Announcement of New Mid-Term Management Plan “SINFONIA NEXT DREAM“

May 13, 2025

Company name: SINFONIA TECHNOLOGY CO., LTD.

Name of representative: Shinichi Hirano, President

(Securities code: 6507; TSE Prime Market)

Inquiries: Yasuhiro Tanimoto, Administrative & Personnel Department, General Affairs Secretary Group Leader

(Telephone: +81-3-5473-1800)

SINFONIA TECHNOLOGY CO., LTD. is pleased to announce the three-year new mid-term management plan (FY2025 ~ FY2027).

1. Name of the Plan: "SINFONIA NEXT DREAM"
2. Basic Policy of "SINFONIA NEXT DREAM"

   We will promote business expansion based on the fundamental business model of Sinfonia Technology, which is "Technology-Oriented" (enhancing customer satisfaction through technological development and responsiveness).

   We will drive business expansion by expanding our business territory in the semiconductor-related market, which is expected to have sustained demand, and by increasing the capacity of our aerospace business in line with defense capability enhancement plans. By strengthening our core technologies, "Motor/Motor Drive and Power Electronics," we will transform our product composition and business portfolio.

   1. Focus on Semiconductor and Aerospace Fields

      The semiconductor market, essential for all electronic products, is expected to continue evolving and expanding. We will leverage our strength in precision transport technology to broaden the business scope of our Clean Transport System and Motion Equipment segments. In the aerospace business, which is benefiting from the strengthening of defense capabilities and the promotion of space industry growth, we will double our capacity and expand the scope of our technologies to increase business scale.

   2. Business Expansion through Strengthening Technological Development and Responsiveness

      Intending to further enhance customer satisfaction through the technological development and responsiveness (Technology-Oriented) of our business model, we will significantly increase the number of engineers, expand educational programs, and promote collaboration with external parties, including M&A, to accelerate development and expand the scope of our technologies.

   3. Active Investment and Operational Efficiency for Business Expansion

      To address the expansion of our business scale and the social issue of labor shortages, we will significantly increase capacity and invest in automation and digitalization. Additionally, to strengthen our technological development framework, we will establish technology development centers and build a foundation for sustainable corporate growth.

   4. Organizational and Cultural Reform (Continuing from the Previous Mid-Term Plan)

      To transform into a company that supports people who can and will take on challenges for the growth of both the company and individuals, we will invest in human capitals by enhancing recruitment, education, and evaluation systems, and implement organizational reforms that can flexibly respond to the business environment with a view to mid- to long-term growth.

3. Targets of "SINFONIA NEXT DREAM"
   1. Financial Targets

      			FY 2024 Results
      Net Sales			¥119.2 bn
      Operating	Profit	Margin	13.2%
      R	O	E	15.7%

      FY 2027 Targets

      ¥160 bn

      14%

      15%

   2. Basic policy for shareholder return

      Assuming stable dividends, we will pay dividends with a payout ratio of 30% as a target.

   3. Cash Allocation (Cumulative for FY25-FY27)

From fiscal year 2025 to 2027, we will use ¥62 bn, sourced from operating cash flow and asset compression/effective utilization (including reduction of policy-holding stocks), for expansion investments of ¥32 bn towards 2030, and renewal and automation investments, etc., of ¥18 bn to ensure operational efficiency and stability. The amount of shareholder return is assumed to be ¥12 bn.