September 20, 2022
Central Glass Co., Ltd.

Notice concerning the Fiscal 2022 to 2024 Medium-Term Management Plan and Impact on
Financial Indicators
Central Glass Co., Ltd. (the “Company”) hereby provides notice that at a board meeting held today, theBoard of Directors resolved to conduct a tender offer for its treasury shares (the “Tender Offer”) with
14,285,600 shares as the maximum number of shares to be purchased and 50 billion yen as the maximum
aggregate purchase price, as announced in the release titled Notice of Acquisition of Treasury Shares andTender Offer for Treasury Shares, dated September 20, 2022.
The Company is working to increase its corporate value in order to achieve the Fiscal 2022 to 2024
Medium-Term Management Plan (the “Medium-Term Management Plan”) adopted on May 11, 2022 andbelieves that the Tender Offer will make a considerable contribution to early achievement of the ROE(Return on Equity) target set forth in the Medium-Term Management Plan. On the other hand, this will
constitute an unprecedented restructuring of the Company’s capital composition, and the impacts onfinancial indicators including the impact on ROE and shareholder return targets in the Medium-Term
Management Plan and the improvement effects on EPS (Earning per Share) and other indicators premisedon the completion of settlement of the Tender Offer are summarized below in an effort to deepen theunderstanding of the Company’s shareholders and other stakeholders concerning these impacts; accordingly,
the Company hereby gives notice of these matters
1. Impact of the Tender Offer on financial targets in the Medium-Term Management Plan

Indicator

Financial
indicator
Shareholder
returnpolicy

ROE (Return on Equity)

Fiscal year ending March2025 at the time ofannouncement of theMedium-Term Management
Plan8%

Total shareholder payoutratio
DOE (Dividend on EquityRatio)

Fiscal year ending March2025 after execution of theTender Offer
12%

30% or more

No change

2.4％

3.6%

Even after execution of the Tender Offer, there will be no change to the Company’s fundamental policy
on capital measures as described in the Medium-Term Management Plan, i.e., profits will be distributed
appropriately, based on an allocation of the cash flow generated from operations that is balanced amongshareholder returns, investment, and financial discipline. Furthermore, we will maintain the targets foroperating income and operating income rate in the Medium-Term Management Plan, and if the Companyacquires 14,285,600 treasury shares, which is the number of shares planned to be purchased through theTender Offer, we expect to achieve and exceed the ROE target of 8% set forth in the Medium-TermManagement Plan early in conjunction with the reduction in the Company’s shareholder equity ofapproximately 50 billion yen, and accordingly, we will revise the ROE target for the fiscal year ending
March 2025 to 12%.
1

With regard to the total shareholder payout ratio, we will maintain the target of 30% or more set forthin the Medium-Term Management Plan, and in conjunction with the upward revision of the ROE target
indicated above, we will revise the DOE target for the fiscal year ending March 2025 to 3.6%. Therefore,
with the reduction in the number of shares due to the Tender Offer, as announced in the release titled Noticeof Revision of Dividend Forecast, dated September 20, 2022, we will increase the year-end per-share
dividend for the fiscal year ending March 2023, subject to the completion of settlement of the Tender Offer.
Further, as a result of that increase, we project that the cumulative dividend amount for the three years
covered by the Medium-Term Management Plan will be approximately 10 billion yen.
With regard to the acquisition of treasury shares, under the Medium-Term Management Plan, weplanned to acquire 10 billion yen of treasury shares, and as of September 20, 2022, approximately 4.4
billion yen of shares has been acquired. Moreover, in conjunction with execution of the Tender Offer, theCompany plans to acquire a maximum of 50 billion yen of treasury shares, and since this amount greatly
exceeds the original plan, going forward, we will make comprehensive determinations taking into
consideration the balance of shareholder returns, investment, and financial discipline as well as businessresults, market share prices, and other factors and will consider acquisitions of treasury shares as necessary
and at the appropriate times
The projected impacts on cash flows under the Medium-Term Management Plan from execution of theTender Offer are as set forth below.
Reference: Impact on cash flows from execution of the Tender Offer
Cumulative three-yeartotal at the time ofannouncement of theMedium-TermManagement Plan
24 billion yen

Cumulative three-year
total after execution ofthe Tender OfferDividends(10 billion yen)

(10 billion yen)

Procurement/repayment(4 billion yen)

34 billion yen

Acquisition of treasury
sharesTotal(10 billion yen)

(55 billion yen)

(24 billion yen)

(31 billion yen)Free cash flows
Financial cash flows

No change

2. Impact on financial indicators from execution of the Tender Offer
Based on the business plan for the period covered by the Medium-Term Management Plan, theprojected impacts on financial indicators from execution of the Tender Offer are as follows.

Indicator
Shareholder equity ratio
Net D/E ratio

Projections for the Final
Day of March 2023
57.1%
0.19 times

Projections for the Final
Day of March 2023 after
execution of the Tender
Offer (see note)
38.5%
0.84 times

Projections for the Final
Day of March 2025
42.6%
0.69 times

Note: Calculated by subtracting 50 billion yen from shareholder equity projected to be reported on thebalance sheet as of March 31, 2023 and adding 50 billion yen to the projected amount of interest2

bearing debt.

Indicator

Forecast for TermEnding March 2023

EPS (Earnings per share)

Note:652.71 yen

Forecast for TermEnding March 2023 after
execution of the Tender
Offer (see note)
720.88 yen

Calculated by accounting for 14,285,600 shares, which is the number of shares plan to bepurchased in the Tender Offer.

We believe that even if a maximum of 50 billion yen is allocated to funds for the acquisition of treasury
shares and the Tender Offer is executed, financial soundness and security will be maintained as describedabove and there will be no hindrance to the implementation of the stated business strategies and growthinvestment plans described in the Medium-Term Management Plan. We further believe that even if it isnecessary to bring growth investment forward or to increase investment amounts in response to changes inthe business environment, we will have the financial strength to respond flexibly and agilely.
In addition, as a result of the Tender Offer, EPS, which is calculated by dividing net profit by the total
number of issued shares (excluding treasury shares), is expected to increase from 652.71 yen to 720.88 yenin the fiscal year ending March 2023.
End3