Medium Term Management Plan "Revival Plan 24 (RP24)"

Main Initiatives and Financial Targets of RP24

1. 1. Main Initiatives of RP24

   In RP24, we will execute the following "Three Reforms" and "Two Key Initiatives" decisively and build business strength to sustain the cycle of growth

   Three Reforms:

   (1) Cost structure reform	Fundamental cost structure reform including headcount reduction, fixed cost reduction and procurement cost reduction will be executed to lower the cost base further
   (2) Business structure reform	Expansion of value-added business, development of new growth businesses, and emphasis on investment and asset efficiency to transform business structure and sustain the cycle of growth
   (3) Corporate culture reform	Value "customer focus", "swift decision making and action" and "overcoming difficulties", and transform into a company group that never fails to take up challenges and follow through to deliver results

   Two Key Initiatives:

   (1) Restoration of financial stability

   Focus of growth investment on strategically core businesses and selectively allocate and prioritize other capital expenditure Thorough review of cost and improvement of productivity to build a robust business that can generate profit and free cash flow constantly Generation of free cashflow and net profit aiming to enhance equity, while proactively reviewing further enhancement of equity from a longer term viewpoint

   (2) Transformation into more profitable business portfolio

   Bold strategic review of shrinking or exiting non-core businesses Focus of management resources on growth and high value-added areas, considering investment and asset efficiency Business profitability improvement and management cost reduction to establish the cycle of sustained growth

2. 2. Financial targets for the final year of RP24 (FY2024) are as follows: