< Notice >This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation, nor for direct,
indirect, or any other form of damages that may arise from use of this translation.

Annual Securities Report
Fiscal year

From April 1, 2023

(86th)To March 31, 2024

EIKEN CHEMICAL CO.,LTD.

Page

Table of contents

Part 1 Company Information ..................................................................................................................................................................... 3
Ⅰ. Overview of Company ........................................................................................................................................................................... 3
1 Trends of Key Management Indicators ............................................................................................................................................... 3
2 History ................................................................................................................................................................................................ 5
3 Business Description........................................................................................................................................................................... 6
4 Subsidiaries and Other Affiliated Entities ........................................................................................................................................... 7
5 Employees .......................................................................................................................................................................................... 7
Ⅱ. Overview of Business............................................................................................................................................................................ 9
1 Management Policy, Business Environment, Issues to Address.......................................................................................................... 92 Views on Sustainability and Initiatives ............................................................................................................................................. 13
3 Operating Risks ................................................................................................................................................................................ 24
4 Management Analysis of Consolidated Financial Position, Consolidated Business Performance and Cash Flows .......................... 26
5 Material Contracts, etc. ..................................................................................................................................................................... 32
6 Research and Development Activities .............................................................................................................................................. 33
Ⅲ. Information about Facilities ............................................................................................................................................................... 34
1. Overview of Capital Expenditures ................................................................................................................................................... 34
2 Major Facilities ................................................................................................................................................................................. 34
3 Planned Addition, Retirement, and Other Changes of Facilities ....................................................................................................... 35
Ⅳ. Information about Reporting Company ............................................................................................................................................. 36
1. Company’s Shares, etc. .................................................................................................................................................................... 36
2. Acquisition and Disposal of Treasury Shares. .................................................................................................................................. 73
3 Dividend Policy ................................................................................................................................................................................ 74
4 Corporate Governance ...................................................................................................................................................................... 75
Ⅴ. Financial Statements ......................................................................................................................................................................... 102
1. Consolidated Financial Statements, etc. ....................................................................................................................................... 103
2. Non-consolidated Financial Statements ......................................................................................................................................... 162
Ⅵ. Outline of Share-related Administration of Reporting Company..................................................................................................... 178
Ⅶ. Reference Information About Reporting Company ........................................................................................................................ 179
1 Information about parent of reporting company ............................................................................................................................. 179
2 Other reference information ............................................................................................................................................................ 179
Part 2 Information about the Submitting Company’s Credit Guarantee Company, etc. ......................................................................... 180-1-CoverDocument filed:Annual Securities Report (“Yukashoken Hokokusho”)

Applicable law:

Article 24, Paragraph 1 of the Financial Instruments and Exchange Act

Filed with:

Director-General, Kanto Local Finance Bureau

Filing date:June 26, 2024

Fiscal year:

86th period (From April 1, 2023 to March 31, 2024)

Company name:Eikenkagaku Kabushiki Kaisha

Company name in English:

EIKEN CHEMICAL CO.,LTD.

Title and name of representative:

Tsugunori Notomi, President & CEO

Address of head office:4-19-9 Taito, Taito-ku, Tokyo, 110-8408 JAPAN

Phone number:

03 (5846) 3305 (representative)

Contact person:

Hajime Watari, Director andSenior Vice President and Executive Officer
General Manager, Business Management Division

Nearest place of contact:

4-19-9 Taito, Taito-ku, Tokyo, 110-8408 JAPAN

Phone number:

03 (5846) 3305 (representative)

Contact person:

Hajime Watari, Director andSenior Vice President and Executive Officer
General Manager, Business Management Division

Place where available for public inspection:

Tokyo Stock Exchange, Inc.
(2-1, Nihombashi Kabuto-cho, Chuo-ku, Tokyo, Japan)
EIKEN CHEMICAL CO.,LTD. Kansai Sales Dept.
(3-3-9 Azuchimachi Chuo-ku, Osaka-shi, Osaka-fu)(Note) The Kansai Sales Department mentioned above is not a place for inspection as stipulated in the Financial Instruments andExchange Act, but it is a place for vertical inspection for the convenience of investors.

-2-

Part 1 Company Information
I. Overview of Company
1. Trends of Key Management Indicators(1) Consolidated Management Indicators
Fiscal Year

82nd period

83rd period

84th period

85th period

86th period

Year EndMarch 2020

March 2021

March 2022

March 2023

March 2024

Net sales(Millions of yen)

36,58538,66742,99643,27140,052

Ordinary profit(Millions of yen)

4,723

6,808

8,508

7,568

3,568

Profit attributable to ownersof parent(Millions of yen)

3,538

5,044

6,218

5,736

2,634

Comprehensive income(Millions of yen)

3,337

5,507

6,290

5,595

2,931

Net assets(Millions of yen)

37,303

41,67245,80349,53545,971

Total assets(Millions of yen)

50,322

55,68562,512

66,27561,651

Net assets per share(Yen)

1,002.86

1,120.36

1,230.55

1,327.47

1,318.38

Basic earnings per share

(Yen)

95.95

136.65168.28155.17

71.69

Diluted earnings per share

(Yen)

95.21

135.60167.01

153.8671.10

Equity ratio

(%)

73.5

74.3

72.8

74.2

74.0

Return on equity

(%)

9.9

12.9

14.3

12.1

5.6

Price earnings ratio(Times)

20.5

15.8

10.3

10.1

27.9

(Millions of yen)

5,460

5,451

7,769

7,575

3,806

(Millions of yen)

(3,711)(2,193)(5,044)(316)(2,216)(Millions of yen)

(1,220)(1,275)

1,200(2,095)(6,694)(Millions of yen)

4,981

6,968

10,90016,064

10,966

724

733

745

754

757

(329)

(354)

(360)

(352)

(344)

Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents
at end of period
Number of employees[Average
numberoftemporary employees](Persons)(Note) The “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29,
March 31, 2020), etc. are applied from the beginning of the 84th fiscal year and the key management indicators in and after
the 84th fiscal year are those after the application of the said accounting standard, etc.

-3-(2) Management Indicators of Reporting Company
Fiscal Year

82nd period

83rd period

84th period

85th period

86th period

Year EndMarch 2020

March 2021

March 2022

March 2023

March 2024

36,564

38,61042,91543,19539,962

4,703

6,833

8,515

7,613

3,581

3,518

5,070

6,231

5,781

2,648

6,897

6,897

6,897

6,897

6,897

43,541,438

43,541,438

43,541,438

43,541,438

40,041,438

37,741

41,67945,75549,66745,82850,75355,696

62,46966,40461,503(Millions ofyen)(Millions ofyen)(Millions ofyen)(Millions ofyen)

Net sales
Ordinary profit
ProfitShare capital
Total number of issued shares(Shares)(Millions ofyen)(Millions ofyen)

Net assets
Total assets
Net assets per share(Yen)

1,014.73

1,120.56

1,229.25

1,331.05

1,314.26

Dividend per share[Interim dividend per share]

(Yen)

30.00
(13.00)41.00(15.00)51.00(20.00)51.00(24.00)51.00(25.00)

Basic earnings per share

(Yen)

95.41

137.35168.62156.4072.07

Diluted earnings per share

(Yen)

94.67

136.30167.34155.0871.48

Equity ratio

(%)

73.7

74.3

72.7

74.2

73.9

Return on equity

(%)

9.7

12.9

14.4

12.2

5.6

Price earnings ratio(Times)

20.7

15.7

10.2

10.0

27.7

Dividend payout ratio

(%)

31.4

29.9

30.2

32.6

70.8

677

684

697

708

713

(315)

(341)

(347)

(344)

(340)

(%)

76.8

85.7

71.0

66.6

85.3

(%)

(90.5)(128.6)(131.2)(138.8)(196.2)

2,660

2,438

2,340

2,076

2,055

1,440

1,562

1,652

1,534

1,334

Number of employees[Average
numbertemporary employees]ofTotal shareholder return[Comparison
indicators:
Dividend Included TOPIX](Persons)

Highest share price(Yen)

Lowest share price(Yen)(Notes) 1. Highest and lowest share prices on and before April 3, 2022 are those recorded on the First Section of the Tokyo Stock
Exchange, while prices on and after April 4, 2022 are those recorded on the Prime Market of the Tokyo Stock
Exchange.
2. The “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29,
March 31, 2020), etc. are applied from the beginning of the 84th fiscal year and the key management indicators for the
fiscal years in and after the 84th fiscal year are those after the application of the said accounting standard, etc.

-4-

2. History
February 1939

Koa Kagakukogyo Co., Ltd. (133, Honden-cho, Katsushika-ku, Tokyo) established with 50,000 yen incapital and launched manufacturing and sales of nutritional foods made with livestock organs as raw
materials.

August 1940

Company name changed to Koa Eiyokagaku Kenkyusho Co., Ltd.

April 1941

Obtained a license as a pharmaceutical manufacturer and dealer to begin the manufacture and sale of organ

May 1943

Capital alliance executed with Tanabe Seiyaku Co., Ltd. through a third-party allotment.

April 1946

Company name changed to Nihon Eiyokagaku Co., Ltd.

April 1950

First company to succeed in creating a powdered agar for the detection of shigella bacteria (typhoid

May 1961

Established the Clinical Diagnostics Division and launched research and development of in vitro

pharmaceuticals.

search), contributing to the development of communicable disease control and public health in Japan.
diagnostics.
September 1965

Completed phase-one construction of the Nogi Plant (Nogi, Tochigi) and launched production.

February 1969

Company name changed to Eiken Chemical Co., Ltd. on the 30th anniversary of its founding.

February 1975

Completed Oji Office (Kita-ku, Tokyo) and launched operations.

June 1979

Completed Togane Plant (Togane, Chiba) and launched production.

August 1980

Completed new headquarters building (Bunkyo-ku, Tokyo) and launched operations.

April 1984

Completed phase-one construction of the Nasu Plant (Otawara, Tochigi) and launched production.

March 1987

Completed the phase-two construction of the Nasu Plant and launched production.

December 1987

Began capital participation in EIKEN KIZAI CO., LTD.

June 1989

Completed Nogi Plant No. 8 (Immuno-Serum Preparation Plant) and launched production.

January 1990

Listed stock in the Second Section of the Tokyo Stock Exchange.

May 1990

Established Tokyo Office (Sumida-ku, Tokyo).

September 1991

Established Eiken Million Staff Co., Ltd.

June 1992

Completed Biochemical Research Laboratory (Nogi, Tochigi) and launched operations.

September 1996

Completed phase-one construction of the Nasu Plant No. 2 and launched production.

September 2001

Established Eiken Logistics Service Co., Ltd.

March 2002

Selected as one of the specified brands of the Tokyo Stock Exchange First Section.

February 2004

Completed Logistics Management Center (Nogi, Tochigi) and launched operations.

September 2004

Established EIKEN SHANGHAI CO., LTD.

August 2006

Completed construction of the factory of EIKEN SHANGHAI CO., LTD.

October 2006

Merged Eiken Logistics Service Co., Ltd. into Eiken Million Staff Co., Ltd.

April 2007

Merged with EIKEN KIZAI CO., LTD.

July 2008

Relocated headquarters and integrated three Tokyo offices (Taito-ku, Tokyo).

July 2009

Completed Nogi Plant’s powder culture mediums plant and launched production.

February 2012

Completed Operation Management Center (Office Building and Manufacturing Building) at the Nogi
Division and launched operations.

March 2012

Closed Oji Office and operations consolidated mainly into the Nogi Division.

April 2012

EIKEN SHANGHAI CO., LTD. renamed EIKEN CHINA CO., LTD.

June 2012

Closed the Togane Division and transferred production to the Nogi Division.

March 2014

Dissolved Eiken Million Staff Co., Ltd.

April 2014

Established Europe Office (Amsterdam, Holland).

April 2017

Expanded and renovated Nasu Plant No. 2 and launched operations.

September 2017

Began operation of a production line for urinalysis paper at the new manufacturing building of the Nogi
Plant.

September 2020

Established a stable supply system for COVID-19 detection reagents.

April 2022

Moved from the First Section to the Prime Market due to the revision of the market classification of the-5-Tokyo Stock Exchange.
October 2022

Completed a new research laboratory (Nogi, Tochigi), and launched operations as the R&D Center
together with an existing research laboratory.

November 2023

Established EIKEN MEDICAL AMERICA INC. (DELAWARE).

3. Business Description
The Group consists of the Company and its consolidated subsidiaries (EIKEN CHINA CO., LTD. and EIKEN MEDICALAMERICA INC.) It consists of a total of three companies, and its main business is the manufacture and sale of clinical diagnostics.
EIKEN CHINA CO., LTD. is engaged in the contract production of our clinical diagnostics and the purchase, manufacture and saleof our clinical diagnostics.
EIKEN MEDICAL AMERICA INC. was established in the current consolidated fiscal year, but has not started business.
The above is shown as a systematic diagram of the business.
[Business diagram](Note) EIKEN MEDICAL AMERICA INC. has not started its business, so it is not included in the above business diagram.

-6-

4. Subsidiaries and Other Affiliated Entities
Consolidated Subsidiaries
Relationship with the Company

Name

Share
capital(Millionyen)

Location

EIKEN
CHINA
CO., LTD.

China
Shanghai

EIKEN
MEDICALAMERICA INC.

UnitedStates
Texas
state

Main
business

Percentage
of votingrights held(%)

Concurrent officer,
etc.
The
The
Compa
Companny’s
y’s
employofficers
ees(Person(Persons)s)Financialsupport(Millionsof yen)1,316

Manufactureand sale ofclinicaldiagnostics

100

２

１

－

72

Sales
of
clinicaldiagnostics

100

１

－

－

Businesstransactions

Contract
manufacturin
g of theCompany's
products andpurchase,manufacture,and sale oftheCompany's
productspurchase andsales of theCompany's
products

Leaseofequipm
ent

Other

－

－

－

－

(Note) EIKEN CHINA CO., LTD. is a specified subsidiary.

5 Employees(1) Consolidated companies
As of March 31, 2024
Number of employees (persons)
Total(Notes)757(344)

1. The number of employees is the number of full-time employees, and the number of temporary employees (including
senior employees, part-time employees, contract employees, and temporary employees) is the average number of
employees per year, which is shown in parentheses.
2. The number of employees is collectively stated for the Group because the Group’s business is a single segment in theclinical diagnostics business, and it does not distinguish between business divisions, etc.

-7-(2) Reporting company
As of March 31, 2024
Number of employees (persons)713(340)(Notes)1.
2.

Average age

Average length of service

42 years and 5 months old

Average annual salary (yen)

15 years and 5 months

7,717,032

Average annual salary includes non-standard salary and bonus.
The number of employees is the number of full-time employees, and the number of temporary employees (including
senior employees, part-time employees, contract employees, and temporary employees) is the average number of
employees per year, which is shown in parentheses.

(3) Status of labor unions
Labor-management relationship is stable at the Group, and there are no matters to be stated.
(4) Percentage of women in management positions, percentage of male employees taking childcare leave, and differences in wages
between male and female employees
Reporting company
Current fiscal year
Percentage of male
Percentage of women
employees taking
in management
childcare leave (%)
positions (%) (Note 1)(Note 2)
15.4
(Notes)1.
2.

Differences in wages between male and female employees (%) (Note 1)
Regular Employment
laborer

All workers

90.0

68.9

91.7

Part
Fixed-term workers
49.4

Calculated in accordance with the provisions of the “Act on Promotion of Women’s Participation and Advancementin the Workplace” (Act No. 64, 2015).
Calculated based on the ratio of employees who took childcare leave, etc. as stipulated in Article 71-4, Item 1 of the“Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare ofWorkers Caring for Children or Other Family Members” (Ordinance of the Ministry of Labor No. 25, 1991), in
accordance with the provisions of the “Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfareof Workers Caring for Children or Other Family Members” (Act No. 76, 1991).

-8-

II. Overview of Business
1. Management Policy, Business Environment, Issues to Address
Forward-looking statements in this document are based on the judgment of the Group as of the end of the consolidated fiscal
year under review.
(1) Management policy
The Group has established the “EIKEN WAY,” which consists of our management philosophy, management vision, and motto,
and by implementing the “EIKEN WAY” throughout the Group, we aim to continuously increase corporate value and contribute to
the prosperity of our business partners and to our shareholders and society.
EIKEN WAY
□ Our Management Philosophy: Protect the health of the public through health care services.
□ Our Management Vision:

Eiken group is dedicated to leveraging expertise as a medical testing pioneer in order to increase
corporate value by protecting the health of the public with products and services that customers
can trust.

□ Our Motto:

We Eiken provide trustworthy quality, and develop with technology.

(2) Management strategy, etc.
To respond to the unfolding changes in its business environment and operate from a perspective of sustainable management, theGroup has formulated the “EIKEN ROAD MAP 2030” with the year 2030 as the target year.
The slogan for the Group’s vision for 2030 is “Beyond the Field: Team × Challenge.” Under this slogan, we aim to achieve threeobjectives: To energize the skillset of each and every employee so that all employees can broaden their domain of activity; to giverise to fresh possibilities by gathering those individuals with their enhanced capabilities and taking them beyond their respective
domains to take on challenges as a team; and to step beyond existing business domains to inspire innovation in medical processes,
thereby building the future of testing.
“EIKEN ROAD MAP 2030” identifies the Group’s existing business domains as its core businesses while specifying three areas
as key business fields: Contribution to the prevention and treatment of cancer; Contribution to the eradication and control of
infectious diseases; and Provision of products and services that play a valuable role in health management.
In the field of “cancer,” we will focus on areas that are more directly related to treatment, while in the field of “infectious diseases,”
we will focus on establishing simpler testing technologies. In the field of “healthcare,” the Group will expand its products andservices to serve the needs of remote diagnosis and home testing.

-9-

<Vision for the Medium-to-Long Term>■ Contribution to the prevention and treatment of cancer
The Group concentrates its efforts on the diagnostic business (prevention and early detection). This focus has enabled theGroup to contribute to lowering the cancer death rate, particularly in colorectal cancer, by constructing a global screening programand enabling the early detection of cancer. However, the cancer treatment field has other needs as well. Cancer treatment can beruinously expensive, and choosing the right treatment is paramount. To serve these treatment needs, the Group aims not only toprevent cancer but also to develop comprehensive testing systems that cover the selection of therapeutic agents and the judgementof the efficacy of treatments. In this way the Group is committed to reducing the death rate from cancer.
■ Contribution to the eradication and control of infectious diseases
To grapple with threatening infectious diseases, the Group will expand its lineup of related products and deploy genetic testing
systems for tuberculosis, malaria and other infectious diseases worldwide. By developing infection-diagnostic systems that are
simpler and faster than previous diagnostic methods, the Group will contribute to improved access to healthcare.
■ Provision of products and services that play a valuable role in health management
To extend people’s healthy lifespan, the Group will advance into the field of mobile health, diversifying into remote diagnostics
and home testing. Ultimately, the Group aims to develop monitoring systems that stay close to people’s lives and provide
information about their health condition before they realize they need it.

-10-

<Medium-Term Management Plan>
The Group has established its first Medium-Term Management Plan aimed at achieving “EIKEN ROAD MAP 2030”. This
Plan outlines key measures in accordance with the vision of “EIKEN ROAD MAP 2030” and responds to the currently
accelerating paradigm shift in healthcare. In addition, the Plan aims to advance the enhancement of management platform,
promote personnel-focused management, enhance employee satisfaction and motivation, furnish an environment that fosters
innovation and boost sustainable growth with steady improvement in profitability.
Principal Fields and Key Measures for the Three-year Medium-Term Management Plan

(3) Objective indicators for judging the status of achievement of management goals
In its Medium-Term Management Plan, the Group aims to achieve net sales of 43,500 million yen (11,230 million yen inoverseas sales), operating profit of 6,250 million yen (operating profit margin of 14.4%), and ROE of 9.2% with the fiscal year
ending March 31, 2025 being the final year of the plan.

-11-

(4) Business Environment
Regarding future prospects, difficult conditions will likely continue due to the unstable global situation in Ukraine, the Middle
East, etc., soaring resource and raw material prices and the impact of rising prices caused by the weaker yen.
In addition to responding to the unfolding changes in its business environment, the Eiken Group will identify existing businessdomains as its core businesses and implement key measures focused on the three key business fields of “Contribution to cancer
prevention and treatment,” “Contribution to the eradication and control of infectious diseases,” and “Provision of products andservices useful for health care,” based on the Group’s management framework “EIKEN ROAD MAP 2030” In the field of“cancer,” we will focus on areas that are more directly related to treatment, while in the field of “infectious diseases,” we will
focus on establishing simpler testing technologies. In the field of “healthcare,” the Group will expand its products and services
to serve the needs of remote diagnosis and home testing.
With a view to establishing a sustainable society, the Group has identified 11 materialities (key issues) for priority response
and is deploying detailed action plans for each. The Group sets key performance indicators (KPI) For each materiality andproceeds with each materiality while monitoring progress toward achievement. As a Group with a mission to protect the healthof people worldwide, the Group is addressing issues not only in “Medical” but also in the “Environment,” “Society,” and“Governance.” We believe that contributing solutions to social issues in this way will further bolster our corporate value and leadto achieving a sustainable society.
Regarding our performance forecast for the next fiscal year, we forecast sales of 43,100 million yen (up 7.6% year-on-year)
due to increased sales of fecal immunochemical test reagents and Mycobacterium tuberculosis complex detection reagent kitsoveseas. Regarding profit, we forecast operating profit of 5,660 million yen (up 67.6% year-on-year), ordinary profit of 5,620
million yen (up 57.5% year-on-year), and profit attributable to owners of parent of 4,480 million yen (up 70.1% year-on-year)
due to an increase in expenses from investment for research and development and investment to bolster management
fundamentals.
Overseas, we forecast net sales of 12,320 million yen (up 21.8% year-on-year) and a sales ratio of 28.6%.
(5) Business and financial issues to be addressed on a priority basis
In the current consolidated fiscal year, the Group has been working on the following priority issues based on the “EIKENROAD MAP 2030” and the Medium-Term Management Plan (FY ending March 2023 ~ FY ending March 2025).
① Contribution to cancer prevention and treatment
We have improved the buffer solution in the stool collection container for fecal immunochemical tests and succeeded in
improving the stability of hemoglobin and the reactivity with antibodies. The improvement of the buffer solution will make itpossible to conduct medical examinations by mail even in the summer, and it is expected that the expansion of mail-in screening
will lead to an increase in the screening rate.
② Contribution to eradication and control of infectious diseases
The tuberculosis testing system that uses the LAMP (Loop-mediated Isothermal Amplification) method (TB-LAMP)

hasbeen adopted on a large scale in Nigeria as an active screening program for tuberculosis patients through mobile health screening.
Since its launch in 2011, TB-LAMP has been used globally and has been awarded the 27th Princess Chichibu Memorial
Tuberculosis Prevention Achievement Award (International Cooperation Achievement Award) in recognition of its significant
contribution to tuberculosis prevention. The Group will further accelerate its efforts to solve the social issue of the eradication of
tuberculosis.
③ Provision of products and services that play a valuable role in health management
The purpose of use (clinical significance) of “Assists in establishing Crohn's disease" has been added to the stool calprotectin
measurement reagent, which is being developed as a test for the early detection of inflammatory bowel disease (IBD), which
requires long-term treatment when it develops. As assists in establishing Crohn's disease, it is expected that the non-invasive
examination from stool will lead to a reduction in the physical and financial burden on patients due to endoscopy. In addition,the "periodontal disease risk assessment tool" that we are currently developing has been adopted by the Ministry of Health,Labour and Welfare as a "Periodontal Disease Screening Tool Development Support Project". In the future, we will work on thedevelopment of this tool with the aim of implementing it in society.
In the “EIKEN ROAD MAP 2030”, we have set forth "a vibrant corporation making use of employee’s talent" and "business-12-

activities in harmony with the global environment" as management strategies that are indispensable for promoting the abovebusiness activities. In order to achieve these goals, it is necessary to further strengthen the governance of the Group (including
subsidiaries) as a foundation, and we will continue to strive to improve it.
The Group will continue to promote the above priority measures, strengthen its management base, promote management that
focuses on human assets, and aim for sustainable growth and steady improvement in profitability.

2 Views on Sustainability and Initiatives
The Group’s views on sustainability and its initiatives are as follows.
Forward-looking statements in this document are based on the judgment of the Group as of the end of the consolidated fiscal
year under review.
To respond to environmental changes surrounding its business and incorporate a perspective of sustainable management, theGroup has formulated the “EIKEN ROAD MAP 2030” with the year 2030 as the target year. We will engage in our businessactivities based on the “EIKEN WAY,” which is based on our management philosophy, management vision, and motto, andstrengthen our ESG (environmental, social, and governance) initiatives to contribute to solving social issues, thereby realizing asustainable society and continuously increasing our corporate value.
(1) Governance
Based on the management philosophy “Protect the health of the public through health care services,” the Group will strive tosolve various social issues through its business activities. In order to promote sustainability more actively throughout the Group,
we have established a Sustainability Committee, which is chaired by the President & CEO and consists of the Executive Officers
in charge of each function and business group. In principle, the Sustainability Committee meets twice a year, deliberating andreporting on important matters related to sustainability. Depending on the importance or other aspects of the contents of issues tobe deliberated, the Committee refers some matters to the Management Conference, as necessary. The proceedings of the
Sustainability Committee are reported to and supervised by the Board of Directors. The mid-term and annual targets that areapproved and set forth by the Sustainability Committee are sent for execution to related committees and divisions, where they
are developed in detail and related activities are advanced.
(2) Strategy
The Group has identified 11 materialities, and in addition to “Environment,” “Society,” and “Governance,” has created thecategory of “Medical” as a company that protects the health of people around the world, expressed in four categories. The Groupis raising awareness of these materialities internally, incorporating them into its business strategy and drafting targets and key
performance indicators (KPI) for each issue. In so doing, the Group is focusing its combined efforts on these materialities andcontributing through various initiatives to the achievement of the SDGs.

-13-

Sustainability Site: https://www.eiken.co.jp/sustainability/-14-(3) Risk management
The Group has established the “Eiken Group Risk Management Regulations” based on the “Eiken Group Risk Management
Policy” and conducts periodic risk assessments to identify, analyze, and evaluate risks related to business activities. For majorrisks and Group-wide risks, the “Risk Management & Compliance Committee,” which includes all Executive Officers, oversees
risk management activities and works to reduce risks and prevent their occurrence. In addition, the “Risk Management &Compliance Promotion Committee” has been established at each division to address risks related to operations at the division or
department level. The committee reports on risk management activities to the Board of Directors, which oversees theeffectiveness of risk management.
(4) Indicators and Targets
Regarding the materiality items as described in the above “(2) Strategy” of the Group, it is difficult to describe at theconsolidated Group level because, although specific efforts are being made by the Company, along with the management ofrelated indicator data, such efforts are not being made at all companies belonging to the consolidated Group. For this reason, of
the targets related to the following indicators, those of the submitting company, which operates the main business in the
consolidated Group, are listed except for the materiality related to the environment.
Medium- and Long-Term Goals
Materialities

Measures

Indicators (KPI)
FY2024FY2030

Formulation and
Declaration－

8 countries

15 countries

49 countries

57 countries

100%

100%

100%

100%

Rate of reduction in CO2 emissions( total amount )Compared to FY2021
19% reduction

Compared to FY2021
56% reduction

Reduction rate of CO2 emissions(total amount)―Compared to FY2022
25% reduction

Compared to FY2018
30% reduction

Compared to FY2018
35% reduction

Reduction of waste

Rate of reduction of waste volume (by Compared to FY2018
unit of sales)
5% reduction

Compared to FY2018
15% reduction

Reduction of packaging
and use of sustainable
materials

Rate of adoption of eco-friendly
packaging (recycled paper)*2(compared with FY2021)

20%
compared to FY2021

30%
compared to FY2021

Rate of adoption of biodegradable
plastics and other recyclable
materials*3 (compared with FY2021)

2%
compared to FY2021

8%
compared to FY2021

Contributing to Improving Access to
Health and
Healthcare
Quality of Life
for People
Around the
Solutions to Medical
World
IssuesSupply of products to
Declaration of stance on improvement
developing countriesof access to healthcarethat have not yet adopted Number of countries in whichthemproducts are deployed

Pursuing Quality andEstablishing
Sustainable Supply
ChainsStrengthening of supply- Rate of implementation of surveys on
chain management
responsible procurement*1

Responding to
Climate Change
Contributing to a
Recycling-Oriented
Society

Reduction of CO2
emissions at worksites(Scopes 1 and 2)
Reduction of CO2
emissions at Supply
Chain (Scope 3)

Contributing to a
Recycling-Oriented
Society

Reduction of water use(water use at all
production bases
globally)

Rate of reduction in water use (byunit of value of production)

Business
Activities in
Harmony
with Regional
Environments

Global solutions tohealthcare issues

Number of countries in whichcolorectal cancer screening tests are
deployed

Rate of implementation of due
diligence on human rights*1-15-

A Dynamic
Company
Driven by
Excellent
PeopleRespecting Human
Rights and Diversity

Employee
Engagement andPersonnel Training

Boosting Health andEnsuring Safety andHygieneAn
Achieving Sound
Organizational and Transparent
Base That
GovernanceSupports
Sustainable
GrowthPromotion of diversity
and inclusion

Percentage of managerial positions
held by women*4

20%

30%

Percentage of employees who aredisabled

2.6%

3.0%

Eradication ofharassment

Rate of uptake of harassment
prevention training

100%

100%

Creating fulfilling andsupportive workplaces
and achieving work-lifebalance

Rate of uptake of child-rearing leave(male)*5

100%

100%

Rate of uptake of child-rearing leave(female) (acquirer/eligible persons)

100%

100%

Total actual work hours per full-time
employee per year*6

1,870h

1,635hRate of uptake of annual paid leave
per full-time employee

65%

100%

Development of global
personnel

Rate of uptake of EGP among young
employees*7

25%

30%

Advancement of healthimprovement programs
and safety-and hygiene
activities

Rate of uptake of regular healthcheckups

100%

100%

Number of occupational accidents(including commuting accidents)

0 results

0 results

Promoting diversity
among executives

Female directors as share of directors

20%

30%

Foreign-national directors as share of
directors－

20%

Female executive officers as share of
executive officers－

30%

Foreign-national executive officers as
share of executive officers

－

20%

100%

100%

0 results

0 results

100%

100%

Continuous
Number of BCP（Business
improvement of business Continuity Plan) training sessions
continuity management

1 time2 timesStrengthening of
information security
management

3 times

4 times

Rigorous Compliance Training and monitoring Training attendance rateand Thoroughbased on compliance
Number of serious noncompliance
Corruption Prevention programs
incident*8
Thorough prevention ofcorruption
Establishing Risk
Management

Rate of completion of requested
measures*1

Number of education and training
sessions on information security*1 Targets top 90% in transaction value*2 Shipped basis (number of product codes using eco-friendly packaging/number of product codes shipped)*3 Shipment base (number of product codes using eco-friendly materials such as biomass plastics/number ofshipping product codes)*4 Women in managerial positions at section-manager level or higher as share of total*5 Includes number of employees who use leave programs unique to the Company for the purpose of raising a child*6 [Scheduled working hours] + [non-scheduled working hours] – [amount taken of annual paid leave and other leave]*7 Rate of participation in the Eiken Global Program: For each fiscal year, [number of employees participating] ÷ [number of
employees of that fiscal year]*8 Total of major violations in each country of competition law, laws and regulations on corruption, and other socioeconomic laws
and regulations-16-

<Human Capital Management Initiatives>
Based on the Group’s management philosophy “Protect the health of the public through health care services,” we consider our
employees to be the most important assets for contributing to society through the provision of products and services that protect thehealth and lives of people around the world, and therefore, we describe our human resources as human assets.
(1) Governance
The Group’s Personnel Committee, chaired by the President & CEO and composed of Executive Officers in charge of eachfunction and business group, makes decisions on policies related to human resource strategy, organizational reforms including
the establishment and reorganization of organizations, appointment and dismissal of key positions, personnel assignment andpersonnel cost planning, and the establishment, revision, and abolition of human assets policies. Decisions made by the Personnel
Committee are reported to and supervised by the Board of Directors.
(2) Strategy
The human assets strategy under the Group’s Medium-Term Management Plan is as follows.
We believe that the future of the Group is created by our employees, and that expanding the potential of our employees willlead to the growth of the company and its contribution to society. Based on this policy, with the aim of becoming “A Dynamic
Company Driven by Excellent People,” the Group fosters an organizational culture that respects all types of diversity andembraces diversity, gives full consideration to employee safety and health, create an environment in which employees canconcentrate on high value-added work to enable all employees to realize success, and develop human assets that create new
innovations.
■ Personnel system
We will shift to a wage system that places more emphasis on roles and expertise, and an evaluation system that encourages
employees to take on new challenges, in pursuit of employee fulfillment and job satisfaction.
We will also promote a hybrid work style that combines office work and telecommuting, and super-flex working hours
without core hours to suit individual lifestyles to achieve a work-life balance and enhance labor productivity.
■ Securing human assets
Every year, we hire 5% of our employees.
・Recruitment of new employees
We will continue to recruit new graduates by job type based on their background details such as experience as a student
and areas of expertise. In addition, we also support diverse career designs by allowing employees to transfer between
different job types after joining the Company based on their own wishes and aptitude for the duties
・Mid-career recruitment
We will further strengthen the recruitment and appointment of specialized human assets necessary to promote our businessstrategy to realize “EIKEN ROAD MAP 2030”.
In addition, in securing human assets, we believe that one of the important themes is to provide support in the workplaceand improve the environment, and we will continue to review onboarding in order for new members of Eiken Chemical tointegrate into the company's culture and culture and demonstrate their abilities as team members at an early stage.
■ Human assets management
With the aim of fostering a corporate culture in which diverse human assets can play an active role, including thepromotion of women's empowerment, we will continue to work on measures to foster career awareness among employees,
support career design (reform of work styles, provision of growth opportunities, etc.), and develop diverse subordinates forleaders and senior positions. In addition, we will develop an HR database that visualizes the abilities, experience, andpersonalities of employees, and use it to monitor executive candidates, assign the right people to the right positions, andformulate succession plans for important positions.
■ Human assets development
In order to continue to be a company that contributes to society amid drastic changes in the business environment, wehave established human assets development vision and human assets requirement model, and have established human assets
development system to support new employees from becoming globally active leaders. In addition, in order to further
encourage employees to learn voluntarily and autonomously, we will provide opportunities for employees to learn "anytime"and "anywhere" from the perspective of fostering the next generation of management and relearning for mid-level ~ senior-17-

managers, and we will enhance our investment in human capital, which will lead to the growth of the company.
(3) Risk management
In the Group’s business activities, it is important to create an environment in which diverse human assets can utilize theirexpertise and backgrounds, and demonstrate their abilities to the fullest. Amid the increasing liquidity of human assets, we believethat our greatest risk is that we will not be able to secure human assets as planned and that our organizational strength will decline
due to employee turnover. We are striving to reduce this risk by promoting growth through advance investment in each employee
and by creating an environment in which everyone can play an active role.
(4) Indicators and targets
At the Group, regarding the human assets strategy under the Medium-Term Management Plan as described in the above “(2)Strategy,” it is difficult to describe at the consolidated Group level because, although specific efforts are being made by theCompany, along with the management of related indicator data, such efforts are not being made at all companies belonging to
the consolidated Group. For this reason, the targets and results for the following indicators are those of the submitting company,
which operates the main business in the consolidated Group.
Materialities
Respecting

Human

Rights and Diversity

Main measures
Promotionofdiversity

Results

Indicators (KPI)
andinclusion

2023

Percentage of managerial positions held
by women
Percentage of employees who aredisabled
Rateofuptakeofharassment

prevention training
Employee Engagement

Creating fulfilling and supportive

Rate of uptake of childcare leave (male)and Personnel Training

workplaces and achieving work-

Rate of uptake of childcare leavelife balance(female)Total actual work hours per employee

Development of global personnel

per year
Rate of uptake of annual paid leave per
employee
Rate of uptake of EGP among young
employees

Boosting Health andAdvancement

Ensuring Safety andimprovement programs and safety-

checkups

Hygieneand-hygiene activities

Number of occupational accidents

ofhealthRate of uptake of regular health(including commuting accidents)-18-

Annual target
2024

2030

15.4%

20%

30%

2.8%

2.6%

3.0%

100%

100%

100%

90.0%

100%

100%

100%

100%

100%

1,864h1,870h

1,635h

67.3%

65%

100%

26.3%

25%

30%

100%

100%

100%

10 results

0 results

0 results

<Response to Climate Change and TCFD>
The Group recognizes that responding to climate change is an especially vital issue for the sustainability of society. One keytask is to reduce emissions of CO2 and other greenhouse gases that are factors in climate change. The Group sets medium-to-longterm targets for reducing these emissions, as part of energy-saving activities under its environmental management system, andcarries out activities to achieve them. As climate disasters grow more intense and frequent, the world’s attitude to global warming
is changing, as the Paris Agreement and other landmark events testify. In view of these trends, the Group is strengthening its
efforts to achieve carbon neutrality by 2050.
In 2015 the Financial Stability Board (FSB), an international body based in Switzerland, established the Task Force on ClimateRelated Financial Disclosures (TCFD). In its final report, tabled in June 2017, the TCFD recommended that companies disclose
climate-related information that may affect their finances. The TCFD recommends disclosure of risks and opportunities presented
by climate change in terms of four elements: governance, strategy, risk management, and indices and targets. In February 2023,
the Group announced its endorsement of the recommendations of the TCFD.
(1) Governance
The Group recognizes activities to tackle climate change as a materiality. The Group’s Sustainability Committee, chairedby the president and representative director, drafts targets and action plans and manages progress. Activities to tackle climatechange as deliberated upon by the Sustainability Committee are reported to and supervised by the Board of Directors and someof their results are reflected in performance-based compensation for executive officers. In terms of its framework forenvironmental management, the Group strives for continuous improvement through the Environmental Management
Committee, which is chaired by an executive officer from the Business Management Division.
(2) Strategy
The Group recognizes that climate change is an important management issue affecting the economy and society. In
accordance with the framework of the TCFD recommendations, the Group is examining the risks and opportunities associatedwith climate change from a wide range of perspectives, to identify those risks and opportunities that the Group deems mostimportant. To analyze the potential financial impact on the Group of the risks and opportunities associated with climate change,
the Group has examined two scenarios: a scenario of 2°C of warming or less, in which regulatory and other responses toclimate change will proceed on their current course, and a scenario of 4°C of warming, in which natural disasters and the
spread of infectious diseases will become more serious. To gather the information necessary for our inquiries, we referred toresources such as the International Energy Agency (IEA)’s World Energy Outlook 2022 (WEO 2022): Net Zero by 2050 andthe same agency’s Energy Technology Perspectives 2020 (ETP 2020).
The Group’s understanding of the business environment in each scenario and the expected impact on its operations are
summarized below.

-19-

The 2°C-or-less scenario

The 4°C scenario<Recognition of environment><Recognition of environment>

Private-sector responses and government regulations

Serious efforts to grapple with climate change are notwill continue in a bid to restrain the rise of atmospherictaken. As a result, physical risks such as the spread of

temperatures. Whole societies will shift toward a low-

infectious diseases and the ferocity of natural disasters

carbon framework. The main effect on the operating

grow more severe, having the following impacts on theenvironment will be the realization of transitional risk,business environment.

as described below.
<Impact on society><Impact on society>

Governments and organizations all over the world

Regulations and policies on climate change have little

respond actively to climate change, introducing

effect and fail to deliver significant results in terms ofregulatory measures such as carbon taxes andoperations. The rise in atmospheric temperatures

restrictions on greenhouse-gas emissions. Companies

proceeds unrestrained. Large-scale natural disasters

unavoidably bear the cost of complying with these

become more frequent and more severe.

measures and higher prices passed on from suppliers.
<Changes in the Group’s business environment><Changes in the Group’s business environment>

As the shift to renewable energy progresses and new

In addition to direct damage from natural disasters, thecarbon-reduction

customerrise in global temperatures is expected to aggravate theawareness changes, driving up demand for products andspread of infectious diseases and change disease trends.

services that contribute to the formation of a low-carbon

As a result, the social responsibility of the Group, as asociety. The promotion of measures to reduce plastic use

developer and supplier of clinical diagnostics, isand recycle plastics can be expected, as represented by

anticipated to expand significantly.

technologies

emerge,regulations on plastics already in force in Europe. The
Group will have to respond, as products use a great dealof plastics.

-20-

Impact of Climate Change on the Group
Type

Risks
and
opportunities

Impact factors

Regulatory

Carbon taxes
and emission
tradingsystems

Expected
timeframe

Main impacts on the Eiken Group

Degree of impact
２℃
less thanMedium Intermediate
term

Reductions in sales due to inability to sell
Environmental
certain products, as a result of
regulations
environmental regulations on certain
related to
products, such as plastics and otherplastics
packaging and products

Short toIntermedium
mediateterm- Optimization of material suppliers andimport routes- Active disclosure through advancement ofsustainable management

Loweredevaluation in
the eyes of
stakeholders

Decrease in share price and corporate value
Mediumdue to loss of confidence of shareholders
and investors if environmental measures are
term
inadequate

Minor

－

Increased
severity andfrequency ofabnormalweather

Loss of sales opportunities from supplychain disruption caused by inundation andflood damage at factories and logisticalfacilities

Long
term

Intermediate

large

Increase inaverage
atmospherictemperature

Loss of sales opportunities from reduced
rate of operation at Company and supplierproduction facilities as well as disruption ofparts supplies resulting from the spread of
infectious diseases

Long
term

Minor

small

Risks

Pressure on earnings caused by increasedmaterial and transportation costs as carbon
taxes are passed on in the prices of these
items

Chronic－

Increases inprocurement
costs

Acute

－

- Evaluation of environmental impact of
products- Encouragement of product development andcapital investment geared to reduction ofenvironmental impact

FailedLoss of sales opportunities due to delays in
Mediuminvestments in development of technologies for lowInterto longnewenvironmental-impact products, focusing on
mediateterm
technologies plastic-related products

Reputational－- Continuous surveying and response totrends in environmental regulations- Product development in view of market andindustry trends

Market－- Advancement of energy-saving activities(introduction of energy-saving devices,conversion to LED lighting, advancement ofDX, etc.)- Expansion of introduction of renewableenergy (use of hydroelectric and solar power,
etc.)- Continuous monitoring of Scopes 1 and 2
and emission reduction efforts

TechnologicalTransitional risks

Additional costs from effects such as theintroduction of carbon taxes and emission
trading systems

Measures under consideration
４℃

Medium Interterm
mediatePhysical risks-21-- Strengthening of disaster-preparedness
measures at offices and suppliers- Preparation and continuous improvement ofbusiness continuity plansIncrease in sales opportunities indevelopment and provision of products with Medium
InterDevelopment low CO2 emissions in the production phase to long
mediateterm
and provision and energy-saving services, as needs forhighly sustainable products increaseof lowemission
products and Increase in sales opportunities arising from Medium
Interservices
supply of equipment with low CO2
to long
mediateemissions across the product life cycle
term
Products and services

Opportunities

Development
Sales increases and contributions to societyof solutions
from early response to changes in diseasefor climate
trends, such as spread of new infectious
adaptation anddiseases in tandem with climate change
resilience

Increase in sales opportunities fromdevelopment of quality-first products
unaffected by atmospheric temperature

Product
development
through R&D
and technical
Increase in sales opportunities frominnovation
provision of products that can run on
renewable energy

MarketResponse to
climatechange risk

Improvement in corporate value resulting
from improved ESG-related evaluations byinvestors, by vigorously advancing
measures to deal with climate change

Long
term

Intermediate-- Evaluation of environmental impact of
products- Advancement of product development andcapital investment focused on sustainability-- Evaluation of environmental impact of
products- Development of environmentally friendly
products (improvement of packaging andproduct design)- Continuous monitoring of trends inInterinfectious diseases and development andmediateprovision of diagnostics

MediumInterto long
mediateterm- Evaluation of environmental impact of
products
Inter- Development of products with reduced
mediateenvironmental impact in the preservation andstorage phases of the product cycle

Short toIntermedium
mediateterm

Inter- - Provision of movable products such as
mediate portable solar panels

Medium Interterm
mediate-- Active disclosure through advancement ofsustainable management* Definition of expected time Short-term: less than 3 years Medium-term: 3 years or more, less than 10 years Long-term:
10 years or more
* Definition of financial impact Small: less than 100 million yen Medium: 100 million yen or more, less than 2.5 billion yen
Large: 2.5 billion yen or more-22-

(3) Risk management
The Group annually assesses the impact of its business activities on the environment, including from the perspective ofcompliance obligations, as part of its environmental management system. In addition, a comprehensive risk assessment isconducted annually as part of risk management. Building upon the TCFD Recommendations, the Group assesses the risks andopportunities engendered by climate change through the deliberations of the Risk Management & Compliance Committee, theSustainability Committee and its subordinate organization, the Environmental Management Committee. The Group strives toreduce risks and create business opportunities in response to the risks and opportunities identified.
(4) Indices and targets
Aiming to achieve carbon neutrality by 2050, the Group has set a target to reduce CO2 emissions (Scope 1+2) by 56% by2030 (compared to fiscal 2021). Also, Scope 3 has been calculated since fiscal 2020, and we have set a target of 25% reduction
in fiscal 2030 (compared to fiscal 2022).

Reduction in CO2 emissions atbusiness locations(Scope 1 and Scope 2)

2,742t-CO2(62.5% reduction compared to
FY2021)

Target for
FY202419% reduction(Compared to
FY2021)

Reduction of CO2 emissions at
Supply Chain (Scope 3)(Under calculation)―

Results in FY2023

Target for
FY203056% reduction(Compared to
FY2021)25% reduction(Compared to
FY2022)

Scope 1: Direct emission from own fuel usage or usage in manufacturing processes of the Company
Scope 2: Indirect emissions from usage of electricity or heat purchased by the Company
Scope 3: Indirect emissions related to processes other than Scope 1 and Scope 2 (procurement of raw materials, productshipment, usage, and disposal, employee commuting, business trips, etc.)-23-

3. Operating Risks
In order to respond to the various risks that exist in the course of its business activities, the Eiken Group has establishedthe Eiken Group Risk Management Regulations, which systematically stipulate the Group's risk management. The Risk
Management and Compliance Committee supervises risk management activities. Risk management initiatives are reported
to the Board of Directors, and the Board of Directors supervises their effectiveness.
Among the matters related to the status of business and accounting described in the Annual Securities Report, thefollowing matters may have a significant impact on the decisions of investors.
In addition to the above, there are various other risks that may affect the Company's financial position and operating
results in the present and future, and the risks described here are not all risks of the Group. In addition, forward-looking
matters in the text are based on the judgment of the Group as of the end of the current consolidated fiscal year.

(1) Risks related to overseas operations
In order to achieve the “EIKEN ROAD MAP 2030”, it is necessary to promote global expansion. However, due to changes
in the economy and economic conditions of each country and region, the outbreak of a pandemic, geopolitical risks, etc.,
there is a possibility that the financial position and operating results of the company will be affected if there is a delay,suspension or discontinuation of the screening program for colorectal cancer screening with respect to fecal
immunochemical tests reagents, which is our main product, or if there is a delay in the regulatory approval of a new product.
In addition, EIKEN CHINA Co., Ltd., a consolidated subsidiary, is engaged in the development, manufacture, and salesof clinical diagnostics independently in China, as well as contract manufacturing of clinical diagnostics from the Company.
However, if contract production from the Company decreases due to changes in market conditions, or if the company's
business development does not progress as planned due to revisions in Chinese laws and regulations, or if the company
experiences a significant decline in real estate value, it may be difficult to recover the Company's investment.
In light of these risks, the Group's overseas sales divisions will strive to promptly collect and share risk information andeconomic trends in each country through its distributors will respond in a timely and appropriate manner.

(2) Risks related to new products and technologies
In order to achieve the “EIKEN ROAD MAP 2030”, we also need to develop new products, new technologies, and new
businesses. The Group strives to strengthen the planning and development of new products and technologies and to create
new businesses based on medical needs and medium- to long-term vision. However, if the recovery of R&D investment
becomes difficult due to the uncertainty of R&D (delays, interruptions or cancellations), or if it does not lead to sufficientresults due to the loss of commercialization opportunities or inconsistency with ever-changing market trends, or if there isa delay or interruption in the planning of new business, the medium- to long-term business plan may be affected and thefinancial position and operating results may be affected.
In light of these risks, the “EIKEN ROAD MAP 2030” and the Medium-Term Management Plan formulate businessstrategies in response to changes in the business environment, strategically promote new products and technologies, set
standards for investment recovery, and evaluate and manage progress at the Executive Committee, Board of Directors, etc.
(3) Risks related to medical systems and pharmaceutical regulations
The Group sells its products in accordance with the regulatory regulations of each country and region, but if medical
costs are controlled or regulatory regulations are tightened due to trends in healthcare system reform in each country,
product prices, product usage, and regulatory applications for new products may be affected, which may affect the Group's
financial position and operating results.
In light of these risks, the Group's regulatory affairs department will strive to quickly grasp trends in healthcare systems
and pharmaceutical regulations in each country and respond in a timely and appropriate manner.

-24-

(4) Risks related to product quality
The Group is engaged in product quality assurance based on the quality management system (ISO13485 certification,
MDSAP certification). However, in the unlikely event that a product quality problem occurs and the supply of the productcannot be maintained, the financial position and operating results may be affected.
In light of these risks, the Group is working to stabilize quality by strengthening its production technology capabilities,
appropriately operate its quality management system, and strengthen quality assurance by investigating and analyzing
product quality evaluations in the market.

(5) Risks related to stable supply of products
In the event that the factories and facilities of the Group or its suppliers suffer enormous damage due to natural disasters
such as large-scale earthquakes, storms and floods, or serious accidents such as fires, or if operations are suspended for along period of time due to the outbreak of a pandemic or geopolitical risks, we may not be able to maintain the supply of
products, which may affect our financial position and operating results.
In light of these risks, the Group strives to secure safe stock of products, secure inventory of important raw materials,
and avoid risks by purchasing from multiple companies, and has formulated a Business Continuity Plan (BCP) tocontinuously improve its ability to respond to the situation so that it can maintain supply. In addition, we have obtained
the National Resilience Contribution Organization Certification (Resilience Certification) promoted by the National
Resilience Promotion Office of the Cabinet Secretariat.

(6) Risks related to IT systems
The Group has introduced various IT systems to improve operational efficiency and is working to improve businessprocesses. Therefore, if a long-term response is required due to a system failure due to a disaster, a cyber attack, or acomputer virus infection that hinders business operations, or information leakage outside the company, financial positionand operating results may be affected.
In light of these risks, the Group has established appropriate information security measures and conducts education andtraining aimed at responding to targeted attack e-mails and improving IT literacy.

(7) Risks related to sharp rises in raw material prices and transportation costs
The prices of raw materials used in the Group's products fluctuate depending on the occurrence of natural disasters andpandemics, market prices, fuel costs, exchange rates, and other factors associated with economic conditions. In the eventthat raw material prices or the transportation cost due to these causes rises, the cost of the product may rise, which may
affect our financial position and operating results.
In light of these risks, the Group is implementing measures such as purchasing major raw materials from multiple
companies, collecting information on market trends in raw materials, securing appropriate inventory, and reducing
manufacturing costs by continuously improving production efficiency.
(8) Risks related to valuation of inventories
In the consolidated balance sheet for the fiscal year ending March 2024, the Group recorded 8,098 million yen in
inventories, representing 13.1% of total assets. In the event of a significant decline in the commodity market due to asudden deterioration in the supply-demand balance, etc., the write-down of inventories may affect the financial positionand operating results.
In light of these risks, the Group will closely monitor the status of inventory and appropriately manage inventory withsafety stock in mind to reduce the risk of holding excess inventory.

-25-

4. Management Analysis of Consolidated Financial Position, Consolidated Business Performance and Cash Flows(1) Summary of consolidated business performance, etc.
The summary of the consolidated financial position, consolidated business performance, and cash flows (“business performance,etc.”) of the Group (the Company and its consolidated subsidiaries, hereinafter the same shall apply) for the consolidated fiscal year
under review are as follows.
(i) Status of consolidated financial position and consolidated operating results.
During the consolidated fiscal year under review, the Japanese economy progressed toward normalized economic activities andgradually recovered owing to the reclassification of COVID-19 to a Class 5 infectious disease under the Act on the Prevention of
Infectious Diseases and Medical Care for Patients with Infectious Diseases. Meanwhile, overseas economies remained unstable due
to downside risks mainly caused by surging global resource prices and the impact of monetary tightening against a backdrop of
geopolitical uncertainty, including the protracted situation in Ukraine as well as growing tensions in the Middle East.
The business environment became increasingly severe in the clinical diagnostics industry due to measures to cap medical
expenses and rising costs such as for logistics and raw material procurement, etc., on account of yen depreciation and high crude oil
prices. Corporations are being forced to focus on greater cost competitiveness and to actively expand overseas.
In the context of this business environment, the Eiken Group is implementing key measures focused on the three key businessfields of “Contribution to cancer prevention and treatment,” “Contribution to the eradication and control of infectious diseases,” and“Provision of products and services useful for health care” and striving to achieve sustainable growth and steadily enhance
profitability for the Group as a whole, in accordance with the Medium-term Management Plan established based on the Group’s
management framework “EIKEN ROAD MAP 2030”
In addition, as a Group with a mission to protect the health of people worldwide, the Eiken Group is addressing issues not onlyin “Medical” but also in the “Environment,” “Society,” and “Governance.” Through this, we strive to further enhance our corporate
value and achieve a sustainable society.
The net sales for the consolidated fiscal year under review declined to 40,052 million yen (down 7.4% year-on-year) due tosales of COVID-19 genetic testing reagents using the LAMP method decreasing significantly following limited demand for genetic
testing in response to the reclassification of COVID-19 under the Act on the Prevention of Infectious Diseases and Medical Care forPatients with Infectious Diseases.
For net sales by product class and type, sales of microbiological testing reagents increased to 4,312 million yen (up 9.5% yearon-year) due to a substantial recovery of products related to infectious diseases other than COVID-19, particularly rapid diagnosis
kits and drug sensitivity testing reagents. As for urinalysis reagents, sales were 4,401 million yen (up 6.2% year-on-year), with thedomestic hospital market and the medical examination market having recovered to pre-COVID-19 pandemic levels. Sales for
immunological and serological reagents were 21,710 million yen (up 4.8% year-on-year) due to fecal immunochemical clinicaldiagnostics recovering to pre-COVID-19 pandemic levels in the domestic market, together with significantly increased sales inoverseas markets. Sales for clinical chemistry reagents were 575 million yen (down 2.5% year-on-year). Sales for the equipment
and culture medium for food and environment related category amounted to 1,961 million yen (down 9.4% year-on-year). Sales inother category (medical devices, genetic-related products, etc.) fell to 7,090 million yen (down 39.5% year-on-year) due to asignificant decrease in sales for COVID-19 detection reagents.
Overseas sales were 10,115 million yen (up 15.0% year-on-year) as sales for fecal immunochemical clinical diagnostics,
urinalysis reagents, and Mycobacterium tuberculosis complex detection reagent kits for Nigeria increased significantly.
Regarding profit, operating profit was 3,377 million yen (down 54.7% year-on-year) due to decreases in sales of high-profit
COVID-19 detection reagent products and income from patent rights for the LAMP method. Ordinary profit was 3,568 million yen(down 52.8% year-on-year) while profit attributable to owners of parent was 2,634 million yen (down 54.1% year-on-year).
The financial position at the end of the consolidated fiscal year under review was as follows.
When compared to the end of the previous consolidated fiscal year, total assets decreased by 4,623 million yen, liabilities
decreased by 1,059 million yen, and net assets decreased by 3,564 million yen.
Major increases and decreases in the category of assets include a decrease of 2,009 million yen in cash and deposits and anincrease of 1,359 million yen in notes and accounts receivable - trade, and contract assets. In addition, long-term time deposits
declined by 3,000 million yen. In the category of liabilities, electronically recorded obligations - operating decreased by 174 million
yen, and income taxes payable decreased by 827 million yen. In the category of net assets, despite having recorded profit attributableto owners of parent, shareholders’ equity decreased by 3,838 million yen due to the payment of dividends and purchase of Treasury
shares. In addition, due to the cancellation of Treasury shares, capital surplus decreased by 242 million yen, retained earnings-26-

decreased by 1,771 million yen, and treasury shares decreased by 2,013 million yen.
As a result of the above, the equity ratio decreased to 74.0% from 74.2% at the end of the previous consolidated fiscal year.
(ii) Status of cash flows
Cash and cash equivalents for the consolidated fiscal year under review (hereinafter referred to as “net cash”) decreased by
5,098 million yen compared to the end of the previous consolidated fiscal year to 10,966 million yen on March 31, 2024.
The following is a summary of cash flows and related causes for the consolidated fiscal year under review.
Cash flows from operating activities
Net cash provided by operating activities was 3,806 million yen (compared to the net cash proceed of 7,575 million yen
in the previous consolidated fiscal year). This was mainly due to a 1,355 million yen expenditure due to increased tradereceivables, a 322 million yen proceed caused by a decrease in inventories, a 212 million yen expenditure caused by adecrease in trade payables, and 3,503 million yen in profit before income taxes.
Depreciation totaled 2,326 million yen.
Cash flows from investing activities
Net cash used in investing activities was an expenditure of 2,216 million yen (compared to the net cash expenditure of
316 million yen in the previous consolidated fiscal year). This was mainly due to 1,976 million yen in purchase of property,
plant and equipment, 2,341 million yen in payments into time deposits, and 2,279 million yen in proceeds from withdrawal oftime deposits.
Cash flows from financing activities
Net cash used in financing activities was 6,694 million yen (compared to the net cash expenditure of 2,095 million yen in
the previous consolidated fiscal year). This was mainly due to a 4,707 million yen expenditure due to purchase of Treasury
shares and dividends paid of 1,927 million yen.
(iii) Production, orders received, and sales
Production, orders received, and sales are described by breaking down sales by product class and type since the Group’sbusiness is a single segment in the clinical diagnostics business.

-27-

(a) Production performance
Production performance for the consolidated fiscal year under review described by product class and type is as follows.
(Millions of yen)
Name of product class and type

For the fiscal year ended
March 31, 2024

Change from the previous
corresponding period (%)

Microbiological testing reagents

3,999

111.9

Urinalysis reagents

4,865

113.2

Immunological and serological reagents

7,642

98.8

Equipment and culture medium for foodand environment related category

128

98.5

1,552

25.0

18,187

82.8

Other category
Total(Note) Amounts displayed are sales prices.
(b) Purchases of merchandise

Purchases of merchandise for the consolidated fiscal year under review described by product class and type are as follows.
(Millions of yen)
Name of product class and type

For the fiscal year ended
March 31, 2024

Change from the previous
corresponding period (%)

Microbiological testing reagents

349

97.3

Urinalysis reagents

18

85.1

9,228

101.6

297

88.5

Equipment and culture medium for foodand environment related category

1,493

81.0

Other category

3,281

100.9

14,66998.5

Immunological and serological reagents
Clinical chemistry reagents

Total(c) Orders received
There are no applicable items because the Group conducts production on a prospective basis.
.

-28-

(d) Sales performance
Sales performance for the consolidated fiscal year under review described by product class and type is as follows.
(Millions of yen)
Name of product class and type

For the fiscal year ended
March 31, 2024

Change from the previous
corresponding period (%)

Microbiological testing reagents

4,312

109.5

Urinalysis reagents

4,401

106.2

Immunological and serological reagents

21,710

104.8

575

97.5

1,961

90.6

7,090

60.5

40,052

92.6

Clinical chemistry reagents
Equipment and culture medium for foodand environment related category
Other category
Total(Note)

Sales performance by major customer and the ratio of the sales performance to total sales performance for the two mostrecent consolidated fiscal years are as follows.

Customer

For the fiscal year ended
March 31, 2023
Amount(Millions of yen)

For the fiscal year ended
March 31, 2024

Ratio (%)

Amount(Millions of yen)

Ratio (%)

SUZUKEN CO., LTD.

5,475

12.7

4,891

12.2

Alfresa Corporation

5,254

12.1

4,476

11.2

TOHO
PHARMACEUTICAL CO.,
LTD.

4,615

10.7

4,328

10.8

-29-

(2) Analysis and discussion of the status of business performance, etc. from management’s perspective
The assessment, analysis, and discussion of the Group’s business performance, etc. from management’s perspective is as follows.
Forward-looking statements in this document are based on the judgment of the Group as of the end of the consolidated fiscal year
under review, and include forecast information that involves risks, uncertainties, and assumptions about the future. Due to factors
such as those described in “3. Operating Risks” and other factors, the Group’s actual performance may differ significantly fromthose projected based on the forecast information.
(i) Significant accounting policies and estimates
The Company’s consolidated financial statements have been prepared based on accounting principles and practices generally
accepted in Japan.
In preparing the consolidated financial statements, the Company’s management is required to make estimates and assumptions
that affect the reported values of assets and liabilities and the disclosure of contingent assets and liabilities at the balance sheet
date and the reported values of revenues and expenses during the reporting period. Management continually evaluates its
estimates and judgments regarding credit losses, retirement allowance, investments, contingencies and litigation. Management
makes estimates and judgments based on a variety of factors that it believes are reasonable in light of past performance andcircumstances, and the results form the basis for making judgments about the carrying value of assets and liabilities and thereported figures for revenues and expenses that are difficult to determine otherwise. Actual results may differ from these estimates
due to the uncertainties inherent in estimates.
We believe that the following critical accounting policies in particular have a significant impact on our critical judgments andestimates used in the preparation of our consolidated financial statements.
(a) Allowance for doubtful accounts
The Group records an allowance for doubtful accounts for the estimated amount of losses to be incurred when customers failto pay. If a customer’s financial condition deteriorates and its ability to pay declines, the Group may be required to make additional
allowances.
(b) Retirement benefit expenses
The Company calculates employee retirement benefit expenses and obligations based on assumptions established in actuarial
calculations. These assumptions include discount rates, future salary levels, retirement rates, mortality rates calculated based onrecent statistical data, and rates of return on pension assets. For the Company’s pension plans, the discount rate is calculated using
the market yield of Japanese government bonds as a reference value over a certain number of years within the average remaining
service period of enrolled employees. The expected rate of return is calculated based on the weighted average of the expected
rates of return for each type of asset in which the pension assets are invested. If actual results differ from the assumptions or if
the assumptions change, the effects are accumulated and are recognized regularly in future periods, generally affecting theexpenses recognized and liabilities recorded in future periods. In addition, a decrease in the discount rate and losses on pension
asset management could have an adverse effect on the Group’s retirement benefit expenses.
(c) Impairment of investments
The Group holds shares in certain customers to maintain business relationships. These include shares of publicly traded
companies, whose prices are highly volatile, and shares of privately held companies, whose share prices are difficult to determine.
In addition, the Group holds investments in affiliated companies. The Group records an impairment loss on an investment when
it determines that the value of the investment has declined significantly and is unlikely to recover. If future deterioration in market
conditions or poor performance of the investee results in losses not reflected in the current book value or inability to recover thebook value of the investment, the Group may be required to record a loss on valuation.
(d) Valuation of inventories
Valuation of inventories is as described in “Ⅴ. Financial Information, 1. Consolidated Financial Statements, etc., (1) Notes toConsolidated Financial Statements (Significant accounting estimates).”-30-

(2) Recognition, analysis, and consideration of the status of business results, etc. for the current consolidated fiscal year
The Group's operating results for the fiscal year under review are as follows.
Net sales for the fiscal year under review were 40,052 million yen (down 7.4% year-on-year) due to a significant decline insales of COVID-19 genetic testing reagents using the LAMP method due to limited demand for genetic testing due to thetransition of the classification of COVID-19 under the Infectious Diseases Act.
Cost of goods sold was 23,328 million yen, and the cost of goods sold ratio was 58.2%, an increase of 5.6 percentage points
from the previous consolidated fiscal year.
Gross profit decreased by 3,783 million yen from the previous consolidated fiscal year to 16,723 million yen. Selling, generaland administrative expenses increased by 295 million yen from the previous consolidated fiscal year to 13,345 million yen.
Operating profit decreased by 4,079 million yen from the previous consolidated fiscal year to 3,377 million yen. The operating
profit margin was 8.4%, down 8.8 percentage points from the previous fiscal year.
Non-operating income was 284 million yen, an increase of 130 million yen from the previous consolidated fiscal year.
Non-operating expenses was 93 million yen, an increase of 51 million yen from the previous consolidated fiscal year.
Ordinary profit was 3,568 million yen due to non-operating income of 191 million yen, a decrease of 3,999 million yen fromthe previous consolidated fiscal year. The ordinary profit margin decreased by 8.6 percentage points from the previous fiscal year
to 8.9%.
Extraordinary income was 1 million yen, a decrease of 79 million yen from the previous consolidated fiscal year. Extraordinary
losses was 66 million yen, an increase of 8 million yen from the previous consolidated fiscal year.
Profit before income taxes was 3,503 million yen, reflecting a net loss of 65 million yen due to extraordinary income and losses.
The burden of income taxes(current) on profit before income taxes was 24.8% in the current fiscal year compared to 24.4% in
the previous consolidated fiscal year, an increase of 0.4 percentage points.
Profit attributable to owners of parent decreased by 3,101 million yen from the previous fiscal year to 2,634 million yen,resulting in a profit margin of 6.7 percentage points to 6.6%. The Group had set a target of net sales of 42,000 million yen,operating profit of 5,380 million yen, and ROE of 8.4% in the fiscal year ending March 2024 as objective indicators fordetermining the achievement status of management policies, strategies, and management targets, but net sales of 40,052 million
yen, operating profit of 3,377 million yen, and ROE of 5.6% fell short of the target values.
(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

Indicators
TargetResults

TargetResults

Consolidated net sales

43,60043,27142,00040,052

Consolidated operating profit

7,470

7,457

5,380

3,377

ROE (%)

12.3

12.1

8.4

5.6

-31-

The financial resources of the Group's capital and the liquidity of funds are as follows.
(a) Cash flow
The analysis of cash flows for the fiscal year under review is described in "(1) Summary of consolidated business performance,
etc. and (ii)Status of cash flows."(b) Financial Policy
The Group’s basic financial policy is to strengthen its financial position by improving capital efficiency, and this policy is
being continuously implemented.
The Group works in unison to raise and invest funds, making maximum use of the Company’s creditworthiness. Working
capital and capital investment are basically financed from cash on hand (profits and other internal reserves). The Company has
concluded overdraft agreements and commitment line agreements totaling 4,600 million yen with financial institutions for theefficient procurement of working capital. Surplus funds are invested in safe and highly liquid financial instruments. The Groupis considering efficient and strategic fund management in the future for its high cash position.
The Group believes that its sound financial position, ability to generate cash flow from operating activities, accounts receivable
trust (receivables securitization) and loan commitment agreements will enable it to raise the working capital and capital
investment funds needed in the future to sustain its growth. However, long-term financing for capital investment, etc. is procured
through long-term borrowings from financial institutions, corporate bonds, or a combination of both.
The Group regards the return of profits to shareholders as one of its highest management priorities and has a basic policy of
implementing a stable dividend policy while taking into consideration the need to strengthen its financial standing and enhanceinternal reserves necessary for aggressive business development, and of paying dividends from surplus twice a year, an interim
dividend and a year-end dividend. The Board of Directors considers the shareholder return policy as one of the policies that
contribute to enhancing the corporate value of the Company.

5. Material Contracts, etc.
Business alliance agreement
Name ofcontracting
company
OtsukaPharmaceuticalCo., Ltd.

Contract
date

Description

Expiration date

A business alliance agreement including capital
participation in the Company for the purpose of mutual use
Business alliance agreementof sales, market development, R&D, and technology to
September 7, 5 years
strengthen competitiveness and benefit both companies in2006* Renewed every year after thethe clinical diagnostics market, as well as to deepen theend of the term
relationship of trust and cooperation between the twocompanies and to further facilitate the business alliance.

-32-

6 Research and Development Activities
As the status of COVID-19 infection under the "Act on Prevention of Infectious Diseases and Medical Care for Patients with
Infectious Diseases" has become a Category 5 infectious disease, and the environment surrounding us is returning to its previous
situation, we have been promoting product development by strengthening and enhancing our existing large-scale product groups andimproving our R&D capabilities under our management philosophy of "Protect the health of the public through health care services.
"
In June 2023, we added “Assists in establishing Crohn's disease " to the insurance coverage of OC-Calprotectin 'Eiken', which has
been used to " Assists in the diagnosis of inflammatory bowel disease" and "Assists in establishing clinical condition of ulcerative
colitis". In addition, in February 2024, we launched a new stool buffer solution in Japan that was developed with the aim of greatly
improving the stability of the collected specimens and enabling mail-in screening. In the area of immunochromatography reagents, inJanuary 2024, we launched "Immunocatch-Strep A" and "Immunocatch-Adeno," which share the sample extracts for group A β
hemolytic streptococcus and adenovirus tests, which had to be collected and processed separately. As a contribution to measuresagainst antimicrobial resistance (AMR), we launched the KB disc of Cefiderocol in March 2024, and the veterinary susceptibility discof thiamphenicol in April 2024 for the purpose of the proper use of veterinary drugs from the perspective of One Health. In addition,
in January 2024, we launched the "Seed Tube II 'Eiken'," a container for storing and transporting specimens for the purpose ofanaerobic bacteria testing.
In addition, as part of the development of the cancer business, which is one of the focus areas of the management plan “EIKENROAD MAP 2030” , we have registered a part of the Nogi Plant as a health laboratory (name: “EIKEN Clinical Laboratory”) in orderto launch a commissioned inspection business. The purpose of this project is to promote our own cancer genetic testing, and we plan
to start with a commissioned inspection of companion diagnostics using the "Mutation Investigator using the Next-era Sequencer"(MINtS) for lung cancer, which is currently applying for manufacturing and marketing approval.
Based on a business alliance agreement with Otsuka Pharmaceutical Co., Ltd., we are continuing to consider joint development
focusing on areas where both companies can complement each other.
Total Research and Development expenses for the fiscal year under review were 3,939 million yen.

-33-

Ⅲ. Information about Facilities
1. Overview of Capital Expenditures
Total capital expenditure for the fiscal year under review was 1,812 million yen.
The main capital expenditures were 211 million yen for the urinalysis reagent manufacturing facility and 123 million yen for the
new Nogi production building.

2 Major Facilities
The Group's main facilities are as follows.
(1) Reporting company(As of March 31, 2024)
Book value
Office name
(Location)

Nogi Division(Nogi-machi,
Tochigi)

Nasu Division(Otawara-shi,
Tochigi)

Number ofClassification by Description of Buildings and Machinery,Land
employees
LeaseassetsTotalequipment
Other
product typefacilities
structures(Millions ofand vehicles (Millions of (Millions of(Millions of (persons)(Millions ofyen)(Millions of
yen)
yen)
yen)
(Area m2)yen)
yen)
Manufacture,
distribution
996
284
Generaland research
9,828
1,087
57
607
12,578reagents(82,583)(231)ofgeneralreagents
Manufacture
and research
Immunologicofal andimmunologic
serological
931
70
al
and
reagents
1,837
357
122
3,249
－
serological(74,486)(54)
Genetic
reagents andtesting
genetic
reagents
testing
reagents(Notes) 1. “Other” under book value is the total for tools, furniture and fixtures, and does not include construction in progress.
2. The number of employees in parentheses ( ) indicates the number of temporary employees.

-34-

(2) Overseas Subsidiaries(As of March 31, 2024)
Book value
Company
nameLocation

EIKEN
CHINA
CO., LTD.

Shanghai,
China

Classification
Description of Buildings and Machinery,by productequipment and Lease assets
facilities
structures
type
vehicles(Millions of(Millions of(Millions of
yen)
yen)
yen)
Manufactur
Urinalysis
eofreagents
urinalysis
Immunologi reagents,
cal andimmunologi
serologicalcalandreagents
serologicalEquipment
reagents,
and culture
equipment
297
680
medium forand culture
food andmedium forenvironmenfood
andt relatedenvironmen
categorytrelatedGenetic
category,
testing
and genetic
reagents
testing
reagents

Other(Millions of
yen)

10

Number of
Employees
Total(Millions of (persons)
yen)

378

45
(4)

(Notes) 1. “Other” under book value is the total for tools, furniture and fixtures, and does not include construction in progress.
2. The number of employees in parentheses ( ) indicates the number of temporary employees.

3 Planned Addition, Retirement, and Other Changes of Facilities(1) Significant addition of facilities
Planned capital expenditures
Company
nameOffice nameLocation Segment name

The Company
Nogi Division

Nogimachi,
Tochigi

Clinicaldiagnostics
business

Urinalysis reagent
production facility

636

433

The Company
Nogi Division

Nogimachi,
Tochigi

Clinicaldiagnostics
business

New Production
Building

6,533

128

Description offacilities

Total amount(Millions ofyen)

Planned start and end date

Method of fundAmountprocurement
already paid
(Millions of
yen)

Start

End

Own funds

August 2022

September
2024

50%
increase inproduction
capacityOwn funds

May 2024

June 2025

Note(Note) The capacity to increase after completion is not included because it is difficult to make a reasonable calculation.

(2) Significant retirement of facilities
Not applicable.

-35-

Increasedcapacity
after
completion

IV. Information about Reporting Company
1. Company’s Shares, etc.
(1) Total number of shares, etc.
(1) Total number of shares

Class

Total number of shares that can be issued (shares)

Common Shares

123,900,000

Total

123,900,000(2) Issued shares

Number of issued
Class

shares as of the end of
the current fiscal year
(March 31, 2024)

Common Shares

40,041,438

Total

40,041,438

Name of financial
instruments exchange
Number of issued
on which securities areshares as of thelisted or authorized
Description
financial instruments
submission datebusiness association to(June 26, 2024)
which securities areregistered
Tokyo Stock Exchange The number of shares per unit is38,541,438
Prime Market
100 shares.
38,541,438－－(Note) At the Board of Directors meeting held on April 24, 2024, the Board of Directors resolved to cancel treasury shares inaccordance with the provisions of Article 178 of the Companies Act, and on April 26, 2024, 1,500,000 shares of Treasury
share were canceled. As a result, the total number of shares outstanding decreased by 1,500,000 shares to 38,541,438 shares.

-36-

(2) Share Acquisition Rights.
➀Stock options
Share acquisition rights under the Companies Act are as shown below. No new share acquisition rights have been issued because
the share-based compensation stock option plan has been terminated following the resolution at the Compensation Committee
meeting held on June 27, 2023 to introduce a restricted share compensation plan.
Date of resolution

June 21, 2007

Classification and number of grantees

Directors: 4 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 12

Number of share acquisition rights*

40 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 4,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 10, 2007 to July 9, 2027

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 9, 2026, theshare acquisition rights may be exercised from July 10, 2026 to July 9, 2027.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-37-

*

Details are as of the end of the current fiscal year (March 31, 2024). The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-38-

Date of resolution

June 12, 2008

Classification and number of grantees

Directors: 4 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 13

Number of share acquisition rights*

40 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 4,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 9, 2008 to July 8, 2028

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 8, 2027, theshare acquisition rights may be exercised from July 9, 2027 to July 8, 2028.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-39-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-40-

Date of resolution

May 19, 2009Classification and number of grantees

Directors: 4 (2 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 12

Number of share acquisition rights*

80 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 8,000(Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 10, 2009 to July 9, 2029

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 9, 2028, theshare acquisition rights may be exercised from July 10, 2028 to July 9, 2029.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
-

-41-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-42-

Date of resolution

May 18, 2010

Classification and number of grantees

Directors: 3 (2 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 12

Number of share acquisition rights *80 (Note 2, 5)

Type, description and number of shares tobe issued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 8,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 9, 2010 to July 8, 2030

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 8, 2029, theshare acquisition rights may be exercised from July 9, 2029 to July 8, 2030.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
-

-43-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-44-

Date of resolution

May 18, 2011

Classification and number of grantees

Directors: 4 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 12

Number of share acquisition rights *90 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 9,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 9, 2011 to July 8, 2031

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 8, 2030, theshare acquisition rights may be exercised from July 9, 2030 to July 8, 2031.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
-

-45-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-46-

Date of resolution

May 17, 2012

Classification and number of grantees

Directors: 4 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 13

Number of share acquisition rights *130 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares 13,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 10, 2012 to July 9, 2032

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 9, 2031, theshare acquisition rights may be exercised from July 10, 2031 to July 9, 2032.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-47-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-48-

Date of resolution

May 16, 2013

Classification and number of grantees

Directors: 4 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 13

Number of share acquisition rights *130 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares 13,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 10, 2013 to July 9, 2033

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 9, 2032, theshare acquisition rights may be exercised from July 10, 2032 to July 9, 2033.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-49-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-50-

Date of resolution

May 16, 2014

Classification and number of grantees

Directors: 4 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 12

Number of share acquisition rights *240 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 24,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 9, 2014 to July 8, 2034

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 8, 2033, theshare acquisition rights may be exercised from July 9, 2033 to July 8, 2034.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-51-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-52-

Date of resolution

May 18, 2015

Classification and number of grantees

Directors: 3 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 13

Number of share acquisition rights *280 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 28,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 10, 2015 to July 9, 2035

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 9, 2034, theshare acquisition rights may be exercised from July 10, 2034 to July 9, 2035.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
-

-53-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-54-

Date of resolution

May 18, 2016

Classification and number of grantees

Directors: 2 (1 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 12

Number of share acquisition rights *210 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 21,000 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 9, 2016 to July 8, 2036

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 8, 2035, theshare acquisition rights may be exercised from July 9, 2035 to July 8, 2036.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-55-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-56-

Date of resolution

June 14, 2017Classification and number of grantees

Directors: 2 (1 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 13

Number of share acquisition rights *254 (Note 2, 5)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 25,400 (Note 3,5)
1 (Note 4)

Exercise period of share acquisition rights*

From July 11, 2017 to July 10, 2037

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 10, 2036, theshare acquisition rights may be exercised from July 11, 2036 to July 10,2037.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a share

Conditions for exercising share acquisitionrights*exchange agreement in which the Company is to become a wholly owned
subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-57-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-58-

Date of resolution

June 14, 2018

Classification and number of grantees

Directors: 3 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 11

Number of share acquisition rights *201 (Note 2)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 20,100 (Note 3)
1 (Note 4)

Exercise period of share acquisition rights*

From July 13, 2018 to July 12, 2038

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 12, 2037, theshare acquisition rights may be exercised from July 13, 2037 to July 12,2038.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a share

Conditions for exercising share acquisitionrights*exchange agreement in which the Company is to become a wholly owned
subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-59-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-60-

Date of resolution

June 18, 2019

Classification and number of grantees

Directors: 3 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 11

Number of share acquisition rights *204 (Note 2)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 20,400 (Note 3)
1 (Note 4)

Exercise period of share acquisition rights*

From July 12, 2019 to July 11, 2039

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 11, 2038, theshare acquisition rights may be exercised from July 12, 2038 to July 11,2039.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a share

Conditions for exercising share acquisitionrights*exchange agreement in which the Company is to become a wholly owned
subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-61-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-62-

Date of resolution

June 16, 2020

Classification and number of grantees

Directors: 3 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 9

Number of share acquisition rights *233 (Note 2)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 23,300 (Note 3)
1 (Note 4)

Exercise period of share acquisition rights*

From July 10, 2020 to July 9, 2040

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 9, 2039, theshare acquisition rights may be exercised from July 10, 2039 to July 9, 2040.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
-

-63-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-64-

Date of resolution

June 16, 2021

Classification and number of grantees

Directors: 3 (3 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 10

Number of share acquisition rights *386 (Note 2)

Type, description and number of shares to beissued upon exercise of share acquisitionrights*Paid-in amount upon exercise of shareacquisition rights (Yen)*

Common shares: 38,600 (Note 3)
1 (Note 4)

Exercise period of share acquisition rights*

From July 9, 2021 to July 8, 2041

Issue price and amount to be incorporated
into capital upon exercise of shareacquisition rights (Yen)*

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 8, 2040, theshare acquisition rights may be exercised from July 9, 2040 to July 8, 2041.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising share acquisitionrights*subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters related to the transfer of shareacquisition rights*
Matters related to the delivery of shareacquisition rights in connection withreorganization*acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-65-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-66-

Date of resolution

June 17, 2022

Category and number of recipients (persons)

Directors: 3 (2 of whom concurrently serve as Executive Officers) (Note 1)
Executive Officers: 10

Number of Stock Acquisition Rights (Units)*
Type, content and number ofshares subject to stock acquisition rights *Amount paid at the time of exercise of stockacquisition rights (yen)※Period for exercising stock acquisition rights*
In the case of issuing shares through theexercise of stock acquisition rights, the issuance price of sharesand the amount of capital incorporation (yen)*381 (Note 2)
Common shares: 38,100 (Note 3)
1 (Note 4)
From July 8, 2022 to July 7, 2042

Issue price: 1
Amount to be incorporated into capital: 1(1) Holders of share acquisition rights may exercise their share acquisitionrights only after one year has elapsed since assuming office as Director(excluding Outside Directors) or Executive Officer (excluding retirement
due to death) and until 10 days have elapsed from the day following the dayon which they retire from all positions as Director and Executive Officer.
(2) Notwithstanding (1) above, if the holder of the share acquisition rights has
not reached the rights exercise commencement date by July 7, 2041, theshare acquisition rights may be exercised from July 8, 2041 to July 7, 2042.
(3) Notwithstanding (1) above, if a proposal for approval of a merger agreementin which the Company is to be dissolved, a proposal for approval of a shareexchange agreement in which the Company is to become a wholly owned

Conditions for exercising stock acquisitionrights *subsidiary, or a proposal for approval of a share transfer plan is approved at
a General Meeting of Shareholders (or when a resolution of the Board of
Directors is passed if a resolution of the General Meeting of Shareholders
is not required), the share acquisition rights may be exercised only during
the period from the day following the date of such approval until 15 days
have passed.
(4) Share acquisition rights may not be exercised in part.
(5) If a share acquisition right holder dies, his or her heir may exercise the share

Matters concerning the transfer of stockacquisition rights *Matters concerning the issuance of stockacquisition rights in connection with thereorganization
Act *acquisition rights.
(6) Other conditions shall be set forth in the Share Acquisition Rights Allotment
Agreement to be entered into between the Company and the shareacquisition rights holders in accordance with a resolution of the Board of
Directors regarding the issuing of share acquisition rights and a decision by
the Representative Executive Officer.
Approval from the Board of Directors is required for the transfer of shareacquisition rights.
－

-67-

*

Details are as of the end of the current fiscal year (March 31, 2024).The details pertaining to the end of the month prior to thedate of filing have been omitted, since there have been no changes to the details to be included from those as of the end of thecurrent fiscal year as of the end of the month prior to the date of filing (May 31, 2024).

(Notes) 1. The number of Directors excludes Outside Directors.
2. The number of shares to be issued upon exercising each share acquisition right shall be 100 shares.
3. If the Company conducts a share split (including allotment of shares without contribution) or a share consolidation, thenumber of shares to be issued upon exercise of unexercised share acquisition rights shall be adjusted in accordance withthe following formula, and any shares less than one share resulting from the adjustment shall be rounded down.
Number of shares
after adjustment=

Number of shares
before adjustment

×

Ratio of share split
or share consolidation

In addition, if unavoidable circumstances occur that necessitate adjustment of the number of allotted shares, such as theCompany conducting a merger or company split, the number of allotted shares shall be adjusted to a reasonable extent,
taking into account factors such as the conditions of the merger or company split
4. The amount to be paid in upon exercise of the share acquisition rights shall be the amount obtained by multiplying theprice per share of common shares of the Company that can be delivered upon exercise of the share acquisition rights, by
the number of shares to be issued per share acquisition right, where 1 yen is the amount to be paid in per share.
5. The Company conducted a two-for-one share split of its common shares with an effective date of April 1, 2018 by
resolution of the Board of Directors meeting held on February 15, 2018. As a result, the “Number of share acquisitionrights” and “Type, description and number of shares to be issued upon exercise of share acquisition rights” were adjusted.

-68-➁ Rights plans
Not applicable.
③ Other share acquisition rights
Not applicable.
(3) Exercises of bonds with share acquisition rights containing a clause for exercise price amendment
Not applicable.
(4) Changes in total number of issued shares, share capital and others
Changes in total Balance of total
Date

number of

number ofissued shares(Shares)issued shares(Shares)

Changes inshare capital(Millions ofyen)

Balance of share Changes in legal Balance of legal
capital(Millions ofyen)capital surplus capital surplus(Millions of(Millions of
yen)
yen)

November 30, 2023
41,041,438
6,897
7,892
(2,500,000)－－(Note 1)February 9, 2024
40,041,438
6,897
7,892
(1,000,000)－－(Note 1)
(Notes) 1. This is a decrease due to the retirement of Treasury shares.
2. In accordance with a resolution of the Board of Directors held on April 24, 2024, treasury shares were cancelled on April
26, 2024, and the total number of issued shares was reduced by 1,500,000 shares.
(5) Shareholding by shareholder category
As of March 31, 2024
Status of shares (Number of shares constituting one unit: 100 shares)
Government
and local
Financial
municipaliti institutions
esCategory

Numberofshareholders
NumberFinancialserviceprovidersOther
corporations

Foreign corporations, etc.

Individuals
and others
Other than
Individuals
individuals

Total

Status ofshares lessthan one unit
(Shares)

－

14

23

45

215

8

6,326

6,631

－

－

97,882

6,335

3,395

166,91448

125,613400,187

22,738ofshares held
(Unit)
Percentage of

24.46
1.58
0.85
41.71
0.01
31.39
100.00－－shareholdings(%)(Note) 5,443,508 treasury shares are listed in the "Individuals and others" category of 54,435 units, and 8 shares are listed in the"Status of shares of less than one unit" section.

-69-

(6) Major shareholders(As of March 31, 2024)
Percentage ofshares held to the
Number of shares total number ofissued shares
held(excluding(Hundred shares)
treasury shares)(%)

Name/company name

Address

The Master Trust Bank of Japan, Ltd.
(Trust account)
Custody Bank of Japan, Ltd. (Trustaccount)

1-8-1 Akasaka, Minato-ku, Tokyo Akasaka
Intercity AIR

50,287

14.53

1-8-12 Harumi, Chuo-ku, Tokyo

24,552

7.10

25 BANK STREET, CANARY WHARF,LONDON, E14 5JP, UNITED KINGDOM(SHINAGAWA INTERCITY A, 2-15-1 KONAN,
Minato-ku, Tokyo)

21,008

6.07

1ST FLOOR,SENATOR HOUSE,85 QUEEN
VICTORIA STREET,LONDON,EC4V 4AB(3-11-1 Japanbashi, Chuo-ku, Tokyo)

19,492

5.63

BEAUFORT HOUSE EXETER EX4 4EP
UNITED KINGDOM(Shinagawa Intercity A, 2-15-1 Konan, Minato-ku,
Tokyo)

18,3095.29

1-13-1 Yurakucho, Chiyoda-ku, Tokyo (1-8-12
Harumi, Chuo-ku, Tokyo)

11,0003.18

50 BANK STREET CANARY WHARF
LONDON E14 5NT, UK (3-11-1 Japanbashi,
Chuo-ku, Tokyo)

10,610

3.07

Japan Life Securities Management Department, 16-6 Marunouchi, Chiyoda-ku, Tokyo(Akasaka Intercity AIR, 1-8-1 Akasaka, Minatoku, Tokyo)

7,992

2.31

4-19-9 Taito, Taito-ku, Tokyo

6,240

1.80

Koganei City, Tokyo

6,147

1.78

175,638

50.77

JP

MORGAN

CHASE

BANK

385632(Standing proxy: Settlement &Clearing Services Department,
Mizuho Bank, Ltd.)NIPPON ACTIVE VALUE FUND
PLC
(Permanent
Agent:
Custody
Department, The Hongkong andShanghai Banking Corporation,
Tokyo Branch)
AVI
JAPAN
OPPORTUNITY
TRUST PLC
(Permanent Agent: Mizuho Bank,
Ltd., Settlement Sales Department)
The

Dai-ichiLife

Insurance

Company, Limited(Standing proxy: Custody Bank ofJapan, Ltd.)NORTHERN TRUST CO.(AVFC)
RE

THE

HIGHCLERE

INTERNATIONALINVESTORSSMALLER COMPANIES FUND
(Standing proxy: Custody Business
Department, The Hongkong &Shanghai Banking Corporation
Limited, Tokyo Branch)
The Japan Life Insurance Company(Permanent Agent: The Master Trust
Bank of Japan, Ltd.)
Eiken Chemical Employee Stock
Ownership Association
Tadao Kurozumi
Total

－

(Notes) 1. In addition to the above, there are 54,435 shares of Treasury share.
2. The number of shares held by the Japan Master Trust Bank, Ltd. (trust account) is 21,549 shares set by investment trusts,
2,358 shares by pension trusts, and 26,380 shares by other trust shares.
3. The breakdown of the number of shares held by Japan Custody Bank, Ltd. (trust account) is 9,435 shares set up forinvestment trusts, 4800 shares for pension trusts, 13,052 shares for other trust shares, and 1,585 shares for others.

-70-

4. In the Change Report Regarding Report of Possession of Large Volume made available for public inspection as of June 19,
2023, it was stated that Mitsubishi UFJ Financial Group, Inc. held the following shares as of June 12, 2023. However, as
the Company has not confirmed the actual number of shares held as of March 31, 2024, they are not included in Status of
Major Shareholders above.
(Contents of the Large-Scale Holdings Report)
Percentage ofshares held to
Stock
the total number
holdings, etc.
Name/company name
Addressof issued shares
Number of(excluding(100 shares)
treasury shares)(%)

5.

Mitsubishi UFJ Trust and Banking Co., Ltd.

1-4-5 Marunouchi, Chiyoda-ku,
Tokyo

13,431

3.88

Mitsubishi UFJ Kokusai Asset Management
Co., Ltd.

1-12-1 Yurakucho, Chiyoda-ku,
Tokyo

2,947

0.85

Mitsubishi UFJ Morgan Stanley Securities
Co., Ltd.

1-9-2 Otemachi,
Tokyo

176

0.05

Chiyoda-ku,

In the Report of Possession of Large Volume made available for public inspection as of December 6, 2023, although it isstated that Sumitomo Mitsui Trust Bank, Ltd. owns the following shares as of November 30, 2023, the Company cannot
confirm the number of shares actually owned as of March 31, 2024, so it is not included in the status of the above major
shareholders.
(Contents of the Large-Scale Holdings Report)
Percentage ofshares held to
Stock
the total number
holdings, etc.
of issued shares
Name/company name
Address
Number of(excluding(100 shares)
treasury shares)(%)
Sumitomo Mitsui Trust Asset Management
Co., Ltd.

1-1-1 Shibakoen,
Tokyo

Minato-ku,

Nikko Asset Management Corporation

9-7-1
Tokyo

Minato-ku,

Akasaka,

10,511

3.04

11,005

3.18

6. In the Report of Possession of Large Volume made available for public inspection as of March 11, 2024, it was stated that
Asset Value Investors Limited held the following shares as of March 5, 2024. However, as the Company was unable toconfirm the actual number of shares held as of March 31, 2024, they are not included in the Status of Major Shareholders
above.
(Contents of the Large-Scale Holdings Report)
Percentage ofshares held to
Stock
the total number
holdings, etc.
Name/company name
Addressof issued shares
Number of(excluding(100 shares)
treasury shares)(%)
Asset Value Investors Limited

Cavendish Square 2, London, UK-71-

20,0695.80

7. In the Revised Report on the Mass Holdings Report dated March 26, 2024, which is open to the public, NIPPON ACTIVE
VALUE FUND PLC and its co-holders, NAVF Select LLC and Dalton Investments, Inc. Investments, Inc.) owns thefollowing shares as of March 18, 2024.However with the exception of NIPPON ACTIVE VALUE FUND PLC, we areunable to confirm the number of shares effectively held as of March 31, 2024, so they are not included in the status ofmajor shareholders above.
(Contents of the Large-Scale Holdings Report)

Name/company name

Percentage ofshares held to
Stock
the total number
holdings, etc.
of issued shares
Number of(excluding(100 shares)
treasury shares)(%)

AddressNIPPON ACTIVE VALUE FUND PLC

6th Floor, 125 London Wall,London, England

19,373

5.60

NAVF Select LLC

251
LittleFalls
Drive,
Wilmington, New Castle County,
Delaware USA

4,872

1.41

Dalton Investments, Inc.

9440 West Sahara Avenue, Suite
215, Las Vegas, Nevada 89117,
USA

8,695

2.51

(7) Voting rights➀Issued shares
As of March 31, 2024
Category

Number of shares(Shares)Number of voting rights

Description

－

－

－

－

－

－

－

－

－

Common 5,443,500
SharesCommon Shares
34,575,200
Common Shares
22,738－－

Shares with no voting rights
Shares with restricted voting rights(Treasury shares, etc.)
Shares with restricted voting rights(Other)Shares with full voting rights(Treasury shares, etc.)
Shares with full voting rights (Other)
Shares less than one unit
Total number of issued shares

40,041,438

Number of voting rights held by all

－

－

－

－

－

shareholders－

345,752－

345,752➁ Treasury share, etc.
As of March 31, 2024

Name/company name ofshareholder

Eiken Chemical Co., Ltd.
Total

Address of shareholder

Number of

Number ofshares held

shares held

Total number ofunder own

under thename(Shares)names of others(Shares)shares held
(Shares)

Ratio ofnumber ofshares held tototal number ofissued shares(%)

4-19-9 Taito, Taito-ku, Tokyo

5,443,500－

5,443,500

13.59

－

5,443,500－

5,443,500

13.59

-72-

2. Acquisition and Disposal of Treasury SharesClass of Shares, etc.:

Acquisition of common shares pursuant to Article 155, Item 3of the Companies Act(1) Acquisition by resolution of General Meeting of Shareholders
Not applicable.
(2) Acquisition by resolution of Board of Directors’ Meeting
Category

Number of shares (shares)

Total value (yen)Status of Resolutions at the Board of Directors Meeting(January 30, 2024)(Period of acquisition: January 31, 2024 ~ June 30, 2024)

2,700,000

5,400,000,000

Treasury shares acquired prior to the current fiscal year－－

2,500,000

4,636,945,585

200,000

763,054,415

7.4

14.1

Treasury shares acquired during the period under review－－

Percentage of non-exercise as of the date of submission
(%)

7.4

14.1

Treasury shares acquired in the current fiscal year
Total number and value of the remaining resolution
sharesPercentage of non-exercise as of the end of the fiscal year
under review (%)(Note) The share buyback based on a resolution of the Board of Directors held on January 30, 2024 ended on March 19, 2024.
(3) Acquisition not based on resolution of General Meeting of Shareholders or Board of Directors’ Meeting
Not applicable.
(4) Disposal of acquired treasury shares and number of Treasury shares held
Current fiscal year
Category

Acquired treasury shares through anoffer of underwriters
Acquired treasury shares that havebeen disposed of for cancellation
Treasury shares acquired throughmergers, share exchanges, stock
distributions, andtransfers related to company splits
Other
Number of Treasury shares held

Number of shares(shares)

Current Period

Total amount ofdisposal value(Yen)

Number of shares(shares)

Total amount ofdisposal value
(Yen)

－

－

－

－

3,500,000

2,013,159,170

1,500,000

1,567,078,240

－

－

－

－

69,117

32,844,150－－

5,443,508－

3,943,508－(Notes) 1."Other" in the fiscal year under review is due to the disposal of Treasury share as restricted stock compensation (35,417
shares, total disposal price: 16,836,650 yen) and the exercise of stock options (33,700 shares, total disposal price:
16,007,500 yen).
2. Treasury shares for the period under review do not include shares due to a request for sale of less than one unit of sharesfrom June 1, 2024 to the date of submission of this annual securities report.
3. The number of Treasury shares held during the period under review does not include shares purchased or requested for saleof less than one unit of shares from June 1, 2024 to the date of submission of this annual securities report.

-73-

3 Dividend Policy
The Company regards distribution of profits to its shareholders as one of the important management issues. Our Company’s
basic policies are to implement a stable dividend policy based on consideration for internal reserves required for reinforcement of
our financial base and active business development, and to distribute profits by paying stable dividends twice annually in the formof an interim dividend and a year-end dividend. The Board of Directors considers the shareholder return policy as one of the policies
that contribute to enhancing the corporate value of the Company. In addition, in its Articles of Incorporation, the Company has set
the decision-making body regarding dividends from surplus as follows: “Dividends from surplus, etc., can be distributed by aresolution of the Board of Directors in accordance with regulations of Article 459, Paragraph 1 of the Companies Act.”The year-end dividend for the current fiscal year has been set at 26 yen per share. As we have already paid an interim dividendof 25 yen on December 1, 2023, dividends on an annual basis will amount to 51 yen per share.
In regard to per share dividends for the next fiscal year, we forecast ordinary dividends consisting of an interim dividend of 26
yen and a year-end dividend of 27 yen. Internal reserves will be used effectively from a mid to long-term perspective in investment
for R&D aimed at strengthening our business structure, facilities investment, and efforts to improve business efficiency.
The dividends of surplus for the fiscal year under review are as follows.
Date of resolution

Total amount of dividends(Millions of yen)

October 26, 2023
Resolution of the Board of Directors
May 9, 2024
Resolution of the Board of Directors-74-

Dividends per share
(Yen)
927

25

899

26

4 Corporate Governance(1) Overview of corporate governance① Basic views on corporate governanceOur corporate governance policy is based on our management philosophy, management vision, and motto.
The Company recognizes that enhancing corporate governance with a strong focus on the shareholders’ perspective is one ofits most important management issues, for the purposes of enhancing management soundness, speed and transparency andimproving corporate value, and carries out activities to these ends.
② Overview of corporate governance system and reasons for adopting the system
By adopting the structure of a company with a Nominating Committee, the Company endeavors to realize prompt management
decisions and business execution by Executive Officers, while the Board of Directors and the three committees (Nominating
Committee, Compensation Committee, Audit Committee) continuously monitor the efficiency of business execution to achieve
highly transparent and fair management.
(a) Board of Directors
The Board of Directors, consisting of eight Directors (five of whom are Outside Directors), delegates occupational authority
within the scope of laws and regulations to the Executive Officers, and focuses on making decisions on important mattersrelated to basic management policies such as the medium-term management plan and management policies, and supervising
the status of business execution. The Board of Directors is chaired by Morifumi Wada, Chairman of the Board of Directors,
and consists of three directors (Morifumi Wada, Tsugunori Notomi, and Hajime Watari) and five outside directors (Yukiya
Hakozaki, Kiyoshi Ishii, Kiyomi Nakamura, Akira Fujiyoshi, and Naoki Matsutake).
(b) Nominating Committee
The Nominating Committee determines the content and other matters related to proposals for the election and dismissal of
Directors to be submitted to the General Meeting of Shareholders, in light of the criteria for the nomination and dismissal of
Directors. The committee is chaired by Kiyoshi Ishii, an outside director, and consists of one director (Tsugunori Notomi) andtwo outside directors (Kiyoshi Ishii and Yukiya Hakozaki).
(c) Compensation Committee
The Compensation Committee determines policies for the determination of individual compensation for Directors andExecutive Officers, as well as individual compensation. The committee is chaired by Outside Director Akira Fujiyoshi andconsists of one director (Tsugunori Notomi) and two outside directors (Akira Fujiyoshi and Kiyoshi Ishii).
(d) Audit Committee
The Audit Committee determines matters related to basic policies and implementation plans for audits and the content andother matters related to proposals for the election and dismissal of the Accounting Auditor and the non-reappointment of the
Accounting Auditor to be submitted to the General Meeting of Shareholders. The committee is chaired by Outside Director
Kiyomi Nakamura and consists of one director (Morifumi Wada) and three outside directors (Kiyomi Nakamura, Akira
Fujiyoshi, and Naoki Matsutake).

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(e) Business Execution Agencies, etc.
One Representative Executive Officer and nine Executive Officers are in charge.
A schematic diagram of the Company’s corporate governance structure is as follows.

③ Other matters regarding corporate governance
The Company’s basic policy for the development of internal control and risk management systems is as follows.
(a) Matters necessary for the execution of duties by the Audit Committee
a. Matters concerning the employees who should assist the Audit Committee in its duties
The Company shall establish an Audit Committee Secretariat to assist the Audit Committee in its duties, and the Internal
Audit Department is in charge of such work.
b. Matters concerning the independence from Executive Officers of employees who should assist the Audit Committee in its
dutiesThe Company shall ensure the independence of employees assigned to the Internal Audit Department from Executive
Officers in accordance with its Internal Rules (Rules Concerning Employees Who Should Assist the Audit Committee in Its
Duties). Transfers in and out of the department shall be decided in advance with the approval of the Audit Committee, andthe Company shall ensure that no employee is treated unfavorably because of his or her duties with respect to personnel
evaluations and salary.
c. Matters concerning ensuring the effectiveness of instructions given by the Audit Committee to the employees who should
assist the Audit Committee in its duties
The Company shall ensure that employees assigned to the Internal Audit Department are not subject to undue restrictionsin the performance of their duties. If any employee assigned to the Internal Audit Department is subject to undue restrictions
from within or outside the Company when performing his or her duties, he or she must inform the Audit Committee or an
Audit Committee member designated in advance by the Audit Committee, and request the lifting of the undue restrictions.
d. System for reporting to the Audit Committee by the Directors, Executive Officers, and employees, and system for reportingto the Audit Committee by Directors, etc. and employees of subsidiaries or persons who receive reports from such persons
The Company shall stipulate the matters to be reported to the Audit Committee in its Internal Rules (Rules on Reporting
Information to the Audit Committee, etc.), and Directors (excluding Directors who are Audit Committee Members),
Executive Officers, and employees, as well as Directors, etc. and employees of subsidiaries or persons who receive reports
from such persons, shall report to the Audit Committee.
In addition, Audit Committee Members shall attend Board of Directors meetings and other important meetings to monitor
the state of business execution and shall receive reports from each department at joint audit meetings held regularly. To
ensure thorough compliance, the Company has established internal and external whistleblower contacts.
e. System for ensuring that persons who report to the Audit Committee are not subject to any disadvantageous treatment on-76-

the basis of such report
The Audit Committee shall ensure that persons who make a report to the Audit Committee are not treateddisadvantageously on the grounds of having made such report.
f. Matters concerning procedures for prepayment or reimbursement of expenses incurred in the performance of duties by Audit
Committee Members, and other policies pertaining to the settlement of expenses or liabilities incurred in the performanceof such duties
When the Audit Committee entrusts advice, investigations, appraisals, or other administrative work to attorneys, certified
public accountants, or other outside experts in order to conduct an audit, or when the Company receives a demand foradvance payment of start-up costs or other expenses, reimbursement of expenses incurred after the fact, or other expenses,
the Company must pay such expenses or settle such liabilities unless the expenses or liabilities pertaining to such demand
are deemed unnecessary for the performance of the duties of the Audit Committee.
g. Other systems to ensure that audits by the Audit Committee are conducted effectively
Members of the Audit Committee shall attend Board of Directors meetings and other important meetings in order tomonitor the state of business execution, and shall give opinions as necessary, and facilitate the smooth execution of audit
work. In addition, members of the Audit Committee shall confirm that the effectiveness of audits is being ensured throughjoint audit meetings, and ensure cooperation with the Accounting Auditor as necessary.
(b) Systems to ensure that the execution of duties by Executive Officers complies with laws and regulations and the Articles ofIncorporation, and other systems necessary to ensure the appropriateness of operations
a. System to store and manage information pertaining to the execution of duties by Executive Officers
The Company shall store information pertaining to the execution of duties by Executive Officers, minutes and relatedmaterials, and other important information and documents, etc., in accordance with the Internal Rules for the storage andmanagement of information and maintain them in a state that can be accessed as necessary.
b. Regulations and other systems for managing the risk of loss of the Company and its subsidiaries
The Company and its subsidiaries (the “Group”) shall formulate the Eiken Group Risk Management Regulations which
systematically define the risk management of the Group and the risk of loss (“Risk”) associated with the promotion of Group
operations, which shall be continuously monitored and managed by the Risk Management & Compliance Committee.
In addition, the Executive Officer in charge of risk management, whose duty it is to oversee company-wide risks, shallpromptly and appropriately communicate information and establish an emergency response system in the event of an
emergency in accordance with such regulations.
c. System to ensure the execution of duties by Executive Officers of the Company and Directors of subsidiaries is conductedefficiently
Execution of important matters pertaining to the basic management policies of the Group shall be determined following
deliberations by the Board of Directors. Business execution shall be conducted promptly and smoothly based on a proper
chain of instructions and orders in accordance with the Rules for Executive Officers and the Rules on Administrative
Authority.
The Board of Directors meets once a month, and holds extraordinary meetings on an ad hoc basis as necessary, tocontinuously monitor business execution efficiency.
In addition, the Company’s subsidiaries also stipulate occupational authority and perform their duties efficiently.
The Audit Committee monitors each internal control system and takes appropriate action to ensure the appropriateness ofoperations of the Eiken Group, which consists of the Company and its subsidiaries.
d. System for reporting to the Company matters pertaining to the execution of duties by Directors, Executive Officers, andemployees who execute business, etc. of the Company’s subsidiaries
Executive Officers in charge of the Company’s subsidiaries shall report to the Company’s Chief Executive Officer
according the level of importance, etc., while respecting the autonomy and independence of the subsidiaries.
e. System to ensure that the execution of duties by Executive Officers and employees of the Company and the Directors, etc.
and employees of subsidiaries complies with laws, regulations and the Articles of Incorporation
The Eiken Group Global Code of Conduct and Eiken Group Compliance Regulations shall be established as codes ofconduct to ensure Executive Officers and employees of the Company, as well as Directors, etc. and employees of subsidiaries-77-comply with laws, regulations and the Articles of Incorporation and act in accordance with social norms. Internal training
shall also be conducted on an ongoing basis to in combination with the Rules on Administrative Authority to further enhancetheir effectiveness.
In addition, the Company and its subsidiaries shall each establish a Risk Management & Compliance Committee, as well
as a Risk Management & Compliance Promotion Committee, as a subordinate body to the Risk Management & Compliance
Committee that acts as an execution organization for each office and subsidiary. Through these Committees, the Company
promotes corporate ethics and legal compliance, and continuously monitors legality and efficiency through Internal Audit
Department audits, Risk Management & Compliance Committee meetings, and joint audit meetings.
(c) Development status of systems to ensure the appropriateness of operations at subsidiaries
The Company ensures the appropriateness of operations at subsidiaries by operating and managing subsidiaries by having
Executive Officers concurrently serve as officers at subsidiaries, and by regularly reporting their business performance and thestate of operation and management to the Board of Directors and the Management Committee.
④ Activities of the Board of Directors
During the fiscal year under review, the Company held 15 meetings of the Board of Directors, and the attendance of individual
directors is as follows.
Name

Number of meetings held

Number of attendance

Morifumi Wada

15 times

15 times

Tsugunori Notomi

15 times

15 times

Hajime Watari

15 times

15 times

Shigeru Nomura

4 times

4 times

Yukiya Hakozaki

15 times

15 times

Kiyoshi Ishii

15 times

15 times

Kiyomi Nakamura

15 times

15 times

Akira Fujiyoshi

15 times

15 times

Naoki Matsutake

11 times

11 times(Notes) 1. Shigeru Nomura retired on June 27, 2023, so his attendance status is based on his resignation.
2. Naoki Matsutake was appointed to the Board of Directors on June 27, 2023, so this is the status of attendance after
his appointment.
At meetings of the Board of Directors, in addition to making decisions on important matters relating to management policies,
etc. and other basic management policies, resolutions were made on matters such as the launch of the contract inspection business.
Furthermore, to supervise the status of business execution, the Board of Directors received reports on development strategies,
investment plans, the details and outcome of deliberations by the Sustainability Committee, and the opinions of shareholders andinvestors gathered during investor relations activities.

-78-

⑤ Activities of the Nominating Committee
In the fiscal year under review, the Nominating Committee met seven times, and the attendance of individual Nominating
Committee members is as follows.
Name

Number of meetings held

Number of attendance

Kiyoshi Ishii

7 times

7 times

Yukiya Hakozaki

7 times

7 times

Tsugunori Notomi

7 times

7 times

The Nominating Committee reviewed and discussed the proposed candidates for the Board of Directors and for Chief
Executive Officer, and the training of their successors. The main results of activities by the Nominating Committee are as follows.
The Committee simulated the future appointment and retirement of Outside Directors, and based on the results, the Committee
partially revised the internal rules regarding the retirement age and term of office of Outside Directors, from the viewpoint ofcontinuity of the Board of Directors and securing human resources. After confirming that there are no issues with theindependence and neutrality of the candidate for new Outside Director and five candidates for reappointment as Outside Directors
for the fiscal year ending March 31, 2025, and that they are well-balanced in terms of the skills matrix, the Committee decided
eight candidates for the Board of Directors, including the reappointment of three internal Directors. In addition, the Committee
presented the candidate for Chief Executive Officer to the Board of Directors, and encouraged discussions with the Chief
Executive Officer and the Board of Directors regarding the selection and training of successor candidates for Chief Executive
Officer. Through discussions, the Chief Executive Officer and the Board of Directors shared the view that the creation of a
succession plan for not only the Chief Executive Officer but also future top management is an important matter that will affect
the growth of the Company, and the Nominating Committee will continue to actively supervise and provide advice accordingly.
⑥ Activities of the Compensation Committee
In the fiscal year under review, the Compensation Committee met 10 times, and the attendance status of individual Compensation
Committee members is as follows.
Name

Number of meetings held

Number of attendance

Akira Fujiyoshi

10 times

10 times

Kiyomi Nakamura

3 times

3 times

Kiyoshi Ishii

7 times

7 times

Tsugunori Notomi

10 times

10 times(Notes) 1. Kiyomi Nakamura retired from the Compensation Committee on June 27, 2023, so this is the attendance status
before his retirement.
2. Kiyoshi Ishii was appointed to the Compensation Committee on June 27, 2023, so this is the status of attendance
after his appointment.
The Compensation Committee worked on two priority themes.
(a) Composition of compensation for Directors and Executive Officers
The compensation for Executive Officers consists of fixed compensation, performance-linked compensation, and restricted
stock compensation, and the ratio of basic compensation, performance-linked compensation, and restricted stock compensation
is 55%, 30%, and 15% as a model case. In addition, we are considering expanding the scope of restricted stock compensation tooutside directors in conjunction with discussions on reviewing the Compensation system for executive officers.
(b) Improvement of content and method of goal settingWith regard to the setting of goals for executive officers, we have clarified the medium- to long-term goals that executive
officers should work on to realize the management concept “EIKEN ROAD MAP 2030” and achieve the medium-term
management plan, with a focus on reforms, in addition to the opinions of outside directors and recognition of issues. In addition,
we will review and reform the compensation design to incentivize the reform of executive officers. Specifically, in addition to
making compensation competitive, we are considering linking the compensation system to the stock price and the achievement
rate of the medium-term management plan.

-79-

⑦ Activities of the Audit Committee
In the fiscal year under review, the Audit Committee met eight times, and the attendance status of individual Audit Committee
members is as follows.
Name

Number of meetings held

Number of attendance

Shigeru Nomura

3 times

3 times

Kiyomi Nakamura

8 times

8 times

Akira Fujiyoshi

8 times

8 timesNaoki Matsutake

5 times

5 times

Morifumi Wada

8 times

8 times(Notes) 1. Shigeru Nomura retired from the Audit Committee on June 27, 2023, so his attendance is based on his attendance
before his retirement.
2. Naoki Matsutake was appointed to the Audit Committee on June 27, 2023, so this is the status of attendance after
his appointment.
The Audit Committee has confirmed that governance and risk management are functioning properly by receiving regular
reports from the Business Management Division, Production Division, Quality Control departments, and other departments inaccordance with the Audit Committee Rules, as well as through quarterly opinion exchanges with the Chief Executive Officer
and information exchange with the Accounting Auditor. The Internal Audit Department, which serves as the secretariat to the
Audit Committee has audited the development and operation of internal control systems, and conducted business audits. The
Audit Committee has also investigated and analyzed risks surrounding the business environment, shared information withexecutive departments and the Board of Directors, and endeavored to strengthen governance by confirming a system torespond immediately to risks. No material facts in violation of laws, regulations, or the Articles of Incorporation were foundas a result of these activities in the execution of duties by Directors and Executive Officers during the fiscal year under review.
The Audit Committee will collaborate with the Internal Audit Department and the Accounting Auditor to improve theeffectiveness of the audit and the system, and will conduct audits to promote stronger governance to enhance corporate value
and to earn trust from society.
⑧ Number of directors
The Company’s Articles of Incorporation stipulate that there shall be no more than ten Directors and that at least two Directors
shall be Outside Directors (meaning Outside Directors stipulated in Article 2, Item 15 of the Companies Act).
⑨ Overview of the content of liability limitation agreements
The Company has concluded a limited liability agreement with six Directors to limit their liability to compensate for damagesprescribed in Article 423, Paragraph 1 of the Companies Act, pursuant to the provisions of Article 427, Paragraph 1 of the same
Act. The limit of the liability under such agreements for Directors (excluding Executive Directors, etc.) shall be the greater of
either 10 million yen or the amount prescribed in laws and regulations. Such limitation of liability shall apply only when therelevant Directors (excluding Executive Directors, etc.) have performed their duties, which is the cause of the liability, in goodfaith and without gross negligence.
⑩ Overview of the content of Directors and Officers Liability Insurance
The Company has taken out Directors and Officers Liability Insurance as prescribed in Article 430-3, Paragraph 1 of theCompanies Act, naming all Directors, Executive Officers and officers of subsidiaries as the insured parties. Insurance premiums,
including riders, are paid in full by the Company.
The insurance policy is designed to cover damages, etc. incurred by the insured Directors and Executive Officers, etc., due toclaims for damages arising from the performance of their duties. However, certain exemptions such as damage caused by acts
committed while acknowledging that such acts violate laws and regulations will not be covered.

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⑪ Requirements for resolutions to elect Directors
The Company’s Articles of Incorporation stipulate that Directors shall be elected by a resolution of the General Meeting of
Shareholders and that the resolution for their election shall be adopted by a majority of the voting rights of shareholders present
at the meeting, at which shareholders holding one-third or more of the voting rights of shareholders who are entitled to exercise
their voting rights are present. Resolutions for the election of Directors shall not be conducted by cumulative voting.
⑫ Organization for determining dividends of surplus, etc.
The Company’s Articles of Incorporation stipulate that matters set forth in each item of Article 459, Paragraph 1 of theCompanies Act, including dividends of surplus, shall be decided by resolutions of the Board of Directors instead of resolutionsof General Meeting of Shareholders, unless otherwise provided by laws and regulations. The purpose of this policy is to flexibly
return profits to shareholders by giving the Board of Directors the authority to distribute dividends of surplus, etc.
⑬

Organization for determining the acquisition of Treasury shares
The Company’s Articles of Incorporation stipulate that the Company may acquire its own shares through market transactions,etc. by a resolution of the Board of Directors, pursuant to Article 165, Paragraph 2 of the Companies Act. The purpose of thispolicy is to flexibly repurchase treasury shares.

⑭ Exemption of Directors and Executive Officers from liability
The Company’s Articles of Incorporation stipulate that the Company can, in cases where the statutory requirements are satisfied,exempt Directors (including former Directors) and Executive Officers (including former Executive Officers) from the indemnity
liability pursuant to Article 423, Paragraph 1 of the Companies Act, limited to the balance of the indemnity liability amountreduced by the statutory minimum liability amount, pursuant to the provisions of Article 426, Paragraph 1 of the Companies Act,by a resolution of the Board of Directors. The purpose of this policy is to create an environment in which Directors and Executive
Officers can fully demonstrate their abilities and fulfill their expected roles in the execution of their duties.
⑮ Requirements for special resolution at the General Meetings of Shareholders
The Company’s Articles of Incorporation stipulate that the requirements for special resolutions of the General Meeting of
Shareholders stipulated in Article 309, Paragraph 2 of the Companies Act shall be passed by two-thirds of the voting rights ofshareholders present at the meeting, at which shareholders holding one-third or more of the voting rights of shareholders who areentitled to exercise their voting rights are present. The purpose of this policy is to ensure the smooth operation of the General
Meeting of Shareholders by relaxing the quorum for special resolutions at such meetings.
⑯ Matters to be resolved by the Board of Directors in cases where the Articles of Incorporation stipulate that such matters cannot
be resolved at the General Meeting of Shareholders, and the reasons thereof
The Company’s Articles of Incorporation stipulate that the matters listed in each item of Article 459, Paragraph 1 of theCompanies Act shall not be determined by a resolution of the General Meeting of Shareholders. The purpose of this is to flexibly
return profits to shareholders by giving the Board of Directors the authority to distribute dividends of surplus, etc.

-81-(2) Status of Officers
15 males, 1 female (6.3% of executives are female)(1) List of Officers
a. Status of Directors
Title and position

Name

Date of birth

Career summary

March, 1978
April, 2005

Jun 2006
April, 2007

May 2007
Director

Morifumi Wada

Date of birth: October
8, 1954

April, 2011
Jun 2011
April 2012
June 2014
June 2021
June 2022
June 2023
Apr. 1981
May, 2001

October, 2005

April, 2009

April, 2009

Director

Tsugunori Notomi

Date of birth: May 7,
1958

April, 2011

April 2018
June 2018
June 2018
April 2020

June 2020-82-

Joined the Company
General Manager, Production
Planning & Control Division,
Production Division, andGeneral Manager, Procurement
Department of the Company
Executive Officer of theCompany
General Manager, Nogi Plant,
Production Division of theCompany
General Manager, Togane
Plant, Production Division of
the Company
Vice President and Executive
Officer of the Company
Director of the Company
GeneralManager,
Sales
Division of the Company
President and CEO of theCompany
Chairman and CEO of theCompany
Chairman and Director of theCompany (to present)
Outside Director of ORGANOCORPORATION (to present)
Joined the Company
General Manager, DUG Unit
Technology
Development
Department of the Company
Deputy General Manager,
Biochemical
Research
Laboratory, R&D Division of
the Company
General Manager, Biochemical
Research Laboratory, R&D
Division of the Company
Executive Officer of theCompany
General Manager, Biochemical
Research Laboratory-II, R&D
Division of the Company
GeneralManager,
R&D
Division of the Company
Director of the Company (topresent)
Vice President and Executive
Officer of the Company
GeneralManager,
R&D
Division,andGeneralManager, Production Divisionof the Company
Senior Vice President andExecutive Officer of theCompany

Number ofTerm of shares held
office(hundredshares)

(Note
3)

29

(Note
3)

66

Title and position

Name

Date of birth

Career summary

President and CEO of theCompany (to present)
March, 1985
Joined the Company
April, 2013
General Manager, Strategic
Planning&
Business
Development
Department,
Corporate Strategy Office of
the Company
June 2014
General Manager, Overseas
Sales Office, Sales Division of
the Company
April, 2015
Executive Officer of theCompany
April, 2016
General Manager, Global Sales& Business Development
Division of the Company
April 2020
General Manager, Business
Date of birth: OctoberManagement Division, and17, 1960
General Manager, Global
Business Division of theCompany
June 2020
Director of the Company (topresent)
June 2020
Vice President and Executive
Officer of the Company
June 2021
Senior Vice President andExecutive Officer of theCompany (to present)
April 2022
General Manager, Business
Management Division (topresent)
November 2023 Director, EIKEN MEDICALAMERICA INC. (to present)

Number ofTerm of shares held
office(hundredshares)June 2021

Director

Hajime Watari

-83-

(Note
3)

102

Job Title

identity

Date of birth

Biography

Japan Self Defense Forces Fuji
HospitalAug. 1987
Medical
Director
Gastroenterological Medicine,Japan Self Defense Forces
Central Hospital
1997.10
Section Chief, Research andExamination
Department,
General Manager, Endoscope
Office, Japan Self Defense
Forces Central Hospital
Aug 2000
Director,
First
Section,
DepartmentofInternal
Medicine and Chief of HealthCare Center, JSDF Hanshin
Hospital
Aug 2004
Medical officer, Overseeing
and Directing Department,
Date of birth: October
Yukiya Hakozaki
JGSDF Western Army
17, 1954
December, 2006 Head, Internal Medicine, First
Section, Self Defense Forces
Central Hospital (Medical
treatment secretary)
October, 2014
RetiredNovember 2014 President, Genkikai-Yokohama
Hospital(MedicalCorporation)
June 2015
Outside Director of theCompany (to present)
April 2017
Visiting Professor, Tokyo
Metropolitan University (topresent)
April 2021
Advisor, Medical corporation
Reiju
medockGeneralExamination Clinic
June 2022
Chairman, IEMS-Japan (topresent)

tenureNumber ofshares held(100 shares)

(Note
3)

－

June 1983

Director-84-

Apr. 1977

Joined Ishikawajima-Harima Heavy
Industries Co., Ltd. (currently IHI
Corporation)

April, 2005

Associate Director, Division
Director, Defense System
Business
Division,
Aero
Engine & Space Business
Headquarters, IshikawajimaHarima Heavy Industries, Co.,
Ltd.
Executive
Officer,
Vice
President, Aero Engine &Space Business Headquarters,
and Division Director, Defense
System Business Division,
Ishikawajima-Harima Heavy
Industries Co., Ltd.
Senior Managing Director, Ai
Eichi Ai AEROSPACE Co.,Ltd.
(currently
IHI
AEROSPACE Co., Ltd.)
President, Ai
Eichi AiAEROSPACE Co., Ltd.
Chairman, IHI AEROSPACE
Co., Ltd. (part-time)
President, and Chief Executive
Officer, MEISEI ELECTRIC
CO., LTD.
Director, IHI AEROSPACE
Co., Ltd. (part-time)
Advisor, MEISEI ELECTRIC
CO., LTD.
Advisor, IHI Corporation
Outside Director of theCompany (to present)
Outside Director, Kyowa Seiki
Co., Ltd. (to present)
Registered as attorney-at-law
Joined Takao Ono Law Office(currently
ONO
SOGO
LEGAL
PROFESSIONCORPORATION)
Partner, Akitoshi Ishimoto Law
OfficeOutside Director of theCompany (to present)
Outside Director, Nippon Beet
Sugar Manufacturing Co., Ltd.
(to present)
Partner, HORIZON LAWOFFICE (to present)

April, 2007

Director

Kiyoshi Ishii

Date of birth: October
24, 1952

April, 2008

Jun 2008
Jun 2012
Jun 2012

June 2013
June 2016
July 2018
June 2019
February 2020
Apr. 1998
Apr. 1998

Jan 2008
Director

Date of birth: October
Kiyomi Nakamura
31, 1968

June 2019
June 2020

May 2022

-85-

(Note
3)

－

(Note
3)

－

Job Title

identity

Date of birth

Biography
Apr. 1976
Aug. 1988

Apr. 1997

April, 2000

July, 2003
Director

Akira Fujiyoshi

Date of birth: March
19, 1954
Jun 2006

Jun 2009
June 2014
March 2017
October, 2019
June 2020
Apr. 1987
March, 1993

Director

Naoki Matsutake

Date of birth: June 30,
1958

Jun 2003
March 2016

June 2023

Total

Joined Eisai Co., Ltd. (R&D)
Seconded to Eisai America,
Inc., U.S. subsidiary of Eisai
Co., Ltd.
Seconded to Eisai ResearchInstitute of Boston Inc., U.S.
subsidiary of Eisai Co., Ltd.
General Manager, PlanningGroup,
ResearchandDevelopment
Planning
Department of Eisai Co., Ltd.
General Manager, IR Group,
Public Relations Department of
Eisai Co., Ltd.
Corporate Officer in charge ofCorporate
Communications
and IR of Eisai Co., Ltd.
Director, Member of the Audit
Committee of Eisai Co., Ltd.
Adviser of Eisai Co., Ltd.
Independent Director, SEMBACORPORATION
External Auditor & Supervisor,
Heartseed Inc. (to present)
Outside Director of theCompany (to present)
Registered as Certified Public
Accountant
Representative Director, Kazu
Corporation Co., Ltd. (topresent)
Corporate Auditor, BP Castrol
K.K.
Outside Director (Audit andSupervisory
Committee
Member), BP Castrol K.K.
Outside Director of theCompany (to present)

tenureNumber ofshares held(100 shares)

(Note
3)

－

(Note
3)

－

198

(Notes) 1. Yukiya Hakozaki, Kiyoshi Ishii, Kiyomi Nakamura, Akira Fujiyoshi, and Naoki Matsutake are five outside directors.
2. The Company's committee structure is as follows.
Nominating Committee Members: Kiyoshi Ishii, Yukiya Hakozaki, Tsugunori Notomi
Compensation Committee Members: Akira Fujiyoshi, Kiyoshi Ishii, Tsugunori Notomi
Audit Committee Members: Kiyomi Nakamura, Akira Fujiyoshi, Naoki Matsutake, Morifumi Wada
3. One year from the conclusion of the Ordinary General Meeting of Shareholders to be held on June 25, 2024

-86-

b. Status of Executive Officers
Number ofTerm of shares held
office(hundredshares)Title and position

Name

Date of birth

Career summary

President & CEO

Tsugunori Notomi

May 7, 1958

a. Refer to the status of directors(Note)

66

Hajime Watari

October 17, 1960

a. Refer to the status of directors(Note)

102

Joined the Company
General Manager, Kyoto Sales
Office, Sales Division of theCompany
General Manager, Nagoya Sales
Office, Sales Division of theCompany
GeneralManager,
Sales
Administration
Office,
Sales
Division of the Company
GeneralManager,
Planning
Department, Sales Administration
Office, Sales Division of theCompany
Appointed Executive Officer of theCompany
General Manager, Sales Division of
the Company (to present)
General Manager, Domestic Sales
Office of the Company
Appointed Vice President andExecutive Officer of the Company (topresent)(Note)

33

Joined the Company
General Manager, Department II,
Biochemical Research Laboratory,
R&D Division of the Company
General Manager, Department I,
Biochemical Research Laboratory-II,
R&D Division of the Company
GeneralManager,
Planning
Development Department, R&D
Division of the Company
General Manager, Fundamental
Research Laboratory, R&D Divisionof the Company
General Manager, Biochemical
Research
Laboratory-I,
R&D
Division and General Manager,
Fundamental Research Laboratory of
the Company
Appointed Executive Officer of theCompany
General Manager, R&D Division,and General Manager, Fundamental
Research Laboratory of the Company
Vice President and Executive Officerof the Company (to present)
General Manager of the R&D
Division (to present)(Note)

53

Senior Vice President andExecutive Officer
andGeneral Manager ofCorporate Administration

April 1986
July 2007

April 2010

April 2013
Vice President andExecutive Officer
andGeneral Manager, Sales
Division

October 2013
Naomichi Harada

December 17, 1960

January 2017
January 2017
April 2019
June 2021

March 1985
April 2009

April 2011

April 2016

April 2018
Vice President andExecutive Officer andGeneral Manager of the
R&D Division

Hidetoshi Kanda

May 1, 1960

April 2020

April 2020
June 2021

June 2023
April 2024

-87-

March, 1984
April, 2009

April, 2011

April 2012
Executive Officer,
General Manager of Internal Shinya Sadamoto
Audit Office

April 2012
October 12, 1961
June 2014

April, 2015
April 2022
April 2024

-88-

Joined the Company
General Manager, Department III,
Biochemical Research Laboratory,
R&D Division of the Company
General Manager, Department III,
Biochemical Research Laboratory-I,
R&D Division of the Company
Appointed Executive Officer of theCompany (to present)
General Manager, Biochemical
Research
Laboratory-I,
R&D
Division of the Company
General Manager, Development
Department, R&D Division of theCompany
General Manager, Quality Assurance
Division of the Company
General Manager, President’s Officeof the Company
General Manager of the Internal
Audit Office (to present)(Note)

26

Job Title

identity

Date of birth
April 1988
April 2013

April 2016

April 2018

Executive Officer,
General Manager of
Production Management
Department, General Manager of
Production Control Office, and General Manager of
Quality Assurance Office

April 2021
Michitoshi Doi

November 11, 1961
April 2021

April 2022

April 2024

Apr. 1986
Apr 2010

April, 2013

April, 2015
Executive Officer,
GeneralManager, General Manager, Tetsuya Takahashi
Sales Promotion Office,Sales Division

tenureNumber ofshares held(100 shares)

Joined the Company
General Manager, Administration
Department II, Production Planning& Control Division, Production
Division of the Company
General Manager, IT Planning
Department, IT Planning Promotion
Office,Business
Management
Division of the Company
General Manager, IT Planning
Promotion
Office,Business
Management Division and General
Manager, IT Planning Department of
the Company
Appointed Executive Officer of theCompany (to present)
GeneralManager,
Production
Division and General Manager, IT
Planning Promotion Office, Business
Management Division and General
Manager, IT Planning Department of
the Company
GeneralManager,
Production
Division and General Manager,
Production Management Office of theCompany
General Manager of Production
Management Department, General
Manager of Production Control
Office, and General Manager of
Quality Assurance Office (to present)(Note)

42

Joined the Company
General Manager, Takamatsu Sales
Office, Sales Division of theCompany
General Manager, Nagoya Sales
Office, Domestic Sales Office, Sales
Division of the Company
General Manager, Sales Promotion
Department, Sales Administration
Office, Sales Division of theCompany
GeneralManager,
Sales
Administration Office, Sales Divisionof the Company
Appointed Executive Officer of theCompany (to present)
GeneralManager,Marketing
Promotion Office of the Company
General Manager, Sales Promotion
Office, Sales Division of theCompany (to present)(Note)

49

Biography

May 22, 1963
April 2017

April 2021
April 2021
April 2023

-89-

May 1995
April, 2015

April 2018

April 2020

April 2021
April 2021
Executive Officer, General
Manager, Overseas Planningand Sales Office, Sales
DivisionYasuyoshi Mori

July 19, 1967
April 2022

April 2023

June 2023

June 2023

April 2024

Apr. 1990
Jul 2013
June 2014

Executive Officer,
General Manager, General
Manager, Marketing Office,Sales Division

April 2020
Yuji Segawa

November 7, 1965
April 2022
April 2023

Joined the Company
General Manager, Department I,
Biochemical Research Laboratory-II,
R&D Division of the Company
General Manager, Biochemical
Research Laboratory-II and General
Manager, Department I, R&D
Division of the Company
General Manager, Biochemical
Research Laboratory-II and General
Manager, Department II, R&D
Division of the Company
Appointed Executive Officer of theCompany (to present)
General Manager, Biochemical
Research
Laboratory-II,
R&D
Division of the Company
General Manager, Global Sales &Business Development Division,
Sales Division of the Company
General Manager, Overseas Planningand Sales Office, Sales Division of
the Company
General Manager, Overseas Planningand Sales Office, and General
Manager, Chinese Business Division,
Sales Division of the Company
Chairman of the Board of Directorsof EIKEN CHINA CO., LTD (topresent)
General Manager, Overseas Planningand Sales Office, Sales Division of
the Company (to present)
Joined Sony Corporation
Joined the Company
General Manager, Department II,
Biochemical Research Laboratory-II,
R&D Division of the Company
GeneralManager,
AppliedTechnology Research Laboratory,
R&D Division of the Company
Appointed Executive Officer of theCompany (to present)
General Manager, Marketing Office,Sales Division of the Company (topresent)-90-(Note)

26(Note)

26

April 1988
April 2015

April 2018

April 2021
Executive Officer,
General Manager, Nogi Hiroyasu Furuhashi
Plant, Production Division

July 12, 1963

April 2022

April 2023

April 2024

Total

Joined the Company
General Manager, Quality Control
Department, Nasu Plant, Production
Division of the Company
General Manager, Quality Control
Department, Nogi Plant, Production
Division of the Company
General Manager, Nogi Plant,
Production Division of the Company
General Manager, Nogi Plant,
Production Division and General
Manager, Quality Assurance Officeof the Company
Appointed Executive Officer of theCompany of the Company (topresent)
General Manager, Nogi Plant,
Production Division of the Company(to present)(Note)

80505(Note) One year from the conclusion of the first meeting of the Board of Directors held after the conclusion of the General Meetingof Shareholders held on June 25, 2024.

-91-

(2) Status of Outside Officers
Of the Company's eight directors, the following five are Outside Directors.
Name

Employer and Title

Personal, capital and business relationships
or other interests with the Company
None. Satisfies the “Standards for the
Independence of Outside Directors” established by
the Company’s Nominating Committee.

Yukiya Hakozaki

Visiting Professor, Tokyo Metropolitan University
President, Japan International Organization for
Emergency Medical Care and Health

Kiyoshi Ishii

Outside Director, Kyowa Seiki Co., Ltd.

None. Satisfies the “Standards for the
Independence of Outside Directors” established by
the Company’s Nominating Committee.

Kiyomi Nakamura

Partner, HORIZON LAW OFFICE
Outside Director, Nippon Beet Sugar ManufacturingCo., Ltd.

None. Satisfies the “Standards for the
Independence of Outside Directors” established by
the Company’s Nominating Committee.

Akira Fujiyoshi

External Auditor & Supervisor, Heartseed Inc.

None. Satisfies the “Standards for the
Independence of Outside Directors” established by
the Company’s Nominating Committee.

Naoki Matsutake

Representative Director of Kazu Corporation

None. Satisfies the “Standards for the
Independence of Outside Directors” established by
the Company’s Nominating Committee.

Outside Director Yukiya Hakozaki is a medical doctor. Although he has not been involved in company management by meansother than serving as Outside Director, he has actively provided advice and opinions about management from an independent andobjective standpoint at the Company’s Board of Directors’ meetings, utilizing his professional knowledge, experience andprofound insight as a medical doctor gained through his career. Further, he has contributed to active discussions at the Nominating
Committee by actively expressing his opinions in the process of appointing Directors and CEO. Given his extensive knowledge
and achievements, the Company believes that he is qualified to serve as an Outside Director.
Outside Director Kiyoshi Ishii has been engaged in corporate management for many years in the aerospace business and hasabundant experience and extensive knowledge in corporate management in such business. He has actively provided advice andopinions at the Company’s Board of Directors’ meetings about management from an independent and objective standpoint basedon his profound insight in corporate management gained through his career. Further, he has made a significant contribution tostrengthening the management and personnel functions as Chairman of the Nominating Committee by giving advice as necessary
about a decision on executive appointment that has transparency, fairness and rationality as well as discussions on operation
policies of the Nominating Committee with the focus on succession plans, etc. As a member of the Compensation Committee,
he contributes significantly to the strengthening of the management and human assets function by providing necessary advice asappropriate in deliberations on specific compensation amounts and revisions to the executive compensation system. Given his
extensive knowledge and achievements, the Company believes that he is qualified to serve as an Outside Director.
Outside Director Kiyomi Nakamura is an attorney-at-law. Although she has not been involved in company management bymeans other than serving as Outside Director, she has provided advice at the Company’s Board of Directors’ meetings about
management from an independent and objective standpoint based on her abundant experience and extensive knowledge related
to the legal profession gained through her career, and has contributed to the enhancement of the Company’s corporate governance.
Further, she has made a substantial contribution to the maintenance and strengthening of audit functions by auditing the businessexecution of Directors and Executive Officers at a company with a nominating committee, etc. as Chairman of the Audit
Committee as well as having discussions at the Audit Committee about matters referred to the Board of Directors, mattersdetermined to need monitoring by the Audit Committee, etc. from the viewpoint of legality and validity. Given her extensive
knowledge and achievements, the Company believes that she is qualified to serve as an Outside Director.
She is also deeply knowledgeable about gender issues, and she was Vice Chairperson of the Sexual Equality Commission of
the Tokyo Bar Association from 2017 until March 2021 and has been active as a member of the said commission since April
2021.

-92-

Outside Director Akira Fujiyoshi has been engaged in research and development, overseas business, IR, and other activities ata major pharmaceutical company for many years and has abundant experience and extensive knowledge in corporate managementin such business. He has actively provided advice and opinions at the Company’s Board of Directors’ meetings about managementfrom an independent and objective standpoint based on his profound insight in corporate management and the pharmaceuticalindustry gained through his career. Further, he has made a substantial contribution to the maintenance and strengthening of audit
functions by auditing the business execution of Directors and Executive Officers at a company with a nominating committee, etc.
as a member of the Audit Committee as well as having discussions at the Audit Committee about matters referred to the Boardof Directors, matters determined to need monitoring by the Audit Committee, etc. from the viewpoint of legality and validity. As
Chairman of the Compensation Committee, he has made a significant contribution to strengthening the management andpersonnel functions by giving advice as necessary at discussions about specific Compensation amounts, revisions of the executive
Compensation system, etc. Given his extensive knowledge and achievements, the Company believes that he is qualified to serveas an Outside Director.
Outside Director Naoki Matsutake is a certified public accountant and has professional knowledge and abundant experiencein finance and accounting. As a management consultant, he also has a track record of contributing to the improvement of corporate
governance and the enhancement of audit systems at listed companies. Further, he has made a substantial contribution to themaintenance and strengthening of audit functions by auditing the business execution of Directors and Executive Officers at acompany with a nominating committee, etc. as a member of the Audit Committee as well as having discussions at the Audit
Committee about matters referred to the Board of Directors, matters determined to need monitoring by the Audit Committee, etc.
from the viewpoint of legality and validity. The Company expects that he will provide advice from an independent and objective
standpoint, further strengthen corporate governance, oversee and supervise management utilizing his profound management
insight gained through his career, and believes that he is qualified to serve as an Outside Director.
The five Outside Directors are designated as independent Directors as provided for by the regulations of the Tokyo Stock
Exchange, as they have no direct conflicts of interest with the management team that executes the business and there is no riskof a conflict of interest with general shareholders. The Outside Directors also concurrently serve as members of the Nominating,
Audit, and Compensation Committees. At meetings of the Board of Directors and each Committee meetings, they provide usefuladvice and suggestions as appropriate, on the monitoring and supervision of the Company’s management and the Company’s
corporate governance from a standpoint that is independent of the Company.
Outside Directors who concurrently serve as members of the Audit Committee collaborate with the Internal Audit Department
and the Accounting Auditor as described in “3) Cooperation in supervision or auditing and internal audits by Outside Directors
or the Audit Committee, Audit Committee audits, and accounting audits, and the relationship with the Internal Control
Department.” Outside Directors also receive regular reports from the Risk Management & Compliance Committee andcontinuously monitor the Company’s risks and its responses thereto.
The Company has established the following standards for independence for the election of Outside Directors.

-93-

[Standards for the Independence of Outside Directors]
In order for the Outside Directors of the Company to be recognized as independent, they should not fall under any of thefollowing categories.
1.

Any person who does not fall under legal stipulations

2.

Any person whose major business partner is the Company (any person who received a payment from the Company
an amount 2% or more of the person’s annual consolidated sales for the most recent business year, or 100 million
yen a year, whichever is greater)3.

Any person who is a major business partner of the Company (any person who paid the Company an amountequivalent to 2% or more of the Company’s annual consolidated sales for the most recent business year, or any
person who provided the Company with a loan of an amount equivalent to 2% or more of the Company’s
consolidated total assets for the business year)

4.

Any consultant, accounting expert such as certified public accountant, legal expert such as attorney-at-law, or otherexpert who receives money or other assets exceeding a certain amount (Note 1) from the Company, in addition tohis or her compensation as a Director

5.

Any person who receives donations or subsidies exceeding a certain amount (Note 1) from the Company

6.

Major shareholders of the Company (who hold 10% or more of the total number of voting rights of the Company
directly or indirectly)

7.

Any person who belongs to an auditing firm who conducts audit of the Company

8.

If a business executive (Note 2) of the Company currently holds or held a position as Outside Director at anothercompany, any person who is a business executive (Note 2) of that company

9.

If a person falling under one of the categories listed in the above items 2 through 6 is a corporation, association orother organization, any person who is a business executive (Note 2) of that corporation, association or otherorganization

10. Any person falling under one of the categories listed in the above items 2 through 9 in the past 3 years
11. If a person falling under one of the categories listed in the above items 2 through 10 is an important person (Note3), that person’s spouse or family within the second degree of kinship(Notes) 1: Where it reads “certain amount,” this means “10 million yen a year.”
2: Where it reads “business executive,” this means “Director (excluding Outside Director), Executive Officer,
Operating Officer, employees who execute the Company’s business, Associate Director (excluding Outside
Associate Director), and other similar managerial staff and employees, etc. who performs job duties.”
3: Where it reads “important person,” this means “Director, Executive Officer, Operating Officer, and otherimportant employee.”

3)

Cooperation in supervision or auditing and internal audits by Outside Directors or the Audit Committee, Audit Committee
audits, and accounting audits, and the relationship with the Internal Control Department
With regard to the internal audits of the Company, regular joint audit meetings are held with the cooperation of the Audit
Committee and the Internal Audit Department at which reports are received from each department.
The Audit Committee collaborates with the Accounting Auditor by receiving an annual plan for audits and quarterly reviews
and reports on the results of quarterly and year-end audits from the Accounting Auditor.

-94-

(3) Status of Audits① Status of Audit Committee Audits
As of the filing date of this Report, the Audit Committee consists of four Directors (three of whom are Outside Directors) andmonitors each internal control system and takes appropriate actions to ensure the appropriateness of operations of the Eiken
Group, which consists of the Company and its subsidiaries. Audit Committee Members attend important meetings, including
meetings of the Board of Directors, to monitor the state of business execution and provide opinions as necessary. Audit Committee
Members also ensure the effectiveness of audits by receiving reports from each department at the meetings of the Joint Audit
Conference (held four times in the fiscal year under review). Mr. Naoki Matsutake, an Audit Committee Member, is a certified
public accountant and has considerable knowledge of finance and accounting. In addition, the Company has established an Audit
Committee Secretariat to assist the Audit Committee in its duties, and has assigned two employees of the Internal Audit
Department to be in charge of such work. The Audit Committee held eight meetings during the fiscal year under review, and theattendance of individual Audit Committee members was as follows.
Number of meetings attended/
Name
Shigeru Nomura (Note 2)

number of meetings held
(Note 1)
3 times / 3 times

Attendance rate
(Note 1)100％

Kiyomi Nakamura

8 times / 8 times

100％

Akira Fuji Yoshi

8 times / 8 times

100％

Naoki Matsutake (Note 3)

5 times / 5 times

100％

Morifumi Wada

8 times / 8 times

100％(Notes) 1. Based on the number of days held during the term of office in the current fiscal year.
2. Shigeru Nomura retired on June 27, 2023.
3. Naoki Matsutake appointed to the Audit Committee on June 27, 2023.
The Audit Committee principally considers the formulation of audit policies and plans, the status of execution of duties byDirectors and Executive Officers, the status of development and operation of internal control systems, and the appropriateness of
the Accounting Auditor’s audit methods and audit results.
The Audit Committee collaborates with the Accounting Auditor by receiving annual plans for audits and quarterly reviews andreports on the results of quarterly and year-end audits from the Accounting Auditor, discussing key audit matters, and by being
present at audits conducted by the Accounting Auditor as necessary.

② Status of Internal Audits
a. Regarding internal audits, as of the filing date of this Report, the Internal Audit Department, which consists of three members,
is responsible for internal audits as an organization under the direct control of the President & CEO. Based on an annual plan,
employees in charge of audits conduct internal audits of the Company’s compliance with various standards, including internal
audits of the status of internal controls relating to financial reporting, point out improvements in management efficiency andoperations, and confirm the status of initiatives by the audited departments in response to requests for improvement.
In addition, internal environmental and quality audits in accordance with ISO standards are regularly conducted by internal
auditors qualified by the Company.
b. Each department reports the results of internal audits by the Internal Audit Department and the results of internal environmental
and quality audits in accordance with ISO standards to the Audit Committee at the meeting of the Joint Audit Conference, andinformation is also regularly shared with the Accounting Auditor.

-95-

④ Status of Accounting Auditsa. Name of the audit firm
Ernst & Young ShinNihon LLC
b. Continuous Audit Period
37 years(Note) The Company has had an audit engagement contract with Ernst & Young ShinNihon LLC since 1988 (known as Showa
Ota & Co at that time).
c.

Engagement certified public accountants
Designated Engagement Partner

Shigeru Sekiguchi

Designated Engagement Partner

Saori Nakata

d. Other personnel engaged in assisting the accounting audit
The Company's accounting audit operations are assisted by 5 certified public accountants and 14 others.
e. Audit Firm Selection Policy and Reasons
The Company has confirmed each item in the “Report to Audit Committee Members on the Accounting Auditor’s
Performance of Duties” and “Quality Control System” reported by the audit firm, and has determined that the accounting auditof the Company can be performed under appropriate quality control, and has decided to continue to employ (reappoint) the
audit firm.
If the Audit Committee determines that the dismissal or non-reappointment of the Accounting Auditor is necessary, such as
when there are impediments to the performance of the Accounting Auditor’s duties, the dismissal or non-reappointment of the
Accounting Auditor shall be the purpose of a General Meeting of Shareholders. In addition, the Audit Committee shall dismiss
the Accounting Auditor based on the consent of all Audit Committee Members if the Accounting Auditor is deemed to fallunder any of the items in Article 340, Paragraph 1 of the Companies Act. In this case, the Audit Committee Member selectedby the Audit Committee shall report the dismissal of the Accounting Auditor and the reasons for dismissal at the first General
Meeting of Shareholders convened after dismissal.
f. Evaluation of the audit firm by the Audit Committee
The Audit Committee conducts periodic reviews of audit firms, confirms the results of external evaluations by the Financial
Services Agency and the Japanese Institute of Certified Public Accountants, and formulates and confirms the “Checklist for
Determining the Adequacy of Audit Firm’s Audit” in accordance with the “Practical Guidelines for Auditors Concerning the
Evaluation of Accounting Auditors and the Formulation of Selection Standards” (Japan Audit & Supervisory Board Members
Association).We have determined that the audit firm is appropriate as the accounting auditor of the Company.

-96-

(4) Details of audit compensation, etc.
a. Compensation for Auditing Certified Public Accountants, etc.
Previous Consolidated Fiscal Year
Category

Consolidated fiscal year

Compensation based on Compensation based on Compensation based on Compensation based on
audit certification work
non-audit work
audit certification work
non-audit work
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)

Reporting company

42

－

42

－

Consolidated
Subsidiaries

－

－

－

－

Total

42

－

42

－

b. Compensation for organizations belonging to the same network (Ernst & Young) as auditing certified public accountants, etc.
(excluding a.)Previous Consolidated Fiscal Year
Category

Consolidated fiscal year

Compensation based on Compensation based on Compensation based on Compensation based on
audit certification work
non-audit work
audit certification work
non-audit work
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)

Reporting company

－

－

－

－

Consolidated
Subsidiaries

－

2

－

1

Total

－

2

－

1

The content of non-audit work at consolidated subsidiaries is entrusted with tax-related advisory services, which are nonaudit services (non-audit work) other than those stipulated in Article 2, Paragraph 1 of the Certified Public Accountants Act,and compensation is paid.
c. Details of compensation based on other important audit certification services
Not applicable.
d. Policy for Determining Audit Fees
Not applicable.
e. Reasons why the Audit Committee agreed to the Compensation of the Accounting Auditor
The Audit Committee gave its consent under Article 399, Paragraph 1 of the Companies Act to the fees, etc. for the
Accounting Auditor proposed by the Board of Directors on the grounds that it confirmed the Accounting Auditor’s audit teamstructure, audit plan, audit implementation status, audit remuneration estimates, etc. based on the Practical Guidelines for
Cooperation with Accounting Auditors issued by the Japan Audit & Supervisory Board Members Association, and determinedthat the fees, etc. for the Accounting Auditor were appropriate based on the result of comparisons with previous fees, etc.

-97-(4) Compensation of Officers, etc.
① Policy for determining the Compensation of Directors and Executive Officers by the Compensation Committee, and the detailsof such policy
The Company is a company with a Nominating Committee, etc., and remuneration for individual Directors and Executive
Officers is determined by a resolution of the Compensation Committee, the majority of which are Outside Directors.
The amount of remuneration, etc. for the Company’s officers for the fiscal year under review was thoroughly discussed andresolved by the Compensation Committee at a meeting held on June 20, 2023.
a) Basic Policy
The criteria for determining remuneration for Directors and Executive Officers takes into consideration their responsibilities
according to their position and their executive duties, the Company’s business performance, the business environment, and theworld’s standards, aiming to motivate them to improve the Group’s business performance and to contribute to increasing
shareholder value.
b) Specific Policies
Compensation for Directors and Executive Officers consists of fixed compensation, performance-linked compensation, andrestricted stock compensation. The ratio of basic compensation, performance-linked compensation, and restricted stockcompensation is 55%:30%:15% as a model case. However, the actual percentage of the payment may vary from person toperson. In accordance with the resolution of the Compensation Committee held on May 23, 2024 to introduce a restricted stockcompensation plan, the stock-based compensation system has been abolished. In addition, the compensation of outside
directors, who are independent of business execution, is not linked to business performance and is only fixed compensation.
Specifically, it is as follows.
a) Fixed Compensation
A certain amount of fixed remuneration is paid monthly based on each Director’s or Executive Officer’s position and dutiesb) Performance-linked compensation
Performance-based remuneration is paid to full-time Directors and Executive Officers as an incentive to continuously
improve performance each fiscal year, and the total amount is determined using the degree of achievement of consolidated
net sales and consolidated operating profit targets for the current fiscal year and the degree of improvement from the previous
fiscal year, as well as ROE, a management indicator valued by the Company, as evaluation indicators. Furthermore,
performance-based remuneration for Executive Officers is paid by evaluating the degree of achievement of individual targets
for the duties each Executive Officer is in charge of, in order to take into account as evaluation criteria the degree ofachievement of strategic targets that cannot be measured by financial performance figures, such as efforts to rebuild thebusiness foundation to achieve sustainable growth. The targets and results of the evaluation indicators for the fiscal years
ended March 31, 2023 and 2024 are as follows.
Fiscal Year Ended March 2023

Fiscal Year Ending March 2024

targets

targets

Evaluation indicators
results

results

Consolidated net sales(Millions of yen)

40,00043,27142,00040,052

Consolidated operating
profit (Millions of yen)

4,540

7,457

5,380

3,377

ROE(％)

7.8

12.1

8.4

5.6

-98-

c) Restricted stock compensation
In order for directors and executive officers to work with a strong awareness of the sustainable improvement ofshareholder value and corporate value over the medium to long term, we have clarified incentives and resolved to introduce
a restricted stock compensation plan at the Compensation Committee meeting held on November 18, 2022, with the aim ofsharing shareholder value with shareholders.
Eligible directors and executive officers shall pay all monetary claims paid by the Company under this plan as in-kind
contributions, and shall be issued or disposed of in the Company's Common shares. The paid-up amount per share shall be
determined by the Board of Directors on the basis of the closing price of the Company's common shares on the Tokyo Stock
Exchange (or, if the transaction is not concluded on the same day, the closing price of the most recent trading day prior tothe closing price) on the business day prior to the date of resolution of the Board of Directors, to the extent that the amountis not particularly favorable to the allotters who subscribe for the common shares. In addition, in issuing or disposing of theCompany's common shares under the Plan, the Company and the Allotment Target Party shall enter into a Restricted Stock
Allotment Agreement, which shall be as follows: (1) The Allotment directors and executive officers shall not transfer to athird party, establish a security interest, or otherwise dispose of the Company's common shares allotted under the Restricted
Stock Allotment Agreement for a certain period of time specified in advance; (2) In the event of certain events, the Company
may acquire the Common shares free of charge.
At the Compensation Committee meeting held on November 18, 2022, the Company resolved to introduce a restricted
stock compensation plan and abolished the stock compensation-type stock option plan.
② Reasons why the Compensation Committee determined that the details of individual compensation, etc., of directors andexecutive officers were in line with the determination policy.
The Compensation Committee held a total of ten meetings during the fiscal year under review. At its May and June 2023
meetings, the Compensation Committee discussed the Company’s performance for the previous fiscal year, the status ofachievement of performance targets by each officer, the evaluation of Executive Officers by Outside Directors, and theDepartment Target Progress Management Sheets and Performance Evaluation Sheets submitted by executive departmentsfrom both quantitative and qualitative perspectives, with respect to Directors who concurrently serve as Executive Officers
and Executive Officers. As a result of these discussions, the Compensation Committee believes that individual remuneration
for the current fiscal year which was determined based on the Compensation Committee’s review and agreement isappropriate as recognition of each officer’s contribution to the business performance of the previous fiscal year and as anincentive for the efforts toward the Company’s medium- to long-term growth. Accordingly, the Compensation Committee
has judged that the remuneration is in line with this policy.
③ Total amount of compensation, etc. by officer category, total amount by type of compensation, etc., and number of eligible
officers

Officer category

Total amount by type of compensation, etc. (Millions of yen)
Total amount ofcompensation,
Stock-basedetc.
PerformanceRestricted
Fixed
compensation(Millions of
based
Stock-based
Compensation
stock
yen)
compensationcompensation
optionNumber of
eligible
officers(persons)

Director(Excluding Outside Directors)

58

39

13

2

2

3

Executive Officer

281

122

109

12

37

11

Outside Director

51

51

－

－

－

6

(Notes) 1. The amount of compensation, etc., for two directors who concurrently serve as executive officers is included in the amountof compensation, etc. for each after separating compensation, etc. as a director and compensation as an executive officer.
2. The amount paid by Executive Officers does not include the salary of employees of Executive Officers who also serve as
employees.
3. With regard to stock-based compensation-type stock options, the system has been abolished except for those that havealready been granted in accordance with the resolution of the Compensation Committee held on November 18, 2022 to-99-

introduce a restricted stock compensation plan, and no new ones have been granted in the current fiscal year, but theamount of compensation recorded as expenses in the current fiscal year is stated for the amount granted in the previous
fiscal year.
4. Of the above, stock-based compensation-type stock options and restricted stock compensation fall under the category of
non-monetary compensation.

(5) Status of shareholdings① Criteria for and approach to the classification of investment sharesWith respect to the classification of investment shares held for the purpose of pure investment and investment shares held for
purposes other than pure investment, the Company holds business partners’ shares in the category of investment shares held for
purposes other than pure investment only when it deems it reasonable to hold such shares in order to facilitate business activities,
maintain business relationships, or form business and capital partnerships.
2 Investment shares held for purposes other than pure investment
a. Policy of shareholding, method for verifying the rationality of shareholding, and details of verification of the suitability ofholding individual shares by the Board of Directors, etc.
The Company’s basic policy is to continue to hold these shares as long as the Company determines that such holdings willcontribute to the development of its business. Each year, the Board of Directors verifies the significance of ownership bydiscussing whether the return (comprehensive judgment of significance in terms of management strategy and business
relationships, in addition to quantitative factors such as dividends and business transactions) and risk of ownership arecommensurate, taking into account the Company’s capital cost. The Company will proceed to sell stocks that are deemed tohave little significance to hold, taking into consideration stock price trends, etc. Regarding listed shares, as a result of reviews
conducted at the meeting of the Board of Directors held on April 28, 2023, the Company decided on a policy of continuing tohold two stocks for FY2023.
b. Number of issues and balance sheet

Unlisted Shares
Shares other than unlisted
stocksNumber of of the amount recorded on the
Stocksbalance sheet(Brand Name) Total amount (Millions of yen)
4
27
2

69

(Stocks whose number of shares increased in the current fiscal year)
Number of
Acquisition of an increase in
Stocksthe number of shares(Brand Name) Total value (Millions of yen)

Reasons for the increase in the number ofsharesUnlisted Shares

－

－

－

Shares other than unlisted
stocks－－－(Stocks whose number of shares decreased in the current fiscal year)
Number of
Stocks(Brand Name)

Sale of shares due to adecrease in the number ofsharesTotal value (Millions of yen)

Unlisted Shares－－

Shares other than unlisted
stocks

－

－

-100-

c. Information on number of shares, amounts in the balance sheet, etc., of specified investment shares and deemed investment
shares by individual shares
Specified investment shares

Issuing company

Current fiscal year

Previous fiscal year

Number of shares(Shares)Amounts in the

Number of shares(Shares)Amounts in the

consolidated balance consolidated balance
sheets(Millions of yen)
26,000Outline of purpose of holding, business alliances, Shareholdinetc., quantitative holding effects and the reason
g in thefor increasing the number of sharesCompany

sheets(Millions of yen)
26,000FALCOHOLDINGS CO.,
LTD.
60

51

3,643

3,643

H.U.
Group
Holdings, Inc.
8

9

- The company is a supplier of the Company’s
products, and the Company holds its shares tofacilitate business activities.
- The Company holds its shares based on acomprehensive assessment of the importance ofthe shares in terms of management strategy,
business relationships, etc. in addition todividends, transaction value, etc., taking into
account the Company’s capital cost. Although
the quantitative holding effects are not stated inconsideration of the relationship with thecompany, the holding effect is comprehensively
determined based on the above policy.
- The company is a transaction partner of theCompany’s products, and the Company holds its
shares to facilitate business activities.
- The Company holds its shares based on acomprehensive assessment of the importance ofthe shares in terms of management strategy,
business relationships, etc. in addition todividends, transaction value, etc., taking into
account the Company’s capital cost. Although
the quantitative holding effects are not stated inconsideration of the relationship with thecompany, the holding effect is comprehensively
determined based on the above policy.

Deemed investment Shares
Not applicable.
③ Investment shares held for pure investment purposes
Not applicable.

-101-

None

None

Ⅴ. Financial Statements
1. Consolidated Financial Statements and Methods of Preparation of Financial Statements(1) The Company's consolidated financial statements are prepared in accordance with the "Regulations on Terminology, Formats, andPreparation Methods for Consolidated Financial Statements" (Ordinance No. 51 of the Ministry of Finance No. 28 of 28).
(2) The Company's financial statements are prepared in accordance with the "Regulations on Terminology, Forms, and Preparation
Methods of Financial Statements" (Ordinance No. 59 of the Ministry of Finance of Showa 38).
2. Audit Certification
In accordance with the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act, the Company has
been audited by Ernst & Young ShinNihon LLC for its consolidated financial statements for the consolidated fiscal year (April 1,
2023 to March 31, 2024) and its financial statements for the 86th fiscal year (April 1, 2023 to March 31, 2024).
3. Special Efforts to Ensure the Appropriateness of Consolidated Financial Statements, etc.
The Company takes special measures to ensure the appropriateness of consolidated financial statements, etc. Specifically, in orderto establish a system that enables us to appropriately grasp the contents of accounting standards, etc., we have joined the Financial
Accounting Standards Organization to obtain information and participate in seminars sponsored by audit firms and variousorganizations.

-102-

1. Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements① Consolidated Balance Sheet(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsInvestments in leases

18,317

16,308

11,122

12,482337

337

Merchandise and finished goods

4,739

4,170

Work in process

1,940

2,035

Raw materials and supplies
Other

1,733
1,033

1,892
633

Allowance for doubtful accounts
Total current assets

(6)

(7)

39,21737,851

25,367(13,117)

25,811(13,821)

12,24911,989Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles

7,155

7,638

Accumulated depreciation(5,765)(6,115)

Machinery, equipment and vehicles, net

1,390

1,522

Tools, furniture and fixtures

5,027

5,371

Accumulated depreciation(3,950)(4,374)Tools, furniture and fixtures, net

1,076

996

1,928
329

1,928
286

Accumulated depreciation

(154)

(133)

Leased assets, net

174

153

Construction in progress

382

414

17,202

17,005

1,054

792

Land
Leased assets

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

586

597

Long-term time deposits
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts

4,900
1,448
551
1,349
(34)

1,900
1,821
356
1,349
(23)

Total investments and other assets

8,802

6,001

27,05823,79966,27561,651

Total non-current assets
Total assets-103-

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

4,685
2,933

4,648
2,759

Lease liabilities

390

384

Income taxes payable
Provision for bonuses

827
766

674

Other

2,839

2,885

Total current liabilities

12,443

11,351

Non-current liabilities
Bonds payable

3,000

3,000

Lease liabilities

919

951

Asset retirement obligations
Other

34
342

35
342

4,296

4,329

Total liabilities

Total non-current liabilities

16,74015,680Net assets
Shareholders' equity
Share capital

6,897

6,897

Capital surplus
Retained earnings
Treasury shares

8,076
36,865(3,095)

7,892
35,801(5,686)

Total shareholders' equity

48,74344,904

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

28
268
115

35
353
319

Total accumulated other comprehensive income

411

708

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

-104-

380

358

49,53545,971

66,27561,651② Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales

43,27140,052

Cost of sales

22,76523,328Gross profit

20,506

16,723

Selling, general and administrative expenses

13,04913,345

Operating profit

7,457

3,377

Non-operating income
Interest income

158Dividend income

3

4

Rental income

1818Compensation income for damage
Compensation income

38
8

5

Outsourcing service income

910

Subsidy income
Foreign exchange gains
Other

10
14
35

155
50
31

Total non-operating income

154

284

Non-operating expenses
Interest expenses

16

17

Loss on redemption of investment securities
Compensation expenses
Commission for purchase of Treasury shares

13
9
-

70

Other

3

6

Total non-operating expenses

42

93

7,568

3,568

Gain on sale of non-current assets
Gain on sale of investment securities

24
56

1
-

Total extraordinary income

81

1

57

66

Ordinary profit
Extraordinary income

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

57

66

Profit before income taxes

Total extraordinary losses

7,592

3,503

Income taxes - current
Income taxes - deferred

1,758
97

767
101

Total income taxes

1,856

869

Profit

5,736

2,634

-

-

5,736

2,634

Profit attributable to non-controlling interests
Profit attributable to owners of parent-105-Consolidated Statement of Comprehensive Income(Millions of yen)
For the fiscal year
ended March 31, 2023
Profit

For the fiscal year
ended March 31, 2024

5,736

Other comprehensive income
Valuation difference on available-for-sale securities

2,634

(5)

7

9

84

Remeasurements of defined benefit plans, net of tax

(144)

204

Total other comprehensive income

(140)

296

5,595

2,931

5,595

2,931

-

-

Foreign currency translation adjustment

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-106-Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase ofTreasury shares
Disposal ofTreasury shares
Cancellation ofTreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

6,897

8,000

Retainedearnings

Treasury shares

Total
shareholders'equity(3,126)44,93433,162(2,033)(2,033)

5,736

5,736

75

(0)

(0)

30

105
-

-

75

3,703

30

3,808

6,897

8,076

36,865(3,095)48,743

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements accumulated Share acquisition Total net assets
difference onrightstranslationof defined
otheravailable-foradjustment
benefit plans comprehensive
sale securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase ofTreasury shares
Disposal ofTreasury shares
Cancellation ofTreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

33

258

259

551

316

45,803(2,033)
5,736
(0)
105
(5)

9

(144)

(140)

63

(76)

(5)

9

(144)

(140)

63

3,731

28

268

115

411

380

49,535-107-

For the fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase ofTreasury shares
Disposal ofTreasury shares
Cancellation ofTreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

6,897

8,076

Retainedearnings

Treasury shares

Total
shareholders'equity(3,095)48,74336,865(1,927)(1,927)

2,634

2,634

58

(4,636)(4,636)

32

91

(242)

(1,771)

2,013

-

-

(183)

(1,064)(2,590)(3,838)

6,897

7,892

35,801(5,686)44,904

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements accumulated Share acquisition Total net assets
difference onrightstranslationof defined
otheravailable-foradjustment
benefit plans comprehensive
sale securities
incomeBalance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase ofTreasury shares
Disposal ofTreasury shares
Cancellation ofTreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

28

268

115

411

380

49,535(1,927)
2,634(4,636)
91
7

84

204

296

(22)

274

7

84

204

296

(22)

(3,564)

35

353

319

708

358

45,971-108-

Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Cash flows from operating activities
Profit before income taxes
Depreciation

7,592
2,125

3,503
2,326

21

(9)

Increase (decrease) in provision for bonuses

(10)

(92)

Decrease (increase) in retirement benefit asset
Share-based payment expenses

(118)
63

(57)
15

Interest and dividend income

(18)

(12)

Interest expenses
Foreign exchange losses (gains)

16
0

17
0

Compensation income

(8)

(5)

Compensation expenses
Subsidy income
Loss (gain) on sale and retirement of property, plantand equipment
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets

9
(10)

(155)

33

61

(56)
835
(180)
(533)

(1,355)322
510

Decrease (increase) in other investments
Increase (decrease) in trade payables

2
161

(1)
(212)

Increase (decrease) in other current liabilities
Other, net

(111)
(28)

343
220

Subtotal

9,785

5,417

Interest and dividends received
Interest paid

23
(16)

12
(17)

Proceeds from insurance income
Income taxes paid
Income taxes refund

4(2,224)3

4(1,610)-

Increase (decrease) in allowance for doubtful accounts

Net cash provided by (used in) operating activities

7,575

3,806

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for retirement of non-current assets
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Other payments(3,206)
27
(72)
(17)
61
3,000
(5,253)
5,224
(100)
100
(79)

(1,976)
8
(114)
(63)
(2,341)
2,279
(31)
31
(6)

Net cash provided by (used in) investing activities(316)(2,216)-109-

(Millions of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Cash flows from financing activities
Purchase of Treasury shares(0)(4,707)(2,033)(62)(1,927)(59)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(2,095)(6,694)

0

6

5,164

(5,098)Cash and cash equivalents at beginning of period

10,90016,064

Cash and cash equivalents at end of period

16,064

10,966

Dividends paid
Other, net-110-Notes(Material basis for the preparation of consolidated financial statements)
1. The scope of consolidation(1) Number and name of consolidated subsidiaries: 2
EIKEN CHINA CO., LTD.
EIKEN MEDICAL AMERICA INC.
As EIKEN MEDICAL AMERICA INC. was newly established in the consolidated fiscal year under review, it is included in
the scope of consolidation.
(2) Number and name of the principal non-consolidated subsidiary
Not applicable.
2. Equity method
Not applicable.
3. Accounting period of consolidated subsidiaries
Of the consolidated subsidiaries, the fiscal closing date of EIKEN CHINA CO., LTD. is December 31.
Consolidated financial statements are prepared by implementing closing (provisional closing) in accordance with reasonable
procedures based on formal closing.
The fiscal closing date of the other consolidated subsidiary is in line with the consolidated fiscal closing date.
4. Accounting policies(1) Valuation standards and methods for significant assets① Securities
a. Held-to-maturity debt securities
Stated at amortized cost (straight-line method)b. Available-for-sale securities
Securities other than shares, etc., which do not have a market priceMarket value method(The valuation difference is directly included in net assets, and cost of sales is determined by the moving-average method.)
Shares, etc., which do not have a market pricePrincipally the cost method by the moving-average method② Derivative financial instruments
Market value method③ Inventories
Merchandise and finished goods, raw materials, and work in process
Cost method by the moving-average method (carrying amount on the consolidated balance sheet calculated by writing down
values based on decreased profitability) is adopted.
Supplies
Cost method by the last purchase price method (carrying amount on the consolidated balance sheet calculated by writing
down values based on decreased profitability) is adopted.

-111-

(2) Depreciation method of significant depreciable assets① Property, plant and equipment (excluding leased assets)
The Company and its domestic consolidated subsidiaries adopt the declining-balance method, and overseas consolidated
subsidiaries adopt the straight-line method.
However, the straight-line method is adopted for buildings purchased on or after April 1, 1998 (excluding facilities attached tobuildings), and for facilities attached to buildings and structures purchased on or after April 1, 2016.
Major useful lives are as follows:
Buildings and structures: 7-40 years
Machinery, equipment, and vehicles: 4-10 years
Tools, furniture and fixtures 2-15 years② Intangible assets (excluding leased assets)
Straight-line method
For internal use software, the straight-line method based on amortization over the internally estimated useful lives (5 years)
is adopted.
③ Leased assets
Leased assets are depreciated over the lease terms as useful lives using the straight-line method without any residual value.
(3) Accounting standards for significant reserves and allowances① Allowance for doubtful accounts
In order to prepare for possible credit losses on trade receivables, etc., the estimated amount of non-recoverable receivables
based on the historical loss rate for general receivables and specific collectability for specific doubtful receivables are recorded.
② Provision for bonuses
In order to prepare for payments of bonuses to the employees, the estimated payable amount to be used in the future attributable
to the consolidated fiscal year under review is recorded as provision for bonuses.
(4) Accounting method for retirement benefits① Period attribution method for estimated retirement benefits
In calculating retirement benefit obligations, the method of attributing the estimated amount of retirement benefits to the periods
up to the end of the consolidated fiscal year under review is based on the benefit formula basis.
② Accounting method for actuarial difference and past service cost
Past service cost is expensed using the straight-line method over a period of definite years (3 years) within the employees’
average remaining service years at the time when it is incurred.
Actuarial differences are accounted for as expenses over a certain number of years within the average remaining years of serviceof the corresponding employees (12 years) using the straight-line method, commencing with the consolidated fiscal year
following the one in which they were incurred.
③ The accounting methods of unrecognized actuarial gain and loss and unrecognized past service cost
For the accounting methods of unrecognized actuarial gain and loss and unrecognized past service cost, after adjusting tax
effect, they are recorded as remeasurements of defined benefit plans under accumulated other comprehensive income in net assets.
(5) Significant revenue and expense recognition standards① Sales of merchandise and finished goods
Sales of merchandise and finished goods include the manufacture and sale of clinical diagnostic reagents and clinical diagnostic
equipment. The Company principally recognizes revenue from sales of merchandise and finished goods when making deliveryof the goods to a customer as it satisfies a performance obligation by transferring control of the goods to a customer based onreceipt of the goods. For clinical diagnostic equipment which requires installation at the time of sale, the Company recognizes
revenue at inspection of installed equipment as it satisfies a performance obligation by transferring control of the goods to acustomer based on inspection by a customer.
② Royalty revenue
Royalty revenue includes upfront payment based on license agreement etc., milestone revenues, and running royalty calculated
based on net sales etc. For upfront payment, the Company recognizes revenue at customers’ receipt of the right which theCompany promised to transfer to a customer based on the contract. For milestone revenues, the Company recognizes revenue at-112-

achievement of the milestone defined in the contract. For running royalty calculated based on net sales etc., the Company
recognizes revenue when sales or usage occur, or it satisfies a performance obligation for which sales-based or usage-based
royalty is allocated, whichever is later.
(6) Translation of significant foreign currency denominated assets and liabilities into Japanese yen
Foreign currency denominated monetary receivables and payables are translated into Japanese yen using the spot exchange rateon the closing date and the translation difference is charged or credited to income. The assets, liabilities, income, and expenses ofoverseas subsidiaries and affiliates are translated into yen at the year-end spot exchange rate, and translation adjustments areincluded in foreign currency translation adjustments in net assets.
(7) Significant hedge accounting method① Hedge accounting method
The appropriation procedure is adopted to foreign exchange fluctuation risk hedging that satisfies the relevant requirements.
② Hedging instruments and hedged items, hedging policy
The risks of foreign exchange fluctuation are hedged in accordance with the Company’s rules.
Hedging instruments and hedged items where hedge accounting was applied for the consolidated fiscal year under review are
as follows.
Hedging instruments: Forward exchange contracts
Hedged items:

Foreign currency denominated accounts payable, foreign currency denominated accounts payable other③ Assessment of hedge effectivenessFor forward exchange contracts, hedged items with the same date and amount and denominated in the same currency areallocated to each account payable, accounts payable – other. Therefore, the correlation by foreign exchange fluctuation thereafteris ensured completely, and the assessment of hedge effectiveness is omitted.

-113-

(8) Funds covered by consolidated statements of cash flows
Funds (cash and cash equivalents) as used in the consolidated statements of cash flows comprises cash on hand, deposits
available for withdrawal as needed, and short-term investments due for redemption within three months from the date ofacquisition, which are easily cashable and are subject to minimal risk of fluctuation in value.
(Important Accounting Estimates)
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Valuation of inventories① Amount recorded in the consolidated financial statements for the current consolidated fiscal year
(Millions of yen)Previous Consolidated
Fiscal Year

Consolidated fiscal year

Merchandise and finished
goods

4,673

4,739

Work in process

1,736

1,940

1,821

1,733

Raw
materials
suppliesand② Information on the contents of important accounting estimates related to the identified items
The Group calculates inventories by devaluation of inventories due to a decline in profitability, and if the net sale price at theend of the consolidated fiscal year is lower than the acquisition cost, the net sale price is used as the balance sheet value. In
addition, we estimate the quantity that will be consumed or sold in the future based on the average consumption or sales
volume of each item in the past, and for inventories that are not expected to be sold by the use-by or shipping deadlines, thebook value is reduced to the expected disposal value as inventory assets such as backlog or expected disposal that are outside
the business cycle process. In addition, if the turnover period exceeds a certain period, future consumption or sales forecasts are
estimated separately, and if a decrease in profitability is recognized, the book value is reduced to the expected disposal value.
In addition, if the volume to be consumed or sold in the future or the forecast for future consumption or sales changes due tochanges in the market environment, the amount of write-downs in the consolidated financial statements for the following
consolidated fiscal year may be materially affected.

-114-

Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)
Valuation of inventories(1) Amount recorded in the consolidated financial statements for the current consolidated fiscal year
(Millions of yen)Previous Consolidated
Fiscal Year

Consolidated fiscal year

Merchandise and finished
goods

4,739

4,170

Work in process

1,940

2,035

1,733

1,892

Raw
materials
suppliesand(2) Information on the contents of important accounting estimates related to the identified items
The Group calculates inventories by devaluation of inventories due to a decline in profitability, and if the net sale price at theend of the consolidated fiscal year is lower than the acquisition cost, the net sale price is used as the balance sheet value. In
addition, we estimate the quantity that will be consumed or sold in the future based on the average consumption or sales
volume of each item in the past, and for inventories that are not expected to be sold by the use-by or shipping deadlines, thebook value is reduced to the expected disposal value as inventory assets such as backlog or expected disposal that are outside
the business cycle process. In addition, if the turnover period exceeds a certain period, future consumption or sales forecasts are
estimated separately, and if a decrease in profitability is recognized, the book value is reduced to the expected disposal value.
In addition, if the volume to be consumed or sold in the future or the forecast for future consumption or sales changes due tochanges in the market environment, the amount of write-downs in the consolidated financial statements for the following
consolidated fiscal year may be materially affected.
(Unapplied Accounting Standards, etc.)
・"Accounting Standards for Corporate Tax, Resident Tax, Business Tax, etc." (Corporate Accounting Standards No. 27, October28, 2022)
・"Accounting Standards for Comprehensive Income" (Accounting Standards for Enterprises No. 25, October 28, 2022)
・"Guidelines for the Application of Accounting Standards for Tax Effect Accounting" (Guidelines for the Application of
Corporate Accounting Standards No. 28, October 28, 2022)(1) Overview
It stipulates the classification of corporate income when taxed on other comprehensive income and the treatment of tax
effects related to the sale of shares of subsidiaries when the group corporate tax system is applied.
(2) Effective date
It is scheduled to be applied from the beginning of the fiscal year ending March 2025.
(3) Impact of the application of such accounting standards, etc.
The amount of the impact of the application of the "Accounting Standards for Corporation, Inhabitant and Business Taxes" on
consolidated financial statements, etc., is currently being assessed.

-115-

(Notes to Consolidated Balance Sheets)*1. Receivables from contracts with customers in notes and accounts receivable - trade and contract assets are as follows.
(Millions of yen)
As of March 31, 2023
497

802

10,398

11,440Notes
Accounts receivable - trade

As of March 31, 2024

*2. Contract liabilities in other is as follows.
(Millions of yen)
As of March 31, 2023
Contract liability

As of March 31, 2024
30

62

*3. Regarding accounting policies for notes maturing on the last day of the consolidated fiscal year, although the last day of theconsolidated fiscal year under review was a holiday for financial institutions, the notes are treated as if the settlement was made on
the maturity date.
Notes maturing on the last day of the consolidated fiscal year under review are as follows.
(Millions of yen)
As of March 31, 2023
Notes
4.

As of March 31, 2024
17-

Overdraft contracts and commitment lines are concluded for efficient procurement of working capital. The balance of unexecutedloans based on these contracts is as follows.
(Millions of yen)
As of March 31, 2023
Total of overdraft maximum amount andcommitment lines
Outstanding borrowings
Difference-116-

As of March 31, 2024
5,400

4,600

5,400

4,600

(Notes to Consolidated Statements of Income)*1 Revenue generated from contracts with customers
Net sales are not divided into revenues generated from contracts with customers and other revenues. The amount of revenue
generated from contracts with customers is described in the consolidated financial statements "Notes (Revenue Recognition
Relationship) 1. Information on Revenue Arising from Contracts with Customers."*2. Ending inventory is the amount after being written down due to decreased profitability, and the following loss on valuation of
inventory (the amount after offset of reversal with reversal method), is included in total cost of sales.
(Millions of yen)
For the fiscal year
For the fiscal year
ended March 31, 2024
ended March 31, 2023
310
114
*3. The main expense items and amounts of selling, general and administrative expenses are as follows.
(Millions of yen)
For the fiscal year
ended March 31, 2024

For the fiscal year
ended March 31, 2023
Salaries

2,268

2,526

Provision for bonuses

400

353

Retirement benefit expenses

76

112

4,065

3,939

21

(1)

Research and development expenses
Provision of
accounts

allowancefordoubtful*4. Research and development expenses included in general and administrative expenses, and manufacturing costs incurred during theperiod are as follows.
(Millions of yen)
For the fiscal year
For the fiscal year
ended March 31, 2024
ended March 31, 2023
4,065
3,939
*5 The details of gains on the sale of fixed assets are as follows.
(Millions of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024－

0

Tools, furniture and fixtures

0

0

Land

24

－

Total

24

1

Machinery, equipment and vehicles-117-*5. Description of loss on sale and retirement of non-current assets is as follows.
(Millions of yen)
For the fiscal year
ended March 31, 2024

For the fiscal year
ended March 31, 2023
Buildings and structures

015

Machinery, equipment and vehicles

91

Tools, furniture and fixtures

16

0

Software-3

Dismantlement cost
Total

30
57

46
66

(Notes to Consolidated Statements of Comprehensive Income)*1. Reclassification adjustment and tax effect relating to other comprehensive income(Millions of yen)
For the fiscal year
ended March 31, 2023
Valuation difference on available-for-sale securities:
Amount incurred during the period
Reclassification adjustment
Before tax effect adjustment
Tax effect
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment:
Amount incurred during the period
Remeasurements of defined benefit plans, net of tax:
Amount incurred during the period
Reclassification adjustment
Before tax effect adjustment
Tax effectRemeasurements of defined benefit plans, net oftax
Total other comprehensive income-118-

For the fiscal year
ended March 31, 2024

(0)
(6)
(7)
2

11
11
(3)

(5)

7

9

84

(182)
(25)
(208)
63

315
(20)
294
(90)

(144)

204

(140)

296

(Notes to Consolidated Statements of Changes in Net Assets)
For the fiscal year ended March 31, 2023
1. Class and total number of issued shares and class and total number of Treasury shares(Shares)Number of shares at
beginning of period

Increase during
periodDecrease during
periodNumber of shares at
end of period

Issued shares
Common shares
Total

43,541,438－－

43,541,438

43,541,438－－

43,541,438

6,576,861

44

64,2806,512,625

6,576,861

44

64,2806,512,625

Treasury shares
Common shares(Notes 1,2)
Total
(Notes)1. The increase in treasury shares by 44 shares of common shares is due to the purchase of shares of less than one unit.
2. The decrease in treasury shares by 64,280 shares of common shares is due to the disposal of Treasury shares as restricted
stock units.

2. Share acquisition rights and treasury share acquisition rights

Category

The Company(Parent
company)

Description of Shareacquisition rights

Share acquisition rights
as stock options
Total

Number of shares for Share acquisition rights (Share) Balance atClass of sharesthe end of the
Numberoffor Share
Number of
periodshares at
Increase
Decreaseacquisition
shares at end (Millions of
beginning of during period during periodrightsof period
yen)
period

－

－

－

－

－

380

－

－

－

－

－

380

-119-

3. Dividends(1) Cash dividends paid
Total cash

(Resolution)

Class ofsharesdividends

Dividend per share(Yen)

Record date

Effective date(Millions of yen)
April 28, 2022 Boardof Directors meeting

Commonshares1,145

31March 31, 2022

June 6, 2022

October 27, 2022
Board of Directors
meeting

Commonshares887

24

September 30, 2022

December 1, 2022

(2) Dividends for which the record date falls in the current period, but the effective date falls in the following period(Resolution)

Class ofsharesTotal cash
dividends(Millions ofyen)

DividendsourceDividend pershare (Yen)Record date

Effective date

April 28, 2023 Boardof Directors meeting

Commonshares999

Retainedearnings

27

March 31, 2023

June 8, 2023

-120-

For the fiscal year ended March 31, 2024
1. Class and total number of issued shares and class and total number of Treasury shares(Shares)Number of shares at
beginning of period

Increase during
periodDecrease during
periodNumber of shares at
end of period

Issued shares
Common shares(Note 1)
Total

43,541,438－

3,500,000

40,041,438

43,541,438－

3,500,000

40,041,438

6,512,625

2,500,000

3,569,117

5,443,508

6,512,625

2,500,000

3,569,117

5,443,508

Treasury shares
Common shares(Notes 2,3)
Total
(Notes)1. The decrease in total number of issued shares by 3,500,000 shares of common shares is due to the cancellation of Treasury
shares based on a resolution of the Board of Directors.
2. The increase in treasury shares by 2,500,000 shares of common shares is due to the purchase of Treasury shares based ona resolution of the Board of Directors.
3. The decrease in treasury shares by 3,569,117 shares of common shares is due to the 3,500,000 share decrease caused by
the cancellation of Treasury shares based on a resolution of the Board of Directors, the 35,417 share decrease caused by
the disposal of Treasury shares as restricted stock units, and the 33,700 share decrease caused by the exercise of stock
options.

2. Share acquisition rights and treasury share acquisition rights

Category

The Company(Parent
company)

Description of Shareacquisition rights

Share acquisition rights
as stock options
Total

Number of shares for Share acquisition rights (Share) Balance atClass of sharesthe end of the
Number offor Share
Number of
periodshares at
Increase
Decreaseacquisition
shares at end (Millions of
beginningofduringperiodduringperiodrightsof period
yen)
period

－

－

－

－

－

358

－

－

－

－

－

358

-121-

3. Dividends(1) Cash dividends paid
Total cash

(Resolution)

Class ofsharesdividends

Dividend per share(Yen)

Record date

Effective date(Millions of yen)
April 28, 2023 Boardof Directors meeting

Commonshares999

27

March 31, 2023

June 8, 2023

October 26, 2023
Board of Directors
meeting

Commonshares927

25

September 30, 2023

December 1, 2023

(2) Dividends for which the record date falls in the current period, but the effective date falls in the following period(Resolution)

Class ofsharesTotal cash
dividends(Millions ofyen)

DividendsourceDividend pershare (Yen)Record date

Effective date

May 9, 2024 Boardof Directors meeting

Commonshares899

Retainedearnings

26

March 31, 2024

June 7, 2024

(Notes to Consolidated Statements of Cash Flows)*1. Relationship between cash and cash equivalents at end of year and account items listed in the consolidated balance sheets(Millions of yen)
For the fiscal year ended
March 31, 2023
Cash and deposits
Time deposits with deposit terms of
more than three months
Cash and cash equivalents

For the fiscal year ended
March 31, 2024

18,317

16,308(2,253)(5,341)

16,064

10,966(Lease transactions)(Lessee)
1. Finance lease transactions
Finance leases wherein ownership of the leased asset does not transfer to the lessee1) Description of leased assets
Property, plant and equipment
Research and development facility, tools, furniture and fixtures, and machinery, equipment and vehicles
2) Depreciation method of leased assets
As described in “(2) Depreciation method of significant depreciable assets under 4. Accounting policies” of (Material basis forthe preparation of consolidated financial statements).

-122-

2. Operating lease transactions
Future lease payments under non-cancelable operating lease transactions(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Within one year

238

252

Over one year

171

241

Total

410

494

(Lessor)Finance lease transactions(1) Description of investments in leases
1) Current assets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Lease receivables

356

359

Interest income equivalents

(18)

(21)

Investments in leases

337

337

2) Investments and other assets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Lease receivables

814

867

Interest income equivalents

(27)

(35)

Investments in leases

786

832

-123-

(2) Scheduled amount of debt recovery after the closing date for lease receivables associated with investments in leases
1) Current assets(Millions of yen)
As of March 31, 2023
Due in one
year or lessDue after one
year throughtwo years

Due after two
years throughthree years

Due after three Due after four
years through years throughfour years
five years

Lease receivables

－

－

－

－

－

－

Investments in leases

356

－

－

－

－

－

Due after fiveyears(Millions of yen)
As of March 31, 2024
Due in one
year or lessDue after one
year throughtwo years

Due after two
years throughthree years

Due after three Due after four
years through years throughfour years
five years

Lease receivables

—

－

－

－

－

－

Investments in leases

359

－

－

－

－

－

Due after fiveyears2) Investments and other assets(Millions of yen)
As of March 31, 2023
Due in one
year or lessDue after one
year throughtwo years

Due after two
years throughthree years

Due after three Due after four
years through years throughfour years
five years

Lease receivables

－

—

－

－

－

－

Investments in leases

－

283

242

168

77

41

Due after fiveyears(Millions of yen)
As of March 31, 2024
Due in one
year or lessDue after one
year throughtwo years

Due after two
years throughthree years

Lease receivables

－

－

－

－

－

－

Investments in leases

－

318

241

151

78

77

-124-

Due after three Due after four
years through years throughfour years
five years

Due after fiveyears(Financial Instruments)
1. Matters related to the status of financial instruments(1) Policy on Financial Instruments
The Group manages surplus funds through highly safe financial instruments, and basically procures working capital and capital
expenditures through cash on hand (retained earnings such as profits) and accounts receivable trusts (securitization of receivables).
Derivatives trading is used for the purpose of avoiding risks due to future exchange rate fluctuations and managing surplus funds,
and it is our policy not to engage in speculative trading.
(2) Details of financial products, their risks, and risk management system
All bills receivable and accounts receivable, which are trade receivables, are due to be collected within one year. These are subject
to the credit risk of our customers, but with regard to this risk, we manage the due date and balance management of each business
partner in accordance with the Group's credit management regulations, and we have a system in place to grasp the credit status of
our main business partners on a yearly basis.
Bonds held to maturity are subject to only high-rated bonds in accordance with internal rules that stipulate trading authority andtransaction limits, so credit risk is minimal.
Securities and investment securities are mainly stocks and bonds, which are subject to the risk of fluctuations in market prices,and the Company has a system in place to regularly monitor market prices and the financial condition of issuers with respect tosuch risks.
Long-term deposits are highly secure because the principal amount is paid in full at maturity.
All bills and accounts payable, which are trade payables, and electronically recorded payables, are due within one year. Theseassets are subject to liquidity risk (the risk of not being able to make payments on the due date), and with regard to this risk, theGroup has a system in place to manage liquidity risk by preparing a monthly cash flow plan and maintaining liquidity on hand.
Corporate bonds and lease obligations related to finance and lease transactions are mainly intended to procure funds necessary
for capital investment and business investment.
The execution and management of derivatives transactions is carried out by the department in charge of funds with the approvalof the person with the authority to approve derivatives transactions in accordance with internal rules that stipulate trading authority
and transaction limits.

-125-

2. Fair value, etc. of financial instruments
The amount recorded on the consolidated balance sheet, the market value, and the difference between them are as follows.
Previous Consolidated Fiscal Year (March 31, 2023)
Consolidated Balance Sheet
Accounts(Millions of yen)

Market priceDifference(Millions of yen) (Millions of yen)

(1) Marketable securities and investment securities(*2)(1) Bonds held to maturity

500

478

(22)

(2) Other marketable securities

60

60

－

(2) Long-term deposits

4,900

4,900

0

(3) Bonds payable(3,000)(2,985)(14)(4) Lease obligation (*3)

(1,310)(1,314)3(5) Derivatives trading (*4)

－

－

－

Account recorded as liabilities are shown in parentheses.
(*1) "Cash and deposits," "Notes receivable, accounts receivable and contract assets," "Notes payable and accounts payable,"and "Electronically recorded liabilities" are omitted because they are cash and the market value approximates thebook value because they are settled in a short period of time.
(*2) Stocks, etc. without a market value are not included in "(1) Securities and investment securities." The amount recordedon the consolidated balance sheet of the financial instruments is as follows.
Division

Previous consolidated fiscal year
(Millions of yen)

Unlisted Shares

25(*3)Lease obligations are the total of current liabilities (lease obligations) and fixed liabilities (lease obligations).
(*4) Derivatives transactions
Hedging of the risk of exchange rate fluctuations in derivatives transactions is included in the market value ofaccounts payable because it is processed as an integral part of accounts payable that is subject to hedge (see (*1)
above).

-126-

Consolidated fiscal year under review (March 31, 2024)
Consolidated Balance Sheet
Accounts(Millions of yen)

Market priceDifference(Millions of yen) (Millions of yen)

(1) Marketable securities and investment securities(*2)(1) Bonds held to maturity

500

484

(16)

(2) Other marketable securities

69

69

－

(2) Long-term deposits

1,900

1,900

0

(3) Bonds payable(3,000)(2,997)(2)(4) Lease obligation (*3)

(1,335)(1,340)

4

－

－

－

(5) Derivatives trading (*4)

Account recorded as liabilities are shown in parentheses.
(*1) "Cash and deposits," "Notes receivable, accounts receivable and contract assets," "Notes payable and accounts payable,"and "Electronically recorded liabilities" are omitted because they are cash and the market value approximates thebook value because they are settled in a short period of time.
(*2) Stocks, etc. without a market value are not included in "(1) Securities and investment securities." The amount recordedon the consolidated balance sheet of the financial instruments is as follows.
Division

Previous consolidated fiscal year
(Millions of yen)

Unlisted Shares

27(*3)Lease obligations are the total of current liabilities (lease obligations) and fixed liabilities (lease obligations).
(*4) Derivatives transactions
Hedging of the risk of exchange rate fluctuations in derivatives transactions is included in the market value ofaccounts payable because it is processed as an integral part of accounts payable that is subject to hedge (see (*1)
above).

-127-

3. Scheduled amount of redemption of monetary claims and maturing securities after the consolidated settlement datePrevious Consolidated Fiscal Year (March 31, 2023)
Over 1 year, Over 5 years,
Under a year
(Millions ofyen)Over 10 years
under 5 years under 10 years(Millions(Millions(Millionsof yen)of yen)of yen)Cash and deposits

18,317－－－

Notes and accounts receivable - trade, and contract assets

11,122

－

－

－

－

4,900

－

－

Bonds payable

－

－

200

－

Other

－

－

300

－

29,439

4,900

500

－

Long-term time deposits
Securities and Investment securities
Bonds Held to Maturity

Total
Consolidated fiscal year under review (March 31, 2024)

Over 1 year, Over 5 years,
Under a year
(Millions ofyen)Over 10 years
under 5 years under 10 years(Millions(Millions(Millionsof yen)of yen)of yen)Cash and deposits

16,308－－－Notes and accounts receivable - trade, and contract assets

12,482

－

－

－

－

1,900

－

－

Bonds payable

－

－

200

－

Other

－

300

－

－

28,790

2,200

200

－

Long-term time deposits
Securities and Investment securities
Bonds Held to Maturity

Total

-128-

4. Scheduled repayment of corporate bonds, long-term borrowings, lease obligations, and other interest-bearing debt after the
consolidated closing datePrevious Consolidated Fiscal Year (March 31, 2023)

Under a year
(Millions ofyen)Over 1 year, Over 2 years, Over 3 years, Over 4 years,
under 2 years under 3 years under 4 years under 5 years(Millions of(Millions of (Millions of (Millions of
yen)
yen)
yen)
yen)

Over 5 years(Millions ofyen)

Bonds payable

－

－

－

3,000

－

－

Lease obligation

390

307

260

175

81

94

Total

390

307

260

3,175

81

94

Consolidated fiscal year under review (March 31, 2024)
Under a year Over 1 year, Over 2 years, Over 3 years, Over 4 years,
Over 5 years
under 5 years(Millions of under 2 years under 3 years under 4 years(Millions of (Millions of(Millions of (Millions of (Millions of
yen)
yen)
yen)
yen)
yen)
yen)
Bonds payable

－

－

3,000

－

－

－

Lease obligation

384

338

254

154

79

124

Total

384

338

3,254

154

79

124

-129-

3. Breakdown of fair value by level within the fair value hierarchy
The fair value of financial instruments is classified into the following three levels according to the observability and materiality of
inputs used to measure fair value.
Level 1 fair value: Fair value measured using observable inputs, i.e. quoted prices in active markets for assets or liabilities that are
the subject of the measurement
Level 2 fair value: Fair value measured using observable inputs other than Level 1 inputs
Level 3 fair value: Fair value measured using unobservable inputs
If multiple inputs are used that are significant to the fair value measurement, the fair value measurement is categorized in its
entirety in the level of the lowest level input that is significant to the entire measurement.
(1) Financial instruments recorded on the consolidated balance sheet at market value
Previous Consolidated Fiscal Year (March 31, 2023)
Market price (Millions of yen)division
Level 1

Level 2

Level 3

Total

Securities and investment
securities
Other Securities
SharesTotal assets

60

－

－

60

60

－

－

60

Consolidated fiscal year under review (March 31, 2024)
Market price (Millions of yen)division
Level 1

Level 2

Level 3

Total

Securities and investment
securities
Other Securities
SharesTotal assets

69

－

－

69

69

－

－

69

-130-

(2) Financial instruments other than those recorded on the consolidated balance sheet at market value
Previous Consolidated Fiscal Year (March 31, 2023)
Market value (Millions of yen)
Level 1

Level 2

Level 3

Total

Securities andInvestment securities
Bonds Held to Maturity
－

478

－

478

Long-term time deposits

－

4,900

－

4,900

Total assets

－

5,378

－

5,378

Bonds payable

－

2,985

－

2,985

Lease obligation

－

1,314

－

1,314

Derivatives trading

－

－

－

－

－

4,299

－

4,299

Bonds payable

Total liabilities

Consolidated fiscal year under review (March 31, 2024)
Market value (Millions of yen)
Level 1

Level 2

Level 3

Total

Securities andInvestment securities
Bonds Held to Maturity
－

484

－

484

Long-term time deposits

－

1,900

－

1,900

Total assets

－

2,384

－

2,384

Bonds payable

－

2,997

－

2,997

Lease obligation

－

1,340

－

1,340

Derivatives trading

－

－

－

－

－

4,337

－

4,337

Bonds payable

Total liabilities(Note) Explanation of the valuation technique used to calculate the market value and the inputs related to the calculation of
the market value-131-

Securities and investment securities
Listed stocks and bonds are evaluated using market prices. Since listed stocks are traded in an active market, their market
value is classified as a Level 1 market value. On the other hand, the corporate bonds held by the Company are classified as
Level 2 market prices because they are not traded frequently in the market and are not recognized as market prices in active
markets. For matters related to securities for each purpose of holding, please refer to the note "Securities Relations".
Long-term deposits
The market value of long-term deposits is calculated by discounting the total amount of principal and interest at theinterest rate expected when a similar new deposit is made and is classified as the market value of Level 2.
Bonds payable
The market value of the bonds issued by the Company is calculated based on the present value obtained by discounting thetotal amount of principal and interest by the interest rate that takes into account the remaining maturity of the bonds andcredit risk and is classified as the market value of Level 2.
Lease Obligations
These are calculated based on the present value of the total principal and interest discounted by the interest rate assumed
in the case of a new similar lease transaction and are classified as Level 2 market value.
Derivatives Trading
Since hedging of exchange rate fluctuation risk through allocation treatment is treated as an integral part of accounts
payable that is subject to hedging, the market value is included in the market value of the accounts payable. Accounts
payable is omitted because the market value approximates the book value because it is settled in a short period of time.

-132-

(Securities)
1. Bonds held to maturity
Previous Consolidated Fiscal Year (March 31, 2023)

Type

The market value exceeds
the amount recorded on
the consolidated balance
sheet.

Consolidated balance
sheet amount(Millions of yen)

Difference(Millions of yen)

(1) National bonds
・municipal bonds

－

－

－

(2) Bonds payable

－

－

－

(3) Other

－

－

－

－

－

－

(1) National bonds
・municipal bonds

－

－

－

(2) Bonds payable

200

199

(1)

(3) Other

300

279

(20)

500

478

(22)

500

478

(22)

Subtotal

The market value does
not exceed the amountrecorded on the
consolidated balance sheet.

Fair value(Millions of yen)

Subtotal
Total

Consolidated fiscal year under review (March 31, 2024)

Type

The market value exceeds
the amount recorded on
the consolidated balance
sheet.

Consolidated balance
sheet amount(Millions of yen)

Difference(Millions of yen)

(1) National bonds
・municipal bonds

－

－

－

(2) Bonds payable

－

－

－

(3) Other

－

－

－

－

－

－

(1) National bonds
・municipal bonds

－

－

－

(2) Bonds payable

200

199

(1)

(3) Other

300

285

(14)

500

484

(16)

500

484

(16)

Subtotal

The market value does
not exceed the amountrecorded on the
consolidated balance sheet.

Fair value(Millions of yen)

Subtotal
Total

-133-

2. Other Securities
Previous Consolidated Fiscal Year (March 31, 2023)

Type

Consolidated balance
sheet amount(Millions of yen)

(1) Share

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

60

22

38

①National bonds
・municipal bonds

－

－

－

②Bonds payable

－

－

－

③Other－－－(3) Other

－

－

－

60

22

38

－

－

－

➀National bonds
・municipal bonds

－

－

－

②Bonds payable

－

－

－

③Other－－－(3) Other

－

－

－

－

－

－

60

22

38

(2) Bond

The amount recorded on the
consolidated balance sheet
exceeds the acquisition cost

Subtotal(1) Share(2) Bond
The amount recorded on the
consolidated balance sheet
does not exceed theacquisition cost

Subtotal
Total(Note) Unlisted shares without market prices (25 million yen recorded on the consolidated balance sheet) are not included in the"Other Securities" section of the table above.

-134-

Consolidated fiscal year under review (March 31, 2024)
Consolidated balance
sheet amount(Millions of yen)Type(1) Share

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

69

22

47

➀National bonds
・municipal bonds

－

－

－

②Bonds payable

－

－

－

③Other－－－(3) Other

－

－

－

69

22

47

－

－

－

➀National bonds
・municipal bonds

－

－

－

②Bonds payable

－

－

－

③Other－－－(3) Other

－

－

－

－

－

－

69

22

47

(2) Bond

The amount recorded on the
consolidated balance sheet
exceeds the acquisition cost

Subtotal(1) Share(2) Bond
The amount recorded on the
consolidated balance sheet
does not exceed theacquisition cost

Subtotal
Total(Note) Unlisted shares without market prices (27 million yen recorded on the consolidated balance sheet) are not included in the"Other Securities" section of the table above.
3. Other securities sold
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Type

Sale price(Millions of yen)

Total gain on sale(Millions of yen)

Total loss on sale(Millions of yen)

61

56

－

➀National bonds
・municipal bonds

－

－

－

②Bonds payable

－

－

－

③Other－－－(3) Other

－

－

－

Total

61

56

－

(1) Share(2) Bond-135-

Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)
Not applicable.
(Derivatives Trading)
Derivatives trading to which hedge accounting is applied
Currency-related
Previous Consolidated Fiscal Year (March 31, 2023)
Hedge
accounting
methodCategory of transaction Major hedged items

Contract amount(Millions of yen)Contract amount due
Fair value
after 1 year
(Millions of yen)
(Millions of yen)

Foreign Exchange
Contract Transactions
Going long
Assignment
processing of
foreignexchange
contracts, etc.

US dollar
Euro
Chinese Yuan
Pound

Accounts payable andpayables

1

－

(0)

Payables1－

0

Accounts payable andpayables

50

－

(0)

accounts payable

1

－

(0)

54

－

(0)

Total

Consolidated fiscal year under review (March 31, 2024)
Hedge
accounting
methodCategory of transaction Major hedged items

Contract amount(Millions of yen)Contract amount due
Fair value
after 1 year
(Millions of yen)
(Millions of yen)

Foreign Exchange
Contract Transactions
Assignment
processing of
foreignexchange
contracts, etc.

Going long
US dollar
Chinese Yuan

Accounts payable andpayables

5

－

(0)

accounts payable

66

－

0

71

－

0

Total

-136-

(Retirement benefits)
1. Outline of the retirement benefit system adopted
The Company has established a defined benefit corporate pension plan, a defined contribution corporate pension plan, a corporate
pension fund system, and a lump-total retirement allowance plan to provide retirement benefits to employees. Upon the retirement ofan employee, etc., an additional retirement allowance that is not subject to retirement benefit obligations based on actuarial calculations
based on retirement benefit accounting may be paid.
In addition, the Tokyo Pharmaceutical Corporate Pension Fund, which is a comprehensive establishment of the Tokyo
Pharmaceutical Industry Pension Fund, was established in April 1969 and is operated mainly by companies engaged in the manufactureand sale of pharmaceuticals, medical devices, and machinery located in Tokyo, but this fund system is not included in the following
retirement benefit obligations and pension assets, and is accounted for in the same way as the defined contribution system.
2. Defined Benefit Plan
(1) Adjustment table of the balance at the beginning of the period and the balance at the end of the period of retirement benefit
obligations
Previous Consolidated Fiscal Year
(April 1, 2022)
March 31, 2023)
Retirement benefit obligations at
beginning of period
Service cost

(Millions of yen)
Consolidated fiscal year
(April 1, 2023)
March 31, 2024)

3,224

3,188

206

207

Interest cost

18

18

Actuarial gains and losses incurred

10Retirement benefits paid
Retirement benefit obligations at endof period

(263)

(352)

3,188

3,062

(2) Adjustment table of pension assets at the beginning and end of the period
Previous Consolidated Fiscal Year
(April 1, 2022)
March 31, 2023)
Retirement benefit obligations at
beginning of period
Service cost
Interest cost

(Millions of yen)
Consolidated fiscal year
(April 1, 2023)
March 31, 2024)

4,737

4,636

146

88

(180)

315

Actuarial gains and losses incurred

197

194

Retirement benefits paid
Retirement benefit obligations at endof period

(263)

(352)

4,636

4,884

-137-

(3) Balance of retirement benefit obligations and pension assets at the end of the fiscal year and a reconciliation table of liabilities
related to retirement benefits and assets related to retirement benefits recorded in the consolidated balance sheet
Previous Consolidated Fiscal Year
(March 31, 2023)(Millions of yen)
Consolidated fiscal year
(March 31, 2024)

Funded retirement
benefit obligations
Plan assets

3,188

3,062

(4,636)(4,884)Retirement benefit obligations for(1,448)(1,821)

Unfunded retirement benefit plans－－

Net assets and liabilities reported on
the consolidated balance sheets(1,448)(1,821)Retirement benefit assets(1,448)(1,821)

Net assets and liabilities reported on
the consolidated balance sheets(1,448)(1,821)(4) Amount of retirement benefit expenses and their breakdown items
Previous Consolidated Fiscal Year
(April 1, 2022)
March 31, 2023)
Service costs

206

Interest costs
Expected return on plan assets
Recognized actuarial loss (gain)
Retirement benefit expenses
defined benefit plansfor(Millions of yen)
Consolidated fiscal year
(April 1, 2023)
March 31, 2024)
207

18

18

(146)

(88)

(25)

(20)

52

116

(5) Adjustment amount for retirement benefits
The breakdown of the items recorded in the adjustment amount for retirement benefits (before adjustment for tax effects) is asfollows.

Actuarial loss (gain)
Total

Previous Consolidated Fiscal Year
(April 1, 2022)
March 31, 2023)
Million
208
Yen
208

-138-

(Millions of yen)
Consolidated fiscal year
(April 1, 2023)
March 31, 2024)
Million
(294)
Yen
(294)

(6) Cumulative amount of adjustment for retirement benefits
The breakdown of the items recorded in the cumulative amount of adjustments for retirement benefits (before adjustment for tax
effects) is as follows.
Previous Consolidated Fiscal Year
(March 31, 2023)(Millions of yen)
Consolidated fiscal year
(March 31, 2024)

Unrecognized Actuarial loss

(165)

(460)

Total

(165)

(460)

(7) Matters related to pension assets(1) Main breakdown of pension assets
The ratio of each major category to total pension assets is as follows.
Previous Consolidated Fiscal Year
(March 31, 2023)

Consolidated fiscal year
(March 31, 2024)

General account25.31％

23.39％

National Bonds

23.76

23.68

National Shares

12.18

13.09

Foreign Bonds

9.95

10.05

Foreign hares

11.71

12.70

Other

17.09

17.09

Total

100.00100.00(2) How to set the long-term expected rate of return on investment
In order to determine the expected long-term return on pension assets, we consider the current and projected allocation ofpension assets and the current and expected long-term rate of return from the various assets that make up the pension assets.
(8) Matters related to the basis of calculations in mathematical calculations
Calculation basis based on major mathematical calculations (expressed as a weighted average)
Previous Consolidated Fiscal Year
(March 31, 2023)
Discount rateLong-term expected returninvestment
Expected salary increase

on

-139-

Consolidated fiscal year
(March 31, 2024)

0.57％

0.57％

3.09％

1.91％

5.6％

5.6％

3. Defined Contribution System
The Company's required contributions to the defined contribution system were 90 million yen for the previous consolidated fiscal
year (April 1, 2022 to March 31, 2023) and 90 million yen for the current consolidated fiscal year (April 1, 2023 to March 31, 2024).
In addition, the amount of contributions required to the Tokyo Pharmaceutical Corporate Pension Fund under the multi-employer
system, which is accounted for in the same way as the defined contribution system, was 7 million yen in the previous consolidated
fiscal year (April 1, 2022 to March 31, 2023) and 6 million yen in the current consolidated fiscal year (April 1, 2023 to March 31,2024).
The following are matters related to the multi-employer system, in which the required contribution amount is treated as retirement
benefit expenses.
(1) Matters related to the accumulation status of the entire system
Previous Consolidated Fiscal Year
(March 31, 2023)
Amount of pension assets
The amount of actuarial debt in thecalculation of pension finances and
The total of the amount with theamount of the minimum liability
reserve
Deduction amount(Millions of yen)
Consolidated fiscal year
(March 31, 2024)

182,141

178,035

151,351

153,464

30,78924,570(2) Percentage of the Company's premium contributions to the entire system
1.3% for the previous consolidated fiscal year (as of March 31, 2023)
1.5% for the current consolidated fiscal year (as of March 31, 2024)(3) Supplementary explanation
The main factors for the deduction in (1) above are the outstanding amount of undepreciated past service liabilities in pension
finances (6,169 million yen in the previous consolidated fiscal year, 6,167 million yen in the current consolidated fiscal year),surplus for the current fiscal year (11,809 million yen in the previous consolidated fiscal year, -6,221 million yen in the current
consolidated fiscal year), and separate reserves (25,149 million yen in the previous consolidated fiscal year, 36,959 million yen in
the current consolidated fiscal year).
The breakdown of the outstanding amount of undepreciated past service debt is the present value of special premium income,and the amortization method is the principal and interest equalization method, the employer's contribution rate is 0.3%, and theamortization remaining period is 5 years and 10 months as of March 31, 2023.
Please note that the ratio in (2) above does not match the actual burden ratio of the Company.

-140-

(Stock Options, etc.)
1. Amount of expenses recorded for stock options and title of account(Millions of yen)
Consolidated fiscal year
(April 1, 2023)
March 31, 2024)

Previous Consolidated Fiscal Year
(April 1, 2022)
March 31, 2023)
Stock-based compensation forgeneral and administrative
expenses

63

15

2. Details, size, and fluctuations of stock options(1) Details of stock options

Categories and number ofrecipients

2007
Stock Options
4 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
Executive Officers: 12

2008
Stock Options
4 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
13 Executive Officers of theCompany

2009
Stock Options
4 directors of the Company(including 2 who also serve as
executive officers)
Executive Officers: 12

Number of Stock Options
Granted by Type of Stock(Note)

80,000 common shares

84,000 common shares

77,000 common shares

Date of Grant

July 9, 2007

July 8, 2008

July 9, 2009

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.

(2)

(2)

(2)

Vesting conditions

Notwithstanding (1)above, if the stockacquisition rights holder
does not meet the startdate of exercise by July
9, 2026, the stockacquisition rights may be
exercised from July 10,2026 to July 9, 2027.

Notwithstanding (1)above, if the stockacquisition rights holder
fails to reach the exercise
commencement date by
July 8, 2027, the stockacquisition rights may be
exercised from July 9,2027 to July 8, 2028.

Notwithstanding (1)above, if the stockacquisition rights holder
fails to reach the startdate of exercise by July
9, 2028, the stockacquisition rights may be
exercised from July 10,2028 to July 9, 2029.

There is no fixed period of There is no fixed period of There is no fixed period of
work.
work.
work.
July 10, 2007
Ji July 9, 2008
Ji July 10, 2009
Exercise Period
To Jul 9, 2027
July 8, 2028
To Jul 9, 2029
(Note) The figures are converted into the number of shares. The number of shares after the split under the stock split dated April 1,2018 (ratio of 2 shares to 1 common share) is described.
Eligible Work Period

-141-

2010
Stock Options
3 directors of the Company(including2
who
concurrentlyserve
asexecutive officers)

2011
Stock Options
4 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)

Executive Officers: 12

Executive Officers: 12

Number of Stock Options
Granted by Type of Stock(Note)

73,000 common shares

75,000 common shares

78,000 common shares

Date of Grant

July 8, 2010

July 8, 201110 Jul 2012

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.

(2)

(2)

(2)

Categories and number ofrecipients

Vesting conditions

Notwithstanding (1)above, if the stockacquisition rights holder
fails to reach the startdate of exercise by July8, 2029, the stockacquisition rights may be
exercised from July 9,2029 to July 8, 2030.

Notwithstanding (1)above, if the stockacquisition rights holder
fails to reach the startdate of exercise by July8, 2030, the stockacquisition rights may be
exercised from July 9,2030 to July 8, 2031.

2012
Stock Options
4 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
13 Executive Officers of theCompany

Notwithstanding (1)above, if the stockacquisition rights holder
fails to reach the startdate of exercise by July
9, 2031. The stockacquisition rights may be
exercised from July 10,2031 to July 9, 2032.

There is no fixed period of There is no fixed period of There is no fixed period of
work.
work.
work.
Ji July 9, 2010
Ji July 9, 2011
Ji July 10, 2012
Exercise Period
To July 8, 2030
To July 8, 2031
To July 9, 2032
(Note) The figures are converted into the number of shares. The number of shares after the split under the stock split dated April 1,2018 (ratio of 2 shares to 1 common share) is described.
Eligible Work Period-142-

Categories and number ofrecipients

2013
Stock Options
4 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
13 Executive Officers of theCompany

2014
Stock Options
4 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
Executive Officers: 12

2015
Stock Options
3 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
13 Executive Officers of theCompany

Number of Stock Options
Granted by Type of Stock(Note)

78,000 common shares

78,400 common shares

77,000 common shares

Date of Grant

9 Jul 2013

8 Jul 2014

9 Jul 2015

(1) After one year has elapsed (1) After one year has elapsed (1) After one year has elapsed
since the appointment ofsince the appointment ofsince the appointment of
the Company's Directors
the Company's Directors
the Company's Directors(excluding
Outside(excluding
Outside(excluding
OutsideDirectors) and Executive
Directors) and Executive
Directors) and Executive
Officers(excluding
Officers(excluding
Officers(excluding
death and retirement),
death and retirement),
death and retirement),
Stock Acquisition Rights
Stock Acquisition Rights
Stock Acquisition Rights
may be exercised only
may be exercised only
may be exercised only
for the period from thefor the period from thefor the period from the
day following the date
day following the date
day following the dateon which all Directors
on which all Directors
on which all Directors
and Executive Officers
and Executive Officers
and Executive Officers
Vesting conditions
retire to the date on
retire to the date on
retire to the date on
which 10 days have
which 10 days have
which 10 days haveelapsed.
elapsed.
elapsed.
(2)
Notwithstanding (2)Notwithstanding (2)Notwithstanding
paragraph (1) above, if
paragraph (1) above, if
paragraph (1) above, if
the stock acquisition
the stock acquisition
the stock acquisitionrights holder fails torights holder fails torights holder does notreach the start date of
reach
the
exercisemeettheexercise
exercise by July 9, 2032,
commencement date bycommencement date by
the stock acquisition
July 8, 2033, the stock
July 9, 2034, the stockrights may be exercised
acquisition rights may be
acquisition rights may befrom July 10, 2032 toexercised from July 9,
exercised from July 10,
July 9, 2033.
2033 to July 8, 2034.
2034 to July 9, 2035.
There is no fixed period of There is no fixed period of There is no fixed period of
Eligible Work Period
work.
work.
work.
Ji July 10, 2013
Ji July 9, 2014
Ji July 10, 2015
Exercise Period
To July 9, 2033
July 8, 2034
To July 9, 2035
(Note) The figures are converted into the number of shares. The number of shares after the split under the stock split dated April 1,2018 (ratio of 2 shares to 1 common share) is described.

-143-

Categories and number ofrecipients

2016
Stock Options
Two
directorsoftheCompany(includingone
who
concurrently serves as an
executive officer)
Executive Officers: 12

2017
Stock Options
Two
directorsoftheCompany(includingone
who
concurrently serves as an
executive officer)
13 Executive Officers of theCompany

Executive Officers of theCompany: 11
CommonsharesNumber of Stock Options
Granted by Type of Stock(Note)

55,000 common shares

CommonsharesDate of Grant

8 Jul 2016

10 Jul 2017

shares:60,2002018
Stock Options
3 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)

shares:34,40012 Jul 2018

(1) After one year has elapsed (1) After one year has elapsed (1) After one year has elapsed
since the appointment ofsince the appointment ofsince the appointment of
the Company's Directors
the Company's Directors
the Company's Directors(excluding
Outside(excluding
Outside(excluding
OutsideDirectors) and Executive
Directors) and Executive
Directors) and Executive
Officers(excluding
Officers(excluding
Officers(excluding
death and retirement),
death and retirement),
death and retirement),
Stock Acquisition Rights
Stock Acquisition Rights
Stock Acquisition Rights
may be exercised only
may be exercised only
may be exercised only
for the period from thefor the period from thefor the period from the
day following the date
day following the date
day following the dateon which all Directors
on which all Directors
on which all Directors
and Executive Officers
and Executive Officers
and Executive Officers
Vesting conditions
retire to the date on
retire to the date on
retire to the date on
which 10 days have
which 10 days have
which 10 days haveelapsed.
elapsed.
elapsed.
(2)
Notwithstanding (2)Notwithstanding (2)Notwithstanding
paragraph (1) above, if
paragraph (1) above, if
paragraph (1) above, if
the stock acquisition
the stock acquisition
the stock acquisitionrights holder does not
rights holder fails torights holder fails toreach the start date ofreach the start date ofreach the start date of
exercise by July 8, 2035,
exercise by July 10,
exercise by July 12,
the stock acquisition
2036,
the
stock
2037,
the
stock
rights may be exercised
acquisition rights may be
acquisition rights may befrom July 9, 2035 to July
exercised from July 11,
exercised from July 13,
8, 2036.
2036 to July 10, 2037.
2037 to July 12, 2038.
There is no fixed period of There is no fixed period of There is no fixed period of
Eligible Work Period
work.
work.
work.
Ji July 9, 2016
Ji July 11, 2017
July 13, 2018
Exercise Period
To July 8, 2036
July 10, 2037
To July 12, 2038
(Note) The figures are converted into the number of shares. The number of shares after the split under the stock split dated April 1,2018 (ratio of 2 shares to 1 common share) is described.

-144-

2019
Stock Options
3 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
Executive Officers of theCompany: 11

2020
Stock Options
3 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
Executive Officers of theCompany: 92021
Stock Options
3 directors of the Company(including
3
who
concurrentlyserve
asexecutive officers)
Executive Officers of theCompany: 10

Number of Stock Options
Granted by Type of Stock(Note)

CommonsharesCommonsharesCommonsharesDate of Grant

11 Jul 2019

9 Jul 2020

July 8, 2021

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.
(2)
Notwithstanding
paragraph (1) above, if
the stock acquisitionrights holder does not
reach
the
commencement date of
exercise by July 9, 2039,
the stock acquisitionrights may be exercisedfrom July 10, 2039 toJuly 9, 2040.
There is no fixed period ofwork.
Ji July 10, 2020
To July 9, 2040

(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
retire to the date on
which 10 days haveelapsed.

Categories and number ofrecipients

Vesting conditions(2)

shares:35,000Notwithstanding
paragraph (1) above, if
the stock acquisitionrights holder fails toreach the start date of
exercise by July 11,
2038,
the
stock
acquisition rights may be
exercised from July 12,2038 to July 11, 2039.

There is no fixed period ofwork.
Ji July 12, 2019
Exercise Period
To July 11, 2039
(Note) The figures are converted into the number of shares.
Eligible Work Period-145-

shares:29,800(2)

shares:40,900Notwithstanding (1)above, if the stockacquisition rights holder
fails to reach the startdate of exercise by July8, 2040, the stockacquisition rights may be
exercised from July 9,2040 to July 8, 2041.

There is no fixed period ofwork.
Ji July 9, 2021
July 8, 2041

Categories and number ofrecipients

2022
Stock Options
3 directors of the Company(including2
who
concurrentlyserve
asexecutive officers)
Executive Officers of theCompany: 10

Number of Stock Options
Granted by Type of Stock(Note)

CommonsharesDate of Grant

July 7, 2022

shares:40,400(1) After one year has elapsed
since the appointment of
the Company's Directors(excluding
OutsideDirectors) and Executive
Officers(excluding
death and retirement),
Stock Acquisition Rights
may be exercised only
for the period from the
day following the dateon which all Directors
and Executive Officers
Vesting conditions
retire to the date on
which 10 days haveelapsed.
(2)
Notwithstanding
paragraph (1) above, if
the stock acquisitionrights holder fails toreach the start date of
exercise by July 7, 2041.
The stock acquisitionrights may be exercisedfrom July 8, 2041 to July
7, 2042.
There is no fixed period of
Eligible Work Period
work.
Ji July 8, 2022
Exercise Period
To July 7, 2042
(Note) The figures are converted into the number of shares.

-146-

(2) Changes in the scale of stock options
The number of stock options is calculated in terms of the number of shares in the current consolidated fiscal year (fiscal year
ending March 2024).
① Amount of stock options
2007
Stock
optionBefore vested rights(shares)At the end of theprevious fiscal year

2008
Stock
option2009
Stockoption2010
Stock
option2011
Stockoption2012
Stockoption

－

－

－

－

－

－

Granted

－

－

－

－

－

－

Forfeiture

－

－

－

－

－

－

Vested

－

－

－

－

－

－

Unvested balance

－

－

－

－

－

－

4,000

4,000

8,000

8,000

9,000

17,000

Vested

－

－

－

－

－

－

Exercise

－

－

－

－

－

4,000

Forfeited

－

－

－

－

－

－

4,000

4,000

8,000

8,000

9,000

13,000Aftervestedrights(shares)At the end of theprevious fiscal year

Unexercised balance

2013
Stock
optionBefore vested rights(shares)At the end of theprevious fiscal year

2014
Stock
option2015
Stockoption2016
Stockoption2017
Stockoption2018
Stockoption

－

－

－

－

－

－

Granted

－

－

－

－

－

－

Forfeiture

－

－

－

－

－

－

Vested

－

－

－

－

－

－

Unvested balance

－

－

－

－

－

－

17,00028,00032,00024,00028,40022,500

Vested

－

－

－

－

－

－

Exercise

4,000

4,000

4,000

3,000

3,000

2,400

Forfeited

－

－

－

－

－

－

13,00024,00028,00021,00025,40020,100Aftervestedrights(shares)At the end of theprevious fiscal year

Unexercised balance(Note) The figures are converted into the number of shares. The number of shares after the split under the stock split dated April 1,2018 (ratio of 2 shares to 1 common share) is described.

-147-

2019
Stock
optionBefore vested rights(shares)At the end of theprevious fiscal year

2020
Stock
option2021
Stock
option2022
Stock
option－－－－Granted

－

－

－

－

Forfeiture

－

－

－

－

Vested－－－－Unvested balance

－

－

－

－

22,80025,60040,90040,400

Vested－－－－Exercise

2,400

2,300

2,300

2,300

Forfeited

－

－

－

－

20,40023,30038,60038,100Aftervestedrights(shares)At the end of theprevious fiscal year

Unexercised balance(Note) The figures are converted into the number of shares.

-148-

② Unit price information
2007
Stock Options

2008
Stock Options

2009
Stock Options

Exercise price (yen)

1

1

1

Average stock price at thetime of exercise (yen)Fair valuation unit price on
the date of grant (yen)

－

－

－

440.5

369.5

336.0

2010
Stock Options

2011
Stock Options

2012
Stock Options

Exercise price (yen)

1

1

1

Average stock price at thetime of exercise (yen)Fair valuation unit price on
the date of grant (yen)

－

－

1,562

346.0

410.5

422.0

2013
Stock Options
Exercise price (yen)Average stock price at thetime of exercise (yen)Fair valuation unit price on
the date of grant (yen)2014
Stock Options

2015
Stock Options

1

1

1

1,562

1,562

1,562

718.0

702.0

965.5

-149-

2016
Stock Options
Exercise price (yen)Average stock price at thetime of exercise (yen)Fair valuation unit price on
the date of grant (yen)2017
Stock Options
1

1

1

1,562

1,562

1,562

950.0

1,488.0

2,081.0

2019
Stock Options
Exercise price (yen)Average stock price at thetime of exercise (yen)Fair valuation unit price on
the date of grant (yen)2018
Stock Options

2020
Stock Options

2021
Stock Options

1

1

1

1,562

1,562

1,562

1,542.0

1,309.0

1,719.02022
Stock Options
Exercise price (yen)Average stock price at thetime of exercise (yen)Fair valuation unit price on
the date of grant (yen)1
1,562
1,551.0(Note) The prices are based on the stock split dated April 1, 2018 (ratio of 2 shares to 1 share of Common shares).

-150-3. Estimation of the number of stock options vested
Basically, since it is difficult to make a reasonable estimate of the number of revocations in the future, we have adopted a method thatreflects only the actual number of revocations.
(Tax Effect Accounting)
1. Breakdown of deferred tax assets and liabilities by major causes(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Deferred tax assets
Non-deductible accrued enterprise tax

70

15

Provision for bonuses

234

206

Research and Development expenses

320

273

Provision for share-based expenses
Social Insurance expenses
for Provision for bonuses
Loss on valuation of inventories

116

109

39

36

195

230

Supplies inventory2

2

Asset retirement obligations

10

10

Other

59

87

1,049

973

(12)

(15)

1,037

957

(443)

(557)

Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities
Retirement benefit asset
Reserve for tax purpose reduction entry
Valuation difference on
available-for-sale securities
Other

(25)

(24)

(12)

(15)

(4)

(3)

Total deferred tax liabilities

(485)

(601)

Deferred tax assets, net

551

356

2.Significant differences between the statutory tax rate and the effective tax rate after the application of tax effect accounting, by major
cause of such differences

As of March 31, 2023

As of March 31, 2024

30.62 ％

30.62 ％

0.16

0.42

0.36

0.79

(5.55)(6.04)(1.14)(0.97)

24.45

24.81

Effective statutory tax rate
Adjustments:
Expenses not deductible for income tax purposes(e.g. Entertainment expenses)
fixed-rate municipal tax
Tax credits on experimentation and researchexpenses, etc.
Other
Actual effective tax rate after applying tax effectaccounting(Business Combinations)Not applicable.
(Asset Retirement Obligations)Due to lack of importance, the description has been omitted.

-151-

(Real Estate Related)
Due to lack of importance, the description has been omitted.
(Revenue Recognition)
1. Information that breaks down revenue generated from contracts with customers
Breakdown of earnings by key goods or services and by major regional markets is as follows.
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(Millions of yen)Japan

Overseas

Total

FIT reagents (OC)

6,198

4,989

11,188Immunological and serological reagents s(excluding FIT reagents)

9,246

282

9,529

Urinalysis test strips

2,648

1,495

4,143

Microbiological reagents

3,899

39

3,938

590

－

590

Food and environment
category, equipment

2,148

17

2,165

Molecular genetics (including Medical devices)

6,867

475

7,343

Medical devices (non-genetic) and others

2,548

1,497

4,045

Revenue from contracts with customer

34,147

8,797

42,944

Other

327

－

327

Total

34,474

8,797

43,271

Clinical chemistry reagents(Notes) 1. Royalty income is included in reagents for fecal occult blood testing, urinalysis reagents, and gene-related products(including equipment).
2. Other income includes rental income based on Accounting Standards for Enterprises No. 13 "Accounting Standards for
Lease Transactions."-152-

Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)(Millions of yen)Japan

Overseas

Total

FIT reagents (OC)

6,343

5,972

12,315

Immunological and serological reagents s(excluding FIT reagents)

9,135

258

9,394

Urinalysis test strips

2,760

1,640

4,401

Microbiological reagents

4,260

51

4,312

575

－

575

Food and environment
category, equipment

1,932

28

1,961

Molecular genetics (including Medical devices)

1,587

1,037

2,625

Medical devices (non-genetic) and others

3,054

1,125

4,180

Revenue from contracts with customer

29,651

10,11539,767

Other

284

－

284

Total

29,936

10,11540,052Clinical chemistry reagents(Notes) 1. Royalty income is included in reagents for fecal occult blood testing, urinalysis reagents, and gene-related products(including equipment).
2. Other income includes rental income based on Accounting Standards for Enterprises No. 13 "Accounting Standards for
Lease Transactions."-153-

2. Information that forms the basis for understanding the revenue generated from contracts with customers(1) Sales of products and merchandise
The sale of products and commodities includes the manufacture and sale of testing reagents and testing equipment.
Based on the actual results of deliveries from wholesalers to hospitals, etc., the Company will discount a certain amount of thedifference between the amount sold by the company to wholesalers and the amount sold by the wholesaler to hospitals, etc. after
the fact from the sales amount to wholesalers. In addition, reimbursement will be made to the wholesaler in accordance with thepredetermined items and calculation standards. Discounts and rebates are calculated using the mode method based on past
performance. For contracts in which the transaction price includes a variable amount, such as a discount or rebate, the variableconsideration is included in the transaction price only for the portion that is likely to not result in a significant reduction in revenue
recorded up to the time of resolution when the uncertainty regarding the amount of variable consideration is resolved after the fact.
The amount expected to be reimbursed to the customer is recognized as a refundable liability in addition to other current liabilities.
Consideration for transactions is received mainly within one year of meeting the performance obligation and does not include
any material financial elements.
(2) Royalty income
Royalty income includes lump-total payments based on license agreements, milestone income, and running royalties calculatedon the basis of sales.
As a general rule, lump-total payments and milestone income are calculated by receiving reports from customers on sales for theperiod subject to calculation and multiplying them by the rate stipulated in the contract.
Consideration for transactions is received mainly within one year of meeting the performance obligation and does not include
any material financial elements.
The normal point in time when performance obligations are satisfied and the normal time at which revenue is recognized are as
described in "(Important Matters Forming the Basis for Preparation of Consolidated Financial Statements) 4. Matters Related to
Accounting Policy (5) Accounting Standards for Recording Significant Revenues and Expenses."
3. Information to understand the amount of earnings for the current fiscal year and the following fiscal year and thereafter
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(1) Balance of contract liabilities, etc.
(Millions of yen)
Consolidated fiscal
year under review(March 31, 2023)
Receivables arising from contracts with customers(opening balance)
Receivables arising from contracts with customers(balance at the end of the period)
Contract Liabilities (Beginning Balance)

10,895Contract liabilities (balance at the end of the period)

30

11,724

118

Contractual liabilities are mainly advances from customers in the sale of products and goods to overseas customers, which arewithdrawn upon recognition of revenues.
Of the amount of revenue recognized in the consolidated fiscal year under review, the amount included in the balance of contract
liabilities as of the beginning of the fiscal year was 118 million yen.
(2) Transaction price allocated to remaining performance obligations
Since the Group does not have any significant transactions with an expected contract period of more than one year, it applies
practical expediency and omits the description of information on remaining performance obligations. In addition, there is no
significant amount of consideration arising from the contract with the customer that is not included in the transaction price.

-154-

Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)(1) Balance of contract liabilities, etc.
(Millions of yen)
Consolidated fiscal
year under review(March 31, 2024)
Receivables arising from contracts with customers(opening balance)
Receivables arising from contracts with customers(balance at the end of the period)
Contract Liabilities (Beginning Balance)

10,895
12,24230

Contract liabilities (balance at the end of the period)

62

Contractual liabilities are mainly advances from customers in the sale of products and goods to overseas customers, which arewithdrawn upon recognition of revenues.
Of the amount of revenue recognized in the consolidated fiscal year under review, the amount included in the balance of contract
liabilities as of the beginning of the fiscal year was 30 million yen.
(2) Transaction price allocated to remaining performance obligations
Since the Group does not have any significant transactions with an expected contract period of more than one year, it applies
practical expediency and omits the description of information on remaining performance obligations. In addition, there is no
significant amount of consideration arising from the contract with the customer that is not included in the transaction price.
(Segment information)
Segment information
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023) and current consolidated fiscal year (April 1, 2023 to March 31,
2024)
The Group is a single segment of the reagents business, so it is omitted.
Related information
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
1. Information for each product and service(Millions of yen)
FIT reagents
(OC)
Sales
to externalcustomers

3,938

Food
ImmunologicalandUrinalysis test
Microbiologica
and serologicalenvironment
stripsl reagents
reagents
category,equipment
4,143

20,717

590

-155-

2,165

Others

11,716

Total

43,2712. Region-specific information(1) Net sales(Millions of yen)Japan

Overseas
34,474

Total
8,797

43,271(Note) Sales are categorized by country or region based on the customer's destination.
(2) Property, plant and equipment(Millions of yen)
Japan

China
16,794

Total
407

17,202(3) Key customer-specific information(Millions of yen)
Name or surname of the customer

sales

SUZUKEN CORPORATION

5,475

Alfresa Co., Ltd.

5,254

Toho Pharmaceutical Co., Ltd.

4,615

(Note) The Group is a single segment of the reagents business.
Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)
1. Information for each product and service(Millions of yen)
FIT reagents
(OC)
Sales
to externalcustomers

4,312

Food
ImmunologicalandUrinalysis test
Microbiologica
and serologicalenvironment
stripsl reagents
reagents
category,equipment
4,401

21,710

575

-156-

1,961

Others

7,090

Total

40,052

2. Region-specific information(1) Net sales(Millions of yen)Japan

Overseas
29,936

Total
10,11540,052(Note) Sales are categorized by country or region based on the customer's destination.
(2) Property, plant and equipment(Millions of yen)
Japan

China
16,627

Total
378

17,005(3) Key customer-specific information(Millions of yen)
Name or surname of the customer

sales

SUZUKEN CORPORATION

4,891

Alfresa Co., Ltd.

4,476

Toho Pharmaceutical Co., Ltd.

4,328

(Note) The Group is a single segment of the reagents business.
Information on impairment losses on fixed assets by reported segment
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Not applicable.
Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)
Not applicable.
Information on amortization of goodwill and undepreciated balances by reporting segment
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Not applicable.
Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)
Not applicable.
Information on Negative Goodwill Accrual Gains by Reporting Segment
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Not applicable.
Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)
Not applicable.
Related Party Information
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Not applicable.

-157-

Consolidated fiscal year under review (April 1, 2023 to March 31, 2024)
Not applicable.
(Information per share)(Yen)
For the fiscal year
ended March 31, 2023
Net assets per share

For the fiscal year
ended March 31, 2024

1,327.47

1,318.38

Basic earnings per share

155.17

71.69

Diluted earnings per share

153.8671.10(Note) The basis for calculating profit per share and profit per share adjusted for potential shares is as follows.
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Basic earnings per share
Profit attributable to owners of parent (Millions of yen)Amount not attributable to common shareholders (Millionsof yen)Profit attributable to owners of parent relating to commonshares (Millions of yen)
Average number of shares of common shares outstanding
during each fiscal year (Thousand shares)

5,736

2,634

－

－

5,736

2,634

36,96736,744

－

－

314

306

(314)

(306)

Diluted earnings per share
Adjustment for profit attributable to owners of parent(Millions of yen)
Increase in number of shares of common shares (Thousand
shares)(Bonds with share acquisition rights included in theabove)
Overview of residual shares not included in calculation ofdiluted earnings per share due to lack of dilutive effect

－

-158-

(Significant subsequent events)(Retirement of Treasury shares)
At a meeting of the Board of Directors held on April 24, 2024, the Company resolved to retire treasury shares in accordance with
Article 178 of the Companies Act, and the Company has retired treasury shares as follows.

1. Reason for the retirement of Treasury shares
To improve shareholder profits by reducing the total number of issued shares
2. Details of matters related to the retirement of Treasury shares(1) Type of shares retired: common shares(2) Number of shares retired: 1,500,000 shares(Ratio to the total number of issued shares before retirement: 3.75%)(3) Date of retirement: April 26, 2024
Consolidated Supplementary Schedules
Schedule of bonds payable
Beginningof thecurrent
fiscal year
balance(Millionsof yen)End of thecurrent
fiscal year
balance(Millionsof yen)Interest rate(%)

collateral

Redemption
deadline

Company
Name

brand

Date of issue

Eiken
Chemical Co.,Ltd.

1st Unsecured
corporate bondOctober 19, 2021

3,000

3,000

0.430

with
out

October 19, 2026

Total

－

－

3,000

3,000

－

－

－

(Note) The estimated amount of redemption for the five years after the consolidated accounting date is as follows.
Due within 1 year
(millions of yen)－

Due after 1 year but
within 2 years(millions of yen)

Due after 2 years but
within 3 years(millions of yen)

Due after 3 years but
within 4 years(millions of yen)

Due after 4 years but
within 5 years(millions of yen)

－

3,000

－

－

-159-

Schedule of borrowings, etc.
Balance at beginning Balance at end of
period (millions ofof periodyen)(millions of yen)Classification

Average

Repayment deadline

interest rate (%)

Short-term borrowings

－

－

－

－

Current portion of long-termborrowings
Current portion of lease obligations(Note 2)Long-term borrowings (excluding
current portion)
Lease obligations (excluding current
portion) (Note 2,3)
Other interest-bearing liabilities
Guarantee deposits received(Note 1)

－

－

－

－

390

384

1.79

－

－

－

－

－

919

951

2.15

2025~2037

287

287

0.00

－

1,598

1,623

－

－

Total

(Notes) 1. The average interest rate on deposits is the weighted average interest rate on the average deposit balance during the period.
2. The average interest rate on lease obligations is the weighted average interest rate on the outstanding amount of leaseobligations at the end of the fiscal year.
3. Lease debt (excluding those that are scheduled to be repaid within one year) The estimated repayment amount for the five
years after the consolidated settlement date is as follows.
Due after 1 year but

Due after 2 years but Due after 3 years but Due after 4 years but

within 2 years

within 3 years

within 4 years

within 5 years(millions of yen)(millions of yen)(millions of yen)(millions of yen)

Lease Obligations

338

254

154

79

Schedule of asset retirement obligations
The description is omitted because the amount of asset retirement obligations at the beginning of the current consolidated fiscal
year and the end of the current consolidated fiscal year is less than one-hundredth of the total amount of liabilities and net assets atthe beginning of the current consolidated fiscal year and the end of the current consolidated fiscal year.

-160-

(2) Others① FY2024 quarterly information etc.
(Cumulative period)
Net sales (Millions of yen)
Profit before income taxes

1st Quarter(Accounting Period)
Profit per share (yen)

3rd Quarter

Consolidated fiscal
year

9,864

20,26430,49340,052

1,037

2,172

3,432

3,503

770

1,618

2,571

2,634

20.82

43.69

69.37

71.69

(millions of yen)
Profit attributable to owners ofparent (millions of yen)
Profit per share (yen)2nd Quarter

1st Quarter

2nd Quarter

20.82

22.87

② Status after the closing date
There are no special notes.
③ Important litigation cases, etc.
Not applicable.

-161-

3rd Quarter
25.68

4th Quarter
1.75

2. Non-consolidated Financial Statements(1) Financial Statements① Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits

17,917

Notes receivable - trade

15,721499

804

Accounts receivable - trade
Investments in leases

10,619337

11,675337

Merchandise and finished goods

4,728

4,172

Work in process
Raw materials and supplies

1,917
1,710

2,001
1,874

Prepaid expenses

327

310

Other
Allowance for doubtful accounts

685
(6)

313
(7)

38,736

37,20422,710(11,682)

23,178(12,328)

11,028

10,849

1,745

1,654

(845)

(812)

Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net

900

842

6,728

7,201

Accumulated depreciation(5,428)(5,756)

Machinery and equipment, net

1,300

1,445

Machinery and equipment

Vehicles48

49

Accumulated depreciation

(38)

(41)

Vehicles, net

10

8

5,003
(3,933)

5,342(4,356)

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

1,070

985

1,928
325
(150)

1,928
281
(129)

Leased assets, net

174

152

Construction in progress

382

414

16,794

16,627

3
848
19

4
572
24

871

601

Land
Leased assets
Accumulated depreciation

Total property, plant and equipment
Intangible assets
Patent right
Software
Other
Total intangible assets-162-

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Investments and other assets
Investment securities

586

597

0

72
0

1,316

1,316

30
127

20
89

Long-term time deposits

4,900

1,900

Life insurance funds
Prepaid pension costs

168
1,282

170
1,360

Deferred tax assets

599

495

Investments in leases
Other

786
235

832
236

Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries andassociates
Distressed receivables
Long-term prepaid expenses

Allowance for doubtful accounts

(34)

(23)

Total investments and other assets

10,001

7,070

27,667

24,29966,40461,503

4,715

4,678

2,933
390
1,397

2,759
384
1,503

Accrued expenses
Income taxes payable
Refund liabilities

227
827
411

285
373

Contract liabilities
Deposits received

24
67

54
126

Provision for bonuses
Other

766
676

674
505

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating
Lease liabilities
Accounts payable - otherTotal current liabilities

12,43911,345

Non-current liabilities
Bonds payable
Lease liabilities
Asset retirement obligations
Other

3,000
919
34
342

3,000
951
35
342

Total non-current liabilities

4,296

4,329

16,736

15,675

Total liabilities-163-

(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Net assets
Shareholders' equity
Share capital
Capital surplus

6,897

6,897

Legal capital surplus

7,892

7,892

Other capital surplus

183-

Total capital surplus

8,076

7,892

Legal retained earnings

338

338

Other retained earnings
Reserve for tax purpose reduction entry

58

54

Retained earnings

General reserve

4,330

4,330

Retained earnings brought forward

32,65431,60837,38136,331

Treasury shares

Total retained earnings(3,095)(5,686)

Total shareholders' equity

49,25945,43428

35

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets

-164-

28

35

380

358

49,66745,82866,40461,503

② Non-consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Net sales
Net sales of finished goods
Net sales of goods

22,13321,062

18,45921,503

Total net sales

43,19539,962

4,654

4,728

7,954

8,116

Cost of purchased goods

15,012

14,752Ending inventory of merchandise and finished goods

4,728

4,172

Total cost of sales

22,892

23,425Gross profit

20,303

16,536

Selling, general and administrative expenses

12,788

13,114

Operating profit

7,514

3,422

Interest income
Dividend income
Compensation income for damage
Compensation income

9
3
38
8

0
4
5

Outsourcing service income
Foreign exchange gains

9
26

10
45

Subsidy income
Other

10
35

155
30

Total non-operating income

141

253

Cost of sales
Beginning inventory of merchandise and finished
goods
Cost of products manufactured

Non-operating income

Non-operating expenses
Interest expenses

34Interest expenses on bonds
Commission for purchase of Treasury shares
Commitment fees

12
2

12
70
3

Loss on redemption of investment securities
Compensation expenses
Other

13
9
0

3

Total non-operating expenses

42

93

7,613

3,581

24
56

0
-

81

0

57

65

57

65

Profit before income taxes

7,637

3,516

Income taxes - current
Income taxes - deferred

1,758
97

767
100

Total income taxes

1,855

868

Profit

5,781

2,648

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Total extraordinary losses-165-

[Statement of manufacturing costs]

division

Fiscal 2023
Fiscal 2024
(from April 1, 2022
(from April 1, 2023
to March 31, 2023)
to March 31, 2024)
Note
Composition
Composition
numb Amount (Millions of yen)ratio
Amount (Millions of yen)
ratio
er
(%)
(%)

I. Material Costs

3,771

45.0

3,591

43.3

II. Labor Costs

※１

2,049

24.5

2,127

25.6

III. Expenses

※２

2,552

30.5

2,583

31.1

8,373

100.0

8,302

100.0

Total manufacturing expenses
for the current fiscal year
The work-in-progress at the
beginning of the period

1,709

1,917

10,082

10,219210

101

Year-end work-in-process

1,917

2,001

Cost of goods manufactured

7,954

8,116

Total
Transfers to other accounts※３

Cost accounting method
Cost accounting method is the continuous process cost system.
Note:(Millions of yen)
Fiscal 2023
(from April 1, 2022 to March 31, 2023)

Fiscal 2024
(from April 1, 2023 to March 31, 2024

*1. The amount of provisions for labor expenses is as follows. *1. The amount of provisions for labor expenses is as follows.
Provision for bonuses
204
Provision for bonuses
179
Retirement benefit expenses
36
Retirement benefit expenses
52*2. The main breakdown of expenses is as follows.
*2. The main breakdown of expenses is as follows.
Power utilities expenses
Power utilities expenses
180
209
Depreciation
Depreciation
1,204
1,160
Supplies expenses
Supplies expenses
186
167
Outsourcing expenses
Outsourcing expenses
322
336*3. Transfers to other accounts are mainly transferred to cost of *3. Transfers to other accounts are mainly transferred to cost of
sales, stocked goods, and sales expenses (free sample
sales, stocked goods, and sales expenses (free sample
expenses).
expenses).

-166-

Non-consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Other retained earnings
Share capital Legal capital Other capital Legal retained Reserve for
Retainedtax purpose
Generalearnings
surplussurplusearnings
reduction
reservebrought
entry
forwardBalance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry
Dividends ofsurplusProfitPurchase ofTreasury shares
Disposal ofTreasury shares
Cancellation ofTreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

6,897

7,892

108

338

66

(7)

28,8987(2,033)
5,781

75

-

-

75

-

(7)

-

3,756

6,897

7,892

183

338

58

4,330

32,654

Valuation andtranslation
adjustments
Valuation
Total
difference onshareholders'available-forequity
sale securities

ShareacquisitionrightsTotal net
assetsShareholders' equity

TreasurysharesBalance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry
Dividends ofsurplusProfitPurchase ofTreasury shares
Disposal ofTreasury shares
Cancellation ofTreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period4,330(3,126)45,40533

316

45,755--(2,033)(2,033)

5,781

5,781

(0)

(0)

(0)

30

105

105

-

(5)

63

58

30

3,854

(5)

63

3,912

(3,095)49,25928

380

49,667-167-

For the fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Other retained earnings
Share capital Legal capital Other capital Legal retained Reserve for
Retainedtax purpose
Generalearnings
surplussurplusearnings
reduction
reservebrought
entry
forwardBalance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry
Dividends ofsurplusProfitPurchase ofTreasury shares
Disposal ofTreasury shares
Cancellation ofTreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

6,897

7,892

183

338

58

(3)

32,654

3(1,927)
2,648

58
(242)

(1,771)

-

-

(183)

-

(3)

-

(1,046)

6,897

7,892

-

338

54

4,330

31,608Valuation andtranslation
adjustments
Valuation
Total
difference onshareholders'available-forequity
sale securities

ShareacquisitionrightsTotal net
assetsShareholders' equity

TreasurysharesBalance at beginningof period
Changes during
periodReversal of reserve
for tax purpose
reduction entry
Dividends ofsurplusProfitPurchase ofTreasury shares
Disposal ofTreasury shares
Cancellation ofTreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period4,330(3,095)49,25928

380

49,667--(1,927)(1,927)

2,648

2,648

(4,636)(4,636)(4,636)

32

91

91

2,013

-

7

(22)

(14)

(2,590)(3,824)7(22)(3,839)(5,686)45,43435358

45,828-168-

Notes(Significant accounting policies)
1. Valuation standards and methods for Significant Securities(1) Held-to-maturity debt securities
Stated at amortized cost (straight-line method)(2) Shares of subsidiary
Cost method by the moving-average method(3) Available-for-sale securities
Securities other than shares, etc., which do not have a market priceMarket value method(The valuation difference is directly included in net assets, and cost of sales is determined by the moving-average method.)
Shares, etc., which do not have a market pricePrincipally cost method by the moving-average method
2. Valuation standards and methods for derivative financial instruments
Market value method
3. Valuation standards and methods for inventories(1) Merchandise and finished goods, raw materials, and work in process
Cost method by the moving-average method (carrying amount is written down due to decreased profitability) is adopted.
(2) Supplies
Cost method by the last purchase price method (carrying amount is written down due to decreased profitability) is adopted.
4. Depreciation method of non-current assets(1) Property, plant and equipment (excluding leased assets)
Declining-balance method
However, the straight-line method is adopted for buildings purchased on or after April 1, 1998 (excluding facilities attached tobuildings), and for facilities attached to buildings and structures purchased on or after April 1, 2016.
Major useful lives are as follows:
Buildings

15-38 years

Structures

7-40 years

Machinery and equipment

8 years

Vehicles4-6 years

Tools, furniture and fixtures

2-15 years(2) Intangible assets (excluding leased assets)
Straight-line method
For internal use software, the straight-line method based on amortization over the internally estimated useful lives (5 years) is
adopted.
(3) Leased assets
Leased assets are depreciated over the lease terms as useful lives using the straight-line method without any residual value.

-169-

5. Accounting standards for significant reserves and allowances(1) Allowance for doubtful accounts
In order to prepare for possible credit losses on trade receivables, etc., the estimated amount of non-recoverable receivables
based on the historical loss rate for general receivables and specific collectability for specific doubtful receivables are recorded.
(2) Provision for bonuses
In order to prepare for payments of bonuses to the employees, the estimated payable amount to be used in the future attributable
to the current fiscal year is recorded as provision for bonuses.
(3) Provision for retirement benefits
In order to prepare for employees’ retirement benefits, provision for retirement benefits is recorded based on the retirement
benefit obligations and estimated plan assets as of the current fiscal year-end.
1) Period attribution method for estimated retirement benefits
In calculating retirement benefit obligations, the method of attributing the estimated amount of retirement benefits to the periods
up to the end of the current fiscal year is based on the benefit formula basis.
2) Accounting method for actuarial difference and past service cost
Past service cost is expensed using the straight-line method over a period of definite years (3 years) within the employees’
average remaining service years at the time when it is incurred.
Actuarial difference is expensed at the amount divided proportionally using the straight-line method over a period of definite
years (12 years) within the employees’ average remaining service years in each fiscal year when it is incurred, commencing fromthe fiscal year following the fiscal year in which the difference is incurred.
6. Revenue and expense recognition standards(1) Sales of merchandise and finished goods
Sales of merchandise and finished goods include the manufacture and sale of clinical diagnostic reagents and clinical diagnostic
equipment. The Company principally recognizes revenue from sales of merchandise and finished goods when making deliveryof the goods to a customer as it satisfies a performance obligation by transferring control of the goods to a customer based onreceipt of the goods. For clinical diagnostic equipment which requires installation at the time of sale, the Company recognizes
revenue at inspection of installed equipment as it satisfies a performance obligation by transferring control of the goods to acustomer based on inspection by a customer.

(2) Royalty revenue
Royalty revenue includes upfront payment based on license agreement etc., milestone revenues, and running royalty calculated
based on net sales etc. For upfront payment, the Company recognizes revenue at customers’ receipt of the right which theCompany promised to transfer to a customer based on the contract. For milestone revenues, the Company recognizes revenue atachievement of the milestone which was defined in the contract. For running royalty calculated based on net sales etc., theCompany recognizes revenue when sales or usage occur, or it satisfies a performance obligation which sales-based or usagebased royalty is allocated, whichever is later.
7. Translation of significant foreign currency denominated assets and liabilities into Japanese yen
Foreign currency denominated monetary receivables and payables are translated into Japanese yen using the spot exchange rate on
the closing date and the translation difference is charged or credited to income.

-170-

8. Hedge accounting method(1) Hedge accounting method
The appropriation procedure is adopted to foreign exchange fluctuation risk hedging that satisfy the relevant requirements.
(2) Hedging instruments and hedged items, hedging policy
The risks of foreign exchange fluctuation are hedged in accordance with the Company’s rules.
Hedging instruments and hedged items where hedge accounting was applied for the consolidated fiscal year under review are
as follows.
Hedging instruments: Forward exchange contracts
Hedged items:

Foreign currency denominated accounts payable, foreign currency denominated accounts payable –other(3) Assessment of hedge effectivenessFor forward exchange contracts, hedged items with the same date and amount and denominated in the same currency areallocated to each account payable, accounts payable – other. Therefore, the correlation by foreign exchange fluctuation thereafteris ensured completely, and the assessment of hedge effectiveness is omitted.
9. Accounting policies for retirement benefits
The accounting methods of unrecognized actuarial gain and loss and unrecognized past service cost for retirement benefits differ
from those of the consolidated financial statements.
(Important Accounting Estimates)
Valuation of inventories(1) Amount recorded in the financial statements for the fiscal year under review(Millions of yen)Previous fiscal year
Merchandise and finished
goodsWork in process
Raw materials andsupplies

Current fiscal year

4,728

4,172

1,917

2,001

1,710

1,874

(2) Information on the contents of important accounting estimates related to the identified items
This is the same as stated in the Consolidated Financial Statements "Notes (Important Accounting Estimates)."-171-

(Notes to Non-consolidated Balance Sheets)*1. Regarding accounting policies for notes maturing on the last day of the fiscal year, although the last day of the fiscal year underreview was a holiday for financial institutions, the notes are treated as if the settlement was made on the maturity date.
Notes maturing on the last day of the fiscal year under review are as follows.
(Millions of yen)
As of March 31, 2023
Notes
2.

As of March 31, 2024-

17

Overdraft contract and commitment line are concluded for efficient procurement of working capital. Balance of unexecuted loans
based on these contracts are as follows.
(Millions of yen)
As of March 31, 2023
Total of overdraft maximum amount andcommitment lines
Outstanding borrowings
Difference

As of March 31, 2024
5,400

4,600

5,400

4,600

(Notes to Non-consolidated Statements of Income)*1. Approximate percentages of expenses belonging to selling expenses are 45% for the previous fiscal year, 45% for the fiscal year
under review, and approximate percentages of expenses belonging to general and administrative expenses are 55% for the previous
fiscal year, 55% for the fiscal year under review.
The main expense items and amounts of selling, general and administrative expenses are as follows.
(Millions of yen)
For the fiscal year

For the fiscal year

ended March 31, 2023

ended March 31, 2024

Salaries
Provision for bonuses

2,203

2,464

400

353

Retirement benefit expenses

76

112

Legal welfare expenses

581

567

Travel and transportation expenses

476

535

Packaging and transportation expenses

822

804

Research and development expenses

4,011

3,916

412

464

21

(1)

Depreciation
Provision of allowance for doubtful
accounts-172-

*2 The details of gains on the sale of fixed assets are as follows.
(Millions of yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Tools, furniture and fixtures

0

0

Land

24

－

24

0

Total

*2. Main losses on sales and retirement of non-current assets are as follows.
(Millions of yen)
For the fiscal year

For the fiscal year

ended March 31, 2023

ended March 31, 2024

Buildings

014Structures

00

Machinery and equipment

90Vehicles00

Tools, furniture and fixtures

16

0

Software-3

Dismantlement cost

30

46

Total

57

65

(Securities)
The market value of subsidiary shares is not stated because they are shares that do not have a market price.
The balance sheet amount of subsidiary stocks, such as shares without market prices, is as follows.
Previous fiscal year
Current fiscal year
division(Millions of yen)
(Millions of yen)
Subsidiary Shares
－
－

Total

-173-

72
72

(Tax Effect Accounting)
1. Breakdown of deferred tax assets and liabilities by major causes
Previous fiscal year
(March 31, 2023)(Millions of yen)
Current fiscal year
(March 31, 2024)

Deferred tax assets
Non-deductible accrued enterprise tax

70

15

Provision for bonuses

234

206

Research and Development expenses

320

273

Provision for share-based expenses
Social Insurance expenses
for Provision for bonuses
Loss on valuation of inventories

116

109

39

36

195

230

Supplies inventory2

2

Asset retirement obligations

10

10

Other

44

70

1,034

956

Retirement benefit asset

(392）

(416)

Reserve for tax purpose reduction entry
Valuation difference on
available-for-sale securities
Other

(25）

(24)

(12)

(15)

Subtotal of deferred tax assets
Deferred tax liabilities

Total deferred tax liabilities
Deferred tax assets, net

(4)

(3)

(435)

(460)

599

495

2. When there is a significant difference between the statutory effective tax rate and the corporate tax burden rate after the application oftax effect accounting, a breakdown of the major items that caused the difference.

Effective statutory tax rate

Previous fiscal year
(March 31, 2023)
30.62％

Adjustments:
Expenses not deductible for income tax purposes(e.g. Entertainment expenses)
fixed-rate municipal tax
Tax credits on experimentation and researchexpenses, etc.
Other
Actual effective tax rate after applying tax effectaccounting

Current fiscal year
(March 31, 2024)
30.62 ％

0.16

0.42

0.36

0.79

(5.52)(6.02)(1.33)(1.12)

24.29

24.68

(Business Combinations)Not applicable.
(Revenue Recognition)
The information that forms the basis for understanding revenues arising from contracts with customers is the same as in the
consolidated financial statements "Notes (Revenue Recognition Relations)," so the notes have been omitted.

-174-

(Significant subsequent events)(Retirement of Treasury shares)
At a meeting of the Board of Directors held on April 24, 2024, the Company resolved to retire treasury shares in accordance with
Article 178 of the Companies Act, and the Company has retired treasury shares as follows.
1.

Reason for the retirement of Treasury shares
To improve shareholder profits by reducing the total number of issued shares

2.

Details of matters related to the retirement of Treasury shares(1) Type of shares retired: common shares(2) Number of shares retired: 1,500,000 shares(Ratio to the total number of issued shares before retirement: 3.75%)(3) Date of retirement: April 26, 2024

-175-

(4) Supplementary Statements
Statement of Tangible and Intangible Fixed Assets

Balance atBalance at

Building

22,710543

75

23,17812,328708

10,849Structures

1,745

45

136

1,654

812

102

842

6,728

609

136

7,201

5,756

464

1,445

48

4

3

49

41

6

8

Tools, equipment, andfixtures

5,003

430

91

5,342

4,356

513

985

Land

1,928

－

－

1,928

－

－

1,928

Lease assets

325

38

81

281

129

59

152

Buildings
in progress

382

346

314

414

－

－

414

38,872

2,017

839

40,051

23,424

1,855

16,627

5

1

－

7

2

0

4

Software

1,768

89

125

1,732

1,159

362

572

Other

22

15

10

27

3

0

24

Total

1,795

107

136

1,766

1,165

363

601

long-term prepaid expense

199

6

49

157

67

44

89

Accumulated
Balance at
Decrease
Ner balance
depreciation
the beginning the beginning during the the end of theAmortization at the end of
andperiod(Millions of the period
periodof the period of the period (Millions of (Millions of amortization
yen)(Millions of(Millions of
yen)
yen)
yen)
(Millions (Millions ofyen)of yen)yen)

Class of assets

Tangible
Fixed Assets

Machineryequipment

andVehiclesTotal
Intangible assets
Trademark right-176-

Statement of Provisions

Item

Balance at
beginning of
period(Millions of yen)

Increase during theperiod(Millions of yen)

Decrease during
the period(Purposed use)
(Millions of yen)

Decrease during
the period(Others)(Millions of yen)

Balance at end of
Period(Millions of yen)

40

0

10

－

31

766

674

766

－

674

Allowance for
doubtful accounts
Provision forbonuses(2) Details of Major Assets and Liabilities
Since consolidated financial statements have been prepared, the description has been omitted.
(3) Other➀ Status after the closing date
There are no special notes.
➁ Important litigation cases, etc.
Not applicable.

-177-VI. Outline of Share-related Administration of Reporting Company
Fiscal year

From April 1 to March 31

General Meeting of

June

Shareholders
Reference date

March 31

Reference date of dividends

September 30 and March 31

of surplus
Number of shares per

100 shares

trading unit
Purchase or sale of shares ofless than one unit
Handling office(Special account)
Securities Agency Division, Mitsubishi UFJ Trust and Banking
Corporation 4-5, 1-chome, Marunouchi, Chiyoda-ku, Tokyo
Transfer Agent(Special account)
Mitsubishi UFJ Trust and Banking Corporation
4-5, 1-chome, Marunouchi, Chiyoda-ku, Tokyo―

Forwarding office

No charge

Trade commissions
Method of public notice

Shareholder benefits

The Company uses electronic methods for public notification. However, if electronic
notification is not possible due to an accident or other unavoidable circumstances, notification
will be made through the Nikkei newspaper.
The URL for public notification by the Company is as follows:
https://www.eiken.co.jp/
Not applicable.

(Note) Based on the provisions of the Company’s Articles of Incorporation, shareholders holding shares less than one unit cannot
exercise their rights except the rights stipulated in each item of Article 189, Paragraph 2 of the Companies Act, the rights toreceive allotment of shares for subscription and allotment of share acquisition rights for subscription based on the number ofshares held by the shareholder, and the rights to request sale of shares less than one unit.

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VII. Reference Information About Reporting Company
1 Information about parent of reporting company
The Company does not have a parent company as stipulated in Article 24-7, Paragraph 1 of the Financial Instruments and ExchangeAct.
2 Other reference information
The following documents have been submitted between the start of the current fiscal year and the date of submission of the annual
securities report.
(1) Annual Securities Report, accompanying documents, and confirmation letter
Fiscal Year (85th) (April 1, 2022 to March 31, 2023) Submitted to the Director General of the Kanto Local Finance Bureau on
June 28, 2023.
(2) Internal control report and accompanying documents
Submitted to the Director General of the Kanto Local Finance Bureau on June 28, 2023.
(3) Quarterly securities reports and confirmation letter(First Quarter of the 86th Fiscal Period) (April 1, 2023 to June 30, 2023) Submitted to the Director of the Kanto Local Finance
Bureau on August 9, 2023.
(2nd Quarter of the 86th Term) (July 1, 2023 to September 30, 2023) Submitted to the Director of the Kanto Local Finance
Bureau on November 10, 2023.
(3rd Quarter of the 86th Term) (October 1, 2023 to December 31, 2023) Submitted to the Director General of the Kanto Local
Finance Bureau on February 9, 2024.
(4) Extraordinary Report
Submitted to the Director General of the Kanto Local Finance Bureau on June 28, 2023. This is an extraordinary report basedon Article 19, Paragraph 2, Item 9-2 of the Cabinet Office Ordinance on Disclosure of Corporate Details, etc. (Results of the
Exercise of Voting Rights at the General Meeting of Shareholders).
(5) Issuance registration form (ordinary corporate bonds) and its attachments
Submitted to the Director of the Kanto Local Finance Bureau on September 7, 2023.
(6) Report on the status of share purchases
Submitted to the Director of the Kanto Local Finance Bureau on February 13, 2024.
Submitted to the Director General of the Kanto Local Finance Bureau on March 11, 2024.
Submitted to the Director of the Kanto Local Finance Bureau on April 15, 2024.
Submitted to the Director of the Kanto Local Finance Bureau on May 15, 2024.

-179-

Part 2 Information about the Submitting Company’s Credit Guarantee Company, etc.
Not applicable.

-180-