VA L U E

Accelerating Value Creation

Toho Titanium’s Management Resourcesas of the end of March 2023

ExternalEvaluation

Selected as a constituent of the ESG investment index,"FTSE Blossom Japan Index", for the first time
For the first time, we have been selected as a constituent of the FTSE Blossom JapanIndex, a representative ESG index adopted by Japan's Government Pension Investment
Fund (GPIF), one of the world's largest institutional investors. (June 2023)

For 70 years, The Toho Titanium Group has steadily strengthened its management resources through the power of people andtechnology. This capital, which forms the basis of growth, is the source of our group's competitive advantage and enables us toachieve sustainable improvements in corporate value.

FinancialCapital

HumanCapital

Total Assets

111.429

Number of employees(consolidated)billion yen

Net income-to-equity ratio(share capital)

47.7%

Market Capitalization
End of FY2021 → End of FY2022

51.5%UPNet sales

1,127

Female Recruitment Rate

22%

New University Graduate
Retention Rate (past 5 years)

96%

Manufacturing
Capital

Number of Production Sites

6Domestic: 5 / Overseas: 1

Chigasaki/Wakamatsu/Yahata/Hitachi/Kurobe/Saudi Arabia

Amount of Capital Investment(annual)6.496

billion yen%UP

Financial foundation
supporting our business
Our Group is constantly reviewing its
financial portfolio to optimize it for eachbusiness area, and strives to maintain asound financial structure.
We aim to achieve our medium-termgoals for 2025 (ROS of 11% or more,
ROE of 13% or more, ROIC of 7% or
more, and dividend payout ratio of 2530%) and improve shareholder returns.

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Human resource foundation
with diverse attributes that
implements solutions to social
issuesWe strive to ensure security, safety, andhealth in the work environment. We also
take steps to ensure that employees canwork with fairness and motivation. We
will also increase the number of female
managers and foreign managers, andcreate a work environment that places
importance on diversity and inclusion.

I N T E G R AT E D R E P O R T 2 0 2 3Years since Establishment

70

years as ofAugust 20, 2023

Number of Countries forOverseas Sales
Titanium Division / Catalyst Division /Chemicals Division

8/ 9 /6

Energy Usage(electricity/annual)

473,570

Number of Patents Held

MWh/year

Water Usage (Annual)

2.343

Our company was given a"Gold" rating in the sustainability
evaluation conducted by EcoVadis(HQ: France). (July 2021)

Intellectual
CapitalNaturalCapitalmillion m3

Number of Countries fromwhich Raw Materials are
Procured7

End of FY2021 → End of FY2022

44.7

SocialCapitalRelationship
CapitalA "Gold" rating inthe EcoVadis
Sustainability Survey

Domestic:
Overseas:

336
364

Research and Development
Expenses (annual)

2.3

billion yenand above

High-quality manufacturingand production sites expanding
domestically and internationallyStability and trust fromstakeholders and building asustainable supply chain

Reducing environmental
impact through efficient use ofresources

Our Group strives to manufacture
products with a constant focus on
stable production of quality products.
By operating multiple production sites,
including those overseas, we haveestablished a system that meets theneeds of all regions. In FY2023, we are
beginning to consider factors including
location, in order to proceed with thenext capital investment plans for eachbusiness division.

The stability and trust that come fromcontinuous operations make it possible
to expand our business globally. We
have built a supply chain based onrelationships of trust with a diversityof customers and suppliers. We will
also aim to coexist and co-create withexternal partners in developing newmarkets.

Recognizing that all resources arelimited, we strive to reduce our useof resources by promoting resource
conservation, reuse, and recycling.
In addition, we are promoting theintroduction of CO2-free electricity andcarbon-neutral city gas, while setting
targets for reducing GHG emissions
through titanium smelting and working
to reduce environmental impact
throughout the value chain.

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

Proprietary technology andtechnological foundations thatlead to new business creationand expansion
As part of our business strategy, we arepromoting our proprietary technology
and research. We will establish aNew Materials Division in FY2023.
WEBTi, a porous titanium material,
is a revolutionary new material thatcombines the characteristics of porous
metal materials with titanium, which
has advantages such as high corrosion
resistance. Following this, we are also
focusing on developing new materials.

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