Vision for 2030
FY2023-2025 Medium-Term Management Plan

May 8, 2023

(C)2023 Toho Titanium Co., Ltd.

1. Vision for 2030

(C)2023 Toho Titanium Co., Ltd.

2

Restructuring the Vision for 2030
 In 2022, we adopted the basic policy of "promoting ESG management."
This involves solving social issues surrounding the company and its
stakeholders through its business activities.
The aim is to share the idea of contributing to the sustainable developmentof society throughout the company.
Management

 In 2023, we willcelebrate the 70th anniversary of our founding. From a longerPhilosophy
term perspective,
we policy
will strive to contribute to corporate management andBasic actionsociety, and webe conscious of the "100-year company."
Codewillof Conduct Accordingly, in addition to updating the "Vision for 2030," which is a milestone,
we have decided to restructure it with a new goal in order to foster a sense ofunity by bundling the vectors of the entire Group together.

Medium-Term
Management Plan(C)2023 Toho Titanium Co., Ltd.

3

Promotion of ESG management
ManagementPhilosophy

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.

Conserving
the global
environment

Realizing a society withsafe, secure
mobility

QOL(Better qualityof life)

Business
partners

Employees
and families
Appealing
workplaceContribution
to society
Customers

Revitalizing
industry

ComfortablelivingShareholders& investors

Contribution
to global
environmental
conservation

Solidifying
our managementfoundation

Local
community &society

Cultural preservation& transmission to next
generation

Providingvalue to society

ESG management
Human resourcesCorporate Governance07

INTEGRATED REPORT 2022

INTEGRATED REPORT 202208

Vision for 2030

[Catchphrase]

By creating advanced materials andtechnologies
Have flexibility to change the environment
As a highly profitable company
Contribute to the development of a highly
recycling-oriented society

Beyond Expectations!
"BE2030"
Employees and theirfamilies

Shareholders andinvestors※ Beyond Expectations 2030

(C)2023 Toho Titanium Co., Ltd.

5

Vision by Business in 2030
Titanium sponge for aircraft
TOP of global sales shares
Ordinary income margin of 10%or more

Sales scale ¥10 billion

Newbusinesses

Titanium Metal
business

Double sales(vs. FY22)
・Ordinary income
margin of 15% ormoreWEBTi®

Chemicals
businessMedium-Term

TOP in Nickel Powder Domestic
Management PlanSales
Ordinary income margin of 15%or more

Catalyst
business
TOP3 of global PP catalyst sales
sharesOrdinary income margin of 20%
or more(C)2023 Toho Titanium Co., Ltd.

6

Targets for FY2030
Net sales: Approx. 2 times compared to FY2022
Ordinary Income : Return on Sales (ROS)15% or more

(Billions of yen)

(Reference) FY2022

FY2030Net sales

170

Ordinary income2580[ROS](15%)

11ROE

10% or more

15%ROIC

10% or more

8%Less than 1.0 times

0.84

D/E ratio

Medium-TermManagement Plan

(C)2023 Toho Titanium Co., Ltd.

7

2.2023-2025 Medium-Term Management Plan

(C)2023 Toho Titanium Co., Ltd.

8

Positioning of the FY2023-2025 Medium-Term Management Plan
Clarification andquantification of targets
Vision for
2030
Recognize the gap with the current situation against the 2030
target. Develop a catch-up strategy to this end and position thethree-year action plan in the FY2023-2025 Medium-Term
Management Plan.

GapCatch-up strategy

Action plan
Medium-TermManagement Plan
2022

2023-2025

2026～(C)2023 Toho Titanium Co., Ltd.

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Vision by Business Segment and Key Measuresin the 23-25 Medium-Term Management Plan
1Titanium Metal Business

2030
VisionCurrent
situation

CatchUpstrategy

23-25 KeyMeasures

Business environment estimation
The aircraft industry is expected to grow at
an annual rate of about 4%◆TOP of global sales of titanium sponge for airplanes◆Ordinary income margin of 10% or more

◆3rd place in the world market share for titanium sponge◆Ordinary income margin below zero excluding inventory impact
in the previous fiscal year
◆Optimization of sponge titanium price level◆Increase in processing margin due to increased production of titanium ingots◆Increase capacity by partial improvement of titanium sponge(Wakamatsu/Chigasaki Plant)◆Considering the construction of a new plant capable of securing profitability◆30% improvement in labor productivity◆Price formula linked to cost fluctuations◆Increase production capacity of titanium sponge at
Wakamatsu/Chigasaki Plant (3kt/ year)◆Saudi Ponge Plant (ATTM) full-scale operation◆Improvement of titanium ingot production efficiency(C)2023 Toho Titanium Co., Ltd.

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Vision by Business Segment and Key Measuresin the 23-25 Medium-Term Management PlanCatalyst Business

2Business environment estimation
Polypropylene demand is expected to growat an annual rate of about 4%

2030
Vision◆TOP3 of PP Catalyst Sales Shares◆Ordinary income margin of 20% or more

Currentsituation◆5th in the global market for PP catalysts◆Ordinary Income to Net Sales 33%

CatchUpstrategy◆Improvement of production technology at the Kurobe and Chigasaki plants(approximately 40% increase compared to the current production capacity)◆Increase production capacity by constructing a new plant (approx. 30% increase
compared to current production capacity)◆Develop aggressive markets by enhancing catalyst performance◆30% improvement in labor productivity

23-25 KeyMeasures◆Increase production capacity by improving production technology, etc. (approx. 6%
increase compared to current production capacity)◆Formulated a plan to increase capacity by constructing a new plant(C)2023 Toho Titanium Co., Ltd.

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Vision by Business Segment and Key Measuresin the 23-25 Medium-Term Management Plan
Chemicals Business

32030
VisionCurrentsituation

CatchUpstrategy

Business environment estimation
MLCC demand is expected to grow at
an annual rate of about 7%◆TOP in Nickel Powder Domestic Sales◆Ordinary income margin of 15% or more
◆3rd place in the domestic market share for nickel powder◆Ordinary income margin excluding inventory valuation
gains/losses: 12%◆Increase production capacity by starting operation at the fifth plant(Approx. 40% increase compared to current production capacity at total
completion)◆Concrete investments for the next fiscal year (approx. 30% increase comparedto the current production capacity)◆30% improvement in labor productivity◆Expansion of production capacity by the 5th plant (scheduled for23-25 Key FY25)
Measures (Approx. 20% increase compared to current production capacity)(C)2023 Toho Titanium Co., Ltd.

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Vision by Business Segment and Key Measuresin the 23-25 Medium-Term Management Plan
New businesses

42030
VisionCurrentsituation

CatchUp
strategy◆Sales scale ¥10 billion◆Progress in commercialization of titanium porous material (WEBTi®)◆New business projects under consideration following this◆WEBTi® business expansion◆Creation of new businesses◆Commercialization of WEBTi® in the New Materials Division
23-25 Key ◆To increase production capacity in line with business expansion
Measures ◆Planning and development of new business themes at the Technology
Strategy Department and the Technology Development Center(C)2023 Toho Titanium Co., Ltd.

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Promotion of ESG management (Vision for environmental "E" andmain measures in the 23-25 Mid-term Management Plan)
1

Contribution to Conservation of theGlobal Environment
VisionCatch-up Strategy and Key Measures of the 23-25 Medium-Term
Management Plan

Realization of a decarbonized society★ 2030 CO₂ emissions: 150,000 t/y(▲ of 40% compared to fiscal 2018)◆Develop new titanium-based smelting techniques, CO₂ free power, introduce
carbon neutral LNG, etc.
*2025 CO₂ emissions: ▲ of 25% compared to 190,000 t/y(2018)

Development of environmentally friendly products★ New materials and technological improvementsthat take the environment and safety into account,
Multiple products by developing new visions◆Commercialization of WEBTi®
◆Consider commercialization of new materials other than WEBTi®

Utilizing Sustainable Resources★ For final disposal of waste in 2040
50% reduction compared to FY2020◆Reuse of waste throughout the supply chain◆Promoting the recycling of raw materials and the effective use of waste(C)2023 Toho Titanium Co., Ltd.

14Promotion of ESG Management (Vision for Social "S" and Key
Measures for the 23-25 Medium-Term Management Plan)
2

Contributing to Society and Realizing an
Attractive Workplace
VisionRespect for human rights in the supply chain★ Human rights of all people in the supply chain
Respect

Catch-up Strategy and Key Measures of the 23-25 Medium-TermManagement Plan
◆Surveys and audits of human rights initiatives at suppliers◆To raise awareness of human rights among all employees

Coexistence with the local community★ Social contribution and regional revitalization
support◆Support for social contributions and regional revitalization at each businesssite(Support for local sports and cultural activities, joint volunteer activities withneighboring schools, and Acceptance of plant tours, etc.)

Improvement of occupational health and safety
in the workplace★ In the elimination of serious occupational
accidents and in the health to create a workenvironment◆Maintenance of JISQ45100◆Development of various activities related to occupational safety and healthbased on JISQ45100

Diversity and inclusion★ To create a workplace that takes into accountdiversity and inclusion◆Ratio of female managers: 20% or more
◆Maintain female ratio of 20% or more among new graduates and mid-career
hires(C)2023 Toho Titanium Co., Ltd.

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Promotion of ESG Management (Vision for Social "S" and Key
Measures for the 23-25 Medium-Term Management Plan)
2

Contributing to Society and Realizing an
Attractive Workplace
VisionCatch-up Strategy and Key Measures of the 23-25 Medium-Term
Management Plan

Developing Positive Work Environment★ To create a vibrant work environment◆Establishment of a personnel system that can respond to work style reforms◆Improvement of treatment conditions◆Identify and implement areas for improvement by continuously conducting
employee satisfaction surveys

Human Resource Development★ Human resources for implementing the longterm vision and Organizational building◆Aggressive recruitment of highly specialized personnel◆Cultivate executives and core human resources through transfers based on
succession plans, etc.

Strategic DX★ For higher productivity by promoting
automation and mechanization
realized (30% increase in labor productivity)◆Formulation of company-wide DX promotion vision/establishment of promotionsystem◆Recruitment and development of human resources using data
◆To raise DX literacy companywide

Renovation of Chigasaki and investment inintrinsic safety★ Conversion to urban-type regional symbiotic
hubs, Zero accidents◆Improvement of office buildings and the vicinity of the main gates, renewal ofaging facilities, etc.
◆100% implementation of risk assessment for achieving zero accidents andinvestment in safety measures(C)2023 Toho Titanium Co., Ltd.

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Promotion of ESG Management (Vision for Governance “G “and Key
Measures in the 23-25 Medium-Term Management Plan)3Strengthening our management base
VisionCatch-up Strategy and Key Measures of the 23-25 Medium-Term
Management Plan

Enhancement of corporate governance★ Steady operation of the Corporate
Governance Code

◆Development and disclosure of transition plan for decarbonisation◆Appropriate response to disclosure requirements

Thorough Compliance★ Zero compliance violations◆Raising employee awareness of compliance issues◆Identify issues and raise awareness specific to the workplace

Promotion of risk management◆Firm implementation of company-wide risk management◆PDCA by the risk-management committee◆Optimization of asset efficiency(C)2023 Toho Titanium Co., Ltd.

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Results of the 23-25 Medium-Term Management Plan
(1)Net Sales, Operating Income, etc.

(Billions of yen)

FY2023

FY2024FY2025Net sales

83

107

120

Titanium Metal

596772

Catalyst

101315Chemicals

142630

New businesses

113

Operating income

51013

Titanium Metal

256

Catalyst

334

Chemicals

134

New businesses▲001Common etc.

▲2▲1▲2ROS

5%

9%

11%

ROE

Medium-Term
5%Management Plan

11%

13%

ROIC (nonconsolidated)

3%

6%

7%

D/E ratio

1.00.90.8(C)2023 Toho Titanium Co., Ltd.

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Results of the 23-25 Medium-Term Management Plan
(2)Financial Indicators and Shareholder Returns

Sustainable enhancement of enterprise value
3-year average
Sales growth rate

13.9%

3-year average
Operating income
compound growth
Rate

4.6%

3-year cumulative
total
Capitalexpenditures

40 billion yen

3-year cumulative
total
Operating cashflow

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 Below

25～30%

Strong Financial Base and Enhancement of Shareholder Returns
Medium-Term
Management Plan(C)2023 Toho Titanium Co., Ltd.

19Management Philosophy
Management Philosophy
The Toho Titanium Group pursues the infinite possibility of titanium and the related
technologies, and contributes to building a sustainable society by continuously supplying
excellent products and services.

Fundamental Policies
To put our Management Philosophy into practice, we adhere to the following three
Fundamental Policies:
1. We give the highest priority to safety and compliance and operate a healthy and fairbusiness.
2. We practice innovation and creativity to achieve continuous growth for our employees
and organization.
3. We enhance communication with all stakeholders including customers, local
communities, and shareholders, to develop relationships of mutual trust andsymbiosis.

20(C)2022 Toho Titanium Co., Ltd.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This material contains "forward-looking statements" related to future events, such as our expectations on future businessand financial performance and financial conditions, which reflect the management's views and assumptions derived frominformation that is currently available, and are subject to risk and uncertainties. All statements other than statements ofhistorical facts are statements that could be considered forward-looking statements. When used in this material, words suchas "believe", "estimate", "expect", "intend", "may", "plan", "project", "target", "will" or "would" and similar expressions, as they
relate to Toho, are intended to identify forward-looking statements.
Many factors could cause the actual results, performance or achievements to be materially different from any future
performance or achievements that may be expressed or implied by such forward-looking statements, including, amongothers, changes in general economic and business conditions, changes in currency exchange rates and interest rates,
introduction of competing products by other companies, lack of acceptance of new products by Toho's targeted customers,
inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, bothreferenced and not referenced in this material.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described herein. Toho does not intend or assume any obligation to update theseforward-looking statements.

21(C)2022 Toho Titanium Co., Ltd.