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Notification on Medium-Term Management Plan

The A&A Material Group notifies that it has adopted "Implementing sustainable development and enhancing corporate value" as its Group Slogan and has formulated the "2020 Medium-Term Management Plan," effective from FY 2018 to FY2020.

Under the current Medium-Term Management Plan, the Group will expand the number of high added-value products by aggressively developing, and investing in, new products and new construction methods. Additionally, we will improve labor productivity by reforming the way we work and expand operations by actively adding peripheral businesses to our areas of business.

The Group aims to steadily and reliably implement the management targets set forth in the Medium-Term Management Plan, thus achieving, in FY 2020, net sales of 45 billion yen and an operating profit of 3 billion yen.

Overview of 2017 Medium-Term Management Plan

In the "2017 Medium-Term Management Plan," a three-year plan through to FY 2017, we adopted "Building the foundation for a sustainably developing company" as our Group Slogan and envisioned the period in question as the time to build the foundation for the future development of Our Group. More specifically, we planned to enhance and expand existing businesses, expand our overseas businesses, promote the creation of gratifying and attractive workplaces, improve efficiency among group companies and within each company and fulfill our corporate social responsibility, setting for FY 2017 a target of 2 billion yen in operating profits, which we exceeded by achieving operating profits for 2.4 billion yen.

The Materials Sales Department of our Construction and Building Materials operations entirely renewed the color schemes of decorative silicate calcium boards, a high added-value product, to meet the needs of our customers. Additionally, the Construction Department thoroughly implemented construction cost control. At the same time, in the industrial products and engineering businesses, we achieved considerable growth in the plant-related maintenance business. Our rollers for conveying high-heat-treated materials, an original product, attracted new overseas customers. In the automotive-related business, in addition to a moderate recovery of capital investment, mostly in the Asian region, in the friction materials-related industrial machinery field, we also succeeded in improving productivity.

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