[Iwaki] Strengthening Business Foundation through Capital Increase in China Subsidiary | June 2026

Overview of Capital Policy

Iwaki has decided to increase capital in its Chinese consolidated subsidiary, Iwaki Shanghai, raising the capital stock to 1 million US dollars. The capital increase aims to strengthen the business infrastructure and expand business areas in Shanghai, with a planned contribution of 400,000 US dollars in July 2026. Through this increase, Iwaki Shanghai will become a specified subsidiary of the company, contributing to strengthening sales and procurement systems in the Chinese market going forward. The expected impact on consolidated earnings for the March 2027 period is minimal.

Future Outlook and Investor Impact

This capital increase aims at expanding business and enhancing competitiveness in the Chinese market, and it is part of Iwaki's overseas growth strategy. The increase in funds and logistics capabilities is expected to lead to future sales expansion and efficiency improvements. For investors, the short-term impact on performance is limited, but in the long term, it is regarded as an important measure to enhance competitive advantage in the Chinese market.