Ensuring sustainable growth through business expansion in a spirit of compliance
-This practice is my mission

ShinMaywa Group is currently implementing [SG-2026], the second phase of the three Medium-term management plans that comprise its Long-term management plan [SG-Vision 2030].

In FY2024, the first year of [SG-2026], we were able to make a good start in terms of business performance. We operate five major businesses under a "divisional system," and orders received were generally favorable, with the exception of the Industrial Machinery and Environmental Systems segments. In view of the status of orders received, which is the source of our earnings, we realized in the previous year that our main businesses have contact with social infrastructure and that these businesses are continuously needed by our customers.

As you are probably aware from news reports and other media, while we have been engaged in various activities with respect to our relationships with our stakeholders, our parking systems business in 2023 and special purpose truck business in 2024 were subject to on-site inspections by the Japan Fair Trade Commission for suspected violations of the Antimonopoly Act. Thorough compliance is fundamental to management, and on behalf of the company, I would like to apologize for causing this situation.

For our parking systems business, a cease and administrative fine payment order from the Japan Fair Trade Commission was issued in March 25, 2025 for violations of the Antimonopoly Act. We sincerely regret the fact that we have been committing fraudulent acts in the sales activities of this business, and to prevent the repetition of similar violations, our executives will take the initiative in repeatedly conveying to our executives and employees the meaning of "clean" as stated in "Corporate principles" and will continue to educate and implement measures to prevent fraud. We hope that our stakeholders will watch the words and actions of our executives and employees with a strict eye.

The Fair Trade Commission's inspection of our special purpose truck business is still ongoing, and we apologize again for the concerns we have caused for a long time following our parking systems business. We will report the results of the inspection as soon as they become clear.

In our Group, which operates multiple businesses, the number of management themes to be addressed is increasing in proportion to the emergence of social issues. At the same time, as we continue to issue Integrated Reports, we feel that we are now able to communicate these issues as a coherent value creation story based on our own strengths and challenges.

As we pursue various initiatives aimed at creating future value, society's demands for sustainability from companies are increasing year by year, and we recognize that one of our important value-enhancing measures is to respond to these demands. We are committed to continuously and proactively developing and improving our skills to respond to these demands from society, and to continue to be a company that our customers and business partners can rely on to maintain relationships with us.

Some of the "Sustainability" contents posted on our website contain more detailed information than the Integrated Report. Please refer to the PDF data of the Integrated Report for the development based on the value creation story, and refer to these contents for theme-specific initiatives and detailed information.

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