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Ⅳ. Growth Strategy by Business

Ⅳ-1. Positioning

Ⅳ-2. Smart Infrastructure

Ⅳ-3. Eye Care

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IT Construction: Development of untapped market Positioning

Untapped Market

(Emerging Countries)

High customer awareness Huge potential of growth Adoption rate less than 10%IT Construction Market

Untapped Market

(Small - Mid Sized OEM)

(Additional Opportunities : New Solutions / Products) Road resurfacing, Excavator(auto), Fleet management, Small-sized machinery, etc)

Strengthen sales force by promoting business alliance

Top priority strategies to develop the untapped marketExpand sales network

by M&A

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Excavator system X-53x (auto)

Sales growth by differentiated technology

Strategic differentiated products

Positioning

Mastless Dozer system 3D-MCMAX

-Mastless-High-speed and accurateoperation

-Autonomous operations according to the designeddata

-Prevention of deep-digging-Correspond to “MICHIBIKI”(correspond to multiple GNSS)

IT Construction : Market expansion by launchingstrategic new products

FY2015Actual

FY2018Actual

FY2021Plan

1st MTP 2nd MTP 3rd MTP

Sales of IT Construction（unit: amount）

*MTP=Mid-term Business Plan

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Road Scanning + ICT Paving + Logistics Management

New Resurfacing / Paving ProcessSocial issue Solution

Construction investment (Road Infrastructure)

Maintenance

Aging Road Infrastructure

Rapidly increase the Maintenance cost

¥230 trillion

60%

30% Cost SavingSaving: MaterialLaborTime

Contribution by ThunderBuild (acquisition 2018 Aug )

PositioningIT Construction: Expand Road maintenancesolution business

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data

IT Construction

Utilization of Subscription model for IT construction solution

Automated construction work site✔ Acceleration of Subscription model✔ Pay-per-Use

- Real-time progress management- Improvement of work efficiency- Production / Finished-shape

management- Remote support

Job Site Supervisor

IT Construction: Advancing subscription businessin work progress management

Subscription model

Vendor neutral

Increase portion of

Subscriptionmodel

Positioning

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FY15 FY16 FY17 FY18

OEM Business Development

Untapped Market

(Emerging Countries)

Untapped Market

(Small - Mid Sized OEM)

IT Agriculture MarketHigh customer awareness Adoption rate less than 10%

8 times growth in last 4 years

(number of OEM accounts)

Strengthen sales force by promoting business alliance

Top priority strategies to develop the untapped marketExpand sales network

by M&A

PositioningIT Agriculture: Further strengthening of OEM Business

Huge potential of growth

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IoTService

Vendor neutral

AgriculturePlatform Subscription

model

Utilization of Telematics

Collect every data of agriculture

Data managementData sharing

Unified management of agricultural machinery

Data cleansing

Remote control

Customer management

Remote service

Farm data analysis

✔ Provide function and data which are necessary to maximizefarm work productivity

Unified data in 1 console

1 console for 1 implement

Launched cloud-based Agriculture management IoT solution

IT Agriculture : Initiation of IoT Platform Business Positioning