Dexerials Corp.TSE: 4980

Integrated Report 2025

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2025

Integrated Report

Dexerials Integrated Report 2025





‌The Dexerials Group Philosophy With sincerity and honesty,

we will face customer issues, the social issues behind them, and all other stakeholders, as we develop products and solutions that contribute to the resolution of social issues.

To facilitate ideal manufacturing for our customers,

we will continue to enhance our technologies and human capital, skillfully combining them to create unprecedented products

and solutions that have value to the world.

Linking these efforts to further technological evolution will power the evolution of society as a whole.

"Empower Evolution." "Integrity" "Value Matters"

With these thoughts in mind, we will continue to move forward.





Dexerials' Purpose

Purpose

Connect People and Technology.

Corporate Philosophy Integrity

Have Integrity and Sincerity

Corporate Vision Value Matters

Unprecedented innovation, unprecedented value.





‌Dexerials Integrated Report 2025 Main Topics

Second Year of Mid-Term Management Plan Navigating an Era of Uncertainty

P. 12 Message from the President

Steps to Achieving Evolution-Staying True to Our Purpose in Uncertain Times

How will Dexerials sustain growth and navigate forward as geopolitical risks make the business environment uncertain? President Yoshihisa Shinya shares his vision for the Company's path ahead.

Driving Global Expansion in the Automotive Business with Proprietary Technologies and Business Model

P. 22 Special Feature 1

Evolving the business model proven in the consumer IT industry and expanding into the growth domain of the automotive industry to create new value on a global scale.

Business Expansion in Growth Domains: Leveraging Our Technologies and Business Model for the Automotive Industry

Fostering Dexerials' Value Through Stock Grant Plan (J-ESOP)

P. 40 Special Feature 2

Introducing the changes in mindset that emerged as next-generation employees explored what it means to enhance corporate value as shareholders.

J-ESOP-Creating Value for Employee Shareholders

Message on the Publication of the Dexerials Integrated Report 2025

The Dexerials Group aspires to be a driving force behind the advancement of digital technology, guided by our corporate Purpose, "Empower Evolution. Connect People and Technology." Under our Mid-Term Management Plan 2028 "Achieving Evolution," we are expanding our business portfolio and building a resilient management foundation. At the same time, we are strengthening initiatives centered on our unique business model and focusing on technology and human capital as key materiality.

The Dexerials Integrated Report 2025 presents our approach to value creation and its implementation from both financial and non-financial perspectives. Through this report, we aim to share our ongoing efforts to achieve sustainable corporate growth and address social issues to foster a deeper mutual understanding with our stakeholders.

New Steps Toward Growth-A New Board Structure as of June 2025

P. 46 Special Feature 3

Dexerials appointed three new directors to ensure continued sustainable growth and enhance corporate value. Each will draw on their own perspectives and expertise, and engage in open and constructive discussions as they fulfill their responsibilities.



Strengthening Corporate Governance to Achieve Sustainable Growth and Enhance Corporate Value

2 Dexerials Integrated Report 2025

‌Contents

Introduction

Chapter 03 Path to Steady Evolution

2 Main Topics

  1. Business Segments

  2. At a Glance (FY2024)

  3. Where You Can Find Dexerials

8 The History of Dexerials Value Creation

- Giving Concrete Form to Society's Changes by Embracing Technological Advances

10 Advancing a Sustainable Future Through Light-Connecting Technologies

63 Sustainability Management

64 Approach to ESG Key Issues

Governance

66 Corporate Governance

70 Risk Management

72 Strengthening Information Security

73 Compliance

74 Supply Chain Management (CSR Procurement)

75 BCP Initiatives

12 Message from the President

Chapter 01 Strategy for Sustainable Growth

18 The Value Creation Process for Shaping the Future Together with Customers

20 A Business Model Born from Materiality

22 Special Feature 1: Business Expansion in Growth Domains: Leveraging Our Technologies and Business Model for the Automotive Industry

26 Message from the Technology Strategy Head

28 Innovation

30 Intellectual Property Strategy

32 Message from the Human Resources Division Head

34 Human Capital Strategies

40 Special Feature 2: J-ESOP-Creating Value for Employee Shareholders

44 Communication with Shareholders and Investors

Chapter 02 Setting a Strategic Course Toward Evolution

Environmental

Non-financial

Financial

  1. Environmental Initiatives

  2. Resource Recycling

  3. Climate Change

  1. Pollution Control / Water Resource Conservation

  2. Chemical Substance Management

    Social

  3. Respect for Human Rights

  4. Diversity / Diverse Work Styles

  1. Health and Productivity Management

  2. Occupational Health and Safety

  3. Product Quality

    Data Section

  4. Financial Data

  5. Non-Financial Data

  6. External Evaluation and Inclusion in Indexes

    46 Special Feature 3: Strengthening Corporate Governance to Achieve Sustainable Growth and Enhance Corporate Value

    ・Skills Matrix of the Board of Directors

    ・Messages from the Outside Directors

    ・Directors and Executive Officers

    52 Message from the Corporate Strategy Division Head

    55 Business Feasibility Evaluation

    56 Mid-Term Management Plan

    58 Accelerating DX to Drive Growth

    60 Message from the Corporate Risk Management Head

  7. Corporate Information / Stock Information

  8. Third-Party Opinion

Details are available on our website.

Related information is available in this integrated report.

T Related information is available on TECH TIMES, our technical information media for manufacturing engineers operated by Dexerials.



Dexerials Integrated Report 2025 3

Editorial Policy

This report is published to help shareholders, investors, and all stakeholders understand Dexerials' initiatives aimed at creating both economic and social value, contributing to a more prosperous and efficient society, and enhancing medium- to long-term corporate value. This year's report focuses on two key themes-our Purpose and business model, and human capital-and features insights shared by both management and employees. We welcome your candid feedback to help us improve future reports.

Communication Map

Applicable Scope and Term

Applicable Scope: This report covers Dexerials Corporation and its subsidiaries in Japan and globally.

Applicable Term: This report is based in principle upon the results of activities in fiscal 2024 (April 1, 2024-March 31, 2025); however, some reports and data may refer to past or current information.

Reference Guidelines

The International Integrated Reporting Framework published by the International Integrated Reporting Council (IIRC) / Guidance for Collaborative Value Creation published by the Ministry of Economy, Trade and Industry / GRI "GRI Standards" / ISO26000 / Environmental Reporting Guidelines (Fiscal Year 2018 Version) published by the Ministry of the Environment

Disclaimer on Forward-Looking Statements

The forward-looking statements contained in this report are based on information currently available to the Company and certain assumptions that are believed to be reasonable, and no responsibility is borne as to the accuracy or completeness of the forward-looking statements. Actual results may differ from the results anticipated in these forward-looking statements due to a variety of factors, and the Company gives no assurance that such statements will prove to be correct.

Story

Integrated Report (this publication)

Notice of General Meeting of Shareholders

Data

Annual Securities Report /Quarterly Financial Results / Website

(Investor Relations)

Website https://www.dexerials.jp/en/

ESG Data / Corporate Governance Report