Announcement of Term Loan Agreement Conclusion for the Construction of Mitsubishi Kakoki's Head Office and Kawasaki Factory

Mitsubishi Kakoki Corporation (Representative: Riichi Tanaka, Location: Kawasaki City, hereinafter referred to as 'the Company') has entered into a syndicated term loan agreement by way of a 'Green Loan' with MUFG Bank, Ltd. as arranger, for the purpose of financing the reorganization of its head office and Kawasaki factory. The agreement was concluded on March 31, 2026. This loan complies with the 'MUFG Bank Green and Sustainability-Linked Finance Framework' (hereinafter referred to as 'the Framework'). The Framework has obtained a third-party opinion from DNV Business Assurance Japan. The Company's reorganization project was evaluated as a project with sufficient expected environmental improvement effects based on the Framework, and as one that has taken into consideration potentially negative environmental and social impacts, and was therefore judged to be eligible for a Green Loan.

Overview of the Term Loan Agreement

Regarding the Reorganization of the Head Office and Kawasaki Factory

The current head office and Kawasaki factory facilities have become aged and required renewal. Furthermore, to achieve the 'Mitsubishi Kakoki Group 2050 Management Vision' that our group aims for, the development of new technologies and products that contribute to a carbon-neutral society is indispensable, necessitating bases for development and manufacturing of new products. Therefore, in August 2024, we decided on a comprehensive re-development of the head office and Kawasaki factory. The construction of the new head office complex, centered around an office and research building that consolidates office and research facility functions, and a factory and laboratory building that serves as the core manufacturing hub, is proceeding with the introduction of the latest energy-saving and energy-generating technologies. We plan to obtain ZEB* Ready certification by September 2026, and are considering obtaining Nearly ZEB in the future. Both buildings are scheduled for completion around July 2027. The demolition and removal of existing facilities and the construction of the new head office, which began in 2024, are being carried out with full consideration for the surrounding environment, ensuring adequate safety measures and countermeasures against noise and vibration. *ZEB: Abbreviation for Net Zero Energy Building, which aims to achieve a net zero balance of annual primary energy consumption while realizing a comfortable indoor environment. It is defined in four stages according to achievement status: ZEB Oriented → ZEB Ready → Nearly ZEB → ZEB.

Coexistence with Nature and Improvement of Employee Engagement

In proceeding with the reorganization of the head office and Kawasaki factory, the perspective of 'coexistence with nature' is indispensable for achieving the 2050 Management Vision. Therefore, we will create an environment where employees can interact with nature even during work hours. By creating a design that allows enjoyment of the external scenery, we will develop an attractive workplace environment that maximizes employee creativity and motivation, enabling good communication in a relaxed space. Furthermore, with the aim of creating a spatial design suitable for diverse future working styles, the internal 'Work Style Reform Promotion Project Team' is conducting various internal surveys and workshops on employee work conditions and satisfaction. Based on the concepts formulated through this activity, we are proceeding with detailed design of office areas and other spaces that foster innovation and collaboration, incorporating the opinions of the employees who will actually work there. End