February 8, 2022
To Whom It May Concern
Takachiho Koheki Co., Ltd.
Takanobu Ide (President and CEO)Tokyo Stock Exchange First Section Code 2676
Contact person (job title)

Masaya Iwamoto(General Manager of Administrative Department)
TEL: 03-3355-1111

Announcement of New Medium-term Management Plan 2022 - 2024

On December 10, 2021, in order to apply the transitional measures regarding the listing maintenancestandards, we announced the "Plan for Compliance with the Listing Maintenance Standards of theNew Market Category." We have formulated the "New Medium-Term Management Plan 2022 2024: Challenges for Creation - Toward the 100th Anniversary of the New Normal Era", which is thecornerstone of the plan as follows.

1.

Background of the new medium-term management plan

Looking toward the end of fiscal 2021, the 70th anniversary of our founding, we have been
dedicated to achieving the management indicators and implementing the medium-term management
plan’s basic strategies which are created giving thought to the medium to long-term slogan of"Challenge to Change: Next Stage to 70th".

We believe it is important to sort out and address issues in the Group's management systems,
management plan, and business structure in light of the sluggishness of demand for advanced fire
protection systems in Southeast Asia caused by the spread of the coronavirus and other factors andalso the delay in the actualization of new businesses. In addition, in order for our Group to fulfill its
commitment to its shareholders and ensure the maintenance of its listing on the Prime market in thefuture, it is essential to reconsider the functions and synergies of Group management and toaccelerate the challenge of change with each and every employee having a sense of participation inthe management.

Based on the above, we have formulated the "New Medium-Term Management Plan 2022 - 2024:
The Challenge to Create - Toward the 100th Anniversary of the New Normal Era" as a public

commitment to achieve full compliance with the criteria for maintaining our listing on the Primemarket and in order to realize the sustainable growth and medium- to long-term enhancement ofcorporate value of our Group.

2.

Concept of the new medium-term management plan 2022 - 2024
In line with our Group's corporate philosophy and the basic policies of "Concentrating on highvalue-added businesses transformation" and "Creating new value by strengthening the management
base," we will solve customer and social issues by maximizing our Group's strengths, such as services
backed by high technological capabilities and make a great leap forward to become a company thatcan meet the expectations of our shareholders.

In addition, through the implementation of this plan, we will ensure the achievement of a market
capitalization in excess of 10 billion yen. At the same time, we will realize the maximization of ourGroup's corporate value by taking on the challenge of creation for business transformation andpromoting new business strategies, capital policies and governance.

3.

4.

Management objectives

Fiscal year ending March 2022
(forecast)Fiscal year ending March 2025
(target)Net sales

21,700 million yen

26,000 million yen

Ordinary income

1,100 million yen

2,000 million yen

Net income

770 million yen

1,400 million yen

ROE

5.3%

Dividend payout
ratio

57.8％

10.0%（target）
8.0%（required）
100％
Maintain a dividend payout ratio of
100% until the average ROE forthree years exceeds 8%.

Growth strategy for new business transformation①

Promotion and deepening of strategies for loyal customers
⁻②Growth of service business⁻③

Transformation from "selling goods" to "selling services”

Creation of future core businesses
⁻④Expand businesses with high profitability and growth potential among existing businesses

Acquiring a new revenue base through launching new businesses and business model

Strengthening the foundation of the business

⁻

Promoting initiatives for the portfolio management of businesses / digital transformation (DX)/ strengthening investment in the development of human resources/ improving capitalefficiency⑤Setting a total of 3 billion yen as the limit for strategic investments
⁻Accelerating the growth drivers by investing a total of 3 billion yen to strengthen the internal
foundation, grow and develop our focused areas (i.e. service business), and launch newbusinesses.

※

From the perspective of "growth potential" and "profitability," we will position the cloudsubscription-type service business and the maintenance business as "growth businesses"
from the period of the new medium-term management plan and review the segmentclassification.

5.

Efforts to improve the return on invested capital①

Limit increases in equity capital in order to improve return on invested capital and thebalance sheet②

Maintain a dividend payout ratio of 100% until the average ROE for three years exceeds
8%

③

6.

Consider using interest-bearing debt for large-scale investments"E･S･G" initiatives to support the new medium-term management plan①

Expansion of services that can contribute to the environmental field (E) and social field (S)⁻We contribute to the creation of a safe environment for our customers and users of our services
by providing products and services that contribute to the environmental friendliness of ourcustomers' work environments and facilities, and by providing our security services, which havethe top-class share in Japan.

②

Governance development(G)⁻Establish an investment committee to improve the quality of discussions of the board of directors
and the executive board so as to strengthen the supervisory function of the board and the review
function of investment decisions including M&A.

⁻

Strengthen the fairness, transparency and objectivity of procedures related to nominations andremuneration by the actions of the voluntary nomination and remuneration committees

⁻

Promote management from the perspective of shareholders by newly adopting ROE as a KPI
for performance-linked remuneration for Directors.

END