JEitfW SATO HOLDINGS CORPORATION www.sato-global.com We give every 'thing' its own ID so it connects with the world v Integrated Report 2023 SATO HOLDINGS CORPORATION

Introduction Section Messages 02 Evolutions in tagging 04 Our business at a glance 04 Products, services, revenue model and 04 focal markets Working across our value chain to 06 support supply chains for the circular economy ' B /I “ O * ■ 3f I. 12 From the President and Group CEO Hiroyuki Konuma Conceived by founder Yo Sato in 1969, our corporate motto reflects our belief that individuals and corporations equally bear the mission to serve society through self-improvement. It also expresses our aspiration to drive creativity in terms of developing innovative products and services, inventing new...

Section Introduction Section Messages Section Company data SATO changes with the times, always reimagining our role as tagging experts. Over our history we have addressed challenges of customers and society, developing products and solutions for accuracy, laborand resource-savings, safety and reassurance, sustainability and emotional connections. Change in needs of society Labor-saving machines Supporting the distribution of goods Collecting and utilizing data on-site Integration to digitize the analog Cocreating a sustainable future with stakeholders Wood was typically used for packaging large...

Section Introduction Section Messages Section Company data Our business at a glance Products, services, revenue model and focal markets We start on site, giving every “thing” its own identity and connecting it to the world. Our product lineup sits at the core of our solutions which include third-party technologies, products and services to best meet our customers’ on-site needs. Sales breakdown by product (FY 2022) Product lineup Printers Our product line of industrial, desktop, mobile and stand-alone printers and print (& apply) engines is designed for a wide range of operational scenarios....

Section Introduction Section Messages Section Company data Working across our value chain to support supply chains for the circular economy Our value chain Voice We have an end-to-end value chain whereby we develop/design, produce, distribute, sell and service our products globally on our own while collaborating with external partners when necessary. This allows us to maneuver quickly and flexibly to respond to new customer needs and business requirements. We leverage this value chain to deliver tagging solutions that integrate our flagship products including printers, consumables and software....

Section Introduction Section Messages Section Company data Learn more about how our solutions are being used by customers in various markets and industries. Supporting supply chains for the circular economy We utilize tagging solutions that are powered by our in-house value chain to serve customers in five key priority markets: retail, manufacturing, food, logistics and health care. By building on our diverse customer base and tagging expertise we have gained from solving pain points on site, we are expanding our offerings to also include supply chain and circular solutions spanning multiple...

Section Introduction Section Messages Company data Financial and non-financial highlights These graphs show key indicators pertaining to SATO Group’s performance over the last five years. Financial Sales & operating income Return on invested capital Engagement with investors Sales (left axis)   Three-year retention rate for new graduate hires & average length of service (Japan) 16.2 (No. of years) (%) 15.9 15.6 Operating income (right axis) Three-year retention rate for new graduate hires (left axis) Average length of service (right axis) Consolidated figures for FY 2022 were the highest ever...

Section Introduction Section Messages Section Company data From the President and Group CEO Build energized teams and spur our business to new growth among pharmaceutical and other industries helped drive minimizing layers of authority and decision-making in all business fields and stages to empower our workforce in Our customer base is the most important aspect of our achieving commitments with agility. No matter how our business. Our Vision only reinforces this notion as it tells business and organization grow, or how demanding our us to “be the customer’s most trusted partner for mutual challenges...

Our value-creation story Company data From the President and Group CEO Tagging for Sustainability We give every 'thing' its own ID so it connects with the world Supply chains* Circular economy Individual worksites* * Those of/across production, distribution and sale Because every customer in diverse industries, markets and countries/regions operates differently and faces different pain points, a single tagging solution for sustainability may not work for everyone. To provide optimal solutions, it's important that we continue to practice genbaryoku to gain a deep understanding of customer worksites...

From the President and Group CEO group businesses from a medium- to long-term perspective and to concentrate on allocating resources optimally and managing our business portfolio. I hope to speed up and optimize our business management and operations by assigning clear roles and responsibilities and increasingly delegating decision-making to our two vice presidents. Hayato Shindo, who has long been stationed abroad to spread the koto-uri approach to our global companies will oversee our global business, while Yoshinori Sasahara, with his proven record leading sales, production and RFID departments...

Section Introduction Section Messages Section Company data What brought SATO and Nakadai the Kyoto Protocol. In response, we shifted to provide comprehensive recycling services in 2000 and are now in the remarketing business of selling reprocessed products Konuma   We met Nakadai just as we were exploring or materials to markets that need them to bridge the new tagging-based businesses to contribute to the circular use and disposal stages. At our main intermediate waste economy via an in-house project. treatment plant in Maebashi, we not only sort and This project we call “Our Way to Our 100th...