S T R AT E G Y

FY2023-2025

Medium-term Management Plan
Recognize the gap between the current situation and "Vision for 2030" and develop a catch-up strategy to fill that gap.
The first three-year action plan is positioned as the "FY2023-2025 Medium-term Management Plan".

Net sales and Operating Profit Targets

Financial Indicators / Shareholder Returns
FY2022 (results)

FY2023 (forecast)

FY2024 (target)

FY2025 (target)

804

832

1,070

1,200

Titanium Metal Business

544

587670720

Catalyst Business

8898

130

150

Chemicals Business

172

139

260

300-8103010746100130

Titanium Metal Business

65235060

Catalyst Business

29283340

Chemicals Business26112935-(1)210(13)(15)(14)

(15)

ROS

13%

5%

9%

11%

ROE

15%

5%

11%

13%

0.8

1.0

0.9

0.8

Sales (Unit: ¥100 million)

New Business
Operating profit (in hundreds of millions of yen)

New BusinessCompany-wide Expenses

D/E ratio

In order to improve production efficiency
and ensure a steady supply to the growing
market, we will proactively increase thecapacity of our production sites and update
our facilities. To this end, we plan to invest
a total of 40 billion yen over the three yearsof our Medium-term Management Plan.
We will steadily implement our "catchup strategies" (see diagram below) set foreach business. In addition to gaining further
growth potential, we will position returnon equity (ROE) as the most importantmanagement indicator from the perspectiveof improving capital efficiency, and aim to
improve it to above 13%. We will strive tocontinuously improve corporate value byestablishing a resilient financial foundationand enhancing returns to shareholders andinvestors.

Sustainable improvement of corporate value

3-yearaverage sales
growth rate

3-yearaverage
operating profit
growth rate

3-yearcumulative
capitalinvestment

3-yearcumulative
operatingcash flow

13.9%

4.6%

40 billion yen

30 billion yen

ROS
FY2025ROE
FY2025ROIC
FY2025

D/E ratio
FY2025

Dividend
payout ratio

11% or more

13% or more

7% or more

0.8 or less25-30%

Strong financial foundation and improved shareholder returns

Strategy by Business
Recognition of the Current Situation

Titanium
Metal
Business

Catalyst
Business

Chemicals
BusinessNew
Business

FY2023-2025 Medium-term Management Plan

Vision for 2030

Catch-up Strategy· Top 3 in global sales share of titanium sponge· Ordinary profit to net sales ratio is zero excluding
the influence of inventory in the previous period·A pply a price formula linked to cost fluctuations· Increase titanium sponge production capacity at the Wakamatsu/Chigasaki
Plants (3 kt/year)·F ull operation of the Saudi Arabia Sponge Plant (ATTM)· Improve titanium ingot production efficiency· Optimization of titanium sponge price levels· Increase processing margin due to increased production of titanium ingots· Increase capacity through partial improvement of titanium sponge equipment(Wakamatsu/Chigasaki Plants)· Consider construction of a new plant that can ensure profitability· 30% improvement in labor productivity

The top company in global sales shareof titanium sponge for aircrafts
with an ordinary profit to net sales ratioof 10% or more·T op 5 in global sales share of PP catalysts·O rdinary profit to net sales ratio of 33%· Increase production capacity through improvements in production technology
and other areas (approximately 60% increase compared to the current
production capacity)·F ormulate a plan to increase capacity by constructing a new factory· Improvement of production technology at the Kurobe/Chigasaki Plants (approximately40% increase compared to the current production capacity)· Increase production capacity by constructing a new plant (approximately 30%increase compared to the current production capacity)· Aggressive market development by improving catalyst performance· 30% improvement in labor productivity

A top 3 company in global sales shareof PP catalysts
with an ordinary profit to net sales ratioof 20% or more·T op 3 in domestic sales share of nickel powder·O rdinary profit to net sales ratio of 12%
excluding inventory valuation profit and loss

· Increase production capacity by operating the fifth plant (scheduledfor FY2025)(approximately 20% increase compared to the current productioncapacity)· Increase production capacity by operating the fifth plant (approximately 40%
increase compared to the current production capacity, upon completion)· Create concrete plans for the next expansion investment (approximately 30%increase compared to the current production capacity)· 30% improvement in labor productivity

The top company in domestic sales
share of nickel powder
with an ordinary profit to net sales ratioof 15% or more·C urrently promoting the commercialization ofporous titanium material (WEBTi)·C urrently considering new business projects asa follow-through・Commercialization of WEBTi via the New Materials Division· Increase production capacity in line with business expansion·P lan and develop new business themes at the Technology
Strategy Department and Technology Development Center· Expansion of the WEBTi business· Creation of more new businesses

Net sales of around 10 billion yen

Toward solving materialities

Promotion of ESG Management →p.29

15I N T E G R AT E D R E P O R T 2 0 2 3I N T E G R AT E D R E P O R T 2 0 2 316