ＳＭＣ（6273） – Notice of Convocation Annual General Meeting 2022

To our shareholdersAs a comprehensive manufacturer of automatic control equipment to support automated, labor-saving operations in industry, we are working on BCP to fulfill our responsibility to supply products.We would like to express our sincere gratitude to all our shareholders for your exceptional support.In the fiscal year ended March 31, 2022, the spread of COVID-19 showed signs of slowing, and demand for capital investments across all industrial sectors increased sharply.Due in part to the tailwind provided by the intensified conflict between the U.S. and China, which caused countries to begin onshoring their semiconductor production, semiconductor-related demand grew significantly. On the other hand, shortages of materials, particularly semiconductors and electronic components, soaring prices for raw materials, and logistics disruption became increasingly serious.Furthermore, the Russian invasion of Ukraine in February 2022 has left the world facing a major crisis of conflict and division.As a comprehensive manufacturer of automatic control equipment that supports automated, labor-saving operations in industry, as well as contributing to reductions in CO2 emissions, SMC intends to fulfill its responsibility to supply products under any circumstances, anywhere in the world.To that end, SMC will further refine its strengths, which include a global network across more than 80 countries, 21,000 employees, an extensive product lineup of more than 700,000 items and abundant inventory, product development capabilities to respond to customer requests, and a solid financial base. We are also making capital investments to expand production capacity and create multi-location production centers and boosting security measures to protect customer information from the threat of cyberattacks.We would like to ask our shareholders for your continued support and guidance. June 2022Yoshiki Takada, President11(Security Code: 6273)June 6, 2022Yoshiki TakadaPresidentSMC Corporation4-14-1, Soto-Kanda, Chiyoda-ku, TokyoNotice of the 63rd Annual General Meeting of ShareholdersWe would like to inform you that we will hold the 63rd Annual General Meeting of Shareholders as follows.To avoid the risk of infection with the COVID-19, all the shareholders are kindly requested to refrain from attending the meeting in person. Instead, we would encourage you to exercise your voting right in writing or via the Internet by 5:00 p.m., on June 28, 2022 (Tuesday) after studying the attached “Reference Documents for the General Meeting of Shareholders”.Sincerely,Notes1 Date and TimeJune 29, 2022 (Wednesday) 10:00 a.m. (Reception starts at 9:00 a.m.)2 VenueAkihabara UDX Building (15F), 4-14-1, Soto-Kanda, Chiyoda-ku, TokyoConference Room, SMC CorporationThere are no souvenirs available for shareholders attending the shareholders’ meeting.3 AgendaMatters to be reported Business Report, Consolidated and Non-consolidated Financial Statements, and Audit Report for Consolidated Financial Statements by the Accounting Auditor and the Board of Corporate Auditors, for the 63rd fiscal year (April 1, 2021 to March 31, 2022)Matters to be resolved Proposal 1 Dividend of SurplusProposal 2 Partial Amendments to the Articles of IncorporationProposal 3 Election of 12 DirectorsRegarding Reference Documents for the General Meeting of Shareholders and Appendix Attached to this Notice▪ In accordance with laws and regulations, and the Articles of Incorporation of the Company, the Consolidated Statement of Changes in Equity, Non-Consolidated Statement of Changes in Equity, Notes to Consolidated Financial Statements and Notes to Non-Consolidated Financial Statements are made available on the Company’s website, and are not attached in written form to this Notice.▪ The above-mentioned documents that have been disclosed on the internet have been audited by the Accounting Auditors and the Corporate Auditors.▪ Should it become necessary to revise the Appendix or Reference Documents for the General Meeting of Shareholders attached to this Notice, those revisions will be shown on the Company’s website.The Company’s website address ▶ https://www.smcworld.com/ir/en/2Reference Documents for the General Meeting of ShareholdersProposals and References第1号議案Proposal 1Dividend of Surplus[Basic capital policy]The Company considers that its highest priority issue is to maximize shareholder value through corporate value improvement accompanied by mid- to long-term profit growth.The Company will also strive to further increase shareholders’ equity, aiming to maintain a solid financial base that will not be affected by financial and economic turmoil and rapid fluctuations in foreign exchange rates.In addition, the Company will continue to maintain its competitive advantage, positively make necessary investments in production facilities, research and development systems, IT infrastructure, sales force resources, etc., for sustained operations, and keep adequate cash on hand to meet relevant capital requirements.Concerning the return of profit to our shareholders, we are adopting a basic policy of maintaining stable dividend payment. At the same time, we will strive to enhance the profit return even further by combining this with the flexible acquisition of treasury shares depending on the situation.[Matters related to year-end dividend]This is to propose that the dividend of surplus for the fiscal year to be made as described below, based on the above-mentioned basic capital policy and in consideration of the latest operating results and financial positions.Allocation of divisible assets payable to shareholders and total amount450 yen per share on the Company’s common sharesTotal amount: 29,404,325,700 yenEffective date of the dividends from surplusJune 30, 202212Should the aforementioned proposal for the year-end dividend be approved, the annual dividend per share including the interim dividend will be 750 yen, a 250 yen increase compared to the same period as the previous year.[Reference] Changes in dividend per share (yen)Consolidated payout ratio (%)75050040040040027.324.125.719.620.6Year endedMarch 31, 2018Year endedMarch 31, 2019Year endedMarch 31, 2020Year endedMarch 31, 2021Year endedMarch 31, 2022(Current fiscal year)3Proposal 2Partial Amendments to the Articles of Incorporation1. Reason for amendmentsBecause the revised provisions set forth in the proviso to Article 1 of the Supplementary Provisions of the Act Partially Amending the Companies Act (Act No. 70 of 2019) are to be enforced on September 1, 2022, the Company proposes to make the following changes to its Articles of Incorporation in preparation for the introduction of the system for providing informational materials for the General Meeting of Shareholders in electronic format.(1) Stipulating that information that constitutes the content of Reference Documents for the General Meeting of Shareholders, etc. shall be provided in electronic format. (Proposed amendment to Article 16, paragraph 1)(2) Limiting the scope of items to be stated in paper-based documents to be delivered to shareholders who requested the delivery of paper-based documents. (Proposed amendment to Article 16, paragraph 2)(3) Deleting provisions related to internet disclosure and deemed provision of Reference Documents for the General Meeting of Shareholders, etc. (Article 16 of the current Articles of Incorporation), which will no longer be necessary.(4) Establishing of supplementary provisions regarding the effective date, etc. of the above-mentioned Current Articles of IncorporationProposed Amendmentsamendments.2. Details of amendmentsThe details of the amendments are as follows.(Internet Disclosure and Deemed Distribution of Supplementary Information for the General Meeting of Shareholders Etc.)Article 16 F o r c o n v o c a t i o n o f t h e G e n e r a l M e e t i n g o f Shareholders, the Company may deem to have disclosed to shareholders, information concerning matters to be stated or expressed in supplementary information for the General Meeting of Shareholders, b u s i n e s s r e p o r t s , a c c o u n t i n g s t a t e m e n t a n d consolidated accounting statements, by disclosing those by way of using the Internet in such manner as set forth in the ministerial ordinance of Ministry of Justice.(Measures, etc. for Providing Information in Electronic Format)Article 16 F o r c o n v o c a t i o n o f t h e G e n e r a l M e e t i n g o f Shareholders, information that constitutes the content of supplementary information for the General Meeting of Shareholders, etc. shall be provided in electronic format.4Reference Documents for the General Meeting of ShareholdersCurrent Articles of IncorporationProposed Amendments(2) Among items for which the measures for providing information in electronic format will be taken, the Company may exclude all or some of those items designated by the Ministry of Justice Order from being stated in the paper-based documents to be delivered to shareholders who requested the delivery of paper-based documents by the record date of voting rights.(Supplementary Provisions)1. The amendments to Article 16 shall come into effect on September 1, 2022, which is the date of enforcement of the revised provisions provided for in the proviso to Article 1 of the Supplementary Provisions of the Act Partially Amending the Companies Act (Act No. 70 of 2019) (hereinafter referred to as the “Date of Enforcement”).2. Notwithstanding the provision of the preceding paragraph, Article 16 (Internet Disclosure and Deemed Distribution of Supplementary Information for the General Meeting of Shareholders Etc.) of the pre-amended Articles of Incorporation shall remain effective in regard to any General Meeting of Shareholders held on a date within six months from the Date of Enforcement.3. These Supplementary Provisions shall be deleted on the date when six months have elapsed from the Date of Enforcement or three months have elapsed f r o m t h e d a t e o f t h e G e n e r a l M e e t i n g o f Shareholders in the preceding paragraph, whichever is later.5Proposal 3Election of 12 DirectorsThe term of office of all current 10 Directors will expire at the conclusion of this Annual General Meeting of Shareholders. It is proposed that the number of Directors be increased by 2 in order to strengthen its business execution function and that 12 Directors (including 4 Outside Directors) be elected.The names and profiles of the candidates for Directors are as follows.2578Candidate No.Candidate Name1 Yoshiki TakadaReappointedToshio IsoeReappointed3 Masahiro OtaReappointed4 Susumu MaruyamaReappointedCurrent Position and Assignment of Work in the CompanyNumber of years served as DirectorAttendance at the Board of Directors meetingsPresident/Senior General Manager of Sales Headquarters28 years 10/10Director and Executive Officer/General Manager of Administration Division/In charge of HRDirector and Executive Officer/General Manager of Finance & Accounting Division3 years 10/103 years 10/10Director and Executive Officer/In charge of Business Management/General Manager of Presidential Office2 years 10/10Samuel NeffReappointedU.S. citizenDirector and Executive Officer/In charge of Supply Chain Management2 years 10/106 Yoshitada DoiReappointedKoji OguraNewly-appointedDirector and Executive Officer/Senior General Manager of Engineering Headquarters1 year7/7Executive Officer/Vice Senior General Manager of Sales Headquarters ―― Kelley StacyNewly-appointedU.S. citizen(President of SMC US) ―― FemaleOutsideOutsideReappointedIndependentOutside Director8 years 10/10ReappointedIndependentOutside Director7 years 10/109 Masanobu Kaizu10 Toshiharu Kagawa11 Yoshiko Iwata12 Kyoichi MiyazakiOutsideOutside Director1 year7/7 ReappointedIndependentOutsideFemaleReappointedIndependentOutside Director1 year7/76Reference Documents for the General Meeting of ShareholdersNumber of years served as DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held28 years10/100 shares (*)(*) Mr. Yoshiki Takada holds SMC’s shares through a share holding company.Candidate No.1 Yoshiki Takada(June 6, 1958)ReappointedBrief personal profile, position, assignment of work and important concurrent position at other organizationApril 1987June 1991June 1994June 2002July 2003April 2004June 2014June 2017July 2018July 2018September 2019December 2019April 2020April 2021January 2022Joined the CompanyOn loan to SMC USDirector of the CompanyManaging DirectorIn charge of Overseas OperationsPresident, SMC USIn charge of Management for North America, Central and South America Zone of the CompanyDirector and Managing Executive OfficerDirector and Senior Managing Executive OfficerSenior General Manager of Sales Headquarters (Incumbent)Executive Vice-presidentChairman, SMC US (Incumbent)Member of the Nomination and Compensation Committee of the Company (Incumbent)President (Incumbent)Member of the Sustainability Committee (Incumbent)[Reason for selection as a candidate for Director]Mr. Yoshiki Takada served as President of SMC US for many years, and as Senior General Manager of Sales Headquarters since 2018. He has presided over global business operations for the entire Group.He was appointed Executive Vice-president in 2019 and President in April 2021. He is leading the overall management of the entire Group and proceeding with drastic structural reforms.With the expectation that he can continuously contribute to the management of the Company, he has been selected as a candidate for Director.Candidate No. 2Toshio Isoe(May 26, 1961)ReappointedBrief personal profile, position, assignment of work and important concurrent position at other organizationJuly 2014August 2014May 2019June 2019Retired from Resona Bank, LimitedJoined the CompanyDeputy General Manager of Administration DivisionDirector and Executive Officer, General Manager of Administration Division (Incumbent)In charge of HR (Incumbent)November 2021Number of years served as DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held3 years10/10100 shares7[Reason for selection as a candidate for Director]Mr. Toshio Isoe has been engaged in the operations of the administration for the Company, the management of subsidiaries, the administration for sales, etc. since joining the Company in 2014, and has fulfilled his responsibilities as General Manager of HR and Administration Division since 2019.With the expectation that he can continuously contribute to the management of the Company, he has been selected as a candidate for Director.Candidate No. 3Masahiro Ota(December 24, 1963)ReappointedBrief personal profile, position, assignment of work and important concurrent position at other organizationApril 2015May 2015May 2019June 2019Retired from Resona Bank, LimitedJoined the CompanyDeputy General Manager of Finance & Accounting DivisionDirector and Executive Officer, General Manager of Finance & Accounting Division (Incumbent)Number of years served as DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held3 years10/10100 shares[Reason for selection as a candidate for Director]Mr. Masahiro Ota has been mainly engaged in the management of subsidiaries since joining the Company in 2015 and has fulfilled his responsibilities as General Manager of Finance & Accounting Division since 2019.With the expectation that he can continuously contribute to the management of the Company, he has been selected as a candidate for Director.Candidate No. 4Susumu Maruyama(February 14, 1963)ReappointedBrief personal profile, position, assignment of work and important concurrent position at other organizationApril 1986June 2014Joined Ministry of International Trade and IndustryDirector-General, Business Support Department, The Small and Medium Enterprise AgencyDeputy Director-General for Policy Evaluation of Minister’s Secretariat, Ministry of Economy, Trade and IndustryRetired from Ministry of Economy, Trade and IndustrySpecial Chief Researcher of Institute for International Socio-Economic StudiesJoined the Company, Corporate AdvisorExecutive Officer, In charge of Management Reform ProjectDirector and Executive Officer, In charge of Business Management, General Manager of Presidential Office (Incumbent)July 2015June 2016October 2016July 2018November 2019June 2020[Reason for selection as a candidate for Director]Mr. Susumu Maruyama has held important positions at central government agencies, and has a high level of knowledge related to economic conditions in Japan and overseas, and organizational management.He has fulfilled his responsibilities as the officer in charge of Management Reform Project from 2019 and the officer supervising information systems, quality management, and internal auditing divisions from 2020, and as the person responsible for compiling and coordinating BCP response.With the expectation that he can continuously contribute to the management of the Company, he has been selected as a candidate for Director.8Number of years served as DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held2 years10/100 sharesReference Documents for the General Meeting of ShareholdersCandidate No. 5Samuel Neff(March 30, 1982)ReappointedU.S. citizenBrief personal profile, position, assignment of work and important concurrent position at other organizationMay 2006August 2008July 2011January 2012January 2013May 2016June 2020May 2021Joined the CompanyAttended Georgetown University Law CenterJoined New York Bar AssociationJoined SMC USProject Manager of SMC SingaporeJoined the Company, General Manager of Management Planning OfficeDirector and Executive Officer, In charge of Supply Chain Management (Incumbent)General Manager in charge of SCMNumber of years served as DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held2 years10/100 shares[Reason for selection as a candidate for Director]After devoting himself to learning at various companies in the Group, Mr. Samuel Neff has fulfilled his responsibilities as General Manager of Management Planning Office from 2016 and the officer in charge of Supply Chain Management from 2020.With the expectation that he can continuously contribute to the management of the Company, he has been selected as a candidate for Director.Candidate No. 6Yoshitada Doi(February 21, 1962)ReappointedBrief personal profile, position, assignment of work and important concurrent position at other organizationApril 1984July 2018April 2020June 2021Joined the CompanyExecutive Officer, General Manager of Product Development Division 8Vice Senior General Manager of Engineering HeadquartersDirector and Executive Officer, Senior General Manager of Engineering Headquarters (Incumbent)Number of years served as DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held1 year7/70 shares[Reason for selection as a candidate for Director]After joining the company in 1984, Mr. Yoshitada Doi has worked in R&D for company products and has fulfilled his responsibilities for supervising the entire R&D Division as Vice Senior General Manager of Engineering Headquarters since 2020, and as Senior General Manager of Engineering Headquarters since 2021.With the expectation that he can continuously contribute to the management of the Company, he has been selected as a candidate for Director.9Number of years served as DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held――27 sharesCandidate No. 7Koji Ogura(January 8, 1954)Newly-appointedBrief personal profile, position, assignment of work and important concurrent position at other organizationFebruary 1980November 2007June 2010July 2010June 2017June 2017June 2019April 2020May 2020July 2020Joined the CompanyHead of Hamamatsu Sales OfficeDirectorDeputy General Manager of Sales HeadquartersResigned as DirectorExecutive OfficerResigned as Executive OfficerVice Senior General Manager of Sales Headquarters (Incumbent)Executive Officer (Incumbent)General Manager of Marketing Division[Reason for selection as a candidate for Director]After joining the Company in 1980, Mr. Koji Ogura has been engaged with the front line of sales activities, and from 2010 he has planned and developed sales strategies in the Sales Headquarters as a Director, while also being in charge of support for sales activities. With the full-scale implementation of the executive officer system in 2017 he temporarily resigned his position, subsequently becoming Vice Senior General Manager of Sales Headquarters in 2020, in charge of the Sales Division as a whole, while also fulfilling his duties as assistant to the President, who is also the Senior General Manager of Sales Headquarters.With the expectation that he can contribute to the management of the Company, he has been selected as a candidate for Director.Candidate No. 8Kelley Stacy(April 27, 1962)Newly-appointedFemaleU.S. citizenBrief personal profile, position, assignment of work and important concurrent position at other organizationAugust 1994September 2007July 2012December 2019Joined SMC USDirector of SMC USExecutive Vice-president of SMC USPresident of SMC US (Incumbent)Number of years served as DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held――0 shares[Reason for selection as a candidate for Director]After joining SMC US in 1994, Ms. Kelley Stacy engaged in a variety of duties including Director Assistant, purchasing, HR, and becoming a Director of SMC US in 2007 and Executive Vice-president of that company in 2012. In 2019 she became President of SMC US, and has not only managed the U.S. subsidiary but also been involved in driving sales strategy at the global level for the SMC Group.With the expectation that she can contribute to the management of the Company, she has been selected as a candidate for Director.10Reference Documents for the General Meeting of ShareholdersCandidate No. 9Masanobu Kaizu(December 27, 1951)ReappointedOutsideIndependentBrief personal profile, position, assignment of work and important concurrent position at other organizationApril 1975June 1994April 1997Joined Nomura Research Institute, Ltd.General Manager of Investment Research DivisionGeneral Manager of Investment Research Division, Nomura Securities, Co., Ltd. Financial Research CenterVice President and General Manager of Corporate Research Division, Nomura Securities, Co., Ltd. Financial Research CenterExecutive Officer, Nomura Securities, Co. Ltd. and President of Financial Research CenterExecutive Officer, Nomura Securities, Co. Ltd. and Chief Research Officer of Financial and Economic Research CenterSenior Research Fellow and Adviser, Nomura Securities Co., Ltd. Financial and Economic Research Center (Incumbent)Director, Financial Accounting Standards FoundationVice Chairman, The Securities Analysts Association of JapanOutside Director of the Company (Incumbent)Chairman of the Nomination and Compensation Committee (Incumbent)June 2000April 2002July 2007January 2012June 2013August 2013June 2014April 2020[Important concurrent duties]Senior Research Fellow and Adviser, Nomura Securities, Co., Ltd. Financial and Economic Research Center Number of years served as Outside DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held8 years10/100 shares[Reason for selection as a candidate for Outside Director and summary of expected roles]・ Mr. Masanobu Kaizu is a distinguished economist and securities analyst having a superb personality, insights, and abundant knowledge of economic situations, financial market conditions, corporate management and financial accounting, with broad experience in relevant business activities.　 He has made proposals on management policies based on his own professional knowledge from the standpoint of protecting the interests of general shareholders and investors in particular, monitoring the Company’s management activities from a neutral and objective point of view, further enhancing management transparency, and improving corporate value in the medium- and long-run by promoting continuous corporate growth.　 He also has strived to enhance the fairness, transparency and objectivity to the nomination and compensation process of Directors by serving as Chairman of Nomination and Compensation Committee since 2020.　With the expectation that he can continuously fulfill these roles, he has been appointed as a candidate for Outside Director.・ According to the Company’s judgment, Mr. Kaizu is capable of carrying out his duties as Outside Director for the abovementioned reasons and considering his experience as the Company’s Outside Director although he has not directly been involved in corporate management before, except the said experience.11Candidate No. 10 Toshiharu Kagawa(November 12, 1950)ReappointedOutsideIndependentBrief personal profile, position, assignment of work and important concurrent position at other organizationMay 1996May 2012January 2014Professor, Precision and Intelligence Laboratory, Tokyo Institute of TechnologyPresident, The Japan Fluid Power System SocietyProfessor, Interdisciplinary Graduate School of Science and Engineering, Tokyo Institute of TechnologyOutside Director of the Company (Incumbent)Institute Professor, Tokyo Institute of TechnologyProfessor Emeritus at Tokyo Institute of TechnologyMember of the Nomination and Compensation Committee of the Company (Incumbent)June 2015April 2016April 2018April 2020Number of years served as Outside DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held7 years10/100 shares[Reason for selection as a candidate for Outside Director and summary of expected roles]・ Mr. Toshiharu Kagawa is a Doctor of Engineering specializing in flow measurement and control and has a superb personality and insights. His specialization and the Company’s business areas are very closely related.　 He has made proposals on management policies mainly in relation to research and development activities and measures for the training of engineers based on his own specialized knowledge and wide experience as a researcher and educator. He also monitored the Company’s management activities from a neutral and objective point of view, further enhanced management transparency, and improved corporate value in 　 He also has strived to enhance the fairness, transparency and objectivity to the nomination and compensation process of Directors by serving as a the medium- and long-run by promoting continuous corporate growth.member of the Nomination and Compensation Committee since 2020.　With the expectation that he can continuously fulfill these roles, he has been appointed as a candidate for Outside Director.・ According to the Company’s judgment, Mr. Kagawa is capable of carrying out his duties as Outside Director for the abovementioned reasons and considering his experience as the Company’s Outside Director although he has not directly been involved in corporate management before, except the said experience.12Reference Documents for the General Meeting of ShareholdersCandidate No. 11Yoshiko Iwata(July 15, 1956)ReappointedOutsideIndependentFemaleBrief personal profile, position, assignment of work and important concurrent position at other organizationApril 1979June 1989January 1992November 1994Joined Bank of America, Tokyo BranchJoined Visa InternationalJoined Dewe Rogerson JapanJoined Technimetrics (currently Thomson Financial), Tokyo Branch, Senior Director in charge of Japan/KoreaJoined J-Eurus IR Co., Ltd.President of J-Eurus IR Co., Ltd. (Incumbent)Outside Director, Yamato International Inc. (Incumbent)Outside Director of the Company (Incumbent)Outside Director of the Fund Corporation for the Overseas Development of Japan’s ICT and Postal Services Inc. (Incumbent)Member of the Sustainability Committee of the Company (Incumbent)February 2001May 2001November 2014June 2021June 2021January 2022[Important concurrent duties]President, J-Eurus IR Co., Ltd.Outside Director, Yamato International Inc.Outside Director, Fund Corporation for the Overseas Development of Japan’s ICT and Postal Services Inc.Number of years served as Outside DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held1 year7/70 shares[Reason for selection as a candidate for Outside Director and summary of expected roles]・ Ms. Yoshiko Iwata possesses expertise and a wealth of experience related to corporate governance as well as dialogues between investors and companies. She is a pioneer of the IR Consulting Business field in Japan who has a wealth of international experience as well as a superb personality, insights, and managerial experience.　 She has made proposals on management policies, primarily on policies related to information disclosure and dialogues with investors, based on her own professional knowledge from the standpoint of protecting the interests of general shareholders and investors in particular, monitor the Company’s management activities from a neutral and objective point of view, further enhance management transparency, and improve corporate value in the medium- and long-run by promoting continuous corporate growth.　 Moreover, since becoming a member of the Sustainability Committee in 2022, she has done her utmost to supervise the Company’s sustainability initiatives for appropriateness and monitor their progress.　With the expectation that she can continuously fulfill these roles, she has been appointed as a candidate for Outside Director.13Candidate No. 12Kyoichi Miyazaki(October 11, 1962)ReappointedOutsideIndependentBrief personal profile, position, assignment of work and important concurrent position at other organizationApril 1986July 1987January 1993August 1995February 1997September 2004April 2006June 2021January 2022Joined Morgan Stanley, Tokyo BranchJoined Wood Gundy Inc., Tokyo BranchJoined Salomon Brothers Asia, Tokyo BranchJoined Morgan Stanley, Tokyo BranchJoined Deutsche Securities Inc., Tokyo BranchJoined Deutsche Bank AG, New York BranchEstablished Zen Asset Management Co., Ltd., Representative Director (Incumbent)Outside Director of the Company (Incumbent)Chairman of the Sustainability Committee of the Company (Incumbent)[Important concurrent duties]Representative Director, Zen Asset Management Co., Ltd.Number of years served as Outside DirectorAttendance at the Board of Directors meetingsNumber of the Company’s shares held1 year7/70 shares[Reason for selection as a candidate for Outside Director and summary of expected roles]・ Mr. Kyoichi Miyazaki has amassed a wealth of knowledge and experience related to market risk management and investment portfolio management utilizing cutting-edge financial engineering in international financial institutions. He possesses superb insights and personality as he established and manages his own asset management company.　 He has made proposals on management policies, primarily policies related to international business, risk management, and corporate governance, based on his own professional knowledge, monitor the Company’s management activities from a neutral and objective point of view, further enhance management transparency, and improve corporate value in the medium- and long-run by promoting continuous corporate growth.　 Moreover, since becoming Chairman of the Sustainability Committee in 2022, he has done his utmost to supervise the Company’s sustainability initiatives for appropriateness and monitor their progress.　With the expectation that he can continuously fulfill these roles, he has been appointed as a candidate for Outside Director.(Notes)1. No special interests exist between the candidates and the Company.2. The Company has made a contract with Outside Directors Mr. Masanobu Kaizu, Mr. Toshiharu Kagawa, Ms. Yoshiko Iwata, and Mr. Kyoichi Miyazaki for the limitation of liability in accordance with Article 427, Paragraph 1 of the Companies Act and Article 27 of the Company’s articles of incorporation (a contract limiting the amount of liability under Article 423, Paragraph 1 of the Companies Act to the maximum amount stipulated by law). If the reelection of the candidates is approved, the Company plans to renew this contract.3. The Company has entered into a liability insurance agreement for directors, etc. with an insurance company as stipulated in Article 430-3, Paragraph 1 of the Companies Act. All candidates for reappointment as Director and candidates for new appointment, Mr. Koji Ogura and Ms. Kelley Stacy, are included among the insured under this agreement. An outline of the details of this contract is included on page 32 of the Business Report. At the Board of Directors meeting after the conclusion of this Annual General Meeting of Shareholders, the Company plans to approve the renewal of the same contract under the same terms.4. The Company has also designated Outside Directors Mr. Masanobu Kaizu, Mr. Toshiharu Kagawa, Ms. Yoshiko Iwata and Mr. Kyoichi Miyazaki as independent directors as stipulated by the Tokyo Stock Exchange, Inc. (“TSE”), and registered them as such with the TSE.14Reference Documents for the General Meeting of Shareholders[Reference 1] Criteria on independence of Outside Directors and Outside Corporate AuditorsDescribed below are the criteria for judging independence of Outside Directors and Outside Corporate Auditors. The Company has set these criteria by adding the Company’s unique essence on to those issued by the Tokyo Stock Exchange and other relevant legal requirements.◆ Any of the following items must not be applicable in the most recent consolidated fiscal year (year-end). (1) A person conducting business operations of the Company’s group (e.g. Executive Director, Executive Officer or employee; hereinafter the same applies)(2) A main account (*) of the Company’s group, or a person conducting business operations for the account(*) A main account means any of the following persons or organizations. ○ A customer to which the Company’s group makes 2% or more of its consolidated net sales ○ A supplier or a service provider that makes 2% or more of its consolidated net sales to the ○ A lender from which the Company’s group has gotten a loan amounting to 2% or more of its Company’s groupconsolidated total assetsbusiness operations of the shareholderstatutory audit work for the Company’s groupOfficers with the Company’s group(3) A major shareholder of the Company (who holds 10% of the total voting rights) or a person conducting (4) A certified public accountant or a person who belongs to an audit corporation that undertakes (5) A person who conducts business operations of a company that has interlocking Executives or Executive (6) A professional (e.g. lawyer, certified public accountant, registered tax accountant, or consultant) who receives compensation, etc., amounting to 10 million yen or more, in addition to Director compensation, from the Company’s group (If such professional is a corporation or another organization, a person who belongs to such corporation or organization is applicable)(7) An individual, organization or a person who conducts business operations for such individual or organization and receives a contribution of 100 million yen or more from the Company’s group(8) A person who used to be applicable to (1) above in the past 10 years or a person who used to be applicable to any of (2) through (7) above in the past 3 years(9) The spouse or a relative within the second degree of a person described in (1) through (8) above. However, a “person conducting business operations” is limited to an important person conducting such operations (i.e. Executive Director, Executive Officer, or high-ranking employee receiving the same treatment as Executive Officer)15[Reference 2] Skills matrix for Directors and Corporate AuditorsA list of experience and expertise possessed by the Directors and Corporate Auditors (skills matrix) as of the (scheduled) conclusion of this General Meeting of Shareholders is as follows.Position and Assignment of Work in the CompanyPresident/Senior General Manager of Sales Headquarters/Member of the Nomination and Compensation Committee/Member of the Sustainability CommitteeDirector and Executive Officer/General Manager of Administration Division/In charge of HRDirector and Executive Officer/General Manager of Finance & Accounting DivisionDirector and Executive Officer/In charge of Business Management/General Manager of Presidential OfficeDirector and Executive Officer/In charge of Supply Chain ManagementDirector and Executive Officer/Senior General Manager of Engineering HeadquartersDirector and Executive Officer/Vice Senior General Manager of Sales HeadquartersDirector and Executive Officer●Outside Director/Lead independent Director/Chairman of the Nomination and Compensation CommitteeOutside Director/Member of the Nomination and Compensation CommitteeOutside Director/Member of the Sustainability CommitteeOutside Director/Chairman of the Sustainability CommitteeFull-time Corporate Auditor●　Name123456789　Yoshiki Takada　　　　　　Toshio Isoe　 Masahiro OtaSusumu MaruyamaSamuel NeffYoshitada DoiKoji OguraKelley StacyMasanobu KaizuToshiharu KagawaYoshiko IwataKyoichi MiyazakiNaoto MoriyamaArata ToyoshiHaruya UchikawaIndependent Outside10Independent Outside11Independent Outside12Independent Outside1314Independent Outside15Independent OutsideCorporate ManagementEconomic AnalysisTechnology DevelopmentSales &MarketingSCMFinanceAccountingLegal RiskManagementIRESGSDGsInternationalismSkill●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●Outside Corporate Auditor●Outside Corporate AuditorEND16(Appendix) Business Report (April 1, 2021 to March 31, 2022)１ Matters pertaining to the present status of the Group❶ Main business activities　Manufacturing and sales of automatic control equipment, including pneumatic instrumentsSMC Group’s products are making contributions to automation and labor-saving in all industry sectors.Medical1 Pneumatic instrumentsInstruments that utilize the pressure of compressed air as core energy source and perform automatic operations such as pressing, gripping and turning the objects in place of the manual work by human handsMachine toolsKey productsAir cylinders, Air grippers, Rotary actuators, Solenoid valves, Air line equipment, One-touch fittings, Vacuum unitsAgricultureSolenoid valvesAir cylindersAir line equipmentAir dryer2 Electric instruments3 Sensor4 Temperature control equipmentKey productsElectric actuatorsKey productsPressure switchFlow switchKey productsThermo-chiller Thermo-controllerAutomobileFoodSemiconductor1718Business Report Global Network (for reference purpose)U. K.ItalySpainGermanyChinaTaiwanBeijing ManufacturingHong KongEurope 16.3%118,475million yenNet salesYoY change+30.2%After falling in response to the impact of COVID-19, demand recovered sharply in the second half of the fiscal year, primarily in areas related to semiconductors, electronics, and machine tools. Automobile-related demand was affected by the semiconductor shortage, but due in part to EV-related investments it exceeded the level of the previous fiscal year. The Russian invasion of Ukraine had only a limited impact.Greater China27.8%Net sales202,280million yenYoY change+41.3%In China, due to the impact of both U.S.-China trade friction and policy support, there was a sharp increase in demand in areas related to semiconductors and rechargeable batteries. Investments related to EV were brisk, and automobiles and machine tools also performed well. In Taiwan, capital investments for semiconductors remained strong. On the other hand, there are some remaining concerns about the impact of lockdowns caused by the spread of COVID-19, and other factors.Other Asia14.9%Net sales108,180million yenYoY change+32.7%KoreaSingaporeIn the first half of the fiscal year there was an impact from the spread of COVID-19, but this switched to recovery in the second half. Demand recovered in South Korea, Singapore, and Malaysia, primarily in semiconductor-related areas. In Thailand and India, automobile-related industry was affected by the shortage of semiconductors, but sales were higher year on year.❷ Business progress and resultsDuring the fiscal year 2021, economic activity in multiple countries began to rebound from COVID-19, and manufacturing industry in general saw a recovery in appetite for capital investment. However such factors as supply chain disruptions, including semiconductor shortages, sharp increases in raw materials and logistics costs, and the Russian invasion of Ukraine have led to a continuation of the uncertain outlook.Demand for automatic control equipment in areas related to semiconductors and electronics remains at high levels across all regions, including North America, Europe, and Asia, but particularly in China and Japan. Areas related to 19the automobile industry continued to be affected by cuts in production caused by shortages of semiconductors and other parts, but there was growth in demand related to electric vehicles and rechargeable batteries. Machine tools were generally strong, primarily in overseas. In areas related to medical equipment, food machinery, and other industries, saw strong demand for labor-saving and automation post-COVID-19 resulted in robust performance.In this environment, the Group implemented a variety of initiatives aimed at moving to multiple sources of supply and enhancing quality in order to avoid the impact on production of shortages in parts procurement. The Group North America14.5%YoY Net change +40.6%sales 105,225million yenDue in part to the trade friction between the U.S. and China, customers in the U.S. took a proactive approach to capital investments, and sales to the semiconductor-related industry were particularly strong. In an automobile-related industry, which is a key industry, there were some impact from the shortage of semiconductors, but EV-related investments were brisk, and demand recovered across a broad range of industries, including the related area of machine tools.U. S.MexicoNet salesYear ended March 31, 2022727,397Million yenNet Other1.7%sales 12,771million yenWith the recovery from COVID-19 progressing, South America, Oceania and other regions posted year-on-year increases in sales.change +28.0%YoY AustraliaBrazilJapan24.8%sales 180,463million yenNet change +19.0%With capital investments that were postponed due to the impact of COVID-19 resuming, sales of semiconductors and machine tools recorded a significant increase. Automobile-related industry was affected by cuts in production, but net sales rose year on year. Industries related to medical equipment, food machinery, and other performed well, boosted by new demand for labor-saving and automation post-COVID-19.YoY Tsukuba Technical Center Soka FactoryTsukuba FactoryKamaishi Factoryal s o c ontinue d an a g gr e s siv e pr o gr am o f c apit al investments, aiming to ensure adequate product supply c ap a ci t y t o me e t g r o w in g demand, and cr e a t in g manufacturing bases in multiple locations to enhance the sustainability of production. In addition, the Group continued to aggressively promote sales activities by interacting directly with global manufacturers to elicit their needs, and by offering new products that are smaller, lighter, and offer superior energy-saving performance, or enhanced durability.As a result, consolidated net sales for this fiscal year were 727,397 million yen (31.7% increase year on year), and although selling, general and administrative expenses increased mainly in personnel expenses, the effect of revenue increase resulted in operating profit of 227,857 million yen (48.6% increase year on year). Interest income declined, but foreign exchange gains increased due to the weaker yen, and ordinary profit ended up 272,981 million yen (58.9% increase year on year) while profit before income taxes was 272,851 million yen (58.2% increase year on year), and profit attributable to owners of parent was 192,991 million yen (58.5% increase year on year).ROE became 13.2%, increased by 3.9 points from the previous fiscal year.20Business Report ❸ Issues to be addressedSMC Group declared its “Management Philosophy” as follows. And issues that SMC Group needs to deal with toward the future are clarified as the “Long-term management vision”.(1) Management Philosophy1) Contributing to automated, labor-saving operationsThe Company considers that its social mission is to “contributing to automated, labor-saving operations in industries” through the manufacturing and sales of automatic control equipment, including pneumatic instruments.2) Focusing on the main business As a manufacturer of component parts “contributing to automated, labor-saving operations in industries”, the Company fulfills its objectives and strives to improve its competitive advantages by concentrating its management resources on the automatic control equipment business, its main business.3) Supplying products globallyThe Company will supply products that can meet the rules and needs of different countries and regions and are accepted in all the markets of the world.(2) Long-term management vision1) The Company strives to develop products required by customer and to create a framework which can respond to customer requiring for delivery dates, quality, prices, etc.2) The Company focuses on newly expanding production facilities and replacing existing facilities, establishes a globally optimal production system with future vision in mind, and accelerates rationalization and cost reduction.3) The Company aims to survive competitions in the global markets and to acquire higher market shares.❹ Status of capital investmentsThe Company focuses on new construction and expansion of production facilities, and acquisition of land for production facilities in order to establish production capabilities with the future in mind and create a system capable of maintaining global production supply even during emergencies. The Company also introduced new equipment and updated molds, etc., in order to achieve further rationalization and cost reduction.With the delays in progress caused by COVID-19 beginning to be recaptured, total capital investments during this fiscal year came to 83,499 million yen (204.3% increase year on year), which included the acquisition of land for the construction of a new head office.Listed below are the main capital investments during the fiscal year 2021.① SMC (Tianjin) Manufacturing② Shimotsuma Factory No.221❺ Changes in assets and financial results(Millions of yen) Year ended March 31, 2019Year ended March 31, 2020Year ended March 31, 2021Year ended March 31, 2022 Net salesOrdinary profitProfit attributable to owners of parentNet income per share (yen)Total assetsNet assetsNet assets per share (yen)Return on equity576,948198,201130,6311,943.351,389,3081,243,25218,447.3910.9％526,000158,450110,5001,656.441,390,5391,253,26618,794.588.9％552,178171,827121,7901,831.981,539,8711,379,98720,835.479.3％727,397272,981192,9912,923.761,769,9511,559,27423,808.0813.2％Net sales (billion yen)Ordinary profit (billion yen)727.3272.9576.9526.0552.1198.2158.4171.8Year ended March 31, 2019Year ended March 31, 2020Year ended March 31, 2021Year ended March 31, 2022Year ended March 31, 2019Year ended March 31, 2020Year ended March 31, 2021Year ended March 31, 2022■ Profit attributable to owners of parent (billion yen)● Net income per share (yen)192.9■ Net assets (billion yen)　● Net assets per share (yen)130.6110.5121.71,9431,8311,6562,9231,243.21,253.21,559.21,379.923,80818,44718,79420,835Year ended March 31, 2019Year ended March 31, 2020Year ended March 31, 2021Year ended March 31, 2022Year ended March 31, 2019Year ended March 31, 2020Year ended March 31, 2021Year ended March 31, 202222Business Report ❻ Status of principal subsidiariesCompany nameShare capitalMajor businessPercentage of voting rights (%)47.3100.0100.0100.0100.099.9100.0100.0100.0100.0100.0¥ 304 million¥ 100 million(SMC US)US$ 172,700 thousand(SMC Germany)EUR 84,101 thousand(SMC U.K.)(SMC Italy)£ 14,500 thousandEUR 18,145 thousand(SMC Taiwan)NT$ 420,840 thousandEUR 3,305 thousandS$ 5,600 thousandKRW 46,500 millionCNY 5,685 millionNihon Kizai Co., Ltd.Seigyo Kizai CorporationSMC Corporation of AmericaSMC Deutschland GmbHSMC Pneumatics (U.K.) Ltd.SMC Italia S.p.A.SMC Espana S.A.(SMC Spain)SMC Corporation (Singapore) Pte. Ltd.(SMC Singapore)SMC Automation (Taiwan) Co., Ltd.SMC Korea Co., Ltd.(SMC Korea)SMC Investment Management China Co., Ltd. (SMC Investment Management)SMC Automation China Co., Ltd.(SMC China)SMC (China) Co., Ltd.(SMC (China) Manufacturing)SMC (Beijing) Manufacturing Co., Ltd.(SMC (Beijing) Manufacturing)SMC (Tianjin) Manufacturing Co., Ltd.(SMC (Tianjin) Manufacturing)SMC Manufacturing (Singapore) Pte. Ltd.(SMC (Singapore) Manufacturing)SMC Manufacturing (Vietnam) Co., Ltd.(SMC (Vietnam) Manufacturing)SMC Automacao do Brasil Ltda.(SMC Brazil)CNY 100 million(Note) 100.0CNY 1,504 million(Note) 100.0CNY 1,716 million(Note) 100.0CNY 2,000 million(Note) 100.0S$ 10,000 thousandVND 8,038,304 million100.0100.0BRL 332,525 thousand(Note) 100.0Sales of automatic control equipmentSales of automatic control equipmentManufacturing and sales of automatic control equipmentManufacturing and sales of automatic control equipmentManufacturing and sales of automatic control equipmentManufacturing and sales of automatic control equipmentManufacturing and sales of automatic control equipmentManufacturing and sales of automatic control equipmentManufacturing and sales of automatic control equipmentManufacturing and sales of automatic control equipmentManagement of subsidiaries in ChinaSales of automatic control equipmentManufacturing and sales of automatic control equipmentManufacturing of automatic control equipmentManufacturing of automatic control equipmentManufacturing of automatic control equipmentManufacturing of automatic control equipmentManufacturing and sales of automatic control equipment(Note) The Company’s percentages of voting rights in SMC China, SMC (China) Manufacturing, SMC (Beijing) Manufacturing, SMC (Tianjin) Manufacturing, and SMC Brazil include those indirectly held by the Company’s wholly-owned subsidiaries.There are 44 consolidated subsidiaries including the abovementioned 18 principal subsidiaries.23❼ Status of employeesNumber of employees21,620Increase from the previous year1,001(Notes) 1. The number of employees represents the number of the actual workforce (i.e., excludes staff seconded to non-Group companies from Group companies and includes staff seconded to Group companies from non-Group companies). 2. In addition to the above, we employ 5,630 temporary staff (average during the year; increased by 569 persons from the previous year).❽ Status of main lending banksNames of lending banksResona Bank, LimitedOutstanding balance of borrowings¥ 8,738 million❾ Major bases(1) SMC CorporationSales officesProduction facilities(2) SubsidiariesNoneHead officeAkihabara UDX Building, 4-14-1, Soto-Kanda, Chiyoda-ku, TokyoSendai, Omiya (Saitama), Kofu, Tokyo, Atsugi, Hamamatsu, Toyota, Nagoya, KanazawaKyoto, Osaka, Okayama, Hiroshima, FukuokaSoka, Tsukuba (Ibaraki), Yamatsuri, Kamaishi, Tono, ShimotsumaR&D centersTsukuba Technical Center (Ibaraki)As described in “⑥ Status of principal subsidiaries”.❿ Other significant matters pertaining to the present status of the Group24Business Report 2 Matters pertaining to the Company’s shares❶ Total number of shares outstanding: 67,369,359 (including 2,026,413 shares of treasury share)❷ Number of shareholders: 4,537❸ Major shareholders (Top 10)ShareholderNumber of shares held (Thousand shares)Percentage of voting rights (%)Master Trust Bank of Japan (Trust account)Custody Bank of Japan, Ltd. (Trust account)Takada International LLCTON Finance B.V.JP Morgan Chase Bank 385632The Bank of New York Mellon 140042State Street Bank and Trust Company 505223The Bank of New York Mellon as Depositary Bank for Depositary Receipt HoldersResona Bank, LimitedSSBTC CLIENT OMNIBUS ACCOUNTmajor shareholders.9,402.04,009.03,793.03,443.53,165.91,717.71,460.61,438.71,322.81,243.714.386.135.805.264.842.622.232.202.021.90(Notes) 1. The Company holds 2,026,413 shares as treasury share. However, this is excluded from the above list of 2. Percentages of voting rights are calculated based on the number of shares outstanding of 65,342,946 shares (excluding treasury shares) and are indicated by rounding down figures to two decimal places.Distribution of share by shareholdersIndividuals2.6%Commercial / Local banks2.4%Trust banks24.4%Life insurance and other financials3.5%Corporations, etc.7.3%Individuals �������� 1,745.8 thousand of sharesCommercial / Local banks � 1,606.7 thousand of sharesTrust banks ������� 16,413.9 thousand of sharesLife insurance and other financials � 2,342.4 thousand of sharesCorporations, etc. ���� 4,958.5 thousand of sharesForeign investors ���� 37,759.5 thousand of sharesTreasury shares ����� 2,026.4 thousand of sharesOther ���������� 515.8 thousand of sharesOther0.8%Treasury shares3.0%Foreign investors56.0%25❹ Status of shares granted to the Company’s Directors and Corporate Auditors as remuneration for executing duties during the fiscal yearNumber of sharesNumber of persons granted sharesDirectors (excluding Outside Directors)700 shares6 personsOutside DirectorCorporate Auditors――――(Note) The above number is the number of shares equivalent to the points to be granted to Directors (excluding Outside Directors and Directors who do not execute business) through a stock benefit trust as stock compensation.❺ Other significant matters pertaining to the Company’s sharesThe Company repurchased its treasury shares pursuant to the resolution at the Board of Directors’ Meeting To enhance returns to shareholders and improve capital efficiencyheld on February 14, 2022, as follows.(1) Purpose of the repurchase (2) Total number of shares repurchasedCommon shares of the Company 734,700(3) Total amount of repurchase49,996 million yen(4) Period of repurchase(5) Method of repurchaseMarket purchaseFrom February 16, 2022 to March 4, 202226(Reference)To fulfill our corporate social responsibilityEco-ProductsEvolution of SMC ProductsSince its establishment, SMC has been developing automatic control equipment, including pneumatic instruments, and has increased product variations to meet the needs of its customers.In addition, based on the methodology of “topology optimized design process”*, SMC is developing products smaller and lighter, with more air and power-savings, thereby achieving a significant reduction in CO2 emissions during its manufacturing and usage.Solenoid Valves (Directional Control Valves)YearSeriesPower consumption1971VS40005.5WValve widthValve width36mm26.4mm1983VF2W1984VZ15mm2W1993SY10mm0.55W*1 Without sub-plate*2 With energy-saving circuitryWeight: 375g*1Actuators(Motive Equipment)1 9 7 01 9 7 41 9 7 6Steel-bodied cylinderCylinder with auto switchNon-lube cylinderJapan’s first aluminum-bodied cylinder* Topology optimized design processEco-products made by eco-productsTopology optimization is a methodology for finding the optimal shape and form of a structure based on mathematical and mechanical evidence.We use our own products that have significant CO2-reducing effects in our own production lines.1998SZ10mm0.6WValve width2005SJ20007.5mm0.23W*22009New-SY10mm0.4W2019JSY6.4mm0.2W*22020SJ10006.5mm0.23W*2Weight: 17gDownsizing and weight reduction realized with topology optimized design processPursuit of base models / product expansion● Product development to meet customer requirements● Product improvement and product expansion● Product quality improvement and cost TodayreductionBase models: 50Total no. of items: 600,000Initiatives to reduce CO2 emissions and product developmentCompact and lightweight● Reduce CO2 emissions through topology Air-savingoptimized design process ● Exhaust air reuse circuitry ● Built-in air-saving circuitryYea r1 9 7 01 9 8 01 9 9 02 0 0 02 0 1 02 0 2 02728(Reference)To fulfill our corporate social responsibilityBCP Risk diversification for mass production and distribution basesIn order to prepare for emergencies such as large-scale disasters or outbreaks of conflict, SMC is promoting the duplication of production, and has established a system in which major mass production facilities in six countries around the world can complement each other. In addition, SMC maintains an ample inventory level at its distribution bases in five countries around the world, and are highly resistant to transportation disruptions.Backup production system in case of disasterSecure supply capability through a worldwide distribution and inventory networkMass Production FactoriesDryer/Temperature control equipmentAir line equipmentFittings/TubingSolenoid valvesFlow ControlsActuatorsOtherAuto switchesYamatsuri Factory●Soka FactoryTsukuba FactoryShimotsuma FactoryKamaishi FactoryTono FactoryChina FactoryVietnam FactorySingapore FactoryIndia FactoryCzech Factory●●●Distribution Centers●●●●●●●●●●●●●●●●●●●●●●●●●●●●●Korea Central WarehousePossibilities of Automatic Control EquipmentAgricultureSMC’s automatic control equipment is used for labor-saving and automation in a wide range of industries because of its simple design, ease of handling, and versatility.As a leading manufacturer of automatic control equipment, SMC is working to further expand its applications, and in recent years has been focusing on the agricultural field. By utilizing the characteristics of these products, which are compact, lightweight, and suitable for replacing manual work in the agricultural field, SMC hopes to contribute to solving social issues such as the declining birthrate and aging population, the decrease in the working population, climate change, and also supporting the increase in production and stable supply of food.Application Examples of Automatic Control Equipment in Plant FactoriesCO2 supplyNutrient supplyNutrient recoveryFiltrationNutrient drainageUndiluted liquid lineTemperature control managementUndiluted solution WaterNutrient lineTransfer of culture mediaCucumber Harvesting Robot(photo courtesy of Ehime University)8thNext Generation Agriculture Expo TokyoWe participated in the 8th Next Generation Agriculture Expo Tokyo (AGRINEXT TOKYO) during October 13–15, 2021.Belgium European Central WarehouseEast Japan Logistics CenterWest Japan Logistics Center (construction in progress)U.S. Central WarehouseChina Logistics CenterWith the manipulator slide mechanism, the automatic control equipment harvests the crop instead of human hands.2930Business Report 3 Matters pertaining to the Company’s Directors and Corporate Auditors❶ Directors and Corporate Auditors (As of March 31, 2022)NamePosition, assignment of work and significant concurrent positionYoshiki TakadaPresidentSenior General Manager of Sales Headquarters/Chairman, SMC US(Member of the Nomination and Compensation Committee)(Member of the Sustainability Committee)Toshio IsoeDirector and Executive Officer General Manager of Administration Division and in charge of HRMasahiro OtaDirector and Executive Officer General Manager of Finance & Accounting DivisionSusumu MaruyamaDirector and Executive OfficerIn charge of Business Management and General Manager of Presidential OfficeSamuel NeffDirector and Executive OfficerIn charge of Supply Chain ManagementYoshitada DoiDirector and Executive OfficerSenior General Manager of Engineering HeadquartersMasanobu KaizuOutside Director(Chairman of the Nomination and Compensation Committee)Senior Research Fellow and Adviser, Nomura Securities, Co., Ltd. Financial and Economic Research CenterToshiharu KagawaOutside Director(M