Midterm Plan（FY2018 - FY2020）

The Central Glass Group has formulated a new three-year plan that covers the period from fiscal 2018 through fiscal 2020.

During this three-year period:

We will emphasize the operating profit ratio to show efficiency as a key performance indicator with the aim of restoring operating profit, which reflects the earnings power of our core businesses.
We will target an ROE of 6% based on our profit target, but this is just a milestone on the way to achieving our final goal of an ROE of 8% or more. We will continue to make improvements to reach our final goal.
We will use the cash we generate to continuously return profits to shareholders in a stable manner. Moreover, we will push ahead with investments and R&D to advance to our next stage of growth.

Basic Policy of Midterm Plan

'Achieve new growth by strengthening our business foundations and original technologies'

Strengthen our business foundations by making selective choices about priorities.
Deliver added value by anticipating the needs of customers and society.
Ensure compliance and contribute to the development of society as a global corporation.

1. Return to a medium- to long-term growth path.
- ・Pursue returns by selectively allocating management resources to business fields targeted for growth.
- ・Secure funding for growth investments by reshaping the operating structure according to business and organizational features.
- ・Boost earnings power and efficiency as well as improve cash flows through carefully selected investments.
2. Distribute cash flows based on a well-balanced consideration of shareholder returns, investments and financial discipline.
3. Continue strengthening R&D to ensure future growth.

■Positioning of businesses in the current Midterm Plan (From FY2018 to FY2020)