# EDGAR Filing Document

**Accession Number:** 0002094980
**File Stem:** 0001140361-26-000609
**Filing Date:** 2026-1
**Character Count:** 372268
**Document Hash:** e270f5f5884fd50501f3c1845df1cfb9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-26-000609.hdr.sgml**: 20260108

**ACCESSION NUMBER**: 0001140361-26-000609

**CONFORMED SUBMISSION TYPE**: CB

**PUBLIC DOCUMENT COUNT**: 8

**FILED AS OF DATE**: 20260108

**DATE AS OF CHANGE**: 20260108

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NISSEI PLASTIC INDUSTRIAL CO., LTD.
- **CENTRAL INDEX KEY:** 0002094980

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

**FILING VALUES:**
- **FORM TYPE:** CB
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 005-95353
- **FILM NUMBER:** 26517308

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 2110 MINAMIJO
- **STREET 2:** SAKAKI-MACHI
- **CITY:** HANISHINA-GUN
- **NON US STATE TERRITORY:** NAGANO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 389-0693
- **BUSINESS PHONE:** 81-268-82-3000

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 2110 MINAMIJO
- **STREET 2:** SAKAKI-MACHI
- **CITY:** HANISHINA-GUN
- **NON US STATE TERRITORY:** NAGANO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 389-0693
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TOYO INNOVEX Co., Ltd.
- **CENTRAL INDEX KEY:** 0002094223

**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:** 523-1 FUKUSATO
- **STREET 2:** FUTAMI-CHO
- **CITY:** AKASHI CITY
- **NON US STATE TERRITORY:** HYOGO PREFECTURE
- **PROVINCE COUNTRY:** M0
- **ZIP:** 00000
- **BUSINESS PHONE:** 81 78 942 2345

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 523-1 FUKUSATO
- **STREET 2:** FUTAMI-CHO
- **CITY:** AKASHI CITY
- **NON US STATE TERRITORY:** HYOGO PREFECTURE
- **PROVINCE COUNTRY:** M0
- **ZIP:** 00000

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#### 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

Please place an X in the box(es) to designate the appropriate rule provision(s) relied upon to file this Form:

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| | |
|:---|:---|
| 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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| |
|:---|
| **TOYO INOBEKKUSU KABUSHIKI KAISHA** |
| (Name of Subject Company) |
| **TOYO INNOVEX CO., Ltd.** |
| (Translation of Subject Company's Name into English (if applicable)) |
| **Japan** |
| (Jurisdiction of Subject Company's Incorporation or Organization) |
| **TOYO INNOVEX CO., Ltd.**<br> **NISSEI PLASTIC INDUSTRIAL CO., LTD.** |
| (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>**TOYO INNOVEX CO., Ltd.<br> Attn: Yoshiaki Tabata<br> 523-1 Aza Nishinoyama**<br> **Fukusato, Futami-cho, Akashi City**<br> **Hyogo Prefecture 674-0091**<br> **Japan**<br> **+81 78 942 2345** |
| (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) |
| **N/A** |
| (Date Tender Offer/Rights Offering Commenced) |

---

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#### PART I - INFORMATION SENT TO SECURITY HOLDERS
**Item 1.** **Home Jurisdiction Documents**<br>

#### Exhibit<br> Number
[99.1](ef20062245_ex99-1.htm) Notice of the Extraordinary General Meeting of Shareholders of TOYO INNOVEX Co., Ltd. (English translation)

[99.2](ef20062245_ex99-2.htm) Extraordinary General Meeting of Shareholders Reference Documents for the General Meeting of Shareholders – Supplementary Volume (English translation)

**Item 2.** **Informational Legends**<br>

The required legend is prominently included in the document(s) 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
NISSEI PLASTIC INDUSTRIAL CO., LTD. submitted to the Securities and Exchange Commission a written irrevocable consent and power of attorney on Form F-X dated November 17, 2025.

TOYO INNOVEX Co, Ltd. submitted to the Securities and Exchange Commission a written irrevocable consent and power of attorney on Form F-X dated November 17, 2025.

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#### 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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| | |
|:---|:---|
|  | **NISSEI PLASTIC INDUSTRIAL CO., LTD.**<br>/s/ Akihiko Imai&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
|  | Name: Akihiko Imai |
|  | Title: Managing Director |
| Date: January 8, 2026 |  |

---

---

| | |
|:---|:---|
|  | **TOYO INNOVEX Co., Ltd.**<br>/s/ Yoshiaki Tabata&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
|  | Name: Yoshiaki Tabata |
|  | Title: President and CEO |
| Date: January 8, 2026 |  |

---

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## Exhibit 99.1

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#### Exhibit 99.1<br>

#### <br>
The business combination described in this document involves securities of Japanese companies. The business combination 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.

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 issuers are located in Japan and some or all of their 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 business combination, such as in the open market or through privately negotiated purchases.

This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. TOYO INNOVEX CO., LTD. and NISSEI PLASTIC INDUSTRIAL CO., LTD. assume no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

(Securities Code: 6210)

January 14, 2026

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| | | |
|:---|:---|:---|
| **Notice of the Extraordinary General Meeting of Shareholders** | **---------** | p. 1 |
| **Reference Documents for the General Meeting of Shareholders** | **---------** | p. 4 |

---

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| | |
|:---|:---|
| To: Shareholders with Voting Rights |  |
|  | Yoshiaki Tabata |
|  | President and Director |
|  | **TOYO INNOVEX Co., Ltd.** |
|  | 523-1 Aza Nishinoyama, Fukusato, |
|  | Futami-cho, Akashi-shi, Hyogo, Japan |

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#### NOTICE OF THE EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS

We are pleased to announce the Extraordinary General Meeting of Shareholders of TOYO INNOVEX Co., Ltd. (the "**Company**"). The meeting will be held for the purposes as described below.

When convening this general meeting of shareholders, the Company takes measures for providing information that constitutes the content of reference documents for the general meeting of shareholders, etc. (matters for which measures for providing information in electronic format are to be taken) in electronic format, and posts this information as "Notice of the Extraordinary General Meeting of Shareholders" on the Company's website. Please access the Company's website by using the internet address shown below to review the information.

The Company's website:

https://www.toyo-inovx.com/ir/meeting/ (in Japanese)

https://www.toyo-invx.com/english/ir/meeting/ (in English)

Regarding matters subject to measures for electronic provision, the Company also posts this information on website of the Tokyo Stock Exchange (TSE). Please access the following TSE website.

TSE website (Listed Company Search):

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

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(Access the TSE website by using the internet address shown above, enter "TOYO INNOVEX" in "Issue name (company name)" or the Company's securities code "6210" in "Code," and click "Search." Then, click "Basic information" and select "Documents for public inspection/PR information." Under "Filed information available for public inspection," click "Click here for access" under "[Notice of General Shareholders Meeting/informational Materials for a General Shareholders Meeting].")

If you are unable to attend the meeting, you may exercise your voting rights in either of the manners described below in lieu of attending the meeting. Please review the Reference Documents for the General Meeting of Shareholders and exercise your voting rights by 4:45 p.m. on Thursday, January 29, 2026, Japan time.

[If exercising voting rights via the Internet, etc.]

Please read the "Guideline for exercising voting rights via the Internet, etc." (in Japanese only), access the website for exercising voting rights designated by the Company (https://evote.tr.mufg.jp/ (in Japanese)), and input your approval or disapproval of each of the proposals by the deadline mentioned above.

[If exercising voting rights in writing (by postal mail)]

Please indicate your approval or disapproval of each of the proposals on the Voting Rights Exercise Form, and return it so that it arrives by the deadline mentioned above.

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| | | |
|:---|:---|:---|
| 1. | **Date and Time:** | Friday, January 30, 2026 at 10:00 a.m. Japan time |
| 2. | **Venue:** | Banquet Hall "Shofuku" on the 3rd floor of Hotel Castle Plaza |
|  |  | 2-2 Matsunouchi, Akashi-shi, Hyogo, Japan |
| 3. | **Meeting Agenda:** | **Meeting Agenda:** |
|  | **Matters to be Resolved:** | **Matters to be Resolved:** |
|  | &nbsp;&nbsp;&nbsp;&nbsp; **Proposal 1:** | Matters regarding Approval of the Plan for Share Transfer with NISSEI PLASTIC INDUSTRIAL CO., LTD. |
|  | &nbsp;&nbsp;&nbsp;&nbsp; **Proposal 2:** | Partial Amendments to the Articles of Incorporation |
|  | &nbsp;&nbsp;&nbsp;&nbsp; **Proposal 3:** | Matters regarding Partial Amendments to the System of Share Remuneration for Directors (Excluding Outside Directors) with Restriction of Transfer |

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&nbsp;&nbsp;&nbsp;&nbsp; **No postal mailing of the Resolution Notice**<br> Please be advised that the result of the resolutions passed at this general meeting will be published on the Company's website, in lieu of sending a Resolution Notice in writing, in light of conserving resources considering the global environment and the like.<br>

～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～

- If you are attending the meeting on the day indicated above, please submit the Voting Rights Exercise Form at the reception. To conserve resources, please bring this notice with you.

- If you are attending the meeting by proxy, please have the proxy present your Voting Rights Exercise Form along with written proof of his/her right of proxy at the reception. The proxy must be another shareholder of the Company having voting rights.

In accordance with the Act Partially Amending the Companies Act (Act No. 70 of 2019), the matters subject to measures for electronic provision shall be in principle confirmed by accessing them on the respective websites described above, and paper-based documents of the informational materials shall be sent only to the shareholders who have requested the delivery of paper-based documents by the record date for the general meeting of shareholders; however, for this Extraordinary General Meeting of Shareholders, paper-based documents containing the matters subject to measures for electronic provision are delivered to shareholders without exception regardless of whether or not a request for the delivery of paper-based documents is made.<br>

Please note that, among matters subject to measures for electronic provision, the following matter is not contained in this Notice pursuant to laws, regulations, and provisions of Article 15 of the Articles of Incorporation of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ The details of the financial statements, etc. of NISSEI PLASTIC INDUSTRIAL CO., LTD., pertaining to its final business year.

- In the event of any corrections to matters subject to measures for electronic provision, a notification to that effect, and the corrected and pre-corrected versions of these matters will be made available on the Company's aforementioned website and the TSE website.

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#### Reference Documents for the General Meeting of Shareholders

#### Proposals and References

**Proposal 1:** Matters regarding Approval of the Plan for Share Transfer with NISSEI PLASTIC INDUSTRIAL CO., LTD.

The Company and NISSEI PLASTIC INDUSTRIAL CO., LTD. ("**Nissei**," and collectively, both companies are referred to as the "**Companies**") have reached an agreement, as publicized through our announcement dated November 14, 2025 entitled "Announcement Concerning Execution of the Business Integration Agreement on Business Integration Through Establishing a Joint Holding Company (Share Transfer) Between NISSEI PLASTIC INDUSTRIAL CO., LTD. and TOYO INNOVEX CO., LTD.," regarding the execution of a business integration (the "**Business Integration**") by establishing GMS Group Co., Ltd. (the "**Joint Holding Company**") on April 1, 2026 (the "**Effective Date**") as the wholly-owning parent company of the Companies through a joint share transfer (the "**Share Transfer**"), and, pursuant to the resolutions passed at the respective boards of directors of the Companies held on November 14, 2025, the Companies have entered into the Business Integration Agreement based on the principle of equality, and have jointly prepared the written plan for the Share Transfer (the "**Share Transfer Plan**").

The implementations of the Business Integration and Share Transfer are subject to the respective approvals at the general meetings of shareholders of the Companies, and any other permits and approvals from relevant authorities necessary to conduct the Business Integration and Share Transfer and other relevant conditions.

In this regard, we hereby request the approval of the Share Transfer Plan. The reasons for conducting the Share Transfer, the outline of the Share Transfer Plan, and other matters concerning this Proposal are as detailed below.

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Reasons for Conducting Share Transfer** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Status of Business Development of the Companies

Since its founding in 1925, the Company has continuously manufactured and sold industrial machinery to meet evolving market needs. Marking its 100th anniversary, the Company adopted the purpose of "Enriching the future and bringing smiles to the world through Molding Innovation and Customers' Value Up." Currently, in addition to injection molding machines, the Company manufactures and sells die casting machines that cast materials such as aluminum. The Company is a specialized manufacturer of molding-related machinery. For the fiscal year ending March 2025, sales related to injection molding machines accounted for 73.2%, while those related to die casting machines accounted for 26.8%. Overseas sales constituted 69.5% of total sales, reflecting the Company's global business expansion. The Company maintains manufacturing bases in two countries: Japan and China. In April 2024, the Company announced its Medium-Term Management Plan 2026 (FY2024-FY2026). Under the vision "Making Molding Easier!," the Company is committed to "Improving Sustainable Earning Power," "Creating Molding Innovation and Evolving Customers' Value Up," and "further strengthening of the management foundation" as its fundamental management policies, striving for medium- to long-term corporate value expansion.

Meanwhile, since its founding in 1947, Nissei has pursued the manufacture and sale of injection molding machines, which mold plastics using heat and pressure from resin raw materials, under its corporate philosophy of "As a global company, Nissei will enrich communities through plastics." Nissei is a specialized manufacturer focused solely on products related to injection molding machines. Its overseas sales accounted for 66.8% for the fiscal year ending March 2025, reflecting its global business expansion. Nissei maintains manufacturing bases in five countries: Japan, China, Thailand, the United States, and Italy, with a new factory scheduled for construction in India. Nissei's Fifth Medium-Term Management Plan (FY2025-FY2027), announced in June 2025, sets the goal of "creating a platform that connects our group and customers through DX" in three years. Nissei is striving to realize this vision by implementing management policies focused on: "Strengthening global management," "Expanding human capital," "Further evolving products using DX technologies," "Pursuing proactive sales initiatives," "Strengthening production systems," and "Strengthening risk management systems."

<br> (2) Background to the Business Integration

As described above, the Companies are specialized manufacturers of molding-related machinery.

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However, the environment surrounding the Companies is becoming increasingly uncertain and challenging. To continue earning customers' support, innovation has become more important than ever. Specifically, the Companies face the following challenges:

- Stagnating demand and soaring costs due to heightened geopolitical risks

- Intensified global competition driven by the rise of Asian companies

- Shortage of skilled workers, as well as increasing demand for innovative products contributing to environmental conservation

- The rise of emerging markets such as India and the emergence of new growth markets such as EV/PHV

- The need to strengthen responsiveness in customer support system

Through extensive discussions, the Companies reached a shared understanding that relying solely on traditional approaches imposes limits on growth and long-term viability within the current challenging business environment. Furthermore, they determined that this Business Integration would enable initiatives that could not be achieved individually. Accordingly, the Business Integration is expected to maximize the value of the Companies, benefiting stakeholders including customers, employees, and shareholders.

<br> (3) Reasons for Identifying Each Other as the Best Partner

The Companies believe that their fundamental philosophies and corporate cultures are highly aligned, as both are specialized manufacturers sharing the vision of contributing to society through "molding." The shared ambition to become a top-tier company in Japan with a significant global presence also served as a driving force to pursue the Business Integration.

Furthermore, the Companies' product portfolios for injection molding machines are complementary in many aspects. Generally, companies in the same industry that compete with each other cannot avoid cannibalization and find it difficult to achieve synergy effects. However, in the case of the Companies' combination, while some overlap requires consolidation, they are complementary in many areas, and we expect synergies in sales. The table below organizes the Companies' injection molding machines by size (clamping force) and drive type. Note that Nissei does not manufacture or sell die casting machines, which the Company manufactures, creating a fully complementary relationship in this segment.

Table of the Companies' Injection Molding Machines by Size (Clamping Force) and Drive Type

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Small | Medium | Large | Super Large |
|  | Up to 500t | 501t–1,000t | 1,001t–2,000t | 2,001t and above |
| Electric | N /T | T | T |  |
| Hybrid | N | N | N | N |
| Hydraulic | N | N | N |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) T = the Company, N = Nissei.

Furthermore, as described below, the Companies have confirmed the potential for synergies and determined that the combination of the Companies would contribute to maximizing corporate value.

<br> (4) Vision

The Companies aim to become a "global leading group contributing to the creation of new customer value through molding innovation." This vision embodies the diverse aspirations of the Companies. For example, the Companies aim to provide not only molding machines but also platforms and solutions with a customer-centric approach. Furthermore, the Companies aspire to form a group that serves as a catalyst for industrial reorganization and plays a central role globally. The "GMS" in the Joint Holding Company's name stands for "Global Molding Solutions," embodying these aspirations. The Companies also aim to build a group where employees can work with vitality and take pride in belonging to a global industry-leading group.

<br> (5) Anticipated Synergies

Through the Business Integration, the Companies anticipate the following synergies, which are organized by value chain segment.

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<br> (i) Design Engineering & Development

<br> - Improved competitiveness through in-house production and integration of control system technologies

<br> - Cost reduction through sharing of mechanical components

<br> - Accelerated development speed and innovation through sharing the technical know-how

<br> - Resource optimization through model consolidation

<br> - Improved environmental capability, including compliance with European recycling standards (DfR)

<br> (ii) Procurement

<br> - Realized scale advantages through joint/centralized purchasing

<br> - Expansion and strengthening of overseas supplier base

<br> - Streamlined procurement management operations

<br> (iii) Manufacturing

<br> - Improved production efficiency through the integration and mutual utilization of manufacturing bases

<br> - Shortened delivery times and improved reliability through inspection process automation

<br> (iv) Sales

<br> - Strengthened marketing functions

<br> - Increased Sales through cross-selling

<br> - Expanded product lineup

<br> (v) Service

<br> - Strengthened service infrastructure through mutual utilization of service locations and personnel

<br> - Reduced inventory through standardization of service parts

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

Outline of the Share Transfer Plan is as described in "THE SHARE TRANSFER PLAN (Copy)" set forth below.

THE SHARE TRANSFER PLAN (Copy)

NISSEI PLASTIC INDUSTRIAL CO., LTD. ("Nissei") and TOYO INNOVEX Co., Ltd. ("TOYO") having agreed to conduct a share transfer by means of a joint share transfer, hereby jointly prepare this share transfer plan (the "Share Transfer Plan") as follows.

#### Article 1 (Share Transfer)
In accordance with the provisions of this Share Transfer Plan, on the Effective Date (as defined in Article 8; the same shall apply hereinafter), Nissei and TOYO shall jointly effect a share transfer (the "Share Transfer"), whereby all issued shares of Nissei and TOYO shall have their ownership transferred to a wholly-owning parent company newly incorporated through the Share Transfer (the "Holding Company"), and as a result, Nissei and TOYO shall each become wholly-owned subsidiaries of the Holding Company.

**Article 2 (Purpose, Trade Name, Location of Head Office, Total Number of Authorized Shares and Other Matters to Be Provided in the Articles of Incorporation of the Holding Company)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The purpose, trade name, location of head office, and total number of authorized shares of the Holding Company shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Purpose

The purpose of the Holding Company shall be as provided in Article 2 of the Articles of Incorporation set forth in *Exhibit 1*.

<br> (2) Trade Name

The trade name of the Holding Company shall be GMS Group Kabushiki Kaisha, and in English shall be expressed as GMS Group Co., Ltd.

<br> (3) Location of Head Office

The head office of the Holding Company shall be located in Chiyoda-ku, Tokyo, and its address shall be 8th Floor, Mitsubishi Building, 2-5-2 Marunouchi, Chiyoda-ku, Tokyo.

<sup>(4)</sup> Total Number of Authorized Shars<br>

The total number of authorized shares of the Holding Company shall be 230,000,000 shares.

&nbsp;&nbsp;&nbsp;&nbsp;2. In addition to the matters set forth in the preceding paragraph, the other matters to be provided in the Articles of Incorporation of the Holding Company shall be as described in the Articles of Incorporation attached hereto as *Exhibit 1*.

#### Article 3 (Names of Initial Directors and Initial Accounting Auditor of the Holding Company)
&nbsp;&nbsp;&nbsp;&nbsp;1. The names of the initial directors of the Holding Company (excluding the initial directors who will serve as Audit and Supervisory Committee Members) shall be as follows:

Director (Scheduled to be appointed as Chairman and Chief Executive Officer): Hozumi Yoda

Director (Scheduled to be appointed as President and Chief Operating Officer): Yoshiaki Tabata

Director: Akihiko Imai

Director: Masato Sakai

&nbsp;&nbsp;&nbsp;&nbsp;2. The names of the initial directors who will serve as Audit and Supervisory Committee Members of the Holding Company shall be as follows:

Audit and Supervisory Committee Member: Steven Blues Moore (Outside Director)

Audit and Supervisory Committee Member: Haruko Nishida (Outside Director)

Audit and Supervisory Committee Member: Amane Sawa (Outside Director)

Audit and Supervisory Committee Member: Yasuko Yokosawa (Outside Director)

&nbsp;&nbsp;&nbsp;&nbsp;3. The name of the initial accounting auditor of the Holding Company shall be:

Grant Thornton Taiyo LLC

#### Article 4 (Shares to Be Delivered Upon the Share Transfer and Allotment Thereof)
&nbsp;&nbsp;&nbsp;&nbsp;1. Upon the Share Transfer, the Holding Company shall deliver to the shareholders of Nissei and TOYO as of the time immediately prior to the acquisition by the Holding Company of all issued shares of Nissei and TOYO (the "Reference Time"),
 shares of common shares of the Holding Company (the "Delivered Shares") corresponding to the total of:

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<br> (i) the number of shares of common share of Nissei issued as of the Reference Time multiplied by 2, and

<br> (ii) the number of shares of common share of TOYO issued as of the Reference Time multiplied by 1.51.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Holding Company shall allot the Delivered Shares to the shareholders of Nissei and TOYO as of the Reference Time in accordance with the following share transfer ratio (the "Share Transfer Ratio"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To shareholders of Nissei, for each share of common stock of Nissei held, 2 shares of common stock of the Holding Company shall be allotted.

<br> (2) To shareholders of TOYO, for each share of common stock of TOYO held, 1.51 shares of common stock of the Holding Company shall be allotted.

&nbsp;&nbsp;&nbsp;&nbsp;3. In the event that fractions of less than one full share arise as a result of the calculations in the preceding paragraphs, such fractions shall be handled in accordance with Article 234 of the Companies Act and other applicable laws and
 regulations.

#### Article 5 (Share Options to Be Delivered and Allotment Thereof in Connection with the Share Transfer)
&nbsp;&nbsp;&nbsp;&nbsp;1. Delivery of Share Options

Upon the Share Transfer, the Holding Company shall deliver to each holder of the share options issued by Nissei and listed in Column (1) of items (i) through (xv) of the table below as of the Reference Time, in replacement of the share options held by such holders, the same number of share options of the Holding Company as twice the total number of the corresponding share options of Nissei held by such holders as of the Reference Time, as listed in Column (2) of the table below.

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| | | | | |
|:---|:---|:---|:---|:---|
| Items | Column (1) | Column (1) | Column (2) | Column (2) |
|  | Title | Details | Title | Details |
| (i) | Series 1 Share Options | Exhibit 2(i) | Series 1 Share Options | Exhibit 3(i) |
| (ii) | Series 2 Share Options | Exhibit 2(ii) | Series 2 Share Options | Exhibit 3(ii) |
| (iii) | Series 3 Share Options | Exhibit 2(iii) | Series 3 Share Options | Exhibit 3(iii) |
| (iv) | Series 4 Share Options | Exhibit 2(iv) | Series 4 Share Options | Exhibit 3(iv) |
| (v) | Series 5 Share Options | Exhibit 2(v) | Series 5 Share Options | Exhibit 3(v) |
| (vi) | Series 6 Share Options | Exhibit 2(vi) | Series 6 Share Options | Exhibit 3(vi) |
| (vii) | Series 7 Share Options | Exhibit 2(vii) | Series 7 Share Options | Exhibit 3(vii) |
| (viii) | Series 8 Share Options | Exhibit 2(viii) | Series 8 Share Options | Exhibit 3(viii) |
| (ix) | Series 9 Share Options | Exhibit 2(ix) | Series 9 Share Options | Exhibit 3(ix) |
| (x) | Series 10 Share Options | Exhibit 2(x) | Series 10 Share Options | Exhibit 3(x) |
| (xi) | Series 11 Share Options | Exhibit 2(xi) | Series 11 Share Options | Exhibit 3(xi) |
| (xii) | Series 12 Share Options | Exhibit 2(xii) | Series 12 Share Options | Exhibit 3(xii) |
| (xiii) | Series 13 Share Options | Exhibit 2(xiii) | Series 13 Share Options | Exhibit 3(xiii) |
| (xiv) | Series 14 Share Options | Exhibit 2(xiv) | Series 14 Share Options | Exhibit 3(xiv) |
| (xv) | Series 15 Share Options | Exhibit 2(xv) | Series 15 Share Options | Exhibit 3(xv) |

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&nbsp;&nbsp;&nbsp;&nbsp;2. Allocation of Share Options

Upon the Share Transfer, the Holding Company shall, to each holder of the share options issued by Nissei as of the Record Time, allot two (2) share options of the Holding Company listed in Column (2) for each share option listed in Column (1) under items (i) through (xv) in the table in the preceding paragraph held by such holder.

#### Article 6 (Amount of Capital and Reserves of the Holding Company)
The amounts of capital and reserves of the Holding Company as of the Effective Date shall be as follows:

(1) Amount of capital: JPY 300 million

(2) Amount of capital reserve: JPY 75 million

(3) Amount of earned surplus reserve: JPY 0

(4) Amount of capital surplus: The amount obtained by deducting the total amount set forth in items (1) and (2) above from the amount of changes in shareholders' equity as prescribed in Article 52, Paragraph 1 of the Regulation on Corporate
 Accounting.

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#### Article 7 (Dividends of Surplus, etc.)
&nbsp;&nbsp;&nbsp;&nbsp;1. Nissei may, with March 31, 2026 as the record date, pay dividends of surplus up to JPY 21 per share of its common share.

&nbsp;&nbsp;&nbsp;&nbsp;2. TOYO may, with March 31, 2026 as the record date, pay dividends of surplus up to JPY 17.5 per share of its common share.

&nbsp;&nbsp;&nbsp;&nbsp;3. Except as provided in the preceding two paragraphs, neither Nissei nor TOYO shall, during the period from the date of the execution of this Share Transfer Plan until the Effective Date, resolve to pay dividends of surplus with a record
 date prior to the Effective Date.

#### Article 8 (Effective Date of Establishment of the Holding Company)
The date on which the incorporation of the Holding Company shall be registered (the "Effective Date") shall be April 1, 2026; provided, however, that if deemed necessary due to the progress of the procedures for the Share Transfer or other reasons, Nissei and TOYO may, upon mutual consultation and agreement, change such date.

#### Article 9 (Shareholders' Meetings to Approve the Share Transfer Plan)
&nbsp;&nbsp;&nbsp;&nbsp;1. Nissei and TOYO shall each convene an extraordinary general meeting of shareholders on January 30, 2026 to seek approval for this Share Transfer Plan and other matters necessary for the Share Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;2. If deemed necessary due to the progress of the procedures for the Share Transfer or other reasons, Nissei and TOYO may, upon mutual consultation and agreement, change the dates of the shareholders' meetings referred to in the preceding
 paragraph.

#### Article 10 (Listing of Shares and Shareholder Registry Administrator)
&nbsp;&nbsp;&nbsp;&nbsp;1. Nissei and TOYO shall cooperate and consult with each another to take necessary procedures so that the shares of common share of the Holding Company will be listed on the Tokyo Stock Exchange Prime Market as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;2. The shareholder registry administrator of the Holding Company at the time of its establishment shall be Mitsubishi UFJ Trust and Banking Corporation.

#### Article 11 (Cancellation of Treasury Shares)
Nissei and TOYO shall, by the Effective Date, cancel such number of treasury shares held by each of them (including treasury shares acquired in response to requests for share purchase made by dissenting shareholders in connection with the Share Transfer) as can be practically canceled.

#### Article 12 (Business Operations, etc.)
&nbsp;&nbsp;&nbsp;&nbsp;1. During the period from the execution of this Share Transfer Plan until the Effective Date, Nissei and TOYO shall each manage and operate their businesses and assets with the due care of a prudent manager, and shall ensure that their
 respective subsidiaries (as defined in Article 8, Paragraph 3 of the Regulation on Terminology, Forms, and Preparation Methods of Financial Statements) do the same.

&nbsp;&nbsp;&nbsp;&nbsp;2. If either Nissei or TOYO becomes aware of any circumstance or event that is likely to materially affect the execution of the Share Transfer or the reasonableness of the Share Transfer Ratio during the period from the execution of this
 Share Transfer Plan until the Effective Date, they shall promptly notify the other party in writing and consult in good faith regarding its handling.

#### Article 13 (Effectiveness of this Share Transfer Plan)
This Share Transfer Plan shall cease to be effective if approval for this Share Transfer Plan and other matters necessary for the Share Transfer is not obtained at either of the shareholders' meetings of Nissei or TOYO prescribed in Article 9, or if the Share Transfer is discontinued pursuant to the following Article.

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#### Article 14 (Amendment of Conditions and Discontinuation of Share Transfer)
If any of the following events occurs between the date of execution of this Share Transfer Plan and the day before the Effective Date, Nissei and TOYO may, upon mutual agreement, amend the conditions of the Share Transfer or the contents of this Share Transfer Plan, or discontinue the Share Transfer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A material change arises in the financial or operational condition of Nissei or TOYO, or a factor that is likely to materially affects such conditions becomes apparent.

<br> (2) A material event arises or becomes apparent that hinders the execution of the Share Transfer.

<br> (3) The achievement of the purpose of the Share Transfer becomes significantly difficult.

#### Article 15 (Matters for Consultation)
In addition to the matters provided for in this Share Transfer Plan, any matters not provided herein and any other matters necessary for the Share Transfer shall be determined in accordance with the purpose and intent of this Share Transfer Plan, upon good-faith consultation and mutual consultation and agreement between Nissei and TOYO in accordance with the intent of this Share Transfer Plan.

**IN WITNESS WHEREOF**, this Share Transfer Plan is executed in two (2) originals, and each of Nissei and TOYO shall, after affixing its seal, retain one (1) original.

14 November, 2025

Nissei：2110 Nanjo, Sakaki-machi, Hanishina-gun, Nagano

NISSEI PLASTIC INDUSTRIAL CO., LTD.

Representative Director and President, Hozumi Yoda

TOYO：523-1 Nishinoyama, Fukusato, Futami-cho, Akashi-shi, Hyogo

TOYO INNOVEX Co., Ltd.

Representative Director and President, Yoshiaki Tabata

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<u>Exhibit 1</u>

#### ARTICLES OF INCORPORATION

#### CHAPTER I GENERAL PROVISIONS

Article 1. (Trade Name)

The name of the Company shall be GMS Group Kabushiki Kaisha, and in English, shall be GMS Group Co., Ltd.

Article 2. (Purpose)

&nbsp;&nbsp;&nbsp;&nbsp;1. The purpose of the Company is to control or manage the business activities of companies engaged in the following businesses, or foreign companies engaged in equivalent businesses, by owning shares or equity interests in such companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Manufacture, sale, design, and repair of industrial machinery, other general machinery and equipment, and related parts, devices, facilities, and systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Manufacture and sale of molds and mold-related machinery, devices, and systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Manufacture and sale of synthetic resin products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Manufacture, processing, and sale of metals and metal products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Manufacture and sale of wires and vehicle parts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Manufacture, processing, and sale of textile and chemical products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Other businesses relating to any of the preceding subparagraphs.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Company may engage in any and all businesses incidental or related to the foregoing items.

Article 3. (Location of Head Office)

The head office of the Company shall be located in Chiyoda-ku, Tokyo.

Article 4. (Organizations)

In addition to the General Meeting of Shareholders and Directors, the Company shall have the following organizations:

<br> (1) Board of Directors

<br> (2) Audit and Supervisory Committee

<br> (3) Accounting Auditors

Article 5. (Method of Announcing Public Notices)

Public notices of the Company shall take the form of electronic announcements; provided, however, that in the event that electronic announcements cannot be made due to accidents or other unavoidable circumstances, public notices shall be given in the Nihon Keizai Shimbun.

#### CHAPTER II SHARES

Article 6. (Total Number of Authorized Shares)

The total number of authorized shares of the Company shall be 230,000,000shares.

Article 7. (Acquisition of the Company's Own Shares)

The Company may purchase its own shares through market transactions and otherwise by resolution of the Board of Directors, in accordance with the provisions of Article 165, Paragraph (2) of the Companies Act.

Article 8. (Number of Shares Constituting One Unit)

One hundred (100) shares of the Company shall constitute one Unit.

Article 9. (Rights of Shareholders Owing Shares Constituting Less than One Unit)

Shareholders owning shares constituting less than one Unit shall not be entitled to exercise any rights except those stated below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Rights listed in each Item of Article 189, Paragraph 2 of the Companies Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Right to request the acquisition of shares subject to a call for acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Right to receive allotment of offered shares and offered share options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Right to request the Company to sell additional shares to constitute one Unit as provided in the following Article.

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Article 10. (Request for Sale of Shares by Shareholders Owing Shares Less than One Unit)

Any shareholder owning shares constituting less than one Unit may request the Company to sell such number of additional shares as is necessary to constitutes one Unit together with the shares already held by the shareholder.

Article 11. (Administrator of Shareholder Registry)

&nbsp;&nbsp;&nbsp;&nbsp;1. The Company shall appoint an Administrator of Shareholder Registry.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Administrator of Shareholder Registry and its place where its business is handled shall be selected by the Board of Directors or a Director delegated by resolution of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;3. The preparation and maintenance of the Shareholder Registry of and Share Options Registry of the Company, and all other administrative affairs relating thereto, shall be entrusted to the Administrator of Shareholder Registry and shall not
 be handled by the Company.

Article 12. (Rules of Share Handling)

The procedures and fees relating to entries or records in the Shareholder Registry or Share Options Registry, the purchase or additional sales of shares constituting less than one Unit, and all other concerning shares or share options shall be governed by the Rules of Share Handling to be determined by the Board of Directors or a Director delegated by a resolution of the Board of Directors as well as laws and these Articles of Incorporation.

#### CHAPTER III GENERAL MEETING OF SHAREHOLDERS

Article 13. (Convocation)

An Ordinary General Meeting of Shareholders of the Company shall be convened in June of every year, and an Extraordinary General Meeting of Shareholders shall be convened from time to time.

Article 14. (Record Date for Ordinary General Meeting of Shareholders)

The record date for voting rights at the Ordinary General Meeting of Shareholders of the Company shall be March 31, of each year.

Article 15. (Person to Convene a General Meeting of Shareholders and Chairman thereof)

&nbsp;&nbsp;&nbsp;&nbsp;1. Unless otherwise provided by laws and regulations, the General Meeting of Shareholders shall be convened and chaired by the Chairman and Representative Director, or the President and Representative Director according to the order of
 preference determined in advance by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;2. If case both the Chairman and Representative Director and President and Representative Director who shall serve as Chairperson pursuant to the preceding paragraph are prevented from so acting, another Director shall convene and chair the
 General Meeting of Shareholders according to the order of preference determined in advance by the Board of Directors.

Article 16. (Provision of Documents for General Meeting of Shareholders in Electronic Format, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;1. In convening a General Meeting of Shareholders, the Company shall provide information that constitutes the contents of the reference documents, etc. for the General Meeting of Shareholders in an electronic format.

&nbsp;&nbsp;&nbsp;&nbsp;2. Among the contents provided in an electronic format, the Company may omit all or part of matters prescribed by the ministerial ordinances of the Ministry of Justice from documents that will be delivered to shareholders who requested the
 delivery of such documents by the record date for voting rights.

Article 17. (Method of Resolutions)

&nbsp;&nbsp;&nbsp;&nbsp;1. Resolutions of the General Meeting of Shareholders shall be adopted by a simple majority of the votes of the shareholders present thereat unless otherwise provided by laws or these Articles of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;2. Resolutions described in Article 309, Paragraph 2 of the Companies Act shall be adopted at a meeting, when shareholders holding one-third (1/3) or more of the votes of all the shareholders of the Company who are entitled to exercise voting
 rights are present and when approved by two-thirds (2/3) or more of the votes of the shareholders present thereat.

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Article 18. (Voting by Proxy)

&nbsp;&nbsp;&nbsp;&nbsp;1. A shareholder may exercise voting rights by authorizing as proxy one other shareholder with a voting right of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;2. Such shareholder or proxy must submit to the Company a written document evidencing the power of representation at each General Meeting of Shareholders.

Article 19. (Minutes)

Minutes shall be prepared for the proceedings of the General Meeting of Shareholders. The minutes shall contain a summary of the course of the proceedings and their results, as well as other matters prescribed by laws.

#### CHAPTER IV DIRECTORS AND BOARD OF DIRECTORS

Article 20. (Number of Members)

&nbsp;&nbsp;&nbsp;&nbsp;1. The Company shall have no more than twelve (12) Directors (excluding Directors serving as Audit and Supervisory Committee Members).

&nbsp;&nbsp;&nbsp;&nbsp;2. The Company shall have no more than five (5) Directors serving as the Audit and Supervisory Committee Members.

Article 21. (Method of Election)

&nbsp;&nbsp;&nbsp;&nbsp;1. Directors shall be elected at a General Meeting of Shareholders. However, Directors serving as Audit and Supervisory Committee Members shall be elected separately from other Directors.

&nbsp;&nbsp;&nbsp;&nbsp;2. The election of Directors shall be made by a majority vote of the shareholders present at a meeting where shareholders holding one-third (1/3) or more of the voting rights of all shareholders who are entitled to exercise voting rights are
 present.

&nbsp;&nbsp;&nbsp;&nbsp;3. The election of Directors shall not be conducted by cumulative voting.

Article 22. (Term of Office)

&nbsp;&nbsp;&nbsp;&nbsp;1. The term of office of Directors (excluding Directors serving as an Audit and Supervisory Committee Members) shall expire at the end of the Ordinary General Meeting of Shareholders held with respect to the last of the fiscal years that end
 within one (1) year after they are elected.

&nbsp;&nbsp;&nbsp;&nbsp;2. The term of office of Directors serving as an Audit and Supervisory Committee Members shall expire at the end of the Ordinary General Meeting of Shareholders held with respect to the last of the fiscal years that end within two (2) years
 after they are elected.

&nbsp;&nbsp;&nbsp;&nbsp;3. The term of office of any Director (excluding Directors serving as an Audit and Supervisory Committee Members) elected as additional members or to fill a vacancy shall expire upon the expiration of the term of office of the current
 Directors (excluding Directors serving as an Audit and Supervisory Committee Members).

&nbsp;&nbsp;&nbsp;&nbsp;4. The term of office of any Director serving as an Audit and Supervisory Committee Member elected to fill a vacancy shall be the remaining term of the predecessor who served as an Audit and Supervisory Committee Member.

&nbsp;&nbsp;&nbsp;&nbsp;5. The effective period when the resolution of election substitute Directors serving as an Audit and Supervisory Committee Member appointed pursuant to Article 329, Paragraph 3 of the Companies Act shall expire at the beginning of the
 Ordinary General Meeting of Shareholders held with respect to the last of the fiscal years that end within two (2) years after they are elected.

Article 23. (Representative Directors and Executive Directors)

&nbsp;&nbsp;&nbsp;&nbsp;1. The Board of Directors shall elect Representative Directors from among Directors (excluding Directors serving as an Audit and Supervisory Committee Member) by its resolution.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Board of Directors may determine, from among Directors(excluding Directors serving as an Audit and Supervisory Committee Member), one Chairman, one President, and a certain number of Vice Presidents.

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Article 24. (Board of Directors and Person to Convene a Meeting of the Board of Directors and Chairman thereof)

&nbsp;&nbsp;&nbsp;&nbsp;1. Unless otherwise provided by laws and regulations, the Board of Directors shall be convened and chaired, by the Chairman and Representative Director or the President and Representative Director according to the order of preference
 determined in advance by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;2. If case the Chairman and President who shall serve as Chairperson pursuant to the preceding paragraph are prevented from so acting, another Director shall convene and chair the Board of Directors, according to the order of preference
 determined in advance by the Board of Directors.

Article 25. (Notice of Meeting of Board of Directors)

&nbsp;&nbsp;&nbsp;&nbsp;1. Notice of a meeting of the Board of Directors shall be sent to each Director three (3) days prior to the date of the meeting; provided, however, that such period of notice may be shortened in the event of an emergency.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Board of Directors may convene without following the convening procedures when all Directors consent.

Article 26. (Method of Resolutions at Board of Directors Meeting)

Resolutions of the Board of Director shall be adopted by a majority vote of the Directors present at a meeting where a majority of Directors who are entitled to vote are present.

Article 27. (Omission of Resolutions at Board of Directors Meeting)

A resolution of the Board of Directors shall be deemed to have been adopted when the requirements of Article 370 of the Companies Act are satisfied.

Article 28. (Delegation of Decisions on Important Business Execution)

The Company may, in accordance with Article 399-13, Paragraph (6) of the Companies Act, delegate all or part of the decisions on important business execution (excluding matters listed in each item of Paragraph (5) of the same Article) to the Directors by resolution of the Board of Directors.

Article 29. (Rules of Board of Directors)

Matters concerning the Board of Directors shall be governed by laws, these Articles of Incorporation, and the Rules of the Board of Directors established by the Board of Directors.

Article 30. (Remunerations, etc.)

The compensation, including remunerations, bonuses, and other financial benefits paid by the Company as consideration for the execution of duties by Directors ("Remunerations, etc.") shall be determined by resolution of the General Meeting of Shareholders, separately for Directors who are Audit and Supervisory Committee Members and Directors who are not.

Article 31. (Limitation of Liability of Directors)

&nbsp;&nbsp;&nbsp;&nbsp;1. The Company may, in accordance with the provisions of Article 426, Paragraph (1) of the Companies Act and by a resolution of the Board of Directors, exempt Directors (including former Directors) from their liabilities for damages arising
 under Article 423, Paragraph (1) of the Companies Act, to the extent permissible by laws.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Company may, in accordance with Article 427, Paragraph (1) of the Companies Act, execute contracts with Directors (excluding Executive Directors, etc.) to limit their liabilities for damages arising under Article 423, Paragraph (1) of
 the Companies Act; provided, however, that the maximum limit of liabilities for damages under such contracts shall be the amount prescribed by laws and regulations.

#### CHAPTER V AUDIT & SUPERVISORY COMMITTEE

Article 32. (Notice of Meeting of Audit and Supervisory Committee)

&nbsp;&nbsp;&nbsp;&nbsp;1. Notice of a meeting of the Audit and Supervisory Committee shall be sent to each Director serving as Audit and Supervisory Committee Member three (3) days prior to the date of the meeting; provided, however, that such period of notice may
 be shortened in the event of an emergency.

&nbsp;&nbsp;&nbsp;&nbsp;2. The meeting of the Audit and Supervisory Committee may convene without following the convening procedures when all Directors serving as Audit and Supervisory Committee Member consent.

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Article 33. (Method of Resolutions at Audit and Supervisory Committee Member)

Resolutions of the Audit and Supervisory Committee shall be adopted by a majority vote of the Audit and Supervisory Committee Members present at a meeting where a majority of the Audit and Supervisory Committee Members who are entitled to vote are present.

Article 34. (Rules of Audit and Supervisory Committee Member)

Matters concerning the Audit and Supervisory Committee shall be governed by laws and regulations, these Articles of Incorporation, and the Rules of the Audit and Supervisory Committee established by the Audit and Supervisory Committee.

#### CHAPTER VI ACCOUNTING AUDITORS

Article 35. (Election of Accounting Auditors)

The Accounting Auditors shall be elected at the General Meeting of Shareholders.

Article 36. (Term of Office of Accounting Auditors)

&nbsp;&nbsp;&nbsp;&nbsp;1. The term of office of the Accounting Auditors shall expire at the close of the Ordinary General Meeting of Shareholders held with respect to the last of the fiscal years that end within one (1) year after they are elected.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Accounting Auditors shall be deemed reelected at the meeting, unless otherwise resolved at the Ordinary General Meeting of Shareholders described in the preceding paragraph.

Article 37. (Remunerations)

The Remunerations, etc. of the Accounting Auditors are fixed by the Representative Directors with the consent of Audit and Supervisory Committee.

#### CHAPTER VII ACCOUNTS

Article 38. (Fiscal Year)

The fiscal year of the Company shall commence on April 1 and end on March 31 of each year.

Article 39. (Authority to Decide Dividends of Surplus, etc.)

The Company may, by resolution of the Board of Directors, determine the matters listed in each item of Article 459, Paragraph (1) of the Companies Act unless otherwise provided by laws.

Article 40. (Record Date for Dividends of Surplus)

The record date for year-end dividends of the Company shall be March 31 of each year, and the record date for the interim dividends of the Company shall be September 30 of each year.

Article 41. (Statute of Limitations for Dividends, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;1. The Company shall be relieved of its obligation to pay any dividends or interim dividends after three (3) years from the date on which such dividends became due and payable if the dividend property is money.

&nbsp;&nbsp;&nbsp;&nbsp;2. No interest shall be paid on the dividends of surplus.

#### SUPPLEMENTARY PROVISIONS

Article 1. (First Fiscal Year)

Notwithstanding the provisions of the Article 38, the first fiscal year of the Company shall be from the date of the establishment of the Company to March 31, 2027.

Article 2. (Remuneration of the Initial Directors, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;1. Notwithstanding the provision of the Article 30, the total amount of monetary Remuneration paid to Directors (excluding Directors serving as an Audit and Supervisory Committee Member) from the date of the establishment of Company until the
 end of the first Ordinary General Meeting of Shareholders shall not exceed 300 million yen per year.

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&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding the provision of the Article 30, the total amount of Remuneration paid to Directors serving as an Audit and Supervisory Committee Member from the date of the establishment of Company until the end of the first Ordinary
 General Meeting of Shareholders shall not exceed 70 million yen per year.

&nbsp;&nbsp;&nbsp;&nbsp;3. Notwithstanding the provisions of Article 30, from the date of the establishment of the Company until the conclusion of the first Ordinary General Meeting of Shareholders, among the Remunerations, etc. to be paid to Directors (excluding
 Directors serving as Audit and Supervisory Committee Members, the "Subject Director"), the monetary remuneration claims granted for the purpose of granting Restricted Shares to Subject Directors shall be provided separately from the
 remuneration limit specified in Paragraph (1), and the details thereof shall be as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The total amount of such monetary remuneration claims granted to the Subject Director shall be 100 million yen per year.

<sup>(2)</sup> Each Subject Director shall, pursuant to a resolution of the Board of Directors, contribute the entire amount of such monetary remuneration claims as property contributed in kind to the Company and receive the issuance or disposal of shares of the Company's common shares in return. The total number of shares of common shares to be issued or disposed of to the Subject Director shall not exceed 377,500 shares; provided, however, that in the event of a share split (including a free allotment of shares) or a reverse share split of the Company's common shares, such number shall be reasonably adjusted according to the applicable ratio.<br>

<sup>(3)</sup> The payment amount per share for the shares of common shares to be issued or disposed of to the Subject Director shall be the closing price of the Company's common shares on the Tokyo Stock Exchange on the business day immediately preceding the date of the resolution of the Board of Directors for such issuance or disposition (or, if no transaction is executed on that day, the closing price on the most recent trading day prior thereto). Upon such issuance or disposition of its common shares, the Company and each Subject Director shall enter into a Restricted Share Allotment Agreement (the "Allotment Agreement") providing, in substance, the matters set forth below; and the shares of common shares allotted pursuant to the Allotment Agreement (the "Allotted Shares") shall be subject to such terms.<br>

(i) The Subject Director shall not, during the period from the date on which the Allotted Shares are allotted (the "Allotment Date") until the time when the Subject Director resigns from all positions as a Director of the Company and as a Director of any subsidiary of the Company (the "Restriction Period"), transfer, create a security interest in, or otherwise dispose of the Allotted Shares.

(ii) If the Subject Director continuously holds a position as a Director of the Company or as a Director of a subsidiary of the Company throughout the Restriction Period, the transfer restriction on all of the Allotted Shares shall be lifted upon expiration of the Restriction Period.

(iii) If the Subject Director falls under any of the events specified in the Allotment Agreement, including cases where the Subject Director is to resign from all positions as a Director of the Company and as a Director of a subsidiary of the Company due to reasons other than death, expiration of term, or other justifiable grounds, the Company shall acquire all of the Allotted Shares without compensation.

(iv) Notwithstanding the provisions of item (ii) above, if the Subject Director dies or resigns from all positions as a Director of the Company and as a Director of a subsidiary of the Company during the period from the day after the date of the Ordinary General Meeting of Shareholders of the Company for the fiscal year that includes the Allotment Date until the date of the next Ordinary General Meeting of Shareholders due to justifiable grounds, the transfer restriction shall be lifted, at the time of such resignation, with respect to a number of the Allotted Shares reasonably determined based on the period during which the Subject Director held such positions within that period. In such case, the Company shall automatically acquire, without compensation, all of the Allotted Shares not released from transfer restrictions immediately after such release.

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(v) Notwithstanding items (i) and (ii) above, if matters relating to organizational restructuring, such as a merger in which the Company becomes the disappearing company, a share exchange in which the Company becomes a wholly-owned subsidiary, or a share transfer, are approved at a General Meeting of Shareholders of the Company (or, if such approval is not required, by a resolution of the Board of Directors), the Company may lift the transfer restriction, prior to the effective date of such organizational restructuring, with respect to a number of the Allotted Shares reasonably determined based on the period from the month following the date of the Ordinary General Meeting of Shareholders for the fiscal year that includes the Allotment Date until the date of such approval; provided, however, that this shall not apply where an entity other than the Company involved in such restructuring allots to the Subject Director shares of such entity that are subject to transfer restrictions. In such case, the Company shall automatically acquire, without compensation, all of the Allotted Shares not released from transfer restrictions immediately after such release.

<br> (vi) Other matters concerning to the Allotment Agreement shall be determined by the Board of Directors of the Company.

Article 3. (Succession of Transfer Restrictions, etc.)

As of April 1, 2026, the Company shall succeed to the contractual position as well as the rights and obligations of TOYO INNOVEX Co., Ltd ("TOYO INNOVEX") under the restricted shares allotment agreements entered between TOYO INNOVEX and its Directors, with respect to the restricted shares granted by TOYO INNOVEX to its Directors pursuant to the Rules of Restricted Shares Remuneration (Restricted Shares) enacted May 26, 2021.

Article 4. (Deletion of These Supplementary Provisions)

These Supplementary Provisions shall be deleted upon the end of the first Ordinary General Meeting of Shareholders following the establishment of the Company.

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<u>Exhibit 2</u>&nbsp;&nbsp;&nbsp;&nbsp; Share Options Issued by NISSEI PLASTIC INDUSTRIAL CO., LTD.

      <u> (i) Series 1 Share Options </u>   <u> (ii) Series 2 Share Options </u>   <u> (iii) Series 3 Share Options </u>   <br>   <u> Date of Resolution </u>   <u> June 29, 2011 </u>   <u> June 28, 2012 </u>   <u> June 27, 2013 </u>   <br>   <u> Grant Date </u>   <u> July 15, 2011 </u>   <u> July 13, 2012 </u>   <u> July 12, 2013 </u>  

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of Nissei Plastic Industrial Co., Ltd. (if the tenth day falls on a holiday, the next business day). </u>   <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>  

  <u> Exercise Period </u>   <u> July 16, 2011 to July 15, 2046 </u>   <u> From July 14, 2012 to July 13, 2047 </u>   <u> From July 13, 2013 to July 12, 2048 </u>  

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| | |
|:---|:---|
| Type, Details, and Number of Shares Underlying the Share Options | Refer to Note 1 and Note 2 |
| Amount to Be Paid Upon Exercise of the Share Options | JPY 1 per share |
| Issue Price and Amount to Be Included in Capital and Capital Reserve upon Issuance of Shares upon Exercise of the Share Options | Refer to Note 3 |
| Conditions for Exercise of Share Options | Refer to Note 4 |
| Restrictions on Transfer of Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of Nissei. |
| Provisions Regarding Delivery of Share Options in Connection with Reorganization Transactions | Refer to Note 5 |

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      <u> (iv) Series 4 Share Options </u>   <u> (v) Series 5 Share Options </u>   <u> (vi) Series 6 Share Options </u>   <br>   <u> Date of Resolution </u>   <u> June 27, 2014 </u>   <u> June 26, 2015 </u>   <u> June 24, 2016 </u>   <br>   <u> Grant Date </u>   <u> July 14, 2014 </u>   <u> July 13, 2015 </u>   <u> July 11, 2016 </u>  

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of Nissei Plastic Industrial Co., Ltd. (if the tenth day falls on a holiday, the next business day). </u>   <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>  

  <u> Exercise Period </u>   <u> From July 15, 2014 to July 14, 2049 </u>   <u> From July 14, 2015 to July 13, 2050 </u>   <u> From July 12, 2016 to July 11, 2051 </u>  

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| | |
|:---|:---|
| Type, Details, and Number of Shares Underlying the Share Options  | Refer to Note 1 and Note 2 |
| Amount to Be Paid Upon Exercise of the Share Options | JPY 1 per share |
| Issue Price and Amount to Be Included in Capital and Capital Reserve upon Issuance of Shares upon Exercise of the Share Options | Refer to Note 3 |
| Conditions for Exercise of Share Options | Refer to Note 4 |
| Restrictions on Transfer of Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of Nissei. |
| Provisions Regarding Delivery of Share Options in Connection with Reorganization Transactions | Refer to Note 5 |

---

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      <u> (vii) Series 7 Share Options </u>   <u> (viii) Series 8 Share Options </u>   <u> (ix) Series 9 Share Options </u>   <br>   <u> Date of Resolution </u>   <u> June 23, 2017 </u>   <u> June 27, 2018 </u>   <u> June 26, 2019 </u>   <br>   <u> Grant Date </u>   <u> July 10, 2017 </u>   <u> July 13, 2018 </u>   <u> July 12, 2019 </u>  

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of Nissei Plastic Industrial Co., Ltd. (if the tenth day falls on a holiday, the next business day). </u>   <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>  

  <u> Exercise Period </u>   <u> From July 11, 2017 to July 10, 2052 </u>   <u> From July 14, 2018 to July 13, 2053 </u>   <u> From July 13, 2019 to July 12, 2054 </u>  

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| | |
|:---|:---|
| Type, Details, and Number of Shares Underlying the Share Options | Refer to Note 1 and Note 2 |
| Amount to Be Paid Upon Exercise of the Share Options | JPY 1 per share |
| Issue Price and Amount to Be Included in Capital and Capital Reserve upon Issuance of Shares upon Exercise of the Share Options | Refer to Note 3 |
| Conditions for Exercise of Share Options | Refer to Note 4 |
| Restrictions on Transfer of Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of Nissei. |
| Provisions Regarding Delivery of Share Options in Connection with Reorganization Transactions | Refer to Note 5 |

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      <u> (x) Series 10 Share Options </u>   <u> (xi) Series 11 Share Options </u>   <u> (xii) Series 12 Share Options </u>   <br>   <u> Date of Resolution </u>   <u> June 26, 2020 </u>   <u> June 25, 2021 </u>   <u> June 24, 2022 </u>   <br>   <u> Grant Date </u>   <u> July 13, 2020 </u>   <u> July 12, 2021 </u>   <u> July 11, 2022 </u>  

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of Nissei Plastic Industrial Co., Ltd. (if the tenth day falls on a holiday, the next business day). </u>   <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>  

  <u> Exercise Period </u>   <u> From July 14, 2020 to July 13, 2055 </u>   <u> From July 13, 2021 to July 12, 2056 </u>   <u> From July 12, 2022 to July 11, 2057 </u>  

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| | |
|:---|:---|
| Type, Details, and Number of Shares Underlying the Share Options | Refer to Note 1 and Note 2 |
| Amount to Be Paid Upon Exercise of the Share Options | JPY 1 per share |
| Issue Price and Amount to Be Included in Capital and Capital Reserve upon Issuance of Shares upon Exercise of the Share Options | Refer to Note 3 |
| Conditions for Exercise of Share Options | Refer to Note 4 |
| Restrictions on Transfer of Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of Nissei. |
| Provisions Regarding Delivery of Share Options in Connection with Reorganization Transactions | Refer to Note 5 |

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      <u> (xiii)Series 13 Share Options </u>   <u> (xiv)Series 14 Share Options </u>   <u> (xv)Series 15 Share Options </u>   <br>   <u> Date of Resolution </u>   <u> June 23, 2023 </u>   <u> June 26, 2024 </u>   <u> June 26, 2025 </u>   <br>   <u> Grant Date </u>   <u> July 10, 2023 </u>   <u> July 16, 2024 </u>   <u> July 14, 2025 </u>  

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of Nissei Plastic Industrial Co., Ltd. (if the tenth day falls on a holiday, the next business day). </u>   <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>  

  <u> Exercise Period </u>   <u> From July 11, 2023 to July 10, 2058 </u>   <u> From July 17, 2024 to July 16, 2059 </u>   <u> From July 15, 2025 to July 14, 2060 </u>  

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| | |
|:---|:---|
| Type, Details, and Number of Shares Underlying the Share Options  | Refer to Note 1 and Note 2 |
| Amount to Be Paid Upon Exercise of the Share Options | JPY 1 per share |
| Issue Price and Amount to Be Included in Capital and Capital Reserve upon Issuance of Shares upon Exercise of the Share Options | Refer to Note 3 |
| Conditions for Exercise of Share Options | Refer to Note 4 |
| Restrictions on Transfer of Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of Nissei. |
| Provisions Regarding Delivery of Share Options in Connection with Reorganization Transactions | Refer to Note 5 |

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#### Notes:
1. Each Share Option entitles the holder to acquire 100 shares of common share.

2. Number of Shares Underlying the Share Options

If, after the allotment date of the Share Options, Nissei carries out a share split or share consolidation with respect to its common share, the number of shares to be delivered upon exercise of each Share Option shall be adjusted in accordance with the following formula; provided, however, that such adjustment shall apply only to Share Options that remain unexercised at the time of the adjustment, and any fractional shares resulting from such adjustment shall be rounded down to the nearest whole share.

Adjusted Number of Shares

= Number of Shares Before Adjustment × Ratio of Share Split or Share Consolidation

The Adjusted Number of Shares shall apply on and after the day following the record date of the relevant share split in the case of a share split, and on and after the effective date of the relevant share consolidation in the case of a share consolidation.

However, if a share split is to be conducted subject to approval at a shareholders' meeting of Nissei of a proposal to decrease surplus and increase capital or reserves, and if such shareholders' meeting sets a record date for the share split prior to the conclusion of said meeting, the Adjusted Number of Shares shall apply on and after the day following the conclusion of such shareholders' meeting.

3. Issue Price and Amount to Be Included in Capital upon Issuance of Shares upon Exercise of the Share Options

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The amount of capital to be increased upon issuance of shares resulting from the exercise of the Share Options shall be one-half of the maximum amount deemed to be the increase of capital pursuant to Article 17, Paragraph 1 of the Regulation on Corporate Accounting. If the calculation results in a fraction less than one (1) yen, such amount shall be rounded up to the nearest whole yen.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The amount to be included in capital reserve upon issuance of shares resulting from the exercise of the Share Options shall be the amount obtained by deducting the amount of capital increase set forth in item (i) above from the maximum amount deemed to be the increase of capital as prescribed in the same item.

4. Conditions for Exercise of Share Options

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A Share Option holder may exercise the Share Options only within ten (10) days from the day following the date on which the holder loses his or her position as a Director of Nissei; provided, however, that if the tenth day falls on a holiday, the next business day shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the preceding item, if a proposal for approval of a merger agreement under which Nissei will be the dissolving company, a company split agreement or a company split plan under which Nissei will be the splitting company, or a share exchange agreement or a share transfer plan under which Nissei will become a wholly-owned subsidiary, is approved at a shareholders' meeting of Nissei (or, if no shareholders' meeting resolution is required, a resolution of the Board of Directors of Nissei or a determination by an Executive Officer delegated pursuant to Article 416, Paragraph 4 of the Companies Act is made), the Share Options may be exercised only for a period of thirty (30) days from the day following the date of such approval; provided, however, that this shall not apply if Share Options of the reorganized company are delivered to the Share Option holders pursuant to Article 5 (Provisions Regarding Delivery of Share Options in Connection with Organizational Restructuring).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Other conditions shall be as provided in the "Share Option Allotment Agreement" to be executed between Nissei and each Share Option holder.

**5.** Treatment of Share Options in Organizational Reorganization Transactions

If Nissei conducts a merger (limited to mergers in which Nissei will cease to exist), an absorption-type company split or an incorporation-type company split (in each case limited to cases where Nissei will be the splitting company), a share exchange or a share transfer (in each case limited to cases where Nissei will become a wholly-owned subsidiary) (collectively, the "Reorganization Transactions"), then, immediately prior to the effective date of such Reorganization Transaction (meaning, in the case of an absorption-type merger, the effective date of the merger; in the case of an incorporation-type merger, the date of incorporation of the new company established by the merger; in the case of an absorption-type company split, the effective date of the split; in the case of an incorporation-type company split, the date of incorporation of the new company established by the split; in the case of a share exchange, the effective date thereof; and in the case of a share transfer, the date of incorporation of the wholly-owning parent company established by the share transfer), the holders of Share Options remaining outstanding immediately before such effective date (the "Remaining Share Options") shall be granted share options of a joint stock company listed in items (a) through (e) of Article 236, Paragraph 1, Item 8 of the Companies Act (the "Reorganized Company"); provided, however, that such grant shall be subject to the relevant merger agreement, company split agreement or plan, share exchange agreement, or share transfer plan stipulating that the grant shall be made in accordance with the following provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Number of Share Options Granted

The number of share options of the Reorganized Company to be granted to each holder shall be equal to the number of Remaining Share Options held by such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Type of Shares Underlying the Share Options

The shares underlying the share options to be granted shall be the common shares of the Reorganized Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Number of Shares Underlying Each Share Option

Number of Shares Underlying Each Share Option

The number of shares deliverable upon exercise shall be a number reasonably adjusted after taking into account the terms and conditions of the Reorganization Transaction; provided, however, that any fractional shares resulting from such adjustment shall be rounded down to the nearest whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Amount of Property to be Contributed upon Exercise

The amount of property to be contributed upon exercise of each share option shall be calculated by multiplying the post-reorganization exercise price (as provided below) by the number of shares deliverable upon exercise as determined in item (iii) above. The post-reorganization exercise price shall be set at JPY 1 per share of the Reorganized Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Exercise Period

The Share Options shall be exercisable during the period beginning on the later of (a) the exercise commencement date specified for the Share Options and (b) the effective date of the Reorganization Transaction, and ending on the last day of the exercise period as prescribed for the Share Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Increase in Capital and Capital Reserve upon Exercise

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The amount of increase in capital shall be one-half of the maximum amount of increase in capital, etc. calculated in accordance with Article 17, Paragraph 1 of the Regulation on Corporate Accounting, and any fraction less than one yen resulting from the calculation shall be rounded up to the next whole yen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The amount of increase in capital reserve shall be the amount obtained by deducting the amount of increase in capital set forth in Item (a) above from the maximum amount of increase in capital, etc. as calculated pursuant to said Item (a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Restriction on Transfer

The acquisition of the share options through transfer shall require the approval of the Board of Directors of the Reorganized Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Conditions for Exercise

The conditions for exercise shall be as provided in Section 4 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Acquisition of Share Options by the Company

If any of the following proposals is approved at a shareholders' meeting of Nissei (or, where a shareholders' meeting resolution is not required, approved by a resolution of the Board of Directors of Nissei or by a decision of an Executive Officer delegated pursuant to Article 416, Paragraph 4 of the Companies Act), Nissei may acquire the Share Options without compensation, on a date separately determined by Nissei's Board of Directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Approval of a merger agreement under which Nissei will be the dissolving company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Approval of a company split agreement or company split plan under which Nissei will be the splitting company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Approval of a share exchange agreement or share transfer plan under which Nissei will become a wholly-owned subsidiary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Approval of an amendment to the Articles of Incorporation to require approval by Nissei for transfer of all shares issued by Nissei

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Approval of an amendment to the Articles of Incorporation to require approval by Nissei for transfer of the class of shares underlying the Share Options, or to allow Nissei to acquire all such shares by
 shareholder resolution

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<u>Exhibit 3</u> Share Options Issued by GMS Group Co., Ltd.

      <u> (i) Series 1 Share Options </u>   <u> (ii) Series 2 Share Options </u>   <u> (iii) Series 3 Share Options </u>   <br>   <u> Grant Date </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>  

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| | |
|:---|:---|
| Vesting Conditions | Within 10 days from the day following the date on which the holder loses their position as a Director of the Holding Company and any company directly or indirectly controlled by the Holding Company (the "Group Companies") (if the tenth day falls on a holiday, the next business day). |
| Service Period Subject to Vesting | No specific period is stipulated. |

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  <u> Exercise Period </u>   <u> From April 1, 2026 to July 15, 2046 </u>   <u> From April 1, 2026 to July 13, 2047 </u>   <u> From April 1, 2026 to July 12, 2048 </u>  

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| | |
|:---|:---|
| Number of Share Options | A number equal to 2 times the number of the corresponding Share Options issued by Nissei as of the record time. |
| Type, Details, and Number of Shares Underlying the Share Options (Note 1) | 100 common shares per 1 Share Option |
| Amount to Be Paid Upon Exercise of the Share Options | JPY 1 per share |
| Issue Price and Amount to Be Included in Capital and Capital Reserve upon Issuance of Shares upon Exercise of the Share Options  | Refer to Note 2 |
| Conditions for Exercise of Share Options | Refer to Note 3 |
| Restrictions on Transfer of Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of the Holding Company. |
| Provisions Regarding Delivery of Share Options in Connection with Reorganization Transactions | Refer to Note 4 |

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      <u> (iv) Series 4 Share Options </u>   <u> (v) Series 5 Share Options </u>   <u> (vi) Series 6 Share Options </u>   <br>   <u> Grant Date </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>  

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of the Holding Company and Group Companies (if the tenth day falls on a holiday, the next business day). </u>   <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>  

  <u> Exercise Period </u>   <u> From April 1, 2026 to July 14, 204 </u>   <u> From April 1, 2026 to July 13, 205 </u>   <u> From April 1, 2026 to July 11, 2051 </u>  

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| | |
|:---|:---|
| Number of Share Options | A number equal to 2 times the number of the corresponding Share Options issued by Nissei as of the record time. |
| Type, Details, and Number of Shares Underlying the Share Options (Note 1) | 100 common shares per 1 Share Option  |
| Amount to Be Paid Upon Exercise of the Share Options | JPY 1 per share |
| Issue Price and Amount to Be Included in Capital and Capital Reserve upon Issuance of Shares upon Exercise of the Share Options  | Refer to Note 2 |
| Conditions for Exercise of Share Options | Refer to Note 3 |
| Restrictions on Transfer of Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of the Holding Company. |
| Provisions Regarding Delivery of Share Options in Connection with Reorganization Transactions | Refer to Note 4 |

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      <u> (vii) Series 7 Share Options </u>   <u> (viii) Series 8 Share Options </u>   <u> (ix) Series 9 Share Options </u> <u><br> </u> <br>   <u> Grant Date </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u> <u><br> </u>

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of the Holding Company and Group Companies (if the tenth day falls on a holiday, the next business day). </u>   <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>  

  <u> Exercise Period </u>   <u> From April 1, 2026 to July 10, 2052 </u>   <u> From April 1, 2026 to July 13, 2053 </u>   <u> From April 1, 2026 to July 12, 2054 </u> <u><br> </u>

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| | |
|:---|:---|
| Number of Share Options | A number equal to 2 times the number of the corresponding Share Options issued by Nissei as of the record time. |
| Type, Details, and Number<br> of Shares Underlying the<br> Share Options (Note 1) | 100 common shares per 1 Share Option |
| Amount to Be Paid Upon<br> Exercise of the Share<br> Options | JPY 1 per share |
| Issue Price and Amount to<br>Be Included in Capital and<br> Capital Reserve upon<br> Issuance of Shares upon<br> Exercise of the Share<br> Options | Refer to Note 2 |
| Conditions for Exercise of<br> Share Options | Refer to Note 3 |
| Restrictions on Transfer of<br> Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of the Holding Company. |
| Provisions Regarding<br> Delivery of Share Options in<br> Connection with<br> Reorganization Transactions | Refer to Note 4 |

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      <u> (x) Series 10 Share Options </u>   <u> (xi) Series 11 Share Options </u>   <u> (xii) Series 12 Share Options </u>   <br>   <u> Grant Date </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>  

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of the Holding Company and Group Companies (if the tenth day falls on a holiday, the next business day). </u>   <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>  

  <u> Exercise Period </u>   <u> From April 1, 2026 to July 13, 2055 </u>   <u> From April 1, 2026 to July 12, 2056 </u>   <u> From April 1, 2026 to July 11, 2057 </u>  

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| | |
|:---|:---|
| Number of Share Options | A number equal to 2 times the number of the corresponding Share Options issued by Nissei as of the record time. |
| Type, Details, and Number<br> of Shares Underlying the<br> Share Options (Note 1) | 100 common shares per 1 Share Option |
| Amount to Be Paid Upon<br> Exercise of the Share<br> Options | JPY 1 per share |
| Issue Price and Amount to<br> Be Included in Capital and<br> Capital Reserve upon<br> Issuance of Shares upon<br> Exercise of the Share<br> Options | Refer to Note 2 |
| Conditions for Exercise of<br> Share Options | Refer to Note 3 |
| Restrictions on Transfer of<br> Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of the Holding Company. |
| Provisions Regarding<br> Delivery of Share Options in<br> Connection with<br> Reorganization Transactions | Refer to Note 4 |

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      <u> (xiii) Series 13 Share Options </u>   <u> (xiv) Series 14 Share Options </u>   <u> &nbsp;&nbsp;&nbsp;&nbsp;(xv) Series 15 Share Options </u>   <br>   <u> Grant Date </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>   <u> April 1, 2026 </u>  

  <u> Vesting Conditions </u>   <u> Within 10 days from the day following the date on which the holder loses their position as a Director of the Holding Company and Group Companies (if the tenth day falls on a holiday, the next business day). </u> <br>   <u> Service Period Subject to Vesting </u>   <u> No specific period is stipulated. </u>

  <u> Exercise Period </u>   <u> From April 1, 2026 to July 10, 2058 </u>   <u> From April 1, 2026 to July 16, 2059 </u>   <u> From April 1, 2026 to July 14, 2060 </u>  

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| | |
|:---|:---|
| Number of Share Options | A number equal to 2 times the number of the corresponding Share Options issued by Nissei as of the record time. |
| Type, Details, and Number<br> of Shares Underlying the<br> Share Options (Note 1) | 100 common shares per 1 Share Option |
| Amount to Be Paid Upon<br> Exercise of the Share<br> Options | JPY 1 per share |
| Issue Price and Amount to<br> Be Included in Capital and<br> Capital Reserve upon<br> Issuance of Shares upon<br> Exercise of the Share<br> Options | Refer to Note 2 |
| Conditions for Exercise of<br> Share Options | Refer to Note 3 |
| Restrictions on Transfer of<br> Share Options | The acquisition of share options by transfer shall be subject to approval by a resolution of the Board of Directors of the Holding Company. |
| Provisions Regarding<br> Delivery of Share Options in<br> Connection with<br> Reorganization Transactions | Refer to Note 4 |

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1. Number of Shares Underlying the Share Options

If, after the allotment date of the Share Options, the Holding Company carries out a share split (including a gratis allotment of shares; the same shall apply hereinafter) or share consolidation with respect to its common share, the number of shares to be delivered upon exercise of each Share Option shall be adjusted in accordance with the following formula; provided, however, that such adjustment shall apply only to Share Options that remain unexercised at the time of the adjustment, and any fractional shares resulting from such adjustment shall be rounded down to the nearest whole share.

Adjusted Number of Shares

= Number of Shares Before Adjustment × Ratio of Share Split or Share Consolidation

The Adjusted Number of Shares shall apply on and after the day following the record date of the relevant share split in the case of a share split, and on and after the effective date of the relevant share consolidation in the case of a share consolidation.

However, if a share split is to be conducted subject to approval at a shareholders' meeting of the Holding Company of a proposal to decrease surplus and increase capital or reserves, and if such shareholders' meeting sets a record date for the share split prior to the conclusion of said meeting, the Adjusted Number of Shares shall apply on and after the day following the conclusion of such shareholders' meeting.

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2. Issue Price and Amount to Be Included in Capital and Capital Reserve upon Issuance of Shares upon Exercise of the Share Option

(a)The amount of increase in stated capital upon the issuance of shares resulting from the exercise of the Share Options shall be one-half of the maximum amount of increase in stated capital and capital reserves calculated in accordance with Article 17, Paragraph 1 of the Regulation on Corporate Accounting, and any fraction of less than one (1) yen resulting from such calculation shall be rounded up to the nearest yen.

(b)The amount of increase in capital reserve upon the issuance of shares resulting from the exercise of the Share Options shall be the amount obtained by deducting the amount of increase in stated capital set forth in item (i) above from the maximum amount of increase in stated capital and capital reserves referred to in item (i) above.

3. Conditions for Exercise of Share Options

&nbsp;&nbsp;&nbsp;&nbsp;(i) A Share Option holder may exercise the Share Options only within ten (10) days from the day following the date on which the holder loses his or her position as a Director of the Holding Company and the Group Companies; provided, however, that if the tenth day falls on a holiday, the next business day shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the preceding item, if a proposal for approval of a merger agreement under which the Holding Company will be the dissolving company, a company split agreement or a company split plan under which the Holding Company will be the splitting company, or a share exchange agreement or a share transfer plan under which the Holding Company will become a wholly-owned subsidiary, is approved at a shareholders' meeting of the Holding Company (or, if no shareholders' meeting resolution is required, a resolution of the Board of Directors of the Holding Company is made), the Share Options may be exercised only for a period of thirty (30) days from the day following the date of such approval.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) Other conditions shall be as provided in the "Share Option Allotment Agreement" to be executed between the Holding Company and each Share Option holder.

4. Treatment of Share Options in Organizational Reorganization Transactions

If the Holding Company conducts a merger (limited to mergers in which the Holding Company will cease to exist), an absorption-type company split or an incorporation-type company split (in each case limited to cases where the Holding Company will be the splitting company), a share exchange or a share transfer (in each case limited to cases where the Holding Company will become a wholly-owned subsidiary) (collectively, the "Reorganization Transactions"), then, immediately prior to the effective date of such Reorganization Transaction (meaning, in the case of an absorption-type merger, the effective date of the merger; in the case of an incorporation-type merger, the date of incorporation of the new company established by the merger; in the case of an absorption-type company split, the effective date of the split; in the case of an incorporation-type company split, the date of incorporation of the new company established by the split; in the case of a share exchange, the effective date thereof; and in the case of a share transfer, the date of incorporation of the wholly-owning parent company established by the share transfer), the holders of Share Options remaining outstanding immediately before such effective date (the "Remaining Share Options") shall be granted share options of a joint stock company listed in items (a) through (e) of Article 236, Paragraph 1, Item 8 of the Companies Act (the "Reorganized Company"); provided, however, that such grant shall be subject to the relevant merger agreement, company split agreement or plan, share exchange agreement, or share transfer plan stipulating that the grant shall be made in accordance with the following provisions.

&nbsp;&nbsp;&nbsp;&nbsp;(i) Number of Share Options Granted

The number of share options of the Reorganized Company to be granted to each holder shall be equal to the number of Remaining Share Options held by such holder.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Type of Shares Underlying the Share Options

The shares underlying the share options to be granted shall be the common shares of the Reorganized Company.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) Number of Shares Underlying Each Share Option

Number of Shares Underlying Each Share Option

The number of shares deliverable upon exercise shall be a number reasonably adjusted after taking into account the terms and conditions of the Reorganization Transaction; provided, however, that any fractional shares resulting from such adjustment shall be rounded down to the nearest whole share.

&nbsp;&nbsp;&nbsp;&nbsp;(iv) Amount of Property to be Contributed upon Exercise

The amount of property to be contributed upon exercise of each share option shall be calculated by multiplying the post-reorganization exercise price (as provided below) by the number of shares deliverable upon exercise as determined in item (iii) above. The post-reorganization exercise price shall be set at JPY 1 per share of the Reorganized Company.

&nbsp;&nbsp;&nbsp;&nbsp;(v) Exercise Period

The Share Options shall be exercisable during the period beginning on the later of (a) the exercise commencement date specified for the Share Options and (b) the effective date of the Reorganization Transaction, and ending on the last day of the exercise period as prescribed for the Share Options.

&nbsp;&nbsp;&nbsp;&nbsp;(vi) Increase in Capital and Capital Reserve upon Exercise

(a)The amount of increase in capital shall be one-half of the maximum amount of increase in capital, etc. calculated in accordance with Article 17, Paragraph 1 of the Regulation on Corporate Accounting, and any fraction less than one yen resulting from the calculation shall be rounded up to the next whole yen.

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(b)The amount of increase in capital reserve shall be the amount obtained by deducting the amount of increase in capital set forth in Item (a) above from the maximum amount of increase in capital, etc. as calculated pursuant to said Item (a).

&nbsp;&nbsp;&nbsp;&nbsp;(vii) Restriction on Transfer

The acquisition of the share options through transfer shall require the approval of the Board of Directors of the Reorganized Company.

&nbsp;&nbsp;&nbsp;&nbsp;(viii) Conditions for Exercise

The conditions for exercise shall be as provided in Section 3 above.

&nbsp;&nbsp;&nbsp;&nbsp;(ix) Acquisition of Share Options by the Company

If any of the following proposals is approved at a shareholders' meeting of the Holding Company (or, where a shareholders' meeting resolution is not required, approved by a resolution of the Board of Directors of the Holding Company), the Holding Company may acquire the Share Options without compensation, on a date separately determined by Board of Directors of the Holding Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Approval of a merger agreement under which the Holding Company will be the dissolving company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Approval of a company split agreement or company split plan under which the Holding Company will be the splitting company

(c)Approval of a share exchange agreement or share transfer plan under which the Holding Company will become a wholly-owned subsidiary

(d)Approval of an amendment to the Articles of Incorporation to require approval by the Holding Company for transfer of all shares issued by the Holding Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Approval of an amendment to the Articles of Incorporation to require approval by the Holding Company for transfer of the class of shares underlying the Share Options, or to allow the Holding Company to acquire all such shares by shareholder resolution

5. The Holding Company shall not issue any stock option certificates in respect of the Share Options.

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&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Matters Regarding the Reasonableness of Determination Concerning Matters Specified in Article 773, Paragraph (1), Items 5 and 6 of the Companies Act of Japan (the "Companies Act")** 

<br> (1) Matters Regarding Shares of the Joint Holding Company To Be Issued To Shareholders of Respective Companies Upon the Share Transfer and the Allotment of the Shares of the Joint Holding Company

The Companies have determined the allotment ratio of the shares to be allotted to shareholders of respective Companies upon the establishment of the Joint Holding Company through the Share Transfer (the "**Share Transfer Ratio**") as follows.

<br> (i) Details of Allotment under the Share Transfer (Share Transfer Ratio)

The Company Nissei <br> <u> Share Transfer Ratio </u> <u> 1.51 </u> <u> 2 </u>

(Note 1) Allotment Ratio of the Shares

For each common share of the Company, 1.51 common share of the Joint Holding Company shall be allotted and delivered; and for each common share of Nissei, two (2) common shares of the Joint Holding Company shall be allotted and delivered; provided, however, that the above Share Transfer Ratio may be subject to change upon mutual consultation between the Companies, if there is any material change in the conditions that form the basis of the valuation thereof. In the event that any fractional shares of the Joint Holding Company arise as a result of the Share Transfer, the amount of money corresponding to such fractional shares shall be paid to the relevant shareholders, in accordance with Article 234 of the Companies Act and other applicable laws and regulations.

(Note 2) The Share Unit of the Joint Holding Company and Handling of Shares Less Than One Unit

The share unit of the Joint Holding Company shall be 100 shares.

The Companies will apply for the listing of the shares (a technical listing) of the Joint Holding Company, which are to be allotted to the shareholders of the Companies through the Share Transfer, on the TSE. If such application is approved, the shares of the Joint Holding Company will be traded on the TSE. Therefore, the Companies believe they can continue to provide liquidity for the shares of the Joint Holding Company to the shareholders of the Companies who will be allotted a number equal to or greater than one unit of shares (100 shares) of the Joint Holding Company.

Shareholders of the Companies who receive allotment of shares of the Joint Holding Company constituting less than one unit (100 shares) in the Share Transfer will not be able to sell the allotted Shares Less Than One Unit on the TSE or other financial instruments exchanges.

However, such shareholders may demand that the Joint Holding Company purchase the Shares Less Than One Unit that they hold in accordance with Article 192, Paragraph (1) of the Companies Act.

Additionally, pursuant to Article 194, Paragraph (1) of the Companies Act and the provisions under the Articles of Incorporation planned to be stipulated for the Joint Company, the shareholders will be able to demand that the Joint Holding Company sell them the shares necessary to constitute one full unit (100 shares) together with the Shares Less Than One Unit that they hold.

(Note 3) Number of New Shares in the Joint Holding Company to be Issued through the Share Transfer (Scheduled)

Common Shares: 75,805,530 shares

The above number has been calculated based on total number of issued shares in the Company as of September 30, 2025 (20,703,000 shares), and the total number of issued shares in Nissei as of September 30, 2025 (22,272,000 shares). Furthermore, the Company and Nissei plan to cancel treasury shares they currently hold or may acquire in the future, to the extent practicably possible, prior to the Effective Date of the Share Transfer. As the number of treasury shares actually canceled by the Effective Date of the Share Transfer has not yet been fixed, the above number of new shares to be issued by the Joint Holding Company may change.

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<br> (ii) Grounds and Reasons for the Content of the Allotment Pertaining to the Share Transfer

To ensure fairness in determining the Share Transfer Ratio described in 3. (1) (i) "Details of Allotment under the Share Transfer (Share Transfer Ratio)" above, the Company selected YAMADA Consulting Group Co., Ltd. ("**YAMADA Consulting**") as its independent financial advisor and third-party appraiser, and Nissei appointed SMBC NIKKO SECURITIES INC. ("**SMBC Nikko**") as its independent financial advisor and third-party appraiser. On November 13, 2025, the Companies obtained valuation reports regarding the Share Transfer Ratio.

Based on the advice and calculation results from the financial Advisor and third-Party appraiser, and the legal advice from the respective legal advisors to the Companies as described in "(ⅱ) Advice from Independent Law Firm" under "Measures to Ensure Fairness" in 3.(1) (v) below and taking into account the results of the due diligence conducted by each of the Companies on the other party, the Companies comprehensively considered factors such as the financial condition, asset status, future outlook, and share price trends of each company. After careful negotiations and discussions between the Companies regarding the Share Transfer Ratio, the Companies ultimately determined that the Share Transfer Ratio described in (3) (1) (i) "Details of the Allotment under the Share Transfer (Share Transfer Ratio)" above was appropriate. The Share Transfer Ratio was resolved and agreed upon at the respective meetings of the board of directors of the Companies.

<br> (iii) Matters Related to the Valuation

<br> a. Names of Appraisers and Their Relationship with the Companies

Neither YAMADA Consulting, as the third-party appraiser for the Company, nor SMBC Nikko, as the third-party appraiser for Nissei, falls under a related party to either of the Companies, and neither YAMADA Consulting nor SMBC Nikko has any material interest in connection with the Share Transfer that is required to be stated.

<br> b. Outline of Valuation

YAMADA Consulting calculated the corporate value using the market share price method, as the Companies are listed on a financial instruments exchange and market share prices exist. YAMADA Consulting also adopted the discounted cash flow method ("**DCF Method**") to reflect the future business outlook in the valuation.

The market share price method was conducted with the valuation reference date set as November 13, 2025, by employing (i) the closing price on the TSE on the valuation reference date as well as (ii) the simple average of the closing prices on the TSE for each period of the past one (1) month, three (3) months, and six (6) months immediately preceding the valuation reference date, respectively.

Under the DCF Method, the corporate value is calculated by discounting cash flows etc. which are expected to be generated based on the financial forecasts prepared by the Companies, to present value at a certain discount rate.

The calculation results for each of the above methods are as follows. Note that the calculation result for the Share Transfer Ratio below represents the number of common shares of the Joint Holding Company allocated per one common share of the Company when allocating one common share of the Joint Holding Company per two common shares of Nissei.

Methods Employed Valuation Results of the Share Transfer Ratio <br> <u> Market Share Price Method </u> <u> &nbsp;&nbsp;&nbsp;&nbsp;1.47 to 1.64 </u> <br> <u> DCF Method </u> <u> &nbsp;&nbsp;&nbsp;&nbsp;1.20 to 2.54 </u>

YAMADA Consulting, in calculating the Share Transfer Ratio above, relied upon the information furnished by the Companies, publicly available information and any other similar information. YAMADA Consulting assumes that all such information is accurate and complete and has not independently verified the accuracy and completeness thereof. YAMADA Consulting has not independently valued, appraised, or assessed the assets or liabilities (including any derivatives, off-balance-sheet assets and liabilities, and other contingent liabilities) of the Companies and their respective affiliates, nor has it engaged any third-party institution for an appraisal for the same purpose. The calculation of the Share Transfer Ratio by YAMADA Consulting reflects the information and economic conditions as of November 14, 2025. Furthermore, YAMADA Consulting assumes that Nissei's financial forecasts and other forward-looking information were reasonably prepared by Nissei's management based on the best currently possible and good faith forecasts and judgments, that the Company's financial forecasts and other forward-looking information were reasonably reviewed and confirmed by the Company's management based on the best currently possible and good faith forecasts and judgments, and that the financial conditions of Nissei and the Company will progress in line with such forecasts.

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The synergies resulting from the Business Integration are not included in the business plans of Nissei and the Company, which YAMADA Consulting used as the basis for the calculation pursuant to the DCF Method. YAMADA Consulting's DCF valuation assumptions for Nissei's business plan covering the fiscal years ending March 2026 through March 2028 utilize conservative three-year projections reflecting the latest business environment. However, this period includes fiscal years where significant profit fluctuations are anticipated. Specifically, the business plan used as the calculation premise assumes a significant decline in operating profit for the fiscal year ending March 2026, influenced by factors such as inventory write-downs. For the fiscal years ending March 2027 and March 2028, a significant increase in profit is anticipated by expanding sales of high-value-added, high-margin products such as large-scale equipment and specialized machinery. Furthermore, free cash flow is expected to increase substantially from the previous fiscal year, driven by growth in operating profit and a reduction in the increase in working capital.

Furthermore, regarding the Company's business plan for the fiscal years ending March 2026 through March 2028, which YAMADA Consulting used as the basis for the calculation pursuant to the DCF Method, it includes fiscal years in which a substantial increase in profit is anticipated. Specifically, operating profit for the fiscal year ending March 2026 is expected to increase substantially compared to the previous fiscal year. This is due to factors such as the current order volume driven by market recovery and enhanced sales efforts, including shorter delivery lead times achieved through advance procurement of parts for large die casting machines. Furthermore, free cash flow is projected to increase significantly compared to the previous fiscal year. This increase is attributable to the rise in operating profit, coupled with smaller increase in working capital. For the fiscal year ending March 2027, operating profit is projected to increase substantially compared to the previous fiscal year. This growth is expected to be driven by the impact of the market recovery, along with global sales expansion focused on key Asian regions and initiatives to re-engage dormant customers in Japan. Free cash flow, however, is expected to decrease significantly compared to the previous fiscal year due to an increase in working capital associated with sales expansion. For the fiscal year ending March 2028, operating profit is projected to show a substantial increase over the previous fiscal year. This is expected to be driven by continued implementation of previous measures, along with intensified sales efforts for large-scale die casting machines, streamlining of production system, and promotion of cost reduction activities. Free cash flow is also projected to increase significantly over the previous fiscal year, driven by the increase in operating profit.

On the other hand, SMBC Nikko employed the market share price method, as the Companies are listed on a financial instruments exchange and market share prices exist. Additionally, to reflect the future business activity outlook in the valuation, the DCF Method was adopted for the calculation.

The calculation results for each of the above methods are as follows. Note that the calculation result for the Share Transfer Ratio below represents the number of common shares of the Joint Holding Company allocated per share of the Company when allocating one common share of the Joint Holding Company per two common shares of Nissei.

Methods Employed Valuation Results of the Share Transfer Ratio <br> <u> Market Share Price Method </u> <u> &nbsp;&nbsp;&nbsp;&nbsp;1.49 to 1.54 </u> <br> <u> DCF Method </u> <u> &nbsp;&nbsp;&nbsp;&nbsp;1.01 to 3.19 </u>

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The market share price method was conducted with the valuation reference date set as November 13, 2025, by employing (i) the closing price on the TSE on the valuation reference date as well as (ii) the simple average of the closing prices on the TSE for each period of the past one (1) month, three (3) months, and six (6) months immediately preceding the valuation reference date, respectively.

Under the DCF Method, the corporate value is calculated by discounting cash flows, etc. (which are expected to be generated based on the financial forecasts prepared by the Companies), to present value at a certain discount rate.

SMBC Nikko, in calculating the Share Transfer Ratio above, relied upon the information furnished by the Companies, publicly available information and any other similar information. SMBC Nikko assumes that all such information is accurate and complete and has not independently verified the accuracy and completeness thereof. SMBC Nikko has not independently valued, appraised, or assessed the assets or liabilities (including any derivatives, off-balance-sheet assets and liabilities, and other contingent liabilities) of the Companies and their respective affiliates, nor has it engaged any third-party institution for an appraisal for the same purpose. The calculation of the Share Transfer Ratio by SMBC Nikko reflects the information and economic conditions as of November 14, 2025. Furthermore, SMBC Nikko assumes that Nissei's financial forecasts and other forward-looking information were reasonably prepared by Nissei's management based on the best currently possible and good faith forecasts and judgments, that the Company's financial forecasts and other forward-looking information were reasonably reviewed and confirmed by the Company's management based on the best currently possible and good faith forecasts and judgments, and that the financial conditions of Nissei and the Company will progress in line with such forecasts.

The synergies resulting from the Business Integration are not included in the business plans of Nissei and the Company, which SMBC Nikko used as the basis for the calculation pursuant to the DCF Method. SMBC Nikko has used conservative estimates for the three-year period from fiscal year ending March 2026 to fiscal year ending March 2028 in its DCF valuation, reflecting the latest business environment. However, this period includes fiscal years where significant profit fluctuations are anticipated. Specifically, the business plan used as the calculation premise assumes a significant decline in operating profit for the fiscal year ending March 2026, influenced by factors such as inventory write-downs. For the fiscal years ending March 2027 and March 2028, a significant increase in profit is anticipated by expanding sales of high-value-added, high-margin products such as large-scale equipment and specialized machinery. Furthermore, free cash flow is expected to increase substantially from the previous fiscal year, driven by growth in operating profit and a reduction in the increase in working capital.

Furthermore, regarding the Company's business plan for the fiscal years ending March 2026 through March 2028, which SMBC Nikko used as the basis for the calculation pursuant to the DCF Method, it includes fiscal years in which a substantial increase in profit is anticipated. Specifically, operating profit for the fiscal year ending March 2026 is expected to increase substantially compared to the previous fiscal year. This is due to factors such as the current order volume driven by market recovery and enhanced sales efforts, including shorter delivery lead times achieved through advance procurement of parts for large die casting machines. Furthermore, free cash flow is projected to increase significantly compared to the previous fiscal year. This increase is attributable to the rise in operating profit, coupled with a smaller increase in working capital. For the fiscal year ending March 2027, operating profit is projected to increase substantially compared to the previous fiscal year. This growth is expected to be driven by the impact of the market recovery, along with global sales expansion focused on key Asian regions and initiatives to re-engage dormant customers in Japan. Free cash flow, however, is expected to decrease significantly compared to the previous fiscal year due to an increase in working capital associated with sales expansion. For the fiscal year ending March 2028, operating profit is projected to increase substantially over the previous fiscal year. This is expected to be driven by continued implementation of previous measures, along with intensified sales efforts for large-scale die casting machines, streamlining of production system, and promotion of cost reduction activities. Free cash flow is also projected to increase significantly over the previous fiscal year, driven by the increase in operating profit.

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<br> (iv) Matters Regarding Handling or the Like of Application for Listing of the Joint Holding Company

The Companies will apply for the listing of the shares (a technical listing) of the newly established Joint Holding Company on the TSE Prime Market. The listing date is scheduled for April 1, 2026, which is the date of the Joint Holding Company's incorporation registration. Furthermore, as the Companies will become wholly-owned subsidiaries of the Joint Holding Company through the Share Transfer, the Company is scheduled to be delisted from the TSE on March 30, and, Nissei is scheduled to be delisted from the TSE and NSE on March 30, 2026, respectively, prior to the Joint Holding Company's listing.

The actual listing date for shares in the Joint Holding Company and the delisting date for shares in the Companies will be determined in accordance with the regulations of the TSE and NSE.

<br> (v) Measures to Ensure Fairness

There is no capital relationship between the Company and Nissei, and the Share Transfer is being conducted between independent parties. However, the Company has implemented the following measures to ensure the fairness of the Share Transfer.

<br> a. Procurement of a Share Transfer Ratio valuation report from an independent third-party appraiser

To ensure the fairness and appropriateness of the Share Transfer, the Company selected YAMADA Consulting as an independent third-party appraiser, as described in 3.(1)(ii) "Grounds and Reasons for the Content of Allotment" above. The Company obtained Share Transfer Ratio calculation report to serve as the basis for agreeing on the Share Transfer Ratio in the Share Transfer. Furthermore, the Company negotiated and discussed with Nissei, referencing the analysis and advice of its financial advisor and third-party appraiser, YAMADA Consulting. At a board of directors meeting held on November 14, 2025, the Company resolved to execute the Share Transfer at the Share Transfer Ratio described in 3.(1)(i) "Details of Allotment under the Share Transfer (Share Transfer Ratio)" above. The Company has not obtained a fairness opinion from YAMADA Consulting stating that the Share Transfer Ratio is reasonable or fair from a financial point of view.

<br> b. Advice from Independent Law Firm

To ensure the fairness and appropriateness of the board of directors' decision-making, the Company has received legal advice from Oh-Ebashi LPC & Partners, an independent legal advisor from the Companies, regarding the procedures for the Share Transfer and the methods and processes of decision-making. Oh-Ebashi LPC & Partners is not a related party to the Companies and has no material interest that should be disclosed in relation to the Business Integration.

Although Oh-Ebashi LPC & Partners has an advisory agreement with the Company, (a) Oh-Ebashi LPC & Partners is a law firm providing services as an external legal expert to numerous clients, including the Company; (b) the amount paid by the Company to Oh-Ebashi LPC & Partners for legal advice in the most recent fiscal year was a small amount falling below the standard for independence of outside directors of the Company (where "the amount paid by the Company for transactions with the Company in the most recent fiscal year exceeds 2% of the person's consolidated sales"); and (c) the legal advisory fees payable to Oh-Ebashi LPC & Partners in connection with the Business Integration do not include any success fees contingent upon the completion of the Business Integration, the Company has determined that there is no issue with its independence from the Company in the Business Integration.

Meanwhile, Nissei has taken the following measures from the perspective of ensuring the fairness of the Share Transfer:

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<br> a. Procurement of a Share Transfer Ratio valuation report from an independent third-party appraiser

To ensure the fairness and appropriateness of the Share Transfer, Nissei selected SMBC Nikko as an independent third-party appraiser, as described in 3.(1)(ii) "Grounds and Reasons for the Content of Allotment" above. Nissei obtained Share Transfer Ratio calculation report to serve as the basis for agreeing on the Share Transfer Ratio in the Share Transfer. Furthermore, Nissei negotiated and discussed with the Company, referencing the analysis and advice of its financial advisor and third-party appraiser, SMBC Nikko. At a board of directors meeting held on November 14, 2025, Nissei resolved to execute the Share Transfer at the Share Transfer Ratio described in 3.(1)(i) "Details of Allotment under the Share Transfer (Share Transfer Ratio)" above. Nissei has not obtained a fairness opinion from SMBC Nikko stating that the Share Transfer Ratio is reasonable or fair from a financial point of view.

<br> b. Advice from Independent Law Firm

To ensure the fairness and appropriateness of the board of directors' decision-making, Nissei has received legal advice from a law firm, Hibiya-Nakata, an independent legal advisor from the Companies, regarding the procedures for the Share Transfer and the methods and processes of decision-making. Hibiya-Nakata is not a related party to the Companies and has no material interest that should be disclosed in relation to the Business Integration. Although Hibiya-Nakata has an advisory agreement with Nissei, (a) it is a law firm that provides services as an external legal expert to numerous clients, including Nissei; (b) the amount paid by Nissei to Hibiya-Nakata as fees for legal advice in the most recent fiscal year is immaterial; and (c) the fees to be paid to Hibiya-Nakata in connection with the Business Integration do not include any success-based compensation contingent upon the completion of the Business Integration. Accordingly, Nissei has determined that there is no issue with the independence of Hibiya-Nakata in connection with the Business Integration.

<br> (vi) Matters Regarding Measures to Avoid Conflicts of Interest

There is no particular conflict of interest between the Company and Nissei arising in connection with the Share Transfer, and therefore no special measures have been taken.

<sup>(2)</sup> Matters Regarding the Amount of Capital and Reserve of the Joint Holding Company<br>

Upon the establishment of the Joint Holding Company through the Share Transfer, the Company and Nissei decided the amount of capital and reserve of the Joint Holding Company as described below.

(i) Amount of capital: JPY 300 million

(ii) Amount of capital reserve: JPY 75 million

(iii) Amount of earned surplus reserve: JPY 0

(iv) Amount of capital surplus: The amount obtained by deducting the total amount set forth in items (i) and (ii) above from the amount of changes in shareholders' equity as prescribed in Article 52, Paragraph 1 of the Regulations for
 Corporate Accounting.

These amounts of capital and capital reserve have been decided by the Company and Nissei upon discussions between them, comprehensively taking into account and reviewing the scale of the Joint Holding Company as well as other circumstances, within the scope of the provisions under Article 53 of the Regulations for Corporate Accounting.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Matters Regarding the Reasonableness of Determination Concerning Matters Specified in Article 773, Paragraph (1), Items 9 and 10 of the Companies Act** 

Upon the Share Transfer, the Joint Holding Company shall issue the share options of the Joint Holding Company listed in Column (2) below, to each holder of the share options issued by Nissei as of the Record Time (*i.e.*, immediately before the time of acquisition of all of the outstanding shares of the Companies) as listed in Column (1) under items (i) through (xv) below, in lieu of the share options of Nissei held by the respective holders, in an amount that is double the aggregate number of such share options at the time of the Record Time.

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| | | | | |
|:---|:---|:---|:---|:---|
| Items | Column (1) | Column (1) | Column (2) | Column (2) |
|  | Title | Details | Title | Details |
| (i) | Series 1 Share Options | Exhibit 2 (Note) (i) | Series 1 Share Options | Exhibit 3 (Note) (i) |
| (ii) | Series 2 Share Options | Exhibit 2 (Note) (ii) | Series 2 Share Options | Exhibit 3 (Note) (ii) |
| (iii) | Series 3 Share Options | Exhibit 2 (Note) (iii) | Series 3 Share Options | Exhibit 3 (Note) (iii) |
| (iv) | Series 4 Share Options | Exhibit 2 (Note) (iv) | Series 4 Share Options | Exhibit 3 (Note) (iv) |
| (v) | Series 5 Share Options | Exhibit 2 (Note) (v) | Series 5 Share Options | Exhibit 3 (Note) (v) |
| (vi) | Series 6 Share Options | Exhibit 2 (Note) (vi) | Series 6 Share Options | Exhibit 3 (Note) (vi) |
| (vii) | Series 7 Share Options | Exhibit 2 (Note) (vii) | Series 7 Share Options | Exhibit 3 (Note) (vii) |
| (viii) | Series 8 Share Options | Exhibit 2 (Note) (viii) | Series 8 Share Options | Exhibit 3 (Note) (viii) |
| (ix) | Series 9 Share Options | Exhibit 2 (Note) (ix) | Series 9 Share Options | Exhibit 3 (Note) (ix) |
| (x) | Series 10 Share Options | Exhibit 2 (Note) (x) | Series 10 Share Options | Exhibit 3 (Note) (x) |
| (xi) | Series 11 Share Options | Exhibit 2 (Note) (xi) | Series 11 Share Options | Exhibit 3 (Note) (xi) |
| (xii) | Series 12 Share Options | Exhibit 2 (Note) (xii) | Series 12 Share Options | Exhibit 3 (Note) (xii) |
| (xiii) | Series 13 Share Options | Exhibit 2 (Note) (xiii) | Series 13 Share Options | Exhibit 3 (Note) (xiii) |
| (xiv) | Series 14 Share Options | Exhibit 2 (Note) (xiv) | Series 14 Share Options | Exhibit 3 (Note) (xiv) |
| (xv) | Series 15 Share Options | Exhibit 2 ((Note) (xv) | Series 15 Share Options | Exhibit 3 (Note) (xv) |

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&nbsp;&nbsp;&nbsp;&nbsp;(Note) Exhibit 2 and Exhibit 3 respectively indicate Exhibits 2 and 3 of "THE SHARE TRANSFER PLAN (Copy)" set forth in section 2. "Outline of the Share Transfer Plan" above.

Upon the Share Transfer, the Holding Company shall, to each holder of the share options issued by Nissei as of the Record Time, allot two (2) share options of the Holding Company listed in Column (2) for each share option listed in Column (1) under items (i) through (xv) in the table above held by such holder.

We have judged that such treatment is appropriate considering that the purpose is to issue share options of the Joint Holding Company that are substantially the same in content and number as the share options which are the target of the allotment, subject to the Share Transfer Ratio of the Share Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Matters Regarding Nissei** 

<br> (1) The details of financial statements and the like for the final business year (ending March 2025)

The details of financial statements and the like of Nissei for the business year ending March 2025 are posted on the Company's website (https://www.toyo-invx.com/ir/meeting/) and TSE's website, which are omitted pursuant to the laws, regulations and provisions of Article 15 of the Articles of Incorporation of the Company.

<br> (2) The details of the incidents that have significant effect to the status of the corporate property that occurred after the end of the final business year

(Distribution of Dividend of Surplus)

Nissei is scheduled to distribute the dividend of JPY 21.0 per share, the record date of which is March 31, 2026.

(Cancellation of Treasury Shares)

Nissei is scheduled to cancel its treasury shares which are currently held or to be newly obtained hereinafter, to the extent practically allowable to cancel, before the Effective Date of the Share Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Details of Incidents That Have Significant Effect to the Status of the Company's Property Including Disposition of Material Assets And Burden of Material Obligations That Occurred After the End of the Final Business Year of the Company** 

(Execution of A Memorandum of Understanding Towards Acquisition of Shares (Acquiring as A Subsidiary))

The Company has passed a resolution at its Board of Directors held on June 24, 2025 to enter into a Memorandum of Understanding towards an acquisition of shares to review the acquiring, as a subsidiary, of GM-Injection AG (head office: Canton of Zug, Swiss Confederation), an equity method affiliate of the Company.

(Distribution of Dividend of Surplus)

The Company is scheduled to distribute the dividend of JPY 17.5 per share, the record date of which is March 31, 2026.

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(Cancellation of Treasury Shares)

The Company is scheduled to cancel its treasury shares which are currently held or to be newly obtained hereinafter, to the extent practically allowable to cancel, before the Effective Date of the Share Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Matters Stipulated in Article 74 of the Regulations for Enforcement of the Companies Act Regarding Persons Who Shall Become Directors of the Joint Holding Company (Excluding Those Who Are Audit and Supervisory Committee Members Thereof)** 

The persons to be Directors of the Joint Holding Company (excluding those who are Audit and Supervisory Committee Members thereof) are as described below.

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate<br> No. | Name<br> (Date of birth) | Career summary, positions, responsibilities and significant<br> concurrent positions | Career summary, positions, responsibilities and significant<br> concurrent positions | Number of<br> the Company's shares owned |
| 1 | Hozumi YODA<br> (July 30, 1963) | July 1989 | Joined Nissei | 0 |
| 1 | Hozumi YODA<br> (July 30, 1963) | May 1999 | Director and Vice President of NISSEI AMERICA, INC. | Number of<br> Nissei's<br> shares owned |
| 1 | Hozumi YODA<br> (July 30, 1963) | June 1999 | Director of Nissei | 621210 |
| 1 | Hozumi YODA<br> (July 30, 1963) | April 2001 | President and Representative Director of Nissei (current position) | Number of<br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 1 | Hozumi YODA<br> (July 30, 1963) | January 2020 | Chairman of NEGRI BOSSI S.P.A. (current position) | Number of<br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 1 | Hozumi YODA<br> (July 30, 1963) | July 2021 | Chairman of NISSEI AMERICA, INC. (current position) | 1242420 |
| 1 | [Reasons for nomination as a candidate for Director]<br> For Nissei, Mr. Hozumi YODA has served as Director for 26 years and Representative Director for 24 years, demonstrated strong leadership and contributed to the improvement of corporate value. He is strongly motivated to keep aiming for sustainable growth and the improvement of corporate value. We have judged that he is an appropriate person to manage the Joint Holding Company to be newly established and thus hereby propose him as a candidate for Director thereof.  | [Reasons for nomination as a candidate for Director]<br> For Nissei, Mr. Hozumi YODA has served as Director for 26 years and Representative Director for 24 years, demonstrated strong leadership and contributed to the improvement of corporate value. He is strongly motivated to keep aiming for sustainable growth and the improvement of corporate value. We have judged that he is an appropriate person to manage the Joint Holding Company to be newly established and thus hereby propose him as a candidate for Director thereof.  | [Reasons for nomination as a candidate for Director]<br> For Nissei, Mr. Hozumi YODA has served as Director for 26 years and Representative Director for 24 years, demonstrated strong leadership and contributed to the improvement of corporate value. He is strongly motivated to keep aiming for sustainable growth and the improvement of corporate value. We have judged that he is an appropriate person to manage the Joint Holding Company to be newly established and thus hereby propose him as a candidate for Director thereof.  | [Reasons for nomination as a candidate for Director]<br> For Nissei, Mr. Hozumi YODA has served as Director for 26 years and Representative Director for 24 years, demonstrated strong leadership and contributed to the improvement of corporate value. He is strongly motivated to keep aiming for sustainable growth and the improvement of corporate value. We have judged that he is an appropriate person to manage the Joint Holding Company to be newly established and thus hereby propose him as a candidate for Director thereof.  |

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate<br> No. | Name<br> (Date of birth) | Career summary, positions, responsibilities and significant<br> concurrent positions | Career summary, positions, responsibilities and significant<br> concurrent positions | Number of<br> the<br> Company's<br> shares owned |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | April 1985 | Joined Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) | 32600 |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | April 2002 | General Manager of China Department,<br> Overseas Sales Division | 32600 |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | October 2003 | General Manager of Asia Department, Overseas Sales Division | Number of<br> Nissei's<br> shares owned |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | June 2011 | Executive Officer, Deputy General Manager of Sales Division, General Manager of South Asia Sales Department and General Manager of Europe & U.S. Sales Department | Number of<br> Nissei's<br> shares owned |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | June 2011 | Executive Officer, Deputy General Manager of Sales Division, General Manager of South Asia Sales Department and General Manager of Europe & U.S. Sales Department | 100 |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | January 2013 | Executive Officer, Deputy General Manager of Sales Division | Number of<br> the Joint<br> Holding Company's<br> shares to be<br> allotted |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | June 2014 | Director, General Manager of Overseas Sales Division | Number of<br> the Joint<br> Holding Company's<br> shares to be<br> allotted |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | January 2015 | Director, General Manager of Sales Administrative Division and General Manager of Overseas Sales Division | Number of<br> the Joint<br> Holding Company's<br> shares to be<br> allotted |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | June 2018 | Managing Director, General Manager of Sales Administrative Division | 49426 |
| 2 | Yoshiaki TABATA<br> (October 30, 1961) | June 2019 | President and Representative Director (current position) | 49426 |
| 2 | [Reasons for nomination as a candidate for Director]<br> Since assuming the office of Representative Director of Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) in June 2019, Mr. Yoshiaki TABATA has been appropriately engaged in the supervision of management and determination of important matters based on his wealth of overseas experience and advanced insight accumulated through serving as the leader of the sales divisions for many years. We have judged that he is expected to contribute to improving corporate value by drawing on these experiences and insight and thus hereby propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since assuming the office of Representative Director of Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) in June 2019, Mr. Yoshiaki TABATA has been appropriately engaged in the supervision of management and determination of important matters based on his wealth of overseas experience and advanced insight accumulated through serving as the leader of the sales divisions for many years. We have judged that he is expected to contribute to improving corporate value by drawing on these experiences and insight and thus hereby propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since assuming the office of Representative Director of Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) in June 2019, Mr. Yoshiaki TABATA has been appropriately engaged in the supervision of management and determination of important matters based on his wealth of overseas experience and advanced insight accumulated through serving as the leader of the sales divisions for many years. We have judged that he is expected to contribute to improving corporate value by drawing on these experiences and insight and thus hereby propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since assuming the office of Representative Director of Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) in June 2019, Mr. Yoshiaki TABATA has been appropriately engaged in the supervision of management and determination of important matters based on his wealth of overseas experience and advanced insight accumulated through serving as the leader of the sales divisions for many years. We have judged that he is expected to contribute to improving corporate value by drawing on these experiences and insight and thus hereby propose him as a candidate for Director of the Joint Holding Company to be newly established. |

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate<br> No. | Name<br> (Date of birth) | Career summary, positions, responsibilities and significant<br> concurrent positions | Career summary, positions, responsibilities and significant<br> concurrent positions | Number of<br> the<br> Company's<br> shares owned |
| 3 | Akihiko IMAI<br> (September 3, 1964) | October 1991 | Joined Nissei | 0 |
| 3 | Akihiko IMAI<br> (September 3, 1964) | June 2008 | General Manager of the Planning Section, Corporate Planning Department of Nissei | 0 |
| 3 | Akihiko IMAI<br> (September 3, 1964) | July 2010 | General Manager of the Corporate Planning Section, Corporate Planning Department of Nissei | Number of<br> Nissei's<br> shares owned |
| 3 | Akihiko IMAI<br> (September 3, 1964) | July 2019 | Deputy General Manager of the Corporate Planning Department and General Manager of the Manufacturing and Sales Planning Department of Nissei | Number of<br> Nissei's<br> shares owned |
| 3 | Akihiko IMAI<br> (September 3, 1964) | July 2019 | Deputy General Manager of the Corporate Planning Department and General Manager of the Manufacturing and Sales Planning Department of Nissei | 2500 |
| 3 | Akihiko IMAI<br> (September 3, 1964) | June 2023 | Operating Officer and General Manager of the Corporate Planning Department of Nissei | 2500 |
| 3 | Akihiko IMAI<br> (September 3, 1964) | June 2024 | Director in charge of the Internal Audit Department, the Corporate Planning Department, the Human Resources Department, the General Affairs Department, compliance and risk management of Nissei;<br> Representative Director and Chairman of NISSEI TECHNICA CO., LTD. (current position) | Number of<br> the Joint<br> Holding Company's<br> shares to be<br> allotted |
| 3 | Akihiko IMAI<br> (September 3, 1964) | June 2025 | Managing Director in charge of the Internal Audit Department, the Corporate Planning Department, the Human Resources Department, compliance and risk management of Nissei (current position) | 5000 |
| 3 | [Reasons for nomination as a candidate for Director]<br> Since joining Nissei, Mr. Akihiko IMAI has established a familiarity with the operations of the Corporate Planning Department from his experience with the General Affairs Department and NISSEI TECHNICA CO., LTD., and through extensive experience working in the Corporate Planning Department. As Director, he has undertaken a broad role, including drafting management strategies, and running briefing meetings on the management, for IR, etc. Considering that he has also achieved results in promoting the strengthening of compliance systems and risk management structures, we have judged that he is expected to contribute to the corporate development as Director and thus hereby propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since joining Nissei, Mr. Akihiko IMAI has established a familiarity with the operations of the Corporate Planning Department from his experience with the General Affairs Department and NISSEI TECHNICA CO., LTD., and through extensive experience working in the Corporate Planning Department. As Director, he has undertaken a broad role, including drafting management strategies, and running briefing meetings on the management, for IR, etc. Considering that he has also achieved results in promoting the strengthening of compliance systems and risk management structures, we have judged that he is expected to contribute to the corporate development as Director and thus hereby propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since joining Nissei, Mr. Akihiko IMAI has established a familiarity with the operations of the Corporate Planning Department from his experience with the General Affairs Department and NISSEI TECHNICA CO., LTD., and through extensive experience working in the Corporate Planning Department. As Director, he has undertaken a broad role, including drafting management strategies, and running briefing meetings on the management, for IR, etc. Considering that he has also achieved results in promoting the strengthening of compliance systems and risk management structures, we have judged that he is expected to contribute to the corporate development as Director and thus hereby propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since joining Nissei, Mr. Akihiko IMAI has established a familiarity with the operations of the Corporate Planning Department from his experience with the General Affairs Department and NISSEI TECHNICA CO., LTD., and through extensive experience working in the Corporate Planning Department. As Director, he has undertaken a broad role, including drafting management strategies, and running briefing meetings on the management, for IR, etc. Considering that he has also achieved results in promoting the strengthening of compliance systems and risk management structures, we have judged that he is expected to contribute to the corporate development as Director and thus hereby propose him as a candidate for Director of the Joint Holding Company to be newly established. |

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate<br> No. | Name<br> (Date of birth) | Career summary, positions, responsibilities and significant<br> concurrent positions | Career summary, positions, responsibilities and significant<br> concurrent positions | Number of<br> the<br> Company's<br> shares owned |
| 4 | Masato SAKAI<br> (April 12, 1969) | April 1992 | Joined Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) | 31800 |
| 4 | Masato SAKAI<br> (April 12, 1969) | May 2011 | General Manager of Accounting Division | Number of <br> Nissei's<br> shares owned |
| 4 | Masato SAKAI<br> (April 12, 1969) | April 2018 | General Manager, Corporate Planning Office and General Manager of Accounting Division | 0 |
| 4 | Masato SAKAI<br> (April 12, 1969) | June 2019 | Executive Officer, General Manager, Corporate Planning Office and General Manager of Accounting Division (current position) | Number of <br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 4 | Masato SAKAI<br> (April 12, 1969) | June 2019 | Executive Officer, General Manager, Corporate Planning Office and General Manager of Accounting Division (current position) | 48018 |
| 4 | [Reasons for nomination as a candidate for Director]<br> Since joining Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) in April 1992, Mr. Masato SAKAI has amassed experience in the accounting division, and abundant expertise in financial and accounting matters. Also, since assuming the office of Corporate Officer, he has taken the initiative in facilitating formulation and implementation of managerial and financial strategies. We have judged that he is expected to contribute to improving corporate value by drawing on these experiences and expertise and thus propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since joining Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) in April 1992, Mr. Masato SAKAI has amassed experience in the accounting division, and abundant expertise in financial and accounting matters. Also, since assuming the office of Corporate Officer, he has taken the initiative in facilitating formulation and implementation of managerial and financial strategies. We have judged that he is expected to contribute to improving corporate value by drawing on these experiences and expertise and thus propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since joining Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) in April 1992, Mr. Masato SAKAI has amassed experience in the accounting division, and abundant expertise in financial and accounting matters. Also, since assuming the office of Corporate Officer, he has taken the initiative in facilitating formulation and implementation of managerial and financial strategies. We have judged that he is expected to contribute to improving corporate value by drawing on these experiences and expertise and thus propose him as a candidate for Director of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Since joining Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) in April 1992, Mr. Masato SAKAI has amassed experience in the accounting division, and abundant expertise in financial and accounting matters. Also, since assuming the office of Corporate Officer, he has taken the initiative in facilitating formulation and implementation of managerial and financial strategies. We have judged that he is expected to contribute to improving corporate value by drawing on these experiences and expertise and thus propose him as a candidate for Director of the Joint Holding Company to be newly established. |

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(Note 1) The respective numbers of shares of the Company and Nissei that are owned are specified in accordance with the status of ownership as of December 5, 2025; and the numbers of the Joint Holding Company's shares to be allotted are specified in accordance with such status of ownership and taking into account the Share Transfer Ratio. For the avoidance of doubt, the number of shares of the Joint Holding Company to be actually allotted may change subject to the number of shares owned immediately before the date of establishment of the Joint Holding Company.

(Note 2) There is no special interest between each candidate and the Company and/or Nissei, and it is not expected that a special interest between each candidate and the Joint Holding Company would arise.

(Note 3) Upon assumption of office by each candidate for Director, it is expected that the Joint Holding Company will enter into a directors and officers liability insurance agreement as provided for under Article 430-3, Paragraph (1) of the Companies Act (hereinafter the "**D&O Insurance Agreement**") with an insurance company whereby all Directors including those who are Audit and Supervisory Committee Members shall be the insureds, and legal damages, litigation expenses and the like to be borne by the insureds shall be indemnified.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Matters Stipulated in Article 74-3 of the Regulations for Enforcement of the Companies Act Regarding Persons Who Shall Become Directors Who Are Audit and Supervisory Committee Members of the Joint Holding Company** 

The persons to be Directors of the Joint Holding Company who are Audit and Supervisory Committee Members thereof are as described below.

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate<br> No. | Name<br> (Date of birth) | Career summary, positions, responsibilities and significant<br> concurrent positions | Career summary, positions, responsibilities and significant<br> concurrent positions | Number of<br> the<br> Company's<br> shares owned |
| 1 | Stephen Bruce MOORE<br> (October 6, 1966) | January 1992 | Joined McGraw-Hill Inc.<br> Chief of Asia Pacific Region, Modern Plastics magazine | 0 |
| 1 | Stephen Bruce MOORE<br> (October 6, 1966) | October 1999 | Joined Chemical Week<br> Editor in charge of Asia Pacific Region | Number of<br> Nissei's<br> shares owned |
| 1 | Stephen Bruce MOORE<br> (October 6, 1966) | April 2009 | Joined Intercedent Asia Pte. Ltd.<br> Director and Manager of Precision Engineering Research | Number of<br> Nissei's<br> shares owned |
| 1 | Stephen Bruce MOORE<br> (October 6, 1966) | April 2009 | Joined Intercedent Asia Pte. Ltd.<br> Director and Manager of Precision Engineering Research | 0 |
| 1 | Stephen Bruce MOORE<br> (October 6, 1966) | June 2021 | CEO, MLT Analytics Pte. Ltd. (current position) | Number of<br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 1 | Stephen Bruce MOORE<br> (October 6, 1966) | June 2022 | Outside Director of Nissei (current position) | Number of<br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 1 | Stephen Bruce MOORE<br> (October 6, 1966) | June 2022 | Outside Director of Nissei (current position) | 0 |
| 1 | [Reasons for nomination as a candidate for Director]<br> Mr. Stephen Bruce MOORE held the positions of a journalist, a researcher and a Director at a magazine publisher specializing in the plastics industry, and at a research firm. With a global perspective, he is familiar with the plastics industry in general and has acquired advanced knowledge. He also has prominent level of expertise regarding corporate management as CEO of MLT Analytics Pte. Ltd. As an Outside Director and independent officer of Nissei, he provides useful opinions and advice from a global and objective viewpoint. We have judged that he is expected to contribute to the supervision of the management and global development as an Outside Director and Audit and Supervisory Committee Member and thus hereby propose him as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Mr. Stephen Bruce MOORE held the positions of a journalist, a researcher and a Director at a magazine publisher specializing in the plastics industry, and at a research firm. With a global perspective, he is familiar with the plastics industry in general and has acquired advanced knowledge. He also has prominent level of expertise regarding corporate management as CEO of MLT Analytics Pte. Ltd. As an Outside Director and independent officer of Nissei, he provides useful opinions and advice from a global and objective viewpoint. We have judged that he is expected to contribute to the supervision of the management and global development as an Outside Director and Audit and Supervisory Committee Member and thus hereby propose him as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Mr. Stephen Bruce MOORE held the positions of a journalist, a researcher and a Director at a magazine publisher specializing in the plastics industry, and at a research firm. With a global perspective, he is familiar with the plastics industry in general and has acquired advanced knowledge. He also has prominent level of expertise regarding corporate management as CEO of MLT Analytics Pte. Ltd. As an Outside Director and independent officer of Nissei, he provides useful opinions and advice from a global and objective viewpoint. We have judged that he is expected to contribute to the supervision of the management and global development as an Outside Director and Audit and Supervisory Committee Member and thus hereby propose him as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Mr. Stephen Bruce MOORE held the positions of a journalist, a researcher and a Director at a magazine publisher specializing in the plastics industry, and at a research firm. With a global perspective, he is familiar with the plastics industry in general and has acquired advanced knowledge. He also has prominent level of expertise regarding corporate management as CEO of MLT Analytics Pte. Ltd. As an Outside Director and independent officer of Nissei, he provides useful opinions and advice from a global and objective viewpoint. We have judged that he is expected to contribute to the supervision of the management and global development as an Outside Director and Audit and Supervisory Committee Member and thus hereby propose him as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. |

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate<br> No. | Name<br> (Date of birth) | Career summary, positions, responsibilities and significant<br> concurrent positions | Career summary, positions, responsibilities and significant<br> concurrent positions | Number of<br> the<br> Company's<br> shares owned |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | April 1981 | Joined Research Institute of Mitsui Knowledge Industry Co., Ltd. | 0 |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | July 1991 | Resigned from Mitsui Knowledge Industry Co., Ltd. | 0 |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | August 1992 | Joined McKinsey & Company Inc., Japan | Number of <br> Nissei's<br> shares owned |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | January 2011 | Resigned from McKinsey & Company Inc., Japan<br> Representative of Office Phronesis (current position)<br> Secretary General and Board Member of IMPACT Foundation Japan (general incorporated association) | Number of <br> Nissei's<br> shares owned |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | January 2011 | Resigned from McKinsey & Company Inc., Japan<br> Representative of Office Phronesis (current position)<br> Secretary General and Board Member of IMPACT Foundation Japan (general incorporated association) | 2600 |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | March 2012 | Secretary General of Public Resource Foundation (public interest incorporated foundation) (current position) | Number of <br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | November 2015 | President of Women Help Women (general incorporated association) (current position) | Number of <br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | September 2017 | Chairperson of Japan Business Model Association (specified non-profit organization) (current position) | Number of <br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | August 2019 | Director of RINNE Co., Ltd. (current position) | 5200 |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | June 2020 | Outside Corporate Auditor of Nissei | 5200 |
| 2 | Haruko NISHIDA<br> (August 6, 1957) | June 2022 | Outside Director of Nissei (Audit and Supervisory Committee Member) (current position) | 5200 |
| 2 | [Reasons for nomination as a candidate for Director]<br> Ms. Haruko NISHIDA has been engaged in the operation of a non-profit organization as Chairperson of a general incorporated association, etc. for many years and has abundant knowledge and deep insight related to company management and governance based on her past working experience. She has been performing her duties and fulfilling her responsibilities as an outside Corporate Auditor of Nissei. We have judged that she is expected to contribute to strengthening of the audit and supervisory functions from an objective viewpoint as an Outside Director and an independent officer who is an Audit and Supervisory Committee Member, as well as to provide valuable advice for enhancing compliance and corporate governance and thus we hereby propose her as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Ms. Haruko NISHIDA has been engaged in the operation of a non-profit organization as Chairperson of a general incorporated association, etc. for many years and has abundant knowledge and deep insight related to company management and governance based on her past working experience. She has been performing her duties and fulfilling her responsibilities as an outside Corporate Auditor of Nissei. We have judged that she is expected to contribute to strengthening of the audit and supervisory functions from an objective viewpoint as an Outside Director and an independent officer who is an Audit and Supervisory Committee Member, as well as to provide valuable advice for enhancing compliance and corporate governance and thus we hereby propose her as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Ms. Haruko NISHIDA has been engaged in the operation of a non-profit organization as Chairperson of a general incorporated association, etc. for many years and has abundant knowledge and deep insight related to company management and governance based on her past working experience. She has been performing her duties and fulfilling her responsibilities as an outside Corporate Auditor of Nissei. We have judged that she is expected to contribute to strengthening of the audit and supervisory functions from an objective viewpoint as an Outside Director and an independent officer who is an Audit and Supervisory Committee Member, as well as to provide valuable advice for enhancing compliance and corporate governance and thus we hereby propose her as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Ms. Haruko NISHIDA has been engaged in the operation of a non-profit organization as Chairperson of a general incorporated association, etc. for many years and has abundant knowledge and deep insight related to company management and governance based on her past working experience. She has been performing her duties and fulfilling her responsibilities as an outside Corporate Auditor of Nissei. We have judged that she is expected to contribute to strengthening of the audit and supervisory functions from an objective viewpoint as an Outside Director and an independent officer who is an Audit and Supervisory Committee Member, as well as to provide valuable advice for enhancing compliance and corporate governance and thus we hereby propose her as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. |

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate<br> No. | Name<br> (Date of birth) | Career summary, positions, responsibilities and significant<br> concurrent positions | Career summary, positions, responsibilities and significant<br> concurrent positions | Number of <br> the<br> Company's<br> shares owned |
| 3 | Amane SAWA<br> (August 8, 1976) | April 1999 | Joined Asahi & Co. (currently KPMG AZSA LLC) | 0 |
| 3 | Amane SAWA<br> (August 8, 1976) | April 2002 | Registered as certified public accountant | Number of<br> Nissei's<br> shares owned |
| 3 | Amane SAWA<br> (August 8, 1976) | September 2009 | Joined KPMG Tax Corporation<br> Part-time Lecturer, Institute of Business and Accounting, Professional Graduate School, Kwansei Gakuin University | Number of<br> Nissei's<br> shares owned |
| 3 | Amane SAWA<br> (August 8, 1976) | September 2009 | Joined KPMG Tax Corporation<br> Part-time Lecturer, Institute of Business and Accounting, Professional Graduate School, Kwansei Gakuin University | 0 |
| 3 | Amane SAWA<br> (August 8, 1976) | December 2009 | Registered as certified tax accountant | 0 |
| 3 | Amane SAWA<br> (August 8, 1976) | April 2011 | Established Sawa CPA Office, Representative (current position) | Number of<br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 3 | Amane SAWA<br> (August 8, 1976) | June 2023 | Outside Audit & Supervisory Board Member of TOA Corporation (current position) | Number of<br> the Joint<br> Holding<br> Company's<br> shares to be<br> allotted |
| 3 | Amane SAWA<br> (August 8, 1976) | June 2024 | Outside Corporate Auditor of Toyo Machinery & Metal Co., Ltd. (currently, TOYO INNOVEX Co., Ltd.) (current position) | 0 |
| 3 | [Reasons for nomination as a candidate for Director]<br> In addition to his perspective as a professional versed in corporate accounting as a certified public accountant and certified tax accountant, Mr. Amane SAWA has advanced insight on overall management and global experience through due diligence services for corporate acquisitions overseas, as well as support to administer foreign subsidiaries and the like. While he has no experience in corporate management in the past other than serving as an outside corporate officer, however, we have judged that he is expected to, building on the aforesaid abundant professional experience, conduct auditing activities and provide advice and recommendations from financial and accounting aspects to ensure the appropriateness of the execution of business by Directors from a neutral and objective viewpoint as well as shoulder auditing activities through exercising voting rights at the Board of Directors and thus hereby propose him as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> In addition to his perspective as a professional versed in corporate accounting as a certified public accountant and certified tax accountant, Mr. Amane SAWA has advanced insight on overall management and global experience through due diligence services for corporate acquisitions overseas, as well as support to administer foreign subsidiaries and the like. While he has no experience in corporate management in the past other than serving as an outside corporate officer, however, we have judged that he is expected to, building on the aforesaid abundant professional experience, conduct auditing activities and provide advice and recommendations from financial and accounting aspects to ensure the appropriateness of the execution of business by Directors from a neutral and objective viewpoint as well as shoulder auditing activities through exercising voting rights at the Board of Directors and thus hereby propose him as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> In addition to his perspective as a professional versed in corporate accounting as a certified public accountant and certified tax accountant, Mr. Amane SAWA has advanced insight on overall management and global experience through due diligence services for corporate acquisitions overseas, as well as support to administer foreign subsidiaries and the like. While he has no experience in corporate management in the past other than serving as an outside corporate officer, however, we have judged that he is expected to, building on the aforesaid abundant professional experience, conduct auditing activities and provide advice and recommendations from financial and accounting aspects to ensure the appropriateness of the execution of business by Directors from a neutral and objective viewpoint as well as shoulder auditing activities through exercising voting rights at the Board of Directors and thus hereby propose him as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> In addition to his perspective as a professional versed in corporate accounting as a certified public accountant and certified tax accountant, Mr. Amane SAWA has advanced insight on overall management and global experience through due diligence services for corporate acquisitions overseas, as well as support to administer foreign subsidiaries and the like. While he has no experience in corporate management in the past other than serving as an outside corporate officer, however, we have judged that he is expected to, building on the aforesaid abundant professional experience, conduct auditing activities and provide advice and recommendations from financial and accounting aspects to ensure the appropriateness of the execution of business by Directors from a neutral and objective viewpoint as well as shoulder auditing activities through exercising voting rights at the Board of Directors and thus hereby propose him as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. |

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| | | | | |
|:---|:---|:---|:---|:---|
| Candidate<br> No. | Name<br> (Date of birth) | Career summary, positions, responsibilities and significant<br> concurrent positions | Career summary, positions, responsibilities and significant<br> concurrent positions | Number of the<br> Company's<br> shares owned |
| 4 | Yasuko YOKOSAWA<br> (June 11, 1977) | October 2002 | Registered at Daiichi Tokyo Bar Association<br> Joined TMI Associates | 0 |
| 4 | Yasuko YOKOSAWA<br> (June 11, 1977) | April 2010 | Seconded to Yahoo Japan Corporation (currently, LY Corporation) | Number of<br> Nissei's shares owned |
| 4 | Yasuko YOKOSAWA<br> (June 11, 1977) | January 2017 | Counsel of TMI Associates (current position) | 0 |
| 4 | Yasuko YOKOSAWA<br> (June 11, 1977) | August 2018 | Outside Director, Audit & Supervisory Committee Member, Sansan, Inc. | Number of the<br> Joint Holding Company's<br> shares to be<br> allotted |
| 4 | Yasuko YOKOSAWA<br> (June 11, 1977) | August 2018 | Outside Director, Audit & Supervisory Committee Member, Sansan, Inc. | 0 |
| 4 | [Reasons for nomination as a candidate for Director]<br> Ms. Yasuko YOKOSAWA has professional knowledge and broad insight on corporate legal affairs, compliance and the like as an attorney-at-law. While she has no experience in corporate management in the past other than serving as an outside corporate officer, however, we have judged that she is expected to, building on the aforesaid abundant professional experience as an attorney-at-law, conduct auditing activities and provide advice and recommendations from legal aspects to ensure the appropriateness of the execution of business by Directors from a neutral and objective viewpoint as well as shoulder auditing activities through exercising voting rights at the Board of Directors and thus hereby propose her as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Ms. Yasuko YOKOSAWA has professional knowledge and broad insight on corporate legal affairs, compliance and the like as an attorney-at-law. While she has no experience in corporate management in the past other than serving as an outside corporate officer, however, we have judged that she is expected to, building on the aforesaid abundant professional experience as an attorney-at-law, conduct auditing activities and provide advice and recommendations from legal aspects to ensure the appropriateness of the execution of business by Directors from a neutral and objective viewpoint as well as shoulder auditing activities through exercising voting rights at the Board of Directors and thus hereby propose her as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Ms. Yasuko YOKOSAWA has professional knowledge and broad insight on corporate legal affairs, compliance and the like as an attorney-at-law. While she has no experience in corporate management in the past other than serving as an outside corporate officer, however, we have judged that she is expected to, building on the aforesaid abundant professional experience as an attorney-at-law, conduct auditing activities and provide advice and recommendations from legal aspects to ensure the appropriateness of the execution of business by Directors from a neutral and objective viewpoint as well as shoulder auditing activities through exercising voting rights at the Board of Directors and thus hereby propose her as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. | [Reasons for nomination as a candidate for Director]<br> Ms. Yasuko YOKOSAWA has professional knowledge and broad insight on corporate legal affairs, compliance and the like as an attorney-at-law. While she has no experience in corporate management in the past other than serving as an outside corporate officer, however, we have judged that she is expected to, building on the aforesaid abundant professional experience as an attorney-at-law, conduct auditing activities and provide advice and recommendations from legal aspects to ensure the appropriateness of the execution of business by Directors from a neutral and objective viewpoint as well as shoulder auditing activities through exercising voting rights at the Board of Directors and thus hereby propose her as a candidate for an Outside Director who is an Audit and Supervisory Committee Member of the Joint Holding Company to be newly established. |

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(Note 1) The respective numbers of shares of the Company and Nissei that are owned are specified in accordance with the status of ownership as of December 5, 2025; and the numbers of the Joint Holding Company's shares to be allotted are specified in accordance with such status of ownership and taking into account of the Share Transfer Ratio. For the avoidance of doubt, the number of shares of the Joint Holding Company to be actually allotted may change subject to the number of shares owned immediately before the date of establishment of the Joint Holding Company.

(Note 2) There is no special interest between each candidate and the Company and/or Nissei, and it is not expected that a special interest between each candidate and the Joint Holding Company would arise.

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(Note 3) Mr. Stephen Bruce MOORE, Ms. Haruko NISHIDA, Mr. Amane SAWA, and Ms. Yasuko YOKOSAWA are candidates for Outside Directors who are Audit and Supervisory Committee Members.

(Note 4) Upon appointment of Mr. Stephen Bruce MOORE, Ms. Haruko NISHIDA, Mr. Amane SAWA, and Ms. Yasuko YOKOSAWA as Outside Directors who serve as Audit and Supervisory Committee Members, the Joint Holding Company is expected to file them at the Tokyo Stock Exchange as independent directors having no potential conflicts of interest with general shareholders.

(Note 5) Upon assumption of office by respective candidate Directors who serve as Audit and Supervisory Committee members, the Joint Holding Company and each Director are expected to enter into a liability limitation agreement to limit liability for damages under Article 423, Paragraph 1 of the Companies Act, based on the provisions under Article 427, Paragraph 1 of the same Act.

(Note 6) Upon assumption of office by each candidate for Director, it is expected that the Joint Holding Company will enter into the D&O Insurance Agreement as provided for under Article 430-3, paragraph (1) of the Companies Act with an insurance company whereby all Directors including those who serve as Audit and Supervisory Committee Member shall be the insureds, and legal damages, litigation expenses and the like to be borne by the insureds shall be indemnified.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Matters Stipulated in Article 77 of the Regulations for Enforcement of the Companies Act Regarding the Entity Which Shall Become the Accounting Auditor of the Joint Holding Company** 

The entity which shall become the Accounting Auditor of the Joint Holding Company is as described below.

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| | | |
|:---|:---|:---|
| Name | Grant Thornton Taiyo LLC | Grant Thornton Taiyo LLC |
| Location of Main Office | 22F, AKASAKA K-TOWER, 1-2-7 Moto Akasaka, Minato-ku, Tokyo | 22F, AKASAKA K-TOWER, 1-2-7 Moto Akasaka, Minato-ku, Tokyo |
| History | September 1971 | Established Taiyo Audit Corporation |
| History | January 2006 | Merged with ASG Audit Corporation and changed the name to Grant Thornton Taiyo ASG Audit Corporation |
| History | July 2008 | Became a limited liability audit corporation and changed the name to Grant Thornton Taiyo ASG LLC |
| History | July 2012 | Merged with Eisho Audit Corporation |
| History | October 2013 | Merged with Kasumigaseki Audit Corporation |
| History | October 2014 | Changed the name to Grant Thornton Taiyo LLC |
| History | July 2018 | Merged with YUSEI Audit & Co. |
| Auditee Companies | 1,113 companies | 1,113 companies |

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| | | |
|:---|:---|:---|
| Capital | JPY 551 million | JPY 551 million |
| Members | Certified public accountants:  | 379 persons |
| Members | Person who has passed the certified public accountant examination, etc.:  | 231 persons |
| Members | Others:  | 664 persons |
| Members | Total:  | 1,274 persons |

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&nbsp;&nbsp;&nbsp;&nbsp;(Note) The reason for nomination of Grant Thornton Taiyo LLC as a candidate for Accounting Auditor is that we have judged them appropriate considering that they have expertise, independence, a system for internal control and other capabilities required for the Accounting Auditor of the Joint Holding Company.

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**Proposal 2:** Partial Amendments to the Articles of Incorporation

&nbsp;&nbsp;&nbsp;&nbsp;1. Purposes of the partial amendments to the Articles of Incorporation

Whereas, to smoothly conduct administrative procedures regarding the convocation of annual general meetings of shareholders and other matters, the Company has stipulated, pursuant to the provisions of Article 124, Paragraph 3 of the Companies Act, the record date for its annual general meeting of shareholders in Article 12 (Record Date) of its current Articles of Incorporation, if Proposal 1 above regarding an approval of the Share Transfer Plan pertaining to the Share Transfer is approved and passed at this Extraordinary General Meeting of Shareholders and the Share Transfer becomes effective as of the Effective Date, the Joint Holding Company will be the sole shareholder of the Company, and thus, the provisions regarding the record date for its general meeting of shareholders will become unnecessary. Therefore, the Company will rescind the system of the record date for its annual general meeting of shareholders, delete all of the provisions of Article 12 (Record Date) of the current Articles of Incorporation, and bring forward by one the respective article numbers for Article 12 onward (such partial amendments of the Articles of Incorporation are referred to as the "Amendments to the Articles of Incorporation"). Based on the foregoing, we request approval for amending the Articles of Incorporation as described below.

The Amendments to the Articles of Incorporation shall become effective on March 31, 2026 (Tuesday) on the condition that Proposal 1 above (Matters regarding Approval of the Plan for Share Transfer with NISSEI PLASTIC INDUSTRIAL CO., LTD.) is passed at this Extraordinary General Meeting of Shareholders as proposed, and the Share Transfer Plan pertaining to the Share Transfer remains effective and the Share Transfer Plan is not canceled until the day immediately before March 31, 2026 (Tuesday).

(For Your Reference)

As for the dividend of surplus (term-end dividend) for the term ending in March 2026 (from April 1, 2025 to March 31, 2026), it is scheduled that, pursuant to Article 46, Paragraph 2 of the current Articles of Incorporation (Article 45, Paragraph 2 after the Amendments to the Articles of Incorporation), the Company will pay the same to shareholders or registered pledgees of shares holding common shares of the Company who have been entered or recorded in the last shareholder register on March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;2. Details of the amendments to the Articles of Incorporation

Details of the amendments are as follows:

(Amended parts are underlined.)

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| | |
|:---|:---|
| Current Articles of Incorporation | Proposed amendments |
| Articles 1 to 11 (Text of the provisions omitted)<br>| Articles 1 to 11 (No changes in the current provisions) |
| <u>(Record Date)</u><br><u> </u> <u>Article 12</u><br> 1. <u>The Company shall deem shareholders holding voting rights that have been entered into or recorded in the last shareholder register on March 31 of each year as shareholders who are entitled to exercise their rights at the annual general meeting of shareholders pertaining to the relevant business year.</u> <br> 2. <u>Notwithstanding the provisions of the preceding paragraph, through public notice in advance, as needed, under the resolution of the Board of Directors, the Company may deem that shareholders or registered pledgees of shares who have been entered or recorded in the last shareholder register on a certain day as shareholders who are entitled to exercise their rights.</u>  | <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Deleted) |
| Articles <u>13</u> to <u>48</u> (Text of the provisions omitted)  | Articles <u>12</u> to <u>47</u> (No changes in the current provisions) |

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**Proposal 3:** Matters regarding Partial Amendments to the System of Share Remuneration for Directors (Excluding Outside Directors) with Restriction of Transfer

&nbsp;&nbsp;&nbsp;&nbsp;1. Purpose of the partial amendments to the System

The Company received approval at the 147th Annual General Meeting of Shareholders held on June 25, 2021 (the "**2021Annual General Meeting**") regarding the establishment of a remuneration limit in association with the implementation of the systems of share remuneration for Directors (excluding Outside Directors, the "**Eligible Directors**") with restriction of transfer, and other matters. Among these systems of share remuneration with restriction of transfer, the Company received approval at the 2021 Annual General Meeting, based on a substantial change of the incentive framework between the corporate entity and Eligible Directors upon a merger or other organizational restructuring, etc. under the system regarding restricted stock (the "**System**"), to contain, in the Restricted Share Allotment Agreement, the terms outlined as follows, and other matters: "if a merger agreement whereby the Company becomes a non-surviving company, a stock exchange agreement or stock transfer plan whereby the Company becomes a wholly owned subsidiary or any other matter pertaining to organizational restructuring, etc. is approved by the General Meeting of Shareholders of the Company (or the Board of Directors of the Company if approval by the General Meeting of Shareholders of the Company is not required for the said organizational restructuring, etc.), the Company shall remove, by a resolution of the Board of Directors, the transfer restriction for such number of common shares of the Company that have been allotted under the Restricted Share Allotment Agreement (the "**Stock**") as will be reasonably determined in light of the period from the month following the Annual General Meeting of Shareholders in[for] the year in which the Payment Date falls to the date of the said approval, prior to the effective date of the said organizational restructuring, etc. In addition, in the case specified above, the Company will necessarily acquire without consideration the Stock for which the transfer restriction remains unremoved at the point of time immediately after the transfer restriction is removed."

While the Company will be transformed into the form of a holding company subject to the approval and passing of Proposal 1 above (Matters regarding Approval of the Plan for Share Transfer with NISSEI PLASTIC INDUSTRIAL CO., LTD.) as proposed at this Extraordinary General Meeting of Shareholders, we have judged that a continuous imposition of the restriction on transfer of the restricted shares awarded hitherto to the Eligible Directors under the System, even after the transformation into the form of holding company, would enhance further sharing of values between the Eligible Directors and shareholders, and in conjunction therewith, continuously provide an incentive that contributes to the enhancement of the corporate value of the Joint Holding Company. We also have judged that, in cases where transfer of an Eligible Director takes place within the group of the Joint Holding Company, enabling continuous holding of the Restricted Share Allotment would further increase the willingness to enhance the corporate value of the Joint Holding Company. Based on the foregoing, we would like to request your approval of the amendment to the System as described below. The details of the System other than this amendment shall not be changed and the content that has been previously approved will be maintained.

We consider that the content of this Proposal 3 is appropriate considering that such content is in line with the determination policy on details of individual remunerations and the like for Directors and this Proposal 3 has been deliberated by the Personnel Remuneration Committee, an arbitrary consultive body for the Board of Directors, in which outside officers form a majority and which is chaired by an Outside Director.

Upon approval and passing of this Proposal 3, to reflect the details of amendments to the System specified in this Proposal 3 to the Restricted Share Allotment Agreement pertaining to the restricted shares that have been awarded to the Eligible Directors, prescribed formalities are scheduled to be carried out in accordance with the method set forth in such Restricted Share Allotment Agreement. Furthermore, the Company's contractual status as well as its rights and obligations pertaining to such Restricted Share Allotment Agreement shall be succeeded, as of the Effective Date, subject to the approval and passing of Proposal 1 above (Matters regarding Approval of the Plan for Share Transfer with NISSEI PLASTIC INDUSTRIAL CO., LTD.) as proposed at this Extraordinary General Meeting of Shareholders, by the Joint Holding Company to be established upon the entry into force of the Share Transfer Plan pertaining to the Business Integration.

At present, the number of Directors to be covered by the System shall be four (4).

This Proposal 3 shall become effective on the condition that Proposal 1 above (Matters regarding Approval of the Plan for Share Transfer with NISSEI PLASTIC INDUSTRIAL CO., LTD.) is approved and passed as proposed at this Extraordinary General Meeting of Shareholders.

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&nbsp;&nbsp;&nbsp;&nbsp;2. Details of the amendments to the System

Details of the amendments are as follows:

(Amended parts are underlined.)

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| | |
|:---|:---|
| Current System (Rules on Share Remuneration with Restriction of Transfer) | Proposed Amendments |
| Article 6 (Restricted Stock Allotment Agreement)<br> The Company and the payee shall enter into a restricted stock allotment agreement (the "Allotment Agreement"), that contains the following terms, not later than the payment date of the Shares (the "Payment Date").  | Article 6 (Restricted Stock Allotment Agreement)<br> The Company and the payee shall enter into a restricted stock allotment agreement (the "Allotment Agreement"), that contains the following terms, not later than the payment date of the Shares (the "Payment Date").  |
| (1) Transfer restriction period<br> Eligible Directors may not transfer, create a security interest on, or otherwise dispose of Stock during the period from the payment date of Stock (hereinafter referred to as the "Payment Date") to the point of time when they resign from the position of Director of the Company (hereinafter referred to as the "Transfer Restriction Period").  | (1) Transfer restriction period<br> Eligible Directors may not transfer, create a security interest on, or otherwise dispose of Stock during the period from the <u>day on which the allotment of Stock is awarded</u> (hereinafter referred to as the "<u>Allotment Date</u>") to the point of time when they resign from <u>both positions</u> of Director of the Company <u>and Director of subsidiary of the Company</u> (hereinafter referred to as the "Transfer Restriction Period").  |
| (2) Conditions for removal of transfer restrictions<br> Transfer restriction shall be removed for all of the Stock upon expiration of the Transfer Restriction Period on the condition that an Eligible Director has remained in the position of Director of the Company throughout the Transfer Restriction Period. <br>| (2) Conditions for removal of transfer restrictions<br> Transfer restrictions shall be removed for all of the Stock upon expiration of the Transfer Restriction Period on the condition that an Eligible Director has remained in <u>either of the positions</u> of Director of the Company o<u>r Director of subsidiary of the Company</u> throughout the Transfer Restriction Period.  |
| (3) Reasons for acquisition without consideration<br> The Company shall acquire all of the Stock without consideration if any of the certain events specified in the Allotment Agreement occurs including the final resignation of an Eligible Director from the position of Director of the Company for any reason other than death, expiration of the term of office or other justifiable reasons. | (3) Reasons for acquisition without consideration<br> The Company shall acquire all of the Stock without consideration if any of the certain events specified in the Allotment Agreement occurs including the final resignation of an Eligible Director from <u>both positions</u> of Director of the Company <u>and Director of subsidiary of the Company</u> for any reason other than death, expiration of the term of office or other justifiable reasons. |
| (4) Handling of death and resignation during the term of office<br> Notwithstanding the provision of (2) above, if an Eligible Director dies or resigns from the position of Director of the Company for any other justifiable reason during and before the end of the period from the day following the Annual General Meeting of Shareholders [for the year in which the Payment Date falls], the transfer restriction shall be removed for such number of Stock as will be reasonably determined in light of his or her years of service during the said period. In addition, in the case specified above, the Company will necessarily acquire without consideration the Stock for which the transfer restriction remains unremoved at the point of time immediately after the transfer restriction is removed. | (4) Handling of death and resignation during the term of office<br> Notwithstanding the provision of (2) above, if an Eligible Director dies or resigns from <u>both positions</u> of Director of the Company <u>and Director of subsidiary of the Company</u> for any other justifiable reason during and before the end of the period from the day following the Annual General Meeting of Shareholders for the year in which <u>the Allotment Date</u> falls, the transfer restriction shall be removed for such number of Stock as will be reasonably determined in light of his or her years of service during the said period. In addition, in the case specified above, the Company will necessarily acquire without consideration the Stock for which the transfer restriction remains unremoved at the point of time immediately after the transfer restriction is removed. |
| (5) Handling upon organizational restructuring, etc.<br> Notwithstanding the provisions of (1) and (2) above, if a merger agreement whereby the Company becomes a non-surviving company, a stock exchange agreement or stock transfer plan whereby the Company becomes a wholly owned subsidiary or any other matter pertaining to organizational restructuring, etc. is approved by the General Meeting of Shareholders of the Company (or the Board of Directors of the Company if an approval by the General Meeting of Shareholders of the Company is not required for the said organizational restructuring, etc.), the Company shall remove, by a resolution of the Board of Directors, the transfer restriction for such a number of Stock as will be reasonably determined in light of the period from the month following the Annual General Meeting of Shareholders for the year in which the Payment Date falls to the date of the said approval, prior to the effective date of the said organizational restructuring, etc. In addition, in the case specified above, the Company will necessarily acquire without consideration the Stock for which transfer restriction remains unremoved at the point of time immediately after the transfer restriction is removed. | (5) Handling upon organizational restructuring, etc.<br> Notwithstanding the provisions of (1) and (2) above, if a merger agreement whereby the Company becomes a non-surviving company, a stock exchange agreement or stock transfer plan whereby the Company becomes a wholly owned subsidiary or any other matter pertaining to organizational restructuring, etc. is approved by the General Meeting of Shareholders of the Company (or the Board of Directors of the Company if an approval by the General Meeting of Shareholders of the Company is not required for the said organizational restructuring, etc.), the Company shall remove, by a resolution of the Board of Directors, the transfer restriction for such number of Stock as will be reasonably determined in light of the period from the month following the Annual General Meeting of Shareholders for the year in which <u>the Allotment Date</u> falls to the date of the said approval, prior to the effective date of the said organizational restructuring, etc. (<u>provided, however, this excludes cases where, in the said organizational restructuring, etc., the corporate entity involved in such organizational restructuring, etc. other than the Company issues shares of such corporate entity (limited to shares with restriction of transfer) to an Eligible Director)</u>. <u>In the case specified above,</u> the Company will necessarily acquire without consideration the Stock for which the transfer restriction remains unremoved at the point of time immediately after the transfer restriction is removed. |

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(For Your Reference)

A partial excerpt from the original resolution (at the Annual General Meeting of Shareholders in 2021)

**Proposal 4:** Revision of Compensation Amount for Restricted Stock to Directors (Excluding Outside Directors) and Details Thereof

Whereas the amount of compensation for Directors of the Company was approved to be no more than JPY 200 million per annum (of which up to JPY 20 million for Outside Directors, not including employee salaries and bonuses for Directors who serve concurrently as employees) at the 143rd Annual General Meeting of Shareholders held on June 23, 2017 and whereas the total amount of monetary compensation claims to be paid to Directors of the Company (excluding Outside Directors) for granting restricted stock to them, apart from the above amount of compensation, was approved to be no more than JPY 100 million per annum at the 144th Annual General Meeting of Shareholders held on June 22, 2018, it is presently intended to abolish the existing stock compensation program and newly introduce Restricted Stock Program (hereinafter referred to as "Program I"), whereby a certain number of restricted stock is delivered each fiscal year, and Performance Share Unit Program (hereinafter referred to as "Program II," with Program I and Program II to be collectively referred to as "Programs"), whereby restricted stock is delivered in accordance the degree of achievement of performance goals specified in advance. The purpose of the introduction of these new stock compensation programs is promoting further sharing of value between Directors of the Company (excluding Outside Directors, hereinafter referred to as "Eligible Directors") and shareholders and providing Eligible Directors with an incentive to contribute to the achievement of goals of the Company's medium-term management plan by allotting restricted stock to Eligible Directors.

Therefore, as part of transition from the current stock compensation program to Programs, it is proposed to revise the compensation ceiling pertaining to restricted stock and newly pay monetary compensation claims to Eligible Directors for granting restricted stock pertaining to Program I and Program II to them, in accordance with a resolution of the Board of Directors of the Company, on the condition that they be in the position of Director of the Company on the date of resolution of the subscription requirements for restricted stock.

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The total amount of monetary compensation claims paid to Eligible Directors under Programs in accordance with this proposal is to be revised appropriately as follows in light of the aforementioned purpose: no more than JPY 10 million per annum for monetary compensation claims pertaining to Program I and no more than JPY 90 million for three business years (JPY 30 million per annum) for monetary compensation claims pertaining to Program II. The specific timing and allocation of payment to each Eligible Director shall be determined by the Board of Directors.

Ther are presently six (6) Directors, two (2) of whom are Outside Directors, and, if Proposal 1 is approved and adopted, there will be six (6), two (2) of which are Outside Directors.

Eligible Directors shall pay in as property contributed in kind all of the monetary compensation claims paid from the Company based on the resolution of the Board of Directors and in return receive the issuance or disposal of common stock of the Company. The total number of shares of common stock of the Company to be issued or disposed of thereby shall be revised to 25,000 shares or less for Program I and 75,000 shares or less for three business years (25,000 shares per annum) for Program II (provided, however, that, if a stock split or consolidation of common stock of the Company (including the gratis allotment of common stock of the Company) is conducted with an effective date on or after the day on which this proposal is approved and adopted, the said total number shall be adjusted to a reasonable extent as required in accordance with the split or consolidation ratio or other measures.) The amount to be paid per share shall be equal to the closing price of common stock of the Company at the Tokyo Stock Exchange on the business day immediately preceding the date of each resolution of the Board of Directors (or the most recent preceding trading day if no trade is made on that day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Outline of Program I (Restricted Stock Program)

Program I is intended to allot common stock of the Company issued or disposed of by the Company to Eligible Directors and let them own such shares by paying monetary compensation claims for the allotment of restricted stock Eligible Directors every business year, in principle, and having them contribute the said monetary compensation claims in kind. In thereby issuing or disposing of common stock of the Company, the Company will enter into a restricted stock allotment agreement (hereinafter referred to as the "Allotment Agreement") with Eligible Directors whose outline is described below (common stock of the Company allotted under the Allotment Agreement to be hereinafter referred to as "Stock").

<br> (1) Transfer restriction period

Eligible Directors may not transfer, create a security interest on, or otherwise dispose of Stock during the period from the payment date of Stock (hereinafter referred to as the "Payment Date") to the point of time when they resign from the position of Director of the Company (hereinafter referred to as the "Transfer Restriction Period").

<br> (2) Conditions for removal of transfer restriction

Transfer restriction shall be removed for all of the Stock upon expiration of the Transfer Restriction Period on the condition that an Eligible Director has remained in the position of Director of the Company throughout the Transfer Restriction Period.

<br> (3) Reasons for acquisition without consideration

The Company shall acquire all of the Stock without consideration if any of certain events specified in the Allotment Agreement occurs including the finalized resignation of an Eligible Director from the position of Director of the Company for any reason other than death, expiration of the term of office and other justifiable reasons.

<br> (4) Handling of death and resignation during the term of office

Notwithstanding the provision of (2) above, if an Eligible Director dies or resigns from the position of Director of the Company for any other justifiable reason during and before the end of the period from the day following the Annual General Meeting of Shareholders, transfer restriction shall be removed for such a number of Stock as will be reasonably determined in light of his or her years of service during the said period. In addition, in the case specified above, the Company necessarily acquires the Stock without consideration for which transfer restriction remains unremoved at the point of time immediately after transfer restriction is removed.

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<br> (5) Handling upon organizational restructuring, etc.

Notwithstanding the provisions of (1) and (2) above, if a merger agreement whereby the Company becomes a non-surviving company, a stock exchange agreement or stock transfer plan whereby the Company becomes a wholly owned subsidiary or any other matter pertaining to organizational restructuring, etc. is approved by the General Meeting of Shareholders of the Company (or the Board of Directors of the Company if an approval by the General Meeting of Shareholders of the Company is not required for the said organizational restructuring, etc.), the Company shall remove, by a resolution of the Board of Directors, the transfer restriction for such a number of Stock as will be reasonably determined in light of the period from the month following the Annual General Meeting of Shareholders in the year in which the Payment Date falls to the date of the said approval, prior to the effective date of the said organizational restructuring, etc. In addition, in the case specified above, the Company necessarily acquired the Stock without consideration for which transfer restriction remains unremoved at the point of time immediately after transfer restriction is removed.

<br> (6) Other matters

Any other matters pertaining to the Allotment Agreement shall be determined by the Board of Directors of the Company.

End.

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## Exhibit 99.2

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**Exhibit 99.2**<br>

The business combination described in this document involves securities of Japanese companies. The business combination 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.

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 issuers are located in Japan and some or all of their 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 business combination, such as in the open market or through privately negotiated purchases.

This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. TOYO INNOVEX CO., LTD. and NISSEI PLASTIC INDUSTRIAL CO., LTD. assume no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

#### EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS

#### Reference Documents for the General Meeting of Shareholders

#### Supplementary Volume

**Proposal 1:** Matters regarding Approval of the Plan for Share Transfer with NISSEI PLASTIC INDUSTRIAL CO., LTD.

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **The details of financial statements and the like for the final business year (ending March 2025) of NISSEI PLASTIC INDUSTRIAL CO., LTD.** 

("5. Matters regarding Nissei" of the Convocation Notice)

\* The above matters are not stated in the document to be delivered to shareholders who have requested the delivery of paper-based documents in accordance with laws, regulations, and provisions of Article 15 of the Articles of Incorporation of the Company. In addition, for this Extraordinary General Meeting of Shareholders, paper-based documents containing the matters subject to measures for electronic provision (excluding above matters) are delivered to shareholders without exception regardless of whether or not a request for the delivery of paper-based documents is made.

TOYO INNOVEX Co., Ltd.

Securities Code: 6210

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#### Business Report

![](image00002.jpg)

I. Matters Concerning the Current Status of the Corporate Group

1. Business Progress and Results

During the current consolidated fiscal year, the global situation remained uncertain. This was due to rising resource and energy prices, surging raw material costs driven by heightened geopolitical risks such as the Russia-Ukraine situation, concerns about a global economic slowdown increased due to the new U.S. administration's policy stance on large-scale tariff hikes in the latter half of the period.

In the injection molding machine industry, where our Group operates, the business environment became challenging due to soaring raw material costs caused by the rapid depreciation of the yen and the delayed recovery in global capital investment demand.

Under these circumstances, the Group has been advancing its long-term growth strategy, "Future Design 2026," which concludes in the 70th fiscal year (ending March 2026), as well as the Fourth Medium-Term Management Plan, which began in the 67th fiscal year (ending March 2023).

Regarding business locations, as part of strengthening our global production system, we completed expansion work at our Texas plant (NISSEI AMERICA INC.) in January this year to increase production capacity and commenced operations. The expanded plant can now produce injection molding machines up to the 3,000-ton clamping force class. Going forward, demand for ultra-large injection molding machines is expected to increase in the North American market, primarily for the automotive industry and housing/construction materials. We will leverage this to expand sales in the North American market.

Regarding our products, we have developed the TWX460RⅢ50BV, a large-class model in the TWX series of hybrid vertical injection molding machines, which features industry-leading low-profile design. This machine is ideal for insert molding, a process in which metal or other components are placed into the mold and overmolded in a single operation. It is used in a wide range of fields, including automotive and electronic components, and holds a 40% share of the domestic market, and offers one of the highest clamping force levels among domestic molding machine manufacturers.

Regarding sales activities, the Company conducted promotions focused on providing customer satisfaction by guiding clients from general plastic exhibitions to private exhibitions, positioning ourselves as a solution-oriented company that solves customer challenges. At our production subsidiary "Nissei Plastic Machinery (Haiyan) Co., Ltd." in Haiyan County, Zhejiang Province, China, which began operations in January of the previous year, we held an opening ceremony and concurrently hosted a private exhibition in October of the previous year. We exhibited six machines, primarily injection molding machines manufactured at our factory in Taicang, China. We demonstrated solution technologies for the "cosmetics," "medical devices," and "automotive" industries, which are major industries with a strong concentration of companies in Zhejiang Province. We also proposed technologies for utilizing environmentally friendly materials, such as bioplastics, which we have pioneered within the industry.

Furthermore, to strengthen the human capital supporting the Group's business development, we are advancing our human resources strategy based on three pillars: "Recruitment, Retention, and Development of Human resources," "Promotion of Diversity," and "Work Style Reform and Implementation of Health Management." For recruitment, retention, and development, we participated in the Boston Career Forum held in Boston, Massachusetts, USA, to secure talent with diverse nationalities, skills, qualifications, and experience. Through this initiative, we recruited graduates from overseas educational institutions and promoted the acquisition of diverse talent. Regarding diversity promotion, we are working toward targets for the fiscal year ending March 2026: more than 8% female managers, more than 20% female employees, and achieving a gender pay gap at least 75% among all employees. During this fiscal period, we held training sessions at headquarters for finance personnel at overseas subsidiaries. These sessions served as opportunities for reskilling, enabling participants to share challenges in accounting operations, communicate with headquarters management, and acquire the latest market trends and technical knowledge.

Regarding performance for the current consolidated fiscal year, net sales increased 0.9% year-on-year to ¥47,493 million. Of this, domestic sales were ¥12,465 million and overseas sales were ¥35,027 million, resulting in an overseas sales ratio of 73.8% (previous year: 72.0%).

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Regarding profits, operating income was ¥442 million (a 37.3% decrease from the previous fiscal year), while ordinary income was ¥343 million (a 6.9% increase from the previous fiscal year).

Additionally, due to the recognition of ¥516 million in special retirement benefits for NEGRI BOSSI S.P.A., net income attributable to owners of the parent increased by 115.2% year-on-year to ¥76 million.

Sales by product category are as follows.

[Injection Molding Machines]

Sales of our mainstay injection molding machines reached ¥34,563 million (up 1.6% year-on-year).

[Peripheral Equipment, Parts, Molds, etc.]

Sales of peripheral equipment were ¥2,206 million (down 8.6% year-on-year), sales of parts were ¥9,173 million (up 7.0% year-on-year), and sales of molds, etc., were ¥1,549 million (down 25.4% year-on-year).

#### <br>
2. Capital Expenditures

Total capital expenditures during the current fiscal year amounted to ¥2,238 million. The main components were ¥1,004 million for the construction of the Nissei Plastic Machinery (Haiyan) Co., Ltd. factory and ¥608 million for the expansion of the U.S. factory.

3. Financing

During the current consolidated fiscal year, we raised ¥1 billion from financial institutions, primarily for capital expenditures in China, the United States, and other locations.

4. Status of Significant Organizational Restructuring

There are no applicable items.

5. Issues to Address

During the 69th fiscal year (ending March 2025), the Fair Trade Commission issued a recommendation to the Company, indicating that certain practices were in violation of the Subcontract Act. These included allowing certain business partners subject to the Subcontract Act to store wooden molds and other items free of charge, and reducing the scope of services provided in consignment transactions for procuring parts used in our products, despite discrepancies in the recognition of order quantities. In response, we will strengthen our internal management systems, rigorously implement measures such as ensuring thorough issuance of purchase orders with proper documentation, and standardizing payment terms and price negotiation processes. We will strive for full compliance with laws and regulations, promote sound business practices, and establish fair business operations.

Furthermore, deficiencies in internal controls were identified in our consolidated financial statement preparation process concerning the application of exchange rates for foreign currency transactions and the reconciliation of receivables and payables with overseas consolidated subsidiaries, resulting in a significant delay in financial disclosure. To correct these significant deficiencies in financial reporting, we will implement recurrence prevention measures. These include standardizing the application of foreign exchange rate rules, enhancing the accuracy of financial processing, strengthening monitoring systems to facilitate early detection of errors, and further automating foreign currency transaction processing. We will strive to improve the accuracy of financial reporting and strengthen governance by establishing and operating appropriate internal controls.

Regarding sales activities, as the final year of the Fourth Mid-Term Management Plan, we advanced our business with the goal of contributing to the formation of a decarbonized society and the establishment of a resource circulation system, while completing the final preparations for achieving our long-term goal, "Future Design 2026." Sales performance showed a modest increase compared to the 68th fiscal period, driven by growing demand in niche fields such as metal forming and semiconductor equipment. Furthermore, by focusing on our core technology, the "low-pressure forming method," which embodies energy and space savings, and expanding downsizing in forming, we achieved a 10% share of the large-machine market in Japan.

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This fiscal year marks the first year of our Fifth Mid-Term Management Plan. Under the policy of "Creating a platform that connects our group and customers through DX over the next three years," we will focus on the following five initiatives.

First, we will challenge the entrenched notion that "molding conditions must be set manually" at production sites. By automating routine molding condition settings through DX, we will alleviate labor shortages, reduce processing time, and propose a new, less burdensome model for the molding industry.

Second, as part of our regional strategies and response to geopolitical risks, we will increase our market share in the US by producing super-large machines at our US factory. In China, we will enter the automotive and medical fields using locally produced machines. Furthermore, by establishing a new factory in India, we will promote the production and sales of electric injection molding machines targeting the Base of the Pyramid (BOP), aiming to achieve the SDGs. In Europe, we will enter the German market, which accounts for 50% of European demand, aiming to increase our share in Europe.

Third, contributing to sustainability: Following our molding system for PLA (polylactic acid) – a biomass plastic – blended with thinned timber, we will refine our proprietary PLA injection molding technology to help establish a circular business model.

Fourth, we will strengthen human capital. Against the backdrop of recruitment challenges due to a shrinking workforce, we will focus on securing and developing talent with diverse values and backgrounds, while intensifying efforts to secure personnel proficient in digital domains, we will also advance talent development and utilization that emphasizes diversity as a source of organizational vitality.

Fifth, we will pursue management mindful of capital costs and stock prices, along with shareholder returns. By analyzing market perceptions of our company, we will identify current challenges, foster growth expectations, enhance management efficiency, advance strategies for profit improvement, and translate enhanced corporate value into shareholder returns.

Moving forward, to realize our management philosophy of "Nissei Global: Enriching Human Society Through Plastics," we are committed to taking further proactive initiatives toward global environmental conservation as a plastics company and striving to enhance the value of our industry. We respectfully request the continued support and cooperation of our shareholders.

\*1 BOP refers to the Base of the Pyramid, representing the low-income population segment comprising 4 billion people, representing more than half of the world's population.

Consolidated Full-Year Earnings Forecast for the 70th Fiscal Year

(Unit: Millions of Yen)

  <u> Net Sales</u>     <u> Operating Profit</u>     <u> Ordinary Profit</u>     <u> Net Income Attributable to Owners of the Parent Company</u>     <u> Per Share Net Income</u>   <br> <u> The 70th Fiscal Year, Fiscal Year Ending March 2026 </u>     <u> 44,200 </u>       <u> 1,000 </u>       <u> 900 </u>       <u> 550 </u>       <u> 28.59 </u>  

6. Other Important Matters Concerning the Current Status of the Company

During the implementation of the financial closing process for the fiscal year ended March 2025 (69th fiscal year), the Company identified errors. These errors stemmed from differences in the application of exchange rates and included(i) an erroneous amount for the elimination of unrealized gains included in inventory acquired through transactions within the consolidated group, and (ii) errors relating to the Company's advance payments, accounts receivable, accounts payable, and cost of sales related to certain overseas consolidated subsidiaries.

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To correct these errors, the Company has revised prior-year financial statements and amended the annual securities reports for the fiscal years ended March 2023 (67th term) and March 2024 (68th term), quarterly reports from the first quarter of the fiscal year ended March 2023 (67th term) through the third quarter of the fiscal year ended March 2024 (68th term), and the semi-annual report for the fiscal year ended March 2025 (69th term).

7. Trends in Financial Position and Profitability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Status of Assets and Profit and Loss of the Corporate Group

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| | | | | |
|:---|:---|:---|:---|:---|
| Period<br>Category | 66th Fiscal Year,<br> Fiscal Year Ended<br> March 2022 | 67th Fiscal Year,<br> Fiscal Year Ended<br> March 2023 | 68th Fiscal Year,<br> Fiscal Year Ended<br> March 2024 | 69th Fiscal Year<br> (Current Consolidated <br> Fiscal Year),<br> Fiscal Year Ended <br> March 2025 |
| &nbsp;&nbsp; Net Sales<br> (Millions of Yen) | 48731 | 52205 | 47068 | 47493 |
| &nbsp;&nbsp; Ordinary Profit<br> (Millions of Yen) | 2940 | 2995 | 321 | 343 |
| &nbsp;&nbsp; Net Income (Loss) Attributable to Owners of the Parent Company<br> (Millions of Yen) | 2680 | 2225 | (502) | 76 |
| &nbsp;&nbsp; Earnings Per Share<br> or<br> Net Loss Per Share <br> (Yen) | 137.43 | 114.13 | (26.16) | 3.98 |
| &nbsp;&nbsp; Net Assets<br> (Millions of Yen) | 36938 | 40053 | 39789 | 41869 |
| &nbsp;&nbsp; Total Assets<br> (Millions of Yen) | 68852 | 78035 | 83608 | 86479 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) Status of Our Assets and Profit and Loss

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| | | | | |
|:---|:---|:---|:---|:---|
| Period<br>Category | 66th Fiscal Year,<br> Fiscal Year<br> Ended March<br> 2022 | 67th Fiscal Year,<br> Fiscal Year<br> Ended March<br> 2023 | 68th Fiscal Year,<br> Fiscal Year<br> Ended March<br> 2024 | 69th Fiscal Year<br> (Current Consolidated<br> Fiscal Year),<br> Fiscal Year Ended<br> March 2025 |
| &nbsp;&nbsp; Net Sales<br> (Millions of Yen) | 36452 | 37068 | 32363 | 34970 |
| &nbsp;&nbsp; Ordinary Profit<br> (Millions of Yen) | 2656 | 3829 | 855 | 699 |
| &nbsp;&nbsp; Profit<br> (Millions of Yen) | 1844 | 2914 | 916 | 969 |
| Earnings Per Share<br> (Yen) | 94.58 | 149.45 | 47.67 | 50.53 |
| &nbsp;&nbsp; Net Assets<br> (Millions of Yen) | 30890 | 33359 | 33381 | 33425 |
| &nbsp;&nbsp; Total Assets<br> (Millions of Yen) | 55394 | 65119 | 76606 | 76270 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) During the preparation of the financial statements for the fiscal year ended March 2025 (69th fiscal period), errors in prior-period accounting treatments were identified and corrected.
 The figures for the fiscal years ended March 2023 (67th fiscal period) and March 2024 (68th fiscal period) reflect the revised amounts following these prior-period corrections.

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8. Status of Significant Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;(1) Overview of Significant Subsidiaries

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| | | | |
|:---|:---|:---|:---|
| Company Name | Capital Stock | Company's Voting<br> Rights Ratio | Principal Business Activities |
| NISSEI AMERICA, INC. | USD 82,578,036 | 100% | Manufacturing, sales, and servicing of our products |
| Nissei Resin Technology (Taicang) Co., Ltd. | ¥180 million | 100% | Sales and servicing of our products in China |
| Nissei Plastic Machinery (Taicang) Co., Ltd. | ¥1,590 million | 100% | Manufacturing of our products |
| Nissei Plastic Machinery (Haiyan) Co., Ltd. | ¥4,315 million | 100% | Manufacturing of our products |
| NISSEI PLASTIC MACHINERY (THAILAND) CO., LTD. | THB 280,000,000 | 100% | Manufacturing of our products |
| NISSEI HONMA MACHINERY CO., LTD. | ¥257 million | 100% | Manufacturing of our products and manufacturing and sales of metalworking machinery |
| NEGRI BOSSI S.P.A. | €15,974,974 | 99.99% | Manufacturing, sales, and service of injection molding machines and robotic equipment |

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&nbsp;&nbsp;&nbsp;&nbsp;(2) Other Subsidiaries

Nissei Technica Co., Ltd.

Nissei Metal Works Co., Ltd.

NISSEI MEXICO, S.A. DE C.V.

Taicang Takita Metal Products Co., Ltd.

Shanghai Nissei Plastic Machinery Co., Ltd.

NISSEI PLASTIC (HONG KONG) LTD.

Taiwan Nissei Co., Ltd.

NISSEI PLASTIC PHILIPPINES, INC.

NISSEI PLASTIC (VIETNAM) CO., LTD.

NISSEI PLASTIC (THAILAND) CO., LTD.

NISSEI (MALAYSIA) SDN. BHD.

PT. NISSEI PLASTIC INDONESIA

NISSEI PLASTIC (INDIA) PRIVATE LTD.

NISSEI EUROPE, s.r.o.

ROBOLINE S.R.L.

NEGRI BOSSI S.A.U.

NEGRI BOSSI LTD.

NEGRI BOSSI FRANCE S.A.S.

NEGRI BOSSI (INDIA) PRIVATE LTD.

NEGRI BOSSI NORTH AMERICA, INC.

NBMX S.A. DE C.V.

9. Principal Business Activities

The Group primarily manufactures and sells injection molding machines, peripheral equipment, parts, molds, and related products.

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10. Major Locations of the Corporate Group

(1) The Company

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| | |
|:---|:---|
| Head Office and Main Factory | Sakaki Town, Hanishina District, Nagano Prefecture |
| Sales Offices | Tohoku (Fukushima City), East Kanto (Saitama City), West Kanto (Sagamihara City), Tokai (Komaki City), Nagano (Sakaki Town, Hanishina District, Nagano Prefecture), Hokuriku (Toyama City), Osaka (Matsubara City), Chugoku (Kasa City), Hiroshima (Hiroshima City), Kyushu (Fukuoka City) |
| Branch Office | 9 domestic locations |
| Technical Center | Headquarters Technical Center (Sakaki Town, Hanishina District, Nagano Prefecture)<br> West Japan Technical Center (Akashi City, Hyogo Prefecture) |
| Sales Promotion Department | Chiyoda-ku, Tokyo |
| Branches | Korea, Singapore |

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(2) Subsidiaries

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| | | |
|:---|:---|:---|
| Company Name | Category | Location |
| Nissei Technica Co., Ltd. | Head Office | Sakaki Town, Hanishagun, Nagano Prefecture |
| Nissei Metal Works Co., Ltd. | Head Office | Joetsu City, Niigata Prefecture |
| Nissei Honma Machinery Co., Ltd. | Head Office | Akashi City, Hyogo Prefecture |
| NISSEI AMERICA, INC. | Head Office | San Antonio, Texas, USA |
| NISSEI MEXICO, S.A. DE C.V. | Head Office | Mexico City, Mexico |
| Nissei Plastic Machinery (Taicang) Co., Ltd. | Head Office | Taicang, People's Republic of China |
| Nissei Plastic Machinery (Taicang) Co., Ltd. | Head Office | Taicang, People's Republic of China |
| Taicang Takita Metal Products Co., Ltd. | Head Office | Taicang, People's Republic of China |
| Nissei Plastic Machinery (Haiyan) Co., Ltd. | Head Office | Haian, People's Republic of China |
| Shanghai Nisi Plastic Machinery Co., Ltd. | Head Office | Shanghai, People's Republic of China |
| NISSEI PLASTIC (HONG KONG) LTD. | Head Office | Hong Kong, People's Republic of China |
| Taiwan Nissei Co., Ltd. | Head Office | Taipei, Taiwan |
| NISSEI PLASTIC PHILIPPINES, INC. | Head Office | Laguna, Philippines |
| NISSEI PLASTIC (VIETNAM) CO., LTD. | Head Office | Ho Chi Minh City, Socialist Republic of Vietnam |
| NISSEI PLASTIC (THAILAND) CO., LTD. | Head Office | Bangkok, Thailand |
| NISSEI PLASTIC MACHINERY (THAILAND) CO., LTD. | Head Office | Rayong Province, Thailand |
| NISSEI (MALAYSIA) SDN. BHD. | Head Office | Kuala Lumpur, Malaysia |
| PT. NISSEI PLASTIC INDONESIA | Head Office | Jakarta, Indonesia |
| NISSEI PLASTIC (INDIA) PRIVATE LTD. | Head Office | Gurgaon, India |
| NISSEI EUROPE, s.r.o. | Head Office | Slovakia, Bratislava |
| NEGRI BOSSI S.P.A. | Head Office | Milan, Italy |
| ROBOLINE S.R.L. | Head Office | Milan, Italy |
| NEGRI BOSSI S.A.U. | Head Office | Barcelona, Spain |
| NEGRI BOSSI LTD. | Head Office | Warwickshire, United Kingdom |
| NEGRI BOSSI FRANCE S.A.S. | Head Office | France, Auvergne-Rhône-Alpes |
| NEGRI BOSSI (INDIA) PRIVATE LTD. | Head Office | India, Ahmedabad |
| NEGRI BOSSI NORTH AMERICA, INC. | Head Office | New Castle, Delaware, USA |
| NBMX S.A. DE C.V. | Head Office | Mexico City, Mexico |

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11. Employee Status

&nbsp;&nbsp;&nbsp;&nbsp;(1) Number of Employees in the Corporate Group

Number of Employees Change from Previous Fiscal Year-End <br> <u> 1,268 </u> <u> Decrease of 86 employees </u>

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&nbsp;&nbsp;&nbsp;&nbsp;(Note) As our group operates solely in the injection molding machine business, segment-specific information is not provided.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Status of Employees in the Company

Number of Employees Change from Previous Fiscal Year-End Average Age Average Years of Service <br> <u> 466 </u> <u> Decrease of 5 </u> <u> 46.4 years </u> <u> 19.2 years </u>

&nbsp;&nbsp;&nbsp;&nbsp;(Note) The figures do not include 120 temporary, contract, and part-time employees (86 at the end of the previous fiscal year).

12. Major Lenders and Loan Amounts

(Unit: million yen)

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| | | |
|:---|:---|:---|
| Major Lenders | Major Lenders | Outstanding Loan Balance |
|  | The Hachijuni Bank, Ltd. | 7,436 |
|  | Sumitomo Mitsui Banking Corporation | 2399 |
|  | Mitsubishi UFJ Bank, Ltd. | 1575 |

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13. Other Significant Matters Regarding the Current Status of the Corporate Group

No applicable items.

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II. Matters Concerning the Company's Shares

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| | |
|:---|:---|
| **1. Total Authorized Shares:** | 54,000,000 shares |
| **2. Total Number of Shares Issued:** <br>| 19,236,345 shares (excluding 3,035,655 treasury shares) |

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**3. Number of Shareholders as of the End of the Fiscal Year**: 17,894

4. Major Shareholders (Top 10) and Their Shareholdings

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| | | |
|:---|:---|:---|
| Shareholder Name | Number of Shares <br> Held<br> (Thousand Shares) | Shareholding Ratio (%) |
| Aoki Agency Co., Ltd. | 1889 | 9.8 |
| Tatsuro Kiyohara | 1585 | 8.2 |
| Nissei Plastics Co., Ltd. Business Partner Shareholding Association | 1558 | 8.1 |
| The Master Trust Bank of Japan, Ltd. (Trust Account) | 1531 | 8.0 |
| The Hachijuni Bank, Ltd. | 949 | 4.9 |
| Yoda Hozumi | 638 | 3.3 |
| Yota Maeda | 410 | 2.1 |
| Mitsubishi UFJ Trust and Banking Corporation | 346 | 1.8 |
| Hachijuni Capital Co., Ltd. | 340 | 1.8 |
| Nissei Plastics Co., Ltd. Employee Stock Ownership Association | 290 | 1.5 |

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(Note) Shareholding ratios are calculated after deducting treasury stock (3,035,655 shares).

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&nbsp;&nbsp;&nbsp;&nbsp;III. **Matters Concerning the Company's Stock Acquisition Rights, etc.** 

#### Status of Stock Acquisition Rights, etc. Held by Directors Granted as Compensation for the Execution of Duties

#### <br>

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| | | |
|:---|:---|:---|
|  | Details of Stock Acquisition Rights, etc. | Number of <br> Holders of Stock <br> Acquisition <br> Rights, etc. |
| Directors<br> (Excluding Directors <br> Who Are Audit and <br> Supervisory Committee <br> Members and Outside <br> Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> First Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 60,100 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 16, 2011 to July 15, 2046<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | <br> One person |
| Directors<br> (Excluding Directors <br> Who Are Audit and <br> Supervisory Committee <br> Members and Outside <br> Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> Second Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 49,100 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 14, 2012, to July 13, 2047<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | <br> One person |
| Directors<br> (Excluding Directors <br> Who Are Audit and <br> Supervisory Committee <br> Members and Outside <br> Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> Third Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 17,600 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise period for stock acquisition rights<br> From July 13, 2013, to July 12, 2048<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | <br> One person |

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| | | |
|:---|:---|:---|
| Directors<br> (Excluding Directors<br> Who Are Audit and <br> Supervisory Committee <br> Members and Outside <br> Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> Fourth Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 38,100 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 15, 2014, to July 14, 2049<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | One person |
| Directors<br> (Excluding Directors<br> Who Are Audit and <br> Supervisory Committee <br> Members and Outside <br> Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> Fifth Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 19,000 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 14, 2015, to July 13, 2050<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | One person |
| Directors<br> (Excluding Directors<br> Who Are Audit and <br> Supervisory Committee <br> Members and Outside <br> Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> Sixth Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 43,700 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> July 12, 2016 to July 11, 2051<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise such rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | One person |

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| | | |
|:---|:---|:---|
| Director<br> (Excluding Directors Who<br> Are Audit and Supervisory<br> Committee Members and<br> Outside Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> Seventh Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 27,600 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 11, 2017, to July 10, 2052<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) following the day after losing the position of director of the Company. | &nbsp;&nbsp;&nbsp;&nbsp; One person |
| Director<br> (Excluding Directors Who<br> Are Audit and Supervisory<br> Committee Members and<br> Outside Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (1) Name<br> Eighth Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp; (2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 23,100 shares<br> &nbsp;&nbsp;&nbsp;&nbsp; (3) Exercise Period for Stock Options<br> From July 14, 2018, to July 13, 2053<br> &nbsp;&nbsp;&nbsp;&nbsp; (4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp; (5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | &nbsp;&nbsp; Two persons |
| Director<br> (Excluding Directors Who<br> Are Audit and Supervisory<br> Committee Members and<br> Outside Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> Ninth Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 37,100 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 13, 2019, to July 12, 2054<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | &nbsp;&nbsp; Two persons |
| Director<br> (Excluding Directors Who<br> Are Audit and Supervisory<br> Committee Members and<br> Outside Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> 10th Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 34,900 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 14, 2020, to July 13, 2055<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | &nbsp;&nbsp; Two persons |

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| | | |
|:---|:---|:---|
| Directors<br> (Excluding Directors Who<br> Are Audit and Supervisory Committee Members and<br> Outside Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> 11th Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 26,600 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 13, 2021, to July 12, 2056<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Two persons |
| Directors<br> (Excluding Directors Who<br> Are Audit and Supervisory Committee Members and<br> Outside Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> Twelfth Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 39,600 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 12, 2022, to July 11, 2057<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 persons |
| Directors<br> (Excluding Directors Who<br> Are Audit and Supervisory Committee Members and<br> Outside Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> 13th Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 44,000 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 11, 2023, to July 10, 2058<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company.<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 persons |
| Directors<br> (Excluding Directors Who<br> Are Audit and Supervisory Committee Members and<br> Outside Directors) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(1) Name<br> 14th Series of Stock Acquisition Rights<br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Type and Number of Shares Subject to the Rights<br> Common Shares of the Company: 34,900 shares<br> &nbsp;&nbsp;&nbsp;&nbsp;(3) Exercise Period for Stock Options<br> From July 17, 2024, to July 16, 2059<br> &nbsp;&nbsp;&nbsp;&nbsp;(4) Exercise Price (Per Share)<br> 1 yen<br> &nbsp;&nbsp;&nbsp;&nbsp;(5) Conditions for Exercise<br> The holder of the stock acquisition rights may exercise the rights only within 10 days (or the next business day if the 10th day falls on a holiday) from the day following the date on which the holder loses the position of director of the Company. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6 persons |
| Outside Directors | ― | ― |
| Directors (Audit and<br> Supervisory Committee<br> Members) | ― | ― |

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&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Matters Concerning Company Officers** 

**1. Names of Directors** (as of March 31, 2025)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp; Position in the<br> Company | &nbsp;&nbsp; Name | Responsibilities and Significant Concurrent Positions |
| President and<br> Representative Director | Hosumi Yoda | Chairman, NEGRI BOSSI S.P.A.<br> NISSEI AMERICA, INC. Chairman |
| Managing Director | Takahiro Kobayashi | Head of Production Division, Quality Assurance Department, and Security Trade Control<br> Nissei Metal Works Co., Ltd. Representative Director and Chairman<br> Nissei Honma Machinery Co., Ltd. Representative Director and Chairman<br> Chairman, Nissei Plastic Machinery (Taicang) Co., Ltd.<br> NISSEI PLASTIC MACHINERY (THAILAND) CO., LTD. Chairman<br> Chairman, Nissei Plastic Machinery (Haiyan) Co., Ltd.<br> Taicang Takita Metal Products Co., Ltd. Chairman |
| Director | Kazuyoshi Horiuchi | Finance Department / Overseas Subsidiaries |
| Director,<br> General Manager, Sales<br> Division | Kikuo Sakurada | NISSEI PLASTIC (HONG KONG) LTD. Chairman<br> Chairman, Taiwan Nissei Co., Ltd.<br> NISSEI MEXICO, S.A. DE C.V. President and CEO<br> NISSEI PLASTIC (THAILAND) CO., LTD. Chairman<br> Shanghai Nissei Plastic Machinery Co., Ltd. Chairman<br> NISSEI PLASTIC (VIETNAM) CO., LTD. Chairman<br> NISSEI PLASTIC (INDIA) PRIVATE LTD. Chairman<br> NISSEI PLASTIC PHILIPPINES, INC. President<br> PT. NISSEI PLASTIC INDONESIA Chairman<br> NISSEI PLASTIC TECHNOLOGY (TAICANG) CO., LTD. Chairman<br> NISSEI EUROPE, s.r.o. Chairman |
| Director | Akihiko Imai | Internal Audit Office, Corporate Planning Department, Human Resources Department, General Affairs Department, Compliance and Risk Management<br> NISSEI TECHNICA Co., Ltd. Representative Director and Chairman |
| Director,<br> Head of Engineering<br> Division | Isamu Komamura |  |
| Director | Yosuke Taira | Director, Hira Yosuke Tax Accountant Office |
| Director | Stephen Bruce Moore | MLT Analytics, Inc. CEO |
| Director<br> (Full-time Audit and<br> Supervisory Committee<br> Member) | Yoshinao Handa |  |
| Director<br> (Audit and Supervisory<br> Committee Member) | Kazuyuki Narisawa |  |
| Director<br> (Audit and Supervisory<br> Committee Member) | Haruko Nishida | Representative, Office Phronesis<br> Representative Director, Women Help Women General Incorporated Association |

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(Note) 1. Directors Yosuke Taira, Steven Bruce Moore, Kazuyuki Narusawa (Audit and Supervisory Committee Member), and Haruko Nishida (Audit and Supervisory Committee Member) are outside directors as defined in Article 2, Item 15 of the Companies Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Director (Full-time Audit and Supervisory Committee Member) Yoshinao Handa has served as Head of the Internal Audit Department and Head of the Audit Office at the Company and
 possesses considerable expertise in finance and accounting. He was selected as a full-time Audit and Supervisory Committee Member to enhance the effectiveness of audits and strengthen the audit and supervisory functions by improving
 information gathering and ensuring sufficient coordination with the internal audit department and other relevant units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Director Yosuke Taira is the Director of the Yosuke Taira Tax Accountant Office. There is no special relationship between the Company and the Yosuke Taira Tax Accountant Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Director Stephen Bruce Moore is the CEO of MLT ANALYTICS. There is no special relationship between the Company and MLT ANALYTICS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Director (Audit and Supervisory Committee Member) Haruko Nishida is the Representative of Office Phronesis and the Representative Director of the General Incorporated Association
 Women Help Women. There is no special relationship between the Company and Office Phronesis or the General Incorporated Association Women Help Women.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. In nominating candidates for directors, the Nomination Committee—composed of three internal directors and four outside directors—selects candidates based on internally established
 criteria for director selection. The committee comprehensively evaluates candidates' abilities, insight, expertise, and other qualifications before the Board of Directors appoints the nominees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Company has entered into a directors and officers liability insurance contract with an insurance company as stipulated in Article 430-3, Paragraph 1 of the Companies Act. The
 scope of insured persons under this insurance contract includes the Company's directors (including directors who are members of the Audit & Supervisory Board) and the directors and auditors of its subsidiaries. The insured
 persons do not bear the insurance premiums. This insurance contract provides indemnification for damages that may arise from the insured persons being held liable in connection with the performance of their duties or from claims
 related to the pursuit of such liability. However, to ensure the proper performance of duties by the insured persons, damages arising from intentional acts or gross negligence are excluded from indemnification.

2. Directors' Compensation, etc.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters Concerning the Decision Policy Regarding the Content of Individual Director Compensation, etc.

The Company resolved its policy for determining the content of individual director compensation, etc. at the Board of Directors meeting held on February 25, 2021. The outline is as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Basic Policy

The Company's basic policy is to establish a compensation system for directors that is linked to shareholder interests, ensuring it functions effectively as an incentive for the sustained enhancement of corporate value. When determining the compensation for each individual director, the level shall be appropriate based on their respective responsibilities. Specifically, the compensation for executive directors consists of a base salary as fixed compensation, performance-based compensation, and non-monetary compensation (stock options). For outside directors, who perform supervisory functions, only a base salary is paid, considering the nature of their duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Policy on Determining Individual Basic Compensation Amounts (Including Policy on Timing or Conditions for Granting Compensation)

The basic remuneration (position-based remuneration) for our directors is calculated with reference to the Ministry of Economy, Trade and Industry's "Practical Guidelines on Corporate Governance Systems" and the Japan Association of Corporate Directors' "Guidelines for Executive Compensation," among others. Outside directors receive only fixed remuneration calculated based on the Executive Compensation Regulations.

The basic remuneration for directors of the Company is paid as an annual remuneration amount based on the Executive Compensation Regulations, with a fixed amount paid monthly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Method for determining the content and amount or number of performance-based compensation, non-monetary compensation, etc. (including policies regarding the timing or conditions for granting compensation)

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(a) Performance-Based Compensation

Performance-based compensation is calculated using a compensation evaluation criteria table that takes into account each director's performance in executing duties, based on the performance of the relevant consolidated fiscal year and forecasts for the next fiscal year's business environment. The remuneration evaluation criteria table is created based on quantitative evaluation criteria automatically calculated from disclosed values for each item (consolidated net sales, consolidated operating income, consolidated ordinary income, ROE, dividend payout ratio, etc.) and the rate of increase or decrease compared to the same period of the previous year, and qualitative evaluation criteria discussed by the Remuneration Committee based on the director's approach to assigned duties and results achieved.

For performance-based compensation, the annual compensation amount is paid in equal monthly installments based on the Executive Compensation Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Stock Option Compensation

Stock option compensation is allocated based on the number obtained by dividing the stock option compensation amount specified by position by the fair value per share option, in accordance with the Regulations for Granting Stock Options to Directors. Fair value is calculated using the Black-Scholes model.

Stock options are granted annually in July for one year's worth, based on the Director Stock Option Grant Regulations stipulated in internal rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Policy for Determining the Proportion of Monetary Compensation, Performance-Linked Compensation, etc., or Non-Monetary Compensation, etc., to Individual Directors' Total Compensation

The remuneration ratio by type of executive director is determined by the Compensation Committee, taking into account benchmark remuneration levels of companies with comparable business scale and in related industries/business formats. The structure is designed such that the weight of performance-based compensation increases for higher-ranking positions. The Board of Directors, giving maximum consideration to the Compensation Committee's recommendations, determines the individual remuneration details for directors within the range of remuneration ratios by type indicated in the recommendations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Matters Concerning the Determination of Individual Director Compensation Details

The specific amount of individual compensation is delegated to the President and Representative Director based on a resolution of the Board of Directors. This authority covers the determination of the base compensation amount for each director's position and the evaluation and allocation of performance-based compensation based on the performance of the business areas each director oversees. To ensure this authority is exercised appropriately by the President and Representative Director, the Board of Directors shall consult with the Compensation Committee on a draft proposal and obtain its recommendation. The President and Representative Director, having received the above delegation, shall make the decision based on the content of this recommendation.

Regarding stock option compensation, the Board of Directors shall resolve the allocation amount for each individual director based on the recommendation from the Compensation Committee.

The Board of Directors has confirmed that the individual compensation for directors for the current fiscal year is consistent with the decision policy regarding the method for determining compensation and the content of the determined compensation, and that the recommendations from the Compensation Committee have been respected. The Board of Directors has determined that this is in line with the decision policy.

&nbsp;&nbsp;&nbsp;&nbsp; (2) Matters Concerning Shareholders' Meeting Resolutions on Directors' Compensation, etc.

The monetary compensation for directors (excluding directors who are members of the Audit and Supervisory Committee) was approved at the 66th Ordinary General Meeting of Shareholders held on June 24, 2022, to be up to 320 million yen per year (of which up to 20 million yen per year for outside directors). The number of directors (excluding directors who are members of the Audit and Supervisory Committee) at the conclusion of that Ordinary General Meeting of Shareholders was 10 (including 2 outside directors). Separate from this monetary compensation, the same shareholders' meeting approved the allocation of stock options (stock acquisition rights) to directors (excluding directors who are members of the Audit and Supervisory Committee and outside directors) within an annual limit of 70 million yen. The number of eligible directors at the conclusion of this shareholders' meeting was 6.

The monetary compensation for directors serving as Audit and Supervisory Committee members was approved at the 66th Ordinary General Meeting of Shareholders held on June 24, 2022, to be within 50 million yen per year. The number of directors serving as Audit and Supervisory Committee members at the conclusion of that Ordinary General Meeting of Shareholders was three.

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&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters Concerning Delegation of Authority Regarding Determination of Individual Compensation for Directors (Excluding Directors Serving as Audit and Supervisory Committee Members)

At the Company, based on a resolution delegating authority from the Board of Directors, President and Representative Director Hozumi Yoda determines the specific details of the individual compensation amounts for directors (excluding directors who are members of the Audit and Supervisory Committee; the same applies hereinafter). The scope of the delegated authority includes the amount of the base compensation for each director and the evaluation and allocation of performance-based compensation based on the performance of the business areas each director oversees. The reason for delegating these authorities is that the Representative Director and President is best positioned to evaluate each director's assigned business while maintaining an overview of the Company's overall performance. To ensure these authorities are exercised appropriately by the Representative Director and President, the Board of Directors consults with the Compensation Committee, an advisory body, to obtain its opinion on the draft proposal.

&nbsp;&nbsp;&nbsp;&nbsp; (4) Total Compensation for Directors, etc.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br> Category | <br> Total<br> Compensation<br> (Millions of <br> Yen) | Compensation Breakdown by Type (Millions of <br> Yen) | Compensation Breakdown by Type (Millions of <br> Yen) | Compensation Breakdown by Type (Millions of <br> Yen) | Number of <br> Applicable <br> Directors<br> (persons) |
| <br> Category | <br> Total<br> Compensation<br> (Millions of <br> Yen) | Base <br> Compensation | Performance-<br> based <br> Compensation, <br> etc. | Non-monetary <br> Compensation, <br> etc. | Number of <br> Applicable <br> Directors<br> (persons) |
| Directors (Excluding Audit and Supervisory Committee Members)<br> (Of Which, Outside Directors) | 214<br> (9) | 164<br> (9) | 20<br> (-) | 30<br> (-) | 11<br> (2) |
| Directors (Audit Committee Member)<br> (Of Which, Outside Directors) | 28<br> (9) | 28<br> (9) | -<br> (-) | -<br> (-) | 3<br> (2) |
| Total<br> (Of Which, Outside Directors) | 243<br> (19) | 192<br> (19) | 20<br> (-) | 30<br> (-) | 14<br> (4) |

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(Note) 1.The total amount of remuneration, etc., for directors (excluding directors who serve as Audit and Supervisory Committee Members) does not include the employee portion of remuneration for directors who also serve as employees. There are no directors who also serve as employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Performance-based compensation is calculated based on the performance of the relevant consolidated fiscal year and forecasts for the next fiscal year's business
 environment, taking into account each director's performance of duties as per the compensation evaluation criteria table. This table is created based on quantitative evaluation criteria—automatically calculated from
 disclosures and year-on-year change ratios for items such as consolidated net sales, consolidated operating income, and consolidated ordinary income—and qualitative evaluation criteria discussed by the Compensation Committee
 regarding the attitude and results of efforts toward assigned duties. The trends in consolidated net sales and consolidated ordinary income, including the current consolidated fiscal year, are as described in "I.6. Trends in
 Financial Position and Profitability" avobe. These items were selected as performance indicators because they were deemed suitable for providing an overview of the Company's overall performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. As non-monetary compensation, stock options (stock acquisition rights) are granted to directors (excluding directors who are Audit and Supervisory
 Committee Members and outside directors). The details of these stock options and their grant status are as described in "(1) Matters Concerning the Decision Policy for Individual Director Compensation, etc." and "III.
 Matters Concerning the Company's Stock Acquisition Rights, etc."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The number of directors (excluding directors who are members of the Audit and Supervisory Committee) at the end of the current fiscal year is eight
 (including two outside directors). This differs from the number of directors (excluding directors who are members of the Audit and Supervisory Committee) mentioned above because it includes three directors who retired upon
 the conclusion of the 68th Ordinary General Meeting of Shareholders held on June 26, 2024.

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3. Matters Concerning Outside Officers

&nbsp;&nbsp;&nbsp;&nbsp; (1) Relationship between the Company and the Significant Concurrent Positions Held by Outside Officers

The relationship between significant concurrent positions and the Company is as described in "1. Names of Directors, etc."

&nbsp;&nbsp;&nbsp;&nbsp; (2) Main Activities During the Current Fiscal Year

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| | | | |
|:---|:---|:---|:---|
| Category | Name | <br> Term of <br> Office | Attendance, Statements, and<br> Summary of Duties Performed Regarding the Role <br> Expected of Outside Directors |
| Director | Yosuke Taira | <br>8 years and 9 months<br>| &nbsp;&nbsp;&nbsp; Attended all 20 Board of Directors meetings held during the fiscal year and expressed opinions from an independent standpoint to ensure the appropriateness and soundness of Board decisions. Specifically, he played an appropriate role in ensuring the appropriateness and soundness of decision-making by providing oversight and advice from a professional standpoint, particularly regarding tax and accounting matters.<br> Furthermore, as a member of the Nomination and Compensation Committee, he has assumed a supervisory role in the selection of executive candidates and the determination process for executive compensation. |
| Director | Stephen Bruce Moore | <br>2 years and 9 months | &nbsp;&nbsp;&nbsp; Attended all 20 Board of Directors meetings held during the fiscal year and expressed opinions from an independent standpoint to ensure the appropriateness and soundness of Board decisions. Specifically, leveraged global insights into the plastics industry as a whole to play an appropriate role in ensuring the appropriateness and soundness of decision-making.<br> Furthermore, as a member of the Nomination and Compensation Committee, he oversees the selection of executive candidates and the determination of executive compensation. |
| Director<br> (Audit and<br> Supervisory <br> Committee <br> Member) | Kazuyuki Narisawa | 2 years and 9 months | &nbsp;&nbsp;&nbsp; Attended all 20 Board of Directors meetings held during the fiscal year and expressed opinions from an independent standpoint to ensure the appropriateness and soundness of Board decisions. In particular, leveraging extensive experience and deep insight in corporate management, he played an appropriate role in ensuring the appropriateness and soundness of Board decisions.<br> He also attended all 20 Audit and Supervisory Committee meetings held during the fiscal year, making necessary comments as appropriate regarding the Company's internal audit and accounting systems, compliance framework, and other matters.<br> Furthermore, as a member of the Nomination and Compensation Committee, he performs a supervisory function in the selection of candidate officers and the decision-making process for officer compensation. |
| Director<br> (Audit and <br> Supervisory <br> Committee <br> Member) | Haruko Nishida | 2 years and 9 months | &nbsp;&nbsp;&nbsp; Attended all 20 Board of Directors meetings held during the fiscal year and expressed opinions from an independent standpoint to ensure the appropriateness and soundness of Board decisions. Leveraging extensive experience in corporate management and governance, she played an appropriate role in ensuring the appropriateness and soundness of Board decisions.<br> She also attended all 20 Audit and Supervisory Committee meetings held during the fiscal year, making necessary comments as appropriate regarding the Company's internal audit and accounting systems, compliance framework, and other matters.<br> Furthermore, as a member of the Nomination and Compensation Committee, she performs a supervisory function in the selection of candidate officers and the decision-making process for officer compensation. |

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(Note) 1.The cumulative tenure of Mr. Kazuyuki Narusawa and Ms. Haruko Nishida, including their past service as outside directors and outside corporate auditors, is 13 years and 9 months for Mr. Narusawa and 4 years and 9 months for Ms. Nishida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Directors Yosuke Taira, Steven Bruce Moore, Director (Audit and Supervisory Committee Member) Kazuyuki Narisawa, and Director (Audit and Supervisory Committee Member) Haruko
 Nishida are designated as Independent Directors by the Tokyo Stock Exchange and Nagoya Stock Exchange, as they are considered to have no potential conflicts of interest with general shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Summary of the Liability Limitation Agreement The Company and each outside director have entered into a contract to limit liability for damages under Article 423, Paragraph 1 of the Companies Act, based on the provisions
 concerning liability limitation agreements under Article 427, Paragraph 1 of the same Act. The liability of the Company's outside directors under Article 423, Paragraph 1 of the Companies Act is limited to the minimum liability amount prescribed in Article 425,
 Paragraph 1 of the same Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The tenure is stated based on the reference date of March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;V. **Status of the Accounting Auditor** 

1. Name of Accounting Auditor

Kanade Audit Corporation

2. Amount of Remuneration, etc.

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| | |
|:---|:---|
| Amount of Remuneration, Etc. Payable by the Company | Kanade Audit Corporation |
| Amount of Remuneration, Etc., for the Accounting Auditor for the Current Fiscal Year | ¥44,000 thousand |
| Total Amount of Monetary and Other Property Benefits Payable by the Company and Subsidiaries to the Accounting Auditor | ¥44,000 thousand |

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(Note) 1.The audit contract between the Company and the Accounting Auditor does not distinguish between audit fees for audits under the Companies Act and those under the Financial Instruments and Exchange Act, and such distinction is not practicable. Therefore, the above amount represents the total of these fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Audit and Supervisory Committee, based on the "Practical Guidelines on Cooperation with Accounting Auditors" published by the Japan Audit and Supervisory Board Members
 Association, reviewed the appropriateness and reasonableness of the Accounting Auditor's audit plan, the execution status of the accounting audit duties in prior years, the audit hours for the current fiscal year, and the basis
 for calculating the estimated remuneration. As a result, the Audit and Supervisory Committee has given its consent to the Accounting Auditor's remuneration, etc., pursuant to Article 399, Paragraph 1 of the Companies Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Our subsidiaries: NESSEI AMERICA, INC. and NISSEI RESIN TECHNOLOGY (TAICANG)CO., LTD and NEGRI BOSSI S.P.A are audited by auditors other than the Company's Accounting Auditor.

3. Policy for Deciding on the Dismissal or Non-Reappointment of the Accounting Auditor

The Audit and Supervisory Committee shall determine the content of a proposal to dismiss or not reappoint the Accounting Auditor to be submitted to the General Meeting of Shareholders when it deems it necessary, such as when there is an impediment to the execution of the Accounting Auditor's duties.

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Furthermore, if the Accounting Auditor is deemed to fall under any of the items specified in Article 340, Paragraph 1 of the Companies Act, the Audit and Supervisory Committee shall dismiss the Accounting Auditor based on the unanimous consent of all Audit and Supervisory Committee members. In such a case, the Audit and Supervisory Committee Member designated by the Audit and Supervisory Committee shall report the dismissal of the Accounting Auditor and the reasons for dismissal at the first shareholders' meeting convened after the dismissal.

&nbsp;&nbsp;&nbsp;&nbsp;VI. **System to Ensure Directors' Duties are Performed in Compliance with Laws and the Articles of Incorporation, Other Systems to Ensure Proper Business Operations, and the Operational Status of Such Systems** 

The Company has resolved the following at the Board of Directors as systems to ensure the proper conduct of business:

1. System to Ensure Directors and Employees Comply with Laws and Regulations and the Articles of Incorporation in the Performance of Their Duties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company and its group companies shall thoroughly ensure that compliance with laws and regulations and adherence to social ethics form the foundation of corporate
 activities, based on the "Nissei Plastic Industrial Action Charter" aligned with the management philosophy of "Enriching Human Society Through Plastics."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Board of Directors shall establish the "Compliance Regulations" to ensure strict adherence to laws, regulations, internal rules, and corporate ethics, and all persons
 working for the Company and its group companies shall comply with them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Board of Directors shall establish systems to prevent violations of laws and regulations or other compliance breaches and to ensure prompt and appropriate responses
 through internal reporting mechanisms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Board of Directors shall take a resolute stance against antisocial forces that threaten civil society. It shall establish a system to sever ties with such forces in
 cooperation with relevant administrative agencies, including the police, and all employees of the Company and its group companies shall comply with this policy.

2. System for the Preservation and Management of Information Related to the Execution of Directors' Duties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Regarding the preservation and management of information related to the execution of duties by directors, documents and other materials shall be preserved and managed in
 accordance with laws, regulations, and other stipulations. Furthermore, appropriate preservation and management shall be conducted based on the Document Management Regulations and Information Management Regulations.

<br> (2) The Company shall ensure the proper operation of various regulations and store and manage information appropriately and reliably in a manner that ensures sufficient searchability according to the storage medium, reviewing the system as necessary.

3. Regulations and Other Systems Concerning Risk Management

<br> (1) The Board of Directors shall identify and manage the Company's risks based on the Risk Management Regulations regarding regulations and other systems for managing the risk of loss.

<br> (2) Directors overseeing each department shall identify, analyze, and evaluate risks inherent in their respective duties and implement appropriate countermeasures.

<sup>(3)</sup> To respond to unforeseen events, disasters, system failures, etc., the Company shall establish systems based on internal regulations, ensure the reliable operation of Business Continuity Plan (BCP) and relevant manuals, and establish systems to minimize damage from various anticipated disaster risks.<br>

4. System to Ensure Efficient Execution of Directors' Duties

<sup>(1)</sup> To ensure the efficient execution of directors' duties, the Board of Directors shall meet in principle once a month based on the Board of Directors Regulations, and shall convene as necessary. Important matters concerning the Company's management policies and strategies shall be discussed in advance at the Management Meeting and resolved by the Board of Directors meeting following deliberation.<br>

<sup>(2)</sup> For the execution of duties based on Board decisions, responsibilities and authorities for each business department are defined based on the Authority Regulations and other rules, establishing an appropriate framework. These regulations are reviewed as necessary to maintain an efficient framework for executing duties.<br>

<br> (3) The effectiveness of the Board of Directors shall be evaluated to maintain a highly transparent management structure.

------

**5. System to Ensure Proper Operations within the Corporate Group Comprising the Company and Consolidated Subsidiaries**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To ensure the proper conduct of business across the entire corporate group, centered on consolidated subsidiaries, the Company establishes the Affiliated Company Management Regulations and the Overseas Group
 Company Management Regulations to govern the management system.

<sup>(2)</sup> To ensure the proper conduct of diversified operations, directors and employees of consolidated subsidiaries and other group companies shall manage the operations of consolidated subsidiaries and other group companies through consultation and reporting to the Company regarding important management matters of group companies based on regulations and other rules.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Company and its consolidated subsidiaries establish an internal control framework for financial reporting to ensure the appropriateness and reliability of financial
 reporting.

6. System for the Audit Environment of the Audit and Supervisory Committee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters Concerning Employees Assisting the Audit and Supervisory Committee

&nbsp;&nbsp;&nbsp;&nbsp;To assist the Audit and Supervisory Committee in its duties, an Audit and Supervisory Committee Office shall be established as necessary and staffed accordingly. Personnel matters concerning this office shall be discussed between the directors (excluding Audit and Supervisory Committee members) and the Audit and Supervisory Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters Concerning the Independence of Such Employees from Directors Other Than Audit and Supervisory Committee Members

&nbsp;&nbsp;&nbsp;&nbsp;Authority to direct designated employees shall be transferred to the Audit and Supervisory Committee, and such employees shall not receive commands or instructions from directors other than Audit and Supervisory Committee members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) System for Directors, Employees, and Directors/Employees of Subsidiaries to Report to the Audit and Supervisory Committee, and Other Reporting Systems to the Audit and Supervisory
 Committee

Matters and methods for reporting to the Audit and Supervisory Committee by directors and employees (excluding Audit and Supervisory Committee members) and directors and employees of subsidiaries shall comply with laws, regulations, and rules. Other matters shall be determined through consultation between the Board of Directors and the Audit and Supervisory Committee. Notwithstanding the foregoing, the Audit and Supervisory Committee may request reports from directors and employees (excluding Audit and Supervisory Committee members) as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) System to ensure that directors and employees (excluding Audit Committee members) and directors and employees of subsidiaries who report to the Audit and Supervisory Committee are
 not subject to disadvantageous treatment as a result of such reporting

&nbsp;&nbsp;&nbsp;&nbsp;Establish a system and regulations for reporting to the Audit and Supervisory Committee under the internal whistleblowing system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Other systems to ensure the effective conduct of the Audit and Supervisory Committee's audits

The Audit and Supervisory Committee shall hold regular meetings with the Representative Director to discuss important audit matters and exchange views on key audit matters. It shall also hold regular meetings with the Accounting Auditor to exchange opinions and information, thereby promoting cooperation.

7. Overview of the Operational Status of Systems to Ensure Proper Business Operations

The operational status of these systems is as follows: to ensure the proper conduct of business.

Based on the basic policy for establishing an internal control framework resolved by the Board of Directors, the Company and its Group Companies has established and operates an internal control framework at the Company and its group companies.

At the beginning of the fiscal year, the Company holds management briefings for employees to explain management policies and challenges, aiming to unify understanding. During the fiscal year, the Company conducts quarterly management briefings to explain progress to employees. Additionally, the Company conducts regular hearings with each department by directors holding executive positions, such as the Representative Director, to confirm progress and ensure appropriate operational management systems. Furthermore, to ensure the effectiveness of the Board of Directors, the Company conducts questionnaire surveys of directors (including directors serving on the Audit and Supervisory Committee and outside directors) to evaluate and improve the effectiveness of the Board, thereby ensuring management transparency and soundness.

------

the Company conducts quarterly compliance training sessions for directors and employees to enhance compliance awareness. Furthermore, the internal audit department conducts operational audits by department to verify the proper execution of duties and has established a system to report findings to the Board of Directors.

Regarding risk management, the Group conducts annual BCP exercises. Based on the results, the BCP manual is revised to enhance its effectiveness. Overseas subsidiaries also identify risks specific to each country and implement countermeasures tailored to those risks.

For our subsidiaries, we operate under centralized management by the Company, striving to understand their business conditions, market analysis, and the tax systems and laws of each country, thereby strengthening the management framework of local entities. Furthermore, our Audit and Supervisory Committee, Accounting Auditors, and internal audit department conduct regular audits, working to improve effectiveness through evaluations of internal controls.

～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～～<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) Amounts and share numbers stated in this business report are rounded down to the nearest unit.

------

#### Consolidated Balance Sheet

(As of March 31, 2025)

(Unit: Millions of Yen)

---

| | | | |
|:---|:---|:---|:---|
| Account | Amount | Account | Amount |
| (Assets) |  | (Liabilities) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Current Assets** | **60491** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Current Liabilities** | **31362** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and Deposits | 6750 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes Payable and Accounts Payable | 7026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes Receivable, Accounts Receivable and Contract Assets | 7062 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-Term Borrowings | 17166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electronic Recorded Monetary Claims | 1201 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-Term Borrowings Due within One Year | 2936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise and Finished Goods | 23350 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease Obligations | 196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Work in Process | 6506 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued Income Taxes | 229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Raw Materials and Supplies | 11657 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for Bonuses | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Receivable | 2900 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions for Product warranty | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Refundable Income Taxes | 182 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 3593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1183 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for Doubtful Accounts | (303) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-Current Liabilities** | **13220** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term Borrowings | 9885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fixed Assets** | **25988** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-Term Accounts Payable | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Tangible Fixed Assets** | **20536** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease Obligations | 334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and Structures | 8140 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred Tax Liabilities | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Machinery Equipment and Transportation Equipment | 3305 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities for Retirement Benefit Obligations | 2820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tools, Furniture, and Fixtures | 249 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 4909 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leased Assets | 484 | &nbsp;&nbsp;&nbsp; **Total Liabilities** | **44583** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in Progress | 3446 |  |  |
|  |  | **(Net Assets)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Intangible Fixed Assets** | **452** | &nbsp;&nbsp;&nbsp; **Shareholders' Equity** | **34593** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leased Assets | 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Capital Stock** | **5362** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 448 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Capital Surplus** | **5325** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retained Earnings** | **25810** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Investments and Other Assets** | **4999** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Treasury Stock** | **(1906)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Securities | 2181 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred Tax Assets | 2181 | &nbsp;&nbsp;&nbsp; **Accumulated Other Comprehensive Income** | **7084** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement Benefit Assets | 31 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized Gains (Losses) on Available-for-sale Securities | 779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 606 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Currency Translation Adjustment | 6336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for Doubtful Accounts | (1) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated Adjustments for Retirement Benefits | (32) |
|  |  | &nbsp;&nbsp;&nbsp; **Stock Acquisition Rights** | **217** |
|  |  | &nbsp;&nbsp;&nbsp; **Non-controlling Interests** | **1** |
|  |  | &nbsp;&nbsp;&nbsp; **Total Net Assets** | **41896** |
| &nbsp;&nbsp;&nbsp; **Total Assets** | **86479** | &nbsp;&nbsp;&nbsp; **Total Liabilities and Net Assets** | **86479** |

---

------

#### Consolidated Statement of Income

---

| | | |
|:---|:---|:---|
| ![](image00001.jpg) | From April 1, 2024<br> to March 31, 2025<br>| ![](image00003.jpg) |

---

(Unit: Millions of Yen)

---

| | | |
|:---|:---|:---|
| **Account Title** | **Amount** | **Amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Sales** |  | **47493** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Cost of Sales** |  | **33843** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross Profit** |  | **13650** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Selling, General and Administrative Expenses** |  | **13208** |
| &nbsp;&nbsp;&nbsp; **Operating Income** |  | **442** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-operating Income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Dividend Income | 206 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase Discounts | 21 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental Income | 27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commission Income  | 16 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electricity Sales Revenue | 22 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grant Income | 69 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 165 | **529** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-operating Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Expense | 262 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Exchange Loss | 337 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electricity Sales Expenses | 6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 22 | **628** |
| &nbsp;&nbsp;&nbsp; **Ordinary profit** |  | **343** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Extraordinary Income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on Sale of Investment Securities | 436 | **436** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Extraordinary Loss** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special Retirement Payments | 516 | **516**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Income Before Income Taxes** |  | **263** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income Taxes, Resident Taxes, and Business Taxes | 545 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income Tax Adjustments | (358) | **187** |
| &nbsp;&nbsp;&nbsp; **Net Income** |  | **76** |
| &nbsp;&nbsp;&nbsp; **Net Loss Attributable to Noncontrolling Interests** |  | **0** |
| &nbsp;&nbsp;&nbsp; **Net Income Attributable to Owners of the Parent** |  | **76** |

---

------

#### Consolidated Statement of Changes in Shareholders' Equity

---

| | | |
|:---|:---|:---|
| ![](image00001.jpg) | From April 1, 2024<br> To March 31, 2025<br>| ![](image00003.jpg) |

---

(Unit: Millions of Yen)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** |
|  | **Capital Stock** | **Capital Surplus** | **Retained** <br> **Earnings** | **Treasury Stock** | **Total** <br> **Shareholders'** <br> **Equity** |
| **Balance at Beginning of Period** | **5362** | **5307** | **26892** | **△2,030** | **35532** |
| &nbsp;&nbsp;&nbsp; Cumulative Effect of Correction of Error |  |  | △488 |  | **△488** |
| **Opening Balance after Retrospective Adjustment** | **5362** | **5307** | **26403** | **△2,030** | **35043** |
| **Changes during Period** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Dividends from Surplus |  |  | △669 |  | **△669** |
| &nbsp;&nbsp;&nbsp; Net Income Attributable to Owners of Parent |  |  | 76 |  | **76** |
| &nbsp;&nbsp;&nbsp; Disposal of Treasury Stock |  | 17 |  | 124 | **142** |
| &nbsp;&nbsp;&nbsp; Net Changes in Items Other Than Shareholders' Equity |  |  |  |  |  |
| **Total Changes during Period** | **－** | **17** | **△592** | **124** | **△450** |
| **Balance at End of Period** | **5362** | **5325** | **25810** | **△1,906** | **34593** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Accumulated Other Comprehensive Income** | **Accumulated Other Comprehensive Income** | **Accumulated Other Comprehensive Income** | **Accumulated Other Comprehensive Income** |  | |  |
|  | **Valuation**<br> **Difference** <br> **on Other** <br> **Securities** | **Foreign** <br> **Currency** <br> **Translation** <br> **Adjustments** | **Accumulated** <br> **Adjustments** <br> **for** <br> **Retirement** <br> **Benefit** | **Total** <br> **Accumulated** <br> **Other** <br> **Comprehensive** <br> **Income** | **Stock** <br> **Acquisition** <br> **Rights** | **Non-**<br> **controlling** <br> **Shareholders'**<br> **Equity** | **Total** <br> **Net** <br> **Assets** |
| **Balance at Beginning** <br> **of Period** | **1066** | **3358** | **(9)** | **4414** | **330** | **1** | **40278** |
| &nbsp;&nbsp;&nbsp; Cumulative Effect of Error Correction |  |  |  |  |  |  | **(488)** |
| **Opening Balance after Retroactive Adjustment** | **1066** | **3358** | **(9)** | **4414** | **330** | **1** | **39789** |
| **Changes during Period** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Dividends from surplus |  |  |  |  |  |  | **(669)** |
| &nbsp;&nbsp;&nbsp; Net Income Attributable to Owners of Parent |  |  |  |  |  |  | **76** |
| &nbsp;&nbsp;&nbsp; Disposal of Treasury Stock |  |  |  |  |  |  | **142** |
| &nbsp;&nbsp;&nbsp; Net Changes in Items Other Than Shareholders' Equity | (286) | 2978 | (22) | 2669 | (112) | 0 | **2557** |
| **Total Changes during Period** | **(286)** | **2978** | **(22)** | **2669** | **(112)** | **0** | **2106** |
| **Balance at End of Period** | **779** | **6336** | **(32)** | **7084** | **217** | **1** | **41896** |

---

------

#### Individual Notes to Consolidated Financial Statements

Significant Matters Forming the Basis for the Preparation of Consolidated Financial Statements

1. Matters Concerning the Scope of Consolidation

Number of Consolidated Subsidiaries: 23

NISSEI AMERICA, INC.

NISSEI MEXICO, S.A. DE C.V.

NISSEI (MALAYSIA) SDN. BHD.

NISSEI PLASTIC (THAILAND) CO., LTD.

NISSEI PLASTIC MACHINERY (THAILAND) CO., LTD.

NISSEI PLASTIC (HONG KONG) LTD.

Taiwan Nissei Co., Ltd.

Shanghai Nissei Plastic Machinery Co., Ltd.

Nissei Plastic Machinery (Taicang) Co., Ltd.

NISSEI TECHNICA CO., LTD.

Nissei Metal Works Co., Ltd.

Nissei Resin Industry Technology (Taicang) Co., Ltd.

Nissei Honma Machinery Co., Ltd.

NEGRI BOSSI S.P.A.

ROBOLINE S.R.L.

NEGRI BOSSI LTD.

NEGRI BOSSI S.A.U.

NEGRI BOSSI FRANCE S.A.S.

NEGRI BOSSI NORTH AMERICA, INC.

NBMX S.A. DE C.V.

NEGRI BOSSI (INDIA) PRIVATE LTD.

Nissei Plastic Machinery (Haiyan) Co., Ltd.

Taicang Takita Metal Products Co., Ltd.

Number of Non-consolidated Subsidiaries: 5

NISSEI PLASTIC (VIETNAM) CO., LTD.

NISSEI PLASTIC (INDIA) PRIVATE LTD.

NISSEI PLASTIC PHILIPPINES, INC.

PT. NISSEI PLASTIC INDONESIA

NISSEI EUROPE, s.r.o.

The total assets, net sales, net income (loss), retained earnings and other financial figures of non-consolidated subsidiaries are all immaterial in amount and do not have a material impact on the consolidated financial statements. Accordingly, they are excluded from the scope of consolidation.

------

2. Matters Related to Changes in the Scope of Consolidation

No applicable items.

3. Matters Concerning the Application of the Equity Method

Equity Method Affiliates:

No applicable items.

Companies Not Subject to the Equity Method:

The equity method is not applied to investments in non-consolidated subsidiaries because their net income (loss), and retained earnings, and other related financial amounts are all immaterial in amount and, on a consolidated basis, do not have a significant impact on the consolidated financial statements.

4. Matters Concerning the Fiscal Year of Consolidated Subsidiaries

The consolidated subsidiaries with fiscal year-ends differing from the consolidated fiscal year-end are as follows:

NISSEI AMERICA, INC.

NISSEI MEXICO, S.A. DE C.V.

Shanghai Nissei Plastic Machinery Co., Ltd.

Nissei Plastic Machinery (Taicang) Co., Ltd.

NISSEI PLASTIC MACHINERY (THAILAND) CO., LTD.

NISSEI PLASTIC MACHINERY (TAICANG) CO., LTD.

NEGRI BOSSI S.P.A.

ROBOLINE S.R.L.

NEGRI BOSSI LTD.

NEGRI BOSSI S.A.U.

NEGRI BOSSI FRANCE S.A.S.

NEGRI BOSSI NORTH AMERICA, INC.

NBMX S.A. DE C.V.

Nissei Plastic Machinery (Haiyan) Co., Ltd.

Taicang Takita Metal Products Co., Ltd.

Fiscal Year-End: December 31

In preparing the consolidated financial statements, the Company uses the financial statements of consolidated subsidiaries as of their respective fiscal year-end dates and makes necessary adjustments for significant transactions occurring between those dates and the consolidated fiscal year-end.

------

5. Significant Accounting Policies

(1) Valuation Basis and Methods for Securities

Other Securities

<br> ・Securities other than non-marketable securities ･･･ Fair value method <br>(Unrealized gains or losses are included in net assets and the cost of sales is calculated using the moving average method)

・Non-marketable securities･････････････ Cost method using the moving average method

(2) Valuation Standards and Method for Derivatives, etc.

The fair value method is applied.

(3) Valuation Standards and Methods for Inventories

Book values of inventories are determined based on the cost method and are written down ro reflect decreased profitability).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Finished goods, work in progress ･･･Individual identification method

<br> (ii) Operating parts and raw materials among products ･･･Moving average method or First-in, First-out (FIFO) method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Inventory ･････････Last-in, First-out (LIFO) method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Merchandise ･･････First-in, First-out (FIFO) method

(4) Depreciation Methods for Significant Depreciable Assets

(i) Tangible fixed assets (excluding leased assets and right-of-use assets) ･････ Declining balance method For the Company and its domestic consolidated subsidiaries, however, the straight-line method is applied to buildings (excluding building fixtures) acquired on or after April 1, 1998, and for building fixtures and structures acquired on or after April 1, 2016. Overseas consolidated subsidiaries primarily use the straight-line method based on the accounting standards of their respective countries.

<br> (ii) Intangible Fixed Assets (excluding lease assets and right-of-use assets)

・Software for internal use: Straight-line method based on the estimated useful life within the Company (5 years)

・Other intangible fixed assets ････ Straight-line method

<br> (iii) Lease Assets

Leased assets under finance leases that do not transfer ownership

The straight-line method is applied, using the lease term as the useful life and setting the residual value to zero.

<br> (iv) Right-of-use Assets

Right-of-use assets are depreciated using the straight-line method over the lease term as the useful life, with no residual value.

(5) Accounting Standards for Provisions

<br> (i) Allowance for Doubtful Accounts

To prepare for losses from bad debts on receivables such as notes receivable and accounts receivable, Company records the estimated uncollectible amount based on the historical bad debt ratio for general receivables and by assessing the collectability of specific receivables, such as doubtful accounts, on an individual basis.

For consolidated subsidiaries, the estimated uncollectible amounts are recorded based on an assessment of the collectability of each individual receivable.

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

To prepare for the payment of employee bonuses, the estimated amount attributable to the current consolidated fiscal year is recorded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Provision for Product Warranty

To prepare for after-sales service costs related to product, the Company records an estimated amount based on the Group's prescribed standards (historical ratios).

&nbsp;&nbsp;&nbsp;&nbsp;(6) Accounting Treatment for Retirement Benefits

To provide for employee retirement benefits, an amount is recorded based on the estimated retirement benefit obligations as of the end of the current consolidated fiscal year. In calculating the retirement benefit obligation, the projected retirement benefit amount is allocated to the period ending at the end of the current consolidated fiscal year using the straight-line method. Additionally, some overseas consolidated subsidiaries use the benefit calculation formula method.

Past service costs are expensed using the straight-line method over a fixed period (5 years) within the average remaining service period of employees at the time of occurrence.

Actuarial gains and losses are expensed from the following consolidated fiscal year using the straight-line method over a fixed number of years (5 years) within the average remaining service period of employees at the time of occurrence.

Certain consolidated subsidiaries apply a simplified method for calculating retirement benefit assets and retirement benefit expenses, using the amount of retirement benefits payable at the end of the period for voluntary retirement as the retirement benefit obligation.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Revenue and Expense Recognition Criteria

The Group manufactures and sells injection molding machines, parts, and other products.

For sales transactions of these products, except for domestic parts sales, the Group recognizes revenue when the customer obtains control of the products, based on the contract terms. For transactions where control is transferred at a point in time, revenue is recognized upon arrival at the customer, acceptance, or based on trade terms. For transactions where control over products is transferred over a period of time, revenue is recognized over the contract period using an input method based on costs incurred. This method measures the progress toward fulfilling the performance obligation as costs are incurred in line with work progress, reflecting the product's advancement toward completion and eventual readiness for use by the customer.

Conversely, for domestic parts sales transactions, the period from shipment to transfer of control is reasonable given the typical days required for domestic shipment and delivery. Therefore, as an alternative treatment, revenue is recognized upon shipment of parts to the customer.

Consideration for transactions is generally received within approximately 12 months after the performance obligation is satisfied. There are no transactions containing significant financial elements. Furthermore, for contracts with certain customers, revenue is measured as the amount of the promised consideration less discounts and returns.

&nbsp;&nbsp;&nbsp;&nbsp;(8) Translation of Foreign Currency-Denominated Assets and Liabilities into Japanese Yen

Monetary assets and liabilities denominated in foreign currencies are translated into yen at the spot exchange rate prevailing on the consolidated balance sheet date. Translation differences are recognized in profit or loss. Assets and liabilities of overseas consolidated subsidiaries are translated into yen at the spot exchange rate prevailing on the consolidated balance sheet date. Revenues and expenses are translated into yen at the average exchange rate for the period. Translation differences are recognized in the foreign currency translation adjustment account within shareholders' equity and in non-controlling interests.

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&nbsp;&nbsp;&nbsp;&nbsp;(9) Significant Methods of Hedge Accounting

<br> (i) Hedge Accounting Method

The deferred hedge accounting is applied.

<br> (ii) Hedging Instruments and Hedged Items

Hedging instrument: Interest rate swap

Hedged item: Borrowings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Hedge Policy

Hedging is conducted within the scope of the relevant liabilities to reduce interest rate risk and improve interest income and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Method for Evaluating Hedge Effectiveness

Hedge effectiveness is assessed by comparing the cumulative market value changes of the hedged item and the hedging instrument over the period from the inception of the hedge to the assessment date, based on the magnitude of changes in both.

#### Notes on Accounting Estimates

Accounting estimates are calculated using reasonable estimates based on information available at the time of preparing the consolidated financial statements. Among the amounts recorded in the consolidated financial statements for the current fiscal year that are based on accounting estimates, items that may have a significant significant impact on the consolidated financial statements for the next fiscal year are as follows.

1. Recoverability of Deferred Tax Assets

Deferred tax assets are recognized only when it is probable that future taxable income will be available against which deductible temporary differences, unused tax loss carryforwards, and tax credits can be utilized. The amount and timing of future taxable income expected to be generated based on business plans and other factors are estimated to assess the likelihood of recovery.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Amounts recorded in the consolidated financial statements for the current fiscal year

Deferred tax assets: 2,181 million yen

&nbsp;&nbsp;&nbsp;&nbsp;(2) Other information that may be useful to users of the consolidated financial statements in understanding the content of accounting estimates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Calculation Method for Amounts Recorded in the Consolidated Financial Statements for the Current Fiscal Year

The Group recognizes deferred tax assets based on an assessment of their recoverability, taking into account the adequacy of future taxable income, including the classification of companies as indicated in the "Guidance on the Recoverability of Deferred Tax Assets" (ASBJ Guidance No. 26) and the scheduling of the expected year of reversal of temporary differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Key Assumptions Used in Calculating Amounts Recorded in the Consolidated Financial Statements for the Current Fiscal Year

The Group's estimates of future taxable income are based on its business plans. The primary assumptions in these plans include projected sales volume and sales prices reflecting market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Impact on the Consolidated Financial Statements for the Following Fiscal Year

Because the Group's assumptions involve future uncertainties, if the timing and amount of actual events differ from estimates, there is a risk of significant impact on the consolidated financial statements for the following fiscal year.

2. Revenue Recognized over a Period of Time as Performance Obligations are Satisfied

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&nbsp;&nbsp;&nbsp;&nbsp; (1) Amounts Recorded in the Consolidated Financial Statements for the Current Fiscal Year

Sales revenue: 864 million yen

The above amount relates to contracts where revenue was recognized over the contract period based on the measurement of progress toward fulfilling the performance obligation, and where the performance obligation had not been fully satisfied as of the end of the current consolidated fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp; (2) Other Information That May be Useful to Users of the Consolidated Financial Statements in Understanding the Content of Accounting Estimates

(i) Calculation Method for Amounts Recorded in the Consolidated Financial Statements for the Current Fiscal Year

For transactions involving the transfer of control of products and other item, over a period of time, the Group recognizes revenue by measuring the progress toward fulfilling the performance obligation using the input method based on the cost incurred. When the progress cannot be measured reliably, revenue is recognized within the scope of the cost incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Key Assumptions Used in Calculating Amounts Recorded in the Consolidated Financial Statements for the Current Fiscal Year

The primary assumption for revenue recognition based on measuring progress toward fulfilling performance obligations is the estimation of total costs. Total costs are calculated based on specifications requested by customers, but estimates are reviewed promptly in response to changes in circumstances after orders are received.

<br> (iii) Impact on the Consolidated Financial Statements for the Following Fiscal Year

Estimates of total costs are highly specific to customer-requested specifications and are based on certain assumptions. Therefore, if a discrepancy arises between the estimated total costs and actual costs, the amount of revenue recognized in the consolidated financial statements for the subsequent fiscal year may be affected by changes in the estimated progress resulting from the revision of the total cost estimate.

#### Note on Correction of Errors

During the financial closing process for the fiscal year ended March 2025 (69th fiscal period), the Company identified errors related to the elimination of unrealized profit included in inventories through transactions within the consolidated group due to inconsistent application of exchange rates. Additionally, errors were identified in the Company's advance payments, accounts receivable, accounts payable, and cost of sales for certain overseas consolidated subsidiaries. Accordingly, the Company corrected these errors in the current consolidated fiscal year. The cumulative effect of these corrections is reflected in the opening balance of net assets for the current consolidated fiscal year.

As a result, the opening balance of net assets in the consolidated statement of changes in shareholders' equity decreased by 488 million yen.

------

Notes to the Consolidated Balance Sheet

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| | |
|:---|:---|
| 1. Accumulated depreciation of tangible fixed assets | 20,997 million yen |
| 2. Assets pledged as collateral and related liabilities |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Assets pledged as collateral |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 1,692 million yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and Structures | 297 million yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Debts Secured by Collateral |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term loans payable due within one year: | 528 million yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 71 million yen |
| 3. Notes Receivable, Accounts Receivable, and Contract Assets |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes Receivable | 215 million yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts Receivable | 5,928 million yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract Assets | 907 million yen |
| 4. Contract liabilities included in other current liabilities |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities: | 298 million yen |

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#### Notes to the Consolidated Statements of Income

1. Special Retirement Benefits 516 million yen

&nbsp;&nbsp;&nbsp;&nbsp; These are special retirement benefits related to the business restructuring of NEGRI BOSSI S.P.A.

------

#### Notes to Consolidated Statement of Changes in Equity

1 . Total Number of Shares Issued: 22,272,000 shares

2. Matters Related to Dividends from Surplus

&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount of Dividend Payments

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Resolution | Class of <br> Shares | Total Dividend <br> Amount<br> (Millions of Yen) | Per Share <br> Dividend | Record Date | Effective Date |
| June 26, 2024<br> Regular General Meeting of Shareholders | Common Stock | 380 | 20.00 | March 31, 2024 | June 27, 2024 |
| November 8, 2024<br> Board of Directors | Common Stock | 288 | 15.00 | September 30, 2024 | December 3, 2024 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a Record Date in the Current Consolidated Fiscal Year but an Effective Date in the Following Consolidated Fiscal Year

The following proposals are scheduled to be submitted for approval at the Ordinary General Meeting of Shareholders to be held on June 26, 2025.

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| | |
|:---|:---|
| Class of Shares | Common stock |
| Total Dividend Amount | 384 million yen |
| Dividend per share | ¥20.00 |
| Record date | March 31, 2025 |
| Effective date | June 27, 2025 |
| Source of Dividends: | Retained Earnings |

---

3. Matters Concerning Stock Acquisition Rights

Type and Number of Shares Subject to Stock Acquisition Rights Issued by the Company at the End of the Current Consolidated Fiscal Year

Common stock: 296,600 shares

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#### Notes on Financial Instruments

1. Matters Concerning the Status of Financial Instruments

&nbsp;&nbsp;&nbsp;&nbsp;(1) Policy on Financial Instruments

The Group limits its fund management to short-term deposits, etc., and raises funds through borrowings from banks and other financial institutions. The Group uses derivative transactions to hedge against the risks described below and has a policy of not engaging in speculative transactions.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Details of Financial Instruments and Their Risks

Trade receivables, including notes receivable, accounts receivable, and electronically recorded monetary claims , are exposed to customer credit risk. Furthermore, trade receivables denominated in foreign currencies, arising from our global business operations, are exposed to foreign exchange rate fluctuation risk. Investment securities consist of stocks and investment trusts and are exposed to market price fluctuation risk.

Operating liabilities, including notes payable and accounts payable, have payment due dates within one year. Short-term borrowings, long-term borrowings, and lease obligations are used to finance working capital and capital expenditures. Lease obligations include those accounted for under "Leases" (IFRS 16) for certain overseas consolidated subsidiaries.

Derivative transactions consist of foreign exchange forward contracts intended to hedge foreign exchange fluctuation risks associated with trade receivables and trade payables.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Risk Management Framework for Financial Instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Management of Credit Risk (Risk Related to Counterparty Default)

In accordance with the Company's sales management regulations, each sales department regularly monitor the due dates and balances of accounts receivable for each customer. This enables the early identification and mitigation of collection concerns arising from deteriorating financial conditions. Consolidated subsidiaries also implement similar management practices in accordance with the Company's sales management regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Management of Market Risk (Risk of Fluctuations in Exchange Rates, Interest Rates, etc.)

The Company generally hedges foreign exchange fluctuation risks associated with foreign currency-denominated operating receivables using forward exchange contracts on a monthly basis.

For investment securities, we regularly monitor market values and the financial condition of issuers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Management of Liquidity Risk Related to Fund Raising (Risk of Being Unable to Make Payments on Due Dates)

The Company manages liquidity risk by having the Finance Department prepare cash flow plans in a timely manner based on reports from each department and by maintaining a certain level of cash on hand, taking into account the status of payments and repair funds.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Supplementary Explanation Regarding Matters Related to the Fair Value of Financial Instruments

The calculation of the fair value of financial instruments incorporates variable factors, and therefore, the value may fluctuate depending on the assumptions used.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Concentration of Credit Risk

No applicable items.

------

2. Matters Concerning the Fair Value of Financial Instruments

The amounts recorded on the consolidated balance sheet, fair values, and the differences between them are as follows.

(Unit: Millions of Yen)

---

| | | | |
|:---|:---|:---|:---|
|  | Amount Recorded on <br> Consolidated Balance Sheet | Fair Value | Difference |
| (1) Investment Securities (\*2) | 1493 | 1493 | － |
| &nbsp;&nbsp;&nbsp; (2) Long-Term Borrowings (\*3)<br> (Including Current Portion) | (12821) | (12844) | 22 |
| (3) Derivatives (\*4) | － | － | － |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Note) Items recorded as liabilities are indicated in parentheses.

\*1 "Cash and deposits," "Notes receivable," "Accounts receivable," "Electronically recorded monetary claims," "Accrued income," "Notes payable and accounts payable," and "Short-term borrowings" are omitted from disclosure because they are cash or have fair values approximating their book values due to settlement within a short period.

\*2 Stocks and other securities without market prices are not included in "Investment securities." The carrying amounts of these financial instruments on the consolidated balance sheet are as follows.

Category Current Fiscal Year (Unit: Millions of Yen) <br> <u> Unlisted Stocks </u> <u> 687 </u>

\*3 Long-term borrowings include long-term borrowings due within one year.

\*4 Net receivables and payables arising from derivative transactions are presented on a net basis.

3. Matters Concerning the Breakdown of Financial Instruments by Fair Value Level

Financial instruments are classified into the following three levels based on the observability and significance of inputs used to determine their fair value.

Level 1 fair value: Fair value measured using the quoted price (unadjusted) in an active market for the identical asset or liability

Level 2 fair value: Fair value calculated using inputs that are observable, either directly or indirectly, other than Level 1 inputs

Level 3 fair value: Fair value calculated using significant unobservable inputs

When multiple inputs significantly affecting the fair value measurement are used, the inputs are classified at the level with the lowest priority in the fair value measurement process.

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Financial assets and financial liabilities carried at fair value on the consolidated balance sheet

(Unit: Millions of Yen)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair Value | Fair Value | Fair Value | Fair Value |
| Category | Level 1 | Level 2 | Level 3 | Total |
| Investment securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other Securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity Securities | 1459 | － | － | 1459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 35 | － | － | 35 |
| Derivatives | － | － | － | － |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Note) Items recorded as liabilities are indicated in parentheses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Note) Explanation of valuation techniques and inputs used to determine fair value

 <u>Investment Securities</u>

Listed stocks and investment trusts are valued using quoted market prices. Listed stocks are traded in active markets, so their fair value is classified as Level 1 fair value.

 <u>Derivatives</u>

Derivative transactions are intended to hedge risks associated with future exchange rate fluctuations on foreign currency transactions. Since their fair value is based on prices quoted by fiancial institutions, they are classified as Level 2 fair value.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial Assets and Financial Liabilities Not Carried at Fair Value on the Consolidated Balance Sheet

(Unit: million yen)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair Value(\*) | Fair Value(\*) | Fair Value(\*) | Fair Value(\*) |
| Category | Level 1 | Level 2 | Level 3 | Total |
| Long-term Borrowings | － | (12844) | － | (12844) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Note) Items recorded as liabilities are indicated in parentheses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Note) Explanation of valuation techniques and inputs used to determine fair value

 <u>Long-term Borrowings</u>

The fair value of long-term borrowings is calculated by discounting the total amount of principal and interest using the interest rate that would be assumed if similar new borrowings were made. This fair value is classified as Level 2.

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#### Notes on Revenue Recognition
1. Information on the breakdown of revenue arising from contracts with customers

The Group recognizes revenue from contracts with customers for transactions where control of products is transferred at a point in time (injection molding machines, parts, and other manufacturing and sales) and transactions where control of products is transferred over a period of time (injection molding machines and other manufacturing and sales). The breakdown is as follows.

Current Fiscal Year (From April 1, 2024 to March 31, 2025)

(Unit: Millions of yen)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Reporting Segment | Reporting Segment | Reporting Segment | |
|  | Japan | Europe and <br> America | Asia | Total |
| Major Product or Service Lines |  |  |  |  |
| Injection Molding Machines | 10095 | 13805 | 10661 | 34563 |
| Parts | 3007 | 4021 | 2145 | 9173 |
| Other | 2682 | 815 | 257 | 3756 |
| Total | 15785 | 18643 | 13064 | 47493 |

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(Note) "Other" includes peripherals, molds, etc.

2. Information for Understanding Revenue Arising from Contracts with Customers

The fundamental information for understanding revenue arising from contracts with customers is as described in "Significant Matters Forming the Basis for the Preparation of Consolidated Financial Statements 5. Accounting Policies (7) Revenue and Expense Recognition Criteria."

3. Information on the relationship between the fulfillment of performance obligations under contracts with customers and the cash flows arising from such contracts, as well as the amount and timing of revenue expected to be recognized in the next fiscal year or later from contracts with customers existing at the end of the current fiscal year

&nbsp;&nbsp;&nbsp;&nbsp;(1) Balances of Contract Assets and Contract Liabilities, etc.

(Unit: Millions of Yen)

---

| | |
|:---|:---|
|  | Current Fiscal Year |
| Receivables Arising from Contracts with Customers (Opening Balance) | 7438 |
| Receivables Arising from Contracts with Customers (Ending Balance) | 7356 |
| Contract Assets (Opening Balance) | 733 |
| Contract Assets (Ending Balance) | 907 |
| Contract Liabilities (Opening Balance) | 187 |
| Contract Liabilities (Ending Balance) | 298 |

---

Contract assets relate to transactions where control over products, etc., is transferred over a specified period. At the end of the period, control over the products, etc., has been transferred to the customer, but the Group retains a right to the consideration that has not yet been invoiced. This right is transferred to a receivable arising from the contract with the customer when the Group's right to the consideration becomes unconditional.

Contract liabilities relate to advance payments received by the Group from customers before the customer obtains control of the goods and are reversed as revenue is recognized. Contract liabilities are included in "Other" under current liabilities on the consolidated balance sheet.

------

The amount included in the opening balance of contract liabilities for revenue recognized during the current fiscal year was 993 million yen. Furthermore, the primary reason for the 173 million yen increase in contract assets during the current fiscal year was the increase in revenue recognized as performance obligations were satisfied. The primary reason for the 110 million yen increase in contract liabilities was the increase due to the receipt of advance payments.

During the current fiscal year, there was no revenue recognized from performance obligations satisfied in prior periods.

(2) <br> Transaction Price Allocated to Remaining Performance Obligations

The Group applies a practical expedient in disclosing the transaction price allocated to the remaining performance obligations, excluding contracts with an initial expected contract period of one year or less from the disclosure. The total transaction price allocated to the remaining performance obligation and the period over which revenue recognition is expected are as follows.

(Unit: Millions of Yen)

Current Fiscal Year <br> Within One Year 1,287 <br> <u> Over One Year </u> <u> 3 </u>  

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#### Notes on Per Share Information

<br> 1. Net Assets per Share: ¥2,166.60 <br>2. Net Income per Share: ¥3.98

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#### Balance Sheet

#### <br>
(As of March 31, 2025)

(Unit: Millions of yen)

---

| | | | |
|:---|:---|:---|:---|
| **Account Title** | **Amount** | **Account Title** | **Amount** |
| (Assets) |  | **&nbsp;&nbsp;&nbsp;&nbsp;(Liabilities)**  |  |
| **Current Assets** | **38256** | &nbsp;&nbsp;&nbsp; **Current Liabilities** | **30441** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and Deposits | 465 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes Payable | 230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes Receivable | 210 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts Payable | 8314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electronic Recorded Monetary Claims | 1201 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-Term Borrowings | 17736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts Receivable | 8506 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-Term Borrowings Due Within One Year | 2907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract Assets | 477 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease Obligations | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise and Finished Goods | 9199 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Accounts Payable | 757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Work in Process | 3535 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Raw Materials and Supplies | 5827 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued Income Taxes | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advances | 1787 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract Liabilities | 177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid Expenses | 87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits Received | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Receivable | 4693 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for Bonuses | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term Loans to Affiliated Companies | 2094 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Product Warranty Reserve | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 199 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provisions for Loss on Contracts | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for Doubtful Accounts | (29) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 7 |
| **Fixed Assets** | **38014** | &nbsp;&nbsp;&nbsp; **Non-Current Liabilities** | **12403** |
| &nbsp;&nbsp;&nbsp; **Tangible Fixed Assets** | **8956**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-Term Borrowings | 9720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings | 2414 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-Term Accounts Payable | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structures | 113 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease Obligations | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Machinery and Equipment | 2049 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for Retirement Benefits | 2564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles and Transportation Equipment | 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tools, Furniture, and Fixtures | 100 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 4015 | &nbsp;&nbsp;&nbsp; **Total Liabilities** | **42844** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leased assets | 26 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in Progress | 230 | **(Net Assets)** |  |
|  |  | &nbsp;&nbsp;&nbsp; **Shareholders' Equity** | **32427** |
| &nbsp;&nbsp;&nbsp; **Intangible Fixed Assets** | **442** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Capital Stock** | **5362** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Software | 436 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Capital Surplus** | **5511** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leased Assets | 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital Reserve | 5342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Capital Surplus | 168 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retained Earnings** | **23459** |
| &nbsp;&nbsp;&nbsp; **Investments and Other Assets** | **28615** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserve for Retained Earnings | 591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Securities | 1505 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Retained Earnings | 22868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of Affiliates | 26189 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special Reserve | 7525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold and Security Deposits | 60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained Earnings Brought Forward | 15343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred Tax Assets | 851 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Treasury Stock** | **(1906)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 10 | &nbsp;&nbsp;&nbsp; **Valuation and Translation Adjustments** | **779** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for Doubtful Accounts | (1) | &nbsp;&nbsp;&nbsp; Unrealized Gains (Losses) on Available-for-sale Securities | **779** |
|  |  | &nbsp;&nbsp;&nbsp; **Stock acquisition rights** | 217 |
|  |  | &nbsp;&nbsp;&nbsp; **Total Net Assets** | **33425** |
| &nbsp;&nbsp;&nbsp; **Total Assets** | **76270** | &nbsp;&nbsp;&nbsp; **Total Liabilities and Net Assets** | **76270** |

---

<u><br> </u> <br>

------

#### Income Statement

#### <br>
(Unit: Millions of Yen)

---

| | | |
|:---|:---|:---|
| **Account Title** | **Amount** | **Amount** |
| **Net Sales** |  | **34970** |
| **Cost of Sales** |  | **28718** |
| &nbsp;&nbsp;&nbsp; **Gross Profit** |  | **6251** |
| **Selling, General and Administrative Expenses** |  | **5885** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating Income** |  | **366** |
| &nbsp;&nbsp;&nbsp; **Non-operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Dividend Income | 738 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental income | 27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electricity sales revenue | 22 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 62 |  |
| &nbsp;&nbsp;&nbsp; **Non-operating Expenses** |  | **850** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Expense | 119 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange loss | 384 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental income Cost | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electricity sales expenses | 6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 5 | **517** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating profit** |  | **699** |
| **Extraordinary Income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of investment securities | 436 | **436** |
| **Net Income Before Taxes** |  | **1136** |
| Income taxes, resident taxes, and business taxes | 263 |  |
| Income tax adjustments | (97) | **166** |
| &nbsp;&nbsp;&nbsp; **Net Income** |  | **969** |

---

------

#### Statement of Changes in Shareholders' Equity

![](image00005.jpg)

(Unit: Millions of Yen)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Shareholders' Equity | Shareholders' Equity | Shareholders' Equity | Shareholders' Equity | Shareholders' Equity | Shareholders' Equity | Shareholders' Equity |
| | <br>Capital <br> Stock | Capital Surplus | Capital Surplus | Capital Surplus | Retained Earnings | Retained Earnings | Retained Earnings |
| | <br>Capital <br> Stock | Capital<br> Reserve | Other <br> Capital <br> Surplus | Total Capital<br> Surplus | Reserve of <br> Retained <br> Earnings | Other Retained Earnings | Other Retained Earnings |
| | <br>Capital <br> Stock | Capital<br> Reserve | Other <br> Capital <br> Surplus | Total Capital<br> Surplus | Reserve of <br> Retained <br> Earnings | Special<br>Reserve | Retained<br> Earnings<br> Brought <br> Forward |
|  Balance at Beginning of Period | 5362 | 5342 | 150 | 5493 | 591 | 7525 | 15856 |
|  Cumulative Effect of Correction of Error |  |  |  |  |  |  | (813) |
|  Opening Balance after Retrospective Adjustment | 5362 | 5342 | 150 | 5493 | 591 | 7525 | 15043 |
|  Changes during Period |  |  |  |  |  |  |  |
|  Dividends from Retained Earnings |  |  |  |  |  |  | (669) |
|  Net Income |  |  |  |  |  |  | 969 |
|  Disposal of Treasury Stock |  |  | 17 | 17 |  |  |  |
|  Net Changes in Items Other Than Shareholders' Equity |  |  |  |  |  |  |  |
|  Total Changes during Period | － | － | 17 | 17 | － | － | 300 |
|  Balance at End of Period | 5362 | 5342 | 168 | 5511 | 591 | 7525 | 15343 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Shareholders' Equity | Shareholders' Equity | Shareholders' Equity | Valuation and Translation <br> Adjustments | Valuation and Translation <br> Adjustments | Share<br> Options | Total Net <br> Assets |
| | Retained <br> Earnings | Treasury <br> Stock | Total <br> Shareholders'<br> Equity | Unrealized <br> Gains<br> (Losses) on <br> Available-<br> for-sale <br> Securities | Total <br> Valuation <br> and <br> Translation<br> Adjustments | Share<br> Options | Total Net <br> Assets |
| | Total <br> Retained <br> Earnings | Treasury <br> Stock | Total <br> Shareholders'<br> Equity | Unrealized <br> Gains<br> (Losses) on <br> Available-<br> for-sale <br> Securities | Total <br> Valuation <br> and <br> Translation<br> Adjustments | Share<br> Options | Total Net <br> Assets |
|  Balance at Beginning of Period | 23972 | (2030) | 32798 | 1066 | 1066 | 330 | 34194 |
|  Cumulative Effect of Correction of Error | △813 |  | △813 |  |  |  | (813) |
|  Balance at Beginning of Period after Retrospective Restatement | 23159 | △2,030 | 31984 | 1066 | 1066 | 330 | 33381 |
|  Changes during Period |  |  |  |  |  |  |  |
|  Dividends from Retained Earnings | (669) |  | (669) |  |  |  | (669) |
|  Net Income | 969 |  | 969 |  |  |  | 969 |
|  Disposal of Treasury Stock |  | 124 | 142 |  |  |  | 142 |
|  Net Changes in Items Other Than Shareholders' Equity |  |  |  | (286) | (286) | (112) | (398) |
|  Total changes during Period | 300 | 124 | 442 | △286 | (286) | △112 | 44 |
|  Balance at End of Period | 23459 | △1,906 | 32427 | 779 | 779 | 217 | 33425 |

---

------

#### Individual Notes to the Financial Statements

#### Significant Accounting Policies

1. Valuation Basis and Method for Securities

&nbsp;&nbsp;&nbsp;&nbsp;(1) Subsidiary stock ....... Moving Average Cost Method

&nbsp;&nbsp;&nbsp;&nbsp;(2) Other Securities

・Securities other than non-marketable securities･･･････ Fair value method

(Unrealized gains or losses are included in net assets and the cost of sales is calculated using the moving average method.)

・Non-marketable securities ･････････････････ Cost method using the moving average method

2. Valuation Standards and Methods for Derivatives, etc.

The fair value method is applied.

3. Valuation Basis and Method for Inventories

Book values of inventories are determined based on the cost method and are written down to reflect decreased profitability.).

&nbsp;&nbsp;&nbsp;&nbsp;(1) Finished goods, work in progress ････････････････ Individual identification method

&nbsp;&nbsp;&nbsp;&nbsp;(2) Operating parts and raw materials: Moving average method

&nbsp;&nbsp;&nbsp;&nbsp;(3) Supplies: Last purchase price method

4. Depreciation Methods for Fixed Assets

&nbsp;&nbsp;&nbsp;&nbsp;(1) Tangible fixed assets (excluding leased assets)... Declining balance method

<br> However, the straight-line method is applied to buildings (excluding building fixtures) acquired on or after April 1, 1998, and to building fixtures and structures acquired on or after April 1, 2016.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Intangible Fixed Assets (excluding leased assets)

<br> • Software for internal use... Straight-line method based on the estimated useful life within the company (5 years) • Other intangible fixed assets... Straight-line method

&nbsp;&nbsp;&nbsp;&nbsp;(3) Lease Assets

<br> Leased assets under finance leases not transferring ownership The straight-line method is adopted, treating the lease term as the useful life and setting the residual value to zero.

5. Accounting Standards for Provisions

&nbsp;&nbsp;&nbsp;&nbsp;(1) Allowance for Doubtful Accounts

To provide for losses from bad debts on receivables such as notes receivable and accounts receivable, the Company records the estimated uncollectible amount based on the historical bad debt ratio for general receivables and by assessing the collectability of specific receivables, such as doubtful accounts, on an individual basis.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Provision for Bonuses

To prepare for the payment of employee bonuses, the estimated amount attributable to the current fiscal year is recorded.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Provision for Product Warranty

To provide for after-sales service costs related to products, the Company records an estimated amount based on its prescribed standards (historical ratios).

&nbsp;&nbsp;&nbsp;&nbsp;(4) Provision for Retirement Benefits

To provide for employee retirement benefits, an amount is recorded based on the estimated retirement benefit obligations as of the end of the current fiscal year. In calculating the retirement benefit obligation, the projected retirement benefit amount is allocated to the period ending at the end of the current fiscal year using the straight-line method.

Past service cost is expensed using the straight-line method over a fixed period (5 years) within the average remaining service period of employees at the time of occurrence.

------

Actuarial gains and losses are expensed from the following fiscal year using the straight-line method over a fixed number of years (5 years) within the average remaining service period of employees at the time of occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Provision for Losses on Contracts

To provide for future losses related to contracts received, the Company records an estimated amount of future losses at the end of the current fiscal year when such losses are deemed certain and the amount can be reasonably estimated.

6. Accounting Treatment for Retirement Benefits

The accounting treatment for unrecognized actuarial gains and losses and unrecognized past service cost related to retirement benefits differs from the methods used in the consolidated financial statements.

7. Accounting Standards for Revenue and Expense Recognition

The Company manufactures and sells injection molding machines, parts, and other products.

For sales transactions of these products, except for domestic parts sales, the point at which the customer obtains control of the products, as determined by the contract terms, is recognized as the point at which the Company's performance obligation is satisfied. For transactions in which control of the products is transferred at a point in time, revenue is recognized upon delivery to, or acceptance by, the customer, or in accordance with applicable trade terms. For transactions in which control over products is transferred over a period of time, revenue is recognized over the contract period using the input method based on incurred costs. This method measures the progress toward fulfilling the performance obligation as costs are incurred in line with work progress, reflecting the product's advancement toward completion and eventual readiness for use by the customer.

For domestic sales of parts, the period from shipment to transfer of control is reasonable given the normal period required for domestic shipment and delivery. Therefore, as an alternative treatment, revenue is recognized upon shipment of parts to the customer.

Consideration for transactions is generally received within approximately 12 months after the performance obligations are satisfied, and no transactions include a significant financing component. Furthermore, for contracts with certain customers, revenue is measured at the amount of consideration promised, net of discounts and returns.

8. Basis for Converting Foreign Currency-Denominated Assets or Liabilities into Japanese Yen

Monetary assets and liabilities denominated in foreign currencies are converted to yen at the spot exchange rate prevailing at the end of the fiscal year. The resulting translation differences are recognized in profit or loss.

------

#### Notes on Significant Accounting Estimates

Accounting estimates are calculated based on reasonable amounts using information available at the time of preparing the financial statements. Among the amounts recorded in the financial statements for the current fiscal year that are based on accounting estimates, items that carry a risk of having a significant impact on the financial statements for the next fiscal year are as follows.

&nbsp;&nbsp;&nbsp;&nbsp;1. Recoverability of Deferred Tax Assets

Deferred tax assets are recognized only for future deductible temporary differences, unused tax loss carryforwards, and tax credits that are highly probable to be utilized against future taxable income. The amount and timing of future taxable income expected to be generated based on business plans and other factors are estimated to assess the likelihood of recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount Recorded in the Financial Statements for the Current Fiscal Year

Deferred tax assets: ¥851 million

<br> (2) Other Information That May Assist Users of the Financial Statements in Understanding the Nature of the Accounting estimates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Calculation Method for the Amount Recorded in the Financial Statements for the Current Fiscal Year

The Company recognizes deferred tax assets based on an assessment of their recoverability. This assessment considers factors such as the classification of the company as outlined in the "Guidance on the Recoverability of Deferred Tax Assets" (Accounting Standards Board of Japan Guidance No. 26) and the scheduling of the expected years for the reversal of temporary differences, taking into account the sufficiency of future taxable income.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Key Assumptions Used in Calculating Amounts Recorded in the Financial Statements for the Current Fiscal Year

<br> The Company's estimates of future taxable income are based on its business plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Impact on the Financial Statements for the Following Fiscal Year

Because the Company's assumptions involve future uncertainties, if the timing and amount of actual events differ from estimates, this could have a material impact on the financial statements for the subsequent fiscal year.<br>

&nbsp;&nbsp;&nbsp;&nbsp;2. Revenue Recognized over a Period of Time as Performance Obligations Are Satisfied

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amounts Recorded in the Financial Statements for the Current Fiscal Year

• Revenue: 455 million yen

The above amount is recorded for contracts where revenue is recognized over the contract period based on the measurement of progress toward fulfilling the performance obligation, and where the performance obligation has not been fully satisfied as of the end of the current fiscal year.

<br> (2) Other Information That May Assist Users of the Financial Statements in Understanding the Nature of Accounting Estimates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Calculation Method for Amounts Recorded in the Financial Statements for the Current Fiscal Year

For transactions involving the transfer of control over products over a period of time, the Company recognizes revenue by measuring the progress toward fulfilling its performance obligation using the input method based on the cost incurred. If progress cannot be reasonably measured, revenue is recognized only to the extent of costs incurred.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Key Assumptions Used in Calculating Amounts Recorded in the Financial Statements for the Current Fiscal Year

The primary assumption for revenue recognition based on measuring progress toward fulfilling performance obligations is the estimation of total costs. Total costs are estimated based on specifications required by the customer. However, estimates are reviewed promptly in response to changes in circumstances after the order is received.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Impact on the Financial Statements for the Following Fiscal Year

Estimates of total costs are tailored to customer specifications and are based on certain assumptions. Therefore, if a discrepancy arises between the estimated total costs and actual costs, changes in the estimated total costs due to revisions may affect the amount of revenue recognized in the financial statements for the subsequent fiscal year.<br>

#### Note Regarding Correction of Errors

As announced in the "Notice Regarding Postponement of Announcement of Financial Results for the Fiscal Year Ended March 2025" dated May 12, 2025, During the financial closing process for the fiscal year ended March 2025 (69th fiscal year), the Company identified potential errors concerning the appropriateness of the advance payment balance to overseas sales subsidiaries at the end of the period and the calculation of unrealized profits with overseas sales subsidiaries. Following an internal investigation, In calculating the elimination amount for unrealized profits within the consolidated financial statement process, certain foreign currency transactions were initially converted using management accounting exchange rates at the transaction date. However, during the closing process, when converting these transactions back to the actual market rate prevailing at the transaction date, this re-conversion was omitted for certain foreign currency transactions with overseas consolidated subsidiaries. Consequently, an error in the elimination amount for unrealized profits was discovered.

The Company determined that corrections were necessary for prior years and has amended the consolidated financial statements, financial statements, and quarterly consolidated financial statements previously filed with securities reports. Additionally, this amendment includes corrections for items previously deemed immaterial and not corrected in prior years, as well as items newly identified during the current audit process.

The cumulative effect of correcting this error is reflected in the book value of net assets at the beginning of the current fiscal year. As a result, the opening balance of retained earnings in the statement of changes in shareholders' equity has decreased by 813 million yen.

#### <br>

#### Notes to the Balance Sheet

1. Accumulated depreciation of tangible fixed assets: 15,253 million yen

2. Receivables from and Payables to Affiliated Companies (excluding those presented separately)

Short-term receivables 6,756 million yen <br> Short-term payables 5,791 million yen

3. Guarantee obligations

The Company has provided guarantees for the obligations of affiliated companies.

Nissei Honma Machinery Co., Ltd. 139 million yen <br> NEGRI BOSSI S.P.A. 2,431 million yen

4. Assets Pledged as Collateral and Related Liabilities

(1) <br> Assets pledged as collateral

Land 1,692 million yen <br> Buildings 297 million yen

(2) <br> Debts Secured by Collateral

Long-term borrowing payable due within one year 528 million yen <br> Long-term borrowings 71 million yen

#### Notes to the Statement of Income

Transactions with Affiliated Companies

<br> Operating Transactions

---

| | |
|:---|:---|
| Net sales | 19,438 million yen |
| Sales of components supplied | 5,340 million yen |
| Purchases | 14,179 million yen |
| Other | 838 million yen |

---

------

Non-Operating Transactions

Interest income 128 million yen <br> Dividend income 447 million yen <br> Other 201 million yen

#### Notes to the Statement of Changes in Shareholders' Equity

Class and Number of Treasury Stock at the End of the Fiscal Year

Common stock 3,035,655 shares

#### Notes on Tax Effect Accounting

#### <br>
Breakdown of Major Causes for Deferred Tax Assets and Deferred Tax Liabilities

---

| | |
|:---|:---|
| Deferred tax assets |  |
| &nbsp;&nbsp;&nbsp; Provision for bonuses  | 21 million yen |
| &nbsp;&nbsp;&nbsp; Product warranty provision  | 5 million yen |
| &nbsp;&nbsp;&nbsp; Inventory valuation loss  | 304 million yen |
| &nbsp;&nbsp;&nbsp; Provision for retirement benefits  | 793 million yen |
| &nbsp;&nbsp;&nbsp; Impairment loss  | 245 million yen |
| &nbsp;&nbsp;&nbsp; Loss on valuation of investments in affiliates  | 231 million yen |
| &nbsp;&nbsp;&nbsp; Others | <u>576</u> million yen |
| &nbsp;&nbsp;&nbsp; Subtotal  | 2,177 million yen |
| &nbsp;&nbsp;&nbsp; Valuation allowance (less)  | <u>997</u> million yen |
| &nbsp;&nbsp;&nbsp; Total deferred tax assets  | <u>1,180</u> million yen |
| Deferred tax liabilities |  |
| &nbsp;&nbsp;&nbsp; Valuation difference on other securities  | <u>329</u> million yen |
| &nbsp;&nbsp;&nbsp; Total deferred tax liabilities  | <u>329</u> million yen |
| &nbsp;&nbsp;&nbsp; Net deferred tax assets  | <u>851</u> million yen |

---

------

#### Notes on Transactions with Related Parties

Subsidiaries

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Name of Company, <br> etc. | Percentage <br> of Voting <br> Rights, etc. <br> Owned (%) | Related Party<br> Relationship | Details of Transaction | Transaction<br> Amount<br> (Millions<br> of Yen) | Account<br> Title | Balance at <br> End of Period<br> (Millions of <br> Yen) |
| NISSEI AMERICA, INC. | 100.00 | Sales destination<br> Contract manufacturer<br> Concurrent directorships | Acceptance of investment (Note 5)<br> Sales of products, etc. (Note 1)<br>| 7494<br> 8021<br> － | －<br> Accounts receivable<br> Contract liabilities | －<br> 417<br> 36 |
| NISSEI MEXICO, S.A. DE C.V. | 100.00 | Sales destination<br> Concurrent directorships | Sales of products, etc. (Note 1) | &nbsp;&nbsp;&nbsp;&nbsp;753 | Accounts receivable | 1207 |
| NISSEI PLASTIC (THAILAND) CO., LTD. | 100.00 | Sales destination<br> Concurrent directorships | Purchases of products, etc. (Note 4) | 926 | Advance payments | 1634 |
| Nissei Plastic Machinery (Taicang) Co., Ltd. | 100.00 | Contract manufacturer<br> Concurrent directorships | Commission fees (Note 8)<br> Paid supply of raw materials (Note 3)<br> Purchases of products, etc. (Note 3) | 103<br> 2195<br> 7867 | Accounts receivable<br> －<br> Accounts payable | 1078<br> －<br> 952 |
| Nissei Plastic Industrial Technology (Taicang) Co., Ltd. | 100.00 | Sales destination<br> Concurrent directorships | Sales of products, etc. (Note 1) | <br> 6304<br>| Accounts receivable | <br> 1332<br>|
| Nissei Technica Co., Ltd. | 100.00 | Financial assistance<br> Concurrent directorships | Assignment of payable obligations (Note 7) | － | Accounts payable | 3753 |
| NEGRI BOSSI S.P.A. | 99.99 | Sales destination<br> Concurrent directorships | Sales of products, etc. (Note 1)<br> Capital subscription (Note 5)<br> Loan of funds<br> Loan recovery (Note 2)<br> Debt guarantees (Note 6)<br> Interest received | 804<br> 713<br> 1122<br> 947<br> 2431<br> 127 | Accounts receivable<br> －<br> Short-term loans receivable<br> －<br> －<br> Accrued revenue<br>| 791<br> －<br> 2094<br> －<br> －<br> 1<br>|
| Nissei Plastic Machinery (Haiyan) Co., Ltd. | 100.00 | Contract manufacturer<br> Concurrent directorships | Acceptance of investment (Note 5) | 788 | － | － |

---

(Note) Transaction Terms and Policies for Determining Transaction Terms, etc.

&nbsp;&nbsp;&nbsp;&nbsp;1. Sales of our products and transfers of assets are determined considering market prices.

&nbsp;&nbsp;&nbsp;&nbsp;2. Interest rates on loans are determined reasonably, taking market interest rates into consideration.

&nbsp;&nbsp;&nbsp;&nbsp;3. For Nissei Plastic Machinery (Taicang) Co., Ltd., we supply components for a fee and subsequently purchase the finished products, etc., from them. The amounts for the fee-based supply and the
 purchase are determined by considering the amounts supplied to and purchased from other domestic and overseas assembly partners.

&nbsp;&nbsp;&nbsp;&nbsp;4. The terms for purchasing products from NISSEI PLASTIC MACHINERY (THAILAND) CO., LTD. are determined based on market prices.

&nbsp;&nbsp;&nbsp;&nbsp;5. This involved our company subscribing to an increase in capital.

&nbsp;&nbsp;&nbsp;&nbsp;6. The Company provided a debt guarantee for NEGRI BOSSI S.P.A.'s obligations. No guarantee fee was received.

&nbsp;&nbsp;&nbsp;&nbsp;7. The transfer to Nissei Technica Co., Ltd. was made at book value, and the settlement date for this transaction is the same as that for the original debt.

&nbsp;&nbsp;&nbsp;&nbsp;8. The fee for entrusted administrative services is determined reasonably through mutual agreement between the parties, taking into account costs such as personnel expenses.

#### .

#### Notes on Revenue Recognition
Information fundamental **for** understanding revenue arising from contracts with customers is omitted, as the same content is disclosed in the consolidated notes under "Notes on Revenue Recognition."

------

#### Notes on Per Share Information

#### <br>
1. Net Assets per Share: ¥1,726.30 <br> 2. Net Income per Share ¥50.53

------

<u>Independent Auditor's Report</u>

<u>June 30, 2025</u>

Nissei Plastic Industrial Co., Ltd.

<u>To the Board of Directors</u>

---

| | | |
|:---|:---|:---|
| Kanade Audit Corporation |  |  |
| Chuo-ku, Tokyo |  |  |
| Designated Partner | Certified Public Accountant | Masanori Sugita |
| Executive Partner | Certified Public Accountant | Masanori Sugita |
| Designated Partner | Certified Public Accountant | Ken Wakatsuki |
| Executive Partner | Certified Public Accountant | Ken Wakatsuki |

---

Audit Opinion

We have audited the consolidated financial statements of Nissei Plastic Industrial Co., Ltd. for the consolidated fiscal year from April 1, 2024, to March 31, 2025, namely, the consolidated balance sheet, consolidated statement of income, consolidated statement of changes in shareholders' equity, the consolidated notes, in accordance with the provisions of Article 444, Paragraph 4 of the Companies Act.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position and results of operations of the corporate group consisting of Nissei Plastic Industrial Co., Ltd. and its consolidated subsidiaries for the period covered by the consolidated financial statements in conformity with accounting principles generally accepted in Japan (Japanese GAAP).

Basis for the Audit Opinion

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are described in "Responsibility of the Auditor in the Audit of Consolidated Financial Statements." We are independent of the Company and its consolidated subsidiaries in accordance with the ethical requirements that are applicable to us in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

Other information consist of the Business Report and its supplementary schedules. Management is responsible for preparing and disclosing the Other Disclosures. The Audit and Supervisory Committee is responsible for overseeing the directors' execution of their duties in establishing and operating the reporting process for the Other Disclosures.

The scope of our audit opinion on the consolidated financial statements does not include the Other Disclosures, and we do not express an opinion on the Other Disclosures.

Our responsibility in the audit of the consolidated financial statements is to read the other information and, in doing so, consider whether there are any material inconsistencies between the other information and the consolidated financial statements or our knowledge obtained during the audit, and to pay attention to whether there are any indications of material misstatement in the other information other than such material inconsistencies.

Based on the work performed, we are required to report any facts that we determine indicate a material misstatement in the other information.

We have nothing to report regarding the other information.

Management's and Audit and Supervisory Committee's Responsibility 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 establishing and maintaining internal controls that management determines are 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 evaluating whether it is appropriate to prepare the consolidated financial statements on a going concern basis and, if disclosure of matters related to going concern is necessary based on accounting principles generally accepted in Japan, for making such disclosures.

The responsibility of the Audit and Supervisory Committee is to monitor the directors' execution of their duties in establishing and operating the financial reporting process.

Responsibility of the Auditor in the Audit of Consolidated Financial Statements

The auditor's responsibility is to obtain reasonable assurance, based on the audit performed, as to whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to express an opinion on the consolidated financial statements in the auditor's report from an independent standpoint. A material misstatement is considered significant if it is reasonably likely to influence the decisions of users of the consolidated financial statements, either individually or in the aggregate, and may arise from fraud or error.

The auditor, in accordance with auditing standards generally accepted in Japan, exercises professional judgment and maintains professional skepticism throughout the audit process to:

&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement due to fraud or error. Plan and perform audit procedures responsive to those risks. The selection and application of audit procedures are based on the auditor's
 judgment. Furthermore, obtain sufficient and appropriate audit evidence to form the basis for the opinion.

&nbsp;&nbsp;&nbsp;&nbsp;• Although the purpose of an audit of consolidated financial statements is not to express an opinion on the effectiveness of internal control, the auditor considers internal control relevant to the audit when performing
 risk assessment to design appropriate audit procedures in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of the accounting policies adopted by management and their application, as well as the reasonableness of the accounting estimates made by management and the appropriateness of related
 disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;• Conclude whether it is appropriate for management to prepare the consolidated financial statements on a going concern basis, or whether, based on the audit evidence obtained, there is significant uncertainty regarding
 events or conditions that may cast significant doubt on the going concern assumption. If significant uncertainty exists regarding the going concern assumption, the auditor is required to draw attention to this in the notes
 to the consolidated financial statements in the audit report. Alternatively, if the notes to the consolidated financial statements regarding the significant uncertainty are inadequate, the auditor is required to express a
 qualified opinion with exceptions on the consolidated financial statements. The auditor's conclusion is based on audit evidence obtained up to the date of the audit report; however, future events or circumstances may prevent
 the company from continuing as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;• The auditor evaluates whether the presentation and notes to the consolidated financial statements comply with accounting standards generally accepted in Japan, as well as the presentation, structure, and content of the
 consolidated financial statements, including related notes, and whether the consolidated financial statements fairly present the underlying transactions and accounting events.

&nbsp;&nbsp;&nbsp;&nbsp;• To express an opinion on the consolidated financial statements, the auditor obtains sufficient and appropriate audit evidence regarding the financial information of the Company and its consolidated subsidiaries. The
 auditor is responsible for the direction, supervision, and performance of the audit of the consolidated financial statements. The auditor alone is responsible for the audit opinion.

The auditor shall report to the Audit and Supervisory Committee on the scope of the planned audit and its timing, significant audit findings including material weaknesses in internal controls identified during the audit process, and other matters required by auditing standards.

The auditor shall report to the Audit and Supervisory Committee on compliance with the provisions of professional ethics in Japan regarding independence, as well as on matters reasonably considered to affect the auditor's independence. If measures have been taken to eliminate impediments or safeguards have been applied to reduce impediments to an acceptable level, the auditor shall report on the content of such measures or safeguards.

Interests

There are no interests to be disclosed under the Certified Public Accountants Act between the Company and its consolidated subsidiaries, and the audit firm or the engagement partners, respectively.

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<u>Independent Auditor's Report</u>

<u>June 30, 2025</u>

Nissei Plastic Industrial Co., Ltd.

<u>To the Board of Directors</u>

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| | | |
|:---|:---|:---|
| Kanade Audit Corporation |  |  |
| Chuo-ku, Tokyo |  |  |
| Designated Partner | Certified Public Accountant | Masanori Sugita |
| Executive Partner | Certified Public Accountant | Masanori Sugita |
| Designated Partner | Certified Public Accountant | Ken Wakatsuki |
| Executive Partner | Certified Public Accountant | Ken Wakatsuki |

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Audit Opinion

We have audited the financial statements of Nissei Plastic Industrial Co., Ltd. for the 69th fiscal year from April 1, 2024, to March 31, 2025, namely, the balance sheet, statement of income, statement of changes in shareholders' equity, notes to the financial statements, and the accompanying schedules (hereinafter referred to as the "Financial Statements, etc."), in accordance with the provisions of Article 436, Paragraph 2, Item 1 of the Companies Act.

In our opinion, the financial statements, etc. referred to above present fairly, in all material respects, the financial position and results of operations of the Company for the period covered by the financial statements, etc. in conformity with accounting principles generally accepted in Japan (Japanese GAAP).

Basis for the Audit Opinion

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are described in "Responsibility of the Auditor in the Audit of Financial Statements, etc." We are independent of the Company in accordance with the ethical requirements that are applicable to us in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

Other Disclosures consist of the Business Report and its supplementary schedules. Management is responsible for preparing and disclosing the Other Disclosures. The Audit and Supervisory Committee is responsible for overseeing the directors' execution of their duties in establishing and operating the reporting process for the Other Disclosures.

The scope of our audit opinion on the financial statements, etc. does not include the Other Disclosures, and we do not express an opinion on the Other Disclosures.

Our responsibility in the audit of the financial statements, etc. is to read the other information and, in doing so, consider whether there are any material inconsistencies between the other information and the financial statements, etc. or our knowledge obtained during the audit, and to pay attention to whether there are any indications of material misstatement in the other information other than such material inconsistencies.

Based on the work performed, we are required to report any facts that we determine indicate a material misstatement in the other information.

We have nothing to report regarding the other information.

Management's and Audit and Supervisory Committee's Responsibility 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 establishing and maintaining internal controls that management determines are 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 evaluating whether it is appropriate to prepare the financial statements, etc. on a going concern basis and, if disclosure of matters related to going concern is necessary based on accounting principles generally accepted in Japan, for making such disclosures.

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The responsibility of the Audit and Supervisory Committee is to monitor the directors' execution of their duties in establishing and operating the financial reporting process.

Responsibility of the Auditor in the Audit of Financial Statements, etc.

The auditor's responsibility is to obtain reasonable assurance, based on the audit performed, as to whether the financial statements, etc. as a whole are free from material misstatement, whether due to fraud or error, and to express an opinion on the financial statements, etc. in the auditor's report from an independent standpoint. A material misstatement is considered significant if it is reasonably likely to influence the decisions of users of the financial statements, etc., either individually or in the aggregate, and may arise from fraud or error.

The auditor, in accordance with auditing standards generally accepted in Japan, exercises professional judgment and maintains professional skepticism throughout the audit process to:

&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement due to fraud or error. Plan and perform audit procedures responsive to those risks. The selection and application of audit procedures are based on the auditor's
 judgment. Furthermore, obtain sufficient and appropriate audit evidence to form the basis for the opinion.

&nbsp;&nbsp;&nbsp;&nbsp;• Although the purpose of an audit of financial statements, etc. is not to express an opinion on the effectiveness of internal control, the auditor considers internal control relevant to the audit when performing risk
 assessment to design appropriate audit procedures in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of the accounting policies adopted by management and their application, as well as the reasonableness of the accounting estimates made by management and the appropriateness of related
 disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;• Conclude whether it is appropriate for management to prepare the financial statements, etc. on a going concern basis, or whether, based on the audit evidence obtained, there is significant uncertainty regarding events or
 conditions that may cast significant doubt on the going concern assumption. If significant uncertainty exists regarding the going concern assumption, the auditor is required to draw attention to this in the notes to the
 financial statements, etc. in the audit report. Alternatively, if the notes to the financial statements, etc. regarding the significant uncertainty are inadequate, the auditor is required to express a qualified opinion on
 the financial statements, etc. The auditor's conclusion is based on audit evidence obtained up to the date of the audit report; however, future events or circumstances may prevent the company from continuing as a going
 concern.

&nbsp;&nbsp;&nbsp;&nbsp;• The auditor evaluates whether the presentation and notes to the financial statements, etc. comply with accounting standards generally accepted in Japan, as well as the presentation,
 structure, and content of the financial statements, etc., including related notes, and whether the financial statements, etc. fairly present the underlying transactions and accounting events.

The auditor shall report to the Audit and Supervisory Committee on the scope of the planned audit and its timing, significant audit findings including material weaknesses in internal controls identified during the audit process, and other matters required by auditing standards.

The auditor shall report to the Audit and Supervisory Committee on compliance with the provisions of professional ethics in Japan regarding independence, as well as on matters reasonably considered to affect the auditor's independence. If measures have been taken to eliminate impediments or safeguards have been applied to reduce impediments to an acceptable level, the auditor shall report on the content of such measures or safeguards.

Interests

There are no interests between the Company and our audit firm or our engagement partners that are required to be disclosed under the Certified Public Accountants Act.

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#### Audit Report

The Audit and Supervisory Committee has audited the execution of duties by the directors during the 69th fiscal year from April 1, 2024, to March 31, 2025. We hereby report thereon as follows.

1. Audit Methods and Content

The Audit and Supervisory Committee regularly received reports from directors and employees regarding the status of the establishment and operation of such systems (internal control systems) based on resolutions of the Board of Directors concerning the matters listed in Article 399-13, Paragraph 1, Item 1, Sub-items (b) and (c) of the Companies Act. The Committee requested explanations as necessary, expressed opinions, and conducted audits using the following methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In accordance with the audit policies and division of duties established by the Audit and Supervisory Committee, and in coordination with the Company's internal control department, the
 Committee attended important meetings, received reports from directors and employees on matters concerning the execution of their duties, requested explanations as necessary, reviewed important decision documents, and
 investigated the status of operations and assets at the head office and major business locations.With respect to subsidiaries, the Committee received Business Reports from the department overseeing overseas subsidiaries
 and from directors of such subsidiaries, and investigated the status of operations and assets as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Committee monitored and verified whether the accounting auditor maintained independence and conducted audits properly, and received reports from the Accounting Auditor on the status of
 their duties and requested explanations as necessary.

The Committee also received notification from the Accounting Auditor that the "system to ensure that duties are performed properly" (matters listed in each item of Article 131 of the Corporate Accounting Regulations) had been established in accordance with the "Quality Control Standards for Audits" (Business Accounting Council of Japan) and other relevant standards, and requested explanations as necessary.

Based on the methods mentioned above, the Committee examined the Business Report and its supplementary schedules, the financial statements (balance sheet, statement of income, statement of changes in shareholders' equity, and notes to financial statements) and their supplementary schedules, and the consolidated financial statements (consolidated balance sheet, consolidated statement of income, consolidated statement of changes in shareholders' equity, and consolidated notes) for the fiscal year under review.

2. Audit Findings

(1) Audit Findings on the Business Report, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Committee confirms that the Business Report and its supplementary schedules accurately present the company's situation in accordance with the applicable laws and regulations and the
 articles of incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Committee found no evidence of any illegal acts or material violations of laws, regulations, or the Articles of Incorporation in the execution of duties by the directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Committees considers the content of the Board of Directors' resolution regarding the internal control system to be appropriate. Furthermore, the Committee found no matters requiring
 comment regarding the content of the Business Report concerning this internal control system or the execution of duties by the directors .

However, as stated in the Business Report, the internal control over financial reporting has material weaknesses that require disclosure and is therefore ineffective. The directors are working to improve this, and it has not affected the appropriateness of the financial statements and their accompanying schedules for the current period, nor the consolidated financial statements. the Committee will continue to monitor the ongoing improvement efforts.

As stated in the Business Report, the Company received a recommendation from the Japan Fair Trade Commission based on the Act against Delay in Payment of Subcontract Proceeds, Etc. The Committee will continue to monitor whether appropriate corrective and recurrence prevention measures are being implemented across the entire Group, as well as the effectiveness of these recurrence prevention measures.

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(2) Audit Findings on Financial Statements and Supplementary Schedules

The Committee acknowledges that the audit methods and results of the accounting auditor, Kanade Audit Corporation, are appropriate.

(3) Audit Findings on Consolidated Financial Statements

The Committee acknowledges that the audit methods and results of the accounting auditor, Kanade Audit Corporation, are appropriate. Furthermore, the Committee has received a report from Kanade Audit Corporation stating that, as disclosed in the Business Report, the accounting audit was conducted with due consideration given to the fact that internal controls over financial reporting had material weaknesses requiring disclosure and were therefore ineffective.

June 30, 2025

Nissei Plastic Industrial Co., Ltd. Audit and Supervisory Committee

Director <br> (Full-time Audit and Supervisory Committee Member) <br> Yoshinori Handa <u>(seal)</u>

Outside Director <br> (Audit and Supervisory Committee Member) <br> Kazuyuki Narusawa <u>(seal)</u>

Outside Director <br> (Audit and Supervisory Committee Member) <br> Haruko Nishida <u>(seal)</u>

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