Consolidated Group Management and Business Selection and Focus

「If structural reforms or changes to the business model, including those involving NB Seiren Co., Ltd., do not progress as planned, or if the anticipated synergies do not fully materialize, the group’s operating performance and financial condition may be affected.」

「Following UNITIKA LTD.’s announcement dated 28 November 2024 regarding its withdrawal from the textile business, we considered whether we could contribute to our social responsibilities, including preserving Japan’s textile industry, revitalizing regional industries and maintaining employment. We determined that the substantial business resources of UNITIKA LTD.’s Okazaki Plant, including polyester polymerization facilities of the largest scale in Japan, have the potential to become an important base supporting the growth of our Group by undertaking bold structural reforms and capital investment to create new value through synergies with our businesses and expand our business fields.」

「On 21 September 2023, we entered into an agreement to conduct an absorption-type company split under which the rights and obligations related to our system development and system sales businesses would be transferred to Seiren Shoji Co., Ltd., our wholly owned consolidated subsidiary, and carried out the company split on 1 November 2023.」

「By transferring and integrating the system development and system sales functions currently performed by our company into Seiren Shoji Co., Ltd., we aim to improve the efficiency of system-related operations, enable flexible personnel allocation and strengthen system functions within the group.」

「To maximize the value of the group’s businesses, we will strengthen governance of group companies through a global headquarters structure. We will clarify the roles and responsibilities of each group company, establish an efficient and optimal corporate governance system, and review, select and concentrate each company’s businesses.」

「From the first quarter of the current consolidated fiscal year, the newly established SEIREN Hungary Kft. has been included in the scope of consolidation.」

「Guangzhou Tektro Automotive Interior Co., Ltd. became a company indirectly 100% owned by us when Shilian Automotive Interior (Suzhou) Co., Ltd. acquired a 10% equity interest in the company from its joint venture partner in August 2020, and changed its corporate name to Guangdong Shilian Meishi Automotive Interior Co., Ltd. In addition, on 31 March 2021, we acquired the 90% equity interest in the company held by Gonsen Co., Ltd., our wholly owned subsidiary.」

「From the current consolidated fiscal year, KB Seiren DTY Co., Ltd., Guangzhou Tektro Automotive Interior Co., Ltd. and Cosmo Jinzai Mexicana Bajio S.A. de C.V., whose significance had increased, have been included in the scope of consolidation.」

「KB Seiren DTY Co., Ltd. and Guangzhou Tektro Automotive Interior Co., Ltd., whose significance had increased, have been included in the scope of consolidation from the first quarter of the current consolidated fiscal year.」

「K.S.T. World Co., Ltd., in which we newly acquired shares during the fiscal year, has been included in the scope of consolidation.」

「To maximize Group corporate value, the Group will clarify the roles and responsibilities of each Group company, establish an efficient and optimal corporate governance system, and review each company’s businesses, selecting and focusing on those with the greatest potential.」