Midterm Business Plan
Change for Growth2021–2023

April of 2021

JSP Corporation

Deeper & Higher 2020

1 Review

2 VISION 2027

3 Change for Growth」& Higher 2020
Review of “Deeper & Higher 2020”
1 Deeper
Review

Overview of “Deeper & Higher 2020”
In “Deeper & Higher 2020”, “Differentiation strategy" and “Growth strategy," are in the middle ofthe road. To make the plan with a good balance, we added “Fortify the Management Base", which
is one of the basic policies of VISION 2027.
Basic Policy

Quantitative targets
FY2020 Midterm Business Plan
Net sales

Fortify thePromote the Promote the Growth
StrategyManagement BaseDifferentiation
Strategy

Four Growth Engines⚫

Make MIRAMAT ® ACE a major competitive productas the market growth continues.

⚫ MIRAFOAMTMλ and pre-cutting service had a trend
to increase before the Covid-19 pandemic.
⚫ Despite the stagnation of car production, thevolume of ARPRO ® used per vehicle is increasing.
⚫ New business is slow to progress. Expect for thenext midterm business plan.

Operatingincome
Operatingincome ratio

FY2020Forecast¥138 billion¥102.7 billion¥11 billion¥5.2 billion

8.0%

5.1%

FY2020 Economic Environment⚫ Covid-19 had a large impact in the first half, and therecovery trend in the second half did not return to thesame level as the previous year.
⚫ Raw material prices had fallen sharply in the first half andwere on the rise in the second half.
⚫ Fixed costs were reduced due to restrictions for Covid-19.
⚫ Movement to anti-plastic and circular economy
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Long-term Vision “VISION 2027”

2 VISION 2027

“A Global Company for Global Society”
Focus business domains

Basic Policy

Four Growth Engines

Fortify andexpand
existingbusinesses

Expand thebusinessdomainFortify themanagement
base

Management Policy

Automotive
Building andcomponents home insulationmaterials

Newbusinessdomains

Quantitative targets

Net sales⚫ Inspire customers and consumers

FPD
protection
materials

Operatingincome⚫ Deliver satisfaction to shareholders andthe community
Operatingincome ratio⚫ Be excited in our work

FY2017VISION
2027¥114.2 billion¥180 billion¥9.1 billion¥18 billion

8.0%

10%
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Basic Concept of “Change for Growth”

Basic Concept

1.

“Expand provided value from economic value to social value
to solve customers’ and social issues”
Sustainability Management
Shareholders
・Investors

Social issues

Customers・End-users

Significant issues
influence on all
stakeholders’ way of
thinking and behavior
such as SDGs, theParis Agreement andcircular economy etc.

Venders

Employees

JobApplicants

LocalCommunity

To gain theunderstanding,liability andsympathy as acompany
necessary forsociety

GlobalEnvironment
Government
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Basic Concept of “Change for Growth”

Basic Concept2.

”Fortify the Management Base”

Based on the long-term vision, we aim to be a global company for global society. To
achieve this, we work to fortify the management base which includes developing
human resource, fostering a corporate culture based on health and safety andenvironmental preservation, and strengthening corporate governance. On top of

that, “strengthening information system base” and “creating a corporate culture
with job satisfaction” are newly added in the current midterm business plan.

Developing
human resource

WorkSafety

Environment
preservation

Strengthening
corporate
governance

Creating aStrengthening
information corporate culture
system base with job satisfaction
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Quantitative targets - Consolidated Quantitative targets
Net Sales

Vs FY2020
Net Sales

OperatingIncome

Up17 ％

Million Yen

120,000

Operating income

7,700

Operating income ratio

6.4%▼Assumptions

Crude oil (Dubai) $50/barrel
Exchange rate• ¥105／US$• ¥125／€• ¥15／RMB

Segment Information (Summary)

Up49 ％FY2020 Forecast
Operating
Net Sales
IncomeSales

Million Yen

Operating Income

120,000

Net income attributable to owners of the parent

7,700

FY2023 Midterm Business Plan
OperatingNet Sales
IncomeExtrusion

37,5952,576

41,800

2,800

Bead

59,8933,550

72,400

6,000

Other

5,179

96

5,800

100

Sub-total

102,668

6,223

120,000

8,900

Adjustment－△1,038－△1,200102,668

5,185

120,000

7,700

Total

102,668

Million Yen

5,185
5,200
3,017

2015 2016 2017 2018 2019 2020 2021 2022 2023

Income statement (plan)
Net sales

Million Yen

120,000

Operating income

7,700

Ordinary Income

7,900

Net income attributableto owners of the parent

5,200
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Quantitative targets – Four Growth Engines -As part of our growth strategy, we concentrate management resources into
Four Growth Engines, including expanding business domains. We aim to drive
stable and sustainable growth by being both aggressive and defensive while
also seeking to increase management efficiency through a selection andconcentration policy.

Four Growth Engines

Automotivecomponents
Volume vs FY2019

Up23%

Building and homeinsulation materials

FPD protectionmaterials

New businessdomains

Volume vs FY2019

Volume vs FY2019

New Business

Up12%

Expanding demand for
Increased demand forenergy-saving
houses withproducts that meet weight
reduction, energy-saving and high-performance insulation
recycling requirements

Up20%

Increased demand for
LCDs, organic EL panels,personal computers, etc.

¥3billion
Promotion of M&A deals
Promotion ofcommercialization ofexisting promising projects

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Qualitative targets⚫ Improve customer satisfaction through activities inspired by“Deliver with WOW!”⚫ Aim to improve profitability as well as social contributions andrewarding jobs by working on activities for SDGs.
⚫ Build a strategic and efficient corporate organization.
⚫ Prevent lost time incidents by using risk assessment, etc.

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Transformation Strategies

Business Divisions

Living Materials

Bring resource-saving, environmentally friendly PSP
to market

IndustrialMaterials

Strengthen market research and informationcollection to expand overseasConstruction andCivil Engineering
Materials

Improve operational efficiency through digitization,
increase efficiency of pre-cut products, streamlineorder processing, reduce workload and save costs

AdvancedMaterials

Establish mass production of next-generation
products to meet energy-saving demands

EPS

Aim to propose raw materials with new concepts
such as environmentally friendly materials

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Transformation Strategies

Corporate Divisions
General Affairs

Improve the productivity of administrative work by using digitaltechnology to make workflows more visible and automated, and topromote a paperless environment office

Personnel Affairs

Implement various personnel measures, stabilize employment ofsenior workers, and achieve diverse work-life balance. Aim tocreate strategic and efficient organization of corporate divisions.

Public and Investor
Relations

Disseminate information internally and externally in line withsustainable management

Finance & Accounting

Respond to the Electronic Books Maintenance Act and improve
operational efficiency

Information Technology

Promote business automation through the use of RPA (roboticprocess automation) tools in core business system

New BusinessDevelopment

Promote M&A plans

General Technology

Consider activity plans and target setting towards virtually zero
greenhouse gas emissions. Shift from factory management to LCA.

Logistics & Purchasing

Standardize and digitalize logistics operations
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Extrusion Business
Food container material

vs FY2020
Net Sales

80,000 Operating

IncomeUp11 ％Up 9 ％

70,00060,00040,00014,000

Packaging material forindustrial use

2,800

4,000

2,000

10,0000020202023 MidtermPlan➢ Expansion of sales overseas➢ Sales promotion of next generation
MIRAMAT ® ACE➢ Establish a next-generation production
system in Kanuma plants➢ Find new markets related automotive,housing, medical and electronic component
fields

6,000

2,576

「 MIRAMAT ® ACE」

Industrial material related product groups

41,800 Million Yen
8,000

30,00020,000➢ Proposal sales for resource saving products➢ Bring “TEPT-ML”, peelable and heatresistant PSP with superior recyclability, tomarket➢ Market development for non-display
products

10,00037,595「 STYRENE PAPER™ 」「 MIRABOARD™」

12,00050,0003 Change for Growth

Civil engineering andconstruction material「MIRAFOAM™」➢ For major construction companies：
increasing sales of MIRAFOAMTMλ,➢ For detached house：adoption to wall andceiling application➢ Pre-cut products: acquisition of newlarge/medium-sized housebuilders➢ For Non-residential properties：increasingsales of thicker products
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3 Change for Growth Bead Business
Automotive material

vs FY2020
Net Sales
Operating
Income80,000

Up21 ％
Up69 ％Sales➢ Meet energy-saving requirement
by non-pressurization, non-curing
time and high cycle technologies➢ Promote automation and recycling

14,00072,400 Million Yen

70,000Cushioning material

60,000「ELEMPOR ® NEO 」➢ Drastic reduction of energy inmolding➢ Expansion of sales for flat panel
display substrate transportation

12,00059,893「ARPRO® (P-BLOCKTM) 」

10,00050,000
8,000

6,000

40,0006,000
30,000

3,550
4,000

20,000Operating
Income2,000

10,0000020202023 Midterm

Plan

Cushioning material for
sports gear

「STYRODIA ® 」、「CLEARPOR ® ZERO」、「HEATPOR ® GR」etc.
➢ Aim at material proposal withnew concept such asenvironmentally responsive type
➢ Improve profitability bydevelopment and sales offunctional expandable material
and resin

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Investment plan

FY2021～FY2023⚫ Capital investment plan: ¥23.5 billion⚫ Depreciation cost: Approx. ¥20.0 billion (3-year total)

Main Capital spending⚫ Warehouse construction at Kanuma MF Plant as a logistic cost saving plan
⚫ Production capacity expansion for ARPRO® (P-BLOCK) (Korea, Taiwan, India)⚫ Production process improvement in North America

12PAGEDeeper & Higher 2020

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The forecasts in this document are based on available information at thetime of publication. Actual results may differ due to a variety of factors.

Inquiries
Tel: +81(3)-6212-6306

Public and Investor Relations Department

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