FURUKAWA Financial Results of FY2023 Q2 Business Briefing– Rock Drill Segment – Presentation Material November 27, 2023 TSE Prime Marke Securities code: 5715
150
△ FURUKAWA COMPANY 2
Improvement in equity in earnings of affiliates, etc. Transfer of a portion of co-ownership of the former Furukawa Osaka Building site and other land. Demolition expenses of a Furukawa Osaka Building, Furukawa Hamadori Building, Yamayo Building Loss on liquidation of two overseas subsidiaries in China and Panama in the Rock Drill segment.本FURUKAWA comp 150 3
Consolidated Balance Sheet (Unit: Million yen)
4
*FY2023 Q3,Q4 (Forecast) JPY rate per US$: 145.0 ¥/$ LME copper price: 8,000 $/ton Regard to exchange rate sensitivity. Operating income increase annually about ¥100 million due to ¥1 weak to US dollar. - Increase about ¥60 million in Machinery business (mainly Rock Drill) - Increase about ¥40 million in Metals segment
/YoY Comparison furukawa company group 6 150
- Main factor of first half results
[Net sales] (-)¥1.8 billion
[Operating profit] (-)¥0.2 billion
- Main factor of Full-year forecast
[Net sales] (-)¥0.0 billion
[Operating profit] (-)0.5 billion
- Ref: Features, destinations, market share, etc. of the main products
Infrastructure division
Pumps
Material machinery

- Net sales of the pump equipment and material machinery declined, and in the contractor business, while net sales of bridges were recorded in line with volume, a decline in construction of large projects (belt conveyors), resulted in a decline in net sales. - Loss was recorded in material machinery due to additional costs incurred as a result of plant construction delays. [Pump facilities] Morigasaki Water Reclamation Center, Hyogo East Basin Sewage Sludge Treatment Plant, etc. [Bridges] Ofuna-Terada Elevated Bridge Part 1 on the National Route 20 Hachioji South Bypass, etc. [Belt conveyors] Concrete transport equipment for dam construction, earth and sand transport equipment for tunnel excavation, etc. - Net sales is expected to increase in material machinery, bridges, and large projects. In pump equipment and environmental products (electric dust collectors), sales are expected to decline, and overall sales are projected to decrease. - Although operating profit is expected to increase mainly in bridges and large projects (belt conveyors), operating profit is projected to decrease in material machinery due to additional costs incurred as a result of delays in plant construction. Comprehensive capability to undertake all the processes from the design of construction work to its execution. Pumps products superior in the durability and abrasion resistance which was amassed through mine development. Supports section plants including machine manufacturing and sales. Quarries, limestone mines, steel works, etc. Shield tunnel construction sites, [Destinations] Belt conveyors attract attention which instead of dump trucks to transport earth and sand. Inquiries are increasing.
150 [Features] [Features] [Destinations] [Attention] [Market share]
150 First Half (Unit: Million yen) Full-year  (Unit: Million yen)
Strip mine such as  quarries, etc. Civil engineering work and at construction sites, etc. [Market share] Hydraulic breakers
- Main factor of first half results
[Net sales] Japan ¥6.6 billion +¥0.6 billion, Overseas ¥13.3 billion +¥1.2billion - Domestic sales increased due to an increase in shipments of hydraulic crawler drill units and an increase in orders in the maintenance business. Overseas sales increased as a whole due to an increase in shipments, mainly in North America.
[Operating profit] +¥1.0 billion
- Operating profit increased mainly due to increased shipments overseas and the weaker yen.
- Main factor of Full-year forecast
[Net sales] Japan ¥14.3 billion +¥0.1 billion, Overseas ¥24.4 billion +¥2.8 billion - Domestic sales are expected to increase slightly. Overseas sales are expected to increase mainly due to increased shipments in North America and the weaker yen.
[Operating profit] +¥1.0 billion
- Operating profit is expected to increase mainly due to increased shipments overseas and the effect of the yen's depreciation. - Ref: Features, destinations, market share, etc. of the main products
[Destinations] Strip mine such as limestone mines, etc. Infrastructure work in overseas, etc. [Market share] Hydraulic crawler drills
Tunnel drill jumbos

[Destinations] Dam headrace construction sites, etc. [Market share] Tunnel drill jumbos 8
First Half (Unit: Million yen) 150 Full-year (Unit: Million yen) FY2021 FY2022 FY2023 (Forecast)
- Ref: Features, destinations, market share, etc. of the main products

UNIC cranes

Wide range of models such as various boom lengths etc. which correspond to
Construction and civil engineering sites, material handling, rental companies, etc. [Market share]
- Main factor of first half results
[Net sales] Japan ¥11.0 billion +¥1.5 billion, Overseas ¥3.2 billion (-)¥1.3 billion
- Domestic sales increased due to a recovery trend in truck production delays and increased shipments of UNIC cranes. Overseas sales decreased due to lower shipments to China, Southeast Asia, Europe, and other regions. [Operating profit] (-)¥0.0 billion - Operating profit declined due to a worsening cost of sales ratio, caused by rush demand just before product price hikes.
- Main factor of Full-year forecast
[Net sales] Japan ¥22.4 billion +¥2.4 billion, Overseas ¥6.4 billion (-)¥1.4 billion
- While overseas sales are expected to decrease due to the decline in sales in H1, sales are expected to increase in Japan, where truck production is on a recovery trend. [Operating profit] (-)¥0.0 billion - Operating profit is expected to remain at about the same level as the previous fiscal year, despite increases in sales and profit in Japan, due to the expected decreases in both sales and profit overseas, as well as the soaring costs of purchased parts and materials.
Narrow or rough ground, Indoor worksites, rental companies, etc. [Destinations] [Destinations] road construction company, etc. [Market share] UNIC carriers 9
- Main factor of first half results
[Net sales] (-)¥10.5 billion
[Operating profit] +¥0.7 billion
Full-year  (Unit: Million yen)
- Main factor of Full-year forecast
Electrolytic copper
[Net sales] (-)¥29.5 billion
[Operating profit] +¥0.4 billion

- Net sales decreased, which was caused by a decline in sales volume due to the termination of the entrusted smelting contract with Onahama Smelting and Refining Co., Ltd. (At the end of March 2023). Copper (-)¥9.5 billion (volume (-)¥10.5 billion, unit price +¥0.9 billion) (-)¥0.6 billion (volume (-)¥1.8 billion, unit price +¥1.1 billion) Gold - Balance of entrusted smelting improved as unprofitable exports were significantly reduced due to lower production volume. Both copper and gold profits increased due to marginal gains from the effects of metal price fluctuations. (The table shown below) Profit/loss from metal price fluctuations in the metals segment - Ref: Features, destinations, market share, etc. of the main products It has been responsible for supplying electrolytic copper since founding, and produce approx. 46,000 tons a year. - Net sales are expected to decrease mainly due to a decrease in electrolytic copper sales volume (approx. 20,000 tons), as a result of the termination of the smelting contract with Onahama Smelting and Refining Co., Ltd.. Electric wires, copper elongation products, home appliances, communication equipment, automobiles, etc. - Operating profit is expected to increase due to improved profit/loss on consignment, although price gains from metal price fluctuations are not expected in H2. Termination of entrusted copper smelting agreement with Onahama Smelting and Refining Co., Ltd. and clear outlook on fundamentally review entrusted smelting business. Drastically cut unprofitable export.
150 First Half (Unit: Million yen) [Destinations] [FY2023] 10
150
- Main factor of first half results
[Net sales] (-)¥0.0 billion
- Net sales of high-purity metallic arsenic declined because the market for compound semiconductors is still in the inventory adjustment period. Net sales of aluminum nitride ceramics decreased due to sluggish demand for parts for semiconductor manufacturing equipment. Coil sales increased due to a recovery in automobile production and price pass-through to higher costs. [Operating profit] (-)¥0.0 billion - Operating profit decreased mainly due to lower sales of high-purity metallic arsenic and aluminum nitride ceramics.
- Main factor of Full-year forecast
[Net sales] +¥0.3 billion
- Net sales of aluminum nitride ceramics expected to decrease due to continued sluggish demand for parts for semiconductor manufacturing equipment, but net sales of high-purity metallic arsenic and coils expected to increase due to a recovery in demand for compound semiconductor products and a recovery trend in the automobile market, respectively. Overall, we expect net sales to increase.
[Operating profit] (-)¥0.1 billion
- Operating profit is expected to decrease mainly due to a decrease in profit from aluminum nitride ceramics, of which sales volume is expected to decline, despite an expected increase in profit from coils due to higher sales.
- Ref: Features, destinations, market share, etc. of the main products
High-purity metallic arsenic
[Features] We have been mass-producing the world's purest high-purity metal arsenide at 99.99995% (7N5). We also boast the global top share. [Destinations] PC, smartphones, infrared luminous parts, red LD and LEDs, etc.
Aluminum nitride ceramics

The heat-dissipating materials, high thermal conductivity, insulation, heat uniformity, corrosion resistance, was made by our proprietary technologies such as molding, sintering and processing.
[Destinations] resin-based heat-dissipation sheets, etc. [Market share] [Full production] Awareness as an excellent heat-dissipating materials is spreading, and full production continues due to  growing demand. We invested in increased production.
150
- Main factor of first half results
[Net sales] +¥0.1 billion
- Net sales of cupric oxide decreased due to lower demand for substrates, despite higher unit prices resulting from the higher copper price and price revisions. Net sales of cuprous oxide increased due to a recovery in demand for ship-bottom paints and higher sales unit prices resulting from the copper price hike and price revisions. [Operating profit] +¥0.0 billion - Operating profit increased due to higher sales.
- Main factor of Full-year forecast
[Net sales] +¥0.6 billion
- Net sales expected to increase mainly due to an increase in sales volume, higher copper prices, and price revisions for cuprous oxide and cupric oxide. [Operating profit] +¥0.1 billion - Operating profit is expected to increase due to an increase in sales.
- Ref: Features, destinations, market share, etc. of the main products
Cuprous oxide

Antifoulant for ship-bottom paints to prevent barnacle build-up. [Destinations] Ship-bottom paints manufacturer.
Packaged boards (for PC and server processors), etc. [Destinations] [Full production] Expected increased demand for package boards due to the miniaturization and high performance of electronic materials. Plan to increase the production capacity of our existing facilities.
Sulfuric acid

[Basic material]
Demand is always stable as an indispensable basic material for each industry. 12
<Main factor of change in H1> The Industrial machinery segment, which experienced a decrease in construction work for large-scale projects and additional costs incurred in plant construction, and the UNIC segment, where shipments of UNIC cranes were lower than expected due to delays in truck deliveries, posted declines in both sales and profit. Both sales and profit increased in the Rock Drill machinery segment, which had a large proportion of overseas sales and benefited from the weaker yen, and in the Metals segment, which benefited from price gains due to metal price fluctuations and the weaker yen. *Exchange rate assumptions Previous forecast 135 ¥/$ => Results 141 ¥/$ Billion yen Billion yen <Main factor of change in Full-year forecast> The Industrial machinery segment is expected to post lower sales and profit mainly due to the H1 results, and the UNIC segment is expected to record further declines in sales and profit due to lower-than-expected shipments of UNIC cranes and higher costs for purchased parts and materials. The Rock Drill machinery segment is expected to increase sales and profit mainly due to the weaker yen, and the Metals segment is expected to increase sales and profit due to price gains from metal price fluctuations and the weaker yen in H1. *Exchange rate assumptions Previous forecast 135 ¥/$ => Forecast 143 ¥/$ 13
- Outlined items in which institutional investors have shown a great interest at individual IR meetings - In this instance, three items indicated in the red box are explained
Main contents of dialogue with institutional investors

Rock Drill segment is explained on page 21 and beyond Explained on page 15 Explained on page 16 14
Basic policy Practice “marketing-based management” that incorporates CSV perspectives
Develop infrastructure that helps address social issues in such areas as preventing and mitigating disasters, which are increasing due to climate change - Realizing a prosperous society that is safe and environmentally friendly Provide products, technologies, services, and other solutions to ensure safe and secure workplaces for workers and help resolve labor shortages. Fostering the creation of "social value" Industrial Machinery segment Increase sales of pumps, material machinery, belt conveyors, equipment for large-scale domestic infrastructure projects UNIC Machinery segment Expand earnings through overseas sales while securing stable earnings in Japan Devote 70% of cumulative capital investment to the Machinery business, with the aim of that business accounting for 50% or more of consolidated net sales and 80% or more of consolidated operating profit Step up efforts related alliances and M&As to achieve discontinuous future growth 15

Disclosure Based on TCFD Recommendations
- Expressed endorsement of the TCFD recommendations in August 2023 Disclosed “Governance”, “Strategy”, “Risk Management” and “Metrics and Targets” - Scenario analysis will be conducted sequentially by segment, as the risks and opportunities associated with climate change are different for each segment As the first phase, we conducted analysis for the Rock Drill machinery and Metals segments (Disclosed in August 2023) =>In H2, we will begin analyzing scenarios for the UNIC and Chemicals segments (Plan to disclose in 2024). Subsequently, the analysis will be initiated for the Industrial ma
*Further information on disclosures based on TCFD recommendations, please see pages 39 & 40 of the Integrated Report 2023 https://www.furukawakk.co.jp/en/ir/library/pdf/20231211.pdf 16
150 - Conduct annual reviews of appropriateness of continued ownership based on comprehensive judgment of cost of capital and other factors - Continue disclose the ratio of strategic shareholdings to consolidated net assets ＦＹ２０２３  Ｐｌａｎ - Plan to sell eight brands (about ¥3.0 billion scale) The ratio is expected to decrease to about 32% at the end of March 2024 (Including deemed holdings) *Ratio of strategic shareholdings (including holdings deemed to be strategic) to consolidated net assets [Strategic Shareholding Ratio*] 2018/3 2020/3 2024/3 2019/3 2021/3 2022/3 2023/3 2017/3 (Forecast) 17
Increase due to construction of a new office building at Oyama Works, etc. Increase due to the establishment of new medical waste disposal facilities (Expansion of incinerator, total approx. ¥2.8 billion from FY2022 to FY2023) at Gunma Kankyo Recycle Center Co., Ltd., etc. Increase due to the establishment of aluminum nitride ceramics  production equipment (Total approx. ¥1 billion) in the Electronics segment, etc. Renewal of sulfuric acid manufacturing equipment in the Chemicals segment, etc. Acquisition of a rental building in Osaka in the Real Estate business (Approx. ¥1.4 billion)
[Depreciation and Amortization (Consolidated)]

[Research and Development Expenses (Consolidated)]
1,400 18
[Metal Products, Foreign Exchange Rate (Consolidated)]

<About copper production> - Production volume is expected to decrease from FY2023 due to terminated entrusted smelting contract with Onahama Smelting and Refining Co., Ltd. on March 31, 2023. Going forward, it will be produced only by Hibi Kyodo Smelting Co., Ltd., which is another contractor.
[Employee (Consolidated)

JRUKAWA CO
19
159,702 5,592 6,773 7,468
FURUKAWA 150
← Rock Drill Segment —
Key priorities
- Emphasize centralized sales and production
- Build an “FRD model” to achieve customer success  throughout the product life cycle Basic strategy - Establish FRD model in Japan Tunnel drill jumbos Hydraulic breakers Hydraulic crawler drills Strengthen Life Cycle Support business - Strengthen sales of parts and consumables - Commercialize support program for blast hole drills* - Establish trade-in resale business (tunnel drill jumbos, hydraulic crawler drills) Rock Drill Machinery: Business (product) portfolio * Comparison of FY2021 results and FY2025 image Blast hole drills, hydraulic breakers, hydraulic crushers, tunnel drill jumbos, auxiliary parts Increase in profit due to higher growth and profitability *Blast hole drills: General term for hydraulic/pneumatic crawler drills, down-the-hole drills, and attachment drills Maintenance services Profit to remain mostly unchanged despite sluggish growth and profitability Overseas: Cultivate North American market for large blast hole drills and step up development of attachment drills as frontline machines for developing the Southeast Asian quarry market (hydraulic machinery) Japan: Strengthen sales in the quarry market and deepen our presence in the demolition equipment market through concentrated sales of secondary hydraulic crushers and concentrated rollout of demolition machines in the Tokyo Metropolitan Area Production: Reduce costs through centralized production, enhance quality (to minimize complaints), and shorten lead times : Profitability 150 22 Business Description Rock Drill Machinery
23 Rock Drill Machinery Main Products
Core competence “Drifter (Rock Drill)”
Since the successful development of “Ashio-type Sanban rock drill “, the first rock drill for practical use in Japan in 1914, we have evolved and applied this drifter technology to our current product line (breakers, crushers, crawler drills, drill jumbos, etc.). In short, our strength is “drifter (rock drill)” technology. Percentage of segment sales (FY2022) Drifter (Rock Drill) 24
Regional strategy
Product strategy
Business portfolio
Review of the Medium-Term Business Policy 2022: Main Measures to Restore Performance - Selection and Concentration: Strategy to maximize strength (Concentrated production of models in which we excel, and concentrated sales in regions where we excel.) - Blast hole drills were mainly developed for the Europe =>Mismatch with main market North America - Setting up bases for global expansion =>Expansion into less effective countries - Despite the largest overseas market for blast hole drill is the North America, sales development in the past was omnidirectional Before Medium-Term Business Plan - Blast hole drill models are standardized for various needs => Bloated product range - Sales activities for the hydraulic breakers, our main products in Europe, were dependent on dealers 2019 Development of blast hole drills products matched to the North American market North America: Concentrated sales of large blast hole drills Liquidation of unprofitable sites - Withdrawal of sales companies in Latin America - Withdrawal of sales companies in Shanghai, China - De-Europeanised specifications, change to make it easier to sell in the USA - Create a centralized production system by focusing on North America - Basic design for transport posture for blasting contractor - Downsizing of sales companies in India Europe: Concentrated sales of hydraulic breakers Medium-Term Narrow down the product lineup of blast hole drills Business Policy 2022 measures - Strengthen sales in the key markets of France, Italy and Germany - Narrow down from 31 to 14 models - Cost reductions and improved production efficiency through narrowing down Implement cost increases to be passed on to the selling price - Timely implementation of price transfer - Centralized management of variable costs and selling prices 25 Business Description Rock Drill Machinery Initiatives Toward Medium-Term Business Plan 2025 - Main Measures in Overseas: Regional Strategies - - Large blast hole drills; Shift sales policy from omnidirectional to a North American focus - Creation of a third market following North America and Europe – Southeast Asia – <Concentrated sales> Large blast hole drills for North America - Concentrated sales of hydraulic crawler drills and large blast hole drills to the North American market, where demand is strong due to economic stimulus measures and infrastructure investment. <Create market> Quarry market in Southeast Asia/ Pneumatic to hydraulic induction - Targeted Southeast Asian quarry market where investment for infrastructure is expected, to introduce a hydraulic excavator-mounted attachment drill (equipped hydraulic drifter) that guides the market from pneumatic to hydraulic pressure crawler drills. Hydraulic crawler drill HCR L110-E5 - Establish base in western region to strengthen sales to blasting contactors - Strengthen stock business New base in Nevada, USA. 26 Business Description Rock Drill Machinery Initiatives Toward Medium-Term Business Plan 2025 - Main Measures in Japan: Initiatives to Achieve Customer Success* - - Solving issues such as elimination of hazardous work, manpower shortage, transfer of skills and know-how, labor savings, and efficiency improvement * The concept of “benefiting our profit” through “Achieving customers’ success”. Actively engaging with customers on a regular basis and understanding where their business i and goals. Supporting the customer's business with the products and services provided Hydraulic crawler drills/ Added semi-automatic drilling function Tunnel drill jumbos/ Fully automatic drill jumbo, Rock bolting robot - Provides products that allows even inexperienced drillers to drill Hydraulic crawler drill HCR1000-DVI ADVANCE - Provides products of automated drilling and mechanizes rock bolt placement for mountain tunnel construction sites Fully automatic drill jumbo “ROBOROCK” J32RX-Hi 27 Business Description 150 Establish FRD Model FRD Model: “Business model that achieves customer success throughout the lifecycle” Concept: Business model to maximize FRD's core competence, i.e. hydraulic drifter, and FRD's strength in the drilling market to support customer businesses throughout the lifecycle and generate profit
FRD Model Not only focused on tangible and intangible stock businesses, such as service parts, maintenance, service programs, rentals, and trade-ins, etc., but also develop both flow and stock businesses furukawa company group 28
FRD Model
“FD-CARE”, Support program for blast hole drills
|ナスコロラ Privoperation
- Supports customer productivity improvement (customer success) through DX based on various digital data obtained from F-MICAS, an operational support system for blast hole drills Program that analyzes and reports on data collected by F-MICAS and distributes reports Consulting and technical support based on measured data will help to find and solve problems in drilling operations and improve drilling and work efficiency. It also helps customers reduce CO 2 emissions. Vachine operati information 29 Business Description Rock Drill Machinery 150 Development of FRD Model - Regional/Model development

FRD Model
Model development Regional development (Regional development) Regional development of “FRD Model” established in Japan to emerging countries in South East Asia and elsewhere (Model development) After the establishment of FRD Model in the quarries in which we specialize (hole diameter of 64 mm to 127 mm), we also consider developing small model with a hole diameter of less than 64 mm, and super-large models with a hole diameter of more than 127 mm 30 Development of FRD Model - Upstream/Downstream development Upstream development Downstream development Drill bits

FRD Model
(Upstream development) Consider aggressive sales of drill accessories (bits, rods) (Downstream development) By leveraging the strengths of the FURUKAWA Company Group, which has a Rock Drill Machinery segment and an Industrial Machinery segment, we will support the optimal operation of the quarrying industry by comprehensively providing our hydraulic crawler drills and downstream products, such as crushers from our Industrial Machinery segment. (Only one foreign competitor) Through the development of this model, we will sustainably grow the rock drill business Crushers Cone Crusher GEOPUS C3 GP3-200 150 31
This document contains forward-looking statements including forecasts, expectations, assumptions, plans,  acknowledgements and evaluations regarding the Company and the Group. These statements are based on the information the Company has obtained as of the publication date and on assumptions the Company believes are reasonable. The forward-looking statements in this document and their implications may differ materially from actual results because the assumptions of the Company and the conclusions that it has reached are subjective in nature and the business environment and business activities are subject to latent risks and uncertainties. Latent risks and uncertainties that may affect the Company's forward-looking statements are explained in, but not limited to, the Company's Annual Securities Reports and the “Business Risks” section of the Company’s corporate website. Therefore, the Company does not promise or warrant the attainment of performance indicators, forecasts, or future operating results described herein. Furthermore, the Company does not undertake any obligation to update any statements in this document after its publication, irrespective of new information, future events or otherwise. You are cautioned to use this document at your own discretion. The Company is not obliged to warrant the reliance, accuracy, integrity, completeness, or timeliness of the information herein, or to bear responsibility for any damages arising as a result of using this document. This document has been prepared solely for information purposes, for better understanding of the Company's business policies and management operations. This document is not a solicitation of investment in securities. Accordingly, you are cautioned not to place undue reliance on this document when you make an investment decision. The Company does not bear any responsibility for your decision regarding your investments. 32 Thank you for your understanding and continued support. 33 Intentionally BlankへFURUKAWA COMPANY GROUP 34 ndix "Medium-Term Business Plan 2025" his is a document disclosed in the past.) FURUKAWA 150 Medium-Term Business Plan 2025 Complete Realization of Vision for 2025 Briefing for the medium-term business plan May 30, 2023 TSE Prime Marke Securities code: 5715 Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150 Review of Medium-Term Business Policy 2022 (1) Review of Performance Indicators (2) Performance Highlight Theme & Positioning of Medium-Term Business Plan (1) Management Philosophy of the Furukawa Company Group (2) The Value Creation Process of the Furukawa Company Group (3) Complete Realization of Vision for 2025 (4) Promote Cost of Capital and Stock Price Conscious Management (5) Growth Strategy Earning Plan / Capital Policy (1) Summary of Earnings plan / Capital policy (2) Review of Business Portfolio (3) Earnings Plan Strategies and Key Priorities Issues by Segment (1) Machinery  Industrial Machinery / Rock Drill Machinery / UNIC Machinery (2) Materials  Electronics / Chemicals / Metals (3) Real estate business Sustainability / Allocation of Management Resources (1) Sustainability Initiatives (2) Allocation of Management Resources, etc. URUKAWA COMPANY GROUP 2
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150 ' Established a robust earnings foundation with the Machinery business as the core business Performance recovered to pre-COVID-19 levels despite previous deterioration due to the pandemic
General note: In this document, we describe "FY202x" as the year starting April 1, 202x, and ending March 31 in the following year. 3 1
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150 Rock Drill Machinery segment strengthened and rebuilt its overseas marketing capabilities and achieved a V-shaped recovery in earnings as a result In the Metals segment, terminated our entrusted copper smelting contract with Onahama Smelting and Refining Co., Ltd. Proceed with the radical reform of the entrusted smelting business
Compared to results for FY2016, FY2019, FY2022
ROA(Operating Profit), Total Asset Turnover, Operating margin, Operating profit
FY2022 2.7 2.9 3.1 4
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) ass 150 The Furukawa Company Group will remain indispensable to society by always embracing a spirit of challenge, advancing the technologies that have underpinned the foundation of society that originated in mining development. Vision for 2025 FURUKAWA Power & Passion 150 Vision for 2025 FURUKAWA Power & Passion 150 Action guidelines Innovation Creativity Harmony ● Sustainability Promotion Meeting 5
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assi 150 Management P h i l o s o p h y The Furukawa Company Group will remain indispensable to society by always embracing a spirit of challenge, advancing the technologies that have underpinned the foundation of society that originated in mining development. It also means fostering the creation of "social value" by improving social infrastructure and realizing a safe, environmentally friendly, and prosperous society. 6
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150 Vision for 2025(Ideal image for 150th anniversary of our founding)* Become a corporate group that leverages its reputation for category leadership and uniqueness deliver growth *Established November, 2015 Leverage our unrivalled, distinctive technological capabilities to deliver growth in areas where we can demonstrate our Group strengths Differentiate ourselves by practicing “marketing-based management” that incorporates CSV perspectives Maintain and enhance our earnings base - Increase our value as a company needed by society Targeting consolidated annual operating profit regularly in excess of ¥15 billion * Phase 3    FY 2023-2025 Operating profit Approx. ¥13 billion Approx. 8% * Performance indicators in Medium-Term Business Plan 2025 do not account for new alliances and M&As ulev ətsıoqıoɔ,, to noite Operating Profit  ¥8.6 billion ROE 5.8% PERFORMANCE INDICATORs ¥9.0 billion Operating Profit 6.2% ROE ROE * As disclosed in "Consolidated Financial Results for the Fiscal Year Ended March 31, 2023' 2019 2022 2025 21
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150 ' ' - Swiftly achieve a PBR of 1x or higher by delivering sustainable growth and medium to long term enhancement of corporate value Take concrete measures to achieve ROE of approximately 8% and diminish the cost of capital Appropriately disclose information and pursuing active dialogue with investors
Specific initiatives to expand and to strengthen our corporate value creation power:
Achieving ROE of approx. 8% - Achieve consolidated operating profit of approx. ¥13 billion in FY2025 - Improve capital efficiency - Reduce strategic shareholdings -   Streamline and optimize equity capital - Shareholder return
Diminishing cost of capital
Appropriately disclose effective information related to reduce non- financial risks and emphasize active dialogue with investors - Pursue initiatives for sustainability - Invest in non-financial capital (R&D, intellectual property, human capital, DX) - Reduce financial risks - Pursue optimal capital structure with rating strategy at the core Transition of ROE 15.9 -3.6 2025 8
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150
■ Concentrate management resources on Machinery business to increase returns
Basic policy Practice “marketing-based management” that incorporates CSV perspectives Fostering the creation of “social value”
Machinery business, positioned as the core business Develop infrastructure that helps address social issues in such areas as preventing and mitigating disasters, which are increasing due to climate change Realizing a prosperous society that is safe and environmentally friendly Provide products, technologies, services, and other solutions to ensure safe and secure workplaces for workers and help resolve labor shortages. Industrial Machinery segment Rock Drill Machinery segment UNIC Machinery segment Increase sales of pumps, material machinery, belt conveyors, equipment for large-scale domestic infrastructure projects Build an “FRD model” to achieve customer success throughout the product life cycle Expand earnings through overseas sales while securing stable earnings in Japan Devote 70% of cumulative capital investment to the Machinery business, with the aim of that business accounting for 50% or more of consolidated net sales and 80% or more of consolidated operating profit Step up efforts related alliances and M&As to achieve discontinuous future growth 9
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150 Make individual investment decisions with attention to profitability, taking into account risks associated with the investment and cost of capital, while  stepping up efforts to improve efficiency and profitability Seeking to establish a robust financial base enabling us to raise the necessary funds regardless of financial conditions -   Expansion of shareholder returns (consider increasing annual dividends and paying interim dividends, share buybacks)
Transition of 20.0％ Transition of Debt-to-equity ratio / Interest-bearing debt/EBITDA ratio ●— Debt-to-equity ratio Times
2.0 1.5 3.0 1.0 0.5 0.5 0.0 2025 10 Strategic shareholdings ratio 35.1% (FY2022)
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150 Basic strategy for investment Diversify visualize and identify our business portfolio, and make rational business decisions that are not overly influenced by history Plot three factors—”corporate value creation power**, “compound annual growth rate (CAGR)”, “Corporate value created/year* for each segment on a bubble chart to accurately visualize our business portfolio ' Conduct a four-quadrant analysis based on growth potential and corporate value creation power Status of review - Conducted a fundamental review of our entrusted Materials copper smelting business Metal segment Terminated our entrusted copper smelting contract with Onahama Smelting and Refining Co., Ltd. on March 31, 2023 Furukawa Metals & Resources Co., Ltd., transferred all its shares in Onahama Smelting and Refining to Mitsubishi Materials Corporation Strengthen and rebuild our overseas marketing Machinery capabilities Rock Drill segment - Liquidating our overseas subsidiaries in Panama and China Real Estate business Solidifying earnings foundation Use site of former Furukawa Osaka Building to promote lease business
[Business Portfolio Analysis]
Bubble size: Corporate value created/year* (= Corporate value creation power x Invested capital) X% Corporate value creation power* (=ROIC - WACC)
150 Make individual investment decisions with attention to profitability, taking into account risks associated with the investment and cost of capital ' Stepping up efforts to improve efficiency and profitability ' Optimize overall allocation of management resources to achieve sustainable growth and increase corporate value over the medium to long terms by deploying a business portfolio management system that utilizes cost of capital
*Underlying assumption 135.5 FY2022 Results: Exchange rate (¥/USD) FY2025 assumption: Exchange rate (¥/USD)    135.0 * As disclosed in "Consolidated * Performance indicators in Medium- Term Business Plan 2025 do not Financial Results for the Fiscal Year Ended March 31, 2023" account for new alliances and M&As 12
150 Consolidated performance (FY2025 image): Although the compound average growth rate for net sales is expected to decline due to falling sales in the Metals segment, increased sales and profit in the Machinery business is projected to drive up the operating margin 13
150 In the core Machinery business, we expect the Industrial Machinery and UNIC Machinery segments to post increases in growth rate, operating profit, and operating margin In the Rock Drill Machinery segment, we will maintain high profitability and post increases in operating profit and operating margin despite a declining growth rate In the Materials business, we expect the Electronics and Chemicals segments to post increases in operating profit and operating margin
14 Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150
Composition ratio of operating profit: Ratio of the core Machinery business is forecast to increase from 66% (¥6.0 billion) in FY2022 (final year of Phase 2) to 81% (¥10.7 billion) in FY2025 - Operating profit is forecast to approximately double for the Group as a whole and triple for the Machinery business compared with FY2016 (base year) Comparison of operating profit composition ratios Note: "Composition ratio" refers to the percentage of the total after deducting others and adjustments. Results FY2025 Image (Medium-Term Business Plan 2025) 15 Industrial Machinery Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150 Basic strategy for investment Further strengthen our engineering capabilities and promote cross-departmental initiatives and DX to move away from being a standalone equipment manufacturer Build a business foundation in the domestic market by pursuing the United Nations Sustainable Development Goals (SDGs) and working on infrastructure development projects that help resolve social issues (such disaster as prevention/mitigation)
Key priorities
Strengthen product competitiveness and promote proposal-based sales to win orders for section plant construction projects (pumps, material machinery) Establish earnings base through stock businesses (pumps, material machinery), including by utilizing customer information management to enhance services Generate demand and promote sales of SICON® enclosed hanging conveyorsופופいわwo10 Slurry Pumps (LK3) Crushers SICON® Enclosed Hanging Conveyor
Industrial Machinery: Business (product) portfolio
Pumps Increasing profit due to growth and improved profitability Material Machinery Improving profitability and higher profit despite lower growth Belt Conveyor Improving growth and higher profit despite flat profitability steel structures and Pump equipment Increasing growth and higher profit (stemming from increased sales) despite declining profitability X：Profitability * Comparison of FY2021 results and FY2025 image 16 4 1) Machinerv Industrial Machinery Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150
Pumps
Market environment Demand for renewal of aging facilities Improving energy efficiency and longer service life
Material machinery
Demand for renewal of aging facilities
Infrastructure business
Increasing trend in construction for national land resilience, disaster prevention/mitigation measures, etc. Growing awareness of belt conveyors as an alternative to dump trucks for transporting earth and sand, resulting in increased inquiries
Belt conveyors
-    Win orders for currently planned projects (new/renewal dam construction, river flood control, tunnel construction, etc.) and solicit increased inquiries Emphasize features of SICON® (enclosed hanging conveyors) as a problem-solving method of transporting earth and sand; aim for domestic procurement and production of parts
Steel structures
Stabilize business profit by attracting firm orders for steel bridges and increasing sales of steel segments Safe and environmentally friendly method for transporting earth and sand
Slurry pumps
Targeting the nonferrous and chemicals industries (where we anticipate solid stock business earnings), we will introduce a strategic machine (new, high-efficiency slurry pump (LK3)), aiming to replace other companies’ pumps Main measures
Pump equipment
Further penetrate East Japan (where we have a good track record) and expand market share in West Japan Expected outcomes Contribute to customers’ energy savings through higher efficiency and lower running costs due to longer service life Improved productivity of customers’ operations and more stable and reliable operation of customers’ production facilities
West Japan
- Leverage our strategic machines (new screens, crushers (GEOPUS C3 and HPGR)) to tap new markets; expand market share and increase stock by encouraging customers to replace other companies’ equipment with ours
Utilize IoT technology
Utilize IoT technology to formulate sales proposals for section plants aimed at productivity improvement and rationalization, and promote servitization (kotozukuri) Strengthen our sales structure in Chugoku and Shikoku regions 17 Rock Drill Machinery Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150 Basic strategy for investment Build an “FRD model” to achieve customer success  throughout the product life cycle
Key priorities
Establish FRD model in Japan Strengthen Life Cycle Support business Strengthen sales of parts and consumables ' Commercialize support program for blast hole drills* Establish trade-in resale business (tunnel drill jumbos, hydraulic crawler drills) *Blast hole drills: General term for hydraulic/pneumatic crawler drills, down-the-hole drills, and attachment drills -   Emphasize centralized sales and production Overseas: Cultivate North American market for large blast hole drills and step up development of attachment drills as frontline machines for developing the Southeast Asian quarry market (hydraulic machinery) Japan: Strengthen sales in the quarry market and deepen our presence in the demolition equipment market through concentrated sales of secondary hydraulic crushers and concentrated rollout of demolition machines in the Tokyo Metropolitan Area Production: Reduce costs through centralized production, enhance quality (to minimize complaints), and shorten lead times Hydraulic breakers Hydraulic crawler drills Tunnel drill jumbos Rock Drill Machinery: Business (product) portfolio * Comparison of FY2021 results and FY2025 image Blast hole drills, hydraulic breakers, hydraulic crushers, tunnel drill jumbos, auxiliary parts Increase in profit due to higher growth and profitability Maintenance services Profit to remain mostly unchanged despite sluggish growth and profitability : Profitability 18 Rock Drill Machinery Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150
19 UNIC Machinery Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150 Basic strategy for investment Securing stable earnings from domestic sales and expanding earnings from overseas sales Japan: Enhance competitiveness by increasing product functionality and added value and improving service systems Overseas: Strengthening product, sales, and service technology capabilities UNIC crane Mini-crawler cranes UNIC carriers
UNIC Machinery: Business (product) portfolio
UNIC cranes (Japan and overseas) Japan: Increase in growth and higher profit (stemming from increased sales) despite declining profitability Overseas: Increase in profit due to higher growth and profitability Mini-crawler cranes(Japan and overseas) Increase in profit due to higher growth and profitability both in Japan and overseas UNIC carriers Increase in profit due to higher growth and profitability * Comparison of FY2021 results and FY2025 image
Key priorities
Japan: Strengthen competitiveness by increasing the functionality and added value of UNIC cranes and UNIC carriers and expand sales of mini-crawler cranes and ocean cranes (cranes for ships), which do not depend on trucks Overseas: Develop mounted cranes (large models) and new mini-crawler cranes, expand sales network, and strengthen sales capabilities of dealers Reinforce product development system and promote R&D to address the electrification of trucks Promote further automation, quality improvement, and cost reductions at the Sakura Works Strengthen our service system retod diword X：Profitability 20 UNIC Machinery 150
21 4 Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion 150 Basic strategy for investment Expand business in strategic products to increase earnings
Key priorities
Aluminum nitride ceramics: Increase production capacity to reinforce sales Optical products: Develop and commercialize special optical material products; increase sales of diffractive optical elements (DOEs) for laser processing High-purity metallic arsenic: Establish stable supply system that reflects market needs as a category leader Coils: Develop products and expand sales in growth areas to bolster earnings High-purity metallic arsenic Market environment Growing demand for heat-dissipating materials for semiconductor manufacturing equipment, etc. Growing market for high-quality laser processing Semiconductor market recovering moderately (due to increased demand for 5G communications, sensors, etc.) despite deterioration in the short term
Aluminum nitride ceramics
Swiftly commission facilities to achieve 1.6-fold increase in production capacity; consider investments for further production increases; develop distinctive products
Optical components
DOEs: Aim for mass adoption of laser processing -   Consolidate operations to stabilize profitability
High-purity metallic arsenic
-   Maintain our facilities preventively and ensure stable procurement of raw materials Expected outcomes Contribute to enhanced functionality of electronic devices, etc. Main measures 22 Chemicals Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150 Basic strategy for investment Increase earnings from existing products and nurture and expand newly developed products
Key priorities
Existing products Sulfuric acid: Strengthen differentiation by emphasizing high-quality sulfuric acid ' Cupric oxide: Capacity enhancement to increase sales Newly developed products Metallic copper powder: Expand sales channels by developing new applications Cupric oxide Manufacturing plant of sulfuric acid Metallic copper powder Domestic market for chemical products generally shrinking due to population decline Market environment Growing demand for batteries and related electronic components due to shift to EVs and automation of automobiles, etc. - Increasing demand for servers, etc., due to advances in networks stemming from ICT innovation
Sulfuric acid
Strengthen differentiation by emphasizing high-quality sulfuric acid for battery applications for which demand is growing
Cupric oxide
- Increase production capacity and expand sales to address rising demand for packaged substrates used in servers, etc.
Metallic copper powder
Shorten the process from sample rollout to formal adoption and develop applications other than conductive applications (such as multilayer ceramic capacitors (MLCCs)) to expand sales channels Main measures 23 Expected outcomes Help realize an environmentally friendly and prosperous society Metals Basic strategy for investment Make efforts to optimize the entrusted smelting business
Key priorities
Pursue profitability and stabilization of the entrusted smelting business Termination of entrusted copper smelting agreement with Onahama Smelting and Refining Co., Ltd. (March 31, 2023) - Strategically reduced scale of operations and drastically cut unprofitable exports - Obtained clear outlook on fundamental review of entrusted smelting business
Appendix “Medium-Term Business Plan 2025” : 2 f (This is a document disclosed in the past.lass 150
Real estate business
Basic strategy for investment Stabilize earnings from Muromachi Furukawa Mitsui Building and effectively utilize other real estate holdings, including site of former Furukawa Osaka Building
Key priorities
Promote lease business using site of former Furukawa Osaka Building Sell our interest in the site - Partial sale of the Company's interest in the site Elevation of the south side [Condominiums, hotel, restaurants] Building height .739EL Lease business planned - Plan to use proceeds from the sale to lease a hotel and some residential units scheduled to be built on the site
Overview of planned building project

No. of floors 40 above grounds; 1 basement level Scheduled completion  May 31, 2027 Note: Information shown in the architectural plan and the els 24 4
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150 The Furukawa Company Group has positioned efforts toward sustainability as one of its most important management issues. In addition to contributing to help realize a sustainable society, the Group is committed to achieving sustainable growth and enhancing medium to long term corporate value by establishing a robust corporate foundation for growth and resolving social issues through its business.
Furukawa Company Group’s Approach to Sustainability
Proactive sustainability
The Group will create corporate value and contribute to the creation of social value by developing infrastructure and providing products, technologies, and services that help to resolve social issues Materiality (Key Issues) CSV issues Providing environmentally friendly products, technologies, and services Contributing to the resolution of customer issues Contributing to the creation of a safe and comfortable society, including infrastructure development Proactive aspects Resolve social issues Contribute to the SDGs through "marketing-based management" that incorporates CSV perspectives Maximize opportunities (Improve profitability) Sustainable growth and enhancing medium to long term corporate value < < Establish a robust corporate foundation for growth (expansion and strengthening of non-financial capital) uu Promotion of climate change countermeasures in our business activities Environment -     Promotion of biodiversity preservation activities Development of a safe and rewarding work environment that takes health into consideration Recruitment and development of diverse human resources Promotion of management that respects human rights Development of an enterprise risk management system Thorough compliance Governance Strengthen and expand Groupwide risk management system
Defensive sustainability
The Group will strengthen and expand its enterprise risk management system and enhance corporate value by emphasizing business practices that reflect CSR/ESG issues recognized and to be solved by the Group. Materiality (Key Issues) CSR/ESG issues practices that reflect CSR Reduce risk (Reduce capital costs) 25 6
150 “Marketing-based management” that incorporates CSV perspectives The Group will help achieve the United Nations Sustainable Development Goals (SDGs) by practicing “marketing-based management” that incorporates CSV perspectives and creating “social value” by improving social infrastructure and realizing a safe, environmentally friendly, and prosperous society.
5
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150 ' Formulate roadmap toward carbon neutrality and conduct scenario analysis in line with TCFD recommendations aimed at addressing the CSR/ESG issue of “Promotion of climate change countermeasures in our business activities” ' ' Promote initiatives to address the CSV issue of “Provision of environmentally friendly products, technologies, and services” Enhance disclosure of information related to these initiatives Addressing decarbonization
CO2 reduction plan
CO2 reduction measures at each production site Implement a carbon-neutral declaration Work to complete a roadmap by FY2025 - Use of electricity derived from renewable energy sources, etc. ' Climate-related disclosure Express our support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations Initiate scenario analyses in the Metals segment and Rock Drill Machinery segment Promote disclosure of relevant information External evaluations ' Inclusion in SRI/ESG indexes ' Improving our external ESG-related evaluations 27
Basic policies Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion operating cash tiows 150 Prioritizing investments to achieve sustainable growth and enhance corporate value over the medium and long terms Provide stable and continuous returns to shareholders -  Investment come from retained earnings and cash flows Invest in alliances and M&As through optimal financing (including sale of strategic shareholdings) ' Support enhanced manufacturing Capital investments Invest in DX Ensure competitive advantage Invest in intellectual property Achieve discontinuous growth Invest in alliances and M&As in the value chain Invest in sustainability initiatives
Allocation of operating cash flows
While aiming to establish a robust financial base, we will make capital investments to enhance corporate value over the medium to long terms Endeavor to allocate operating cash flows in consideration of shareholder returns ¥40 billion Cash in furukawa company gro 28
150
Capital investments
Capital investment plan to support enhanced manufacturing Our capital investments will center on the Machinery business, which is positioned as our core business
Capital investments allocation image
Invest in R&D
Promote the commercialization and industrialization of development projects that help resolve social issues Revitalize our on-site capabilities to improve productivity
Key priorities
Develop automation technology aimed at labor savings Develop materials and mass production technology for solid electrolytes used in all-solid-state batteries Develop machinery-related products and technologies that deliver higher efficiency and lighter weight and otherwise help reduce environmental impact Effectively utilize DX Fully deploy our Engineer HR Development Program to step up development of engineers who will lead the next generation 29 Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion
intelleci 150
Investment in intellectual property
Develop systems that utilize IP information to secure a competitive advantage - Properly assess the value of our entire business, including IP, based on the technology rights of each operating
Key priorities
Revitalize IP activities (discovery, acquisition, maintenance, and utilization of rights) to enable us to visibly evaluate our technological capabilities Assess the value of the industrial property rights we hold in order to utilize them effectively Collect and analyze patent information and formulate corporate strategies accordingly Effectively operate within the IP landscape* *When determining their management and business strategies, companies conduct analyses that incorporate IP information into their management and business information. The results (overview of the current situation, future prospects, etc.) are shared with top executive and business managers, who obtain feedback and hold discussions and consultations for planning and consideration. Breakdown of Intellectual Property Rights Held (Domestic) by segment 30 4
Appendix “Medium-Term Business Plan 2025” nvestm (This is a document disclosed in the past. Jassion human Gamina 150
Investment in human capital
Create a rewarding company where all employees can maximize their abilities and create new value
Human resource development policy
For the Group to resolve social issues through its business activities and achieve sustainable growth and increase corporate value, it is essential to develop human resources with a variety of personalities. Commit to developing a diverse workforce capable of acting autonomously and willing to embrace the challenge of creating new value. Indicators/targets related to HR development policy Hire diverse human resources Latest result Ratio of women among new graduates hired for general positions*¹
Female manager ratio*² Ratio of new hires in management/general positions who are experienced* 1 Ratio of employees with subsidiaries 3 Develop human resources who are willing to take on challenges and act autonomously Training hours per year*1 Number of trainees per year*1 *1 Applicable: Company-registered employees *2 Applicable: Consolidated *3 Among consolidated subsidiaries subject to employment ratio system for persons with disabilities 13.00% (Applicable period: Join in FY2023)
3.33% (Applicable period: March 31, 2023) 43.75% Applicable period: Joined in FY2022) 2.49% (Applicable period: FY2022) employment rate Latest result 843.6 hours (Applicable period: FY2022) 2,506 persons (Applicable period: FY2022) 31
Investment in Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.)assion human capital 150
In-house environmental improvement policy
The Group is committed to creating comfortable workplaces where diverse human resources can perform their duties safely and efficiently while maintaining a rewarding and healthy work environment
Indicators/targets related to internal environment improvement policy

Latest result Ratio of male employees taking childcare leave* Ratio of employees returning to work after childcare leave* Ratio of employees receiving health checkups* Anomaly observation rate* Recognition as Health and Productivity Management Organization※ *Applicable: Company-registered employees
Age 40 and over: Less than 50% Under age 40: Less than 30% Obtain “White 500” certification 72.20% (Applicable period: FY2022) 87.50% (Applicable period: FY2022) 99.96% (Applicable period: FY2022) 61.20% (Applicable period: FY2021) 45.40% (Applicable period: FY2021) X (Year 2023)
Investment in alliances and M&As
Consider alliances and M&As with peripheral companies that fill the gaps in our business and create continuity, as well as with companies that will form the fourth pillar of our core Machinery business
Key priorities
● Consider and enter alliances and M&As to achieve sustainable expansion and growth ●  Pursue synergies in PMI Approach to alliances and M&As 32 5
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past. Jassion 150
Investment in DX
' Promote DX to support accelerating the Group's growth strategy and operational reforms that reflects market needs and supports reliable and attractive manufacturing and value creation
DX Promotion
System Established  the DX Promotion Committee in April 2023 to create a Groupwide  DX promotion system The committee is responsible for developing and promoting DX strategies on a Groupwide level

Utilize digital technology to accelerate sustainable management
Engage in manufacturing (monozukuri) and servitization (kotozukuri) to resolve issues faced by customers, society, and the Group and help create value - Improve and optimize technologies required to enhance productivity and improve and develop products - Improve services and create new business model Continuation and advancement of initiatives “Marketing-based management” that incorporates CSV perspectives
Examples of specific initiatives to date
Development of fully automatic drill jumbo - Automatic adjustment of driller to optimum position Complete mechanization of dedicated rock bolting machines Start of DX of carrier manufacturing process Introduction of sales support tools Opportunities/risks surrounding our business environment for practicing sustainable management Pursuit of  improved productivity and efficiency Frontline labor shortage Workstyle reforms Cost reduction Safety and security Transfer of technology and know-how Harsh working conditions 33
Appendix “Medium-Term Business Plan 2025” (This is a document disclosed in the past.) assion 150
Three Pillars of DX Promotion
Cross-organizational DX development and promotion Operational reform Using digitization and digital tools for business improvements and workstyle reforms
roitszitiv198

Medium-Term Business Plan 2025: Measures
Expected outcomes

- Expand electronic circulation and workflow - Utilize digital platforms to improve operational efficiency and advance business
Develop and strengthen DX human resources
- Use external training to develop IT human resources Improve digital literacy of staff working on DX Flexibly secure IT personnel from outside Common challenges in DX promotion Fostering DX human resources Improving the IT infrastructure Build common information infrastructure for the Group Prepare for cyberattacks and reinforce information security Shift to cloud computing and/or environment for basic-operations systems
Enhanced problem-solving capabilities through reinforcement of in- house ICT human resources Steady promotion of DX through reinforcement of ICT human resources (who are in short supply)
Infrastructure, security, governance
Establish information infrastructure indispensable for promoting DX 34