The UT Group has put together the new five-year business plan which began in the current FY3/2012 with the aim of achieving its following vision:

* “NIPPON.1 Vision GQ20,000” means the vision to become Japan‘s No.1 with a　quantitative goal of having 20,000 workers.

1. Vision of the New Medium-Term Business Plan

Vision of the New Medium-Term Business Plan

Vision of the New Medium-Term Business Plan

UT Group’s social responsibilities

The UT Group aims to grow from “No. 1 semiconductor outsourcing provider^*” to “Japan’s No.1 outsourcing provider” in quality and volume.

When achieving our vision, we will also perform our social responsibilities: to create good job opportunities in local communities; to create career advancement opportunities to workers in dispatching and outsourcing services; and to perform a cross-sector manufacturing employment coordinating function.

* No. 1 in manufacturing outsourcing to the semiconductor-related industries is in terms of the number of outsourced and dispatched workers (based on internal estimates from disclosed data of various companies.)

Basic Strategies of the New Medium-Term Business Plan

Basic Strategies

Goals and Basic Strategies of the 5-year Business Plan

We aim to grow from the present “100 plants X 50 workers/plant = 5,000 workforce” to achieve a target of “300 plants X 70 workers/plant = 20,000 workers.”

For achieving this goal, we promote three basic strategies: 1) enhance 4 growth areas (solar batteries, secondary batteries, LEDs, and displays); 2) enhance large-scale outsourcing service capability; and 3) improve benefits to employees (regarding as customers.)

2. Financial Plans

Financial Plans

Financial Plans from FY3/2012 to FY3/2016

3. Business Strategies

Outline of Business Strategies

Outline of Business Strategies

Enhance 4 growth areas – Expand areas of focus

Market size

UT Holdings’ areas of focus

Enhance 4 growth areas – Expand into the environment and energy fields

Ministry of Economy, Trade and Industry: 5 Strategic Areas in its Industrial Structure Vision

Aim to expand the growth areas to represent 40% or more of total sales.
The ratio of 4 growth areas with high growth potential targets to exceed 40% or more of total sales.

The market size of manufacturing dispatch and outsourcing services is 1,460 billion yen.
The UT Group has specialized in the semiconductor sector and has achieved the No. 1 share.
Going forward, we will expand its target area from the semiconductor sector to the 4 growth areas.

Enhance 4 growth areas – Expand areas of focus

Expand the number of client plants

We will strengthen our sales and marketing structure and expand our client plants from about 100 at present to 300, mainly in the 4 growth areas.

Enhance large-scale outsourcing service capability: Increase market shares

Move to more outsourcing

Reasons why the employee retention rate is important

With an increasing shift from dispatching to outsourcing, clients are becoming more selective in choosing outsourcing service providers. Their criteria in selecting providers are track record and employee retention rate. The UT Group will expand its No. 1 record in the semiconductor sector into the 4 growth areas and improve its retention rate, which is particularly high in the industry. This is how we enhance our large-scale outsourcing service capability, which is our strength.

Enhance large-scale outsourcing service capability: Improve profitability

Improve operating margin by enhancing large-scale
outsourcing service capability

Our strategy is to improve employee retention rate, receive higher evaluation from clients, increase our market share, and increase the number of workers per plant from the present 50 to 70.

By implementing this strategy, we also aim to improve the ratio of SG&A expenses to sales by 4 percentage points.

Improve benefits to employees – Improve employee retention rate

Improve employee retention rate

With a strategy to improve benefits to employees (by regarding them as customers,) we will further raise our already high employee retention rate, which is one of our competitive points.
We will implement specific measures with regard to stable employment environment (regular employment; workplaces for outsourcing services,) well-developed personnel management and payment programs (the listed-stock based incentive system; evaluation and wage systems that reflect skill levels,) and more career advancement opportunities (introduction to manufacturers; business to dispatch engineers.) These measures are to provide better incentives to employees and enhance large-scale outsourcing service capability.

As one of these measures, the Employee Stock Ownership Plan (ESOP) was introduced as a scheme to grant the company shares as incentive to employees who work in dispatched or outsourced workplaces for a certain period. Our objective is to raise employees’ long-term incentive and further improve their retention rate.

4.Commitments

Our commitments to shareholders and investors are to continue 30% or more EPS growth rates and 30% or more payout ratio.