July 30, 2020
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ES-CON JAPAN Ltd.
Takatoshi Ito, President &Representative Director(TSE 1st Section, code: 8892)
Minoru Nakanishi, Senior
Managing Director+81-3-6230-9308

Notice on Review of Third Medium-Term Management Plan“IDEAL to REAL 2022” and Progressive Dividend Policy
ES-CON JAPAN Ltd. (ES-CON JAPAN) announces that a decision was made at the board of directors’
meeting held today to review its third medium-term management plan “IDEAL to REAL 2022” (a period ofthree years from the fiscal year ending December 2020 to the fiscal year ending December 2022) announcedon December 2, 2019, and the progressive dividend policy introduced in November 2016 as follows.
1. Background of the Review of Medium-Term Management Plan
ES-CON JAPAN announced its third medium-term management plan “IDEAL to REAL 2022” with the fiscalyear ending December 2022 as the final fiscal year on December 2, 2019, and commenced proactive
business development from January 2020 by setting a basic policy of putting management stability andsustainable growth on track as well as accurately responding to diversifying social issues through ESG
promotion and aiming to maximize corporate value.
However, the outlook is extremely difficult to predict as economic activities have been significantly restricted
and the economic and social environment has also changed drastically due to the occurrence of theCOVID-19 pandemic in February 2020 not only in Japan but also across the world. In addition, the number of
infected people has recently been on an upward trend in the Tokyo metropolitan area and central Tokyo, andpossible second and third waves of COVID-19 are a matter of concern, resulting in a further increase inuncertainty.
Furthermore, ES-CON JAPAN forecasts that a long period of time will be required to recover from theCOVID-19 pandemic.
Based on these factors, ES-CON JAPAN decided to drastically review its third medium-term management
plan and withdraw it for the time being.
As described in “Summary of Accounts for First Two Quarters of Fiscal Year Ending December 2020
(Japanese GAAP) (Consolidated)” announced separately today, ES-CON JAPAN Group’s businessperformance remained solid until the second quarter of the fiscal year ending December 2020. However,ES-CON JAPAN believes that it is necessary to watch the business environment, business progress, andsuch carefully, and make prudent management decisions from the second half of the fiscal year.
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In such an environment, upon steadily grasping and analyzing significant changes in the situation inside andoutside Japan, such as changes in economy, politics, work styles, and living environment, ES-CON JAPANintends to establish and announce a new medium-term management plan as soon as possible by regarding it
as an opportunity for ES-CON JAPAN Group to provide added value that matches the new society and realize
sustainable growth.
2. Background of the Review of Progressive Dividend Policy
ES-CON JAPAN introduced the progressive dividend policy (a dividend policy that sets the dividend per share(DPS) for the previous fiscal year as the lower limit and “does not decrease the dividend amount, but rather
only maintain or increase the dividend amount” in principle) as its dividend policy in November 2016 and has
continued to implement it. However, ES-CON JAPAN has reviewed the “progressive dividend policy” basedon the idea that it is necessary to further enhance internal reserves as it is extremely difficult to predict thefuture as described in 1. above, and decided to withdraw it.
Moreover, ES-CON JAPAN will maintain a payout ratio of 30% or more.
With regard to the dividend policy, ES-CON JAPAN will shift the focus to the securement of internal reserves
by taking into account the current environment while paying attention to the balance with dividends, andintends to improve and maximize sustainable corporate value without changing the policy of placing utmost
importance on return to shareholders.

3. Future Outlook
ES-CON JAPAN will announce the new medium-term management plan as soon as the details of the plan
have been reviewed and resetting becomes possible.
Furthermore, no changes have been made to the full-year earnings plan for the fiscal year ending December
2020 and the dividend forecast at the end of the fiscal year ending December 2020 (amount of forecast
dividend per share: 38 yen). However, ES-CON JAPAN will carefully watch the business environment,
business progress, and such for the second half of the fiscal year onwards and promptly make anannouncement when a change becomes necessary.

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