UACJ : Fourth Mid-term Management Plan for Fiscal 2024 to 2027

FY2024 to FY2027

Fourth Mid-term Management Plan

Building and connecting for a lighter world

May 13, 2024

UACJ Corporation

© UACJ Corporation. All rights reserved.

Contents

1. A Better World, Made by the UACJ Group	P. 2
2.	Review of Previous Mid-Term Management Plan	P. 10
3. Fourth Mid-Term Management Plan	P. 13
	3-1.	Overview	P. 13
	3-2. Major Policies	P. 21
	3-3.	Business Strategy	P. 39
	3-4.	Toward Management Conscious of Cost of Capital and Stock Price	P. 49
4.	Reference Material	P. 53

© UACJ Corporation. All rights reserved.

1

1. A Better World, Made by the UACJ Group

© UACJ Corporation. All rights reserved.

1. A Better World, Made by the UACJ Group

A World Where People and Companies Are Changing

In a changing world, mindsets are also changing toward the need for reduced environmental impact and corporate action to achieve this

A changing world

An increasingly polarized world

with rising tensions

Large-scale climate

change-related disasters

Stronger sustainability laws and regulations

Resource depletion

Uncertainty in economic trends,

energy shortages, and rising prices

Changing individual mindsets toward the need for reduced environmental impact

Eco-minded purchase behavior

Promotion of recycling	Reduction of food loss
Spread of eco-friendly	Shift away from plastics
vehicles

Changing corporate mindsets toward the need for reduced environmental impact

Supply of products with excellent recyclability

Conservation of water resources Initiatives for carbon neutrality

Initiatives for energy conservation and creation

© UACJ Corporation. All rights reserved.

3

1. A Better World, Made by the UACJ Group

The UACJ Group Philosophy System

UACJ Group

Philosophy

The UACJ Way:

Our Guiding Principle

Our Purpose

Contribute to society by using raw materials to manufacture products that enhance prosperity and sustainability.

Our Vision

Aluminum is our passion. It inspires our work in building a better world and a healthier environment.

Our Values

The UACJ Way: Our Guiding Principle

Respect and understand your associates

• Value and contribute to your workplace's efforts to engage with the local community
• Accept diversity and respect people's values
• Communicate openly with your coworkers while placing importance on individual and team development
• Contribute to making your workplace more positive and dynamic

Embrace honesty and foresight

• Follow the Group's 5-gen principle*
• Sincerely respond to the expectations of stakeholders by helping the Group manufacture genuine products with integrity
• Stay ahead of emerging trends and play an active role in protecting the environment

Be curious and challenging

• Be inquisitive about changing trends and take on challenges while helping the Group provide products and services needed by society
• Aim to be creative and innovative in your work with a forward-looking perspective

© UACJ Corporation. All rights reserved.

* The 5-gen principle is a concept used by manufacturers in Japan that stresses the importance of the place where relevant activities happen (genba),	4
relevant things (genbutsu), actual conditions (genjitsu), know-how (genri), and rules (gensoku)

1. A Better World, Made by the UACJ Group

The UACJ Group Sustainability Compass: Guiding the UACJ Group to Make a Better World

Passing down a "Brighter World" over the next century

Aluminum is a fundamental material that supports our daily lives.

It is a material that is freely transformable in its shape and has unlimited potential.

It can be eternally recyclable as the same product over and over again.

This is the unique characteristic of aluminum.

So to speak, aluminum is the sustainable material.

The aluminum's potential has been maximized by the UACJ Group who has the cutting-edge technologies and seasoned expertise.

We realize a future in which the Earth can continue to be beautiful and bountiful with the wisdom and the passion for technologies and expertise we have built up over the years.

That make us be rewound that our business is to be environmentally friendly, and to be approached to solve the various challenges our society on the global has faced.

We contribute to create a healthy and harmonious society where everyone can feel

Well-being.

Each of the UACJ Group's people respect diversity, act to create synergy from the

diversity together with all of stakeholders and local community.

A brighter tomorrow with aluminum.

A beautiful planet and a sustainable society for the next generation of the future.

This is what the UACJ Group believes the "Brighter World" is all about.

© UACJ Corporation. All rights reserved.

5

1. A Better World, Made by the UACJ Group

The UACJ Group's Material Issues

Five material issues for creating value unique to the UACJ Group

Creating a better world through business

Leaving a lush, blue Earth for future generations

Aiming to realize a sustainable global environment

Addressing climate change

Driving a circular economy in aluminum

Conservation, restoration, and nurturing of nature

(Nature-positive)

Seeking well-being (fulfillment, happiness, and harmony)

Seeking prosperous, harmonious societies

Aiming to spread the happiness of each employee to their families and humanity at large

Respect for human rights

Instilling diversity, equity, and inclusion

(DE&I)

© UACJ Corporation. All rights reserved.

6

1. A Better World, Made by the UACJ Group

Ideals in the UACJ Group's Long-term Roadmap, UACJ Vision 2030

Building a sustainable world by using aluminum to reduce environmental impact

	Flat
	rolled
	products	Extruded
Solid		products
customer		Automo
base			-tive
			parts
Group's	Diverse
processing and
foundations	Foil
machining
	capabilities
Human
resources			Casting
			and
Technology Corporate			forging
culture	Three-country

supply Processed

network goods

Basis for Safety, quality, business compliance and activities corporategovernance

© UACJ Corporation. All rights reserved.

	Provide
Create added-	solutions for
value products	issues facing
	society

Material Issues

Driving a circular economy in aluminum

Addressing climate change

Conservation, restoration, and nurturing of nature

(Nature-positive)

Respect for human rights

Instilling diversity, equity, and inclusion (DE&I)

Backcasting

UACJ VISION 2030

• Provide products that contribute to societal development by capturing demand in growing industries and markets
• Enhance aluminum materials to bring economic benefits to communities worldwide
• Develop all-new products and business models that offer solutions for challenges facing society
• Helping to reduce environmental impact throughout product life cycles

Mobility		Lifestyles and		Environment and
	healthcare		energy

Contribute to efficient	Provide beneficial	Reduce emissions and
and user-friendly	products for daily life
facilitate recycling
transportation	and work
		7

1. A Better World, Made by the UACJ Group

UACJ Vision 2030 Financial Targets

	FY2030 target	(Reference)
	Initial announcement (May 2021)

Net sales	¥1.1 trillion or more	¥800 billion or more
		(Revising ingot price / forex assumptions)
Business profit	6% or more	6% or more
on net sales
	(Operating margin on net sales)
ROIC	10% or more	10% or more
(Calculated based on pre-tax
business profit)		(Calculated based on pre-tax operating income)
ROE	10% or more	10% or more

(Assumptions)

LME ($/ton)	2,200	2,100
Forex (yen/$)	140	104

© UACJ Corporation. All rights reserved.

8

1. A Better World, Made by the UACJ Group

UACJ VISION 2030 Major Non-Financial Targets

	FY2030 target
Driving a circular economy	UACJ recycling rate
in aluminum	80%
	Reduction rate of CO2 emissions 30%
Addressing climate change	(Scope1 and 2, vs. FY2019, intensity basis)
Reduction rate of Scope 3 emissions 30%
	(Category1, vs. FY2019, intensity basis)

Conservation, restoration, and nurturing of nature

(Nature-positive)

Respect for human rights

Instilling diversity, equity, and inclusion (DE&I)

Occupational health and safety

Product quality assurance

Reduction rate of water withdrawal

25% or more

(vs. FY2020, intensity basis)

Rate of conducting human rights DD

100%

Percentage of women in management positions

15%

Number of serious workplace accidents

Maintaining zero

Number of serious quality defects

Zero

*Please see the website for other indicators and details.https://www.uacj.co.jp/english/ir/policy/long_term_vision.htm	9