G

Appealing workplace

Human Resource Development

inculcate the abilities and knowledge required for each position,
as well as a short-term study-abroad program and selective

New Employee
Training

are available to improve the skills of each and every employee.

NewEmployees

education to foster global and innovative human resources fromthe earliest stages. In addition, various self-development programs

New Employee
Training

Selective education

Selective education

Business Task
Presentation Meeting
Graduate Employee
Mentoring System

New Career Plan

Proposal presentation meeting

Mental healthcare

Selective educationStrengthening Corporate Governance
Correspondence Education Systemplans. At the same time, we have introduced group education to

Proposal presentation meeting

Training to promote active participation by women

employees and creating custom-made guidance and training

New Employee
Training

Selective education

Online English conversation

human resources development by assigning instructors to newJunior /Mid-ranking

knowledge and foster awareness, we are engaged in systematic

New Employee
Training

Proposal presentation meeting

TOEIC Examination

In addition to on-site skills training to pass on and acquire
advanced technical skills, and individual theme training to acquire

New Employee
Training

Short-term study abroadbase to support our medium- to long-term business strategies.

Next-generation human resource development

development plan to strengthen and establish a human resource

Management
Employee
Development
Training Plan

our competitiveness. We have formulated a human resource

Solidifying our management foundation
Medium- to Long-term Human Resource Development Plan(excerpt)
Management
Positions

Our Group believes that human resources are the source ofOVERNANCE

Basic Thinking
Based on our Corporate Philosophy, the Company strives to enhance corporate governance in accordance with the following basic policies inorder to achieve sustainable corporate growth and increase medium- to long-term corporate value, and to ensure transparent, fair, timely, andaccurate decision-making and appropriate business execution in light of our business characteristics and the surrounding environment.
1	We will respect the rights of shareholders, ensure the substantial equality of shareholders, and strive to create an environment for the appropriate
exercise of rights.
2 We strive to cooperate appropriately with all stakeholders.
3	In addition to disclosure in accordance with laws and regulations, we work proactively to provide information beyond that required by law in efforts toensure transparency.

High-school
Graduate Employee
Mentoring System

4 The Board of Directors and the Auditing Committee members will:
i Clearly articulate the major direction of corporate strategy, etc.
ii Create an environment that supports appropriate risk-taking by senior managementiii Effectively supervise management (including Executive Officers) and Directorsetc. We will strive to appropriately fulfill our respective roles and responsibilities.

We also carry out 360-degree evaluations in managerial
positions with the objective that the person being evaluatedbecomes aware of the gap between their own perceptions and5	We strive to engage in constructive dialogue with shareholders to contribute to sustainable growth and medium- to long-term enhancement ofcorporate value.

of those around them, which leads them to change their behavior
and improve their management skills.

Corporate Governance Structure (as of June 20, 2023)

TOPIC

General Meeting of Shareholders

Supporting the career advancement of younger employees while improving
my own expertise

Board of Directors (Chairperson: President and Representative Director)

Manager,Internal Audit Department

Reporting
Supervisory
Committee for
Conflicts ofInterest among
Group Companies

When I just became a manager at my previous job, there weren't many female managers, and I remember
working 24 hours straight, within and outside working hours, just to be physically "on par" with men. But working forthis company, I feel that I can enjoy a good work-life balance. Also, I have never felt excluded due to gender and otherforms of discrimination. I feel that there is a good openness in the workplace that respects experience and knowledge.

Findings(report)Personnel andCompensation
Advisory
Committee

Monitoringand supervision

Directors who are not Audit and Supervisory Committee Members: 6 (including 2 outside)
Directors who are Audit and Supervisory Committee members: 3 (including 2 outside)

In 2021, I joined our company's Audit Department as a mid-career employee. I gained experience in secretarial
work in my 20s, learned from management how important it was to understand the mechanics of numbers, andtransitioned to an Accounting position. While gaining practical experience, I obtained the qualification of a US
Certified Public Accountant. Since then, I have been engaged in internal control and audit work for over 10 years.
Internal audits are carried out voluntarily by each company in accordance with the "International Standards for theProfessional Practice of Internal Auditing", so as a professional, I strive to brush up on my knowledge every days.

S i n ob u
Ka wa n oAppointment and dismissal

Appointment and dismissal

ReportingExecutive Committee

Judgment

Personnel and Compensation Advisory Committee

or whether they are new graduates or in their mid-careers. We areOver the past 5 years, the percentage was 22.4%.

The Committee consists of all Independent Outside Directors, as wellas the Representative Director and other Directors appointed by theRepresentative Director, and is chaired by the President. The Personneland Compensation Advisory Committee meets at least once a year
to discuss and report to the Board of Directors on matters related topersonnel and remuneration of Directors and senior management, as wellas to evaluate the effectiveness of the Board of Directors.

job seeker's field of expertise and future career vision, we are able

FY2018to prevent early post-recruitment job turnover that can result from ill-FY2019

FY2020

FY2021

FY2022For fiveyears

matched assignments. In addition, our 5-year retention rate for newMale

751091445

university graduates is 96%.

Female13324

1312.5%

37.5%

23.1%

18.2%

22.2%

22.4%

8813111858

In accordance with the Law Concerning the Promotion of Active
Participation by Women in the Workplace, we have set a target of41

Female ratioTotal

I N T E G R AT E D R E P O R T 2 0 2 3AuditAudit
Internalaudit

Audit Department(Internal Audit Department)

LinkageIn order to clarify the structure of responsibility in the management
organization and to speed the execution of business operations, we haveintroduced an Executive Committee system under which certain businessexecution authority is delegated to Executive Committee members.
The Executive Committee consists of the President and Representative
Director (President), Executive Officers and Full-time Auditing Committee
members, and other persons appointed by the President.
Regular Executive Committee meetings are held several times
a month, or as needed, at which the President instructs ExecutiveCommittee members and communicates policies and resolutions of
the Board of Directors. Executive Committee members report to thePresident on the status of business execution.

number of female employees and quickly develop female managers.

and research institutes. By providing work experience based on theLinkage

Executive Committee

hiring 20% or more female employees in order to steadily increase theNumber of Employees Hired in the Past 5 Years(new graduates and careers)

Accounting Auditor

The Board of Directors deliberates and decides on growth strategies,
management plans and other corporate strategies to ensure the Company's
sustainable growth and increase its corporate value over the medium to longterm. To monitor and control risk-taking, we have 4 Outside Directors (all 4of whom are Independent Directors) in the 9-member Board of Directors.
Each of them monitors the operation of Directors from a professional,independent, and objective standpoint. We maintain a system to ensure thatinternal controls and risk management are fully functional.

who can play an active role globally, regardless of gender, nationality,

the-job trainings and observations of actual equipment at factories

Linkage

Board of Directors

At Toho Titanium, we are striving to secure talented human resources

particularly focusing on expanding internships that mainly include on-Directors who are Audit and Supervisory
Committee members: 3(including 2 outside)(Chairperson: President and Representative Director)

Executive Officer

Approach to Recruitment

Audit and Supervisory Committee

Deliberative decision[Business execution]

We are currently in a transition period within the company, as we are setting up a system that allows for various
ways of working and building career plans. In order to advance in your career, I believe it is important to create yourown "image of a manager" by getting in touch with the experiences and ideas of your predecessors, and discussing
your concerns through continuous education for managerial candidates and opportunities to interact with managers
from other departments. Moving forward, I would like to actively support young colleagues so that I can somehow
give something back for the support I have received from so many people.

Audit

Group Company Supervisory Committee
for Conflicts of Interest
Regarding important transactions between the parent company groupand our Group, deliberations and considerations are held once a year,and as necessary, from the perspective of protecting the interests ofminority shareholders. The members of this committee are independent
outside directors, and a summary of deliberations and results is reported
to the Board of Directors.

Audit and Supervisory Committee
2 of the 3 Audit and Supervisory Committee members are Independent
Outside Directors, who fulfill their responsibilities through monitoring andverification from an independent and objective standpoint. Audit andSupervisory Committee members include qualified accountants, whouse their high level of expertise to conduct operational and accounting
audits and provide active and appropriate opinions at Board of Directors
meetings. Full-time Audit and Supervisory Committee members attend
important meetings and have access to all information regarding internal
proposals and reports. Audit and Supervisory Committee also conduct
audits in full cooperation with the Accounting Auditor and the Internal
Audit Department.

I N T E G R AT E D R E P O R T 2 0 2 342

GOVERNANCE

Messages from the Outside Directors

Our Group commitment to quality improvement
Initiatives to improve customer satisfaction

Focusing on risk management that
supports the achievement of
our ambitious goals

Supporting the development ofmanagement capital to grow into acomprehensive materials manufacturer

I believe that the role of outside directors is to monitor
business execution from an independent, external perspective,
and to provide useful advice and recommendations byleveraging their expertise. I am a lawyer by profession, so as adirector, I pay the most attention to legal compliance. Modern
corporate management requires aggressive management, but
having solid safeguards in place makes it possible to carry out
proactive execution of business. Therefore, I believe that myrole is to solidify our safeguards so that we can manage ourbusiness aggressively.

I have been using my long experience in business operationsin the metal industry to make recommendations for setting
goals for each division and for optimizing the company's overallbusiness portfolio. I am also conscious of my active commitment
to creating a structure for more advanced business operations,such as building management systems that include investment
risk management and finance and accounting.

In "Vision for 2030", we aim to significantly improvesales and profit margins by promoting ESG management,
increasing production capacity in growth areas, and creating
new business areas and technologies. In working towards
these ambitious goals, I will utilize
my knowledge and experience as alawyer in this area to further enhanceand strengthen our risk management
system and contribute to thesustainable growth of our company
and the improvement of its corporate
value.

Yasuhiko Ikubo
Director

Our company has grown and expanded based on titanium,
and expanded our business into the fields of chemicals
and catalysts. Going forward, we are planning to become acomprehensive material manufacturer with four pillars, that
include New Business. As we aim to diversify our business,
I believe it is important to review our portfolio, as well as theportfolio of our affiliates, and share long-term goals and issues.
I think this should be an ongoing
discussion. On the other hand, thepromotion of business diversification
for the future seems attractive
to employees, and I feel that it isbearing fruit in a corporate culturethat is increasingly becoming open.
I hope to deepen my understanding
through regular on-site visits andcommunication with executives,
as well as make more effective
recommendations for developing
Kimiharu Okura
the next generation of management
Director
personnel.

At the Toho Titanium Group, we work hard to provide products and services that place the highest priority on quality so that we can continue
earning the trust of our customers. We aim to improve customer satisfaction by accurately identifying customer needs and continuously
realizing product and process improvements. We also conduct environmental impact assessments considering the entire product lifecycle,including products under development, and when design specifications are changed, we evaluate whether or not any changes in environmental
impact will result.

The Toho Titanium Group Fundamental Quality Policy
We recognize that we have a mission with respect to society, which is to continue providing superior products and services.
We act in accordance with this Fundamental Quality Policy to help realize a sustainable society.
1. Compliance	We will ensure compliance with legal requirements and act with high ethical standards.
2. Meeting customer expectations	We will not only correctly identify customer needs and provide accurate information on quality, but also
provide products and services that are trusted and satisfactory.
3. Continuous improvement	We will promote continuous improvement of quality and service through our quality management system.
4. Human resource development	In our efforts to develop human resources, we will foster a keen awareness and sense of responsibility for
quality and service, developing personnel who take the initiative in pursuit of quality.
5. Concern for safety and environment,and providing information

 e will create products that reflect our concern for safety and environmental compatibility, and we willW
provide the appropriate information.

Quality Control Initiatives
We have acquired ISO 9001 certification, an international standard for quality management systems, and have established a world-class quality
management system that is appropriate for a global company supplying products that customers can use with confidence. In particular, wehave obtained certification under JIS Q 9100, one of the international standards for quality control systems, for our titanium sponge and titanium
ingots, enabling us to promise stable quality that meets the high quality control requirements of the aerospace industry and other industries.

Supporting the evolution ofESG management through monitoring
via dialogue

Deepening discussions on governancethat supports management reform andcreation from multiple perspectives

Our company aims to create cutting-edge materials andtechnologies and become a highly profitable company that isflexible to environmental changes. From an ESG perspective,
we are promoting ESG management that strives to resolve
important issues through our business activities. I recognizethat our ultimate goal is not only to increase corporate value,but also to contribute to building a highly recycling-oriented
society and realizing the sustainability of society as a whole byleveraging our strength of having an abundance of enterprisingtechnical experts.

It is essential to establish appropriate corporate governance,
including appropriate risk management, in order to promotemanagement based on our company's policy of practicing
innovation and creation. So I will keep an eye on risk
management, including financial management, while supporting
our efforts to expand growth that is in line with our management
policy, leveraging my experience in strategy formulation andexecution, both domestically and internationally. I will also pay
close attention to ensuring a compliance system that monitors
and prevents events that could damage corporate value or theprivileges of minority shareholders.

As an outside director, I recognize that my importantrole is to oversee progress towards this goal and provide
effective recommendations, such as sustainability disclosures.
Also, as risks are identified andmeasures are taken in each businessdivision, I would like to contributeto the continual strengtheningof the monitoring function of theBoard of Directors. As an Audit andSupervisory Committee Member, I willcontinue to focus on strengthening
corporate governance by leveraging
the knowledge I have acquired overmy many years as a certified public
accountant. I will also continue toengage in dialogue not only with
Shigeko Senzaki
management but also with on-site
Director,managers.
Audit and Supervisory
Committee Member

43

As the social demands increase for management toemphasize ESG, companies are expected to create a virtuous
cycle in which they contribute tosolving social issues through theirbusiness activities, which in turnleads to increased corporate value.
In order to achieve this, I believe thatboard members need to be willing toprovide advice and point out problems
regarding future business strategies,
human resource development, anddiversity, based on objectivity andbroad experience and knowledge. I will
monitor whether a momentum within
the company that is conscious ofNaoki Harada
ESG is being built and taking root
Director,by conducting on-site inspections.
Audit and Supervisory

I N T E G R AT E D R E P O R T 2 0 2 3ISO 9001 Certification
Starting with ISO 9002 certification of our Catalyst Division in 1996,

Business sites certified under ISO 9001:2015

we achieved ISO 9002 certification for all titanium divisions in 1998,

Headquarters, Chigasaki Plant,Hitachi Plant, Yahata Plant,

and by 2001, we had expanded certification to ISO 9001 for ourmain titanium and electrical materials products, with certification for

Wakamatsu Plant, and Kurobe Plant

Scope of Certification

the scope of registration shown on the right.
We will continue to expand our quality management system,
promote certification, and strive to further build trust and increasesatisfaction among our customers.

Design, development and manufacture, as well as liquification under contractof titanium tetrachloride, titanium sponge, high-purity titanium (sponge,ingot and billet), titanium ingot, high-purity titanium dioxide, propylene
polymerization catalyst, ultra-fine nickel powder, magnesium chloride,titanium trichloride solution, and titanium tetrachloride solution.

Implementation of a quality management system for the aerospace industry
We received JIS Q 9100 certification one of the quality system

Business sites that have obtained JIS Q 9100:2016 certificationstandards for aerospace applications for titanium sponge in 2003,

Headquarters, Chigasaki Plant,

and in 2010, we expanded the scope of certification to include

Yahata Plant, and Wakamatsu Plant

titanium ingots. We will continue our efforts to provide better quality
and service.

Scope of Certification
Manufacture of titanium sponge and titanium ingot

Committee Member

I N T E G R AT E D R E P O R T 2 0 2 344