New HR and Compensation Systems and Reorganization of the Group’s Organizational Structure

「As stated in the Notice Regarding the Suspension of Operations of the Korean Subsidiary disclosed on 23 December 2025, we have suspended the operations of 原振精工. However, after comprehensively considering the future outlook, we have decided to dissolve the subsidiary.」

「In the Electronic Equipment business, factories in the US and Taiwan were consolidated and partially sold to respond to changes in the business environment and improve profitability. The company also decided to dissolve its sales base in South Korea, with the aim of reducing fixed costs and reviewing its operating structure. In the Production Equipment business, the company dissolved its Chinese subsidiary and suspended operations at its South Korean subsidiary after comprehensively considering business profitability and future growth potential.」

「In addition, a Business Commercialization Promotion Division was established within the Core Technology Development Center, creating a structure to promote the development of high-value-added products in cooperation with the business divisions.」

「To support the next growth strategy and create expected synergies, the Company redefined the product groups handled by each business center and reorganized its operations from the interim consolidated accounting period to enhance the effectiveness of these measures. In connection with this organizational restructuring, the name of the reportable segment formerly called "Electronic Devices-Related" was changed to "Electronic Equipment," and some business activities previously included in "Electronic Equipment" were transferred to "Production Equipment."」

「The company decided to dissolve its Singapore subsidiary as part of the reorganization of overseas sales bases for the electronic devices-related business.」

「Implementation of a special career-transition support program at the Company」

「The Company decided to implement a special career-transition support program.」

「具体的な取り組みとして、小型カラー有機ELディスプレイの開発による高付加価値製品の市場展開、当社の産業用ドローンを用いた実証実験、Webを活用した新製品の積極的な販売促進、国内営業拠点の再編を行いました。」

「As part of the "corporate transformation," we accelerated product development from hardware as the core toward software and services, and, to develop markets and expand our business scope, concentrated and selectively allocated management resources, created an organization where the manufacturing and sales functions could work together to generate ideas, separated the business-to-consumer business, and changed the personnel system to make it easier to appoint motivated employees.」

「The policy for determining the amount of compensation and other remuneration for the Company's directors and the method of calculating it is determined by the Board of Directors after deliberation by the Nomination and Compensation Committee, which has a majority of outside directors and is chaired by an outside director, thereby ensuring objectivity and transparency. In addition, from 27 June 2019, the compensation system for directors other than directors who are Audit and Supervisory Committee members was changed to increase the proportion of performance-linked compensation, providing incentives to improve consolidated performance and enhance corporate value over the medium to long term.」

「• A new Systems Solutions Business Center was established to create synergies by combining multi-function modules and radio-control equipment. • The sales organization for the electronics division was integrated into the Device Sales Center, the sales organization for the electronic components division, to facilitate information sharing. A new Tokyo Sales Office was also established to strengthen sales capabilities.」

「From the first quarter of the fiscal year, in line with changes to the corporate organization aimed at creating synergies through the integration of the technology and sales divisions and developing new integrated products, the Company changed its reportable segments from the previous 3 categories of “Electronic Components,” “Electronic Equipment” and “Production Equipment” to 2 categories, “Electronic Devices-Related” and “Production Equipment.”」

「From the first quarter of the fiscal year, in line with changes to the corporate organization aimed at creating synergies through the integration of the technology and sales divisions and developing new integrated products, the Company changed its reportable segments from the previous 3 categories of “Electronic Components,” “Electronic Equipment” and “Production Equipment” to 2 categories, “Electronic Devices-Related” and “Production Equipment.”」

「From the first quarter of the current fiscal year, in line with changes to the corporate organization aimed at creating synergies through the integration of the technology and sales divisions and developing new integrated products, the Company changed its reportable segments from the previous 3 categories of “Electronic Components,” “Electronic Equipment” and “Production Equipment” to 2 categories, “Electronic Devices-Related” and “Production Equipment.”」

「In addition, as an initiative for the next stage of growth, we will also pursue business structure reform, including organizational restructuring, concentration on markets and products, reform of the production structure, and domestic and overseas restructuring.」

「Director, Senior Executive Officer, General Affairs, Human Resources and Accounting; Director, Senior Executive Officer, Head of Business Administration Division; Kimizuka Toshihide (君塚 俊秀); 1 July 2016; Director, Senior Executive Officer, CSR and Information Systems; Director, Senior Executive Officer, Corporate Planning; Ikeda Tatsuya (池田 達也); 1 July 2016」

「Following the adoption of new personnel and compensation systems last year, the Group carried out a reorganization of its organizational structure effective 1 January this year.」