Our Management Philosophy, “Management of Fostering Personnel, Management of Breaking Through, and Management of Trust,” is the DNA of Yamazen, passed down continuously since the time of our founder Takeo Yamamoto to our employees today. The employees who carry on this legacy are our source of competitive advantage and our core competence. For more than 70 years, our employees have built long-term relationships of trust with regional trading companies and supplier manufacturers, constructing the foundation for our wholesale and logistics business. Together with manufacturers who turn technical expertise into finished products and regional trading companies who sell these valuable products to users, we have made all kinds of proposals to ensure that user production consistently maintains in optimal condition and can continue to evolve. This is the core of what it means to be a specialized trading company with heart and skill.

FY2025 marks the beginning of our Medium-Term Management Plan, PROACTIVE YAMAZEN 2027. Our approach to our business portfolio is to determine the direction of our businesses in consideration of capital profitability, growth potential, and synergy between businesses. We will allocate resources to business segments that create profound value and possess high growth potential by combining the stable cash obtained from our foundational wholesale business with the social and human capital we have built with our business partners over our long history. Specifically, these businesses are the Engineering Business, which provides added value through technical capacity, and the Product Development Business, which specializes in fabless product development and sales. In promoting these businesses, we aim for growth in each business around five strategic points (value enhancement, accelerating global expansion, upgrading sales activities, strengthening management infrastructure, and strengthening sustainability management) to achieve net sales of ¥600 billion, operating profit of ¥16 billion, profit of ¥11 billion, and ROE of 8% by FY2027.

Finally, we will continue to provide stable shareholder returns through our current shareholder return policy, set to whichever is higher: a consolidated dividend payout ratio of 40% or a dividend on equity (DOE) of 3.5%. We will also implement share buybacks flexibly after comprehensively considering timing, financial conditions, stock prices, and stock liquidity.

We ask for your continued support and encouragement going forward.

President CEO