Okabe : (Corrections and Correction of Numerical Data) Notice of Partial Corrections and Posting of Income Taxes-Deferred in Summary of Consolidated Financial Results (Japanese Accounting Standards) for the Year Ended December 31, 2023

Member of Financial Accounting Standards Foundation (FASF)

Summary of Consolidated Financial Results (Japanese Accounting Standards)

for the Year Ended December 31, 2023

(Notes) 1. Revisions to dividend forecasts published most recently: None

2. The year-end dividend per share for the year ended December 31, 2023 and the figures and indicators related to it are forecasts. When the figures are determined by resolution of the Board of Directors, the Company will disclose them promptly.

3. Consolidated Forecasts for the Fiscal Year Ending December 31, 2024 (January 1, 2024 - December 31, 2024)

(Percentages represent year-on-year changes.)

• Index for Supplementary Information

‒ 1 ‒

1. Overview of Results of Operations, Etc.

1. Overview of Results of Operations for the Fiscal Year under Review (January 1, 2023 to December 31, 2023)

During the fiscal year under review, the Japanese economy remained unpredictable chiefly due to unstable conditions overseas, price increases, and trends in financial markets, despite the ongoing post-COVID-19 normalization of social and economic activities and a moderate economic recovery.

In the Japanese construction industry, where the Okabe Group's core customers operate, public investment was firm, but the recovery of private investment slowed. The environment remained challenging chiefly due to soaring labor costs caused by a chronic shortage of construction workers and continued high steel material prices.

In this business environment, the Okabe Group strove to achieve the sustainable growth of the Company and enhance corporate value, focusing on SDG-based management, including decarbonization, use of digital transformation, and acceleration of globalization, which are initiatives set out in the medium-term management plan, NEXT100-PHASE2.1.

Results of operations by business segment are as follows:

[Construction-related products]

Looking at domestic sales of construction-related products by product category, sales of temporary building and formwork products rose 3.0% year on year on firm sales due to the Group's capturing the demand resulting from an increase in reinforced concrete building starts (floor area). Sales of civil engineering products increased 2.2% year on year due to the appropriate response to demand for products used to prevent landslide disasters. Sales of building structural products climbed 2.5% year on year, reflecting the Group's focus on capturing demand from redevelopment projects in urban areas.

Sales of construction-related products increased 1.9% year on year due to the effect of the weaker yen on foreign exchange rates, although sales growth of construction materials was sluggish due to the slowdown in the U.S. housing market as a result of interest rate hikes. However, operating profit dropped due to increases in personnel expenses, packing and transportation costs and other factors.

As a result, sales in the construction-related products segment increased 1.7% year on year, to 64,128 million yen, and operating profit fell 20.2% year on year, to 4,066 million yen.

[Automotive products]

Water Gremlin Holdings, Inc., Water Gremlin Company, and Water Gremlin Aquila Company S.p.A., which primarily engage in the manufacturing and sale of automotive products, were excluded from the scope of consolidation during the fiscal year under review. The three companies' statements of income for the period before their exclusion are consolidated. Water Gremlin Holdings, Inc. and Water Gremlin Company filed a petition for reorganization proceedings with Delaware's federal bankruptcy court under Chapter 11 of the United States Bankruptcy Code on October 27, 2023 (U.S. time). After receiving permission from the court, Water Gremlin Company will transfer its business to a third party, and Water Gremlin Holdings, Inc. will transfer the shares of Water Gremlin Aquila Company S.p.A., its subsidiary, to a third party.

In this situation, net sales increased 0.8% year on year, to 9,996 million yen due to the effect of exchange rates reflecting the weaker yen, although growth in sales of automotive battery terminal products was sluggish in the United States. The operating loss stood at 300 million yen (compared with an operating loss of 144 million yen for the same period of the previous year), reflecting the effect of the filing of a petition for reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code.

[Other businesses]

Net sales came to 4,028 million yen, up 4.4% year on year, due to strong sales of industrial machinery products and the delivery of large projects in the marine business in the second half of the fiscal year. Operating profit was 316 million yen, down 0.4% year on year, due to weak sales of fishing sinkers at Water Gremlin Company.

Consequently, consolidated net sales for the fiscal year under review increased 1.7% year on year, to 78,152 million yen, and consolidated operating profit decreased 22.5% year on year, to 4,082 million yen. Consolidated ordinary profit decreased 21.3% year on year, to 4,303 million yen. The Company posted extraordinary losses of 10,307 million yen primarily due to a deterioration of the profitability of the business of manufacturing and selling battery terminal products in the automotive products segment, changes in consolidated subsidiaries as a result of the filing of a Chapter 11 bankruptcy petition, attorney fees to deal with lawsuits, and goodwill impairment losses related to OCM Manufacturing LLC, which manufactures building materials in the United States. These losses led to a loss attributable to owners of parent, which amounted to 5,472 million yen(compared with a profit attributable to owners of parent of 3,848 million yen in the previous fiscal year).

‒ 2 ‒

(3) Overview of Cash Flows for the Fiscal Year under Review

Cash and cash equivalents at the end of the fiscal year totaled 12,539 million yen, a decrease of 5,617 million yenfrom the end of the previous fiscal year.

The following is a summary of cash flows and major factors for the fiscal year under review.

[Cash flows from operating activities]

Net cash provided by operating activities during the fiscal year came to 6,202 million yen (compared with net cash provided by operating activities of 1,975 million yen in the previous fiscal year). The major factor was a decrease in inventories.

[Cash flows from investing activities]

Net cash used in investing activities during the fiscal year was 1,769 million yen(compared with net cash used in investing activities of 8,202 million yen in the previous fiscal year). The major factor was a decrease in payments for the acquisition of businesses.

[Cash flows from financing activities]

Net cash used in financing activities during the fiscal year was 8,567 million yen (compared with net cash used in financing activities of 18 million yen in the previous fiscal year). The major factor for this was an increase in repayments of short-term borrowings.

(4) Future Outlook

[Okabe Corporate Vision 2040] Up to now, and into the future,

we are striving to be a global solutions provider that provides safety and security in the lives of people around the world by cultivating Creativity × Connectivity × People Power as a manufacturer of earthquake-resistant construction materials that support construction.

Principles behind "Okabe Corporate Vision 2040"

(i) Creativity

We will strive to be a company that supports the safety and security of buildings and people through our creative technological capabilities, and will continue to utilize new technologies to create solutions for automation of construction work, zero emissions, and more.

(ii) Connectivity

This represents the power to connect with people, which is created through communication with customers, shareholders/investors, subcontractors/suppliers, employees, and local communities, and the power to connect critical components and materials used in construction sites to enhance safety.

(iii) People Power

As stated in our corporate creed, "We will endeavor to cultivate human resources for sustainable development," and "The Group will be a workplace that employees will not regret devoting their lives to," we believe that the foundation of everything we do lies in "People Power," and this will remain unchanging even in 2040.Underlying these three strengths is our desire to "contribute to society by providing safety and security." While we envision various changes in our external environment, we are committed to being a company that can contribute to a sustainable society as a member of the global community so that the global environment and humankind can change for the better.

[OX-2026 (okabe Transformation 2026), a Medium-term Management Plan]

To achieve okabe Corporate Vision 2040, the Group has identified the next three years as a period of transformation, during which it aims to create a new earnings base. To accomplish this, the Group developed the new okabe Transformation 2026 (OX-2026)medium-term management plan. The plan describes the concrete steps that the Group will take to achieve the transformation.

Guided by OX-2026, the Group views the changes in the business environment and risks as opportunities. Based on this perspective, the Group will provide solutions to address material issues in Japan and overseas, review its business portfolio, focus management resources for sustainable growth, and promote sustainability management practices.

‒ 4 ‒

Below are the main points of the business strategies and major initiatives in OX-2026:

1. Customer-centricinitiatives (prioritizing the development of a system to solve customers' problems and the implementation of initiatives to solve them)
2. • Developing products that solve issues faced by customers and society
   • Developing new products and creating new businesses to meet emerging needs
   • Establishing a product & solution planning department that specializes in construction in Japan
   • Offering solutions suitable for the North American and ASEAN markets to accelerate the global expansion of the construction business
   • Launching a business focused on blue carbon in the marine business
3. Implementing human capital management and strengthening the foundation of management
4. • Setting challenging non-financial key performance indicator (KPI) targets, especially for KPIs related to human capital, and working to achieve them
   • Improving the governance of overseas subsidiaries
5. Promoting digital transformation
6. • Upgrading core systems and transforming business processes
   • Promoting digital transformation to differentiate the Group from its competitors, creating new business opportunities and considering and implementing initiatives that will increase sales
   • Establishment of IT Strategy Department

[Business environment and priorities]

In the Japanese economy, public investment will likely remain firm, and capital investments in the private sector are expected to recover, reflecting strong corporate earnings. However, uncertainty will persist given unstable conditions overseas, price increases, monetary tightening worldwide, changes in exchange rates and other factors.

Based on these assumptions regarding the external environment, the Group will focus on reducing costs and increasing return on assets by promoting digital transformation, taking into account the conditions of customers and markets, guided by okabe Transformation 2026 (OX-2026) during the fiscal year ending December 31, 2024. Additionally, the Group will strive to propose products that will help solve customer issues and achieve decarbonization and the SDGs at work sites. Overseas, the Group will strengthen governance and streamline its business portfolio to accelerate global expansion.

The Company has made the following consolidated results forecasts for the fiscal year ending December 31, 2024.

(Yen in millions, rounded down)

‒ 5 ‒

(5) Basic Policy for Dividends and Dividends for the Fiscal Year under Review and the Next Fiscal Year

The Company's basic policy is to maintain stable dividends, a payout ratio of 30% or more, to enhance the return of profits to shareholders. The dividend is also linked to consolidated business results and comprehensively reflects the need to bolster internal reserves to strengthen the Company's financial position and fund future business operations, among other needs. The Company's basic policy for dividends of surplus is to pay both an interim dividend and a year-end dividend each year.

The Company will effectively use internal reserves for capital expenditures and corporate acquisitions to expand its business. Although profit attributable to owners of parent is expected to be significantly lower than expected due to the recording of extraordinary losses, etc., steady business growth is expected going forward as business results are generally progressing as expected, excluding special factors such as extraordinary losses. Therefore, with respect to the year-end dividend forecast for the current fiscal year, we plan to pay 12.50 yen per share based on the basic policy. With the interim dividend of 12.50 yen per share that has already been paid, this will result in an annual dividend for the fiscal year under review of 25 yen per share.

The Company has changed its shareholder return policy. The new policy will be implemented beginning with the commencement of the new okabe Transformation 2026 (OX-2026)medium-term management plan. Following this new policy, next fiscal year, the Company plans to pay a dividend of 30 yen per share, the sum of the interim and year-end dividends that will be 15 yen each, and the payout ratio will be 49.5%. The dividend on equity (DOE) ratio will be 2.2%.

[Reason for the change in the shareholder return policy]

Our Group has a policy of determining the dividend of surplus in consideration of the consolidated financial results, the strengthening of the corporate structure, the increase of retained earnings in preparation for future business expansion and other factors. Meanwhile, we follow a basic principle of maintaining stable dividends. From the next fiscal year, while maintaining its current basic policy, the Company will focus more on achieving sustainable growth and promoting the long-term interests of shareholders. The Company aims to raise the dividend on equity (DOE) ratio in the medium to long term to enhance the stability of dividends.

The Company will maintain consistent dividend payments in the medium to long term with a target payout ratio of 30% or more, taking into account various factors such as the dividend on equity (DOE) ratio, the business environment and future business development. The Company is committed to returning profits to shareholders and will take active steps to achieve this goal.

We will not change our policy on the purchase of treasury shares. We will purchase them as appropriate on the basis of compressive consideration and judgments regarding the share price, the need to carry out flexible and prompt capital policies, the impact of the purchase of treasury shares on our financial position and other factors.

[Change in the shareholder return policy] (Before change)

The Company's basic policy is to maintain stable dividends, a payout ratio of 30% or more, to enhance the return of profits to shareholders. The dividend is also linked to consolidated business results and comprehensively reflects the need to bolster internal reserves to strengthen the Company's financial position and fund future business operations, among other needs.

The Company's basic policy for dividends of surplus is to pay both an interim dividend and a year-end dividend each year. (After change)

The Company considers shareholder returns to be a crucial aspect of management and acknowledges the significance of capital efficiency. In principle, the Company intends to distribute its profit based on its operating results while maintaining its financial soundness. Its basic policy is to consistently increase the dividend, considering the dividend on equity (DOE) ratio, by achieving sustainable growth. The Company aims to maintain a payout ratio of 30%.

The Company's basic policy for dividends of surplus is to pay both an interim dividend and a year-end dividend each year.

‒ 6 ‒

2. Corporate Group

The Okabe Group (Okabe Co., Ltd. and its associated companies) consists of Okabe Co., Ltd. ("the Company"), 11 subsidiaries (10 of which are consolidated) and 4 affiliated companies. These companies are engaged primarily in the manufacture and sale of construction materials and equipment. The Group is also focusing on expanding operations in other business fields.

The positioning of the Company and its key associated companies and their relationship with the business segments are as follows.

[Construction-related products]

(Temporary building and formwork products)

The Company develops associated construction methods and develops, manufactures and sells products used with these methods. Subsidiary OMM Co., Ltd. manufactures temporary building and formwork products ordered by the Company. Fukuoka Form Tie Co., Ltd. purchases temporary building and formwork products mainly from the Company and sells them in Kyushu.

(Civil engineering products)

The Company develops associated construction methods and develops, manufactures and sells products used with these methods.

(Building structural products)

The Company develops associated construction methods and develops, manufactures and sells products used with these methods. FUJI BOLT Manufacturing Co., Ltd. is engaged in the development, manufacture and marketing of building structural products, and the Company sells products sourced from FUJI BOLT Manufacturing Co., Ltd. PT Fujibolt Indonesia, which is a local manufacturing subsidiary of FUJI BOLT Manufacturing Co., Ltd. in Indonesia, is engaged in the manufacture of building structural products, and FUJI BOLT Manufacturing Co., Ltd. purchases products from PT Fujibolt Indonesia and processes and sells them within the country.

(Building materials)

The Company uses its sales network to sell building materials that are purchased from other companies.

(Building products and materials (overseas)) U.S.

In addition, OCM, Inc. purchases products sold by the Company in Japan and products compatible with local construction methods in and outside the U.S. and sells them mainly in the U.S. OCM Manufacturing LLC is a manufacturing subsidiary of OCM, Inc. Okabe Real Estate Holdings LLC manages commercial real estate, which is necessary for the building materials manufacturing business.

Indonesia

PT. Okabe Hardware Indonesia purchases building materials from other companies and sells them for use on construction sites. PT. Okabe Retail Indonesia purchases building materials from other companies and sells them at stores. PT. FUJIBOLT INDONESIA primarily manufactures and sells building products and materials in Indonesia.

[Automotive products]

U.S subsidiary Okabe Co., Inc. is engaged mainly in the design and sale of automotive bolts and screw nuts in the U.S.

[Other businesses]

KAWAHARA MFG. CO., LTD. manufactures and sells industrial machinery products.

The Company's marine business involves the development, manufacture and sale of marine materials.

PT. Okabe Hardware Indonesia, whose main business is purchasing and selling building products and materials, is operating the tenant leasing business, a non-construction-related products business.

‒ 7 ‒