加速する社会変化

FY2023 Management Briefing
June 2, 2023
Hiroshi Yokota, President
Tokuyama Corporation© 2023 Tokuyama Corporation. All rights reserved.

1Medium-Term Management
Plan 2025▶Medium-Term Management Plan 2025
▶Final Year Targets© 2023 Tokuyama Corporation. All rights reserved.

2

Medium-Term Management Plan 2025
FY21 - 25

1

Transform businessportfolio

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

2

Contribute to mitigation of
global warming

Expedite development/commercializationof next-gen energy technologies; Reducegreenhouse gas emissions 30% from FY19
by FY30
Step up high-priority CSR initiatives to lay

3Practice socially
responsible management

groundwork for further growth and realize
our vision© 2023 Tokuyama Corporation. All rights reserved.

3

Medium-Term Management Plan 2025 ~Changes Since the Plan Was Formulated
Changes and Actions in FY2021~FY2022
 Major changes have occurred in the business environment, including trade friction between the U.S. and China anderratic fluctuations in resource prices stemming from economic sanctions on Russia due to its invasion of Ukraine, as
well as large fluctuations in exchange rates caused by interest rate hikes in the U.S. and Europe as monetary easing inJapan continues.
 Efforts to reduce CO2 emissions to achieve carbon neutrality have been accelerated.
 There is also a pressing need for reforms at manufacturing sites in preparation for a reduced workforce due toprogression of the declining birthrate and aging population.

Changes of External environment

Changes of Internal environment

Actions for Changes▶ Soaring price of raw materials and▶ Rise in manufacturing cost due to▶ Revise sales prices▶ Accelerate business portfolio

fuel- Coal and naphtha, etc.

▶ Global inflationary trend▶ Advancement in adopting DX(digital transformation)▶ Accelerated demand for carbon
neutrality▶ Demand for climate change
responsesoaring price of raw materials andfuel▶ Increase in expenses (e.g.,logistics costs and others)▶ Awareness of necessity for
adoption of DX▶ Promoting coal phase-out initiatives▶ Accelerating initiatives based on theperspective of sustainability▶ Enhance the CSR structure
including response to TCFD

transformation▶ Promote cost reduction and costshifting▶ Build a TDX*1 structure▶ Enhance the CSR structure
including response to TCFD
*1 TDX: Tokuyama DX© 2023 Tokuyama Corporation. All rights reserved.

4

Final Year Targets
KPI

FY22
（Result）

FY25（Target）¥320.0bn

Factors in Achieving Targets
Focus on portfolio transformation
Reflect cost inflation¥351.7bn(Current Outlook)¥400.0bn

Operating
Profit¥14.3bn¥45.0bn

Expand operating profit approaching FY25
Revise by changing depreciation method

Growth Business
Net Sales Growth
Rate

20.1%

CAGR
≥10%

Strengthen R&D,
accelerate international expansion≥ 11%

Balance shareholder’s equity efficiency
and financial baseRevise by changing depreciation method

Net Sales
経営目標

ROE

4.1%

(Note) Assumptions (FY20 at the time of plan formulation): exchange rate (¥/US$) 105, domestic naphtha price (¥/kl) 32,500
FY22 results: exchange rate (¥/US$) 135, domestic naphtha price (¥/kl) 76,600© 2023 Tokuyama Corporation. All rights reserved.

5▶Target Business Portfolio

１
Transform businessportfolio▶Strategy by Business▶Capex Plan Breakdown▶Cash Flow Generation and Allocation▶Cash Flow Trend and Plan

© 2023 Tokuyama Corporation. All rights reserved.

6

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

Targetingcombined sales
share of at least

Sales growth driven by aggressive investment in electronics,
healthcare and environmental domains
We expect chemicals and cement’s shares of sales to shrink
in tandem with domestic demand

39％
Electronic& Advanced
Materials

35％

25%

Life Science

22%

10%
4%

Eco Business
Chemicals

10%
3%
28%

32%

38％
26%
10%
2%
33%

45％～

60%
34%

33%
11%
1%
30%

18%
10%
17%

Cement

18%

16%

18%

16%

12%

Other

19%

13%

11%

10%

9%

FY20
（Result）

FY21（Result）

FY22（Result）

FY25
FY30（Current Outlook） （Planned）(Note) The sales ratio in each segment was calculated using monetary amounts that include sales between segments.
FY20 was created using reference values that include the financial impact of the current “Accounting Standard for Revenue Recognition ,” etc. © 2023 Tokuyama Corporation. All rights reserved.

7

Strategy by BusinessBusiness Goal

Chemicals

Ensure stable earnings in the existing businessPriority Measures▶Strengthening the Chloro-alkali and PVC chain to maximize profits▶Reduction of CO2 emissions and waste through the development andintroduction of world-class energy-efficient electrolyzers and manufacturing
process improvements▶Improve manufacturing processes and supply chains through promoting DX
Progress to Date

▶ Implementation of sales price corrections, Building a collaborative system bymaking Shindai-ichi Vinyl Corporation a wholly owned subsidiary▶Launch of a project to improve the soda ash manufacturing process to reduce
CO2 emissions▶Started activities of SCM visualization project by DX
Future Endeavors▶Demonstrate a competitive top-class electrolyzers▶Reduction of CO2 emissions and waste by improving the soda ash
manufacturing process▶Improving productivity through systematization of production planning usingAI© 2023 Tokuyama Corporation. All rights reserved.

8

Strategy by BusinessBusiness Goal

CementBecome the domestic industry leader in energy
efficiency

Priority Measures▶Introduce energy-saving equipment to reduce CO2 emissions▶Reduce the amount of coal usage by accepting more fuel-based wastematerials such as waste plastic
Progress to Date

▶Improve profitability by implementing price revisions and using low-grade coal
▶Reducing coal consumption by expanding the use of waste plastics and tires▶Optimized management resources and streamlined management by merging
4 sales subsidiaries

Future Endeavors▶Consider suspending operations of a cement kiln
▶Implement initiatives to expand acceptance of waste plastic▶Promotion of energy conservation by introducing clinker cooler equipment© 2023 Tokuyama Corporation. All rights reserved.

9Strategy by BusinessBusiness Goal

Electronic& Advanced
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
Progress to Date

▶Formosa Tokuyama Advanced Chemicals Co., Ltd. (FTAC; joint venture in Taiwan)
began shipping high-purity IPA▶STAC Co., Ltd. (joint venture in Korea) began high-purity IPA plant construction▶Established a facility base to explore mass production of thermal management
materials▶Strengthened quality control for semiconductor-related products
Future Endeavors▶Increase profits by ensuring full operation FTAC, and launch STAC
▶Enhance lineup of thermal management materials▶Further bolster quality control for semiconductor-related products© 2023 Tokuyama Corporation. All rights reserved.

10Topics

Signing a Memorandum of Understanding Pertaining to Collaborationin the Semiconductor-Grade Polycrystalline Silicon Business

Commercialization,
Quality assurance andSales

Tokuyama
Corporation

Contract between shareholders(to be signed)
Commercialization,
Quality assurance andSales

OCI Company Ltd.

50%

Investment
50%

Investment
50%

Joint production
company
Malaysia
Samalaju Industrial Park

Semiconductor-grade
Polycrystalline silicon
Semi finishedproducts

50%▶ This endeavor plans to jointly produce polycrystalline silicon for semiconductors with OCI(Establish a joint production company, Manufacturing capacity: Approx. 10,000 tons/year)▶ Polycrystalline silicon commercialization quality assurance , and sales will be independently conductedby both companies▶ The joint production company is expected to use hydro-electric power▶ The joint production company will be a consolidated subsidiary of OCI and a company under the equity
method of Tokuyama© 2023 Tokuyama Corporation. All rights reserved.

11

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▶Strengthen the marketing system and accelerate expansion of production
capability to further boost market share of dental materials outside Japan▶Develop new products and strengthen sales activities to further expand thephotochromic market outside Japan▶Strengthen the medical diagnostic systems business
Progress to Date

▶Expanded share in the U.S. and Europe by introducing new dental materials
products(OMNICHROMA)▶Augmented production capability for dental materials▶Augmented production capability for plastic lens materials
Future Endeavors▶Further augment production capability for dental materials and make intoa smart factory▶Enhance lineup of plastic lens materials and APIs and intermediates▶Expand sales and profits of medical diagnostic products, and strengthen
development of diagnostic reagents© 2023 Tokuyama Corporation. All rights reserved.

12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
Progress to Date

▶Constructed new plant in Muroran, Hokkaido Plant, the 3rd facility for waste
gypsum board recycling▶Decided to transfer some shares in EXCEL SHANON CORPORATION▶Explored commercialization of recycling processing technologies for photovoltaic
modules▶Introduction of demonstration equipment of alkaline water electrolyzers
Future Endeavors▶Develop and strengthen supply system for ion exchange membranes, and develop
next-generation membranes▶Launch Muroran Plant for waste gypsum board recycling▶Establish mass production technologies and a business model for photovoltaic
module recycling▶Establish as a competitive alkaline water electrolyzer business structure© 2023 Tokuyama Corporation. All rights reserved.

13

Strategy by Business
FY2022（Result）

FY2023（Forecast）

FY2025（Target）

Recentbusiness
confidence

Points

Net sales

OperatingprofitNet sales

OperatingprofitNet sales

Operatingprofit*Chemicals

116.2

6.8

128.0

12.5

85.0

14.5

Cement

58.5

(3.7)

69.0

6.0

56.0

5.0

Adjustment in production capability,
effect of expanding acceptance amount ofwaste plastic

Electronic &Advanced Materials

91.5

7.0

103.0

9.0

102.0

20.5

Trends in semiconductor market

Life Science

37.5

7.3

40.0

7.5

46.0

8.0

Effect of augmenting dental
materials production capability

Eco Business

13.8

0.0

8.0

0.0

18.0

1.5

Boosting production efficiency,
improving profitability

Others

47.3

2.0

45.0

2.0

38.0

6.5

Profitability of selling electric power

365.1

19.6

393.0

37.0

345.0

56.0

―

Adjustment andcorporate-wide
expenses(13.3)(5.3)(13.0)(7.0)(25.0)(11.0)―

Consolidated results

351.7

14.3

380.0

30.0

320.0

45.0

―

(Billions of yen)

Total

China’s economic recovery,
Asian market trends

Revise by changing depreciation
method(Note) The sales ratio in each segment was calculated using monetary amounts that include sales between segments.
*FY25 operating profit reflects the impact of changes in depreciation method.
© 2023 Tokuyama Corporation. All rights reserved.

14Capex Plan Breakdown
Key words are priority investment in growth fields, reduction of CO2 emissions,and energy saving
Capex Plan Breakdown (FY21-25)
GrowthBusiness

15%
16%

At the time ofplanning

Rationalization/ energy saving/ CO2 reduction

17%

32%

Current
Outlook

13%

36%

Infra-structure
for growth¥160.0bn~¥200.0bn

R&D

10%

10%
9%

18%
*Plan

4%

Traditional
Business

20%

Others*Result & Plan

Major Capex Results
 Construction of the factory of joint venturecompany in Taiwan for high-purity IPA

 Waste gypsum board recycling business
Construction of a new plant in Muroran Construction of the factory of joint venturecompany in Korea for high-purity IPA

 Establishment of the Center forCommercialization of Advanced Technology

 Production capacity expansion of dental materials© 2023 Tokuyama Corporation. All rights reserved.

15

Cash Flow Generation and Allocation● Earnings growth● Cash flow fromnew products

Operating CF

Cumulative ¥250.0bn
over 5 years● Screen prospective
investments● Reduce inventory・FY21,22:Sluggish operating CF
・Continued disciplined investment

Capex¥200.0bn

Strategic Investment（M&A, new businessdevelopment）

Max ¥30.0bn

Shareholder Returns
Dividends
20-30% payout ratio
Consider acquisitionof own shares© 2023 Tokuyama Corporation. All rights reserved.

16

Cash Flow Trend and Plan
Consolidated(Billions of yen)

80.0
Operating CF

60.0
40.0

Investing CF

Free CF

FY24
Plan

FY25
Plan

43.3
25.9

20.0
0.0
(20.0)(11.8)(19.2)(40.0)(60.0)(33.7)(33.7)
FY20

FY21

FY22

FY23
Plan

© 2023 Tokuyama Corporation. All rights reserved.

17

２▶Change in the Calculation Method for

地球温暖化防止へのContribute to mitigation 貢献 Greenhouse Gases (GHG Emissions)of Global Warming© 2023 Tokuyama Corporation. All rights reserved.

18

Change in the Calculation Method for Greenhouse Gases (GHG Emissions)
The calculation method for CO2 emissions was changed from calculations based on Japan’s Act
on Promotion of Global Warming Countermeasures (SHK system) to calculations based on the
GHG Protocol (conforming to TCFD, etc.)

GHG Emissions Reduction Target
SHK system（Current medium-term
management plan）

GHG Protocol（Conforming to TCFD）

30% reduction from FY198GHG Emissions, mnt

77.26mnt-CO2

6.76mnt-CO2

65.08mnt-CO2

4.73mnt-CO2

5
4
3
2
1
0

FY19
(Baseline)

FY30(Target)

FY19(Baseline)

FY30(Target)SHK system
Calculation
GHG Protocol（Current medium-term
Method(Conforming to TCFD)
management plan）

FY19
emissions

6.76mnt-CO2

7.26mnt-CO2

FY30
emissions

4.73mnt-CO2

5.08mnt-CO2

Reduction
rate

30％

30％

Electricity
sales,
Steam sale

Not included

IncludedGroup
companies
outside Japan

Not applicable

Applicable© 2023 Tokuyama Corporation. All rights reserved.

19

3▶Progress in CSR Management
Practice socially
responsible management© 2023 Tokuyama Corporation. All rights reserved.

20

Progress in CSR Management ~Strengthening Implementation Structure
Newly established a committee that addresses sustainability issues in the CSR management
implementation structure
Cross-departmental initiatives started for disclosing climate change responses and humanrights measures

CSR Promotion Council
Risk Management andCompliance Committee

From the viewpoint of risk management and compliance,
established expert committees to handle cross-departmental
efforts in areas of especially high expertise and importance

Financial Reporting Committee
Fair Trade and Competition Committee
Security Trade Committee
Information Security Committee
Environment Committee
Safety Committee
Product Safety and Quality AssuranceCommittee
NEW

Sustainability Committee(Newly established in FY22)

Responded to issues
related to sustainability
such as “addressing
climate change” and“business and humanrights” that do not fit into
existing categories ofexpert committees© 2023 Tokuyama Corporation. All rights reserved.

21

Supplementary Materials© 2023 Tokuyama Corporation. All rights reserved.

23

1 Transform business portfolio

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

overseas

21%

overseas

29%

FY20

FY22

Domestic

Domestic

79%

71%(Note) FY20 was NOT created using reference values that include the financial impact of the current “Accounting Standard for Revenue Recognition ,” etc.
© 2023 Tokuyama Corporation. All rights reserved.

24

1 Transform business portfolio

R&D policy

Medium-Term Management Plan 2025
Make the transition to a company that creates value and provides solutions❶ 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 started❷ Strengthening business division R&D▶Have a wider range of product variations
which can meet customer requirements▶Accelerate the pace of development❸ Strengthening open innovation

Initiatives until FY2022
Promoted the development of growthbusinesses by improving corporate
development bases●●

Tsukuba Research Laboratory II
Tokuyama Taiwan●●

Tokuyama Research Laboratory
Strengthening analytical skills
Center for Commercialization ofAdvanced Technology●●● Electronics● Environment● Healthcare●●

Developed tailored to client needsin business division development▶Expanded heat management products
and strengthening systems▶Pioneered new uses for silica products
e.g., uses in leading-edge semiconductormaterials, uses in cosmetics, etc.
▶Water electrolyzers: verified
commercialization and consideredbusiness structure

Accelerated development speed
through joint research with
Taiwan’s Industrial Technology
Research Institute (ITRI),
universities, national institutes,
etc.

▶Developed new medical products

UniqueHigh purification

Nitride reduction

Technologies

SinteringPowder control

Crystallization, deposition

Electrode and membrane

Sol-gelPhotopolymerization

Molecular design© 2023 Tokuyama Corporation. All rights reserved.

25

1 Transform business portfolio

Promoting Digital Transformation (DX)
Promote DX by utilizing data and digital technology

Created a TDX*1 basic policy and action plan, and developed a system
TDX Projects fully started in April 2022. 25 initiatives in 8 categories will be launched sequentially
TDX basic policy〈 Phase 3 〉Promoting Reforms〈 Phase 2 〉 Preparing foundations for reforms〈Phase1〉 Steps to ensure corporate survival
FY30〈Changes in the world〉Declining workforce, increasing of digitalization, changes in competitive environment

Overcome Change

Promotion system

Project owner: President

Steering committee:
Executive Committee members

PM: General Manager,
Corporate Planning Division

TDX PJ

Workstyle DX Project

Corporate DX Project

Manufacturing DX Project

SCM DX Project
Business Innovation ProjectDX certification
Acquired January 2022

R&D DX Project

Digital Platform Project

Other DX activities in Tokuyama GroupKPIs: DX Promotion Indices *2 set at

3.5 pts.

(perfect score of 5 pts. by 2025)

FY20
FY22

0.8 pts.

2.43 pts.

(Avg. score of 1.94 pts. for large Japanese corporations)*1 TDX: Tokuyama DX *2 Simple indices enabling self-diagnosis to promote digital management reform (drawn up by Japan’s Ministry of Economy, Trade and Industry)© 2023 Tokuyama Corporation. All rights reserved.

26

2 Contribute to mitigation of Global Warming

FY2030 GHG Emission Reduction Targets

Reduce greenhouse gas emissions 30% from FY19 by FY30
Originating from fuelIn-house power
generation

Originating from raw

Cementmaterials and waste

Chemicals, etc.

Originating from fuelOriginating from waste▶ Aiming for a 50% reduction in GHG emissions▶ Considering suspension of a cement kiln, actively using waste for raw materials and fuel▶ Currently exploring the potential of CCUS technologies, environmentally friendly products,
etc.

Originating from raw materials

（mnt）

8.00
7.00

7.26mnt

Originating from waste, rawmaterials and fuel (except for
in-house power generation)

6.00

400
4.00
350
3.50
300
3.00
250
2.50
200
2.00
150
1.50
100
1.00
50
0.50
0.000

5.00

30%

4.00

2.00

Originating from fuel(from in-house power
generation)

1.00

FY19 FY20 FY21 FY22
(Baseline)

FY23

Achieve carbon neutrality
by FY50～～

0.00

Increase waste input

FY19 2020
FY20 FY21
FY22 2023
FY23 2024
FY24 FY25
FY26 2027
FY27 2028
FY28 2029
FY29 2030
FY30
20192021 2022
2025 2026

Increasing the amount of co-firingof biomass will start in FY25

（mnt）

reductioncompared
to FY19

3.00

Considering suspension of 1
cement kiln

（mnt）

FY50

450
4.50
400
4.00
350
3.50
300
3.00
250
2.50
200
2.00
150
1.50
100
1.00
50
0.50
0.000

Ammonia co-firing will startin FY2750％ reduction2019 20202021 2022
2025 2026
FY19
FY20 FY21
FY22 2023
FY23 2024
FY24 FY25
FY26 2027
FY27 2028
FY28 2029
FY29 2030
FY30

ResultConsideration/preparation
periodReduction will start in FY25

Estimate© 2023 Tokuyama Corporation. All rights reserved.

27

2 Contribute to mitigation of Global Warming

Renewable Energy Introduction Targets for FY2030
Ratio of Renewable Energy Use by FY30 (including ammonia combustion) Approx. 30%
Originating from fuelIn-house power
generation

Energy consumption(including selling electric power)（TJ）▶Define the total amount of electricity generated by biomass, ammonia, and hydrogento be renewable energy
Through business portfoliotransformation
Energy reduction

Other thanTokuyama

Non-renewable energy

NH3

Tokuyama

renewable energy

Energy derived
from waste

70,000

Renewable energy(including ammonia combustion)

Approx. 30%

60,00050,00040,00030,00020,00010,000

FY19
2019

2020
FY20

2021
FY20

2022
FY22

～
～

0

2030
FY30 (estimate)*Energy from thermal recycling of heavy oil ash, sludge (organic, fuel, valuable combustibles), etc., that is effectively utilized in cement processing is not included inenergy originating from waste.
© 2023 Tokuyama Corporation. All rights reserved.

28

2 Contribute to mitigation of Global Warming

GHG Emission Reduction Targets for FY2050
Aim to reduce energy-originated CO2 emissions and achieve carbon neutrality by effectively
utilizing CO2 originating from raw materials, developing environmentally friendly products, etc.

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 emissions by
the SHK system

Approx. 6.76 mnt↓❶

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

Increase SCMs, develop calcium recycling technologies
Improve processes

Green products, technological innovations

Emissions fromthe GHG Protocol

Approx. 7.26 mnt[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© 2023 Tokuyama Corporation. All rights reserved.

29

2 Contribute to mitigation of Global Warming

Initiatives in FY23

Technology development●Developing water electrolyzers●Establishing a base for water electrolyzer business in
the Center for Commercialization of Advanced Technology

Originating of fuel, rawmaterials and waste

Adopt green hydrogen●Conducting a verification
test for CO2 capture from
cement*Effectively utilize CO2(develop CCU technologies)
Develop green products

Develop green products●Manufacturing methanolfrom emitted CO2*

Develop green products*Still at feasibility study level●Developing carbon-negative concrete
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 and processes

Transformbusiness portfolio

FY22●Participating in the Shunan Industrial Complex
Decarbonization Promotion Council●Concluding a partnership agreement for
utilizing woody biomass materials●Blue carbon offsets●Power Stations: shift from coal to biomass/ammonia●Efficiently utilize biomass combustion ash and CCUS
●Consider suspending operation of a cement kiln
FY30

FY50
© 2023 Tokuyama Corporation. All rights reserved.

30

3 Practice socially responsible management

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© 2023 Tokuyama Corporation. All rights reserved.

31

3 Practice socially responsible management

Development and Systematize of Sustainability Policies
Develop and systematize our corporate approach and view on sustainability, which are at thefoundation of CSR management implementation, in order to accelerate materiality initiatives

Tokuyama’s Vision

Develop and systematize sustainability policies
guided by a redefined top leadership vision.
Prepare for non-financial information disclosure

MissionVision and Values

Basic Sustainability Principles
Established the TokuyamaGroup Human Rights Policy on
December 1, 2022.

Revised the Tokuyama Group Code of Conduct
on April 1, 2023

Code of Conduct

Human Rights Policy
Basic HealthManagement policy

Established the Tokuyama Group Basic
Sustainability Principles on April 1, 2023

Various Policies
Safety Management
Quality Policy
PolicyBasic Purchasing
Human Resources
PolicyPolicyEnvironmental Policy…
Anti-Corruption Policy …

Materiality (CSR Priorities )Helping to fightglobal warming
Engaging with local
communities

Conserving theenvironment
Promoting CSR
procurement

Preventing accidents andpreparing for disasters
Developing humanresources

Developing products and technologies Improved chemical managementthat address social issues
and product safety

Promotion of diversity
and career fulfillment

Promotion of physical &mental health© 2023 Tokuyama Corporation. All rights reserved.

32

3 Practice socially responsible management

Promotion of Physical and Mental Health
Chosen for the 2023 Health & Productivity Stock Selection for the first time
This is a major step forward for the “promotion of physical and mental health,” which is one
materiality

Japan’s Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange have jointly been
selecting outstanding listed enterprises engaging in a health management program. Tokuyama’s
steady endeavors toward health management were recognized for the first time when it became
one of the 49 companies in 31 industries chosen in the 2023 selection.
© 2023 Tokuyama Corporation. All rights reserved.

33

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.
© 2023 Tokuyama Corporation. All rights reserved.

34