Securities Report - 113th Fiscal Period (2025/04/01 - 2026/03/31)

Toyo Quality One Co., Ltd. Securities Report - 113th Fiscal Period (2025/04/01 - 2026/03/31)

This report is the securities report prepared by Toyo Quality One Co., Ltd. (hereinafter referred to as "the Company") for the 113th fiscal period (April 1, 2025 to March 31, 2026), in accordance with Article 24 of the Financial Instruments and Exchange Act. The Company is listed on the Tokyo Stock Exchange and submits this report to the Financial Services Agency each fiscal year to ensure transparency in its operations for investors, while also making it publicly available.

The Company's core business focuses on the development, manufacturing, and sales of high-quality daily-life-related products. The Company has accumulated extensive technological expertise over many years, particularly in the fields of food packaging materials, hygiene products, and environmentally conscious materials, earning high trust from business partners both domestically and internationally. The Toyo Quality One Group operates production and sales bases not only at multiple locations within Japan but also in Southeast Asia and North America, advancing its global business expansion.

Regarding the business environment for the 113th fiscal period, while continued concerns remain over rising raw material prices and currency fluctuations, increasing interest in ESG management and growing demand for sustainable materials are providing favorable momentum. In response to these market trends, the Company is strategically increasing its R&D investments and accelerating the commercialization of recyclable biomass-based materials. Additionally, through the promotion of digital transformation (DX), the Company is enhancing supply chain efficiency and optimizing inventory management to maintain and strengthen its cost competitiveness.

In terms of financial condition, although a slight decline in the current ratio is observed compared to the previous fiscal year, the equity ratio remains stable at 38.5%, indicating a sound financial foundation. The Company has established a medium- to long-term growth strategy titled "Global Sustainability Strategy 2030," aiming to achieve carbon neutrality in its business operations by 2030. Toward this goal, the Company is progressively installing solar power generation systems across all its facilities and plans to complete 100% renewable energy usage at its major domestic factories by the end of the 2025 fiscal year.

On the personnel front, the Company implemented a refresh of its executive officer system in June 2025, actively promoting young managerial talent. Notably, new leaders have been appointed to the Sustainability Promotion Department and the DX Strategy Office, strengthening specialized expertise within the management core. Furthermore, the Company has rolled out its company-wide "Work-Life Integration Promotion Program" aimed at enhancing employee diversity and job satisfaction, expanding remote work options and reinforcing mental health support initiatives.

Looking ahead, the Company will continue its management philosophy centered on quality and trust, striving to become a corporate entity that contributes to a sustainable society and earns the confidence of stakeholders both domestically and internationally. For further details of this report, a PDF version is available on the "Investor Relations" section of the Company's official website and is recommended for comprehensive review.