February 14, 2022

Dear all

Company name

Ultrafabrics Holdings Co., Ltd

Representative name

Noboru Yoshimura

Representative Director & President

Code No.

4235 (JASDAQ)

Contact

Mika Takano

General Manager, Corporate Planning

Department

Telephone number

042-644-6515

Notice Regarding Formulation of the Medium-Term Management Plan

We are announcing the formulation of a new medium-term management plan (FY 2022 - FY 2024) beginning with the fiscal year ending December 31, 2022.

Description

The company has been working on various initiatives based on the medium-term management plan (FY 2021

  • FY 2023) announced on February 15, 2021, considering this period as the time to aim for the next growth stage from the completion of business integration.
    The financial results (consolidated) announced today for the fiscal year ended December 31, 2021, shows that both sales and profits for the fiscal year ended December 31, 2021, exceeded the initial forecast, mainly due to higher-than-expected sales volume from the automobile sector in the wake of favorable vehicle sales. The company has reached a level close to the performance targets set for the next one to two years. Our company has formulated a new medium-term management plan (FY 2022 - FY 2024) considering these performance trends and the current changes in the company's environment.

2022-2024Medium-Term Management Plan

Performance targets for the period ending December 2024: Sales revenue 22.5 billion yen, Operating income

3.1 billion yen and EBITDA 4.9 billion yen

(1) Multiple growth streams

(2) Increase corporate financial value by increasing sales volume and improving profitability

(3) Enhancing non-financial corporate value by focusing on sustainability

For details, please refer to the attached document.

If you have any questions regarding this matter, please contact Takano, Manager of Corporate Planning Division, at 042-644-6515.

- 1 -

Note: The forward-looking statements, such as performance forecasts, included in this document are based on the information currently available to the company and certain assumptions deemed as reasonable by the company, and the company does not promise that these forecasts will be realized. Actual performance may differ significantly due to various factors.

End of document

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Ultrafabrics Holdings Co., Ltd.

2022-2024Medium-Term Management Plan

February 14, 2022

1

2022-2024Medium-Term Management Plan (1)

Progress of the Previous Medium-term Plan

(million yen)

16,000

Sales revenue

EBITDA

Operating income

Net income

EBITDA margin (right axis)

25%

14,134

14,500

14,000

13,300

13,400

12,000

20%

12,000

10,000

10,000

15%

8,000

6,000

10%

4,000

3,058

3,200

3,500

2,600

5%

2,300

1,502

1,800

2,100

2,000

1,000

1,200

1,481

1,260

986

1,050

406

500

35

600

0

0%

FY 2020

FY 2021

FY 2021

FY 2021

FY 2022

FY 2023

Results

(2/15/2021 forecast)

(8/13/2021 revised

Results

(2/15/2021 forecast)

(2/15/2021 forecast)

106.8 yen/$

106 yen/$

forecast)

109.4 yen/$

109 yen/$

109 yen/$

107.9 yen/$

  • In FY 2021, sales exceeded the initial plan by 17.8% and operating income exceeded the plan by 48.1%. The level of sales is almost at the target set for FY 2023.

2

2022-2024Medium-Term Management Plan (2)

Policy

  • 2024 Annual Performance Targets
    • Sales revenue 22.5 billion yen, Operating income 3.1 billion yen and EBITDA 4.9 billion yen
  • Multiple growth streams
    • Create a comfortable space in various settings such as houses, automobiles, airplanes and recreational facilities
    • Pursue "comfort" in the form of design, texture, safety, cleanliness and sustainability
  • Increase financial corporate value by increasing sales volume and improving profitability
    • Renewal of out-of-date production facilities, increase in production capacity and conversion to sustainable plants
    • Expansion of production capacity, including that of partner companies
    • Improve profitability by reviewing the portfolio by product
    • Improvement of production efficiency
  • Enhancing non-financial corporate value by focusing on sustainability
    • Development of sustainable products using bio and recycled materials
    • Set and promote sustainable goals in production processes
    • Share sustainable goals with partners

3

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Ultrafabrics Holdings Co. Ltd. published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2022 07:23:01 UTC.