Taiheiyo Cement : Promotion of Sustainability Management

Further Promotion

of Global Strategies

Revitalization of Domestic Business

Promotion of Sustainability Management and Contribution to Carbon Neutrality

Value Creation Story

Promotion of Sustainability Management

- Carbon Neutral Strategy

Yasuyuki Ishida

General Manager of GX Department

Eiji Satou

General Manager

of C2SP Kiln Project Team

Hiroyuki Takano

Managing Executive Officer Senior General Manager of Research

& Development Division

Social Environment

• Significant investment and stronger collaboration in transformation policies will be required for the technological innovation and social implementation to achieve a carbon-neutral society. We are enhancing engagement to make maximum use of government subsidy programs and accelerating the process from research and development to social implementation.

• To maximize the value of green products, we are working in collaboration with the Japan Cement Association and other organizations to promote the dissemination and market value enhancement of environmental labels and environmentally friendly products.

• The GX-ETS, to be fully implemented from FY2027, is a market mechanism that fairly evaluates efforts to reduce emissions. Through collaboration and dialogue with industry associations and the government, we are fulfilling our role as a leading company in the GX-ETS framework.

• Decline in domestic demand

  Risks

• Population decline and labor shortage

• Addressing decarbonization

  Opportunities

• Introduction of new technologies (such as the C2SP kiln)

• Enhancing competitiveness through the development, standardization, and

  dissemination of products that meet the growing demand for green products

• Strategic response to GX-ETS through collaboration and dialogue with industry associations and the government

  Background to the Establishment of the GX Department

  In light of the Japanese government's Green Transformation (GX) policy, the Company newly established the GX Department in April 2025 with the aim of formulating and promoting strategies to achieve carbon neutrality and further accelerating related technological development.

  Anticipating the full implementation of Japan's domestic emissions trading system (GX-ETS) in FY2027, the department

  Progress under the 26 Medium-Term Management Plan

  is engaged in developing strategies that will contribute to the growth of the cement industry and in advocating with the government. It is also advancing the development of fundamental technologies for innovative CO2 capture and CCUS, while promoting the dissemination of the Company Group's technologies and products as part of disaster-mitigation efforts.

  Strengths

  • Proprietary CO2 separation and recovery technology (C2SP kiln) aimed at setting the global standard in cement manufacturing

  • Advanced technological capabilities and proven track record in blended cement both in Japan and overseas

  • Strong adaptability for technological deployment in the carbon-neutral field through global business development

    Governance

    Reduction of CO² emissions intensity

    by

    more than 20% compared to 2000 levels

    Carbon Neutral

The Vice President and Representative Director oversees all activities related to carbon neutrality. In addition, the company has established the Carbon Neutral Strategy Committee as a cross-functional organization to promote decarbonization strategies in tandem with management strategy. Under this committee, the

Based on the Carbon Neutral Strategy 2050, we are actively pursuing both the maximum utilization of existing technologies and the development of innovative technologies. At the same time, we are engaging with the government and industry bodies by making policy and regulatory proposals, while also working to raise awareness and promote action across society as a whole.

Vision	Carbon Neutral Strategy 2050
Predictability of Investment Recovery	Response to the Emissions Trading System (GX-ETS)
	Monetization of Environmental Value (CO2 Reduction)
Standardization	International Standardization
Development and Deployment of Innovative Technologies	Carbon-Neutral Model Plant Initiative
	Development of CO2 Recovery-type Cement Manufacturing Process
	Advanced CCS Project
Response to Extreme Disasters Associated with Climate Change	Dissemination and Deployment of Countermeasure Technologies and Products

• Under the technological development roadmap, we are steadily promoting R&D aimed at achieving carbon neutrality, and the progress of these initiatives has been smooth.

• We are promoting external engagement for rule-making and strengthening our internal framework in preparation for the full-scale implementation starting in FY2027.

• Green Cement: We are developing both the mass balance method and the book-and-claim method to monetize environmental value in the form of CO2 reduction.

• Definition of Low-Carbon Cement and Concrete: Development of a low carbon rating system under the GCCA (Global Cement and Concrete Association).

company formulated the Carbon Neutral Strategy 2050, which outlines the goal of achieving carbon neutrality by 2050, along with medium-term targets for 2030 and a technology development roadmap.

In April 2025, anticipating the full-scale introduction of GX-ETS in 2026, the company established the GX Department to formulate related strategies and further accelerate the development of innovative decarbonization technologies, as well as the C2SP Kiln Project Team

to ensure the smooth implementation of C2SP kiln modification work at DC Co., Ltd.

Initiatives aimed at achieving carbon neutrality across the entire supply chain by 2050

countermeasures

Extreme disaster

Innovative Approach - Developing world-leading technologies

Progressive Approach

- Enhancing existing technologies and horizontally deploying new ones

Immediate Approach Standardization and expansion of blended CO² Capture (C2SP Kiln)

- Maximizing the utilization cement (expansion of use)

of existing technologies

Acceleration of shift to blended cement

Development of a supply system for supplementary cementitious materials

Promotion of alternatives to fossil fuels

Gas Firing (methane, hydrogen, etc.)

Low-CO² Cement (CARBOFIX®) Development of new grinding aids CO² Fixation (CARBOCATCH®)

CCU (e.g., methanation)

CCS (purification and shipping technologies)

Collaboration with Yakushima Town Promotion of CN model plant on its Zero-Carbon Island Declaratio development at DIC Co., Ltd

Application of existing technologies and development of new ones

(e.g., Ground improvement materials, world's strongest concrete, etc.)

2024 2026 2030 2050

Carbon Neutral Initiatives

Development of Innovative

Technologies

Existing Technologies: CO² Reduction

Existing Technologies:

CO² Absorption

CN Model Projects

CN:Carbon Neutral

46 TAIHEIYO CEMENT REPORT 2025

• CO2 Accounting, Measurement, and Reporting: Formulation of the GCCA CO2 Protocol Version 4.0.

• Established the C2SP Kiln Project Team as the division responsible for the design and construction of demonstration-scale facilities. The project is progressing smoothly.

• Demonstration testing of the C2SP kiln prototype is currently underway, and the set targets have been achieved.

• Developing methanation technology that converts recovered CO2 into synthetic methane.

• Participating in the Advanced CCS Project led by JOGMEC (Japan Organization for Metals and Energy Security). Currently conducting basic design work for CCS (CO2 separation, capture, and storage) systems for cement flue gas.

• Produced a PR brochure summarizing the Group's technologies and products useful for extreme disaster countermeasures, and are promoting proposal activities.

Topics

Recycling of Disaster waste into cement resources

(2024 Noto Peninsula Earthquake)

Ultra-high-strength fiber-reinforced concrete

(DUCTAL)

Initiatives to Promote Technologies and Products for Extreme Disaster Response In preparation for the increasing severity of

natural disasters associated with climate change, we have produced a PR brochure that introduces the Group's products and technologies, organized by phase-"Prevention and Mitigation", "Restoration" and "Early Reconstruction." This brochure is being utilized for external technical presentations and proposal activities to local governments and contractors, thereby promoting the wider adoption of our Group's products.

TAIHEIYO CEMENT REPORT 2025 47

Value Creation Story

[Special Feature] C2SP Kiln

Development of a CO² capturing cement production process

Toward establishing innovative technologies to capture the CO² generated in the cement manufacturing process and effectively utilize the captured CO², we are promoting the development of a CO² capturing cement production process (FY2022-FY2031) as part of the NEDO (New Energy and Industrial Technology Development Organization)

Green Innovation (GI) Fund project.

Please read right to left.

of Global Strategies

Further Promotion

Revitalization of Domestic Business

Promotion of Sustainability Management and Contribution to Carbon Neutrality

The C2SP kiln, our savior of carbon neutrality, is amazing "World first technology"

Development details of the GI Fund Project

C2SP kiln flow

What's your favorite thing?

Recover CO2!? How? Is that even possible?

I'm the C2SP kiln's CO2 capture calciner! I capture CO2!

Amazing Point

The large amount of CO2 emitted in the cement manufacturing process is a major challenge

Burning Process

In the cement production process, the raw materials are

CO₂を回収!? 私はC2SPキルンの

Finishing process

heated before entering the kiln in a device called a preheater, and then fired at a high temperature in the rotary kiln. Most of the raw material-derived CO² is generated in a combustion device called a calciner in this preheater. Focusing on this point, we are developing the "C2SP kiln," which can directly capture CO² with compact equipment by increasing the CO²

concentration in the calciner exhaust gas by using a mixture of oxygen and CO² instead of the usual air as the combustion gas

!

Preheater

Raw material process

Energy

Gas flow

Raw material-derived + energy-derived CO²

Raw material flow

Raw material-derived CO²

(Captured as concentrated CO²)

Effective use of CO²

	Energy-derived CO²
	Methanation

calciner

CO²-capture

Reuse of CH4

どのような 方法で?

CO₂回収型仮焼炉です

!

CO₂を回収し ます

CO₂

for the calciner.

In addition, as one of the methods for effectively utilizing the captured CO², we are also promoting the development of technology for producing synthetic methane (methanation)

Rotary kiln

Combustion gas (O₂ + CO₂)

セメント製造工程で排出される

多量の は大きな課題です

我が社の

革新的新システムを深掘りします

説明

しましょう

Energy

suitable for use in the cement manufacturing process.

Progress of Research and Development

In March 2024, a demonstration test facility was completed in Sanyo Onoda City, Yamaguchi Prefecture, and since then we

By applying oxy-combustion to the calciner,

highly concentrated CO² can be directly captured from the cement process.

preparation for the introduction of full-scale demonstration equipment, which is the next stage.

Amazing Point

3

Let me explain

What!?

CO2 capture calciner

Ta-da!

2 1

We'll take a deep dive into our innovative new system

have been continuously conducting demonstration tests while making improvements to the equipment.

In the development of the C2SP kiln, we have set targets such as the decarbonation rate of raw materials and the CO²

In the development of methanation technology, the C2SP

kiln exhaust gas contains small amounts of impurities that may lead to the degradation of the methanation catalyst, thus requiring pretreatment equipment to remove them.

Installation just replaces the conventional calciner

導入は従来の仮焼炉を

置き換えるだけ

従来のキルンの

利点は継承して 設備更新できます

The benefits of conventional kilns are retained when updating the equipment

I see!!

Is it hard to install?

The CO2 capture calciner uses "oxygen"

for combustion gas, making the exhaust gas highly concentrated CO2!

CO₂回収型仮焼炉は

Conventional calciners use "air" for combustion gas

従来の仮 焼炉は燃焼用ガスに

"Attention" 70% of CO2 is generated in the calciner

そこに着目

CO₂の70%は仮焼炉か ら

!

concentration in the exhaust gas, and this technological

development is progressing smoothly, having already achieved results that clear these targets. We are currently acquiring

the technical data necessary for the equipment design in

In demonstration tests to date, we have cleared target

performance metrics such as the initial methane conversion rate, along with the removal of impurity components by the pretreatment equipment.

燃焼用ガスに「 酸素」を使用することで排ガスは高濃度のCO₂に

「空気」を 使用

発生しています

設置は大変なんですか

Project Progress and Schedule

2021~2023 2024~2025 2026~2030

? 排ガス系統を

キルンと分離することで高濃度のCO₂を

!

直接回収できる

C2SP kiln technology development

Design and construction of demonstration

[test] equipment

Performance evaluation and demonstration with the demonstration [test] equipment

[Full-scale] demonstration equipment basic design [Full-scale] demonstration equipment detailed

Leave it to me

5

Over to you

Highly

4

Amazing By separating the exhaust gas system from the kiln,

design, construction, operation

concentrated CO2

Point highly concentrated CO2 can be captured directly!

Methanation

Design and construction

Performance evaluation and demonstration

FS for cement production

We are currently developing

Methane

Amazing Highly concentrated CO2 can be used as a raw

By the way, what's so great

technology development

of demonstration test equipment

with the demonstration test equipment

it for implementation

Hydrogen

Point

material for methane or stored underground

高濃度のCO₂は

メタンなどの原料 として

about highly concentrated CO2?

と、とこ ろで高濃度CO₂って

Study for CCS of captured CO²

We are studying technology for storing CO² captured by

Cement plant CO²

CO² liquefaction,

利用したり

地中に貯留で きるんです

何がすごいん

ですか?

!!

the C2SP kiln underground (CCS) through JOGMEC (Japan Organization for Metals and Energy Security) / Advanced CCS Projects.

The basic design of these facilities is underway, with the assumption that the purification facility for separated and captured CO² will be installed at DC Co., Ltd., and the

liquefaction, storage, and shipping facility will be installed at

Toyo Wharf & Warehouse Co., Ltd.

separation and capture

²

CO² recovery and purification unit CO

Cement kiln

storage, and shipping

²

CO storage tank Loading arm

Liquefaction unit

²

Liquefied CO carrier ship

現在実施に向けて

開発をすすめています

未来が楽しみだわ

CO₂

!!

すごい

悩みの種だったが再利用

できるのね

8 7 6

I'm excited for the future!! Amazing!! So, the CO2 that was such a headache can be reused.

I'm glad you asked

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Further Promotion

of Global Strategies

Revitalization of Domestic Business

Promotion of Sustainability Management and Contribution to Carbon Neutrality

Value Creation Story

Promotion of Sustainability Management - DX Strategy

Tsutomu Kato

General Manager of DX Department

Takaji Kawabe

Managing Executive Officer

In April 2025, the Company established the DX Department to advance digital transformation (DX), one of the key strategies under the 26 Medium-Term Management Plan. In August of the same year, the Company announced the full acquisition of Pacific Systems Corporation, a group company engaged in system development. Through this integration, the Company aims to maximize synergies between the two organizations and promote DX across the entire Group.

Through the development of an AI-based ship allocation planning support system, the Company has achieved greater

operational efficiency and faster information sharing, while also improving planning accuracy and reducing operating costs.

Going forward, the Company will continue to integrate advanced technologies with accumulated data to further promote the efficiency and automation of its plants

and offices. At the same time, it will foster a culture of transformation throughout the Group and enable all employees to effectively utilize the latest technologies, thereby achieving sustainable growth.

Initiatives and Progress under the 26 Medium-Term Management Plan

To enhance production processes, the Company is promoting the development of smart factories aimed at labor savings and improved productivity in plant operations.

Production Process Innovation (Smart Factory) Outline of Strategy Progress Status

The Kumagaya Plant has been designated as a model facility, where initiatives include autonomous drone on-site patrols and AI-based equipment management systems. At the Kamiiso Plant, an AI-assisted operation system for production lines has been introduced, and with progress toward automating all three kilns, expansion to the Oita Plant is now under consideration.

Promote productivity improvement and efficient allocation of human capital by streamlining business processes and centralizing management functions through digital technology.

Operational Efficiency Reform (Smart Office) Outline of Strategy Progress Status

Generative AI is being utilized for preparing materials and meeting minutes and, through pilot implementation, the Company is verifying its practical applications across various operations. In addition, through "Sales DX", efforts are underway to improve operational efficiency and customer responsiveness using digital tools. The Company is also promoting work

efficiency through the use of digital technologies such as RPA and generative AI, while expanding remote work to remove location constraints and promote borderless workstyles.

DX Human Resource Development Outline of Strategy Progress Status

Aiming to enhance operational efficiency and productivity in preparation for a declining workforce. The Company plans to develop 450 DX professionals during the 26 Medium-

Term Management Plan period, focusing on individuals skilled in generative AI, automation tools, and data analytics.

Social Environment

• The Company is focusing on institutional design and human resource development to enhance the organization's overall digital capability.

• With the establishment of the DX Department in April 2025 and the development of an education

  framework, a foundation has been built to empower all employees to become agents of transformation.

• Efforts are underway to embed DX not merely as a departmental initiative but as an integral part of the corporate culture.

• Decline in operational efficiency: Continued reliance on manual and paper-based processes hinders productivity and strains human resources.

  Risks

• Loss of competitiveness: Inability to promptly respond to market and customer needs may result in falling behind competitors.

• Difficulty in securing talent: Challenges in attracting and retaining younger talent who seek digital work environments could impact organizational sustainability.

• Disruption in knowledge transfer: Loss of expertise from veteran employees makes it difficult to pass on skills and know-how to younger generations.

  Opportunities

• Serves as a catalyst for structural transformation in the cement industry, enabling the Company to enhance both its competitiveness and social value.

• Accelerates sustainable growth and the development of a highly resilient organization through data-driven decision-making, swift responses to customer needs, and the realization of diverse workstyles.

  Expanding the scope

  In FY2025, 170 advanced digital professionals were trained.

  
  
  

  Target: Develop 450 DX human resources across the company by FY2027

  Core personnel for digital planning: 150

  Role Resolving challenges within the business site and contributing to the business through the use of digital technology

  Advanced personnel in digital utilization: 300

  Role Using automated workflow tools, data analysis tools, etc.

  Strengths

  • The Company's strength lies in its ability to balance operational optimization and customer value creation, underpinned by enhanced digital literacy across the organization.

  • Through the use of AI and digital tools, it has improved supply chain efficiency, deepened customer relationships, and supported employee retention and engagement, thereby strengthening its overall transformation capability.

of target employees according to

their level

Company-wide information literacy training (for all employees)

Role Enhancing knowledge of DX, the latest IT technologies, information security, etc.

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Further Promotion

of Global Strategies

Revitalization of Domestic Business

Promotion of Sustainability Management and Contribution to Carbon Neutrality

Value Creation Story

Promotion of Sustainability Management

- Human Capital Strategy

Masahiro Ban

Managing Executive Officer

Kunihiro Nakamura

Executive Officer General Manager of

Human Resources Department

Our basic policy for human capital strategy is to regard our people as "capital" - the driving force behind our growth and the source of our competitiveness - and to create an environment in which each individual can demonstrate their full potential by respecting one another's individuality and values.

Under the 26 Medium-Term Management Plan, we have identified three key focus areas for developing human resources aligned with our Group's management strategy: "development of global human resources", "promotion of

workplace diversity", and "development of management human resources." We are steadily advancing various initiatives to achieve these goals.

By advancing smart office initiatives aimed at improving administrative efficiency in anticipation of a labor-constrained society, we are creating new ways of working and enhancing employee engagement. At the same time, through initiatives that help employees balance work and personal life and fully demonstrate their abilities, we strive to maximize the value of our human capital.

Initiatives and Progress under the 26 Medium-Term Management Plan

In addition to expanding the overseas trainee program, the company is implementing overseas language study and internship programs while promoting exchanges with overseas group companies.

Development of global human resources Outline of Strategy Progress Status

Since last fiscal year, the company has resumed in-person overseas internship training in Malaysia. Under the overseas trainee program, employees were dispatched to the Philippines, Thailand, and Vietnam, while the overseas language study program supported language learning through study in the United States and Canada.

Support the career development of female employees while promoting hiring of experienced persons through diverse hiring practices such as the recruitment of foreign nationals, referral hiring, and alumni hiring. In addition, focus on expanding the employment of persons with disabilities and senior personnel.

Promotion of workplace diversity Outline of Strategy Progress Status

The ratio of female employees reached the target of 10%, and the ratio of female managers achieved the FY2027 goal of 3% ahead of

schedule. Three foreign employees were newly hired. The employment rate of persons with disabilities stood at 2.6%, exceeding the statutory requirement; however, as the statutory rate will rise to 2.7% in July 2026, continuous recruitment efforts will be made.

Enhance executive training programs and next-generation leader development training (for women), while promoting reskilling initiatives.

Development of management human resources Outline of Strategy Progress Status

Implemented executive training programs such as the Management Academy and Financial Leadership Program. For next-generation

Social Environment

leadership development training, external training sessions were held to provide opportunities for participants to interact with female role models.

• In response to current labor conditions, we have begun to review the restructuring of the personnel system,

  including reconsidering the transfer system and personnel management systems based on work location.

• As the development of global human resources is an urgent priority for our growth strategy, we are actively expanding our overseas trainee programs and related initiatives.

• To enhance recruitment and retention, we have raised salaries, including for new employees.

• Outflow of human resources

  Risks

• Imbalance in employee age distribution (shortage of mid-career personnel)

  Opportunities

• Development of global human resources

• Promotion of diversity and inclusion

• Cultivation of management personnel

• Enhancement of employee well-being (flexible work styles and health-oriented management)

  Topics

  
  
  

  Certified as a "Health and Productivity Management Excellent Corporation 2025 (Large Enterprise Category)"

  The company has been certified for the third consecutive year as a Health and Productivity Management Excellent Corporation 2025 (Large Enterprise Category) by Japan's Ministry of Economy, Trade and

  Industry (METI) and the Nippon Kenko Kaigi. This recognition demonstrates the outcome of the company's commitment to the annual health management action plan that is part of the company's human capital management. In FY2025, the company organized a walking event in collaboration with its Health Insurance Society. Going forward, it will continue to work closely with related organizations to promote and maintain the health of employees and their families, and to create a workplace environment where all

  Strengths

  employees can fully demonstrate their capabilities.

  Enhanced training system

  • A variety of OJT/OFF-JT programs, e-learning opportunities, and training courses provide an environment that supports continuous skill development for employees.

Employee engagement score

• In the employee survey conducted in May 2025, items such as "satisfaction with company policies and business strategies", "work-life balance" and "pay satisfaction" were identified as key strengths.

  Support systems for flexible work styles

  • Systems such as flextime, telecommuting, and maternity/childcare leave follow-up interviews are well established, creating a comfortable and supportive work environment.

Tobitate! (Leap for Tomorrow) Study Abroad Initiative - New Japan Representative Program

In recognition of its support for the Tobitate! Study Abroad Initiative - New Japan Representative Program, a public-private overseas study support scheme, the company was awarded the Medal with Dark Blue Ribbon on March 6, 2025. This program, jointly operated by Japan's Ministry of Education, Culture, Sports, Science and Technology (MEXT) and the Japan Student Services Organization (JASSO), promotes overseas study opportunities for young people in Japan. The company began supporting the initiative in 2015 and continues to do so as of 2025. Moving

forward, it will remain committed to fostering global human resources both within and outside the organization.

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Value Creation Story

of Global Strategies

Further Promotion

Promotion of Sustainability Management and Contribution to Carbon Neutrality

Revitalization of Domestic Business

Promotion of Sustainability Management - IR Strategy [Special Feature: Dialogue] Engagement with Investors

Hideaki Asakura

Vice President

and Representative Director

Hideyuki Furikado

Independent Director

Building Long-Term Trust and Sincere Dialogue toward Sustainable Growth and Enhanced Corporate Value

better use of our 140-year history and achievements to convey the Group's value to a wider audience. For example, I would like individual investors to know that the cement industry also plays a role in waste treatment, and that during large-scale disasters such as the Great East Japan Earthquake, it accepts and processes disaster-related waste.

Direction of Dialogue on the Carbon Neutral Strategy

Asakura:

Although we are seeing some backlash against ESG investing, our Group continues to position the carbon neutral (CN) strategy as a core growth strategy. Our direction remains unchanged-we are steadily advancing initiatives that look toward the future, ensuring that we can clearly explain our strategies and progress to investors at any time. We are also leveraging government subsidies and collaborating with national and local authorities to promote our projects.

Furikado:

Although recent trends surrounding ESG have been shifting, we remain committed to our Future vision targeting 2050 to "Become a leader in the global cement industry" and we look forward to developing carbon-neutral technologies that meet global standards. It is important to continue communicating carefully about such long-term perspectives and the importance

our Group, such as quarry development, are characterized by their extremely long-term nature. As an independent director, my wish is to build partnerships with shareholders and investors who understand these characteristics and

share our goal of enhancing corporate value from a longterm perspective.

Asakura:

Engaging in sincere, ongoing dialogue with shareholders and investors who support the Group over the medium to long term is key to achieving sustainable growth and enhancing corporate value. We will continue to communicate our initiatives to improve profitability in domestic operations and our growth strategies for overseas businesses in an easy-to-understand manner, while also enhancing the information disclosure on our U.S. operations, which attract particularly strong interest.

Furikado:

As a Board of Directors, we will continue to firmly oversee the initiatives of the management team while supporting management that remains open and responsive to a diverse range of stakeholders. In addition to sincere engagement activities, we intend for independent directors to also

Striving for Fair and Transparent Information Disclosure to Shareholders and Investors

Asakura:

Approximately 40% of our shareholders are overseas investors, which makes global engagement essential. Since last fiscal year, we have been particularly focused on direct dialogue with our major foreign shareholders. During the COVID-19 pandemic we utilized online meetings, but I was reminded of how vital

it is to communicate face to face. Through in-depth discussions conducted on-site, we help participants gain a deeper understanding of our management policies and long-term strategies.

Furikado:

I feel that overseas investors have a strong interest in shareholder returns and medium- to long-term value creation.

Due to changes in the global situation, investors' interests have recently tended to shift from ESG to financial returns and

portfolio strategies; however, such focus naturally changes with the times and circumstances. For Taiheiyo Cement, it is crucial to communicate effectively under any circumstances, adapting our messaging to reflect these evolving trends.

Approaching Individual Investors

Asakura:

Our business has long centered on B2B operations, so public recognition among general consumers has been limited. Going forward, however, building relationships with a broader range of stakeholders, including individual investors, will be an important focus. We are currently implementing a public relations strategy aimed at enhancing awareness and strengthening our brand identity.

Furikado:

There is room to explore initiatives that make us more approachable to individual investors, such as plant tours or new shareholder benefit programs. It is also important to make

of creating social value.

Building Trust and Enhancing Corporate Value through Dialogue with Shareholders and Investors

Asakura:

Our long-term shareholders recognize the growth potential of our Group and tend to show strong interest not only in our business performance but also in the management's philosophy and vision. We strive to ensure sincere communication by having the IR Department report the opinions of shareholders and investors directly to the Board of Directors, without filtering, for open discussion. We believe that accepting candid feedback and reflecting it in management decisions is the foundation of mutual trust.

Furikado:

I feel that discussions on IR at the Board of Directors meetings are becoming more substantial with each passing year. Last year, I visited our Group company in the United States, which helped deepen my understanding of our overseas business and its management challenges. The businesses of

participate in dialogue with shareholders and investors going forward, contributing to the Company's sustainable growth and enhancement of corporate value from diverse perspectives.

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