Medium-Term
Management Plan2025

Review of Medium-Term Management Plan 2022
Quantitative Targets

Consolidated
profitConsolidated Profit:20202021

2022¥0.8 billion¥1.4 billion¥2.3 billion

Recover revenue for FY2022 byovercoming the downturn due to the impact
of COVID-19.

ROE

Aim to create a revenue foundation that canmaintain 7%, and realize a double-digit
percentage in the medium to long term.

Shareholder
returnPursue flexible shareholder returns basedon a consolidated payout ratio of 50% while
maintaining financial soundness.

Basic Strategies & Specific Initiatives
Realize vision through sustainable growth and thecreation of new value in the three focus areas ofmobility, environment and lifestyle.
⚫

Business expansion for Lithium Ion Battery chain and create newbusinesses⚫ Propose environmentally friendly resins and parts⚫ Develop construction material business solution proposal-based
businesses, etc.

Consolidated Management Foundation
Further expand the consolidated management foundation,
which supports the implementation of strategies.
GovernanceRealize highly effective corporate governance
Strengthen of risk management
Strengthen of crisis management system

Humanresources

Utilize diverse human resources
Develop and strengthen human resources that
increase “uniqueness”
Enhance productivity through the promotionof digitalization⚫ Achieved ¥1.2 billion and ¥2.4 billion in FY2020 and FY2021,
respectively, but unable to achieve ¥1.7 billion in FY2022.
⚫ Automotive business continued deficit. The immediate
improvement of revenue is a significant issue.

ROE:⚫ Fell short of the target with 3.7% in FY2020, 6.9% in FY2021,
and 4.8% in FY2022.

Shareholder Return:⚫ Achieve a consolidated payout ratio of 50% or more while
maintaining financial soundness.
⚫ Unable to create new businesses despite a certain amount ofprogression on initiatives in focus areas.
・ Promote environmentally friendly businesses (Reuse and Recycle Business for
Chinese automotive batteries, Reusable Plastics Business)
・ Generate demand for new materials (new development of optical materials)
・ Expand regionally-based businesses (purchase of AQEA Corporation. via
subsidiary Juzen Corporation)⚫ Promote the strengthening of consolidated foundation, such as
by improving risk management and business management.
⚫ Worked to strengthen the utilization and development ofdiverse human resources by improving productivity, etc.
through the pursuit of working styles unique to the Company,
enhancement of training opportunities for employees andofficers, and promotion of digitalization.
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Review of Medium-Term Management Plan 2022⚫

Existing businesses broke away from the downturn by strengthening risk management in addition tolinking the boost to market conditions with revenue.
The Company achieved record high operating profit of ¥3.6 billion (FY 2022) due to the strengthening ofearning power.

It is necessary to achieve sustained growth for existing businesses.
⚫

Revenue from businesses in which the Company has invested declined significantly, and this significantly
impacted the Company’s consolidated revenue.

Revenue improvement for businesses in which the Company has invested isan urgent management issue.
⚫

Although there were external factors such as COVID-19, new investments and business development
were limited for the Company’s current approach.

Different approaches are necessary for carrying out new investments andbusiness development.

⚫

Although the strengthening of the consolidated management foundation proceeded, such as by improving
risk management and business management, there is room for improvement with regard to governance forconsolidated companies.

It is necessary to further strengthen the consolidated management foundation.
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Environment Surrounding the Company and the Impact
Existing businesses have been significantly affected by initiatives for carbon neutrality, the progress of digitaltechnologies, etc., and are unable to sustain revenue.
On the other hand, the Company has been able to create new businesses by understanding societal, market andbusiness changes.

Major environmental changes
surrounding the CompanyPolitics

EconomySocietyTechnology

Positive impacts

Negative impacts• Creation of a business model that uses
products and technologies with a small
environmental footprint• Shift to renewable products and creation of a
resource circulation system, which willrealize an environmentally friendly society• Decline or loss of market value for existingproducts• Cost increases due to the strengthening oftraceability• Cost increases for logistics services• Co-existence of globalization andlocalization• Slowing of the Chinese economy’s
growth speed• Economic growth in India andSoutheast Asia

• Regionalization and diversification ofthe supply chain• Opportunities to enter growth markets• Further shrinking of the Japanesemarket• Decline of competitiveness of Chinese
manufacturing industry• Increasingly fierce competition in theChinese market• Decrease in workers due to thedecreasing birthrate and aging
population• Changes in lifestyles that came about
due to the COVID-19 pandemic• Climate change• Enhancement of productivity throughstrengthening of human capital• Diversification of values• Outflow of human resources• Rising personnel expenses• Increased risk of disasters• Realization of operations that utilize
digital technologies• Transition from products to services• Deterioration of intermediary functions• Deterioration of intelligence functions• Further strengthening ofenvironmental regulations• Initiatives to realize carbon
neutrality• Advanced development of digitaltechnologies• Further merging of reality anddigital

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Corporate Philosophy/VisionCorporate Philosophy
Exhibiting integrity and truthfulness inall that they do, all employees
encourage each other to embrace theprinciple of teamwork, creating a truly
warmhearted organization andcontributing widely to society.

Vision Looking Toward the Next 10 Years

From “until now” to “from now on, "paving the way toward
a new future
Realize sustainable growth by continuing to create new value while adapting to a continuously

changing environment.

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The Group’s Material Issues
Identify significant issues to work on for the enhancement of medium- to long-term corporate value

Value Creation

MATERIAL ISSUESOVERVIEW

Strengthening of initiatives
for reducing theenvironmental burden

The Company recognizes that climatechange and the creation of a circularsociety are significant social issues, andthat they are risks and opportunities that are
deeply related to the Group’s sustainablegrowth. The Company will create andpromote a business model that contributes
to reducing the environmental burden.

Management Foundation

Creation of new value

Amid changes to society and values, theCompany will continue to change and takeon challenges, and create new businesses ingrowth areas. The Company aims to create
value that contributes to society andpeople’s lives, and achieve sustainablegrowth for the Group.

Establishment of anenvironment where diverse
employees can be developed
and display their capabilities

The Company believes that the acquisitionand development of human resources, who
are necessary for value creation, are themost important issues for the Group. The
Company will continuously improve theenvironment so that diverse humanresources can grow and display theircapabilities to the maximum extent.

Strengthening ofgovernance

The Company will create a robust andsound governance structure that canrespond to various changes in the businessenvironment, and enhance the capability torespond to risks throughout the Group. TheCompany will promote highly transparent
and fair management, and create positive
relationships with stakeholders, such as
capital markets.

MAIN INITIATIVES⚫ Promotion of businesses associatedwith a circular economy⚫ Expansion of the handling ofalternative products that have asmall environmental footprint, suchas decarbonized products⚫ Reduction of GHG emissions fromthe Group⚫ Creation of new businesses⚫ Enhancement of productivity andreformation of the business modelthrough the utilization of digitaltechnologies⚫ Enhancement of the human resource

development system⚫ Improvement of working styles that

promote the display of capabilities⚫ Strengthening of the governancefoundation at various bases⚫ Enhancement of risk management

functions⚫ Enhancement of stakeholder

engagement

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Medium-Term Management Plan 2025:
Management Indicators & Quantitative Targets

FY2023

FY2024FY2025

Consolidated profit¥2.2 billion ¥2.4 billion ¥2.6 billion

ROE

Aim for the realization of a double-digit percentage in themedium to long term with a target of 7% or above.

Shareholder return

Amount offoundational andgrowth investments

Carry out flexible shareholder returns based on aconsolidated payout ratio of 50% while maintaining
financial soundness.

¥3.5 billion to ¥4.5 billion
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Medium-Term Management Plan 2025: Cash Allocation
Allocate cash that will be generated over the next three years togrowth investments and shareholder returns.

• Generation of sustainable
operating cash flows• Fund procurement within thescope of financial soundness• Optimization of assets heldOperating cash flows¥7.0 billion to ¥8.0billion

Cash flows fromfinancing activities
Investment recovery

Shareholder returns
From ¥3.5 billion• Based on consolidated dividend
payout ratio of 50% or more
• Flexible shareholder returns

Growthinvestments• Investment into the creation of
new growth opportunities

Foundational
investments¥3.5billion to¥4.5billion

Cash inCash out

Three years: ¥7.0 billion to¥8.5 billion

Three years: ¥7.0 billion to¥8.5 billion• Strengthening of the foundationsof existing businesses

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Basic Policy of the Medium-Term Management Plan202501

Seek to change various things and continue totake on challenges

02

Facilitate the growth of people and the Company
through the creation of new businesses

03

Refine functions and strengths, and increase
earning power

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Five Measures in Accordance With the Basic Policy

01

Develop businesses in new areas

02

Enhance profitability and efficiency of existing businesses

03

Strengthen investment into human resources04

Promote digitalization

05

Deepen consolidated management

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Medium-Term Management Plan 2025: Overview of Measures～ Two Measures and Foundation for Supporting Them ～Further enhance corporate value
Create new value*The Company’s focus areas are “mobility,”“environment” and “lifestyle”*Strengthen businesses
in focus areas

Enhance
profitability andefficiency ofPromote the existing businesses
increase ofcapital efficiency

Optimize businessportfolio

Strengthen investment intohuman resources

Strengthen the investment
pipeline

Developbusinesses inDevelop andnew areassupportentrepreneurs
within theCompany

Promote digitalization

Promote M&A
Joint developmentwith startups

Deepen consolidatedmanagement
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Enhance Profitability and Efficiency of Existing Businesses～Major Initiatives in Focus Areas～

Mobility

Environment

Lifestyle

Promote initiatives in the focus areas of “mobility,”“environment” and “lifestyle”

Mobility

Environment

Lifestyle Revenue improvement for businesses
in which the Company has invested

 Business promotion of Battery
Reuse & Recycle Business in China

 Development of and businessexpansion for new optical materials

 Promotion of Lithium Ion Battery
Materials Business Establishment of resource
circulating businesses throughbiomass resins and reusable plastics

 Promotion of Paper Chemical
Business in Vietnam•Expansion of Lithium Ion Battery
Anode Material Business•Business development for each stage
in the loop of lithium ion battery valuechain.

 Sale of lubricants for air
conditioner compressors with small
environmental footprints in India

 Promotion of Interchangeable
Rechargeable Battery Service Businessfor electric motorcycles in Indonesia

Visualization of the Interchangeable
Rechargeable Battery Service Businessfor electric motorcycles

Visualization of the Battery Reuse & Recycle Business Establishment of new supply
system for interior and exteriormaterials for convenience stores
 Development of and businessexpansion for films for nextgeneration communicationequipment

Visualization of films for next-generation
communication equipment

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Develop Businesses in New Areas
The Business Promotion Department will create the pillar
that will become the basis for future revenue
Search forbusiness domains

Electronics

Organizationthat promotes
new businesses

Collaboration
with externalpartners“X”aaS
Logistics
Agriculture

Enhancement ofpipeline throughdispatch outside
the Company,interns, etc.

Appointment of
external humanresources

Healthcare
Internal venturesystem

New energy

M&A

Joint
development withstartups

Creationof newbusinesses

Industryacademia
collaboration

Japan-China
collaboration

To become apillar forrevenueCreation ofentrepreneurs
within the Company
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Foundation for Supporting Two Measures
Strengthen investment into human resources
Form groups of diverse employees and establish an environment where they
can display their capabilities⚫ Develop human resources that create businesses⚫ Develop and acquire specialized human resources⚫ Strengthen development of human resources who can play active roles globally⚫ Improve working styles that promote the display of capabilities⚫ Develop all employees as digital human resources

Promote digitalization
Structure that increases operational efficiency and creates new businesses⚫ Productivity improvement utilizing digital technology⚫ Development and acquisition of human resources who promote DX
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Foundation for Supporting Two Measures
Deepen consolidated management
Corporate functions that link environmental changes with the enhancement ofcorporate value⚫ Capability to propose systems and measures that understand and analyze changes• Functions that detect and analyze changes to the business environment• Proposal-based sales support functions⚫ Measures to increase capital efficiency• Secure financial soundness and pursue the optimal capital structure• Enhance fund management and procurement functions for the consolidated group

Strengthen governance of businesses in which the Company has invested⚫ Enhance the management foundations of businesses in which the Company has invested⚫ Further enhance risk management functions

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Financial forecasts and other forward-looking statements in this document are based on
information available at the time of preparation and on certain assumptions that are deemed to bereasonable. These forward-looking statements are not guarantees of future performance and actual
results may differ materially from these forecasts due to a variety of reasons.

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