Integrated Report

2022

TOKAI CARBON CO., LTD.
https://www.tokaicarbon.co.jp/Aoyama Building, 1-2-3 Kita-Aoyama, Minato-ku,
Tokyo 107-8636, Japan
Tel: +81-3-3746-5100 (Switchboard)

TOKAI CARBON CO., LTD.

Graphite Electrode

Carbon Black

Graphite Electrodes Supports Infrastructure

Carbon Black Supports Safety in Our Daily Lives

Steel scrap is recycled by electric arc furnace (EAF) and then

Carbon black is an important raw material that accounts for abouttransformed into structural materials, such as materials for buildings

30% of the weight of a tire. With bases in North America, Thailand,and bridges, and stainless steel products. Tokai Carbon’s graphite
electrodes are manufactured in Japan, Germany, and the United States,
supporting EAF steel production around the world.

and Japan, we support the performance and safety of automobiles.
Manufacturing world largest diametergraphite electrode32 inchesin diameter

It is also used as a black pigment in many of the black-colored products
you come across daily.

Largest capacity in the U.S.

No.

1800mm1

Tokai Carbon Co., Ltd.

Integrated Report 20222

Fine Carbon

Smelting & Lining

Fine Carbon Supports theSemiconductor IndustryAs one of the few companies in the world that manufactures finecarbon, we develop and supply components for manufacturing
equipment that enable semiconductor quality to be improved.
We support the rapidly changing semiconductor industry with ourdiverse product lineup.

3

Tokai Carbon Co., Ltd.

Cathode Blocks Supports the Developmentof the Aluminum Industry
Largest solid SiC
producer in the world

70

Demand for aluminum is growing worldwide due to the need to reduce
the weight of electric vehicles (EVs) and transportation equipment.
Our long-life cathode blocks used in aluminum electrolytic furnaces are%Global Shareindispensable for its manufacture. Tokai Carbon holds global top sharewith its outstanding stability and performance.

Cathode blocks used in aluminum
smelting

30%

Global Share

Integrated Report 2022

4

Contents

Basic Principle

1 Prologue
7 Top Message
13 Corporate Strategy

Ties of Reliability

15
17
19
21
23
25

Our stakeholders, including customers, business partners, employees,society, and shareholders, are indispensable partners for the Company toPicture of Value Creation
1 Technological Prowess
2 Management Strategy
3 Reinvestment for Growth
4 Business Area Expansion
5 Business Portfolio

27 Business Strategy

contribute to the realization of a sustainable society. Coexistence and29313335373940

co-prosperity with our stakeholders are the Company’s earnest
wishes, and the key to “co-creation” that creates new value is trusting
relationships.

Graphite Electrodes
Carbon Black
Fine Carbon
Smelting and Lining
Industrial Furnaces and Related Products
Friction Materials
Anode Materials/Others

41 Sustainability
4347
49
51
52
53
5657

A Talk with Our External Directors
Basic Policy and Structure
To a Carbon-Neutral Society
Respect for Human Rights
Supply Chain Management/Occupational Safety and HealthCorporate GovernanceComplianceManagement

59 Data
6163646566

Long-Term Earnings Summary
Performance by Business Segment/Non-financial Indicators
Company Overview
Stock Information
Independent Third-Party Assurance Report

67 Epilogue
Overview

Consolidated Data for 2022

Net Sales

340.3
5billion yen

Tokai Carbon Co., Ltd.

Operating Income(Operating Incometo Sales)

Net Income
Attributable toOwners of the Parent
Company (profit rate)

40.5

22.4

billion yen(11.9%)

billion yen(6.6%)

Total Assets

576.4

billion yen

Capital-to-Asset Ratio

ROIC

46.6

7.1%

Overseas Sales Ratio

%

79.6%

GHG Emissions

2,408

thousand tCO2

Number of Employees(Consolidated)

Overseas
Employee Ratio

4,378

70.7%

Integrated Report 20226