JGP2020: 3 Basic Policies (priority issues)
JGP2020: Lay foundations look ing ahead to 2030
“Growth” in Industrial Machinery Products Business,“Rebirth” in Steel and Energy Products Business(1) Optimize management resources and strengthen alliances		 Rationalization through reallocation of management resources		 Actively invest in Industrial Machinery Products Business and restructure Steel and Energy 					 Products		 		 Business according to sales		 Scale up business by promoting alliances and M&A		 Move away from principle of self-sufficiency(2) Strengthen after-sales services (stock-based business)		 Strengthen foundations of service structure focusing on Industrial Machinery Products Business				 Generate stable profits and increase customer satisfaction				 Build strong customer base through service business		 Lay foundations for next businesses(3) Increase exploration and fostering of new businesses		 Explore new businesses with an eye on megatrends
Foster and develop business mainly in four areas: aircraft components, hydrogen, crystal devices, and 		deposition systems

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Aircraft

Hydrogen

Crystal

Deposition system

Under the guidance of a partnercompany, JSW will build a factory
for aircraft components, makecapital investments and acquirecertification to produce cladding
metal products and multi-materialproducts at Muroran. JSW will
construct a mass production
system for multi-material products
for commercial aircraft for which
demand is expected to grow in thefuture.

JSW will expand and step up thehydrogen station business centered on pressure accumulatorsand compressors, incorporating its
own hydrogen-resistant material
technologies. JSW will spread MH
tanks based on hydrogen storing
alloy technologies into thedomains of energy storage andsupply systems and fuel cellapplications.

The development of infrastructure
and terminals ready for thefifth-generation communication
standard (5G) is gathering pace.
The applications of crystal materials have expanded in the areas of
optical communication, wirelesscommunication and sensing. JSW
is working to develop composite
substrates for SAW devices, composite substrates for optical communication and gallium nitride(GaN) crystal substrates matchedwith the aforementioned
applications.

The electron cyclotron resonance(ECR) deposition system deposits
high quality films such as semiconductor laser coatings with expanding applications and protection
layers for electronic devices. JSW
will work to further expand sales of
ECR systems and broaden thelineup of different deposition
systems for wafers, including
atomic layer deposition (ALD)
systems and electron beam evaporation systems.

J GP2020: 3 B asi c Poli ci es (pr i or it y issu e s)

Based on the basic policies listed on page 6, we intend to steadily promote the following business strategies.

Industrial Machinery Products Business
Basic strategy in the JGP2020 plan for the Industrial Machinery Products Business is to sow the seeds
and nurture them to expand business domains through “offensive management.”
Primary business strategies are listed below.
Film and sheet equipment
Reinforce production facility as soon as possible in response to robust demand mainly for use in manufacturing
separator films.
Strive to expand business in the areas of packaging materials, industrial materials and optical applications as
a comprehensive film equipment manufacturer.

Injection molding machines
Establish a solid JSW molding machine brand power through mass customization strategy*.

* Mass customization strategy
Provide differentiated, customized machines based on a common base to meet the needs of areas and customers.

Improve the degree of customer satisfaction through proposal-based services utilizing the Internet of Things (IoT) andother technologies as well as aim for higher profitability through preventive maintenance and repair.

Laser plasma related equipment
Strive for further improvement of profitability by strengthening product competitiveness through differentiation ofexisting products and by expanding service businesses.
Create new products related to flat panel displays by securing competitive core technologies.

Steel and Energy Products Business
Basic strategy in the JGP2020 plan for the Steel and Energy Products Business is to aim for stableprofitability for existing products at the current business scale as well as to explore and promote early
development of new growth opportunities.
Primary business strategies are listed below.
Collaboration with Tsukishima Kikai Co., Ltd.
Establish structure for collaboration with Tsukishima Kikai to commence factory operation at the Muroran Plant from
April 2019.

Improvement of fixed costs
Continue to implement measures to achieve cost structure reforms aligned with the scale of sales, including further
restructuring at the Muroran Plant group.

Rapid launch of new businesses
Aim for establishing a future-oriented growth foundation by developing new businesses that will replace existingproducts while leveraging the Muroran Plant’s long-accumulated expertise on steel and other materials.

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