Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

<Code Number 6794>
June 4, 2024
To Our Shareholders with Voting Rights
Kazuhiro Kishi, CEO
Foster Electric Company, Limited
1-1-109, Tsutsujigaoka, Akishima City, TokyoNOTICE OF THE 90TH ORDINARY GENERAL MEETING OF
SHAREHOLDERS
We hereby inform you of the 90th Ordinary General Meeting of Shareholders of Foster Electric Company,
Limited (the “Company”), to be held as follows.
When convening this general meeting of shareholders, the Company takes measures for providing informationthat constitutes the content of reference documents for the general meeting of shareholders, etc. (items for whichmeasures for providing information in electronic format are to be taken) in electronic format, and posts thisinformation on the following websites. Please access either of the following websites by using the internet
addresses shown below to review the information.
[The Company’s website]
https://www.foster.co.jp/investors/shareholder_info/meeting.html (in Japanese)[Tokyo Stock Exchange’s website (Listed Company Search)]https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show (in Japanese)
Access the TSE website by using the internet address shown above, enter “Foster Electric” in “Issue name(company name)” or the Company’s securities code “6794” in “Code,” and click “Search.” Then, click “Basic
information” and select “Documents for public inspection/PR information.” Under “Filed information available
for public inspection,” click “Click here for access” under “[Notice of General Shareholders Meeting/Informational Materials for a General Shareholders Meeting].”[The website for informational materials for the General Meeting of Shareholders]
https://d.sokai.jp/6794/teiji/ (in Japanese)
You can exercise your voting rights by using the Internet or in writing; so please read the attached Reference
Documents for the General Meeting of Shareholders and exercise your voting rights in accordance with the“Guidance on Exercising Voting Rights” (in Japanese only), by no later than the closing time of our daily
business hours (5:15 p.m.) on Tuesday, June 25, 2024 (Japan Time).
1. Date and Time: Wednesday, June 26, 2024 at 10:00 a.m. (Japan Time)
2. Place:

Main Hall (1st Floor), Foster Electric Company, Limited, 1-1-109, Tsutsujigaoka,
Akishima City, Tokyo

3. Agenda of the Meeting
Matters to be reported:
1. The Business Report and Consolidated Financial Statements for the 90th Fiscal Year (from April 1, 2023
to March 31, 2024) and results of audit on the Consolidated Financial Statements by the Financial
Auditor and the Board of Corporate Auditors.
2. Standalone Financial Statements for the 90th Fiscal Year (from April 1, 2023 to March 31, 2024)

1

Matters to be resolved:
Proposal 1:

Dividends of Surplus

Proposal 2:

Election of Two (2) Directors

Proposal 3:

Election of One (1) Corporate Auditor

4. Others(1) If you attend the meeting, please show the Exercise Voting Rights Form at the reception of the meetingupon arrival.
(2) If you exercise your voting rights by proxy, you may nominate one (1) shareholder with a voting right asa proxy to attend the meeting, provided that a document verifying the proxy right of the person
representing you must be submitted.
(3) We send out documents that include items for which measures for providing information in electronic
format are to be taken to shareholders who have made a request for delivery of paper-based documents;
however, such documents do not include the following matters as provided for by the provisions of laws
and regulations and Article 15, paragraph (2) of the Articles of Incorporation of the Company:
 “Structure and Policy of the Company” in the Business Report
 “Notes to the Consolidated Financial Statements”
 “Notes to the Standalone Financial Statements”
The Business Report, the Consolidated Financial Statements and the Standalone Financial Statements inthe documents are part of the Business Report and the Consolidated and Standalone Financial Statementsthat were audited by the Financial Auditor and Corporate Auditors of the Company when preparing the
Financial Auditor’s Report and the Corporate Auditors’ Report.
(4) If you exercised your voting rights in duplicate through the Internet and in writing, the vote by the Internet
will be validated. If you exercised your voting rights multiple times, the vote you exercised last will bevalidated.
(5) Any voting right exercised without indicating approval or disapproval for a particular proposal will becounted as a vote for approval of the proposal.
(6) On the day of the meeting, our executives and employees will be dressed casually without neckties (“CoolBiz”).
(7) If revisions to the items subject to measures for electronic provision arise, a notice of the revisions andthe details of the items before and after the revisions will be posted on the Company’s aforementioned
website, the TSE website (Listed Company Search) and the website for informational materials for the
General Meeting of Shareholders.
(8) An English translation of the Notice of the 90th Ordinary General Meeting of Shareholders is posted on
the corporate website (https://www.foster-electric.com/investors/meeting/index.html).
◎ Discontinuation of Business Reports
At this time, we have decided to discontinue the year-end and interim business reports that we had
previously sent to our shareholders, due to the large amount of duplicated information in the “Notice of
the Ordinary General Meeting of Shareholders,” the “Integrated Report,” and the Company’s website, as
well as our concern for the global environment.
We appreciate the understanding of our shareholders and ask for your continued support.
About the platform for exercising voting rights electronicallyIn addition to the voting methods of in writing and through the Internet as described above, institutional investors
may exercise their voting rights electronically by using the platform operated by ICJ, Inc.

2

Guidance on Livestreaming
The following livestream of the General Meeting of Shareholders will be available for those shareholders who
cannot attend the meeting.
It is not possible to exercise voting rights, ask questions, or submit motions during the livestream.
Please exercise your voting rights in advance using the Internet or in writing.
Please use the following website to watch the meeting:Date and Time of Livestream:

Livestream URL
ID
Password

Wednesday, June 26, 2024, from 10:00 a.m. until the conclusion of
the General Meeting of Shareholders
The livestream page can be accessed from approximately 30 minutes
prior to the start of the General Meeting of Shareholders (9:30 a.m.).
https://www.virtual-sr.jp/users/foster2024/login.aspx
Shareholder number (indicated on the Exercise Voting Rights Form)(Omitted)

Notes:
・ Only shareholders may view the presentation.
・ Depending on your equipment and network environment, it may not be possible to access the livestream.
・ Telecommunication charges for accessing the Company’s website and the livestream are paid byshareholders themselves.
・ To watch the livestream comfortably on smartphones or tablets, use of Wi-Fi is recommended.
・ The camera will be set at the back of the venue to avoid showing the faces of shareholders, but someshareholders’ faces may inevitably be shown. In addition, please be advised that the voices ofshareholders who ask questions or make comments in the meeting will be broadcast live.
・ If any change in the meeting plans arises, we will inform you via the corporate website(URL: https://www.foster.co.jp/).
Contact for inquiries regarding on-screen operation of the livestream, viewing problems, etc.
TEL:
+81-42-546-2305
Hours: Weekdays 9:00 a.m. to 12:00 p.m., 1:30 p.m. to 5:00 p.m.
However, on the day of the General Meeting of Shareholders, hours will be from 9:30 a.m. to the conclusionof the General Meeting of Shareholders.
* For inquiries regarding viewing problems, etc., only.
Please note that we are unable to respond to any other inquiries.

3

Reference Documents for the General Meeting of Shareholders
Proposals and References
Proposal 1:

Dividends of Surplus

The Company regards the enhancement of corporate value as a major management issue and maintains a basic
policy of comprehensively improving shareholders’ interest by distributing profits that are commensurate with
the Company’s business results and enhancing internal reserves from a long-term viewpoint.
We propose a year-end dividend of ¥15 per share for the fiscal year under review, while comprehensively
considering our business results for the year as well as the management environment, etc. Accordingly, since theCompany paid an interim dividend of ¥10 per share, the annual total of dividend for the fiscal year under review
will be ¥25 per share.
Matters related to year-end dividends(1) Type of dividend property
Cash(2) Allotment of dividend property to shareholders and the total amount¥15 per share of common stock of the Company

Total amount: ¥336,194,475(3) Effective date of dividends of surplus
June 27, 2024

4

Proposal 2:

Election of Two (2) Directors

Director Lu San Tie will resign at the conclusion of this Ordinary General Meeting of Shareholders. In addition,
Director Atsushi Narikawa resigned as of March 31, 2024. Accordingly, the Company proposes the election of
two (2) new Directors. In addition, as provided for in the Articles of Incorporation of the Company, the terms ofoffice of the newly elected Directors will expire when the terms of office of the other currently serving Directors
expire.
The candidates for Director are as follows:
Attendance rate at
Number of years inmeetings of theofficeBoard of Directors

No.

Name

GenderAttribute1

Yasuhide Takahara[Male][New election]

–

–

2

Naoki Kanai[Male][New election]––

New election: Candidate for new Director

5Directors Skill Matrix
To establish an effective corporate governance system for sustainable growth, the Company nominates Directors
with wide ranging business experience and diverse expertise and knowledge. The skill matrix of the Company’s
Directors in case Proposal 2 is approved as proposed are presented below.
Name

International
Corporate experience/
Sales/
management
GlobalMarketingbusiness

Kazuhiro Kishi

●

●

●

Akihito Mochizuki

●

●

●

Hiroki Miura●●

Yasuhide Takahara
Naoki Kanai

●

●

●

●

●

Yasuhiro Goto●

Kaoru Chujo●

Finance

Legal/Riskmanagement

Sustainability
includingenvironment

IT/DX

●
●
●

●

Minoru Matsumoto

Manufacturing
Technology/(Production/ Development
Quality)

●

●

●

●

Industryknowledge

●
●

●

●

●

●

●

●

●
●

●

●

●

6

●

●

Reasons for selection of each item in the Skill Matrix
Skill

Reason for selection

Corporate management

In order to evaluate and judge opportunities and risks across a wide range of businesses and achievesustainable growth through appropriate investments, skills such as abundant management experience torespond to various changes in the business environment, solid knowledge, experience, and track recordin corporate management, and a broad perspective that includes other fields are required.

International experience/
Global business

Such knowledge and experience are necessary to appropriately supervise and implement business
operations based on an understanding of diverse values and cultures in order to achieve the sustainableglobal expansion of business areas.

Sales/Marketing

In order to deliver customer satisfaction and sustainable enhancement of corporate value, knowledge
and experience in marketing activities and sales strategies are required to accurately identify changes inthe business environment and the diversifying customer needs and to provide added value throughproposal-based sales from the customer’s perspective.

Manufacturing (Production/Quality)

In addition to value-added product development, to ensure the stable supply of safe and secure products,
it is essential to establish a production and quality control system, which requires knowledge andexperience in production and quality control.

Technology/Development

The development of high quality products that incorporate advanced technologies and offer safety,
security, and comfort requires a track record of implementing various innovations and solid knowledge
and experience in the fields of technology, quality, and the environment.

Finance

Solid knowledge and experience in the areas of financial affairs and finance are required for building astrong financial foundation and developing and implementing financial strategies to sustainably
increase corporate value.

Legal/Risk management

To establish an appropriate governance system, which is the foundation for sustainably increasing
corporate value, and to achieve the stable development, manufacture, and supply of safe and secure
products, solid knowledge and experience in the areas of risk management, corporate governance, andlegal affairs are required.

Sustainability including environment

To realize a sustainable society, solving social issues through the promotion of sustainability activities
based on ESG management and incorporating them into business activities as profit-earning
opportunities that lead to sustainable growth requires solid knowledge and experience in the fields of
ESG and sustainability.

IT/DX

To respond to changes in the business environment, achieve sustainable growth, and increase corporate
value, it is essential to transform business and work styles through company-wide promotion of DX, as
well as to utilize advanced information technology to improve the information infrastructure, including
cyber attack countermeasures. Therefore, knowledge and experience in the IT and DX fields are
required.

Industry knowledge

As the business environment undergoes significant change and uncertainty increases, in order todevelop and promote business strategies that anticipate market changes and achieve the sustainableenhancement of corporate value, extensive, in-depth knowledge and experience in the industry are
required.

7

No.

1

Name (date of birth)

Yasuhide Takahara(April 6, 1962)[New election]

Career summary, position, responsibilities and significant
positions concurrently held
Apr. 1985

Joined the Company

Feb. 2001

Deputy Manager, Sales Department, CAR
Equipment Division of the Company

Apr. 2003

Manager, Sales Department, CAR
Equipment Division of the Company

Sept. 2003

Manager, Sales Department, CAR
Equipment Division, and Manager, Chubu
Sales Office of the Company

Dec. 2008

Head, AVCBU Business Unit, Speaker
Business Division of the Company

Oct. 2010

Director, Foster Electric Co., (Hong Kong)
Ltd.

Apr. 2013

Deputy General Manager, SP Business
Division and Manager, SP Production
Management Department of the Company

Apr. 2016

Deputy General Manager, SP Business
Division, Manager, SP Sales Department No.
2, and Manager, Speaker Production
Management Department of the Company

Apr. 2017

Executive Officer, Deputy General Manager,
SP Business Division, and Manager, Speaker
Production Management Department of theCompany

Aug. 2019

Executive Officer, General Manager
Automotive Speaker Business, Sales
Division of the Company

Apr. 2020

Executive Officer, General Manager
Automotive Speaker Business, Sales
Division, and in charge of Asia of theCompany

July 2020

Senior Executive Officer, General Manager
Automotive Business, Sales Division, and in
charge of Asia of the Company

June 2023

Senior Executive Officer, General Manager,
Sales Division, and in charge of Asia of theCompany (to the present)[Male]

Number ofCompany’s
shares held

3,700

Reason for election of the candidate for Director
Mr. Yasuhide Takahara has been involved in the Sales Department for many years, supervising the Group’s
sales structure and contributing to the enhancement of corporate value. In addition, he has extensive experienceand expertise in sales activities, as well as extensive overseas experience and insight working in Hong Kong.
Therefore, we can expect him to contribute to the improvement of the functioning of the Board of Directors.
For these reasons, we judge that Mr. Yasuhide Takahara is suitable for achieving sustainable growth andimprovement of corporate value of the Company and request his election as Director.

8

No.

2

Name (date of birth)

Naoki Kanai(November 1, 1962)

Career summary, position, responsibilities and significant
positions concurrently held
Mar. 1986

Joined the Company

Sept. 2002

Manager, Sales Department No. 1, Sales
Division, Foster Electric Co., (Hong Kong)
Ltd.

Nov. 2006

Vietnam Project, Corporate Planning
Department, Administration Division of theCompany

Apr. 2007

Manager, Production Management
Department, Foster Electric (Vietnam) Co.,Ltd.

Apr. 2008

Director and Manager, Factory, Foster
Electric (Vietnam) Co., Ltd.

Jan. 2011

President, Foster Electric (Vietnam) Co., Ltd.

Apr. 2012

Chairman and President, Foster Electric(Vietnam) Co., Ltd.

Nov. 2014

Deputy General Manager, Manufacturing
Division of the Company

Mar. 2015

Deputy General Manager, Manufacturing
Division and Manager, Manufacturing
Engineering Department of the Company

Apr. 2017

Executive Officer, Deputy General Manager,
Manufacturing Division, and Manager,
Manufacturing Management Department of
the Company

Apr. 2018

Executive Officer and General Manager,
Manufacturing Division of the Company

Oct. 2018

Executive Officer, General Manager,
Manufacturing Division, and Assistant toGeneral Manager in charge of Manufacturingof the Company

Apr. 2022

Senior Executive Officer, General Manager,
Manufacturing Division, and General
Manager in charge of Manufacturing of theCompany

June 2023

Senior Executive Officer and General
Manager, Manufacturing Division of theCompany (to the present)[New election][Male]

Number ofCompany’s
shares held

13,400Reason for election of the candidate for Director
Mr. Naoki Kanai has been involved in manufacturing departments for many years, supervising the Group’s
manufacturing structure and contributing to the enhancement of corporate value. In addition, with his extensive
overseas experience and knowledge from working in Hong Kong and Vietnam, we can expect him to contributeto the improvement of the functioning of the Board of Directors. For these reasons, we judge that Mr. Naoki
Kanai is suitable for achieving sustainable growth and improvement of corporate value of the Company andrequest his election as Director.
Notes:

1. No conflict of interest exists between the Company and the above candidates for Director.
2. The Company intends to enter into an indemnity agreement as stipulated in Article 430-2, paragraph (1) of theCompanies Act with each of the above candidates for Director upon approval of their election. The indemnity
agreement provides that expenses as set forth in item 1 and losses as set forth in item 2 of Article 430-2, paragraph (1)shall be compensated by the Company to the extent provided by laws and regulations.
3. The Company has purchased a liability insurance policy for directors and officers (D&O insurance) as set forth in
Article 430-3, paragraph (1) of the Companies Act, which covers all the directors as the insured parties. Subject toapproval of this Proposal as originally proposed and when the candidates assume the position of Director, each of themwill become an insured party covered by this policy. With this insurance policy, potential losses resulting from directors,
the insured, being held responsible for the execution of their duties or from claims/charges brought against them forsuch responsibility shall be covered. However, certain cases are excused from the coverage such as losses resulting
from acts while the violation of laws is recognized. The premiums for the policy including riders are fully borne by
the Company, with no substantial insurance cost to be borne by the insured. The policy will be renewed on July 1,
2024, during their term of office.

9

Proposal 3:

Election of One (1) Corporate Auditor

The terms of office of Corporate Auditors Satoko Kimoto and Takashi Suzuki will expire at the conclusion ofthis meeting. We therefore propose that one (1) Corporate Auditor be elected.
The Board of Corporate Auditors has previously given its approval for this proposition.
The candidate for Corporate Auditor is as follows:
Name (date of birth)

Satoko Kimoto(April 12, 1960)[Reelection][Outside][Independent][Female]■ Attendance rate at meetings ofthe Board of Directors
100% (12 out of 12 times)■ Attendance rate at meetings ofthe Board of Corporate Auditors
100% (7 out of 7 times)

Career summary, position in the Company, and significant concurrent
positions outside the Company
Apr. 1983

Large Enterprise Examination Division, Large
Enterprise Examination and Criminal Investigation
Department, National Tax Agency

July 2007

Assistant Regional Commissioner of First Taxation
Department, Kanto-Shinetsu Regional Taxation
BureauJuly 2008

Assistant Regional Commissioner of Planning and
Administration Department, Sendai Regional
Taxation Bureau

July 2010

Director of Consumption Tax Office, Taxation
Management Division, Taxation Department,
National Tax Agency

July 2011

Director of Information Technology Office,Planning Division, Commissioner’s Secretariat,
National Tax Agency

July 2014

Vice President, National Printing Bureau

July 2018

Director-General, Nagoya National Tax Tribunal

Apr. 2020

Visiting Professor of Graduate School of
Accounting & Finance, Chiba University ofCommerce

June 2020

Outside Corporate Auditor of the Company

June 2021

Full-Time Outside Corporate Auditor of theCompany (to the present)

Number ofCompany’s shares
held

400

Reason for election of the candidate for Outside Corporate Auditor
Ms. Satoko Kimoto possesses substantial knowledge and experience related to tax affairs, finance, and accounting that she has
cultivated over many years in the field of tax administration. We judge that she can be expected to strengthen the Company’s
auditing system if she draws on her expertise and experience in the management of the Company, so we request that Ms.
Satoko Kimoto be reelected as an Outside Corporate Auditor of the Company. Even though she does not have experience of
involvement in corporate management, we judge that she will perform her duties appropriately as an Outside Corporate
Auditor.
Notes:

1. No conflict of interest exists between the Company and the above candidate for Corporate Auditor.
2. The above candidate for Corporate Auditor is a candidate for Outside Corporate Auditor.
3. Ms. Satoko Kimoto will have served as Corporate Auditor for four (4) years at the conclusion of this General Meetingof Shareholders.
4. Liability Limitation Agreement
The Company has concluded an agreement with Ms. Satoko Kimoto to limit her liability stipulated in Article 423,
paragraph (1) of the Companies Act, in accordance with Article 427, paragraph (1) of the Act and the provisions of
the Company’s Articles of Incorporation. The Company will renew the agreement with her upon the approval of her
reelection. The amount of damages under the agreement will be limited within an amount prescribed by laws andregulations.
5. The Company has entered into an indemnity agreement with Ms. Satoko Kimoto as stipulated in Article 430-2,
paragraph (1) of the Companies Act. The indemnity agreement provides that expenses as set forth in item 1 and losses
as set forth in item 2 of Article 430-2, paragraph (1) shall be compensated by the Company to the extent provided bylaws and regulations. The Company will renew the same agreement with her upon approval of her reelection.
6. The Company has purchased a liability insurance policy for directors and officers (D&O insurance) as set forth in
Article 430-3, paragraph (1) of the Companies Act, which covers the directors, corporate auditors and executive
officers as the insured parties. Subject to approval of this Proposal as originally proposed and when the above candidate
for Corporate Auditor assumes the position of Corporate Auditor, she will become an insured party covered by this10

policy. With this insurance policy, potential losses resulting from the insured being held responsible for the executionof their duties or from claims/charges brought against them for such responsibility shall be covered. However, certain
cases are excused from the coverage such as losses resulting from acts while the violation of laws is recognized. The
premiums for the policy including riders are fully borne by the Company, with no substantial insurance cost to beborne by the insured. The policy will be renewed on July 1, 2024, during her term of office.
7. The Company has designated Ms. Satoko Kimoto as an Independent Corporate Auditor who will not have any conflictsof interest with the general shareholders as stipulated by provisions of the Tokyo Stock Exchange. If her election isapproved, the Company will reappoint her as an Independent Director.
8. The Company’s Criteria for Determining Independence
The Company determines the independence of Independent Outside Directors/Outside Corporate Auditors based on
both the requirements of the Companies Act and the criteria of the Tokyo Stock Exchange. Additionally, the Company
emphasizes high-level expertise and rich experience enabling constructive advice for the improvement of corporate
value as qualities of Outside Directors/Outside Corporate Auditors.

<<Reference 1>> Nominating Advisory Committee
The Company established the Nominating Advisory Committee chaired by an Outside Director as an advisory organ of the Boardof Directors.
Regarding the nomination of Directors, Corporate Auditors, and Executive Officers, the committee contributes to ensuring theappropriateness of such elections and transparency of the decision-making process by recommending candidates after deliberatingon the expectations. The committee also deliberates on the independence of Outside Directors/Outside Corporate Auditors.
The candidates for Proposal No. 2 and Proposal No. 3 have passed through the deliberation process of the same Committee.
<<Reference 2>> Independence Criteria for Outside Directors/Outside Corporate Auditors
The Company determines the independence of Independent Outside Directors/Outside Corporate Auditors based on both therequirements of the Companies Act and the criteria of the Tokyo Stock Exchange. Additionally, the Company emphasizes highlevel expertise and rich experience enabling constructive advice for the improvement of corporate value as qualities of Outside
Directors/Outside Corporate Auditors.

11

(REFERENCE)

Financial Highlights(Year ended March 31)
March 2020

March 2021

March 2022

March 2023

March 2024

1. Consolidated financial highlights
Net sales(Millions of yen)

107,298

85,22091,106

121,338

122,447

Ordinary income(Millions of yen)

2,599

219

(7,473)

2,327

4,305

Net income attributable toowners of the parent(Millions of yen)

1,565

(3,363)(7,017)

848

2,304

Comprehensive income(Millions of yen)457

(1,729)(3,868)

5,013

8,236

Net assets(Millions of yen)

58,99555,993

51,63256,51564,319Total assets(Millions of yen)

80,825

77,23386,14892,871

102,747

Net assets per share(Yen)

2,369.46

2,276.20

2,125.72

2,302.49

2,606.90

Net income per share

(Yen)

69.15

(148.47)(315.53)38.23

103.70

Diluted net income per share

(Yen)

–

–

–

–

–

Equity ratio

(%)

66.5

65.6

54.7

55.0

56.5

Return on equity

(%)

2.9

(6.4)

(14.4)

1.7

4.2

Cash flows from operating
activities(Millions of yen)

11,092739(12,767)354

15,428Cash flows from investing
activities(Millions of yen)

516

(1,960)(3,071)(1,321)(5,396)

Cash flows from financing
activities(Millions of yen)

(8,823)(2,624)

6,771

1,776

(4,440)Cash and cash equivalents,
end of year

(Millions of yen)

23,93020,37312,08913,646

20,216

2. Standalone financial highlights
Net sales(Millions of yen)

59,28438,03542,81751,57655,394

Ordinary income(Millions of yen)

(2,053)(325)(1,909)

(904)

825

Net income(Millions of yen)338

(3,392)(2,211)(1,016)

470

Common stock(Millions of yen)

6,770

6,770

6,770

6,770

6,770

Total number of shares
outstanding(Thousands ofshares)

26,00025,00025,00025,00025,000Net assets(Millions of yen)

25,05020,68818,13617,003

17,507

Total assets(Millions of yen)

42,09338,832

38,97342,50046,802(Yen)

1,103.85

929.93817.44766.22786.82

Net assets per share
Annual dividends per share[Interim dividends per share]

(Yen)

35.00

15.00

10.00

20.00

25.00

[20.00][10.00][10.00][10.00][15.00]Net income per share

(Yen)

14.95

(149.72)(99.44)(45.81)

21.18

Equity ratio

(%)

59.5

53.3

46.5

40.0

37.4

Return on equity

(%)

1.3

(14.8)(11.4)

(5.8)

2.7

(%)
Payout ratio
234.1
–
–
–
118.0
Notes: 1. The financial highlights are not presented in the original Notice of the Ordinary General Meeting of Shareholders inJapanese.
2. Moreover, some of the figures in this document have been prepared based on financial statements, which are notincluded in the original Notice of the Ordinary General Meeting of Shareholders in Japanese.
3. Figures have been prepared in accordance with the accounting principles generally accepted in Japan, which are
different in certain respects from application and disclosure requirements of the International Financial ReportingStandards.

12Consolidated Balance Sheet(as of March 31, 2024)(Millions of yen)
Assets
Account item
Current assets
Cash and deposits

Amount78,925
20,216

Notes and accounts receivable—
trade

24,934

Electronically recorded monetaryclaims-operating

865

Securities
Finished goods
Raw materials
Work in process
Supplies
Accounts receivable—other
Advance payments to suppliers
Other
Allowance for doubtful accounts
Non-current assets
Property, plant and equipment

649
18,357
7,908
1,539
140
1,673
367
2,381
(109)
23,822
19,377

Buildings and structures

8,091

Machinery and equipment
Furniture and fixtures
Land
Construction in progress
Intangible assets
Software
Other
Investments and other assets
Investment securities
Long-term prepaid expenses
Asset for employees’ retirement
benefits

4,557
1,887
3,404
1,437
336
189
147
4,108
2,162
82
1,344

Liabilities
Account item
Current liabilities
Notes and accounts payable—trade
Short-term bank loans
Current portion of long-term debt
Accounts payable—other
Lease liabilities
Income taxes payable
Accrued expenses
Reserve for bonuses
Other
Long-term liabilities
Long-term debt
Deferred tax liabilities
Lease liabilities
Liability for employees’ retirement
benefits
Liability for director’s retirement
benefits
Provisions for stock benefit program
Other
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive
incomeAmount31,89912,16910,571
775
3,135
483
762
2,288
537
1,175
6,529
3,781
681
1,326
108
27
137
466
38,42845,9896,770
6,896
36,364(4,042)
12,014

Deferred tax assets

306

Unrealized gain on available-for-salesecurities

803

Other

212

Foreign currency translation adjustment

11,345Remeasurements of defined benefit
plans

Total assets
Note:102,747

Non-controlling interests
Total net assets
Total liabilities and net assets

Figures less than ¥1,000,000 are rounded down to the nearest ¥1,000,000.

13

(134)
6,314
64,319102,747

Consolidated Statement of Income(from April 1, 2023 to March 31, 2024)(Millions of yen)Account item

AmountNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividend income
Foreign currency exchange gain
Subsidy income
Miscellaneous income
Non-operating expenses:
Interest expenses
Loss on retirement of non-current assets
Loan commission
Miscellaneous loss
Ordinary income
Extraordinary income:Gain on sales of property, plant and equipment
Gain on reversal of asset retirement obligations
Extraordinary losses:
Severance payments
Income before income taxes
Income taxes—current
Income taxes—deferred
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent
Note: Figures less than ¥1,000,000 are rounded down to the nearest ¥1,000,000.

14

122,447
103,610
18,836
14,424
4,412
183
69
334
6
279
645
85
78
173

707
133
488
1,475
(25)

875

982
4,305

841
488
4,658
1,450
3,207
902
2,304

Consolidated Statement of Changes in Shareholders’ Equity(from April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders’ equity

Balance, April 1, 2023

Common stock

Capital surplus

6,770

6,896

Retainedearnings

Treasury stock

Total
shareholders’equity(4,152)44,04534,531

Changes during the fiscal year
Cash dividends paid

(447)

(447)

Net income attributable to owners of theparent

2,304

2,304

Purchase of treasury stock
Disposal of treasury stock

(24)

(69)

(69)

179

155

Net change in items other thanshareholders’ equity during the fiscal year
Total changes during the fiscal year
Balance, March 31, 2024

–

–

1,833

110

1,944

6,770

6,896

36,364(4,042)

45,989

Accumulated other comprehensive income
Unrealized
gain onavailable-forsale securities
Balance, April 1, 2023

385

Total
NonForeign
Remeasurements accumulated
controllingcurrencyof defined
otherinterests
translation
benefit plans comprehensive
adjustment
income
6,687

(22)

7,050

5,419

Total net
assets56,515

Changes during the fiscal year
Cash dividends paid

(447)

Net income attributable to owners of
the parent

2,304

Purchase of treasury stock(69)

Disposal of treasury stock155

Net change in items other thanshareholders’ equity during the fiscal year

418

Total changes during the fiscal year
Balance, March 31, 2024
Note:

4,657

(111)

418

4,657

(111)

4,964

895

7,804

803

11,345(134)

12,014

6,314

64,319Figures less than ¥1,000,000 are rounded down to the nearest ¥1,000,000.

15

4,964

895

5,859

Standalone Balance Sheet(as of March 31, 2024)(Millions of yen)
Assets
Account item
Current assets
Cash and deposits
Notes receivable—trade
Electronically recorded monetaryclaims-operating

Liabilities
Account item
Current liabilities
Account payable—trade
Short-term bank loans
Current portion of long-term debt
Accounts payable—other
Income taxes payable
Accrued expenses
Reserve for bonuses
Other
Long-term liabilities
Long-term debt
Provisions for stock benefit program
Deferred tax liabilities
Provision for loss on guarantees
Other

Amount27,4246,023
1441

Account receivable—trade
16,029Finished goods
4,240
Raw materials and supplies
151
Advance payments to suppliers
136
Prepaid expenses
25
Accounts receivable—other
353
Other
21
Non-current assets
19,377
Property, plant and equipment
3,427
Buildings
1,444
Structures
1
Machinery
32 Total liabilities
Vehicles0
Net assets
Furniture and fixtures
67 Shareholders’ equity
Land
1,853
Common stock
Construction in progress
28
Capital surplus
98
Capital reserve
Intangible assets
Software98
Retained earnings
Other
0
Legal reserve
Other retained earnings
Investments and other assets
15,850Investment securities
1,993
General reserve
Stocks of subsidiaries and affiliates
11,599Retained earnings brought forward
Long-term loans receivable
3,868
Treasury stock
Prepaid pension cost
707 Valuation and translation adjustments
Other
20
Net unrealized gain on securities
Allowance for doubtful accounts(2,337) Total net assets
Total assets
46,802 Total liabilities and net assets
Note: Figures less than ¥1,000,000 are rounded down to the nearest ¥1,000,000.

16

Amount24,00013,070
8,355
775
976
63
174
461
123
5,294
3,781
137
566
797
11
29,295
16,705
6,770
6,896
6,896
7,080
373
6,706
4,700
2,006
(4,042)801
801
17,50746,802

Standalone Statement of Income(from April 1, 2023 to March 31, 2024)(Millions of yen)Account item

AmountNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income:Interest and dividend income
Foreign currency exchange gain
Reversal of provision for loss on guarantees
Miscellaneous income
Non-operating expenses:
Interest expenses
Provision of allowance for doubtful accounts
Loan commission
Miscellaneous loss
Ordinary income
Extraordinary income:Reversal of asset retirement obligations
Extraordinary losses:
Severance payments
Income before income taxes
Income taxes—current
Income taxes—deferred
Net income
Note: Figures less than ¥1,000,000 are rounded down to the nearest ¥1,000,000.

17

55,39452,192
3,202
4,288(1,086)
2,746
120
244
26
494
627
78
27

3,138

1,227
825

133

133

488

488
470

50
(50)

0
470

Standalone Statement of Changes in Shareholders’ Equity(from April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders’ equity
Capital surplus

Common stock
Balance, April 1, 2023

Capital reserve

Total capital surplus

6,770

6,896

6,896

–

–

–

6,770

6,896

6,896

Changes during the fiscal year
Cash dividends paid
Net income
Purchase of treasury stock
Disposal of treasury stock
Net change in items other than shareholders’ equity
during the fiscal year
Net change in the year
Balance, March 31, 2024

Shareholders’ equity
Retained earnings
Other retained earnings
Generalreserve

Retainedearnings
brought
forwardTotal
retainedearnings

Treasury
stock

Total
shareholders’equity

4,700

2,007

7,080

(4,152)

16,595

Cash dividends paid

(447)

(447)

Net income

470

470

Legal reserve

Balance, April 1, 2023

373

Changes during the fiscal year

Purchase of treasury stock
Disposal of treasury stock

(24)

(24)

(447)
470
(69)

(69)

179

155

Net change in items other than shareholders’equity during the fiscal year
Net change in the year

–

–

(0)

(0)

110

110

Balance, March 31, 2024

373

4,700

2,006

7,080

(4,042)

16,705

Note:

Figures less than ¥1,000,000 are rounded down to the nearest ¥1,000,000.

18

(Millions of yen)
Valuation and translation adjustments

Balance, April 1, 2023

Net unrealized gain on
securities

Total valuation andtranslation adjustments

408

408

Total net assets
17,003

Changes during the fiscal year
Cash dividends paid

(447)

Net income

470

Purchase of treasury stock(69)

Disposal of treasury stock155

Net change in items other thanshareholders’ equity during the fiscal year

393

393

393

Net change in the year

393

393

503

Balance, March 31, 2024

801

801

17,507

Note:

Figures less than ¥1,000,000 are rounded down to the nearest ¥1,000,000.

19