TODA KOGYO Group Materiality (Date of enactment: November 30, 2023)
PurposeManagementPrinciple

We transform the potential of fine particles into new possibilities for our world.
Our Group will further improve the fine particle synthesis technology we have developed with iron oxides and will always continue lively growth and development.
We will work on a foundation built on sincerity and trust and we will bring together our creativity and manufacturing strength to make a contribution to society in general with attractive new materials andsolutions that are full of originality.

Management Policy(Our Vision)Material Issues

Value We Bring
to Society

Product Innovation

We will refine ouronly-onetechnologies andcontinue to offer
products andsolutions that havehigh added value.

Process Innovation

Contributing tofuture society
through innovative
fine particle
synthesis
technologies

We will establish amanagementfoundation as a
"Manufacturing
Company" that cancontributeto society and willcontinue to grow anddevelop even 100years after its
establishment.

At least 50
per year2030―

3 or more

2030

0.4 billion yen

4.5 billion yen

2026

Circular economy

Commercialization of battery material recycling
Number of press releases (cumulative)
Marginal profit rate (consolidated)
Percentage of overseas sales (consolidated)

―
3.0%
37.8%
59.7%

Commercialization
16 or more
50% or higher
70% or higher

2030
2030
―
2030

―

―

―

Swift coordination between
manufacturing, development and sales―

Pursuit of zero qualify defects

Number of defects occurring

29 per year

10 per year orfewer

2030

Pursuit of zero serious accidents
Stable procurement

Occupational accident rate
Excellent supplier ratio

1.39
74%

1.20% or less
85% or higher

2030
2030

41,100 t
per year22,000 t
per year or lower

2030

Specific energy consumption reduction rate
(in Japan, vs. 2013 base year)

18%

At least 17%

2030

Renewable energy usage rate (Japan)0%

At least 17%

2030

Industrial waste reduction rate
(in Japan, vs. 2013 base year)

19%

25% or higher

2030

0

3 or more

2030

Stabilization of ROE (consolidated)
Operating profit ratio (consolidated)
Equity ratio (consolidated)
Ratio of female employees
Ratio of female managers

20.6%
3.9%
30.5%
17.1%
2.8%

10% or higher
8% or higher
40% or higher
25% or higher
10% or higher

―
2030
2030
2030
2030

Rate of childcare leave and leave for childcare
purposes taken by eligible male employees

91.7%

95% or higher

2030

―

Start ofmeasurements
in 2023―

19,800 yen
per person

30,000 yen
per person

2030

Number of participants selected for next-generation
management candidate training―

6 or more
per year―

Improved analysis and functioning through ongoingevaluations of effectiveness

―

―

―

Development of a workplaceenvironment enabling employees todisplay creativity

Information Management

20 per year

Amount invested in toughening infrastructureand facilities

DE＆I

Governance2030

Toughening of infrastructureand facilities

Workplace development that unlocks
people's potential

Personnel Development

70% or higher

Number of projects commercialized

Improved cashflow

Being a better
corporate citizen
and a better social
institution

38%

Switching to new manufacturingmethods

Optimization of the business portfolio

We will seek thehappinessof our employees
and their families
and will be acompany that isconstantly trusted
by our stakeholders.

2025

Number of applications

Repurposing and effective utilization ofresources

Keyword
Imagine andcreate the future

At least 50
per yearStrengthening of intellectual property
strategy

Building asustainable supply
chain

Financial Base

45 per year

Ratio of developed products that areenvironmentally friendly/harmonious

Encourage carbon neutrality
Climate ChangeYear ofAchievement

Creation of new products andtechnologies that contribute to theenvironment

GHG emissions (Japan, Scope 1 and 2)
We will become acompany that isessential on a global
level and increase
the corporate valueof the Group.

TargetNumber of collaborative themes pursued withcompanies and universities

Cultivate global market

Stable Supply

Current
StatusAccelerate open innovation

Branding that utilizes our strengths
Value-centric Marketing

Indicators

Initiatives Aimed at Achievement

Human resource development
supporting a company built upon
technology
Improved transparency andeffectiveness of Board of Directors

Conversion of crude raw materials and by-products
into raw materials

Improvement of employee engagement
Cost of education per person(consolidated, base year: 2022)

Strengthening compliance

Number of serious legal or regulatory violations

0Zero violations―

Strengthening information security ofthe Group

Incident identification within 24 hours andexpanded scope of response

Japan

Consolidated
subsidiaries

2030

Improved information literacy
Groupwide

Number of digitalization projects led by user
departments (cumulative)

17250

2030