加速する社会変化

Presentation on Tokuyama’s New Vision andMedium-Term Management Plan 2025
February 26, 2021
Hiroshi Yokota, President
Tokuyama Corporation0© 2021updated
Tokuyama Corporation.
All rights reserved.
August 6, 2021: FY2020 figuresfrom forecasts
to results

Tokuyama’s
New Vision© 2021 Tokuyama Corporation. All rights reserved.

11

Assessment of Operating Environment
Tokuyama Factory’s highly efficient
integrated production processes are oursource of competitiveness

Energy-intensive businesses dependent on
coal-fired power generation are ourearnings drivers

Management challenges
SocietyJapan

Planet Earth

Accelerated change inindustrial structure,
rapid digital revolution

Domestic demand
shrinkage, growing
health consciousness

Growing environmental
consciousness,environmental
regulatory tightening

We must build/grow businesses that branch out in new directions.
Earnings power and competitiveness are essential.
© 2021 Tokuyama Corporation. All rights reserved.

2

Tokuyama’s Aims
SocietyJapan

Accelerated change inindustrial structure,
rapid digital revolution

Domestic demand
shrinkage, growing
health consciousness

Planet Earth
Growing environmental
consciousness,environmental
regulatory tightening

Target societal challenges within Tokuyama’s circle of competence as core business domains

Achieve
SDGs

Reduce CO2
emissionsElectronics

Healthcare

Environment

Realize carbon-neutral by FY50
Less dependent on energy-intensive businesses (chemicals, cement) while scaling up energyefficient businesses (electronics, healthcare, environment)© 2021 Tokuyama Corporation. All rights reserved.

3

Tokuyama’s Mission
Pursuing a new vision with a redefined mission
Slogan:“For the People of Tomorrow”

MissionTo create a bright future in harmony with the environment, in
collaboration with its customers, based on chemistry• Be a value-creative company that places first priority on R&D and marketing

Vision• Be a company that never stops challenging new domains while refining and exploiting its unique strengths• Be a company with healthy employees who have healthy families and take pride in their work at their company• Be a company that fosters bonds with people in communities and societies worldwide• Commitment to customer satisfaction as a profit source
Values• A broader, loftier perspective• Employees who consistently surpass their predecessors• Integrity, perseverance, a playful sprit and boldness© 2021 Tokuyama Corporation. All rights reserved.

4

Medium-Term
Management Plan 2025
（FY21-25）© 2021 Tokuyama Corporation. All rights reserved.

55

Review of Previous Medium-Term Management Plan
FY15

FY20
（Target）

FY20（Forecast）

Net sales¥307.1bn¥335.0bn¥302.4bn

Operating profit¥23.0bn¥36.0bn¥30.9bn

ROA

5.7%

10%

8.0%

7.5%

10%

10.2%

Total asset turnover

0.77 times

1.0 times

0.79 times

CCC

69 days

55 days

65 daysD/E ratio

4.7

1.0

0.5

Exchange rate (¥/US$)

120

110

106

Domestic naphtha price (¥/kl)

42,80058,00031,200Financial
indicators

OperatingmarginAssessment▲ Fell short of target, largely because of pandemic’s
impact and fixed cost growth due to spending to lay
groundwork for next medium-term plan

▲ Achieved operating margin target by exiting
unprofitable businesses and growing sales in growthbusinesses, including semiconductor-related
products and dental materials/equipment▲ Failed to reduce inventories enough to achieve target〇 Achieved target by building retained earnings
and paying down debt

© 2021 Tokuyama Corporation. All rights reserved.

6

Progress on Priority Issues in Previous Medium-Term Management Plan
FY16

FY17

Reform organizational
culture

FY18

FY19

FY20

Revision of personnel evaluation system●Managers● Senior personnel● Regular personnel● Stepped up hiring/promotion of externally recruited personnel

Rebuild businessstrategy●Transferred Tokuyama Malaysia to OCI (Korea)●Revised new-business assessment process (exit criteria)●Opened Taiwan Research Laboratory
Decided to establish Center for Commercialization of Advanced Technology (silicon nitride) ●Liquidated Tianjin Tokuyama Plastics (microporous film) ●Established Taiwanese JV to sell high-purity IPA to electronics industry ●Strengthen group management●Partially divested equity stake in Figaro Engineering (gas sensors)
Excel Shanon (plastic window sashes) formed capital tie-up with Panasonic ●Partially divested equity stake in Sun-Tox (polyolefin film) ●Agreed to acquire affiliate A&T (medical diagnostic systems) as wholly owned subsidiary ●Improve financial position●Issued preferred stock to strengthen financial base●Redeemed preferred stock●Refinanced subordinated loan
●Regained single-A credit rating© 2021 Tokuyama Corporation. All rights reserved.

7▶ Medium-Term Management Plan 2025

Medium-Term Management
Plan 2025▶Final Year Targets© 2021 Tokuyama Corporation. All rights reserved.

8

Medium-Term Management Plan 2025
FY21 - 25

1

Transform businessportfolio

Expedite development/commercialization

2

Contribute to mitigation of
global warming

Step up high-priority CSR initiatives to lay

3Practice socially
responsible management

Increase growth businesses’ share of
consolidated net sales to over 50%

of next-gen energy technologies; reduce
total CO2 emissions 30％* by FY30

groundwork for further growth and realize
our vision*Relative to FY19

© 2021 Tokuyama Corporation. All rights reserved.

9

Final Year Targets
FY20（Result）

FY25（Target）

Factors in Achieving Targets¥259.2bn*¥320.0bn

Maintain growth while transforming
portfolio

Operating
Profit¥30.0bn¥40.0bn

Strengthen and expand
highly profitable businesses

Growth Business
Net Sales Growth
Rate

―

CAGR
≥10%

Strengthen R&D, accelerateinternational expansion

ROE

13.2%

≥ 10%

Balance shareholders' equity
efficiency and financial base

KPI
Net Sales(The application of the
Accounting Standard for
Revenue Recognition)

経営目標(Note) Assumptions：exchange rate (¥/US$) 105, domestic naphtha price (¥/kl) 32,500* FY2020 net sales are approximate amounts based on application of “Accounting Standard for Revenue Recognition,” etc., and are listed as reference values© 2021 Tokuyama Corporation. All rights reserved. 10▶Transform business portfolio▶Organizational Revision to Promote Strategy

１
Transform businessportfolio▶Target Business Portfolio▶Strategy by Business▶R&D Policy▶Promoting Digital Transformation (DX)
▶Accelerated International Expansion▶Capex Plan Breakdown▶Cash Flow Generation and Allocation© 2021 Tokuyama Corporation. All rights reserved. 11

Transform business portfolio
Increase growth businesses’ share of consolidated net sales to over 50%
FY21-25 Plans

Redefine/reorganize growth businesses around the three themes of electronics,
healthcare and environment and proceed to move ahead with expanding them
Chemicals and cement businesses to promote increased efficiency
while generating sustainable cash flows
Priorities and initiatives
Technology
Efficiency gains
International expansion

Pursue added value and promote technological differentiation by collaborating
more with external partners
Pursue Group-wide operational efficiency, mainly through DX
Expand operations in growing overseas markets© 2021 Tokuyama Corporation. All rights reserved. 12

Organizational Revision to Promote Strategy (from April 2021)
Accelerate strategy by matching business promotion system with focus areas“Electronic“ “Healthcare" “Environment"［Before］
CementChemicals

Recycling and Environment

Life & Amenity

Segment
CementCementDivision

Recycling

Soda Ash and Calcium Chloride

Soda Ash and Calcium Chloride

Chlor-Alkali and Vinyl Chloride

Chlor-Alkali and Vinyl Chloride

New Organic Chemicals

Specialty Products［After］

Business

Transfer

SiliconElectronic Materials

SilicaFumed Silica

Thermal Management Materials

Cleaning System

Integration

CementChemicalsElectronics
Electronic Materials

IC Chemicals

Thermal Management Materials

Fine Chemicals

IC Chemicals

Microporous film

Fine Chemicals

Dental materials / equipment

Microporous film

Medical diagnosis systems

Dental materials / equipment

Environment

Environment

Medical diagnosis systems

Ion exchange membranes

Eco BusinessIon exchange membranes

Plastic window sashes

Healthcare
Life Science

Plastic window sashes© 2021 Tokuyama Corporation. All rights reserved. 13

Target Business Portfolio
Position a consolidated sales ratio of 50% or more for growth businesses
in FY25 as a milestone while aiming for even higher levels
Breakdown of consolidated
net sales by business
FY20 Growth businesses

Targetingcombined sales
share of at least

34%

30%

60%

(36% at the time of planning)

Eco Business

18%
9%
3%

Chemicals

24%

Cement27%

Electronic Materials
Life Science

Other

Sales growth driven by
aggressive investment inelectronics, healthcare andenvironmental domains
We expect chemicals andcement’s shares of sales toshrink in tandem withdomestic demand

18%
10%
17%
12%

19%

9%

FY20
（Result）

FY30（Planned）© 2021 Tokuyama Corporation. All rights reserved. 14

Strategy by BusinessBusiness Goal

Chemicals

Ensure stable earnings in the existing businessPriority Measures▶ Engage in innovative, sustainable and environmentally-friendly
manufacturing processes▶ Improve electrolyzer cell energy efficiency to world-class levels,
reduce CO2 emissions through energy saving▶ Improve manufacturing processes and supply chains throughpromoting DX (digital transformation)

Investment Policy▶ Maintain and update
facilities needed for stablebusiness continuity▶ Energy saving andrationalization to addressenvironmental issues

FY20（Result）

FY25（Target）

Net sales

79.6

85.0

Operatingprofit13.5

13.5* Billions of yen* Data for both fiscal 2020 and fiscal 2025 reflects changes in reportable segments* FY20 net sales are approximate amounts based on application of “Accounting Standard for
Revenue Recognition,” etc., and are listed as reference values.

© 2021 Tokuyama Corporation. All rights reserved. 15

Strategy by BusinessBusiness Goal

CementBecome the domestic industry leader in energy
efficiency

Priority Measures▶Introduce energy-saving equipment to reduce CO2 emissions▶Reduce use of coal by increasing combustion amount of waste plastic
Investment Policy▶Maintain and update facilities needed for stable business continuity▶Energy saving and rationalization to address environmental issues▶Expand waste treatment that contributes to a closed-loop society
FY20（Result）

FY25（Target）

Net sales

50.8

56.0

Operatingprofit4.3

3.5* Billions of yen* Data for both fiscal 2020 and fiscal 2025 reflects changes in reportable segments* FY20 net sales are approximate amounts based on application of “Accounting Standard for
Revenue Recognition,” etc., and are listed as reference values.

© 2021 Tokuyama Corporation. All rights reserved. 16

Strategy by BusinessBusiness Goal

Electronic
Materials

Push forward with globalization, and capture top share in the highpurity and thermal management materials fields supporting theminiaturization and stacking of semiconductors
Priority Measures▶Pursue aggressive expansion in overseas markets▶Develop new applications, expand product portfolio▶Produce high-quality products, pursue analysis technology
International Expansion
IC Chemicals : Expand Taiwan JV facilities, expand new global
facilities

Asia

N. America

silicon nitride, boron nitride products andThermal Launch
expandoverseas
sales
Management : Develop new applications
and enter downstream
Materials fields

Asia

N. America

Strengthen marketing of high-purity polycrystalline silicon
Silicon : Extend silane product line and expand in Asia
Expand uses for CASE* and personal care, enter the
Silica : organic silicone field
Entry into the organic silicone field
FY20（Result）

FY25（Target）

Net sales

61.7

102.0

Operatingprofit7.1

20.0

EuropeAsia

Asia

N. America＊ CASE：Coating, Adhesive, Sealant, Elastomer* Billions of yen* Data for both fiscal 2020 and fiscal 2025 reflects changes in reportable segments* FY20 net sales are approximate amounts based on application of “Accounting Standard for
Revenue Recognition,” etc., and are listed as reference values.

© 2021 Tokuyama Corporation. All rights reserved. 17Strategy by BusinessBusiness Goal

Life Science

Use unique technology to capture top niche share in areas where
differentiation is possible (vision, dental, diagnostics)
Priority Measures▶ Expand product portfolio including biotin and other products for health/pharmaceuticalapplications▶ Develop new applications for unique biaxially-oriented microporous film; expand Shanghai site
▶ Accelerate overseas expansion of cosmetics materials, supplements and other healthcare
products, develop new product areas▶ Accelerate the development of diagnostic reagents through chemical integration, establish newalliances, and expand testing areas
International Expansion
Aim for 25% global share in photochromic
dye materials
Fine Chemicals :Accelerate overseas expansion for cosmetics
materials, supplements, veterinary products, etc.
Dental Materials : Penetration of brands, acceleration of overseas
and Equipment sales of OMNICHROMA series
Medical Diagnostic : Through alliances, aim to become the No. 1 OEM
supplier for open, automated bioanalytic testing
Systems system

Net sales
Operatingprofit

FY20（Result）

FY25（Target）

28.5

46.0

3.4

7.5

N. America

EuropeEuropeS.E. Asia

N. America

EuropeRussia / CIS
China

Asia

Emerging countries
Korea* Billions of yen* Data for both fiscal 2020 and fiscal 2025 reflects changes in reportable segments* FY20 net sales are approximate amounts based on application of “Accounting Standard for
Revenue Recognition,” etc., and are listed as reference values.

© 2021 Tokuyama Corporation. All rights reserved. 18

Strategy by BusinessBusiness Goal

Eco Business

Establish as a new business pillar to carry the future
Priority Measures▶ Respond to expanded demand for water treatment membranes due tostrengthened environmental regulations▶ Expand resource recycling business in waste gypsum board, photovoltaic
modules and others▶ Commercialize developed next-generation energy technologies
Investment Policy

Ion exchange membranes： Boost production capacity
Waste gypsum board recycling： Expand business sites
Photovoltaic module recycling： Establish and commercialize recycling technology
International Expansion

Ion Exchange： Incorporate environmental demand, enter
Membranes countries in Asia and Europe

Net sales
Operatingprofit

FY20（Result）

FY25（Target）

8.8

18.0

(0.3)

1.5

China

Korea

Asia

Europe* Billions of yen* Data for both fiscal 2020 and fiscal 2025 reflects changes in reportable segments* FY20 net sales are approximate amounts based on application of “Accounting Standard for
Revenue Recognition,” etc., and are listed as reference values.

© 2021 Tokuyama Corporation. All rights reserved. 19Strategy by Business*Billions of yen
Current standard
FY2020（Result）
Net sales

Accounting Standard for Revenue Recognition
FY2020（Result）*

FY2025（Target）

Difference

OperatingOperatingOperating
Net sales
Net sales
Net sales
profitprofitprofitOperatingprofit%%Chemicals

81.3

13.5

79.6

13.5

85.0

13.5

+5.3

+7

(0.0)

(1)

Cement

89.5

4.3

50.8

4.3

56.0

3.5

+5.1

+10

(0.8)

(20)

Electronic Materials

61.8

7.1

61.7

7.1

102.0

20.0

+40.2

+65

+12.8

+182

Life Science

28.6

3.4

28.5

3.4

46.0

7.5

+17.4

+61

+4.0

+114

Eco Business

9.5

(0.3)

8.8

(0.3)

18.0

1.5

+9.1

+104

+1.8

-

Others

62.3

5.6

51.9

5.6

38.0

5.0

(13.9)

(27)

(0.6)

(12)

Total

333.4

33.9

281.5

33.9

345.0

51.0

+63.4

+23

+17.0

+50

Adjustment andcorporate-wide expenses(31.0)(3.0)(22.3)(3.0)(25.0)(11.0)

(2.6)

-

(7.9)

-

Consolidated results

302.4

30.9

259.2

30.9

320.0

40.0

+60.7

+23

+9.0

+29

(Note) Sales and operating profit in each segment shown above include inter-segment transactions* FY2020 net sales are approximate amounts based on application of “Accounting Standard for Revenue Recognition,” etc., and are listed as reference values© 2021 Tokuyama Corporation. All rights reserved. 20

R&D policy
Previous Medium-Term Management Plan
▶ Customer-oriented R&D
Focusing management resources on businessdivision by R&D▶ Strengthening open innovation（+）New chemical solution for semiconductors and an
alkaline water electrolysis（+）Confirmation of elemental technologies and review ofstrengths（+）Conduct a course change of R&D themes（+）Increase in products under development（-）Decrease in medium- to long-term development
themes due to the lack of corporate R&D（-）Delay in R&D in the environmental field

Medium-Term Management Plan 2025

Make the transition to a company thatcreates value and provides solutions▶ Focusing management resources on corporate
R&D
・Concentrate energy on medium- to long-term
development themes centered on marketing・Attack areas where the company’s business divisiondevelopment has not yet started▶ Strengthening business division R&D

・Have a wider range of product variations which canmeet customer requirements
・Accelerate the pace of development▶ Strengthening open innovation
Unique Technologies
High purification
Powder control～FY15 Delay in R&D

Sol-gelSintering

Nitride reduction
Crystallization,
deposition

Photopolymerization

Electrode andmembrane
Molecular design© 2021 Tokuyama Corporation. All rights reserved. 21

Promoting Digital Transformation (DX)

Promote DX by utilizing data and digital technology

Makes the conventional impossible possible utilizing AI
Accelerate manufacturing process improvement and R&D through DX善〈 Phase 3 〉Promoting Reforms
Improve development speed through MI* /Create customer-oriented business model〈 Phase 2 〉 Preparing foundations for reforms
Improve supply chain management levels /Improvement of digital education/ Utilization of AI〈Phase1〉 Steps to ensure corporate survival
Generate human resource reserves by improving efficiency /Innovate manufacturing process management / Utilize CRM tools〈Changes in the world〉Declining workforce, increasing of digitalization, changes in competitive environment

Overcome Change

FY30*MI…Materials Informatics© 2021 Tokuyama Corporation. All rights reserved. 22

Accelerated International Expansion
Aiming to increase overseas share of consolidated net sales to over 50% by FY30
EuropeNorth America

Russia / CIS

China Korea

Asia
Emerging countries
Overseas share of
consolidated net sales
FY20
approximately

Emerging countries

20%

IC Chemicals

Fine Chemicals

Thermal management materials

Dental materials / equipment

Silicon

Medical diagnosis systems

Ion exchange membranes

Silica© 2021 Tokuyama Corporation. All rights reserved. 23

Capex Plan Breakdown
Key words are priority investment in growth fields, reduction of CO2 emissions,and energy saving

Key Investment Projects
OthersGrowthBusiness
伝統事業
Traditional
Business

FY21 - 25¥200.0bn（Target）

 Formosa Tokuyama Advanced
Chemicals (IPA for electronics
manufacturing) Silicon nitride production facilities
 Power plants : Biomass combustion
facilities
 Tokuyama Factory : Port infrastructure
facilities

Strongly promote business

R&D
Infrastructure
for growth

Rationalization/ energy saving/ CO2 reduction

portfolio transformation throughaggressive investment© 2021 Tokuyama Corporation. All rights reserved. 24Cash Flow Generation and Allocation● Earnings growth● Cash flow fromnew products

Capex¥200.0bn

Operating CF

Cumulative ¥250.0bn
over 5 years

Strategic Investment（M&A, new businessdevelopment）

Max ¥30.0bn● Screen prospective
investments● Reduce inventory

Shareholder Returns
Dividends
20-30% payout ratio
Consider acquisitionof own shares© 2021 Tokuyama Corporation. All rights reserved. 25

２▶Contribute to mitigation of Global Warming▶FY50 CO2 Emission Reduction Target

地球温暖化防止への▶Carbon-Neutrality Action Plan
Contribute to mitigation 貢献

of Global Warming© 2021 Tokuyama Corporation. All rights reserved. 26

Contribute to mitigation of Global Warming
Expedite development/commercialization of next-gen energy technologies
Reduce total CO2 emissions 30%* (2.00mil. MT) by FY30
CO2 reduction
scope*FY19 baseline: 6.76mil. MT
Initiatives for FY50 carbon neutrality

Emissions fromenergy inputs

Captive power
plantsEmissions fromraw materials(limestone)

Cement▶Seek to reduce limestone consumption

Chemicals▶Explore possibility of offsetting emissions with CCU technologies,
green products, etc. (already underway)▶Zero CO2 emissions（target a 50% reduction in FY30）

30%

Reduction from FY19

Achieve carbon
neutrality by FY50

© 2021 Tokuyama Corporation. All rights reserved. 27

FY50 CO2 Emission Reduction Target

Aiming to decarbonize raw material/fuel inputs and achieve carbon-neutrality
by developing/deploying green products
CO2 from energy[Power plants] Use biomass/hydrogen (ammonia) as mono-fuel or in combination with other fuels,
use local energy[Cement]
Increase combustible waste usage[Whole plants] Increase energy efficiency, improve processes, upgrade equipment

CO2
emissions❶

CO2 from raw materials(70)%[Cement][Chemicals]

Increase SCMs, develop calcium recycling technologies
Improve processes

Green products, technological innovations

6.76mil. MT[R&D]

Additionally, for ❶ through ❸Transform business portfolio,
collaborate with other companies
in Shunan petrochemical complex,
productively use waste heat

FY19
(Baseline)❷

Develop CCU technologies and green products

(10)%
❸

(20)%

FY50 target© 2021 Tokuyama Corporation. All rights reserved. 28

Carbon-Neutrality Action Plan
TCFD: Recommendations on February 25, 2021
Adopt green hydrogen
Effectively utilize CO2(develop CCU technologies)
Develop green products

Develop green products

Develop green products

Collaborate with other companies
in Shunan petrochemical complex
Use local energy (bamboo and other fast-growing trees)
Use biomass/hydrogen (ammonia) as mono-fuel or in
combination with other fuels, use renewable energy
Improve Tokuyama Factory’s
energy efficiency andprocesses■ Reduction of CO2 emissions
from energy / raw materials■ Technological development

Transform businessportfolio

FY21

FY30

FY50
© 2021 Tokuyama Corporation. All rights reserved. 29

3▶CSR Priorities
Practice socially
responsible management© 2021 Tokuyama Corporation. All rights reserved. 30

CSR Priorities

Committed to addressing CSR priorities (materiality) through concrete
action plan aimed at realizing vision
Tokuyama’s Vision
Be a value-creative company
that places first priority on R&D
and marketing
A company that never stops
challenging new domains whilerefining and exploiting its
unique strengths
Be a company with healthy
employees who have healthyfamilies and take pride in theirwork at their company

CSR priorities
Helping to Fight Global Warming
Environment

Conserving the environment
Preventing accidents and preparing fordisasters
Developing products and technologies that
address social issues
Improved chemical management andproduct safety

Technical Quality

Engaging with local communities
Promoting CSR procurement
Developing human resources

A company that fosters bonds
with people in communities
and societies worldwide

Safety and Accident Prevention
Occupational Health and Safety

Society

Promotion of diversity and career fulfillment
Promotion of physical / mental health© 2021 Tokuyama Corporation. All rights reserved. 31

© 2021 Tokuyama Corporation. All rights reserved.

Appendix© 2021 Tokuyama Corporation. All rights reserved. 33

Review of Medium-Term Management Plan: Cornerstone of the Group’s Revitalization

5-year Q2Q (quantity to quality) shift under banner of “building a new foundation”

Consolidated operating profit (Planned) (¥mil.)

MTMP: Cornerstone of theGroup’s Revitalization
FY16 – 20

Life & Amenity：11%
Specialty Products：23%
Cement：16%
Chemicals：50%
TMSB
FY25
（Target）*TMSB: Tokuyama Malaysia

Progress of Q2Q (quantity to quality) reforms
Accomplishments

Next steps

Growth businesses*

Steadily invest andstrengthen business foundation

Further expedite growth and expand
overseas

Traditional BusinessSurpassed cost-cutting targets

Boost productivity through DX*Growth businesses…Specialty Products and Life&Amenity segments© 2021 Tokuyama Corporation. All rights reserved. 34

Review of Previous Medium-Term Management Plan

Changes in operating profit by factor
Operating profit fell short of target, largely due to increased spending on
repairs and R&D in pursuit of future growth
Semiconductor-related
products （+）
Dental materials/equipment（+）+4.5¥36bn target

+8.0
+10.2

23.0

(5.6)

Tokuyama Factory
cost cuts, etc.
（+）

Petrochemicals
（－）

+0.7

Reduced raw material
and fuel price
（+）

（¥bn）

(9.0)

Investments in future
growthPersonnel expenses (3.0)
R&D (2.2)
Depreciation (0.4)

Transfer of TMSB
（+）

30.9

Maintenance/replacement
investment deferred
due to TMSB’s losses
Expenses in repairs (5.2)

FY15

FY15

TMSB

TMSB
improvement

Raw material and
fuel
price
Raw

material/fuel
costs

Sales

volumeSales
volumeSelling

price
Sales
prices

Improvementof operation
Improvementof operation

Other(fixedOther
costs, etc.)

FY20（Result）
FY20(fixed costs, （Forecast）*TMSB: Tokuyama Malaysiaetc.)© 2021 Tokuyama Corporation. All rights reserved. 35

Tokuyama’s Evolution
103-year history of adding value attuned to the needs of the times
Launched recycling business in response toburgeoning environmental consciousness

2013

Liquid hydrogen2000 Material recyclling1985 Pharmaceutical ingredients / intermediates1985 Aluminum nitride
1984 High-purity polycrystalline silicon

Branched into healthcare spaceand electronic materials that
support information society

1983 Medical diagnostic systems
1983 High-purity chemicals for electric manufacturing
1982 Plastic lens materials
1981 Plastic window sashes
1978 Dental materials / equipment
1972 Isopropyl alcohol

Supplied basic materials
1967 Ion exchange membranes
and chemical derivatives,
1966 PVC resin
supporting postwar
1964 Propylene oxide
reconstruction andrapid economic
1952 Caustic soda
growth1940 Calcium chloride
1938 Cement
1918 Soda ash
1918

1950

1960

1970

1980

1990

2000

2010

2020

© 2021 Tokuyama Corporation. All rights reserved. 36

Ever Faster Societal Change
How should Tokuyama evolve to keep growing?
Planet Earth

Global warming
Decarbonization

SDGs

Society

4th industrial revolution

International
cooperation

Japan

Changes inindustrial
structure
Environmental
regulatory
tightening Automation

Closed-loop
society

Marketshrinkage

Labor
shortages

Population shrinkage,societal aging
Tokuyama

Society 5.0
Healthspanextension

Healthcare
spending
cuts

Changing
values
Productivity
growth© 2021 Tokuyama Corporation. All rights reserved. 37

Tokuyama’s Mission

Tokuyama has updated its mission statement (management philosophy)
to sharpen its focus on essential value

To create a bright future in harmony with the environment,in collaboration with its customers, based on chemistry

While remaining rooted in chemistry,
Tokuyama will branch out beyond the materials
domain with an environmentally conscientious mindset,
embracing a mission of creating products
and services that contribute to people’s convenience,
health, comfort and happiness in collaboration with customers.
© 2021 Tokuyama Corporation. All rights reserved. 38Disclaimer
This material is supplied to provide information of Tokuyama and its Group
companies, and is not intended as a solicitation for investment or other actions.
This material has been prepared based on the information currently available andinvolves uncertainties. Tokuyama and its Group companies accept no liability inrelation to the accuracy and completeness of the information contained in thismaterial.
Tokuyama and its Group companies assume no responsibility whatever for any
losses or deficits resulting from investment decisions based entirely on projections,numerical targets and other information contained in this material.
Accordingly, the information on this material may not be used, reproduced, altered,
distributed, sold, reprinted or published without the prior approval of the Company.
© 2021 Tokuyama Corporation. All rights reserved.

© 2021 Tokuyama Corporation. All rights reserved.