Notice of Convocation of the 160th Ordinary General Meeting of Shareholders

To Our Shareholders:

(Code No. 6742)

June 6, 2025 (Start Date of Electronic Provision Measures May 26, 2025)

Ryoji Kunisawa

Representative Director, President

2-29-1 Heian-cho, Tsurumi-ku, Yokohama

Notice is hereby given that the 160th Ordinary General Meeting of Shareholders of Kyosan Electric Manufacturing Co., Ltd. ("Kyosan" or the "Company") will be held as described below.

As the Company is taking electronic provision measures in convening this General Meeting of Shareholders, matters subject to electronic provision measures are posted as the Notice of Convocation of the 160th Ordinary General Meeting of Shareholders on Internet websites.

Please check the documents by accessing them at either the Company's website or the TSE (Tokyo Stock Exchange) website.

In lieu of attending the meeting in person, you may otherwise exercise your voting rights in writing or via the Internet. Please refer to the Reference Documents for the Ordinary General Meeting of Shareholders, and exercise your voting rights by following the instructions on pages 5 to 6 of the Japanese version of this document by 5:00 p.m. Tuesday, June 24, 2025.

1. Date and Time: 10:00 a.m. Wednesday, June 25, 2025
2. Place: Kyosan Conference Room

   2-29-1 Heian-cho, Tsurumi-ku, Yokohama

3. Purposes of the Meeting: Matters to be Reported: 1. Business Report, Consolidated Financial Statements for the 160th Term (from April 1, 2024 to March 31, 2025) and Reports of Audit of the Consolidated Financial Statements by the Accounting Auditors and Audit & Supervisory Board

   2. Report on the Financial Statements for the 160th Term (from April 1, 2024 to March 31, 2025)

   Matters to be Resolved: Proposal No. 1: Proposal No. 2:

   Appropriation of Surplus Election of Seven (7) Directors

   Proposal No. 3: Election of One (1) Substitute Audit & Supervisory Board

   Member

   Proposal No. 4: Introduction of a Performance-Linked Stock Compensation Plan for Directors (Excluding Non-executive Directors) Proposal No. 5: Continuation of the Response Policy to Large-Scale Purchases of Kyosan Shares (Takeover Response Policy) Websites Stating Measures Subject to Electronic Provision Measures

   The Company's website: https://www.kyosan.co.jp/ir/stock02.html The website of the TSE (Tokyo Stock Exchange): https://www2.jpx.co.jp/tseHpFront/JJK020010Action.do?Show=Show

   If using the TSE's website, to view the documents, please conduct a search using the Issue name (company name) field or entering the securities code, and selecting Basic information followed by Documents for public inspection/PR information.

   • If you are attending the meeting, please submit the Voting Rights Exercise Form at the reception desk. To save resources, please bring this "Notice of Convocation" with you.

   • In addition to the Reference Documents for the Ordinary General Meeting of Shareholders, part of the Business Report (Items (1) - (4) of 1. Matters Concerning the Status of the Corporate Group) will be sent to shareholders who have not requested paper copies of the materials.

   • Based on the provisions of laws and regulations and our Articles of Incorporation, the Status of Accounting Auditor, the Company's Systems and Policies, and the Basic Policies Regarding the Company's Control as described in the Business Report, Notes to Consolidated Financial Statements, Non-consolidated Financial Statements, and the Audit Report are not included in the documents to be delivered to shareholders who have requested paper copies of the materials.

   • Each of the documents sent to shareholders forms part of the documents audited by the Audit & Supervisory Board Members and Accounting Auditors when preparing the Audit Report.

   • Should there be any revisions to the matters subject to electronic provision measures, the revised item, the description of the revision, and the item as it was before revision will be posted on the respective websites.

   To Shareholders Requiring Support

   Upon request, the Company will provide assistance with wheelchairs as well as guidance to seats and restrooms, etc. Please feel free to inform staff of your needs. Support for written communication will also be available at the reception desk.

   Proposals and Reference Information Proposal No. 1: Appropriation of Surplus

   The Group's shareholder return policy is as follows.

   • The Group is engaged in businesses of a highly social and public nature, including the Signaling Solutions Business for railways and road traffic, and believes that it is responsible for providing a stable supply of high-quality products. Therefore, the Group will continue its efforts to establish a stable management foundation on a long-term, continuous basis and to boost shareholders' equity.

   • The Group has formulated the three-year Medium-Term Management Plan "KYOSAN Next Step 2028," starting in April 2025. In order to achieve the basic policy of "establishing a globally recognized KYOSAN brand," and to create new value, the Group will work to resolve four materialities.

   • We aim for surplus dividends with a DOE in the mid-2% range, based on a balanced allocation between the investments necessary in each field to address these issues and stable shareholder returns according to medium to long term profit standards.

   Considering the policies described above and the consolidated business results of the fiscal year under review, the Company proposes to pay a year-end dividend of 18 yen per share for the fiscal year ended March 31, 2025, as disclosed in the "Notice Regarding Dividends of Surplus (Dividend Increase)" on May 14, 2025.

   Additionally, this will result in an annual dividend of 23 yen per share when combined with the interim dividend of 5 yen that has already been paid, a dividend increase of 3 yen compared to the previous fiscal year.

   Information on the year-end dividend
   1. Type of dividend assets

      Cash

   2. Appropriation of dividend assets to shareholders and amount of appropriation

      18 yen per share of Kyosan's common stock total amount 1,129,396,248 yen

   3. Surplus dividend effective date

June 26, 2025

The terms of office of all six (6) Directors will expire at the conclusion of this Ordinary General Meeting of Shareholders. Accordingly, the Company proposes to elect seven (7) Directors as shown below.

The number of Directors shall be increased by one (1) Internal Director who will concurrently serve as an Executive Officer, bringing the total number of Directors to seven (7) consisting of three (3) Internal Directors and four (4) Outside Directors, with the majority of the Board of Directors comprising Independent Outside Directors.

Each candidate for Director is decided upon by the Board of Directors based on a report of the Nomination and Remuneration Committee, a voluntary advisory body of the Board of Directors.

Candidates for the Directors (7)

Candidate for reappointment Candidate for outside director

Candidate for independent officer stipulated by the Tokyo Stock Exchange

* The number of Board of Directors' meetings held between April 2024 and March 2025 was sixteen, and the number of Board of Directors' meetings held since Ms. Asako Nagai assumed office as Director was twelve.