上新電機（8173） – Notice of reconsider targets in Medium-term Management Plan

For immediate release May 6, 2022 Company name: Representative: Contact: Joshin Denki Co., Ltd. Ryuhei Kanatani, Representative Director and President and Executive Officer (Securities code: 8173, Tokyo Stock Exchange, Prime Market) Suguru Oshiro, Director and Executive Officer in Charge of Financial Strategy (Phone: +81-6-6631-1161) Notice of reconsider targets in Medium-term Management Plan Joshin Denki Co., Ltd. (hereinafter, the “Company”) hereby announces reconsider to targets for the fiscal year ending March 31, 2023, the final year of the JT-2023 Management Plan, the Company’s Medium-term Management Plan previously unveiled on August 7, 2020. The reconsidered targets take into account recent earnings, current consumption trends, and other factors. 1. Reconsidered targets (Reconsidered targets for the fiscal year ending March 31, 2023)(¥ million) FY 3/22 actual FY 3/23 planned (1) Initial target (2) Revised target (3) Reconsidered target Difference [(3) – (2)] Equity ratio (%) (1) Initial target (2) Revised target (3) Reconsidered target Difference [(3) – (2)] Unchanged Net sales 409,508 435,000 450,000 420,000 -30,000 ROE 7.0 or higher -2.0 75,890 70,000 80,000 80,000 0 ROA 5.0 or higher -2.0 8,884 11,500 16,500 10,000 -6,500 ROIC 5.0 or higher -2.0 9,701 11,500 16,500 10,000 -6,500 Unchanged Payout ratio 45.0 or higher 7.0 or higher 5.5 or higher 5.5 or higher Around 30.0 9.0 or higher 7.0 or higher 7.0 or higher (of which, EC business) Operating income Ordinary income 2. Reasons for reconsiderDue to (1) the aftereffects of the boosted sales during the COVID-19 pandemic, (2) outlet closures and shortened operating hours in response to the declaration of states of emergency, and (3) abnormal summertime weather conditions, both net sales and profit in the fiscal year ended March 31, 2022 declined from the levels of the previous fiscal period, which saw record-high sales and profits. (Refer to our financial results report for the fiscal year ended March 31, 2022.) With regard to the outlook of our business environment, supply chain disruptions stemming from heightened regional conflicts, weaker economic indicators due to increased raw material prices and other factors, and subdued consumer demand due to a decline in consumer confidence and disposable income—in addition to the fact that an end to the pandemic is not currently in sight—the outlook of our future performance remains unclear. This announcement introduces the reconsidered targets for the final fiscal year of the Medium-term Management Plan (fiscal year ending March 31, 2023) resulting from these conditions. Note about earnings forecasts The above-mentioned forecasts have been calculated based on currently available information and certain assumptions the Company considers reasonable. The Company offers no guarantee that such forecasts will be achieved. Actual results may differ significantly due to various factors. The Company will endeavor to publicly disclose as quickly as possible any important matters that may arise.