INTEGRATEDREPORT
2022
T O H O T I TA N I U M
CHANGES THE WORLDManagement
Philosophy
The Toho Titanium Group pursues theinfinite possibility of titanium and related
technologies, and contributes to building
a sustainable society by continuously
supplying excellent products and services.
Editorial Policy

Fundamental Code of Conduct

Period Covered

This Integrated Report has been compiled with the following stakeholders in

As a general rule, this report includes results for fiscal 2021 (April 1, 2021

mind: shareholders and investors, customers, business partners, employees

to March 31, 2022), but some information on past initiatives and fiscal 2022

and their families, students and job applicants, and members of local

status is included where necessary.

communities and society.
Scope of Coverage

To put our Management Philosophy into
practice, we adhere to the following three
Fundamental Policies.
1. We give the highest priority tosafety and compliance andoperate a healthy and fairbusiness.

Readership

Our Stance on Information Disclosure

In principle, all domestic and overseas business sites of the Toho Titanium

This Integrated Report emphasizes the Toho Titanium Group's approach toGroup are covered.

and strategy for value creation in the form of stories, and is positioned as a

Toho Titanium Co., Ltd.:Headquarters, Chigasaki Plant, Hitachi Plant, Kurobe

communication tool to help our stakeholders understand our growth potential
and our contribution to a sustainable society.

2. We practice innovationand creativity to achieve
continuous growth for our
employees and organization.

3. We enhance communication
with all stakeholders
including customers,
local communities, andshareholders, to develop
relationships of mutual trustand symbiosis.

Plant, Wakamatsu Plant, and Yahata Plant
Group Companies: T oho Technical Service Co., Ltd.

For detailed performance information and ESG-related data, please refer toToho Material Co., Ltd.

the latest information on the "Investor Relations" and "Sustainability" pages of

TOHO WORLD Corporation

our website, as well as the Integrated Report.

Toho Titanium Europe Co., Ltd. (UK)Toho Titanium America Co., Ltd. (US)Data/Initiatives
Financialresults
briefing
materials
Earnings
summary,financialstatement,etc.

IR website

Future Outlook
Sustainability
websitePlease be aware that the information contained in this Integrated Report may
include our future strategies, forecasts and views, and that actual results

Mutual linkage

may differ materially from these forecasts due to various changes in theenvironment and other external factors.

Integrated Report

Note:
Disclosure Policy and Disclaimer

Approach / Strategy

Financial Information(Information on economic value)

www.toho-titanium.co.jp/en/ir/disclosure/Non-financial Information(Information on social value)

CONTENTSINTRODUCTIONPRESIDENT MESSAGE

BUSINESSSPECIAL FEATURE

FOUNDATION

DATA

01

03

07

The Toho Titanium
Value Creation Process

19

21

Promotion of ESG
Management

33

Key Consolidated Financial
and Non-financial Summary

09

Quality Managementthat Achieves Value Creation

Social Value Created by
Toho Titanium's
Technological Capabilities

23

E: Environment

35

Corporate Information

New titanium smelting
methodToward a pilot-scalevalidation test

27

S: Society

31

G: GovernanceManagement Philosophy /Editorial Policy

Message from the President
and Representative Director

Table of Contents

01

INTEGRATED REPORT 2022

11

Titanium-related Technologies

15

Technologies thatContribute to Sustainability

INTEGRATED REPORT 2022

02

PRESIDENTMESSAGEThrough our "Three Pillars,"
we pursue sustainability byturning risks into opportunities.

President and Representative Director

Yasuji Yamao
It has been a year and a half since I became president of
Toho Titanium. Although the economy is gradually recoveringfrom the COVID-19 pandemic, the invasion of Ukraine by
Russia has since broken out, and uncertainty in the businessenvironment persists, with alternate adverse and favorable
winds. The past year has brought home to me the criticalimportance of our "Three Pillars" in times of such drasticchange. I feel that establishing our titanium metals, catalysts,
and chemicals businesses as these Three Pillars is working
in very favor of further developing our competitiveness andresilience.

The "Three Pillars"
Enabling Sustainable Growth
In our titanium metal business, titanium tetrachloride
produced from titanium feedstock is reduced to manufacturetitanium sponge, which is melted to produce titanium
ingots and high-purity titanium for semiconductors. We also
manufacture and sell catalysts and other chemical products
by utilizing the by-products generated in these processes.
The main destinations of the titanium metal business
are the aircraft industry, which accounts for about half ofthe business, and plants and other general industries. In
fiscal 2020, when economic activity came to a halt due
to the COVID-19 pandemic, our sales volume of metallic
titanium products declined significantly as the sharp dropin air passenger volume stalled aircraft manufacturingand maintenance needs, and plant construction progress
was also delayed. However, the business environment
was drastically changed with the invasion of Ukraine thatbroke out in February 2022. One of the world's two major
aircraft manufacturers suspended purchases from Russia's
VSMPO-AVISMA, which holds the world's top share oftitanium for aircraft, while the other has indicated that it will03

reduce its purchases over the medium- to long-term. This
supply constraint has placed the spotlight on Japanesemanufacturers as a source. With only two domestic titanium
sponge producers in Japan, there is a need to meet surging
replacement demand, and aircraft demand is also showing
signs of recovery. Having thus turned the corner, titanium
production is in a tight condition now.
On the other hand, the main customers of the catalysts forpolyolefin polymerization handled by our catalyst businessare manufacturers of resin products such as packaging
materials and automobile interiors and exteriors. During the
COVID-19 pandemic, although production in the automobile
industry contracted, strong demand for medical and hygiene
products including non-woven masks helped ensure solid
sales. In the chemicals business, our main product isultra-fine nickel powder used for the internal electrodes ofmultilayer ceramic capacitors. The strong performance wasdue to a significant increase in stay-at-home demand forelectronic devices such as PCs and smartphones.
In this way, until fiscal 2021, our mainstay titanium metalbusiness, which had suffered due to COVID-19, wassupplemented by our second most important business,
catalysts, as well as chemicals, our third most important. In
fiscal 2022 and beyond, amid the gathering storm clouds ofongoing global inflation and China's slowing growth rate, wemust make prudent business decisions without becoming
overly confident in the special demand for our titanium metalbusiness. Since it is impossible for all business areas toremain strong, we will first ensure overall financial stability by
pursuing our Three Pillars portfolio without placing too muchemphasis on any one business. Only then can the potential
for sustainable growth be developed in a robust manner.
We are convinced that these Three Pillars comprise thegreatest assets inherited from our of about 70 years, and also
represent the greatest strengths of the Toho Titanium Group.

INTEGRATED REPORT 2022

Progress and Challenges
for the Medium-term Management Plan
As a result of such risk diversification, we expect to exceed
our initial target for fiscal 2022, the final year of our threeyear Medium-term Management Plan. ROE, which we regard
as our most important indicator, is also expected to reachapproximately 14%. We are relieved that we are on track toachieve our goals, overcoming fluctuations in the supplydemand balance, raw material prices, and exchange rates, bysteadily investing in growth while maintaining a stable equity
ratio of about 50%.

Medium-term Management Plan (FY2020 to FY2022) Key Indicators
FY2020 (results)

FY2021 (results)

FY2022 (forecast)

FY2022 (target)

Sales (Unit: ¥100 million)

Key Indicators

361.6

555.2

806.0

580.0

Ordinary profit (Unit: ¥100 million)

△ 4.2

51.8

100.0

60.0

Current net profit attributable to the owners of
the parent (Unit: ¥100 million)△ 31.6

37.0

70.0

40.0

ROE (%)

△ 6.8

8.1

13.8

8.0

Equity ratio

48.6

47.9

49.3

52

INTEGRATED REPORT 2022

04

In the current Medium-term Management Plan, we have set
forth five basic themes: priority investment in growth areas,
early profitability of the Saudi joint venture (ATTM), a renewal
plan for the Chigasaki Plant, creation of new businesses, andpromotion of ESG management.
First, with regard to investment in growth areas, we havemade steady progress with the expansion of production
capacity in the catalysts and chemicals businesses, which
represents 80% of the cumulative total 18 billion yen
investment plan for the three-year term of the Mediumterm Management Plan. The fourth ultra-fine nickel powder
production facility within the Wakamatsu Plant was completed
in April 2021, and the new catalyst production facility
within the Chigasaki Plant started commercial productionin November 2022. As a result of these investments, theproduction capacity of the chemicals business has increased
by approximately 60% and that of the catalysts businessby approximately 50% up to now. We plan to continue
expanding these operations through the next Medium-termManagement Plan, which will considerably strengthen our
profit base. Through the next Medium-term Management
Plan, we will also focus on BCP measures to fulfill our
responsibility to supply our customers around the world, andon technological development to improve the performance ofour catalysts to further add value to our business.
Meanwhile, we continued to face challenges in the earlymonetization of ATTM, a project to expand the capacity of ourtitanium business. Due to the COVID-19 pandemic that struck
shortly after the start of operations in fiscal 2019, ATTM'stitanium sponge manufacturing plant was only operating at
about 40% of capacity utilization, resulting in a very difficult
situation in fiscal 2020, with impairment losses recorded.
With the Chigasaki and Wakamatsu Plants operating at full
capacity in response to the special demand, we need toraise the operating rate of ATTM as soon as we can in order
to meet further increases in demand, and we are hurrying
preparations to go into full operation during the first half of2023. Since ATTM is an equity-method subsidiary, we expect
it will take some time before the increased revenues will be
realized in the Group's consolidated results. We will achieve
profitability as soon as possible by maintaining a highoperating rate and ensuring that sales prices are appropriate.
The Chigasaki Plant renewal is progressing as planned. We
are preparing for increased demand with efforts rooted in
the safety and security of employees and local communities
through safety and environmental measures, as well as work
environment improvements at our aging plants. We are also
strengthening our quality control system by establishing a
new analysis center.
Our efforts to seek out ways of creating new businesses
are also progressing steadily. Among these, WEBTi®, usedin the gas diffusion layer of water electrolysis hydrogenproduction equipment, has advanced to the mass production
phase, and we have high expectations for it as a new pillarof our efforts to address climate change and contribute toa recycling-oriented society. We will continue to seek out
fourth and fifth pillars by linking the needs of society with ourseeds of technology. We will also promote the use of newtechnologies such as AI and IoT in our production processes
to foster new competitive strengths.

Thoroughgoing On-site
Risk Management
As we implement these growth measures, one of the major
challenges we face is that while we are a stable company
that has existed for about 70 years, we do not have enoughof the sense of crisis it takes to deal with fluctuations in the
global market. Coincidentally, this past year happened to be
an opportune time to boldly take a scalpel to our companywide risk management effort, as geopolitical risks became
more apparent and each employee experienced firsthandthe changes our environment is undergoing.
First, we asked each business division to imagine thevarious possible risks and carefully identify each of them.
For each of these risks, we have introduced a monitoring
system with quantitative targets and action plans, and we are
steadily implementing countermeasures. Another significant
achievement was the establishment of a mechanism tocounter the risk of fluctuations in the price of nickel metal05

INTEGRATED REPORT 2022

used by our chemicals business, based on the experience
with copper futures trading I gained in my previous position.
We prepared risk hedging through futures trading in the LME
market during the last fiscal year, and started implementing
it in April 2022. Nickel prices, which soared to abnormalheights during the Ukraine crisis, plummeted after April as
the conflict became more protracted. In the nick of time, wewere able to avoid a revenue loss in the hundreds of millionsof yen. I sense a positive response from our employees on
the front lines, who now share in the critical importance ofalways anticipating future risks and taking countermeasures,
rather than allowing ourselves to become overconfident amid
seemingly good performance.

ESG Management,
Identifying and Converting Future Risks
into Opportunities
In this sense, our fifth basic theme, promoting ESG
management, comprises the greatest application of risk
management toward ensuring sustainability. The Group's
basic policy on ESG management is to work toward
solving social issues involving the company and our
stakeholders through our business activities, to contributeto the sustainable development of society, and to enhance
our corporate value over the long term. We have identified
materialities based on this, and are working on each issue
mainly through the ESG Promotion Committee and its
Subcommittees.
On the environmental front, we are actively working to
reduce CO2 emissions under our 2050 Carbon Neutral
Vision formulated in May 2021. Our new titanium smelting
technology is at the core of this effort. In order to achieve
decarbonization and resource recycling throughout the entire
manufacturing process, we are working in collaboration with
manufacturers of raw materials and mill products that makefinished titanium products.
On the social front, we emphasize respect for human rights
throughout our supply chain. Here, too, we tell our employees
to consciously put themselves in the other person's shoes
and use their imagination. The White Logistics initiative, forinstance, starts by clarifying how long we have kept vehicles
waiting for loading and unloading, and our human rights
education in Saudi Arabia is in line with the basic attitude ofprofessionals who respect different local conditions and waysof thinking in order to work comfortably. We take pride in our
sincere and earnest corporate culture, which has always
valued sports support and community service activities. It
should be natural for us to build cumulatively on these efforts.
I also think that the strengths of the Three Pillars haveapplications in the domain of human resource development.
My intention is for the exchange of human resources
across business divisions to be more flexible than ever, sothat employees can be stimulated by the diverse working

environments and have opportunities for further growth. Thisis necessary to develop management personnel who canaccurately understand in domestic terms the strengths andchallenges of our three businesses, each of which operates
on its own unique terms. In addition, we also want to cultivate
world-class human resource capabilities by encouraging
the acquisition of qualifications and creating a system tostudy technology at overseas research institutions. We willcontinue to work ambitiously through our next Mediumterm Management Plan, leveraging the strengths of ourThree Pillars as a way to increase the number of career
path options, and to further expand the possibilities for theutilization of human resources.
In order to identify environmental and social issues andflexibly identify business opportunities, we are focusing
on improving risk management in terms of governance. In
addition to promoting governance reforms in line with market
requirements, we have established an appropriate conflict ofinterest management system to protect minority shareholders
as a listed subsidiary. We will continue to work with Outside
Directors to improve the transparency and effectiveness ofmanagement.

Toward Rebuilding the Ideal
We Envision for 2030
In 2023, we will celebrate the 70th anniversary of
our company's founding. In the next Medium-termManagement Plan, we will pursue sustainability from alonger-term perspective with an eye toward becoming a"100-year company." Therefore, in addition to updating
the ideal we envision for ourselves in 2030, an important
future milestone, we intend to set new quantitative
targets in order to unify the Group as a whole along one
vector.
Now that we are experiencing a paradigm shiftamid our coexistence with COVID-19 and increasing
mobility of human resources, the relationships of trustthat companies and employees need to build can be
expected to have a different quality than the loyaltyof the past. Moving forward, I believe that we should
build relationships in which we discuss and pursue
growth potential together, while respecting the powerof the individual. That is why it is necessary to establish
clear goals that employees with diverse values can aim
for in common. In order for our employees to work
comfortably and enthusiastically, and for the company
to continue to grow, we would first like to deepen the
dialogue within the company.
We will leverage our Three Pillars of strength, bothoffensively and defensively, and contribute to asustainable society through continuous reform out of aconstant desire to bring about transformation. I ask foryour continued support as we boldly and flexibly take on
the challenge of maximizing corporate value to meet the
expectations of our stakeholders.

INTEGRATED REPORT 2022

06

BUSINESSThe Toho Titanium
Value Creation Process

Management
Philosophy

The Toho Titanium Group pursues the infinite possibility of titanium andrelated technologies, and contributes to building a sustainable society bycontinuously supplying excellent products and services.

The Toho Titanium Group is creating new value needed for future lifestyles
and industry through the synergistic effect created by titanium-related
technologies that have been refined based on proprietary technologies andsustainable technologies that contribute to reducing environmental impact.
In 2021, we specified as materiality the perspective of working together withall stakeholders to resolve social issues. While solidifying our managementfoundation by strengthening our human resources capabilities and corporate
governance, we will take on the challenge of evolving ESG management as
we continue to grow toward the realization of a prosperous society.

Conserving
the global
environment
Realizing a society withsafe, secure
mobility

Customers

1

p .2

Revitalizing
industryhersBusiness
partners

Employees
and families
Appealing
workplaceContribution
to society

Contribution
to global
environmental
conservation

ComfortablelivingShareholders& investors

Solidifying
our managementfoundation

Local
community &society

Cultural preservation& transmission to next
generation

2

p .2

ia

lit y

Titaniummetalbusiness
p.12

M

at

er

St

Providing value
to society

e
ak

d
ol

QOL(Better qualityof life)

Reductionof CO2emissions

Spongesmelting

Sustainable
technology
p.15

Titanium-related Technologies
Appliedtechnology
Chemicals
business
p.14

Titanium
tetrachloride

New energy
creation

Catalysts
business
p.13

Human resources

Corporate Governance07

INTEGRATED REPORT 2022

Effective
resource
utilization

p.28

p.31
INTEGRATED REPORT 202208

Quality Managementthat Achieves Value Creation
Our Group commitment to quality improvement

Supply chain management

Initiatives to improve customer satisfaction

Strengthening linkage and collaboration with business partners

At the Toho Titanium Group, we work hard to provide products and services that place the highest priority on quality so that we cancontinue earning the trust of our customers. We aim to improve customer satisfaction by accurately identifying customer needs andcontinuously 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.

Based on the Guidelines for Business Conduct and Promise to Business Partners (Transaction Principles) within our Fundamental Purchasing Policy,
the Group will strive to build relationships of trust with business partners through fair and equitable transactions as well as legal compliance andenvironmental conservation.

Toho Titanium Group Fundamental Quality Policy

Fundamental Purchasing Policy
Guidelines
for BusinessConduct

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.

Ethics		We will maintain appropriate relationships with business partners based on strict ethical viewpoint.
We will sever all relationships with Antisocial Forces and conduct sound purchasing activities.
We will not engage in any transactions that exploit an advantage of ours to the unfair advantage ordisadvantage of others.

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.

Quality Control Initiatives

Scope of Certification

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, we haveobtained 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.

ISO 9001 Certification
Starting with ISO 9002 certification of our Catalyst Division in 1996, we
achieved ISO 9002 certification for all titanium divisions in 1998, and by 2001,
we had expanded certification to ISO 9001 for our main titanium and electricalmaterials products, with certification for the scope of registration shown on theright.
We will continue to expand our quality management system, promotecertification, and strive to further build trust and increase satisfaction among
our customers.

Business sites certified under ISO 9001:2015

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, titanium suboxide,
propylene polymerization catalyst, ultra-fine nickel powder, magnesium
chloride, titanium trichloride solution, and titanium tetrachloride solution.

Implementation of a quality management system for theaerospace industry
We received JIS Q 9100 certification one of the quality system standards foraerospace applications for titanium sponge in 2003, and in 2010, we expanded
the scope of certification to include titanium ingots. We will continue our efforts
to provide better quality and service.

Business sites that have obtained JIS Q 9100:2016 certification
Headquarters, Chigasaki Plant,
Yahata Plant, and Wakamatsu Plant

Scope of Certification
Design, development and manufacture of titanium sponge and titanium ingot

Headquarters, Chigasaki Plant,
Hitachi Plant, Yahata Plant,
Wakamatsu Plant, and Kurobe Plant

Legal compliance		We will comply with all applicable laws and regulations, and will conduct our business not only inaccordance with the letter of individual provisions of laws and regulations, but also with a respect for the
spirit of the law.
Mutual trust		We will build relationships of trust with our business partners through transactions based on equal
partnership.

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.

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

We will be open and transparent in our dealings.

Fairness		We will base our selection of suppliers on fair evaluation.

Environment conservation	We place importance on the environment and actively promote "Green Purchasing" practices.

1. Compliance	We will ensure compliance with legal requirements and act with high ethical standards.

5. C oncern for safety and environment,
and providing information

Transparency

Promiseto Business
Partners(Transaction
Principles)

Fair opportunity for entry		We will provide fair entry opportunities for those who wish to transact business, and we will respondsincerely to trade offers.
Fair evaluation		Selection of suppliers will be based on fair evaluation of quality, price, delivery time, and performance.
Confidential information management	We will strictly manage and maintain the confidentiality of information obtained for administrative
purposes in the course of purchasing transactions.
Clarity of reasons for selection	For business partners who were not selected for orders due to competing inquiries, etc., we will, uponrequest, clarify the fact that they were not selected and the reason for not being selected.

Green Procurement

Participation in the "White Logistics" Promotion Movement

As part of our efforts to protect the environment, we actively promote"Green Procurement" practices. We strive to do business with partners thatare proactive in their environmental responses including reduction of theenvironmental impact related to the manufacture, use, and disposal of theirproducts and the provision of services to our Group as well as purchasing ofgoods that have less environmental impact on the global environment,

In March 2022, we endorsed the objectives of the "White Logistics" promotion
campaign developed by the Ministry of Land, Infrastructure, Transport and Tourism,
the Ministry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry
and Fisheries, and submitted a Declaration of Voluntary Action.
The White Logistics campaign aims to address the growing shortage of truck
drivers, secure stable logistics services necessary for people's daily lives andindustrial activities, and contribute to the growth of the economy. Through thecampaign, we are working to (1) improve productivity and efficiency of transportation,and (2) create labor environments that are comfortable for all workers including
female and elderly (over 60) drivers. Participating companies are required toformulate, declare, and implement a "Declaration of Voluntary Action," which includes
itemized and detailed voluntary efforts to improve logistics. To date, approximately
1,400 companies have endorsed the campaign. We have declared the following
eight points as our own initiatives.

Fair Trade (activities for compliance with the Subcontracting Law)
The Group considers the deepening of relationships of trust with business
partners to be extremely important, and we are particularly committed to strict
compliance with the Subcontracting Law, engaging in ongoing measures toensure the proper and smooth operation of subcontracting transactions.

Initiatives to eliminate Antisocial Forces
We are continuously working to eliminate Antisocial Forces. Our Code of
Conduct emphasizes fair trade and the promotion of sound business practices.
We also conduct surveys of business partners on the status of implementationof measures to prevent involvement with Antisocial Forces, and we follow up
with them on an ongoing basis.

Responsible Mineral Procurement

p.27(Excerpt)
1. Proposals for and cooperation in logistics improvement
2. Separation of work tasks other than driving
3. Improvement of facilities on the part of shippers
4. Modal shift to ships and railroads
5. Introduction of fuel surcharges
6. Consideration of legal compliance when selecting contract counterparts7. Proactive use of logistics companies that are involved in work-style reforms, etc.
8. Safety measures during loading and unloading operations

Procurement BCP Initiatives
We are working on procurement BCP to prepare for the risk of business shutdown
due to natural disasters such as earthquakes, windstorms, and floods, as wellas fire and power outages. We are advancing the diversification and multiple
decentralization of procurement sources to minimize procurement risks.

09

INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

10

Titanium-related Technologies

Titanium metal business
Expanding domains of application with stable quality metallic titanium
In the titanium business, in addition to titanium sponge and titanium ingots melted and cast from titanium sponge, we also have a wide range ofvalue-added products such as DC Slab® and titanium powder, each of which has strong advantages as a material.
With high quality and reliable supply, we provide titanium products that satisfy our customers.

Business overview

Main Products

As one of the world's leading titanium manufacturers, theToho Titanium Group operates three businesses: our titanium
business, in which we manufacture and sell titanium metal, andwhich serves as the basis for catalysts and chemicals business

operations. By accurately identifying market needs and pursuing
the unlimited potential of titanium products and related technologies,
we will contribute to our customers' product and businessdevelopment, thereby achieving sustainable growth for our Group.
Titanium sponge

Titanium ingot (rectangular)

Titanium ingot (DC Slab®)

Titanium powder

High-purity titanium ingot(round)Titanium
metal business

Catalysts business
Chemicals business

Titanium feedstockMarket Environment and Overview of the Current Fiscal Year

Chlorination
Titanium
tetrachloride

Demand for aircraft applications for overseas markets began to

Polyolefin production
catalysts

recover in fiscal 2020, during which demand had fallen due to the

Reduction
Chloridation / reduction technology

Aircraft
General industry
Electronics materials

Raw materials

Titanium sponge
Melting
Titanium ingot
High-purity titanium
Titaniumpowder

Processed
titaniumproducts(Toho Technical Service)

Petrochemicals
Electronics materials
Brake materials

High-purity titanium oxide
Uses

COVID-19 pandemic, and demand for general industrial applications
for domestic markets also showed signs of recovery. Together withhigh-purity titanium for semiconductor applications, which remained
strong, titanium sales volume in fiscal 2021 increased significantly.
Demand for titanium sponge for the aviation industry is expected

Ultra-fine nickel powder

to continue to recover in fiscal 2022, and the impact of Russia's
invasion of Ukraine on the supply chain is expected to further increasedemand. Since the production of titanium sponge at our domestic

Potassium titanatesites has been at near full capacity since January 2022, we are(Toho Material)planning to meet increasing demand by raising production volume
at our affiliated titanium sponge manufacturing joint venture in Saudi
Arabia, Advanced Metal Industries Cluster and Toho Titanium Metal
Co, Ltd. (ATTM).

Sales by business segment(¥100 million)
1000.0
800.0

400.0
200.0
0

Catalysts Business

Chemicals Business

166.0

600.0

158.1
114.1
75.2
172.3
FY2020On the earnings side, meanwhile, costs are rising significantly due toOperating profit by business segment

Titanium Metal Business

82.7

99.0

541.0

314.3
FY2021

FY2022 (forecast)(¥100 million)
120.0
100.0
80.0
60.0
40.0
20.0
0
△20.0
△40.0

Titanium Metal Business

Catalysts Business

Chemicals Business
25.0

37.3

26.5

28.3

△15.4

△3.1

FY2020

FY202153.0

Note: Beginning with fiscal 2022, the company has switched to a calculation
method that allocates company-wide general and administrative charges
to each segment based on reasonable criteria, except for general andadministrative charges related to research and development, which
are primarily used to create and promote new businesses. This wasdone in order to better evaluate and manage the performance of eachreportable segment. The figures in this Integrated Report are based on thecalculation method after the change.

11

INTEGRATED REPORT 2022

Operating profit(¥100 million)(¥100 million)

600.0

soaring prices for titanium feedstock, sub-materials, and transportation
costs, which are putting significant pressure on margins. But we are

400.0

also revising prices to compensate for the cost increases, and we

300.0

expect to continue to increase sales and profits in fiscal 2022 as we

200.0

did in fiscal 2021.

60.0

541.0

53.0

50.0
40.0
30.0

314.3

20.0
10.0

172.3

0

100.0

△10.0

0

△20.0

FY2020 FY2021 FY2022(forecast)

△3.1
△15.4
FY2020 FY2021 FY2022(forecast)

Growth Strategy

1
FY2022 (forecast)

Net sales

500.0

34.0
26.2

Titanium sponge plant in Saudi Arabia (ATTM)

Strengthening
the Profit Base●S table procurement of titanium feedstock throughmining investment, etc.
●T
 echnology development and early commercial-ization of high-value-added products

2

Improving Profitability
Through Sales
Channel Expansion● Strengthen alliances with major customers to

3

Expansion of
Supply Capacity
for Titanium Products● Early increases in operating rates andsecure sales volume (long-term contract revision
with Timet)

productivity improvement at ATTM (titanium
sponge)●N ew customer development in the China market,● Improved facility operating rates at Yahata andetc.

Chigasaki Plants (titanium ingot)●S trengthen and expand the high-purity metals

business

INTEGRATED REPORT 2022

12

Catalysts business

Chemicals businessContributing to Value-added Polyolefins

Powder manufacturing technologies
supporting the evolution of electronic component materials

Taking advantage of our in-house procurement of titanium tetrachloride andmagnesium chloride, we develop, manufacture (including contract manufacturing),

In the Chemicals business, we manufacture and sell high-purity titanium dioxide usedand sell catalysts for the production of polyolefins (PO) such as polypropylene (PP) and polyethylene (PE), which are general-purpose plastics,

in multilayer ceramic capacitors (MLCCs), positive temperature coefficient (PTC) thermistors, dielectric resonators and other products. We also

and polybutene-1 (PB-1) and polyolefin elastomers (POE). We also process and sell magnesium chloride as a raw material for catalysts andmanufacture and sell ultra-fine nickel powder and other electronic component materials.

pharmaceutical intermediates.

In particular, ultra-fine nickel powder is used for high-end MLCC electrodes, taking advantage of its characteristic small particle size distribution range.

Our main product, "THC Catalyst," receives high marks from PO manufacturers for its performance and quality stability.

We will further refine our powder manufacturing technology with high levels of quality stability to meet growing demand in the markets fortelecommunications equipment, in-vehicle electrical components, and electronic equipment.

Main Products
PO production catalysts

Main Products

Raw materials for catalyst supports

Applications

and pharmaceutical intermediates

・THC-C・Catalyst for high-rigidity PP・Magnesium chloride powder

・Catalyst for impact copolymer

・Magnesium chloride lump

・Environmentally friendly non-phthalate
catalyst

・Magnesium chloride powder/titanium trichloride
mixtureTHC catalyst

・Catalysts for PE, PB-1, POE, etc.

External donor for PP production

Market Environment andOverview of the Current Fiscal YearNet sales

Demand for polypropylene (PP) remained firm, mainly due toincreased demand for packaging and medical applications, althoughdemand for automotive and construction applications declined due tothe COVID-19 pandemic. Sales of our polyolefin catalyst products havealso increased as a result. We expect to maintain strong performancein fiscal 2022, and despite cost increases due to the operation of a new

100.0
82.7

60.0
40.0

plant, etc., sales and profits are expected to increase.

We sell catalysts for the production

30.0
25.0

26.5

28.3

FY2020 FY2021 FY2022(forecast)

Sales volume in fiscal 2021 was significantly higher than the previous
year, mainly due to increased demand for 5G communications andautomotive-related products, in addition to recovery in demand formain product, ultra-fine nickel powder, from the decline in demand

15.0

caused by the COVID-19 pandemic in the first half of fiscal 2020.
The first half of fiscal 2022 will be a phase of temporary inventory
adjustment due to a shortage of semiconductors and a buildup of

0(¥100 million)
40.0
158.1

150.0

half of the year, sales volume is expected to increase only slightly, andprofits are expected to decrease due to higher costs associated with

37.3

35.0

166.0

30.0
25.0

114.1

26.2

25.0

20.0

100.0

15.0
10.0

50.0

5.0

distribution inventories. Although a recovery is expected in the second
FY2020 FY2021 FY2022(forecast)

Optical materials

Operating profit(¥100 million)
200.0

20.0

5.0

Pharmaceuticals

Net sales

multilayer ceramic capacitors (MLCCs), the primary application of our

10.0

20.0
0

34.0

35.0

Ultra-fine nickel powderMarket Environment andOverview of the Current Fiscal Year(¥100 million)
40.0
99.0

75.2

High-purity titanium oxide

Operating profit(¥100 million)
120.0

80.0

Internal electrode
Electroceramics
material (nickel powder)

Catalyst raw materials

00

FY2020 FY2021 FY2022(forecast)

FY2020 FY2021 FY2022(forecast)the operation of our new plant and other factors.

of PP resin, which is indispensablefor everyday products around us.

TOPIC

Growth Strategy

1

Responding toIncreased
PP Demand● Global demand for PP is expected2

Responding
to Customer
Needs● Continue to renew existingto grow at an annual rate of 3%

products, launch new products,

to 4% over the medium- to long-and develop new markets in orderterm, and we aim to grow fasterto maintain premiums and remain

than the market by increasing

competitive

production at existing facilities and● Expand sales of catalysts forvertically launching production

high-value-added PP production,

after constructing a new plant.

including high-rubber ICP
products

Operation of New Catalyst Production Facility
Begins at Chigasaki Plant
Construction of a new catalyst production facility at the Chigasaki
Plant began in May 2020, and commercial operation started in
November 2022. In addition to responding to the increasing demand for
PP, we are designing environmentally friendly catalyst manufacturing
processes to strengthen13● Deepen relationships with key● Make steady progress on new

development partner)and early realization of thatof the next-generation and beyond

years.

Ensuring
Production
Capacity

nickel powder plant construction,● Develop nickel powder for MLCCs

focus of attention in recent

2customers (strengthen position as

products for existing customers

have increasingly been the

INTEGRATED REPORT 2022

Sales
Expansion
Initiatives

develop high-value-added

substance regulations, which

environmentally friendly catalysts

1● Approach new customers andour response to chemical● Promote development of

TOPIC

Growth Strategy

potential● Consider concrete plans for the

next phase of expansion (nickel
powder plant No. 5)● Consider renovation of existing

plants to accommodate new
New catalyst production facility within
the Chigasaki Plant

products

New Nickel Powder Production Facility Starts
Operation at Wakamatsu Plant
In April 2021, construction of a new nickel powder production
facility (Nickel Powder Plant No. 4), which had been underway at the
Wakamatsu Plant, was completed. In order to establish a supply system
for nickel powder to meet the growth of the market for small-sized largecapacity MLCCs, customer
evaluation was completed
in the first half of fiscal 2021,
and mass production began
in the second half of theyear. We plan to gradually
increase the operating rate
in fiscal 2022.

INTEGRATED REPORT 2022

Nickel Powder Plant No.4 within the
Wakamatsu Plant

14

FOCUS

New titanium smelting method

p.19

Toward a pilot-scale validation test

Technologies thatContribute to Sustainability

Innovative titanium production technology significantly reduces

R&D Case Studies

CO2 emissions, aiming for carbon neutrality

CASE 1
Helping realize a hydrogen-based society with porous titanium sheet

R&D Enhancing the Value of Titanium, the Metal of the FutureNewenergycreation

Reductionof CO2emissionsUtilization of WEBTi® porous titanium sheet for hydrogen production equipment

At Toho Titanium, we have expanded our business domain byresponding to the evident needs of our customers, and by steadily
developing technologies to enhance the value of titanium withthe various characteristics of which include light weight, strength,
and compatibility with the human body. Furthermore, we are now

promoting the development of new products that contribute toresource utilization, the spread of clean energy, and reduction ofenvironmental impact, thereby contributing to the development ofa sustainable society.

Advantages of Titanium

Titanium Challenges

Lightweight

High manufacturing costs and environmental impact

The WEBTi® Lineup

We have developed WEBTi®, a thin metallic titanium sheet withnumerous micropores.
WEBTi® is a new material that combines the characteristics of porous
metals, which include liquid permeability and electrical conductivity,with the high corrosion resistance, strength and other advantages of

WEBTi-T

WEBTi-K

WEBTi-S

WEBTi-T(SEM)

WEBTi-K(SEM)

WEBTi-S(SEM)titanium. It is intended for use in electrode materials, diffusion layers andfilters in highly corrosive environments.

Low thermal
expansioncoefficientSpecific gravityof 4.51, around
60% that ofiron (ordinary
steel)

The current titanium smelting technique (Kroll method) uses batch
production, a complex process that consumes large amounts ofStrongelectricity, resulting in high production costs. In addition, the burning

Around twice
the specificstrength of iron(ordinary steel)of coke produces large amounts of CO2.

Various color
tones are obtainedby changing the
thickness of theoxide film
Safe for humans

Structure of the PEM water-electrolysis hydrogen production equipment

electrolysis hydrogen production equipment. Water-electrolysis
hydrogen production equipment is indispensable for building

H2O+O2a hydrogen society, which is expected to be a game-changing

Cathodediffusion
layeremissions by implementing WEBTi® in PEM water-electrolysis hydrogen

Titanium has high strength, which makes it difficult to cut, press,

Excellentcorrosion
resistance,
in seawater

and weld. In addition, because its thermal conductivity is low, heatthus making tools more prone to wear, and metal fires more likely tooccur. Processing methods and advanced technologies suited to thecharacteristics of the material are therefore required.

H2
H+

Anode

H+

H+

WEBTi
(anode diffusion layer)

H+

H+

In a harshenvironment
Titanium holds
promisedoes not escape during machining, causing cutting heat to build up,

Excellentbiocompatibility

H2O+O2®

production equipment as soon as possible.

Rustproof

H2
H+

development in reducing CO2 emissions. We will help reduce CO2

Difficult to process

Designpotential

In recent years, it has shown particular promise for use as an anodeside diffusion layer in polymer electrolyte membrane (PEM) water-

H 2O

H 2O

CASE 2

H2O+O2

H+

CathodeH+

Laminate

H+

Bipolar plate(titanium foil)

H 2O

Membrane electrodeassembly (MEA)

Reductionof CO2emissionsGreatly Simplified Titanium Foil Manufacturing Process

H2

Effective
resource
utilization

Direct Titanium Foil Production with Smooth Electrodeposition

Toho Titanium Takes Pride in Sustainable Technology●

Reductionof CO2emissionsNew energy-saving titanium production process enabled
by introducing new technology: "Development of New
Titanium Smelting Method" →page 19.

●

Reduce CO2 emissions in our customers' value chains byproviding titanium and products using related technologies●

Effective
resource
utilization

Reduction of material loss throughWe conduct our research and development work under apolicy of strengthening and building a management foundation
through the pursuit of quality. In collaboration with engineersfrom each Business Division, the Technology Division leads
the development of new technologies and products in line withbusiness strategies.

new processes and products●

Promote reuse of low-cost titanium

Department

INTEGRATED REPORT 2022

of commercializing it. Taking advantage of titanium's high corrosion

fabrication by electrodepositing the raw material in foil form throughresistance, it is expected to be used in bipolar plates for PEM water-

molten salt electrolysis. As a result, reduction in CO2 emissions can beelectrolysis hydrogen production equipment and anti-corrosion films for

expected through energy-saving manufacturing process. Furthermore,

steel structural buildings, thereby contributing to the maintenance andsince the electrodeposition also has a refining effect, low-cost titanium

preservation of social infrastructure.

Forging

Melting

Titanium sponge
Low-cost scrap, etc.

DivisionColdrolling

Electro-deposited titanium foil with A4 dimensions
Foil

Smoothelectrodeposition Significant Simplification

Promotion Office

Each BusinessHotrolling

Power source
Ti2+
Ti2+
Ti2+

Molten salt

Ti2+
Ti2+
Ti2+

Electro-deposited
titanium foil
CathodeCorporate Planninggeneration energy sources
and hydrogen energy

process, and will continue to develop the technology with the aim

New BusinessSupport the creation of nextsuch as renewable energy

The smooth electrodeposition method that we are currently developing
is a manufacturing process that can significantly eliminate steps ofTitanium sponge,
etc.

Technical Division
Technical Development Center●

We have established the technology for manufacturing titanium
foil of A4 paper size and approximately 100 μm thickness using thisSmooth Electrodeposition Significantly Simplifies Titanium Foil Manufacturing Process

President

and products, and development ofscrap can be used as raw material, leading to resource conservation.

steps such as hot and cold rolling.

Anode

New
energycreation

R&D Organization

improvement of existing processes

scrap

15

In general, titanium foil is manufactured by melting and forging raw
materials such as titanium sponge, followed by a number of processing

Titanium ions areleached from thesoluble titanium
anode, and titanium
is deposited on thecathode in the formof a smooth foil.

INTEGRATED REPORT 2022

230mm

300mm

16

INTELLECTUAL
PROPERTY
STRATEGY

R&D Case Studies

IP Strategy

CASE 3

Reductionof CO2emissions

Near Net Shaping Simplifies Processing

Effective
resource
utilization

Production of Titanium Alloy Parts by Blended Elemental Powder Metallurgy
Near-Net-Shape Production Process

Because titanium alloys are difficult to cut, the burden of
manufacturing parts with complex shapes is high, and the material is

Using Blended Elemental Powder Metallurgy (under development)

relatively expensive, so improving yield is a major issue.

We aim to be aggressive with
our intellectual property,
which is the core of our competitive strength.

New element

We have developed a near-net-shape manufacturing technology
based on the blended elemental powder metallurgy, in which puretitanium powder and base alloy powder are mixed, placed into a mold,compressed and molded, then sintered and alloyed. Although thistechnology itself has existed for some time, we can easily manufacturemolds of complex shapes by using resin molds made with 3D printers.

Form
constraint:small
Puretitaniumpowder

1 Basepowder

General Manager, Intellectual Property Department, Technology Division

Masakatsu Ikisawa

Manufacture:
easy

Base
alloy
powderPowder filling

2 Mixing

mold3 resinmade bya 3D printer*
4 CIP
processing
1

This process enables the production of titanium alloys with a varietyof high-performance properties and a near-net-shape that is closer
to the final shape. As a result, titanium alloy parts of various types insmall quantities can be manufactured efficiently, leading to reduction

5 Formof material loss and of processing energy use.

6

Vacuumheat treatment(sintering +alloying)

HIP*2

7 processing
8 Finishmachining(as necessary)＊1 Cold Isostatic Pressing＊2 Hot Isostatic Pressing

CASE 4

Reductionof CO2emissions

All-Solid-State Batteries Promote Clean Energy
LLTO™ Technology Improves Performance of Lithium-ion Batteries
High-capacity, high-performance, safe batteries are essential in

Structure of an all-solid-state battery with LLTO™

expanding the deployment of clean energy, electricity generated fromNewenergycreation

Leading the strategic use of intellectual property to turnR&D results into business advantages
As a company whose core competence lies in advanced titanium-that we and our subsidiary Toho Technical plan to manufacture and sell,related technologies, securing and fostering intellectual property is

we have acquired the relevant patent rights and necessary trademark

an important initiative that is at the core of our competitiveness. The

rights to ensure certainty and superiority in business implementation.

Intellectual Property Department continuously files strategic patent

It is also very important to know from the early stages of research

applications, provides IP education for engineers, and steadily performs

and development how competitors are obtaining patents, and to keep

invention discovery activities.

in mind the need to obtain rights in an efficient and effective manner.

With regard to patent applications, we set annual targets for the

In order to build the results of our R&D efforts into patent rights withnumber of applications and for acquisition of know-how based on thebreadth and strength, we exchange information with engineers

progress of our business strategy and development themes. In fiscal

frequently and intensively, sometimes taking advice from outside patent

2021, we obtained rights on 40 Japanese patents. This is approximately

attorneys. In addition, our staff members serve as lecturers, providing

double the number of patents obtained annually in recent years, and is

IP education about once every one to two months on the subject of

one example of the tangible results of our department's recent efforts.

precedents in IP litigation to help them acquire knowledge about

For example, we have established a network of patents for porous

intellectual property, which is typically lacking among engineers. We

titanium-related technologies, the market for which is expected toalso invite attorneys with extensive experience in patent infringement

expand in the future. In this way, we have raised the bar to market entry

litigation to give lectures. This way we focus on the improvement of ourhigher than ever for other companies. Furthermore, for new products

intellectual property capability.

Cathode active material

renewable energy sources, as called for in SDG No. 7: "Affordable andClean Energy." The lithium-ion batteries that have been widely usedin the past have used liquid as the electrolyte, which has presented

Solid-state electrolyte: LLTO™

challenges in terms of capacity and safety. All-solid-state batteries
using solid electrolyte are attracting the most attention as the next-

Anode active material

generation battery.

We promote technological exchange from a broad perspective
while linking it to management strategies, thus strengthening our own intellectual property

We have focused our development work on lanthanum lithium titanate

While this knowledge of IP is obviously important for engineers, it is also

divisions to obtain patents as we seek out and narrow down new businesscrucial for the managers and executives who support engineers to gain

opportunities.

(LLTO™), an oxide-based solid-state electrolyte. It is chemically verya deep understanding of IP strategies that are consistent with businessIn technology development, meanwhile, we place the highest priority on

stable, and is expected to be used in multilayer (chip-type) all-solid-

strategy. For this reason, our department analyzes the technology

the early commercialization of development results. To this end, we needstate batteries and large batteries for automotive use in the future.

Plate LLTO™ (LLTO™ in plate form)

development trends of other companies and uses the results as a basis

to actively consider the introduction of missing technologies from outside

LLTO™, currently achieves ionic conductivity of 5×10-4Scm-1 at

for the IP landscape method of identifying the areas in which the company

sources, without being restricted to in-house development. For example, we

27°C in plate form, demonstrating the characteristics of high ionicshould focus its efforts.

are currently conducting joint research with our parent company, JX Nippon

conductivity among oxide-based solid electrolytes. We will continue to

Traditionally, there has been a passive aspect to the work of thisMining & Metals Corporation, on several individual themes, in addition to

department, with the department's role being to obtain rights to inventions

technology exchanges through technical conferences. In addition, we

created through research and development. By making use of the IP

are collaborating with an overseas start-up company to develop metallic

landscape, however, it is now possible to actively formulate IP strategies bymaterials, and joint research with several universities is underway.

develop all-solid-state batteries for practical use.

comparing our IP capabilities with those of other companies and specifying

However, it is essential that we draw up the overall plan ourselves andthe content and scope of patents to be acquired in the future. In the future,

ask outside parties to provide the missing pieces of technology based on

I hope to enthusiastically create business out of intellectual property,

our core technologies. I believe that our first priority should be to improve

contributing to management by actively making proposals to businessour competitiveness, rather than engaging in open innovation without due
consideration.

17

INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

18

SPECIALFEATURENew titanium smelting method
Social Value Created by
Toho Titanium's Technological Capabilities

Toward a pilot-scale validation test

Development of a new titanium smelting technology that significantly reduces energy consumption and CO2 emissions. Technologicaldevelopment toward putting this innovative new technology into use has reached the demonstration development phase of the NEDO
Strategic Innovation Program for Energy Conservation Technologies. In the demonstration development phase, we are working to
identify issues and develop solutions through pilot-scale tests to enable the actual use of this smelting method. We are also collaboratingwith upstream manufacturers of raw materials such as titanium feedstock and aluminum, as well as downstream manufacturers of millproducts such as sheets and rods, in order to take initiatives to reduce CO2 emissions throughout the supply chain and to develop waste
reduction technologies through recycling within the supply chain, resulting in a true carbon-free titanium.

Anticipated Results[Development Phase]2021.7

Joint Basic Research with

Selected for the NEDO Strategic Innovation

Entered the demonstration

UAT, LLC. begun

Program for Energy Conservation

development phase of the NEDO

Technologies (Practical Application

program and started pilot-scale

Development Phase) and began full-scaletesting for practical use

Toward practicalapplication

technology development

The new smelting technology that Toho Titanium is developing inIn the first process, titanium feedstock is converted

strength, and high corrosion resistance, is expanding and getting morecollaboration with Universal Achemetal Titanium, LLC (UAT, LLC.) of

into an electrically conductive material, and in thediversified year by year. Titanium feedstock is widely available aroundthe United States is a smelting process that has the potential to reduce

second process, it is electrolytically purified. Finally,

the world, but the smelting process currently being used to convert it

CO2 emissions virtually to zero. We also aim at reducing electric power

residual salt is removed to finish the product.

into titanium metal is a complex technique based on a particular method

consumption by approximately 75%.

Specifically, granular titanium feedstock, calcium

called the Kroll method.

As a result of research supported by the New Energy and Industrial

fluoride (fluorite), and metallic aluminum are first

Developed 80 years ago, the Kroll method begins by having titanium

Technology Development Organization (NEDO), we have determined

mixed and made to react at high temperatures tofeedstock, chlorine gas and coke react at approximately 1,000°C tothat this technology is extremely promising in terms of manufacturing

produce an electrically conductive titanium alloy

produce titanium tetrachloride. At the same time, CO2 is produced

cost, energy consumption, and CO2 emissions reduction. We havecontaining oxygen and aluminum. Slag consistingand emitted into the atmosphere. The resulting titanium tetrachloride is

moved into the demonstration development phase, which began inof the byproducts aluminum oxide and calcium

further purified and then is made to react with magnesium to produce

fiscal 2021 with pilot-scale tests. Nippon Steel Corporation is also

fluoride is separated by flotation, so the titanium

a porous titanium material called titanium sponge. The byproductparticipating in this phase, conducting integrated manufacturing

alloy can be easily recovered in isolation.

This technology consists of two major processes:

magnesium dichloride is recovered in high yield, then electrolyzed into

feasibility tests for mill products such as sheets and bars, which are

Next, we use a proprietary electro-refining

magnesium and chlorine for reuse.

manufactured through melting and rolling after the smelting.

process, in which titanium ions are mainly

Since this Kroll-based smelting process consumes a large amountIn this development, it is necessary to utilize knowledge of basis

dissolved from the titanium alloy into the salt bath,of electricity, the total CO2 emission, combined with that from electricsciences such as thermodynamics, electrochemistry, mechanicaland deposited as dendritic solid metal titanium on

power generation, amounts to approximately 9 tons of CO2 emitted

engineering, and electrical engineering to solve highly challenging

the cathode. After vacuum separation or rinsing,

per ton of titanium produced. Various alternatives to the Kroll smelting

technical issues of high-temperature smelting reactions and molten

we obtain metallic titanium with few impurities,

method have been studied, but none has yet been put into use. In ordersalt electrolysis, and to design processes and facilities suitable for

equivalent to current commercially pure titanium

to build a low-carbon society, there is an urgent need to reduce CO2

actual implementation. Our aim is to put the new smelting technology

sponge.

emissions from the smelting process.

into actual use by 2025 by making full use of our highly specialized

This promises to be an excellent smelting method

technologies and by devoting all of our energies to the development.

that is simpler than the existing method, uses

Furthermore, through measures centered on the new smelting

almost no hazardous substances, consumes only

technology, the Group as a whole aims to reduce CO2 emissions by

about 1/4 of the electricity, and produces no CO2.

40% from 2018 levels by 2030, and to achieve carbon neutrality (netzero CO2 emissions) by 2050.

Current process basedon Kroll method➡

New process

6

➡

High

➡

4
1/5 to 1/4 of the current process(Note: electric power used to
produce ore, aluminum, saltbaths and other substances is
not taken into account.)

Number of steps
Electricity
consumption

Use of hazardous
Yes(Cl2 gas, molten Mg, TiCl4, etc.)
substancesYes
CO2 generation

➡

No

➡

Zero
High-grade titanium feedstockHigh-grade titanium feedstock
Coke (C)Cl2

Chlorination

CO2
generation

Crude TiCl4

Distillation/Refining
High-purity TiCl4

Electrolysis

MgCl2

Reduction

Mg

Fluorite
CaF2

Low-carbon Al /Carbon-free Al

Al2O3

Electric power consumption

Use of titanium, a metal characterized by its light weight, highExtraction

CO2
Conservation
generation:of electric
Zero
power

Metallic titanium withHigh O, Al content
Electrolytic refining

Salt bath

Bath separation

Vacuum separation
Pure titanium (sponge)

Titanium containing Al,
Pure titanium (Grain)

Pure titanium obtained by the new method

Melting

Melting

Melting

Melting

Titanium Alloy IG
containing Al

Pure titanium IG

Titanium Alloy IG
containing Al

Pure titanium IG

Creating an energy-efficient, carbon-neutral titanium smelting process to provide the world
with environmentally friendly titanium with excellent properties

and computational science. I work in close collaboration with development members

The development of a new titanium smelting technology is being undertaken by a company-wide development

stakeholders throughout the titanium supply chain. We also seek support from outside

team led by the Technical Development Center. I work in the Technical Development Center, leading the

research institutes on technologies in which our company may not be self-sufficient,

Chemical Metallurgy Group. In this project, I have been able to make great use of the electrochemical expertise

which allows us to improve the precision of our technologies and greatly expands ourand process development experience I acquired during my first 16 years of employment with the company. I

own knowledge and skills.

from various departments within the company, as well as with U.S. collaborators andfeel a strong sense of fulfillment in developing this technology, which could contribute not only to our company

First of all, I hope we can make this innovative technology a practical reality by ensuring

but also to the titanium industry and to the development of humanity as a whole, and I am working hard every

the execution of the pilot study currently under way, and by boldly tackling new issues

day with my group members toward putting this technology into use.

that will be identified as the development phase progresses. Through the early realization

In actual development work, beyond my own expertise, it is necessary to make comprehensive use ofof carbon-neutral titanium, we will also contribute to a sustainable global environment

various fundamental scientific technologies such as safety engineering, plant technology, metal physics,

and a prosperous society with titanium.

INTEGRATED REPORT 2022

2025

2019.7

Technology under Development

19% reduction• Use of the new smelting method (80% reduction)• Use of green electricity (20% reduction)

2017

Applying advanced specialized technology to establish
a new low-energy, high-efficiency smelting technology

Daisuke Suzuki

100- The new smelting method reduces direct CO2 emissions from the titanium smelting process
to zero.
-A major energy conservation effect is anticipated, as the introduction of this new smelting
method has the potential to reduce the domestic power consumption required for the
production of metallic titanium by up to 75%.
-W hile various industrial products have been designed with the intent of reducing CO2
emissions from the manufacturing process and during use, titanium products manufactured
with this newly developed technology can help create products with low environmental
impact in both name and reality, including the materials used.

Shifting from a process based on the Kroll method
consuming large amounts of electricity and emitting large
amounts of CO2 to a new low-energy smelting method

Technical Division
Technical Development Center

CO2 emitted from titanium smelting(estimated)

New Titanium Smelting Technology Development TeamINTEGRATED REPORT 2022

20

FOUNDATION

Promotion of

ESG Management

Basic Policy

Board of Directors
Executive Committee

on management is to work toward solving social issues involving the

The Toho Titanium Group will contribute to the developmentof a sustainable society by strengthening ESG initiatives andrealizing solutions to various social issues through corporate
activities.

Engagement with Stakeholders

Promotion Structure

Based on our Group's Management Philosophy, our basic policy
company and our stakeholders by engaging in business activities fromESG Promotion Committee

the perspectives of the environment (E), society (S) and governance (G),ESG Promotion Subcommittee

so that we can contribute to the sustainable development of society andEenhance our corporate value over the long term.

www.toho-titanium.co.jp/en/csr/stakeholder-engagement/

At the Toho Titanium Group, we believe that building relationships of trust with stakeholders through dialogue is indispensable

Working GroupS

Working GroupG

Working Group

Materialities

for our company's survival and sustainable development. We are committed to understanding the expectations and desires of

In line with our defined materialities, we will work to resolve important issues surrounding our company and our stakeholders,

our stakeholders and reflecting them in our corporate activities.

contribute to the sustainable development of society, and aim to enhance our corporate value over the long term.

Materiality
 olding of the regular General Meeting ofH
Shareholders

 roadcast from the New Year'sB
ceremony, etc. (from the President)

Briefings for investors

Information distribution via the company
newsletter Titan and the intranet.

Item

Goal

To realize a decarbonizedsociety

Reduce CO2 emissions by 40% from the2018 level by 2030 and achieve carbon
neutrality by 2050

Development ofenvironmentally safe
products

Develop new materials, technologicalimprovements, and new applications for
multiple products with consideration for
the environment and safety

Sustainable resource
utilization

Reduce final waste disposal volume by
50% by 2040 compared to fiscal 2020.
Reuse waste materials throughout the
supply chain

Respect for human rights
in the supply chain

Respect the human rights of all those
involved in the supply chain

Coexisting with local
communities

Support social contribution andcommunity revitalization in each region

Improving occupational
health and safety in theworkplace

Eliminate serious industrial accidents
Create healthy work environments

Diversity and inclusion

Ensure a diverse and inclusive
workplaceCreating comfortable
work environments

Realize vibrant work environments

Next-generation humanresource development

Create a foundation to encourage
personal growth of all employees andestablishing education

Strengthening corporate
governance

Resolutely apply the CG CodeOperation of theCompliance Hotline

Achieve zero compliance complaints

Risk management
promotion

Establish and appropriately implement
the company-wide risk management
systemIndividual meetings

Group Management Committee

Business Reports, Integrated/CSR Reports

Consultation with labor unions

Company Brochures

Operation of the Compliance Hotline

Distribution of information via website, etc.

p.29

Disclosure Policy

E

Contribution
to global
environmental
conservation

www.toho-titanium.co.jp/en/ir/disclosure/

Employees andfamilies

Shareholders andInvestors

Contribution tosociety ialogue with local
D
community members
Interaction with local citizens
through plant tours andLocal community
soccer clinics& society hrough the Sales Department
T
Daily Communication

Toho Titanium Group

Exhibition at trade shows

Customers

Introductory company brochure
Distribution of information via website

 istribution of informationD
via news releases

News releases through mass media, etc.
etc.

 otification, reporting,Netc. to government andmunicipal offices

Business
partners

p.27

S
Appealing
workplace

Quality Policy
ISO 9001・JIS Q 9100

www.toho-titanium.co.jp/en/csr/social/ ay-to-day communication with suppliers ofDproduct materials and supplies through theProcurement Department
Cooperation with contracting companies
 uality audits, environmental quality audits,
Q
process audits, etc.
Self-diagnosis

Fundamental Purchasing Policy
Green Procurement Guidelines
Responsible Mineral Procurement

www.toho-titanium.co.jp/en/csr/policy/

21

Related SDGs

INTEGRATED REPORT 2022

G

Solidifying ourmanagementfoundation

INTEGRATED REPORT 2022

p.23

p.27

p.28

p.31

22

E

Contribution to global
environmental conservation

02

Strategy

The Group strives to understand the financial impact of climate change through scenario analysis. Based on the results of scenario analyses,

To realize a decarbonized society

we will formulate a specific transition plan to help achieve a low-carbon society, which is to be reflected in our Medium-Term Management
Plan for the three-year period beginning in fiscal 2023.

and the Paris Agreement. Our Group supports the Japanese
government's decision to lead the country toward decarbonization,

new profit opportunities. We will work to mitigate and adapt to climate

and will comply with all laws and regulations related to climatechange through our business, actively contribute to decarbonization

change. We also recognize the importance of climate-related

through technological innovation, and work proactively in goodfinancial disclosures, support the TCFD, and disclose information incollaboration with stakeholders to achieve both medium- to long-line with the TCFD.

Scenario Analysis
Category
Risks

We recognize that climate change represents both risks and an
important management mission for the Toho Titanium Group to gain

Transition
risk

Marketrisk

Time horizon
Risk/opportunity
description
Increase in
raw material
procurement
costs

Lack ofprogress
in China's
introductionof renewableenergyDecreased
demand fortitanium

Rising prices
of carbon-free
powerterm improvements in the Group's corporate value and sustainable
development of society as a whole.

Transition
risk

Through the reduction of GHG emissions across the whole valueMarketrisk

chain, we will also help achieve the goals set forth in the SDGs

DriverFinancial impact and response measures
IEA STEPS scenario
IPCC RCP4.5 scenario[2.6℃ scenario]

Short term Medium
Long term
term(2030 year)(1 year)(3 years)

Approx. ¥400 million/year

○

○

○

・Stabilize procurement of magnesium by
diversifying suppliers and adjusting inventories.
・Respond to magnesium price fluctuations by
shortening the contract period for titanium sales
and providing for automatic cost adjustment
items in contracts.

01

Governance

Under the guidance of management, each businessDirections

Board of Directors

Reportingclimate change risks and discuss measures to address

Management

them. In addition, the ESG Promotion Committee will take thePresident and Representative Director

lead in scrutinizing opportunities related to climate change

Executive Committee

and report and propose response measures and targets tomanagement. The Risk Management Committee and ESG
Development Committee continually work together to deepen
discussions on business and sustainability strategies interms of both climate change risks and opportunities, and tocreate a governance system to promote decarbonization.

Opportunity

division and the Risk Management Committee will identify

Responsibleforopportunities

ESG Promotion
Committee

Risk Management
Committee

Subcommittee G

Business Execution Teams(various departments)

Suspension ofplant operation

Physicalrisk

Chronic
risk

Increase in
Increase in theemployee health number of heathazards
wave days
Increased need Increased
for CO2-freedemand fortitanium
low-carbon
products from
customers

Products/
services

Increased needfor titanium asa hydrogenrelated material

Products/
services

Board of Directors

The Board of Directors receives and oversees periodic reports (in principle twice a year) from the President or a Director
appointed by the President on important matters related to climate change. In addition, the ESG Promotion Committee
and Risk Management Committee discuss the progress of the metrics and targets for addressing climate change-related
issues. The ESG Promotion Committee then reports to the Executive Committee, and a further report is made to the Board of
Directors, thereby ensuring appropriate Board oversight.

Management

The Executive Committee regularly (in principle twice a year) deliberates important matters related to climate change, and
the President or a Director appointed by the President reports to the Board of Directors. The Executive Committee also
receives and approves reports from the ESG Promotion Committee regarding deliberations of the climate change risks andopportunities the latter has identified. The Risk Management Committee and the ESG Promotion Committee each have theirrespective responsibilities for the identified risks and opportunities. The Executive Committee receives regular reports (inprinciple twice a year) on the results of deliberations on matters related to climate change by the ESG Promotion Committee
and the Risk Management Committee. It monitors progress in relation to the metrics and targets, and reviews and directs thecompany's strategies, business plans and risk management policies.

ESG Promotion
Committee

The ESG Promotion Committee deliberates regularly (in principle twice a year) on matters related to climate change, andreports the results of its deliberations to the Executive Committee. The ESG Promotion Committee identifies opportunities
related to climate change, then deliberates their level of impact, as well as measures by which to address the identified
opportunities and targets. It reports its findings to the Executive Committee. It also reports to the Executive Committee on
countermeasures for the identified risks reported by the Risk Management Committee. Thereafter, it monitors the progress ofany opportunities approved by the Executive Committee.

Risk Management
Committee

The Risk Management Committee meets regularly (in principle twice a year) to discuss company-wide risks (including climatechange risk) and reports important risks to the Executive Committee. The Risk Management Committee identifies risks related
to climate change, then deliberates their level of impact, as well as measures by which to address the identified risks andtargets. It reports its findings to the ESG Promotion Committee. It subsequently monitors and manages risks recognized by the
Executive Committee, ensuring that they are being addressed.

INTEGRATED REPORT 2022

Increasedfrequency ofwind storms
and floods

Products/
services

Responsible
for risks

Roles of each organizational layer and section

23

Acute
risk

−

Approx. ¥600 million/year

○

○

○

○

○

○

○

○

−

Information disclosure consistent with the four TCFD themes
Physicalrisk

IEA NZE 2050 scenario[1.5℃ scenario]

Approx. ¥100 million/day

・Develop and gradually implement a new titanium
smelting process that significantly reduces
electricity consumption and CO2 emissions, andminimize the amount switched to carbon-freeelectricity.
・Promote measures to conserve energy and utilize
waste heat, while promoting use of non-electricalenergy from carbon-free sources.
・In the future, consider participation in renewableenergy power generation projects in regional andinter-company collaborations.

Approx. ¥100 million/day

・Implement measures to control the risks so that plant suspension risks can be largely avoided.
・Monitor trends in the frequency and intensity of extreme weather events and consider the need for
additional countermeasures.

Not significant

Not significant

・Monitor heat conditions and the number of health hazards, and consider countermeasures according
to the situation.

Not determined○

Accelerate
the promotionof nationalhydrogenrelated policies○−

・Carry out pilot-scale development of CO2-freetitanium production technology through to 2023.
・In 2025, begin commercial production in small
quantities, scaling up in stages.

Approx. ¥1 billion/year increase
in revenue (fiscal 2030)○

Increased need Increase infor catalysts for EV production
manufacturing
volumeresins that
contribute to EV
car body weight
reduction−*Compared to fiscal 2021
・In preparation for a rapid increase in inquiries for
WEBTi® porous titanium sheet, which is expected
to be applied to parts for water electrolysis
hydrogen production equipment, we will establish
an initial mass production system in fiscal 2023.
・Investment decisions and technology evaluation
will be made in accordance with the progress ofthe build-up toward a hydrogen society, and thescale of the project will be expanded by fiscal
2040.

Approx. ¥1 billion/year increase
in revenue (fiscal 2030)○○

IEA STEPS/IPCC RCP4.5 scenario [2.6℃ scenario]

Reasons for Choosing this Scenario

The WEO STEPS scenario (our policy to date) and IPCC RCP4.5
developed by the International Energy Agency (IEA) were selected
for the scenario under which Japan's NDC* would not be achieved.
This represents a scenario under which the policies set forth by theJapanese government (the 6th Basic Energy Plan and Green Growth
Strategy) would not be executed as planned.

Our Resilience, Taking the Scenario into Consideration

The risk of magnesium supply shortages as a result of the current
decarbonization policy in China is a concern, but that risk can be
reduced by taking steps to stabilize magnesium procurement.

−*Compared to fiscal 2021
・Further enhance the functionality of highperformance catalysts.
・A new plant will be completed in November 2022,
expanding production capacity to meet growing
demand.

IEA NZE 2050 scenario [1.5℃ scenario]

Reasons for Choosing this Scenario

The WEO NZE 2050 scenario developed by the International Energy
Agency (IEA) was selected as being in line with the Paris Agreement,i.e., the scenario under which Japan's NDC* would be achieved.

Our Resilience, Taking the Scenario into Consideration

We believe that by taking appropriate measures, it is possible
to reduce the degree of risk impact on the titanium business, andthat this is a good chance to increase opportunities such as thedevelopment of new smelting technologies that can produce CO2free titanium.

*Nationally Determined Contribution, submitted by Japan on October 22, 2021. Consistent with carbon neutrality by 2050, the ambitious goal is to reduce greenhousegas emissions in FY2030 by 46% from the FY 2013 level.

INTEGRATED REPORT 2022

24

Contribution to global environmental conservation

03

TOPIC
Carbon Neutral LNG Buyers Alliance

Risk Management

The Climate Change Risk Identification Process

How We Respond to Risks

The Risk Management Committee leads the identification of climatechange risks. The results of ESG Promotion Committee deliberations
are reported to the Executive Committee for final approval of thecompany's identified climate change risks. In assessing anddetermining the severity of climate change risk, we primarily consider
the following factors:

Identified climate change risks are assessed in accordance with
the Risk Management Manual, and responses such as avoidance,
mitigation, transfer and retention are each considered. After
deliberation by the Risk Management Committee, response policies
are reported to and approved by the Executive Committee throughthe ESG Promotion Committee.

Method of Determining Level of Severity

Integration into Company-Wide Risk Management

Short-, medium-, and long-term time horizons
Transition risks: Decarbonization trends, generation power mix,
product demand trends, existing and new regulatory requirements(carbon pricing, plastics regulations, etc.)● Physical risks: Frequency of occurrence, loss of life, impact on
external parties, degree of loss
● Potential for risks to materialize

The Risk Management Committee is chaired by the Toho Titanium
president, and consists of its executive officers, the presidents ofaffiliated companies, and other members appointed by the President.
Climate change risk is also managed by the Risk Management
Committee in the same manner as other risks, based on the systemset forth in the Risk Management Manual.

●

● 

04

Toho Titanium joined 14 companies including Tokyo Gas Co., Ltd. inlaunching the Carbon Neutral LNG Buyers Alliance in March 2021. The
alliance brings together Tokyo Gas and other companies that purchasecarbon-neutral LNG (CNL) in an effort to realize a sustainable society,expand the use of CNL, and increase the value of its utilization.
CNL is liquefied natural gas (LNG) that is regarded as producing
no CO2 emissions on a net global basis when burned, because thegreenhouse gases produced in the process from the mining of CNL to
its combustion are offset with CO2 credits (carbon offsets). In the future,
we aim to make CNL widely known worldwide, improve its reputation
among investment institutions, and establish its position in various environment-related systems.

CO2 emissions in
the LNG value chain

Net zero emissions

Providing Products Beneficial to the Environment and Safety

Indicators and Targets

Our Group is committed to reducing GHG emissions by achieving zero-CO2 emissions from manufacturing processes, conservation andeffective use of energy, and moving to carbon-free sources for the energy we use. We have set targets of a 25% reduction by fiscal 2025 and a
40% reduction by fiscal 2030 (both compared to fiscal 2018), with a final goal of reaching net zero by fiscal 2050.

In addition to responding to the evident needs of our customers, our Group is promoting the developmentof new processes and products that contribute to the reduction of global environmental impact. We
are also keenly aware of how we can help achieve the SDGs through the raw materials we use, ourmanufacturing processes, and our product applications, thereby contributing to the development of aRoadmap to Achieving Carbon Neutrality by 2050
* FY2018 CO2emissions as 100

Achieving zero CO2emissions arisingfrom manufacturing
processes

2018

sustainable society.

2025

2030

2040

2050

100

Effective Use of Water Resources

New titanium smelting technologies (from 2025)
58

Energy-saving
and efficientuse of energy

quality and quantity in each region and complying with laws and regulations, six of the Toho Titanium
86% of the Group's production sites (five of our sites and Toho-Technical), have water management plans

Scope 1

30

34

29

(thousands of tons)
250

32

200

25

224

153

182

FY2019FY2020

FY2021

AddingRecyclable
Value
15%

Recycling63%*20% of the 22% landfill disposal
ratio is effectively utilized for thedevelopment of offshore landfill sites.

enhancing our sorting of waste to render it valuable and recyclable. When waste disposal is the only

We are considering use of a different disposal contractor to handle sludges generated at the Wakamatsu
FY2018FY2019FY2020

FY2021Adoption of CO2-free electricity

Compensation Rules for Directors and Management

From fiscal 2021, CO2-free electricity is being used for the electric
power needs of our Hitachi Plant and also part of the Chigasaki and
Wakamatsu Plants. In the future, we will continue to reduce CO2
emissions by introducing CO2-free electricity to other plants.

The Company's compensation system for Directors andmanagement consists of fixed and performance-linked remuneration.
In the future, we will consider reflecting the achievement of climatechange-related goals in our compensation structure.

INTEGRATED REPORT 2022

Landfill
Disposal*
22%

Investigating Where to Dispose of Sludge Generated at the Wakamatsu Plant

50
FY2018% or more

option left, we do so properly and in compliance with the Waste Disposal and Public Cleansing Act.

100
0

Promotion of Waste Reduction and Reuse
While controlling amounts of waste generated at each business site as much as possible, we are also

191

150

10
0

0

Scope 220

‌*CO2 emissions fromcarbon-neutral city
gas are deemed toqualify as "zero."in place.

Participation in renewable energy production and associated businesses (from 2030)

33

80Group's seven major production sites (five of our sites, Toho Technical Service, and Toho Material), or

Purchase of green power sources (from 2021)(thousands of tons)
40

Development Plan
Progress Rate

While improving operations and promoting water recycling, we are working to identify regions of high2
GHG Emissions

p.15

Breakdown of Industrial Waste

water risk and reduce the volume of water extracted. In addition to meeting the permit standards for water

Extensive recovery and utilization of waste heat (from 2021)

Greening ofenergysources in use

Technologies
that Contribute to
Sustainability

Sustainable resource utilization

Toho Titanium CO2 emissions (FY2018)
260,000 t-CO275

CO2 absorbed byforest conservation,afforestation, etc.

plant, which are currently disposed of in landfills, so that they can be recycled.
Promotion of Waste Plastic Reuse
The Chigasaki Plant previously disposed of waste plastics such as packaging materials generated at theplant by incineration or landfill, but we now use a new waste disposal contractor and adopt a recycling
process to promote efforts to reuse these materials. In the future, we plan to expand the reuse of thesematerials to all of our plants.

Reusing Waste Plastic as a
Resource (reusable as artificial
wood)

INTEGRATED REPORT 2022

26

S

Contribution to society

Appealing workplace

Respect for human rights in the supply chain
Toho Titanium Group promotes respect for human rights in keepingwith the mining, transportation, and trade of minerals; [2] direct orwith the United Nations (UN) Guiding Principles on Business andindirect support for non-government armed groups; [3] illegal acts by

Human Rights. We also understand the human rights describedpublic or private security forces; [4] bribery and misrepresentation ofin the International Bill of Human Rights and the Declaration onmineral origin; [5] money laundering; [6] non-payment of taxes, fees,

Fundamental Principles and Rights at Work of the Internationaland mining rights fees to the government) in conflict areas and high-Labour Organization (ILO) are an absolute minimum to be observed.

risk areas (CAHRAs), including tin, tantalum, tungsten, gold, cobalt,

We will fulfill our social responsibility as the operator of an integrated

and mica. If any risks are found in the supply chain, corrective

supply chain by clearly stating respect for human rights and diversity

actions will be taken.

in our Code of Conduct, and by requesting our business partners to

In order to comply with this policy, we request that our businessgive the same consideration to human rights and diversity.

partners understand the Group's thinking and commit to responsible

Message from a Human Resources and Labor Affairs Officer

To maximize the value of human resources
for sustainable growth

Director, Senior Managing Executive Officer
General Manager, Business Management Division

Hiroshi Matsubara

mineral sourcing. We will also disclose appropriate information about
these efforts to all stakeholders.

Responsible Mineral Procurement
Our Group's basic policy entails never procuring or using minerals
with OECD Annex II risk (i.e., [1] human rights abuses associatedCoexisting with local communities
Our Group believes that, as a member of the local communities

we are making various social contributions and supporting local

where our business sites are located, building relationships of trust

revitalization in each region so that we can continue to develop

while maintaining harmony and cooperation with local communities

together with local communities as a corporate citizen.

is essential for sustainable development. Based on this thinking,

Fostering a Toho Titanium Mindset
Toho Titanium Soccer Club
Established in 1955, the Toho Titanium Soccer Club has a long history
and has players who have played in the professional J League andvarious other categories. Players work at either the Chigasaki Plant or
the Yokohama Headquarters, and all are employees who balance workand soccer. Since 2002, we have planned and managed the boys' andgirls' soccer tournament "Toho Southern Cup," and since 2016, we havecontinued to support the healthy growth and development of children
through soccer by holding soccer clinics in the Chigasaki and Samukawa
areas, and we are loved as a community-based team.

The Toho Titanium Group identifies four materialities (important issues) including the creation of an appealing
workplace, toward which we are making efforts under the themes of improving occupational health and safety in theworkplace, diversity and inclusiveness, creating a comfortable work environment, and human resources development.
In order for our company to continue to grow, it is essential that we view human resources as an important form ofcapital, and that we maximize the skills and motivation of each individual. For this reason, in addition to on-the-job
training through work, we provide rank-specific training and correspondence courses for all employees to support
their career development. In particular, starting in fiscal 2022, each business unit formulates a "succession plan" with afocus on the training of promising future candidates for management positions.
Furthermore, in anticipation of an increasingly serious decline of the working population, we promote manpowersaving measures through automation and remote control of manufacturing sites, as well as the development of new
manufacturing methods. This will improve the working environment and create more time for employees to take on
more creative work and accelerate innovation. At the same time, we actively recruit highly knowledgeable personnel
with doctoral degrees, as well as DX personnel and non-Japanese nationals, in an effort to secure and develop humanresources who can play a key role in our growth strategy.
In order to achieve sustainable growth, it is also important to align the vectors of all employees. With the aim of
improving employee engagement over the medium- to long-term, we have begun employee satisfaction surveys infiscal 2022, and plan to continue identifying issues and implementing countermeasures through periodic monitoring.
In order to raise employee awareness of work-life balance from a long-term perspective, we conduct New Career Plan
Training, in which employees consider environmental changes and ways of working, such as post-retirement work
styles and lifelong life work. In this way, we hope we can help make our employees' work worthwhile by recognizing
diverse values and looking at the meaning of working together. We continue to foster a culture of never-ending
exploration so as not to be bound by fixed ideas, and cultivate human resource capabilities to steadily implement the
new Medium-Term Management Plan that will start in the next fiscal year.

Contributing to the Local Community throughProactive Communication
In addition to actively participating in environment-related events sponsored by
local governments and other organizations, as well as science and technology
events for elementary and junior high school students, we provide on-site classes
at nearby high schools and offer plant tours for local residents. While contributing
to children's education, the program provides an opportunity for children to
deepen their understanding of our business and safety initiatives.
The Toho Titanium Soccer Club also promotes harmony with the local community
by organizing monthly community cleanups by staff and players.

27

INTEGRATED REPORT 2022

Non-Japanese national employee

Fourth-year graduate training

INTEGRATED REPORT 2022

Training to promote active participation by women28

Appealing workplace
Improving Occupational Health and Safety in the Workplace

Human Resource Development and Utilization

Under our basic policy of prioritizing safety, the Group is engaged

In addition, the Health and Safety Committee, consisting of labor

Our Group believes that human resources are the source ofin a variety of activities to ensure a safe and pleasant workand management, holds regular discussions to improve workplace

our competitiveness. We have formulated a human resource

environment and achieve zero occupational accidents.

health and safety. With regard to health and hygiene, we monitor thedevelopment plan to strengthen and establish a human resource

At the Chigasaki Plant, the plant manager is the general safety

status of dust, noise, and specific chemical substances in the workbase to support our medium- to long-term business strategies.

and health manager as stipulated in the Law on Industrial Safety

environment on a company-wide level and to make improvements as

In addition to on-site skills training to pass on and acquireand Hygiene, and at other plants, safety and health management isnecessary.

advanced technical skills, and individual theme training to

generation.

to all employees. To encourage employees to take advantage of theirand innovative human resources from the earliest stages. In

wealth of work experience and expertise, contracts are renewed until

addition, various self-development programs are available toage 65, based on the employee's wishes. (as of fiscal 2021)

improve the skills of each and every employee.

Employment of People with Disabilities
In order to secure the 2.3% employment rate legally mandated by

Creating a supportive work environment
choose a wide range of work styles according to his or her life events

TOPIC

and life stages. A Parental / Nursing Care Leave System is also inplace to help employees balance work and family life, as well as a
Flex-Time System and an Accumulated Annual Leave system in caseof illness, etc.

Development and Operation of Various Systems
SystemKey Features

Limited-Area
Employee

Work location can be restricted within a specified area.

Reemployment
SystemReemployment is made available within a specified periodof time in the event of unavoidable discontinuation due tochildcare, nursing care, spouse's transfer, etc.

Accumulated
Annual Leave(holidays)

Annual paid leave days which ordinarily lapse and are
ineligible for carryover can be accumulated separately

Dormitories andCompany Housing(including rentals)

Enables moving in with low out-of-pocket expenses (subject tooccupancy conditions)

Recreation
Subsidies

Provides semi-annual recreation subsidies to employees andothers to promote fellowship in the workplace

Refreshment
Bonus

Refreshment Bonus for employees completing 10 years and20 years of service

Business Task
Presentation Meeting
Graduate Employee
Mentoring System

High-school
Graduate Employee
Mentoring System

TOPIC

the government, we are working on recruiting and improving theworkplace environment.

We have introduced a system that allows each employee to flexibly

New Employee
Training

Selective education

New Career Plan

Business Owner Action Plan to support the development of the next

study-abroad program and selective education to foster global

knowledge required for each position, as well as a short-term

Selective education

Correspondence Education System

Based on the Law Concerning the Promotion of Active Participation
by Women in the Workplace, our Group has formulated a General

We have introduced a Retirement Reemployment System available

New
Employees

Training to Promote Active Participation by
Women

Senior Employees in Action

New Employee
Training

Proposal presentation meeting

Training to promote active participation by women

inclusion into consideration.

introduced group education to inculcate the abilities andSelective education

Mental healthcare

We are committed to building a workplace that takes diversity andProposal presentation meeting

Short-term study abroad

guidance and training plans. At the same time, we have

New Employee
Training

Selective education

Online English conversation

instructors to new employees and creating custom-madeProposal presentation meeting

TOEIC Examination

Diversity and inclusion

Junior /Mid-ranking

in systematic human resources development by assigning

New Employee
Training

Next-generation human resource development

acquire knowledge and foster awareness, we are engaged

New Employee
Training

Management
Employee
Development
Training Plan

Management
Positionspromoted in each line under the direction of the plant manager.

Medium- to Long-term Human Resource Development Plan (excerpt)

We encourage diverse career experiences and attitudinal changes to enable everyone
to fully apply their individual abilities and competitive strengths, regardless of gender.

Take Parental Leave

Upon the birth of my child, we foundout that my wife has a disease, so I tookparental leave to focus on childcare
and nursing. Since I was in charge ofmultiple development themes, I had
prepared myself for a serious challenge
in whether it would even be possible
for others to take over my work duties.
But thanks to the full support of mysupervisor and coworkers, I was able
to take parental leave without any major
Technical Division
problems. I am very relieved to be able
Technical Development
to protect my family without stopping
Center
my career, and I am truly grateful for theunderstanding and cooperation of those
Daisuke Takiaround me.
In Japan, it is still common to look at parental leave for men
as just another kind of vacation. I think it is necessary for thecompany as a whole to continue this kind of support and todeepen understanding, including the expansion of benefits andother systems, so that individual circumstances and work-lifebalance can be respected.

Chemicals Business Department
Counselor, Chemicals Planning& Sales Dept. and New Business Promotion Office

Yukiko Miyamoto

I joined the company mid-career and was initially assigned to the General Affairs Department to take on
secretarial, general affairs and public relations duties, and then was transferred to the Catalyst Planning and Sales
Department. I currently work in the Chemicals Planning and Sales Department. I am involved in human resource
development, working with seven members of the department while conducting business activities for the products
I am in charge of. I also supervise four members of the New Business Promotion Office.
We have a small number of female employees, and unfortunately the types of positions in which women are
engaged tends to be limited. On the other hand, cross-departmental personnel transfers have recently become
more active, and there is a growing momentum toward the fair evaluation and promotion of individual abilities
regardless of gender. From my own experience, I believe that it is important for individuals to gain sufficientknowledge and experience by their 30s for their future careers, so I want to work on staffing to give young
employees the opportunity to experience a variety of work and job types.
In addition to the conventional education system, I would also like to propose the introduction of training programs
that enable employees to look at themselves objectively through interaction with people outside the company.
I believe it is necessary to provide employees with opportunities to change their mindset in order to achievesustainable growth, increase earnings, and create new business operations for our company, as well as to fully
apply their individual abilities toward career advancement.

Approach to Recruitment
We work to secure talented people who can be active on a global

Participation by Women in the Workplace, we have set a target ofscale, regardless of gender, nationality, or whether they are newhiring 20% or more female employees in order to steadily increase

graduates or already a career professional. As we strengthen our

the number of female employees and quickly develop female

recruitment activities, we are focusing particularly on expanding

managers. For the past five years, the female employee hiring rate
was 26%, which exceeds our target.

experience and actual equipment tours at plants and laboratories,

Number of Employees Hired in the Past 5 Years(new graduates and career)

Mental Healthcare

Consultation with Labor Unions

our internship program. This program, which focuses on work

Training is provided to employees and managers for early detection

The Group has a stable labor-management relationship with thehas continued online during the COVID-19 pandemic. By providing

and prevention of mental health problems. In addition, we have

JAM Toho Titanium Labor Union, and through dialogue about once

work experience based on the job seeker's field of expertise andestablished a mental and physical health consultation service,a month, we negotiate and discuss various management topics andfuture career vision, we are able to prevent early post-recruitment job

Male

8

7

10

6

9

provide guidance on improving lifestyle habits, and focus effort on

employee working conditions based on mutual trust. We will continue

turnover that can result from ill-matched assignments. The retention

Female

3

3

3

2

3

14

(Female ratio)

(27%)

(30%)

(23%)

(25%)

(25%)

(26%)

11

10

13

8

12

54

information dissemination and awareness-raising activities throughto maintain good labor-management relations through dialogue

rate of new college graduates after three years is 100%.

various in-house media.

between labor and management based on the labor agreement.

In accordance with the Law Concerning the Promotion of Active

29

INTEGRATED REPORT 2022

2018

Total

INTEGRATED REPORT 2022

2019

2020

2021

2022

Total
40

30

G

Solidifying
our management foundation

Messages from the Outside Directors
Moving forward to strengthen a foundation for aggressive
management

Strengthening Corporate Governance
Basic Thinking
Based on our Corporate Philosophy, the Company strives to enhance corporate governance in accordance with the following basic policies
in order to achieve sustainable corporate growth and increase medium- to long-term corporate value, and to ensure transparent, fair, timely,
and accurate 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 ofrights.
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 to ensuretransparency.
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 Directors, etc.
In doing so, the Board will strive to appropriately fulfill its respective roles and responsibilities.
5 We strive to engage in constructive dialogue with shareholders to contribute to sustainable growth and medium- to long-term enhancement of corporate value.

Corporate Governance Structure (as of June 30, 2022)
General Meeting of Shareholders

Board of Directors (Chairperson: President and Representative Director)
Directors who are not Auditing Committee Members: 7 (including 2 outside)
Directors who are Auditing Committee members: 3 (including 2 outside)
Monitoringand supervision

Supervisory
Committee for
Conflicts ofInterest among
Group Companies

Findings(report)Personnel andCompensation
Advisory
Committee

Reporting

Auditing Committee

Directors who are Auditing
Committee members: 3(including 2 outside)

Audit

Linkage

Director

Director

Yasuhiko Ikubo

Kimiharu Okura

Deepening our commitment to sustainability promotion
and contributing to further enhancement of corporate
value

Heightening our ability to create value over the medium andlong term through more effective, transparent governanceAccounting Auditor

Deliberative decision

Executive Committee(Chairperson: President and Representative Director)
Judgment[Business execution]

Executive Officer

Board of Directors

Linkage

Audit

Audit

Auditing Department

Internal (Internal Auditing Department)
audit

Linkage

Executive Committee

The Board of Directors deliberates and decides on growth strategies,

In order to clarify the structure of responsibility in the management organization

management plans and other corporate strategies to ensure the Company's

and to speed the execution of business operations, we have introduced ansustainable growth and increase its corporate value over the medium to

Executive Committee system under which certain business execution authority islong term. To monitor and control risk-taking, we have four Outside Directors

delegated to Executive Committee members. The Executive Committee consists of(all four of whom are Independent Directors) in the ten-member Board of

the President and Representative Director (President), Executive Officers and Full-

Directors. Each of them monitors the operation of Directors from a professional,

time Auditing Committee members, and other persons appointed by the President.

independent, and objective standpoint. We maintain a system to ensure that

Regular Executive Committee meetings are held several times a month, or asinternal controls and risk management are fully functional.

needed, at which the President instructs Executive Committee members andcommunicates policies and resolutions of the Board of Directors. Executive

Auditing Committee member

Committee members report to the President on the status of business execution.

Two of the three Auditing Committee members are Independent Outside
Directors, who fulfill their responsibilities through monitoring and verificationfrom an independent and objective standpoint. Auditing Committee members

I understand proactive sustainability promotion and disclosure as
essential to meeting investor expectations. Outside Directors havebecome increasingly involved in efforts to promote sustainability at
the Company since the revision of the Corporate Governance Code inJune 2021. In particular, the Board of Directors has been discussing
the disclosure of responses to climate change in accordance with the
TCFD recommendations.
In the future, it will be necessary to disclose non-financial information
in a more systematic and multifaceted manner, taking advantageof the media characteristics of materials such as Annual Securities
Reports, Integrated Reports, and websites. In addition, I will examine
the progress of our efforts for human capital and securing diversity
from an objective perspective to encourage acceleration in taking
action. As an Audit and Supervisory Committee member, I am
responsible for auditing the execution of duties by Directors. I willcontribute to the further deepening of
the discussion and to the improvementof sustainability management by using
the knowledge I have gained during mycareer as a certified public accountant,and through my experiences such as
writing, research, and consulting work.

Personnel and Compensation Advisory Committee
The Committee consists of all Independent Outside Directors, as well as theinclude qualified accountants, who use their high level of expertise to conduct

Representative Director and other Directors appointed by the Representative

operational and accounting audits and provide active and appropriate opinions

Director, and is chaired by the President. The Personnel and Compensation

at Board of Directors meetings. Full-time Auditing Committee members attend

Advisory Committee meets at least once a year to discuss and report toimportant meetings and have access to all information regarding internal

the Board of Directors on matters related to personnel and remuneration of

proposals and reports. Auditing Committee members also conduct audits in full

Directors and senior management, as well as to evaluate the effectiveness ofcooperation with the Accounting Auditor and the Internal Audit Department.

the Board of Directors.

31

I have long been involved in business operations in the metals
industry, and provide support to current business operations in theform of management policies, recommendations for new business,and support for efforts to strengthen risk management.
Since my arrival in 2019, the Board of Directors has made a strong
impression on me for its open and free exchange of ideas, andin recent years, discussions have been held from a higher-level,
more cross-functional perspective that transcends the divisions ofresponsibility between individuals. I feel that the decision-making
process has thus become increasingly enhanced.
For our further growth, it is necessary to reassess the strengths
and challenges of each business, including subsidiaries, in lightof the company-wide business portfolio. I will therefore focus on
strengthening the system for monitoring existing businesses with aneye to unlock future business potential. I would also like to deepen
discussions with the management teamon measures to make the company morecompetitive. These measures might
include adding value and differentiating
Toho Titanium from competitors so that
it will not become just another material
processing business, and accelerating
the creation of new businesses while alsoutilizing partnerships and alliances.

Appointment and dismissal

Appointment and dismissal

Reporting

I believe that the role of an Outside Director is to supervise theexecution of business operations from an independent standpoint
external to the company, and to provide useful advice andrecommendations based on expertise. Because I am an attorney,
my main concern as a Director has to do with legal and regulatorycompliance. Modern corporate administration often requires
management that focuses on offense, but proactive businessexecution is only possible when there is a strong defense. I
understand that my role as a Director is to fortify the company's
defense so that it can take on a boldly offensive management
approach.
The Personnel and Compensation Advisory Committee, an advisory
body to the Board of Directors, engages in extensive discussions
on matters related to the nomination and remuneration of Directors
and others, while the Supervisory Committee for Conflicts of Interest
among Group Companies carefully examines such matters fromthe perspective of protecting minority
shareholders. Since these committees arecomposed primarily of Outside Directors,
they also serve as a forum for information
sharing and discussion among Outside
Directors.
I will continue to use my knowledge andexperience as an attorney to contributeto the company's sustainable growth andincrease its corporate value.

I will focus on the attainment of further competitivenessbased on a thorough understanding of the current
situation.

INTEGRATED REPORT 2022

Director and Auditing
Committee member

Shigeko Senzaki

A little more than a year has passed since I assumed my current
position. During this period, I have sensed a growing momentum
throughout the company, including the Board of Directors, toward
promoting ESG management with an awareness of our social
responsibility to our stakeholders, including our shareholders. In
addition, while our company's inclusion in the Prime Market requires
us to meet high standards with our Corporate Governance Code,I have seen the company take appropriate actions to put the code
into practice, including discussions on the protection of minority
shareholders.
In order to achieve our stated goal of sustainability management,
it is important for us to deepen our discussion of a businessportfolio that contributes to sustainable growth and reflect this in our
medium- to long-term vision. In making recommendations on matters
including business strategies, I adopt the primary perspectivesof risk management, financial strategy, and business operational
efficiency. My recommendations are
based on the experience and knowledge
I have gained in business operations andstrategy formulation from a management
perspective at financial institutions andbusiness enterprises. In addition, as an
Auditing Committee member, I will strive
to understand the current situation andidentify issues through dialogue witheach department and through internal
inspections. I will provide highly effective
auditing and supervisory functions, including
the lawfulness of the company's
Director and Auditing
business and the efficiency of its
Committee member
operations, thereby contributing tofurther transparency in management.
Naoki Harada

INTEGRATED REPORT 2022

32

DATA

Key Consolidated Financial Summary (11 years)
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Operating results, etc. (Unit: ¥1 million)
Net sales

36,00640,08130,43033,702

43,424

31,212

37,256

43,64845,50936,159

Cost of goods sold

30,86933,232

29,916

31,666

34,762

22,54827,80732,62835,33827,36441,755

Selling, general and administrative expenses

5,470

6,047

5,220

4,674

4,771

4,937

5,518

5,746

6,102

5,660

13,760Operating profit

△ 333

801

△ 4,706△ 2,638

3,891

3,726

3,930

5,274

4,068

3,135

5,228

Ordinary profit△ 1,016485△ 5,157△ 2,595

3,541

3,874

3,493

5,269

3,716

△ 417

5,177

△ 621

△ 2,151△ 5,498△ 2,633

4,233

3,367

3,394

6,499

2,366

△ 3,156

3,695
11,283Current net profit (△loss)

55,515

EBITDA (operating profit + depreciation costs)

6,557

7,849

2,153

4,004

10,009

9,275

9,000

10,251

9,333

8,639

R&D Costs

1,634

1,509

1,222

1,254

1,266

1,402

1,567

1,527

1,683

1,729

1,976

Capital expenditure

4,771

2,466

5,267

981

851

1,069

4,062

4,190

4,644

8,441

10,584

Depreciation expense

6,890

7,048

6,859

6,642

6,118

5,549

5,070

4,977

5,265

5,504

6,055

Financial position (Unit: ¥1 million)
Net assets (at end of period)

28,12539,732

34,62032,20736,19239,15642,03747,73048,26244,45947,166

Net assets (end of year)

98,143

101,900

95,752

88,49783,03383,43983,94587,645

87,11891,14998,095Interest-bearing debt (end of year)

63,86054,431

57,117

51,11341,49938,13935,872

32,79831,67639,36740,428Cash flow (Unit: ¥1 million)
Cash flow from business activity△ 1,904

1,093

4,392

7,307

12,945

5,889

6,394

8,316

7,953

1,402

9,790

Cash flow from investment activity△ 5,035△ 4,158△ 5,421△1,100△ 3,954△ 1,443△ 4,048△ 4,114△ 4,482△ 8,390△ 10,433

Cash flow from financial activity

7,775

3,002

1,758

△ 6,406△ 10,088△ 4,018△ 2,785△ 3,787△ 2,405

6,835

206

Cash and cash equivalent year-end balance

1,416

1,531

2,528

2,368

1,226

1,620

1,184

1,600

2,641

2,534

2,128

Per-share information (¥)
Net assets per share

462.0

556.8

484.7

450.9

506.8

548.4

588.9

668.8

676.2

622.8

660.8

Current net profit (△loss) per share△ 10.3△ 30.9△ 77.3△ 37.0

59.5

47.3

47.7

91.3

33.2

△ 44.4

51.9

5.0

3.0

-

-

5.0

7.0

10.0

12.0

12.0

12.0

15.0

Cost to sales ratio

85.7%

82.9%

98.3%

94.0%

80.1%

72.2%

74.6%

74.8%

77.7%

75.7%

75.2%

Selling, general and administrative expense ratio

15.2%

15.1%

17.2%

13.9%

11.0%

15.8%

14.8%

13.2%

13.4%

15.7%

24.8%

Net income-to-equity ratio (share capital)

28.6%

38.9%

36.0%

36.3%

43.4%

46.8%

49.9%

54.3%

55.2%

48.6%

47.9%

Operating return on assets (ROA)△ 0.4%

0.8%△ 4.8%△ 2.9%

4.5%

4.5%

4.7%

6.1%

4.7%

3.5%

5.5%

Ordinary return on assets (ROA)△ 1.1%

0.5%△ 5.2%△ 2.8%

4.1%

4.7%

4.2%

6.1%

4.3%

△ 0.5%

5.5%

Net return on equity (ROE)△ 2.2%△ 6.4%△ 14.8%△ 7.9%

12.4%

9.0%

8.4%

14.5%

4.9%

△ 6.8%

8.1%

2.3

1.4

1.7

1.6

1.2

1.0

0.9

0.7

0.7

0.9

0.9

-

-

-

-

8.3

14.6

18.2

14.6

26.9

-

28.1

Dividend per share
Financial indicators

D/E Ratio
Dividend payout ratio
Operating profit to net sales ratio△ 0.9%

2.0%△ 15.5%△ 7.8%

9.0%

11.9%

10.5%

12.1%

8.9%

8.7%

9.4%

Ordinary profit to net sales ratio△ 2.8%

1.2%△ 16.9%△ 7.7%

8.2%

12.4%

9.4%

12.1%

8.2%

△ 1.2%

9.3%

Key Consolidated Non-Financial Summary (4 years)
2018

Environment

Water emissions (1,000m3)
Atmospheric emissions

2020

2021

2018

Society (human resources related)

2020

2021

1,379

1,348

1,304

1,429

Number of employees at end of term

859

907

956

0.12310.07578

0.072130.07279

Ratio of employees with disabilities (%)

2.2

2.3

1.9

2.0

NOx emissions (t)2.57222.18705

1.89692

2.41514

Ratio of females to all employees (%)

5.5

6.2

6.8

7.2

23,203

21,115

21,77225,025

Permanent employee turnover rate (%)

3.4

2.1

2.5

3.0

4.5

4.6

3.7

4.3

-

-

11.0

11.4

Waste emissions (t)Scope 1 (Unit: 1,000t CO2)

33

34

29

32

Scope 2 (Unit: 1,000t CO2)

224

191

153

182

Total of Scope 1 and 2 (Unit: 1,000t CO2)

257

225

182

213

*Items without notes comprise TOHO TITANIUM CO., LTD. and one domestic consolidated subsidiary.
*1 Scope of data: Toho Titanium Co. and its four subsidiaries in Japan and overseas*2 Reporting period: fiscal 2021 (Japan: April 1, 2021 to March 31, 2022; overseas: January 1 to December 31, 2021)

Average annual training time per employee (hours)

INTEGRATED REPORT 2022

981

Governance
Number of Directors

9

9

9

9

Number/ratio of Outside Directors(persons/%)

3/33

3/33

3/33

3/33

Number/ratio of female Directors(persons/%)

0/0

0/0

0/0

0/0

3

3

3

3

Number/ratio of Outside Auditing Committee members (persons/%)

2/67

2/67

2/67

2/67

Number/ratio of female Auditing Committee members (persons/%)

0/0

1/33

1/33

1/33

Number of Auditing Committee members

33

2019

SOx emissions (t)Total energy consumption (PJ)*1, *2CO2 emissions*1, *2

2019

INTEGRATED REPORT 2022

34

Corporate Information as of March 31, 2022

Company Overview
Company Name
Headquarters
Location

Stock Information

TOHO TITANIUM CO., LTD.

Basic Stock Information

JR Yokohama Tower 22nd Floor, 1-1-1 Minamisaiwai, Nishi-ku,
Yokohama, Kanagawa 220-0005, Japan+81 45-394-5522 (General Affairs and Personnel Department)

Number of Shares Per Unit

100 shares

Total Shares Authorized for Issuance

160,000,000 shares

Shares Outstanding

71,270,910 shares

Number of Shareholders

19,149Fiscal Year Closing Date

March 31

Ordinary General Meeting of Shareholders

June

Accounting Auditor

Ernst & Young ShinNihon LLC

Established

August 20, 1953

Capital¥11.963 billion

Business Activities

Production and sales of titanium metal
Production and sales of catalysts for polyolefin production
Manufacture and sale of electronic component materials

Major Shareholders

No. of Employees

981 (consolidated)

Business Sites inJapan

Headquarters (Yokohama City, Kanagawa Prefecture)
Chigasaki Plant (Chigasaki City, Kanagawa Prefecture)
Wakamatsu Plant (Kitakyushu City, Fukuoka Prefecture)
Yahata Plant (Kitakyushu City, Fukuoka Prefecture)
Kurobe Plant (Kurobe City, Toyama Prefecture)
Hitachi Plant (Hitachi City, Ibaraki Prefecture)

Consolidated
Subsidiaries

Stock Exchange
Listing

Two domestic companies: Toho Technical Service Co., Ltd.
Toho Material Co., Ltd.
Two overseas companies: Toho Titanium America Co., Ltd. (US)Toho Titanium Europe Co., Ltd. (UK)The First Section of Tokyo Stock Exchange(Securities Code: 5727)

Shareholder Name

Numberof Shares(Unit: 1,000
shares)Shareholding
Ratio

JX Nippon Mining & Metals Corporation

35,85950.31%The Master Trust Bank of Japan (Trust Account)

4,795

6.74%

Nippon Steel Corporation

3,500

4.92%

Custody Bank of Japan (Trust Account)

1,606

2.26%

MSCO CUSTOMER SECURITIES

904

1.27%

STATE STREET BANK AND TRUST COMPANY FOR STATESTREET BANK INTERNATIONAL GMBH, LUXEMBOURG
BRANCH ON BEHALF OF ITS CLIENTS: CLIENT OMNI
OM25

772

1.08%

UBS AG LONDON ASIA EQUITIES

647

0.91%

UBS AG LONDON A/C IPB SEGREGATED CLIENT
ACCOUNT

609

0.86%

J.P. Morgan Securities Japan

596

0.84%

State Street Bank West Client Treaty 505234

572

0.80%

Shareholder Composition

Group Companies and Affiliates:
Individuals / others

Toho Technical Service Co., Ltd.

19.0%

Office Address
3-3-5 Chigasaki, Chigasaki, Kanagawa 253-0041
Principal Business	Manufacture and sale of welded, machined or forged titanium
products, insoluble electrodes, titanium-based powders(titanium powder, titanium hydride powder, 64 alloy powder),and sale of various titanium materials and zirconium sponge
URL
https://www.tohotec.co.jp/english/

Financial institutions

Other
corporate
entities

10.3%

56.2%

Toho Material Co., Ltd.

Foreign corporate
entities, etc.

Office Address692-1 Tokiguchi, Tokitsu-cho, Toki-shi, Gifu 509-5122
Principal Business	Manufacture and sale of automotive disc brake pad materials
such as potassium titanate and other titanic acid compounds
URL
https://www.toho-titanium.co.jp/pdf/company/tohomaterial.pdf

12.5%
Securities companies

2.0%

TOHO WORLD Corporation
Office Address	11-2 Otemachi, Kokurakita-ku, Kitakyushu-shi, Fukuoka 8030814
Principal Business	Solutions in the field of technology and skills, dispatch ofengineers and technicians, contract manufacturing, contract
equipment maintenance, and handing down technology andskillsURL
https://towor.co.jp/

Toho Titanium America Co., Ltd. (US)Principal Business	Sales and market research of titanium metal and catalysts forpolyolefin production, etc.

Toho Titanium Europe Co., Ltd. (UK)
Principal Business	Sales and market research of titanium metal and catalysts forpolyolefin production, etc.

Advanced Metal Industries Cluster andToho Titanium Metal Company Limited
Office Address

Yanbu, Kingdom of Saudi Arabia

Information Disclosure and Promotion of Dialogue with
Shareholders and Investors
The Toho Titanium Group discloses necessary information to shareholders,investors and other stakeholders in a timely, appropriate, and proactive
manner, while giving due consideration to fair disclosure. We are moving
forward with initiatives to enhance corporate value and sustainable growth
based on the feedback and other information we receive in these efforts.
Target readershipcontent

Analysts and domestic/
foreign institutional
investors

Briefings on financial results attended by the
President twice a year (interim and year-end)
Online conference calls and individual interviews by
the IR Department

Individual shareholders
and Investors

Delivery of business reports (interim and yearend), annual shareholders' meetings, responses totelephone inquiries, etc.

Posting of IR materials
on website

Financial results briefing materials, quarterly financial
results information and other news materials areposted in the "IR Library" section of the Company's
website.

Principal Business Manufacture and sale of titanium sponge

35

INTEGRATED REPORT 2022