Engagement with the Capital Markets

Under our corporate philosophy of "Delivering excitement and peace of mind to people around the world," the Company places great importance on constructive dialogue (engagement) with our shareholders and investors, from the perspective of achieving sustainable growth and enhancing medium- to long-term corporate value.

With the aim of improving management transparency and increasing medium- to long-term corporate value, we provide a wide range of communication opportunities, including quarterly financial results briefings, business briefings, one-on-one meetings with analysts and institutional investors, and overseas IR activities.

We also recognize that constructive dialogue with shareholders is an important means of enhancing corporate value, and therefore provide opportunities for dialogue in which both internal and external directors actively participate.

Through ongoing dialogue with our shareholders and investors, we strive to deepen their understanding of the Company and to reflect the views and feedback we receive in our management.

IR Activities in FY2024

Activity	Target Audience	Format	Key topics	Number of times
Results and forecast briefings (Quarterly)	Analysts and Institutional investors	Online (Live Webcast + On-Demand Archive)	Overview of quarterly financial results Business segment highlights Full-year outlook and earnings forecast Key questions and answers (to the extent publicly disclosable)	4
Business briefings (by theme)	Analysts and Institutional investors	Online (Live Webcast + On-Demand Archive)	Strategy and market environment of specific businesses Technology roadmaps and key initiatives Linkage with the mid-term management plan	0
1on1 IR meeting	Analysts and Institutional investors	In-Person / Online	Business briefings based on publicly available information Mid-term strategy and financial / non-financial initiatives Collection of investor feedback and questions	152
Overseas IR activities overseas	Global Investors	Non-Deal Roadshow / International Conferences / Online One-on-One Meetings	Explanation of business and financial performance Sharing of competitiveness and priority areas in global markets	0

Dialogue between Shareholders and Management, etc., in FY2024

Conducted ten dialogues with eight institutions (ten hours total) during FY2024.

Key responders in dialogue with shareholders	CEO, CFO, CTO, heads of business sectors and Outside Directors
Outline of shareholders with whom we had dialogue	Domestic and overseas institutional investors Questioners: Staff in charge of stewardship, ESG analysts, staff in charge of research on socially responsible investment, equity analysts, etc.
Key themes of dialogue and shareholders' matters of interest	Key matters of interest	Impact of the Trump administration's policies in the US Measures to improve the profit margin in the M&T sector Balance between share repurchases and dividends in shareholder returns Discussion by the Board of Directors on the business portfolio Linking ESG factors to executive compensation Further strengthening of the Board of Directors in the future
	Concrete details of dialogues	Outline of dialogues
	Is there likely to be a risk of significant impact from the Trump administration's policies in the US? How can those risks be reduced?	Our greatest concerns are the economic impact on the U.S. itself and the impact on our supply chain. We will try to minimize that impact through means such as price adjustments.
	What do you think needs to be done to improve the profit margin in the M&T sector?	We position this business as one of the growth drivers in our business portfolio, and we aim to improve profit margins by increasing the sales share of high-margin Overseas OEM Business. The core of the Overseas OEM Business is our Group company ASK Industries, S.p.A., which handles in-vehicle speakers, amplifiers, antennas, wire harnesses, and other products in response to changes in the market, led by EV adoption. In the Aftermarket Business, where the market is contracting, we will thoroughly pursue efficiency improvements in development, production, and sales systems.
	As cost-effectiveness of share repurchases declines due to rising stock prices, how will you achieve a balance with shareholder dividends?	Under the current Medium-term Management Plan "VISION 2025," our target shareholder return ratio is approximately 60% share repurchases and 40% stock dividends. However, we will consider revising this based on stock price levels in the future.
	What kind discussions is the Board of Directors having regarding the business portfolio?	We are pursuing a redefinition of the business portfolio based on the concept of ROIC management. We are discussing how to evaluate the viability of each business based on growth potential and capital efficiency, and ways to shift management resources to businesses that will drive growth.
	In terms of compensation design, it appears ESG factors are not yet incorporated into performance-based compensation. Are there any discussions on whether they will be incorporated in the future?	We have already discussed this and plan to incorporate ESG factors starting in FY2025.
	What kind of skills are being discussed as necessary for Outside Directors to further strengthen the Board of Directors going forward?	In response to the requirements of the Corporate Governance Code regarding the composition of the Board of Directors, we are discussing the necessary human resources while considering the skills matrix and diversity in line with our business.
Status of giving management and the Board of Directors feedback on shareholders' opinions and concerns that were ascertained through dialogue	Our division in charge of IR summarizes the dialogue and provides reports on it at Board of Directors or shares information with Directors and Audit & Supervisory Board Members via email.
Matters incorporated, based on dialogue and feedback	Reflected the content upon elements such as the maximum number of Directors, the ratio of Outside Directors, and the diversity of the Board of Directors. Improvements were made to the content of the Integrated Report by reflecting the point of the matters were indicated. Various initiatives for sustainability are being undertaken. With regard to these various initiatives, we have made improvements which allow us to always have the ability to disseminate information from the perspective of investors via IR and SR activities.

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Management Conscious of Cost of Capital and Stock Price

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IR Information (Policies & Resources)