Tamura : Corporate Structural Reforms

‌Security Code: 6768‌

Prime Market, Tokyo Stock Exchange

TAMURA CORPORATION

Promotion of Structural Reforms

-Enhancing Corporate Value through Organizational

Strengthening and Building the Foundation for Growth-

February 6, 2026

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any

discrepancy between this translated document and the original Japanese document, the latter shall prevail.

© TAMURA CORPORATION All Rights Reserved

‌Agenda

1. Today's Key Messages

2. Current Situation & Key Issues Overview of the 14th Medium-term Management Plan

3. Progress of Structural Reform Initiatives

4. Building the Foundation for Growth

5. Summary

Mitsutaka Nakamura

Representative Director, President, COO

• ‌Expenses will temporarily increase in FY2025, with a shift to the improvement phase from the second half of FY 2026.

2025 ~

2H 2026

2027

Promoting Structural Reform

Accelerated Improving capital

efficiency and profitability;

• Review and reallocation of

  production sites

• Selection and focus of

  Hefei Factory divestiture Automotive manufacturing transfer:

  China module business reorganization: Consolidation from Shenzhen to Suzhou

From China to Japan

NEW

Early shift to

the improvement phase

Cash Generation

businesses and products

• Review of personnel allocation

  Partial transfer of KOHA

  Electronic Chemicals site reorganization:

  From Iruma to Sayama

  Special outplacement support program N

  ew

  ROE 8%+

  Operating margin 7％+

  Building the Foundation for Growth

  DOE target of 3％

  P/B ratio (PBR)

  New

  Expand adoption of PICC - Photo imageable cover-lay coat,

  Next-generation communications electronic chemical - to broader applications

  Establishment of a domestic module production line

• Growth-market strategy

  Expansion of large transformers and reactors for AI data centers

  ≧1.0

  Advanced Power Electronics R&D: Development of new functional materials and passive components for the SiC/Gan era

• Next-generation technology development

• Enhancement of

  Dividend forecast

  revised upward

  New

  Reduced number of directors / Transitioned to monitoring board structure

  shareholder returns

  Share buybacks

• Strengthening the organizational foundation

Establishment of a new site in Europe

New

Targeting DOE of 3% after improving its financial structure

Reinvestment for

further growth

Acceleration of Improvement Initiatives to Ensure Achievement of the Medium-term Management Plan

• Acceleration of certain structural reform initiatives to ensure achievement of the Medium-term Management Plan's final-year targets (FY2027)

1. ‌Current Status and Key Challenges

   Overview of the 14th Medium-term Management Plan

   
   
   ‌Challenges in Business Performance and Operations

   • Recognizing structural challenges in the external environment and in business, finance and organization, reform is accelerated under the 14th Medium-term Management Plan

     Business Environment and Structural Challenges

     Acceleration of Structural Reform

     External

     Rising geopolitical and supply-chain risks

     Shifts in industry structure (proliferation of generative AI, electrification in the automotive industry, etc.)

     Intensifying international competition; talent shortages

     Financial targets missed under the previous Medium-term Management Plan

     (Operating profit, operating margin, ROE)

     Persistently low market valuation

     Room for improvement in share liquidity

     
     
     

     Internal

     Business Structure

     
     
     Finance Organization
     
     

     China-centric production footprint

     Delays in launching new products and businesses

     Delays in improving capital efficiency and profitability

     Persistently high inventory levels; lower inventory turnover

     Response to heightened governance and compliance requirements

     Imbalance in workforce composition

     Acceleration of structural reforms under the 14th Medium-term Management Plan toward sustainable growth

     The 14th Medium-term Management Plan

     
     
     
     
     ‌Overview of the 14th Medium-term Management Plan (April 2025 - March 2028)

   • Targeting a P/B ratio (PBR) of 1.0x or higher through integrated business, sustainability, and financial strategies

     
     
     

     ～

     2024 2025 2026 2027 2030

     ROE

     ≧8%

     Business

     • Business portfolio review

     • Building a foundation for growth

     • Structural improvement

Vision

Profitability

Improvement

Financial

ROIC

Improvement

• Cash allocation for growth

• Enhanced shareholder returns

ROE 4.6%

ROE

≧12%

Improved

Shareholder Returns

PBR 0.65

PBR

≧1

Cash Generation

Improvement

PBR

≧1

Sustainability

• Governance & Compliance

• Human Resource

• Environment

OP% 4.6% OP% ≧7% OP% ≧10%

‌Cash Allocation (3-Year Total)

• Stronger earnings base via structural improvement and value-accretive investments; cash generation above the prior Medium-term Plan level

• Higher corporate value through investments in focus areas and stronger shareholder returns.

  
  
  

  Sources of Cash Uses of Cash

  Enhancing

  Cash Generation

  Strengthening the earnings base through structural reforms and growth investments

  Business portfolio optimization

  Inventory reduction, etc.

  14th Mid-term

  Improve

  Cash Flow from Operating Activities

  Previous Level

  Reduction of asset, etc.

  Structural

  Improvement

  Growth Investments JPY 6-9bn

  Shareholder

  Returns JPY 6bn

  Fundamental Investments JPY 10-12bn

  Improvement of capital

  efficiency and profitability

  Review of business location strategy Optimizing inventory levels

  Review of low-profit businesses and products

  Focus on Key Markets & Products

  Strengthening R&D

  Strategic investments (production

  enhancement, M&A, etc.)

  Strengthening shareholder returns

  Continuous and stable dividends with a DOE target of 3%

  Flexible share buybacks

  
  
  

  1. ‌Progress of Structural Reform Initiatives

     
     
     

     • ‌Expenses will temporarily increase in FY2025, with a shift to the improvement phase from the second half of FY 2026.

       
       
       

       2025 ~

       2H 2026

       2027

       Promoting Structural Reform

       Accelerated Improving capital

       efficiency and profitability;

       • Review and reallocation of

         production sites

       • Selection and focus of

         Hefei Factory divestiture Automotive manufacturing transfer:

         China module business reorganization: Consolidation from Shenzhen to Suzhou

From China to Japan

NEW

Early shift to

the improvement phase

Cash generation

businesses ad products

• Review of personnel allocation

Partial transfer of KOHA

Electronic Chemicals site reorganization:

From Iruma to Sayama

Special outplacement support program N

ew

Building the Foundation for Growth

⚫ Growth-market strategy Expansion of large transformers and reactors for AI data centers

Establishment of a domestic Establishment of a new site

⚫ Next-generation module production line in Europe New

technology development

Advanced Power Electronics R&D: Development of new functional materials and passive components for the SiC/Gan era

⚫ Enhancement of Expand adoption of PICC - Photo imageable cover-lay coat,

shareholder returns New Next-generation communications electronic chemical - to broader applications

⚫ Strengthening the Share buybacks Dividend forecast New

revised upward Targeting DOE of 3% after improving its financial structure

Objectives

Optimize fixed-cost Improve ROIC

ROE≧8%

Operating margin≧7％ DOE target of 3％ PBR≧1.0

organizational foundation

Reduced number of directors / Transitioned to monitoring board structure

Revitalize the organization

Reinvestment for further growth

Acceleration of Improvement Initiatives to Ensure Achievement of the Medium-term Management Plan

• Acceleration of certain structural reform initiatives to ensure achievement of the Medium-term Management Plan's final-year targets (FY2027)

‌Progress on Structural Improvement ①：Restructuring of China Sites

• Promotion of the production-site consolidation in China and functional reallocation; aiming to build a more efficient and stable supply network

  Challenges	Recent Initiatives Objectives and Outcomes
  China-centric production footprint ・Heightened geopolitical uncertainty ・Rising material and rising labor costs ・Profitability pressure from deteriorating efficiency and intensifying competition ・BCP measures	Restructuring and streamlining of Toward a ~30% reduction China production sites in sites in China ！• Production optimization via transfers Optimization of within China and to Japan consolidated headcount and inventory China regionally balanced supply framework

  • Transfer of equity interest in Hefei Improvement in asset and Ecriee-Tamura Electric CO., LTD capital efficiency

  • Assessment of production outside Establishment of a

  
  
  ‌Production Optimization via Transfers within China to Japan

• Stepwise transfer of production within China and to Japan to improve efficiency and strengthen competitiveness

  Strategic Shift

  Promotion of Production Restructuring

  • Key Markets: Clean-energy related markets

    Power Infrastructure, Heavy Industry, Next-generation Communications, Mobility

    Key Area: Europe and the Americas

  • Concentrated allocation of resources to focus areas; efficiency and optimization in existing areas as the earnings base

    External Environment

    Heightened geopolitical uncertainty

    ⇒Evolving environment around global

    supply-chain risks

    Transfer of power-supply products from Tamura Electronics (Shenzhen) to Tamura Electronics (Suzhou)

    ・Stepwise consolidation of consumer power-supply production in

    Suzhou to enhance efficiency

    ・Upon completion, headcount reallocation and inventory reduction at Shenzhen in FY2025 Q3

    ⇒Strengthened price competitiveness with domestic-China customers as the main target

    Transfer of automotive reactors from Tamura Automotive Electronics (Foshan) to Wakayanagi Tamura

    ・The primary application of automotive reactors is HEVs

    ⇔ EV shift accelerating in the China market

    *See slide 13 for details

    
    
    ‌Progress on Structural Improvement ②: Domestic Framework Alignment

• Promotion of domestic alignment of business structure and production framework, with a review of personnel allocation, to improve the profit structure

  Challenges	Recent Initiatives Objectives and Outcomes
  Domestic Structural Improvement ・Selection and focus of businesses and products ・Improvement in production ・Review of personnel allocation	Domestic Framework Alignment Improvement in businesses ！• Construction of a new manufacturing Fixed-cost reduction building in Sayama; transfer of the solder- powder manufacturing process from Iruma SG&A ratio improvement ！• Strengthening the domestic production Inventory reduction framework for automotive electronic components (Wakayanagi Tamura)

  • Partial transfer of subsidiary KOHA's Profit Structure

  • Building an organizational structure for sustainable growth (implementation of special outplacement support program)

  
  
  ‌Strengthening the Domestic Production Framework for Automotive Electronic Components

• Consolidation of automotive reactor production in Japan; improvement in production efficiency and profitability, with stronger linkage with engineering

• Expansion of supply of higher-value-added products to Japan, the U.S., and ASEAN

Shifts in the Automotive Market

Strategy for Automotive Reactors

Expected Effects

• HEV rebound in certain regions amid the global electrification trend

• Supply-chai reviews accelerated across companies amid heightened geopolitical risks

Areas	Trend of automotive market
China	Rapid EV expansion; intensifying competition
Europe The U.S. Japan	EV shift amid subsidy trends and the interest-rate environment
ASEAN	Pace varies by country

Strengthening the domestic

production framework

Transfer of automotive reactor production from China to Wakayanagi; capacity ramp-up for the product at Wakayanagi

FY2027 production volume of Wakayanagi

2.5x expected in FY2025

Wakayanagi Tamura Corporation

Differentiation through technology development

Provision of higher-value-added products using in-house developed materials

• Improved profitability

  Efficiency gains from production and sales of higher-value added products

• Expanded supply to key areas Deployment to Japan, the U.S., and ASEAN where HEV growth is expected

  
  
  
  
  
  
  ‌Building an Organizational Structure for Sustainable Growth

  • Initiatives toward optimizing the organization and workforce composition to enable structural improvement and sustainable growth

  • New special outplacement support program; review of workforce composition with an emphasis on organizational revitalization and succession to the next generation

    Initiatives to Optimize the Organization and Workforce Composition

    Expected Effects

• Planned development and appointment of next-generation talent

• Strengthening recruitment of early-career and mid-career talent

• Operational efficiency and productivity gains through DX

  Newly implemented

• Special outplacement support program

  1. Organizational revitalization Providing new opportunities for employees & supporting career development and opportunities inside and outside the company

  2. Succession to the next generation With the current demographics, employees aged 50+ are expected to account for around 60% by 2030; therefore, deliberate promotion of organizational renewal

  Special Outplacement Support Program
  Eligible companies	Tamura Corporation and KOHA
  Qualifications of Applicants	Regular and senior employees with at least 3 years of service and aged 55 or older as of March 31, 2026
  Number of Applicants	Approximately 100
  Application Period	February 7 to February27, 2026
  Date of Retirement	End of March 2026

  * Special retirement allowances and outplacement support costs are expected to be recognized in the consolidated financial results for the fiscal year ending March 2026

  © TAMURA CORPORATION All Rights Reserved 14

  
  
  

  1. ‌Building the Foundation for Growth

     
     
     

     • ‌Expenses will temporarily increase in FY2025, with a shift to the improvement phase from the second half of FY 2026.

       Establishment of a domestic module production line

2025 ~ 2H 2026 2027

Promoting Structural Reform Accelerated

⚫ Review and reallocation of Hefei Factory divestiture Automotive manufacturing transfer: NEW

From Foshan to Wakayanagi

production sites China module business reorganization: Early shift to

⚫ Selection and focus of Consolidation from Shenzhen to Suzhou the improvement phase

businesses ad products Partial transfer of KOHA Electronic Chemicals site reorganization:

From Iruma to Sayama

⚫ Review of personnel

allocation Special outplacement support program New

Improving capital

Building the Foundation for Growth

Objectives

Next-generation revenue sources

PBR above 1x

Stronger organization

efficiency and profitability;

cash generation

ROE≧8%

Operating margin≧7％ DOE target of 3％

• Growth-market strategy

  Expansion of large transformers and reactors for AI data centers

  Establishment of a new site

  PBR≧1.0

• Next-generation technology development

• Enhancement of

  shareholder returns

  Expand adoption of PICC - Photo imageable cover-lay coat,

  Next-generation communications electronic chemical - to broader applications

  Reinvestment

  for further growth

  Dividend forecast

  revised upward

  New

  Targeting DOE of 3% after improving its financial structure

  Share buybacks

New

Advanced Power Electronics R&D: Development of new functional materials and passive components for the SiC/Gan era

• Strengthening the organizational foundation

in Europe

New

Reduced number of directors / Transitioned to monitoring board structure

Acceleration of Improvement Initiatives to Ensure Achievement of the Medium-term Management Plan

• Acceleration of certain structural reform initiatives to ensure achievement of the Medium-term Management Plan's final-year targets (FY2027)

‌Foundation for Growth ① : Sales Expansion in Key Growth Areas

• Capturing demand in Europe & the U.S. and clean-energy markets; strengthening production and sales frameworks to drive sales expansion

  Challenges

  Recent Initiatives Objectives and Outcomes

  Capturing growth demand ・Rising demand ・Building production and supply setups in growth areas ・Stronger presence in target markets ・Developing global talent

  Strengthening production and sales Sales expansion frameworks in key growth areas in key growth areas ・Mexico factory: capacity increase for large • Higher sales mix in transformers and reactors to capture robust demand in North American data centers Europe & the U.S. ・Establishment of a domestic production • Sales expansion in framework for module products expansion to Europe & the U.S.; enhanced total-solution proposals clean-energy markets ！・Europe / clean-energy market expansion strategy (new office in Germany)

  
  
  ‌Europe Clean-energy Market Expansion Strategy

• Capturing growth opportunities in Europe's clean-energy market to drive medium- to long-term profit expansion

  Market Opportunities and Our Strengths

  Expansion Strategy

  Expected Outcomes

  • Status in Europe:

    Increasing investment expected in clean-energy markets

    Rising electricity demand Aging grid requiring renewal

  • Our Strengths:

    Track record with European renewable-energy and power-infrastructure customers Established position in large transformers and reactors

    Core technologies that define

    Differentiation through total-solution ✓ Accelerated sales growth in

    the European market

    Large Transformers & Reactors

    Power Semiconductor

    Gate driver module

    Current sensor

    
    
    

    Capturing increasing adoption of key components in an expanding market

    • Strengthening presence in the European market and accelerating next-generation product development,

  with the new office in Germany to

  serve as a hub

  ・Expansion of business opportunities with European companies

  ・Acquisition of development and

  power-electronics system performance

  Large transformers and reactors Gate driver modules

  Current sensors

  New office in Germany scheduled to open in early FY2026

  Strengthening customer touchpoints and

  collection of technical / development information

  technical information to accelerate

  advanced product development

  
  
  ‌Foundation for Growth ②: Product Development for Next-generation Power Semiconductors and Next-generation Communication

• Promoting next-generation technology development and business expansion in growth domains to create new medium- to long-term profit drivers

  Challenges	Recent Initiatives Objectives and Outcomes
  Creation of new profit sources ・Cross-departmental collaboration ・Development of next-generation technologies	Product development and market Establishing expansion in growth domains next-generation Electronics R&D organization: growth domains Creating new value in the power-electronics market through research on components, materials, devices, and modules Adopted for 2024 AI servers; planned deployment for AI base stations, wearables, and SDV applications

  • Establishment of Advanced Power profit sources in

  • Expansion of next-generation communication products; PICC - Photo Imageable Coverlay Coat

  
  
  ‌Foundation for Growth ③: Enhanced Shareholder Returns and Disclosure

• Enhancing shareholder returns and information disclosure, in addition to improving capital efficiency, to sustainably increase corporate value

  Challenges	Recent Initiatives Objectives and Outcomes
  PBR below 1x ・Low market valuation ・Need for improved stock liquidity	Strengthening shareholder returns and Achieving DOE of information disclosure 3% and enhancing Acquiring up to JPY1bn worth of outstanding shares in FY2025 FY2025 dividend forecast revised from JPY10 to JPY13 per share Enhancing and recognizing disclosed information; improving user accessibility

  • Flexible share repurchases corporate value

  • Upward revision to the dividend forecast New

  • Corporate website renewal

  
  
  ‌Foundation for Growth ➃: Reform of Organizational Structure and Corporate Culture

• Strengthening organizational foundations by revising the organizational structure and enhancing governance, while increasing organizational agility and engagement to support sustainable growth

Challenges

Recent Initiatives Objectives and Outcomes

Strengthening organizational foundation ・Response to governance and compliance requirements ・Improving employee engagement

Reform of organizational structure and An organization that corporate culture continues to evolve Reduction in the number of directors and Modernization of the executive delegation of authority to the Executive structure Committee Penetration of psychological Establishment of a new Group Governance safety (higher engagement score) Division Transitioned to monitoring board Global implementation of town hall meetings led structure by management Clarification and communication Introduction of a global internal reporting system of top-management commitment

1. ‌Summary

‌Summary

• Advancing structural reforms and building the foundation for growth to improve capital efficiency, enhance

  profitability, and generate cash

• Executing key measures ahead of the original plan to ensure achievement of the final-year targets of the medium-term management plan

• Although costs will temporarily increase in FY2025, a transition to the improvement phase is expected from

  the second half of FY2026

• Structural reform - including realignment of business sites through the reorganization of China and domestic operations - for fixed-cost reduction and ROIC improvement

• Building the Foundation for Growth:

  • Enhancing production and sales structures in clean-energy related markets to drive revenue and profit growth

  • Advancing R&D for next-generation products that will serve as future pillars of the business

  • Enhancing shareholder returns and information disclosure, with the goal of being valued at more than 1x PBR

  • Strengthening corporate governance and improving employee satisfaction to reinforce organizational foundation

‌Cautionary Note Regarding Forward Looking Statements

The forward-looking statements, including the financial results forecast shown in this document, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance.

Corporate Communications TAMURA CORPORATION

© TAMURA CORPORATION All Rights Reserved

© TAMURA CORPORATION All Rights Reserved