidation.

– 18 –

(7) Major operations (as of March 31, 2024)
Development, manufacture and sale of Cartesian robots and other industrial equipment and systems forfactory automation.
(8) Main sales offices and factories (as of March 31, 2024)
Name

Location

Head Office

Minami-ku, Kyoto-city

Fushimi Factory

Fushimi-ku, Kyoto-city

Technical Center

Minami-ku, Kyoto-city

Higashi-Nihon General Sales OfficeKita-ku, Saitama-city

Nishi-Kanto Sales Office

Atsugi-city, Kanagawa

Nagano Sales Office

Shiojiri-city, Nagano

Tohoku Sales Office

Fukushima-city, Fukushima

Tsukuba Sales Office

Tsukuba-city, Ibaraki

Chubu General Sales Office

Toyokawa-city, Aichi

Shizuoka Sales Office

Suruga-ku, Shizuoka-city

Nagoya-Nishi Sales Office

Kuwana-city, Mie

Nishi-Nihon General Sales Office

Minami-ku, Kyoto-city

Toyama Sales OfficeToyama-city, Toyama

Hiroshima Sales Office

Asaminami-ku, Hiroshima-city

Fukuoka Sales Office

Onojo-city, Fukuoka

Philippines Representative Office

Makati City, Philippines(9) Employees (as of March 31, 2024)
Number of employees

Increase and decrease from the end of previous consolidated FY

787 (64)

72 increaseNote:
The number of employees represents full-time employees only (including those seconded to the Company). Part-time and othernon-regular employees are shown separately with their average annual number indicated in brackets ( ).

(10) Major creditors (as of March 31, 2024)
No items to report.
(11) Other important matters relating to the status of other business group
No items to report.

– 19 –

2.

Matters Relating to the Company’s Shares (as of March 31, 2024)(1) Number of shares authorized:(2) Total number of issued shares:(3) Number of shareholders:(4) Major shareholders (top 10):80,000,000
35,638,066
6,761
Number of shares held(Thousands of shares)

Name

Shareholding ratio (%)

Yushin Industry Co., Ltd.

11,992

35.2

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,328

6.8

Takayo Oda

1,968

5.8

Miki Murata

1,847

5.4

Custody Bank of Japan, Ltd. (Trust Account)

1,142

3.4

The Kyoto Chuo Shinkin Bank, Ltd.

1,088

3.2

Mayumi Kotani

968

2.8

RBC IST 15 PCT NON LENDING ACCOUNT-CLIENT
ACCOUNT877

2.6

MUFG Bank, Ltd.

849

2.5

STATE STREET BANK AND TRUST COMPANY
505001845

2.5Notes:
1. The Company holds 1,603,219 shares of treasury stock, but is not included in the above major shareholders.
2. Shareholding ratio is calculated excluding the treasury stock.

– 20 –

3.

Matters Relating to Company Officers(1) Directors and Corporate Auditors (as of March 31, 2024)
Position

Responsibilities and representation ofother organization

Name

Representative Director
and President

Takayo Kotani

Director andExecutive Vice President

Kota Oda

General Manager of Administration Division

Executive Managing Director

Yasushi Kitagawa

General Manager of Manufacturing Division
and General Manager of Purchasing Division

Managing Director

Tomohiro Inano

General Manager of Sales Division

Director

Masahito Fukui

Corporate Management

Director

Yasuo Nishiguchi

Chairman of YAMADA Consulting Group Co., Ltd.

Director

Hiroshi Matsuhisa

Professor emeritus of Kyoto University

Director

Reiko Nakayama

Outside Director (Audit and Supervisory Committee member) of
LUCKLAND CO., LTD. (Audits Committee)

Full-time Corporate Auditor

Katsumi Noda

Corporate Auditor

Hiroho Kamakura

Certified Public Accountant
Outside Corporate Auditor of TRUSCO NAKAYAMA Corporation
Outside Corporate Auditor of SymEnergy Inc.

Corporate Auditor

Tetsuya Nonaka

Attorney
Partner of Naniwabashi LPC
Outside Corporate Auditor of TOYO SHUTTER CO., LTD.

Notes:
1.
Directors, Yasuo Nishiguchi, Hiroshi Matsuhisa and Reiko Nakayama are External Directors defined in Article 2, Paragraph
15 of the Companies Act.
2.
Corporate Auditors, Hiroho Kamakura and Naohiro Tsuda are External Corporate Auditors defined in Article 2, Paragraph
16 of the Companies Act.
3.
Corporate Auditor, Hiroho Kamakura is a Certified Public Accountant with expertise in finance and accounting.
4.
The Company has designated Director, Yasuo Nishiguchi, Director, Hiroshi Matsuhisa , Director, Reiko Nakayama, Corporate
Auditor, Hiroho Kamakura and Corporate Auditor, Naohiro Tsuda as Independent Officers as required by the Tokyo Stock
Exchange and reported to the Exchange.

– 21 –

5.

Change of Directors and Corporate Auditor during the period under review
Name

Before change

After change

Date of change

Reiko Nakayama

Outside Director of Mandom Corporation

Resigned

June 23, 2023

Naohiro Tsuda

External Corporate Auditor

Resigned

April 4, 2023

Senior Partner of Naniwabashi LPC

Resigned

April 4, 2023

Substitute Corporate Auditor

External Corporate Auditor

April 5, 2023

Attorney at Naniwabashi LPC

Partner of Naniwabashi LPC

June 1, 2023

Tetsuya Nonaka

5.

6.

7.

The Company has concluded an agreement with Yasuo Nishiguchi, Hiroshi Matsuhisa, Reiko Nakayama, Katsumi Noda,
Hiroho Kamakura and Tetsuya Nonaka to limit their liability for damages under Article 423, Paragraph 1 of the Companies
Act in accordance with the provisions of Article 427, Paragraph 1 of the Companies Act. The maximum amount of liability
for damages under such agreement shall be the minimum amount of liability under Article 425, Paragraph 1 of the Companies
Act.
The Company has concluded an indemnification agreement with Takayo Kotani, Kota Oda, Yasushi Kitagawa, Tomohiro
Inano, Masahito Fukui, Yasuo Nishiguchi, Hiroshi Matsuhisa, Reiko Nakayama, Katsumi Noda, Hiroho Kamakura and Tetsuya Nonaka to guarantee the expenses set forth in Article 430-2, Paragraph 1 of the Companies Act and the loss set forth in
Item 2 of that paragraph to the extent stipulated by laws and ordinances.
The Company has concluded Directors and Officers Liability Insurance (hereinafter referred to as “D&O Insurance”) as stipulated in Article 430-3, Paragraph 1 of the Companies Act with an insurance company. The scope of insured persons under
the D&O insurance is Directors, Corporate Auditors, Executive Officers and Employees. The insurance will cover the damages, etc. (However, damages that fall under the disclaimer stipulated in the insurance contract are excluded) when the insured
persons become liable for damages due to business operations. The Company bears the entire premium for D&O insurance.

(2) Policy for determining the content of remuneration and others for Directors
At a meeting of the Board of Directors held on March 7, 2022, the Company reviewed the remuneration
system for Directors and resolved a policy for determining the details of remuneration, etc. for individual
Directors in accordance with the resolution of the General Meeting of Shareholders. In passing such resolutions at the meeting of the Board of Directors, the details to be resolved are deliberated by the Nomination
and Remuneration Committee in advance.
The new system enhances objectivity and fairness in the remuneration decision-making process and clarifies the policy to concretize a medium- to long-term performance-linked remuneration system based on the
degree of achievement of the medium-term management plan and improvement in corporate value, while
promoting the formulation and implementation of the plan.
The Board of Directors has confirmed that the method of determining the content of remuneration, etc.
and the content of remuneration, etc. determined are consistent with the relevant decision policy and thatthe report from the Nomination and Remuneration Committee has been respected, and has determined thatthe content of remuneration, etc. for individual Directors for the relevant fiscal year is in line with the relevant decision policy.
[1] Policy for determining the amount of remuneration, etc. for each Director and the method of calculation
thereof
Remuneration for Directors of the Company consists of monthly remuneration, short-term performance bonuses, and medium-term performance and stock price-linked bonuses.
Monthly remuneration is determined by the Representative Director and President, who is delegatedby the Board of Directors, based on the evaluation of Directors determined through deliberations by
the Nomination and Remuneration Committee within the monthly remuneration range (upper andlower limits) for each position.
Short-term performance bonuses and medium-term performance and stock price-linked bonuses are
determined by the Representative Director and President delegated by the Board of Directors based ona formula determined by the Nomination and Remuneration Committee and the Board of Directors,
and based on the evaluation of executives determined through deliberations by the Nomination andRemuneration Committee.
Remuneration, etc., for External Directors consists of fixed remuneration, and it is our policy not to
pay performance-linked remuneration from the viewpoint of independence for business execution.
[2] Details of the performance indicators pertaining to the performance-linked remuneration, etc. and the– 22 –

method of calculating the amount or number of such performance-linked remuneration, etc.
Short-term performance bonuses are determined by multiplying the basic amount by a performancecoefficient based on the achievement of consolidated ordinary profit by position, and by reflecting the
Director evaluation, who are evaluated on their overall contribution based on target management evaluation and qualitative evaluation.
The medium-term performance and stock price-linked bonuses are determined based on the basic
amount by position, reflecting the medium-term performance coefficient based on the growth rate of“Earnings Per Share (EPS)” and the stock price-linked coefficient based on the growth rate of the stock
price.
[3] Policy on determining the ratio of remuneration, etc. to the amount of remuneration, etc. for each Director
The ratio of remuneration to the amount of remuneration, etc., is set by position with reference tothe external standards of companies in the same industry and of the same size as the Company (thetotal of short-term performance bonus and medium-term performance/stock price-linked bonus is approximately 30%).
[4] Policy on determining the timing and conditions of remuneration, etc. to be paid to Directors
As for the timing of payment of remuneration, monthly remuneration is paid monthly, and shortterm performance bonus is paid once a year based on the basic amount for each position, reflecting theperformance coefficient and Director evaluation. The medium-term performance and stock pricelinked bonus is paid once a year, reflecting the medium-term performance coefficient and the stock
price-linked coefficient, based on the basic amount for each position.
[5] Matters concerning the delegation of decision on the details of individual remuneration, etc. of Directors
The amount of remuneration, etc. for Directors is determined by the Representative Director andPresident, who is delegated by the Board of Directors, based on the Director evaluation determinedthrough deliberations by the Nomination and Remuneration Committee, which serves as an advisory
body to the Board of Directors. The authority of the Representative Director and President is to determine the amount of each Director's monthly remuneration and the evaluation and distribution of bonuses based on performance. The Nomination and Remuneration Committee deliberates in advance on
important policies, and the Representative Director and President makes decisions on the delegatedmatters based on the Committee’s deliberations. The Company believes that this constitutes a measure
to ensure that authority is exercised appropriately.
The Nomination and Remuneration Committee is chaired by Yasuo Nishiguchi, an External Director,
and its other members are Takayo Kotani, Representative Director and President; Hiroshi Matsuhisa,
an External Director; Reiko Nakayama, an External Director; and Hiroho Kamakura, an External Corporate Auditor.
No other non-monetary remunerations are paid to the Directors.

– 23 –

(3) Total remuneration and others of Directors and Corporate Auditors

Classification

Total remunerationand other payments(Thousands of yen)

Total amount by type of remuneration and other payments (Thousands of yen)Fixed remuneration

Performancelinked remuneration, etc.

Non-monetary
remuneration,etc.

Number oftarget Directors/
Corporate
Auditors

Directors(Excluding External Directors)

170,365

144,915

25,450-5

External Directors

16,80016,800--3

Subtotal

187,165

161,715

25,450-8

Corporate Auditor(Excluding External Corporate Auditors)

12,00012,000--1

External Corporate Auditors

8,400

8,400

-

-

3

Subtotal

20,40020,400

-

-

4

Total

207,565

182,115

25,450-12

Notes:
1.
The 48th Ordinary General Meeting of Shareholders held on June 22, 2021 resolved total remuneration for all Directors within
700,000 thousand yen per year (including remuneration for External Directors within 100,000 thousand yen.) At the end of
the General Meeting of Shareholders, the number of Directors was eight (8) (including three (3) External Directors.)
There are currently no Directors who have concurrent employment positions.
2.
The 43rd Ordinary General Meeting of Shareholders held on June 20, 2016 resolved total remuneration for all Corporate
Auditors within 100,000 thousand yen per year. At the end of the General Meeting of Shareholders, the number of Corporate
Auditors was four (4.)
3.
Short-term performance bonuses are determined by multiplying the basic amount by a performance coefficient based on theachievement of consolidated ordinary profit, based on the position-by-position basis, and by reflecting the Director evaluation,
who are evaluated on their overall contribution based on target management and qualitative evaluation. In addition, mediumterm performance and stock price-linked bonuses are determined based on the basic amount by position, reflecting a mediumterm performance coefficient based on the growth rate of “net earnings per share (EPS)” and a stock price-linked coefficient
based on the growth rate of the stock price. The performance indicators are selected because they are indicators that areimportant to YUSHIN Group and should be considered in both the short and medium term. (The target for the consolidated
ordinary profit index, which is the main index for performance-linked remuneration in the current fiscal year, is 2,400,000
thousand yen, and the actual amount is 2,586,759 thousand yen.)4.
As for the procedure for determining the amount of remuneration, etc., for Directors, within the monthly remuneration range(upper and lower limits) for each position, monthly remuneration is determined by Takayo Kotani, Representative Director
and President, who is delegated by the Board of Directors, based on the Director evaluation determined through deliberations
by the Nomination and Remuneration Committee. The short-term performance bonus and the medium-term performance andstock price-linked bonus are determined by Takayo Kotani, Representative Director and President, as delegated by the Boardof Directors, based on the calculation formula determined by the Nomination and Remuneration Committee and the Board of
Directors, and based on the evaluation of the executives as determined through deliberations by the Nomination and Remuneration Committee. The reason for the delegation was that the Company determined that Representative Director and President was the most appropriate person to evaluate the duties of each Director in charge, while taking into consideration the
Company's overall performance and other factors.

– 24 –

(4) External Directors and External Corporate Auditors[1] Important position at other organizations and the relationship between the Company and other organizations.
- Yasuo Nishiguchi is the Chairman of YAMADA Consulting Group Co., Ltd. The Company has no
special relationship with YAMADA Consulting Group Co., Ltd.
- Hiroshi Matsuhisa is a professor emeritus at Kyoto University. The Company has no special relationship with Kyoto University.
- Reiko Nakayama is an Outside Director (Audit and Supervisory Committee member) of
LUCKLAND CO., LTD. She was an Outside Director of Mandom Corporation, but resigned as ofJune 23, 2023. The Company has no special relationship with LUCKLAND CO., LTD. and Mandom Corporation.
- Hiroho Kamakura is an Outside Corporate Auditor of TRUSCO NAKAYAMA Corporation and
SymEnergy Inc. The Company has no special relationship with TRUSCO NAKAYAMA Corporation and SymEnergy Inc.
- Tetsuya Nonaka is a partner of Naniwabashi LPC and an Outside Corporate Auditor of TOYOSHUTTER CO., LTD. The Company has no special relationship with Naniwabashi LPC and TOYOSHUTTER CO., LTD.

– 25 –

[2] Major activities during the fiscal year
Title and Name

Director, Yasuo Nishiguchi

Director, Hiroshi Matsuhisa

Attendance Records, Comments, Remarks and Outline of Duties Performed
with Respect to the Roles Expected of External Directors
During the period under review, Yasuo Nishiguchi attended all 13 meetings ofthe Board of Directors. He supervises and advises management from a professional and independent standpoint, based on his extensive knowledge and experience in all aspects of corporate governance, which he has gained by holding
prominent corporate positions such as President and Representative Director,
and Chairman of the Board and Representative Director of KYOCERA Corporation. He plays an appropriate role in ensuring the appropriateness of decision
making. In addition, as a member of the Nomination and Remuneration Committee, he attended all 3 Committee Meetings held during the current fiscal year
and leads the supervisory function in the process of selecting executive candidates and determining executive remuneration, etc. from an objective and neutral
standpoint.
During the period under review, Hiroshi Matsuhisa attended all 13 meetings ofthe Board of Directors. He supervises and advises management from a professional and independent standpoint, based on the expertise of a person with academic standing in engineering. He plays an appropriate role in ensuring the appropriateness of decision making. In addition, as a member of the Nomination
and Remuneration Committee, he attended all 3 meetings of the Committee held
during the current fiscal year and performs the supervisory function in the process of selecting executive candidates and determining executive remuneration,etc., from an objective and neutral standpoint.

Director, Reiko Nakayama

During the period under review, Reiko Nakayama attended all 13 meetings ofthe Board of Directors. Based on her experience of as an underwriting manager
at a security firm and as an executive officer and outside officers of operatingcompanies, she supervises and advises management from a professional and independent standpoint. She plays an appropriate role in ensuring the appropriateness of decision making. In addition, as a member of the Nomination and Remuneration Committee, she attended all 3 meetings of the Committee held during
the current fiscal year and performs the supervisory function in the process of
selecting executive candidates and determining executive remuneration, etc.,from an objective and neutral standpoint.

Corporate Auditor, Hiroho Kamakura

During the period under review, Hiroho Kamakura attended all 13 meetings ofBoard of Directors and all 8 meetings of the Board of Corporate Auditors. Basedon his expertise as a Certified Public Accountant, he asked questions to clarify
ambiguities that arose with respect to matters reported or resolved and provided
opinions. In addition, he reviewed reports on the results of internal audits, exchanged opinions on audits, and participated in joint discussions on importantmatters. In addition to receiving the detailed report of Accounting Auditor on aregular basis, he also exchanged opinions with top management on a regular basis. In addition, as a member of the Nomination and Remuneration Committee,
he attended all 3 meetings of the Committee held during the current fiscal yearand gave his opinion on the legality.

Corporate Auditor, Tetsuya Nonaka

During the period under review, Naohiro Tsuda attended 12 out of 13 meetingsof the Board of Directors and 7 out of 8 meetings of the Board of Corporate
Auditors. Based on his expertise as a lawyer, he asked questions to clarify ambiguities that arose with respect to matters reported or resolved and provided opinions. In addition, he reviewed reports on the results of internal audits, exchanged
opinions on audits, and participated in joint discussions on important matters. In
addition to receiving the detailed reports of the Accounting Auditor on a regularbasis, he also exchanged opinions with top management on a regular basis.

Note:
In addition to the frequency of convening meetings of the Board of Directors described above, there were 6 times of written
resolutions adopted, deeming that there have been resolutions of the Board of Directors Meetings pursuant to Article 370 of theCompanies Act and Article 24 of the Articles of Incorporation.

– 26 –

4.

Matters Relating to Accounting Auditor(1) Name of Accounting Auditor: Grant Thornton Taiyo LLC(2) Amount of remuneration and other payments for Accounting Auditor
The amount of remuneration and other payments payable to the Accounting Auditor for the reporting year
Total amount of monetary and other property benefits payable by the Company
and its subsidiaries

33,000 thousand yen
33,000 thousand yen

Notes:
1.
The Company paid P&G Grant Thornton, which belongs to the same network as the Accounting Auditor, 145 thousand yen in addition to the above as compensation for tax-related services.
2.
In the audit contract between the Company and the Accounting Auditor, audit fees pursuant to the Companies Act andthose pursuant to the Financial Instruments and Exchange Act are not clearly separated and this separation is practically impossible. Therefore, the amount of remuneration and other payments to the Accounting Auditor is represented
as the total payment.
3.
The Board of Corporate Auditors of the Company, after receiving necessary materials and reports from the Directors,
relevant internal departments and the Accounting Auditor, confirmed the details of the audit plan of the Accounting
Auditor and the performance of its duties in the accounting audit, and examined the basis and details of the calculationof the remuneration estimate, determined that the audit remuneration, etc. of the Accounting Auditor is appropriate
and gave its consent as provided in Article 399, Paragraph 1 of the Companies Act.
4.
Overseas subsidiaries of the Company's significant subsidiaries are audited by certified public accountants or auditing
firms other than the Company’s Accounting Auditor (including those with qualifications equivalent to such qualifications in foreign countries.)(3) Policy for making decisions regarding the dismissal or non-reappointment of Accounting
Auditor
The Board of Corporate Auditors will determine the content of the proposals relating to the dismissal or
non-reappointment of the Accounting Auditor, to be submitted to the General Meeting of Shareholders,should the execution of the Accounting Auditor’s duties be impeded, is deemed necessary by the Board of
Corporate Auditors,
The Board of Corporate Auditors will dismiss the Accounting Auditor should it determine that same
corresponds to the provisions in each item of Article 340, Paragraph 1 of the Companies Act, with theagreement of all the members of the Board of Corporate Auditors. In such a case, a Corporate Auditor
appointed by the Board of Corporate Auditors will report the fact of and the reason for the dismissal of the
Accounting Auditor to the first General Meeting of Shareholders called after the dismissal.
(4) Outline of the contents of the contract for limitation of liability
Based on the provisions of Article 427, Paragraph 1 of the Companies Act, Grant Thornton Taiyo LLC,
which is an Accounting Auditor, has entered into a contract for limitation of liability for damages under
Article 423, Paragraph 1 of the Companies Act. The maximum amount of liability for damages based on
the contract is the minimum amount stipulated by law.
(5) Suspension of operation imposed on the Accounting Auditors in the past two years
Summary of suspension of business operations announced by the Financial Services Agency on December 26, 2023
(1) Subject of disposition
Grant Thornton Taiyo LLC(2) Details of disposition
Suspension of the business of entering into new contracts for three months (from January 1, 2024 toMarch 31, 2024. However, with respect to the audited company with which an audit contract has alreadybeen concluded, the suspension does not apply to the extension of the term of the audit contract or theconclusion of a new contract due to the listing of the company).

– 27 –

5.

Policy for Determining the Distribution of Surplus

We regard the return of profits to shareholders as one of the most important management issues in theoperation of its business.
As a policy, we aim to achieve a consolidated dividend payout ratio of 30% or more in order to realize
stable and continuous shareholder returns. At the same time, we aim to improve consolidated performanceand raise the level of ordinary dividends by enhancing internal reserves so that we can make flexible andsustainable investments as needed, and by prioritizing a certain amount of investment each year in researchand development, which will determine future corporate value. The Board of Directors is the decision-making body for both interim and year-end dividends.
In light of the business results for the current fiscal year and the above policy, we paid an interim dividendof 10 yen per share and a year-end dividend of 10 yen per share, for a total annual dividend of 20 yen per
share for the current fiscal year. As a result, the consolidated dividend payout ratio for the current fiscal year
is 40.2%.
Internal reserves will be used for capital investment to increase production capacity and for future R&D
activities to expand our business.

– 28 –

Consolidated Financial Statements
Consolidated Balance Sheets (as of March 31, 2024)
Account(Thousands of yen)AmountAccount

ASSETS
Current assets

AmountLIABILITIES
28,203,409

Current liabilities

7,719,523

Cash and deposits

13,405,550

Notes and accounts payable - trade

2,011,414

Notes and accounts receivable trade

6,008,743

Electronically recorded obligations- operating

522,006

Merchandise and finished goods

1,039,963

Accounts payable - other587,290

Work in process

1,847,517

Accrued expenses

191,663

Raw materials and supplies

5,083,804

Income taxes payable

467,798

Consumption taxes receivable

215,167

Advances received

3,062,706

Prepaid expenses

251,165

Provision for bonuses

357,387

Other

359,641

Provision for bonuses for Directors

25,450Allowance for doubtful accounts(8,144)

Provision for product warranties

284,344

Other

209,463

Non-current assets
Property, plant and equipment

14,617,972
10,749,199

Buildings

3,494,043

Structures

Non-current liabilities

682,922Retirement benefit liability

115,81060,368Deferred tax liabilities

387,380

Machinery equipment and Vehicles

171,238

Other

179,732

Tools, furniture and fixtures

155,668

Total liabilities

Land

8,402,446

NET ASSETS

6,851,964

Leased assets

7,670

Shareholders’ equity

31,779,981

Construction in progress

8,245

Share capital

1,985,666

2,261,552

Capital surplus

2,024,597

Telephone subscription right

11,430Retained earnings

29,125,446

Software

71,949Treasury shares(1,355,730)

Intangible assets

Customer-related assets

1,579,493

Goodwill

495,549

Others103,130

Investments and other assets

1,607,219

Investment securities

547,665

Retirement benefit asset

274,329

Deferred tax assets

594,628

Other

254,006

Allowance for doubtful accounts(63,410)

Total assets

42,821,381

Total accumulated other comprehensive income
Valuation difference on availablefor-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit
plans
Non-controlling interests

2,289,904

Total net assets

34,418,934

Total liabilities and net assets

42,821,381– 29 –

285,889
1,958,804
45,210349,049

Consolidated Statements of Income (from April 1, 2023 to March 31, 2024)
Account(Thousands of yen)AmountNet sales

23,615,543

Cost of sales

13,827,535

Gross profit

9,788,007Selling, general and administrative expenses

7,350,502

Operating profit

2,437,505

Non-operating income
Interest and dividends income

35,951

Purchase discounts

4,967

Foreign exchange gains

90,380Other

19,989151,288

2,034

2,034

Non-operating expenses
Other
Ordinary profit

2,586,759

Extraordinary income
Gain on sales of non-current assets

5,167

5,167

30,50830,508Extraordinary loss
Loss on sales and retirement of non-current assets
Profit before income taxes

2,561,418

Income taxes - current

838,817

Income taxes – deferred(38,804)

Profit800,012
1,761,405

Profit attributable to non-controlling interests

69,038

Profit attributable to owners of parent

1,692,366– 30 –

Non-Consolidated Financial Statements
Balance Sheets (as of March 31, 2024)
Account(Thousands of yen)AmountAccount
LIABILITIESASSETS
Current assets

Amount18,604,432

Current liabilities

Cash and deposits

7,644,940

Notes payable - trade

Notes receivable - trade

1,588,454

Accounts receivable - trade

3,857,815

Electronically recorded obligations operating

3,777,570
6,995
522,006

419,231

Accounts payable - trade

1,578,275

Work in process

1,229,738

Accounts payable - other432,341

Raw materials and supplies

2,942,573

Merchandise and finished goods

Accrued expenses

25,990Prepaid expenses

85,355

Income taxes payable

252,860

Consumption taxes receivable

215,167

Advances received

365,186

Other

621,257

Provision for bonuses

302,000

Provision for bonuses for Directors

25,450Allowance for doubtful accounts(100)

Non-current assets

14,671,927

Property, plant and equipment

9,753,608

Provision for product warranties

190,000

3,030,110

Other

76,463

Buildings
Structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land

60,368Non-current liabilities

59,373

Other

74,955

Total liabilities

5,963
5,963
3,783,533

NET ASSETS

6,512,884

Leased assets

7,670

Shareholders’ equity

29,206,937

Construction in progress

8,245

Share capital

1,985,666

49,145

Capital surplus

2,023,903

Intangible assets
Telephone subscription right

11,430Software37,715Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital of subsidiaries and associates
Deferred tax assets
Allowance for doubtful accounts
Other4,869,172

Legal capital surplus
Retained earnings

547,665
3,215,995

26,553,097

Legal retained earnings

286,314

Other retained earnings

26,266,782

Reserve for dividend equalization

1,000,000

297,873

General reserve

8,700,000

532,806

Retained earnings brought forward

16,566,782(43)
274,876

Treasury shares
Valuation and translation adjustments
Valuation difference on available-forsale securities

Total assets

2,023,903

33,276,360(1,355,730)
285,889285,889

Total net assets

29,492,826

Total liabilities and net assets

33,276,360– 31 –

Statements of Income (from April 1, 2023 to March 31, 2024)
Account(Thousands of yen)AmountNet sales

14,685,251

Cost of sales

8,839,317

Gross profit

5,845,934

Selling, general and administrative expenses

4,289,979

Operating profit

1,555,954

Non-operating income
Interest income

2,447

Dividend income

740,881

Purchase discounts

4,967

Foreign exchange gains

50,646

Other

8,540

807,484

1,919

1,919

Non-operating expenses
Other
Ordinary profit

2,361,519

Extraordinary income
Gain on sales of non-current assets

497

497

Extraordinary losses
Loss on sales and retirement of non-current assets

30,474

Loss on valuation of shares of subsidiaries

55,992

Profit before income taxes

86,4662,275,549

Income taxes - current

466,833

Income taxes - deferred△26,339

Profit440,494
1,835,055– 32 –

[Certified copy of the Accounting Auditors’ Report concerning consolidated statutory report](There is no TRANSLATION. Please refer to INDEPENDENT AUDITORS’ REPORT written in Japanese.)– 33 –

[Certified copy of the Accounting Auditors’ Report concerning non-consolidated statutory report](There is no TRANSLATION. Please refer to INDEPENDENT AUDITORS’ REPORT written in Japanese.)– 34 –

[Certified copy of the Audit Report of the Board of Corporate Auditors](TRANSLATION)

Audit Report
Regarding the performance of duties by the Directors for the fiscal year from April 1, 2023 to March 31,
2024, the Board of Corporate Auditors hereby submits its audit report, which has been prepared throughdiscussions based on the audit report prepared by each Corporate Auditor.
1.

Auditing Methods adopted by the Corporate Auditors and Board of Corporate Auditors and Details of
Such Methods(1) The Board of Corporate Auditors established auditing policies, allocation of duties, and other relevant
matters, and received reports from each Corporate Auditor regarding his or her audits and results
thereof, as well as received reports from the Directors, other relevant personnel, and the Accounting
Auditors regarding performance of their duties, and requested explanations as necessary.
(2) Each Corporate Auditor complied with the auditing standards of Corporate Auditors established by
the Board of Corporate Auditors, followed the auditing policies, allocation of duties, and other relevant matters, communicated with the Directors, the Internal Audit Office, other employees, and anyother relevant personnel, and made efforts to optimize the environment for information collection andaudit, and conducted audits as follows.
[1] Participated in the Board of Directors’ Meetings and other important meetings, received reports
from the Directors, employees, and other relevant personnel regarding performance of their duties, requested explanations as necessary, examined important authorized documents and associated information, and studied the operations and financial positions at the head office and principal offices. In addition, with respect to subsidiaries, we communicated and exchanged information with Directors, Corporate Auditors, and other relevant personnel of the subsidiaries, andreceived business reports from subsidiaries as necessary.
[2] We received periodic reports and requested explanations as necessary from the Directors, otherrelevant personnel and expressed our opinion about conditions of construction and applicationon the content of the resolution of the Board of Directors and system actually placed as “Internal
Control System” in accordance to this resolution, which is stipulated in Article 100, Paragraph
1 and 3, of the Enforcement Regulation of the Companies Act as a system required to ensure thecompliance of laws and regulations, and the Articles of Incorporation in the execution of businesses by the Directors and necessity to ensure a properness of operation in the business groupconsisting of the Company and its subsidiaries written in the business report.
[3] We monitored and verified whether the Accounting Auditors maintained their independence andimplemented appropriate audits, and we received reports from the Accounting Auditors regarding the performance of their duties and requested explanations as necessary. In addition, we
received notice from the Accounting Auditors that “the system for ensuring that duties are performed properly” (matters set forth in each Item of Article 131 of the Company Accounting
Rules) is appropriately established in accordance with “Quality Control Standard on Audit”(Business Accounting Council) and requested explanations as necessary. In addition, we received a report from the Accounting Auditors that it had submitted a business improvement planin response to the administrative action taken by the Financial Services Agency, and sought explanations as necessary.
Based on the above methods, we examined the business report and its supporting schedules, the nonconsolidated financial statements (Balance Sheets, Statements of Income, and Statements of Changes in
Equity) and its supporting schedules, and the consolidated financial statements (Balance Sheets, Statements of Income, and Statements of Changes in Equity) related to the relevant business year.

– 35 –

2.

Audit Results(1) Results of Audit of Business Report and Other Relevant Documents[1] In our opinion, the business report and supporting schedules are in accordance with the related
laws and regulations and Articles of Incorporation, and fairly represent the Company’s condition.
[2] With regard to the performance of duties by the Directors, we have found no evidence of wrongful action or material violation of related laws and regulations, nor of any violation with respect
to the Articles of Incorporation.
[3] In our opinion, resolutions of the Board of Directors for the Internal Control System arefair. And also, the contents of the business report about the Internal Control System, and the
Director’s activities and implementation have no issues to be pointed out.
(2) Results of Audit of Financial Statements and Supporting Schedules
In our opinion, the methods and results employed and rendered by the Accounting Auditors, Grant
Thornton Taiyo LLC, are fair and reasonable.
(3) Results of Audit of Consolidated Financial Statements
In our opinion, the methods and results employed and rendered by the Accounting Auditors, Grant
Thornton Taiyo LLC, are fair and reasonable.

May 24, 2024

Board of Corporate Auditors,
YUSHIN PRECISION EQUIPMENT CO., LTD.
Full-time Corporate Auditor
External Corporate Auditor

Katsumi Noda
Hiroho Kamakura

External Corporate Auditor

Tetsuya Nonaka– 36 –

Topics
New palletizing robot models added
The need for automation is rapidly increasing due to labor
shortages at logistics sites. To meet this demand, we offer the“PA Series” palletizing robots. The PA-50LC, which was
released in August 2023, has a lower overall height andimproved transfer capability, while maintaining the spacesaving features of the previous model. Cartesian robots have theproblem of increasing overall height as the palletizing stackheight increases. To solve this problem, we redesigned all theaxis configurations. We also added two functions, “shortestpath” and “optimized acceleration/deceleration control,” toachieve higher performance. In April 2024, we added a dual
pallet function to the PA-50LC.

PA-50LC – dual pallet
Participation in exhibitions
With the end of COVID-19 pandemic, exhibitions
have reopened and we are actively participating.
YUSHIN's Swedish subsidiary WEMO exhibited at
Fakuma 2023 held in Germany from October 17 to 21,
2023. Many visitors appraised that YUSHIN and
WEMO are now part of the same group and that they
expect strong growth in Europe and other regions.
We also exhibited at IPF Japan 2023 (International
Plastics Fair) held at Makuhari Messe from November
28 to December 2, 2023. The exhibit was targeted at theplastic molding industry, and appealed to the industry's
response to labor shortages and environmental issues, aswell as our after-sales service system, which is one of
our strengths.

– 37 –

Fakuma 2023

Human capital enhancement
In order to inherit the strengths and advantages we have built up over the years andto achieve further growth, we are strengthening our investment in human capital andorganizational development.
Our human capital enhancement has thefollowing objectives.
1)

2)

Achieve YUSHIN's sustainable growthand increase its medium- to long-term
corporate value by creating an organization that leverages the values andperspectives of its diverse human resources.
Promote the recruitment and training of human resources based on the penetration of our businessphilosophy, and create an environment in which each and every employee can continue to work actively and vigorously, demonstrating his or her characteristics and abilities to the fullest.

As specific measures, we are working on the following environmental improvements: (1) Promote
corporate identity (CI) activities, (2) Establish a personnel system and a human resources development
policy that instill YUSHIN ideals, (3) Ensure diversity
in human resources (Diversity Management), (4) Develop an education system that meets each career step(4) Create an environment that makes work more rewarding and comfortable
We have divided our roadmap into three stages:
building the foundation of the organization, strengthen
human capital investment and organizational development, and growth and expansion.
We recognize that delivering innovative products
and services that create added-value will meet the expectations of our shareholders, customers and otherstakeholders, while we are responding to changes inthe business environment. We develop our people andimprove their job satisfaction, which grows our organization and human resource managements, which creates new value - a virtuous cycle of value creation.

– 38 –