FY 2023
2Q Financial Material
Daitron Co., Ltd.
Securities Code: 7609

Outline of Consolidated Settlement of Accounts（performance results and earnings forecasts)

2

Quarterly Performance Change■2Q cumulative performance■ Operating income¥ 3,475 mil.
（110.4％ y/y）

Net Sales¥45,858 mil.
（108.0％ y/y）

■ Ordinary income■ Net income *¥ 3,535 mil.
（108.8％ y/y）

¥ 2,356 mil.
（108.3％ y/y)Graph of quarterly performance change

Net Sales

Operating income

Net income *Ordinary income（mil. yen）

2,142
23,471
21,2732,141

24,446

21,695

21,412
1,451

1,645

1,580

1,513
1,323

1,332

1,315

1,433

1,394
996

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

22/2Q 22/3Q 22/4Q 23/1Q 23/2Q* Net income attributable to owners of parent

22/2Q 22/3Q 22/4Q 23/1Q 23/2Q

1,125
935

922

22/2Q 22/3Q 22/4Q 23/1Q 23/2Q

3

Product Segment Quarterly Performance ChangeElectronic Equipment & Components
18,687(mil. yen)258
17,24218,000990
146
15,90316,028 16,376
902
946
418
14,963272
396
16,00020,00014,0001,856
586

12,000

248
325
515
4,484

330
701

5,661
5,036

4,612

4,629
10,000

8,000

6,000

522
1,304

555
1,339
1,511

740

801
620

595
1,323
1,631

(mil. yen)
18,00016,00014,000

4,876
12,000

756
624
1,476

775

2,049

1,967

1,791

2,008

10,000

2,049

1,336

6,000

4,000

5,274

5,986

6,140

6,034

7,095

8,000

4,000

2,000

Manufacturing Equipment
20,000

6,063

5,296

6,310
536

240
2,082

2,319

2,974

3,455

1Q/22

2Q/22

5,667
669

1,398
1,906

2,247

5,759
836

4,170

1,593

826
1,351

5,743
2,000

0

2,751

3,791

3,330

1,993

0

1Q/22

2Q/22

3Q/22

4Q/22

1Q/23

2Q/23

ElectronicComponents
Components & Assembly
Products
Electronic& Assembly
Products Semiconductors
Semiconductors
Embedded System
Embedded System
Power Supply Equipment
Power
Supply Equipment
Image-Related Equipment& Components
Image-Related Equipment & Components
Information System
Information
SystemGreen
Facility
Other
Electronic
Equipment
Green Facility
Other Electronic
Equipmentand
and Components
Components

3Q/22

4Q/22

1Q/23

2Q/23

Semiconductor/FPD Manufacturing Equipment
Semiconductor/FPD
Manufacturing Equipment Electronic Component Manufacturing Equipment
Other Manufacturing Equipment
Electronic Component Manufacturing Equipment
Other Manufacturing Equipment

4

Consolidated Financial Position Comparison (y/y)
FY 2022

2Q/2023

Difference（mil. yen）
Total assets

63,20264,757

1,555

Total liabilities

37,18936,637△552

Shareholders’equity26,00628,096

2,090

Net assets

26,012

28,1202,108Equity ratio

41.1％

43.4％

2.3Pt

Net asset per
share（yen）

2,342.79

2,530.49

187.705Performance Change by Report Segment
Net Sales from External Customers
45,85850,000(mil. yen)
45,000Operating Income
3,147

3,475

(mil. yen)

42,473
8,653

40,00010,62335,000

1,859

1,615

30,00025,00020,00035,34630,23415,00010,0005,000
02Q/2022
Domestic Sales Business2Q/2023

Domestic Manufacturing Business(Reference) Domestic Manufacturing BusinessTotal net sales including inter-segment sales

2Q/2023

5,537 mil. yen(2Q/2022

5,028 mil. yen)

Global Business2Q/2022

2Q/2023

Domestic Sales Business

Domestic Manufacturing Business

Global Business

Adjustment** Adjustment includes inter-segment eliminations
and corporate expenses that are not allocatedto individual reportable segment

6

Business Structure of the Company 2Q/2023 performance
Business

By product segment
Electronic Components& Assembly ProductsElectronic Equipment &Components

Semiconductors
Embedded System
Power Supply Equipment
Image-Related Equipment& Components
Information System

Sales composition
ratio

Gross profit
margin

25.7％

22.1％

（26.5％ 2Q/2022）（21.0％ 2Q/2022）

8.9％

21.5％

（6.7％ 2Q/2022）（21.6％ 2Q/2022）

8.8％

16.6％

（6.2％ 2Q/2022）（16.6％ 2Q/2022）（2.6％ 2Q/2022）（19.0％ 2Q/2022）（21.5％ 2Q/2022）（15.1％ 2Q/2022）

3.6％

22.8％

（2.6％ 2Q/2022）（23.1％ 2Q/2022）

3.3％

23.0％

Manufacturing New
BusiEquipmentness△15.6％（1.5％ 2Q/2022）（9.4％ 2Q/2022）

Semiconductor/FPD
Manufacturing Equipment（15.1％ 2Q/2022）（18.8％ 2Q/2022）（10.4％ 2Q/2022）（25.1％ 2Q/2022）

3.6％

16.6％

（1.8％ 2Q/2022）（21.0％ 2Q/2022）

4.2％

36.1％

（5.1％ 2Q/2022）（28.0％ 2Q/2022）

Other Manufacturing
Equipment
Green Facility

Total

6.4％

100.0％

North
America

2.4％（1.8％ 2Q/2022）

14.3％

0.9％

Electronic Component
Manufacturing Equipment

Overseas sales
ratio

18.6％

Other Electronic Equipment
and Components

11.6％

Original productratioEurope16.0％（14.7％ 2Q/2022）

0.6％（0.7％ 2Q/2022）

22.1％
31.2％

Asia

16.6％
（22.5％ 2Q/2022）

20.3％

19.6％

（19.8％ 2Q/2022）（25.0％ 2Q/2022）shows the product segments including Daitron's original products.

7

Year-on-year net sales by area
（mil. yen）

2Q/2022

2Q/2023

Difference

Domestic

31,85136,8885,307

Overseas

10,622

8,969△1,653（25.0％）（19.6％）（△5.4pt）

North
America

769

1,077

308

Europe

310

264

△46

Asia

9,542

7,627

△1,91542,47345,858

3,385

The figures in parentheses
are sales ratio

Total

8

Quarterly Order Change（by product segment）
Electronic Equipment & Components
24,00020,00018,76218,000

169
1,112
624

420

18,902

1,709
689

976

16,000667
865

14,00012,00010,000
8,000

709
1,858
2,217

5,534

1,343
1,748
2,335

6,797

7,281

4,596
894

2,261

2,096

6,000
4,000

5,738

771

1,842

22,00020,000

753

5,046
5,276

(mil. yen)

281

20,571

22,00024,00021,816(mil. yen)

Manufacturing Equipment

1,927

18,00014,780 15,383
143

16,0002,561

14,000719

12,0003,940

10,000

645
1,469
1,322

8,000

795
330
951

3,996
671
1,743
1,412

10,991
9,277

7,887
6,000

1,060
1,961

2,366

8,298
800

2,000

5,531

4,882

4,584

2,000

4,866

6,321

2,652
3,421

8,819

4,000

5,986

763
1,409

3,490

4,846

4,337
759
1,032
2,546

1,048
1,153
4,120

0

0

1Q/22

2Q/22

3Q/22

4Q/22

1Q/23

2Q/23

Electoronic
Components & &Assembly
Products
Electronic
Components
Assembly
Products Semiconductors
Semiconductors
Embedded System
Embedded System
Power Supply Euipment
Power
SupplyEquipment
Image-Related
Equipment&
Components
Image-Related Equipment & Components
Information System
Information
System Green Facility
Other Electronic
Equipment
andComponents
Components
Green Facility
Other Electronic
Equipment and

1Q/22

2Q/22

3Q/22

4Q/22

1Q/23

2Q/23

Semiconductor/FPD Manufacturing
Equipment
Semiconductor/FPD
Manufacturing
Equipment Electronic Component Manufacturing Equipment
Electronic
Component Manufacturing Equipment
Other Manufacturing Equipment
Other Manufacturing Equipment

9

Quarterly Order Backlog Change（by product segment）
Electronic Equipment & Components
50,00050,000(mil. yen)

1,326

38,14740,00035,00029,38325,00020,000

511
1,519
657
6,341
1,661
2,974

15,0004,906(mil. yen)

43,66345,00030,0001,655

35,162

1,446

715
2,903
832

3,240
996

1,129

7,440

7,434

6,933
2,454
3,385
5,770

39,585

8,177

1,179
5,773

2,634

2,906

4,323

4,943

6,011

6,166

10,814

12,17012,057

11,58245,00037,777
1,671

2,822
4,637

9,132

10,42935,34430,00025,0002,694

20,000

4,854
9,288

32,67329,649

4,823

4,795

5,445

5,290

8,615

8,218

25,82525,067

4Q/22

1Q/23

3,428

1,157
4,842
4,139

5,573

39,263 38,080 40,247

40,00035,000

7,517

10,0005,000

Manufacturing Equipment

8,023

9,105
7,572

8,690

15,00010,0005,020

18,64918,693

1Q/22

2Q/22

27,204

20,794

5,000

0

0

1Q/22

2Q/22

3Q/22

4Q/22

1Q/23

2Q/23

Electoronic
Components &&Assembly
Products
Semiconductors
Electronic
Components
Assembly
Products
Semiconductors
Embedded System
Embedded System
Power Supply Euipment
Power Supply Equipment
Image-Related Equipment & Components
Image-Related Equipment & Components
Information System
Information
System Green Facility
Other Electronic
Equipment
Components
Green Facility
Other Electronic
Equipmentand
and Components

Order Backlog for sales from next year onwards
・Electronic Equipment and Components
14,443 mil.yen
・Manufacturing Equipment
29,825 mil.yen
・total
44,268 mil.yen

3Q/22

2Q/23

Semiconductor/FPD Manufacturing
Equipment
Semiconductor/FPD
Manufacturing
Equipment Electronic Component Manufacturing Equipment
Electronic
Component Manufacturing Equipment
Other Manufacturing Equipment
Other Manufacturing Equipment

10Consolidated Performance Forecast（full-year）■ Operating income¥5,730 mil.
（94.7％ y/y）■Net Sales¥88,000 mil.
（100.4％ y/y）

■ Ordinary income¥5,730 mil.
（92.3％ y/y）

■ Net income*¥3,900 mil.
（92.0％ y/y)

Net Sales
87,639（mil. yen）

Operating income* *Net income

88,0006,051

72,341
61,621

Ordinary income

57,418

6,210

5,730

5,730
4,325

4,196

4,237

3,220

3,205
2,403

3,900

2,953
2,436

2,171
1,610

FY2019FY2020

FY2021

FY2022

FY2023
forecast

FY2019 FY2020 FY2021 FY2022 FY2023
forecast

FY2019 FY2020 FY2021 FY2022 FY2023
forecast

FY2019 FY2020 FY2021 FY2022 FY2023
forecast* Net income attributable to owners of parent

11Performance Change and Forecast by Product Segment
Electronic Equipment & Components
66,87670,000 (mil. yen)
811
63,27265,00060,00054,56155,000976

50,00045,00040,00035,00030,00040,76542,063

804
1,670
2,627

889
2,070
2,317

12,787

13,29025,00020,00015,000

1,821
3,405
3,050

1,831
3,349
3,028

10,0005,000

14,601

15,289

5,394
2,201

1,333
3,312
2,422

18,761

4,718
2,840

Manufacturing Equipment
70,000(mil. yen)(mil. yen)

65,00060,00055,00019,26550,00045,00040,00016,776
1,921
4,323
3,894

2,297
5,443

3,145

6,269

6,695

7,080

35,00030,00025,00020,00015,00019,07623,43522,322

2,751
5,326

10,0005,000

24,367

20,856

12,77915,355

17,7802,843

21,124

1,469

8,553

4,815

2,776
5,103

7,887

7,476

8,424

FY2020

FY2021

6,732
12,971

9,577

0

0

FY2019FY2020

FY2021

FY2022

FY2023
forecast

Electronic Components & Assembly Products
Semiconductors
Embedded System
Power Supply Equipment
Image-Related Equipment & Components
Information System Green Facility
Other Electronic Equipment and Components

FY2019FY2022

FY2023
forecast

Semiconductor/FPD
Manufacturing
Equipment Electronic Component Manufacturing Equipment
Semiconductor/FPD Manufacturing
Equipment
Electronic
Component
Manufacturing Equipment
Other Manufacturing Equipment
Other Manufacturing
Equipment

12

Dividend(yen)

2Q end（interim）

Period-end

Annualdividend（interim +period-end）

Initialforecast

Payoutratio

FY 2019

25

35

60

60

30.6%

FY 2020

20

30

50

50

34.4%

FY 2021

35

*45

*80

55

30.1%

FY 2022

45

70

115

80

30.1%

FY 2023
forecast

50

65

115

32.7%

*Notes Period-end dividend detail : ordinary dividends 35.00 yen, commemorative dividends 10.00 yen
Annual dvidend detail : ordinary dividends 70.00 yen, commemorative dividends 10.00 yen

13

10th Mid-Term Management Plan
【 FY2021～FY2023 】

14

Review of 10M foundation 1) Group Statement

We will create new value making use of the group Network as aEngineering Trading Company leading the electronics industry
External message

Grasp markets from a global viewpoint tocreate and provide values one step ahead ofcustomer needs
Internal message

Always create a next business and seek astage for further growth15

Review of 10M foundation 2) Long-Term Management Plan
◆ S l o g a n ◆Make a leap forward in the global market
as a technology-based company◆Long-Term Vision◆
1 Corporate image to pursue●A company that contributes to society as atechnology- based company with technical and sales
capabilities developed from a global point of view
●A company that introduces innovations and realizes
high productivity based on diversity●A company that its employees feel happy to work forand proud of●A company that has the strength of solidarity withan organizational culture of working autonomously
and actively

2 Long-term goal

Aim at aconsolidated
sales 100

billion yen
company

16

Review of 10M 1) Target Value◆Basic Concept◆● Aim at sustained expansion of net sales & operating income
through management focusing on growth potential● Seek gross profit margin of 20% by continuous business structure reform● Promote investments forming the foundation of sustained growth(Capital investment in factory-based → Shift to in human resources,
technology development, etc.）
Net Sales

Towardsustained
expansionOperating income

876（100mil. yen）

723
616

596
516

60.5

574
41.9

35.4

32.0

25.2

FY201724.0

FY2018FY20199M

FY2020

FY2021

FY2022

FY202310M
17

FY2023 (10M final year) 2) Target Management Indices

Equity ratio
Target50％

or moreROA
TargetROE

6％

or moreTarget12％

or moreResult of 2Q/2023

Result of FY2022

Result of FY2022

43.4％

7.0％

17.5％

＊For “ROA” and “ROE”, the target levels are raised based on the 9M results
For “Equity ratio”, the same target level as in 9M is set

18

FY2023 (10M final year) 3) Four Basic Strategic Policies
Basic Strategic Policy ①

Promote business structure reform!
Basic Strategic Policy ②

Maximize the merger synergy！
Basic Strategic Policy ③

Define focus areas and markets to accelerate growth！
Basic Strategic Policy ④

Increase power toward sustained growth！

19

FY2023 (10M final year) 4) Basic Strategic Policy ①
Three KPIs for business structure reform

axis of“Stability & Challenge”

axis of “Profit”

axis of “Growth”

Composition ratio bybusiness

Original product ratio

Overseas business ratio（sales base）
2023 target（sales base）
2023 target（sales base）
2023 target
New business
Manufacturing& Inspection
Equipment

5％30％Electronic
Equipment &Components

25％

30％

Result of 2Q/2023

Result of 2Q/2023

65％

Result of 2Q/2023
New business

4.2％

Manufacturing &Inspection
Equipment

21.6％

19.6％
Electronic
Equipment &Components

16.0％

74.2％
20

FY2023 (10M final year) 4) Basic Strategic Policy ②◆ Basic Strategic Policy ②◆

Maximize the merger synergy!
Build the one and only corporate group globally combining the “manufacturing” and “sales”
functions through aggressive efforts to maximize the merger (synergy) continued from 9M!

Manufacturing/
Development

Sales/Marketing
M&S Company

D&P Company

Maximized synergy
Globally develop new markets
and customers by threedivisions sharing informationand strategies andcooperating with each other

GlobalOverseas group

Investment strategy for
maximized synergy

9M

Priority to capital investments
including maintenance andreinforcement of manufacture anddevelopment locations focusing on
Chubu Factory as the Group's core
manufacturing site
Such investments settled in 9M

10M

Shift to personnel investments
for reinforcement of development,
manufacture, and salesorganizations and human resources
both at home and abroad

21

FY2023 (10M final year) 4) Basic Strategic Policy ③◆ Basic Strategic Policy ◆Define focus areas and markets
to accelerate growth!
automotive
semiconductor

industrial
equipment

Communication

IoT
5G&6G

（ including robots
and automatedequipment ）（ including
sensor related ）Main focus areas and markets
Computing related

data
centermedicalenergyrailroad
vehiclereleated

marineaerospace（ including battery market ）22

FY2023 (10M final year) 4) Basic Strategic Policy ④◆ Basic Strategic Policy ◆Increase power toward sustained growth!
Increase
marketing power！

Reinforcement and1 steady growth ofdomestic business2

Increasemanufacturing power！

Reinforcement of3
production system

Reinforcement of
4 original productbusiness

Increase new businesscreation power！

5 Development of new business

Increase the power ofcorporate divisions！

6 Reform of business support function

Growth ofoverseas business23

FY2023 (10M final year) ５) Specific Strategy ①
1 Reinforcement and steady growth of domestic business

Increase marketing power ！

● Further strengthening and deepening of relations with focus customers
・Strengthening of customer base:Response focusing on customers expected to grow and expand
・Deepening of relations with customers:
By deployment of "All-Daitron" products● Further strengthening of “locally based sales activities” and new
development in promising areas
・Personnel reinforcement at and promotion tosales offices of promising locations
・Examination of establishment of new locationsin promising areas (such as Hokkaido, Shikoku)

Circled areas are underinvestigation forestablishing new locations

24

FY2023 (10M final year) 5) Specific Strategy ②2 Growth of overseas businessChanges by overseas sales ratio(mil. yen)

87,63988,00072,341
61,621
27.1%

25.5%
20.5%

22,38016,846

16,713

FY2021
Overseas Sales

・Investigation of EU location⇒ start business in April 2023 : The Netherlands
・Investigation of establishing new satellite
offices in US and China
・Making main Southeast Asian locations subsidiaries⇒ start business in March 2023 : Singapore【Manufacturing location】

11,744

Net Sales

・Image business related in Southeast Asia
・Electronic merchandise related in China
・OLED market related in Korea
・Electronic parts business related in Europe and US【Sales location】

57,418FY2020●Focus customers・market development●Expanding overseas network

23.3%

FY2019

Increase marketing power ！

FY2022

FY2023
Forecast
Overseas Sales ratio

・Investigation of manufacturing location inSoutheast Asia (candidate: Vietnam)⇒ toward next Mid-Term Plan

25

FY2023 (10M final year) 5) Specific Strategy ③
3 Strengthening of production system

Increasemanufacturing power ！

●System strengthening focusing on
Chubu Factory・Concentrate production mainly of products
requiring advanced technologies and highquality (continuously from 9M)
・Construction of cooperation system with
Daito Tec

Chubu Factory

Electronic equipment & parts
production site (in First Factory)●Promotion of multifaceted
cost-reduction measures
・Pursuit of profitability by factory/product/business・Continuous cost-reduction activities
through promotion of “standardization”●Strengthening of earnings structure
・Expansion of OEM business・Strengthening of online sales(agency operations)

Manufacturing equipment production
site (in Second Factory)26

FY2023 (10M final year) 5) Specific Strategy ④4 Strengthening of original product businessChanges by original product ratio(mil. yen)

87,63988,00019.1%

57,41818.3%
15.8%

11,768FY2019Sales

10,495

11,409FY2020

FY2021

Original product sales

manufacturing power ！

●Strengthening of systems
centering on technical divisions●More emphasis on
product/technology development

72,341
61,621

Increase

16.0%

14,050

FY2022

FY2023
Forecast

Original product ratio

・Strengthening of development of“standard products” suitable for mass
production/planned production
・Promotion of development for achieving
issues by segment【Electronic parts business】⇒ Component ：underwater connectors⇒ Image： successor of KIRARI-NINJA,
IoT sensor⇒ Power Supply：Inverter tranceless UPS,
next power supply development
・ Expansion of original products incollaboration with partner companies* Changed to a tally limited to the Daitron Group's own
development and collaboration with partner companies.

27

FY2023 (10M final year) 5) Specific Strategy ⑤
５ Cultivation of new business

Target 5％●Cultivation of and groundwork for
new business as new revenue baseTarget sales size

Increase new businesscreation power ！

Example of new business
cultivated in 9M

Result of “Green Facility Dept. ”

・Toward creation of 5 to 10 billion
yen businessNew development activities
focusing on “power“power supply
supplysystemsystem related
related market”
marketTarget area

Sales comparison (yearly average)

・Markets and merchandise not worked
on before⇒ 【Candidate】
・Software ・ECO-related business, etc.

【8M】

【9M】

0.48 bil. 380%up 2.27 bil.

Approach・To organizationally examine
establishment of “new businesspromotion system”⇒ Established new organization in 2023.
“Group Business Promotion Dept.”28

FY2023 (10M final year) 5) Specific Strategy ⑥
6

Reform of business support function● Strengthening of ” humanresources power”
Seek revitalization of organization
by “diversity”① Review of personnel evaluation system
・ Stable operation of merit rating system and penetrationof requirement definition document by rank
・ Job performance evaluation, promotion system, etc.

② Promotion of adoption and utilizationof diverse human resources

・ Systematic hiring of new graduates (foreign humanresources) and mid-career employees
・ Promotion of utilization of foreign/senior/handicappedhuman resources③ Enhancement of human resources
development

・ Systematization of education and training systems fordeveloping human resources with market value
・ Enhancement of development of female managers
・ Enhancement of career path system④ Response to the COVID-19 era andworking practices reform

Increase the power ofcorporate divisions ！

● Strengthening of"corporate division"
Promotion of foundationbuilding eyeing the next era【IT strategy】▶ Development of road map
toward the next core system【Financing strategy】▶ Total assets compression andmanagement cost reduction【PR strategy】▶ Increasing recognition ofDaitron brand【Governance】▶ Further strengthening ofcorporate governance・ Institutional design for diverse ways of working eyeing
the post COVID-19 era

29

Sustainability

30

Sustainability of Daitron Group 1/5■Sustainability System Chart
We established the “Management Philosophy” in 1993, which spells
Foundation Spirit
Code of Conduct
Management
Philosophy

Sustainability
Materiality

Basic CSR Policy

out our responsibilities for corporate ethics, global environment andsocial contribution, not to mention compliance with laws andregulations. Our sustainability is organized in this management
philosophy and its origins, the "Founding Spirit" and "Code of
Conduct" at the top. In addition, we decided to continuingly pursue
the "Basic CSR Policy" established in 2011, and specified our key issues toward sustainability in the name of “Materiality” in February
2022. As the basis of the sustainability system, we positioned the

Basic Policy on Corporate Governancecorporate governance system that governs all our activities andhave established the "Basic Policy on Corporate Governance".

■Daitron's Idea of Sustainability
We at Daitron Group work to improve our own corporate value to provide a variety of value for the electronics andother industries as well as the entire society beyond by promoting management putting emphasis on a long-term
perspective, starting with the Management Philosophy, Group Statement, and the Long-Term Vision, which sets out
the corporate image we aim for.

Daitron Group, seeking to continuously promote our business activities directly connected to sustainability as apublic instrument, has recently specified our Materiality, in addition to the Basic CSR Policy.
Through aggressive business activities based on the healthy and strong management foundations, we are working
toward creation of the five items of value ("Five Values"): partner value, human value, social value, environmental
value, and economic value, determined to contribute toward the accomplishment of the SDGs (sustainable
development goals).

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Sustainability of Daitron Group 2/5■Materiality 1. Each Materiality and SDGs
We at Daitron Group believe that the pursuit of the specified five Materiality will lead us to contribute to the accomplishmentof many goals included in the SDGs. By more deeply involving ourselves in the accomplishment of more goals in the courseof promoting the sustainability management, we will multilaterally contribute to the realization of a sustainable society.
To work for the creation of diverse partner＊
value as an engineering trading company
with the manufacturing function＊

Partner value
creation

Human
resource value
creation

To promote a personnel strategy
making much of diversity tocontribute to the innovation
creation of the industry

To contribute to the creation of socialand environmental value, making fulluse of most-advanced electronics
technologies

Materiality(key issues) ofDaitronSocial/environ
Economic
mental value
Groupvalue creation
creation

To build a healthy and strong
management foundations as thebases for creating the Five Values

To continuingly work to create highadded value one step ahead for
maximized economic value

Managementfoundations
establishment＊About "Partner”
The term "partner" refers to both "customer" and "supplier". The Groupis promoting the building of deeper and more multiple relationships oftrust with its partners and the strengthening of its partner base, with its
best customers becoming its most important suppliers (and vice versa).

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Sustainability of Daitron Group 3/5－①■Materiality 2. Primary Efforts and Focus Themes (1/2)
In pursuit of the Five Materiality toward further progress, we have clarified the direction of the efforts through “Primary Efforts
and Focus Themes”. We established “the Sustainability Committee” as an internal committee in May 2022. In the next step, by
setting representative KPIs for each materiality and objectively ascertaining their progress, we will promote our sustainability
management.

Category

Materiality

Partner value
creation●Reinforcement of manufacturing function (= enhancement oftechnological, developmental, and manufacturing technologicalcapabilities)
To work for the creation of diverse●Reinforcement of trading function (= enhancement of marketing
power, partner base, and sales capabilities)
partner value as an engineering trading●Developmentof new markets and new customers (= creation ofcompany with the manufacturing function
sustainable new partner value)●Contribution to the introduction of ICT and automation acrossindustry to support improvements in productivity and efficiency

Human
To promote a personnel strategy making
resource value much of diversity to contribute to theinnovation creation of the industry
creation

Primary Efforts and Focus Themes●Diversity-minded adoption and utilization of human resources●Establishment of personnel and education/training systems whichlead diversity to innovation●Respect for human rights of all employees, and support for therealization of society respectful of human rights●Creation of a satisfying workplace (safe work environment, workstyle reform, and career-path system)

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Sustainability of Daitron Group 3/5－②■Materiality 2. Primary Efforts and Focus Themes (2/2)
Category

Materiality

Primary Efforts and Focus Themes

To contribute to the creation of social
Social value
and environmental value, making fullcreation
Environmental use of most-advanced electronics
value creation technologies●Contribution to ICT infrastructure, air, sea and land infrastructure,and the energy industry to support the convenient, safe andsecure lives of people●Contribution to environmental load reduction through provision ofelectronics technologies to a wide area of industry

To continuingly work to create highEconomic
added value one step ahead forvalue creation
maximized economic value●Continuous devotion to the development of high added value
products and services toward creation of value one step ahead●Promotion of business offering more comprehensive solution as
the basics for the above purpose●Contribution to not only the Group's own improved earnings but
also industry-wide maximized economic value through thedevelopment and distribution of high added value products andservicesManagement To build a healthy and strong
foundations
management foundations as the bases
establishment for creating the Five Values●Reinforcement of corporate governance, compliance, and risk
management systems●Securing of sound financial bases (improved equity ratio andreduced management costs)●Enhancement of the BCP (business continuity plan) and supply
chain management●Thorough reinforcement of environmental management systems
and quality management systems

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Sustainability of Daitron Group 4/5■Basic CSR Policy
Environmental Policy

Safety and Health Policy

We will promote, and continuously improve, environmental
management system activities to reduce environmental impacts ofour business operations ranging from design, manufacture, andsales of products to related services and achieve harmony with theWe will seek to provide employees with safe and sanitary working
environments for the purpose of minimizing occupational injuries
and diseases, and improving the retention rate and morale ofemployees in addition to the quality of products and services.

global environment.

Quality Policy
We will establish an effective quality management system for the
purpose of providing products and services meeting the
expectations and needs of customers.

Human Rights Policy
We will assist in the realization of a society in which respect is given
to human rights. In order for that, we are determined to exert
efforts to fulfill the responsibility for respecting human rights while
making contributions to society through business activities.

Business Ethics
We will observe the highest level of business ethics to fulfill its
social responsibility and achieve success in the market.

Social Contribution
In 2001, the late Mr. Zenshiro Takamoto, the Company's founder,
established the Daitron Welfare Foundation to sponsor handicapped
employment supporting institutions, etc. as well as researchorganizations studying how to help the handicapped participate insociety and improve their lives.
The Company is actively
supporting these social action activities in sympathy with themincluding contributions to this Foundation.

Labor Policy
We will respect the human rights of all employees and treat themwith respect of their dignity in a manner to win international
understanding.

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Sustainability of Daitron Group 5/5■Our Basic Policy on Corporate GovernanceAmid this rapidly changing business environment surrounding corporations with the increasing globalization of the world economy, forcorporate health and sustainable growth we are aware that improving the management system and enhancing corporate governance from theshareholders-oriented standpoint are among the most important challenges for us. The key elements of our corporate governance principles
include building good relationships of trust with all the stakeholders, ensuring timely and proper information disclosure and managementtransparency for shareholders, and following effective and healthy operating procedures, all of which are based on the Management
Philosophy.

Compliance and Corporate Ethics

Risk Management

We established the Compliance Committee to formulate basic
compliance policies and manuals that provide for the codes of
ethics focusing on compliance with external relevant laws andregulations as well as internal rules of the Company. With thissystem implemented we are strengthening internal governance andpromoting compliance activities for sound and smooth operation of
the whole Group.

We regard risk management as a matter of extremely high priority
in business administration and have established the Risk
Management Committee, which is designed to work together with
the Compliance Committee for the purpose of improved corporate
value and reliability. Their mission is to prevent diverse possible
risks that could seriously affect our business administration, toquickly and properly cope with each situation so that it would not
damage the stakeholders' interests, and consequently to conserve
management resources.
Under this system administrators incharge of carrying out these activities are designated from eachsection, who are required to report promptly on the occurrence of
any important issue concerning risk management.

Timely Disclosure and Information Management
We have created the Information Disclosure Committee forsecuring timely and appropriate disclosure of important corporate
information while keeping it true, complete and accurate, which
system has made possible a fair and quick decision on when andwhat information should be disclosed. We also have set up theinformation security rules and personal information protection rules
for thoroughgoing information management.

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Conclusion・・・

Toward a technology-based company
The Daitron Group is going toevolve with its employees asa technology-based company inthe electronics industry to create
new value for the global market.
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Attention for use of material

The Company's earnings forecasts stated in this material are preparedbased on the information currently available to us.
In the electronic equipment/parts industry and the manufacturing
equipment industry, which the Company belongs to, technologies
change very rapidly and competition is intense.
In addition, there are various external factors that may affect directly
or indirectly the performance of the Company such as the economic
conditions of Europe, North America and Asian countries.
Please note that, therefore, the Company's earnings may vary fromthe forecast in this material.
<<For inquiry concerning this material and our IR activities>>
IR Team, Business Management Dept.
TEL： +81-6-6399-5952
FAX： +81-6-6399-5962
E-mail： info.ir＠daitron.co.jp

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