Medium-Term Management Plan (Fiscal years 2006 through 2008): Business Structure Reform Plan III - Jump up to the New Stage

“Set reform targets at higher levels, and jump up to the new stage.”

Management policies	“A technology-oriented company”, “speed”, “dismantle and rebuild” Fairness in corporate activities, in accordance with social norms Utilizing the power of human resources to challenge uncharted zone.
Basic policy	Become a highly efficient, highly profitable enterprise through “selection and concentration” Work for business growth through vigorous investment in areas of concentration Become the worlds No.1 business enterprise through top-level technological capabilities and high-quality management skills Maximize the Group’s collective strength through “centrifugal force” (independence and growth through spin-offs) and “centripetal force” (sharing of management resources)
Targets for fiscal 2008	Ordinary income: ¥40.0 billion Cash flow from operations: ¥100.0 billion (Over three years) ROA*: 13% *ROA is ordinary income divided by total assets at the fiscal year-end.

Basic Strategies

(1) Concentration of resources in core businesses

(2) Basic strategy in each core business

Nonferrous metals	Become No.1 in the East Asian zinc business, increase specialization in recycling See the Dowa Metals & Mining Web page for more details.
Environmental management and recycling	Become a leading company in East Asia See the Dowa Eco-System Web page for more details.
Electronic materials	Expand through intensive investment in selected areas and development of new materials See the Dowa Electronics Materials Web page for more details.
Metal-processing	Grow through intensive investment and global expansion See the Dowa Metaltech Web page for more details.
Heat treatment	Grow through innovation in manufacturing technology and intensive investment See the Dowa Thermotech Web page for more details.