# EDGAR Filing Document

**Accession Number:** 0002089404
**File Stem:** 0000947871-26-000609
**Filing Date:** 2026-6
**Character Count:** 749949
**Document Hash:** b552838dd89e4cc5d88602871a5057dd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000947871-26-000609.hdr.sgml**: 20260603

**ACCESSION NUMBER**: 0000947871-26-000609

**CONFORMED SUBMISSION TYPE**: CB

**PUBLIC DOCUMENT COUNT**: 10

**FILED AS OF DATE**: 20260603

**DATE AS OF CHANGE**: 20260603

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NOK Corp
- **CENTRAL INDEX KEY:** 0002089404

**ORGANIZATION NAME:**
- **EIN:** 980110093
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** CB
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 005-95319
- **FILM NUMBER:** 261059228

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 1-12-15 SHIBADAIMON
- **STREET 2:** MINATO-KU
- **CITY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 105-8585
- **BUSINESS PHONE:** 81-3-3432-4211

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 1-12-15 SHIBADAIMON
- **STREET 2:** MINATO-KU
- **CITY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 105-8585
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Eagle Industry Co., Ltd.
- **CENTRAL INDEX KEY:** 0002091923

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** CB

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** SHIBA PARK BUILDING B-14F
- **STREET 2:** 2-4-1 SHIBAKOEN, MINATO-KU
- **CITY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 105-0011
- **BUSINESS PHONE:** 81-3-3438-2291

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** SHIBA PARK BUILDING B-14F
- **STREET 2:** 2-4-1 SHIBAKOEN, MINATO-KU
- **CITY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 105-0011

**UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549** 

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FORM CB<br> TENDER OFFER/RIGHTS OFFERING NOTIFICATION FORM<br>

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| | |
|:---|:---|
| Please place an X in the box(es) to designate the appropriate rule provision(s) relied upon to file this Form: | Please place an X in the box(es) to designate the appropriate rule provision(s) relied upon to file this Form: |
| Securities Act Rule 801 (Rights Offering) | □ |
| Securities Act Rule 802 (Exchange Offer) | ⌧ |
| Exchange Act Rule 13e-4(h)(8) (Issuer Tender Offer) | □ |
| Exchange Act Rule 14d-1(c) (Third Party Tender Offer) | □ |
| Exchange Act Rule 14e-2(d) (Subject Company Response) | □ |

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| |
|:---|
| <br> **NOK Kabushiki Kaisha**<br>|
| (Name of Subject Company)<br>|
| **NOK CORPORATION** |
| (Translation of Subject Company's Name into English (if applicable)) |
| **Japan** |
| (Jurisdiction of Subject Company's Incorporation or Organization) |
| **NOK CORPORATION**<br> **Eagle Industry Co., Ltd.**<br>|
| (Name of Person(s) Furnishing Form) |
| **Common Stock** |
| (Title of Class of Subject Securities) |
| **N/A** |
| (CUSIP Number of Class of Securities (if applicable)) |
| <br> **NOK CORPORATION**<br> **Attn: Yutaka Nomura**<br> **Erika Iwamoto**<br> **1-12-15, Shibadaimon, Minato-ku, Tokyo 105-8585, Japan**<br> **+81-3-5405-6370**<br>|
| (Name, Address (including zip code) and Telephone Number (including area code)<br> of Person(s) Authorized to Receive Notices and Communications on Behalf of Subject Company)<br>|
| **N/A** |
| (Date Tender Offer/Rights Offering Commenced) |

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**PART I – INFORMATION SENT TO SECURITY HOLDERS**

**Item 1. Home Jurisdiction Documents** 

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| | |
|:---|:---|
| &nbsp;&nbsp;**Exhibit**<br> **<u>Number</u>** |  |
| &nbsp;&nbsp;99.1 | &nbsp;&nbsp;[Notice of the 120th Annual Shareholders' Meeting, dated June 3, 2026 (English translation)](ss6383699_ex9901-nok.htm) |
| &nbsp;&nbsp;99.2 | &nbsp;&nbsp;[Business Report for the 120th Term, from April 1, 2025 to March 31, 2026 (English translation)](ss6383699_ex9902-nok.htm) |
| &nbsp;&nbsp;99.3 | &nbsp;&nbsp;[Business Report for the 120th Term, from April 1, 2025 to March 31, 2026 (items subject to electronic provision measures excluded from paper-based documents delivered upon request) (English translation)](ss6383699_ex9903-nok.htm) |
| &nbsp;&nbsp;99.4 | &nbsp;&nbsp;[Content of the financial statements for the most recent fiscal year (fiscal year ended March 31, 2026) of Eagle Industry Co., Ltd. in the first item, "Approval of a Share Transfer Plan" (English translation)](ss6383699_ex9904-nok.htm) |

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**Item 2. Informational Legends**

The required legends are prominently included in the documents referred to in Item 1.

**PART II – INFORMATION NOT REQUIRED TO BE SENT TO SECURITY HOLDERS** 

N/A

**PART III – CONSENT TO SERVICE OF PROCESS**

NOK CORPORATION submitted to the Securities and Exchange Commission a written irrevocable consent and power of attorney on Form F-X dated November 12, 2025.<br> Eagle Industry Co., Ltd. submitted to the Securities and Exchange Commission a written irrevocable consent and power of attorney on Form F-X dated November 12, 2025.<br>

**SIGNATURES** 

After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

---

| |
|:---|
| **NOK CORPORATION** |
| /s/ Akira Watanabe |
| Name: Akira Watanabe |
| Title: Director, Senior Executive Officer |

---

Date: June 3, 2026

**SIGNATURES** 

After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

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| |
|:---|
| **Eagle Industry Co., Ltd.** |
| /s/ Masaki Nakao |
| Name: Masaki Nakao |
| Title: Representative Director, <br> Executive Vice President |

---

Date: June 3, 2026

## Exhibit 99.1

**Exhibit 99.1**

&nbsp;&nbsp; The share transfer described in this document involves securities of a Japanese company. The share transfer is subject to disclosure requirements of Japan that are different from those of the United States. Financial information included in this document, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies.<br>It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment. You should be aware that the issuer may purchase securities otherwise than under the share transfer, such as in the open market or through privately negotiated purchases.<br>This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.<br>

(Securities Code No. 7240)

(Issue Date) June 5, 2026

(Start Date of Electronic Provision Measures) June 3, 2026

To Shareholders

Masao Tsuru Representative Director, Group Chief Executive Officer NOK CORPORATION 12-15, Shiba-Daimon 1-chome, Minato Ward, Tokyo

**Notice of the 120th Annual Shareholders' Meeting**

We are pleased to announce the 120th Annual Shareholders' Meeting of NOK CORPORATION will be held according to the schedule given below.

In the course of convening this Annual Shareholders' Meeting, we have taken measures for providing information that constitutes the content of reference materials, etc. for the shareholders' meeting in electronic format by posting it on the following websites. Please visit any of the following websites to familiarize yourself with this electronically provided information.

The Company's website:

https://www.nokgrp.com (in Japanese)

(Please visit this website and then click "Investor Relations," "Stock Information," and "Materials of Shareholders Meeting" in that order.)

Dedicated website for Reference Materials for the Annual Shareholders' Meeting:

https://d.sokai.jp/7240/teiji/ (in Japanese)

Tokyo Stock Exchange website (TSE Listed Company Search):

https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show (in Japanese)

(Please visit this website and enter "NOK" into the "Issue name (company name)" field or "7240" into the "Code" field, click "Search," "Basic information," and "Documents for public inspection/PR information" in that order. Under "Filed information available for public inspection," click a button for "Notice of General Shareholders Meeting/Informational Materials for a General Shareholders Meeting.")

**If you are unable to attend the meeting in person, you may exercise your right to vote online or in writing. Please review the attached Reference Materials for the Annual Shareholders' Meeting and exercise your voting rights by 5:15 p.m. on Wednesday, June 24, 2026.**

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| | |
|:---|:---|
| &nbsp;&nbsp;**1. Time**: | &nbsp;&nbsp;10:00 a.m., June 25, 2026 (Thursday) |

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| | |
|:---|:---|
| &nbsp;&nbsp;**2. Place**: | &nbsp;&nbsp;Meeting room at the Company's head office <br> 12-15, Shiba-Daimon 1-chome, Minato Ward, Tokyo |

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**3. Agenda**:

**Report**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Business Report, Consolidated Financial Statements and Audit Reports concerning Consolidated Financial
Statements by the Independent Auditor and the Audit & Supervisory Committee for the 120th Term (April 1, 2025 to March 31, 2026)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Financial Statements for the 120th Term (April 1, 2025 to March 31, 2026)

**Items for Resolution**

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| | |
|:---|:---|
| **First Item:** | Approval of a Share Transfer Plan |
| **Second Item:** | Appropriation of surplus |
| **Third Item:** | Election of four (4) Directors who are not Audit & Supervisory Committee Members |
| **Fourth Item:** | Election of five (5) Directors who are Audit & Supervisory Committee Members |

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**4. Exercise of voting rights**

If you exercise your voting rights both in writing and via the Internet, the vote you cast via the Internet will be considered as the valid exercise of your voting rights.

If you exercise your voting rights via the Internet more than once, your most recent vote will be considered the valid exercise of your voting rights.

\* If you plan to attend the meeting in person, please present the enclosed voting form at the reception desk.

\* If electronically provided information is revised, the Company will post a notice of the revisions and the original and revised versions of the information on the websites listed above.

\* The Company has attached the Reference Materials for the Annual Shareholders' Meeting to this notice so that you have what you need to check the details of proposals.

\* The physical copies of electronically provided information the Company sends to all shareholders who request them do not include the following information under the provisions of laws and regulations and the Articles of Incorporation of the Company. Therefore, the documents listed in these copies are part of the documents audited by the Independent Auditor and Audit & Supervisory Committee in the course of preparing their Audit Report Concerning Financial Statements and Audit Report.

&nbsp;&nbsp;&nbsp;&nbsp;(i) "System for Ensuring Properness of Operations" for Business Report

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Consolidated Statement of Changes in Net Assets" and "Notes to Consolidated Financial
Statements" in the Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Statement of Changes in Net Assets" and "Notes to Financial Statements" in the
Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "(1) Content of the financial statements for the most recent fiscal year (fiscal year ended March
31, 2026)" under "4. Information on Eagle Industry" of the First Item, "Approval of a Share Transfer Plan,"
of the Reference Materials for the Annual Shareholders' Meeting

\* If you plan to attend the meeting in person and require assistance, please contact a venue staff member.

\* No gifts will be distributed at this Annual Shareholders' Meeting.

**<u>Reference Materials for the Annual Shareholders' Meeting</u>**

**First Item: Approval of a Share Transfer Plan**

The Company and Eagle Industry Co., Ltd. ("Eagle Industry"; the Company and Eagle Industry are collectively referred to as the "Companies") hereby announce that they agreed, and resolved at their respective board of directors' meetings held on November 10, 2025, to establish NOK Group Corporation (the "Joint Holding Company") as a wholly owning parent company of the Companies on October 1, 2026 (scheduled) (the "Effective Date") through a joint share transfer (the "Share Transfer") (the "Management Integration"). Accordingly, the Companies executed a management integration agreement (the "Management Integration Agreement") as of November 10, 2025 and jointly prepared a written share transfer plan for the Share Transfer. In addition, under the agreement dated May 21, 2026, the Company and Eagle Industry made amendments to the Attachment (Articles of Incorporation of the Joint Holding Company) to that share transfer plan (the amended share transfer plan is hereinafter referred to as the "Share Transfer Plan").

Accordingly, we would like to request your approval for the Share Transfer Plan.

The reasons for conducting the Share Transfer, an outline of the details of the Share Transfer Plan, and other matters related to this Item are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reasons for the Share Transfer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Background of the Management Integration

The Company was established in 1941 as Nippon Bearing Production Co., Ltd., which manufactured and sold rubber oil seals. Since then, the Company has been supplying seal products that are essential not only for the Japanese automobile industry but also for general industrial equipment on a global basis. Since the establishment of NIPPON MEKTRON, LTD. (currently MEKTEC CORPORATION) in 1969, NOK has continued to develop and supply flexible printed circuit boards, which are essential for the proliferation and miniaturization of electronic products such as voltage monitoring components for automotive secondary batteries, in addition to meet the growing demand for cameras, personal computers, mobile phones, smartphones, data centers.

Eagle Industry was established in 1964 as Nihon Sealol Co., Ltd., when the Company's mechanical seal manufacturing division became independent. For more than half a century since then, Eagle Industry has expanded its business to contribute to the development of various industries and society through the development, production, and sales of mechanical seals and other equipment, from materials to products, and has firmly established itself as a comprehensive manufacturer of mechanical seals in five (5) business fields: automobiles and construction machinery, general industrial machinery, semiconductors, marine, and aerospace.

A certain level of business relationship has been maintained between the Companies, with the Company acting as a distributor for Eagle Industry's automotive products in Japan, as well as through raw material purchases and personnel exchanges. However, the business environment surrounding the Companies is characterized by progress in various fields, including the automotive industry, which is the main market for the Companies, toward achieving carbon neutrality as a measure against climate change, and so the Companies share important challenges, such as the development of new products that contribute to the environment and energy conservation for the next-generation mobility and next-generation energy markets, as well as the further expansion of sales channels overseas.

In addition, each company has been conducting their own business activities, including research and development, production, and sales, for their main products, oil seals for the Company and mechanical seals for Eagle Industry, from the viewpoints of their materials and product functionality. However, in light of these changes in the business environment, the Companies have held sincere discussions on their future directions and have concluded that with regard to the "sealing" function of shaft seals in rotating machinery, they share the common goal of providing "sealing solutions" from a comprehensive perspective, and that integrating said activities will enable them to provide products and services that will further improve customer satisfaction and lead to problem-solving in each of their respective business fields. To this end, the Companies reached a final agreement on the Management Integration through the establishment of the Joint Holding Company, based on the shared recognition that the establishment of a unified management structure within the Group would contribute to enhancing the corporate value of both companies and further deepen their business relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Purpose and synergies of the Management Integration

The Management Integration aims to further enhance corporate value through the efficient and effective mutual use of the management resources of the Companies. The synergies of the integration will be further examined in the integration preparation process, but at present, realization of the following effects is expected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Further business growth by optimizing Group resources

The Companies both focus on seal products as the core of their business, but the Company focuses on oil seals while Eagle Industry focuses on mechanical seals. The application areas, basic technologies, and product characteristics of the Companies' core products are different, and each company has its own customer base and strengths and know-how in sales, technology, and production. The Management Integration will enable the efficient use of the management resources of the Companies and will provide room for further expansion of sales to their respective customer bases. In addition, in terms of technology, the combination of the Companies' strengths, from the Company's organic materials, mainly rubber, to Eagle Industry's inorganic materials, mainly metals and ceramics, are expected to create growth opportunities through the further expansion of future product portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Strengthened profitability through efficient business management

As the business domains of the Companies are gradually expanding, some overlap has arisen, and the integration will promote more efficient business operations. On the sales side, streamlining of distribution and more efficient operation of sales offices are expected. On the production side, in addition to the effective use of the Companies' global bases, increased efficiency through means such as expanding the in-house production of tools and molds, which are important production materials, and improving purchasing power accompanying the expansion of scale, are expected to lead to improved profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) More effective allocation of management resources

With regard to the functions required for the holding company to be established after the Management Integration, indirect departments will be consolidated and integrated to optimize the allocation of Group management resources and improve efficiency.

In addition, the strategic functions integrated into the holding company will plan and execute investment strategies that take a bird's-eye view of the entire seal business of the Companies and the Group as a whole, promoting business investment, including M&A, and cash flow allocation more strategically with the aim of increasing corporate value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Outline of the details of the Share Transfer Plan

The details of the Share Transfer Plan are described in the "Share Transfer Plan (Copy)" below. The Articles of Incorporation contained in the Attachment to the Share Transfer Plan (Copy) below reflects the amendments made by the agreement dated May 21, 2026 between the Companies.

Share Transfer Plan (Copy)

NOK CORPORATION ("NOK") and Eagle Industry Co., Ltd. ("Eagle Industry") have agreed to implement a share transfer through a joint share transfer, and hereby jointly prepare a share transfer plan (the "Plan") as follows:

(Share Transfer)

Article 1 Subject to the provisions of this Plan, NOK and Eagle Industry shall implement a share transfer (the "Share Transfer") through a joint share transfer, whereby all of the issued shares of NOK and Eagle Industry are acquired by the wholly owning parent company to be newly established through the Share Transfer (the "New Company") as of the Incorporation Date (as defined in Article 6; the same applies hereinafter), which will result in NOK and Eagle Industry becoming wholly owned subsidiaries of the New Company.

(Purpose, Trade Name, Head Office Location, Total Number of Authorized Shares, and Other Details to Be Specified by the Articles of Incorporation of the New Company)

Article 2 The purpose and other details of the New Company are as specified in the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Purpose<br>
The purpose of the New Company shall be as specified in Article 2 of the Articles of Incorporation contained in the Attachment hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Trade name<br>
The trade name of the New Company shall be NOK Group Kabushiki Kaisha, which shall be expressed as NOK Group Corporation in English.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Location of the head office<br>
The New Company shall have its head office at 1-12-15 Shibadaimon, Minato-ku, Tokyo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Total number of authorized shares<br>
The total number of shares the New Company is authorized to issue shall be 700 million (700,000,000) shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The details to be specified in the articles of incorporation of the New Company other than those listed
in the preceding paragraph shall be as specified in the Articles of Incorporation contained in the Attachment hereto.

(Officers at Incorporation of New Company)

Article 3 The names of the Directors at Incorporation (excluding Directors at Incorporation who are Audit & Supervisory Committee Members at Incorporation), Directors at Incorporation who are Audit & Supervisory Committee Members at Incorporation, and Independent Auditors at Incorporation of the New Company shall be as specified in the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The names of the Directors at Incorporation of the New Company (excluding Directors at Incorporation who
are Audit & Supervisory Committee Members at Incorporation) shall be as follows: Number: Four in total

Masao Tsuru (Representative Director, Group Chief Executive Officer)

Chikashi Takeda (Director, Group Chief Financial Officer)

Yuki Sato (Director, Group Chief Technology Officer)

Tetsuji Tsuru (Director)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The names of the Directors at Incorporation of the New Company who are Audit & Supervisory Committee
Members at Incorporation shall be as follows:

(Number: Five in total)

Kazushige Hayashi (full-time)

Makoto Fujioka (External Director)

Naoki Shimada (External Director)

Motoko Imada (External Director)

Atsushi Kajitani (External Director)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The names of the Independent Auditors at Incorporation of the New Company shall be as follows:

Nihombashi Corporation

(Method of Calculation of the Number of Shares to Be Delivered upon Share Transfer and Allotment Thereof)

Article 4 Upon the Share Transfer, the New Company shall deliver to the shareholders who are stated in NOK's shareholder register as at immediately before the Share Transfer becomes effective (the "Base Time") and the shareholders who are stated in Eagle Industry's shareholder register as at the Base Time, such number of common shares of the New Company as is equivalent to the total of: (i) the number obtained by multiplying (a) the number of common shares that have been issued by NOK as at the Base Time by (b) a factor of 1; and (ii) the number obtained by multiplying (a) the number of common shares that have been issued by Eagle Industry as at the Base Time by (b) a factor of 1 (the "Shares to Be Delivered").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The New Company shall allot the Shares to Be Delivered pursuant to the provisions of the preceding paragraph
to the shareholders of NOK and those of Eagle Industry as at the Base Time at the ratio specified in the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To the shareholders of NOK: One common share of the New Company for each common share of NOK held by these
shareholders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. To the shareholders of Eagle Industry: One common share of the New Company for each common share of Eagle
Industry held by these shareholders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any fraction of one share resulting from the calculation in either of the preceding two paragraphs shall
be handled in accordance with the provisions of Article 234 of the Companies Act (Act No. 86 of 2005, as amended; the same applies hereinafter)
and other applicable laws and regulations.

(Stated Capital and Reserves of New Company)

Article 5 The stated capital of the New Company as of the date of its incorporation shall be 5 billion (5,000,000,000) yen. The amounts of reserves of the New Company as of the date of its incorporation shall be determined by NOK and Eagle Industry in accordance with the provisions of Article 52 of the Regulation on Corporate Accounting.

(Date of Incorporation of New Company)

Article 6 The day on which the incorporation of the New Company should be registered (the "Incorporation Date") shall be October 1, 2026. However, if necessary to accommodate the procedures for the Share Transfer or for any other reason, NOK and Eagle Industry may change such date by mutual consultation and agreement.

(Stock Listing; Shareholder Register Administrator)

Article 7 The New Company shall plan to list its common shares on the Prime Market of the Tokyo Stock Exchange on the Incorporation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The shareholder register administrator of the New Company shall be Mitsubishi UFJ Trust and Banking Corporation.

(Shareholders' Meeting for Approving Share Transfer Plan)

Article 8 NOK and Eagle Industry shall adopt a resolution for approval of this Plan and on matters necessary for the Share Transfer at their respective Annual Shareholders' Meetings scheduled for June 2026. However, if it is necessary to accommodate the procedures for the Share Transfer or for any other reason, NOK and Eagle Industry may, by mutual consultation and agreement, change the scheduled date for the respective shareholders' meetings at which shareholders are requested to approve a resolution approving the Plan and regarding matters necessary for the Share Transfer.

(Cancellation of Treasury Shares)

Article 9 By a resolution to be adopted at the respective Boards of Directors meetings to be held no later than the day preceding the Incorporation Date, NOK and Eagle Industry shall cancel, as at the Base Time, all of the treasury shares (including any treasury shares that may be acquired by them respectively in response to the exercise of appraisal rights by dissenting shareholders, if any, that may occur upon the Share Transfer as set forth in Article 806, paragraph 1 of the Companies Act, but excluding NOK's and Eagle Industry's respective shares managed by their respective trustees as trust assets held under their respective Board Incentive Plan (BIP) trusts) held by them respectively as at the Base Time.

(Dividends of Surplus)

Article 10 NOK may pay dividends of surplus of: (i) up to 65 yen per share of its common stock as of the record date of March 31, 2026; and (ii) up to 70 yen per share of its common stock as of the record date of September 30, 2026. In addition, NOK may (iii) acquire its own shares up to a total amount of 30 billion (30,000,000,000) yen on or before the day preceding the Incorporation Date, subject to applicable laws, regulations, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Eagle Industry may pay dividends of surplus of: (i) up to 65 yen per share of its common stock as of the
record date of March 31, 2026; and (ii) up to 70 yen per share of its common stock as of the record date of September 30, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except as set forth in the preceding two paragraphs, neither NOK nor Eagle Industry shall, at any time
during the period from the date of execution of this Plan until the Incorporation Date, adopt a resolution to pay dividends of surplus
with a record date prior to the Incorporation Date. However, this does not apply if otherwise agreed between NOK and Eagle Industry after
mutual consultation.

(Operation of Business)

Article 11 Unless otherwise agreed between them, from the date of execution of this Plan until the Incorporation Date, NOK and Eagle Industry shall carry on their respective businesses and manage and operate their respective assets with due care of a prudent manager and within the scope of substantially the same and normal business as before the date of execution of this Plan, and shall procure that their respective subsidiaries carry on their businesses and manage and operate their assets with due care of a prudent manager and within the scope of substantially the same and normal business as before the date of execution of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise agreed between the parties, if, at any time during the period from the date of execution
of this Plan until the Incorporation Date, either party finds that any circumstances or event has occurred that may have a serious impact
on the implementation of the Share Transfer or on the reasonableness of the share transfer ratio to be used in the Share Transfer, such
party shall immediately notify the other party to that effect and shall consult with such other party in good faith.

(Changes to Terms and Conditions of Share Transfer; Cancellation of Share Transfer)

Article 12 If any material changes occur to the assets, liabilities, business conditions, etc., of either party due to an act of God or other circumstances not attributable to such party, or if any situation occurs that will seriously impede the implementation of the Share Transfer, in each case at any time during the period from the execution of this Plan until the Incorporation Date of the New Company, NOK and Eagle Industry may change the terms and conditions of the Share Transfer or other provisions of this Plan or cancel the Share Transfer upon mutual consultation and written agreement between the parties.

(Effect of This Plan)

Article 13 This Plan shall cease to be effective in the event of a failure to adopt the resolution for approval of this Plan and on matters necessary for the Share Transfer to be adopted at the parties' respective shareholders' meetings as set forth in Article 8 or in the event of cancellation of the Share Transfer under to the preceding Article.

(Agreed Jurisdiction)

Article 14 NOK and Eagle Industry agree that the Tokyo District Court shall have exclusive jurisdiction over any dispute arising in relation to this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;(Consultation)

Article 15 The parties shall resolve any matters not specified in this Plan or any questions arising in connection with this Plan through good-faith consultation between them in accordance with the spirit of this Plan.

End.

In Witness Whereof, this Plan has been executed in duplicate, with NOK and Eagle Industry retaining one copy each after both have hereunto affixed their respective names and seals.

November 10, 2025

NOK: 1-12-15 Shibadaimon, Minato-ku, Tokyo <br> NOK Corporation <br> Masao Tsuru, Representative Director,<br> Group Chief Executive Officer

Eagle Industry: 2-4-1 Shiba-koen, Minato-ku, Tokyo 14F, Shiba-Park Bldg.-B <br> Eagle Industry Co., Ltd. <br> Tetsuji Tsuru, Representative Director,<br> Chairman of the Board and President

(Attachment to the Share Transfer Plan)

Articles of Incorporation of NOK Group Corporation

CHAPTER I. GENERAL PROVISIONS

(Trade Name)

Article 1 The trade name of the Company shall be NOK Group Kabushiki Kaisha, which shall be expressed as NOK Group Corporation in English.

&nbsp;&nbsp;&nbsp;&nbsp;(Purpose)

Article 2 The purpose of the Company shall be to engage in any of the businesses set forth in the following items and to control or manage the business activities of companies (including foreign companies), partnerships (including those equivalent to partnerships in foreign countries), or other business entities equivalent thereto, through holding shares or equity in the company, etc., that is engaged in such businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Manufacturing and marketing of seal devices, related products, and industrial rubber products

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Manufacture, processing, and sale of synthetic resins, synthetic rubber, lubricants, and synthetic chemicals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Manufacturing and marketing of machinery, equipment, and parts for transportation, construction, agriculture,
iron and steel, paper, pollution control, chemical industry, and mining, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Designing, manufacturing and marketing of hydraulic and pneumatic equipment, parts, and systems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Manufacturing and marketing of powder metallurgy, casting, carbon and special ceramic products

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Manufacturing and marketing of electrical, telecommunication, electronic, measurement, and audio equipment
and parts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Manufacturing, processing, and marketing of pharmaceutical and medical machines, equipment, devices, tools,
and parts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Contracting for installation of seal equipment, papermaking machinery, nuclear power generation equipment,
hydraulic and pneumatic equipment, pollution control equipment, etc., and related construction work

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Manufacturing and marketing of valves, fittings, heat insulators, pipes, and power transmission equipment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Any and all businesses incidental to or related to the preceding items

(Location of Head Office)

Article 3 The Company shall have its head office in Minato-ku, Tokyo.

(Method of Public Notice)

Article 4 The Company's method of public notice shall be electronic public notice. However, if it is impossible to give public notice by way of electronic public notice due to an accident or other unavoidable reasons, such public notice shall be given by publication in the Nihon Keizai Shimbun.

CHAPTER II. SHARES

(Total Number of Authorized Shares)

Article 5 The total number of shares the Company is authorized to issue shall be 700 million (700,000,000) shares.

(Share Unit Number)

Article 6 The number of shares constituting one unit of shares of the Company shall be one hundred (100) shares.

(Rights Exercisable by Holders of Shares Constituting Less Than One Unit)

Article 7 Shareholders of the Company are not entitled to exercise any right other than the following rights with respect to the portion, if any, of the shares held by them that constitute less than one unit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The rights set forth in the items of paragraph 2 of Article 189 of the Companies Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The right to make a demand as set forth in Article 166, paragraph 1 of the Companies Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The right to be allotted shares for subscription or to be allotted share options for subscription, in
each case in proportion to the number of shares held by shareholders.

(Shareholder Register Administrator)

Article 8 (1) The Company shall have a shareholder register administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The shareholder register administrator of the Company and its place of handling business shall be designated
by a resolution of the Board of Directors and shall be announced publicly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The preparation and maintenance of, and other administrative tasks for, the Company's shareholder
register and share option register shall be entrusted to the shareholder register administrator and shall not be handled by the Company.

(Share Handling Rules)

Article 9 Entries or records in the shareholder register of the Company, purchase of shares constituting less than one unit, and other matters related to shares, as well as procedures and other details and fees for the exercise of shareholders' rights, shall be subject to the share handling rules established by the Board of Directors.

(Record Date)

Article 10 (1) Those shareholders who hold voting rights and whose names are entered or registered in the latest shareholder register as of March 31 of each business year shall be deemed by the Company as the shareholders who are entitled to exercise the shareholders' rights at the Annual Shareholders' Meeting for the business year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Otherwise than as set forth in the preceding paragraph and where necessary, the Company may, by a resolution
of the Board of Directors and by giving two (2) weeks' prior public notice, deem those shareholders or registered pledgees of shares
whose names are entered or registered in the latest shareholder register as of a certain date as the shareholders or registered pledgees
of shares who are entitled to exercise the shareholders' rights.

CHAPTER III. SHAREHOLDERS' MEETING

&nbsp;&nbsp;&nbsp;&nbsp;(Convocation)

Article 11 The Annual Shareholders' Meeting shall be convened within three (3) months after April 1 of each year. An extraordinary shareholders' meeting shall be convened whenever necessary.

(Convener and Chairperson)

Article 12 (1) Unless otherwise provided for by laws and regulations, a shareholders' meeting shall be convened by the President pursuant to a resolution of the Board of Directors and shall be chaired by the President and Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the President and Director is unable to convene and chair a shareholders meeting, any of the other
Directors shall convene and chair the shareholders meeting in the order prescribed in advance by the Board of Directors.

(Measures for Providing Information in Electronic Format, Etc.)

Article 13 (1) When the Company convenes a shareholders' meeting, it shall take measures to provide information that constitutes the content of reference documents, etc., for the shareholders' meeting in electronic format.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the paper-based documents to be delivered to shareholders who have requested, no later than the record
date for voting rights, the delivery of paper-based documents, the Company may choose not to include all or part of the matters for which
measures for electronic provision are taken by the Company and which are specified by the relevant Ministry of Justice Order.

(Method of Resolution of the Shareholders' Meeting)

Article 14 (1) Unless otherwise provided for by laws and regulations or these Articles of Incorporation, resolutions of the Shareholders' Meeting shall be adopted by a majority of the votes held by the shareholders present at the meeting who are entitled to exercise their voting rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Resolutions at a shareholders' meeting that are subject to the provisions of Article 309, paragraph
2 of the Companies Act shall be adopted by a two-thirds (2/3) majority of the votes held by the shareholders present at the shareholders'
meeting where shareholders holding one-third (1/3) or more of the votes held by the shareholders who are entitled to exercise their voting
rights are present.

(Proxy Voting)

Article 15 A shareholder may exercise his or her voting rights by proxy through one (1) other shareholder who has voting rights in the Company. However, the shareholder or his or her proxy must submit to the Company, for each shareholders' meeting, a document certifying the proxy's authority of representation.

(Minutes of a Meeting)

Article 16 A summary and the outcome of the proceedings of a shareholders' meeting, as well as other information on the proceedings required by laws and regulations, shall be entered or recorded in the minutes of the meeting, which shall be kept at the head office of the Company for a period of ten (10) years.

CHAPTER IV. DIRECTORS AND BOARD OF DIRECTORS

(Establishment of Board of Directors)

Article 17 The Company shall have a Board of Directors.

(Number and Election of Directors)

Article 18 (1) The Company shall have no more than eight (8) Directors (excluding those who are Audit & Supervisory Committee Members).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company shall have no more than six (6) Directors who are Audit & Supervisory Committee Members
("Audit & Supervisory Committee Members").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Directors shall be elected by a resolution of the Shareholders' Meeting separately for Audit &
Supervisory Committee Members and other Directors. Resolutions to elect Directors shall be adopted by a majority of the votes held by
the shareholders present at the shareholders' meeting where shareholders holding one-third (1/3) or more of the votes held by the
shareholders who are entitled to exercise their voting rights are present.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) No cumulative voting shall be used to adopt resolutions to elect Directors.

(Representative Directors and Executive Directors)

Article 19 (1) Directors who shall represent the Company shall be appointed by a resolution of the Board of Directors from among Directors who are not Audit & Supervisory Committee Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Board of Directors may, by its resolution, appoint one (1) Chairman and one (1) President from among
Directors who are not Audit & Supervisory Committee Members.

(Term of Office of Directors)

Article 20 (1) The term of office of Directors who are not Audit & Supervisory Committee Members shall expire at the conclusion of the Annual Shareholders' Meeting for the last of the business years ending within one (1) year following their election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The term of office of Audit & Supervisory Committee Members shall expire at the conclusion of the
Annual Shareholders' Meeting for the last of the business years ending within two (2) years following their election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The term of office of a Director who is not an Audit & Supervisory Committee Member and is elected
to fill a vacancy or increase the number of Directors shall expire at the expiration of the term of office of other Directors in office
who are not Audit & Supervisory Committee Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The term of office of an Audit & Supervisory Committee Member elected to fill a vacancy shall expire
at the expiration of the term of office of the Audit & Supervisory Committee Member who left office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The effective period of a resolution to elect a substitute Audit & Supervisory Committee Member under Article 329, paragraph 3 of the Companies Act shall expire at the conclusion of the Annual Shareholders' Meeting for the last of the business years ending within two (2) years following his or her election, unless such period is reduced by such resolution.

(Remuneration and Other Compensation of Directors)

Article 21 Remuneration and other compensation of Directors shall be determined separately for Audit & Supervisory Committee Members and other Directors by a resolution of the Shareholders' Meeting.

(Exemption from Liability of Directors)

Article 22 (1) Pursuant to the provisions of Article 426, paragraph 1 of the Companies Act, the Company may, by a resolution of the Board of Directors and to the extent permitted by laws and regulations, exempt any of its Directors (including former Directors) from his or her liability for damages that may be imposed under Article 423, paragraph 1 of the same Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Pursuant to the provisions of Article 427, paragraph 1 of the Companies Act, the Company may enter into
an agreement with any of its Directors (excluding executive directors and the like) that limits his or her liability for damages that
may be imposed under Article 423, paragraph 1 of the same Act. However, the minimum amount of liability under such agreement shall be
the amount specified by laws and regulations.

(Delegation of Decisions on Execution of Operations to Directors)

Article 23 Pursuant to Article 399-13, paragraph 6 of the Companies Act, the Company may, by a resolution of the Board of Directors, delegate all or part of the decisions on the execution of important operations (excluding the matters listed in the items of paragraph 5 of the same Article) to Directors.

(Regulations of the Board of Directors)

Article 24 Matters relating to the Board of Directors shall be governed by the Regulations of the Board of Directors separately established by the Board of Directors, in addition to provisions of laws and regulations and these Articles of Incorporation.

(Convener and Chairperson of Meetings of the Board of Directors)

Article 25 (1) Unless otherwise provided for by laws and regulations, a meeting of the Board of Directors shall be convened and chaired by the President and Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the President and Director is unable to convene and chair Board of Directors meeting, any of the other
Directors shall convene and chair the Board of Directors meeting in the order prescribed in advance by the Board of Directors.

(Notice of Convocation of a Meeting of the Board of Directors)

Article 26 (1) Notice of convocation of a meeting of the Board of Directors shall be dispatched to each Director at least four (4) days prior to the date of such meeting. However, this notice period may be reduced in case of emergency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Subject to the consent of all Directors, a meeting of the Board of Directors may be held without the procedures
for convocation required by the preceding paragraph.

(Method of Resolution of the Board of Directors)

Article 27 A resolution of the Board of Directors shall be adopted by a majority vote of the Directors present at the meeting where a majority of the Directors entitled to vote are present.

(Omission of Resolutions of the Board of Directors)

Article 28 The Company shall deem that a proposal for resolution of the Board of Directors has been approved if all the Directors (limited to those who are entitled to vote on the proposal) have given their consent to the proposal in writing or by electronic or magnetic record.

(Minutes of a Meeting of the Board of Directors)

Article 29 A summary and the outcome of the proceedings of a meeting of the Board of Directors, as well as other information on the proceedings required by laws and regulations, shall be entered or recorded in the minutes of the meeting, which shall be affixed with the names and seals of, or be electronically signed by, the chairperson and the Directors present and shall be kept at the head office of the Company for a period of ten (10) years.

CHAPTER V. AUDIT & SUPERVISORY COMMITTEE

(Establishment of Audit & Supervisory Committee)

Article 30 The Company shall have an Audit & Supervisory Committee.

(Standing Audit & Supervisory Committee Member(s))

Article 31 The Audit and Supervisory Committee may appoint (a) Standing Audit & Supervisory Committee Member(s) from among its members.

(Regulations of the Audit & Supervisory Committee)

Article 32 Matters relating to the Audit & Supervisory Committee shall be governed by the Regulations of the Audit & Supervisory Committee separately established by the Audit & Supervisory Committee, in addition to provisions of laws and regulations and these Articles of Incorporation.

(Notice of Convocation of a Meeting of the Audit & Supervisory Committee)

Article 33 (1) A notice of convocation of a meeting of the Audit & Supervisory Committee shall be dispatched to each Audit & Supervisory Committee Member at least four (4) days prior to the date of such meeting. However, this notice period may be reduced in case of emergency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Subject to the consent of all Audit & Supervisory Committee Members, a meeting of the Audit &
Supervisory Committee may be held without the procedures for convocation required by the preceding paragraph.

(Method of Resolution of the Audit & Supervisory Committee)

Article 34 A resolution of the Audit & Supervisory Committee shall be adopted by a majority vote of the Audit & Supervisory Committee Members present at the meeting where a majority of the Audit & Supervisory Committee Members entitled to vote are present.

(Minutes of a Meeting of the Audit & Supervisory Committee)

Article 35 A summary and the outcome of the proceedings of a meeting of the Board of Directors, as well as other information on the proceedings required by law, shall be entered or recorded in the minutes of the meeting, which shall be affixed with the names and seals of, or be electronically signed by, the Audit & Supervisory Committee Members present and shall be kept at the head office of the Company for a period of ten (10) years.

CHAPTER VI. INDEPENDENT AUDITOR

(Establishment of Independent Auditor)

Article 36 The Company shall have an Independent Auditor.

(Appointment of Independent Auditor)

Article 37 The Independent Auditor shall be appointed by a resolution of the Shareholders' Meeting.

(Term of Office of the Independent Auditor)

Article 38 (1) The term of office of the Independent Auditor shall expire at the conclusion of the Annual Shareholders' Meeting for the last of the business years ending within one (1) year following his or her election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Unless otherwise resolved at the Annual Shareholders' Meeting as referred to in the preceding paragraph,
the Independent Auditor shall be deemed to be reappointed at such Annual Shareholders' Meeting.

(Remuneration and Other Compensation of the Independent Auditor)

Article 39 The remuneration and other compensation of the Independent Auditor shall be determined by the Representative Director(s) with the consent of the Audit & Supervisory Committee.

CHAPTER VII. ACCOUNTS

(Business Year)

Article 40 The business year of the Company shall be the one (1) year period from April 1 of each year to March 31 of the following year.

(Decision-Making Body for Dividends of Surplus, etc.)

Article 41 Unless otherwise provided for by laws and regulations, matters specified in the items of paragraph 1 of Article 459 of the Companies Act, including dividends of surplus, may be determined by a resolution of the Board of Directors.

(Record Date for Dividends of Surplus)

Article 42 (1) The record date for year-end dividends of the Company shall be March 31 of each year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The record date for interim dividends of the Company shall be September 30 of each year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) In addition to the preceding two paragraphs, the Company may pay dividends of surplus by setting the record
date therefor.

(Statute of Limitations for Dividends)

Article 43 If any year-end dividends or interim dividends of surplus remain unreceived after three (3) years have elapsed since the start date of payment thereof, the Company shall be relieved from its obligation to pay such dividends.

Supplementary Provisions

(First Business Year)

Article 1 Notwithstanding the provisions of Article 40, the first business year of the Company shall be from the date of incorporation of the Company to March 31, 2027.

(Initial Remuneration and Other Compensation of Directors)

Article 2 (1) Notwithstanding the provisions of Article 21, the total amount of remuneration and other compensation to be paid in cash to Directors who are not Audit & Supervisory Committee Members and Directors who are Audit & Supervisory Committee Members of the Company for the period from the date of incorporation of the Company to the conclusion of the first Annual Shareholders' Meeting shall be as follows. The amount of remuneration and other compensation for individual Directors who are not Audit & Supervisory Committee Members shall be left to the sole discretion of the Board of Directors. The amount of such remuneration shall not include salary for employees to be paid to Directors who concurrently serve as employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Directors who are not Audit & Supervisory Committee Members: Up to an annual amount of 460 million
yen (including up to an annual amount of 30 million yen for External Directors)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Directors who are Audit & Supervisory Committee Members: Up to an annual amount of 100 million yen

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Of the remuneration and other compensation for the Company's Directors and Operating Officers (excluding
Directors who are Audit & Supervisory Committee Members, External Directors, and non-residents of Japan; collectively, the "Company's
Directors, etc.") for the period from the date of incorporation of the Company to the business year ending March 31, 2029 (the "Relevant
Period"), the amount and other details of the remuneration and other compensation to be paid under the stock compensation system
(the "System"; the same applies in the following Article) shall be as follows. The remuneration to be paid under the Plan
shall be separate from that specified in the preceding paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Outline of the System

The System is a performance-linked stock compensation system in which: (i) NOK Co., Ltd. ("NOK") and Eagle Industry Co., Ltd. ("Eagle Industry") contribute to a trust (a trust to be established under the System is referred to as a "Trust") (a) the money contributed by NOK and Eagle Industry to the Trust on or before September 30, 2026 and (b) the money contributed by the Company to the Trust during the Relevant Period; (ii) the Trust uses the above money to acquire shares of the Company from the stock market or the Company (by way of disposal of treasury shares) (shares of the Company will be acquired from the stock market during the Relevant Period); and (iii) the Trust makes delivery of shares of the Company and payment of money equivalent to the conversion value of shares of the Company (such delivery and payment are collectively referred to as "Delivery") (shares of the Company and such money are collectively referred to as the "Company's Shares, etc.") to the Company's Directors, etc., as remuneration for officers according to their positions and degrees of achievement of performance targets.

The System is a partial revision of the stock compensation plan approved at NOK's shareholders' meeting held on June 26, 2024 and Eagle Industry's general meeting of shareholders held on June 25, 2024. Effective as of October 1, 2026, the Company will succeed to NOK's and Eagle Industry's respective contractual statuses and rights and obligations under: (i) the Board Incentive Plan (BIP) Trust Agreement dated August 5, 2022 executed by NOK with Mitsubishi UFJ Trust and Banking Corporation (with the trust period under that trust agreement being planned to be extended until August 31, 2029; the trust established under such trust agreement is referred to as the "Trust (NOK)"); and (ii) the Board Incentive Plan (BIP) Trust Agreement dated August 5, 2022 executed by Eagle Industry with Mitsubishi UFJ Trust and Banking Corporation (with the trust period under that trust agreement being planned to be extended until August 31, 2029; the trust established under such trust agreement is referred to as the "Trust (Eagle Industry)") (such succession of NOK's and Eagle Industry's respective contractual statuses and rights and obligations is referred to as the "Succession"), and the Trust (NOK) and the Trust (Eagle Industry) will be treated as the Trust (after the Succession, the Trust (NOK) and the Trust (Eagle Industry) will be integrated together through the prescribed procedures).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Maximum amount of money to be contributed by the Company

For the purpose of acquiring shares of the Company to be made available for Delivery to the Company's Directors, etc., the Company shall establish a Trust for each covered period by: (i) setting the maximum amount of money that may be contributed by the Company to the Trust for the covered period at the amount calculated by multiplying 670 million yen by the number of years in the covered period (if the covered period is three years, the maximum amount is a total of 2,010 million yen); (ii) contributing money to the Trust naming the Company's Directors, etc., as beneficiaries.

During the Relevant Period, the Company shall grant points to the Company's Directors, etc., as set forth in (3) below, and the Trust shall make Delivery of the Company's Shares, etc., equivalent to the number of points granted at prescribed times.

At the expiration of the Relevant Period, the Trust may be continued by amending the trust agreement and making an additional contribution to the Trust in lieu of establishing a new Trust. The same shall apply thereafter. In such case, the additional covered period shall be three years in principle, with the trust period of the Trust to be extended for the additional covered period. For the purpose of acquiring shares of the Company to be made available for Delivery to the Company's Directors, etc., the Company shall make an additional contribution of no more than the amount calculated by multiplying 670 million yen by the number of years in the additional covered period and shall continue to grant points to the Company's Directors, etc., and to make Delivery of the Company's Shares, etc., for the additional covered period. However, if such an additional contribution is made and if, as of the last day of the covered period preceding the additional covered period, any part of the Company's shares (excluding shares of the Company which are equivalent to points granted to the Company's Directors, etc., and have not been delivered to them) acquired to, and/or the money contributed to, acquire shares of the Company to be made available for Delivery to the Company's Directors, etc., remains in the trust property (the "Remaining Shares, etc."), the total amount of the Remaining Shares, etc., and the additional money to be contributed to the Trust shall be no more than the amount calculated by multiplying 670 million yen by the number of years in that additional covered period.

If no amendment to the trust agreement or additional contribution to the Trust is made at the time of expiration of the period covered by a Trust, no points shall be granted thereafter. However, if any of the eligible current Directors, etc., have not received delivery of the Company's shares at that point in time, the trust period of the Trust may be extended for a maximum of approximately two years until the delivery of the Company's shares is completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Calculation method, upper limit, etc., of the number of the Company's Shares, etc., for Delivery
to the Company's Directors, etc.

The number of the Company's Shares, etc., for Delivery to the Company's Directors, etc., shall be determined by the number of Share Delivery Points. One (1) share of the Company shall be delivered per Share Delivery Point, with any fraction of a point rounded down. However, if the Company's shares undergo a share split or are consolidated or the like during a covered period, the maximum number of the Company's Shares, etc., per Share Delivery Point and the maximum number of the Company's shares to be delivered to the Company's Directors, etc., shall be adjusted according to the split ratio, consolidation ratio, or the like, as the case may be.

< Method of calculation of Share Delivery Points >

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Performance-linked portion

The performance-linked portion shall be calculated by: (a) accumulating points equivalent to 50% of the base points granted to the beneficiary for each year of the covered period according to his or her posts, etc.; and (b) after the elapse of three years in principle, multiplying the accumulated points by a performance-linked coefficient according to the degree of target achievement.

\* The performance-linked coefficient is relative TSR (TOPIX) and varies in the range of 0% to 200% according to the degree of achievement of performance targets, etc.

Any of the Company's Directors, etc., who retires, dies, or becomes non-resident in Japan during any of the business years of the covered period shall be promptly granted the Share Delivery Points with a performance-linked coefficient of 100%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Non-performance-linked portion

The non-performance-linked portion shall be the points equivalent to 50% of the base points granted according to posts, etc., of the Company's Directors, etc., for each year of the covered period.

The maximum number of Company's Shares, etc., for Delivery to the Company's Directors, etc. (i.e., the number of points to be granted to the Company's Directors, etc.) for the period covered by a Trust shall be the number of shares calculated by multiplying 360,000 shares by the number of years of the covered period (if the covered period is three years, a total of 1,080,000 shares). The maximum number of Company's Shares, etc., for Delivery to the Company's Directors, etc., shall be set based on past stock prices, etc., in light of the above maximum amount of money that may be contributed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Method and timing of Delivery of the Company's Shares, etc., to the Company's Directors, etc.

The Company's Directors, etc., who meet the beneficiary requirements shall, by following the prescribed vesting procedure at a certain time after three years have elapsed since the granting of base points: (i) receive delivery of shares of the Company equivalent to 50% of their respective Share Delivery Points (with any shares less than one unit being rounded down); and (ii) receive payment of money equivalent to the conversion value of the remaining shares of the Company equivalent to their respective Share Delivery Points after conversion into money within the Trust.

If any of the Company's Directors, etc., who meets the beneficiary requirements dies during the covered period: (i) all of the Company's shares equivalent to the beneficiary's Share Delivery Points that have been granted as at that time shall be converted into money within the Trust; and (ii) the beneficiary's heirs shall receive payment of money equivalent to the conversion value of such shares.

Even if the beneficiary requirements are met by the Company's Directors, etc., if the Board of Directors confirms illegal acts by any of the Company's Directors, etc., the Company may choose not to make Delivery of all or part of the Company's Shares, etc., or may request the return of (i) all or part of the Company's Shares, etc., whose Delivery was made or (ii) the amount of money equivalent thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Voting rights attached to the Company's shares within a Trust

To ensure neutrality in management, voting rights attached to the Company's shares held in a Trust (before Delivery to the Company's Directors, etc., is made) shall not be exercised during the trust period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Handling of dividends of the Company's shares within a Trust

Dividends on the Company's shares held in a Trust shall be received by the Trust and be applied to the Trust's trust fees and expenses. Any remainder of the dividends remaining at the final termination of the Trust after allocation of the dividends to trust fees and expenses shall vest in the Company to the extent of the trust expense reserve, which shall be calculated by deducting the stock acquisition cost from the trust money. Any portion exceeding the trust expense reserve shall be donated to an organization(s) with no interest in the Company or the Company's Directors, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Other details of the System

Other details of the System shall be determined by the Board of Directors upon establishment of a Trust, amendment of the trust agreement, and additional contribution to the Trust. The Company may introduce systems similar to the System to its subsidiaries.

(Deletion of These Supplementary Provisions)

Article 3 (1) Article 1 and Article 2, paragraph 1 of these Supplementary Provisions shall be deleted at the conclusion of the first Annual Shareholders' Meeting of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Article 2, paragraph 2 of these Supplementary Provisions shall be deleted at the termination of the System;
however, if a proposal for amendment or continuation of the System is submitted and approved at the Company's shareholders'
meeting, such deletion shall take place at the time of such approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Matters relating to the adequacy of provisions concerning the matters set forth in Article 773, paragraph
1 (v) and (vi) of the Companies Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters concerning shares of the Joint Holding Company to be delivered by the Joint Holding Company to
the shareholders of the Companies upon the Share Transfer and concerning the allocation of shares of the Joint Holding Company

The Companies have determined the allotment ratio at which common shares of the Joint Holding Company will be allotted to the Companies' respective shareholders upon the incorporation of the Joint Holding Company through the Share Transfer (the "Share Transfer Ratio"), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Details of allotment pertaining to the Share Transfer (Share Transfer Ratio)

<u>Company</u> <u>Eagle Industry</u> <br> <u>Share Transfer Ratio</u> <u>1.00</u> <u>1.00</u>

(Note 1) Details of allotment of shares pertaining to the Share Transfer<br> One (1) share of the Joint Holding Company's common stock will be allotted for each share of the Company's common stock, and one (1) share of the Joint Holding Company's common stock will be allotted for each share of Eagle Industry's common stock, respectively. If, as a result of the Share Transfer, there is any fraction of less than one (1) share in the respective numbers of shares of the Joint Holding Company's common stock that are required to be delivered to the shareholders of the Company or Eagle Industry, the amount corresponding to such fraction of less than one (1) share will be paid to the relevant shareholders in accordance with the provisions of Article 234 of the Companies Act and other related laws and regulations. However, the Share Transfer Ratios specified above are subject to change through consultation between the Companies in the event of any material change in the terms and conditions which form the basis of the calculation.

(Note 2) Number of shares constituting one (1) unit of shares of the Joint Holding Company and handling of shares less than one (1) unit<br> The number of shares constituting one (1) unit of shares of the Joint Holding Company shall be 100 shares.<br> The shareholders of the Company and Eagle Industry to whom the shares of the Joint Holding Company are allotted in any number less than one (1) unit (i.e., 100 shares) ("Fractional Shares") as a result of the Share Transfer will be unable to sell their allotted Fractional Shares on the Tokyo Stock Exchange or any other financial instruments exchange. However, it is possible for shareholders who may come to hold such Fractional Shares to demand the Joint Holding Company to purchase such Fractional Shares held by them, in accordance with Article 192, Paragraph 1 of the Companies Act.

(Note 3) Number of new shares to be delivered by the Joint Holding Company (planned)<br> Common shares 207,154,136 shares<br> The number of shares specified above is calculated based on the Company's total number of issued shares of 160,903,090 shares (as of March 31, 2026), and Eagle Industry's total number of issued shares of 49,757,821 shares (as of March 31, 2026). As the Company and Eagle Industry are respectively planning that, before the Share Transfer takes effect, they will cancel their treasury shares which are currently held or may hereafter be newly acquired by them, within the range of such treasury shares that can be cancelled in practice (immediately before the Share Transfer takes effect), it is not planned that the shares of the Joint Holding Company will be allotted for the treasury shares respectively held by the Company and Eagle Industry as of March 31, 2026 (the Company: 233 shares, Eagle Industry: 3,506,542 shares). In addition, in the Management Integration Agreement, it has been agreed that the Company may acquire its own common stock as treasury stock up to a total amount of JPY 30 billion by the Effective Date. However, the treasury stock acquired through this acquisition are scheduled to be cancelled, and it is not planned that the shares of the Joint Holding Company will be allotted for the treasury shares. However, since the number of treasury shares to be actually cancelled by the Effective Date has not been determined at present, the aforementioned number of new shares to be issued by the Joint Holding Company is subject to change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Grounds for details of allotment pertaining to the Share Transfer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Grounds and reasons for details of allotment

In order to ensure the fairness of the Share Transfer Ratio described in "(1) Matters concerning shares of the Joint Holding Company to be delivered by the Joint Holding Company to the shareholders of the Companies upon the Share Transfer and concerning the allocation of shares of the Joint Holding Company" above and other fairness of the Share Transfer, the Company has appointed Daiwa Securities Co. Ltd. ("Daiwa Securities") as its financial advisor and third-party valuation institution, and Mori Hamada & Matsumoto, a foreign law joint enterprise, as its legal advisor. Eagle Industry has appointed Mizuho Securities Co., Ltd. ("Mizuho Securities") as its financial advisor and third-party valuation institution, and Nishimura & Asahi (Gaikokuho Kyodo Jigyo), as its legal advisor. As described in "D. Measures to ensure fairness (including measures to avoid conflict of interest)" below, the Companies obtained valuation reports on the Share Transfer Ratio from their respective third-party valuation institutions on November 7, 2025. In addition, as described in "D. Measures to ensure fairness (including measures to avoid conflict of interest)" below, Eagle Industry established the Eagle Industry Special Committee (defined in "D. Measures to ensure fairness (including measures to avoid conflict of interest)" below; the same applies hereinafter), which consists entirely of independent members who have no conflict of interest with the Company or Eagle Industry, and obtained a report dated November 7, 2025 from the Special Committee to the effect that the Management Integration is deemed fair to general shareholders (the "Report").

The Companies carefully considered the Share Transfer Ratio taking into account the calculation results and advice regarding the Share Transfer Ratio submitted by each company's financial advisor and third-party valuation institution, advice from each company's legal advisor as described in "D. Measures to ensure fairness (including measures to avoid conflict of interest) (ii) Advice from independent law firms" below, and the Report received by Eagle Industry from the Eagle Industry Special Committee as described in "D. Measures to ensure fairness (including measures to avoid conflict of interest), (iii) Obtaining a report from a special committee with no interest in Eagle Industry" below, as well as comprehensively considering the results of due diligence conducted by the Companies on the other party and factors such as the financial conditions, business performance trends, status of assets, future prospects, and stock price fluctuations of the Companies. After a series of careful negotiations and deliberations between the Companies, they finally determined that the Share Transfer Ratio stated in "(1) Matters concerning shares of the Joint Holding Company to be delivered by the Joint Holding Company to the shareholders of the Companies upon the Share Transfer and concerning the allocation of shares of the Joint Holding Company" above is appropriate, and the Share Transfer Ratio for the Share Transfer has been determined and agreed upon at the meetings of the boards of directors of both Companies held on November 10, 2025.

While it has been some time since the share transfer ratio was agreed upon on November 10, 2025 until the Companies' respective annual shareholders' meetings to which the Share Transfer Plan is submitted for approval, the Company and Eagle Industry have concluded, at their respective Board of Directors' meetings held on May 20, 2026 and May 21, 2026, respectively, that the share transfer ratio remains appropriate and needs no adjustments, taking into account the financial results of the Companies for the fiscal year ended March 31, 2026, and the changes in the Companies' situation, including their share prices up to the dates of their respective Board of Directors' meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Matters relating to calculation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Name of valuation institutions and relationship with the Companies

Neither Daiwa Securities, the third-party valuation institution of the Company, nor Mizuho Securities, the third-party valuation institution of Eagle Industry, is a related party of the Companies, and neither of them has a material interest in the Share Transfer that should be stated herein.

Mizuho Bank, Ltd. ("Mizuho Bank"), a group company of Mizuho Securities, holds a position as a shareholder of both the Company and Eagle Industry, and has entered into financing transactions with the Company and Eagle Industry as part of ordinary banking transactions; however, it does not have a material conflict of interest with the Company or Eagle Industry regarding the Management Integration. According to Mizuho Securities, in accordance with applicable laws and regulations under Article 36 of the Financial Instruments and Exchange Act (Act No. 25 of 1948. Including subsequent revisions) and Article 70-4 of the Cabinet Office Order on Financial Instruments Business, Mizuho Securities has established and implemented an appropriate conflict of interest management system, including information barriers between Mizuho Securities and Mizuho Bank. Through these measures, the department in charge of financial advisory services at Mizuho Securities is not affected by any conflicts of interest in relation to the Management Integration and can calculate the share value of both companies from a standpoint that is independent of Mizuho Bank's position as shareholder and lender. Eagle Industry has determined that Mizuho Securities' independence as a third-party valuation institution has been ensured, taking into consideration the fact that an appropriate conflict of interest management system has been established and implemented, that Eagle Industry and Mizuho Securities conduct transactions under the same terms and conditions as ordinary business partners, and that Mizuho Securities has a track record as a third-party valuation institution in similar cases in the past.

The compensation to Mizuho Securities includes a contingency fee to be paid upon the completion, etc., of the Management Integration. Eagle Industry, taking into consideration the general business practices in similar transactions, has appointed Mizuho Securities as their financial advisor and third-party valuation institution based on the above compensation structure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Outline of calculation

In order to ensure fairness in calculating the Share Transfer Ratio used in the Share Transfer, the Company appointed Daiwa Securities as a third-party valuation institution, and Eagle Industry appointed Mizuho Securities as a third-party valuation institution. The Companies requested to calculate and analyze a Share Transfer Ratio to said third-party valuation institutions, respectively.

Daiwa Securities used the average market price method as the shares of both the Company and Eagle Industry are listed on the TSE Prime Market and have market prices, and the discounted cash flow method (the "DCF method"), which reflects the Companies' business performance and forecasts in the valuation, to calculate the value of the shares of the Companies. The results of the calculations under each of the methods are as follows. The following calculated ranges for the Share Transfer Ratio below represent the results of the calculations of the number of shares of the Joint Holding Company's common stock to be allotted for one (1) share of Eagle Industry's common stock where one (1) share of the Joint Holding Company's common stock is allotted for (1) share of the Company's common stock.

Adopted Method <u>Calculation range for the Share Transfer Ratio</u> <br> <u>Average market price method</u> <u>0.97 to 1.01</u> <br> <u>DCF method</u> <u>0.57 to 1.50</u>

For the average market price method, November 7, 2025, the business day preceding the announcement date of the Share Transfer, was adopted as the calculation base date, and the closing prices of the Company and Eagle Industry on the TSE Prime Market on the calculation base date and the simple average of the closing prices for the respective periods of one (1) month prior to the calculation base date, three (3) months prior to the calculation base date, and six (6) months prior to the calculation base date were adopted.

Under the DCF method, for the Company, its corporate value and share value, etc., were calculated, with the present value derived by applying a certain discount rate to the free cash flow that the Company is expected to generate from the second quarter of the fiscal year ended March 31, 2026 onwards, based on various factors such as the Company's financial forecasts for the four (4)-year period from the fiscal year ended March 31, 2026 through the fiscal year ending March 31, 2029 that the period can be reasonably predicted at this time, taking into account the current earnings environment, performance, etc., the Company's financial information for the first quarter of the fiscal year ended March 31, 2026, and publicly available information, and from there the Share Transfer Ratio was calculated. In the financial forecasts above, there are fiscal years in which significant fluctuations in earnings or free cash are projected. Specifically, for the fiscal year ended March 31, 2026, free cash flow is expected to decrease from the previous fiscal year due to an increase in working capital. For the fiscal year ending March 31, 2027, free cash flow is expected to increase from the previous fiscal year due to a decrease in working capital. For the fiscal year ending March 31, 2028, operating profit is expected to increase from the previous fiscal year due to factors such as the impact of increased sales volume resulting from solid sales expansion in the seal business and the electronic product business. In addition, free cash flow is expected to decrease from the previous fiscal year due to an increase in working capital accompanying the increase in sales volume. For the fiscal year ending March 31, 2029, free cash flow is expected to increase from the previous fiscal year due to a decrease in working capital in addition to a decrease in capital expenditures. The synergies expected to be realized through the implementation of the Management Integration have not been taken into account in the financial forecasts below, nor have they been included in the calculations made by Daiwa Securities based on these forecasts, because it is currently difficult to specifically estimate the impact on earnings.

On the other hand, for Eagle Industry, its corporate value and share value were calculated, with the present value derived by applying a certain discount rate to the free cash flow that Eagle Industry is expected to generate from the second quarter of the fiscal year ended March 31, 2026 onwards, based on various factors such as Eagle Industry's financial forecasts for the four (4)-year period from the fiscal year ended March 31, 2026 through the fiscal year ending March 31, 2029 that the period can be reasonably predicted at this time, taking into account the current earnings environment, performance, etc., Eagle Industry's financial information for the first quarter of the fiscal year ended March 31, 2026, and publicly available information, and from there the Share Transfer Ratio was calculated. In the financial forecasts above, there are fiscal years in which significant fluctuations in earnings or free cash are projected. Specifically, for the fiscal year ended March 31, 2026, operating profit is expected to increase from the previous fiscal year due to factors such as the impact of increased sales volume resulting from solid sales expansion in the semiconductor industry. For the same reasons, free cash flow is expected to increase from the previous fiscal year. For the fiscal year ending March 31, 2027, free cash flow is expected to increase from the previous fiscal year due to a decrease in capital expenditures. For the fiscal year ending March 31, 2028, free cash flow is expected to decrease from the previous fiscal year due to an increase in capital expenditures. For the fiscal year ending March 31, 2029, free cash flow is expected to increase from the previous fiscal year due to a decrease in capital expenditures. The synergies expected to be realized through the implementation of the Management Integration have not been taken into account in the financial forecasts below, nor have they been included in the calculations made by Daiwa Securities based on these forecasts, because it is currently difficult to specifically estimate the impact on earnings.

In calculating the share value of the Companies' shares, Daiwa Securities used the information provided by the Companies and publicly available information as is, assuming that all such materials and information were accurate and complete, without independently verifying their accuracy or completeness. Additionally, no independent assessment or appraisal of the assets or liabilities (including off-balance sheet assets and liabilities or other contingent liabilities) of the Companies or their affiliates have been made or obtained, nor have any requests been made to the third-party institutions to value or appraise them. Daiwa Securities' calculations reflect the above information as of November 7, 2025.

Mizuho Securities used the average market price method as the shares of both the Company and Eagle Industry are listed on the Prime Market of the Tokyo Stock Exchange and have market prices, the comparable multiple valuation method as it is possible to make an analogy of the value of the shares of the Companies based on the market share prices of several listed companies comparable to the Companies, and the DCF method, which reflects the Companies' business performance and forecasts in the valuation, to calculate the value of the shares of the Companies. The results of the calculations under each of the methods are as follows. The following calculated ranges for the Share Transfer Ratio below represent the results of the calculations of the number of shares of the Joint Holding Company's common stock to be allotted for one (1) share of Eagle Industry's common stock where one (1) share of the Joint Holding Company's common stock is allotted for (1) share of the Company's common stock.

---

| | |
|:---|:---|
| &nbsp;&nbsp;Adopted Method | &nbsp;&nbsp;Calculation range for the Share Transfer Ratio |
| &nbsp;&nbsp;Average market price method | &nbsp;&nbsp;0.97 to 1.01 |
| &nbsp;&nbsp;Comparable company analysis | &nbsp;&nbsp;0.82 to 1.29 |
| &nbsp;&nbsp;DCF method | &nbsp;&nbsp;0.72 to 1.34 |

---

In addition, for the average market price method, November 7, 2025, the business day preceding the announcement date of the Share Transfer, was adopted as the calculation base date, and the closing prices of the Company and Eagle Industry on the TSE Prime Market on the calculation base date and the simple average of the closing prices for the respective periods of one (1) month prior to the calculation base date, three (3) months prior to the calculation base date, and six (6) months prior to the calculation base date were adopted. The above range of the Share Transfer Ratio was calculated based on the results of said valuations.

In the comparable company analysis, Toyoda Gosei Co., Ltd. and Nifco Inc. were selected as listed companies that operate businesses that are relatively similar to the Company, and THK Co., Ltd., Harmonic Drive Systems Inc., Tsubakimoto Chain Co., KITZ Corporation, and Oiles Corporation were selected as listed companies that operate businesses that are relatively similar to Eagle Industry. The Share Transfer Ratio was then calculated by calculating the value per share of the Companies using the multiple of EBITDA to corporate value.

Under the DCF method, for the Company, its corporate value and share value, etc., were calculated and the Share Transfer Ratio was calculated by discounting the free cash flow that the Company is expected to generate from the first quarter of the fiscal year ended March 31, 2026 onwards at a certain discount rate to its present value, based on various factors such as the Company's financial forecasts in the business plan for the four (4) -year period from the fiscal year ended March 31, 2026 to the fiscal year ending March 31, 2029, which the Company prepared based on its current earnings environment and performance, etc., with the period being a reasonably predictable period at the time of writing, the Company's financial information for the second quarter of the fiscal year ended March 31, 2026, and publicly available information. The discount rate applied was the weighted average cost of capital, with a range of from 8.3% to 9.3%. The perpetuity growth method and the exit multiple method are used to calculate the terminal value. Under the perpetuity growth method, the perpetuity growth rate was set at 1.5% to 2.5%, taking into consideration the external environment and other factors, and the terminal value has been calculated to be between JPY 387.032 billion and 542.504 billion. Under the exit multiple method, the ratio of EBITDA multiples applicable to corporate value was set at 3.8 to 4.8 times, taking into account the level of listed companies selected by the comparable company analysis, and the terminal value has been calculated to be between JPY 292.522 billion and 383.249 billion. In addition, investment securities other than those related to shares of Eagle Industry held by the Company are recognized as non-operational assets that have a significant impact on the valuation of shares, and the share of profit accounted for using the equity method of Eagle Industry held by the Company is included in free cash flow by adding to EBITDA. Specific numerical values of the financial forecasts that Mizuho Securities used as a basis for calculation under the DCF method are as follows.

In the financial forecasts above, there are fiscal years in which significant fluctuations in earnings or free cash are projected. Specifically, for the fiscal year ending March 31, 2027, free cash flow is expected to decrease by 40.2% from the previous fiscal year, due to factors such as a temporary increase in capital investment in the seal business. For the fiscal year ending March 31, 2028, operating profit is expected to increase by 43.9% from the previous fiscal year, primarily due to factors such as the impact of increased sales volume resulting from solid sales expansion in the seal and electronic product businesses. However, free cash flow is projected to decrease by 31.9% from the previous fiscal year due to factors such as an increase in working capital. For the fiscal year ending March 31, 2029, free cash flow is expected to increase by 164.0% from the previous fiscal year, primarily due to a decrease in capital investment in the electronic product business. The synergies expected to be realized through the implementation of the Management Integration have not been taken into account in the financial forecasts below, nor have they been included in the calculations made by Mizuho Securities based on these forecasts, because it is currently difficult to specifically estimate the impact on earnings.

(Units: JPY 1 million)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp; FYE March 2026<br> (9 months) | &nbsp;&nbsp;FYE March 2027 | &nbsp;&nbsp;FYE March 2028 | &nbsp;&nbsp;FYE March 2029 |
| &nbsp;&nbsp;Sales volume | &nbsp;&nbsp;555033 | &nbsp;&nbsp;706526 | &nbsp;&nbsp;757179 | &nbsp;&nbsp;780453 |
| &nbsp;&nbsp;Operating profit | &nbsp;&nbsp;25898 | &nbsp;&nbsp;29214 | &nbsp;&nbsp;42032 | &nbsp;&nbsp;50077 |
| &nbsp;&nbsp;EBITDA | &nbsp;&nbsp;64729 | &nbsp;&nbsp;83746 | &nbsp;&nbsp;99353 | &nbsp;&nbsp;108381 |
| &nbsp;&nbsp;Free cash flow | &nbsp;&nbsp;26830 | &nbsp;&nbsp;21481 | &nbsp;&nbsp;14629 | &nbsp;&nbsp;38619 |

---

On the other hand, for Eagle Industry, its corporate value and share value were calculated, with the present value derived by applying a certain discount rate to the free cash flow that Eagle Industry is expected to generate from the second quarter of the fiscal year ended March 31, 2026 onwards, based on various factors such as Eagle Industry's financial forecasts for the four (4)-year period from the fiscal year ended March 31, 2026 through the fiscal year ending March 31, 2029 that the period can be reasonably predicted at this time, taking into account the current earnings environment, performance, etc., Eagle Industry's financial information for the first quarter of the fiscal year ended March 31, 2026, and publicly available information, and from there the Share Transfer Ratio was calculated. The discount rate applied was the weighted average cost of capital, with a range of from 8.4% to 9.4%. The perpetuity growth method and the exit multiple method are used to calculate the terminal value. Under the perpetuity growth method, the perpetuity growth rate was set at 1.5% to 2.5%, taking into consideration the external environment and other factors, and the terminal value has been calculated to be between JPY 139.863 billion and 194.781 billion. Under the exit multiple method, the ratio of EBITDA multiples applicable to corporate value was set at 5.6 to 6.6 times, taking into account the level of listed companies selected by the comparable company analysis, and the terminal value has been calculated to be between JPY 121.180 billion and 147.785 billion. Investment securities are recorded as non-operational assets that have a significant impact on the valuation of shares. Specific numerical values of the financial forecasts that Mizuho Securities used as a basis for calculation under the DCF method are as follows. In the financial forecasts above, there are fiscal years in which significant fluctuations in earnings or free cash are projected. Specifically, for the fiscal year ended March 31, 2026, operating profit is expected to increase by 37.7% from the previous fiscal year, primarily due to the impact of increased sales volume resulting from strong sales growth in businesses targeting the semiconductor industry, and free cash flow is projected to increase by 44.9% from the previous fiscal year. For the fiscal year ending March 31, 2027, free cash flow is expected to increase by 50.7% from the previous fiscal year, primarily due to a decrease in capital expenditures in businesses targeting the automotive, construction machinery, and marine industries. For the fiscal year ending March 31, 2029, free cash flow is expected to increase by 38.2% from the previous fiscal year, mainly due to a decrease in capital expenditures in the semiconductor industry. The synergies expected to be realized through the implementation of the Management Integration have not been taken into account in the financial forecasts below, nor have they been included in the calculations made by Mizuho Securities based on these forecasts, because it is currently difficult to specifically estimate the impact on earnings.

(Units: JPY 1 million)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp; FYE March 2026<br> (9 months) | &nbsp;&nbsp;FYE March 2027 | &nbsp;&nbsp;FYE March 2028 | &nbsp;&nbsp;FYE March 2029 |
| &nbsp;&nbsp;Sales volume | &nbsp;&nbsp;132511 | &nbsp;&nbsp;178000 | &nbsp;&nbsp;184000 | &nbsp;&nbsp;192000 |
| &nbsp;&nbsp;Operating profit | &nbsp;&nbsp;8702 | &nbsp;&nbsp;11300 | &nbsp;&nbsp;12300 | &nbsp;&nbsp;14500 |
| &nbsp;&nbsp;EBITDA | &nbsp;&nbsp;20369 | &nbsp;&nbsp;27160 | &nbsp;&nbsp;28054 | &nbsp;&nbsp;30269 |
| &nbsp;&nbsp;Free cash flow | &nbsp;&nbsp;7251 | &nbsp;&nbsp;12831 | &nbsp;&nbsp;10071 | &nbsp;&nbsp;13921 |

---

Mizuho Securities, in calculating the above Share Transfer Ratio, has generally adopted publicly available information and information provided to Mizuho Securities by the Company and Eagle Industry as presented, assuming that all materials and information are accurate and complete. Mizuho Securities has not independently verified the accuracy or completeness of such information and bears no obligation or responsibility for such verification. Mizuho Securities has not made or obtained any independent assessment or appraisal of the assets and liabilities (including derivative transactions, off-balance sheet assets and liabilities and other contingent liabilities) of both companies or their affiliates, nor has it requested any third-party institution to value or appraise them. Mizuho Securities assumes that the business plans, financial forecasts and other forward- looking information provided by the Companies have been prepared in accordance with reasonable and proper procedures based on the best estimates and judgments currently possible by the management of the Companies. Mizuho Securities relies on such information without independently verifying the accuracy, adequacy, and feasibility of the respective business plans. Mizuho Securities' calculation of the Share Transfer Ratio reflects the information and economic conditions received by Mizuho Securities as of November 7, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Prospects for delisting and handling of application for listing, etc. of Joint Holding Company

The Companies plan to make a technical listing of the shares of the newly established Joint Holding Company on the Prime Market of the Tokyo Stock Exchange. The listing date is scheduled to be October 1, 2026, the date of registration of the establishment of the Joint Holding Company. The Companies will be delisted from the Tokyo Stock Exchange on September 29, 2026, prior to the listing of the Joint Holding Company, as the Companies will become wholly-owned subsidiaries of the Joint Holding Company through the Share Transfer. The actual delisting date will be determined in accordance with the respective rules of the Tokyo Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Measures to ensure fairness (including measures to avoid conflict of interest)

Since the Company owns 32.03% of the total number of issued shares of Eagle Industry (excluding treasury shares) (as of September 30, 2025), and is also another affiliate of Eagle Industry, the Share Transfer does not constitute a material transaction with a controlling shareholder for Eagle Industry. Additionally, the shares of the Joint Holding Company are scheduled to be made a technical listing on the Prime Market of the Tokyo Stock Exchange, and so this does not constitute a case in which the wholly owning parent company established through the Share Transfer does not apply for a new listing. However, because the Company is another affiliate of Eagle Industry, the Share Transfer falls under a case where "Matters to Be Observed Pertaining to MBOs, etc.", stipulated in Article 441 of the Securities Listing Regulations of the Tokyo Stock Exchange, apply to Eagle Industry. Accordingly, the Companies have taken the following measures to ensure the fairness of the Share Transfer Ratio and other aspects of the Share Transfer (including measures to avoid conflict of interest).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Obtaining a valuation report from an independent third-party valuation institution

As stated in "(1) Matters concerning shares of the Joint Holding Company to be delivered by the Joint Holding Company to the shareholders of the Companies upon the Share Transfer and concerning the allocation of shares of the Joint Holding Company" above, in order to ensure the fairness and reasonableness of the Share Transfer, the Company and Eagle Industry have appointed Daiwa Securities and Mizuho Securities, respectively, as independent third-party valuation institutions and obtained a Share Transfer Ratio valuation report as a basis for agreeing on the Share Transfer Ratio for the Share Transfer. Neither company has obtained a written opinion (so-called fairness opinion) from the aforementioned third-party valuation institutions stating that the Share Transfer Ratio is appropriate for their respective shareholders from a financial perspective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Advice from independent law firms

In order to ensure the fairness and appropriateness of the Share Transfer, the Company and Eagle Industry appointed Mori Hamada & Matsumoto and Nishimura & Asahi (Gaikokuho Kyodo Jigyo), respectively, as independent legal advisors, and have received advice on the procedures and decision-making methods and processes for the Share Transfer. Mori Hamada & Matsumoto and Nishimura & Asahi (Gaikokuho Kyodo Jigyo) are not related parties of any of the Companies and do not have material interests in connection with the Management Integration that should be specifically noted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Obtaining a report from a special committee with no interest in Eagle Industry

Since the Company owns 32.03% of the total number of issued shares of Eagle Industry (as of September 30, 2025), and is also another affiliate of Eagle Industry, the Management Integration, including the Share Transfer, may have structural conflicts of interest, and so Eagle Industry established a special committee ("Eagle Industry Special Committee") consisting of five (5) members, none of whom have any interests in the Company or Eagle Industry: Risa Yamasawa, an Outside Director of Eagle Industry; Takashi Koike, Katsuhiko Shono and Masako Sakaguchi, who are Outside Directors and Audit & Supervisory Committee Members of Eagle Industry; and Masahiko Yasuda (President and Representative Director of Benedi Consulting Co., Ltd., certified public accountant), who is an outside expert (Takashi Koike was elected as the Chairperson of the Eagle Industry Special Committee by mutual vote among the committee members, and the membership of the Eagle Industry Special Committee has not changed since its establishment). The purpose of this committee is to consider and ensure the fairness of the Management Integration, including the Share Transfer, eliminate arbitrariness in decision-making regarding the Management Integration, ensure the fairness, transparency, and objectivity of Eagle Industry's decision-making process, avoid conflicts of interest, and confirm that Eagle Industry's decision to proceed with the Management Integration is fair to Eagle Industry's general shareholders.

In considering the Management Integration, Eagle Industry's board of directors requested the Eagle Industry Special Committee to provide advice regarding (i) the appropriateness and reasonableness of the purpose of the Management Integration (including whether the Management Integration will contribute to enhancing Eagle Industry's corporate value), (ii) the fairness of the transaction terms and conditions of the Management Integration (including the Share Transfer Ratio in the Share Transfer), (iii) the fairness of the procedures related to the Management Integration, and (iv) whether the Management Integration is fair to the general shareholders of Eagle Industry (the "Inquiry Matters").

Furthermore, Eagle Industry's board of directors resolved that, in the event that the Eagle Industry Special Committee determines that the Management Integration will be disadvantageous to the general shareholders of Eagle Industry, it will not support the Management Integration (will not enter into an agreement regarding the Management Integration) and will grant to the Eagle Industry Special Committee (a) the authority to designate or approve (including post-approval) the Eagle Industry's third-party valuation institutions, legal advisers, financial advisers, and other advisers ("Advisors, etc." for the Inquiry Matters) to ensure appropriate judgment,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the authority to appoint, at the expense of Eagle Industry, Advisors, etc., to the Eagle Industry Special Committee (Eagle Industry will bear the reasonable expenses with regard to technical advice, such as advisers to the Eagle Industry Committee), (c) the authority to appoint, at the expense of Eagle Industry, persons to assist the Eagle Industry Special Committee in its duties, (d) the authority to require Eagle Industry's directors, employees, and other persons deemed necessary by the Eagle Industry Special Committee to attend meetings of the Eagle Industry Special Committee and to request explanations of necessary information, and (e) the authority to negotiate the terms of the Management Integration or to give instructions to Eagle Industry regarding such negotiations, as appropriate. In response, after considering independence, expertise, track records, etc., the Eagle Industry Special Committee approved Mizuho Securities as a financial advisor and third-party valuation institution and Nishimura & Asahi (Gaikokuho Kyodo Jigyo) as a legal advisor appointed by Eagle Industry, as they determined there are no issues regarding their independence or expertise from the Company, Eagle Industry, or the success or failure of the Management Integration, and confirmed that the Eagle Industry Special Committee can receive expert advice as necessary.

The Eagle Industry Special Committee also approved the directors, etc., of Eagle Industry to be involved in the consideration of the Management Integration after confirming that they are independent from the Company and Eagle Industry and that there are no problems from the viewpoint of a conflict of interest.

The compensation of the Eagle Industry Special Committee shall be paid in consideration of the duties of the committee in an amount corresponding to the period of establishment of the Eagle Industry Special Committee, regardless of the content of the report, and does not include a fee contingent upon the announcement or establishment of the Management Integration.

The Eagle Industry Special Committee conducted careful examination concerning the Inquiry Matters by holding a total of 14 meetings with all members present for all meetings for a total of approximately 19.7 hours from June 25, 2025 to November 7, 2025, as well as by stating their opinions, exchanging information, and collecting information, etc. orally or through e-mails, etc. outside of meetings, and holding ad hoc discussions as necessary.

Specifically, the Eagle Industry Special Committee has conducted (i) hearings with the Company regarding the background and circumstances that led to the proposal for the Management Integration, the purpose of the Management Integration, synergies that will result from the Management Integration, and management policies, expected structure, etc., after the Management Integration; (ii) hearings with Eagle Industry regarding the status of evaluation and consideration of the Company's proposal, the content of discussions with the Company, and the content and preparation method of the business plan that served as the basis for the valuation of Eagle Industry shares by Mizuho Securities; (iii) hearings with Mizuho Securities regarding the content and progress of the Management Integration, as well as the details and method of the valuation of Eagle Industry shares; and (iv) hearings with Nishimura & Asahi (Gaikokuho Kyodo Jigyo) regarding legal advice, including advice on measures to be taken to ensure the fairness of the procedures in the Management Integration, the various procedures related to the Management Integration, the method of deliberation by the Eagle Industry Special Committee regarding the Management Integration, and negotiations with the Company regarding the Share Transfer Ratio and other conditions. Based on financial advice and the Share Transfer Ratio valuation report received from Mizuho Securities on November 7, 2025, as well as the legal advice obtained from Nishimura & Asahi (Gaikokuho Kyodo Jigyo), the Eagle Industry Special Committee carefully discussed and considered the Inquiry Matters and submitted the Report to the Eagle Industry board of directors on November 7, 2025, with the unanimous consent of all members.

The Report contains the following conclusion on the Inquiry Matters: (i) the Management Integration is considered to contribute to enhancing Eagle Industry's corporate value, and the purpose of the Management Integration is considered to be appropriate and reasonable; (ii) the transaction terms and conditions, including the Share Transfer Ratio in the Share Transfer, are considered to be fair; (iii) the procedures related to the Management Integration are considered to be fair; and (iv) the Management Integration is considered to be fair to general shareholders.

For further details, including the contents of and reasons behind the Eagle Industry Special Committee's report, please refer to the Report in Attachment 1 to the press release entitled "Execution of Integration Agreement and Preparation of Share Transfer Plan for Management Integration through the Establishment of a Joint Holding Company (Share Transfer) between NOK Corporation and Eagle Industry Co., Ltd." released by the Company and Eagle Industry on November 10, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Unanimous approval of all directors (including directors who are audit and supervisory committee members) with no interest in Eagle Industry

Based on financial advice and the Share Transfer Ratio valuation report received from Mizuho Securities and the legal advice obtained from Nishimura & Asahi (Gaikokuho Kyodo Jigyo), Eagle Industry has carefully discussed and considered the Management Integration, including the Share Transfer, while respecting the content of the Report submitted by the Eagle Industry Special Committee to the maximum extent possible. As a result, at a meeting of the Eagle Industry's board of directors held on November 10, 2025, 12 directors (including directors who are audit and supervisory committee members) with no interests unanimously resolved to execute the Management Integration Agreement and prepare the Share Transfer Plan (the Company's note: the version of the Share Transfer Plan before the amendment by the agreement dated May 21, 2026 between the Company and Eagle Industry).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Establishment of an independent review system at Eagle Industry

Eagle Industry has established a system within Eagle Industry to conduct deliberations, negotiations, and decision-making regarding the Share Transfer independently of the Company and the outcome of the Share Transfer. Specifically, Eagle Industry established a framework to conduct deliberations regarding the Share Transfer (including the preparation of the business plan forming the basis for the Company's share valuation) and to engage in discussions and negotiations with the Company starting from June 20, 2025, the date it received the proposal concerning the Management Integration from the Company.

Based on the advice of Nishimura & Asahi (Gaikokuho Kyodo Jigyo), the Eagle Industry Special Committee confirmed that the Company and parties with an independent interest in the success or failure of the Share Transfer did not participate in the internal review, negotiation, and decision of the Share Transfer. The handling of these matters, including the review framework of Eagle Industry, has been approved by the Eagle Industry Special Committee, confirming that there are no issues from the perspective of independence and fairness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Ensuring opportunities for other acquiring parties to make proposals (market checks)

Eagle Industry and the Company have established a deal protection provision in the Management Integration Agreement stipulating that, from the date of execution of the Management Integration Agreement, neither Eagle Industry nor the Company shall propose or solicit any transaction to any third party that is materially inconsistent with or conflicts with the Management Integration or that could impede the purpose of the Management Integration.

However, if Eagle Industry receives a bona fide competing proposal at least 14 days prior to the effective date of the Share Transfer, it is not prohibited from providing information to the third party that made such proposal or from consulting and negotiating with that third party, to the extent necessary and reasonable to fulfill its directors' fiduciary duty of care. Furthermore, Eagle Industry has established a Fiduciary Out provision stipulating that the Eagle Industry Special Committee may terminate the Management Integration Agreement if it withdraws the recommendations contained in the Report, and reasonably determines that refusing the competing proposal would violate the fiduciary duty of care of the directors of Eagle Industry.

In addition, there is a period of approximately 11 months between the announcement of the Management Integration and October 1, 2026, which is the scheduled effective date of the Share Transfer. Further, the general meeting of shareholders where the resolution to approve or not approve the Share Transfer Plan related to the Share Transfer is to be held in late June 2026, allowing for a period of approximately 8 months from the announcement. Accordingly, in addition to ensuring adequate time and opportunity for Eagle Industry's general shareholders to make appropriate decisions regarding their approval or disapproval of the Share Transfer Plan related to the Share Transfer, Eagle Industry has also secured opportunities for persons or entities other than the Company to make counter-acquisitions, etc., for Eagle Industry's shares. In light of the above, the establishment of a deal protection provision in the Management Integration Agreement is believed not to impair the effectiveness of the indirect market check by Eagle Industry.

Furthermore, during the review process for the Management Integration, Eagle Industry did not conduct an active market check. However, regarding the Share Transfer, it is recognized that so- called indirect market check, as described above, has been conducted. Considering that other sufficient fairness safeguards have been implemented as stated in items i. through v. above, it is believed that the absence of an active market check alone does not compromise the procedural fairness of the Management Integration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters concerning the Joint Holding Company's capital and reserves

Upon the establishment of the Joint Holding Company through the Share Transfer, the Company and Eagle Industry decided to set the amounts of capital, reserves, etc., of the Joint Holding Company as follows:

(i) Amount of capital: JPY 5 billion

(ii) Amount of capital reserve: JPY 370 billion

(iii) Amount of legal retained earnings: 0 yen

The above amounts of capital and reserves were determined within the limits specified in Article 52 of the Regulation on Corporate Accounting through consultation between the Company and Eagle Industry by taking comprehensively into account and consideration the size of the Joint Holding Company and other circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Information on Eagle Industry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Content of the financial statements for the most recent fiscal year (fiscal year ended March 31, 2026)

Pursuant to laws and regulations as well as Article 14 of the Company's Articles of Incorporation, information on Eagle Industry's financial statements for the fiscal year ended March 2026 is omitted in this notice but is found on the Internet at the Company's website, dedicated website for Reference Materials for the Annual Shareholders' Meeting, and the TSE website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Details of events occurring after the last day of the most recent fiscal year and having material impact
on the status of the corporate assets

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Details of events occurring to the Company after the last day of the most recent fiscal year and having material
impact on the status of its corporate assets

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Matters specified in Article 74 of the Ordinance for Enforcement of the Companies Act regarding candidates
for Directors (excluding Directors who are Audit & Supervisory Committee Members) of the Joint Holding Company

The candidates for Directors (excluding Directors who are Audit & Supervisory Committee Members) of the Joint Holding Company are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;No. | &nbsp;&nbsp;Name<br> (Date of Birth) | &nbsp;&nbsp;Brief Personal History, Positions, Area of Responsibility, <br> and Significant Concurrent Positions | &nbsp;&nbsp;Brief Personal History, Positions, Area of Responsibility, <br> and Significant Concurrent Positions | &nbsp;&nbsp;(1) Number of the Company's Shares Held<br> (2) Number of Eagle Industry's Shares Held<br> (3) Number of the Joint Holding Company's Shares to Be Allocated |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2005 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;May 2009 | &nbsp;&nbsp;MBA, McDonough School of Business, Georgetown University | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2015 | &nbsp;&nbsp;Department Manager, Corporate Planning Department, Corporate Planning Office, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Operating Officer, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Deputy General Manager, Corporate Planning Office, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2018 | &nbsp;&nbsp;President and Representative Director, NOK Klüber Co., Ltd. | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;Representative Director, NOK Klüber Co., Ltd. | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;Senior Operating Officer, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;General Manager, Corporate Business Strategy Office, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2020 | &nbsp;&nbsp;Director, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2020 | &nbsp;&nbsp;Senior Managing Director, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2021 | &nbsp;&nbsp;President and Representative Director, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2022 | &nbsp;&nbsp;Representative Director, Chief Executive Officer, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2023 | &nbsp;&nbsp;Representative Director, Chief Executive Officer, NOK Corporation | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;Representative Director, Group Chief Executive Officer, NOK Corporation (incumbent)<br>| &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;[Significant concurrent positions]<br> Representative Director, Chairman, MEKTEC CORPORATION (\*)<br> Representative Director, Chairman, NOK Klüber Co., Ltd.<br> Representative Director, Chairman, Unimatec Co., Ltd. (\*)<br> Vice Chairman & Director, NOK-Freudenberg Singapore Pte. Ltd.<br> Representative Director, Seiwa Jisho Co., Ltd.<br> \*Scheduled for retirement at the conclusion of the Annual Shareholders' Meeting to be held in June 2026. | &nbsp;&nbsp;[Significant concurrent positions]<br> Representative Director, Chairman, MEKTEC CORPORATION (\*)<br> Representative Director, Chairman, NOK Klüber Co., Ltd.<br> Representative Director, Chairman, Unimatec Co., Ltd. (\*)<br> Vice Chairman & Director, NOK-Freudenberg Singapore Pte. Ltd.<br> Representative Director, Seiwa Jisho Co., Ltd.<br> \*Scheduled for retirement at the conclusion of the Annual Shareholders' Meeting to be held in June 2026. | &nbsp;&nbsp;(1) 106,100 shares<br> (2) - shares<br> (3) 106,100 shares |
|  | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> Mr. Masao Tsuru has extensive experience and track record in a wide range of management areas, and has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to appropriately make comprehensive managerial judgments and decisions for the entire Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> Mr. Masao Tsuru has extensive experience and track record in a wide range of management areas, and has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to appropriately make comprehensive managerial judgments and decisions for the entire Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> Mr. Masao Tsuru has extensive experience and track record in a wide range of management areas, and has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to appropriately make comprehensive managerial judgments and decisions for the entire Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> Mr. Masao Tsuru has extensive experience and track record in a wide range of management areas, and has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to appropriately make comprehensive managerial judgments and decisions for the entire Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 1985 | &nbsp;&nbsp;Joined Yamanouchi Pharmaceutical Co., Ltd. (Currently Astellas Pharma Inc.) | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2014 | &nbsp;&nbsp;Corporate Executive, Vice President, Corporate Planning, Astellas Pharma Inc. | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2016 | &nbsp;&nbsp;Corporate Executive, Vice President, Corporate Finance & Control, Astellas Pharma Inc. | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Corporate Executive, Chief Financial Officer, Astellas Pharma Inc. | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2018 | &nbsp;&nbsp;Senior Corporate Executive, Chief Financial Officer and Interim Head of Global Procurement, Astellas Pharma Inc. | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;January 2020 | &nbsp;&nbsp;Joined Olympus Corporation | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;Executive Officer, Chief Financial Officer, Olympus Corporation | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2025 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2025 | &nbsp;&nbsp;Senior Executive Officer, Financial Strategy, NOK Corporation | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;June 2025 | &nbsp;&nbsp;Director, NOK Corporation | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;June 2025 | &nbsp;&nbsp;Director, Group Chief Financial Officer, NOK Corporation (incumbent) | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Chikashi Takeda<br> (October 6, 1962) |  |  | &nbsp;&nbsp;(1) - shares<br> (2) - shares<br> (3) - shares |
|  | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> With his high levels of expertise and insights into corporate planning and finance, Mr. Chikashi Takeda has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to contribute to planning and executing strategies to enhance corporate value throughout the Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> With his high levels of expertise and insights into corporate planning and finance, Mr. Chikashi Takeda has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to contribute to planning and executing strategies to enhance corporate value throughout the Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> With his high levels of expertise and insights into corporate planning and finance, Mr. Chikashi Takeda has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to contribute to planning and executing strategies to enhance corporate value throughout the Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> With his high levels of expertise and insights into corporate planning and finance, Mr. Chikashi Takeda has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to contribute to planning and executing strategies to enhance corporate value throughout the Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;No. | &nbsp;&nbsp;Name<br> (Date of Birth) | &nbsp;&nbsp;Brief Personal History, Positions, Area of Responsibility, <br> and Significant Concurrent Positions | &nbsp;&nbsp;Brief Personal History, Positions, Area of Responsibility, <br> and Significant Concurrent Positions | &nbsp;&nbsp;(1) Number of the Company's Shares Held<br> (2) Number of Eagle Industry's Shares Held<br> (3) Number of the Joint Holding Company's Shares to Be Allocated |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 1991 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;(1) 3,600 shares<br> (2) - shares<br> (3) 3,600 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 2010 | &nbsp;&nbsp;Department Manager, Engineering Research Department, Corporate Technology Office, NOK Corporation | &nbsp;&nbsp;(1) 3,600 shares<br> (2) - shares<br> (3) 3,600 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;Operating Officer, NOK Corporation | &nbsp;&nbsp;(1) 3,600 shares<br> (2) - shares<br> (3) 3,600 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;General Manager, Corporate Technology Office and Manufacturing Technology Office, NOK Corporation | &nbsp;&nbsp;(1) 3,600 shares<br> (2) - shares<br> (3) 3,600 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 2023 | &nbsp;&nbsp;Head of NOK R&D, NOK Corporation | &nbsp;&nbsp;(1) 3,600 shares<br> (2) - shares<br> (3) 3,600 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;June 2023 | &nbsp;&nbsp;Senior Operating Officer, Chief Technology Officer, NOK Corporation | &nbsp;&nbsp;(1) 3,600 shares<br> (2) - shares<br> (3) 3,600 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;Director, NOK Corporation | &nbsp;&nbsp;(1) 3,600 shares<br> (2) - shares<br> (3) 3,600 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;Director, Group Chief Technology Officer, Head, NOK Group R&D, NOK Corporation (incumbent) | &nbsp;&nbsp;(1) 3,600 shares<br> (2) - shares<br> (3) 3,600 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> With his high levels of expertise and insights into technology research and development fields, Mr. Yuki Sato has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to contribute to achieving technological synergies throughout the Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> With his high levels of expertise and insights into technology research and development fields, Mr. Yuki Sato has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to contribute to achieving technological synergies throughout the Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> With his high levels of expertise and insights into technology research and development fields, Mr. Yuki Sato has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to contribute to achieving technological synergies throughout the Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> With his high levels of expertise and insights into technology research and development fields, Mr. Yuki Sato has contributed to developing, and enhancing the corporate value of, NOK Corporation and the entire NOK Group. We nominate him as a candidate for Director, as we have concluded that he will be able to contribute to achieving technological synergies throughout the Joint Holding Company group and to supervise management from an objective perspective at the Joint Holding Company to be newly established. |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;April 1972 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;June 1977 | &nbsp;&nbsp;Vice President and Director, NOK INC. | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;June 1979 | &nbsp;&nbsp;Director, Eagle Industry Co., Ltd. | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;June 1981 | &nbsp;&nbsp;MBA, Sloan School of Management, Massachusetts Institute of Technology | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;January 1982 | &nbsp;&nbsp;Managing Director, Eagle Industry Co., Ltd. | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;April 1984 | &nbsp;&nbsp;Senior Managing Director, Eagle Industry Co., Ltd. | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;June 1985 | &nbsp;&nbsp;Representative Director and Vice President, Eagle Industry Co., Ltd. | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;June 1989 | &nbsp;&nbsp;Representative Director and President, Eagle Industry Co., Ltd. | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;June 2006 | &nbsp;&nbsp;Director, NOK Corporation | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Tetsuji Tsuru<br> (August 16, 1949) | &nbsp;&nbsp;June 2018 | &nbsp;&nbsp;Representative Director, Chairman of the Board and President, Eagle Industry, Ltd. (incumbent) | &nbsp;&nbsp;(1) - shares<br> (2) 169,133 shares<br> (3) 169,133 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> We nominate Mr. Tetsuji Tsuru as a candidate for Director, as he has extensive knowledge and experience in a wide range of general management, and we have concluded that he will be able to make important decisions and supervise management from an objective perspective as a Director of the Joint Holding Company to be newly established, by leveraging his deep insight into different industries and businesses that has been cultivated at Eagle Industry Co., Ltd. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> We nominate Mr. Tetsuji Tsuru as a candidate for Director, as he has extensive knowledge and experience in a wide range of general management, and we have concluded that he will be able to make important decisions and supervise management from an objective perspective as a Director of the Joint Holding Company to be newly established, by leveraging his deep insight into different industries and businesses that has been cultivated at Eagle Industry Co., Ltd. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> We nominate Mr. Tetsuji Tsuru as a candidate for Director, as he has extensive knowledge and experience in a wide range of general management, and we have concluded that he will be able to make important decisions and supervise management from an objective perspective as a Director of the Joint Holding Company to be newly established, by leveraging his deep insight into different industries and businesses that has been cultivated at Eagle Industry Co., Ltd. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> We nominate Mr. Tetsuji Tsuru as a candidate for Director, as he has extensive knowledge and experience in a wide range of general management, and we have concluded that he will be able to make important decisions and supervise management from an objective perspective as a Director of the Joint Holding Company to be newly established, by leveraging his deep insight into different industries and businesses that has been cultivated at Eagle Industry Co., Ltd. |

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&nbsp;&nbsp;&nbsp;&nbsp;1. The numbers of shares of the Companies held by each of the candidates are as of March 31, 2026. The number
of shares of the Joint Holding Company to be allocated to each of the candidates is stated based on his shareholding status as of the
same date and by taking the Share Transfer Ratio into account. The actual number of shares of the Joint Holding Company allocated is subject
to change depending on the number of shares held immediately before the date of establishment of the Joint Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;2. Candidate Mr. Masao Tsuru also serves as Representative Director and Chairman of NOK Klüber Co.,
Ltd., a trade partner of the Company and Eagle Industry. He also serves as Vice Chairman & Director for NOK-Freudenberg Singapore
Pte. Ltd. and Representative Director for Seiwa Jisho Co., Ltd. The Company receives dividend payments from NOK-Freudenberg Singapore
Pte. Ltd. Seiwa Jisho Co., Ltd. is a business partner of the Company in the area of real estate leasing, etc.

&nbsp;&nbsp;&nbsp;&nbsp;3. Other than the above, none of the candidates is expected to have any special relationship with or interest
in the Joint Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;4. If the candidates assume office as Directors, the Joint Holding Company will enter into a directors and
officers liability insurance (D&O insurance) policy as provided for in Article 430-3, paragraph 1 of the Companies Act with an insurance
company. The policy will name the Directors as the insured and will cover damages, litigation costs, etc., that may be incurred by Directors
due to their business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Matters specified in Article 74-3 of the Ordinance for Enforcement of the Companies Act regarding candidates
for Directors who are Audit & Supervisory Committee Members of the Joint Holding Company

The candidates for Directors who are Audit & Supervisory Committee Members of the Joint Holding Company are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;No. | &nbsp;&nbsp;Name<br> (Date of Birth) | &nbsp;&nbsp;Brief Personal History, Positions, Area of Responsibility, <br> and Significant Concurrent Positions | &nbsp;&nbsp;Brief Personal History, Positions, Area of Responsibility, <br> and Significant Concurrent Positions | &nbsp;&nbsp;(1) Number of the Company's Shares Held<br> (2) Number of Eagle Industry's Shares Held<br> (3) Number of the Joint Holding Company's Shares to Be Allocated |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Kazushige Hayashi<br> (November 18, 1963) | &nbsp;&nbsp;April 1991 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;(1) 3,500 shares<br> (2) - shares<br> (3) 3,500 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Kazushige Hayashi<br> (November 18, 1963) | &nbsp;&nbsp;July 2019 | &nbsp;&nbsp;Department Manager, Accounting Department, Corporate Finance & Accounting Office, NOK Corporation | &nbsp;&nbsp;(1) 3,500 shares<br> (2) - shares<br> (3) 3,500 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Kazushige Hayashi<br> (November 18, 1963) | &nbsp;&nbsp;April 2023 | &nbsp;&nbsp;Deputy General Manager, Corporate Finance & Accounting Office, NOK Corporation | &nbsp;&nbsp;(1) 3,500 shares<br> (2) - shares<br> (3) 3,500 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Kazushige Hayashi<br> (November 18, 1963) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;General Manager, Head, Internal Audit Office, NOK Corporation (incumbent) | &nbsp;&nbsp;(1) 3,500 shares<br> (2) - shares<br> (3) 3,500 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director who is an Audit & Supervisory Committee Member)<br> Mr. Kazushige Hayashi has been engaged in financial and accounting services for many years and has served as the General Manager of the Internal Audit Office. This background has given him substantial knowledge in finance, accounting, and auditing. We nominate him as a candidate for Director who is an Audit & Supervisory Committee Member, as we have concluded that he will be able to perform appropriate audit and supervision from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director who is an Audit & Supervisory Committee Member)<br> Mr. Kazushige Hayashi has been engaged in financial and accounting services for many years and has served as the General Manager of the Internal Audit Office. This background has given him substantial knowledge in finance, accounting, and auditing. We nominate him as a candidate for Director who is an Audit & Supervisory Committee Member, as we have concluded that he will be able to perform appropriate audit and supervision from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director who is an Audit & Supervisory Committee Member)<br> Mr. Kazushige Hayashi has been engaged in financial and accounting services for many years and has served as the General Manager of the Internal Audit Office. This background has given him substantial knowledge in finance, accounting, and auditing. We nominate him as a candidate for Director who is an Audit & Supervisory Committee Member, as we have concluded that he will be able to perform appropriate audit and supervision from an objective perspective at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director who is an Audit & Supervisory Committee Member)<br> Mr. Kazushige Hayashi has been engaged in financial and accounting services for many years and has served as the General Manager of the Internal Audit Office. This background has given him substantial knowledge in finance, accounting, and auditing. We nominate him as a candidate for Director who is an Audit & Supervisory Committee Member, as we have concluded that he will be able to perform appropriate audit and supervision from an objective perspective at the Joint Holding Company to be newly established. |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;April 1972 | &nbsp;&nbsp;Joined the Ministry of International Trade and Industry (currently the Ministry of Economy, Trade and Industry) | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 1977 | &nbsp;&nbsp;MBA, Harvard Business School, Harvard University | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 1987 | &nbsp;&nbsp;Head of Energy Efficiency Division, International Energy Agency (IEA) (in France) | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 1996 | &nbsp;&nbsp;Deputy Director-General, Trade & Economic Affairs, the Ministry of International Trade and Industry | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;February 2001 | &nbsp;&nbsp;Ambassador of Japan to the United Arab Emirates | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;September 2003 | &nbsp;&nbsp;Retired from the Ministry of Economy, Trade and Industry | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2004 | &nbsp;&nbsp;Director and Executive Officer, Nippon Light Metal Co., Ltd. | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2007 | &nbsp;&nbsp;Director and Senior Executive Officer, Nippon Light Metal Co., Ltd. | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2013 | &nbsp;&nbsp;Director and Executive Vice President, Nippon Light Metal Co., Ltd. | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;July 2015 | &nbsp;&nbsp;Director General, Japan Association for Chemical Innovation | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2016 | &nbsp;&nbsp;External Director, NOK Corporation | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2016 | &nbsp;&nbsp;Outside Director, Eagle Industry Co., Ltd. | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member), NOK Corporation (incumbent) | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;August 2024 | &nbsp;&nbsp;Chairperson of the Nomination and Remuneration Advisory Committee, NOK Corporation (incumbent)<br>| &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, Nippon Paper Industries Co., Ltd. | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, Nippon Paper Industries Co., Ltd. | &nbsp;&nbsp;(1) 9,300 shares<br> (2) 4,800 shares<br> (3) 14,100 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Makoto Fujioka has a wealth of experience and profound insight in industrial policy and diplomacy, as well as a proven track record of corporate management based on such expertise. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide appropriate advice, audit and supervision in general management of the Joint Holding Company to be newly established, from an objective, extensive, and advanced perspective. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Makoto Fujioka has a wealth of experience and profound insight in industrial policy and diplomacy, as well as a proven track record of corporate management based on such expertise. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide appropriate advice, audit and supervision in general management of the Joint Holding Company to be newly established, from an objective, extensive, and advanced perspective. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Makoto Fujioka has a wealth of experience and profound insight in industrial policy and diplomacy, as well as a proven track record of corporate management based on such expertise. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide appropriate advice, audit and supervision in general management of the Joint Holding Company to be newly established, from an objective, extensive, and advanced perspective. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Makoto Fujioka has a wealth of experience and profound insight in industrial policy and diplomacy, as well as a proven track record of corporate management based on such expertise. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide appropriate advice, audit and supervision in general management of the Joint Holding Company to be newly established, from an objective, extensive, and advanced perspective. |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;No. | &nbsp;&nbsp;Name<br> (Date of Birth) | &nbsp;&nbsp;Brief Personal History, Positions, Area of Responsibility, <br> and Significant Concurrent Positions | &nbsp;&nbsp;Brief Personal History, Positions, Area of Responsibility, <br> and Significant Concurrent Positions | &nbsp;&nbsp;(1) Number of the Company's Shares Held<br> (2) Number of Eagle Industry's Shares Held<br> (3) Number of the Joint Holding Company's Shares to Be Allocated |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;April 1993 | &nbsp;&nbsp;Joined Apple Computer, Inc. | &nbsp;&nbsp;(1) 10,000 shares<br> (2) 10,000 shares<br> (3) 20,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;June 1998 | &nbsp;&nbsp;MBA, Sloan School of Management, Massachusetts Institute of Technology | &nbsp;&nbsp;(1) 10,000 shares<br> (2) 10,000 shares<br> (3) 20,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;October 1998 | &nbsp;&nbsp;Joined Boston Consulting Group | &nbsp;&nbsp;(1) 10,000 shares<br> (2) 10,000 shares<br> (3) 20,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;September 2001 | &nbsp;&nbsp;Chief Executive Officer, P&E DIRECTIONS, INC. (incumbent) | &nbsp;&nbsp;(1) 10,000 shares<br> (2) 10,000 shares<br> (3) 20,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;June 2022 | &nbsp;&nbsp;External Director, NOK Corporation | &nbsp;&nbsp;(1) 10,000 shares<br> (2) 10,000 shares<br> (3) 20,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;June 2022 | &nbsp;&nbsp;Outside Director, Eagle Industry Co., Ltd. | &nbsp;&nbsp;(1) 10,000 shares<br> (2) 10,000 shares<br> (3) 20,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member), NOK Corporation (incumbent)<br>| &nbsp;&nbsp;(1) 10,000 shares<br> (2) 10,000 shares<br> (3) 20,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, Japan Business Systems, Inc.<br> External Director, RENOVA, Inc. | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, Japan Business Systems, Inc.<br> External Director, RENOVA, Inc. | &nbsp;&nbsp;(1) 10,000 shares<br> (2) 10,000 shares<br> (3) 20,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Naoki Shimada has extensive experience in corporate management as a business manager and consultant. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide, from an extensive perspective based on his knowledge, appropriate advice, audit and supervision on business development and group strategies, including the creation of new businesses, at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Naoki Shimada has extensive experience in corporate management as a business manager and consultant. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide, from an extensive perspective based on his knowledge, appropriate advice, audit and supervision on business development and group strategies, including the creation of new businesses, at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Naoki Shimada has extensive experience in corporate management as a business manager and consultant. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide, from an extensive perspective based on his knowledge, appropriate advice, audit and supervision on business development and group strategies, including the creation of new businesses, at the Joint Holding Company to be newly established. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Naoki Shimada has extensive experience in corporate management as a business manager and consultant. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide, from an extensive perspective based on his knowledge, appropriate advice, audit and supervision on business development and group strategies, including the creation of new businesses, at the Joint Holding Company to be newly established. |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;August 1991 | &nbsp;&nbsp;Joined Dobosha Publishing Co., Ltd. | &nbsp;&nbsp;(1) 600 shares<br> (2) - shares<br> (3) 600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;October 1998 | &nbsp;&nbsp;CEO, Mediagene Inc. (Formerly INFOBAHN Group Inc.) (incumbent) | &nbsp;&nbsp;(1) 600 shares<br> (2) - shares<br> (3) 600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;May 2023 | &nbsp;&nbsp;CEO, TNL Mediagene Inc. (formerly TNL Mediagene Japan) (incumbent) | &nbsp;&nbsp;(1) 600 shares<br> (2) - shares<br> (3) 600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member), NOK Corporation (incumbent) | &nbsp;&nbsp;(1) 600 shares<br> (2) - shares<br> (3) 600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;March 2025 | &nbsp;&nbsp;Director, INFOBAHN Inc. (incumbent) | &nbsp;&nbsp;(1) 600 shares<br> (2) - shares<br> (3) 600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Motoko Imada<br> (February 26, 1967) |  |  | &nbsp;&nbsp;(1) 600 shares<br> (2) - shares<br> (3) 600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;[Significant concurrent positions]<br> Director, TNL Mediagene | &nbsp;&nbsp;[Significant concurrent positions]<br> Director, TNL Mediagene | &nbsp;&nbsp;(1) 600 shares<br> (2) - shares<br> (3) 600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> Ms. Motoko Imada has experience in corporate management not only in Japan but also globally. We nominate her as a candidate for External Director who is an Audit & Supervisory Committee Member, as she is expected to provide objective and appropriate advice, audit, and supervision on the management and strategic external policies of the Joint Holding Company to be newly established, based on her background and keen perspective on trends cultivated in the media industry. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> Ms. Motoko Imada has experience in corporate management not only in Japan but also globally. We nominate her as a candidate for External Director who is an Audit & Supervisory Committee Member, as she is expected to provide objective and appropriate advice, audit, and supervision on the management and strategic external policies of the Joint Holding Company to be newly established, based on her background and keen perspective on trends cultivated in the media industry. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> Ms. Motoko Imada has experience in corporate management not only in Japan but also globally. We nominate her as a candidate for External Director who is an Audit & Supervisory Committee Member, as she is expected to provide objective and appropriate advice, audit, and supervision on the management and strategic external policies of the Joint Holding Company to be newly established, based on her background and keen perspective on trends cultivated in the media industry. | &nbsp;&nbsp;(Reasons for nomination as a candidate for Director)<br> Ms. Motoko Imada has experience in corporate management not only in Japan but also globally. We nominate her as a candidate for External Director who is an Audit & Supervisory Committee Member, as she is expected to provide objective and appropriate advice, audit, and supervision on the management and strategic external policies of the Joint Holding Company to be newly established, based on her background and keen perspective on trends cultivated in the media industry. |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;April 2000 | &nbsp;&nbsp;Admitted to the bar in Japan | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2004 | &nbsp;&nbsp;Outside Corporate Auditor, DMS Inc. | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2015 | &nbsp;&nbsp;Outside Director, DMS Inc. (incumbent) | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2016 | &nbsp;&nbsp;External Corporate Auditor, NOK Corporation | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Vice President, Dai-ichi Tokyo Bar Association | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2018 | &nbsp;&nbsp;Outside Corporate Auditor, Eagle Industry Co., Ltd. | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;July 2018 | &nbsp;&nbsp;Specially Appointed Professor, Shinshu University Research Center for Social Systems (incumbent) | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member), NOK Corporation (incumbent) | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;August 2024 | &nbsp;&nbsp;Visiting Associate Professor, Juntendo University School of Medicine (incumbent)<br>| &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, DMS Inc. | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, DMS Inc. | &nbsp;&nbsp;(1) 3,800 shares<br> (2) 1,000 shares<br> (3) 4,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Atsushi Kajitani has extensive experience and broad insight in corporate legal services as an attorney. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide, from a legal perspective based on his knowledge as a legal professional, appropriate advice, audit and supervision on the governance and general management of the Joint Holding Company to be newly established. Although Mr. Kajitani has not been involved in corporate management other than as an external officer, we believe that he is able to appropriately perform his duties as an External Director for the reasons stated above. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Atsushi Kajitani has extensive experience and broad insight in corporate legal services as an attorney. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide, from a legal perspective based on his knowledge as a legal professional, appropriate advice, audit and supervision on the governance and general management of the Joint Holding Company to be newly established. Although Mr. Kajitani has not been involved in corporate management other than as an external officer, we believe that he is able to appropriately perform his duties as an External Director for the reasons stated above. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Atsushi Kajitani has extensive experience and broad insight in corporate legal services as an attorney. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide, from a legal perspective based on his knowledge as a legal professional, appropriate advice, audit and supervision on the governance and general management of the Joint Holding Company to be newly established. Although Mr. Kajitani has not been involved in corporate management other than as an external officer, we believe that he is able to appropriately perform his duties as an External Director for the reasons stated above. | &nbsp;&nbsp;(Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles)<br> Mr. Atsushi Kajitani has extensive experience and broad insight in corporate legal services as an attorney. We nominate him as a candidate for External Director who is an Audit & Supervisory Committee Member, as he is expected to provide, from a legal perspective based on his knowledge as a legal professional, appropriate advice, audit and supervision on the governance and general management of the Joint Holding Company to be newly established. Although Mr. Kajitani has not been involved in corporate management other than as an external officer, we believe that he is able to appropriately perform his duties as an External Director for the reasons stated above. |

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&nbsp;&nbsp;&nbsp;&nbsp;1. The numbers of shares of the Companies held by each of the candidates are as of March 31, 2026. The number
of shares of the Joint Holding Company to be allocated to each of the candidates is stated based on his shareholding status as of the
same date and by taking the Share Transfer Ratio into account. The actual number of shares of the Joint Holding Company allocated is subject
to change depending on the number of shares held immediately before the date of establishment of the Joint Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;2. Candidate Mr. Makoto Fujioka also serves as an Outside Director of Nippon Paper Industries Co., Ltd.,
a trade partner of Eagle Industry in areas related to buying and selling products. However, the annual transaction value between the two
companies accounts for less than 1% of the consolidated net sales of the Eagle Industry Group and of the Nippon Paper Industries Group.
Accordingly, there is no special relationship between Mr. Makoto Fujioka and the Joint Holding Company that may affect his independence
as an External Director.

&nbsp;&nbsp;&nbsp;&nbsp;3. Candidate Ms. Motoko Imada also serves as the Representative Director of Mediagene Inc., a business partner
of the Company to which the Company contracts out advertisement production. However, the annual transaction value between the two companies
accounts for less than 1% of the consolidated net sales of the Company Group and of the Mediagene Inc. Group. Accordingly, there is no
special relationship between Ms. Motoko Imada and the Joint Holding Company that may affect her independence as an External Director.

&nbsp;&nbsp;&nbsp;&nbsp;4. Other than the above, none of the candidates has any special relationship with or interest in the Company
or Eagle Industry, nor is any of the candidates expected to have any special relationship with or interest in the Joint Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;5. Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi Kajitani are candidates for External
Directors.

&nbsp;&nbsp;&nbsp;&nbsp;6. If the election of Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi Kajitani is
approved, the Joint Holding Company will register each of them as an independent officer as required by the Tokyo Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;7. Mr. Atsushi Kajitani serves as an Outside Director of DMS Inc., which received a cease and desist order
and a payment order for surcharge from the Japan Fair Trade Commission in March 2022 for violation of the Antimonopoly Act in connection
with a bid held by the Japan Pension Service. Although Mr. Kajitani was not aware of the relevant facts in advance, he has fulfilled his
duties by regularly making recommendations and proposals from the viewpoint of legal compliance and, after the incident was discovered,
by giving instructions for thorough investigation and prevention of recurrence at Board of Directors' meetings and on other occasions.

&nbsp;&nbsp;&nbsp;&nbsp;8. If the election of the candidates for External Directors is approved, the Joint Holding Company will,
pursuant to the provisions of Article 427, paragraph 1 of the Companies Act, enter into an agreement to limit their liability for damages
that may be imposed under Article 423, paragraph 1 of the same Act. The maximum amount of liability for damages under that agreement will
be the Minimum Liability Amount as defined in Article 425, paragraph 1 of the same Act.

&nbsp;&nbsp;&nbsp;&nbsp;9. If the candidates assume office as Directors, the Joint Holding Company will enter into a directors and
officers liability insurance (D&O insurance) policy as provided for in Article 430-3, paragraph 1 of the Companies Act with an insurance
company. The policy will name the Directors as the insured and will cover damages, litigation costs, etc., that may be incurred by Directors
due to their business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Matters specified in Article 77 of the Ordinance for Enforcement of the Companies Act regarding the candidate
for Independent Auditor of the Joint Holding Company

The candidates for Independent Auditor of the Joint Holding Company are as follows:

(As of March 31, 2026)

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Name | &nbsp;&nbsp;Nihombashi Corporation | &nbsp;&nbsp;Nihombashi Corporation | &nbsp;&nbsp;Nihombashi Corporation | &nbsp;&nbsp;Nihombashi Corporation |
| &nbsp;&nbsp;Location of principal office | &nbsp;&nbsp;1-10-7 Kyobashi, Chuo-ku, Tokyo | &nbsp;&nbsp;1-10-7 Kyobashi, Chuo-ku, Tokyo | &nbsp;&nbsp;1-10-7 Kyobashi, Chuo-ku, Tokyo | &nbsp;&nbsp;1-10-7 Kyobashi, Chuo-ku, Tokyo |
| &nbsp;&nbsp;History | &nbsp;&nbsp; 1952 Founded<br> 1969 Reorganized into an audit corporation<br> 2014 Became a member of Baker Tilly International | &nbsp;&nbsp; 1952 Founded<br> 1969 Reorganized into an audit corporation<br> 2014 Became a member of Baker Tilly International | &nbsp;&nbsp; 1952 Founded<br> 1969 Reorganized into an audit corporation<br> 2014 Became a member of Baker Tilly International | &nbsp;&nbsp; 1952 Founded<br> 1969 Reorganized into an audit corporation<br> 2014 Became a member of Baker Tilly International |
| &nbsp;&nbsp;Overview | &nbsp;&nbsp;Capital 30 million yen | &nbsp;&nbsp;Capital 30 million yen | &nbsp;&nbsp;Capital 30 million yen | &nbsp;&nbsp;Capital 30 million yen |
|  | &nbsp;&nbsp;Number of employees | &nbsp;&nbsp;Partners | &nbsp;&nbsp;(CPAs): | &nbsp;&nbsp;16 |
|  |  | &nbsp;&nbsp;Staff | &nbsp;&nbsp;CPAs: | &nbsp;&nbsp;38 |
|  |  |  | &nbsp;&nbsp;Other: | &nbsp;&nbsp;26 |
|  |  | &nbsp;&nbsp;Total: |  | &nbsp;&nbsp;80 |
|  | &nbsp;&nbsp;Audited entities, etc.: 54 entities | &nbsp;&nbsp;Audited entities, etc.: 54 entities | &nbsp;&nbsp;Audited entities, etc.: 54 entities | &nbsp;&nbsp;Audited entities, etc.: 54 entities |
| &nbsp;&nbsp; (Reasons for nomination as a candidate for Independent Auditor)<br> We nominate Nihombashi Corporation as candidate for Independent Auditor, as we have concluded that it has the expertise, independence, and internal management system required of the Independent Auditor of the Joint Holding Company and is qualified. | &nbsp;&nbsp; (Reasons for nomination as a candidate for Independent Auditor)<br> We nominate Nihombashi Corporation as candidate for Independent Auditor, as we have concluded that it has the expertise, independence, and internal management system required of the Independent Auditor of the Joint Holding Company and is qualified. | &nbsp;&nbsp; (Reasons for nomination as a candidate for Independent Auditor)<br> We nominate Nihombashi Corporation as candidate for Independent Auditor, as we have concluded that it has the expertise, independence, and internal management system required of the Independent Auditor of the Joint Holding Company and is qualified. | &nbsp;&nbsp; (Reasons for nomination as a candidate for Independent Auditor)<br> We nominate Nihombashi Corporation as candidate for Independent Auditor, as we have concluded that it has the expertise, independence, and internal management system required of the Independent Auditor of the Joint Holding Company and is qualified. | &nbsp;&nbsp; (Reasons for nomination as a candidate for Independent Auditor)<br> We nominate Nihombashi Corporation as candidate for Independent Auditor, as we have concluded that it has the expertise, independence, and internal management system required of the Independent Auditor of the Joint Holding Company and is qualified. |

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**Second Item: Appropriation of surplus**

We propose to appropriate surplus as follows.

Matters concerning year-end dividends

The Company prioritizes business investments in order to sustainably enhance corporate value while also placing importance on shareholder returns. Regarding dividends, our policy is to gradually increase the dividend per share based on mid- to long-term performance.

Based on the above basic policy, the Company proposes to pay a year-end dividend as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Type of dividend property: monetary dividends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters concerning assignment of dividend property to shareholders and amounts thereof

¥65.00 per common share Total sum: ¥10,458,685,705

As ¥65.00 per share was paid as an interim dividend, total dividends per share for this fiscal year will be ¥130.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Date from which dividends from surplus come into effect

June 26, 2026

**Third Item: Election of four (4) Directors who are not Audit & Supervisory Committee Members**

All (five) Directors who are not Audit & Supervisory Committee Members will complete their terms of office at the conclusion of this Annual Shareholders' Meeting. Accordingly, we request the election of four (4) Directors who are not Audit & Supervisory Committee Members.

The nomination of candidates is determined at a meeting of the Board of Directors pursuant to deliberation of the Nomination and Remuneration Advisory Committee, the majority of whose members are independent External Directors.

Regarding this Item, the Audit & Supervisory Committee has determined that all candidates are suitable for the position.

The candidates for Directors who are not Audit & Supervisory Committee Members are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate No. | Name | Attribute of Candidate | Current Positions and Responsibilities in the Company | Number of attendance at the Board of Directors meetings<br> (FY2025) |
| 1 | Masao Tsuru &nbsp;&nbsp;Male | &nbsp;&nbsp;Reappointed candidate | &nbsp;&nbsp; Representative Director<br> Group Chief Executive Officer | &nbsp;&nbsp; 17/17<br> (100%) |
| 2 | Chikashi Takeda &nbsp;&nbsp;Male | &nbsp;&nbsp;Reappointed candidate | &nbsp;&nbsp;Director, Group Chief Financial Officer | &nbsp;&nbsp; 13/13<br> (100%) |
| 3 | Junichi Orita &nbsp;&nbsp;Male | &nbsp;&nbsp;Reappointed candidate | &nbsp;&nbsp; Director,<br> Sealing Solution Chief Executive Officer | &nbsp;&nbsp; 17/17<br> (100%) |
| 4 | Yuki Sato &nbsp;&nbsp;Male | &nbsp;&nbsp;Reappointed candidate | &nbsp;&nbsp; Director, Group Chief Technology Officer,<br> Head, NOK Group R&D | &nbsp;&nbsp; 17/17<br> (100%) |

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Reappointed candidate: Candidate for reelection as Director

Note: As candidate Mr. Chikashi Takeda was (newly) elected as Director at the 119th Annual Shareholders' Meeting held on June 26, 2025, his attendance at Board of Directors meetings differs from that of the other candidates.

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;No. | &nbsp;&nbsp;Name<br> (Date of Birth) | &nbsp;&nbsp;Brief Personal History, and Position and Area of Responsibility at the Company<br> (Significant Concurrent Positions) | &nbsp;&nbsp;Brief Personal History, and Position and Area of Responsibility at the Company<br> (Significant Concurrent Positions) | &nbsp;&nbsp;Number of the Company's Shares Held |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2005 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;May 2009 | &nbsp;&nbsp;MBA, McDonough School of Business, Georgetown University | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2015 | &nbsp;&nbsp;Department Manager, Corporate Planning Department, Corporate Planning Office, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Operating Officer, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Deputy General Manager, Corporate Planning Office, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2018 | &nbsp;&nbsp;President and Representative Director, NOK Klüber Co., Ltd. | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;Representative Director, NOK Klüber Co., Ltd. | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;Senior Operating Officer, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;General Manager, Corporate Business Strategy Office, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2020 | &nbsp;&nbsp;Director, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2020 | &nbsp;&nbsp;Senior Managing Director, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;April 2021 | &nbsp;&nbsp;President and Representative Director, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2022 | &nbsp;&nbsp;Representative Director, Chief Executive Officer, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2023 | &nbsp;&nbsp;Representative Director, Chief Executive Officer, NOK Corporation | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;Representative Director, Group Chief Executive Officer, NOK Corporation (incumbent)<br>| &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reappointed candidate<br>Masao Tsuru<br> (June 13, 1980) | &nbsp;&nbsp;[Significant concurrent positions]<br> Representative Director, Chairman, MEKTEC CORPORATION (\*)<br> Representative Director, Chairman, NOK Klüber Co., Ltd.<br> Representative Director, Chairman, Unimatec Co., Ltd. (\*)<br> Vice Chairman & Director, NOK-Freudenberg Singapore Pte. Ltd.<br> Representative Director, Seiwa Jisho Co., Ltd.<br> \*Scheduled for retirement at the conclusion of the Annual Shareholders' Meeting to be held in June 2026. | &nbsp;&nbsp;[Significant concurrent positions]<br> Representative Director, Chairman, MEKTEC CORPORATION (\*)<br> Representative Director, Chairman, NOK Klüber Co., Ltd.<br> Representative Director, Chairman, Unimatec Co., Ltd. (\*)<br> Vice Chairman & Director, NOK-Freudenberg Singapore Pte. Ltd.<br> Representative Director, Seiwa Jisho Co., Ltd.<br> \*Scheduled for retirement at the conclusion of the Annual Shareholders' Meeting to be held in June 2026. | &nbsp;&nbsp;106,100 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Masao Tsuru be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making comprehensive managerial judgments and decisions for the entire NOK Group, as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the Company's corporate planning division and managing NOK Klüber Co., Ltd., as well as his wealth of experience and track record in a wide range of management areas. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Masao Tsuru be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making comprehensive managerial judgments and decisions for the entire NOK Group, as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the Company's corporate planning division and managing NOK Klüber Co., Ltd., as well as his wealth of experience and track record in a wide range of management areas. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Masao Tsuru be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making comprehensive managerial judgments and decisions for the entire NOK Group, as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the Company's corporate planning division and managing NOK Klüber Co., Ltd., as well as his wealth of experience and track record in a wide range of management areas. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Masao Tsuru be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making comprehensive managerial judgments and decisions for the entire NOK Group, as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the Company's corporate planning division and managing NOK Klüber Co., Ltd., as well as his wealth of experience and track record in a wide range of management areas. |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 1985 | &nbsp;&nbsp;Joined Yamanouchi Pharmaceutical Co., Ltd. (Currently Astellas Pharma Inc.) | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2014 | &nbsp;&nbsp;Corporate Executive, Vice President, Corporate Planning, Astellas Pharma Inc. | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2016 | &nbsp;&nbsp;Corporate Executive, Vice President, Corporate Finance & Control, Astellas Pharma Inc. | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Corporate Executive, Chief Financial Officer, Astellas Pharma Inc. | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2018 | &nbsp;&nbsp;Senior Corporate Executive, Chief Financial Officer and Interim Head of Global Procurement, Astellas Pharma Inc. | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;January 2020 | &nbsp;&nbsp;Joined Olympus Corporation | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;Executive Officer, Chief Financial Officer, Olympus Corporation | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2025 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;April 2025 | &nbsp;&nbsp;Senior Executive Officer, Financial Strategy, NOK Corporation | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;June 2025 | &nbsp;&nbsp;Director, NOK Corporation | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br>Chikashi Takeda<br> (October 6, 1962) | &nbsp;&nbsp;June 2025 | &nbsp;&nbsp;Director, Group Chief Financial Officer, NOK Corporation (incumbent) | &nbsp;&nbsp;- shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Chikashi Takeda be re-elected as a Director because we have concluded that he is able to execute his duties by contributing to planning and executing strategies to enhance corporate value throughout the NOK Group as well as exercise supervision of management objectively, based on his experience of serving as the head of the corporate planning division and Chief Financial Officer of another company for many years as well as his high levels of expertise and insights into corporate planning and finance. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Chikashi Takeda be re-elected as a Director because we have concluded that he is able to execute his duties by contributing to planning and executing strategies to enhance corporate value throughout the NOK Group as well as exercise supervision of management objectively, based on his experience of serving as the head of the corporate planning division and Chief Financial Officer of another company for many years as well as his high levels of expertise and insights into corporate planning and finance. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Chikashi Takeda be re-elected as a Director because we have concluded that he is able to execute his duties by contributing to planning and executing strategies to enhance corporate value throughout the NOK Group as well as exercise supervision of management objectively, based on his experience of serving as the head of the corporate planning division and Chief Financial Officer of another company for many years as well as his high levels of expertise and insights into corporate planning and finance. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Chikashi Takeda be re-elected as a Director because we have concluded that he is able to execute his duties by contributing to planning and executing strategies to enhance corporate value throughout the NOK Group as well as exercise supervision of management objectively, based on his experience of serving as the head of the corporate planning division and Chief Financial Officer of another company for many years as well as his high levels of expertise and insights into corporate planning and finance. |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;No. | &nbsp;&nbsp;Name<br> (Date of Birth) | &nbsp;&nbsp;Brief Personal History, and Position and Area of Responsibility at the Company<br> (Significant Concurrent Positions) | &nbsp;&nbsp;Brief Personal History, and Position and Area of Responsibility at the Company<br> (Significant Concurrent Positions) | &nbsp;&nbsp;Number of the Company's Shares Held |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;February 2001 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;May 2008 | &nbsp;&nbsp;MBA, Eli Broad Graduate School of Management, Michigan State University | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;July 2013 | &nbsp;&nbsp;Deputy Department Manager, International Business Department, Corporate Planning Office, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;April 2015 | &nbsp;&nbsp;Department Manager, Business Managing Department, Corporate Business Strategy Office, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Operating Officer, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Deputy General Manager, Corporate Business Strategy Office, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;June 2019 | &nbsp;&nbsp;Senior Operating Officer, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;April 2021 | &nbsp;&nbsp;General Manager, Corporate Business Strategy Office, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;June 2021 | &nbsp;&nbsp;Director, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;June 2021 | &nbsp;&nbsp;Senior Managing Director, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;June 2022 | &nbsp;&nbsp;Director, Executive Operating Officer, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;January 2023 | &nbsp;&nbsp;General Manager, Corporate Business Strategy Office and Corporate Environmental Management Office, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;June 2023 | &nbsp;&nbsp;General Manager, Corporate Business Strategy Office, NOK Corporation | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;Director, Sealing Solution Chief Executive Officer, NOK Corporation (incumbent) | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) |  |  | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br>Junichi Orita<br> (July 1, 1974) | &nbsp;&nbsp;[Significant concurrent positions]<br> Chairman & Director,<br> Wuxi NOK-Freudenberg Oilseal Co., Ltd.<br> Changchun NOK-Freudenberg Oilseal Co., Ltd.<br> Taicang NOK-Freudenberg Sealing Products Co., Ltd. | &nbsp;&nbsp;[Significant concurrent positions]<br> Chairman & Director,<br> Wuxi NOK-Freudenberg Oilseal Co., Ltd.<br> Changchun NOK-Freudenberg Oilseal Co., Ltd.<br> Taicang NOK-Freudenberg Sealing Products Co., Ltd. | &nbsp;&nbsp;11,800 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Junichi Orita be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making managerial judgments and decisions on the overall business strategy and other management-related items of the entire NOK Group (including overseas business), as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the Company's corporate planning division and business managing division. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Junichi Orita be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making managerial judgments and decisions on the overall business strategy and other management-related items of the entire NOK Group (including overseas business), as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the Company's corporate planning division and business managing division. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Junichi Orita be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making managerial judgments and decisions on the overall business strategy and other management-related items of the entire NOK Group (including overseas business), as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the Company's corporate planning division and business managing division. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Junichi Orita be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making managerial judgments and decisions on the overall business strategy and other management-related items of the entire NOK Group (including overseas business), as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the Company's corporate planning division and business managing division. |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br>Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 1991 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;3,600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br>Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 2010 | &nbsp;&nbsp;Department Manager, Engineering Research Department, Corporate Technology Office, NOK Corporation | &nbsp;&nbsp;3,600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br>Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;Operating Officer, NOK Corporation | &nbsp;&nbsp;3,600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br>Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 2020 | &nbsp;&nbsp;General Manager, Corporate Technology Office and Manufacturing Technology Office, NOK Corporation | &nbsp;&nbsp;3,600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br>Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;April 2023 | &nbsp;&nbsp;Head of NOK R&D, NOK Corporation | &nbsp;&nbsp;3,600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br>Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;June 2023 | &nbsp;&nbsp;Senior Operating Officer, Chief Technology Officer, NOK Corporation | &nbsp;&nbsp;3,600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br>Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;Director, NOK Corporation | &nbsp;&nbsp;3,600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br>Yuki Sato<br> (January 30, 1967) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;Director, Group Chief Technology Officer, Head, NOK Group R&D, NOK Corporation (incumbent) | &nbsp;&nbsp;3,600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Yuki Sato be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making decisions regarding matters such as technology strategies and new business development throughout the NOK Group as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the technology divisions of the Company for many years as well as his high levels of expertise and insights into technology research and development fields. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Yuki Sato be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making decisions regarding matters such as technology strategies and new business development throughout the NOK Group as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the technology divisions of the Company for many years as well as his high levels of expertise and insights into technology research and development fields. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Yuki Sato be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making decisions regarding matters such as technology strategies and new business development throughout the NOK Group as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the technology divisions of the Company for many years as well as his high levels of expertise and insights into technology research and development fields. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director<br> We propose that Mr. Yuki Sato be re-elected as a Director because we have concluded that he is able to execute his duties by appropriately making decisions regarding matters such as technology strategies and new business development throughout the NOK Group as well as exercise supervision of management objectively. We believe he can do so based on his experience of being involved in the technology divisions of the Company for many years as well as his high levels of expertise and insights into technology research and development fields. |

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(Note)

&nbsp;&nbsp;&nbsp;&nbsp;1. Candidate Mr. Masao Tsuru also serves as Representative Director and Chairman of NOK Klüber Co.,
Ltd., a trade partner of the Company, and as Vice Chairman & Director for NOK-Freudenberg Singapore Pte. Ltd., a company from which
the Company receives dividend payments. He also serves as a Representative Director for Seiwa Jisho Co., Ltd., a business partner of the
Company in the area of real estate leasing, etc.

&nbsp;&nbsp;&nbsp;&nbsp;2. Candidate Mr. Junichi Orita also serves as Chairman & Director for Wuxi NOK-Freudenberg Oilseal Co.,
Ltd., Changchun NOK-Freudenberg Oilseal Co., Ltd., and Taicang NOK-Freudenberg Sealing Products Co., Ltd., trade partners of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;3. The other candidates do not have any special relationship with or interest in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;4. With the aim of ensuring corporate officers are able to fully conduct their expected roles in the course
of the performance of duties and they are comprised of talented persons, the Company has entered into a directors and officers liability
insurance (D&O insurance) policy as provided for in Article 430-3, paragraph 1 of the Companies Act. If this item for resolution is
approved as originally proposed and each candidate assumes office as a Director, they will become insureds of such insurance. The insurance
policy covers losses that may arise from the insured's assumption of liability incurred in the course of the performance of duties
as corporate officers, etc., or receipt of claims pertaining to the pursuit of such liability. Provided, however, that there are certain
reasons for coverage exclusion that, for example, exclude losses arising from any act that the person carried out while being aware that
it violated laws and regulations. The entire amount of insurance premiums, including those for special clauses, are borne by the Company,
and there are no insurance premiums actually borne by the insureds. The deductible clause is set in the policy, whereby losses within
such deductible are not covered by the policy. The Company is considering renewing the policy with a renewal date of November 1, 2026
or having NOK Group Corporation, which is to be incorporated through the share transfer, enter into a similar directors and officers liability
insurance (D&O insurance) policy covering the Company's officers as well.

**Fourth Item: Election of five (5) Directors who are Audit & Supervisory Committee Members**

All (five) Directors who are Audit & Supervisory Committee Members will complete their terms of office at the conclusion of this Annual Shareholders' Meeting. Accordingly, we request the election of five (5) Directors who are Audit & Supervisory Committee Members.

The nomination of candidates is determined at a meeting of the Board of Directors pursuant to deliberation of the Nomination and Remuneration Advisory Committee, the majority of whose members are independent External Directors.

This proposal has been approved by the Audit & Supervisory Committee in advance.

The candidates for Directors who are Audit & Supervisory Committee Members are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate No. | Name | Attribute of Candidate | Current Positions and <br> Responsibilities in the Company | Number of attendance at the Board of Directors meetings<br> (FY2025) |
| 1 | Kazushige Hayashi &nbsp;&nbsp;Male | &nbsp;&nbsp;New candidate | &nbsp;&nbsp;General Manager, Head, Internal Audit Office | - |
| 2 | Makoto Fujioka &nbsp;&nbsp;Male | &nbsp;&nbsp; Reappointed candidate<br> External<br> Independent | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member) | &nbsp;&nbsp; 17/17<br> (100%) |
| 3 | Naoki Shimada &nbsp;&nbsp;Male | &nbsp;&nbsp; Reappointed candidate<br> External<br> Independent | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member) | &nbsp;&nbsp; 17/17<br> (100%) |
| 4 | Motoko Imada &nbsp;&nbsp;Female | &nbsp;&nbsp; Reappointed candidate<br> External<br> Independent | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member) | &nbsp;&nbsp; 17/17<br> (100%) |
| 5 | Atsushi Kajitani &nbsp;&nbsp;Male | &nbsp;&nbsp; Reappointed candidate<br> External<br> Independent | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member) | &nbsp;&nbsp; 17/17<br> (100%) |

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| | |
|:---|:---|
| &nbsp;&nbsp;Reappointed candidate | &nbsp;&nbsp;Candidate for reelection as Director |
| &nbsp;&nbsp;New candidate | &nbsp;&nbsp;New candidate for election as Director |
| &nbsp;&nbsp;External | &nbsp;&nbsp;Candidate for External Director |
| &nbsp;&nbsp;Independent | &nbsp;&nbsp;Independent Officer as required by the Tokyo Stock Exchange |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;No. | &nbsp;&nbsp;Name<br> (Date of Birth) | &nbsp;&nbsp;Brief Personal History, and Position and Area of Responsibility at the Company<br> (Significant Concurrent Positions) | &nbsp;&nbsp;Brief Personal History, and Position and Area of Responsibility at the Company<br> (Significant Concurrent Positions) | &nbsp;&nbsp;Number of the Company's Shares Held |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;New candidate<br>Kazushige Hayashi<br> (November 18, 1963) | &nbsp;&nbsp;April 1991 | &nbsp;&nbsp;Joined NOK Corporation | &nbsp;&nbsp;3,500 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;New candidate<br>Kazushige Hayashi<br> (November 18, 1963) | &nbsp;&nbsp;July 2019 | &nbsp;&nbsp;Department Manager, Accounting Department, Corporate Finance & Accounting Office, NOK Corporation | &nbsp;&nbsp;3,500 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;New candidate<br>Kazushige Hayashi<br> (November 18, 1963) | &nbsp;&nbsp;April 2023 | &nbsp;&nbsp;Deputy General Manager, Corporate Finance & Accounting Office, NOK Corporation | &nbsp;&nbsp;3,500 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;New candidate<br>Kazushige Hayashi<br> (November 18, 1963) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;General Manager, Head, Internal Audit Office, NOK Corporation (incumbent) | &nbsp;&nbsp;3,500 shares |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Reasons for nomination as a candidate for Director who is an Audit & Supervisory Committee Member<br> Mr. Kazushige Hayashi has been engaged in financial and accounting services for many years at the Company and has served as the General Manager of its Internal Audit Office. This background has given him substantial knowledge in finance, accounting, and auditing. We propose that Mr. Kazushige Hayashi be newly elected as a Director who is an Audit & Supervisory Committee Member as we have concluded that he will be able to perform appropriate audit and supervision from an objective perspective. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director who is an Audit & Supervisory Committee Member<br> Mr. Kazushige Hayashi has been engaged in financial and accounting services for many years at the Company and has served as the General Manager of its Internal Audit Office. This background has given him substantial knowledge in finance, accounting, and auditing. We propose that Mr. Kazushige Hayashi be newly elected as a Director who is an Audit & Supervisory Committee Member as we have concluded that he will be able to perform appropriate audit and supervision from an objective perspective. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director who is an Audit & Supervisory Committee Member<br> Mr. Kazushige Hayashi has been engaged in financial and accounting services for many years at the Company and has served as the General Manager of its Internal Audit Office. This background has given him substantial knowledge in finance, accounting, and auditing. We propose that Mr. Kazushige Hayashi be newly elected as a Director who is an Audit & Supervisory Committee Member as we have concluded that he will be able to perform appropriate audit and supervision from an objective perspective. | &nbsp;&nbsp;Reasons for nomination as a candidate for Director who is an Audit & Supervisory Committee Member<br> Mr. Kazushige Hayashi has been engaged in financial and accounting services for many years at the Company and has served as the General Manager of its Internal Audit Office. This background has given him substantial knowledge in finance, accounting, and auditing. We propose that Mr. Kazushige Hayashi be newly elected as a Director who is an Audit & Supervisory Committee Member as we have concluded that he will be able to perform appropriate audit and supervision from an objective perspective. |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;April 1972 | &nbsp;&nbsp;Joined the Ministry of International Trade and Industry (currently the Ministry of Economy, Trade and Industry) | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 1977 | &nbsp;&nbsp;MBA, Harvard Business School, Harvard University | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 1987 | &nbsp;&nbsp;Head of Energy Efficiency Division, International Energy Agency (IEA) (in France) | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 1996 | &nbsp;&nbsp;Deputy Director-General, Trade & Economic Affairs, the Ministry of International Trade and Industry | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;February 2001 | &nbsp;&nbsp;Ambassador of Japan to the United Arab Emirates | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;September 2003 | &nbsp;&nbsp;Retired from the Ministry of Economy, Trade and Industry | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2004 | &nbsp;&nbsp;Director and Executive Officer, Nippon Light Metal Co., Ltd. | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2007 | &nbsp;&nbsp;Director and Senior Executive Officer, Nippon Light Metal Co., Ltd. | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2013 | &nbsp;&nbsp;Director and Executive Vice President, Nippon Light Metal Co., Ltd. | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;July 2015 | &nbsp;&nbsp;Director General, Japan Association for Chemical Innovation | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2016 | &nbsp;&nbsp;External Director, NOK Corporation | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member), NOK Corporation (incumbent) | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;August 2024 | &nbsp;&nbsp;Chairperson of the Nomination and Remuneration Advisory Committee, NOK Corporation (incumbent)<br>| &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Makoto Fujioka<br> (March 27, 1950) | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, Nippon Paper Industries Co., Ltd. | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, Nippon Paper Industries Co., Ltd. | &nbsp;&nbsp;9,300 shares |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> Mr. Makoto Fujioka has a wealth of experience and profound insight in industrial policy and diplomacy, as well as a proven track record of corporate management based on such expertise. We propose that Mr. Makoto Fujioka be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on its business activities from an objective, extensive, and advanced perspective. We expect him to provide advice, audit and supervision on the Company's general management, based particularly on his experience in industrial policy and corporate management. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> Mr. Makoto Fujioka has a wealth of experience and profound insight in industrial policy and diplomacy, as well as a proven track record of corporate management based on such expertise. We propose that Mr. Makoto Fujioka be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on its business activities from an objective, extensive, and advanced perspective. We expect him to provide advice, audit and supervision on the Company's general management, based particularly on his experience in industrial policy and corporate management. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> Mr. Makoto Fujioka has a wealth of experience and profound insight in industrial policy and diplomacy, as well as a proven track record of corporate management based on such expertise. We propose that Mr. Makoto Fujioka be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on its business activities from an objective, extensive, and advanced perspective. We expect him to provide advice, audit and supervision on the Company's general management, based particularly on his experience in industrial policy and corporate management. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> Mr. Makoto Fujioka has a wealth of experience and profound insight in industrial policy and diplomacy, as well as a proven track record of corporate management based on such expertise. We propose that Mr. Makoto Fujioka be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on its business activities from an objective, extensive, and advanced perspective. We expect him to provide advice, audit and supervision on the Company's general management, based particularly on his experience in industrial policy and corporate management. |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;April 1993 | &nbsp;&nbsp;Joined Apple Computer, Inc. | &nbsp;&nbsp;10,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;June 1998 | &nbsp;&nbsp;MBA, Sloan School of Management, Massachusetts Institute of Technology | &nbsp;&nbsp;10,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;October 1998 | &nbsp;&nbsp;Joined Boston Consulting Group | &nbsp;&nbsp;10,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;September 2001 | &nbsp;&nbsp;Chief Executive Officer, P&E DIRECTIONS, INC. (incumbent) | &nbsp;&nbsp;10,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;June 2022 | &nbsp;&nbsp;External Director, NOK Corporation | &nbsp;&nbsp;10,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member), NOK Corporation (incumbent) | &nbsp;&nbsp;10,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Naoki Shimada<br> (November 23, 1968) |  |  | &nbsp;&nbsp;10,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Naoki Shimada<br> (November 23, 1968) | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, Japan Business Systems, Inc.<br> External Director, RENOVA, Inc. | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, Japan Business Systems, Inc.<br> External Director, RENOVA, Inc. | &nbsp;&nbsp;10,000 shares |
| &nbsp;&nbsp;3 | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> We propose that Mr. Naoki Shimada be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on the Company's general management based on his extensive experience in corporate management as a business manager and consultant. We expect him to provide advice, audit and supervision on the Company's business development and group strategies, including the creation of new businesses, particularly from a broad perspective based on his experience as a business manager. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> We propose that Mr. Naoki Shimada be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on the Company's general management based on his extensive experience in corporate management as a business manager and consultant. We expect him to provide advice, audit and supervision on the Company's business development and group strategies, including the creation of new businesses, particularly from a broad perspective based on his experience as a business manager. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> We propose that Mr. Naoki Shimada be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on the Company's general management based on his extensive experience in corporate management as a business manager and consultant. We expect him to provide advice, audit and supervision on the Company's business development and group strategies, including the creation of new businesses, particularly from a broad perspective based on his experience as a business manager. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> We propose that Mr. Naoki Shimada be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on the Company's general management based on his extensive experience in corporate management as a business manager and consultant. We expect him to provide advice, audit and supervision on the Company's business development and group strategies, including the creation of new businesses, particularly from a broad perspective based on his experience as a business manager. |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;August 1991 | &nbsp;&nbsp;Joined Dobosha Publishing Co., Ltd. | &nbsp;&nbsp;600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;October 1998 | &nbsp;&nbsp;CEO, Mediagene Inc. (Formerly INFOBAHN Group Inc.) (incumbent) | &nbsp;&nbsp;600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;May 2023 | &nbsp;&nbsp;CEO, TNL Mediagene Inc. (formerly TNL Mediagene Japan) (incumbent) | &nbsp;&nbsp;600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member), NOK Corporation (incumbent) | &nbsp;&nbsp;600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;March 2025 | &nbsp;&nbsp;Director, INFOBAHN Inc. (incumbent)<br>| &nbsp;&nbsp;600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Motoko Imada<br> (February 26, 1967) | &nbsp;&nbsp;[Significant concurrent positions]<br> Director, TNL Mediagene | &nbsp;&nbsp;[Significant concurrent positions]<br> Director, TNL Mediagene | &nbsp;&nbsp;600 shares |
| &nbsp;&nbsp;4 | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> Ms. Motoko Imada has a wealth of experience in global corporate management in the media industry, including a track record of providing media services with a deep understanding of various audiences. We propose that Ms. Motoko Imada be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from her on the Company's management, including the Company's efforts to strengthen communication functions and towards DE&I, from an objective and extensive perspective. We expect her to provide advice, audit and supervision on the Company's management and strategic external policies, based particularly on her background. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> Ms. Motoko Imada has a wealth of experience in global corporate management in the media industry, including a track record of providing media services with a deep understanding of various audiences. We propose that Ms. Motoko Imada be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from her on the Company's management, including the Company's efforts to strengthen communication functions and towards DE&I, from an objective and extensive perspective. We expect her to provide advice, audit and supervision on the Company's management and strategic external policies, based particularly on her background. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> Ms. Motoko Imada has a wealth of experience in global corporate management in the media industry, including a track record of providing media services with a deep understanding of various audiences. We propose that Ms. Motoko Imada be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from her on the Company's management, including the Company's efforts to strengthen communication functions and towards DE&I, from an objective and extensive perspective. We expect her to provide advice, audit and supervision on the Company's management and strategic external policies, based particularly on her background. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> Ms. Motoko Imada has a wealth of experience in global corporate management in the media industry, including a track record of providing media services with a deep understanding of various audiences. We propose that Ms. Motoko Imada be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from her on the Company's management, including the Company's efforts to strengthen communication functions and towards DE&I, from an objective and extensive perspective. We expect her to provide advice, audit and supervision on the Company's management and strategic external policies, based particularly on her background. |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;No. | &nbsp;&nbsp;Name<br> (Date of Birth) | &nbsp;&nbsp;Brief Personal History, and Position and Area of Responsibility at the Company<br> (Significant Concurrent Positions) | &nbsp;&nbsp;Brief Personal History, and Position and Area of Responsibility at the Company<br> (Significant Concurrent Positions) | &nbsp;&nbsp;Number of the Company's Shares Held |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;April 2000 | &nbsp;&nbsp;Admitted to the bar in Japan | &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2004 | &nbsp;&nbsp;Outside Corporate Auditor, DMS Inc. | &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2015 | &nbsp;&nbsp;Outside Director, DMS Inc. (incumbent) | &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2016 | &nbsp;&nbsp;External Corporate Auditor, NOK Corporation | &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;April 2017 | &nbsp;&nbsp;Vice President, Dai-ichi Tokyo Bar Association | &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;July 2018 | &nbsp;&nbsp;Specially Appointed Professor, Shinshu University Research Center for Social Systems (incumbent) | &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;June 2024 | &nbsp;&nbsp;External Director (Audit & Supervisory Committee Member), NOK Corporation (incumbent) | &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;August 2024 | &nbsp;&nbsp;Visiting Associate Professor, Juntendo University School of Medicine (incumbent)<br>| &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reappointed candidate<br> Independent Director<br> Candidate for External Director<br>Atsushi Kajitani<br> (July 1, 1968) | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, DMS Inc. | &nbsp;&nbsp;[Significant concurrent positions]<br> Outside Director, DMS Inc. | &nbsp;&nbsp;3,800 shares |
| &nbsp;&nbsp;5 | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> We propose that Mr. Atsushi Kajitani be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on the Company's general management based on his extensive experience and broad insight in corporate legal affairs as an attorney. We expect him to provide advice, audit and supervision on the Company's governance and general management based particularly on his knowledge as a legal professional. Although Mr. Kajitani has not been involved in corporate management other than as an external officer, we believe that he is able to appropriately perform his duties as an External Director for the reasons stated above. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> We propose that Mr. Atsushi Kajitani be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on the Company's general management based on his extensive experience and broad insight in corporate legal affairs as an attorney. We expect him to provide advice, audit and supervision on the Company's governance and general management based particularly on his knowledge as a legal professional. Although Mr. Kajitani has not been involved in corporate management other than as an external officer, we believe that he is able to appropriately perform his duties as an External Director for the reasons stated above. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> We propose that Mr. Atsushi Kajitani be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on the Company's general management based on his extensive experience and broad insight in corporate legal affairs as an attorney. We expect him to provide advice, audit and supervision on the Company's governance and general management based particularly on his knowledge as a legal professional. Although Mr. Kajitani has not been involved in corporate management other than as an external officer, we believe that he is able to appropriately perform his duties as an External Director for the reasons stated above. | &nbsp;&nbsp;Reasons for nomination as a candidate for External Director who is an Audit & Supervisory Committee Member and overview of expected roles<br> We propose that Mr. Atsushi Kajitani be re-elected as an External Director who is an Audit & Supervisory Committee Member, in order for the Company to receive advice from him on the Company's general management based on his extensive experience and broad insight in corporate legal affairs as an attorney. We expect him to provide advice, audit and supervision on the Company's governance and general management based particularly on his knowledge as a legal professional. Although Mr. Kajitani has not been involved in corporate management other than as an external officer, we believe that he is able to appropriately perform his duties as an External Director for the reasons stated above. |

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(Note)

&nbsp;&nbsp;&nbsp;&nbsp;1. Candidate Ms. Motoko Imada also serves as the Representative Director of Mediagene Inc., a business partner
of the Company to which the Company contracts out advertisement production. However, the annual transaction value between the two companies
accounts for less than 1% of the consolidated net sales of the Company Group and of the Mediagene Inc. Group. Accordingly, there is no
special relationship between Ms. Motoko Imada and the Joint Holding Company that may affect her independence as an External Director.

&nbsp;&nbsp;&nbsp;&nbsp;2. The other candidates do not have any special relationship with or interest in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;3. With the aim of ensuring corporate officers are able to fully conduct their expected roles in the course
of the performance of duties and they are comprised of talented persons, the Company has entered into a directors and officers liability
insurance (D&O insurance) policy as provided for in Article 430-3, paragraph 1 of the Companies Act. If this item for resolution is
approved as originally proposed and each candidate assumes office as a Director, they will become insureds of such insurance. The insurance
policy covers losses that may arise from the insured's assumption of liability incurred in the course of the performance of duties
as corporate officers, etc., or receipt of claims pertaining to the pursuit of such liability. Provided, however, that there are certain
reasons for coverage exclusion that, for example, exclude losses arising from any act that the person carried out while being aware that
it violated laws and regulations. The entire amount of insurance premiums, including those for special clauses, are borne by the Company,
and there are no insurance premiums actually borne by the insureds. The deductible clause is set in the policy, whereby losses within
such deductible are not covered by the policy. The Company is considering renewing the policy with a renewal date of November 1, 2026
or having NOK Group Corporation, which is to be incorporated through the share transfer, enter into a similar directors and officers liability
insurance (D&O insurance) policy covering the Company's officers as well.

&nbsp;&nbsp;&nbsp;&nbsp;4. Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi Kajitani are candidates for External
Directors. The Company has registered each of them as an independent officer as required by the Tokyo Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;5. At the conclusion of this Annual Shareholders' Meeting, Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms.
Motoko Imada, and Mr. Atsushi Kajitani have served as External Directors of the Company for 10 years, 4 years, 2 years, and 2 years, respectively.
Mr. Atsushi Kajitani previously served as an External Auditor of the Company. Added together, he has served as an external officer of
the Company for 10 years.

&nbsp;&nbsp;&nbsp;&nbsp;6. Mr. Atsushi Kajitani serves as an Outside Director of DMS Inc., which received a cease and desist order
and a payment order for surcharge from the Japan Fair Trade Commission in March 2022 for violation of the Antimonopoly Act in connection
with a bid held by the Japan Pension Service. Although Mr. Kajitani was not aware of the relevant facts in advance, he has fulfilled his
duties by regularly making recommendations and proposals from the viewpoint of legal compliance and, after the incident was discovered,
by giving instructions for thorough investigation and prevention of recurrence at Board of Directors' meetings and on other occasions.

&nbsp;&nbsp;&nbsp;&nbsp;7. Pursuant to the provisions of Article 427, paragraph 1 of the Companies Act, the Company has entered into
an agreement with Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi Kajitani that limits their liability for damages
that may be imposed under Article 423, paragraph 1 of the same Act. The maximum amount of liability for damages under the agreement is
as prescribed by laws and regulations. If the re-election of Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi
Kajitani is approved, the Company will continue the agreement with each of them.

[Reference] Specific areas that the Company expects of the Directors (management supervision function after the Third and Fourth Items are approved (planned))

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Name | &nbsp;&nbsp;Attributes | &nbsp;&nbsp;Attributes | &nbsp;&nbsp;Corporate management | &nbsp;&nbsp;Group strategy | &nbsp;&nbsp;Business (production, sales) strategy | &nbsp;&nbsp;Technology strategy | &nbsp;&nbsp;Finance / Accounting/<br> Capital policy | &nbsp;&nbsp;New business | &nbsp;&nbsp;Compliance and risk management | &nbsp;&nbsp;Sustainability |
| &nbsp;&nbsp;Directors | &nbsp;&nbsp;Masao Tsuru | &nbsp;&nbsp;Male |  | &nbsp;&nbsp;○ | &nbsp;&nbsp;○ |  |  |  |  |  |  |
| &nbsp;&nbsp;Directors | &nbsp;&nbsp;Chikashi Takeda | &nbsp;&nbsp;Male |  | &nbsp;&nbsp;○ |  |  |  | &nbsp;&nbsp;○ |  |  |  |
| &nbsp;&nbsp;Directors | &nbsp;&nbsp;Junichi Orita | &nbsp;&nbsp;Male |  | &nbsp;&nbsp;○ |  | &nbsp;&nbsp;○ |  |  |  |  |  |
| &nbsp;&nbsp;Directors | &nbsp;&nbsp;Yuki Sato | &nbsp;&nbsp;Male |  |  |  |  | &nbsp;&nbsp;○ |  | &nbsp;&nbsp;○ |  |  |
| &nbsp;&nbsp;Directors <br> (Audit & Supervisory Committee Members) | &nbsp;&nbsp;Kazushige Hayashi | &nbsp;&nbsp;Male |  |  |  |  |  | &nbsp;&nbsp;○ |  | &nbsp;&nbsp;○ |  |
| &nbsp;&nbsp;Directors <br> (Audit & Supervisory Committee Members) | &nbsp;&nbsp;Makoto Fujioka | &nbsp;&nbsp;Male | &nbsp;&nbsp;External<br> Independent | &nbsp;&nbsp;○ |  |  |  |  |  |  | &nbsp;&nbsp;○ |
| &nbsp;&nbsp;Directors <br> (Audit & Supervisory Committee Members) | &nbsp;&nbsp;Naoki Shimada | &nbsp;&nbsp;Male | &nbsp;&nbsp;External<br> Independent | &nbsp;&nbsp;○ | &nbsp;&nbsp;○ |  |  |  |  |  |  |
| &nbsp;&nbsp;Directors <br> (Audit & Supervisory Committee Members) | &nbsp;&nbsp;Motoko Imada | &nbsp;&nbsp;Female | &nbsp;&nbsp;External<br> Independent | &nbsp;&nbsp;○ |  |  |  |  | &nbsp;&nbsp;○ |  |  |
| &nbsp;&nbsp;Directors <br> (Audit & Supervisory Committee Members) | &nbsp;&nbsp;Atsushi Kajitani | &nbsp;&nbsp;Male | &nbsp;&nbsp;External<br> Independent | &nbsp;&nbsp;○ |  |  |  |  |  | &nbsp;&nbsp;○ |  |

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(Note) The above list shows up to two areas specifically expected of each person, and does not indicate all areas of their knowledge or experience.

## Exhibit 99.2

**Exhibit 99.2**

The share transfer described in this document involves securities of a Japanese company. The share transfer is subject to disclosure requirements of Japan that are different from those of the United States. Financial information included in this document, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies.<br>It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment. You should be aware that the issuer may purchase securities otherwise than under the share transfer, such as in the open market or through privately negotiated purchases.<br>This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.<br>

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| |
|:---|
| &nbsp;&nbsp;![](image_004.jpg) |
| &nbsp;&nbsp; <br>**Business Report<br> for the 120th Term**<br> From April 1, 2025 to March 31, 2026<br>|
| NOK CORPORATION (Securities Code No. 7240) |

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To Our Shareholders

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|:---|:---|:---|:---|
| ![](image_005.jpg) | ![](image_005.jpg) |  | &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |
| Representative Director, <br>Group Chief Executive Officer | Masao Tsuru |  | &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |
|  |  |  | &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ** To Our Shareholders 1 Financial Highlights (Consolidated) 2 (Physical copies of electronically provided information sent <br> to shareholders who request them along with the Notice<br> of the 120th Annual Shareholders' Meeting) Business Report &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Current Status of the NOK Group 3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Outline of the Company 13 Consolidated Financial Statements &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheet 23 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statement of Income 24 Financial Statements &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance Sheet 25 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statement of Income 26 Independent Auditor's Audit<br> Report Concerning Consolidated Financial Statements 27 Independent Auditor's Audit<br> Report Concerning Financial Statements 29 Audit Report by the Audit & Supervisory Committee 31 Information for Shareholders &nbsp;&nbsp;&nbsp;&nbsp;The following are not included in the physical copies of electronically provided information sent to shareholders who request them, under laws and regulations and the Articles of Incorporation of the Company.<br> (i) "System for Ensuring Properness of Operations" in Business Report<br> (ii) "Consolidated Statement of Changes in Net Assets" and "Notes to Consolidated Financial Statements" in the Consolidated Financial Statements<br> (iii) "Statement of Changes in Net Assets" and "Notes to Financial Statements" in the Financial Statements<br> (iv) "(1) Content of the financial statements for the most recent fiscal year (fiscal year ended March 31, 2026)" under "4. Information on Eagle Industry" of the First Item, "Approval of a Share Transfer Plan," of the Reference Materials for the Annual Shareholders' Meeting <br>** <br>1 <br>**Financial Highlights (Consolidated)**<br> ![](image_006.jpg)<br> Note: Amounts described in Financial Highlights (Consolidated) are rounded off to the nearest described point.<br>2 <br>**<u>BUSINESS REPORT for the 120th Term</u>**<br> April 1, 2025 to March 31, 2026 **1. Current Status of the NOK Group**<br> &nbsp;&nbsp;&nbsp;&nbsp;**(1) Business Overview**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Business conditions and results**<br> For the current fiscal year, the NOK Group posted the following operating results: Net sales totaled 738,434 million yen (down 3.7% year on year); operating income was 32,990 million yen (down 11.5% year on year); ordinary income ended at 49,835 million yen (up 3.7% year on year), resulting in 46,338 million yen in profit attributable to owners of parent (up 52.8% year on year).<br>Operating income decreased due to a decline in net sales. Meanwhile, ordinary income increased, mainly owing to higher foreign exchange gains. Despite recording a loss on sale of shares of subsidiaries and associates related to the divestiture of the roll products business, profit attributable to owners of the parent increased as well due to an increase of gains on the sale of investment securities.<br>The business conditions of the NOK Group by business segment were as follows:<br>![](image_007.jpg)<br>**■ Results of the Business Activities by Business Segment**<br> **Seal business**<br> Net sales amounted to 367,397 million yen (up 1.3% year on year) and operating income was 27,860 million yen (up 6.3% year on year).<br>For the automotive applications, although the number of Japanese automobiles produced domestically in Japan declined, sales increased due to expanded sales to non-Japanese customers in China and the recovery of the automotive market in Thailand. For general industrial machinery applications, sales also increased, driven by higher demand—particularly for construction machinery in China. As a result, net sales for the segment rose overall, supported additionally by the positive effect of foreign exchange rates.<br>Although fixed costs such as personnel expenses increased, operating income increased thanks to price revision activities such as passing on selling prices, as well as improvements in variable costs due to lower raw material prices and cost-reduction measures.<br>3 <br>**Electronic Product business**<br> Net sales amounted to 345,109 million yen (down 7.0% year on year) and operating income was 3,967 million yen (down 55.6% year on year).<br>In addition to the negative impact of foreign exchange rates, net sales decreased due to a decline of component costs included in sales, as well as a decline in net sales. In terms of sales excluding the component costs by application, sales for automobile decreased, mainly because growth in sales for automotive battery applications slowed.<br>Along with the decline in net sales, operating income also decreased due to higher fixed costs, including depreciation and personnel expenses.<br>**Other businesses**<br> Net sales amounted to 25,926 million yen (down 21.8% year on year) and operating income was 1,137 million yen (down 46.6% year on year).<br>With respect to the roll products business, all shares of SYNZTEC Co., Ltd. and seven other companies were transferred as of January 30, 2026. However, the transfer is deemed to have been completed at the beginning of the fourth quarter of the consolidated accounting period, and the above net sales and operating income include the results up to the cumulative total for the third quarter of the consolidated accounting period.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Capital investment and fund procurement**<br> The NOK Group made capital investments of 48,405 million yen in total (down 7.6% from the previous fiscal year) mainly for increasing production capacities in Japan, China, and Southeast Asian countries.<br>These investments were financed by our own funds.<br>4 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(2) Issues to be Addressed by the NOK Group**<br> Uncertainties remain in regards to the future business environment of the NOK Group due to factors including heightened geopolitical risks in the Middle East and the resulting soaring energy prices and supply chain disruptions, foreign policy trends in the U.S., and financial policy trends in Japan and the U.S. In Japan, labor costs are continuing to rise due to the effects of rising wages in response to rising prices. The following are the forecasts for each business area based on this situation.<br>In the seal business, large increases in vehicle production by Japanese automobile manufacturers are not expected, and we expect increasing impacts from factors such as the increasing sales share of electric vehicles in China, and in the ASEAN region, the full-scale market entry of Chinese automobile manufacturers in the key market of Thailand. For general industrial machinery applications, while demand trends vary depending on the region and application, demand is expected to grow mainly for construction machinery applications; however, it is anticipated that significant growth will be difficult to achieve if limited to traditional business areas. While the environment surrounding our business as a whole is expected to remain difficult, we will strive to improve profitability by means such as developing products for new areas like electric vehicles, expanding sales to non-Japanese automobile manufacturers, expanding sales beyond traditional business areas such as for construction machinery and agricultural machinery applications to general industrial machinery applications, and strategic pricing activities.<br>In the electronic product business, in terms of automobile applications, while the long-term growth trajectory for the electric vehicle market has been weaker than expected, it is expected that the shift to electric vehicles will continue unchanged. Under these conditions, it is our view that the adoption of FPC for vehicle batteries that has been a particular focus of the Company is steadily expanding. Furthermore, based on the record of adoption by customers in Japan and overseas, the quality and stable supply of the Company's products have been rated highly. We expect adoption to grow further in the future, resulting in growing volume and improved profitability. Overall market growth for smartphones has stagnated due to factors including the prolonged replacement cycle by end-users. We will make effective use of current production capacity and work to improve productivity and profitability. Although we achieved profitability during the period of the Medium-Term Management Plan (April 1, 2023 to March 31, 2026), as we aim for a business structure that can produce stable profits, we will level out production by expanding into business areas such as the vehicle battery field, where seasonal demand fluctuations are relatively low.<br>In all businesses, in part due to the lack of expected significant future growth in their markets, it is important that we carry out initiatives for improving profitability such as those described above, and at the same time, that we also create new growth drivers by searching for external growth opportunities.<br>We will also make efforts related to environmental issues including decarbonization, invest in human resources as a foundation for continual growth, and make investments that ensure sustainable business.<br>In order to address these issues, the Company aims to construct a business infrastructure that can achieve continual growth and improvement in corporate value. In the Medium-Term Management Plan covering the three years from fiscal 2023 to fiscal 2025, we engaged in a basic policy of constructing a foundation for transformation, consisting of four key items: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br>Based on the continually changing business environment and the results of the Medium-Term Management Plan, the Company has formulated a new Medium-Term Management Plan (April 1, 2026 to March 31, 2029), with fiscal 2028 as the final year, to serve as a path to achieving our objectives in fiscal 2031. The basic policies and strategic goals are as follows.<br>5 <br>**■ Basic policies**<br> Implementation<br> - Execute thoroughly without hesitation<br> - Continue to challenge ambitious targets<br>**■ Strategic goals and key initiatives**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Optimization and Sophistication of Global Operating Model<br> - Establishment of the optimal management system for the Group and each business<br> - Improvement of efficiency in group indirect operations<br> - ERP implementation with an appropriate investment scale<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Completion of Profitability Improvement Measures<br> - Establishment and execution of pricing strategy in the Seal business<br> - Cultivation of new domains for growth<br> - Execution and completion of cost reduction measures<br> - Review of unprofitable and non-core businesses<br> - Reduction of indirect material costs across the Group<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Business Creation and Acquisition for Inorganic Growth<br> - Identification, acquisition, and launch of new business domains<br>In order to fully carry out the above strategic targets, we aim to construct and acquire the capabilities necessary for the organization and for individual employees.<br>At a Board of Directors meeting on November 10, 2025, it was decided to integrate management by establishing a joint holding company with Eagle Industry Co., Ltd. on October 1, 2026. At the 120th Annual Shareholders' Meeting to be held on June 25, 2026, we will submit a resolution for the establishment of a wholly-owning parent company through a share transfer.<br>Through this integration, we will combine the technologies and strengths of both companies, and aim to be a company that is chosen by greater numbers of stakeholders as a company that can provide composite sealing solutions that meet customer needs with a complete range of materials covering everything from organic materials to inorganic materials.<br>6 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(3) Financial and Operational Results**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Trends in consolidated assets and business results of the NOK Group**<br> (Millions of yen, except for per share figures)<br> **Classification** **117th term**<br> **(FY2022)**<br> **118th term**<br> **(FY2023)**<br> **119th term**<br> **(FY2024)**<br> **120th term**<br> **(FY2025)**<br> Net Sales 709,956 750,502 766,859 738,434 Operating Income 15,378 22,912 37,264 32,990 Ordinary Income 26,557 40,285 48,057 49,835 Profit Attributable to Owners of Parent 13,320 31,602 30,320 46,338 Net Income Per Share (Yen) 77.55 188.34 184.81 284.84 Total Assets 862,750 952,379 898,667 951,650 Net Assets 577,346 639,001 623,421 670,270 ●In the 117th term (FY2022), net sales increased as a result of transferring costs to prices, despite the negative impacts of the lockdown in China and the supply shortage of semiconductors and other components. Operating income was down due to factors including surging prices of raw materials and energy. ●In the 118th term (FY2023), despite the impact of a global economic slowdown such as the real estate recession in China, sales to the automotive field increased, resulting in increased revenue and profits. ●In the 119th term (FY2024), despite the effect of factors including the decline in vehicle production by Japanese automobile manufacturers in Japan and slow sales in China, we achieved higher revenue and profits by transferring costs to prices, improving variable costs, and other measures. ●As for the business performance in the 120th term (FY2025), please refer to the aforementioned (1) Business Overview. <br> Information for reference: About cross-shareholdings<br> The amount of the Company's cross-shareholdings (investment securities) listed on the balance sheet at the end of this fiscal year was 82.742 billion yen, which represents 12.3% of the aforementioned consolidated net asset value of the NOK Group.<br> In fiscal 2025, we completed the sale of 40.8% of our cross-shareholdings as of March 31, 2026, relative to the cross-shareholdings reduction target of 25% on a market value basis as of March 31, 2023.<br>7 <br>**(ii) Trends in assets and business results of the Company**<br> (Millions of yen, except for per share figures)<br> **Classification** **117th term**<br> **(FY2022)**<br> **118th term**<br> **(FY2023)**<br> **119th term**<br> **(FY2024)**<br> **120th term**<br> **(FY2025)**<br> Net Sales 218,710 230,826 226,264 227,309 Operating Income (loss) (380) 3,216 4,626 6,293 Ordinary Income 9,010 26,532 42,584 28,418 Net Income 9,052 39,679 41,629 43,973 Net Income Per Share (Yen) 52.68 236.35 253.60 270.15 Total Assets 408,551 461,165 447,294 443,292 Net Assets 258,093 285,887 290,205 291,709 ●In the 117th term (FY2022), revenue decreased as sales slowed to both the automobile industry and manufacturers of general industrial machinery. Profits also decreased in light of sluggish sales, surging raw material and energy prices, and other factors. ●In the 118th term (FY2023), revenue increased due to a recovery in sales for the automobile industry. Profits increased due to the impact of the increase in sales, an increase in dividend income from subsidiaries, recognition of gain on sales of investment securities, etc. ●In the 119th term (FY2024), revenue decreased as sales to the automobile industry slowed. Profits increased due to the decrease in fixed costs such as personnel and depreciation costs, and an increase in dividend income from subsidiaries, etc. ●In the 120th term (FY2025), revenue increased due to a recovery in sales for general industrial machinery applications. Profits increased due to recording of gain on sales of investment securities and other factors, despite a decline in ordinary income mainly resulting from a decrease in dividend income from subsidiaries. <br>8 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(4) Status of Corporate Affiliations**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Condition of major subsidiaries and affiliates**<br> &nbsp;&nbsp; &nbsp;&nbsp;**Company** &nbsp;&nbsp;**Capital stock** &nbsp;&nbsp;**Investment ratio** &nbsp;&nbsp;**Main business** &nbsp;&nbsp;Seal business &nbsp;&nbsp; Thai NOK Co., Ltd.<br> (Thailand)<br> &nbsp;&nbsp;THB1,200 million &nbsp;&nbsp;100.0% &nbsp;&nbsp;Manufacture and sale of seal products &nbsp;&nbsp;Wuxi NOK-Freudenberg Oilseal Co., Ltd. (China) &nbsp;&nbsp;RMB350,622,000 &nbsp;&nbsp; – %<br> (50.0)<br> &nbsp;&nbsp;Manufacture and sale of seal products &nbsp;&nbsp;NOK Inc. (U.S.A.) &nbsp;&nbsp;US$7,200,000 &nbsp;&nbsp;100.0% &nbsp;&nbsp;Equity investment in Freudenberg-NOK General Partnership which produces and sells seal products, etc. &nbsp;&nbsp;Unimatec Co., Ltd. &nbsp;&nbsp;¥400 million &nbsp;&nbsp;100.0% &nbsp;&nbsp;Manufacture and sale of synthetic chemical products &nbsp;&nbsp;Eagle Industry Co., Ltd. &nbsp;&nbsp;¥10,490 million &nbsp;&nbsp; 32.1%<br> (0.2)<br> &nbsp;&nbsp;Manufacture and sale of mechanical seals, etc. &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;MEKTEC CORPORATION &nbsp;&nbsp;¥5,000 million &nbsp;&nbsp;100.0% &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp; Mektec Manufacturing Corporation (Taiwan) Ltd.<br> (Taiwan)<br> &nbsp;&nbsp;NT$416,085,000 &nbsp;&nbsp; – %<br> (86.8)<br> &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp; Mektec Manufacturing Corporation (Thailand) Ltd.<br> (Thailand)<br> &nbsp;&nbsp;THB200 million &nbsp;&nbsp; – %<br> (75.0)<br> &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp; Mektec Manufacturing Corporation (Zhuhai) Ltd.<br> (China)<br> &nbsp;&nbsp;RMB431,678,000 &nbsp;&nbsp; – %<br> (97.4)<br> &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp; Mektec Manufacturing Corporation (Suzhou)<br> (China)<br> &nbsp;&nbsp;RMB791,236,000 &nbsp;&nbsp; – %<br> (96.7)<br> &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp;Other businesses &nbsp;&nbsp;NOK Klüber Co., Ltd. &nbsp;&nbsp;¥100 million &nbsp;&nbsp;51.0% &nbsp;&nbsp;Manufacture and sale of special lubricants Notes: 1.The numbers in parentheses in the column "Investment ratio" show the capital ratio which the Company's subsidiaries hold. 2.There are 80 consolidated subsidiaries and 18 equity method affiliates (including the aforementioned 11 major subsidiaries and affiliates). 3.A transfer of all shares in SYNZTEC Co., Ltd. was carried out on January 30, 2026, and SYNZTEC Co., Ltd. has been removed because it is no longer a subsidiary of the Company. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Important partners**<br> The Company maintains a partnership with Freudenberg & Co. of the Federal Republic of Germany that encompasses all business aspects including capital and technology.<br>9 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(5) Main Businesses** (as of March 31, 2026)<br> The major businesses of the NOK Group consist of production and sales of the following products.<br> &nbsp;&nbsp;**Segment** &nbsp;&nbsp;**Major products** &nbsp;&nbsp;Seal business &nbsp;&nbsp;Oil seals, O-rings, vibration-control rubber, plastic products, gaskets, synthetic chemical products, mechanical seals &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;Flexible printed circuits and precision components &nbsp;&nbsp;Other businesses &nbsp;&nbsp;Special lubricants, others <br> &nbsp;&nbsp;&nbsp;&nbsp;**(6) Major Business Offices and Factories** (as of March 31, 2026)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) The Company**<br> &nbsp;&nbsp;**Name** &nbsp;&nbsp;**Location** &nbsp;&nbsp; &nbsp;&nbsp;**Name** &nbsp;&nbsp;**Location** &nbsp;&nbsp;Head Office &nbsp;&nbsp;Minato Ward, Tokyo &nbsp;&nbsp; &nbsp;&nbsp;Osaka Branch &nbsp;&nbsp;Osaka City, Osaka &nbsp;&nbsp;Mito Branch &nbsp;&nbsp;Mito City, Ibaraki Pref. &nbsp;&nbsp; &nbsp;&nbsp;Hiroshima Branch &nbsp;&nbsp;Hiroshima City, Hiroshima Pref. &nbsp;&nbsp;Utsunomiya Branch &nbsp;&nbsp;Utsunomiya City, Tochigi Pref. &nbsp;&nbsp; &nbsp;&nbsp;Fukuoka Branch &nbsp;&nbsp;Fukuoka City, Fukuoka Pref. &nbsp;&nbsp;Kumagaya Branch &nbsp;&nbsp;Kumagaya City, Saitama Pref. &nbsp;&nbsp; &nbsp;&nbsp;Fukushima Plant &nbsp;&nbsp;Fukushima City, Fukushima Pref. &nbsp;&nbsp;Tokyo Branch &nbsp;&nbsp;Minato Ward, Tokyo &nbsp;&nbsp; &nbsp;&nbsp;Nihonmatsu Plant &nbsp;&nbsp;Nihonmatsu City, Fukushima Pref. &nbsp;&nbsp;Electric Components Branch &nbsp;&nbsp;Minato Ward, Tokyo &nbsp;&nbsp; &nbsp;&nbsp;Kita Ibaraki Plant &nbsp;&nbsp;Kita Ibaraki City, Ibaraki Pref. &nbsp;&nbsp;Kanagawa Branch &nbsp;&nbsp;Ebina City, Kanagawa Pref. &nbsp;&nbsp; &nbsp;&nbsp;Shizuoka Plant &nbsp;&nbsp;Makinohara City, Shizuoka Pref. &nbsp;&nbsp;Fuji Branch &nbsp;&nbsp;Fuji City, Shizuoka Pref. &nbsp;&nbsp; &nbsp;&nbsp;Tokai Plant &nbsp;&nbsp;Kikugawa City, Shizuoka Pref. &nbsp;&nbsp;Hamamatsu Branch &nbsp;&nbsp;Hamamatsu City, Shizuoka Pref. &nbsp;&nbsp; &nbsp;&nbsp;Tottori Plant &nbsp;&nbsp;Saihaku-gun, Tottori Pref. &nbsp;&nbsp;Anjo Branch &nbsp;&nbsp;Anjo City, Aichi Pref. &nbsp;&nbsp; &nbsp;&nbsp;Kumamoto Plant &nbsp;&nbsp;Aso City, Kumamoto Pref. &nbsp;&nbsp;Nagoya Branch &nbsp;&nbsp;Nagoya City, Aichi Pref. &nbsp;&nbsp; &nbsp;&nbsp;Shonan R&D Center &nbsp;&nbsp;Fujisawa City, Kanagawa Pref. Note:From April 1, 2026, the Nagoya Branch was merged with the Anjo Branch. <br>10 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Subsidiaries**<br> &nbsp;&nbsp; &nbsp;&nbsp;**Company** &nbsp;&nbsp;**Business place** &nbsp;&nbsp;**Location** &nbsp;&nbsp;Seal business &nbsp;&nbsp;Unimatec Co., Ltd. &nbsp;&nbsp;Kita Ibaraki Plant &nbsp;&nbsp;Kita Ibaraki City, Ibaraki Pref. &nbsp;&nbsp;NOK Elastomers Processing Co., Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Kama City, Fukuoka Pref. &nbsp;&nbsp;NOK FUGAKU ENGINEERING Co., Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Kikugawa City, Shizuoka Pref. &nbsp;&nbsp;Saga NOK Corporation &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Ureshino City, Saga Pref. &nbsp;&nbsp;Thai NOK Co., Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Chonburi, Thailand &nbsp;&nbsp;Wuxi NOK-Freudenberg Oilseal Co., Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Wuxi City, Jiangsu, China &nbsp;&nbsp;NOK Asia Co., Pte. Ltd. &nbsp;&nbsp;Head office &nbsp;&nbsp;Singapore &nbsp;&nbsp;NOK Industrial Sales Corporation &nbsp;&nbsp;Head office and sales office &nbsp;&nbsp;Shinjuku Ward, Tokyo &nbsp;&nbsp;NOK-Freudenberg Group Sales (China) Co., Ltd. &nbsp;&nbsp;Head office and sales office &nbsp;&nbsp;Shanghai City, China &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;MEKTEC CORPORATION &nbsp;&nbsp; Head office<br> Ushiku Plant<br> &nbsp;&nbsp; Minato Ward, Tokyo<br> Ushiku City, Ibaraki Pref.<br> Mektec Manufacturing Corporation (Taiwan) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Kaohsiung City, Taiwan &nbsp;&nbsp;Mektec Manufacturing Corporation (Thailand) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Ayutthaya, Thailand &nbsp;&nbsp;Mektec Manufacturing Corporation (Zhuhai) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Zhuhai City, Guangdong, China &nbsp;&nbsp;Mektec Manufacturing Corporation (Suzhou) &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Suzhou City, Jiangsu, China &nbsp;&nbsp;Mektec Manufacturing Corporation (Vietnam) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Hung Yen Province, Vietnam &nbsp;&nbsp;Mektec Precision Component (Thailand) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Ayutthaya, Thailand &nbsp;&nbsp;Mektec Corporation (Hong Kong) Ltd. &nbsp;&nbsp;Head office and sales office &nbsp;&nbsp;Hong Kong, China &nbsp;&nbsp;Other businesses &nbsp;&nbsp;NOK Klüber Co., Ltd. &nbsp;&nbsp;Kita Ibaraki Plant &nbsp;&nbsp;Kita Ibaraki City, Ibaraki Pref. Notes: 1.A transfer of all shares in SYNZTEC Co., Ltd. was carried out on January 30, 2026, and SYNZTEC Co., Ltd. has been removed because it is no longer a subsidiary of the Company. 2.On July 1, 2025, Kansai NOK Hanbai Co., Ltd. carried out an absorption-type merger with Kanto NOK Hanbai Co., Ltd. as the surviving company, and on the same date changed its trade name to NOK Industrial Sales Corporation. 3.On April 1, 2026, Saga NOK Corporation changed its trade name to NOK Kyushu Corporation and relocated its head office to Aso City, Kumamoto Prefecture. Additionally, Mektec Precision Component (Thailand) Ltd. changed its trade name to NOK Precision Component (Thailand) Ltd. <br>11 <br>**(7) Employee Status** (as of March 31, 2026)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Employment of the NOK Group**<br> &nbsp;&nbsp;**Business segment** &nbsp;&nbsp;**Number of employees** &nbsp;&nbsp;**Change from the end of previous term** &nbsp;&nbsp;Seal business &nbsp;&nbsp;20,093 (1553) &nbsp;&nbsp;-111 (-77) &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;16,260 (622) &nbsp;&nbsp;+549 (+154) &nbsp;&nbsp;Other businesses &nbsp;&nbsp;302 (164) &nbsp;&nbsp;-1,741 (-149) &nbsp;&nbsp;Total &nbsp;&nbsp;36,655 (2339) &nbsp;&nbsp;-1,303 (-72) Notes: 1.The number of employees refers to the number of people employed by the NOK Group, excluding part-time workers and temporary workers. Figures in parentheses are the average number of part-time workers and temporary workers on an annual basis. 2.On January 30, 2026, all shares in SYNZTEC Co., Ltd. were transferred, and because it is no longer a subsidiary of the Company, the number of employees in "Other businesses" decreased largely. <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Employment of the Company**<br> &nbsp;&nbsp;**Business segment** &nbsp;&nbsp;**Number of employees** &nbsp;&nbsp;**Change from the end of previous term** &nbsp;&nbsp;Seal business &nbsp;&nbsp;3,076 (407) &nbsp;&nbsp;-70 (+4) &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;59 (7) &nbsp;&nbsp;-1 (±0) &nbsp;&nbsp;Other businesses &nbsp;&nbsp;18 (4) &nbsp;&nbsp;-27 (-3) &nbsp;&nbsp;Total &nbsp;&nbsp;3,153 (418) &nbsp;&nbsp;-98 (+1) <br> &nbsp;&nbsp;**Average age** &nbsp;&nbsp;**Average length of service** &nbsp;&nbsp;42.3 years old &nbsp;&nbsp;19.3 years Note:The number of employees refers to the number of people employed by the Company, excluding part-time workers and temporary workers. Figures in parentheses are the average number of part-time workers and temporary workers on an annual basis. <br> **(8) Major Lenders to the Company (as of March 31, 2026)**<br>&nbsp;&nbsp;**Lenders** &nbsp;&nbsp; **Borrowings**<br> **(Millions of yen)**<br> &nbsp;&nbsp;Sumitomo Mitsui Banking Corp. &nbsp;&nbsp;33,095 &nbsp;&nbsp;Mizuho Bank, Ltd. &nbsp;&nbsp;18,945 &nbsp;&nbsp;MUFG, Bank, Ltd. &nbsp;&nbsp;7,891 &nbsp;&nbsp;The Dai-ichi Life Insurance Company, Ltd. &nbsp;&nbsp;553 &nbsp;&nbsp;Sumitomo Mitsui Trust Bank, Ltd. &nbsp;&nbsp;524 <br>12 <br>**2. Outline of the Company**<br> &nbsp;&nbsp;&nbsp;&nbsp;**(1) Status of Stock** (as of March 31, 2026)<br>&nbsp;&nbsp;&nbsp;&nbsp;**(i) Total number of shares authorized to be issued:** &nbsp;&nbsp;**600,000,000 shares** &nbsp;&nbsp;&nbsp;&nbsp;**(ii) Total number of shares issued:** &nbsp;&nbsp;**160,903,090 shares** &nbsp;&nbsp;&nbsp;&nbsp;**(iii) Number of shareholders:** &nbsp;&nbsp; **16,984**<br> **(an increase of 2,561 year on year)**<br> &nbsp;&nbsp;&nbsp;&nbsp;**(iv) Major shareholders**<br> &nbsp;&nbsp;**Shareholder** &nbsp;&nbsp; **Number of**<br> **shares held**<br> **(thousands)**<br> &nbsp;&nbsp;**Ratio of shares**<br> **held (%)**<br> &nbsp;&nbsp;Freudenberg SE &nbsp;&nbsp;43,457 &nbsp;&nbsp;27.01 &nbsp;&nbsp;The Master Trust Bank of Japan, Ltd. (Trust account) &nbsp;&nbsp;13,274 &nbsp;&nbsp;8.25 &nbsp;&nbsp;Seiwa Jisho Co., Ltd. &nbsp;&nbsp;8,773 &nbsp;&nbsp;5.45 &nbsp;&nbsp;The Dai-ichi Life Insurance Company, Ltd. &nbsp;&nbsp;8,000 &nbsp;&nbsp;4.97 &nbsp;&nbsp;Custody Bank of Japan, Ltd. (Trust account) &nbsp;&nbsp;7,184 &nbsp;&nbsp;4.47 &nbsp;&nbsp;NOK Stock Ownership Association &nbsp;&nbsp;3,880 &nbsp;&nbsp;2.41 &nbsp;&nbsp;Sumitomo Mitsui Banking Corp. &nbsp;&nbsp;3,203 &nbsp;&nbsp;1.99 &nbsp;&nbsp;SMBC Trust Bank Ltd. (Sumitomo Mitsui Banking Corporation retirement benefit trust account) &nbsp;&nbsp;3,000 &nbsp;&nbsp;1.86 &nbsp;&nbsp;STATE STREET BANK AND TRUST COMPANY 505001 &nbsp;&nbsp;2,880 &nbsp;&nbsp;1.79 &nbsp;&nbsp;Sompo Japan Insurance Inc. &nbsp;&nbsp;2,125 &nbsp;&nbsp;1.32 Note:For the basis of the calculation of "ratio of shares held" above, the Company's treasury stock (233 shares) is excluded from the total number of shares issued. The Company's treasury stock does not include 1,583,307 of the Company's shares held in the Board Incentive Plan (BIP) Trust or 383,100 of the Company's shares held in the Employee Stock Ownership Plan (ESOP). ![](image_008.jpg) <br>13 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v) State of shares granted to Board Members of the Company as compensation for performance of duties during this fiscal year**<br> No shares were granted to Board Members of the Company as compensation for performance of duties during this fiscal year. Details about remuneration based on the Company's shares are provided in (2) Board Members of the Company below.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi) Other important matters related to stock**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Retirement of treasury stock**<br> Based on a resolution of a Board of Directors meeting held on November 10, 2025, treasury stock was retired as shown below.<br> &nbsp;&nbsp;&nbsp;&nbsp;Type of shares retired &nbsp;&nbsp;Common shares of the Company &nbsp;&nbsp;&nbsp;&nbsp;Number of shares retired &nbsp;&nbsp; 7,435,847 shares<br> (Percentage of all issued shares<br> prior to retirement: 4.29%)<br> &nbsp;&nbsp;&nbsp;&nbsp;Number of issued shares following retirement &nbsp;&nbsp; 165,702,690 shares<br> (including treasury stock)<br> &nbsp;&nbsp;&nbsp;&nbsp;Retirement date &nbsp;&nbsp;November 28, 2025 <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Retirement of treasury stock**<br> Based on a resolution of a Board of Directors meeting held on February 5, 2026, treasury stock was retired as shown below.<br> &nbsp;&nbsp;&nbsp;&nbsp;Type of shares retired &nbsp;&nbsp;Common shares of the Company &nbsp;&nbsp;&nbsp;&nbsp;Number of shares retired &nbsp;&nbsp; 4,799,600 shares<br> (Percentage of all issued shares prior to retirement: 2.90%)<br> &nbsp;&nbsp;&nbsp;&nbsp;Number of issued shares following retirement &nbsp;&nbsp; 160,903,090 shares<br> (including treasury stock)<br> &nbsp;&nbsp;&nbsp;&nbsp;Retirement date &nbsp;&nbsp;February 27, 2026 <br>14 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(2) Board Members of the Company**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Directors** (as of March 31, 2026)<br> &nbsp;&nbsp;**Position** &nbsp;&nbsp;**Name** &nbsp;&nbsp;**Positions, responsibilities or significant concurrent positions** &nbsp;&nbsp;Director, Chief Executive Officer &nbsp;&nbsp;Masao Tsuru &nbsp;&nbsp;Group Chief Executive Officer &nbsp;&nbsp;Director, Senior Executive Officer &nbsp;&nbsp;Chikashi Takeda &nbsp;&nbsp;Group Chief Financial Officer &nbsp;&nbsp;Director, Senior Executive Officer &nbsp;&nbsp;Akira Watanabe &nbsp;&nbsp;Special Projects &nbsp;&nbsp;Director, Senior Executive Officer &nbsp;&nbsp;Junichi Orita &nbsp;&nbsp;Sealing Solution Chief Executive Officer &nbsp;&nbsp;Director, Senior Executive Officer &nbsp;&nbsp;Yuki Sato &nbsp;&nbsp;Group Chief Technology Officer, Head, NOK Group R&D &nbsp;&nbsp;Director (Full-time Audit & Supervisory Committee Member) &nbsp;&nbsp;Hideki Watanabe &nbsp;&nbsp;Chairperson of the Audit & Supervisory Committee &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Makoto Fujioka &nbsp;&nbsp;Chairperson of the Nomination and Remuneration Advisory Committee &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Naoki Shimada &nbsp;&nbsp;CEO, P&E Directions, Inc. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Motoko Imada &nbsp;&nbsp;CEO, Mediagene Inc. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Atsushi Kajitani &nbsp;&nbsp;Lawyer Notes: 1.Mr. Masao Tsuru is the Representative Director. 2.Mr. Chikashi Takeda was newly elected and assumed the position of Director who is not an Audit & Supervisory Committee Member at the 119th Annual Shareholders' Meeting held on June 26, 2025. 3.Director positions and responsibilities changed as follows on June 26, 2025. &nbsp;&nbsp;**Name** &nbsp;&nbsp;**New Position** &nbsp;&nbsp;**Former Position** &nbsp;&nbsp;Chikashi Takeda &nbsp;&nbsp;Director, Senior Executive Officer,<br> Group Chief Financial Officer &nbsp;&nbsp;Senior Executive Officer,<br> Financial Strategy &nbsp;&nbsp;Akira Watanabe &nbsp;&nbsp;Director, Senior Executive Officer<br> Special Projects &nbsp;&nbsp;Director, Senior Executive Officer,<br> Group Chief Financial Officer 4.Directors (Audit & Supervisory Committee Members) Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi Kajitani serve as External Directors. 5.The Company has submitted notification to the Tokyo Stock Exchange that each External Director has been designated as an independent director as stipulated in the regulations of the aforementioned exchange. 6.To improve the effectiveness of audits while strengthening audit and supervisory functions through enhanced information gathering and full coordination with the internal audit department and other divisions, we have appointed Mr. Hideki Watanabe as full-time Audit & Supervisory Committee Member. 7.Director (Audit & Supervisory Committee Member) Mr. Hideki Watanabe has work experience in finance & accounting division and has considerable expertise in finance and accounting. 8.The Company has entered into a directors and officers liability insurance (D&O insurance) policy as provided for in Article 430-3, paragraph 1 of the Companies Act, in which the insured persons are the Directors, Corporate Auditors and Operating Officers of the Company and its subsidiaries (for overseas subsidiaries, the insured persons are limited to those seconded from Japan). The entire amount of insurance premiums, including those for special clauses, are borne by the Company, and there are no insurance premiums actually borne by the insureds. The insurance policy covers losses that may arise from the insured's assumption of liability incurred in the course of the performance of duties as Directors, Corporate Auditors, etc., or receipt of claims pertaining to the pursuit of such liability. Provided, however, that there are certain reasons for coverage exclusion that, for example, exclude losses arising from any act that the person carried out while being aware that it violated laws and regulations. Also, the deductible clause is set in the policy, whereby losses within such deductible are not covered by the policy. 9.In addition to the above, significant concurrent positions held by Directors are as follows. <br> 15 <br>&nbsp;&nbsp;**Name** &nbsp;&nbsp;**Significant concurrent positions** &nbsp;&nbsp;Masao Tsuru &nbsp;&nbsp; Representative Director, Chairman, MEKTEC CORPORATION<br> Representative Director, Chairman, NOK Klüber Co., Ltd.<br> Representative Director, Chairman, Unimatec Co., Ltd.<br> Vice Chairman & Director, NOK-Freudenberg Singapore Pte. Ltd.<br> Representative Director, Seiwa Jisho Co., Ltd.<br> &nbsp;&nbsp;Junichi Orita &nbsp;&nbsp; Chairman & Director, Wuxi NOK-Freudenberg Oilseal Co., Ltd.<br> Chairman & Director, Changchun NOK-Freudenberg Oilseal Co., Ltd.<br> Chairman & Director, Taicang NOK-Freudenberg Sealing Products Co., Ltd.<br> &nbsp;&nbsp;Makoto Fujioka &nbsp;&nbsp;Outside Director, Nippon Paper Industries Co., Ltd. &nbsp;&nbsp;Naoki Shimada &nbsp;&nbsp; Outside Director, Japan Business Systems, Inc.<br> External Director, RENOVA, Inc.<br> &nbsp;&nbsp;Motoko Imada &nbsp;&nbsp;Director, TNL Mediagene &nbsp;&nbsp;Atsushi Kajitani &nbsp;&nbsp;Outside Director, DMS Inc. <br>16 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Matters concerning remuneration, etc. to Directors**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Policies on remuneration to Directors**<br> As described below, the Company has established a policy for deciding the contents of remuneration, etc. for Directors, and based on this policy, within the range of the total amount decided by the Annual Shareholders' Meeting, remuneration for Directors who are not Audit & Supervisory Committee Members is decided by the Board of Directors, while remuneration for Directors who are Audit & Supervisory Committee Members is decided by a meeting of the Directors who are Audit & Supervisory Committee Members.<br> The Company has established the Nomination and Remuneration Advisory Committee as an advisory body to the Board of Directors for the purpose of addressing important management issues, including enhancement of objectivity and transparency in matters related to nomination and remuneration of corporate officers. It provides periodical confirmation on particularly important matters such as nomination of corporate officers and remuneration, etc. of Directors in addition to providing the Board of Directors with appropriate advice. The Nomination and Remuneration Advisory Committee is a committee body whose chairperson and primary constituent members are External Directors. It provides confirmation and advice relating to important management issues such as nomination and remuneration.<br> The Company's policies on remuneration to Directors are as follows:<br> ●Methods for determining policies The policies on remuneration to Directors who are not Audit & Supervisory Committee Members are determined at a meeting of the Board of Directors based on the advice of the Nomination and Remuneration Advisory Committee. The policies on remuneration to Directors who are Audit & Supervisory Committee Members are decided by a meeting of the Directors who are Audit & Supervisory Committee Members.<br> ●Basic policies In order to improve the medium- and long-term corporate value of the NOK Group and increase stakeholder satisfaction, we believe it is necessary to promote the motivation to achieve targets among management, including the Directors of core companies in the NOK Group, through their remuneration. For this purpose, for the management of core companies in the NOK Group, we have introduced share-based remuneration that varies according to the level of KPI achievement, which is a priority implementation measure in the Medium-Term Management Plan of the NOK Group. Together with monetary remuneration that varies depending on the level of achievement of performance targets in a single fiscal year, this is intended to improve medium- and long-term corporate value and increase stakeholder satisfaction.<br> ●Policies for determining amounts or calculation methods for individual remuneration, etc. Remuneration to Directors who are not Audit & Supervisory Committee Members consists of a fixed remuneration portion, a remuneration portion for short-term expected achievements and a remuneration portion for long-term expected achievements, with consideration given to Directors' responsibilities to improve business results each fiscal year and to increase the corporate value from a medium- to long-term perspective. The Company classifies the remuneration in three types: (1) basic remuneration (monetary), (2) short-term performance-linked remuneration (monetary), and (3) medium- to long-term performance-linked remuneration (shares). When the remunerations for short-term and long-term expected individual achievements are the standard amounts, levels are established in the total amount of remuneration using ratios within the range of approximately 1 to 1.9 according to the individual's official responsibilities.<br> On the other hand, because Directors who are Audit & Supervisory Committee Members are responsible for audits and supervision of the conduct of official duties throughout the NOK Group, based on their positions, they receive only basic remuneration (monetary) according to their roles.<br> In addition, with respect to the payment of remuneration, the remuneration may be temporarily reduced or not paid in case of a sudden deterioration in business performance or a situation that damages corporate value.<br> 17 <br>●Policies for determining the components of performance-linked remuneration, etc.-related performance indicators, etc., and calculation methods of amounts and/or numbers therein In accordance with the bonus provisions and share delivery provisions approved by the Board of Directors, performance-linked remuneration is paid within a range from 0% to 200% according to the level of achievement of the evaluation items.<br> The evaluation indicators related to short-term performance-linked remuneration utilize financial indicators aimed at achieving both expansion of business scale and ensuring profit levels (net sales and operating income) and individual evaluations which appropriately apply individual results. The amount to be paid is decided with consideration for other matters that may have an impact on business performance (natural disasters, extraordinary income and loss, etc.). The evaluation weighting of each indicator is [sales: operating income: individual evaluation] = [15%:35%:50%] ([30%:70%:0%] for the President and Representative Director). In order to ensure objectivity and transparency, target settings and evaluations for individual evaluations are decided by the Board of Directors based on a report from the Nomination and Remuneration Advisory Committee.<br> For indicators related to medium- to long-term performance-linked remuneration, for reasons of increasing the overall profitability of the NOK Group and also carrying out management with consideration for ESG, ROA is used as the financial indicator and the FTSE Russell's ESG Ratings are used as the non-financial indicator. The evaluation weighting of these indicators is [90%:10%].<br> ●Policies for determining the details of non-monetary remuneration, etc., and calculation methods of amounts and/or numbers therein Regarding the medium- to long-term performance-linked remuneration, the Company utilizes a Board Incentive Plan (BIP) trust scheme in order to increase the motivation of Directors to contribute to improving business results and increasing corporate value of the NOK Group over the medium to long term. For the eligible Directors (excluding Directors who are Audit & Supervisory Committee Members, External Directors, and those who are non-residents of Japan), and Operating Officers (excluding those who are non-residents of Japan), this plan delivers or grants the number of the Company's shares and the amount of money equivalent to the converted value of the Company's shares (the "Company's Shares, etc.") corresponding to the number of points calculated according to the position and time in office, the level of achievement of medium-term targets, etc.<br> ●Policies for determining the proportion (ratio) of amounts for individual remuneration, etc. for each type In consideration for the fact that the Company manufactures and sells components for automobiles, electronic equipment, and other products, and performance is highly susceptible to trends in the industry, short-term performance-linked remuneration and medium- to long-term performance-linked remuneration of Directors have been set at 20% and 20% of total remuneration, respectively.<br> ●Policies for determining the timing and conditions for providing remuneration, etc. For the basic remuneration, the monthly amount for one year starting in the month following the annual shareholders' meeting is determined at a meeting of the Board of Directors that is held after the annual shareholders' meeting, and a fixed amount is paid on a certain date every month. For the short-term performance-linked remuneration, the amount is determined at a meeting of the Board of Directors in line with "Policies for determining the components of performance-linked remuneration, etc.-related performance indicators, etc., and calculation methods of amounts and/or numbers therein" above according to the year-end financial results, and is paid prior to the annual shareholders' meeting for the settlement of accounts. <br> 18 <br>For the medium- to long-term performance-linked remuneration, fixed points calculated according to the position and time in office and performance-linked points for the purpose of increasing the incentives for achieving the targets in the Medium-Term Management Plan, etc. are granted at a certain time each year. In principle, when the Medium-Term Management Plan ends, the Company's Shares, etc. corresponding to the accumulated number of fixed points and the Company's Shares, etc. corresponding to the number calculated by multiplying the accumulated number of performance-linked points by the performance-linked coefficient according to the level of achievement of the medium-term targets are delivered or provided.<br> ●Methods for determining the details of individual remuneration, etc. The amounts of remuneration, etc. for individual Directors who are not Audit & Supervisory Committee Members or the calculation methods for those amounts are determined at a meeting of the Board of Directors when the proposal regarding corporate officer remuneration is presented to the Board of Directors by the Director and Chief Executive Officer, who serves as chairperson of the Board of Directors, based on advice from the Nomination and Remuneration Advisory Committee.<br> The amounts of remuneration, etc. for Directors who are Audit & Supervisory Committee Members are decided by a meeting of the Directors who are Audit & Supervisory Committee Members.<br> For the Directors' individual remuneration, etc., for the current fiscal year, the Board of Directors has confirmed that the method for determining the details of remuneration, etc., and the details of determined remuneration, etc., are consistent with the determination policies resolved by the Board of Directors and the advice given by the Nomination and Remuneration Advisory Committee is respected, determining such remuneration, etc., are in accordance with the said determination policies.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Matters concerning resolution of the Annual Shareholders' Meeting related to remuneration, etc., to Directors**<br> For remuneration to the Company's Directors, it was resolved that the maximum amount of remuneration, etc., to the Directors who are not Audit & Supervisory Committee Members was 450 million yen per year (including a maximum of 20 million yen per year for External Directors and excluding employee salaries) and the maximum amount of remuneration, etc. to the Directors who are Audit & Supervisory Committee Members was 90 million yen per year at the 118th Annual Shareholders' Meeting held on June 26, 2024. The number of Directors who are not Audit & Supervisory Committee Members at the end of such shareholders' meeting was four (4) (including zero (0) External Directors) and that of Directors who are Audit & Supervisory Committee Members was five (5) (including four (4) External Directors).<br> Additionally, the 118th Annual Shareholders' Meeting held on June 26, 2024 passed a resolution to provide additional performance-linked remuneration based on the Company's shares to Directors, etc. (excluding Directors who are Audit & Supervisory Committee Members, External Directors, and those who are non-residents of Japan), with upper limits of 345 million yen per fiscal year contributed by the Company to a trust and 320,000 shares granted by the Company per fiscal year. The number of eligible Directors at the conclusion of that annual shareholders' meeting was four (4).<br>19 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Total sum of remuneration, etc. paid during the current fiscal year**<br> &nbsp;&nbsp;**Classification** &nbsp;&nbsp;**Total sum of remuneration, etc. (Millions of yen)** &nbsp;&nbsp;**Total sum of remuneration, etc. by type<br> (Millions of yen)** &nbsp;&nbsp;**Number of Directors and Corporate Auditors who receive remuneration (persons)** &nbsp;&nbsp;**Basic remuneration (monetary)** &nbsp;&nbsp;**Performance-linked remuneration** &nbsp;&nbsp;**Short-term (monetary)** &nbsp;&nbsp;**Medium- and long-term (shares, etc.)** &nbsp;&nbsp; Directors (excluding Audit & Supervisory Committee Members)<br> (External Directors among the above)<br> &nbsp;&nbsp; 370<br> (–)<br> &nbsp;&nbsp; 217<br> (–)<br> &nbsp;&nbsp; 80<br> (–)<br> &nbsp;&nbsp; 72<br> (–)<br> &nbsp;&nbsp; 5<br> (–)<br> &nbsp;&nbsp; Directors (Audit & Supervisory Committee Members)<br> (External Directors among the above)<br> &nbsp;&nbsp; 65<br> (40)<br> &nbsp;&nbsp; 65<br> (40)<br> &nbsp;&nbsp; –<br> (–)<br> &nbsp;&nbsp; –<br> (–)<br> &nbsp;&nbsp; 5<br> (4)<br> &nbsp;&nbsp; Total<br> (External officers among the above)<br> &nbsp;&nbsp; 435<br> (40)<br> &nbsp;&nbsp; 282<br> (40)<br> &nbsp;&nbsp; 80<br> (–)<br> &nbsp;&nbsp; 72<br> (–)<br> &nbsp;&nbsp; 10<br> (4)<br> Note:Details about the provision of shares and other medium- to long-term performance-linked remuneration during this fiscal year are provided in (1) Status of Stock above. The total amount of medium- to long-term performance-linked remuneration includes the amount of recorded expenses pertaining to the number of shares and other points granted during the fiscal year to the BIP trust; it is non-monetary remuneration. <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii) Summary of limited liability contract**<br> Under the provisions of Article 427, Paragraph 1 of the Companies Act, the Company entered into a contract with each External Director so as to limit their liability for damage as provided for in Article 423, Paragraph 1 of the Companies Act. The limit of liability for damage under this contract is the amount set forth by the laws and regulations.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv) Matters concerning external officers**<br> **(a)** **Relationships between the Company and firms at which directors hold significant concurrent positions** Mediagene Inc., where Director (Audit & Supervisory Committee Member) Ms. Motoko Imada holds a concurrent position, is a business partner of the Company, including for outsourcing advertising production. However, the annual transaction amounts account for less than 1% of the consolidated net sales of the Company and of Mediagene Inc. and its group companies, and there is no special relationship that would affect the independence of the External Director.<br> There is no relationship requiring disclosure between the Company and any other companies in which the other External Directors hold concurrent positions.<br>20 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Major activities during the term**<br> &nbsp;&nbsp;**Position** &nbsp;&nbsp;**Name** &nbsp;&nbsp;**Major activities** &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Makoto Fujioka &nbsp;&nbsp;Has attended 17 out of 17 Board of Directors meetings and 12 out of 12 Audit & Supervisory Committee meetings held during the term, where he made necessary remarks on Items for Resolution. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Naoki Shimada &nbsp;&nbsp;Has attended 17 out of 17 Board of Directors meetings and 12 out of 12 Audit & Supervisory Committee meetings held during the term, where he made necessary remarks on Items for Resolution. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Motoko Imada &nbsp;&nbsp;Has attended 17 out of 17 Board of Directors meetings and 12 out of 12 Audit & Supervisory Committee meetings held during the term, where she made necessary remarks on Items for Resolution. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Atsushi Kajitani &nbsp;&nbsp;Has attended 17 out of 17 Board of Directors meetings and 12 out of 12 Audit & Supervisory Committee meetings held during the term, where she made necessary remarks on Items for Resolution. Note:In addition to the number of Board of Directors meetings in the table above, there was one (1) written resolution considered to have passed at a Board of Directors meeting under Article 370 of the Companies Act and the Articles of Incorporation of the Company. <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Overview of the job duties performed in connection with the roles expected for External Directors**<br> At the Board of Directors meetings, Mr. Makoto Fujioka, a Director (Audit & Supervisory Committee Member), actively expresses his opinions focusing on matters related to judgment for management strategies, corporate compliance, etc., Mr. Naoki Shimada, a Director (Audit & Supervisory Committee Member), does so on the overall management of the Company from his extensive experience in corporate management, Ms. Motoko Imada, a Director (Audit & Supervisory Committee Member), does so from the perspective that includes strategic external policies and DE&I initiatives based on her experience in global corporate management, and Mr. Atsushi Kajitani, a Director (Audit & Supervisory Committee Member), does so based on his extensive experience and wide-ranging knowledge in corporate legal affairs as a lawyer. Thus, they have performed their roles in a proper manner to ensure validity and appropriateness of decision making.<br> Furthermore, as members of the Nomination and Remuneration Advisory Committee, which is an advisory body to the Board of Directors handling matters related to nomination of and remuneration to the corporate officers, all of the above persons attended five (5) out of five (5) meetings held during the current fiscal year, and have carried out their supervisory functions in the course of selection of candidates for the Company's corporate officers, as well as determination of remuneration, etc. to the corporate officers, from an objective and neutral standpoint. The committee chairperson is Mr. Makoto Fujioka.<br>21 <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) **Independent Auditor**<br> **(i)** **Name:** Nihombashi Corporation Certified Public Accountants **(ii)** **Amount of remuneration** (Millions of yen)<br> &nbsp;&nbsp; &nbsp;&nbsp;**Amount of payment** &nbsp;&nbsp;Amount to be paid by the Company as remuneration for duties stipulated in Article 2, Paragraph 1 of the Certified Public Accountants Act &nbsp;&nbsp;46 &nbsp;&nbsp;Amount to be paid by the Company and its subsidiaries to the Independent Auditor as financial benefit, such as monetary reward, etc. &nbsp;&nbsp;79 Notes: 1.In the audit contracts between the Company and its Independent Auditor, the fees for audits conducted under the Companies Act and under the Financial Instruments and Exchange Act are not clearly differentiated. As they cannot be effectively separated, the accounting audit fees for duties stipulated in Article 2, Paragraph 1 of the Certified Public Accountants Act for the year under review show the total. 2.Among the Company's major subsidiaries, those located outside Japan are audited by either certified public accountants not employed by Nihombashi Corporation Certified Public Accountants or audit firms other than said corporation. 3.In accordance with the Practical Guidelines for Cooperation with Independent Auditors published by the Japan Audit & Supervisory Board Members Association, the Audit & Supervisory Committee checked on and examined the audit plans of the Independent Auditor, the status of implementation of audits and the basis for calculation of the remuneration estimate, etc. and consented to the remuneration, etc. of the Independent Auditor. <br> **(iii)** **Policy concerning decision regarding dismissal and non-reappointment on Independent Auditor** Where there is anything that obstructs the fulfillment of Independent Auditor's duties, or where the Audit & Supervisory Committee considers it necessary, the Audit & Supervisory Committee will decide details of a proposal on the dismissal or non-reappointment of the Independent Auditor to be presented to a shareholders' meeting.<br> The Audit & Supervisory Committee will dismiss the Independent Auditor with the unanimous consent of all Audit & Supervisory Committee Members in cases where the Independent Auditor is deemed as having fallen under the provisions of each item of Article 340, Paragraph 1 of the Companies Act. In such cases, one Audit & Supervisory Committee Member appointed by the Audit & Supervisory Committee will report the execution of dismissal and the reasons at the first shareholders' meeting following the dismissal.<br>"System for Ensuring Properness of Operations" is not included in the physical copies of electronically provided information sent to shareholders who request them, under laws and regulations and the Articles of Incorporation of the Company.<br>All amounts are rounded down to the nearest million yen, and the number of shares is rounded down to the nearest 1,000 shares. Percentages are rounded to the nearest whole unit.<br>22 <br>**<u>CONSOLIDATED BALANCE SHEET</u>**<br> (As of March 31, 2026)<br> (Millions of yen)<br> &nbsp;&nbsp;**Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Reference)**<br> &nbsp;&nbsp;**Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Reference)**<br> &nbsp;&nbsp;**<u>ASSETS</u>** &nbsp;&nbsp;**951,650** &nbsp;&nbsp;**898,667** &nbsp;&nbsp;**<u>LIABILITIES</u>** &nbsp;&nbsp;**281,379** &nbsp;&nbsp;**275,245** &nbsp;&nbsp;**CURRENT ASSETS** &nbsp;&nbsp;**450,514** &nbsp;&nbsp;**420,723** &nbsp;&nbsp;**CURRENT LIABILITIES** &nbsp;&nbsp;**200,248** &nbsp;&nbsp;**186,251** &nbsp;&nbsp;&nbsp;&nbsp;Cash and deposits &nbsp;&nbsp;156,798 &nbsp;&nbsp;136,762 &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade &nbsp;&nbsp;64,955 &nbsp;&nbsp;61,028 &nbsp;&nbsp;&nbsp;&nbsp;Notes and accounts receivable - trade &nbsp;&nbsp;143,658 &nbsp;&nbsp;142,193 &nbsp;&nbsp;&nbsp;&nbsp;Short-term loans payable &nbsp;&nbsp;48,169 &nbsp;&nbsp;44,067 &nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded monetary claims &nbsp;&nbsp;19,954 &nbsp;&nbsp;20,719 &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable &nbsp;&nbsp;13,242 &nbsp;&nbsp;3,750 &nbsp;&nbsp;&nbsp;&nbsp;Merchandise and finished goods &nbsp;&nbsp;45,206 &nbsp;&nbsp;41,316 &nbsp;&nbsp;&nbsp;&nbsp;Provision for bonuses &nbsp;&nbsp;11,653 &nbsp;&nbsp;11,805 &nbsp;&nbsp;&nbsp;&nbsp;Work in process &nbsp;&nbsp;43,635 &nbsp;&nbsp;38,523 &nbsp;&nbsp;&nbsp;&nbsp;Deposits received from employees &nbsp;&nbsp;15,445 &nbsp;&nbsp;15,857 &nbsp;&nbsp;&nbsp;&nbsp;Raw materials and supplies &nbsp;&nbsp;28,345 &nbsp;&nbsp;26,235 &nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) &nbsp;&nbsp;822 &nbsp;&nbsp;– &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;13,161 &nbsp;&nbsp;15,236 &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;45,958 &nbsp;&nbsp;49,742 &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts &nbsp;&nbsp;(246) &nbsp;&nbsp;(263) &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; **NONCURRENT LIABILITIES** &nbsp;&nbsp;**81,131** &nbsp;&nbsp;**88,994** &nbsp;&nbsp;**NONCURRENT ASSETS** &nbsp;&nbsp;**501,136** &nbsp;&nbsp;**477,943** &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans payable &nbsp;&nbsp;14,364 &nbsp;&nbsp;17,623 **Property, plant and equipment** &nbsp;&nbsp;**249,009** &nbsp;&nbsp;**245,320** &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities &nbsp;&nbsp;25,071 &nbsp;&nbsp;20,975 &nbsp;&nbsp;&nbsp;&nbsp;Buildings and structures &nbsp;&nbsp;90,135 &nbsp;&nbsp;91,897 &nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit liabilities &nbsp;&nbsp;34,028 &nbsp;&nbsp;41,140 &nbsp;&nbsp;&nbsp;&nbsp;Machinery, equipment and vehicles &nbsp;&nbsp;100,183 &nbsp;&nbsp;97,007 &nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) &nbsp;&nbsp;– &nbsp;&nbsp;506 &nbsp;&nbsp;&nbsp;&nbsp;Tools, furniture and fixtures &nbsp;&nbsp;20,125 &nbsp;&nbsp;18,616 &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;7,666 &nbsp;&nbsp;8,748 &nbsp;&nbsp;&nbsp;&nbsp;Land &nbsp;&nbsp;19,932 &nbsp;&nbsp;19,933 &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Lease assets &nbsp;&nbsp;1,968 &nbsp;&nbsp;2,299 &nbsp;&nbsp;**<u>NET ASSETS</u>** &nbsp;&nbsp;**670,270** &nbsp;&nbsp;**623,421** &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress &nbsp;&nbsp;16,663 &nbsp;&nbsp;15,565 **SHAREHOLDERS' EQUITY** &nbsp;&nbsp;**444,269** &nbsp;&nbsp;**431,846** &nbsp;&nbsp;**Intangible assets** &nbsp;&nbsp;**15,193** &nbsp;&nbsp;**14,719** &nbsp;&nbsp;**CAPITAL STOCK** &nbsp;&nbsp;**23,335** &nbsp;&nbsp;**23,335** &nbsp;&nbsp;&nbsp;&nbsp;Goodwill &nbsp;&nbsp;9,257 &nbsp;&nbsp;9,885 &nbsp;&nbsp;**CAPITAL SURPLUS** &nbsp;&nbsp;**27,717** &nbsp;&nbsp;**27,343** &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;5,936 &nbsp;&nbsp;4,834 &nbsp;&nbsp;**RETAINED EARNINGS** &nbsp;&nbsp;**395,769** &nbsp;&nbsp;**398,858** &nbsp;&nbsp;**Investments and other assets** &nbsp;&nbsp;**236,933** &nbsp;&nbsp;**217,903** &nbsp;&nbsp;**TREASURY STOCK** &nbsp;&nbsp;**(2553)** &nbsp;&nbsp;**(17691)** &nbsp;&nbsp;&nbsp;&nbsp;Investment securities &nbsp;&nbsp;152,928 &nbsp;&nbsp;162,144 **ACCUMULATED OTHER COMPREHENSIVE INCOME** &nbsp;&nbsp;**180,587** &nbsp;&nbsp;**147,159** &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans receivable from employees &nbsp;&nbsp;1,080 &nbsp;&nbsp;1,288 &nbsp;&nbsp;**VALUATION DIFFERENCE ON AVAILABLE-FOR-SALE SECURITIES** &nbsp;&nbsp;**46,993** &nbsp;&nbsp;**55,041** &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets &nbsp;&nbsp;6,037 &nbsp;&nbsp;6,794 &nbsp;&nbsp;**FOREIGN CURRENCY TRANSLATION ADJUSTMENT** &nbsp;&nbsp;**87,726** &nbsp;&nbsp;**66,295** &nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit asset &nbsp;&nbsp;37,738 &nbsp;&nbsp;14,927 &nbsp;&nbsp;**REMEASUREMENTS OF DEFINED BENEFIT PLANS** &nbsp;&nbsp;**45,867** &nbsp;&nbsp;**25,822** &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;39,268 &nbsp;&nbsp;32,888 &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts &nbsp;&nbsp;(121) &nbsp;&nbsp;(139) **NON-CONTROLLING INTERESTS** &nbsp;&nbsp;**45,413** &nbsp;&nbsp;**44,415** &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;**TOTAL** &nbsp;&nbsp;**951,650** &nbsp;&nbsp;**898,667** &nbsp;&nbsp;**TOTAL** &nbsp;&nbsp;**951,650** &nbsp;&nbsp;**898,667** Note: Figures are rounded down to the nearest million yen.<br>23 <br>**<u>CONSOLIDATED STATEMENT OF INCOME</u>**<br> (From April 1, 2025 to March 31, 2026)<br>(Millions of yen)<br> &nbsp;&nbsp;**Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Reference)**<br> &nbsp;&nbsp;Net Sales &nbsp;&nbsp; &nbsp;&nbsp;738,434 &nbsp;&nbsp; &nbsp;&nbsp;766,859 &nbsp;&nbsp;Cost of Sales &nbsp;&nbsp; &nbsp;&nbsp;607,087 &nbsp;&nbsp; &nbsp;&nbsp;630,808 &nbsp;&nbsp;&nbsp;**Gross Profit** &nbsp;&nbsp; &nbsp;&nbsp;**131,346** &nbsp;&nbsp; &nbsp;&nbsp;**136,051** &nbsp;&nbsp;Selling, General and Administrative Expenses &nbsp;&nbsp; &nbsp;&nbsp;98,356 &nbsp;&nbsp; &nbsp;&nbsp;98,786 &nbsp;&nbsp;&nbsp;**Operating Income** &nbsp;&nbsp; &nbsp;&nbsp;**32,990** &nbsp;&nbsp; &nbsp;&nbsp;**37,264** &nbsp;&nbsp;Non-operating Income &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Interest income &nbsp;&nbsp;1,132 &nbsp;&nbsp; &nbsp;&nbsp;1,443 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Dividend income &nbsp;&nbsp;3,609 &nbsp;&nbsp; &nbsp;&nbsp;3,387 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Foreign exchange gains &nbsp;&nbsp;4,072 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Share of profit of entities accounted for using equity method &nbsp;&nbsp;9,482 &nbsp;&nbsp; &nbsp;&nbsp;8,790 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Rent income &nbsp;&nbsp;866 &nbsp;&nbsp; &nbsp;&nbsp;880 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;3,481 &nbsp;&nbsp;22,645 &nbsp;&nbsp;3,486 &nbsp;&nbsp;17,988 &nbsp;&nbsp;Non-operating Expenses &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Interest expenses &nbsp;&nbsp;2,589 &nbsp;&nbsp; &nbsp;&nbsp;3,165 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Foreign exchange losses &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;2,027 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on valuation of derivatives &nbsp;&nbsp;1,530 &nbsp;&nbsp; &nbsp;&nbsp;1,123 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;1,680 &nbsp;&nbsp;5,799 &nbsp;&nbsp;878 &nbsp;&nbsp;7,194 &nbsp;&nbsp;&nbsp;**Ordinary Income** &nbsp;&nbsp; &nbsp;&nbsp;**49,835** &nbsp;&nbsp; &nbsp;&nbsp;**48,057** &nbsp;&nbsp;Extraordinary Income &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sales of noncurrent assets &nbsp;&nbsp;997 &nbsp;&nbsp; &nbsp;&nbsp;463 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sales of investment securities &nbsp;&nbsp;36,169 &nbsp;&nbsp; &nbsp;&nbsp;3,100 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on revision of retirement benefit plan &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;4,123 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other extraordinary income &nbsp;&nbsp;– &nbsp;&nbsp;37,167 &nbsp;&nbsp;8 &nbsp;&nbsp;7,696 &nbsp;&nbsp;Extraordinary Loss &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sales and retirement of noncurrent assets &nbsp;&nbsp;1,652 &nbsp;&nbsp; &nbsp;&nbsp;1,663 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Impairment loss &nbsp;&nbsp;1,477 &nbsp;&nbsp; &nbsp;&nbsp;2,092 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sale of shares of subsidiaries and associates &nbsp;&nbsp;9,376 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on disposal of inventories &nbsp;&nbsp;1,557 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Amortization of prior service cost &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;1,308 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;189 &nbsp;&nbsp;14,252 &nbsp;&nbsp;585 &nbsp;&nbsp;5,649 **Income before Income Taxes** &nbsp;&nbsp; &nbsp;&nbsp;**72,750** &nbsp;&nbsp; &nbsp;&nbsp;**50,104** Income taxes - current &nbsp;&nbsp;21,099 &nbsp;&nbsp; &nbsp;&nbsp;13,246 &nbsp;&nbsp; Income taxes - deferred &nbsp;&nbsp;661 &nbsp;&nbsp;21,761 &nbsp;&nbsp;1,694 &nbsp;&nbsp;14,941 **Net Income** &nbsp;&nbsp; &nbsp;&nbsp;**50,988** &nbsp;&nbsp; &nbsp;&nbsp;**35,163** Profit attributable to non-controlling interests &nbsp;&nbsp; &nbsp;&nbsp;4,649 &nbsp;&nbsp; &nbsp;&nbsp;4,843 **Profit (Loss) Attributable to Owners of Parent** &nbsp;&nbsp; &nbsp;&nbsp;**46,338** &nbsp;&nbsp; &nbsp;&nbsp;**30,320** Note: Figures are rounded down to the nearest million yen.--------------------------------------------------------------------------------------------------------------------------------------------<br> "Consolidated Statement of Changes in Net Assets" and "Notes to Consolidated Financial Statements" are not included in the physical copies of electronically provided information sent to shareholders who request them, under laws and regulations and the Articles of Incorporation of the Company.<br>24 <br>**<u>BALANCE SHEET</u>**<br> (As of March 31, 2026)<br> (Millions of yen)<br> **Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Ref)**<br> **Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Ref)**<br> **<u>ASSETS</u>** **443,292** **447,294** **<u>LIABILITIES</u>** **151,583** **157,089** &nbsp;&nbsp;**CURRENT ASSETS** **242,310** **213,001** &nbsp;&nbsp;**CURRENT LIABILITIES** **112,999** **105,564** &nbsp;&nbsp;&nbsp;&nbsp;Cash and deposits 84,322 54,621 &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade 27,785 28,141 &nbsp;&nbsp;&nbsp;&nbsp;Notes receivable - trade 55 529 &nbsp;&nbsp;&nbsp;&nbsp;Short-term loans payable 6,052 6,924 &nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded monetary claims 18,354 18,194 &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - other 5,319 5,275 &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable - trade 47,928 50,532 &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable 9,652 255 &nbsp;&nbsp;&nbsp;&nbsp;Finished goods 12,453 13,068 &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses 1,907 2,080 &nbsp;&nbsp;&nbsp;&nbsp;Work in process 704 926 &nbsp;&nbsp;&nbsp;&nbsp;CMS deposits received 35,275 35,551 &nbsp;&nbsp;&nbsp;&nbsp;Raw materials and supplies 7,995 6,105 &nbsp;&nbsp;&nbsp;&nbsp;Provision for bonuses 3,999 4,497 &nbsp;&nbsp;&nbsp;&nbsp;Short-term loans receivable 60,225 55,285 &nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) 474 – &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivables - other 8,384 8,238 &nbsp;&nbsp;&nbsp;&nbsp;Deposits received from employees 13,081 &nbsp;&nbsp;13,440 &nbsp;&nbsp;&nbsp;&nbsp;Other 1,958 5,572 &nbsp;&nbsp;&nbsp;&nbsp;Other 9,450 &nbsp;&nbsp;9,397 &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts (73) (71) &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;**NONCURRENT LIABILITIES** **38,584** **51,525** &nbsp;&nbsp;**NONCURRENT ASSETS** **200,982** **234,292** &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans payable 2,107 3,159 **Property, plant and equipment** **53,642** **55,104** &nbsp;&nbsp;&nbsp;&nbsp;Provision for retirement benefits 31,504 38,112 &nbsp;&nbsp;&nbsp;&nbsp;Buildings 20,020 20,783 &nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) – 303 &nbsp;&nbsp;&nbsp;&nbsp;Structures 1,401 1,575 &nbsp;&nbsp;&nbsp;&nbsp;Long-term income taxes payable 113 293 &nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment 18,560 19,643 &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities 3,313 8,134 &nbsp;&nbsp;&nbsp;&nbsp;Vehicles 204 161 &nbsp;&nbsp;&nbsp;&nbsp;Other 1,544 1,522 &nbsp;&nbsp;&nbsp;&nbsp;Tools, furniture and fixtures 4,194 4,119 &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Land 5,201 5,557 **<u>NET ASSETS</u>** **291,709** **290,205** &nbsp;&nbsp;&nbsp;&nbsp;Lease assets 74 61 &nbsp;&nbsp;**SHAREHOLDERS' EQUITY** **245,192** **235,513** &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress 3,983 3,202 **CAPITAL STOCK** **23,335** **23,335** &nbsp;&nbsp;**Intangible assets** **18** **23** **CAPITAL SURPLUS** **20,397** **20,397** **Investments and other assets** **147,322** **179,164** &nbsp;&nbsp;&nbsp;&nbsp;Legal capital surplus 20,397 20,397 &nbsp;&nbsp;&nbsp;&nbsp;Investment securities 82,742 98,422 **RETAINED EARNINGS** **203,919** **209,384** &nbsp;&nbsp;&nbsp;&nbsp;Stocks of subsidiaries and affiliates 46,680 57,517 &nbsp;&nbsp;&nbsp;&nbsp;Legal retained earnings 2,983 2,983 &nbsp;&nbsp;&nbsp;&nbsp;Investment in capital of subsidiaries and affiliates 11,396 11,396 &nbsp;&nbsp;&nbsp;&nbsp;Other retained earnings 200,936 206,400 &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans receivable 4,554 5,362 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for special depreciation – 2 &nbsp;&nbsp;&nbsp;&nbsp;Prepaid pension cost – 4,478 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for advanced depreciation of noncurrent assets 2,450 2,465 &nbsp;&nbsp;&nbsp;&nbsp;Guarantee deposits 1,090 1,113 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings brought forward 198,485 203,932 &nbsp;&nbsp;&nbsp;&nbsp;Other 934 968 **TREASURY STOCK** **(2460)** **(17604)** &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts (76) (94) &nbsp;&nbsp;**VALUATION AND TRANSLATION ADJUSTMENTS** **46,516** **54,691** &nbsp;&nbsp;&nbsp; **VALUATION DIFFERENCE ON AVAILABLE-FOR-SALE SECURITIES** **46,516** **54,691** &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL** **443,292** **447,294** &nbsp;&nbsp;**TOTAL** **443,292** **447,294** Note: Figures are rounded down to the nearest million yen.<br>25 <br>**<u>STATEMENT OF INCOME</u>**<br> (From April 1, 2025 to March 31, 2026)<br> (Millions of yen)<br> &nbsp;&nbsp;**Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Reference)**<br> &nbsp;&nbsp;Net Sales &nbsp;&nbsp; &nbsp;&nbsp;227,309 &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;226,264 &nbsp;&nbsp;Cost of Sales &nbsp;&nbsp; &nbsp;&nbsp;179,928 &nbsp;&nbsp; &nbsp;&nbsp;180,838 &nbsp;&nbsp;&nbsp;**Gross Profit** &nbsp;&nbsp; &nbsp;&nbsp;**47,380** &nbsp;&nbsp; &nbsp;&nbsp;**45,426** &nbsp;&nbsp;Selling, General and Administrative Expenses &nbsp;&nbsp; &nbsp;&nbsp;41,087 &nbsp;&nbsp; &nbsp;&nbsp;40,799 &nbsp;&nbsp;&nbsp;**Operating Income** &nbsp;&nbsp; &nbsp;&nbsp;**6,293** &nbsp;&nbsp; &nbsp;&nbsp;**4,626** &nbsp;&nbsp;Non-operating Income &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Interest and dividend income &nbsp;&nbsp;20,844 &nbsp;&nbsp; &nbsp;&nbsp;39,364 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Rent income &nbsp;&nbsp;824 &nbsp;&nbsp; &nbsp;&nbsp;839 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Foreign exchange gains &nbsp;&nbsp;3,202 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;464 &nbsp;&nbsp;25,336 &nbsp;&nbsp;639 &nbsp;&nbsp;40,844 &nbsp;&nbsp;Non-operating Expenses &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Interest expenses &nbsp;&nbsp;1,057 &nbsp;&nbsp; &nbsp;&nbsp;941 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on valuation of derivatives &nbsp;&nbsp;516 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on valuation of derivatives &nbsp;&nbsp;1,530 &nbsp;&nbsp; &nbsp;&nbsp;1,123 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;106 &nbsp;&nbsp;3,210 &nbsp;&nbsp;821 &nbsp;&nbsp;2,886 &nbsp;&nbsp;&nbsp;**Ordinary Income** &nbsp;&nbsp; &nbsp;&nbsp;**28,418** &nbsp;&nbsp; &nbsp;&nbsp;**42,584** &nbsp;&nbsp;Extraordinary Income &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sales of noncurrent assets &nbsp;&nbsp;107 &nbsp;&nbsp; &nbsp;&nbsp;420 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sales of investment securities &nbsp;&nbsp;35,839 &nbsp;&nbsp; &nbsp;&nbsp;3,100 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sale of shares of subsidiaries and associates &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;54 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on revision of retirement benefit plan &nbsp;&nbsp;– &nbsp;&nbsp;35,946 &nbsp;&nbsp;2,879 &nbsp;&nbsp;6,454 &nbsp;&nbsp;Extraordinary Loss &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sales and retirement of noncurrent assets &nbsp;&nbsp;658 &nbsp;&nbsp; &nbsp;&nbsp;215 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sale of shares of subsidiaries and associates &nbsp;&nbsp;5,803 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sales of investment securities &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;2 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on valuation of investment securities &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;12 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Impairment loss &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;717 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Amortization of prior service cost &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;955 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on disposal of inventories &nbsp;&nbsp;1,557 &nbsp;&nbsp;8,019 &nbsp;&nbsp;– &nbsp;&nbsp;1,902 &nbsp;&nbsp;**Income before Income Taxes** &nbsp;&nbsp; &nbsp;&nbsp;**56,346** &nbsp;&nbsp; &nbsp;&nbsp;**47,136** &nbsp;&nbsp;Income taxes - current &nbsp;&nbsp;12,710 &nbsp;&nbsp; &nbsp;&nbsp;3,929 &nbsp;&nbsp; &nbsp;&nbsp;Income taxes - deferred &nbsp;&nbsp;(338) &nbsp;&nbsp;12,372 &nbsp;&nbsp;1,578 &nbsp;&nbsp;5,507 &nbsp;&nbsp;**Net Income** &nbsp;&nbsp; &nbsp;&nbsp;**43,973** &nbsp;&nbsp; &nbsp;&nbsp;**41,629** &nbsp;&nbsp;Note: Figures are rounded down to the nearest million yen. <br> --------------------------------------------------------------------------------------------------------------------------------------------<br> "Statement of Changes in Net Assets" and "Notes to Financial Statements" are not included in the physical copies of electronically provided information sent to shareholders who request them, under laws and regulations and the Articles of Incorporation of the Company.<br>26 <br>*Note*: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the Japanese original shall prevail.<br> The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation. **Independent Auditor's Audit Report<br> Concerning Consolidated Financial Statements**<br>**<u>INDEPENDENT AUDITOR'S REPORT</u>**<br>May 15, 2026<br>To: The Board of Directors of<br> NOK CORPORATION<br>&nbsp;&nbsp;Nihombashi Corporation<br> Chuo Ward, Tokyo<br> &nbsp;&nbsp; &nbsp;&nbsp;Hidekazu Takahashi &nbsp;&nbsp;Designated and Engagement Partner,<br> Certified Public Accountant &nbsp;&nbsp;Shigehiro Chiba &nbsp;&nbsp;Designated and Engagement Partner,<br> Certified Public Accountant <br>*Opinion*<br> Pursuant to Article 444, Paragraph 4 of the Companies Act, we have audited the consolidated financial statements of NOK CORPORATION and its subsidiaries (the "NOK Group"), which comprise the consolidated balance sheet as of March 31, 2026, the consolidated statement of income, the consolidated statement of changes in net assets and the notes to the consolidated financial statements applicable to the fiscal year from April 1, 2025 through March 31, 2026.<br> In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the NOK Group, applicable to the fiscal year ended March 31, 2026, and its consolidated financial performance for the year then ended in accordance with accounting principles generally accepted in Japan.<br> *Basis for Opinion*<br> We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the NOK Group in accordance with the professional ethical standards in Japan (including standards applicable to audits of financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with those standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.<br> *Other content*<br> Other content refers to the business report and its supplementary schedules. The responsibility of management is to produce and disclose this other content. The responsibility of the Audit & Supervisory Committee is to monitor the directors' performance of duties in the preparation and operation of reporting processes for this other content.<br> The other content is not subject to our audit opinion regarding the consolidated financial statements, and we do not express an opinion regarding the other content.<br> Our responsibility in the audit of the consolidated financial statements, etc. is to read through the other content, and in the process of reading through, examine whether there are any material discrepancies between the other content and the consolidated financial statements, and compared with the knowledge gained by us in the process of auditing, also to pay attention to the presence of any signs of other material misstatements in the other content aside from such material discrepancies.<br> We are required to report the fact in the case that we judge there are material misstatements in the other content based on the work we have performed.<br> There are no facts that we should report with regard to the other content.<br> *Responsibilities of Management and the Audit & Supervisory Committee for the Consolidated Financial Statements*<br> Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.<br> In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare the consolidated financial statements with the assumption of a going concern, and in accordance with accounting principles generally accepted in Japan, for disclosing, as necessary, matters related to going concern.<br> The Audit & Supervisory Committee is responsible for overseeing the Directors' performance of duties within the maintenance and operation of the financial reporting process.<br>27 <br>The Audit & Supervisory Committee is responsible for overseeing the Directors' performance of duties within the maintenance and operation of the financial reporting process.<br> *Auditors' Responsibilities for the Audit of the Consolidated Financial Statements*<br> Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.<br> As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit process. We also:<br> •Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. •When auditing the consolidated financial statements, consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances in making those risk assessments, but not for the purpose of expressing an opinion on the effectiveness of the NOK Group's internal control. •Evaluate the appropriateness of accounting policies used by management and their method of application, as well as the reasonableness of accounting estimates made by management and related notes thereto. •Conclude on the appropriateness of preparing the consolidated financial statements with the assumption of a going concern by management, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the NOK Group's ability to continue as a going concern. If we conclude that a material uncertainty regarding the assumption of a going concern exists, we are required to draw attention in our auditor's report to the notes to the consolidated financial statements or, if the notes to the consolidated financial statements on material uncertainty are inadequate, to express a qualified opinion with exceptions on the consolidated financial statements. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the NOK Group to cease to continue as a going concern. •Evaluate whether the presentation of the consolidated financial statements and notes thereto are in accordance with accounting standards generally accepted in Japan, as well as evaluate the overall presentation, structure and content of the consolidated financial statements, including the related notes thereto, and whether the consolidated financial statements represent the underlying transactions and accounting events in a manner that achieves fair presentation. •We plan and conduct audits of consolidated financial statements in order to obtain sufficient and appropriate audit evidence regarding the financial information of NOK CORPORATION and its consolidated subsidiaries that forms a foundation for expressing our opinions on the consolidated financial statements. We are responsible for the direction, supervision, and examination of audits of the consolidated financial statements. We remain solely responsible for our audit opinion. We communicate with the Audit & Supervisory Committee regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit process, and other matters required by auditing standards.<br> We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethical requirements in Japan regarding independence, and other matters that may reasonably be thought to bear on our independence, and the details in cases when measures have been enacted to eliminate obstruction factors, or cases when safeguards have been applied to reduce obstruction factors to an acceptable level.<br> *Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan*<br> Our firm and its designated and engagement partners do not have any interest in the NOK Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.<br>28 <br>**Independent Auditor's Audit Report Concerning Financial Statements**<br>**<u>INDEPENDENT AUDITOR'S REPORT</u>**<br>May 15, 2026<br>To: The Board of Directors of<br> NOK CORPORATION<br>&nbsp;&nbsp;Nihombashi Corporation<br> Chuo Ward, Tokyo<br> &nbsp;&nbsp; &nbsp;&nbsp;Hidekazu Takahashi &nbsp;&nbsp;Designated and Engagement Partner,<br> Certified Public Accountant &nbsp;&nbsp;Shigehiro Chiba &nbsp;&nbsp;Designated and Engagement Partner,<br> Certified Public Accountant <br>*Opinion*<br> Pursuant to Article 436, Paragraph 2, Item 1 of the Companies Act, we have audited the financial statements of NOK CORPORATION (the "Company"), which comprise the balance sheet, the statement of income, the statement of changes in net assets and the notes to the financial statements, and the supplementary statements (collectively, the "Financial Statements, etc.") applicable to the 120th term from April 1, 2025 through March 31, 2026.<br> In our opinion, the Financial Statements, etc. referred to above present fairly, in all material respects, the financial position of the Company applicable to the 120th term ended March 31, 2026, and its financial performance for the year then ended in accordance with accounting principles generally accepted in Japan.<br> *Basis for Opinion*<br> We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements, etc. section of our report. We are independent of the Company in accordance with the professional ethical standards in Japan (including standards applicable to audits of financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with those standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.<br> *Other content*<br> Other content refers to the business report and its supplementary schedules. The responsibility of management is to produce and disclose this other content. The responsibility of the Audit & Supervisory Committee is to monitor the directors' performance of duties in the preparation and operation of reporting processes for this other content.<br> The other content is not subject to our audit opinion regarding the Financial Statements, etc., and we do not express an opinion regarding the other content.<br> Our responsibility in the audit of the Financial Statements, etc. is to read through the other content, and in the process of reading through, examine whether there are any material discrepancies between the other content and the Financial Statements, etc., and compared with the knowledge gained by us in the process of auditing, also to pay attention to the presence of any signs of other material misstatements in the other content aside from such material discrepancies.<br> We are required to report the fact in the case that we judge there are material misstatements in the other content based on the work we have performed.<br> There are no facts that we should report with regard to the other content.<br> *Responsibilities of Management and the Audit & Supervisory Committee for the Financial Statements, etc.*<br> Management is responsible for the preparation and fair presentation of the Financial Statements, etc. in accordance with accounting principles generally accepted in Japan, and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the Financial Statements, etc. that are free from material misstatement, whether due to fraud or error.<br> In preparing the Financial Statements, etc., management is responsible for assessing whether it is appropriate to prepare the Financial Statements, etc. with the assumption of a going concern, and in accordance with accounting principles generally accepted in Japan, for disclosing, as necessary, matters related to going concern.<br> The Audit & Supervisory Committee is responsible for overseeing the Directors' performance of duties within the maintenance and operation of the financial reporting process.<br>29 <br>*Auditors' Responsibilities for the Audit of the Financial Statements, etc.*<br> Our objectives are to obtain reasonable assurance about whether the Financial Statements, etc. as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the Financial Statements, etc. based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements, etc.<br> As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit process. We also:<br> •Identify and assess the risks of material misstatement of the Financial Statements, etc., whether due to fraud or error, design and perform audit procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. •When auditing the Financial Statements, etc., consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances in making those risk assessments, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. •Evaluate the appropriateness of accounting policies used by management and their method of application, as well as the reasonableness of accounting estimates made by management and related notes thereto. •Conclude on the appropriateness of preparing the Financial Statements, etc. with the assumption of a going concern by management, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty regarding the assumption of a going concern exists, we are required to draw attention in our auditor's report to the notes to the Financial Statements, etc. or, if the notes to the Financial Statements, etc. on material uncertainty are inadequate, to express a qualified opinion with exceptions on the Financial Statements, etc. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. •Evaluate whether the presentation of the Financial Statements, etc. and notes thereto are in accordance with accounting standards generally accepted in Japan, as well as evaluate the overall presentation, structure and content of the Financial Statements, etc., including the notes to the Financial Statements, etc., and whether the Financial Statements, etc. represent the underlying transactions and accounting events in a manner that achieves fair presentation. We communicate with the Audit & Supervisory Committee regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit process, and other matters required by auditing standards.<br> We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethical requirements in Japan regarding independence, and other matters that may reasonably be thought to bear on our independence, and the details in cases when measures have been enacted to eliminate obstruction factors, or cases when safeguards have been applied to reduce obstruction factors to an acceptable level.<br> *Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan*<br> Our firm and its designated and engagement partners do not have any interest in the Company which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.<br>30 <br>**Audit Report by the Audit & Supervisory Committee**<br> **<u>Audit Report</u>**<br> This Audit & Supervisory Committee audited the execution of duties by Directors during the 120th term from April 1, 2025 to March 31, 2026. The method and results are reported as follows: <br>1. Method and Details of Auditing<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With regard to the resolutions of the Board of Directors concerning the matters set forth in Article 399-13, Paragraph 1, Item 1 (b) and (c) of the Companies Act, as well as the internal control system established pursuant to those resolutions, the Audit & Supervisory Committee receives regular reports from the Directors and employees on the status of the system's establishment and operation, seeks explanations where necessary, states its opinions, and conducts audits using the following method.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In accordance with the Audit & Supervisory Committee Audit Standards established by the Audit & Supervisory Committee, the audit policy and division of duties, and in cooperation with the Company's internal audit department and other internal control department, the Audit & Supervisory Committee Members have also been attending important meetings, obtaining reports, and where necessary, seeking explanations from the Directors and employees on matters related to the execution of their duties, examining important authorization papers and related documents, and inspecting the state of business affairs and assets at the Company's head office and other major business locations. As for subsidiaries, Audit & Supervisory Committee Members have been promoting communication and information exchange among Directors and Corporate Auditors within the Company's subsidiaries, and have been receiving periodic reports on the state of their business activities as necessary.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Audit & Supervisory Committee has been inspecting and verifying whether independent auditors are maintaining their independence and implementing proper auditing procedures. The Audit & Supervisory Committee has also been receiving reports and, where necessary, seeking explanations from them concerning their audits. The Audit & Supervisory Committee has also been receiving notices from independent auditors to the effect that they have established "systems to ensure proper execution of duties" (those listed in each item of Article 131 of the Corporate Calculation Regulations), in accordance with "Quality Control Standards concerning Audit (Financial Accounting Standards Board)" and, where necessary, has been obtaining explanations from them.<br> Based on the above method, the Audit & Supervisory Committee has reviewed the business report and accompanying statements, financial statements for the term under review (balance sheet, statement of income, statement of changes in net assets, and notes to financial statements), supplementary statements, and consolidated financial statements (consolidated balance sheet, consolidated statement of income, and consolidated statement of changes in net assets, and notes to consolidated financial statements). &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Results of Audit<br> &nbsp;&nbsp;&nbsp;&nbsp;(1) Results of audit of business report<br> &nbsp;&nbsp;&nbsp;&nbsp;The Audit & Supervisory Committee finds:<br> &nbsp;&nbsp;&nbsp;&nbsp;(i) That the business report and the accompanying statements present in a fair manner the conditions of the Company in compliance with the laws and regulations and the Articles of Incorporation of the Company.<br> &nbsp;&nbsp;&nbsp;&nbsp;(ii) That there are no unfair practices in the Directors' execution of their duties or any serious conditions that conflict with the laws and regulations or the Articles of Incorporation of the Company.<br> &nbsp;&nbsp;&nbsp;&nbsp;(iii) That the Board of Director's decisions in regards to the internal control system are appropriate and that nothing in the details described in the Business Report, or the Directors' execution of their duties related thereto needs to be addressed herein.<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Results of audit of the financial statements and the supplementary statements<br> The Audit & Supervisory Committee finds that the auditing methods of the independent auditors, Nihombashi Corporation, an incorporated accounting firm, and the results of their audit are appropriate.<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Results of audit of the consolidated financial statements<br> The Audit & Supervisory Committee finds that the auditing methods of the independent auditors, Nihombashi Corporation, an incorporated accounting firm, and the results of their audit are appropriate.<br> May 19, 2026 Audit & Supervisory Committee, NOK CORPORATION Hideki Watanabe Full-time Audit & Supervisory Committee Member Makoto Fujioka Audit & Supervisory Committee Member Naoki Shimada Audit & Supervisory Committee Member Motoko Imada Audit & Supervisory Committee Member Atsushi Kajitani Audit & Supervisory Committee Member<br>Note: Audit & Supervisory Committee Members Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi Kajitani serve as External Directors as defined in Article 2, Paragraph 15 and Article 331, Paragraph 6 of the Companies Act.<br> <br> 31 <br>**Information for Shareholders**<br>**Fiscal year** &nbsp;&nbsp;From April 1 to March 31 of the following year **Annual shareholders' meeting** &nbsp;&nbsp;June **Dividend payment record date** &nbsp;&nbsp;Year-end dividend March 31 &nbsp;&nbsp;Interim dividend September 30 **Transfer agent** &nbsp;&nbsp;Mitsubishi UFJ Trust and Banking Corporation **Contact information** &nbsp;&nbsp; 1-1 Nikko-cho, Fuchu City, Tokyo, Japan<br> Stock Transfer Agency Department,<br> Mitsubishi UFJ Trust and Banking Corporation<br> Tel: 0120-232-711 (toll-free number available in Japan only)<br> Mailing address: P.O. Box No. 29, Shin-Tokyo Post Office, Japan, 137-8081<br> Stock Transfer Agency Department,<br> Mitsubishi UFJ Trust and Banking Corporation<br> **Method of public notice** &nbsp;&nbsp; An electronic public notice is applied.<br> URL for public notice https://www.nok.co.jp/<br> (If it becomes impossible for us to make an electronic public notice due to an accident or any other unavoidable reason, we will post it in the ***Nikkei***.)<br> **Share unit** &nbsp;&nbsp;100 shares **Public listing** &nbsp;&nbsp; Tokyo Stock Exchange<br> Listed Name on the Prime Market: NOK (Securities Code: 7240)<br> &nbsp;&nbsp; <br>**NOK CORPORATION**<br> 12-15, Shiba-Daimon 1-chome, Minato Ward, Tokyo, Japan 105-8585<br> Telephone: +81-3- 3432-4211 (main)<br> https://www.nokgrp.com<br>  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ** To Our Shareholders 1 Financial Highlights (Consolidated) 2 (Physical copies of electronically provided information sent <br> to shareholders who request them along with the Notice<br> of the 120th Annual Shareholders' Meeting) Business Report &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Current Status of the NOK Group 3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Outline of the Company 13 Consolidated Financial Statements &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheet 23 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statement of Income 24 Financial Statements &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance Sheet 25 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statement of Income 26 Independent Auditor's Audit<br> Report Concerning Consolidated Financial Statements 27 Independent Auditor's Audit<br> Report Concerning Financial Statements 29 Audit Report by the Audit & Supervisory Committee 31 Information for Shareholders &nbsp;&nbsp;&nbsp;&nbsp;The following are not included in the physical copies of electronically provided information sent to shareholders who request them, under laws and regulations and the Articles of Incorporation of the Company.<br> (i) "System for Ensuring Properness of Operations" in Business Report<br> (ii) "Consolidated Statement of Changes in Net Assets" and "Notes to Consolidated Financial Statements" in the Consolidated Financial Statements<br> (iii) "Statement of Changes in Net Assets" and "Notes to Financial Statements" in the Financial Statements<br> (iv) "(1) Content of the financial statements for the most recent fiscal year (fiscal year ended March 31, 2026)" under "4. Information on Eagle Industry" of the First Item, "Approval of a Share Transfer Plan," of the Reference Materials for the Annual Shareholders' Meeting <br>** <br>1 <br>**Financial Highlights (Consolidated)**<br> ![](image_006.jpg)<br> Note: Amounts described in Financial Highlights (Consolidated) are rounded off to the nearest described point.<br>2 <br>**<u>BUSINESS REPORT for the 120th Term</u>**<br> April 1, 2025 to March 31, 2026 **1. Current Status of the NOK Group**<br> &nbsp;&nbsp;&nbsp;&nbsp;**(1) Business Overview**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Business conditions and results**<br> For the current fiscal year, the NOK Group posted the following operating results: Net sales totaled 738,434 million yen (down 3.7% year on year); operating income was 32,990 million yen (down 11.5% year on year); ordinary income ended at 49,835 million yen (up 3.7% year on year), resulting in 46,338 million yen in profit attributable to owners of parent (up 52.8% year on year).<br>Operating income decreased due to a decline in net sales. Meanwhile, ordinary income increased, mainly owing to higher foreign exchange gains. Despite recording a loss on sale of shares of subsidiaries and associates related to the divestiture of the roll products business, profit attributable to owners of the parent increased as well due to an increase of gains on the sale of investment securities.<br>The business conditions of the NOK Group by business segment were as follows:<br>![](image_007.jpg)<br>**■ Results of the Business Activities by Business Segment**<br> **Seal business**<br> Net sales amounted to 367,397 million yen (up 1.3% year on year) and operating income was 27,860 million yen (up 6.3% year on year).<br>For the automotive applications, although the number of Japanese automobiles produced domestically in Japan declined, sales increased due to expanded sales to non-Japanese customers in China and the recovery of the automotive market in Thailand. For general industrial machinery applications, sales also increased, driven by higher demand—particularly for construction machinery in China. As a result, net sales for the segment rose overall, supported additionally by the positive effect of foreign exchange rates.<br>Although fixed costs such as personnel expenses increased, operating income increased thanks to price revision activities such as passing on selling prices, as well as improvements in variable costs due to lower raw material prices and cost-reduction measures.<br>3 <br>**Electronic Product business**<br> Net sales amounted to 345,109 million yen (down 7.0% year on year) and operating income was 3,967 million yen (down 55.6% year on year).<br>In addition to the negative impact of foreign exchange rates, net sales decreased due to a decline of component costs included in sales, as well as a decline in net sales. In terms of sales excluding the component costs by application, sales for automobile decreased, mainly because growth in sales for automotive battery applications slowed.<br>Along with the decline in net sales, operating income also decreased due to higher fixed costs, including depreciation and personnel expenses.<br>**Other businesses**<br> Net sales amounted to 25,926 million yen (down 21.8% year on year) and operating income was 1,137 million yen (down 46.6% year on year).<br>With respect to the roll products business, all shares of SYNZTEC Co., Ltd. and seven other companies were transferred as of January 30, 2026. However, the transfer is deemed to have been completed at the beginning of the fourth quarter of the consolidated accounting period, and the above net sales and operating income include the results up to the cumulative total for the third quarter of the consolidated accounting period.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Capital investment and fund procurement**<br> The NOK Group made capital investments of 48,405 million yen in total (down 7.6% from the previous fiscal year) mainly for increasing production capacities in Japan, China, and Southeast Asian countries.<br>These investments were financed by our own funds.<br>4 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(2) Issues to be Addressed by the NOK Group**<br> Uncertainties remain in regards to the future business environment of the NOK Group due to factors including heightened geopolitical risks in the Middle East and the resulting soaring energy prices and supply chain disruptions, foreign policy trends in the U.S., and financial policy trends in Japan and the U.S. In Japan, labor costs are continuing to rise due to the effects of rising wages in response to rising prices. The following are the forecasts for each business area based on this situation.<br>In the seal business, large increases in vehicle production by Japanese automobile manufacturers are not expected, and we expect increasing impacts from factors such as the increasing sales share of electric vehicles in China, and in the ASEAN region, the full-scale market entry of Chinese automobile manufacturers in the key market of Thailand. For general industrial machinery applications, while demand trends vary depending on the region and application, demand is expected to grow mainly for construction machinery applications; however, it is anticipated that significant growth will be difficult to achieve if limited to traditional business areas. While the environment surrounding our business as a whole is expected to remain difficult, we will strive to improve profitability by means such as developing products for new areas like electric vehicles, expanding sales to non-Japanese automobile manufacturers, expanding sales beyond traditional business areas such as for construction machinery and agricultural machinery applications to general industrial machinery applications, and strategic pricing activities.<br>In the electronic product business, in terms of automobile applications, while the long-term growth trajectory for the electric vehicle market has been weaker than expected, it is expected that the shift to electric vehicles will continue unchanged. Under these conditions, it is our view that the adoption of FPC for vehicle batteries that has been a particular focus of the Company is steadily expanding. Furthermore, based on the record of adoption by customers in Japan and overseas, the quality and stable supply of the Company's products have been rated highly. We expect adoption to grow further in the future, resulting in growing volume and improved profitability. Overall market growth for smartphones has stagnated due to factors including the prolonged replacement cycle by end-users. We will make effective use of current production capacity and work to improve productivity and profitability. Although we achieved profitability during the period of the Medium-Term Management Plan (April 1, 2023 to March 31, 2026), as we aim for a business structure that can produce stable profits, we will level out production by expanding into business areas such as the vehicle battery field, where seasonal demand fluctuations are relatively low.<br>In all businesses, in part due to the lack of expected significant future growth in their markets, it is important that we carry out initiatives for improving profitability such as those described above, and at the same time, that we also create new growth drivers by searching for external growth opportunities.<br>We will also make efforts related to environmental issues including decarbonization, invest in human resources as a foundation for continual growth, and make investments that ensure sustainable business.<br>In order to address these issues, the Company aims to construct a business infrastructure that can achieve continual growth and improvement in corporate value. In the Medium-Term Management Plan covering the three years from fiscal 2023 to fiscal 2025, we engaged in a basic policy of constructing a foundation for transformation, consisting of four key items: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br>Based on the continually changing business environment and the results of the Medium-Term Management Plan, the Company has formulated a new Medium-Term Management Plan (April 1, 2026 to March 31, 2029), with fiscal 2028 as the final year, to serve as a path to achieving our objectives in fiscal 2031. The basic policies and strategic goals are as follows.<br>5 <br>**■ Basic policies**<br> Implementation<br> - Execute thoroughly without hesitation<br> - Continue to challenge ambitious targets<br>**■ Strategic goals and key initiatives**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Optimization and Sophistication of Global Operating Model<br> - Establishment of the optimal management system for the Group and each business<br> - Improvement of efficiency in group indirect operations<br> - ERP implementation with an appropriate investment scale<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Completion of Profitability Improvement Measures<br> - Establishment and execution of pricing strategy in the Seal business<br> - Cultivation of new domains for growth<br> - Execution and completion of cost reduction measures<br> - Review of unprofitable and non-core businesses<br> - Reduction of indirect material costs across the Group<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Business Creation and Acquisition for Inorganic Growth<br> - Identification, acquisition, and launch of new business domains<br>In order to fully carry out the above strategic targets, we aim to construct and acquire the capabilities necessary for the organization and for individual employees.<br>At a Board of Directors meeting on November 10, 2025, it was decided to integrate management by establishing a joint holding company with Eagle Industry Co., Ltd. on October 1, 2026. At the 120th Annual Shareholders' Meeting to be held on June 25, 2026, we will submit a resolution for the establishment of a wholly-owning parent company through a share transfer.<br>Through this integration, we will combine the technologies and strengths of both companies, and aim to be a company that is chosen by greater numbers of stakeholders as a company that can provide composite sealing solutions that meet customer needs with a complete range of materials covering everything from organic materials to inorganic materials.<br>6 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(3) Financial and Operational Results**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Trends in consolidated assets and business results of the NOK Group**<br> (Millions of yen, except for per share figures)<br> **Classification** **117th term**<br> **(FY2022)**<br> **118th term**<br> **(FY2023)**<br> **119th term**<br> **(FY2024)**<br> **120th term**<br> **(FY2025)**<br> Net Sales 709,956 750,502 766,859 738,434 Operating Income 15,378 22,912 37,264 32,990 Ordinary Income 26,557 40,285 48,057 49,835 Profit Attributable to Owners of Parent 13,320 31,602 30,320 46,338 Net Income Per Share (Yen) 77.55 188.34 184.81 284.84 Total Assets 862,750 952,379 898,667 951,650 Net Assets 577,346 639,001 623,421 670,270 ●In the 117th term (FY2022), net sales increased as a result of transferring costs to prices, despite the negative impacts of the lockdown in China and the supply shortage of semiconductors and other components. Operating income was down due to factors including surging prices of raw materials and energy. ●In the 118th term (FY2023), despite the impact of a global economic slowdown such as the real estate recession in China, sales to the automotive field increased, resulting in increased revenue and profits. ●In the 119th term (FY2024), despite the effect of factors including the decline in vehicle production by Japanese automobile manufacturers in Japan and slow sales in China, we achieved higher revenue and profits by transferring costs to prices, improving variable costs, and other measures. ●As for the business performance in the 120th term (FY2025), please refer to the aforementioned (1) Business Overview. <br> Information for reference: About cross-shareholdings<br> The amount of the Company's cross-shareholdings (investment securities) listed on the balance sheet at the end of this fiscal year was 82.742 billion yen, which represents 12.3% of the aforementioned consolidated net asset value of the NOK Group.<br> In fiscal 2025, we completed the sale of 40.8% of our cross-shareholdings as of March 31, 2026, relative to the cross-shareholdings reduction target of 25% on a market value basis as of March 31, 2023.<br>7 <br>**(ii) Trends in assets and business results of the Company**<br> (Millions of yen, except for per share figures)<br> **Classification** **117th term**<br> **(FY2022)**<br> **118th term**<br> **(FY2023)**<br> **119th term**<br> **(FY2024)**<br> **120th term**<br> **(FY2025)**<br> Net Sales 218,710 230,826 226,264 227,309 Operating Income (loss) (380) 3,216 4,626 6,293 Ordinary Income 9,010 26,532 42,584 28,418 Net Income 9,052 39,679 41,629 43,973 Net Income Per Share (Yen) 52.68 236.35 253.60 270.15 Total Assets 408,551 461,165 447,294 443,292 Net Assets 258,093 285,887 290,205 291,709 ●In the 117th term (FY2022), revenue decreased as sales slowed to both the automobile industry and manufacturers of general industrial machinery. Profits also decreased in light of sluggish sales, surging raw material and energy prices, and other factors. ●In the 118th term (FY2023), revenue increased due to a recovery in sales for the automobile industry. Profits increased due to the impact of the increase in sales, an increase in dividend income from subsidiaries, recognition of gain on sales of investment securities, etc. ●In the 119th term (FY2024), revenue decreased as sales to the automobile industry slowed. Profits increased due to the decrease in fixed costs such as personnel and depreciation costs, and an increase in dividend income from subsidiaries, etc. ●In the 120th term (FY2025), revenue increased due to a recovery in sales for general industrial machinery applications. Profits increased due to recording of gain on sales of investment securities and other factors, despite a decline in ordinary income mainly resulting from a decrease in dividend income from subsidiaries. <br>8 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(4) Status of Corporate Affiliations**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Condition of major subsidiaries and affiliates**<br> &nbsp;&nbsp; &nbsp;&nbsp;**Company** &nbsp;&nbsp;**Capital stock** &nbsp;&nbsp;**Investment ratio** &nbsp;&nbsp;**Main business** &nbsp;&nbsp;Seal business &nbsp;&nbsp; Thai NOK Co., Ltd.<br> (Thailand)<br> &nbsp;&nbsp;THB1,200 million &nbsp;&nbsp;100.0% &nbsp;&nbsp;Manufacture and sale of seal products &nbsp;&nbsp;Wuxi NOK-Freudenberg Oilseal Co., Ltd. (China) &nbsp;&nbsp;RMB350,622,000 &nbsp;&nbsp; – %<br> (50.0)<br> &nbsp;&nbsp;Manufacture and sale of seal products &nbsp;&nbsp;NOK Inc. (U.S.A.) &nbsp;&nbsp;US$7,200,000 &nbsp;&nbsp;100.0% &nbsp;&nbsp;Equity investment in Freudenberg-NOK General Partnership which produces and sells seal products, etc. &nbsp;&nbsp;Unimatec Co., Ltd. &nbsp;&nbsp;¥400 million &nbsp;&nbsp;100.0% &nbsp;&nbsp;Manufacture and sale of synthetic chemical products &nbsp;&nbsp;Eagle Industry Co., Ltd. &nbsp;&nbsp;¥10,490 million &nbsp;&nbsp; 32.1%<br> (0.2)<br> &nbsp;&nbsp;Manufacture and sale of mechanical seals, etc. &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;MEKTEC CORPORATION &nbsp;&nbsp;¥5,000 million &nbsp;&nbsp;100.0% &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp; Mektec Manufacturing Corporation (Taiwan) Ltd.<br> (Taiwan)<br> &nbsp;&nbsp;NT$416,085,000 &nbsp;&nbsp; – %<br> (86.8)<br> &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp; Mektec Manufacturing Corporation (Thailand) Ltd.<br> (Thailand)<br> &nbsp;&nbsp;THB200 million &nbsp;&nbsp; – %<br> (75.0)<br> &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp; Mektec Manufacturing Corporation (Zhuhai) Ltd.<br> (China)<br> &nbsp;&nbsp;RMB431,678,000 &nbsp;&nbsp; – %<br> (97.4)<br> &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp; Mektec Manufacturing Corporation (Suzhou)<br> (China)<br> &nbsp;&nbsp;RMB791,236,000 &nbsp;&nbsp; – %<br> (96.7)<br> &nbsp;&nbsp;Manufacture and sale of electronic parts &nbsp;&nbsp;Other businesses &nbsp;&nbsp;NOK Klüber Co., Ltd. &nbsp;&nbsp;¥100 million &nbsp;&nbsp;51.0% &nbsp;&nbsp;Manufacture and sale of special lubricants Notes: 1.The numbers in parentheses in the column "Investment ratio" show the capital ratio which the Company's subsidiaries hold. 2.There are 80 consolidated subsidiaries and 18 equity method affiliates (including the aforementioned 11 major subsidiaries and affiliates). 3.A transfer of all shares in SYNZTEC Co., Ltd. was carried out on January 30, 2026, and SYNZTEC Co., Ltd. has been removed because it is no longer a subsidiary of the Company. <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Important partners**<br> The Company maintains a partnership with Freudenberg & Co. of the Federal Republic of Germany that encompasses all business aspects including capital and technology.<br>9 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(5) Main Businesses** (as of March 31, 2026)<br> The major businesses of the NOK Group consist of production and sales of the following products.<br> &nbsp;&nbsp;**Segment** &nbsp;&nbsp;**Major products** &nbsp;&nbsp;Seal business &nbsp;&nbsp;Oil seals, O-rings, vibration-control rubber, plastic products, gaskets, synthetic chemical products, mechanical seals &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;Flexible printed circuits and precision components &nbsp;&nbsp;Other businesses &nbsp;&nbsp;Special lubricants, others <br> &nbsp;&nbsp;&nbsp;&nbsp;**(6) Major Business Offices and Factories** (as of March 31, 2026)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) The Company**<br> &nbsp;&nbsp;**Name** &nbsp;&nbsp;**Location** &nbsp;&nbsp; &nbsp;&nbsp;**Name** &nbsp;&nbsp;**Location** &nbsp;&nbsp;Head Office &nbsp;&nbsp;Minato Ward, Tokyo &nbsp;&nbsp; &nbsp;&nbsp;Osaka Branch &nbsp;&nbsp;Osaka City, Osaka &nbsp;&nbsp;Mito Branch &nbsp;&nbsp;Mito City, Ibaraki Pref. &nbsp;&nbsp; &nbsp;&nbsp;Hiroshima Branch &nbsp;&nbsp;Hiroshima City, Hiroshima Pref. &nbsp;&nbsp;Utsunomiya Branch &nbsp;&nbsp;Utsunomiya City, Tochigi Pref. &nbsp;&nbsp; &nbsp;&nbsp;Fukuoka Branch &nbsp;&nbsp;Fukuoka City, Fukuoka Pref. &nbsp;&nbsp;Kumagaya Branch &nbsp;&nbsp;Kumagaya City, Saitama Pref. &nbsp;&nbsp; &nbsp;&nbsp;Fukushima Plant &nbsp;&nbsp;Fukushima City, Fukushima Pref. &nbsp;&nbsp;Tokyo Branch &nbsp;&nbsp;Minato Ward, Tokyo &nbsp;&nbsp; &nbsp;&nbsp;Nihonmatsu Plant &nbsp;&nbsp;Nihonmatsu City, Fukushima Pref. &nbsp;&nbsp;Electric Components Branch &nbsp;&nbsp;Minato Ward, Tokyo &nbsp;&nbsp; &nbsp;&nbsp;Kita Ibaraki Plant &nbsp;&nbsp;Kita Ibaraki City, Ibaraki Pref. &nbsp;&nbsp;Kanagawa Branch &nbsp;&nbsp;Ebina City, Kanagawa Pref. &nbsp;&nbsp; &nbsp;&nbsp;Shizuoka Plant &nbsp;&nbsp;Makinohara City, Shizuoka Pref. &nbsp;&nbsp;Fuji Branch &nbsp;&nbsp;Fuji City, Shizuoka Pref. &nbsp;&nbsp; &nbsp;&nbsp;Tokai Plant &nbsp;&nbsp;Kikugawa City, Shizuoka Pref. &nbsp;&nbsp;Hamamatsu Branch &nbsp;&nbsp;Hamamatsu City, Shizuoka Pref. &nbsp;&nbsp; &nbsp;&nbsp;Tottori Plant &nbsp;&nbsp;Saihaku-gun, Tottori Pref. &nbsp;&nbsp;Anjo Branch &nbsp;&nbsp;Anjo City, Aichi Pref. &nbsp;&nbsp; &nbsp;&nbsp;Kumamoto Plant &nbsp;&nbsp;Aso City, Kumamoto Pref. &nbsp;&nbsp;Nagoya Branch &nbsp;&nbsp;Nagoya City, Aichi Pref. &nbsp;&nbsp; &nbsp;&nbsp;Shonan R&D Center &nbsp;&nbsp;Fujisawa City, Kanagawa Pref. Note:From April 1, 2026, the Nagoya Branch was merged with the Anjo Branch. <br>10 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Subsidiaries**<br> &nbsp;&nbsp; &nbsp;&nbsp;**Company** &nbsp;&nbsp;**Business place** &nbsp;&nbsp;**Location** &nbsp;&nbsp;Seal business &nbsp;&nbsp;Unimatec Co., Ltd. &nbsp;&nbsp;Kita Ibaraki Plant &nbsp;&nbsp;Kita Ibaraki City, Ibaraki Pref. &nbsp;&nbsp;NOK Elastomers Processing Co., Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Kama City, Fukuoka Pref. &nbsp;&nbsp;NOK FUGAKU ENGINEERING Co., Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Kikugawa City, Shizuoka Pref. &nbsp;&nbsp;Saga NOK Corporation &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Ureshino City, Saga Pref. &nbsp;&nbsp;Thai NOK Co., Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Chonburi, Thailand &nbsp;&nbsp;Wuxi NOK-Freudenberg Oilseal Co., Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Wuxi City, Jiangsu, China &nbsp;&nbsp;NOK Asia Co., Pte. Ltd. &nbsp;&nbsp;Head office &nbsp;&nbsp;Singapore &nbsp;&nbsp;NOK Industrial Sales Corporation &nbsp;&nbsp;Head office and sales office &nbsp;&nbsp;Shinjuku Ward, Tokyo &nbsp;&nbsp;NOK-Freudenberg Group Sales (China) Co., Ltd. &nbsp;&nbsp;Head office and sales office &nbsp;&nbsp;Shanghai City, China &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;MEKTEC CORPORATION &nbsp;&nbsp; Head office<br> Ushiku Plant<br> &nbsp;&nbsp; Minato Ward, Tokyo<br> Ushiku City, Ibaraki Pref.<br> Mektec Manufacturing Corporation (Taiwan) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Kaohsiung City, Taiwan &nbsp;&nbsp;Mektec Manufacturing Corporation (Thailand) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Ayutthaya, Thailand &nbsp;&nbsp;Mektec Manufacturing Corporation (Zhuhai) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Zhuhai City, Guangdong, China &nbsp;&nbsp;Mektec Manufacturing Corporation (Suzhou) &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Suzhou City, Jiangsu, China &nbsp;&nbsp;Mektec Manufacturing Corporation (Vietnam) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Hung Yen Province, Vietnam &nbsp;&nbsp;Mektec Precision Component (Thailand) Ltd. &nbsp;&nbsp;Head office and factory &nbsp;&nbsp;Ayutthaya, Thailand &nbsp;&nbsp;Mektec Corporation (Hong Kong) Ltd. &nbsp;&nbsp;Head office and sales office &nbsp;&nbsp;Hong Kong, China &nbsp;&nbsp;Other businesses &nbsp;&nbsp;NOK Klüber Co., Ltd. &nbsp;&nbsp;Kita Ibaraki Plant &nbsp;&nbsp;Kita Ibaraki City, Ibaraki Pref. Notes: 1.A transfer of all shares in SYNZTEC Co., Ltd. was carried out on January 30, 2026, and SYNZTEC Co., Ltd. has been removed because it is no longer a subsidiary of the Company. 2.On July 1, 2025, Kansai NOK Hanbai Co., Ltd. carried out an absorption-type merger with Kanto NOK Hanbai Co., Ltd. as the surviving company, and on the same date changed its trade name to NOK Industrial Sales Corporation. 3.On April 1, 2026, Saga NOK Corporation changed its trade name to NOK Kyushu Corporation and relocated its head office to Aso City, Kumamoto Prefecture. Additionally, Mektec Precision Component (Thailand) Ltd. changed its trade name to NOK Precision Component (Thailand) Ltd. <br>11 <br>**(7) Employee Status** (as of March 31, 2026)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Employment of the NOK Group**<br> &nbsp;&nbsp;**Business segment** &nbsp;&nbsp;**Number of employees** &nbsp;&nbsp;**Change from the end of previous term** &nbsp;&nbsp;Seal business &nbsp;&nbsp;20,093 (1553) &nbsp;&nbsp;-111 (-77) &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;16,260 (622) &nbsp;&nbsp;+549 (+154) &nbsp;&nbsp;Other businesses &nbsp;&nbsp;302 (164) &nbsp;&nbsp;-1,741 (-149) &nbsp;&nbsp;Total &nbsp;&nbsp;36,655 (2339) &nbsp;&nbsp;-1,303 (-72) Notes: 1.The number of employees refers to the number of people employed by the NOK Group, excluding part-time workers and temporary workers. Figures in parentheses are the average number of part-time workers and temporary workers on an annual basis. 2.On January 30, 2026, all shares in SYNZTEC Co., Ltd. were transferred, and because it is no longer a subsidiary of the Company, the number of employees in "Other businesses" decreased largely. <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Employment of the Company**<br> &nbsp;&nbsp;**Business segment** &nbsp;&nbsp;**Number of employees** &nbsp;&nbsp;**Change from the end of previous term** &nbsp;&nbsp;Seal business &nbsp;&nbsp;3,076 (407) &nbsp;&nbsp;-70 (+4) &nbsp;&nbsp;Electronic Product business &nbsp;&nbsp;59 (7) &nbsp;&nbsp;-1 (±0) &nbsp;&nbsp;Other businesses &nbsp;&nbsp;18 (4) &nbsp;&nbsp;-27 (-3) &nbsp;&nbsp;Total &nbsp;&nbsp;3,153 (418) &nbsp;&nbsp;-98 (+1) <br> &nbsp;&nbsp;**Average age** &nbsp;&nbsp;**Average length of service** &nbsp;&nbsp;42.3 years old &nbsp;&nbsp;19.3 years Note:The number of employees refers to the number of people employed by the Company, excluding part-time workers and temporary workers. Figures in parentheses are the average number of part-time workers and temporary workers on an annual basis. <br> **(8) Major Lenders to the Company (as of March 31, 2026)**<br>&nbsp;&nbsp;**Lenders** &nbsp;&nbsp; **Borrowings**<br> **(Millions of yen)**<br> &nbsp;&nbsp;Sumitomo Mitsui Banking Corp. &nbsp;&nbsp;33,095 &nbsp;&nbsp;Mizuho Bank, Ltd. &nbsp;&nbsp;18,945 &nbsp;&nbsp;MUFG, Bank, Ltd. &nbsp;&nbsp;7,891 &nbsp;&nbsp;The Dai-ichi Life Insurance Company, Ltd. &nbsp;&nbsp;553 &nbsp;&nbsp;Sumitomo Mitsui Trust Bank, Ltd. &nbsp;&nbsp;524 <br>12 <br>**2. Outline of the Company**<br> &nbsp;&nbsp;&nbsp;&nbsp;**(1) Status of Stock** (as of March 31, 2026)<br>&nbsp;&nbsp;&nbsp;&nbsp;**(i) Total number of shares authorized to be issued:** &nbsp;&nbsp;**600,000,000 shares** &nbsp;&nbsp;&nbsp;&nbsp;**(ii) Total number of shares issued:** &nbsp;&nbsp;**160,903,090 shares** &nbsp;&nbsp;&nbsp;&nbsp;**(iii) Number of shareholders:** &nbsp;&nbsp; **16,984**<br> **(an increase of 2,561 year on year)**<br> &nbsp;&nbsp;&nbsp;&nbsp;**(iv) Major shareholders**<br> &nbsp;&nbsp;**Shareholder** &nbsp;&nbsp; **Number of**<br> **shares held**<br> **(thousands)**<br> &nbsp;&nbsp;**Ratio of shares**<br> **held (%)**<br> &nbsp;&nbsp;Freudenberg SE &nbsp;&nbsp;43,457 &nbsp;&nbsp;27.01 &nbsp;&nbsp;The Master Trust Bank of Japan, Ltd. (Trust account) &nbsp;&nbsp;13,274 &nbsp;&nbsp;8.25 &nbsp;&nbsp;Seiwa Jisho Co., Ltd. &nbsp;&nbsp;8,773 &nbsp;&nbsp;5.45 &nbsp;&nbsp;The Dai-ichi Life Insurance Company, Ltd. &nbsp;&nbsp;8,000 &nbsp;&nbsp;4.97 &nbsp;&nbsp;Custody Bank of Japan, Ltd. (Trust account) &nbsp;&nbsp;7,184 &nbsp;&nbsp;4.47 &nbsp;&nbsp;NOK Stock Ownership Association &nbsp;&nbsp;3,880 &nbsp;&nbsp;2.41 &nbsp;&nbsp;Sumitomo Mitsui Banking Corp. &nbsp;&nbsp;3,203 &nbsp;&nbsp;1.99 &nbsp;&nbsp;SMBC Trust Bank Ltd. (Sumitomo Mitsui Banking Corporation retirement benefit trust account) &nbsp;&nbsp;3,000 &nbsp;&nbsp;1.86 &nbsp;&nbsp;STATE STREET BANK AND TRUST COMPANY 505001 &nbsp;&nbsp;2,880 &nbsp;&nbsp;1.79 &nbsp;&nbsp;Sompo Japan Insurance Inc. &nbsp;&nbsp;2,125 &nbsp;&nbsp;1.32 Note:For the basis of the calculation of "ratio of shares held" above, the Company's treasury stock (233 shares) is excluded from the total number of shares issued. The Company's treasury stock does not include 1,583,307 of the Company's shares held in the Board Incentive Plan (BIP) Trust or 383,100 of the Company's shares held in the Employee Stock Ownership Plan (ESOP). ![](image_008.jpg) <br>13 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v) State of shares granted to Board Members of the Company as compensation for performance of duties during this fiscal year**<br> No shares were granted to Board Members of the Company as compensation for performance of duties during this fiscal year. Details about remuneration based on the Company's shares are provided in (2) Board Members of the Company below.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi) Other important matters related to stock**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Retirement of treasury stock**<br> Based on a resolution of a Board of Directors meeting held on November 10, 2025, treasury stock was retired as shown below.<br> &nbsp;&nbsp;&nbsp;&nbsp;Type of shares retired &nbsp;&nbsp;Common shares of the Company &nbsp;&nbsp;&nbsp;&nbsp;Number of shares retired &nbsp;&nbsp; 7,435,847 shares<br> (Percentage of all issued shares<br> prior to retirement: 4.29%)<br> &nbsp;&nbsp;&nbsp;&nbsp;Number of issued shares following retirement &nbsp;&nbsp; 165,702,690 shares<br> (including treasury stock)<br> &nbsp;&nbsp;&nbsp;&nbsp;Retirement date &nbsp;&nbsp;November 28, 2025 <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Retirement of treasury stock**<br> Based on a resolution of a Board of Directors meeting held on February 5, 2026, treasury stock was retired as shown below.<br> &nbsp;&nbsp;&nbsp;&nbsp;Type of shares retired &nbsp;&nbsp;Common shares of the Company &nbsp;&nbsp;&nbsp;&nbsp;Number of shares retired &nbsp;&nbsp; 4,799,600 shares<br> (Percentage of all issued shares prior to retirement: 2.90%)<br> &nbsp;&nbsp;&nbsp;&nbsp;Number of issued shares following retirement &nbsp;&nbsp; 160,903,090 shares<br> (including treasury stock)<br> &nbsp;&nbsp;&nbsp;&nbsp;Retirement date &nbsp;&nbsp;February 27, 2026 <br>14 <br>&nbsp;&nbsp;&nbsp;&nbsp;**(2) Board Members of the Company**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Directors** (as of March 31, 2026)<br> &nbsp;&nbsp;**Position** &nbsp;&nbsp;**Name** &nbsp;&nbsp;**Positions, responsibilities or significant concurrent positions** &nbsp;&nbsp;Director, Chief Executive Officer &nbsp;&nbsp;Masao Tsuru &nbsp;&nbsp;Group Chief Executive Officer &nbsp;&nbsp;Director, Senior Executive Officer &nbsp;&nbsp;Chikashi Takeda &nbsp;&nbsp;Group Chief Financial Officer &nbsp;&nbsp;Director, Senior Executive Officer &nbsp;&nbsp;Akira Watanabe &nbsp;&nbsp;Special Projects &nbsp;&nbsp;Director, Senior Executive Officer &nbsp;&nbsp;Junichi Orita &nbsp;&nbsp;Sealing Solution Chief Executive Officer &nbsp;&nbsp;Director, Senior Executive Officer &nbsp;&nbsp;Yuki Sato &nbsp;&nbsp;Group Chief Technology Officer, Head, NOK Group R&D &nbsp;&nbsp;Director (Full-time Audit & Supervisory Committee Member) &nbsp;&nbsp;Hideki Watanabe &nbsp;&nbsp;Chairperson of the Audit & Supervisory Committee &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Makoto Fujioka &nbsp;&nbsp;Chairperson of the Nomination and Remuneration Advisory Committee &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Naoki Shimada &nbsp;&nbsp;CEO, P&E Directions, Inc. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Motoko Imada &nbsp;&nbsp;CEO, Mediagene Inc. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Atsushi Kajitani &nbsp;&nbsp;Lawyer Notes: 1.Mr. Masao Tsuru is the Representative Director. 2.Mr. Chikashi Takeda was newly elected and assumed the position of Director who is not an Audit & Supervisory Committee Member at the 119th Annual Shareholders' Meeting held on June 26, 2025. 3.Director positions and responsibilities changed as follows on June 26, 2025. &nbsp;&nbsp;**Name** &nbsp;&nbsp;**New Position** &nbsp;&nbsp;**Former Position** &nbsp;&nbsp;Chikashi Takeda &nbsp;&nbsp;Director, Senior Executive Officer,<br> Group Chief Financial Officer &nbsp;&nbsp;Senior Executive Officer,<br> Financial Strategy &nbsp;&nbsp;Akira Watanabe &nbsp;&nbsp;Director, Senior Executive Officer<br> Special Projects &nbsp;&nbsp;Director, Senior Executive Officer,<br> Group Chief Financial Officer 4.Directors (Audit & Supervisory Committee Members) Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi Kajitani serve as External Directors. 5.The Company has submitted notification to the Tokyo Stock Exchange that each External Director has been designated as an independent director as stipulated in the regulations of the aforementioned exchange. 6.To improve the effectiveness of audits while strengthening audit and supervisory functions through enhanced information gathering and full coordination with the internal audit department and other divisions, we have appointed Mr. Hideki Watanabe as full-time Audit & Supervisory Committee Member. 7.Director (Audit & Supervisory Committee Member) Mr. Hideki Watanabe has work experience in finance & accounting division and has considerable expertise in finance and accounting. 8.The Company has entered into a directors and officers liability insurance (D&O insurance) policy as provided for in Article 430-3, paragraph 1 of the Companies Act, in which the insured persons are the Directors, Corporate Auditors and Operating Officers of the Company and its subsidiaries (for overseas subsidiaries, the insured persons are limited to those seconded from Japan). The entire amount of insurance premiums, including those for special clauses, are borne by the Company, and there are no insurance premiums actually borne by the insureds. The insurance policy covers losses that may arise from the insured's assumption of liability incurred in the course of the performance of duties as Directors, Corporate Auditors, etc., or receipt of claims pertaining to the pursuit of such liability. Provided, however, that there are certain reasons for coverage exclusion that, for example, exclude losses arising from any act that the person carried out while being aware that it violated laws and regulations. Also, the deductible clause is set in the policy, whereby losses within such deductible are not covered by the policy. 9.In addition to the above, significant concurrent positions held by Directors are as follows. <br> 15 <br>&nbsp;&nbsp;**Name** &nbsp;&nbsp;**Significant concurrent positions** &nbsp;&nbsp;Masao Tsuru &nbsp;&nbsp; Representative Director, Chairman, MEKTEC CORPORATION<br> Representative Director, Chairman, NOK Klüber Co., Ltd.<br> Representative Director, Chairman, Unimatec Co., Ltd.<br> Vice Chairman & Director, NOK-Freudenberg Singapore Pte. Ltd.<br> Representative Director, Seiwa Jisho Co., Ltd.<br> &nbsp;&nbsp;Junichi Orita &nbsp;&nbsp; Chairman & Director, Wuxi NOK-Freudenberg Oilseal Co., Ltd.<br> Chairman & Director, Changchun NOK-Freudenberg Oilseal Co., Ltd.<br> Chairman & Director, Taicang NOK-Freudenberg Sealing Products Co., Ltd.<br> &nbsp;&nbsp;Makoto Fujioka &nbsp;&nbsp;Outside Director, Nippon Paper Industries Co., Ltd. &nbsp;&nbsp;Naoki Shimada &nbsp;&nbsp; Outside Director, Japan Business Systems, Inc.<br> External Director, RENOVA, Inc.<br> &nbsp;&nbsp;Motoko Imada &nbsp;&nbsp;Director, TNL Mediagene &nbsp;&nbsp;Atsushi Kajitani &nbsp;&nbsp;Outside Director, DMS Inc. <br>16 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Matters concerning remuneration, etc. to Directors**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Policies on remuneration to Directors**<br> As described below, the Company has established a policy for deciding the contents of remuneration, etc. for Directors, and based on this policy, within the range of the total amount decided by the Annual Shareholders' Meeting, remuneration for Directors who are not Audit & Supervisory Committee Members is decided by the Board of Directors, while remuneration for Directors who are Audit & Supervisory Committee Members is decided by a meeting of the Directors who are Audit & Supervisory Committee Members.<br> The Company has established the Nomination and Remuneration Advisory Committee as an advisory body to the Board of Directors for the purpose of addressing important management issues, including enhancement of objectivity and transparency in matters related to nomination and remuneration of corporate officers. It provides periodical confirmation on particularly important matters such as nomination of corporate officers and remuneration, etc. of Directors in addition to providing the Board of Directors with appropriate advice. The Nomination and Remuneration Advisory Committee is a committee body whose chairperson and primary constituent members are External Directors. It provides confirmation and advice relating to important management issues such as nomination and remuneration.<br> The Company's policies on remuneration to Directors are as follows:<br> ●Methods for determining policies The policies on remuneration to Directors who are not Audit & Supervisory Committee Members are determined at a meeting of the Board of Directors based on the advice of the Nomination and Remuneration Advisory Committee. The policies on remuneration to Directors who are Audit & Supervisory Committee Members are decided by a meeting of the Directors who are Audit & Supervisory Committee Members.<br> ●Basic policies In order to improve the medium- and long-term corporate value of the NOK Group and increase stakeholder satisfaction, we believe it is necessary to promote the motivation to achieve targets among management, including the Directors of core companies in the NOK Group, through their remuneration. For this purpose, for the management of core companies in the NOK Group, we have introduced share-based remuneration that varies according to the level of KPI achievement, which is a priority implementation measure in the Medium-Term Management Plan of the NOK Group. Together with monetary remuneration that varies depending on the level of achievement of performance targets in a single fiscal year, this is intended to improve medium- and long-term corporate value and increase stakeholder satisfaction.<br> ●Policies for determining amounts or calculation methods for individual remuneration, etc. Remuneration to Directors who are not Audit & Supervisory Committee Members consists of a fixed remuneration portion, a remuneration portion for short-term expected achievements and a remuneration portion for long-term expected achievements, with consideration given to Directors' responsibilities to improve business results each fiscal year and to increase the corporate value from a medium- to long-term perspective. The Company classifies the remuneration in three types: (1) basic remuneration (monetary), (2) short-term performance-linked remuneration (monetary), and (3) medium- to long-term performance-linked remuneration (shares). When the remunerations for short-term and long-term expected individual achievements are the standard amounts, levels are established in the total amount of remuneration using ratios within the range of approximately 1 to 1.9 according to the individual's official responsibilities.<br> On the other hand, because Directors who are Audit & Supervisory Committee Members are responsible for audits and supervision of the conduct of official duties throughout the NOK Group, based on their positions, they receive only basic remuneration (monetary) according to their roles.<br> In addition, with respect to the payment of remuneration, the remuneration may be temporarily reduced or not paid in case of a sudden deterioration in business performance or a situation that damages corporate value.<br> 17 <br>●Policies for determining the components of performance-linked remuneration, etc.-related performance indicators, etc., and calculation methods of amounts and/or numbers therein In accordance with the bonus provisions and share delivery provisions approved by the Board of Directors, performance-linked remuneration is paid within a range from 0% to 200% according to the level of achievement of the evaluation items.<br> The evaluation indicators related to short-term performance-linked remuneration utilize financial indicators aimed at achieving both expansion of business scale and ensuring profit levels (net sales and operating income) and individual evaluations which appropriately apply individual results. The amount to be paid is decided with consideration for other matters that may have an impact on business performance (natural disasters, extraordinary income and loss, etc.). The evaluation weighting of each indicator is [sales: operating income: individual evaluation] = [15%:35%:50%] ([30%:70%:0%] for the President and Representative Director). In order to ensure objectivity and transparency, target settings and evaluations for individual evaluations are decided by the Board of Directors based on a report from the Nomination and Remuneration Advisory Committee.<br> For indicators related to medium- to long-term performance-linked remuneration, for reasons of increasing the overall profitability of the NOK Group and also carrying out management with consideration for ESG, ROA is used as the financial indicator and the FTSE Russell's ESG Ratings are used as the non-financial indicator. The evaluation weighting of these indicators is [90%:10%].<br> ●Policies for determining the details of non-monetary remuneration, etc., and calculation methods of amounts and/or numbers therein Regarding the medium- to long-term performance-linked remuneration, the Company utilizes a Board Incentive Plan (BIP) trust scheme in order to increase the motivation of Directors to contribute to improving business results and increasing corporate value of the NOK Group over the medium to long term. For the eligible Directors (excluding Directors who are Audit & Supervisory Committee Members, External Directors, and those who are non-residents of Japan), and Operating Officers (excluding those who are non-residents of Japan), this plan delivers or grants the number of the Company's shares and the amount of money equivalent to the converted value of the Company's shares (the "Company's Shares, etc.") corresponding to the number of points calculated according to the position and time in office, the level of achievement of medium-term targets, etc.<br> ●Policies for determining the proportion (ratio) of amounts for individual remuneration, etc. for each type In consideration for the fact that the Company manufactures and sells components for automobiles, electronic equipment, and other products, and performance is highly susceptible to trends in the industry, short-term performance-linked remuneration and medium- to long-term performance-linked remuneration of Directors have been set at 20% and 20% of total remuneration, respectively.<br> ●Policies for determining the timing and conditions for providing remuneration, etc. For the basic remuneration, the monthly amount for one year starting in the month following the annual shareholders' meeting is determined at a meeting of the Board of Directors that is held after the annual shareholders' meeting, and a fixed amount is paid on a certain date every month. For the short-term performance-linked remuneration, the amount is determined at a meeting of the Board of Directors in line with "Policies for determining the components of performance-linked remuneration, etc.-related performance indicators, etc., and calculation methods of amounts and/or numbers therein" above according to the year-end financial results, and is paid prior to the annual shareholders' meeting for the settlement of accounts. <br> 18 <br>For the medium- to long-term performance-linked remuneration, fixed points calculated according to the position and time in office and performance-linked points for the purpose of increasing the incentives for achieving the targets in the Medium-Term Management Plan, etc. are granted at a certain time each year. In principle, when the Medium-Term Management Plan ends, the Company's Shares, etc. corresponding to the accumulated number of fixed points and the Company's Shares, etc. corresponding to the number calculated by multiplying the accumulated number of performance-linked points by the performance-linked coefficient according to the level of achievement of the medium-term targets are delivered or provided.<br> ●Methods for determining the details of individual remuneration, etc. The amounts of remuneration, etc. for individual Directors who are not Audit & Supervisory Committee Members or the calculation methods for those amounts are determined at a meeting of the Board of Directors when the proposal regarding corporate officer remuneration is presented to the Board of Directors by the Director and Chief Executive Officer, who serves as chairperson of the Board of Directors, based on advice from the Nomination and Remuneration Advisory Committee.<br> The amounts of remuneration, etc. for Directors who are Audit & Supervisory Committee Members are decided by a meeting of the Directors who are Audit & Supervisory Committee Members.<br> For the Directors' individual remuneration, etc., for the current fiscal year, the Board of Directors has confirmed that the method for determining the details of remuneration, etc., and the details of determined remuneration, etc., are consistent with the determination policies resolved by the Board of Directors and the advice given by the Nomination and Remuneration Advisory Committee is respected, determining such remuneration, etc., are in accordance with the said determination policies.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Matters concerning resolution of the Annual Shareholders' Meeting related to remuneration, etc., to Directors**<br> For remuneration to the Company's Directors, it was resolved that the maximum amount of remuneration, etc., to the Directors who are not Audit & Supervisory Committee Members was 450 million yen per year (including a maximum of 20 million yen per year for External Directors and excluding employee salaries) and the maximum amount of remuneration, etc. to the Directors who are Audit & Supervisory Committee Members was 90 million yen per year at the 118th Annual Shareholders' Meeting held on June 26, 2024. The number of Directors who are not Audit & Supervisory Committee Members at the end of such shareholders' meeting was four (4) (including zero (0) External Directors) and that of Directors who are Audit & Supervisory Committee Members was five (5) (including four (4) External Directors).<br> Additionally, the 118th Annual Shareholders' Meeting held on June 26, 2024 passed a resolution to provide additional performance-linked remuneration based on the Company's shares to Directors, etc. (excluding Directors who are Audit & Supervisory Committee Members, External Directors, and those who are non-residents of Japan), with upper limits of 345 million yen per fiscal year contributed by the Company to a trust and 320,000 shares granted by the Company per fiscal year. The number of eligible Directors at the conclusion of that annual shareholders' meeting was four (4).<br>19 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Total sum of remuneration, etc. paid during the current fiscal year**<br> &nbsp;&nbsp;**Classification** &nbsp;&nbsp;**Total sum of remuneration, etc. (Millions of yen)** &nbsp;&nbsp;**Total sum of remuneration, etc. by type<br> (Millions of yen)** &nbsp;&nbsp;**Number of Directors and Corporate Auditors who receive remuneration (persons)** &nbsp;&nbsp;**Basic remuneration (monetary)** &nbsp;&nbsp;**Performance-linked remuneration** &nbsp;&nbsp;**Short-term (monetary)** &nbsp;&nbsp;**Medium- and long-term (shares, etc.)** &nbsp;&nbsp; Directors (excluding Audit & Supervisory Committee Members)<br> (External Directors among the above)<br> &nbsp;&nbsp; 370<br> (–)<br> &nbsp;&nbsp; 217<br> (–)<br> &nbsp;&nbsp; 80<br> (–)<br> &nbsp;&nbsp; 72<br> (–)<br> &nbsp;&nbsp; 5<br> (–)<br> &nbsp;&nbsp; Directors (Audit & Supervisory Committee Members)<br> (External Directors among the above)<br> &nbsp;&nbsp; 65<br> (40)<br> &nbsp;&nbsp; 65<br> (40)<br> &nbsp;&nbsp; –<br> (–)<br> &nbsp;&nbsp; –<br> (–)<br> &nbsp;&nbsp; 5<br> (4)<br> &nbsp;&nbsp; Total<br> (External officers among the above)<br> &nbsp;&nbsp; 435<br> (40)<br> &nbsp;&nbsp; 282<br> (40)<br> &nbsp;&nbsp; 80<br> (–)<br> &nbsp;&nbsp; 72<br> (–)<br> &nbsp;&nbsp; 10<br> (4)<br> Note:Details about the provision of shares and other medium- to long-term performance-linked remuneration during this fiscal year are provided in (1) Status of Stock above. The total amount of medium- to long-term performance-linked remuneration includes the amount of recorded expenses pertaining to the number of shares and other points granted during the fiscal year to the BIP trust; it is non-monetary remuneration. <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii) Summary of limited liability contract**<br> Under the provisions of Article 427, Paragraph 1 of the Companies Act, the Company entered into a contract with each External Director so as to limit their liability for damage as provided for in Article 423, Paragraph 1 of the Companies Act. The limit of liability for damage under this contract is the amount set forth by the laws and regulations.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv) Matters concerning external officers**<br> **(a)** **Relationships between the Company and firms at which directors hold significant concurrent positions** Mediagene Inc., where Director (Audit & Supervisory Committee Member) Ms. Motoko Imada holds a concurrent position, is a business partner of the Company, including for outsourcing advertising production. However, the annual transaction amounts account for less than 1% of the consolidated net sales of the Company and of Mediagene Inc. and its group companies, and there is no special relationship that would affect the independence of the External Director.<br> There is no relationship requiring disclosure between the Company and any other companies in which the other External Directors hold concurrent positions.<br>20 <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Major activities during the term**<br> &nbsp;&nbsp;**Position** &nbsp;&nbsp;**Name** &nbsp;&nbsp;**Major activities** &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Makoto Fujioka &nbsp;&nbsp;Has attended 17 out of 17 Board of Directors meetings and 12 out of 12 Audit & Supervisory Committee meetings held during the term, where he made necessary remarks on Items for Resolution. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Naoki Shimada &nbsp;&nbsp;Has attended 17 out of 17 Board of Directors meetings and 12 out of 12 Audit & Supervisory Committee meetings held during the term, where he made necessary remarks on Items for Resolution. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Motoko Imada &nbsp;&nbsp;Has attended 17 out of 17 Board of Directors meetings and 12 out of 12 Audit & Supervisory Committee meetings held during the term, where she made necessary remarks on Items for Resolution. &nbsp;&nbsp;Director (Audit & Supervisory Committee Member) &nbsp;&nbsp;Atsushi Kajitani &nbsp;&nbsp;Has attended 17 out of 17 Board of Directors meetings and 12 out of 12 Audit & Supervisory Committee meetings held during the term, where she made necessary remarks on Items for Resolution. Note:In addition to the number of Board of Directors meetings in the table above, there was one (1) written resolution considered to have passed at a Board of Directors meeting under Article 370 of the Companies Act and the Articles of Incorporation of the Company. <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Overview of the job duties performed in connection with the roles expected for External Directors**<br> At the Board of Directors meetings, Mr. Makoto Fujioka, a Director (Audit & Supervisory Committee Member), actively expresses his opinions focusing on matters related to judgment for management strategies, corporate compliance, etc., Mr. Naoki Shimada, a Director (Audit & Supervisory Committee Member), does so on the overall management of the Company from his extensive experience in corporate management, Ms. Motoko Imada, a Director (Audit & Supervisory Committee Member), does so from the perspective that includes strategic external policies and DE&I initiatives based on her experience in global corporate management, and Mr. Atsushi Kajitani, a Director (Audit & Supervisory Committee Member), does so based on his extensive experience and wide-ranging knowledge in corporate legal affairs as a lawyer. Thus, they have performed their roles in a proper manner to ensure validity and appropriateness of decision making.<br> Furthermore, as members of the Nomination and Remuneration Advisory Committee, which is an advisory body to the Board of Directors handling matters related to nomination of and remuneration to the corporate officers, all of the above persons attended five (5) out of five (5) meetings held during the current fiscal year, and have carried out their supervisory functions in the course of selection of candidates for the Company's corporate officers, as well as determination of remuneration, etc. to the corporate officers, from an objective and neutral standpoint. The committee chairperson is Mr. Makoto Fujioka.<br>21 <br>&nbsp;&nbsp;&nbsp;&nbsp;(3) **Independent Auditor**<br> **(i)** **Name:** Nihombashi Corporation Certified Public Accountants **(ii)** **Amount of remuneration** (Millions of yen)<br> &nbsp;&nbsp; &nbsp;&nbsp;**Amount of payment** &nbsp;&nbsp;Amount to be paid by the Company as remuneration for duties stipulated in Article 2, Paragraph 1 of the Certified Public Accountants Act &nbsp;&nbsp;46 &nbsp;&nbsp;Amount to be paid by the Company and its subsidiaries to the Independent Auditor as financial benefit, such as monetary reward, etc. &nbsp;&nbsp;79 Notes: 1.In the audit contracts between the Company and its Independent Auditor, the fees for audits conducted under the Companies Act and under the Financial Instruments and Exchange Act are not clearly differentiated. As they cannot be effectively separated, the accounting audit fees for duties stipulated in Article 2, Paragraph 1 of the Certified Public Accountants Act for the year under review show the total. 2.Among the Company's major subsidiaries, those located outside Japan are audited by either certified public accountants not employed by Nihombashi Corporation Certified Public Accountants or audit firms other than said corporation. 3.In accordance with the Practical Guidelines for Cooperation with Independent Auditors published by the Japan Audit & Supervisory Board Members Association, the Audit & Supervisory Committee checked on and examined the audit plans of the Independent Auditor, the status of implementation of audits and the basis for calculation of the remuneration estimate, etc. and consented to the remuneration, etc. of the Independent Auditor. <br> **(iii)** **Policy concerning decision regarding dismissal and non-reappointment on Independent Auditor** Where there is anything that obstructs the fulfillment of Independent Auditor's duties, or where the Audit & Supervisory Committee considers it necessary, the Audit & Supervisory Committee will decide details of a proposal on the dismissal or non-reappointment of the Independent Auditor to be presented to a shareholders' meeting.<br> The Audit & Supervisory Committee will dismiss the Independent Auditor with the unanimous consent of all Audit & Supervisory Committee Members in cases where the Independent Auditor is deemed as having fallen under the provisions of each item of Article 340, Paragraph 1 of the Companies Act. In such cases, one Audit & Supervisory Committee Member appointed by the Audit & Supervisory Committee will report the execution of dismissal and the reasons at the first shareholders' meeting following the dismissal.<br>"System for Ensuring Properness of Operations" is not included in the physical copies of electronically provided information sent to shareholders who request them, under laws and regulations and the Articles of Incorporation of the Company.<br>All amounts are rounded down to the nearest million yen, and the number of shares is rounded down to the nearest 1,000 shares. Percentages are rounded to the nearest whole unit.<br>22 <br>**<u>CONSOLIDATED BALANCE SHEET</u>**<br> (As of March 31, 2026)<br> (Millions of yen)<br> &nbsp;&nbsp;**Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Reference)**<br> &nbsp;&nbsp;**Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Reference)**<br> &nbsp;&nbsp;**<u>ASSETS</u>** &nbsp;&nbsp;**951,650** &nbsp;&nbsp;**898,667** &nbsp;&nbsp;**<u>LIABILITIES</u>** &nbsp;&nbsp;**281,379** &nbsp;&nbsp;**275,245** &nbsp;&nbsp;**CURRENT ASSETS** &nbsp;&nbsp;**450,514** &nbsp;&nbsp;**420,723** &nbsp;&nbsp;**CURRENT LIABILITIES** &nbsp;&nbsp;**200,248** &nbsp;&nbsp;**186,251** &nbsp;&nbsp;&nbsp;&nbsp;Cash and deposits &nbsp;&nbsp;156,798 &nbsp;&nbsp;136,762 &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade &nbsp;&nbsp;64,955 &nbsp;&nbsp;61,028 &nbsp;&nbsp;&nbsp;&nbsp;Notes and accounts receivable - trade &nbsp;&nbsp;143,658 &nbsp;&nbsp;142,193 &nbsp;&nbsp;&nbsp;&nbsp;Short-term loans payable &nbsp;&nbsp;48,169 &nbsp;&nbsp;44,067 &nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded monetary claims &nbsp;&nbsp;19,954 &nbsp;&nbsp;20,719 &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable &nbsp;&nbsp;13,242 &nbsp;&nbsp;3,750 &nbsp;&nbsp;&nbsp;&nbsp;Merchandise and finished goods &nbsp;&nbsp;45,206 &nbsp;&nbsp;41,316 &nbsp;&nbsp;&nbsp;&nbsp;Provision for bonuses &nbsp;&nbsp;11,653 &nbsp;&nbsp;11,805 &nbsp;&nbsp;&nbsp;&nbsp;Work in process &nbsp;&nbsp;43,635 &nbsp;&nbsp;38,523 &nbsp;&nbsp;&nbsp;&nbsp;Deposits received from employees &nbsp;&nbsp;15,445 &nbsp;&nbsp;15,857 &nbsp;&nbsp;&nbsp;&nbsp;Raw materials and supplies &nbsp;&nbsp;28,345 &nbsp;&nbsp;26,235 &nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) &nbsp;&nbsp;822 &nbsp;&nbsp;– &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;13,161 &nbsp;&nbsp;15,236 &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;45,958 &nbsp;&nbsp;49,742 &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts &nbsp;&nbsp;(246) &nbsp;&nbsp;(263) &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; **NONCURRENT LIABILITIES** &nbsp;&nbsp;**81,131** &nbsp;&nbsp;**88,994** &nbsp;&nbsp;**NONCURRENT ASSETS** &nbsp;&nbsp;**501,136** &nbsp;&nbsp;**477,943** &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans payable &nbsp;&nbsp;14,364 &nbsp;&nbsp;17,623 **Property, plant and equipment** &nbsp;&nbsp;**249,009** &nbsp;&nbsp;**245,320** &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities &nbsp;&nbsp;25,071 &nbsp;&nbsp;20,975 &nbsp;&nbsp;&nbsp;&nbsp;Buildings and structures &nbsp;&nbsp;90,135 &nbsp;&nbsp;91,897 &nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit liabilities &nbsp;&nbsp;34,028 &nbsp;&nbsp;41,140 &nbsp;&nbsp;&nbsp;&nbsp;Machinery, equipment and vehicles &nbsp;&nbsp;100,183 &nbsp;&nbsp;97,007 &nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) &nbsp;&nbsp;– &nbsp;&nbsp;506 &nbsp;&nbsp;&nbsp;&nbsp;Tools, furniture and fixtures &nbsp;&nbsp;20,125 &nbsp;&nbsp;18,616 &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;7,666 &nbsp;&nbsp;8,748 &nbsp;&nbsp;&nbsp;&nbsp;Land &nbsp;&nbsp;19,932 &nbsp;&nbsp;19,933 &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Lease assets &nbsp;&nbsp;1,968 &nbsp;&nbsp;2,299 &nbsp;&nbsp;**<u>NET ASSETS</u>** &nbsp;&nbsp;**670,270** &nbsp;&nbsp;**623,421** &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress &nbsp;&nbsp;16,663 &nbsp;&nbsp;15,565 **SHAREHOLDERS' EQUITY** &nbsp;&nbsp;**444,269** &nbsp;&nbsp;**431,846** &nbsp;&nbsp;**Intangible assets** &nbsp;&nbsp;**15,193** &nbsp;&nbsp;**14,719** &nbsp;&nbsp;**CAPITAL STOCK** &nbsp;&nbsp;**23,335** &nbsp;&nbsp;**23,335** &nbsp;&nbsp;&nbsp;&nbsp;Goodwill &nbsp;&nbsp;9,257 &nbsp;&nbsp;9,885 &nbsp;&nbsp;**CAPITAL SURPLUS** &nbsp;&nbsp;**27,717** &nbsp;&nbsp;**27,343** &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;5,936 &nbsp;&nbsp;4,834 &nbsp;&nbsp;**RETAINED EARNINGS** &nbsp;&nbsp;**395,769** &nbsp;&nbsp;**398,858** &nbsp;&nbsp;**Investments and other assets** &nbsp;&nbsp;**236,933** &nbsp;&nbsp;**217,903** &nbsp;&nbsp;**TREASURY STOCK** &nbsp;&nbsp;**(2553)** &nbsp;&nbsp;**(17691)** &nbsp;&nbsp;&nbsp;&nbsp;Investment securities &nbsp;&nbsp;152,928 &nbsp;&nbsp;162,144 **ACCUMULATED OTHER COMPREHENSIVE INCOME** &nbsp;&nbsp;**180,587** &nbsp;&nbsp;**147,159** &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans receivable from employees &nbsp;&nbsp;1,080 &nbsp;&nbsp;1,288 &nbsp;&nbsp;**VALUATION DIFFERENCE ON AVAILABLE-FOR-SALE SECURITIES** &nbsp;&nbsp;**46,993** &nbsp;&nbsp;**55,041** &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets &nbsp;&nbsp;6,037 &nbsp;&nbsp;6,794 &nbsp;&nbsp;**FOREIGN CURRENCY TRANSLATION ADJUSTMENT** &nbsp;&nbsp;**87,726** &nbsp;&nbsp;**66,295** &nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit asset &nbsp;&nbsp;37,738 &nbsp;&nbsp;14,927 &nbsp;&nbsp;**REMEASUREMENTS OF DEFINED BENEFIT PLANS** &nbsp;&nbsp;**45,867** &nbsp;&nbsp;**25,822** &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;39,268 &nbsp;&nbsp;32,888 &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts &nbsp;&nbsp;(121) &nbsp;&nbsp;(139) **NON-CONTROLLING INTERESTS** &nbsp;&nbsp;**45,413** &nbsp;&nbsp;**44,415** &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;**TOTAL** &nbsp;&nbsp;**951,650** &nbsp;&nbsp;**898,667** &nbsp;&nbsp;**TOTAL** &nbsp;&nbsp;**951,650** &nbsp;&nbsp;**898,667** Note: Figures are rounded down to the nearest million yen.<br>23 <br>**<u>CONSOLIDATED STATEMENT OF INCOME</u>**<br> (From April 1, 2025 to March 31, 2026)<br>(Millions of yen)<br> &nbsp;&nbsp;**Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Reference)**<br> &nbsp;&nbsp;Net Sales &nbsp;&nbsp; &nbsp;&nbsp;738,434 &nbsp;&nbsp; &nbsp;&nbsp;766,859 &nbsp;&nbsp;Cost of Sales &nbsp;&nbsp; &nbsp;&nbsp;607,087 &nbsp;&nbsp; &nbsp;&nbsp;630,808 &nbsp;&nbsp;&nbsp;**Gross Profit** &nbsp;&nbsp; &nbsp;&nbsp;**131,346** &nbsp;&nbsp; &nbsp;&nbsp;**136,051** &nbsp;&nbsp;Selling, General and Administrative Expenses &nbsp;&nbsp; &nbsp;&nbsp;98,356 &nbsp;&nbsp; &nbsp;&nbsp;98,786 &nbsp;&nbsp;&nbsp;**Operating Income** &nbsp;&nbsp; &nbsp;&nbsp;**32,990** &nbsp;&nbsp; &nbsp;&nbsp;**37,264** &nbsp;&nbsp;Non-operating Income &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Interest income &nbsp;&nbsp;1,132 &nbsp;&nbsp; &nbsp;&nbsp;1,443 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Dividend income &nbsp;&nbsp;3,609 &nbsp;&nbsp; &nbsp;&nbsp;3,387 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Foreign exchange gains &nbsp;&nbsp;4,072 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Share of profit of entities accounted for using equity method &nbsp;&nbsp;9,482 &nbsp;&nbsp; &nbsp;&nbsp;8,790 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Rent income &nbsp;&nbsp;866 &nbsp;&nbsp; &nbsp;&nbsp;880 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;3,481 &nbsp;&nbsp;22,645 &nbsp;&nbsp;3,486 &nbsp;&nbsp;17,988 &nbsp;&nbsp;Non-operating Expenses &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Interest expenses &nbsp;&nbsp;2,589 &nbsp;&nbsp; &nbsp;&nbsp;3,165 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Foreign exchange losses &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;2,027 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on valuation of derivatives &nbsp;&nbsp;1,530 &nbsp;&nbsp; &nbsp;&nbsp;1,123 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;1,680 &nbsp;&nbsp;5,799 &nbsp;&nbsp;878 &nbsp;&nbsp;7,194 &nbsp;&nbsp;&nbsp;**Ordinary Income** &nbsp;&nbsp; &nbsp;&nbsp;**49,835** &nbsp;&nbsp; &nbsp;&nbsp;**48,057** &nbsp;&nbsp;Extraordinary Income &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sales of noncurrent assets &nbsp;&nbsp;997 &nbsp;&nbsp; &nbsp;&nbsp;463 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sales of investment securities &nbsp;&nbsp;36,169 &nbsp;&nbsp; &nbsp;&nbsp;3,100 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on revision of retirement benefit plan &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;4,123 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other extraordinary income &nbsp;&nbsp;– &nbsp;&nbsp;37,167 &nbsp;&nbsp;8 &nbsp;&nbsp;7,696 &nbsp;&nbsp;Extraordinary Loss &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sales and retirement of noncurrent assets &nbsp;&nbsp;1,652 &nbsp;&nbsp; &nbsp;&nbsp;1,663 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Impairment loss &nbsp;&nbsp;1,477 &nbsp;&nbsp; &nbsp;&nbsp;2,092 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sale of shares of subsidiaries and associates &nbsp;&nbsp;9,376 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on disposal of inventories &nbsp;&nbsp;1,557 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Amortization of prior service cost &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;1,308 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;189 &nbsp;&nbsp;14,252 &nbsp;&nbsp;585 &nbsp;&nbsp;5,649 **Income before Income Taxes** &nbsp;&nbsp; &nbsp;&nbsp;**72,750** &nbsp;&nbsp; &nbsp;&nbsp;**50,104** Income taxes - current &nbsp;&nbsp;21,099 &nbsp;&nbsp; &nbsp;&nbsp;13,246 &nbsp;&nbsp; Income taxes - deferred &nbsp;&nbsp;661 &nbsp;&nbsp;21,761 &nbsp;&nbsp;1,694 &nbsp;&nbsp;14,941 **Net Income** &nbsp;&nbsp; &nbsp;&nbsp;**50,988** &nbsp;&nbsp; &nbsp;&nbsp;**35,163** Profit attributable to non-controlling interests &nbsp;&nbsp; &nbsp;&nbsp;4,649 &nbsp;&nbsp; &nbsp;&nbsp;4,843 **Profit (Loss) Attributable to Owners of Parent** &nbsp;&nbsp; &nbsp;&nbsp;**46,338** &nbsp;&nbsp; &nbsp;&nbsp;**30,320** Note: Figures are rounded down to the nearest million yen.--------------------------------------------------------------------------------------------------------------------------------------------<br> "Consolidated Statement of Changes in Net Assets" and "Notes to Consolidated Financial Statements" are not included in the physical copies of electronically provided information sent to shareholders who request them, under laws and regulations and the Articles of Incorporation of the Company.<br>24 <br>**<u>BALANCE SHEET</u>**<br> (As of March 31, 2026)<br> (Millions of yen)<br> **Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Ref)**<br> **Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Ref)**<br> **<u>ASSETS</u>** **443,292** **447,294** **<u>LIABILITIES</u>** **151,583** **157,089** &nbsp;&nbsp;**CURRENT ASSETS** **242,310** **213,001** &nbsp;&nbsp;**CURRENT LIABILITIES** **112,999** **105,564** &nbsp;&nbsp;&nbsp;&nbsp;Cash and deposits 84,322 54,621 &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade 27,785 28,141 &nbsp;&nbsp;&nbsp;&nbsp;Notes receivable - trade 55 529 &nbsp;&nbsp;&nbsp;&nbsp;Short-term loans payable 6,052 6,924 &nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded monetary claims 18,354 18,194 &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - other 5,319 5,275 &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable - trade 47,928 50,532 &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable 9,652 255 &nbsp;&nbsp;&nbsp;&nbsp;Finished goods 12,453 13,068 &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses 1,907 2,080 &nbsp;&nbsp;&nbsp;&nbsp;Work in process 704 926 &nbsp;&nbsp;&nbsp;&nbsp;CMS deposits received 35,275 35,551 &nbsp;&nbsp;&nbsp;&nbsp;Raw materials and supplies 7,995 6,105 &nbsp;&nbsp;&nbsp;&nbsp;Provision for bonuses 3,999 4,497 &nbsp;&nbsp;&nbsp;&nbsp;Short-term loans receivable 60,225 55,285 &nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) 474 – &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivables - other 8,384 8,238 &nbsp;&nbsp;&nbsp;&nbsp;Deposits received from employees 13,081 &nbsp;&nbsp;13,440 &nbsp;&nbsp;&nbsp;&nbsp;Other 1,958 5,572 &nbsp;&nbsp;&nbsp;&nbsp;Other 9,450 &nbsp;&nbsp;9,397 &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts (73) (71) &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;**NONCURRENT LIABILITIES** **38,584** **51,525** &nbsp;&nbsp;**NONCURRENT ASSETS** **200,982** **234,292** &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans payable 2,107 3,159 **Property, plant and equipment** **53,642** **55,104** &nbsp;&nbsp;&nbsp;&nbsp;Provision for retirement benefits 31,504 38,112 &nbsp;&nbsp;&nbsp;&nbsp;Buildings 20,020 20,783 &nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) – 303 &nbsp;&nbsp;&nbsp;&nbsp;Structures 1,401 1,575 &nbsp;&nbsp;&nbsp;&nbsp;Long-term income taxes payable 113 293 &nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment 18,560 19,643 &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities 3,313 8,134 &nbsp;&nbsp;&nbsp;&nbsp;Vehicles 204 161 &nbsp;&nbsp;&nbsp;&nbsp;Other 1,544 1,522 &nbsp;&nbsp;&nbsp;&nbsp;Tools, furniture and fixtures 4,194 4,119 &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Land 5,201 5,557 **<u>NET ASSETS</u>** **291,709** **290,205** &nbsp;&nbsp;&nbsp;&nbsp;Lease assets 74 61 &nbsp;&nbsp;**SHAREHOLDERS' EQUITY** **245,192** **235,513** &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress 3,983 3,202 **CAPITAL STOCK** **23,335** **23,335** &nbsp;&nbsp;**Intangible assets** **18** **23** **CAPITAL SURPLUS** **20,397** **20,397** **Investments and other assets** **147,322** **179,164** &nbsp;&nbsp;&nbsp;&nbsp;Legal capital surplus 20,397 20,397 &nbsp;&nbsp;&nbsp;&nbsp;Investment securities 82,742 98,422 **RETAINED EARNINGS** **203,919** **209,384** &nbsp;&nbsp;&nbsp;&nbsp;Stocks of subsidiaries and affiliates 46,680 57,517 &nbsp;&nbsp;&nbsp;&nbsp;Legal retained earnings 2,983 2,983 &nbsp;&nbsp;&nbsp;&nbsp;Investment in capital of subsidiaries and affiliates 11,396 11,396 &nbsp;&nbsp;&nbsp;&nbsp;Other retained earnings 200,936 206,400 &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans receivable 4,554 5,362 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for special depreciation – 2 &nbsp;&nbsp;&nbsp;&nbsp;Prepaid pension cost – 4,478 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for advanced depreciation of noncurrent assets 2,450 2,465 &nbsp;&nbsp;&nbsp;&nbsp;Guarantee deposits 1,090 1,113 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings brought forward 198,485 203,932 &nbsp;&nbsp;&nbsp;&nbsp;Other 934 968 **TREASURY STOCK** **(2460)** **(17604)** &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts (76) (94) &nbsp;&nbsp;**VALUATION AND TRANSLATION ADJUSTMENTS** **46,516** **54,691** &nbsp;&nbsp;&nbsp; **VALUATION DIFFERENCE ON AVAILABLE-FOR-SALE SECURITIES** **46,516** **54,691** &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL** **443,292** **447,294** &nbsp;&nbsp;**TOTAL** **443,292** **447,294** Note: Figures are rounded down to the nearest million yen.<br>25 <br>**<u>STATEMENT OF INCOME</u>**<br> (From April 1, 2025 to March 31, 2026)<br> (Millions of yen)<br> &nbsp;&nbsp;**Item** &nbsp;&nbsp;**FY2025** &nbsp;&nbsp; **FY2024**<br> **(Reference)**<br> &nbsp;&nbsp;Net Sales &nbsp;&nbsp; &nbsp;&nbsp;227,309 &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;226,264 &nbsp;&nbsp;Cost of Sales &nbsp;&nbsp; &nbsp;&nbsp;179,928 &nbsp;&nbsp; &nbsp;&nbsp;180,838 &nbsp;&nbsp;&nbsp;**Gross Profit** &nbsp;&nbsp; &nbsp;&nbsp;**47,380** &nbsp;&nbsp; &nbsp;&nbsp;**45,426** &nbsp;&nbsp;Selling, General and Administrative Expenses &nbsp;&nbsp; &nbsp;&nbsp;41,087 &nbsp;&nbsp; &nbsp;&nbsp;40,799 &nbsp;&nbsp;&nbsp;**Operating Income** &nbsp;&nbsp; &nbsp;&nbsp;**6,293** &nbsp;&nbsp; &nbsp;&nbsp;**4,626** &nbsp;&nbsp;Non-operating Income &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Interest and dividend income &nbsp;&nbsp;20,844 &nbsp;&nbsp; &nbsp;&nbsp;39,364 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Rent income &nbsp;&nbsp;824 &nbsp;&nbsp; &nbsp;&nbsp;839 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Foreign exchange gains &nbsp;&nbsp;3,202 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;464 &nbsp;&nbsp;25,336 &nbsp;&nbsp;639 &nbsp;&nbsp;40,844 &nbsp;&nbsp;Non-operating Expenses &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Interest expenses &nbsp;&nbsp;1,057 &nbsp;&nbsp; &nbsp;&nbsp;941 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on valuation of derivatives &nbsp;&nbsp;516 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on valuation of derivatives &nbsp;&nbsp;1,530 &nbsp;&nbsp; &nbsp;&nbsp;1,123 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Other &nbsp;&nbsp;106 &nbsp;&nbsp;3,210 &nbsp;&nbsp;821 &nbsp;&nbsp;2,886 &nbsp;&nbsp;&nbsp;**Ordinary Income** &nbsp;&nbsp; &nbsp;&nbsp;**28,418** &nbsp;&nbsp; &nbsp;&nbsp;**42,584** &nbsp;&nbsp;Extraordinary Income &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sales of noncurrent assets &nbsp;&nbsp;107 &nbsp;&nbsp; &nbsp;&nbsp;420 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sales of investment securities &nbsp;&nbsp;35,839 &nbsp;&nbsp; &nbsp;&nbsp;3,100 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on sale of shares of subsidiaries and associates &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;54 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Gain on revision of retirement benefit plan &nbsp;&nbsp;– &nbsp;&nbsp;35,946 &nbsp;&nbsp;2,879 &nbsp;&nbsp;6,454 &nbsp;&nbsp;Extraordinary Loss &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sales and retirement of noncurrent assets &nbsp;&nbsp;658 &nbsp;&nbsp; &nbsp;&nbsp;215 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sale of shares of subsidiaries and associates &nbsp;&nbsp;5,803 &nbsp;&nbsp; &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on sales of investment securities &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;2 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on valuation of investment securities &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;12 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Impairment loss &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;717 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Amortization of prior service cost &nbsp;&nbsp;– &nbsp;&nbsp; &nbsp;&nbsp;955 &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Loss on disposal of inventories &nbsp;&nbsp;1,557 &nbsp;&nbsp;8,019 &nbsp;&nbsp;– &nbsp;&nbsp;1,902 &nbsp;&nbsp;**Income before Income Taxes** &nbsp;&nbsp; &nbsp;&nbsp;**56,346** &nbsp;&nbsp; &nbsp;&nbsp;**47,136** &nbsp;&nbsp;Income taxes - current &nbsp;&nbsp;12,710 &nbsp;&nbsp; &nbsp;&nbsp;3,929 &nbsp;&nbsp; &nbsp;&nbsp;Income taxes - deferred &nbsp;&nbsp;(338) &nbsp;&nbsp;12,372 &nbsp;&nbsp;1,578 &nbsp;&nbsp;5,507 &nbsp;&nbsp;**Net Income** &nbsp;&nbsp; &nbsp;&nbsp;**43,973** &nbsp;&nbsp; &nbsp;&nbsp;**41,629** &nbsp;&nbsp;Note: Figures are rounded down to the nearest million yen. <br> --------------------------------------------------------------------------------------------------------------------------------------------<br> "Statement of Changes in Net Assets" and "Notes to Financial Statements" are not included in the physical copies of electronically provided information sent to shareholders who request them, under laws and regulations and the Articles of Incorporation of the Company.<br>26 <br>*Note*: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the Japanese original shall prevail.<br> The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation. **Independent Auditor's Audit Report<br> Concerning Consolidated Financial Statements**<br>**<u>INDEPENDENT AUDITOR'S REPORT</u>**<br>May 15, 2026<br>To: The Board of Directors of<br> NOK CORPORATION<br>&nbsp;&nbsp;Nihombashi Corporation<br> Chuo Ward, Tokyo<br> &nbsp;&nbsp; &nbsp;&nbsp;Hidekazu Takahashi &nbsp;&nbsp;Designated and Engagement Partner,<br> Certified Public Accountant &nbsp;&nbsp;Shigehiro Chiba &nbsp;&nbsp;Designated and Engagement Partner,<br> Certified Public Accountant <br>*Opinion*<br> Pursuant to Article 444, Paragraph 4 of the Companies Act, we have audited the consolidated financial statements of NOK CORPORATION and its subsidiaries (the "NOK Group"), which comprise the consolidated balance sheet as of March 31, 2026, the consolidated statement of income, the consolidated statement of changes in net assets and the notes to the consolidated financial statements applicable to the fiscal year from April 1, 2025 through March 31, 2026.<br> In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the NOK Group, applicable to the fiscal year ended March 31, 2026, and its consolidated financial performance for the year then ended in accordance with accounting principles generally accepted in Japan.<br> *Basis for Opinion*<br> We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the NOK Group in accordance with the professional ethical standards in Japan (including standards applicable to audits of financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with those standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.<br> *Other content*<br> Other content refers to the business report and its supplementary schedules. The responsibility of management is to produce and disclose this other content. The responsibility of the Audit & Supervisory Committee is to monitor the directors' performance of duties in the preparation and operation of reporting processes for this other content.<br> The other content is not subject to our audit opinion regarding the consolidated financial statements, and we do not express an opinion regarding the other content.<br> Our responsibility in the audit of the consolidated financial statements, etc. is to read through the other content, and in the process of reading through, examine whether there are any material discrepancies between the other content and the consolidated financial statements, and compared with the knowledge gained by us in the process of auditing, also to pay attention to the presence of any signs of other material misstatements in the other content aside from such material discrepancies.<br> We are required to report the fact in the case that we judge there are material misstatements in the other content based on the work we have performed.<br> There are no facts that we should report with regard to the other content.<br> *Responsibilities of Management and the Audit & Supervisory Committee for the Consolidated Financial Statements*<br> Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.<br> In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare the consolidated financial statements with the assumption of a going concern, and in accordance with accounting principles generally accepted in Japan, for disclosing, as necessary, matters related to going concern.<br> The Audit & Supervisory Committee is responsible for overseeing the Directors' performance of duties within the maintenance and operation of the financial reporting process.<br>27 <br>The Audit & Supervisory Committee is responsible for overseeing the Directors' performance of duties within the maintenance and operation of the financial reporting process.<br> *Auditors' Responsibilities for the Audit of the Consolidated Financial Statements*<br> Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.<br> As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit process. We also:<br> •Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. •When auditing the consolidated financial statements, consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances in making those risk assessments, but not for the purpose of expressing an opinion on the effectiveness of the NOK Group's internal control. •Evaluate the appropriateness of accounting policies used by management and their method of application, as well as the reasonableness of accounting estimates made by management and related notes thereto. •Conclude on the appropriateness of preparing the consolidated financial statements with the assumption of a going concern by management, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the NOK Group's ability to continue as a going concern. If we conclude that a material uncertainty regarding the assumption of a going concern exists, we are required to draw attention in our auditor's report to the notes to the consolidated financial statements or, if the notes to the consolidated financial statements on material uncertainty are inadequate, to express a qualified opinion with exceptions on the consolidated financial statements. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the NOK Group to cease to continue as a going concern. •Evaluate whether the presentation of the consolidated financial statements and notes thereto are in accordance with accounting standards generally accepted in Japan, as well as evaluate the overall presentation, structure and content of the consolidated financial statements, including the related notes thereto, and whether the consolidated financial statements represent the underlying transactions and accounting events in a manner that achieves fair presentation. •We plan and conduct audits of consolidated financial statements in order to obtain sufficient and appropriate audit evidence regarding the financial information of NOK CORPORATION and its consolidated subsidiaries that forms a foundation for expressing our opinions on the consolidated financial statements. We are responsible for the direction, supervision, and examination of audits of the consolidated financial statements. We remain solely responsible for our audit opinion. We communicate with the Audit & Supervisory Committee regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit process, and other matters required by auditing standards.<br> We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethical requirements in Japan regarding independence, and other matters that may reasonably be thought to bear on our independence, and the details in cases when measures have been enacted to eliminate obstruction factors, or cases when safeguards have been applied to reduce obstruction factors to an acceptable level.<br> *Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan*<br> Our firm and its designated and engagement partners do not have any interest in the NOK Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.<br>28 <br>**Independent Auditor's Audit Report Concerning Financial Statements**<br>**<u>INDEPENDENT AUDITOR'S REPORT</u>**<br>May 15, 2026<br>To: The Board of Directors of<br> NOK CORPORATION<br>&nbsp;&nbsp;Nihombashi Corporation<br> Chuo Ward, Tokyo<br> &nbsp;&nbsp; &nbsp;&nbsp;Hidekazu Takahashi &nbsp;&nbsp;Designated and Engagement Partner,<br> Certified Public Accountant &nbsp;&nbsp;Shigehiro Chiba &nbsp;&nbsp;Designated and Engagement Partner,<br> Certified Public Accountant <br>*Opinion*<br> Pursuant to Article 436, Paragraph 2, Item 1 of the Companies Act, we have audited the financial statements of NOK CORPORATION (the "Company"), which comprise the balance sheet, the statement of income, the statement of changes in net assets and the notes to the financial statements, and the supplementary statements (collectively, the "Financial Statements, etc.") applicable to the 120th term from April 1, 2025 through March 31, 2026.<br> In our opinion, the Financial Statements, etc. referred to above present fairly, in all material respects, the financial position of the Company applicable to the 120th term ended March 31, 2026, and its financial performance for the year then ended in accordance with accounting principles generally accepted in Japan.<br> *Basis for Opinion*<br> We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements, etc. section of our report. We are independent of the Company in accordance with the professional ethical standards in Japan (including standards applicable to audits of financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with those standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.<br> *Other content*<br> Other content refers to the business report and its supplementary schedules. The responsibility of management is to produce and disclose this other content. The responsibility of the Audit & Supervisory Committee is to monitor the directors' performance of duties in the preparation and operation of reporting processes for this other content.<br> The other content is not subject to our audit opinion regarding the Financial Statements, etc., and we do not express an opinion regarding the other content.<br> Our responsibility in the audit of the Financial Statements, etc. is to read through the other content, and in the process of reading through, examine whether there are any material discrepancies between the other content and the Financial Statements, etc., and compared with the knowledge gained by us in the process of auditing, also to pay attention to the presence of any signs of other material misstatements in the other content aside from such material discrepancies.<br> We are required to report the fact in the case that we judge there are material misstatements in the other content based on the work we have performed.<br> There are no facts that we should report with regard to the other content.<br> *Responsibilities of Management and the Audit & Supervisory Committee for the Financial Statements, etc.*<br> Management is responsible for the preparation and fair presentation of the Financial Statements, etc. in accordance with accounting principles generally accepted in Japan, and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the Financial Statements, etc. that are free from material misstatement, whether due to fraud or error.<br> In preparing the Financial Statements, etc., management is responsible for assessing whether it is appropriate to prepare the Financial Statements, etc. with the assumption of a going concern, and in accordance with accounting principles generally accepted in Japan, for disclosing, as necessary, matters related to going concern.<br> The Audit & Supervisory Committee is responsible for overseeing the Directors' performance of duties within the maintenance and operation of the financial reporting process.<br>29 <br>*Auditors' Responsibilities for the Audit of the Financial Statements, etc.*<br> Our objectives are to obtain reasonable assurance about whether the Financial Statements, etc. as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the Financial Statements, etc. based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements, etc.<br> As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit process. We also:<br> •Identify and assess the risks of material misstatement of the Financial Statements, etc., whether due to fraud or error, design and perform audit procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. •When auditing the Financial Statements, etc., consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances in making those risk assessments, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. •Evaluate the appropriateness of accounting policies used by management and their method of application, as well as the reasonableness of accounting estimates made by management and related notes thereto. •Conclude on the appropriateness of preparing the Financial Statements, etc. with the assumption of a going concern by management, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty regarding the assumption of a going concern exists, we are required to draw attention in our auditor's report to the notes to the Financial Statements, etc. or, if the notes to the Financial Statements, etc. on material uncertainty are inadequate, to express a qualified opinion with exceptions on the Financial Statements, etc. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. •Evaluate whether the presentation of the Financial Statements, etc. and notes thereto are in accordance with accounting standards generally accepted in Japan, as well as evaluate the overall presentation, structure and content of the Financial Statements, etc., including the notes to the Financial Statements, etc., and whether the Financial Statements, etc. represent the underlying transactions and accounting events in a manner that achieves fair presentation. We communicate with the Audit & Supervisory Committee regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit process, and other matters required by auditing standards.<br> We also provide the Audit & Supervisory Committee with a statement that we have complied with relevant ethical requirements in Japan regarding independence, and other matters that may reasonably be thought to bear on our independence, and the details in cases when measures have been enacted to eliminate obstruction factors, or cases when safeguards have been applied to reduce obstruction factors to an acceptable level.<br> *Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan*<br> Our firm and its designated and engagement partners do not have any interest in the Company which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.<br>30 <br>**Audit Report by the Audit & Supervisory Committee**<br> **<u>Audit Report</u>**<br> This Audit & Supervisory Committee audited the execution of duties by Directors during the 120th term from April 1, 2025 to March 31, 2026. The method and results are reported as follows: <br>1. Method and Details of Auditing<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With regard to the resolutions of the Board of Directors concerning the matters set forth in Article 399-13, Paragraph 1, Item 1 (b) and (c) of the Companies Act, as well as the internal control system established pursuant to those resolutions, the Audit & Supervisory Committee receives regular reports from the Directors and employees on the status of the system's establishment and operation, seeks explanations where necessary, states its opinions, and conducts audits using the following method.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In accordance with the Audit & Supervisory Committee Audit Standards established by the Audit & Supervisory Committee, the audit policy and division of duties, and in cooperation with the Company's internal audit department and other internal control department, the Audit & Supervisory Committee Members have also been attending important meetings, obtaining reports, and where necessary, seeking explanations from the Directors and employees on matters related to the execution of their duties, examining important authorization papers and related documents, and inspecting the state of business affairs and assets at the Company's head office and other major business locations. As for subsidiaries, Audit & Supervisory Committee Members have been promoting communication and information exchange among Directors and Corporate Auditors within the Company's subsidiaries, and have been receiving periodic reports on the state of their business activities as necessary.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Audit & Supervisory Committee has been inspecting and verifying whether independent auditors are maintaining their independence and implementing proper auditing procedures. The Audit & Supervisory Committee has also been receiving reports and, where necessary, seeking explanations from them concerning their audits. The Audit & Supervisory Committee has also been receiving notices from independent auditors to the effect that they have established "systems to ensure proper execution of duties" (those listed in each item of Article 131 of the Corporate Calculation Regulations), in accordance with "Quality Control Standards concerning Audit (Financial Accounting Standards Board)" and, where necessary, has been obtaining explanations from them.<br> Based on the above method, the Audit & Supervisory Committee has reviewed the business report and accompanying statements, financial statements for the term under review (balance sheet, statement of income, statement of changes in net assets, and notes to financial statements), supplementary statements, and consolidated financial statements (consolidated balance sheet, consolidated statement of income, and consolidated statement of changes in net assets, and notes to consolidated financial statements). &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Results of Audit<br> &nbsp;&nbsp;&nbsp;&nbsp;(1) Results of audit of business report<br> &nbsp;&nbsp;&nbsp;&nbsp;The Audit & Supervisory Committee finds:<br> &nbsp;&nbsp;&nbsp;&nbsp;(i) That the business report and the accompanying statements present in a fair manner the conditions of the Company in compliance with the laws and regulations and the Articles of Incorporation of the Company.<br> &nbsp;&nbsp;&nbsp;&nbsp;(ii) That there are no unfair practices in the Directors' execution of their duties or any serious conditions that conflict with the laws and regulations or the Articles of Incorporation of the Company.<br> &nbsp;&nbsp;&nbsp;&nbsp;(iii) That the Board of Director's decisions in regards to the internal control system are appropriate and that nothing in the details described in the Business Report, or the Directors' execution of their duties related thereto needs to be addressed herein.<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Results of audit of the financial statements and the supplementary statements<br> The Audit & Supervisory Committee finds that the auditing methods of the independent auditors, Nihombashi Corporation, an incorporated accounting firm, and the results of their audit are appropriate.<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Results of audit of the consolidated financial statements<br> The Audit & Supervisory Committee finds that the auditing methods of the independent auditors, Nihombashi Corporation, an incorporated accounting firm, and the results of their audit are appropriate.<br> May 19, 2026 Audit & Supervisory Committee, NOK CORPORATION Hideki Watanabe Full-time Audit & Supervisory Committee Member Makoto Fujioka Audit & Supervisory Committee Member Naoki Shimada Audit & Supervisory Committee Member Motoko Imada Audit & Supervisory Committee Member Atsushi Kajitani Audit & Supervisory Committee Member<br>Note: Audit & Supervisory Committee Members Mr. Makoto Fujioka, Mr. Naoki Shimada, Ms. Motoko Imada, and Mr. Atsushi Kajitani serve as External Directors as defined in Article 2, Paragraph 15 and Article 331, Paragraph 6 of the Companies Act.<br> <br> 31 <br>**Information for Shareholders**<br>**Fiscal year** &nbsp;&nbsp;From April 1 to March 31 of the following year **Annual shareholders' meeting** &nbsp;&nbsp;June **Dividend payment record date** &nbsp;&nbsp;Year-end dividend March 31 &nbsp;&nbsp;Interim dividend September 30 **Transfer agent** &nbsp;&nbsp;Mitsubishi UFJ Trust and Banking Corporation **Contact information** &nbsp;&nbsp; 1-1 Nikko-cho, Fuchu City, Tokyo, Japan<br> Stock Transfer Agency Department,<br> Mitsubishi UFJ Trust and Banking Corporation<br> Tel: 0120-232-711 (toll-free number available in Japan only)<br> Mailing address: P.O. Box No. 29, Shin-Tokyo Post Office, Japan, 137-8081<br> Stock Transfer Agency Department,<br> Mitsubishi UFJ Trust and Banking Corporation<br> **Method of public notice** &nbsp;&nbsp; An electronic public notice is applied.<br> URL for public notice https://www.nok.co.jp/<br> (If it becomes impossible for us to make an electronic public notice due to an accident or any other unavoidable reason, we will post it in the ***Nikkei***.)<br> **Share unit** &nbsp;&nbsp;100 shares **Public listing** &nbsp;&nbsp; Tokyo Stock Exchange<br> Listed Name on the Prime Market: NOK (Securities Code: 7240)<br> &nbsp;&nbsp; <br>**NOK CORPORATION**<br> 12-15, Shiba-Daimon 1-chome, Minato Ward, Tokyo, Japan 105-8585<br> Telephone: +81-3- 3432-4211 (main)<br> https://www.nokgrp.com<br>  | &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |
| &nbsp;&nbsp;&nbsp;We would like to express our deep gratitude for your loyal patronage. We hereby report an overview of the business activities of the NOK Group for the 120th term (April 1, 2025 to March 31, 2026).<br> The NOK Group has carried out product development based on our accumulated basic research, and also "Essential Core Manufacturing — The manufacture of pivotal products that shape society," where our high quality and large-scale stable production is a strength. In addition to supporting the safety and comfort that are the foundation of an affluent society and delivering economic benefits to our stakeholders, we are also moving forward every day so that we can be a company that is trusted by society and that everyone takes pride in.<br>This term is the final fiscal year of the three-year Medium-Term Management Plan, which ended in fiscal 2025. In this Medium-Term Management Plan, we presented a basic policy of constructing a foundation for transformation, and through this plan, we carried out four transformations: "Create new growth drivers," "Optimize operational structure for global expansion," "Construct diverse human capital foundation," and "Optimize management resources."<br> As a major initiative, we focused on expansion of products for new domains and expanding sales to non-Japanese automobile manufacturers in order to create new growth drivers. In terms of the operational structure, we worked to accelerate the pace of decision-making and strengthen supervisory functions by formulating a unified new corporate identity for the NOK Group, introducing a global matrix system, and transitioning to a company with an Audit & Supervisory Committee. Together with optimizing our business portfolio, including strengthening business development activities and transferring the OA equipment-related products business, we carried out strategic personnel assignments that shifted human resources to key areas such as digital transformation and new businesses. We also steadily carried out measures for the construction of a foundation for transformation, such as improving the profit structure based on elimination of unprofitable products and fair transfer of costs to prices, improving capital efficiency, and reinforcing returns to shareholders.<br>In July 2026, the Company will celebrate the milestone of 85 years since our founding. Working from the foundation that we have constructed in the past, the Group will work together to strengthen the path to future global growth. We sincerely ask for attention to be given to our initiatives aimed at pioneering a new future beyond our transformation, and for everyone's continued support.<br> June 2026 |  |  |  |

---

## Exhibit 99.3

**Exhibit 99.3**

**(Translation)**

&nbsp;&nbsp;The share transfer described in this document involves securities of a Japanese company. The share transfer is subject to disclosure requirements of Japan that are different from those of the United States. Financial information included in this document, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies.<br>It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment. You should be aware that the issuer may purchase securities otherwise than under the share transfer, such as in the open market or through privately negotiated purchases.<br>This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.<br>

**<u>BUSINESS REPORT for the 120th Term</u>**

April 1, 2025 to March 31, 2026

**System for Ensuring Properness of Operations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The details of the decisions on a system for ensuring properness of operations

Following are the details of the decisions regarding a system for ensuring the compliance of Directors' execution of their duties in line with the laws and regulations as well as with the Articles of Incorporation and a system for ensuring the properness of business operations of NOK CORPORATION (the "Company").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) System for storing and managing information regarding the execution of duties by the Company's Directors

In accordance with the relevant laws and regulations, the Articles of Incorporation and other rules established by the Company, departments in charge shall record and file minutes of meetings, including Annual Shareholders' Meetings and Board of Directors meetings, as well as approval documents and other authorizations. Directors shall ensure a system that allows to inspect such documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Rules and other systems concerning loss risk management of the Company

In accordance with the Risk Management Rules established by the Company, the Risk Management Committee shall take the initiative in identifying and analyzing underlying risks and promoting a cross-organizational risk management system. The Risk Management Committee shall report to Directors regarding the implementation status of said system on a regular basis and revise the system as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) System for securing the efficiency of the execution of duties by the Company's Directors

Directors shall hold Board of Directors meetings in accordance with Board of Directors Regulations. At these meetings, they shall determine allocation of their duties and important matters such as business strategies and management policy and appoint Operating Officers responsible for implementation of operations at individual divisions. The Board of Directors, as necessary, shall delegate a portion of decision-making of important business operations to Executive Directors, and also delegate authority to Operating Officers for the execution of such operations, thereby enabling swift execution of operations and accomplishment of objectives, while supervising them.

The Directors shall clarify operational authorities and rules on decision-making in the Rules concerning Operational Authorities. They shall ensure a system to execute their respective duties in an appropriate and efficient manner by monitoring the progress of business plans, managerial policies, and operational implementation plans at regular meetings of the Management Committee.

The Audit & Supervisory Committee shall ensure the effectiveness of the Directors' execution of duties by conducting audits, as appropriate, in cooperation with the audit department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) System for ensuring compliance in the execution of duties by the Company's Directors and employees
with the relevant laws and regulations and the Articles of Incorporation

Pursuant to the NOK Charter of Corporate Behavior, the Company shall clearly state that it places priority on compliance in its business activities. In accordance with compliance rules and Behavioral Guidelines Concerning Employee Compliance, the Company shall also provide training programs for its employees, thereby establishing and promoting a framework for compliance that conforms with the relevant laws and regulations, the Articles of Incorporation, and other rules established by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) System for ensuring properness of operations of the Group consisting of the Company and its subsidiaries

In accordance with the provisions of the Internal Control Rules, the Company shall establish the following systems for its subsidiaries to ensure the properness of operations of the Group as a whole.

In addition, the Company, under the provisions of the Internal Control Rules regarding Financial Reporting, shall monitor the properness of operations based on Directors' instructions to ensure the credibility of the financial statements of the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. System regarding reporting from subsidiaries to the Company regarding execution of duties by Directors,
etc.

In accordance with the provisions of the Internal Control Rules, the division responsible for supervising subsidiaries shall monitor the status of management of subsidiaries. The business supervisory divisions shall give necessary instructions and support to subsidiaries regarding operations under their supervision and monitor the implementation status of the system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Rules and other system concerning loss risk management of subsidiaries

In accordance with the Internal Control Rules, the business supervisory divisions shall have subsidiaries establish a risk management system and report to the business supervisory divisions and the divisions responsible for supervising subsidiaries regarding the implementation status of the system on a regular basis, and give instructions to subsidiaries to revise the system as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. System for securing the efficiency of the execution of duties by Directors, etc. of subsidiaries

The management teams and managers of subsidiaries shall hold meetings for the Management Committee on a quarterly basis to share information and promote managerial transparency. At these meetings, attendees shall report on and discuss the progress of the Group's managerial policies and business plans, thereby ensuring efficiency in the management of the Group as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. System for ensuring compliance in the execution of duties by Directors, etc. and employees of subsidiaries
with the relevant laws and regulations and the Articles of Incorporation

In accordance with the Internal Control Rules, the business supervisory divisions shall require the subsidiaries to establish a charter of corporate behavior, compliance rules and behavioral guidelines concerning employee compliance to clearly state that they place priority on compliance in their business activities. In addition, the business supervisory divisions shall also require the subsidiaries to establish and promote a framework for compliance that conforms with the relevant laws and regulations, the Articles of Incorporation, and other internal rules, and monitor the implementation status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Matters concerning assistant employees in cases where the Company's Audit & Supervisory Committee
requests the Company to assign employees to support its duties

Regarding the employees who are required to assist the Audit & Supervisory Committee with its duties, the Company shall assign personnel with expertise of laws and regulations who are capable of providing assistance, upon discussions with the Audit & Supervisory Committee on the selection of assistant employees and the operational authorities thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Matters regarding the independence of employees provided for in the preceding paragraph from the Company's
Directors who are not Audit & Supervisory Committee Members and ensuring the effectiveness of instructions by the Company's
Audit & Supervisory Committee to said employees

Employees assigned to assist the Audit & Supervisory Committee with its duties shall follow the directions and orders of the Audit & Supervisory Committee in the execution of duties, attend the Audit & Supervisory Committee meetings and other relevant major meetings to execute instructions from the Audit & Supervisory Committee. The Company shall have discussions with the Audit & Supervisory Committee regarding changes of said assistant employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) System for reporting to the Company's Audit & Supervisory Committee by the Company's and
its subsidiaries' Directors who are not Audit & Supervisory Committee Members and employees and other system for reporting to
the Company's Audit & Supervisory Committee

The audit department shall, in accordance with the Internal Control Rules, conduct periodical internal audits on the state of the system to ensure the appropriateness of the Company's and its subsidiaries' operations, and report the results thereof to the Audit & Supervisory Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) System for ensuring that the person who made the report provided for in the preceding item shall not be
subject to unfavorable treatment for reason of having made such report

The Company shall prohibit unfavorable treatment of a person who made the report provided for in the preceding item for reason of having made such report, and communicate to that effect widely across the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Matters regarding the policy for handling funding or payables in relation to execution of duties of the
Company's Audit & Supervisory Committee Members (limited to matters related to the execution of duties by the Audit & Supervisory
Committee), such as procedures for advance payment or reimbursement in relation to execution of such duties

In accordance with the audit policy and audit plan formulated at the Audit & Supervisory Committee meetings pursuant to the Regulations of the Audit & Supervisory Committee, the Company shall secure funding to enable Audit & Supervisory Committee Members to execute their duties appropriately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Other systems for securing effective audits by the Company's Audit & Supervisory Committee

In order to supervise the execution of duties of the Directors who are not Audit & Supervisory Committee Members, in accordance with the audit policy and audit plan formulated at the Audit & Supervisory Committee meetings pursuant to the Regulations of the Audit & Supervisory Committee, the Company shall maintain a system that allows Audit & Supervisory Committee Members to attend the Board of Directors meetings and other important meetings and to investigate the Company's operational and financial conditions.

The audit department, Independent Auditor, and Audit & Supervisory Committee shall exchange opinions on a regular basis.

In addition, the Representative Directors and Audit & Supervisory Committee Members shall exchange opinions on a regular basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Overview of the operational status of the systems for ensuring the properness of operations

In accordance with "the details of the decisions on a system for ensuring properness of operations" described in (1) above, the Company strives to develop systems and operate such systems appropriately. An overview of the operational status of such systems is as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Overview of the operational status of the system for storing and managing information

Minutes of meetings, including Shareholders' Meetings and Board of Directors meetings, approval documents and other authorizations are prepared and drawn up by departments in charge or drafting departments without delay and are managed and stored appropriately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Overview of the operational status of the risk management system

In accordance with the Risk Management Rules, the Risk Management Committee identifies and analyzes underlying risks, promotes a cross-organizational risk management system, and reports to Directors regarding the implementation status of such system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Overview of the operational status of the system for securing efficient execution of duties

Operating Officers and Upper Management are executing their duties promptly and efficiently in accordance with operational authorities and rules on decision-making. Their execution of duties is supervised by Directors at meetings of the Management Committee (four times in the current period), and other committee meetings. The Company monitors if Directors' duties are executed appropriately and efficiently at the Board of Directors meetings (18 times in the current period, including those conducted by means of documents), the Central Labor-Management Council (19 times in the current period), and various other committee meetings.

The Audit & Supervisory Committee shall conduct audits, as appropriate, in cooperation with the audit department to ensure the effectiveness of the Directors' execution of duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Overview of the operational status of the system for ensuring compliance

The Company communicates and ensures compliance with the NOK Charter of Corporate Behavior, the compliance rules and Behavioral Guidelines Concerning Employee Compliance. In addition, the Company continuously makes efforts for compliance with the relevant laws and regulations, the Articles of Incorporation and other rules established by the Company by implementing the month for promoting compliance, providing training programs for its employees and establishing a whistleblowing hotline, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Overview of the operational status of the system for ensuring the properness of operations of the Group

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company has received reports as necessary on the management status of its subsidiaries and the status
of progress for instructions and support provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Company has required its subsidiaries to establish risk management systems, and the business supervisory
divisions and the divisions responsible for supervising subsidiaries have received reports on the status of implementation of the systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Company holds meetings for the Management Committee quarterly to ensure the management efficiency
of the Group as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Company has required its subsidiaries to establish Charters of Corporate Behavior, compliance rules
and Behavioral Guidelines Concerning Employee Compliance, and monitors the status of compliance with the relevant laws and regulations,
the Articles of Incorporation and other rules established by the Company on a regular basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The Company monitors the properness of operations to ensure the credibility of the financial statements
of the Company and its subsidiaries once a year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Overview of the operational status of the system for audit by the Audit & Supervisory Committee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company has assigned personnel with expertise in laws and regulations who are capable of providing
assistance to the Audit & Supervisory Committee, upon consultation with the Audit & Supervisory Committee on the selection of
assistant employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Employees who are assigned to assist the Audit & Supervisory Committee with its duties attend the
Audit & Supervisory Committee meetings, etc. and follow the instructions from the Audit & Supervisory Committee in executing their
duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The audit department once a year checks the system for ensuring appropriateness of the Company's
and its subsidiaries' operations, internal audits are conducted regularly, and the results are reported to the Audit & Supervisory
Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Company has included a provision in the compliance rules and whistleblowing policy that prohibits
unfavorable treatment of personnel for reason of having made a report to the whistleblowing hotline, and has communicated to that effect
across the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The Company secures funding that allow the Audit & Supervisory Committee to execute its duties appropriately
in accordance with the audit policy and audit plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Audit & Supervisory Committee Members attend the Board of Directors meetings and other important meetings
and investigate the Company's operational and financial conditions.

The Audit & Supervisory Committee, audit department, and Independent Auditor shall exchange opinions on a regular basis. In addition, the Audit & Supervisory Committee Members and Representative Directors shall exchange opinions on a regular basis.

**<u>Consolidated Financial Statements</u>**

**CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS** (From April 1, 2025 to March 31, 2026)

(Millions of yen)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
|  | Capital stock | Capital surplus | Retained earnings | &nbsp;&nbsp;Treasury stock | &nbsp;&nbsp;Total <br> shareholders' <br> equity |
| Balance at the beginning of current period | 23335 | 27343 | 398858 | (17691) | 431846 |
| Changes of items during the period |  |  |  |  |  |
| &nbsp;&nbsp;Dividends from surplus |  |  | (19873) |  | (19873) |
| &nbsp;&nbsp;Profit attributable to owners of parent |  |  | 46338 |  | 46338 |
| &nbsp;&nbsp;Purchase of treasury stock |  |  |  | (15076) | (15076) |
| &nbsp;&nbsp;Disposal of treasury stock |  |  |  | 661 | 661 |
| &nbsp;&nbsp;Retirement of treasury stock |  | (29554) |  | 29554 | – |
| &nbsp;&nbsp;Transfers from retained earnings to capital surplus |  | 29554 | (29554) |  | – |
| &nbsp;&nbsp;Purchase of shares of consolidated subsidiaries |  | 373 |  |  | 373 |
| &nbsp;&nbsp;Net changes of items other than shareholders' equity |  |  |  |  |  |
| Total changes of items during the period | – | 373 | (3089) | 15138 | 12423 |
| Balance at the end of current period | 23335 | 27717 | 395769 | (2553) | 444269 |

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Accumulated other comprehensive income | Accumulated other comprehensive income | Accumulated other comprehensive income | Accumulated other comprehensive income | Non-<br> controlling interests | Total net assets |
|  | Valuation difference on available-for-<br> sale securities | Foreign currency translation adjustment | Remeasurements <br> of defined <br> benefit plans | Total accumulated other comprehensive income | Non-<br> controlling interests | Total net assets |
| Balance at the beginning of current period | 55041 | 66295 | 25822 | 147159 | 44415 | 623421 |
| Changes of items during the period |  |  |  |  |  |  |
| &nbsp;&nbsp;Dividends from surplus |  |  |  |  |  | (19873) |
| &nbsp;&nbsp;Profit attributable to owners of parent |  |  |  |  |  | 46338 |
| &nbsp;&nbsp;Purchase of treasury stock |  |  |  |  |  | (15076) |
| &nbsp;&nbsp;Disposal of treasury stock |  |  |  |  |  | 661 |
| &nbsp;&nbsp;Retirement of treasury stock |  |  |  |  |  | – |
| &nbsp;&nbsp;Transfers from retained earnings to capital surplus |  |  |  |  |  | – |
| &nbsp;&nbsp;Purchase of shares of consolidated subsidiaries |  |  |  |  |  | 373 |
| &nbsp;&nbsp;Net changes of items other than shareholders' equity | (8047) | 21430 | 20045 | 33428 | 997 | 34425 |
| Total changes of items during the period | (8047) | 21430 | 20045 | 33428 | 997 | 46849 |
| Balance at the end of current period | 46993 | 87726 | 45867 | 180587 | 45413 | 670270 |

---

Note: Figures are rounded down to the nearest million yen.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Reference: Consolidated Cash Flows** (From April 1, 2025 to March 31, 2026) | &nbsp;&nbsp;**Reference: Consolidated Cash Flows** (From April 1, 2025 to March 31, 2026) | &nbsp;&nbsp;**Reference: Consolidated Cash Flows** (From April 1, 2025 to March 31, 2026) | &nbsp;&nbsp;**Reference: Consolidated Cash Flows** (From April 1, 2025 to March 31, 2026) |
|  |  |  | &nbsp;&nbsp;(Millions of yen) |
| From operating activities | From investing activities | From financing activities | Cash and cash equivalent at the end of period |
| 68156 | (10259) | (47078) | 156706 |

---

Note: Figures are rounded down to the nearest million yen.

**<u>Notes to Consolidated Financial Statements</u>**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Notes regarding the basis for preparing consolidated financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Scope of consolidation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Number of consolidated subsidiaries: 80

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Names of major consolidated subsidiaries:

Thai NOK Co., Ltd.

Unimatec Co., Ltd.

MEKTEC CORPORATION

Mektec Manufacturing Corporation (Taiwan) Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unconsolidated subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Name of major unconsolidated subsidiary:

Mektec Automation Technology Corporation (Zhuhai) Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reasons for exclusion from scope of consolidation

The respective totals of total assets, net sales, net income/loss, retained earnings and the like of unconsolidated subsidiaries are all immaterial with respect to total assets, net sales, profit/loss attributable to owners of parent, retained earnings and the like on the consolidated financial statements. Therefore, they are not included in the scope of consolidation because they do not have a significant impact on the consolidated financial statements overall.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Application of the equity method of accounting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Unconsolidated subsidiaries and affiliates accounted for by the equity method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Number of unconsolidated subsidiaries and affiliates accounted for by the equity method: 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Names of major unconsolidated subsidiaries and affiliates:

Eagle Industry Co., Ltd.

Pyung-Hwa Oilseal Industry Co., Ltd.

Freudenberg-NOK General Partnership

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unconsolidated subsidiaries and affiliates not accounted for by the equity method

Names of major unconsolidated subsidiaries:

Not applicable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Notes regarding changes of scope of consolidation and equity method affiliates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Change in scope of consolidation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subsidiaries newly included in consolidation (0)

Not applicable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Companies excluded from the scope of consolidation (12)

SYNZTEC Co., Ltd. and 11 other companies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Change in scope of the equity method

Not applicable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Matters concerning the business term of consolidated subsidiaries

There are 35 consolidated subsidiaries whose accounting periods differ from the consolidated accounting period and have their fiscal year end on December 31. Of these, important transactions made by NOK Inc., between the said accounting date and the consolidated accounting date have been adjusted to the extent necessary for consolidation. Mektec Manufacturing Corporation (Zhuhai) Ltd. and 33 other consolidated subsidiaries carry out provisional settlements of account based on full-year business results on March 31, the consolidated accounting date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Matters concerning accounting policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Valuation criteria and methods for principal assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Available-for-sale securities

● Those other than shares and other securities without quoted market price

Stated at market value. (Valuation difference is reported as a component of net assets. Cost of sales is calculated using the moving average method.)

● Shares and other securities without quoted market price

They are stated at cost with the cost being determined by the moving average method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Derivatives

They are stated at market price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Inventories

Finished goods and work in process of the Company and its domestic consolidated subsidiaries are mainly valued at cost based on the retail method (balance sheet amounts are determined by writing down the book value according to the decrease in profitability). Meanwhile, raw materials and supplies are valued at cost based on the periodic average method (balance sheet amounts are determined by writing down the book value according to the decrease in profitability). For overseas consolidated subsidiaries, those are mainly valued at the lower of cost or market based on the moving average method or the first-in first-out method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Method of depreciation of principal noncurrent assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Property, plant and equipment (excluding lease assets)

Depreciation is computed by the straight-line method.

The useful lives of major items of property, plant and equipment are as follows:

Buildings and structures: 5-50 years

Machinery, equipment and vehicles: 4-10 years

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Intangible assets (excluding lease assets)

Amortization is computed by the straight-line method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lease assets

Lease assets related to finance leases other than those deemed to transfer ownership of leased property to the lessee by the Company

Depreciation is calculated on the straight-line method over the lease period as the useful life and assuming no residual value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Long-term prepaid expenses

Amortization is computed on a straight-line basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Accounting policies for principal allowances

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Allowance for doubtful accounts

To prepare for losses on bad debt, general claims are accounted using the loan loss ratio and doubtful claims are accounted as the expected unrecoverable amount taking into consideration of the recoverability of individual claims.

As for overseas subsidiaries, estimated amount of allowance for doubtful accounts has been recorded depending primarily on the condition of receivables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Provision for bonuses

In order to prepare for the payment of employee bonuses, accrued bonuses based primarily on estimated payment amounts have been entered into the accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Provision for share awards for directors (and other officers)

In order to prepare for provision of shares of the Company's stock, etc. to directors and other officers of the Company and a portion of its subsidiaries, we have calculated the expected amount of provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Method for accounting for retirement benefits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Method for attributing expected retirement benefits to periods

In the calculation of retirement benefit obligations, the method of attributing expected retirement benefits to periods up to the end of the current fiscal year is the benefit formula basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Method of expenses for actuarial differences

Actuarial differences are treated as expenses in equal installments using the straight-line method over a prescribed period of time (10 years) that is within the average remaining period of employment for the employees in question, beginning in the year following the fiscal year in which such calculations are made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Accounting policies for important revenue and expenses

Since the details of main performance obligations in main businesses related to revenue from contracts with customers of the Company and its consolidated subsidiaries in Japan and the timing when the performance obligations are typically satisfied (typical timing of revenue recognition) are described in "8. Notes regarding revenue recognition," this information has been omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Method of hedge accounting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Method of hedge accounting

Special treatment is applied as the interest rate swaps satisfy the requirements for special treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Hedging instruments and hedged items

Hedging instruments: Interest rate swaps <br> Hedged items: Interest on borrowings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Hedging policy

The interest rate swaps are made in order to hedge fluctuation risks in interest rates on borrowings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Method of assessing hedge effectiveness

Regarding the interest rate swaps, the Company assesses hedge effectiveness based upon the fulfillment of the requirements for special treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Method and period of amortization of goodwill

For amortization of goodwill, a reasonable estimate of the effective period is created, and amortization is performed on a straight-line basis over this period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Other significant Items for preparing consolidated financial statements

Application of the group tax sharing system

The Company applies the group tax sharing system.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Notes regarding accounting estimates** 

The following is the information on accounting estimates recorded on the consolidated financial statements of the current fiscal year that may exert material effects on the consolidated financial statements of the next fiscal year.

The Medium-term Management Plan in the text below is based on information, etc. accessible from the inside and outside of the Company at the time of preparation, with the use of estimates and assumptions regarding matters such as the growth rate of multiple markets in which the Company is participating and measures that the management has judged are feasible. There is the possibility that the numbers which are based on these estimates and assumptions may differ from the actual results.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Deferred tax assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The amount recorded on the consolidated financial statements for the current fiscal year

(Millions of yen) <br> <u>Current fiscal year</u> <br> <u>Deferred tax assets</u> <u>6,037</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Information on the content of important accounting estimates concerning recognized items

For deferred tax assets, based on the scheduling for addition and subtraction of future taxable income, temporary differences, etc., the amount of deductible temporary differences that we have judged are recoverable in the future is recorded. The amount not expected to be recoverable is accounted as valuation allowance.

The future taxable income is based on estimates and assumptions made by the latest Medium-term Management Plan, feasible tax plans, etc., and overseas subsidiaries, etc. operating in the electronic product segment provide valuation allowance for loss carried forward, taking into account the uncertainty of future profitability.

If such estimates or assumptions are affected by any situation in the future, there is a possibility that the recoverability of deferred tax assets will change, and the amount of deferred tax assets will need correcting.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Loss on impairment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The amount recorded on the consolidated financial statements for the current fiscal year

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| | |
|:---|:---|
| | (Millions of yen) |
| | &nbsp;&nbsp;Current fiscal year |
| &nbsp;&nbsp;Property, plant and equipment | &nbsp;&nbsp;249,009 |
| &nbsp;&nbsp;Loss on impairment | &nbsp;&nbsp;1,477 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Information on the content of important accounting estimates concerning recognized items

For the noncurrent assets to which the Accounting Standard for Impairment of Noncurrent Assets applies that are not expected to recover the investment because of a decline in profitability due to factors such as changes in the market environment, we reduced their book value to the recoverable amount and recognized the amount of decrease as impairment loss.

The process of recognizing an impairment loss includes making a judgment on whether to recognize an impairment loss and calculating the value in use and the net realizable value. Such judgment and calculation are made on the basis of the estimates of future cash flows based on the latest Medium-term Management Plan and estimates of the values based on reasonable calculation.

In a case where such estimates of future cash flows or estimates of the values based on reasonable calculation need reviewing due to any situation in the future, there may be an additional impairment loss.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Net defined benefit asset and liabilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The amount recorded on the consolidated financial statements for the current fiscal year

---

| | |
|:---|:---|
| | (Millions of yen) |
| | &nbsp;&nbsp;Current fiscal year |
| &nbsp;&nbsp;Net defined benefit asset | &nbsp;&nbsp;37,738 |
| &nbsp;&nbsp;Net defined benefit liabilities | &nbsp;&nbsp;34,028 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Information on the content of important accounting estimates concerning recognized items

Retirement benefit asset and liability under the defined benefit plan adopted at the NOK Group are calculated by deducting the amount of pension assets from the amount of retirement benefit obligations that is calculated by discounting the expected retirement benefits recognized to arise by the end of the current fiscal year.

For such calculation, actuarial assumptions such as discount rates and expected rates of return on pension assets are used. Discount rates are determined on the basis of the yield of long-term government bonds at the end of the current fiscal year, and expected rates of return on pension assets are determined considering the current and expected allocation of pension assets, as well as the current and future expected long-term rate of return based on a wide range of assets that compose pension assets.

If such actuarial assumptions need reviewing due to changes in uncertain economic situations in the future, or the like, the amount of retirement benefit asset and liability and retirement benefit expenses from the next fiscal year may be significantly affected.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Assessment of goodwill

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Amount recorded on the consolidated financial statements of the current fiscal year

(Millions of yen) <br> <u>Current fiscal year</u> <br> <u>Goodwill</u> <u>9,257</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Information on the content of important accounting estimates concerning recognized items

The NOK Group records excess earning power calculated based on the business plans of acquired companies at the time of stock purchase as goodwill, and it is amortized on a straight-line basis over its effective period. For goodwill impairment, it is judged whether or not there are signs of impairment, and if signs of impairment are recognized, it is decided whether or not there is the need to recognize an impairment loss based on future cash flows.

For the calculation of share value when deciding the acquisition cost for Estoh Co., Ltd., NOK adopted primarily the DCF method assuming the business plans that had been disclosed, and utilized multiple methods of calculating corporate value including comparable company analysis. Evaluation and calculation were performed with comprehensive consideration for these results.

Future business plans involve uncertainty in management judgments and estimates. In the event of a change to the preconditions and assumptions of the estimates, there is the possibility of a significant effect on assessment of goodwill in the consolidated financial statements of the following fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Notes regarding the consolidated balance sheet** 

(1) Accumulated depreciation of property, plant and equipment ¥671,688 million

Accumulated depreciation of property, plant and equipment includes accumulated impairment loss.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Notes regarding the consolidated statement of income** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Impairment loss

In the current fiscal year, the NOK Group recorded impairment loss on the following asset groups.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Overview of asset groups for which impairment loss was recognized

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Location | &nbsp;&nbsp;Description | &nbsp;&nbsp;Classification |
| &nbsp;&nbsp;Soma City, Fukushima Prefecture | &nbsp;&nbsp;Idle assets | &nbsp;&nbsp;Construction in progress |
| &nbsp;&nbsp;Kusu Town, Kusu District, Oita Prefecture | &nbsp;&nbsp;Business assets | &nbsp;&nbsp;Machinery, equipment, and vehicles; land |
| &nbsp;&nbsp;Pécel, Hungary | &nbsp;&nbsp;Idle assets | &nbsp;&nbsp;Construction in progress; machinery, equipment, and vehicles; tools, furniture, and fixtures; etc. |
| &nbsp;&nbsp;České Budějovice, Czech Republic | &nbsp;&nbsp;Idle assets | &nbsp;&nbsp;Machinery, equipment, and vehicles |
| &nbsp;&nbsp;San Luis Potosi State, Mexico | &nbsp;&nbsp;Idle assets | &nbsp;&nbsp;Buildings and structures, lease assets, construction in progress, etc. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Ground for recognition of impairment loss

As for the asset groups, future recoverability was examined because of their indication of impairment due to a decline of profitability along with changes in market and business environment. Accordingly, the NOK Group reduced their book value to the recoverable amount, and recognized the amount of decrease as impairment loss under extraordinary loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Components of impairment loss

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;(Millions of yen) |
| &nbsp;&nbsp;Type of noncurrent assets | &nbsp;&nbsp;Amount |
| &nbsp;&nbsp;Buildings and structures | &nbsp;&nbsp;106 |
| &nbsp;&nbsp;Machinery, equipment and vehicles | &nbsp;&nbsp;455 |
| &nbsp;&nbsp;Tools, furniture and fixtures | &nbsp;&nbsp;9 |
| &nbsp;&nbsp;Land | &nbsp;&nbsp;4 |
| &nbsp;&nbsp;Construction in progress | &nbsp;&nbsp;799 |
| &nbsp;&nbsp;Lease assets (tangible) | &nbsp;&nbsp;101 |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;1477 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Method of grouping assets

The NOK Group groups assets based on, in principle, division in accordance with business segment under management accounting, deeming it as the smallest unit that generates cash flows. However, the NOK Group groups assets of some consolidated subsidiaries by the unit of subsidiary company. Moreover, corporate assets such as head office are categorized into shared assets, since these assets do not generate independent cash flows as assets that contribute to the generation of future cash flows of multiple assets or groups of assets.

Idle assets and assets to be disposed of are grouped for individual assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Method of determining recoverable amount

The recoverable amount is determined based on the net realizable value. The net realizable value is evaluated using the disposal value.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Notes regarding the consolidated statement of changes in net assets** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters concerning the total number of shares issued

---

| | | | | |
|:---|:---|:---|:---|:---|
| Type of shares | Number of shares at the beginning of the current fiscal year | Increase in number of shares during the current fiscal year | Decrease in number of shares during the current fiscal year | Number of shares at the end of the current fiscal year |
| Common shares | 173,138,537 shares | – shares | 12,235,447 shares | 160,903,090 shares |

---

---

| | |
|:---|:---|
| Note: | The decrease in the total number of issued shares is due to the retirement of treasury stock. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters concerning the number of treasury stock shares

---

| | | | | |
|:---|:---|:---|:---|:---|
| Type of shares | Number of shares at the beginning of the current fiscal year | Increase in number of shares during the current fiscal year | Decrease in number of shares during the current fiscal year | Number of shares at the end of the current fiscal year |
| Common shares | 9,987,627 shares | 4,802,386 shares | 12,732,018 shares | 2,057,995 shares |

---

---

| | | |
|:---|:---|:---|
| Notes: | 1. | The increase in the number of shares of treasury stock is due to the purchase of 286 odd-lot shares, the acquisition of 4,799,600 shares of treasury stock based on a resolution of a Board of Directors meeting held on February 5, 2026, and 2,500 shares that are the attributable portion to the Company out of the treasury stock (the Company's stock) acquired by entities accounted for using the equity method. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The decrease in the number of shares of treasury stock is due to a decrease of 56,771 shares resulting
from provision of stock to eligible individuals from the Board Incentive Program (BIP) Trust, the sale of 439,800 shares from the Employee
Stock Ownership Plan (J-ESOP) to the NOK Stock Ownership Association, and a decrease of 12,235,447 shares resulting from retirement of
treasury stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The number of shares of treasury stock at the end of the fiscal year consists of 1,583,307 shares owned
by the Board Incentive Program (BIP) Trust, 383,100 shares owned by the Employee Stock Ownership Plan (J-ESOP), and 91,355 shares that
are the attributable portion to the Company out of the treasury stock (the Company's stock) owned by entities accounted for using
the equity method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters concerning dividends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Payment of dividends

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Resolution) | Type of shares | Total amount of dividends<br> (Millions of yen) | &nbsp;&nbsp; Dividends<br> per share<br> (Yen) | Record date | Effective date |
| The Annual Shareholders' Meeting held on <br> June 26, 2025 | Common shares | 9113 | 55.0 | March 31, 2025 | June 27, 2025 |
| The Board of Directors meeting held on <br> November 10, 2025 | Common shares | 10770 | 65.0 | September 30, 2025 | December 5, 2025 |

---

---

| | |
|:---|:---|
| Notes: | 1. Total amount of dividends resolved by the Annual Shareholders' Meeting held on June 26, 2025 includes dividends of 90 million yen paid for the Company's stock owned by the Board Incentive Program (BIP) Trust and 45 million yen paid for the Company's stock owned by the Employee Stock Ownership Plan (J-ESOP). |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Total amount of dividends resolved by a Board of Directors meeting held on November 10, 2025 includes
dividends of 105 million yen paid for the Company's stock owned by the Board Incentive Program (BIP) Trust and 37 million yen paid
for the Company's stock owned by the Employee Stock Ownership Plan (J-ESOP).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Dividends for which the effective date will fall after the end of the current fiscal year among those whose
record date is within the current fiscal year

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (Resolution) | Type of shares | &nbsp;&nbsp; Total amount of dividends<br> (Millions of yen) | Source of dividends | &nbsp;&nbsp; Dividends per share<br> (Yen) | Record date | Effective date |
| The Annual Shareholders' Meeting held on <br> June 25, 2026 | Common shares | 10458 | Retained earnings | 65.0 | March 31, 2026 | June 26, 2026 |

---

---

| | |
|:---|:---|
| Note: | Total amount of dividends resolved by the Annual Shareholders' Meeting held on June 25, 2026 includes dividends of 102 million yen paid for the Company's stock owned by the Board Incentive Program (BIP) Trust and 24 million yen paid for the Company's stock owned by the Employee Stock Ownership Plan (J-ESOP). |

---

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Notes regarding financial instruments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters regarding the situation of financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Policy for handling financial instruments

The NOK Group has a policy of managing funds by investing in safe and secure targets and raising funds mainly by means of loans from financial institutions. For derivatives, the NOK Group uses forward exchange contracts and currency swaps based on actual demand and does not carry out speculative transactions of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Details and risks of financial instruments and risk management system

Notes and accounts receivable - trade, and electronically recorded monetary claims, are operating receivables that are exposed to credit risk of customers. With regard to this risk, the NOK Group adopts a system to manage due dates and balance of individual business partners and ascertain the credit status of principal business partners semiannually in accordance with the credit management regulations of the NOK Group.

Shares are investment securities and exposed to the market price fluctuation risk. The shares possessed by the NOK Group are mainly those of the companies with which the NOK Group has business relations, the fair values of which are ascertained periodically and reported to officers in charge of finance.

Employees who receive loans from the Company are obligated to provide collateral. In addition, there are regulations that the balance of the loan upon retirement shall be offset by the retirement allowance.

Accounts payable - trade are trade liabilities and become due within one year.

Short-term loans payable are mainly for raising funds pertaining to business transactions, while long-term loans payable (to be payable within five years in principle) are for raising funds for capital investment. Floating interest rate loans are exposed to interest rate fluctuation risk. For some floating interest rate long-term loans payable, derivative transactions (interest rate swaps) are used for each loan contract as hedging instruments to hedge risks of fluctuations in interest rates on loans and to fix the amount of interest on loans. Because the hedge meets the requirements of special treatment of interest rate swaps, assessment of hedge effectiveness has been omitted and replaced with the judgment thereof.

The NOK Group carries out and manages derivative transactions in accordance with internal regulations which stipulate the authorities to carry out transactions. The NOK Group carries out derivative transactions only with financial institutions with high credit ratings in order to reduce the credit risk.

Trade liabilities and loans are exposed to liquidity risk. Individual companies of the NOK Group manage them by means such as planning monthly cash flow management.

Deposits received from employees yield fixed interest rate and are not exposed to interest rate fluctuation risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Additional explanation of matters regarding fair value, etc. of financial instruments

The amounts, etc. of contracts related to derivative transactions in "(2) Matters regarding fair value, etc. of financial instruments" do not themselves indicate the market risk associated with the derivative transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters regarding fair value, etc. of financial instruments

As of March 31, 2026, the amount recorded in the consolidated balance sheet, fair value, and difference between them are as shown in the table below. Shares and other securities without quoted market price (¥70,384 million on the consolidated balance sheet) are not included in "(1) Investment securities."

As for "Cash and deposits," "Notes and accounts receivable - trade," "Electronically recorded monetary claims," "Accounts payable - trade," "Short-term loans payable" and "Deposits received from employees," since these accounts are settled in a short period of time, the fair value is nearly equal to the book value, and thus the information has been omitted.

(Millions of yen)

---

| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;Amount recorded in consolidated balance sheet | Fair value | Difference |
| (1) Investment securities | &nbsp;&nbsp;82544 | &nbsp;&nbsp;82544 | &nbsp;&nbsp;– |
| (2) Long-term loans receivable from employees | &nbsp;&nbsp;1080 | &nbsp;&nbsp;1083 | &nbsp;&nbsp;2 |
| Total assets | &nbsp;&nbsp;83625 | &nbsp;&nbsp;83628 | &nbsp;&nbsp;2 |
| (1) Long-term loans payable | &nbsp;&nbsp;14364 | &nbsp;&nbsp;14359 | &nbsp;&nbsp;(5) |
| Total liabilities | &nbsp;&nbsp;14364 | &nbsp;&nbsp;14359 | &nbsp;&nbsp;(5) |
| Total derivative transactions (\*) | &nbsp;&nbsp;(480) | &nbsp;&nbsp;(480) | &nbsp;&nbsp;– |

---

---

| | |
|:---|:---|
| (\*) | Amounts of claims and liabilities derived from derivative transactions are shown in net amount. Amounts in parentheses show that those are net liabilities. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters regarding the breakdown by appropriate classification of fair values of financial instruments

Based on the observability and the materiality of the inputs used to measure the fair value, fair values of financial instruments are classified into the following three levels:

Level 1 fair value: Fair value measured using quoted prices in active markets that are observable inputs for measurement of fair values

Level 2 fair value: Fair value measured using inputs other than those used to measure level 1 fair value among observable inputs for measurement of fair values

Level 3 fair value: Fair value measured using unobservable inputs for measurement of fair values

In cases where multiple inputs are used to measure the fair value, the fair value of financial instruments is classified to the lowest priority level of fair value measurement to which each input belongs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Financial assets and financial liabilities using fair value for their amounts recorded in the consolidated
balance sheet

(Millions of yen)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Item | Fair values | Fair values | Fair values | Fair values |
| Item | Level 1 | Level 2 | Level 3 | Total |
| &nbsp;&nbsp;Investment securities | &nbsp;&nbsp;82544 | &nbsp;&nbsp;– | &nbsp;&nbsp;– | &nbsp;&nbsp;82544 |
| &nbsp;&nbsp;Derivative transactions | &nbsp;&nbsp;– | &nbsp;&nbsp;480 | &nbsp;&nbsp;– | &nbsp;&nbsp;480 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Financial assets and financial liabilities not using fair value for their amounts recorded in the consolidated
balance sheet

(Millions of yen)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Item | Fair values | Fair values | Fair values | Fair values |
| Item | Level 1 | Level 2 | Level 3 | Total |
| &nbsp;&nbsp;Long-term loans receivable from employees | &nbsp;&nbsp;– | &nbsp;&nbsp;1083 | &nbsp;&nbsp;– | &nbsp;&nbsp;1083 |
| &nbsp;&nbsp;Long-term loans payable | &nbsp;&nbsp;– | &nbsp;&nbsp;14359 | &nbsp;&nbsp;– | &nbsp;&nbsp;14359 |

---

Note: Explanation of evaluation techniques used for measuring fair value and inputs regarding measuring fair value

Investment securities

Listed shares are measured using the quoted market price. Since listed shares are traded in an active market, their fair values are classified as level 1 fair value.

Derivative transactions

Derivatives are measured based on the price, etc. provided by financial institutions, and their fair values are classified as level 2 fair value.

Because derivative transactions to which the special treatment of interest rate swaps applies are treated together with long-term loans payable which may be hedged, the fair value of such derivative transactions is included in the fair value of such long-term loans payable.

Long-term loans receivable from employees

Long-term loans receivable from employees are classified by a certain period of time and measured using the present value calculated by discounting their future cash flow using the interest rate based on the yield of government bonds. Their fair values are classified as level 2 fair value.

Long-term loans payable

Because long-term loans payable with floating interest rate reflect market interest rates in a short period of time and the credit standing of the Company has not changed significantly since the loans were executed, the fair value is deemed nearly equal to the book value. Therefore, long-term loans payable with floating interest rate are measured using the book value, and their fair values are classified as level 2 fair value. In addition, long-term loans payable with fixed interest rate are classified by a certain period of time and measured using the present value calculated by discounting the total amount of the principal and interest using the interest rates considered to be applicable to similar loans. Their fair values are classified as level 2 fair value.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Notes regarding investment and rental properties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters related to status of investment and rental properties

The Company and some consolidated subsidiaries have properties for rent in Kanagawa prefecture and other regions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters related to the fair value of investment and rental properties

(Millions of yen)

---

| | |
|:---|:---|
| &nbsp;&nbsp;Amount on the consolidated balance sheet | &nbsp;&nbsp;Fair value |
| &nbsp;&nbsp;2,068 | &nbsp;&nbsp;9,661 |

---

---

| | | |
|:---|:---|:---|
| Notes: | 1. | The amount on the consolidated balance sheet is the amount of acquisition cost less accumulated depreciation and impairment loss. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The fair values of investment and rental properties as of March 31, 2026 are estimated
by the company that owns the property according to indicators thought to appropriately reflect market prices.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Notes regarding revenue recognition** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Information on disaggregation of revenue from contracts with customers

The following is the information on disaggregation of revenue by major goods or services and major regional markets.

Current fiscal year (April 1, 2025 to March 31, 2026)

(Millions of yen)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Reportable segments | Reportable segments | Reportable segments | Total |
| | Seal | &nbsp;&nbsp; Electronic<br> product | Other | Total |
| Major goods or services | Major goods or services | Major goods or services | Major goods or services | Major goods or services |
| &nbsp;&nbsp;&nbsp;Automotive-related | 279558 | 73036 | 4175 | 356770 |
| &nbsp;&nbsp;&nbsp;Electronics-related |  | 272073 |  | 272073 |
| &nbsp;&nbsp;&nbsp;Other general industrial machinery | 87839 | – | 21750 | 109590 |
| Total | 367397 | 345109 | 25926 | 738434 |
| Major regional markets | Major regional markets | Major regional markets | Major regional markets | Major regional markets |
| &nbsp;&nbsp;&nbsp;Japan | 215936 | 14502 | 14899 | 245338 |
| &nbsp;&nbsp;&nbsp;China | 70052 | 240769 | 5729 | 316551 |
| &nbsp;&nbsp;&nbsp;Other Asian countries | 57686 | 65782 | 4609 | 128077 |
| &nbsp;&nbsp;&nbsp;Other | 23721 | 24055 | 688 | 48465 |
| Total | 367397 | 345109 | 25926 | 738434 |

---

---

| | |
|:---|:---|
| Note: | The amount is after deducting inter-segment sales or transfers. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Information as a basis to understand revenue from contracts with customers

The Company and its consolidated subsidiaries recognize revenue based on the following five step approach.

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the separate performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The Company and its consolidated subsidiaries have automotive manufacturers, construction machinery manufacturers, electronic equipment manufacturers and some others as major clients, and mainly manufacture and sell seal products, industrial functional parts, hydraulic equipment, plant machinery, nuclear power equipment, synthetic chemical products and electronic products.

The main performance obligations of the Company and its consolidated subsidiaries are to supply finished goods to customers. As the Company and its consolidated subsidiaries, in principle, judge that a performance obligation is satisfied when products are delivered and control is transferred to a customer, the Company and its consolidated subsidiaries recognize revenue at that point in time. However, for sales in Japan, in the case that a period between shipping and the transfer of control is typical, the Company and its consolidated subsidiaries recognize revenue at the time of shipping.

To determine a transaction price, we deduct discounts, in particular, from consideration promised in the contract with a customer.

The Company and its consolidated subsidiaries receive consideration for these performance obligations within approximately one year after such obligations are satisfied according to payment terms separately set forth, which does not include a significant financing component.

Please note that, for subcontract processing transactions with supply of materials for value that is a repurchase agreement are treated as financial transactions, and outstanding supplies at recipient of supplies are recognized as inventories. At the same time, the amount equivalent to the outstanding supplies at recipient of supplies is recognized as "Liabilities for subcontract processing transactions with supply of materials for value." For subcontract processing transactions with receipt of materials for value, only net amount of costs of conversion is recognized as revenue. Furthermore, the revenue of transactions where the Company is acting as an agent to sell products to a customer is recognized at the amount obtained by deducting payments to third parties from the entire amount of the consideration received from the customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Information for understanding the amounts of revenue for the current and subsequent fiscal years

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Balance of contract assets and contract liabilities, etc.

Description of contract assets and contract liabilities of the Company and its consolidated subsidiaries has been omitted because their balance is immaterial and there were no significant changes thereto. In addition, revenue recognized in the current fiscal year from performance obligations satisfied or partly satisfied in past periods is immaterial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Transaction price allocated to the remaining performance obligations

Description of transaction price allocated to the remaining performance obligations of the Company and its consolidated subsidiaries has been omitted as a practical expedient because there were no significant contracts having an original expected duration of over one year. Moreover, any material consideration from contracts with customers was not included in the transaction price.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Notes regarding income taxes in relation to the global minimum tax** 

The amount of income taxes in relation to the global minimum tax, which is included in income taxes - current, is 629 million yen.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Notes regarding per-share information** 

(1) Net assets per share ¥3,933.75 <br> (2) Net income per share ¥284.84

---

| | | |
|:---|:---|:---|
| Notes: | 1. | The Company's shares held by the Board Incentive Program (BIP) Trust for directors' remuneration are included in the treasury stock deducted from the total number of issued and outstanding shares at fiscal year-end for the calculation of "Net assets per share." The deducted total number of such shares of treasury stock at fiscal year-end was 1,583 thousand shares. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company's shares held by the BIP Trust for directors' remuneration are included in the
treasury stock deducted in the calculation of the average number of shares during the period for the calculation of "Net income
per share." The deducted average number of such shares of treasury stock during the period was 1,616 thousand shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Company's shares held by the Employee Stock Ownership Plan (J-ESOP) are included in the treasury
stock deducted from the total number of issued and outstanding shares at fiscal year-end for the calculation of "Net assets per
share." The deducted total number of such shares of treasury stock at fiscal year-end was 383 thousand shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company's shares held by the J-ESOP are included in the treasury stock deducted in the calculation
of the average number of shares during the period for the calculation of "Net income per share." The deducted average number
of such shares of treasury stock during the period was 601 thousand shares.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Notes regarding corporate affiliations** 

Business divestiture

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Overview of business divestiture

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Name of divested corporation

SMC0301 Co., Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Name of divested subsidiary and type of business

Name of subsidiary: SYNZTEC Co., Ltd. and its seven subsidiaries

Type of business: Manufacture and sale of products such as various roll products for printers and other OA equipment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Reason for business divestiture

As part of the three-year Medium-Term Management Plan (fiscal 2023 to fiscal 2025) aimed at sustainable growth, the Company positioned optimal allocation of management resources as a key strategic initiative. The Company's roll product business has consistently provided value-added and high quality products backed by its strong technological capabilities, even amid significant changes in the office equipment market such as the shift toward paperless operations. However, the business environment surrounding this segment continues to be increasingly challenging due to factors such as declining demand caused by external conditions and business restructuring among customers. Given these circumstances, we have determined that it would be most beneficial for the roll products business—recognized for its strong technological capabilities and solid product foundation—to further develop under the strategic direction of SMBC Capital Partners Co., Ltd., an investment-focused subsidiary of the SMBC Group, possessing extensive management support expertise, resources, and networks. Accordingly, the Company decided to transfer all shares of SYNZTEC Co., Ltd. held by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Date of business divestiture

January 30, 2026 (deemed date of sale: January 1, 2026)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Matters related to overview of other transactions that include legal structure

Share transfer in which consideration received is only cash and other property

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Overview of implemented accounting treatment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Amount of gain or loss on transfer

Loss on sale of shares of subsidiaries and associates ¥9,376 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Appropriate book value of assets and liabilities involved in the transferred business, and the primary contents
thereof

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| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Millions of yen) |
| &nbsp;&nbsp;&nbsp;&nbsp;Current assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13314 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncurrent assets | &nbsp;&nbsp;&nbsp;&nbsp;5700 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | &nbsp;&nbsp;&nbsp;&nbsp;19015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities | &nbsp;&nbsp;&nbsp;&nbsp;3485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncurrent liabilities | &nbsp;&nbsp;&nbsp;&nbsp;687 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | &nbsp;&nbsp;&nbsp;&nbsp;4173 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Accounting treatment

The difference between the transfer price and the book value of the transferred shares was recorded as "Loss on sale of shares of subsidiaries and associates" under extraordinary losses.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Reportable segment that included the divested business

Other

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Approximate amounts of gain or loss related to the divested business that were recorded in the consolidated
statement of income for the current fiscal year

(Millions of yen) <br> Net sales 15,243 <br> Operating income 805

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Other notes** 

As a result of consolidating the retirement benefit plans which were previously divided into multiple plans on April 1, 2025, the Company and some consolidated subsidiaries indicate the retirement benefit assets and liabilities as net amounts.

**<u>Financial Statements</u>**

**STATEMENT OF CHANGES IN NET ASSETS** (From April 1, 2025 to March 31, 2026)

(Millions of yen)

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
| | Capital stock | Capital surplus | Capital surplus | Capital surplus | Retained earnings | Retained earnings | Retained earnings | Retained earnings | Retained earnings | Treasury stock | &nbsp;&nbsp;&nbsp;Total<br> shareholders' equity |
| | Capital stock | Legal capital surplus | Other capital surplus | Total capital surplus | Legal retained earnings | Other retained earnings | Other retained earnings | Other retained earnings | Total retained earnings | Treasury stock | &nbsp;&nbsp;&nbsp;Total<br> shareholders' equity |
| | Capital stock | Legal capital surplus | Other capital surplus | Total capital surplus | Legal retained earnings | &nbsp;&nbsp; Reserve for special<br> depreciation | &nbsp;&nbsp;&nbsp;Reserve for advanced depreciation <br> of noncurrent assets | &nbsp;&nbsp; Retained<br> earnings brought<br> forward | Total retained earnings | Treasury stock | &nbsp;&nbsp;&nbsp;Total<br> shareholders' equity |
| Balance at the beginning of current period | 23335 | &nbsp;&nbsp;&nbsp;20397 | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;20397 | &nbsp;&nbsp;&nbsp;2983 | &nbsp;&nbsp;&nbsp;2 | &nbsp;&nbsp;&nbsp;2465 | &nbsp;&nbsp;&nbsp;203932 | &nbsp;&nbsp;&nbsp;209384 | &nbsp;&nbsp;&nbsp;(17604) | &nbsp;&nbsp;&nbsp;235513 |
| Changes of items during the period |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Dividends from surplus |  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;(19884) | &nbsp;&nbsp;&nbsp;(19884) |  | &nbsp;&nbsp;&nbsp;(19884) |
| &nbsp;&nbsp;Reversal of reserve for special depreciation |  |  |  |  |  | &nbsp;&nbsp;&nbsp;(2) |  | &nbsp;&nbsp;&nbsp;2 | &nbsp;&nbsp;&nbsp;– |  | &nbsp;&nbsp;&nbsp;– |
| &nbsp;&nbsp;Reversal of reserve for advanced depreciation of noncurrent assets |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;(14) | &nbsp;&nbsp;&nbsp;14 | &nbsp;&nbsp;&nbsp;– |  | &nbsp;&nbsp;&nbsp;– |
| &nbsp;&nbsp;Net income |  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;43973 | &nbsp;&nbsp;&nbsp;43973 |  | &nbsp;&nbsp;&nbsp;43973 |
| &nbsp;&nbsp;Purchase of treasury stock |  |  |  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;(15071) | &nbsp;&nbsp;&nbsp;(15071) |
| &nbsp;&nbsp;Disposal of treasury stock |  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;661 | &nbsp;&nbsp;&nbsp;661 |
| &nbsp;&nbsp;Retirement of treasury stock |  |  | &nbsp;&nbsp;&nbsp;(29554) | &nbsp;&nbsp;&nbsp;(29554) |  |  |  | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;29554 | &nbsp;&nbsp;&nbsp;– |
| &nbsp;&nbsp;Transfers from retained earnings to capital surplus |  |  | &nbsp;&nbsp;&nbsp;29554 | &nbsp;&nbsp;&nbsp;29554 |  |  |  | &nbsp;&nbsp;&nbsp;(29554) | &nbsp;&nbsp;&nbsp;(29554) |  | &nbsp;&nbsp;&nbsp;– |
| &nbsp;&nbsp;Net changes of items other than shareholders' equity |  |  |  |  |  |  |  |  |  |  |  |
| Total changes of items during the period | – | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;(2) | &nbsp;&nbsp;&nbsp;(14) | &nbsp;&nbsp;&nbsp;(5447) | &nbsp;&nbsp;&nbsp;(5464) | &nbsp;&nbsp;&nbsp;15144 | &nbsp;&nbsp;&nbsp;9679 |
| Balance at the end of current period | 23335 | &nbsp;&nbsp;&nbsp;20397 | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;20397 | &nbsp;&nbsp;&nbsp;2983 | &nbsp;&nbsp;&nbsp;– | &nbsp;&nbsp;&nbsp;2450 | &nbsp;&nbsp;&nbsp;198485 | &nbsp;&nbsp;&nbsp;203919 | &nbsp;&nbsp;&nbsp;(2460) | &nbsp;&nbsp;&nbsp;245192 |

---

---

| | | | |
|:---|:---|:---|:---|
| | Valuation and translation adjustments | Valuation and translation adjustments | Total net assets |
| | &nbsp;&nbsp;&nbsp;Valuation difference on available-for-<br> sale securities | Total valuation and translation adjustments | Total net assets |
| Balance at the beginning of current period | 54691 | 54691 | 290205 |
| Changes of items during the period |  |  |  |
| &nbsp;&nbsp;Dividends from surplus |  |  | (19884) |
| &nbsp;&nbsp;Reversal of reserve for special depreciation |  |  | – |
| &nbsp;&nbsp;Reversal of reserve for advanced depreciation of noncurrent assets |  |  | – |
| &nbsp;&nbsp;Net income |  |  | 43973 |
| &nbsp;&nbsp;Purchase of treasury stock |  |  | (15071) |
| &nbsp;&nbsp;Disposal of treasury stock |  |  | 661 |
| &nbsp;&nbsp;Retirement of treasury stock |  |  | – |
| &nbsp;&nbsp;Transfers from retained earnings to capital surplus |  |  | – |
| &nbsp;&nbsp;Net changes of items other than shareholders' equity | (8175) | (8175) | (8175) |
| Total changes of items during the period | (8175) | (8175) | 1504 |
| Balance at the end of current period | 46516 | 46516 | 291709 |

---

Note: Figures are rounded down to the nearest million yen.

**<u>Notes to Financial Statements</u>**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Notes regarding the significant accounting policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Valuation criteria and methods for assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Valuation criteria and methods for securities that have been traded on the exchange and other investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Stocks and investments in subsidiaries and affiliates have been valued at cost based on the moving average
method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Available-for-sale securities

● Those other than shares and other securities without quoted market price

Stated at market value. (Valuation difference is reported as a component of net assets. Cost of sales is calculated using the moving average method.)

● Shares and other securities without quoted market price

They are stated at cost with the cost being determined by the moving average method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Derivatives

They are stated at market price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Inventories

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Finished goods and work in process

They are valued at cost based on the retail method (balance sheet amounts are determined by writing down the book value according to the decrease in profitability).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Raw materials and supplies

They are valued at cost based on the periodic average method (balance sheet amounts are determined by writing down the book value according to the decrease in profitability).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Method of depreciation of noncurrent assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Property, plant and equipment (excluding lease assets)

Depreciation is computed by the straight-line method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Intangible assets (excluding lease assets)

Amortization is computed by the straight-line method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Lease assets

Lease assets related to finance leases other than those deemed to transfer ownership of leased property to the lessee by the Company

Depreciation is calculated on the straight-line method over the lease period as the useful life and assuming no residual value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Accounting policies for allowances

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Allowance for doubtful accounts

To prepare for losses on bad debt, general claims are accounted using the loan loss ratio and doubtful claims are accounted as the expected unrecoverable amount taking into consideration of the recoverability of individual claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Provision for bonuses

In order to prepare for the payment of employee bonuses, accrued bonuses based on the estimated amount of payment have been entered in the accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Provision for retirement benefits

To provide for accrued employees' retirement benefits, the Company provides an allowance in the amount deemed to have accrued at the end of the current fiscal year based on estimated retirement benefit obligations and pension assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Method for attributing expected retirement benefits to periods

In the calculation of retirement benefit obligations, the method of attributing expected retirement benefits to periods up to the end of the current business year is the benefit formula basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Method of expenses for actuarial differences

Actuarial differences are treated as expenses in equal installments using the straight-line method over a prescribed period of time (10 years) that is within the average remaining period of employment for the employees in question, beginning in the year following the fiscal year in which such calculations are made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Provision for share awards for directors (and other officers)

To allow for granting of awards in the form of the Company's shares, etc. to Directors and other officers of the Company, the Company records a provision for the estimated award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Method for Accounting for Retirement Benefits

The method of accounting for unprocessed amount of unrecognized actuarial differences in relation to retirement benefits is different from the method of accounting for them in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Accounting policies for revenue and expenses

Since the details of main performance obligations in main businesses related to revenue from contracts with customers of the Company and the timing when the performance obligations are typically satisfied (typical timing of revenue recognition) are the same as the description in "8. Notes regarding revenue recognition" in the Notes to Consolidated Financial Statements, this information has been omitted.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Notes regarding accounting estimates** 

The following is the information on accounting estimates recorded on the financial statements for the current fiscal year that may exert material effects on the financial statements of the next fiscal year.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;(1) Deferred tax liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;¥3,313 million |
| &nbsp;&nbsp;&nbsp;&nbsp;(2) Impairment loss |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | &nbsp;&nbsp;&nbsp;&nbsp;¥53,642 million |
| &nbsp;&nbsp;&nbsp;&nbsp;(3) Provision for retirement benefits |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for retirement benefits | &nbsp;&nbsp;&nbsp;&nbsp;¥31,504 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Notes regarding the balance sheet** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;(1) Accumulated depreciation of property, plant and equipment | &nbsp;&nbsp;&nbsp;&nbsp;(1) Accumulated depreciation of property, plant and equipment | &nbsp;&nbsp;&nbsp;&nbsp;¥185,105 million | &nbsp;&nbsp;&nbsp;&nbsp;¥185,105 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation of property, plant and equipment includes accumulated impairment loss. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation of property, plant and equipment includes accumulated impairment loss. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation of property, plant and equipment includes accumulated impairment loss. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation of property, plant and equipment includes accumulated impairment loss. |
| &nbsp;&nbsp;&nbsp;&nbsp;(2) Monetary claims or liabilities to subsidiaries and affiliates | &nbsp;&nbsp;&nbsp;&nbsp;(2) Monetary claims or liabilities to subsidiaries and affiliates | &nbsp;&nbsp;&nbsp;&nbsp;(2) Monetary claims or liabilities to subsidiaries and affiliates |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term claims | &nbsp;&nbsp;&nbsp;&nbsp;¥77,583 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term claims | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term claims | &nbsp;&nbsp;&nbsp;&nbsp;¥3,671 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term liabilities | &nbsp;&nbsp;&nbsp;&nbsp;¥58,014 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term liabilities | &nbsp;&nbsp;&nbsp;&nbsp;¥16 million |
| &nbsp;&nbsp;&nbsp;&nbsp;(3) Liabilities for guarantees | &nbsp;&nbsp;&nbsp;&nbsp;(3) Liabilities for guarantees | &nbsp;&nbsp;&nbsp;&nbsp;(3) Liabilities for guarantees |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is guaranteeing borrowings of subsidiaries and affiliates from financial institutions as follows. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is guaranteeing borrowings of subsidiaries and affiliates from financial institutions as follows. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is guaranteeing borrowings of subsidiaries and affiliates from financial institutions as follows. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is guaranteeing borrowings of subsidiaries and affiliates from financial institutions as follows. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mektec Manufacturing Corporation (Suzhou) | ¥19,713 million | ¥19,713 million | ¥19,713 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(in foreign currency terms) | (US$3,167 thousand) | (US$3,167 thousand) | (US$3,167 thousand) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(in foreign currency terms) | (CNY830,401 thousand) | (CNY830,401 thousand) | (CNY830,401 thousand) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mektec Manufacturing Corporation (Taiwan) Ltd. | ¥3,994 million | ¥3,994 million | ¥3,994 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(in foreign currency terms) | (NT$800,000 thousand) | (NT$800,000 thousand) | (NT$800,000 thousand) |

---

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Notes regarding the statement of income** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Transactions with subsidiaries and affiliates |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales to subsidiaries and affiliates | ¥38,537 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases from subsidiaries and affiliates | ¥156,118 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions with subsidiaries and affiliates other than business transactions | ¥81,506 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Notes regarding the statement of changes in net assets** 

Matters concerning the number of treasury stock shares

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Type of shares | &nbsp;&nbsp;Number of shares at the beginning of the current fiscal year | Increase in number of shares during the current fiscal year | &nbsp;&nbsp;Decrease in number of shares during the current fiscal year | &nbsp;&nbsp;Number of shares at the end of the current fiscal year |
| &nbsp;&nbsp;Common shares | &nbsp;&nbsp;9,898,772 shares | &nbsp;&nbsp;4,799,886 shares | &nbsp;&nbsp;12,732,018 shares | &nbsp;&nbsp;1,966,640 shares |

---

Notes: 1. The increase in the number of shares of treasury stock is due to the purchase of 286 odd-lot shares, and the acquisition of 4,799,600 shares of treasury stock based on a resolution of a Board of Directors meeting held on February 5, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The decrease in the number of shares of treasury stock is due to a decrease of 56,771 shares resulting
from provision of stock to eligible individuals from the Board Incentive Program (BIP) Trust, the sale of 439,800 shares from the Employee
Stock Ownership Plan (J-ESOP) to the NOK Stock Ownership Association, and the retirement of 12,235,447 shares of treasury stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The number of shares of treasury stock at the end of the fiscal year consists of 1,583,307 shares owned
by the Board Incentive Program (BIP) Trust and 383,100 shares owned by the Employee Stock Ownership Plan (J-ESOP).

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Tax effect accounting** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Breakdown of deferred tax assets/liabilities by cause

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Deferred tax assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts | ¥46 million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued enterprise tax | ¥593 million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bonuses | ¥1,243 million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess amount of depreciation | ¥1,726 million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on impairment of noncurrent assets | ¥1,370 million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | ¥1,529 million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for retirement benefits | ¥9,797 million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | ¥1,439 million | ¥17,748 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance |  | ¥(1226) million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax assets |  | ¥16,521 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Deferred tax liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for advanced depreciation of noncurrent assets | ¥(369) million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation difference on available-for-sale securities | ¥(19463) million |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | ¥(2) million | ¥(19835) million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net amount of deferred tax liabilities** |  | ¥(3313) million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Breakdown of major adjustments that have caused differences between the effective statutory tax rate and
the effective rate of income taxes after tax effect accounting is applied

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective statutory tax rate | 30.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Permanently non-deductible items including entertainment expense | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Permanently non-taxable items including dividend income | (8.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equalization inhabitant taxes | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax credit | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign withholding tax | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes in relation to the global minimum tax | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | (1.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective rate of income taxes after tax effect accounting is applied | 22.0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Accounting treatment for corporation tax and local corporation tax, or accounting treatment of related tax
effect accounting

The Company has adopted a group tax sharing system. Furthermore, in accordance with the "Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System" (Practical Solution No. 42, August 12, 2021), the Company is carrying out accounting treatment for corporation tax and local corporation tax, or accounting treatment and disclosure of related tax effect accounting.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Notes regarding transactions with related parties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subsidiaries and affiliates

---

| | |
|:---|:---|
| &nbsp;&nbsp;Category | &nbsp;&nbsp;Subsidiary |
| &nbsp;&nbsp;Name | &nbsp;&nbsp;MEKTEC CORPORATION |
| &nbsp;&nbsp;Location | &nbsp;&nbsp;Minato Ward, Tokyo |
| &nbsp;&nbsp;Capital or investment amount | &nbsp;&nbsp;¥5,000 million |
| &nbsp;&nbsp;Type of business or occupation | &nbsp;&nbsp;Manufacture and sale of electronic parts |
| &nbsp;&nbsp;Percentage of voting rights | &nbsp;&nbsp;Direct; 100% |
| &nbsp;&nbsp;Relationship with the Company | &nbsp;&nbsp;The Company sells a part of products of the subsidiary. |
| &nbsp;&nbsp;Relationship with the Company | &nbsp;&nbsp;Interlocking of officers: 3 |
| &nbsp;&nbsp;Transaction details | &nbsp;&nbsp; Loan of funds<br> Interest income |
| &nbsp;&nbsp;Transaction amount (¥ mil) | &nbsp;&nbsp; -<br> 1010 |
| &nbsp;&nbsp;Item | &nbsp;&nbsp; Short-term loans receivable<br> CMS deposits received |
| &nbsp;&nbsp;End-of-term balance (¥ mil) | &nbsp;&nbsp; 39925<br> 15980 |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;Category | &nbsp;&nbsp;Subsidiary |
| &nbsp;&nbsp;Name | &nbsp;&nbsp;Unimatec Co., Ltd. |
| &nbsp;&nbsp;Location | &nbsp;&nbsp;Minato Ward, Tokyo |
| &nbsp;&nbsp;Capital or investment amount | &nbsp;&nbsp;¥400 million |
| &nbsp;&nbsp;Type of business or occupation | &nbsp;&nbsp;Manufacture and sale of synthetic chemical products, etc. |
| &nbsp;&nbsp;Percentage of voting rights | &nbsp;&nbsp;Direct; 100% |
| &nbsp;&nbsp;Relationship with the Company | &nbsp;&nbsp;The subsidiary sells a part of products to the Company. |
| &nbsp;&nbsp;Relationship with the Company | &nbsp;&nbsp;Interlocking of officers: 2 |
| &nbsp;&nbsp;Transaction details | &nbsp;&nbsp;Loan of funds |
| &nbsp;&nbsp;Transaction amount (¥ mil) | &nbsp;&nbsp;6266 |
| &nbsp;&nbsp;Item | &nbsp;&nbsp; Short-term loans receivable<br> Long-term loans receivable |
| &nbsp;&nbsp;End-of-term balance (¥ mil) | &nbsp;&nbsp; 18170<br> 2500 |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;Category | &nbsp;&nbsp;Subsidiary |
| &nbsp;&nbsp;Name | &nbsp;&nbsp;NOK Industrial Sales Corporation |
| &nbsp;&nbsp;Location | &nbsp;&nbsp;Shinjuku Ward, Tokyo |
| &nbsp;&nbsp;Capital or investment amount | &nbsp;&nbsp;¥30 million |
| &nbsp;&nbsp;Type of business or occupation | &nbsp;&nbsp;Purchase and sale of seal products, etc. |
| &nbsp;&nbsp;Percentage of voting rights | &nbsp;&nbsp;Direct; 100% |
| &nbsp;&nbsp;Relationship with the Company | &nbsp;&nbsp;Sale of the Company's products. |
| &nbsp;&nbsp;Transaction details | &nbsp;&nbsp;Funds received |
| &nbsp;&nbsp;Transaction amount (¥ mil) | &nbsp;&nbsp;4668 |
| &nbsp;&nbsp;Item | &nbsp;&nbsp;CMS deposits received |
| &nbsp;&nbsp;End-of-term balance (¥ mil) | &nbsp;&nbsp;6418 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Board members and major individual shareholders

---

| | |
|:---|:---|
| &nbsp;&nbsp;Category | &nbsp;&nbsp;The company whose board members, or their family members and other close relatives, own a majority of its voting rights. |
| &nbsp;&nbsp;Name | &nbsp;&nbsp;Seiwa Jisho Co., Ltd. |
| &nbsp;&nbsp;Location | &nbsp;&nbsp;Minato Ward, Tokyo |
| &nbsp;&nbsp;Capital or investment amount | &nbsp;&nbsp;¥80 million |
| &nbsp;&nbsp;Type of business or occupation | &nbsp;&nbsp;Real estate leasing |
| &nbsp;&nbsp;Percentage of voting rights | &nbsp;&nbsp;Direct ownership of the Company's shares; 5.5% |
| &nbsp;&nbsp;Relationship with the Company | &nbsp;&nbsp; Rental of buildings, etc.<br> Interlocking of officers: 2 |
| &nbsp;&nbsp;Transaction details | &nbsp;&nbsp;Rental of buildings, etc. |
| &nbsp;&nbsp;Transaction amount (¥ mil) | &nbsp;&nbsp;471 |
| &nbsp;&nbsp;Item | &nbsp;&nbsp;Guarantee deposits |
| &nbsp;&nbsp;End-of-term balance (¥ mil) | &nbsp;&nbsp;453 |

---

Notes: Terms and conditions of transactions and the decision-making policy therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Regarding loan of funds and receiving of capital, rates are determined based on market interest rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Lease of buildings, etc. and purchase of products, etc. are determined based on current market prices.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Notes regarding revenue recognition** 

(Information for understanding revenue from contracts with customers)

Since the information as a basis for understanding revenue from contracts with customers is the same as the description in "8. Notes regarding revenue recognition" in the Notes to Consolidated Financial Statements, this information has been omitted.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Notes regarding per-share information** 

(1) Net assets per share ¥1,835.38 <br> (2) Net income per share ¥270.15

---

| | | |
|:---|:---|:---|
| Notes: | 1. | The Company's shares held by the Board Incentive Program (BIP) Trust for directors' remuneration are included in the treasury stock deducted from the total number of issued and outstanding shares at fiscal year-end for the calculation of "Net assets per share." The deducted total number of such shares of treasury stock at fiscal year-end was 1,583 thousand shares. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company's shares held by the BIP Trust for directors' remuneration are included in the
treasury stock deducted in the calculation of the average number of shares during the period for the calculation of "Net income
per share." The deducted average number of such shares of treasury stock during the period was 1,616 thousand shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Company's shares held by the Employee Stock Ownership Plan (J-ESOP) are included in the treasury
stock deducted from the total number of issued and outstanding shares at fiscal year-end for the calculation of "Net assets per
share." The deducted total number of such shares of treasury stock at fiscal year-end was 383 thousand shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company's shares held by the J-ESOP are included in the treasury stock deducted in the calculation
of the average number of shares during the period for the calculation of "Net income per share." The deducted average number
of such shares of treasury stock during the period was 601 thousand shares.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Notes regarding corporate affiliations** 

Since the information is the same as the description in "11. Notes regarding corporate affiliations" in the Notes to Consolidated Financial Statements, this information has been omitted.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Other notes** 

As a result of consolidating the retirement benefit plans which were previously divided into multiple plans on April 1, 2025, prepaid pension cost and provision for retirement benefits are indicated as net amounts.

## Exhibit 99.4

**Exhibit 99.4**

Content of the financial statements for the

most recent fiscal year (fiscal year ended March 31,

2026) of Eagle Industry Co., Ltd. in the First Item,

"Approval of a Share Transfer Plan"

NOK CORPORATION

---

| |
|:---|
| &nbsp;&nbsp;The share transfer described in this document involves securities of a Japanese company. The share transfer is subject to disclosure requirements of Japan that are different from those of the United States. Financial information included in this document, if any, was excerpted from financial statements prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies. |
| &nbsp;&nbsp;It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment. You should be aware that the issuer may purchase securities otherwise than under the share transfer, such as in the open market or through privately negotiated purchases. |
| &nbsp;&nbsp;This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects.<br>|

---

**<u>Business Report</u>**

(April 1, 2025 to March 31, 2026)

&nbsp;&nbsp;&nbsp;&nbsp;***<u>1.</u>***  ***<u>Items Related to the Current Status of the Corporate Group</u>*** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Business Progress and Results

In the current consolidated fiscal year, the environment surrounding the Group remained characterized by high uncertainty regarding the future. In addition to prolonged geopolitical risks, shifts in the policy trends of various countries (triggered by the trade and economic policies of the new U.S. administration) led to further spikes in resource prices.

Even under these business conditions, the Group's domains saw increased revenue primarily driven by significant growth in the businesses serving the automotive, construction machinery, and semiconductor industries. As a result, net sales were 177,488 million yen (up 5.5% year on year), operating profit was 13,468 million yen (up 58.6% year on year), ordinary profit was 17,170 million yen (up 42.8% year on year), and profit attributable to owners of parent was 9,828 million yen (up 101.5% year on year).

The following shows the results in each segment.

---

| | |
|:---|:---|
| Automotive and Construction Machinery Industries | Global production volume of EVs continued to expand, leading to strong sales of solenoid valves for suspensions. Additionally, sales of conventional products for internal combustion engines remained steady. Net sales in this segment were 93,267 million yen (up 6.5% year on year) and operating profit was 3,082 million yen (up 451.0% year on year). |
| General Machinery Industry | Net sales for the segment were 39,492 million yen (down 3.3% year-on-year), as plant utilization rates in Southeast Asia continued to decline against a backdrop of intensifying competition for petrochemical products, leading to a contraction in demand for repairs. Operating profit was 5,747 million yen (up 6.7% year-on-year), primarily due to an increase in after-sales services in India. |
| Semiconductor Industry | Performance remained strong, centered on semiconductors for generative AI-related fields. Demand for our products followed a recovery trend against the backdrop of expanding demand for high-value-added memory, such as that used in AI data centers. As a result, net sales for this segment were 16,488 million yen (up 31.0% year-on-year), and the operating loss was 1,169 million yen (compared to an operating loss of 3,766 million yen in the previous fiscal year). |
| Marine Industry | Demand for both new ship construction and repairs remained strong, resulting in net sales for this segment of 19,479 million yen (up 7.9% year-on-year). Operating profit was 5,100 million yen (down 3.4% year-on-year), affected by the product mix. |
| Aerospace Industry | While demand for aircraft products (including those related to defense) remained steady, net sales for this segment were 8,760 million yen (down 3.9% year-on-year) due to a decrease in sales of satellite-related products. Operating profit was 696 million yen (down 32.2% year-on-year), resulting from the decline in net sales as well as costs incurred to support increased production. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Capital Expenditures and Financing

Capital investment during the fiscal year ended March 31, 2026, amounted to 9,102 million yen, primarily focused on production facilities for our businesses serving the automotive and construction machinery industries.

Where appropriate, the Company used borrowings and cash on hand to meet these capital expenditures and other capital needs.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Changes in Assets and Income (Loss)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | FY2022 | FY2023 | FY2024 | FY2025<br> (Current fiscal year) |
| Net sales | (Millions of yen) | 157380 | 167042 | 168172 | 177488 |
| Operating profit | (Millions of yen) | 9264 | 8107 | 8494 | 13468 |
| Ordinary profit | (Millions of yen) | 12277 | 13799 | 12024 | 17170 |
| Profit attributable to owners of parent | (Millions of yen) | 6796 | 7491 | 4877 | 9828 |
| Basic earnings per share | (Yen) | 139.82 | 160.84 | 107.51 | 216.75 |
| Total assets | (Millions of yen) | 193232 | 209914 | 203484 | 228581 |
| Total net assets | (Millions of yen) | 112930 | 125671 | 122519 | 142621 |

---

---

| | |
|:---|:---|
| [FY2022] | There was a trend toward gradual recovery as a result of the normalization of economic activities, despite the impact from the re-spreading of COVID-19 infections, leading to increases in both sales and income for our business. |
| [FY2023] | The outlook became increasingly uncertain due to factors such as global inflation and the expansion of geopolitical risks, and our business was also affected by these factors, resulting in an increase in net sales but a decrease in operating profit. |
| [FY2024] | Despite continued uncertainty regarding the future driven by factors such as the rapid depreciation of the yen, soaring raw material prices, and the monetary policies and geopolitical risks of various countries, our business progressed steadily, resulting in an increase in both revenue and profit. |
| [FY2025] | As described in "(1) Business Progress and Results" above. |

---

(4) Significant Parent Company and Subsidiaries, etc.

1) Relationship with Parent Company

Not applicable.

2) Significant Subsidiaries

---

| | | | |
|:---|:---|:---|:---|
| Company name | Share capital | Investment ratio<br> (%) | Main businesses |
| EagleBurgmann Japan Co., Ltd. | 2,930 million yen | 75.0 | Manufacture, maintenance and repair of mechanical seals |
| Eagle Industry Niigata Co., Ltd. | 490 million yen | 100.0 | Manufacture of seal products |
| Shimane Eagle Co., Ltd. | 490 million yen | 100.0 | Manufacture of seal products and special valves |
| Okayama Eagle Co., Ltd. | 480 million yen | 100.0 | Manufacture of seal products and special valves |
| Hiroshima Eagle Co., Ltd. | 100 million yen | 100.0 | Manufacture of mechanical seals and special valves |
| Eagle Industry Taiwan Corporation | NT$60 million | 100.0 | Manufacture and sale of mechanical seals and special valves |
| Eagle Industry (Wuxi) Co., Ltd. | US$36 million | 100.0<br> (100.0) | Manufacture of mechanical seals and special valves |
| NEK CO., LTD. | KRW 4,277 million | 100.0 | Manufacture and sale of mechanical seals |
| EKK Eagle (Thailand) Co., Ltd. | 400 million Thai baht | 100.0 | Manufacture and sale of mechanical seals and special valves |
| EBI Asia Pacific Pte. Ltd. | SG$38 million | 75.0 | Supervision of affiliates in Asia (excluding Japan, China, India and the Middle East) and Oceania |
| EagleBurgmann India Pvt. Ltd. | INR 29 million | 50.0<br> (11.4) | Manufacture and sale of mechanical seals |
| Eagle Holding Europe B. V. | EUR 2 million | 100.0 | Supervision of subsidiaries and affiliates in Europe |
| EKK Eagle Industry Mexico S. A. de C. V. | 866 million Mexican peso | 100.0<br> (0.0) | Manufacture and sale of special valves |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Notes) 1. Figures
in parentheses of the investment ratio column indicate the percentage of indirect ownership (included in the figures).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Including the above 13 companies, there are 41 consolidated subsidiaries and 38 equity-method affiliates.

3) Other

For the manufacture and sale of mechanical seals and other products related to the general industrial machinery industry, with the exception of the construction machinery, shipbuilding and aerospace industries, we have established a comprehensive alliance system with EagleBurgmann Germany GmbH & Co. KG (Germany).

&nbsp;&nbsp;&nbsp;&nbsp;(5) Issues to Be Addressed (Business Environment Surrounding Our Group and Future Business Development)

In the current business environment, global energy demand and international logistics have continued to remain at high levels following the previous fiscal year, and each of the Group's businesses has performed steadily. In particular, within our mainstay business serving the automotive and construction machinery industries, the expansion of sales for EV-related products has progressed. Additionally, in the business serving the semiconductor industry (which we are focusing on as a future growth driver) production and sales increased in tandem with the industry's recovery. As a result, the Group's overall earnings are on an upward trend.

On the other hand, the impact on business activities from persistent conflicts in various regions worldwide, and the resulting supply chain disruptions and soaring raw material prices, requires continued close monitoring. The situation remains unpredictable.

Under these circumstances, based on the new three-year Medium-Term Management Plan commencing this fiscal year, we will establish a business structure capable of responding flexibly to an ever-changing business environment. We will also proceed with the development and commercialization of next-generation products that leverage our proprietary technologies. Furthermore, following the business integration via joint share transfer with NOK Corporation scheduled for October 1, 2026, we will strive to create synergies through the optimization of management resources and efficient business operations of both companies. Through these efforts, we aim for medium-to-long-term growth and the enhancement of corporate value for the entire NOK Group.

The following shows main issues and initiatives by each segment.

**Automotive and Construction Machinery Industries**

The decline in sales of products for internal combustion engines has been more gradual than initially forecasted, and the share of EVs in global automobile production is expected to increase over the medium to long term. Accordingly, we will continue to focus on the development and sales expansion of new products that do not depend on the vehicle's power source.

**General Machinery Industry**

Although the situation in the Middle East presents potential negative factors for the oil refining and petrochemical industries, global energy demand continues to show an upward trend. Accordingly, we will work to expand our business by securing new orders and sales, as well as through the after-sales service cycle.

**Semiconductor Industry**

With the semiconductor industry continuing its recovery from the previous fiscal year, we will not only expand production capacity and strengthen sales for each product line, but also accelerate the development of new products designed for the ever-advancing semiconductor manufacturing equipment market.

**Marine Industry**

Despite heightened geopolitical risks, global marine logistics and new-build vessel construction demand remain solid. Accordingly, we will continue to secure orders for products for new-build vessels and steadily advance our after-sales service activities, working to ensure stable profitability.

**Aerospace Industry**

In the aircraft sector, orders continue to grow in both the commercial and defense markets, and we are advancing efforts to support increased production. At the same time, we will promote the development and expansion of sales of products that leverage our technologies for the space sector as well.

Overview of the Medium-Term Management Plan

Basic Policy: Reinforcing Business Structure for Sustainable Growth - Fly Sky High!

Period: FY2026 - FY2028

President's Initiatives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Sophisticated responses to change

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Creation of synergies through the NOK/EKK integration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Development and commercialization of next-generation products

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Eternal Zero

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Advancement of DX and TCD / Waste Reduction (in Half)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Respect for Human Dignity / Development of Human Resources

&nbsp;&nbsp;&nbsp;&nbsp;(6) Other Important Matters Regarding the Current Status of the Corporate Group

At a meeting of the Board of Directors held on November 10, 2025, the Company resolved to conduct the Management Integration with NOK Corporation by establishing a joint holding company on October 1, 2026. Regarding the establishment of this joint holding company, the Company plans Other Important Matters Regarding the Current Status of the Corporate Group to submit a proposal concerning the establishment of a sole parent company via share transfer to the FY2025 Ordinary General Meeting of Shareholders, to be held on June 24, 2026.

(7) Main Business Contents (As of March 31, 2026)

The Group operates across five business segments: the automotive and construction machinery industries, the general machinery industry, the semiconductor industry, the marine industry, and the aerospace industry. Our group is developing business activities in the five business segments as below:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Segment | &nbsp;&nbsp;Business/Main products |
| &nbsp;&nbsp;Automotive and Construction Machinery Industries | &nbsp;&nbsp;Mechanical seals and special valves for automotive and construction machinery industries and special valves for power industry |
| &nbsp;&nbsp;General Machinery Industry | &nbsp;&nbsp;Mechanical seals for industrial machinery, refinery and petrochemical plants |
| &nbsp;&nbsp;Semiconductor Industry | &nbsp;&nbsp;Seals for semiconductor manufacturing equipment and precision bellows for electronics device and precision equipment |
| &nbsp;&nbsp;Marine Industry | &nbsp;&nbsp;Stern tube seals and stern tube bearings, repair and maintenance of such <br> products |
| &nbsp;&nbsp;Aerospace Industry | &nbsp;&nbsp;Seals for aircrafts and rocket engines and sensors |

---

(8) Major Sales Offices and Factories (As of March 31, 2026)

① Principal place of business

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Company name | &nbsp;&nbsp;Place | &nbsp;&nbsp;Place |
| &nbsp;&nbsp;Eagle Industry Co., Ltd. (The Company) | &nbsp;&nbsp;Head Office | &nbsp;&nbsp;Minato-ku, Tokyo |
| &nbsp;&nbsp;Eagle Industry Co., Ltd. (The Company) | &nbsp;&nbsp;Branch | &nbsp;&nbsp; Sendai (Aoba-ku, Sendai), Mito (Mito, Ibaraki), Kita-Kanto (Kumagaya, Saitama),<br> Tokyo (Minato-ku, Tokyo), KEMEL Tokyo (Minato-ku, Tokyo), Nagoya (Naka-ku, Nagoya),<br> Osaka (Suita, Osaka), Kobe (Akashi, Hyogo), KEMEL Kobe (Hyogo-ku, Kobe),<br> Hiroshima (Higashi-ku, Hiroshima), KEMEL Hiroshima (Kure, Hiroshima), Kyushu (Hakata-ku, Fukuoka) |
| &nbsp;&nbsp;Eagle Industry Co., Ltd. (The Company) | &nbsp;&nbsp;Factory | &nbsp;&nbsp; Saitama (Sakado, Saitama), Okayama (Takahashi, Okayama), Tsukuba (Tsukuba, Ibaraki),<br> Takasago (Takasago, Hyogo), Kure (Kure, Hiroshima) |

---

② Subsidiaries by segment

&nbsp;&nbsp;&nbsp;&nbsp;a. Automotive and Construction Machinery Industries

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Company name | &nbsp;&nbsp;Place | &nbsp;&nbsp;Place |
| &nbsp;&nbsp;Shimane Eagle Co., Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Shimane (Unnan, Shimane) |
| &nbsp;&nbsp;Okayama Eagle Co., Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Okayama (Takahashi, Okayama) |
| &nbsp;&nbsp;Hiroshima Eagle Co., Ltd. | &nbsp;&nbsp;Head Office | &nbsp;&nbsp;Minato-ku, Tokyo |
| &nbsp;&nbsp;Hiroshima Eagle Co., Ltd. | &nbsp;&nbsp;Factory | &nbsp;&nbsp;Hiroshima (Yamagata, Hiroshima) |
| &nbsp;&nbsp;Eagle Industry Taiwan Corporation | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Taiwan |
| &nbsp;&nbsp;Eagle Industry (Wuxi) Co., Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;China |
| &nbsp;&nbsp;NEK CO., LTD. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;South Korea |
| &nbsp;&nbsp;EKK Eagle (Thailand) Co., Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Thailand |
| &nbsp;&nbsp;P.T. Eagle Industry Indonesia | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Indonesia |
| &nbsp;&nbsp;EKK Eagle Products India Pvt. Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;India |
| &nbsp;&nbsp;Eagle Industry France S.A.S. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;France |
| &nbsp;&nbsp;Eagle Simrax B.V. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Netherlands |
| &nbsp;&nbsp;Eagle Industry Hungary Kft. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Hungary |
| &nbsp;&nbsp;EKK Eagle Industry Mexico S. A. de C. V. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Mexico |
| &nbsp;&nbsp;Eagle ABC Technology S.A.S. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;France |
| &nbsp;&nbsp;EKK Eagle America Inc. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;US |

---

&nbsp;&nbsp;&nbsp;&nbsp;b. General Machinery Industry

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Company Name | &nbsp;&nbsp;Place | &nbsp;&nbsp;Place |
| &nbsp;&nbsp;EagleBurgmann Japan Co., Ltd. | &nbsp;&nbsp;Head Office | &nbsp;&nbsp;Minato-ku, Tokyo |
| &nbsp;&nbsp;EagleBurgmann Japan Co., Ltd. | &nbsp;&nbsp;Factory | &nbsp;&nbsp;Niigata (Gosen, Niigata) |
| &nbsp;&nbsp;EBI Asia Pacific Pte. Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Singapore |
| &nbsp;&nbsp;EagleBurgmann India Pvt. Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;India |

---

&nbsp;&nbsp;&nbsp;&nbsp;c. Semiconductor Industry

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Company name | &nbsp;&nbsp;Place | &nbsp;&nbsp;Place |
| &nbsp;&nbsp;Eagle Industry Niigata Co., Ltd. | &nbsp;&nbsp;Head Office | &nbsp;&nbsp;Minato-ku, Tokyo |
| &nbsp;&nbsp;Eagle Industry Niigata Co., Ltd. | &nbsp;&nbsp;Factory | &nbsp;&nbsp;Niigata (Gosen, Niigata) |
| &nbsp;&nbsp;Eagle Technology Taiwan Co., Ltd. | &nbsp;&nbsp;Head Office | &nbsp;&nbsp;Taiwan |

---

&nbsp;&nbsp;&nbsp;&nbsp;d. Marine Industry

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Company name | &nbsp;&nbsp;Place | &nbsp;&nbsp;Place |
| &nbsp;&nbsp;Eagle Highcast Co., Ltd. | &nbsp;&nbsp;Head Office | &nbsp;&nbsp;Minato-ku, Tokyo |
| &nbsp;&nbsp;Eagle Highcast Co., Ltd. | &nbsp;&nbsp;Factory | &nbsp;&nbsp;Gotsu, Shimane |
| &nbsp;&nbsp;KEMEL Europe Ltd. | &nbsp;&nbsp;Head Office | &nbsp;&nbsp;UK |
| &nbsp;&nbsp;EKK Eagle Asia Pacific Pte. Ltd. | &nbsp;&nbsp;Head Office | &nbsp;&nbsp;Singapore |

---

&nbsp;&nbsp;&nbsp;&nbsp;e. Aerospace Industry

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Company name | &nbsp;&nbsp;Place | &nbsp;&nbsp;Place |
| &nbsp;&nbsp;Valcom Co., Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Toyonaka, Osaka |
| &nbsp;&nbsp;Valcom Co., Ltd. | &nbsp;&nbsp;Branch | &nbsp;&nbsp; Kanto (Kanagawa-ku, Yokohama), Tokai (Meito-ku, Nagoya),<br> Kansai (Chuo-ku, Osaka), Kyushu (Hakata-ku, Fukuoka) |
| &nbsp;&nbsp;Eagle Industry Hokkaido Co., Ltd. | &nbsp;&nbsp;Head Office/ Factory | &nbsp;&nbsp;Hokkaido (Yamakoshi, Hokkaido) |

---

(9) Status of Employees (As of March 31, 2026)

① Number of Employees of the Group

---

| | |
|:---|:---|
| &nbsp;&nbsp;Segment | &nbsp;&nbsp;No. of Employees |
| &nbsp;&nbsp;Automotive and Construction Machinery Industries | &nbsp;&nbsp;3180 (695) |
| &nbsp;&nbsp;General Machinery Industry | &nbsp;&nbsp;1891 (340) |
| &nbsp;&nbsp;Semiconductor Industry | &nbsp;&nbsp;472 (53) |
| &nbsp;&nbsp;Marine Industry | &nbsp;&nbsp;287 (21) |
| &nbsp;&nbsp;Aerospace Industry | &nbsp;&nbsp;281 (60) |
| &nbsp;&nbsp;Others (common) | &nbsp;&nbsp;77 (38) |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;6188 (1207) |

---

② Status of Employees of the Company

No. of Employees <u>Average Age</u> <u>Average Years of Service</u> <br> <u>1,335 (328)</u> <u>41.8</u> <u>16.1 years</u>

Note: The figures given in brackets are number of part-time and temporary workers on average per year.

(10) Status of Major Lenders (As of March 31, 2026)

Lender <u>Borrowing outstanding <br> (Unit: Million Yen)</u> <br> <u> Sumitomo Mitsui Banking Corporation MUFG Bank, Ltd. Mizuho Bank, Ltd.</u> <u> 9,680 8,320 6,924</u>

&nbsp;&nbsp;&nbsp;&nbsp;***<u>2.</u>***  ***<u>Items Related to Company Directors</u>*** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Directors

(As of March 31, 2026)

---

| | | | |
|:---|:---|:---|:---|
| Name | Position and responsibilities | Significant concurrent positions | Board meeting attendance |
| Tetsuji Tsuru | Representative Director, Chairman of the Board and President |  | 12/12 meetings |
| Masaki Nakao | Representative Director, Vice President, General Manager, Corporate Administration Office and Defense Business Corporate Office |  | 12/12 meetings |
| Shinji Abe | Representative Director, Senior Managing Director and General Manager, Safety, Environmental and Quality Control Office |  | 12/12 meetings |
| Norio Uemura | Representative and Senior Managing Director and General Manager, Engineering Division |  | 10/12 meetings |
| Masahide Shimada | Senior Managing Director, General Manager, AIžCI Division and Nuclear Power Business Corporate Office |  | 12/12 meetings |
| Hidetaka Yamamoto | Senior Managing Director and General Manager, Corporate Sales & Marketing Division |  | 12/12 meetings |
| Ryota Nakazawa | Senior Managing Director, General Manager, Corporate Strategic Planning Office, and Deputy General Manager, Defense Business Corporate Office | Representative Director and Chairman, EagleBurgmann Japan Co., Ltd. | 12/12 meetings |
| Risa Yamasawa | Director |  | 8/8 meetings |
| Yasumitsu Iba | Director (Standing Audit & Supervisory Committee Member) |  | 12/12 meetings |
| Katsuhiko Shono | Director (Audit & Supervisory Committee Member) |  | 12/12 meetings |
| Masako Sakaguchi | Director (Audit & Supervisory Committee Member) |  | 12/12 meetings |
| Takashi Koike | Director (Audit & Supervisory Committee Member) | Chairman and Representative Director, Koikeya Co., Ltd.<br> Part-time Director, NISSIN CISCO CO., LTD. | 10/12 meetings |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Notes) 1. Director Risa Yamasawa and Directors (Audit & Supervisory Committee Members) Katsuhiko Shono,
Masako Sakaguchi, and Takashi Koike are Outside Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Director Risa Yamasawa was elected at the FY2024 Ordinary General Meeting of Shareholders and has participated
in all Board meetings held thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Director (Standing Audit & Supervisory Committee Member) Yasumitsu Iba has extensive experience and
achievements in financial institutions and the financial accounting departments of the Group and has considerable knowledge of finance
and accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company has registered Director Risa Yamasawa and Directors (Audit & Supervisory Committee Members)
Katsuhiko Shono, Masako Sakaguchi, and Takashi Koike as Independent Directors according to the regulations of Tokyo Stock Exchange, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Company has appointed Yasumitsu Iba as a standing Audit & Supervisory Committee Member in order
to strengthen the audit and supervisory functions of Audit & Supervisory Committee Members to gather information from Directors (excluding
Directors who Audit & Supervisory Committee Members) and to ensure sufficient cooperation between the internal control department
and Audit & Supervisory Committee Members.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Overview of the Contents of the Limited Liability Agreement

The Company has concluded agreements with each Outside Director and Director who is an Audit & Supervisory Committee Member under the provision of Article 427, paragraph 1 of the Companies Act and the Company's Articles of Incorporation to limit liability for damages as provided for in Article 423, paragraph 1 of the Act. The limit of liability as provided for in this agreement is the amount specified by laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Overview of the Liability Insurance Policy for Directors and Officers

The Company has entered into a liability insurance agreement with an insurance company under Article 430-3, paragraph 1 of the Companies Act where all Directors and Corporate Auditors of the Company and its subsidiaries (including those who were in office during the current fiscal year) are insured persons, and all insurance premiums are borne by the Company.

As an overview of the insurance policy, the insurance company covers damages that may arise from insured persons being liable in relation to the execution of their duties or being subjected to claims pursuing such liability under the policy, and the policy is renewed on an annual basis.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Compensation, etc. for Directors

1) Amount of compensation for the current fiscal year

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Positions | Total amount of compensation, etc.<br> (Millions of yen) | Total amount of compensation, etc. by type (Millions of yen) | Total amount of compensation, etc. by type (Millions of yen) | Total amount of compensation, etc. by type (Millions of yen) | Number of directors covered<br> (persons) |
| Positions | Total amount of compensation, etc.<br> (Millions of yen) | Basic compensation | Performance- linked compensation, etc. | Performance- linked compensation, etc. | Number of directors covered<br> (persons) |
| Positions | Total amount of compensation, etc.<br> (Millions of yen) | Basic compensation | Short term | Mid to long term | Number of directors covered<br> (persons) |
| Directors (excluding Directors who are Audit & Supervisory Committee Members)<br> [of which Outside Directors] | 461<br> [14] | 269<br> [14] | 63<br> [–] | 128<br> [–] | 9<br> [2] |
| Directors who are Audit & Supervisory Committee Members<br> [of which Outside Directors] | 65<br> [43] | 65<br> [43] | – | – | 4<br> [3] |
| Total | 527<br> [58] | 335<br> [58] | 63<br> [–] | 128<br> [–] | 13<br> [5] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Notes) 1. The amount paid to Directors does not include the salaries of Directors who are also employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The amount of remuneration for Outside Directors includes compensation for their service as members of
the Company's Special Committee established on June 25, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The amounts for medium- to long-term performance-linked compensation are the amounts recorded as expenses
related to the points granted during the current fiscal year in relation to the officer compensation Board Incentive Plan trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The amount of compensation, etc. for Directors includes the amount of compensation, etc. during the term
of office of one (1) Director (an Outside Director) who retired at the conclusion of the FY2024 Ordinary General Meeting of Shareholders
held on June 25, 2025. As of the end of the current fiscal year, there were eight (8) Directors (excluding Directors who are Audit &
Supervisory Committee Members) (including one (1) Outside Director) and four (4) Directors who are Audit & Supervisory Committee Members
(including three (3) Outside Directors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Matters related to resolutions at General Meetings of Shareholders for the amount of monetary compensation
for Directors (excluding Directors who are Audit & Supervisory Committee Members)

With regard to the amount of monetary compensation for Directors (excluding Directors who are Audit & Supervisory Committee Members), the maximum annual total amount of compensation was resolved at the FY2023 Ordinary General Meeting of Shareholders held on June 25, 2024, to be 550 million yen (including up to 40 million yen for Outside Directors). This compensation amount shall not include the salaries of Directors who are also employees. At the conclusion of this Meeting, the number of Directors (excluding Directors who are Audit & Supervisory Committee Members) were eight (8) (including one (1) Outside Director).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Matters related to resolutions at General Meetings of Shareholders for the amount of monetary compensation
for Directors who are Audit & Supervisory Committee Members

With regard to the amount of monetary compensation for Directors who are Audit & Supervisory Committee Members, the maximum annual total amount of compensation was resolved at the FY2023 Ordinary General Meeting of Shareholders held on June 25, 2024, to be 100 million yen. At the conclusion of this Meeting, the number of Directors who are Audit & Supervisory Committee Members were four (4).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Separately from the monetary compensation described above, at the FY2021 Ordinary General Meeting of Shareholders
held on June 23, 2022, it was resolved regarding performance-linked stock compensation for Directors (excluding Outside Directors) that
the upper limit of trust money contributed by the Company shall be 300 million yen per fiscal year, and the upper limit of the number
of shares to be issued shall be 400,000 shares per fiscal year. At the conclusion of this Meeting, the number of eligible Directors were
five (5). In line with the Company's transition to a company with an Audit & Supervisory Committee at the FY2023 Ordinary General
Meeting of Shareholders held on June 25, 2024, a resolution was made to revise the eligibility for this Plan to the Company's Directors
(excluding Directors who are Audit & Supervisory Committee Members, Outside Directors, and those not residing in Japan). At the conclusion
of this Meeting, the number of eligible Directors were seven (7).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Basis for the Board of Directors determining that the individual compensation, etc. for Directors (excluding
Directors who are Audit & Supervisory Committee Members) during the current fiscal year was in accordance with the policy

At the Board meeting held on June 25, 2024, the Company made a resolution on the policy for the content of compensation for individual Directors. Before the Board of Directors makes a resolution, they consult with the Nomination and Compensation Committee about the content of the resolution and receive a report. The Board of Directors also confirms that the method for determining the content of compensation, etc. and the content of the determined compensation, etc. are in harmony with the policy that was resolved by the Board of Directors, and that the report by the Nomination and Compensation Committee was respected. Therefore, it was determined that the individual compensation, etc. for Directors (excluding Directors who are Audit & Supervisory Committee Members) during the current fiscal year was in harmony with the determined policy.

2) Matters related to performance-linked compensation

Performance-linked compensation is paid in a range between 0 and 200% according to the degree of achievement of evaluation items.

When determining short-term performance-linked compensation, it is the Company's judgment that maintaining and improving the profit level is the most appropriate indicator of corporate performance. As such, the degree of achievement of the initial operating profit plan, dividend amount, employee bonus amount and other matters impacting performance (natural disasters, extraordinary gains/losses, etc.) are considered. The Company has set a consolidated operating profit plan of 9.0 billion yen, and based on the actual operating profit of 13.4 billion yen for the current fiscal year, short-term performance-linked compensation for the current fiscal year was determined to be paid at a rate of 175% of the base value (100%) for each position.

The company's shares are used for medium- to long-term performance-linked compensation (non-monetary compensation), and we utilize the officer compensation BIP (Board Incentive Plan) trust system. The relevant compensation indicators and reason for selecting those indicators are as described in "3) Policy and method of determining officer compensation, etc."

The amount of medium- to long-term performance-linked compensation, etc. (non-monetary compensation) for FY2023 to FY2025 is granted to each eligible person based on the Rules for Issuance of Shares, using the number of points obtained by subtracting the assumed stock price (average closing price of the Company's shares in regular trading on the Tokyo Stock Exchange on each day of the month preceding the month containing the start date of the target period (excluding days on which no trading takes place)) from the base amount. The Company plans to deliver and provide Company shares and other benefits in a number corresponding to the cumulative total of points, representing 50% of the base points granted during each fiscal year within the target period, multiplied by a performance-linked coefficient.

Furthermore, as the current fiscal year is the final year of the trust period, the performance-linked coefficient for the aforementioned [points] has been determined to be 78% in accordance with the Rules for Issuance of Shares.

3) Policy and method of determining officer compensation, etc.

The Company has established the policy below for determining compensation, etc. for Directors. Within the total amount decided at the General Meeting of Shareholders based on this policy, compensation for Directors (excluding Directors who are Audit & Supervisory Committee Members) is determined by the Board of Directors, and compensation for Directors who are Audit & Supervisory Committee Members is determined through discussions with Directors who are Audit & Supervisory Committee Members at the Audit & Supervisory Committee.

The Company has established a Nomination and Compensation Committee as an advisory body to the Board of Directors in order to address important management issues, including the improvement of the objectiveness and transparency of the nomination and compensation of officers. The committee regularly checks on particularly important matters such as nomination of officers and compensation for Directors and provides appropriate advice to the Board of Directors. The Nomination and Compensation Committee is a meeting body consisting of the Chairman of the Board of Directors and Outside Directors, and it confirms and advises on important management issues such as nomination and compensation.

The Company's policy for compensation for Directors is provided below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Method of determining policy** 

The policy on compensation for Directors (excluding Directors who are Audit & Supervisory Committee Members) is determined by the Board of Directors, taking into account the advice of the Nomination and Compensation Committee. The policy on compensation for Directors who are Audit & Supervisory Committee Members is determined through discussions with Directors who are Audit & Supervisory Committee Members at the Audit & Supervisory Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Basic policy** 

The Group seeks to grow stronger and more highly profitable by making unique and socially useful products backed by technology at a low cost around the world and providing them at reasonable prices. We believe that pursuing this policy from a medium- to long-term perspective will contribute to improving the Group's medium- to long-term corporate value and increase stakeholder satisfaction.

In carrying out this policy, we believe that it is necessary for us to promote the motivation of the management team, including the Directors of the Company, to achieve performance targets and stakeholder satisfaction from the standpoint of compensation. For that reason, we have introduced treasury shares compensation for the Company's management that varies to a certain extent according to the degree of achievement of KPIs related to the priority measures in the Group's medium-term plan. Balancing this with monetary compensation that varies according to the degree of achievement of performance targets for each fiscal year, we aim to improve corporate value and stakeholder satisfaction over the medium to long term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Policy for determining amounts for individual compensation, etc. and method of calculation (excluding performance-linked compensation, etc. / non-monetary compensation, etc.)** 

Considering their responsibilities in improving performance in each fiscal year and increasing corporate value over the medium to long term, compensation for Directors (excluding Outside Directors and Directors who are Audit & Supervisory Committee Members) is broken down into three categories. These are base compensation (monetary), short-term performance-linked compensation (monetary) and medium- to long- term performance-linked compensation (stock), comprised of fixed compensation, expectations for short-term results and expectations for long-term results. On the other hand, Outside Directors who are not Audit & Supervisory Committee Members are expected to provide objective opinions and suggestions from an outside perspective that is independent from business execution, so in light of this, they are only paid base compensation pay (monetary).

In addition, compensation for Directors who are Audit & Supervisory Committee Members is base compensation pay (monetary) only according to position as they are responsible for auditing and supervising the execution of duties for the Group as a whole.

Compensation may be temporarily reduced or not paid at all in the event of a sudden worsening of performance or damage to corporate value.

The compensation system for the Company's Directors is set up in such a way that compensation differs according to the responsibilities of the position (chairman, president, vice president, senior managing director, etc.). The difference currently applied, when the short-term and long-term performance portions are the base amount, is set at 1 for senior managing directors and around 1.6 for the chairman and president.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Policy for determining performance indicators, etc. related to performance-linked compensation, etc. and the method of calculating the amount or number** 

Performance-linked compensation is paid in a range between 0 and 200% according to the degree of achievement of evaluation items.

When determining short-term performance-linked compensation, it is the Company's judgment that maintaining and improving the profit level is the most appropriate indicator of corporate performance. As such, the degree of achievement of the initial operating profit plan, dividend amount, employee bonus amount and other matters impacting performance (natural disasters, extraordinary gains/losses, etc.) are considered.

The indicators of medium- to long-term performance-linked compensation are ROIC (financial indicator) and the FTSE Russell ESG score (non-financial indicator) to increase overall profitability of the Group and promote ESG management. The weight given to these items is 90% and 10%, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Policy for determining the content, amount, number or method of calculating non-monetary compensation, etc.** 

For medium- to long-term performance-linked compensation, we utilize the officer compensation BIP (Board Incentive Plan) trust system in order to increase the motivation of Directors to contribute to improving the Group's medium- to long-term performance and increasing corporate value.

This plan is a system for issuing and paying the shares of the Company and share exchange price at disposal of the Company (hereinafter referred to as "the Company's shares, etc.") in a number corresponding to points calculated according to position/length of service and the degree of achievement, etc. of medium-term targets to eligible Directors (excluding Outside Directors and Directors who are Audit & Supervisory Committee Members) and Operating Officers following the Rules for Issuance of Shares approved by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Policy for determining the ratio (percentage) of each type of individual compensation, etc.** 

The Company's business domain is the manufacture and sale of mechanical seals, special valves, etc., and other mechanical parts in industries that include automobiles, construction equipment, general industrial machinery, semiconductors, ships, and aerospace. Considering that business performance is easily affected by trends in these industries, the percentages of short-term performance-linked compensation and medium- to long-term performance-linked compensation for Directors (excluding Outside Directors and Directors who are Audit & Supervisory Committee Members) are 10% and 20% of total compensation, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Policy for determining the timing of and conditions for compensation, etc.** 

Monthly base compensation pay is determined by the Board of Directors after the Ordinary General Meeting of Shareholders for one year beginning from the following month and is paid in a fixed amount on a fixed day every month. Short-term performance-linked compensation is determined by the Board of Directors based on the year-end financial results in accordance with the above-mentioned "Policy for determining performance indicators, etc. related to performance-linked compensation, etc. and the method of calculating the amount or number." It is paid by the time of the Ordinary General Meeting of Shareholders for the financial results in question. As for medium- to long-term performance-linked compensation, following the Rules for Issuance of Shares approved by the Board of Directors, a fixed number of points calculated according to position and length of service and performance-linked points designed to incentivize achievement of the medium-term management plan, etc. are granted at a certain time every year. In principle, when the medium-term management plan ends, a number of the Company's shares, etc. corresponding to the cumulative number of fixed points and a number of the shares, etc. corresponding to the cumulative number of performance-linked points multiplied by a performance-linked coefficient according to the degree of achievement of medium-term targets are issued and paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Method of determining individual compensation, etc.** 

The Chairman of the Board of Directors, who is the chair of meetings of the Board of Directors, submits an executive compensation plan to the Board of Directors where the amount of compensation, etc. for individual Directors (excluding Directors who are Audit & Supervisory Committee Members) and the method of calculation thereof are determined, taking into account the advice of the Nomination and Compensation Committee.

The amount of compensation for Directors who are Audit & Supervisory Committee Members is determined by the Audit & Supervisory Committee through discussions with Directors who are Audit & Supervisory Committee Members.

(5) Items related to Outside Directors

① Matters regarding significant concurrent positions as outside directors (and other officers) of other corporations and relationship between the Company and other organizations

Mr. Takashi Koike, Director who are Audit & Supervisory Committee Member, is also Chairman and CEO of Koikeya Co., Ltd, and non-executive director of NISSIN CISCO Co., Ltd. There is no special relationship between the Company and the each concurrent organization.

② Status of the main activities of each outside director for the fiscal year under review

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Position | &nbsp;&nbsp;Name | &nbsp;&nbsp;Main Activities |
| &nbsp;&nbsp;Director | &nbsp;&nbsp;Risa Yamasawa | &nbsp;&nbsp; Since assuming office as Director, she has attended 8 out of 8 meetings of the board of directors and made comments as necessary for deliberations on proposals. On the Board, she fulfills an appropriate role in ensuring the validity and propriety of decision-making. Specifically, she provides supervision and counsel on the execution of duties by the Company's Directors from an objective, broad and advanced perspective based on her vast amount of experience and high principles as an attorney.<br> In addition, as a member of the nomination and compensation committee, she attended a committee meeting held after her election at the FY2024 Ordinary General Meeting of Shareholders, providing appropriate advice in the process of selecting candidates for directors and decision-making on directors' remuneration, etc.<br> Furthermore, she served as a member of the Company's Special Committee regarding the business integration with NOK Corporation. |
| &nbsp;&nbsp; Director<br> (Audit & Supervisory Committee Member) | &nbsp;&nbsp;Katsuhiko Shono | &nbsp;&nbsp; He attended 12 out of 12 meetings of the board of directors, 12 out of 12 meetings of the Audit & Supervisory Committee and made comments as necessary for deliberations on proposals. At these meetings, he played an appropriate role in ensuring the adequacy and appropriateness of decision-making, mainly by providing supervision and advice on the Company's overall business activities based on his knowledge from his experience in the industrial machinery field.<br> In addition, as a member of the nomination and compensation committee, he attended 2 meetings of the committee held in FY2025 and provided appropriate advice in the process of selecting candidates for directors and decision-making on directors' remuneration, etc.<br> Furthermore, he served as a member of the Company's Special Committee regarding the business integration with NOK Corporation. |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; Director<br> (Audit & Supervisory Committee Member) | &nbsp;&nbsp;Masako Sakaguchi | &nbsp;&nbsp; She attended 12 out of 12 meetings of the board of directors, 12 out of 12 meetings of the Audit & Supervisory Committee and made comments as necessary for deliberations on proposals. At these meetings, she played an appropriate role in ensuring the adequacy and appropriateness of decision-making, mainly by providing supervision and advice on the Company's overall business activities based on her knowledge and experience in corporate legal matters as an attorney.<br> In addition, as a member of the nomination and compensation committee, she attended 2 meetings of the committee held in FY2025 and provided appropriate advice in the process of selecting candidates for directors and decision-making on directors' remuneration, etc.<br> Furthermore, she served as a member of the Company's Special Committee regarding the business integration with NOK Corporation. |
| &nbsp;&nbsp; Director<br> (Audit & Supervisory Committee Member) | &nbsp;&nbsp;Takashi Koike | &nbsp;&nbsp; He attended 10 out of 12 meetings of the board of directors, 10 out of 12 meetings of the Audit & Supervisory Committee and made comments as necessary for deliberations on proposals. At meetings of the board of directors, he played an appropriate role in ensuring the adequacy and appropriateness of decision-making, mainly by providing supervision and advice on the Company's overall business activities based on his knowledge from his experience in corporate management in business companies.<br> In addition, as a member of the nomination and compensation committee, he attended 2 meetings of the committee held in FY2025 and provided appropriate advice in the process of selecting candidates for directors and decision-making on directors' remuneration, etc.<br> Furthermore, he served as chairperson of the Company's Special Committee regarding the business integration with NOK Corporation, where he was responsible for compiling the committee's reports. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) In addition to the number of Board of Directors meetings held as stated above, there was one written resolution
which, pursuant to Article 370 of the Companies Act and the provisions of the Company's Articles of Incorporation, was deemed to
have been passed by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;***<u>3.</u>***  ***<u>Policy on Determination of Dividends of Surplus, etc.</u>*** 

The Company aims to continuously improve its corporate value and regards the return of profits to shareholders as one of its most important management issues. From this perspective, decisions on dividends of surplus, etc. shall be made in accordance with the following policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Dividends of Surplus** 

The Company's basic stance regarding dividends of surplus is to pay stable dividends that take into account the balance between profit return and internal reserves for medium- to long-term growth.

With regard to the year-end dividend for FY2025, the Board of Directors resolved the following appropriation of surplus on May 21, 2026, based on the above policy. As a result, with regard to dividends of surplus for the fiscal year under review, the interim dividend of 60 yen per share has been paid, and the annual dividend per share will be 125 yen.

[Matters related to year-end dividends]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Type of dividend property

Cash

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Allocation of dividend property and total amount thereof

65 yen per common share of the Company

Total amount: 3,006,333,135 yen

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Effective date of distribution of dividends of surplus

June 5, 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Purchase of Treasury Shares** 

With regard to the purchase of treasury shares, the Company's policy is to flexibly purchase treasury shares in accordance with market stock price trends and other factors from the viewpoint of the Company's shareholder composition and the securing of stock price and liquidity in the stock market.

***<u>4. Items Related to Company Shares (As of March 31, 2026)</u>***

(1) Number of Authorized Shares (2) Number of Shares Issued (3) Number of Treasury Shares (4) Number of Shareholders (5) Major Shareholders 100,000,000 49,757,821 3,506,542 20,717

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| | | |
|:---|:---|:---|
| Name of Shareholders | Number of Shares (Unit: Thousand) | Shareholding Ratio (%) |
| &nbsp;&nbsp;NOK Corporation | 14812 | 32.0 |
| &nbsp;&nbsp;Freudenberg SE | 3800 | 8.2 |
| &nbsp;&nbsp;The Master Trust Bank of Japan, Ltd. (Trust account) | 2807 | 6.1 |
| &nbsp;&nbsp;The Dai-ichi Life Insurance Company, Limited | 2758 | 6.0 |
| &nbsp;&nbsp;Eagle Industry Employees Shareholding Association | 2287 | 4.9 |
| &nbsp;&nbsp;Custody Bank of Japan, Ltd. (Trust account) | 961 | 2.1 |
| &nbsp;&nbsp;The Master Trust Bank of Japan, Ltd. (the officer compensation BIP (Board Incentive Plan) trust system, 76761 unit) | 802 | 1.7 |
| &nbsp;&nbsp;Sumitomo Mitsui Banking Corporation | 771 | 1.7 |
| &nbsp;&nbsp;MUFG Bank, Ltd. | 659 | 1.4 |
| &nbsp;&nbsp;The Chugoku Bank, Ltd. | 637 | 1.4 |

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Note: The shareholding ratio is calculated after deducting the treasury shares (3,506,542 shares).

(6) Matters regarding shares granted to Company directors (including former directors) during the fiscal year as consideration for performance of duties

<u>Number of Shares</u> <u>Number of Recipients</u> <br> <u> Director (excluding Outside Directors and Directors who are Audit & Supervisory Committee Members)</u> <u>–</u> <u>–</u>

Note: Details of the Company's share-based compensation is in (4) Compensation, etc. for Directors of "2. Items Related to Company Directors" in Business Report.

 **

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***<u>5. Items Related to Share Acquisition Rights</u>*** (As of March 31, 2026)

None.

***<u>6. Status of the Accounting Auditor</u>***

(1) Name

Nihombashi Corporation, Incorporated Accounting Firm

Audits of financial statements of our major subsidiaries abroad were conducted by other accounting firms.

(2) Amount of remuneration of accounting auditor

① Amount of remuneration paid to accounting auditor

38 million yen

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| | |
|:---|:---|
| Notes: | Regarding the audit contract between Eagle Industry and the Accounting auditor, audit fees for audit under the Corporate Law and those for audit under the Securities and Exchange Law are not clearly divided, and cannot be practically divided. Therefore, the above amount is the total sum of these two audit fees. |

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The Audit & Supervisory Committee conducted necessary study to see if the contents of audit plans, work performance of audits and the basis for quotation for audit fees of the Accounting auditor were appropriate, and as a result it agreed to the amount of audit fees paid to the Accounting auditor.

② Total amount of money or other economic benefits to be paid by the Company and the Company's subsidiaries

44 million yen

(3) Policies for determination of dismissal or refusal of reelection

If the Audit & Supervisory Committee thinks it necessary to remove or not to reappoint the Accounting auditor due to its performance, it will determine the contents of the motion as to the removal or no reappointment to be submitted to the shareholders' meeting.

If any one of the clauses of Article 340, Paragraph 1 of the Companies Act is the case with the Accounting auditor, the Audit & Supervisory Committee removes it subject to the unanimous consent of Directors who are Audit & Supervisory Committee members. In such case, Director who are Audit & Supervisory Committee member designated by the Audit & Supervisory Committee announces the fact and the reason of the removal in the immediate shareholders' meeting to be held after the removal.

***<u>7. Structure to Ensure Appropriate Operations and Operational Status of Said Structure</u>***

(1) System to ensure appropriate operation management

The Company set the following basic policies to ensure that the directors' execution of their duties is in conformity with the laws and regulations and the articles of association of the Company, and other business activities are implemented appropriately.

① System to manage information relating to the directors' execution of their duties

The Company shall designate responsible sections for the management of minutes of shareholders' meetings, the board of directors and other meetings, and also circular approval documents in accordance with the laws and regulations, the articles of association of the Company and the Company's internal rules etc. so that directors can examine them.

② System to manage the risk of loss

In accordance with risk management policy and risk management rule, the Company shall establish risk management subcommittee under the sustainability committee and review risk preventive measures on a regular basis, and conduct case study continually to prepare for contingencies.

③ System to ensure effective directors' execution of their duties

The directors shall ensure that the board of directors are held in accordance with rules of the board of directors where they define each director's responsibilities, decide important issues and confirm implementation status of business activities, and appoint officers as responsible manager to operate each business unit and division and delegate authorities to the officers for speedy execution of tasks and achievement of targets and supervise the officers. And also the directors define responsibilities of high-ranking supervisory employees and decision making rules as per the responsibility and authority rules. Also the directors shall ensure that execution of their duties is appropriate and effective by checking implementation status of business plans, management plans and operation plans through management meetings and business diagnosis that are held on a regular basis.

④ System to ensure that execution of duties of the directors and supporting employees are in accordance with the laws and regulations and the articles of association of the Company

The Company shall set "EKK compliance rule" and "EKK employee compliance code of conduct" based on "EKK Charter of Corporate Behavior," clarify its stance of emphasizing compliance and ensure the system which is in accordance with the laws and regulations, the articles of association of the Company and the internal rules.

⑤ System for appropriate business activities of the Group

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. System of reporting of issues relating to subsidiaries' directors' execution of their duties to the Company<br> In accordance with the internal audit regulations, the department in charge of managing subsidiaries shall have them report their business situations and check the matters reported, and each Office or Division (responsible departments of the headquarters) shall give necessary instructions and support to subsidiaries regarding each responsible activity, and have them report the progress and check the progress reported in accordance with policies and measures based on management plans, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Regulations and other systems related to the management of the risk of loss of subsidiaries<br> In accordance with the internal audit regulations, responsible departments of the headquarters and the department in charge of managing subsidiaries shall have subsidiaries establish risk management system and report implementation status regularly, and review it if necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. System to ensure subsidiaries' directors' execution of their duties is effective<br> The Company shall hold management meetings on a regular basis where the Company and subsidiaries' management and manager attend to share information and pursue management transparency. In the management meetings, the attendees report and discuss management and business plans to secure effective management of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. System to secure subsidiaries' directors and supporting employees' execution of their duties is in accordance with the laws and regulations and the articles of association of each company<br> In accordance with the internal audit regulations, the Company shall have subsidiaries establish code of conduct, compliance rule and employee compliance code of conduct, have them understand such contents, have them clarify that they emphasize compliance in their business activities and have them ensure the system which is in accordance with the laws and regulations, the articles of association of each company and the internal rules. The Company, based on the internal audit regulations regarding financial reporting, shall take measures to maintain the reliability of the group company's financial reporting based on the directors' instructions.

⑥ Issue relating to employee who supports the Audit & Supervisory Committee in the event that Audit & Supervisory Committee Members request the Company to appoint such employee and Maintaining the independence of employees who supports Audit & Supervisory Committee members from Director and enhancing the effectiveness of instructions to employees

In the event that the Audit & Supervisory Committee requests the appointment of directors and employees to assist the Audit & Supervisory Committee in their duties, the Board of Directors and Employees shall decide on the duties and selection of such directors and employees in consultation with the directors who are members of the Audit & Supervisory Committee, and shall maintain a certain degree of independence from the executive departments. Directors and employees who are responsible for assisting the duties of the Audit & Supervisory Committee shall ensure the effectiveness of their duties by attending major meetings attended by the Audit & Supervisory Committee and other directors who are members of the Audit & Supervisory Committee, and by acting in accordance with the audit policy and audit plan formulated by the Audit & Supervisory Committee.

⑦ The following systems and system for other Group companies to report to the Company's Audit & Supervisory Committee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. System for directors (excluding Directors who are Audit & Supervisory Committee members), auditors, employees, etc. of the corporation and its subsidiaries to report to the Audit & Supervisory Committee of the Company, and system to ensure that those who make such reports are not treated unfavorably because of such.

In accordance with the Internal Control Regulations, the Company's internal auditors shall conduct internal audits of the system to ensure the appropriateness of the Group's operations, and report the results to the Audit & Supervisory Committee. In addition, the Audit & Supervisory Committee shall give instructions to the Internal Auditors regarding audits as necessary.

In addition, in accordance with the Whistleblowing Regulations, the Company shall establish a system for appropriately responding to whistleblowing regarding acts that violate laws and regulations with respect to officers and employees of the Group, establish a system that allows whistleblowing to be reported to the Audit & Supervisory Committee, and prohibit disadvantageous treatment of officers and employees who make such reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Matters concerning procedures for advance payment or reimbursement of expenses incurred by Audit & Supervisory Committee members in connection with the execution of their duties (limited to those related to the duties of Audit & Supervisory Committee members), and other policies regarding the processing of expenses or liabilities incurred in the execution of such duties.

The Company shall secure the expenses for the Audit & Supervisory Committee's execution of duties in compliance with audit policy and schedule prepared by the Audit & Supervisory Committee, based on the Audit & Supervisory Committee's rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. System to ensure that audits by the Audit & Supervisory Committee of the Company are conducted effectively

In order to supervise the execution of duties by Directors, the Company shall ensure a system that enables directors who are Audit & Supervisory Committee members to attend meetings of the board of directors and other important meetings and to investigate the status of operations and finances in accordance with the audit policy and audit plan formulated by the Audit & Supervisory Committee in accordance with the Audit & Supervisory Committee's rule. In addition, Accounting Auditor and Directors who are Audit & Supervisory Committee members shall exchange opinions on a regular basis.

(2) Status of the operation of system to assure appropriate operation management

① Status of system to ensure the appropriateness of directors duties and risk management & compliance system

The Company established a system to ensure the appropriateness of directors' duties by holding important meetings such as board of directors' meetings in accordance with the laws and regulations, the articles of association of the Company and rules etc. Sustainability activities, risk management and compliance of the Group are becoming increasingly important due to the business activities' diversification, globalization and the realization of a sustainable society. Therefore, the Company established a sustainability committee to promote sustainable activities and a risk management subcommittee under the sustainability committee identifies and assesses risks in our business activities to prepare for contingencies. In addition, the Company set "EKK compliance rule" and "EKK employees compliance code of conduct" based on "EKK Charter of Corporate Behavior" designed for all group employees and strived to enhance the morale of all employees in the course of their duties by ensuring that they were well informed of such contents.

② Status of system to ensure the appropriateness of operation of the Group

Based on the internal audit regulations, the Company established the system of compliance and risk management of subsidiaries, reported management situations regularly and ensured efficiency of the management of the Group. The Company conducted the assessment of the efficiency of the internal audit over financial reporting and found no material violations of law or the articles of association during the fiscal year under review. The Company confirmed that the internal audit system was appropriately operated.

③ Status of system to ensure the effectiveness of the Audit & Supervisory Committee's audits

The Company established a system in which Directors who are Audit & Supervisory Committee members attended important meetings such as management meeting including board of directors' meetings and they attended such necessary meetings. Directors who are Audit & Supervisory Committee members cooperated with operating departments to check operations and financial situations and used supporting employees in audits when necessary. Directors who are Audit & Supervisory Committee members exchanged opinions with the Accounting auditor, representative directors and outside directors.

◎ The following is a description of the above report.

1. Amounts in millions of yen are rounded down to the nearest million yen.

2. Basic earnings per share is calculated based on the average number of outstanding shares during the period,
excluding treasury shares, and is rounded to the nearest yen.

3. Percentage of change from the previous year in consolidated net sales, consolidated ordinary profit, etc.
and investment ratio in important subsidiaries of the Company are rounded to the nearest first decimal place.

4. Fractions below one thousand shares are omitted where the number of shares is stated in thousand share
unit.

5. Ratio of shareholding by major shareholders in the Company, average ages, and average service years of
employees are stated by rounding the figures to the first decimal place.

**<u>Consolidated Financial Statements</u>**

(April 1, 2025 to March 31, 2026)

**Consolidated Balance Sheets**

(As of March 31, 2026)

(Millions of yen)

---

| | | | |
|:---|:---|:---|:---|
| **Subject** | **Amount** | &nbsp;&nbsp;**Subject** | &nbsp;&nbsp;**Amount** |
| **Assets** |  | **Liabilities** |  |
| **Current assets** | **125450** | **Current liabilities** | **51741** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and deposits | 33681 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade | 9858 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable - trade | 774 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded obligations - operating | 3063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable - trade | 35486 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | 3382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded monetary claims - operating | 6441 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term borrowings | 11834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchandise and finished goods | 12822 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - other | 4075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Work in process | 10810 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Raw materials and supplies | 16278 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 1359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable - other | 4364 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 1773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 4900 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits received from employees | 4366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts | (109) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bonuses | 3247 |
| **Non-current assets** | **103130** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) | 600 |
| &nbsp;&nbsp;&nbsp;**Property, plant and equipment** | **64220** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for loss on orders received | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings and structures | 29193 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 7238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery, equipment and vehicles | 18854 | **Non-current liabilities** | **34218** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tools, furniture and fixtures | 4453 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | 22949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | 6899 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leased assets | 1401 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | 2691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 3416 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefit liability | 6689 |
| &nbsp;&nbsp;&nbsp;**Intangible assets** | **2185** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for environmental measures | 297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 51 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 2133 | &nbsp;&nbsp;**Total liabilities** | **85959** |
| &nbsp;&nbsp;&nbsp;**Investments and other assets** | **36724** | **Net assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 22138 | **Shareholders' equity** | **99722** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term loans receivable | 524 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Share capital** | **10490** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | 3240 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Capital surplus** | **11827** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement benefit asset | 9383 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Retained earnings** | **84587** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 1541 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Treasury shares** | **(7183)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts | (104) | **Accumulated other comprehensive income** | **33340** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Valuation difference on available-for- sale securities** | **1064** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Foreign currency translation adjustment** | **22463** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Remeasurements of defined benefit plans** | **9811** |
|  |  | **Non-controlling interests** | **9558** |
|  |  | **Total net assets** | **142621** |
| **Total assets** | **228581** | **Total liabilities and net assets** | **228581** |

---

**Consolidated Statements of Income**

(April 1, 2025 to March 31, 2026)

(Millions of yen)

---

| | |
|:---|:---|
| Subject | Amount |
| **Net sales** | **177488** |
| **Cost of sales** | **131780** |
| **Gross profit** | **45707** |
| **Selling, general and administrative expenses** | **32238** |
| **Operating profit** | **13468** |
| **Non-operating income** | **4671** |
| &nbsp;&nbsp;&nbsp;Interest and dividend income | 528 |
| &nbsp;&nbsp;&nbsp;Share of profit of entities accounted for using equity method | 2931 |
| &nbsp;&nbsp;&nbsp;Other | 1211 |
| **Non-operating expenses** | **969** |
| &nbsp;&nbsp;&nbsp;Interest expenses | 676 |
| &nbsp;&nbsp;&nbsp;Other | 292 |
| **Ordinary profit** | **17170** |
| **Extraordinary income** | **18** |
| &nbsp;&nbsp;&nbsp;Gain on sale of non-current assets | 18 |
| **Extraordinary losses** | **468** |
| &nbsp;&nbsp;&nbsp;Loss on retirement of non-current assets | 133 |
| &nbsp;&nbsp;&nbsp;Impairment losses | 335 |
| **Profit before income taxes** | **16720** |
| Income taxes - current | 3732 |
| Income taxes - deferred | 739 |
| Total income taxes | 4471 |
| **Profit** | **12249** |
| Profit attributable to non-controlling interests | 2420 |
| **Profit attributable to owners of parent** | **9828** |

---

**Consolidated Statements of Changes in Equity**

(Apr. 1, 2025 to Mar. 31, 2026)

(Unit: Million Yen)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity |
|  | &nbsp;&nbsp;Share capital | &nbsp;&nbsp;Capital surplus | &nbsp;&nbsp;Retained earnings | &nbsp;&nbsp;Treasury shares | &nbsp;&nbsp;Total shareholder's equity |
| &nbsp;&nbsp;Balance as of Apr. 1, 2025 | &nbsp;&nbsp;10490 | &nbsp;&nbsp;11827 | &nbsp;&nbsp;79846 | &nbsp;&nbsp;(7454) | &nbsp;&nbsp;94710 |
| &nbsp;&nbsp;Changes during period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  |  | &nbsp;&nbsp;(5087) |  | &nbsp;&nbsp;(5087) |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to owners of parent |  |  | &nbsp;&nbsp;9828 |  | &nbsp;&nbsp;9828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury shares |  |  |  | &nbsp;&nbsp;(4) | &nbsp;&nbsp;(4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal of treasury shares |  |  |  | &nbsp;&nbsp;275 | &nbsp;&nbsp;275 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net changes in items other than shareholders' equity |  |  |  |  |  |
| &nbsp;&nbsp;Total changes during period | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;4741 | &nbsp;&nbsp;270 | &nbsp;&nbsp;5011 |
| &nbsp;&nbsp;Balance as of Mar. 31, 2026 | &nbsp;&nbsp;10490 | &nbsp;&nbsp;11827 | &nbsp;&nbsp;84587 | &nbsp;&nbsp;(7183) | &nbsp;&nbsp;99722 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Accumulated other comprehensive income | &nbsp;&nbsp;Accumulated other comprehensive income | &nbsp;&nbsp;Accumulated other comprehensive income | &nbsp;&nbsp;Accumulated other comprehensive income | &nbsp;&nbsp;Non-controlling interests | &nbsp;&nbsp;Total net assets |
|  | &nbsp;&nbsp;Valuation difference on available-for- sale securities | &nbsp;&nbsp;Foreign currency translation adjustment | &nbsp;&nbsp;Remeasurements of defined benefit plans | &nbsp;&nbsp;Total accumulated other comprehensive income | &nbsp;&nbsp;Non-controlling interests | &nbsp;&nbsp;Total net assets |
| &nbsp;&nbsp;Balance as of Apr. 1, 2025 | &nbsp;&nbsp;727 | &nbsp;&nbsp;13056 | &nbsp;&nbsp;5336 | &nbsp;&nbsp;19120 | &nbsp;&nbsp;8688 | &nbsp;&nbsp;122519 |
| &nbsp;&nbsp;Changes during period |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  |  |  |  |  | &nbsp;&nbsp;(5087) |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit attributable to owners of parent |  |  |  |  |  | &nbsp;&nbsp;9828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury shares |  |  |  |  |  | &nbsp;&nbsp;(4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal of treasury shares |  |  |  |  |  | &nbsp;&nbsp;275 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net changes in items other than shareholders' equity | &nbsp;&nbsp;337 | &nbsp;&nbsp;9406 | &nbsp;&nbsp;4475 | &nbsp;&nbsp;14219 | &nbsp;&nbsp;870 | &nbsp;&nbsp;15089 |
| &nbsp;&nbsp;Total changes during period | &nbsp;&nbsp;337 | &nbsp;&nbsp;9406 | &nbsp;&nbsp;4475 | &nbsp;&nbsp;14219 | &nbsp;&nbsp;870 | &nbsp;&nbsp;20101 |
| &nbsp;&nbsp;Balance as of Mar. 31, 2026 | &nbsp;&nbsp;1064 | &nbsp;&nbsp;22463 | &nbsp;&nbsp;9811 | &nbsp;&nbsp;33340 | &nbsp;&nbsp;9558 | &nbsp;&nbsp;142621 |

---

**Notes to Consolidated Financial Statements**

**1.** **Notes Regarding Significant Accounting Policies for Preparation of Consolidated Financial Statements** 

(1) Scope of consolidation

① Status of consolidated subsidiaries

- Number of consolidated subsidiaries: 41

- Name of major consolidated subsidiaries:

EagleBurgmann Japan Co., Ltd.

Eagle Industry (Wuxi) Co., Ltd.

NEK CO.,LTD.

EBI Asia Pacific Pte. Ltd.

EagleBurgmann India Pvt. Ltd.

② Status of unconsolidated subsidiaries

- Name of major unconsolidated subsidiaries:

ARENA JAPAN Co., Ltd.

- Reason for excluding from the scope of consolidation:

The total assets, sales, profit or loss for the period (amount corresponding to equity) and retained earnings (amount corresponding to equity) of the any unconsolidated subsidiary are small given the figures on the consolidated financial statements of the Company and do not have a significant impact on them as a whole.

(2) Application of equity method

① Status of associates accounted for using equity method

- Number of associates accounted for using equity methods: 38

- Name of major associates accounted for using equity methods:

EagleBurgmann Germany GmbH & Co. KG

② Status of unconsolidated subsidiaries and associates not accounted for using equity method

- Name of major associates accounted for using equity methods:

ARENA JAPAN Co., Ltd.

- Reason for not applying equity method:

The unconsolidated subsidiary not subject to equity method is small in size and has only a slight effect on the consolidated financial statements of the Company and has no significance as a whole in terms of net income or loss for the period (amount corresponding to equity) and retained earnings (amount corresponding to equity), etc., if they are excluded from object of the equity method.

(3) Matters related to change of scope of consolidation and application scope of equity method

- Change of scope of consolidation

During the current consolidated fiscal year, Eagle Sealing R&D (Wuxi) CO., LTD. and Eagle Holding Germany GmbH have been excluded from the scope of consolidation due to their liquidation.

(4) Matters related to fiscal year of consolidated subsidiaries

NEK CO., LTD and thirty other companies settle their accounts on December 31. Therefore, their financial statements prepared based on provisional settlement of accounts as of the consolidated settlement of accounts are used for the preparation of consolidated financial statements.

(5) Matters related to Accounting policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Basis and methods for valuation of important assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Available-for-sale securities

- Securities other than shares that do not have a market value:

Fair value method (with the entire amount of valuation differences recorded directly into net assets, and the cost of sales calculated using the moving average method)

- Shares that do not have a market value: Cost method based on the moving average method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Derivative

Fair value method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Inventories<br> Mainly weighted average cost method (value on the consolidated balance sheet is calculated by writing down the book value based on the decline in profitability).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Method of depreciation of significant assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Property, plant and equipment (excluding leased assets)

The straight-line method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Intangible assets (excluding leased assets)

- Software for internal use

Software for internal use is amortized by the straight-line method over the available periods of five years.

- Other intangible assets

The straight-line method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Leased assets

Leased assets are depreciated over the lease period using the straight-line method with no residual value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Standard for important allowance & reserve

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Allowance for doubtful accounts

In order to prepare for losses on bad debts, allowances for doubtful accounts, which have been calculated from the loan loss ratio for general creditable assets, and the possibility of recovery considered on a case-by-case basis for specific debts such as debts that are deemed to be potentially uncollectible have been entered in the accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Provision for bonuses

In the Company and some consolidated subsidiaries, in order to prepare for employee bonuses, provision for bonuses based on the estimated amount of payment has been entered in the accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Provision for share-based remuneration to officers

To allow for the delivery of the Company's shares, etc. to Directors and other officers of the Company, the Company records a provision for the estimated amount of such benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Provision for loss on orders received

In order to prepare for future losses on orders, the Company provides a reserve for losses on order contracts that are expected to occur at the end of the fiscal year under review and for which it is possible to reasonably estimate the amount of such losses in the following fiscal year and thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Provision for environmental measures

In order to prepare for future expenses for environmental measures, reserves for environmental measures have been entered in the accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ Basis for recording significant revenues and expenses

The Group manufactures and sells mechanical seals, special valves, and other sealing equipment-related products, etc., primarily to the automotive and construction machinery industries, general machinery industry, semiconductor industry, marine industry, and aerospace industry. For sales of these products, the Company usually recognizes revenue when the products are inspected and accepted by the customer, because the Company believes that the customer obtains control over the products and the performance obligation is satisfied when the products are inspected and accepted by the customer. For sales in Japan, revenue is recognized at the time of shipment if the period between the time of shipment and the time of acceptance by the customer is a normal period of time. In addition, revenue is measured at the amount of consideration promised in the contract with the customer, less discounts and other items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;⑤ Other important matters for preparation of consolidated financial statements

Accounting method concerning employee retirement benefits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Method for assigning the projected amount of postretirement benefits to accounting periods

For the calculation of projected benefit obligation, the benefit formula attribution approach is used to attribute the projected amount of postretirement benefits to accounting periods up to the end of the consolidated fiscal year under review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Method for amortizing actuarial gains / losses and Past service costs

Actuarial gains and losses are amortized by the straight-line method over a fixed number of years (10 years) within the average remaining service period of employees at the time the gains or losses are recognized in the consolidated fiscal year following the year in which they are recognized. Past service costs are fully expensed when they are incurred.

**2.** **Notes Regarding Revenue Recognition** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Decomposition of revenue

The Group manufactures and sells mechanical seals, special valves, and other sealing device-related products, primarily to the automotive and construction machinery industries, general industrial machinery industry, semiconductor industry, marine industry, and aerospace industry.

Sales to each industry were 93,267 million yen, 39,492 million yen, 16,488 million yen, 19,479 million yen, and 8,760 million yen.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Basic information to understand revenue

As stated in "(5) Matters related to Accounting policies ④ Basis for recording significant revenues and expenses" of 1. Notes Regarding Significant Accounting Policies for Preparation of Consolidated Financial Statements

**3.** **Notes Regarding Changes in Presentation** 

(Consolidated Balance Sheets)

"Deferred tax liabilities," which were included in "Other" under non-current liabilities until the previous consolidated fiscal year, are separately listed starting from the current consolidated fiscal year due to their increased quantitative materiality. Furthermore, the "deferred tax liabilities" for the previous consolidated fiscal year amounted to 116 million yen.

**4.** **Notes Regarding Accounting Estimates** 

The following is a list of items for which an amount has been recorded in the consolidated financial statements for the fiscal year under review by an accounting estimate and which may have a material effect on the consolidated financial statements for the following fiscal year.

---

| | |
|:---|:---|
| Property, plant and equipment | 64,220 million yen |
| Deferred tax assets | 3,240 million yen |
| Deferred tax liabilities | 2,691 million yen |
| Retirement benefit asset | 9,383 million yen |
| Retirement benefit liability | 6,689 million yen |

---

**5.** **Notes Regarding Consolidated Balance Sheet** 

Accumulated depreciation amount of property, plant and equipment: 136,560 million yen

**6.** **Notes Regarding Consolidated Statements of Changes in Equity** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Types and total number of shares issued at the end of this Term

Common Shares 49,757,821

&nbsp;&nbsp;&nbsp;&nbsp;(2) Appropriation of retained earnings

① Dividend payment amounts etc.

&nbsp;&nbsp;&nbsp;&nbsp;A. Matters related to dividends was resolved at the Board of Directors held on May 20, 2025

---

| | |
|:---|:---|
| Total amount of dividend: | 2,312 million yen |
| Dividend per share: | 50.0 yen |
| Record date: | March 31, 2025 |
| Effective date: | June 5, 2025 |

---

&nbsp;&nbsp;&nbsp;&nbsp;B. Matters related to dividends was resolved at the Board of Directors held on November 10, 2025

---

| | |
|:---|:---|
| Total amount of dividend: | 2,775 million yen |
| Dividend per share: | 60.0 yen |
| Record date: | September 30, 2025 |
| Effective date: | December 2, 2025 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The total amount of dividends includes dividends to the Company's shares held by the officer compensation BIP (Board Incentive Plan) trust system and the Employee Stock Ownership Association Trust-Type ESOP Trust Account. (51 million yen as per the Board of Directors resolution on May 20, 2025, and 53 million yen as per the Board of Directors resolution on November 10, 2025)

② Dividend whose record date is in this fiscal year with its effective date in the next fiscal year

Matters related to dividends was resolved at the Board of Directors held on May 21, 2026

---

| | |
|:---|:---|
| Total amount of dividend: | 3,006 million yen |
| Dividend per share: | 65.0 yen |
| Record date: | March 31, 2026 |
| Effective date: | June 5, 2026 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The total amount of dividend includes 52 million yen of dividends on the Company's share held by the officer compensation BIP (Board Incentive Plan) trust system.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters related to share acquisition rights at the end of this consolidated fiscal year

Not applicable.

**7.** **Notes Regarding Financial Instruments** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters related to the status of financial instruments

① The Company policy related to financial instruments

The Group operates the cash management on safe and reliable investments and obtaining the financing from the financial institution mainly.

The Group uses exchange forward contracts based on actual demand and interest rate swaps for the purpose of avoiding interest rate fluctuation risk on borrowings, but does not engage in speculative transactions.

② Contents of financial instruments and its risk, risk management structure

Notes receivable-trade, accounts receivable-trade and electronically recorded monetary claims-operating are always being exposed to the customer's credit risk. The Group established a corporate structure that can review the credit terms and limit for all customers and grasp the credit status annually in accordance with the Group's credit exposure management rule.

Investment securities are being exposed to the interest rate risk of market price though, most of the securities are the corporation's shares of companies with which the Company have a relationships on business and the fair market value of said securities reviewed periodically are reported to the financial operating officer.

Most of the accounts payable-trade and electronically recorded obligations-operating are due within a year.

Short-term borrowings are mainly used for fund-raise related to the business transactions, while long-term borrowings are used for fund-raise prepared for capital expenditures and contingency. Variable interest rates are exposed to the risk of fluctuations in borrowing interest rates. For a portion of these long-term bank loans, in order to avoid the risk of fluctuations in interest rates payable and fix interest expenses, the Group enters into derivative transactions (interest rate swaps) for each individual contract as hedging instruments. Since the interest rate swaps meet the requirements for special treatment, the assessment of hedge effectiveness is omitted.

With regard to the execution and control of derivative transactions, the Group is subject to the trading authorization stipulated in the company regulation and these derivatives are limited to highly rated financial institutions in order to mitigate credit risks. Accounts payable-trade and debt payable are being exposed to the liquidity risk though, the Group manages the said accounts by using monthly cash flow projection provided by all the companies.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters regarding to fair market value of financial instruments

The amounts of financial instruments in the consolidated balance sheets, fair values and the differences as of March 31, 2026 (closing date for the fiscal year under review) are as shown below.

(Unit: Million Yen)

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Amount recorded on the consolidated balance sheets (\*) | &nbsp;&nbsp;Fair values (\*) | &nbsp;&nbsp;Differences |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment securities<br> Available-for-sale securities | &nbsp;&nbsp;2066 | &nbsp;&nbsp;2066 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Total assets | &nbsp;&nbsp;2066 | &nbsp;&nbsp;2066 | &nbsp;&nbsp;- |
| &nbsp;&nbsp; Long-term borrowings<br> (Including current portion of long-term borrowings) | &nbsp;&nbsp;(34783) | &nbsp;&nbsp;(34216) | &nbsp;&nbsp;567 |
| &nbsp;&nbsp;Total liabilities | &nbsp;&nbsp;(34783) | &nbsp;&nbsp;(34216) | &nbsp;&nbsp;567 |

---

(\*) Items recorded as liabilities are shown in parentheses.

Note 1. "Cash and deposits," "Notes receivable-trade," "Accounts receivable-trade," "Electronically recorded monetary claims-operating," "Accounts payable-trade," "Electronically recorded obligations-operating," "Short-term borrowings" and "Accounts payable-other" are omitted because they are cashes and paid out in a short period of time.

Note 2. Shares and other securities with no market value (amounts on consolidated balance sheets: 20,071 million yen) are not included in "Investment securities Available-for-sale securities."

&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters related to the breakdown of the fair value of financial instruments by appropriate category, etc.

The fair value of financial instruments is classified into the following three levels based on the observability and materiality of the inputs used to calculate fair value.

---

| | |
|:---|:---|
| &nbsp;&nbsp;Level 1 fair value: | &nbsp;&nbsp;Fair value calculated based on quoted market prices for the assets or liabilities for which such fair value is calculated that are formed in an active market among the inputs to the calculation of observable fair value |
| &nbsp;&nbsp;Level 2 fair value: | &nbsp;&nbsp;Fair value calculated using inputs other than Level 1 inputs to the calculation of observable fair value. |
| &nbsp;&nbsp;Level 3 fair value: | &nbsp;&nbsp;Fair value calculated using inputs related to the calculation of unobservable fair value. |

---

When multiple inputs that have a significant impact on the fair value calculation are used, the fair value is classified into the level with the lowest priority in the calculation of fair value among the levels to which those inputs belong.

① Financial assets and financial liabilities with the carrying amount recorded on consolidated balance sheets using the fair value

---

| | | | | |
|:---|:---|:---|:---|:---|
| Category | Fair value (Unit: million yen) | Fair value (Unit: million yen) | Fair value (Unit: million yen) | Fair value (Unit: million yen) |
| Category | Level 1 | Level 2 | Level 3 | Total |
| &nbsp;&nbsp;Investment securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares | 1794 |  |  | 1794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | - | 272 | - | 272 |
| Total assets | 1794 | 272 | - | 2066 |

---

② Financial assets and financial liabilities with the carrying amount not recorded using the fair value

---

| | | | | |
|:---|:---|:---|:---|:---|
| Category | Fair value (Unit: million yen) | Fair value (Unit: million yen) | Fair value (Unit: million yen) | Fair value (Unit: million yen) |
| Category | Level 1 | Level 2 | Level 3 | Total |
| &nbsp;&nbsp;Long-term borrowings |  |  |  |  |
| &nbsp;&nbsp;(Including current portion of long-term borrowings) | - | 34216 | - | 34216 |
| Total liabilities | - | 34216 | - | 34216 |

---

Note. Explanation of valuation method used in the calculation of fair value and inputs related to the calculation of fair value.

Investment securities

Listed shares and corporate bonds are valued using quoted market prices. Since listed shares are traded in active markets, their fair value is classified as Level 1 fair value. On the other hand, corporate bonds are classified as Level 2 fair value because they are traded infrequently in the market and are not considered quoted prices in active markets.

Long-term borrowings (Including Loans Payable Within One Year);

The fair value of long-term borrowings is calculated based on the present value of the total principal and interest discounted at the interest rate that would be applicable to a similar new loan, and is classified as Level 2 fair value. Long-term borrowings with variable interest rates are subject to special treatment for interest rate swaps and are calculated using the sum of the principal and interest recognized as a single unit with such interest rate swaps.

**8.** **Notes Regarding Per Share Information** 

(1) Net asset per share: 2,927.77 yen

(2) Basic earnings per share: 216.75 yen

---

| | |
|:---|:---|
| Notes: | The Company's shares held by the officer compensation BIP (Board Incentive Plan) trust system and the Employee Stock Ownership Association Trust-Type ESOP Trust Account are included in treasury shares as a deduction in the calculation of per share information. The number of treasury shares held in those accounts at the end of the fiscal year under review was 802 thousand shares, and average number of shares during the term is 905 thousand shares. |

---

**9.** **Notes Regarding Significant Subsequent Event** 

None

**Audit Report**

**Accounting audit report on Consolidated Financial Statements**

**Independent Auditor's Report**

May 15, 2026

The Board of Directors

Eagle Industry Co., Ltd.

Nihombashi Corporation, Incorporated Accounting Firm

Chuo-ku, Tokyo

Designated Employee, Executive Employee

Certified Public Accountant<br> Yoshiaki Yanagi

Designated Employee, Executive Employee

Certified Public Accountant<br> Hiroaki Kuroiwa

*Audit Opinion*

Pursuant to the provisions of Article 444, Paragraph 4 of the Companies Act, we have audited the consolidated financial statements of Eagle Industry Co., Ltd. for the consolidated fiscal year from April 1, 2025, to March 31, 2026—namely, the Consolidated Balance Sheet, the Consolidated Statement of Income, the Consolidated Statements of Changes in Equity, and the Notes to Consolidated Financial Statements.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position and the results of operations of the corporate group (consisting of Eagle Industry Co., Ltd. and its consolidated subsidiaries) for the period covered by the said consolidated financial statements, in accordance with accounting principles generally accepted in Japan.

*Basis for Opinion*

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. We are independent of the Company and its consolidated subsidiaries in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan (including requirements applicable to audits of financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Other Information*

The "Other Information" consists of the Business Report and the related supplementary schedules. Management is responsible for the preparation and disclosure of the Other Information. In addition, the Audit and Supervisory Committee is responsible for overseeing the Directors' execution of their duties in the establishment and operation of the reporting process for the Other Information.

The scope of our audit opinion on the consolidated financial statements does not include the Other Information, and we do not express an opinion on the Other Information.

Our responsibility in the audit of the consolidated financial statements is to read through the Other Information and, in doing so, consider whether there are material inconsistencies between the Other Information and the consolidated financial statements or the knowledge we obtained during the audit process, and to remain alert for any indications of material misstatements in the Other Information beyond such material inconsistencies.

If, based on the work we have performed, we conclude that there is a material misstatement in the Other Information, we are required to report that fact.

Regarding the Other Information, there are no matters that we are required to report.

*Responsibilities of Management and the Audit and Supervisory Committee for the Consolidated Financial Statements*

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in Japan. This includes the development and operation of such internal control as management determines is necessary to enable the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare the consolidated financial statements based on the going concern assumption and for disclosing matters related to going concern if such disclosure is necessary in accordance with accounting principles generally accepted in Japan.

The Audit and Supervisory Committee is responsible for overseeing the Directors' execution of their duties in the establishment and operation of the financial reporting process.

*Auditor's Responsibilities for the Audit of the Consolidated Financial Statements*

The responsibilities of the auditor are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, based on the audit performed by the auditor, and to express an opinion on the consolidated financial statements from an independent standpoint in the audit report. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

The auditor conducts the audit in accordance with auditing standards generally accepted in Japan, exercising professional judgment and maintaining professional skepticism throughout the audit process to perform the following:

&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement, whether due to fraud or error. Design and perform
audit procedures responsive to those risks of material misstatement. The selection and application of audit procedures are at the auditor's
discretion. Furthermore, obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

&nbsp;&nbsp;&nbsp;&nbsp;• The purpose of the audit of the consolidated financial statements is not to express an opinion on the
effectiveness of internal control. However, in making those risk assessments, the auditor considers internal control relevant to the audit
in order to design audit procedures that are appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies adopted by management and the application thereof,
as well as the reasonableness of accounting estimates made by management and the adequacy of the related disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;• The auditor concludes whether it is appropriate for management to prepare the consolidated financial statements
on a going concern basis, and whether, based on the audit evidence obtained, a material uncertainty exists related to events or conditions
that may cast significant doubt on the entity's ability to continue as a going concern. If the auditor concludes that a material
uncertainty exists, they are required to draw attention in the auditor's report to the related disclosures in the consolidated financial
statements. Or, if such disclosures are inadequate, to express a qualified opinion on the consolidated financial statements. While the
auditor's conclusions are based on the audit evidence obtained up to the date of the auditor's report, future events or conditions
may cause an entity to cease to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;• The auditor evaluates whether the presentation and disclosures of the consolidated financial statements
are in accordance with generally accepted accounting principles in Japan. Furthermore, the auditor evaluates the overall presentation,
structure, and content of the consolidated financial statements (including the disclosures) and whether the consolidated financial statements
represent the underlying transactions and accounting events in a manner that achieves fair presentation.

&nbsp;&nbsp;&nbsp;&nbsp;• The auditor must plan and perform the auditing of consolidated financial statements, in order to obtain
sufficient and appropriate audit evidence relating to the financial information of the Company and its consolidated subsidiaries, which
becomes the basis of expressing an opinion on the consolidated financial statements. The auditor is responsible for the direction, supervision,
and review of the audit of the consolidated financial statements. The auditor remains solely responsible for the audit opinion.

The auditor will report to the Audit and Supervisory Committee regarding the planned scope and timing of the audit, significant findings identified during the audit process including material deficiencies in internal control, and other matters required by auditing standards.

The auditor will report to the Audit and Supervisory Committee that they have complied with the relevant provisions of professional ethics regarding independence in Japan. Furthermore, the auditor will report all matters that may reasonably be thought to bear on the auditor's independence, as well as the details of any actions taken to eliminate inhibiting factors or safeguards applied to reduce such factors to an acceptable level.

*Interests*

There are no interests between the Company and its consolidated subsidiaries and the Audit Firm or its engagement partners that are required to be disclosed under the provisions of the Certified Public Accountants Act.

**Financial Statements**

<u>**BALANCE SHEETS**</u>

(As of Mar. 31, 2026)

(Unit: Million Yen)

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;Subject | &nbsp;&nbsp;Amount | &nbsp;&nbsp;Subject | &nbsp;&nbsp;Amount |
| &nbsp;&nbsp;**ASSETS** |  | &nbsp;&nbsp;**LIABILITIES** |  |
| &nbsp;&nbsp;**CURRENT ASSETS** | &nbsp;&nbsp;**66392** | &nbsp;&nbsp;**CURRENT LIABILITIES** | &nbsp;&nbsp;**47156** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and deposits | &nbsp;&nbsp;6950 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade | &nbsp;&nbsp;9599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable - trade | &nbsp;&nbsp;67 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded obligations - operating | &nbsp;&nbsp;3063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded monetary claims - operating | &nbsp;&nbsp;6063 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded obligations - operating | &nbsp;&nbsp;3063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electronically recorded monetary claims - operating | &nbsp;&nbsp;6063 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | &nbsp;&nbsp;2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable - trade | &nbsp;&nbsp;20251 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short - term borrowings from subsidiaries and affiliates | &nbsp;&nbsp;5622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchandise and finished goods | &nbsp;&nbsp;2977 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short - term borrowings from subsidiaries and affiliates | &nbsp;&nbsp;5622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Work in process | &nbsp;&nbsp;4144 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term borrowings | &nbsp;&nbsp;11810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Raw materials and supplies | &nbsp;&nbsp;4969 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | &nbsp;&nbsp;53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance payments - trade | &nbsp;&nbsp;2700 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - other | &nbsp;&nbsp;2688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable - other | &nbsp;&nbsp;5763 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | &nbsp;&nbsp;283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-Term Loan | &nbsp;&nbsp;9074 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | &nbsp;&nbsp;1461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;3443 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bonuses | &nbsp;&nbsp;2079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts | &nbsp;&nbsp;(15) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) | &nbsp;&nbsp;600 |
| &nbsp;&nbsp;**NON-CURRENT ASSETS** | &nbsp;&nbsp;**91330** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for share awards for directors (and other officers) | &nbsp;&nbsp;600 |
| &nbsp;&nbsp;&nbsp;**PROPERTY, PLANT AND EQUIPMENT** | &nbsp;&nbsp;**27145** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits received from employees | &nbsp;&nbsp;4366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings | &nbsp;&nbsp;12107 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;3026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Structures | &nbsp;&nbsp;465 | &nbsp;&nbsp;**NON-CURRENT LIABILITIES** | &nbsp;&nbsp;**33236** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery & equipment | &nbsp;&nbsp;8125 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term borrowings | &nbsp;&nbsp;22865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vehicles | &nbsp;&nbsp;60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | &nbsp;&nbsp;90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tools, furniture & fixtures | &nbsp;&nbsp;1986 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long - term accounts payable - other | &nbsp;&nbsp;162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land | &nbsp;&nbsp;2042 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for retirement benefits | &nbsp;&nbsp;10066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leased assets | &nbsp;&nbsp;142 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | &nbsp;&nbsp;2214 | &nbsp;&nbsp;**TOTAL LIABILITIES** | &nbsp;&nbsp;**80392** |
| &nbsp;&nbsp;&nbsp;**INTANGIBLE ASSETS** | &nbsp;&nbsp;**1688** | &nbsp;&nbsp;**(NET ASSETS)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software | &nbsp;&nbsp;1547 | &nbsp;&nbsp;**SHAREHOLDERS' EQUITY** | &nbsp;&nbsp;**76271** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;140 | &nbsp;&nbsp;&nbsp;**SHARE CAPITAL** | &nbsp;&nbsp;**10490** |
| &nbsp;&nbsp;&nbsp;**INVESTMENTS AND OTHER ASSETS** | &nbsp;&nbsp;**6249**7 | &nbsp;&nbsp;&nbsp;**CAPITAL SURPLUS** | &nbsp;&nbsp;**12326** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | &nbsp;&nbsp;1863 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal capital surplus | &nbsp;&nbsp;11337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of subsidiaries and associates | &nbsp;&nbsp;54185 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other capital surplus | &nbsp;&nbsp;988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term loans receivable | &nbsp;&nbsp;189 | &nbsp;&nbsp;&nbsp;**RETAINED EARNINGS** | &nbsp;&nbsp;**60637** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term loans receivable from subsidiaries and associates | &nbsp;&nbsp;565 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal retained earnings | &nbsp;&nbsp;599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | &nbsp;&nbsp;5014 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other retained earnings | &nbsp;&nbsp;60038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | &nbsp;&nbsp;929 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for advanced depreciation of non - current assets | &nbsp;&nbsp;101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts | &nbsp;&nbsp;(250) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for advanced depreciation of non - current assets | &nbsp;&nbsp;101 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General reserve | &nbsp;&nbsp;730 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings brought forward | &nbsp;&nbsp;59206 |
|  |  | &nbsp;&nbsp;&nbsp;**TREASURY SHARES** | &nbsp;&nbsp;**(7183)** |
|  |  | &nbsp;&nbsp;**VALUATION AND TRANSLATION ADJUSTMENTS** | &nbsp;&nbsp;**1058** |
|  |  | &nbsp;&nbsp;**Valuation difference on available-for- sale securities** | &nbsp;&nbsp;**1058** |
|  |  | &nbsp;&nbsp;**TOTAL NET ASSETS** | &nbsp;&nbsp;**77330** |
| &nbsp;&nbsp;**TOTAL ASSETS** | &nbsp;&nbsp;**157722** | &nbsp;&nbsp;**TOTAL LIABILITIES & NET ASSETS** | &nbsp;&nbsp;**157722** |

---

<u>**STATEMENTS OF INCOME**</u>

(Apr. 1, 2025 to Mar. 31, 2026)

(Unit: Million Yen)

---

| | |
|:---|:---|
| Subject | Amount |
| **Net sales** | **103463** |
| **Cost of sales** | **88218** |
| **Gross profit** | **15245** |
| **Selling, general and administrative expenses** | **13321** |
| **Operating profit** | **1923** |
| **Non-operating income** | **7968** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income | 7133 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 834 |
| **Non-operating expenses** | **1723** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expenses | 652 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1070 |
| **Ordinary profit** | **8168** |
| **Extraordinary income** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of non-current assets | 1 |
| **Extraordinary losses** | **941** |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on retirement of non-current assets | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment losses | 335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 491 |
| **Profit before income taxes** | **7229** |
| Income taxes - current | 442 |
| Income taxes - deferred | 383 |
| **Profit** | **6403** |

---

**STATEMENTS OF CHANGES IN EQUITY**

(Apr. 1, 2025 to Mar. 31, 2026)

(Unit: Million Yen)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity |
|  | &nbsp;&nbsp;Share capital | &nbsp;&nbsp;Capital surplus | &nbsp;&nbsp;Capital surplus | &nbsp;&nbsp;Capital surplus | &nbsp;&nbsp;Retained earnings | &nbsp;&nbsp;Retained earnings | &nbsp;&nbsp;Retained earnings | &nbsp;&nbsp;Retained earnings | &nbsp;&nbsp;Retained earnings |
|  | &nbsp;&nbsp;Share capital | &nbsp;&nbsp;Legal capital surplus | &nbsp;&nbsp;Other capital surplus | &nbsp;&nbsp;Total capital surplus | &nbsp;&nbsp;Legal retained earning | &nbsp;&nbsp;Other retained earnings | &nbsp;&nbsp;Other retained earnings | &nbsp;&nbsp;Other retained earnings | &nbsp;&nbsp;Total retained earnings |
|  | &nbsp;&nbsp;Share capital | &nbsp;&nbsp;Legal capital surplus | &nbsp;&nbsp;Other capital surplus | &nbsp;&nbsp;Total capital surplus | &nbsp;&nbsp;Legal retained earning | &nbsp;&nbsp;Reserve for advanced depreciation of non - current assets | &nbsp;&nbsp;General reserve | &nbsp;&nbsp;Retained earnings brought forward | &nbsp;&nbsp;Total retained earnings |
| &nbsp;&nbsp;Balance as of Apr. 1, 2025 | &nbsp;&nbsp;10490 | &nbsp;&nbsp;11337 | &nbsp;&nbsp;988 | &nbsp;&nbsp;12326 | &nbsp;&nbsp;599 | &nbsp;&nbsp;101 | &nbsp;&nbsp;730 | &nbsp;&nbsp;57891 | &nbsp;&nbsp;59322 |
| &nbsp;&nbsp;Changes during period |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Dividends of surplus |  |  |  |  |  |  |  | &nbsp;&nbsp;(5087) | &nbsp;&nbsp;(5087) |
| &nbsp;&nbsp;Profit |  |  |  |  |  |  |  | &nbsp;&nbsp;6403 | &nbsp;&nbsp;6403 |
| &nbsp;&nbsp;Purchase of treasury shares |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Disposal of treasury shares |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net changes in items other than shareholders' equity |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total changes during period | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1315 | &nbsp;&nbsp;1315 |
| &nbsp;&nbsp;Balance as of Mar. 31, 2026 | &nbsp;&nbsp;10490 | &nbsp;&nbsp;11337 | &nbsp;&nbsp;988 | &nbsp;&nbsp;12326 | &nbsp;&nbsp;599 | &nbsp;&nbsp;101 | &nbsp;&nbsp;730 | &nbsp;&nbsp;59206 | &nbsp;&nbsp;60637 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;Shareholders' equity | &nbsp;&nbsp;VALUATION AND TRANSLATION ADJUSTMENTS | &nbsp;&nbsp;VALUATION AND TRANSLATION ADJUSTMENTS | &nbsp;&nbsp;Total net assets |
|  | &nbsp;&nbsp;Treasury shares | &nbsp;&nbsp;Total shareholder's equity | &nbsp;&nbsp;Valuation difference on available-for- sale securities | &nbsp;&nbsp;Total valuation and translation adjustments | &nbsp;&nbsp;Total net assets |
| &nbsp;&nbsp;Balance as of Apr. 1, 2025 | &nbsp;&nbsp;(7454) | &nbsp;&nbsp;74685 | &nbsp;&nbsp;719 | &nbsp;&nbsp;719 | &nbsp;&nbsp;75404 |
| &nbsp;&nbsp;Changes during period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends of surplus |  | &nbsp;&nbsp;(5087) |  |  | &nbsp;&nbsp;(5087) |
| &nbsp;&nbsp;&nbsp;&nbsp;Profit |  | &nbsp;&nbsp;6403 |  |  | &nbsp;&nbsp;6403 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury shares | &nbsp;&nbsp;(4) | &nbsp;&nbsp;(4) |  |  | &nbsp;&nbsp;(4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal of treasury shares | &nbsp;&nbsp;275 | &nbsp;&nbsp;275 |  |  | &nbsp;&nbsp;275 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net changes in items other than shareholders' equity |  |  | &nbsp;&nbsp;339 | &nbsp;&nbsp;339 | &nbsp;&nbsp;339 |
| &nbsp;&nbsp;Total changes during period | &nbsp;&nbsp;270 | &nbsp;&nbsp;1586 | &nbsp;&nbsp;339 | &nbsp;&nbsp;339 | &nbsp;&nbsp;1925 |
| &nbsp;&nbsp;Balance as of Mar. 31, 2026 | &nbsp;&nbsp;(7183) | &nbsp;&nbsp;76271 | &nbsp;&nbsp;1058 | &nbsp;&nbsp;1058 | &nbsp;&nbsp;77330 |

---

**Notes to Non-Consolidated Financial Statements**

**1.** **Notes Regarding Significant Accounting Policy** 

(1) Evaluation standard and method of assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Shares of subsidiaries and associates:

Cost method based on the moving average method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Available-for-sale securities

- Securities other than shares that do not have a market value:

Market value method based on the market price as of the year end settlement date (all differences arising from valuations are charged directly to the shareholders' equity and cost of sale is calculated by the moving average method)

- Shares that do not have a market value:

Cost method based on the moving average method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Derivative

Fair value method

&nbsp;&nbsp;&nbsp;&nbsp;④ Inventories

Mainly stated at cost determined by the weighted average method (value on the consolidated balance sheets is calculated by writing down the book value based on the decline in profitability).

(2) Method of depreciation of fixed assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Property, plant and equipment (excluding leased assets)

The straight-line method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Intangible assets (excluding leased assets)

- Software for internal use

Software for internal use is amortized by the straight-line method over the available periods of five years.

- Other intangible assets

The straight-line method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Leased assets

Leased assets are depreciated over the lease period using the straight-line method with no residual value.

(3) Standard for allowance & provision

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Allowance for doubtful accounts

In order to prepare for losses on bad debts, allowances for doubtful accounts, which have been calculated from the loan loss ratio for general creditable assets, and the possibility of recovery considered on a case-by-case basis for specific debts such as debts that are deemed to be potentially uncollectible have been entered in the accounts.

&nbsp;&nbsp;&nbsp;&nbsp;② Provision for bonuses

In order to prepare for employee bonuses, reserve for bonuses based on the estimated amount of payment has been entered in the accounts.

&nbsp;&nbsp;&nbsp;&nbsp;③ Provision for share-based remuneration to officers

To allow for the delivery of the Company's shares, etc. to Directors and other officers, the Company records a provision for the estimated amount of such benefits.

&nbsp;&nbsp;&nbsp;&nbsp;④ Provision for retirement benefits

In order to prepare for retirement benefits for employees, retirement benefit obligations and pension assets are recorded based on the expected amount of retirement benefit obligations and pension assets as of the end of the current fiscal year.

The difference in actuarial calculations is calculated by prorating the amount by the straight-line method based on a certain number of years (10 years) within the average remaining working period of the employee at the time of occurrence of each fiscal year, and the expense is treated from the fiscal year following the occurrence. Past service costs are fully expensed when they are incurred.

(4) Basis for recording revenues and expenses

The Company manufactures and sells mechanical seals, special valves, and other sealing equipment-related products, etc., primarily to the automotive and construction machinery industries, general industrial machinery industry, semiconductor industry, marine industry, and aerospace industry. For sales of these products, the Company usually recognizes revenue when the products are inspected and accepted by the customer, because the Company believes that the customer obtains control over the products and the performance obligation is satisfied when the products are inspected and accepted by the customer. For sales in Japan, revenue is recognized at the time of shipment if the period between the time of shipment and the time of acceptance by the customer is a normal period of time. In addition, revenue is measured at the amount of consideration promised in the contract with the customer, less discounts and other items.

**2.** **Notes Regarding Accounting Estimates** 

The following is a list of items for which an amount has been recorded in the financial statements for the fiscal year under review by an accounting estimate and which may have a material effect on the financial statements for the following fiscal year.

Property, plant and equipment: 27,145 million yen <br> Deferred tax assets: 5,014 million yen

**3.** **Notes Regarding Balance Sheet** 

---

| | |
|:---|:---|
| (1) Accumulated depreciation amount of property, plant and equipment: | 48,959 million yen |
| (2) Guarantee obligations: | 349 million yen |

---

Our company provided debt guarantees for the loans from our subsidiaries and affiliates' banks.

Guarantee reserved Major companies that received our guarantees are as follows:

EKK Eagle Products India Pvt. Ltd. 224 million yen

(3) Loan from or given to subsidiaries and associates

① Short-term loan given to subsidiaries and associates: 12,028 million yen

② Short-term loan from subsidiaries and associates: 5,228 million yen

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Notes Regarding Statements of Income** 

Transaction with subsidiaries and associates

(1) Transaction amount through operating transaction

① Net sales: 50,870 million yen

② Amount of purchase: 55,454 million yen

---

| | |
|:---|:---|
| (2) Transaction amount less amount of operating transaction: | 7,387 million yen |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Notes Regarding Non-consolidated Statements of Changes in Equity** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; Total number of treasury share | &nbsp;&nbsp; Total number of treasury share |  | &nbsp;&nbsp;(Unit: Thousand) | &nbsp;&nbsp;(Unit: Thousand) |
| &nbsp;&nbsp;Class of Shares | &nbsp;&nbsp;No. <br> April 1, 2025 | &nbsp;&nbsp;Increase During This Period | &nbsp;&nbsp;Decrease During This Period | &nbsp;&nbsp;No. <br> Mar 31, 2026 |
| &nbsp;&nbsp;Common Shares | &nbsp;&nbsp;4542 | &nbsp;&nbsp;1 | &nbsp;&nbsp;235 | &nbsp;&nbsp;4309 |

---

Note: The number of treasury shares held in the officer compensation BIP (Board Incentive Plan) trust system at the end of the fiscal year under review was 802 thousand shares.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Notes Regarding Tax Effect Accounting** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Main causes of deferred tax asset and deferred tax liability

Deferred tax assets come from Provision for retirement benefits, Loss on revaluation of inventories and Provision for bonuses. Deferred tax liabilities come from valuation difference on available-for-sales securities.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Allowance account deducted from deferred tax assets: 613
million yen

&nbsp;&nbsp;&nbsp;&nbsp;(3) Accounting for corporate and local corporate tax or for tax effect accounting related to these taxes

The Company has adopted the Group Tax Sharing System, and has adopted and disclosed the accounting treatment of corporate taxes and local corporate taxes or tax effect accounting related to these taxes following the "Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System" (Practical Solution No.42, August 12, 2021).

**7.** **Notes to Related Party Transactions** 

(1) Parent company and major shareholders

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Contents | Name | Capital or Amount Invested<br> (Millions of yen) | Main Business | Voting Right (%) | Relationships on Business | Transaction | Transaction Amount<br> (Millions of yen) | Subject | Balance<br> (Millions of yen) |
| Other Related Company | NOK Corporation | 23335 | Manuf. & Sale of Oil Seal etc. | (Owned)<br> Direct:<br> 32.1<br> Indirect:<br> 0.2 | Sale of EKK's Products As Per Agency Agr. | Sale of EKK's Products etc. | 18139 | Accounts receivable - trade | 1652 |

---

(2) Affiliate and others

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Contents | Name | Capital or Amount Invested<br> (Millions of yen) | Main Business | Voting Right (%) | Relationships on Business | Transaction | Transaction Amount<br> (Millions of yen) | Subject | Balance<br> (Millions of yen) |
| Subsidiary | EagleBurgmann Japan Co., Ltd. | 2930 | Manuf. & Sale, Repair of M/S etc. | Direct:<br> 75.0 | Purchase of This Company's Seal Products etc. | Purchase of This Company's Products etc. | 15277 | Accounts payable - trade | 1531 |
| Subsidiary | EagleBurgmann Japan Co., Ltd. | 2930 | Manuf. & Sale, Repair of M/S etc. | Direct:<br> 75.0 | Purchase of This Company's Seal Products etc. | Service Fees etc. | - | Accounts receivable - other | 2069 |
| Subsidiary | EagleBurgmann Japan Co., Ltd. | 2930 | Manuf. & Sale, Repair of M/S etc. | Direct:<br> 75.0 | Purchase of This Company's Seal Products etc. | Borrowed Fund | 1482 | Short - term borrowings from subsidiaries and affiliates | 1890 |
| Subsidiary | Shimane Eagle Co., Ltd. | 490 | Manuf. of M/S, Special Valves | Direct:<br> 100.0 | Purchase of This Company's Seal Products etc. | Borrowed Fund | 2756 | Short - term borrowings from subsidiaries and affiliates | 2774 |
| Subsidiary | Okayama Eagle Co., Ltd. | 480 | Manuf. of M/S, Special Valves | Direct:<br> 100.0 | Purchase of This Company's Seal Products etc. | Purchase of This Company's Products etc. | 12942 | Accounts payable - trade | 1102 |
| Subsidiary | Okayama Eagle Co., Ltd. | 480 | Manuf. of M/S, Special Valves | Direct:<br> 100.0 | Purchase of This Company's Seal Products etc. | Loan of Fund | 2458 | Short-Term Loan | 2472 |
| Subsidiary | Eagle Industry Niigata Co., Ltd., | 490 | Manuf. of Seal Products etc. for Semiconduct-or Industry | Direct:<br> 100.0 | Purchase of This Company's Seal Products etc. | Underwriting of capital increase | 4880 | - | - |
| Subsidiary | Eagle Industry Niigata Co., Ltd., | 490 | Manuf. of Seal Products etc. for Semiconduct-or Industry | Direct:<br> 100.0 | Purchase of This Company's Seal Products etc. | Loan of Fund | 2702 | Short-Term Loan | 3390 |
| Subsidiary | Eagle Holding Europe B. V. | 309 | Holding Company | Direct:<br> 100.0 | Holding Company | Loan of Fund | 2748 | Short-Term Loan | 1936 |

---

Notes: Terms and conditions of the transaction and their decision making

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Interest rates on borrowing and loans are decided considering current market interest rates. In cases where
transactions are repetitive, the transaction amount is stated as the average balance during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Terms and conditions of purchase & sale of products are decided considering current market prices etc.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Notes Regarding Per Share Information** 

(1) Net asset per share: 1,701.49 yen

(2) Basic earnings per share: 141.20 yen

Notes: The Company's shares held by the officer compensation BIP (Board Incentive Plan) trust system and the Employee Stock Ownership Association Trust-Type ESOP Trust Account are included in treasury shares as a deduction in the calculation of per share information. The number of treasury shares held in those accounts at the end of the fiscal year under review was 802 thousand shares, and average number of shares during the term is 905 thousand shares.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Notes Regarding Significant Subsequent Event** 

None

**Accounting audit report on Non-Consolidated Financial Statements**

**Independent Auditor's Report**

May 15, 2026

The Board of Directors

Eagle Industry Co., Ltd.

Nihombashi Corporation, Incorporated Accounting Firm

Chuo-ku, Tokyo

Designated Employee, Executive Employee

Certified Public Accountant<br> Yoshiaki Yanagi

Designated Employee, Executive Employee

Certified Public Accountant<br> Hiroaki Kuroiwa

*Audit Opinion*

Pursuant to the provisions of Article 436, Paragraph 2, Item 1 of the Companies Act, this Audit Firm has conducted an audit of the financial statements of Eagle Industry Co., Ltd. for the 72nd fiscal year from April 1, 2025 to March 31, 2026—namely, the Balance Sheet, Statement of Income, Statements of Changes in Equity, and Notes to The Non-Consolidated Financial Statements, as well as the Supplementary Schedules (hereinafter referred to as the "Financial Statements, etc.").

Our audit firm considers that the aforementioned financial statements and related documents properly present, in all material respects, the financial position and results of operations for the period covered by such statements and documents, in accordance with generally accepted accounting principles in Japan.

*Basis for Opinion*

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements, etc." section of our report. Our audit firm is independent of the Company in accordance with the provisions regarding professional ethics in Japan (including provisions applicable to audits of financial statements of public interest entities), and has fulfilled its other ethical responsibilities as an auditor. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Other Information*

The Other Information consists of the Business Report and the related supplementary schedules. Management is responsible for the preparation and disclosure of the Other Information. In addition, the Audit and Supervisory Committee is responsible for overseeing the Directors' execution of their duties in the establishment and operation of the reporting process for the Other Information.

The scope of our audit opinion on the Financial Statements, etc. does not include the Other Information, and we do not express an opinion on the Other Information.

Our responsibility in the audit of the Financial Statements, etc. is to read through the Other Information and, in doing so, consider whether there are material inconsistencies between the Other Information and the Financial Statements, etc. or the knowledge we obtained during the audit process, and to remain alert for any indications of material misstatements in the Other Information beyond such material inconsistencies.

If, based on the work we have performed, we conclude that there is a material misstatement in the Other Information, we are required to report that fact.

Regarding the Other Information, there are no matters that we are required to report.

*Responsibilities of Management and the Audit and Supervisory Committee for the Financial Statements, etc.*

Management is responsible for the preparation and fair presentation of the Financial Statements, etc. in accordance with accounting principles generally accepted in Japan. This includes the development and operation of such internal control as management determines is necessary to enable the preparation and fair presentation of Financial Statements, etc. that are free from material misstatement, whether due to fraud or error.

In preparing the Financial Statements, etc., management is responsible for assessing whether it is appropriate to prepare the Financial Statements, etc. based on the going concern assumption and for disclosing matters related to going concern if such disclosure is necessary in accordance with accounting principles generally accepted in Japan.

The Audit and Supervisory Committee is responsible for overseeing the Directors' execution of their duties in the establishment and operation of the financial reporting process.

*Auditor's Responsibilities for the Audit of the Financial Statements, etc.*

The responsibilities of the auditor are to obtain reasonable assurance about whether the Financial Statements, etc. as a whole are free from material misstatement, whether due to fraud or error, based on the audit performed by the auditor, and to express an opinion on the Financial Statements, etc. from an independent standpoint in the audit report. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these Financial Statements, etc.

The auditor conducts the audit in accordance with auditing standards generally accepted in Japan, exercising professional judgment and maintaining professional skepticism throughout the audit process to perform the following:

&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement, whether due to fraud or error. Design and perform
audit procedures responsive to those risks of material misstatement. The selection and application of audit procedures are at the auditor's
discretion. Furthermore, obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

&nbsp;&nbsp;&nbsp;&nbsp;• The purpose of the audit of the Financial Statements, etc. is not to express an opinion on the effectiveness
of internal control. However, in making risk assessments, the auditor considers internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies adopted by management and the application thereof,
as well as the reasonableness of accounting estimates made by management and the adequacy of the related disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;• The auditor concludes whether it is appropriate for management to prepare the Financial Statements, etc.
on a going concern basis, and whether, based on the audit evidence obtained, a material uncertainty exists related to events or conditions
that may cast significant doubt on the entity's ability to continue as a going concern. If the auditor concludes that a material
uncertainty exists, they are required to draw attention in the auditor's report to the related disclosures in the Financial Statements,
etc. Or, if such disclosures are inadequate, to express a qualified opinion on the Financial Statements, etc. While the auditor's
conclusions are based on the audit evidence obtained up to the date of the auditor's report, future events or conditions may cause
an entity to cease to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;• The auditor evaluates whether the presentation and disclosures of the Financial Statements, etc. are in
accordance with generally accepted accounting principles in Japan. Furthermore, the auditor evaluates the overall presentation, structure,
and content of the Financial Statements, etc. (including the disclosures) and whether the Financial Statements, etc. represent the underlying
transactions and accounting events in a manner that achieves fair presentation.

The auditor will report to the Audit & Supervisory Committee regarding the planned scope and timing of the audit, significant findings identified during the audit process including material deficiencies in internal control, and other matters required by auditing standards.

The auditor will report to the Audit & Supervisory Committee that they have complied with the relevant provisions of professional ethics regarding independence in Japan. Furthermore, the auditor will report all matters that may reasonably be thought to bear on the auditor's independence, as well as the details of any actions taken to eliminate inhibiting factors or safeguards applied to reduce such factors to an acceptable level.

*Interests*

There are no interests between the Company and the Audit Firm or its engagement partners that are required to be disclosed under the provisions of the Certified Public Accountants Act.

**Audit Report of the Audit & Supervisory Committee**

**Audit Report**

The Audit & Supervisory Committee has audited the performance of duties by the Directors during the 2025 fiscal year, covering the period from April 1, 2025, to March 31, 2026. We hereby report the methods and results of that audit as follows.

&nbsp;&nbsp;&nbsp;&nbsp;1. Audit Method and Details

Regarding both the contents of the Board of Directors' resolutions regarding the matters listed in Article 399-13, Paragraph 1, Item 1, (b) and (c) of the Companies Act and the internal control system established based on those resolutions, the Audit and Supervisory Committee received regular reports from Directors and employees, etc., concerning the status of their establishment and operation, requested explanations and expressed opinions as necessary, and conducted the audit by the following methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In accordance with the audit policies and division of duties established by the Audit & Supervisory
Committee, and in collaboration with the Company's internal control department, we attended important meetings and received reports
from Directors and employees, etc., regarding the performance of their duties, requested explanations as necessary, inspected important
approval documents, etc., and investigated the status of operations and assets at the head office and major business locations. Furthermore,
regarding subsidiaries, we sought to facilitate communication and exchange information with the directors, corporate auditors, and other
relevant parties of said subsidiaries, and received business reports from subsidiaries as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) We monitored and verified whether the Accounting Auditor maintained an independent standing and performed
appropriate audits. Additionally, we received reports from the Accounting Auditor regarding the status of the performance of their duties
and requested explanations as necessary. We also received a report from the accounting auditor stating that "systems for ensuring
proper execution of duties" (listed in each item of Article 131 of the Regulation on Corporate Accounting) have been established
in accordance with the "Quality Control Standards for Audits" (Business Accounting Council), and asked the accounting auditor
for explanations as necessary.

Based on the methods described above, we have examined the Business Report and its Supplementary Schedules, the Financial Statements (Balance Sheet, Statement of Income, Statements of Changes in Equity, and Notes to Non-Consolidated Financial Statements) and their Supplementary Schedules, as well as the Consolidated Financial Statements (Consolidated Balance Sheet, Consolidated Statement of Income, Consolidated Statements of Changes in Equity, and Notes to Consolidated Financial Statements) for the fiscal year under review.

&nbsp;&nbsp;&nbsp;&nbsp;2. Audit Results

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Audit Results of Business Report and Others

1) The Audit & Supervisory Board acknowledges that the business report and the related supplementary schedules fairly present the Company's conditions in accordance with laws and regulations and the Articles of Incorporation.

2) With regard to the performance of duties by Directors, the Audit & Supervisory Board finds no significant evidence of wrongful acts, nor violations of laws and regulations, or the Articles of Incorporation.

3) The Audit & Supervisory Board acknowledges that the content of the resolution by the Board of Directors concerning the internal control system is appropriate. Also, statements in the Business Report and execution of duties by Directors regarding the relevant internal control system have nothing to be pointed out.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Audit Results of the Non-consolidated Financial Statements and the Related Supplementary Schedules

We acknowledge that the audit methods and results of Nihombashi Corporation, Incorporated Accounting Firm, are appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Audit Results of Consolidated Financial Statements

We acknowledge that the audit methods and results of Nihombashi Corporation, Incorporated Accounting Firm, are appropriate.

May 19, 2026

Eagle Industry Co., Ltd. Audit & Supervisory Committee

Standing Audit & Supervisory Committee member

Yasumitsu Iba [seal]

Audit & Supervisory Committee member

Katsuhiko Shono [seal]

Audit & Supervisory Committee member

Masako Sakaguchi [seal]

Audit & Supervisory Committee member

Takashi Koike [seal]