Responses toward realizing management mindful of capital cost and stock price (Update)

Key points of financial and capital strategy

This document explains the current analysis and updates toward realizing management mindful of capital cost and stock price. It outlines growth strategy through strengthening overseas sales power centered on the semiconductor division and improving gross margin, while promoting balance sheet management to converge the equity ratio to the 50%–60% range. It states the policy to keep the total return orientation above 100% and to balance active shareholder return with capital strategy. Specifically, as a financial and capital strategy, it promotes the use of interest-bearing debt and implements cash allocation aimed at shrinking cash and deposits.

Outlook and impact

Against the backdrop of semiconductor market expansion and overseas sales channels growth, the aim is to improve sales and profitability margins. Aims to enhance ROE and sustain shareholder returns to elevate stock price valuation, balancing growth strategies in the fourth mid-term management plan with reduced capital cost. It promotes strategic investments including capital partnerships and, through cash allocation from fiscal year ending March 2026 onward, seeks to improve capital efficiency.