Toyo Seikan : Summary of Q&A Session of FY2023 Full-Year Financial Results Briefing

Toyo Seikan Group Holdings, Ltd.

Summary of Q&A Session of FY2023 Full-Year Financial Results Briefing

Date:	Wednesday, May 22, 2024
Venue:	Conference room of the head office of Toyo Seikan Group Holdings
Speaker:	Ichio Otsuka, President and Representative Director
	Masakazu Soejima, Director and Senior Executive Officer

Cost pass-through

Q1: What is an outlook for your cost pass-through efforts from FY2024 onward?

A1: To ensure an appropriate level of profitability, we will continue to negotiate with customers for further cost pass-through, particularly for energy cost increases, most of which have not yet been passed on to customers.

Q2: Please explain the mechanism to pass on cost increases to sales prices of aluminum cans.

A2: Nearly 90% of our aluminum can sales is covered by purchase contracts that allow us to link our sales prices to the LME aluminum price. For fiscal 2024, we assume the LME price will be higher than the previous year. We expect that we will be able to pass on most of the aluminum price increase during the year to customers, although there will be some delay until sales price revisions become effective.

New products

Q3: Please explain EcoEnd in more detail.

A3: EcoEnd is a beverage can end with a higher recycled aluminum content that we have co- developed with UACJ Corporation. While conventional can ends contain a larger amount of virgin aluminum, UACJ and we have succeeded in significantly raising the use of recycled aluminum in EcoEnd. Increasing the content of recycled aluminum, whose production emits only around 3% of the CO2 emitted from virgin aluminum production, will contribute to reducing global CO2 emissions. We will work to convince customers that the added value of EcoEnd, if they adopt it for their products, will help reduce scope 3 emissions from their supply chains.

Others

Q4: Please explain the transfer of shares in Bangkok Can Manufacturing (BCM) in more detail.

A4: We transferred 25.1% of our shareholding in BCM to the Boonrawd Group, a major customer of BCM. We consider that inviting the major customer to become a shareholder will help BCM maintain a stable business relationship with the Boonrawd Group into the future.

Disclaimer

This document was prepared solely for information purposes and does not constitute a solicitation for investment in the Company.

Although every effort is made to ensure the accuracy of the information contained herein, the Company does not guarantee the completeness of such information.

The Company is not liable for any loss or damage whatsoever arising from the use of information contained herein.

Future business outlook presented in this document is based on information available as of the date of release of the document and assumptions deemed reasonable. The actual performance may differ from the projection due to various factors, and the projection may be changed without notice.

The information contained herein shall be used at your own discretion and responsibility.

The information contained herein shall not be duplicated, copied or otherwise reproduced in whole or in part without the permission of the Company.