Medium Term Management Plan

Issues on Mid-to Long-Term Management

1. Accelerate the global expansion of existing businesses; capture demand in emerging markets, placing stronger priority on greater Asia; improve profitability and strengthen our business foundation.

2. We will enhance our marketing, product planning and sales capabilities, provide exciting products based on market trends and a user perspective, and work to expand our business through increased market share and other approaches with sales strategies adapted for each market.

3. Besides expanding existing businesses, we will step up the creation of new businesses through enhanced marketing focused on the "resolution of social issues" in line with the guiding principles of the SDGs, and collaborative creation, including through M&A.

4. To respond to severe changes to the external environment, we will reinforce our development structure in China, work to shorten lead times from development to mass production, and deliver new products that meet customer needs in each market in a timely fashion.

5. Construct a global trilateral system for efficient production and promote increased productivity and cost reductions through smart factory automation, labor saving and manpower saving, among other means, with the fourth industrial revolution in mind.

6. In addition to the development of component technologies, especially the Company's core optical technologies, focus on research and development in new technical fields, the joint creation of new values and other horizontal operations among multiple companies (including collaboration among government, industry and academia).

7. Realize sustainable growth by strengthening corporate governance to enhance the effectiveness of strategies/tactics.

8. Create a workplace environment where all employees can maximize their potential, in order to improve work-life balance, promote diversity, and develop employee talent.

9. Curtail greenhouse gas emissions and promote recycling as climate change countermeasures to help achieve a sustainable global environment.

Mid-Term Management Plan ”Vision23”

The Group formulated the Medium Term Management Plan for the period until the fiscal year ending December 31, 2023 and aims to achieve its targets. The Group also set an ROE target in consideration of the capital cost and other factors.

Role of Mid-Term Management Plan”Vision23”

Basic Strategy of ”Vision23”

Financial Target of ”Vision23”

(Announced February 2021)

Sustainability and ESG Initiatives The Value Creation Process