Dear Shareholders:

We would like to express our appreciation for your continued support and patronage.

Along with the delivery of the Notice of the 120th Annual General Meeting of Shareholders, please allow me to say a few words.

The environment surrounding the SANYO DENKI Group during the fiscal year under review saw a recovery trend primarily in the manufacturing industry, due to revitalized capital investments as a result of improvements in corporate earnings. Meanwhile, the slowdown in economic activities continues due to the global shortage of electronic parts, mainly of semiconductors, and the effects of COVID-19. In such a climate, SANYO DENKI CO., LTD. (the “Company”) has been making efforts to develop a structure to ensure sustainable profits.

Under the 9th Mid-term Management Plan, which started in April 2021, the Group is aiming to build a “leading global brand” as a global company by creating new things and new ways of doing things in unprecedented ways with the theme of “Breaking the Shell.” As an initiative to achieve this end, the Group has been going forward with the improvement and expansion of our global design/development structure and sales framework.

Specifically, in May 2021, we opened a new wing at our Technology Center in Ueda City, Nagano Prefecture, with the aim of strengthening business and improving design and development environments, and we aim to reduce the duration of development period by 20%.

Additionally, in April 2022, we opened a technology center to engage in the design and development of cooling system products within the sales base in Taiwan. We will promptly develop products in line with customer needs, mainly for data centers and the ICT industry.

Regarding sales activities, we opened a new branch in Munich, Germany. The new branch will target a wide range of markets including automotive, electrical and electronic equipment, and heavy machinery, and engage in new business development and provide our distributors with support mainly in southern Germany and Austria.

Additionally, we endeavored to strengthen our relationships with stakeholders. Our efforts include the development and sales of “Ecoproducts,” i.e., products to reduce the environmental burden, the announcement of the “Declaration of Partnership Building” to build long-term relationships of trust with suppliers on the supply chain, and our recognition as a “2022 Certified Health & Productivity Management Outstanding Organization,” as a result of engaging in Health & Productivity Management to help employees perform to the best of their abilities.

With these kinds of initiatives, we have achieved the results for the fiscal year described below.

If approved at this General Meeting of Shareholders, dividends at the end of the fiscal year under review will be 60 yen per share, and together with the interim dividends of 55 yen per share paid in December 2021, the annual dividends will be 115 yen per share.

We look forward to your continued support.