Medium-Term Management Plan for FY 2022 to 2024

Long-Term Vision

Business portfolio

1. Achieve new growth by strengthening our business foundations and original technologies
- ■ Return to a growth path
  - ・Concentrate managerial resources to the businesses to be grown in order to accelerate establishment of profitable business models and business expansion to growth markets
  - ・In the chemicals business, harvest the fruits of previous investments and continue further investment for the future
  - ・In the glass business, complete the structural reform and evolve toward profitable business
  - ・In other business, further increase earning capability and maximize free cash flow
- ■ Continue strengthening R&D to ensure future growth
- ■ Provide stakeholders with reassurance and reliability by increasing all employees' quality awareness
2. Maintain a healthy financial base
- ■ Distribute cash flows based on a well-balanced consideration of shareholder returns, investments, and financial discipline
3. Contribute to the global environment
- ■ Reduce greenhouse gas emissions
- ■ Provide products and technologies that contribute to reducing environmental burden

Aim for achievement of 8% ROE

Indicator		FY 2024 Target
Major item	Operating Profit (100 million yen)	140
Major item	Operating Profit Ratio	8%
Financial indicator	ROE	8%
Shareholder returns	Total Return Ratio	At least 30%
Shareholder returns	Dividend on Equity (DOE)	2.4%

Seek a capital structure focusing on optimization of investment and funding with the aim of maximization of enterprise value

Fund-ing	Stably and systematically raise funds through a combination of appropriate methods, taking into account the balance between funding cost and continuity (risk)
Management (Investment)	Inject capital to selected sources generating profits exceeding funding cost and cash flow exceeding invested capital
Distribution	Distribute generated cash based on a well-balanced consideration of shareholder returns, investments and financial discipline

Total Return Ratio: At least 30%
DOE (Dividend on Equity Ratio): 2.4%
Acquisition of treasury shares
- ・Fundamentally based on the dividend criterion DOE and the dividend amount based on total shareholder return ratio and adjusted as needed
- ・Allocate about 50% of funds raised by sales of shares in the FY 2022 plan to acquisition of treasury shares

Chemicals
- ・Invest in commercialization of priority research areas
  (power semiconductor materials: From research to mass production facility)
- ・Electronic materials: Construct new product facilities and increase capacity
- ・Energy materials: Secure the ability to purchase raw materials (invest in supply chain)
  Expand manufacturing bases
Glass
- ・ Invest mainly in maintenance and renewal within operating cash flow
  (Keep free cash flow positive)

Focus areas：Electronic materials, energy materials, and priority areas of corporate research(*)
(*) Corporate research refers to the long-term research exploring for new areas in foundation research.
Expansion into unprecedented areas with our core technologies + open innovation, and sustainability-conscious
Aggressively inject R&D resources toward solution proposition for customer needs (such as potential needs, performance improvement and environmental burden reduction)
Strengthen functional materials business by improving application development technologies
(performance assessment and data science) (expansion of applications of our original compounds)

Intellectual property department plays the role of creating and using intellectual property rights and respecting the intellectual property rights of other companies.
Intellectual property department contributes to present and future profits of the Company through intellectual property rights in cooperation with business and research departments.