Mid-Term
Management Plan
“Zokyo 21-25”～Becoming the No. 1 niche player
chosen by our customers ～February 8, 2021
Fujibo Holdings, Inc.
Representative Director, Chairman andPresident, Mitsuo Nakano

1. Business Overview, Corporate
Philosophy and Corporate Vision
2. Summary of “Kasoku 17-20”
3. Summary of New Mid-Term
Management Plan “Zokyo 21-25”
4. Appendix
11. Business Overview, Corporate Philosophy and Corporate Vision

Business Overview
Polishing Pad Business
Manufacturing of nano-level
polishing pads for ultraprecision work

Chemical Industrial Products Business
Top-class specialized
contract production in thechemical industry

For semiconductor devices (CMP)

Functional materials

For silicon wafers

Pharmaceutical intermediates

For LCD glass

Agricultural chemical intermediates

For hard disks*From the next fiscal year, the segment name “Textile Business”
will change to “Lifestyle Apparel Business”

Textile Business(Lifestyle Apparel Business)
High-quality underwear brands andmanufacturing of functional fibers usinglatest technology
B.V.D., B.V.D. Ladies
Asamerry, Airmerry
Spinning, weaving, knitting
Dye processing

2

Other Businesses
Manufacturing of chemical products(resin molded parts for medical andprecision fields,
and molds forautomobiles)
Resin molded parts for
medical and precision
fieldsMolds for automobiles

1. Business Overview, Corporate Philosophy and Corporate VisionCorporate Philosophy and Corporate Vision<Corporate Philosophy>
We will always strive to provide new technologies and products that meet the demandsof the times, using technologies and experience we have developed through Fujibo's
history of more than a century. In doing so, we intend to sustain cutting-edge industries
and continue to contribute to the creation of a richer and more sustainable future forpeople, society, and the global environment.
<Corporate Vision>
Making a breakthroughand going ahead of thetimes ~ Guidelines as amanufacturer ~We contribute to human life and thedevelopment of industry, throughconstantly overcoming challenges tomake breakthroughs, including theenhancement of the competitiveness of
our core business and the generationof new businesses in developing
markets.

3

Management with integrity
and sustainable growth

Respecting individuality
and treasuring conformity~ Guidelines for corporate
management~~ Guidelines for the working
environment ~Recognizing the importance ofenhancement in our corporate
governance and risk management,
we aim for bona fide corporate
management in which our
stakeholders such as
shareholders confide.

We provide fair opportunities andevaluations for each employee andcreate an environment where they can
improve through friendly competition.
Respect for individuality creates aworkplace that improvescompetitiveness and team work.

1. Business Overview, Corporate
Philosophy and Corporate Vision
2. Summary of “Kasoku 17-20”
3. Summary of New Mid-Term
Management Plan “Zokyo 21-25”
4. Appendix
4

2. Summary of “Kasoku 17-20”

Business Performance
Regarding “Kasoku 17-20”, operating income has increased in the second half towards
the target income.
Operating Income and Net Income“Henshin 06-10”“Toppa 11-13”“Maishin 14-16”“Kasoku 17-20”

68

Operating income
Initial target
100(JPY 100 mil.)

59

49
44
36

38

35

35

40
36

38

41

30

32
27

43
31
5
2006

8

4
2008

Net income

5

9

8
2010

18

13
2012

24

2014

30

29

2016

34
25

2018

Operating income
Polishing Pad Business
Chemical Industrial Products BusinessTextile Business
Others

23

2020
（FY）
（forecast）

2. Summary of “Kasoku 17-20”

Expansion of Non-Textile Business
Steady increase in non-textile businesses (i.e., Polishing Pad, Chemical Industrial
Products, Other Businesses).
Net Sales Composition Ratio by Business Segments and Total Net Sales“Toppa 11-13”“Henshin 06-10”“Maishin 14-16”“Kasoku 17-20”

473

503

(JPY 100 mil.)

410
382

360

336

393

412

409
381

363

359

371

387

365
80.8%

39.4%

60.6%

2006

48.9%

48.3%

51.7%

2007

51.1%

2008

Total net sales

54.4%

45.6%

2009

57.8%

42.2%

2010

58.0%

42.0%

2011

61.8%

38.2%

2012

59.3%

40.7%

2013

63.9%

36.1%

2014

62.9%

37.1%

2015

69.4%

30.6%
2016

65.5%

34.5%

2017

Net sales composition ratio by business segment
Polishing Pad Business
Chemical Industrial Products BusinessTextile Business
Others

6

68.7%

31.3%
2018

74.7%

25.3%
2019

19.2%
2020 （FY）(forecast)2. Summary of “Kasoku 17-20”

Summary of “Kasoku 17-20”
The basic strategy was steadily implemented, although growth acceleration did notreach target rates.
Quantitative Targets
FY2020(JPY100 mil.)(JPY100 mil.)“Kasoku 17-20”
TargetEarnings Forecast

Net sales

700

365

Operating income

100

Net income during theperiodFY2017 - FY2020 Cumulative“Kasoku 17-20”
TargetForecast

Capital expenditure

150

193

49

(for the Polishing Pad
Business)

70

117

70

34

(for the Chemical Industrial
Products Business)

67

60

ROE

15.0％

9.4％

Depreciation expense

100

92

Capital adequacy ratio

65.0％

68.0％

M&A budget

100‐150

1-50

Basic Strategies
Basic Strategies

7

Reflections

Aggressive expansion of the highly
profitable Polishing Pad Business andChemical Industrial Products Businesses Further increase domestic and overseas productions.

◎

Implementation of structural reforms andcounter offensive tactics in the Textile
Business.

 Selected and concentrated on production sites. Although counter offensive tactics were notachieved due to a shrinking market.

○

Strengthening of holding company
functions for growth acceleration

 Promoted intellectual property strategy for overseas expansion.

○2. Summary of “Kasoku 17-20”

Polishing Pad Business
Focused on CMP to drive growth
Progress Status of Objectives
Objectives
Strengthen andstabilize domestic andoverseas production

StatusNet Sales and Operating Income(JPY Mil.)◎

Strengthen sales
force team◎

13,000

7,500
5,000

10,000

2,251

2,081

3,300

2,540

2,500
0

0
FY2017
results○

Operating income(right axis)

11,695

10,733

10,6425,000

Develop new fields
through reinforced
marketing

Net sales(left axis)

15,000FY2018results

Changes in Net Sales and Profitability in“Kasoku 17-20”
Profitability(Illustration)

FY2019results

FY2020forecast

 Expansion of domestic andoverseas production sites

CMP
Shift to “proactive
patenting policy”
Boost demand inperipheral fields met
by the IoT society

○
◎

For
LCD
glass
For
hard
disk

New Taiwan factoryForsiliconwafers Securing a competitive advantage
in miniaturization of the latest
technologies
Net Sales

8

New Oita factory

 Strengthening sales force team

2. Summary of “Kasoku 17-20”

Chemical Industrial Products Business
Doubled operating income through strategy implementation
Progress Status of Objectives

Net Sales and Operating Income(JPY Mil.)

Objectives
Increase production
capacity by
constructing newfactories

Optimize production
operations at the
Takefu Factory

Status

Net sales (left axis)

10,00013,30013,50011,305

9,716

5,000

919

606

1,265

1,200
1,000

0

0
FY2017
results◎

FY2018results

FY2019results

FY2020forecast

Net Sales of Functional Materials

 Total investment of JPY 6 bn

5.3%

◎

 Active capital investments:

 Increased production capacity
at the Takefu Factory

Adopt an aggressive
approach towards
M&A deals

9

3,000
2,000

◎

Compound annual growth:
Acquire stablesources of revenue

Operating income (right axis)

15,000△FY2017
result

FY2018result

FY2019resultFY2020forecast

2. Summary of “Kasoku 17-20”

Textile Business
Promoted structural reforms, although counter offensive tactics were not achieved due
to a shrinking market
Progress Status of Objectives

Net Sales and Operating Income
Net sales (left axis)(JPY Mil.)

Objectives
Strengthen marketing
functions

Status

15,000△10,0005,000

Promote an omnichannel strategy

Reform logistics andinventory reduction○◎

12,376

Operating income (right axis)
3,000

11,550
9,753

2,000

7,000
971

636

1,000

162

200

FY2019results

FY2020forecast

00FY2017
results

FY2018results

 Progress of structural reforms:
 April 2019 Merged Fujibo Trading Co., Ltd. with Fujibo Apparel Corporation【Integrated manufacture planning functions and sales functions】
 December 2019 Dissolved Fujibo (Changzhou) Apparel Co., Ltd.

Strengthen
development of highvalue-added fields△【Chinese sewing subsidiary】
 March 2020 Dissolved Fujibo Sewing Co., Ltd.
【Domestic sewing subsidiary】
 October 2020 Merged ANGLE Co., Ltd. with Fujibo Apparel Corporation

Reduce and narrow
down production sites◎【Integration of sales functions】
 January 2021 Transferred Textile Division of Fujibo Ehime Co., Ltd. to Fujibo Textile Co., Ltd.
Transition by corporate divesture 【Clarification of segment strategies】

10

2. Summary of “Kasoku 17-20”

Other Businesses
While the Trading Business was down-sized, the highly profitable mold business was
pursued
Progress Status of Objectives
Objectives

StatusNet Sales and Operating Income(JPY Mil.)

4,000

Develop high valueadded products andnew services

Net sales (left axis)

5,000

750

3,952

3,508

3,155

Operating income (right axis)

600

3,000

3,000

◎

450

2,000

160

143

1,000

300

200
110

150

0

0
FY2017
results

Expand compatible
products and areas
for medical device
related fields○

FY2017 Results

FY2020forecast

FY2020 ForecastResinmolded
parts

Molds

Resin
moldedparts○
Trading

11

FY2019results

Net Sales Composition Ratio

Purification

Strengthen marketing
functions

FY2018results

Purification

Trading

2. Summary of “Kasoku 17-20”

Dividend Policy
FY2020

ＥＰＳ

ＲＯＥ

Plan

Forecast

JPY 600 or more

JPY 296.89

15.0% or more

Annual(Please refer to thedividends ‘Dividend Policy’ below)•

Dividend•
policy（JPY）

Dividends per share (right axis)（JPY）
EPS (left axis)

400

160

350

140

300

120

250

100

200

80

150

60

100

40

50

20

9.4%

JPY105 per share

Aiming to achieve mid to long-term
improvement in corporate value, retain
earnings for investment in growth opportunities
Recognizing shareholder returns as one of themost important issues, carry out a lasting andstable dividend policy based on performanceand facilitate agile share buyback programs.

0

07

10

12

14

16

0
18 20
(Forecast)【Reverse stock split is adjusted for】

12

1. Business Overview, Corporate
Philosophy and Corporate Vision
2. Summary of “Kasoku 17-20”
3. Summary of New Mid-Term
Management
Plan “Zokyo 21-25”
4. Appendix
13

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Fujibo's Sustainability Management
ESG filter

Investors
Shareholder
returns

SDGs
management

Growth andprofitability

 Business portfolio management
 Focus on cash flow
 ROIC management methods(Includes inventory reduction and debt reduction)
 Investment for sustainable growth“不易流行 Fueki-ryuko(Continuity and Change)”:
Identifying what should not
be changed and what can bechanged, and working withintegrity and with the trust of
our stakeholders.

Socialcontribution
and integrity Participation in the “Fukunowa Project”(Includes the recycling and reuse of clothing materials, andthe support for parasports)
 Assistance for aquariums that aid in dolphin conservation
 Donation of clothing during disasters, supporting essential
healthcare workers tackling COVID-19
 Reduction of CO2 and industrial waste

143. Summary of New Medium-term Management Plan “Zokyo 21-25”

Premise for formulating “Zokyo 21-25”
Historical View (Human Progress)

Geopolitics View (World Affairs)

New Society“Society 5.0”
Society 1.0 Hunting and Gathering

Society 2.0 Agriculture

Society 3.0 Industry
Society 4.0 Information

Source: Cabinet Office HP "Society 5.0"

Progression of a “Modern Industrial
Revolution” centered aroundsemiconductors andtelecommunications
15

Possibility of the world convertingfrom globalization to regionalization

3. Summary of New Medium-term Management Plan “Zokyo 21-25”“Zokyo 21-25” Formulation Approach
Measures for “Zokyo 21-25” were formulated by identifying the gaps between the company’s
current forecasted status in 2025 and its desirable status in 2025 as set by the company’s desirable
position

Value
Backcasting
perspectiveof 2025

Desirable
futureposition

Absolute No. 1
niche player
Fill in gaps with measuresin the new “Zokyo 21-25”
Mid-Term plan

Current
position
Year 202016

Forecasted
status of 2025
(if current
trends continue)

Year 2025

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Overall Picture of “Zokyo 21-25”
Aim to become the absolute “No. 1 niche player” by continuing and fortifying DX, andincreasing earning power
Value

Overall Picture of New Mid-term Management Plan “Zokyo 21-25”

Restructure business models for better earnings
1“Zo”: Increase
revenue opportunity

Specialize and advanceinto high-growth, highprofit business areas

2 “Kyo”: Strengthen theStrengthen
andincrease
earning
power

Adopt a “highly
contracted business”
style focused onproviding solutions

Build an operational foundation to support a
new business format

Current
position

Year 202017

No. 1 niche
player chosen bycustomers

value provided

Support3

Backcasting
perspectiveof 2025

Reform operation processes
by continuing and fortifying DX

Forecasted
status of 2025
(if current
trendscontinue)Significantly improve productivity by promoting thesophistication of the entire supply chain with digitaltechnology

Year 2025

3. Summary of New Medium-term Management Plan “Zokyo 21-25”“Zokyo 21-25” Vision
Aim to achieve an operating income of JPY 10 bn (with a net sales of JPY 60 bn) by
2025 by transforming into a profitable business“Zokyo 21-25” Vision (Operating Income Amount)“Henshin06-10”“Toppa11-13”“Maishin
14-16”Overall Policy“Zokyo21-25”“Kasoku
17-20”

JPY 10 bn(JPY 60 bn sales)

JPY 7 bn

JPY 6.8 bn

Achieve operating income of JPY 10 bn(JPY 48 bn sales)(JPY 40.9 bn sales)(Operating income margin: 16.7%)

JPY 4.9 bn
JPY 3.8 bn(JPY 36.5 bn)(JPY 36 bn sales)

JPY 3 bn
(JPY 39.3 bn sales)

2010(results)

18

2013(results)

2016(results)

 Increase profitability bytransforming into a profitablebusiness(“Profits allow for social
contributions”)

2020(forecast)2023(target)2025(target)(FY)

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Portfolio Reform
Further increase added-value in promising markets within our core businesses which include thePolishing Pad Business, Chemical Industrial Products Business, and chemical products businesses.
Implement structural reforms in low-profit business areas.
Areas aiming for further growth as corebusinesses

High

Polishingpads
Chemicalproducts

Areas for selection and concentration

MiddleMarket attractivenessChemicalindustrial
products

ApparelSpecializedmaterials

Low

Generalpurpose
materials

Low

MiddleCompany’s competitiveness19⇒ Add higher value and provide solutions inpromising areas such as CMP, finechemicals, and medical parts

High⇒ Focus on a number of strong brands such as
B.V.D. and reduce other low-profit businesses
to promote the overall operational efficiency⇒ Promote development of highly profitablebusiness such as specialized materials
Areas that require a review of the businessstructure⇒ Implement reorganization and reduction ofgeneral-purpose materials with the possibilityof withdrawal

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Quantitative Targets
Aim to reach an operating income of JPY 10 bn, a net sales of JPY 60 bn, a ROE of atleast 10%, a ROIC of at least 10%, and a capital adequacy ratio of at least 65% in
FY2025
Quantitative Targets(JPY100 mil.)

FY2020Earnings Forecast

Net sales
Operating income
Operating income margin
ROE
ROIC
Capital adequacy ratio

365
49
13.4 %
9.4 %9.0 %68.0 %“Zokyo 21-25” Target
FY2023
FY2025
600
480
100
70
16.7 %
14.6 %
10% or more
10% or more
65% or more

Operating Income(JPY 100 mil.)
120
100
80
49
60
2
40
12 2
20
33
0
2020
（forecast）(JPY 100 mil.)
800

100
70
34
16
47
2023
（target）

Polishing Pad Business
Lifestyle Apparel Business20

Net Sales
3

7
20

600
400

70

2025
（target）

600

200
(FY)

0

Chemical Industrial Products Business
Others

365
30

70
135
130

2020
（forecast）

480

50

40

70
200

200

280

2023
（target）

2025（target）

70
170

(FY)

* The target for the Chemical Industrial Products Business was set
based on figures prior to the change in accounting standards

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Polishing Pad Business
Reform business processes and heighten value by promoting a solution-type contract
model
Response to the Semiconductor Market

1

Increase revenue
opportunity

 5G, data center related investment,
technology development to capture theexpanding demand for next-generation
game equipment, etc.

 An expanding semiconductor market(Unit: USD 1 bn)

400
300
200

 Promote solution selling that integrates
sales and R&D

2

100
0
2018
results

Strengthen thevalue provided

21

2021
forecast

2022
forecast

2023
forecast

2024
forecast* Tables are created using various company materials

Year

Reform operational
processes bycontinuing anddeepening DX

2020
forecast

 Miniaturization and enlarging capacity
2018

2019

2020

2021

2022

2023

2024

7nm
6X
3D-NAND
Layer

→
9X
Layer

5nm

→
11X
Layer

3nm
14X
Layer

→
19X
Layer

2nm
25X
Layer

Logic

3

2019
results

 Establish innovative value provision
processes by using IoT to evaluate
polishing quality
Inspection andpacking equipmentusing AI→ (Reference) Polishing:
Polishing pad

A process that grinds surfaces in a precise and fine manner usingabrasive grains and a “polishing pad”. Unevenness in the surface isshaved to create a smooth, mirror-like surface.

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Chemical Industrial Products Business
Expand the field of fine chemicals, and increase added value by developing support
solutions
1

Increaserevenueopportunity

 Expand the field of fine chemicals
 Increase production capacity at
the Yanai factory Increase contractual capacitywith M&A

Diagram of the Fine Chemical
Contract Manufacturing Process<Market environment>
Shift to domestic production
as a consequence oftightened overseas
environmental regulations

Final products
5G related

Rechargeable
batteries

Automobile
parts

Smartphone
relatedCustomers
2

Strengthen thevalue provided

 Advance into prototype
development support solutions
and increase items for contract
manufacturing

3

Reformoperational
processes bycontinuing andfortifying DX

22

Orders received

Intermediates production

 Digitalize customer services andquality control

Prototype andmass production

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Lifestyle Apparel BusinessTransition to an E-commerce business model and expand number of high value-added
products
1

 Transition to an E-commerce
Increaserevenueopportunity

business model

Promotion of Sales through Our Online Stores
Expansion of EC-Specialized Products
B.V.D. online store Global expansion of specializedmaterials
ANGLE online shop

2

Strengthen thevalue provided

 Provide products other thanexisting B.V.D. for mass retailers
 Develop new products for
specialized materials

Application of Specialized Materials

3

Reformoperational
processes bycontinuing andfortifying DX

23

 Build an IT infrastructure thatmanages and utilizes integrateddata

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Other Businesses
Concentrate on the medical molding field and expand the mold business for automobiles
1

Increaserevenueopportunity

2

Strengthen thevalue provided

 Concentrate on the medical moldingfield Consider advancing into the large moldmanufacturing sector and expand areas
 Strategically utilize real estate assources of non-operating income

 Further improve *QCDS in moldmanufacturing Consider M&A for expanding businessareas Implement combined production andprocess orders for molds and moldings

Concentrate on the Medical Molding Field

Injection molding machine(Finished product exit process)
Catheter parts

Mold Business for Automobiles

Molds for automobile parts
3

Reformoperational
processes bycontinuing andfortifying DX Develop horizontal operations bystandardizing technology and know-how*QCDS : Quality / Cost / Delivery / Service24

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Capital Investment Plan and Shareholder Returns
Fundamental policy is to develop business in promising markets and to ensure shareholder
returns
Capital Investment Plan

(JPY100 mil.)Capitalexpenditures

Depreciation
expenseM&A budget, etc.

25

FY2021-2025
Cumulative
Plan

150

150

100-150

Shareholders Returns

The Company considers profit returns toshareholders as one of the most importantmanagement issue. As such, the Company takes
into consideration matters of business environmentand business performance trends, and carries out alasting and stable dividend policy based on
performance.
The Company’s basic dividend policy is to pay out
dividends twice a year, which include an interim
dividend and a year-end dividend. Decision-making
regarding dividends is carried out by the Board of
Directors for interim dividends and by the General
Meeting of Shareholders for year-end dividends.
Regarding retained earnings, the Company plans toinvest in the renewal and construction of equipment,
research and development of new products, etc.,
while further solidifying its financial position.

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Initiatives for ESG and SDGs (1)B.V.D.: a trusted brand manufactured using world standard
factories
Strict requirements for factories producing B.V.D. products
 Requirements when producing B.V.D. products:• The factory must meet at least one of the world standardized codes ofconduct regarding labor and the environment: WCA (Workplace
Conditions Assessment), WRAP (Worldwide Responsible Accredited
Production), BSCI (Business Social Compliance Initiative)• As a B.V.D. product production factory, it must obtain the final approval
from FTL (Fruit of the Loom), a B.V.D. licensor.
<Code of conduct established by FTL (abstract)>
 Environmental sustainability:• Reduction of harmful impacts on the environment from• Prohibition of child labor and forced laborbusiness operations• Prohibition of discrimination based on(Prohibition of child labor and• Compliance with all environmental protection laws andgender, race and religion, etc.
forced labor)international laws
• Provision of a safe and hygienic workspace• Minimization of energy consumption and waste, andmaximization of recycling processes Respect for human rights:

Secure employment
in developing
countries

26

Eradicate forcedlabor and child labor

Establish fair labor
practices3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Initiatives for ESG and SDGs (2)Contribute to reducing environmental impact and solving social issues through the “Fukunowa Project”
 Reduce CO2 emissions

Manufacture Reduce industrial waste～Reduce Reduce energy use Reduce handling volume of chemical
substances subject to the PRTR
systemManufacture of textile
products

Participate as a “Fukunowa Project”
partner

Support for parasports andeducation

Reuse and recycle
 Domestically distribute clothing at“Fukunowa Marche”

 Support for parasports competitiongroups Sort clothes in Malaysia and sell themin more than 15 countries overseas

 Provide a “learning place” forenvironmental initiatives bycollaborating with schools

 Make collection kits at facilities forpeople with disabilities“Fukunowa Project”
Website QR code27

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Initiatives for ESG and SDGs (3)Participate as a shareholder in Marine Palace Co., Ltd. (Oita Prefecture), which operates aquarium facilities（Visitors in mil.）Umitamago
WebsiteQR Code40

Total Number of Visitors to
Umitamago

35
30
25
20
2002 2004 2006 2008 2010 2012 2014 2016 2018

(FY)

Dolphin conservation
Contribute to the conservation of
ecological species

Marine animal ecosystem research
Summit on dolphin research held in
Tsukumi City
Marine animal ecosystem researchthrough public-private-academic
collaborations among Tsukumi City,
Tsukumi Dolphin Island park, and various
universities.

Education

Provide a place to interact with animals

Organize hands-on learning sessions for
local elementary school students
Contribute to themaintenance andrecovery of marine
ecosystems

28

Become a research
center for publicprivate-academic
collaboration

Educate children to
foster environmental
awareness

3. Summary of New Medium-term Management Plan “Zokyo 21-25”

Corporate Governance System
Corporate governance system
General Meeting of Shareholders
Appointment /dismissal
Nomination
Advisory
Committee

Response

Compensation Response
Advisory
Committee<Decision on operational
execution and supervisionof job execution>
Audit

Board of Directors
ReportAppointment /supervision / dismissal<Business execution>

Management Committee

Compliance Committee

Internal
Audit OfficeCommittees
 Nomination Advisory Committee Compensation Advisory Committee
The majority of the members are
independent external directors who can
Appointment /Appointment / ensure the independence, objectivity,
dismissal
dismissal
and accountability of the Board of
Directors functions.
Board of Compliance Committee
Auditors
Accounting
Establish and control a company-wide
Auditorlegal compliance system
Auditors
 Risk Management Committee
Promote the development of specific risk
management and control methods suchAudit
as various risk management rules andsystems
 ESG Promotion Committee(Scheduled to be established in April 2021)
 Board of Directors
Of all eight directors, three are external
and independent directors (37.5%, one isfemale and American)

Comments from Ruth Marie
Jarman, External Director

Risk Management
Committee
ESG Promotion Committee

Internal audit(Scheduled to be established in April
2021)

Accounting audit

Departments and subsidiaries

29

As the word “Zokyo” implies, this is a midterm management plan intended toestablish a stronger foundation.
We will continue to strengthen Fujibo HD
from various perspectives, including
promoting risk management andmanagement strategies and strengtheningorganizational power.
We aim to be a leading-edge company
benefiting the world with a firm emphasison ESG and SDGs.

1. Business Overview, Corporate
Philosophy and Corporate Vision
2. Summary of “Kasoku 17-20”
3. Summary of New Mid-Term
Management Plan “Zokyo 21-25”
4. Appendix
30

4.Appendix

Management Index and Stock Price Index
Trends in DOE and Net Assets

ROE・ROIC
20
18
16
14
12
10
8
6
4
2
0

ROE

（%）

ROIC

4

（%）

DOE (left axis)
3.41

15.4

2.93

3

2.42

14.2

7.8

32,148 32,778

1

8.3

24,830FY2016FY2017FY2018180

11,537 12,286 11,814 12,463

6.8

21,005 22,027

12,633

13,941

0.00

0

194.3
（%）
Fujibo HD
TOPIX (dividend included)
200
160.1
180
155.3
144.7
144.5
160
126.4 129.5
140
114.5
120 100.0
87.2
125.1
79.7
118.8
100
71.9
69.2
108.0
107.6
105.6
80
94.2
Reported TSR
46.9
80.8
60
70.0
68.2
2016 2017 2018 2019
60.3
40
54.7 55.0
108.2% 137.8% 100.2% 111.8%
Fujibo HD
20
TOPIX （dividend
32.6
102.3% 118.5% 112.5% 101.8%
included）
0

140
120
100
80
60
20

TOPIX (dividend included)0
FY2015FY2016FY2017FY201810,000Trends in TSR

160

Fujibo HD (dividend adjusted)

20,000FY2019“Kasoku 17-20”40

30,00026,4450
FY201533,842

7.4

9.5
7.1

（JPY Mil.）
40,0003.38

30,1491.75 1.80 1.70

2

9.3

3.56 3.49

3.11
2.78 2.65 2.82

11.8

Stock Price Comparison

FY2019(TOPIX (dividend included) and Fujibo HD stock price after dividend adjustment. The adjusted stock priceat the end of the previous fiscal year is represented in units of 100 in the candlestick chart.)

31

Net assets (right axis)

4.Appendix

Fujibo ROIC Management
Improve company-wide ROIC by breaking down ROIC and achieving individual
measures
Breakdown

Net sales after tax
Operating income
marginMeasures

Portfolio reform

Improve profitability through portfolio reforms inaccordance with marketability andcompetitiveness

Solution-type contract model

Convert to a solution-type contract model in orderto improve profitability

Variable cost margin

Reduce raw material costs

Fixed cost margin

Improve productivity

Labor cost margin

Promote optimal staffing
Utilize the knowledge of highly specialized humanresources

Property cost
marginEfficient use of various expenses
Transform the headquarters to an intelligent
building

Cash turnover ratio

Reduce cash and deposit balance by effective
cash management

Trade receivable
turnover rate

Shorten the debt collection period

Inventories turnover
ratio

Reduce inventory by flexibly adjusting production

COGS ratio per sale

SG&A ratio per sale

ROIC

Working capitalturnover ratio
Invested capitalturnover ratio

Fixed asset turnover ratio

32

Improve equipment productivity

33This presentation is prepared to offer reference
information about Fujibo Holdings, Inc. to the investors
and is intended to generally provide investors andanalysts with financial and operational information about
Fujibo Holdings, Inc., but not to solicit or recommend
any sale or purchase of stock or other securities ofFujibo Holdings, Inc.



Fujibo Holdings, Inc. has not verified and would assume
no responsibility for the accuracy, appropriation, orcompleteness thereof. This presentation does notcontain all relevant information relating to Fujibo
Holdings, Inc. or the sale of its shares.

This presentation includes forward-looking statements.
These statements discuss expectations, identify
strategies, contain projections of Fujibo Holdings, Inc.’sfinancial condition or results of operations or state otherforward-looking information. The forward-looking
statements in this presentation are subject to various
risks, uncertainties and assumptions about Fujibo
Holdings, Inc.’s business and results of operations. The
expectations expressed in these forward-looking
statements may not be achieved, and actual results
could differ materially from and be worse than
expectations.