Policy for Constructive Dialogue with Shareholders and Investors

    Table of contents

    1. IR・SR Basic Principles

    Our basic policies for investor relations activities are threefold: "Timely, appropriate and fair disclosure of information," "Building long-term relationships of trust through constructive dialogue with shareholders and investors," and "Working together with shareholders and investors to increase corporate value."
    We view IR・SR activities as an essential approach to increasing corporate value. By disclosing information, we promote dialogue with shareholders and investors. Through such dialogue we bring to light the issues facing our company, which we then reflect in management and strive to maximize our corporate value by engaging in a cycle of disclosure.

    Diagram of IR Basic Principles

    2. Structure for dialogue

    We have established a section responsible for IR・SR in the strategic finance department. IR・SR activities are overseen by the member of the Board of Directors and the Senior Executive Vice. Dialogue with shareholders and investors is facilitated by the President, Members of the Board of Directors, Executive Officer, or the IR ・SR section, according to the purpose of the dialogue.
    In order to promote constructive dialogue, the IR・SR section coordinates with the management strategy division and each business division, as well as the division responsible for public relations, the sustainability promotion division, the general administration division, etc. to collect and disseminate necessary information.

    3. IR Activities

    Activity FY2024 results Details
    Financial Results 4 times Held quarterly for analysts and institutional investors, with the participation of the President and the Officer in charge of IR to explain the financial results.
    Earnings Release Conferences(IR Day) 1 time An event for analysts and institutional investors at which the President directly explains medium- to long-term business opportunities, our management strategy, and other information. The President, and the Chief Financial Officer (concurrently the Officer in charge of IR) and business managers, also participate as speakers.In 2025, we integrated our ESG Briefing, which had previously been held separately to explain our sustainability initiatives, with our IR event and held the combined event as "IR DAY."
    Individual meetings with analysts and institutional investors 579 times Online and other forms of meetings available as needed.
    Individual dialogue with persons exercising voting rights of institutional investors, and others 7 times Regularly held as part of our shareholder relations program.
    Seminar for Individual Investors 1 times Seminars for individual investors, including in online format.
    Shareholders’ Meetings 1 time Held to report important matters on the company to the shareholders for their resolution. We hold an Ordinary General Meeting of Shareholders in late June of each year.
    Report for Shareholders 2 times Issued twice a year to provide shareholders with information on our business performance and management policies.
    Information dissemination on our website - Our website provides useful information for shareholders and investors, including IR materials, integrated reports, and videos of financial results briefings. Financial statements and related materials are disclosed in both Japanese and English simultaneously based on the fair disclosure rules.

    4. Dialogue results

    Graph of Dialogue results (no. of events)
    • Figures are for the period from April 1 to March 31 of each year.
    • "Sessions by management" refer to sessions attended by Vice President or above, including the President.

    (Number of events)

      FY2023 FY2024 FY2025
    President 18 29 41
    Officer in charge of IR 26 26 42
    Other officers 14 3 2
    • If more than one officer attended a meeting, the number of times is counted for each officer.
    Graph of Dialogue results (total of companies)
    • Figures are for the period from April 1 to March 31 of each year.
    • "Sessions by management" refer to sessions attended by Vice President or above, including the President.

    (Number of companies)

      FY2023 FY2024 FY2025
    President 45 156 142
    Officer in charge of IR 113 64 164
    Other officers 29 17 35
    • If more than one officer attended a meeting, the number of companies is counted for each officer.

    5. Dialogue themes and feedback within the company

    Main dialogue themes

    Business performance
    • Demand forecast by end-market
    • Product price trends
    • Impact of Tariffs
    • Assumptions and perspectives for earnings forecasts
    Management strategy
    • Worldview and technology trends in 2030
    • Growth strategy toward 2030
    • Assumptions and strategies in the Medium-Term Direction 2027
    • Progress of mid-term direction
    • Portfolio management
    • M&A approach
    • Pricing Strategy
    • CEO Succession Plan
    Business strategy
    • Competitive environment and growth strategy for components (layer-1)
    • Growth strategy for devices and modules (layer-2)
    • Business Strategy for AI Server-Related Markets
    • Background to the Impairment Loss and Business Outlook
    • Progress toward profitability in the battery business/Progress of the Power Module Business
    • Future prospects for technologies acquired through M&A
    • New business (layer-3)
    ESG/Sustainability
    • Advancing the timeline for achieving RE100
    • Initiatives for Climate Change Measures (Advancing Scope Targets)
    • Environmental contribution through products
    • Women's empowerment initiatives
    • Approach to human rights (Labor rights, human rights in the supply chain)
    • The Appointment of Our First Outside Director as Chairman of the Board of Directors
    • Corporate governance
    Financial strategy
    • Capital allocation policy (Progress on Strategic Investment)
    • Optimal Shareholder Composition (Including Strategic Shareholdings)
    • Validation of the Growth Story and Capital Efficiency (ROE/ROIC)
    • Shareholder return policy (including the concept of share buyback)

    Feedback within the company

    Opinions and questions that we receive from shareholders and investors are reported at Board of Directors meetings and management meetings, and are also widely shared with relevant departments within the company to help improve our management and IR・SR activities.

    Activity Frequency Target
    Reporting at Board of Directors meetings Once a year Board members
    Reporting at management meetings
    • Four times a year
    • After financial closing
    • Vice Presidents including the President
    • Attendees at management meetings
    Release of IR reports - reports on stock price trends, investor interests and concerns, frequently asked questions, and other information. Activity reports are also released once a year. Five times a year
    • Board Members (including outside directors) and Vice Presidents
    • General managers of business divisions
    • Presidents of affiliated companies･Finance department of affiliated companies
    • Relevant departments
    Release of minutes of financial results briefings Four times a year
    • Board members and officers
    • All employees
    • Information sharing meetings with relevant departments
    • Enhancement of cooperation with the management strategy division
    		 Quarterly Business divisions and sales departments
    Internal IR briefings Iregular basis
    • (Result for FY2024)
    • Finance department of Domestic and Overseas Affiliates
    • Responsible Functional Department
    • Domestic Factories
    Sharing Analyst Reports Iregular basis
    • Board members and officers
    • All Domestic Managers
    Others (IR-related) Whenever necessary Timely reports on shareholder composition, trends in shareholdings by institutional investors or others, rating changes, and other information as needed

    Matters incorporated into corporate activities based on dialogue

    Enhancement of IR briefings In response to requests from investors, the following events were held.。
    • We integrated ESG-related content into our conventional information meeting and held an IR Day aimed at demonstrating the virtuous cycle between social and economic value created through our business.
    Disclosure of Capital allocation policy Briefing on the shareholder return and investment policies during the Mid-term Direction 2027, and engagement in dialogue in accordance with changes to the shareholder return policy.
    Dialogue with capital markets
    • Expansion of management engagements (increased number of meetings year over year)
    • Integrated the SR function into IR to centralize shareholder and investor engagement, ensuring consistency in communications and expanding the scope of engagement.
    • Communication of the mid-term direction aimed at internal and external alignment, and presentation of the after-tax ROIC target.
    • Disclosed the breakdown of one-time expenses in the earning release conference presentation
    Increase in the Number of Small Meetings between the President and Foreign institutional investors After financial announcements and Information meetings,held Conducted multiple small meetings where the President directly explains financial results to sell-side analysts.(increased number of meetings year over year)
    Enhancement of IR for individual investors Participation in Briefings for Individual Investors
    Disclosure on corporate governance
    • Disclosure of major discussions at Board of Directors meetings and Nomination and Remuneration Advisory Committee meetings
    • Disclosure of reasons for selection of skills in the Board members' skill matrix
    • Disclosure of shareholding guidelines
    • Disclosure of an Overview of the CEO Succession Plan
    • Disclosure of the Policy on Strategic Shareholdings
    Others (IR-related)
    • Published the HTML version of the integrated report to improve readability
    • Enhanced the ValueReport by expanding its content and clearly illustrating the virtuous value creation cycle driven by the strengthening of management capital.
    • Enhanced Communication with Overseas Investors
    • Revised the Structure of Presentation Materials and Presentation Content
    • Earlier Disclosure of Earnings Materials in Response to the TSE's Request

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