May 28, 2024

Remarks by the President at the 24th General Assembly Meeting
Masatoshi Kimata
President

Japan Land Engine Manufactures Association
Thank you very much for attending today despite of your busy schedule.
We would also like to express our gratitude for your continued support and cooperation in themanagement of the Association. I would like to say a few words on the 24th General AssemblyMeeting.
LEMA was established on May 1, 1948, and last year marked 75 years.

In this milestone year,

the association's office was relocated at the end of January from an aging building that was 61 yearsold. With the relocation of the office, this fiscal year will mark a new start for the Association.
LEMA has been a general incorporated association since 2012, and I would like to express mysincere gratitude to all the members for your efforts in contributing to the development of theindustry. It is a great pleasure for me to meet with many of you today at the milestone year's General
Assembly Meeting. Thank you very much for attending.
About the economic situation, the Japanese government's April Monthly Economic Report statesthat “Concerning short-term prospects, the economy is expected to continue recovering at amoderate pace with the improving employment and income situation, supported by theeffects of the policies. However, slowing down of overseas economies is downside risk of
the Japanese economy, including the effects of global monetary tightening and theconcern about the prospect of the Chinese economy. Also, full attention should be given toprice increases, the situation in the Middle East and fluctuations in the financial andcapital markets. In addition, full attention should be given to the economic impact of the2024 Noto Peninsula Earthquake." and it seems that the unpredictable situation remainsunchanged.
Next, as for the production status of the land internal combustion engines that we handle, theannual production figures for fiscal year 2023 announced on April 1 this year for the land engines indomestic production figures of gasoline engines, diesel engines and gas engines all decreased, andthe total is expected to decrease for two consecutive years to 3,065,000 units, 86.5% of the previousyear. In overseas production, although diesel and gas engines increased compared to the previousfiscal year, gasoline engines decreased by 2 million units, a significant decrease of 74.7% of theprevious fiscal year. Overall production is expected to decrease for two consecutive years to1

6,481,000 units, 76.1% of the previous fiscal year. As a result, total production in domestic andoverseas is expected to fall below 10 million units for the first time since overseas production
statistics began in 1999, to 9,546,000 units, 79.2% of the previous year. As the industry strives tobecome carbon neutral, gasoline engines, in particular, have brought about significant changes.
Next, regarding the outlook for fiscal year 2024, domestic production will increase in gasoline
engines and gas engines, but will decrease in diesel engines, resulting in a total of 3.01 million
engines, 98.2% of the previous year. It is expected to decrease for three consecutive years. On theother hand, overseas production decreased for all of gasoline, diesel and gas engines, resulting in a
total of 6,138,000 units, 94.7% of the previous year. As a result, the combined production volume indomestic and overseas will be 9,149,000 units, 95.8% of the previous year, and will be falling below
10 million units for two consecutive years.
Next, I would like to introduce the main activities of LEMA in fiscal year 2024.
The first is about carbon neutrality.
Energy reform measures to achieve carbon neutrality by 2050 are being discussed in manyoccasions. In consultation with the ministries and related organizations, we published the "Carbon
Neutrality Scenario in Internal Combustion Engines" in 2021 and updated it in 2022 and 2023. Thisyear, we plan to continue discussions and release the 2024 edition.
The second is a project to study the utilization of assets for sale of LEMA’s old building and land
after the office relocation.
With fiscal year 2024 as a new start for LEMA, we will review and consider further expansion of its
operations. This is also the content of the agenda for this general meeting.

I would like for yourconsideration.
In closing, I would like to conclude my remarks by wishing the continued success anddevelopment of the members and the good health of the attendees.
Thank you for your attendance today.

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