Investor Presentaiton

(Reference) Examples of opinions and questions received so far (Excerpt of the meeting material of the 10th council on April 25, 2023) Necessity of follow-up on listed companies' response ➤ While we see this request as a favorable initiative, it is important to encourage companies to take action in the future so that this does not end with just a formal disclosure. (Foreign investor and others) ➤ Do you expect that the details of this request will be stipulated in the listing rules, etc. in the future? (Foreign investor and others) ➤ Investor engagement is key in preventing this request from becoming a formality. It is also important that the number of companies willing to engage in dialogue with investors increases. (Securities Company) Stance on share buybacks and dividend increases in response to this request JPX ➤ Many listed companies have asked for advice on how to respond to this request. However, since there is a tendency to take "one-time measures" such as share buybacks, it is necessary to fully inform the public of the purpose of the request. (Securities Company) ➤ For companies with investment opportunities that exceed their cost of capital, investments should be prioritized, but for companies without such opportunities, the best course of action may be to prioritize shareholder returns over investment in growth. It is important that this perspective be clarified. (Domestic Investor) Stance on PBR (1x) Why did you focus on companies having a PBR of 1x, understanding that it is not just a matter of exceeding 1x? (Foreign investor) There are concerns that companies will be short-sighted and think that it is enough to meet a PBR of 1x as a mere formality. A PBR of 1x is only an indicator, and investors are expecting companies to reconsider their sustainable business plans. (Foreign investor) Stance on trends by industry (regarding PBR, ROE, etc.) ➤ How should we consider and respond to industry trends with respect to PBR and ROE? (Listed company) Issues and future initiatives regarding the Growth Market ➤ This request is for companies listed in the Prime and Standard Markets, but what initiatives will be taken for those in the Growth Market in the future? (Domestic Investor) © 2023 Japan Exchange Group, Inc. 7

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