Medium-Term Management
Plan for FY 2022 to 2024
May 11, 2022
Central Glass Co., Ltd.
Some figures relating to the Financial Goal and Capital Policy havebeen revised to reflect the changes described in the "Noticeconcerning the Fiscal 2022 to 2024 Medium-Term Management Planand Impact on Financial Indicators" published on September 20, 2022.
Such figures have been indicated with asterisks (**).

Table of Contents
1. Corporate Philosophy
2. Long-Term Vision
3. Medium-Term Management Plan for FY 2022 to 2024
(i) Basic Policy(ii) Financial Goals(iii) Capital Policy(iv) Overview by Business(v) R&D Policy(vi) Measures toward the Global Environment(vii) Measures toward Improving Quality Awareness１．Corporate Philosophy《Basic Philosophy》*Monozukuri refers to all the business activities in which the Central Glass Group engages with a basic
stance of integrity and sincerity, including R&D, quality oriented manufacturing, and sales.

＜Corporate Philosophy System＞

Corporate Philosophy
Basic Philosophy
Basic Policies

Code of Conduct

Mid-term plan

Sustainability

2. Long-Term Vision
Continuously Growing Company Driven by New
Technologies and New Products Created through R&D

Establish a Profitable Business Model and Convert to a
Highly Profitable Company

Basic Measures to Realize the LongTerm Vision◆Strengthen R&D as a growth driver⚫Utilize core (fluorine) technologies to drive development of functionalmaterials⚫Accelerate acquisition of technologies in new fields with open innovation◆Clarify roles of each business and optimize the business portfolio⚫Allocate investment and resources by priority to the growth and fostering ofbusinesses and core businesses⚫Further increase the ability to create cash in matured and cash-cow businesses,
which stably create cash and secure funds for growth investment⚫Establish restructuring targets for applicable businesses, including optimization ofbusiness size, for revival into a cash creation businessBusiness Portfolio
Growth(i) <Businesses to grow and foster>
Fostering and growth of businesses
through investment- Basic Chemicals (*HFO products)- Specialty chemicals- Commercialization of priority researchareas(iv) <Businesses to be restructured>
Structural reform and rebirth of theability to generate cash
- Architectural glass, automotive glass- Fertilizer(ii) <Core businesses>
Increase in earnings capability throughaggressive investment andestablishment of supply chain- Electronic materials- Energy materials(iii) <Matured and cash-cow
businesses>
Further increase in business efficiency
and the ability to create cash
- Medical chemicals- Glass fiber

Profitability(*) HFO: Hydrofluoroolefin (Products that have low global warming potential (GWP) and comply withregulations on chlorofluorocarbon)

3. Medium-Term Management Plan for
FY 2022 to 2024

(i)-1 Basic Policy
1. Achieve new growth by strengthening our business foundations and originaltechnologies◼ Return to a growth path・ Concentrate managerial resources to the businesses to be grown in order to accelerateestablishment of profitable business models and business expansion to growth markets
・ In the chemicals business, harvest the fruits of previous investments and continue
further investment for the future
・ In the glass business, complete the structural reform and evolve toward profitablebusiness・ In other business, further increase earning capability and maximize free cash flow
◼ Continue strengthening R&D to ensure future growth◼ Provide stakeholders with reassurance and reliability by increasing all employees’ quality
awareness

(i)-2 Basic Policy
2. Maintain a healthy financial base◼ Distribute cash flows based on a well-balanced consideration of shareholder returns,investments, and financial discipline

3. Contribute to the global environment◼ Reduce greenhouse gas emissions◼ Provide products and technologies that contribute to reducing environmental burden

(ii) Financial Goals
ROE goal in the Medium-Term Management Plan:
Aim for achievement of 12%** ROE
FY 2021
Results
Operating Profit (100 million yen)73
Indicator

Financial goal

Major item
Financialindicator

Operating Profit Ratio
ROE

Shareholder Total Return Ratio
returns
Dividend on Equity (DOE)

FY 2024
Target1404%8%(27%)

12%**ーAt least 30%

2.1%

3.6%**

4%6%(Ref.) M anagement
ROICindicator◆Capital investments: 41.0 billion yen (3-year cumulative total)◆Cost for R&D: 24.0 billion yen (3-year cumulative total)<Assumptions of Medium-Term Management Plan>

Exchange rate
Crude oil (CIF)

JPY/USD: 110
USD 102/barrel• Chemicals business shows a trend of earnings growth• Glass business is returning to being in the black

Trend in operating profit (by segment)
160＜<Period of this Medium-Term

Operating Profit (100 million yen)

140

Management Plan>＞

120
10080
60
40
20
0-202015

2016

2017

2018

2019

2020

2021

2022

-40
GlassChemicals

Operating Profit Total

2023

2024

(iii) Capital Policy
Seek a capital structure focusing on optimization of investment
and funding with the aim of maximization of enterprise value<Basic policy for capital policy>
Funding

Stably and systematically raise funds through a
combination of appropriate methods, taking into
account the balance between funding cost andcontinuity (risk)

Manag Inject capital to selected sources generating profits
ement exceeding funding cost and cash flow exceeding(Invest invested capital
ment)
Distrib Distribute generated cash based on a wellution balanced consideration of shareholder returns,
investments and financial discipline(Unit: 100 million yen)
Operating CF
Capital Investment
Sales of assets
Investment CF Total
Free CF
Dividend
Funding/repayment
Acquisition of treasury shares

Financial CF Total

3-y earcumulativ e total

480(410)
170
(240)
240

(100)**
340**(550)**(310)**

<Policy for shareholder returns>◆Total Return Ratio: At least 30%◆DOE (Dividend on Equity Ratio): 3.6%**◆Acquisition of treasury shares- Fundamentally based on the dividend criterion DOE and the dividend amount based on total shareholder return
ratio and adjusted as needed- Allocate about 50% of funds raised by sales of shares in the FY 2022 plan to acquisition of treasury shares<Major investments>◆ Chemicals(100 million yen)

- Invest in commercialization of priority research areas(power semiconductor materials: From research to mass production facility)- Electronic materials: Construct new product facilities and increase capacity- Energy materials: Secure the ability to purchase raw materials (invest in supply chain)
Expand manufacturing bases◆ Glass
Invest mainly in maintenance and renewal within operating cash flow
(Keep free cash flow positive)

400
300
200
1000

[3-year cumulative total]

CapitalInvestments
Glass

Depreciation
Chemicals

(iv) Overview by Business (FY 2022 to 2024)

Chemicals business(Businesses to grow and foster)〇 Basic Chemicals (Hydrofluoroolefin products such as fluorine cleaning agents and solvents, etc.)<Market> Expecting a high market growth of HFO products because of their low global warming
potential and high environmental performance- For blowing agents among HFO products, secure revenues through stable supply- For cleaning agents among HFO products, expand the production capacity and develop market bystimulating demand- Implement R&D of new HFO products and enter new markets

(iv) Overview by Business (FY 2022 to 2024)
Chemicals business(Businesses to growand foster)〇 Specialty chemicals (Active intermediates for agrochemicals and fluorine organic/inorganic compounds, etc.)- Consolidate production bases and improve revenues by reviewing sales strategy- Keep margin through price rise and sell new products including materials for resists- Share needs by deepening the relationship with customers and develop high value-added
products using core technology (fluorine technology)

(iv) Overview by Business (FY 2022 to 2024)
Chemicals business(Core businesses)〇 Electronic materials(Products for electronic materials such as specialty gas-related products for semiconductor applications)<Market> Demand is expanding for semiconductor materials as the semiconductor market expands.
- Reliably obtain demand by launching R&D institutions located in consumption areas to deepen therelationship with customers- Promote sales of high value-added products created by R&D such as etching gas in cooperation withequipment manufacturers- Advance R&D and commercialization of new products and commercialize products (such as SiCbusiness) other than the core gas products

(iv) Overview by Business (FY 2022 to 2024)
Chemicals business(Core businesses)〇 Energy materials (Electrolytes for Lithium-Ion batteries, etc.)<Market> The market of electrolytes for Li-ion butteries is significantly expanding with the expansion of the EVmarket.

- Place production bases in Japan, Europe, and Asia to meet user needs- Establish the supply chain through joint ventures, secure materials, and realize stable supply- Implement R&D of high-performance additive agents for differentiation and increasing competitiveness- Grow customer base with high performance products and the ability to secure raw materials

(iv) Overview by Business (FY 2022 to 2024)
Chemicals business(Matured and cash-cowbusinesses)〇 Medical chemicals (Active ingredients & intermediates for pharmaceuticals such as anesthetics)<Market> There is a sign in the pharmaceutical-related market that the slump after the onset of
COVID-19 will end.
- The core product holds a certain level of share despite competition with competing and genericproducts.
It has the advantage in low global warming potential over competing products.
- Explore for and commercialize the next core products through aggressive R&D

(iv) Overview by Business (FY 2022 to 2024)
Glass business(Matured and cash-cow
businesses)〇 Glass fiber (Resin-reinforced materials and automotive sound-absorbing materials, etc.)- Glass fiber: Strengthen earnings power through selling optimum product mix suited to needs
Advance development of new products- Glass wool: Sell products focusing on automotive applications
Increase promotion of high value-added acoustic absorbents

(iv) Overview by Business (Structural Improvements in Glass Business)
Glass business(Businesses to berestructured)<Overseas glass business>- Determined the transfer of the automotive glass businesses in the United States and Europe inFY 2021
Concentrate the structural improvements in glass business to domestic business<Domestic glass business>- Suspended two furnaces among four furnaces for flat glass production in FY 2021
- Consolidate sales and processing bases for architectural glass

(iv) Overview by Business (FY 2022 to 2024)
Glass business(Businesses to berestructured)
Split the glass business (architectural glass and automotive glass) from the Company during FY 2022
Optimize business scale and regenerate the business as a cash creation business〇 Architectural glass (Insulating glass and mirrors, etc.)- Implement and complete fixed cost reduction by matching production to demand and establishing a sales structure
Keep the upward trend in profitability by covering the increase in raw material and fuel costs through revision ofpricing〇 Automotive glass (Laminated glass and tempered glass)- Pass through increases in raw material and fuel costs to pricing- Realize improvement in profitability by optimizing business scale to demand and reducing costs

(iv) Overview by Business (FY 2022 to 2024)
Chemicals business(Businesses to berestructured)〇 Fertilizer (Controlled-release coated fertilizer, etc.)<Market> A downward trend in area under tillage resulting from the aging of farmworkers and farm retirements- Secure stable sales mainly through coated fertilizer which compensates for the aging of farmworkers
by saving labor- Advance R&D of environmental-friendly fertilizer consistent with the Resource Circulation Strategy for Plastics

(v) R&D Policy◼ Focus areas
Electronic materials, energy materials, and priority areas of corporate research (*)<Priority areas of corporate research>
Area

Theme for development

Open innovation

Energy saving

Next-generation power semiconductor materials

Universities and national projects

Medicalmaterials

Medical materials and drug development using thespecific protein solubility of our fluorine compound

Universities, national projects,ventures and satellite research
centers

Carbonneutrality

Related materials using the core technology for
manufacturing micro-particulates, and catalysts

Universities and national projects(*) Corporate research refers to the long-term research exploring for new areas in foundation research.
Expansion into unprecedented areas with our core technologies + open innovation, and sustainability-conscious
R&D planning◼ Aggressively inject R&D resources toward solution proposition for customer needs (such as potential
needs, performance improvement and environmental burden reduction)◼ Strengthen functional materials business by improving application development technologies(performance assessment and data science) (expansion of applications of our original compounds)Electronic materials field■ Development of the next-generation
semiconductor materials*Create new functional materials realizing the next-generation
process in cooperation with the cutting-edge research institutions
for meeting requests of semiconductor and equipment
manufacturers in the world

imec(Belgium)(Taiwan research center)

National Cheng
Kung University(Taiwan)

Energy materials field■Development of custom-made electrolytes
for Li-ion batteries*Create custom-made electrolytes meeting customers’
requests
Customers’ requests

Molecular design
Additive agent
database
Battery evaluation

Semiconductor andequipment manufacturers(research institute)(Japan, United States, Taiwan,
South Korea and China)■ Development of environmentfriendly semiconductor materials*Proposal for environment-friendly nextgeneration materials and process- Low GWP etching gas

Application: For EVs, PHVs, HVs, electricity
storage systems, etc.
Performance: Long life, high output, lowtemperature resistance, high temperature
resistance, etc.

Solution proposal■Development of post-Li-ion batteries*Explore for Li-ion battery alternatives to support theenvironment and diversification- Li-metal batteries- Co- and Ni- free batteries- Na-ion batteries

- Product Business Model Based on R&D“Commercialization of SiC”

Under our corporate research system where new areas are widely explored, we focus on next generation power
semiconductor materials and SiC, which contribute to improvement in performance of rapidly popularizing EVs. We haveadvanced R&D of solution techniques with superior quality, and we are close to establishing mass production techniques forsix-inch ingots. Eight-inch ingots were adopted by the NEDO Green Innovation Fund, and development was started. Also, forwafers, we are accelerating R&D towards commercialization.
Characteristics of SiC power semiconductors: Possible to significantly reduce the loss of energy at conversion of power→ Can contribute to realization of a carbon-neutral society
Commercialization

Eight- and six-inch diameter ingots and wafers
Sequential expansion of sales

Wafer production technology development(including optimization of cutting and polishingprocesses)

R&D

Eight-inch diameter ingot development(including diameter enlargement, quality
improvement and validation of mass production)
Six-inch diameter ingot development(including quality improvement and mass production)

2020<Characteristics of solution technique>- Ease of reducing faults in crystal quality- Able to elongate crystals

2022
Adopted by NEDO Green Innovation
Fund (eight-inch diameter)

2030

Intellectual Property Strategy(Advance a three-pronged strategy along with business and research and maximize earnings)◆ Intellectual property department plays the role of creating and using intellectual property rights
and respecting the intellectual property rights of other companies.
◆ Intellectual property department contributes to present and future profits of the Company throughintellectual property rights in cooperation with business and research departments.

Business strategy

Research strategy⚫ Potential and existing requests ofcustomers⚫ Competitor trends⚫ Themes directly related to business⚫ Corporate research⚫ Open innovation

Intellectual property strategy⚫ Evaluation of business trends and intellectual property rights (of theCompany and other companies)⚫ Establishment of patent strategy in line with the Business strategy⚫ Surveys to prevent violations of intellectual property rights⚫ Periodic survey on uses of intellectual property rights⚫ Contracts that take into account the Patent Act and related acts

(vi) Measures toward the Global Environment
Reduction in Greenhouse Gas (GHG) Emissions
Challenge to realize net-zero GHG emissions in 2050
(Scope 1 + 2)
Milestone reduction goal for GHG emissions in 2030 (vs. 2013)◆Our goal (our group total volume): reduction goal of 40%*For automotive glass businesses in United States and Europe (agreed to be)transferred, all has been deducted after 2013, the criterion year for comparison.

2013<GHG-reducing technologies in manufacturing
processes>- Fuel conversion (including LNG and total oxygencombustion)- Waste heat recovery- Production efficiency by effectively using by-products

2030

2050

<GHG-reducing products on the market> (*outside the scope of emission
reduction of the company)- Architecture glass (heat and sound insulation) and automotive weightreducing thin laminated flat glass- Products with low global warming potential (including next-generation
fluorinated cleaning agents)- Power semiconductor materials

(vii) Measures toward Improving Quality
Awareness
Become an organization giving reassurance and reliability to stakeholders by ensuringprovision of products and services meeting the needs of customers and society<Permeation of quality culture>
Quality management (system)
Qualitypromotion
meetings

Group Quality Compliance Committee

Emergency
response
meetings

Corrective
actionmeetings

Quality management (operation)- Strengthen and maintain the quality assurance
system through multilayer audits (including auditsof suppliers)- Immediately deal with issues through operation ofthe quality issue reporting line
(Priority measures in the Medium-Term
Management Plan)- Improve quality activities through thorough daily
management and promotion of improvement
activities- Develop human resources supporting quality
activities by improving quality education

Cautionary Note
The Company’s plans, strategies, and expectations for future
performance are contained in this material. Such plans are basedon economic conditions, market size, and business policies
available to the Group’s management and presuppositions thatthe management considers reasonable as of May 11, 2022. The
Group does not provide any guarantee whatsoever regarding thefeasibility and certainty of these statements.
The Group accepts no responsibility for any consequenceresulting from the use of the information in this document.