Message from the President and CEO

Antimonopoly Act Violations and Materiality Reassessment

The ShinMaywa Group is currently advancing its [SG-2026] Medium-Term Management Plan corresponding to the second phase of [SG-Vision 2030], a three-phase long-term management plan for the period through to 2030.

[SG-Vision 2030] puts forward two themes: long-term business strategies, and strengthening management foundations. In addressing those themes, building solid management foundations is a prerequisite for the implementation of long-term business strategies oriented toward sustainable profit expansion and growth.

1. Report on Antimonopoly Act Violations in the Special Purpose Truck Business

Violations of Japan’s Antimonopoly Act in the ShinMaywa Group’s parking systems business and special purpose truck business have rocked those management foundations. This is a serious matter—one that damages stakeholder trust and fundamentally undermines our commitment to sustainability management. On behalf of our Group, I wish to apologize to our customers and our suppliers, who have shown confidence in us to purchase or provide goods and services; to our shareholders, who have chosen to invest in our stock in anticipation of future gains; and to our employees.

Violations of the Antimonopoly Act in the special purpose truck business were identified through a survey of officers and employees conducted as part of recurrence prevention measures initiated after on-site inspections of the parking systems business by the Japan Fair Trade Commission (JFTC). We self-reported the violations to the JFTC and simultaneously filed for leniency. As a result, no cease and desist order or surcharge payment order was issued. However, the fact remains that violations occurred. As was the case in the parking systems business, we have taken strict disciplinary action against those involved.

Once again, I apologize for the repeated legal violations and take this opportunity to reassure you of our commitment to ongoing recurrence prevention.

2. Reassessment of Materiality as the Basis for Sustainability Management

Legal compliance is one element of sustainability management. In ensuring steady implementation of sustainability management, the identification of ESG-related materiality (key issues) and specification of key performance indicators form the basis for all activity.

In light of changing social and economic conditions, diversifying expectations of stakeholders, and our evolving business strategies, we reexamined and reevaluated the process for specifying materiality that we established in FY2022. After extensive dialogue with related departments, we settled on a new set of key issues, taking into account risks and opportunities as determined from a medium- to long-term perspective. The revised materiality aligns with growth strategies of both the [SG-Vision 2030] and [SG-2026], tying in with key measures.

As stakeholders of the ShinMaywa Group, please take the time to view the new materiality, representing the initiatives that will enhance our existential value as seen from diverse standpoints. And as we espouse sustainability management, please guide us with your strict scrutiny so that such legal violations are not repeated. We are committed to the materiality we have specified and will work tirelessly to restore your trust.

*Some of the content featured in the “Sustainability” section of our official website provides more detailed information than what is included in our Integrated Report. We invite you to refer to the Integrated Report (PDF) for information structured around our Value Creation Story, and to the Sustainability webpages for theme‑specific initiatives and additional details.

In addition to the above, our official website provides a range of up‑to‑date information related to our corporate management. Furthermore, in March 2025, we launched a dedicated page for our company within Journagram, a collaborative content platform operated by Nikkan Kogyo Shimbun, Ltd. On this platform, you can view articles and related information about the ShinMaywa Group that have been featured on their digital news site.