May 13, 2019
Matsuda Sangyo Co., Ltd.

New Medium-term Management Plan (FY2019-2021)
The Matsuda Sangyo Group (the Group) has formulated a new medium-termmanagement plan (from fiscal 2019 to fiscal 2021) aimed at further increasing
corporate value. The plan’s main points are explained below.
1. Review of previous medium-term management plan (FY2016-2018)
During the previous medium-term management plan (FY2016-2018), which wascompleted in fiscal 2018, ended March 31, 2019, the Group aimed to increase
corporate value by positioning the precious metals business segment as thedriver of expansion and growth, and the food business segment as a source ofstable growth. Specifically, the Group focused on five management strategies:
boost earnings in existing businesses, cultivate new sources of earnings,
actively expand the business in East Asia, build an optimum management
framework, and nurture and hire human resources, with the last two strategies
designed to support the first three. As a result, the Group achieved the plan'stargets: consolidated net sales of ¥200 billion, consolidated operating income of¥4 billion and a consolidated operating margin of 2.0%.
2. New medium-term management plan targets
In light of the above, the Group has set the following targets for its new
medium-term management plan (FY2019-21).
FY2018 results(Ended March 31, 2019)

FY2021 targets(Ending March 31, 2022)

Consolidated net sales¥208.3 billion¥220 billion

Consolidated operating
income¥4.9 billion¥5.5 billion

Consolidated operating

2.4%

2.5%

5.9%

6.0%

marginReturn on equity (ROE)

3. Overview of management strategies
Under the new medium-term management plan, the Group aims to drive growthin both the precious metals business segment and the food business segment

by investing heavily in areas that support business expansion, such as productand technology development and upgrades to the facilities and functions ofdomestic and overseas business sites. In addition, the Group aims to increase
earnings by implementing the management strategies set out below, in line with
its vision for each business segment: “play a leading role in creating resource
recycling in East Asia” in the precious metals business, and “be the best partner
for customers in product development” in the food business.
(Business segment management strategies)
Precious metals business segment
Reinforce foundation of core

Food business segment
businessesStrengthen value proposals forcustomers, including in resource

Reinforce foundation of corebusinesses

recycling, and upgrade marketing
networks

Reinforce development, quality
assurance and production control
support functions to bolster
manufacturing capabilities



Expand the automotive, chemicaland overseas marketsEnhance the lineup with products
tailored to customer needsMove into new business areas,such as e-scrap, high-performanceelectronic materials and LiB

Accelerate business developmentoverseas, as well as in Japan(Expand business network inrecycling

Japan and overseas)

In addition, to reinforce the Company’s business base, the Group will (1) use IT
to strengthen management capabilities and improve productivity with automationand labor-saving technology, (2) nurture management personnel who can drive
growth, (3) create pleasant and rewarding working environments where diverse
human resources can fulfill their potential in optimum roles, and (4) reinforce
governance and rigorously manage various risks. The Group’s aim is to continue
increasing corporate value by expanding its business and contributing to society
through its business activities.

< Forward-looking statements >Performance targets and other forecasts in this document are forward-looking
statements and are based on the current operating environment. These
forecasts may change due to a range of factors, including developments in theoperating environment.