Medium-Term Management Plan, "Value Up 2023"

Fiscal Year 2021 – 2024

Establishing a presence in the industry as a Solution Creator

Under the new medium-term management plan, Value Up 2023, we will further enhance our earnings structure and financial base by strengthening internal management of capital efficiency. While enhancing SCREEN Value (corporate value), which comprises the Sustainable Value (social value) and the economic value, we will continue working to sustainably generate profit, return profit to shareholders, and take other measures. In addition, in a proactive effort aimed at reaching the next level of growth, we will continue pursuing various options to achieve growth, such as resource allocation, open innovation and M&A.

 *A Solution Creator refers to a company that enhances corporate value by contributing to the
  development of society and providing customers around the world with technologies, products
  and services that solve social issues and needs.

Main Initiatives

1. Enhance corporate value by creating innovation and a sustainable growth cycle
 ・Focus on strategic development investment and strengthen the business portfolio
  by promoting open innovation and M&A
 ・Endeavor to create new businesses (Ex. life sciences, inspection & measurement,
  energy, and AI)

2. Generate cash flows equivalent to profits which are earned in pursuit of
  profitability and efficiency

 ・Enhance capital efficiency on each business by introducing ROIC indicators
 ・Strengthen investment in growth fields by stably generating operating cash flows

3. ESG Initiatives for Sustainable Corporation
 ・Formulate a medium-term plan, Sustainable Value 2023, based on Sustainable Value
  (social value) policy for socially sustainable development and execute the plan

 E: Reduce environmental impact through business
 S: Create a great place to work and involve in solving social issues
 G: Strengthen risk management and business continuity plan
  * ESG stands for environmental, social and governance.

Numerical Targets of Economic Value (updated on July 27, 2022)

1. Net sales
  Achieve net sales of ¥500 billion or above in the final year
2. Operating Income to Net Sales Ratio
  Achieve 17% or above in the final year
3. ROE
  Achieve 20% or above in the final year
4. Operating Cash Flow
  Cumulative total of ¥240 billion in 4 years

5. Shareholder Returns
  Achieve a consolidated total return ratio of 30% or above from FY2022

   * The above figures are predicated on organic growth.
    ** We revised the numerical targets which originally planned. 
       For details, please refer to "Notice: Revision of Numerical Targets of the Medium-Term
   Management Plan", disclosed on July 27, 2022.

The aforementioned future figures are based on information currently available to the Company and on certain assumptions determined to be reasonable. Actual results may differ significantly due to various factors and the Company does not intend to guarantee the performance of these goals.