Action to implement management that isconscious of cost of capital and stock priceMay 27, 2024 revised.

Action to implement management that is conscious of cost of capital and stock priceBusiness analysis
 Our trust-based relationships, including our personal relationships with our customers, which we have developed based on our many years ofhistory as a Mitsubishi Heavy Industries sales distributor, are the stable foundation of our competitiveness.
 We have developed a new business related to nuclear power generation, one of our growth pillars, and stabilized the growth trajectory of ourenergy business.
 The industrial machinery business lacks the necessary management resources to expand into new business fields or differentiate itself fromits competitors.
 Our global network lacks an advantage relative to to other machinery trading companies’ networks for creating new revenue opportunities.
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Current
Situation

Stock analysis
 Our consolidated profit is trending upward, and we have been making progress in asset replacement. However, this is not reflected in thestock price. The PBR is low (0.75 at the end of September 2023). We need to work on improving the PER.
 In Medium-term Management Plan VIORB2030 Phase 1, the dividend payout ratio target was set at 35%, which falls short of the shareholder
return (total payout ratio, dividend payout ratio, etc.) level of the companies listed on the TSE Prime Market.
 As stated in Medium-term Management Plan VIORB2030 Phase 1, the Company aims to maintain a Return on Equity (ROE) of at least 8.0%.
However, this falls short of the ROE that institutional investors consider desirable over the medium to long term.
 The number of shareholders is gradually decreasing, and individual shareholders’ holdings are becoming more stable. The trading volume issmall. In this situation, our initiatives are not well understood.

Policies We aim to achieve the consolidated profit target of 4.5 billion yen that we set out in the VIORB 2030 long-term vision, before FY2030.
 We will make business investments using financial leverage to enhance corporate value and increase shareholder return.
 We will revise our ROE target (maintaining an ROE of 8.0% or higher) up to 10.0% and establish an organizational structure that effectively
uses the PDCA cycle to achieve the long-term vision’s earnings target ahead of schedule.

Specificactions

 We will invest 10.0 billion yen in growth opportunities while maintaining financial soundness, taking advantage of our strong balance sheet.
 We will change our shareholder return target from the dividend payout ratio to the total payout ratio. We will aim to achieve a total payout
ratio of 45% to increase shareholder return.
 We will aim to reduce cross-held shares to less than 20% of consolidated net assets by FY2024 as planned. We are considering
subsequently reducing them to 10%.
 We plan to introduce a shareholder benefit program to attract new investors and increase stock trading.
 We will promote disclosure, dialogue with investors, and investor relations to have our initiatives understood by more people.
 We will introduce a remuneration system for officers as a sound incentive for the achievement of sustainable growth.

Accelerate Implementation of the Growth Strategy
We will accelerate the implementation of our growth strategy (investment in growth opportunities) toachieve the profit target of 4.5 billion yen set out in the VIORB 2030 long-term vision before FY2030.
Our strengths

Product BusinessSegment operating income● Trading based on strong trust-based
relationships with major business partners(in billion yen)

2.9(Revisedforecast)● Development of unique products that areniche and competitive

2.6(Forecast)● The ability to propose products to a range ofindustries through transactions with diverse
manufacturers

Business strategy● Strengthen the business foundations
based on the energy business
グループ企業での● Make strategic business investments toオリジナル商材の開発
develop new commercial rights andcommercial products
事業投資・M&A
Rebuilding of the business
プロダクト portfolio
事業の柱創出● Engage in selection and concentration
based on the careful examination of growthpotential and implement asset replacement
トレーディングの産業機械
グローバル化2.2(Initial forecast)

FY2023

FY2026

FY2030Industrial Machinery
Business

Segment operating income(in billion yen)

0.8

0.3 (Forecast)(Revisedforecast)

0.5(Initial forecast)

FY2023

FY2026

FY2030

Energy Business

社是
社訓

Segment operating income

トレーディング・
ソリューションのエネルギー 提供形式の進化

事業の強靭化・収益構造の盤石化(in billion yen)

1.3

1.8

(Revised (Forecast)
forecast)

0.9(Initial forecast)

FY2023

FY2026

FY2030Trends in PER and PBRPER (times)

EPS (yen)

PBR (times)(Times)(Yen)(Times)

25500

1.4

372.46 yen
400
20

1.230015

10200
9.9100(Yen)
4,000
3,705 yen
3,500
3,000
1.06 2,500

10.8

0

2,000
1,500
1,000

0.6

5-1000Stock price at year-end (yen)-200(Note) PER: Price Earnings Ratio, EPS: Earnings Per Share, PBR: Price Book-value Ratio

5000.40Specific actions and Progress

We will revise our ROE target (initiallyset at keeping ROE in the 8% range)
upwards to 10.0% and establish anSpecificorganizational structure that effectively
actions
uses the PDCA cycle to achieve thelong-term vision’s earnings target
ahead of schedule.

We will change our shareholder returntarget from the dividend payout ratio tothe total payout ratio. We will aim toachieve a total payout ratio of 45% toincrease shareholder return.

We will aim to reduce cross-held sharesto less than 20% of consolidated netassets by the end of FY2024 asplanned. We are considering
subsequently reducing them to 10%.

For FY2023, we fulfilled the target after
We changed our shareholder return We expect to achieve a ratio of crossthe upward revision and attainedtarget from the payout ratio of 35% to a shareholdings to our consolidated net
11.6%.We will aim for an even higher
total return ratio of 45%.
assets of less than 20% by the end ofROE level.
FY2024.
(Yen)

Progress

180

150

20.0%
15.0%

9065

10.0%

15.4%
10.0%

5.0%

5.6%

7.6%4511.6%2520402535-4.7%

Dividend payout ratio at 35%-5.0%
FY2018-10.0%FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2020

FY2021
Interim

FY2022Year-end

25.68%

90
21.27%

90

55

0.0%

28.13%

28.04%

60

90

8.40
billion yen

8.00
billion yen

12.10

To a level
below 20%billion yen

7.60
billion yen

Total return ratioat 45% (goal)
FY2023(Plan)FY2024(Forecast)

FY2020
FY2021
FY2022
FY2023
FY2024
Cross-held shares
Cross-held shares as a percentage of consolidated net assets

5Specific actions and Progress

We will promote disclosure, dialogue
We will invest 10.00 billion yen in
We plan to introduce a shareholder
with investors, and investor relations to growth opportunities while maintaining
Specific
benefitprogramtoattractnewinvestors
actionshave our initiatives understood by more financial soundness, taking advantage
and increase stock trading.
people.
of our strong balance sheet.

- Introduction of a shareholder benefit
programNumber of shares
held
100 to 299 shares
300 to 499 shares
500 shares or moreBenefits
QUO Card worth 1,000 yen
QUO Card worth 2,000 yen
QUO Card worth 3,000 yen- We held a total of six company
information sessions for private
investors in a year.
- We reinforced IR interviews.
FY2022: 6
FY2023: 24- TurnoverFY2022: average 19.56 million yen/day - Publish Integrated Reports
Progress
FY2023: average 38.45 million yen/day- Announcement of analyst report→96.5% increase
release(Shared Research Inc)
- Number of shareholders
End of FY2022: 7,734 people
End of FY2023: 10,444 people→35.0% increase

Specific initiatives under considerationWe will introduce a remuneration
system for officers as a sound incentive
for the achievement of sustainablegrowth.

We introduced a board incentive plan(BIP) trust program under which
evaluation would be based on themarket capitalization, ROE and the- We carried out a complete renovation level of implementation of the mediumof our website.
term management plan.
- We stepped up publicity on TV, radio
and magazines.

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