Basic Policy "IR Policy"

As a "contributing member of society," ESPEC advocates, as its corporate philosophy, building a meaningful relationship with every stakeholder (improvement of value exchange) and fulfilling its social responsibilities.
Our "IR Policy" is explicitly stated based on such corporate philosophy applied to IR activities that are intended to improve communication with shareholders and investors, and aims at disseminating information regarding our code of activities.

• IR Policy (IR)

Communication with Shareholders and Investors

Policy on Disclosures and IR Activities

We disclose information in accordance with corporate laws, the Financial Instruments and Exchange Act, other related laws and regulations, as well as with the Timely Disclosure Rules and other related rules prescribed by the stock exchange. We also disclose in a proactive and fair manner other useful information that does not fall under these rules in order to further the understanding our shareholders and investors.
We have established an information disclosure committee as an internal corporate structure tasked with deliberating over information disclosure issues. We are also striving to centralize the information by limiting the number of people who can disclose. In our IR activities, we aim to build relationships of trust with our shareholders and investors by deepening their understanding of ESPEC so that they evaluate our company properly. We also aim to utilize market valuations in ESPEC's management activities.

Initiatives to Energize the General Meeting of Shareholders and Streamline the Use of Voting Rights

• General meeting of shareholders

We believe that the general meeting of shareholders is a valuable opportunity to directly interact with our shareholders. When holding our meetings, we deliberately avoid days on which many companies hold their meetings of shareholders in order to allow more shareholders to participate. Striving for early sending of meeting notifications, we succeeded in sending them one week before the legally required date.
We also posted announcements at the Tokyo Stock Exchange and on our homepage two weeks before the legally required date, we are working to expand our English language contents, and to post English versions (summaries) on the same day. We also changed to a color design for the Notice of the 69th Ordinary General Meeting of Shareholders, and worked to improve its readability. Even following the introduction of the electronic provision system for shareholder meeting materials, we continued to mail printed convocation notices even without a request for notification by post. However, starting with the 72nd Ordinary General Meeting of Shareholders held on June 20, 2025, we began mailing written notifications that include instructions on how to access the website where shareholder meeting materials are posted.

• Exercise of voting rights

A Smart Voting system is also available that allows shareholders to exercise their voting rights by mail or via the Internet, with voting made easy simply by reading a 2D code from a smartphone. We have also introduced a new electronic voting rights exercise platform, and are working to improve the exercise environment for institutional investors as well.

IR Policy and Activities

Participation of top management in IR activities

Top executives actively participate in IR activities. Individual meetings are organized with both domestic and international institutional investors, and in FY 2024 we conducted discussions with a total of 22 such companies. Meanwhile, at our briefings for individual investors, the President provided details about the company’s strengths and shareholder returns.

Enhancement of information transmission

• Shareholders' Communications

Kabunushi Tsushin is issued twice a year with the purpose of deepening understanding of ESPEC among its shareholders. It includes information about products that were successfully delivered as well as about ESPEC's management structure and CSR activities.

• Financial and non-financial information

ESPEC provides financial and stock data (factbooks) for the last 10 years in both Japanese and English. We also disclose non-financial information including materials summarizing our sustainability initiatives, ESG data compilations, and enhancements to our sustainability site.

Feedback to Management

Shareholder Surveys

In addition to receiving opinions from investors at corporate briefings and other such occasions, we conduct surveys targeted at shareholders when forwarding shareholders' communications. We report opinions and other ideas received from our shareholders in the interim shareholders' communication.

Market Assessment Feedback

Results of surveys conducted at IR events and through shareholders’ communications, as well as opinions and other ideas received at individual meetings, are compiled into reports and submitted to the Board of Directors. We also share information with executive officers and general managers of related departments, and we strive to reflect that in our management strategy. By reflecting market evaluations and feedback, we aim to identify issues and continue improving both our IR activities and the quality of management.

Returning Profits to Shareholders

Basic Policy on Profit Distributions

The Company recognizes that the return of profits to shareholders is an important management priority, and that constantly raising enterprise value is the key element in ensuring improved shareholder returns. Accordingly, the Company's basic policy is to determine return of profits to shareholders in consideration of continuity and the consolidated dividend payout ratio. Specifically, we have decided on a consolidated dividend payout ratio of 40% or more and will be purchasing treasury shares in a flexible manner.
During the period of the medium-term management plan “Progressive Plus 2027” (FY 2025 to FY 2027), we will ensure a total return ratio of 50% or more, cumulative over three years, and will not reduce dividends.

Dividend / Shareholder Returns