2023 marks the 200th anniversary of our founding
and the 90th anniversary of our incorporation

CSR
Report2022

CSR Policy
The TODA KOGYO Group will continue to operate its business in accordance with the Management Principle and the Management Policy, aiming at continuous sound development towards the future. Aware that fulﬁlling our social responsibility is a signiﬁcant role that we have to play as better citizens and as a better corporate citizen, we will comply with relevant laws and ordinances, internal regulations and rules on the basisof the spirit of compliance. Leaders will take the initiative in setting examples regarding compliance and will
ensure that they are followed within the Company and known to companies in the Group and to business
partners. In addition, we will maintain sound and normal relationships with politics and government. We will
reject any anti-social force or organization that threatens the order and safety in the civic society.

For investors
We will accumulate and provide highquality achievements backed by creating technologies. We will build andimplement a sound and transparent
corporate governance structure andeﬀective internal control in an eﬀort
to conduct activities that will earn theunderstanding and empathy of investors.

For society
In line with our spirit of compliance,
we will not enter into relationships
with anti-social forces, will give thehighest priority to considerations ofsafety and the global environment,
and will seek harmony with the international community in collaboration
with regional society to create a great
living culture at a global level on thebasis of the cultural assets we possess.

Four CSR
Guidelines

We will share values based on thecustomers' standpoint. Utilizing thetechnological capabilities that wehave independently developed, we
will form good partnerships with business partners who share our ambition.
In addition, we will sincerely makereciprocal eﬀorts to attain our goals.

For employees
The originality of every single employee and their diversity are ourassets. We will help them display
their capacity to the fullest degreeand support their activities. We will
also evaluate them impartially. We
will strive to increase their peace ofmind and richness and aim to live
together.

Editorial Policy

About the cover

The TODA KOGYO Group has been conducting CSR
activities and sound business management with a viewto the sustainable development of business and society. Published since 2015, this report covers policies,
goals, achievements and other aspects concerning theGroup's speciﬁc activities for the environment, safety
and health, labor and human rights, quality assurance,
ethics, social contribution and dialogues with local
communities.
We hope that this report will make the Group's CSR
activities understood by stakeholders and help build
better relationships of trust through dialogues withthem.

The TODA KOGYO Group sponsors Paralym
Art, a project for participation of artists with disabilities in society and for their economic independence. As an oﬃcial partner, the Group supports Paralym artists.

Scope of report: TODA KOGYO CORP. and some of its group companies
Period covered: April 1, 2021 to March 31, 2022

(Eﬀorts in ﬁscal 2020 and earlier and activities in and after April 2022 are partly included.)Referenced guidelines: Global Reporting Initiative (GRI)
Environmental Reporting Guidelines 2018 by the Ministry of the Environment
Published in January 2023 (English Version)2

For customers andbusiness partners

TODA KOGYO CSR Report 2022

Artwork entitled: Hanasaku Egao (A Blooming Smile)
Created by sora

In hopes for a peaceful world where all thepeople smile like ﬂowers

Management Principle,
Management Policy and
Code of Conduct
The TODA KOGYO Group revised its management principle, management policy andcode of conduct in ﬁscal 2014. All its oﬃcers
and employees review them as they go about
their respective duties each day.

Management Principle
Our group will further improve the ﬁne particle synthesis technology we have developedwith 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 withattractive new materials and solutions thatare full of originality.

Management Policy
・We will establish a management foundation
as a "Manufacturing Company" that can contribute to society and will continue to growand develop even 100 years after its establishment.
・We will reﬁne our only-one technologies
and continue to oﬀer products and solutions
that have high added value.
・We will become a company that is essential
on a global level and increase the corporate
value of the group.
・We will seek the happiness of our employees and their families and will be a company
that is constantly trusted by our stakeholders.

Code of Conduct
・We will act quickly to oﬀer products andsolutions that respond to the requirements ofthe customers.
・The whole company will come together as
one, with manufacturing, engineering, sales
and management working enthusiastically
together.
・We will be corporate citizens who are faithful and fair and will act with a strong sense of
ethics.
・We will improve our dignity as individuals
and will continue to have pride, hope anddreams for the future.
・We will work for harmony and symbiosis
with the local community and with the global
environment.

Contents
2

CSR Policy and Editorial Policy

3Management Principle, Management
Policy and Code of Conduct

4

Top Message

6

TODA KOGYO Group's History andBusiness

8

The Familiar Products of the
TODA KOGYO Group's

10

Business Overview and Medium-TermBusiness Plan

12

Special Feature I
Value-Inspired Innovation
Marketing

14

Special Feature II
Value-Inspired Innovation
Research and Development

16

Special Feature III
Value-Inspired Innovation
Intellectual Property

18

Corporate Governance

20

Safety and Health Activities

22

Quality24

Environmental Vision

26

Environmental Activities

28

Sustainable Procurement

30

Exchange with Local Communities

32

Compliance

33

Respect for Human Rights

34

Personnel Development

36

Diversity and Inclusion

38

Company Data and Business Locations

TODA KOGYO CSR Report 2022

3

Top Message

Top Message
The TODA KOGYO Group celebrates its 200th anniversary in 2023. In preparation for thiscommemorative year, we will operate our business with an eye to accomplishing the medium-term business plan, Vision 2023 that was adopted in the previous ﬁscal year. As a company
listed on the Prime Market of the Tokyo Stock Exchange, we are working hard to enhance corporate governance and implement ESG management.

−Medium-Term Business Plan Vision 2023 and Go Beyond 200−

Fiscal 2021 was the ﬁrst year of Vision 2023. For that period, both net sales and operating
income surpassed the targets set in Vision 2023, thanks to brisk sales mainly of magnet materials
and dielectric materials. For ﬁscal 2022, which is the second year, we are working to increase
sales and reduce costs with a view to meeting the targets amid rises in raw material prices andenergy prices. The entire Group will make concerted eﬀorts to achieve the three-year targets in
Vision 2023, which are cumulative total net sales of 102.0 billion yen and a cumulative total
operating income of 5.9 billion yen.
For ﬁscal 2024 and beyond, we are planning to commercialize soft magnetic materials that
support the electriﬁcation of automobiles and environment-related materials that help reduce theimpact on the environment. We will carry out development activities according to the roadmap,
aiming to grow them into businesses comparable with those of pigments, magnet materials,
dielectric materials and other products.

4

TODA KOGYO CSR Report 2022

−Enhancing Corporate Governance−

Major changes in ﬁscal 2022 include our transformation into a company with an audit and supervisory committee. The details are mentioned on page 18 of this publication. With this change,
we achieved a clearer separation of management and business execution. Now, the Management
Conference, which consists chieﬂy of executive oﬃcers, is responsible for monitoring the state ofoperating divisions and for making resolutions on business execution. In the past, we were notable to implement risk management systematically. Today, the management team holds discussions with separate divisions dealing with risks at the Management Conference, or at the Risk
Management Committee, in order to run a PDCA cycle. We will aim to build a strong structure inwhich management, the managers of related departments and personnel involved understandworking-level risks and discuss control measures to take swift actions in response to changes inexternal environments.

−Carbon Neutrality−

With respect to carbon neutrality, we have been pursuing a number of initiatives to cut energy
consumption per unit of sales. They include recovering waste heat in the production process, improving operation eﬃciency, introducing equipment with higher energy eﬃciency and revising
the manufacturing process. From ﬁscal 2022, we will consider introducing an analysis using thelife cycle assessment (LCA) as well as internal carbon pricing.
We realize the impacts of global warming more strongly than ever due to climate change inrecent years. As a responsible business entity, we will endeavor to meet a net zero global CO2
emission target by 2050.

−Respect for Human Rights−

Another point that I would like to stress is to respect human rights from a broad perspective. Of
course, we are striving to eliminate discrimination and harassment and to create programs that
open the way for various workstyles. They are mentioned in this report. In addition, we are providing support to help the Group's staﬀ work in lively and more productive ways.
Around 30% of our staﬀ engage in research and development. They always exert their creativity in carrying out their duties. Creative improvements and proposals are also needed in manufacturing, sales and marketing activities. The administrative team supporting these activities is constantly striving to enhance work eﬃciency. Recently, we changed the layout of the Creative R&D
Center to stimulate discussions beyond organizational boundaries. Freewheeling ideas and active
communication are increasing.
As a business leader, I myself am trying to listen directly to staﬀ members, to build productive
workplaces ﬁlled with creativity. I will listen to them to understand both the current state and thestate that we seek. I will introduce their voices to workplace improvements to foster communication in the company.
We will work towards development through constant activities together with stakeholders.
Thank you for your understanding and support.
President and CEO

Shigeru Takaragi
TODA KOGYO CSR Report 2022

5

TODA KOGYO Group's History and BusinessHistory

TODA KOGYO's history began with Bengala. Technologies cultivatedover the 200 years since its founding are still in use today.

Coloring for building
materials and ceramics

1823
Founding
BengalaPigments
Maritime transport
becomes a mainstream
form of distribution

Our business is foundedin the city of Ibara,
Okayama Prefecture.

It begins as a family businessindustrially manufacturing
Bengala.

1933
Incorporation
Ship bottom coatings

Pigments

Hiroshima Plant(currently at Asa-Kita-ku in the city of Hiroshima)

TODA KOGYO Corporation is incorporated.
A company with a mission of
manufacturing and selling Bengala
is set up in the city of Hiroshima.

1960s

TODA KOGYO's business dates back to 1823, when
we commenced the industrial manufacture of Bengala,the oldest pigment in human history. Bengala is indispensable for painting on porcelain and for the coloringof historical architecture. Nearly 200 years have passed
since then. Throughout our history, we have been able
to survive by successfully overcoming challenges at
diﬀerent times. We have consistently opened up new
frontiers for chemical materials and have continued to
produce products that meet the demands of the times.
When pollution was a social issue, we created anenvironmentally friendly manufacturing method. At atime when magnetic recording materials used for video
and audio cassette tapes were our mainstay products,
we were anticipating the advent of the digital age andworking to open up new ﬁelds.
The Group's products are used not only for pigments
as original applications but for automobiles, smartphones, household appliances and other state-of-the-art
domains. Our chemical materials are created from technologies that we have been developing for 200 years
since our founding, and reach markets around theworld.
Automatic ticket gates

Deﬂection yoke materials

Soft magnetic
materials

Monochrome TV sets are in widespread use.
First TV boom
(wedding of the Crown Prince)
Second TV boom
(1964 Olympics in Tokyo)

Motors are in growing
demand.

Audio and video cassettetapes are in widespread use.

1970s

Printers and photocopiers
are in widespread use.

Magnetic
tickets

1980s

Magnetic recording

Magnetic recording materials
Environmental
awareness increases.

Magnet materials for motors inhousehold appliances

Toners and carriers

Magnet materials
Lithium ion battery products
are in widespread use.

Electronic printing
materials
IT society advances.

2000s

Ferrite IC tags andNFC tags on metal

Cathode and anode materials

Lithium ion battery
materials

Flexible ferrite sheet

Iron oxide for combustion
catalyst: Activated ironoxide (TICⓇ)

1990s

Garbage bags for burnable waste

Hydrotalcite

Lead-free polyvinyl Heat retaining agent
chloride stabilizer for agricultural
polyoleﬁn ﬁlm

Environmental
materials

2010s to 2020s
Automobiles shift to electric vehicles and ICT advances.

Electromagnetic control components andmagnetic sheet

Soft magnetic
materials

Motor and sensor materials
for automobiles, household
appliances and others

Magnet materials
Noise control materials
Materials for contactlesscharging for electricvehicles (EVs)2023

Marking our 200th anniversary

6

TODA KOGYO CSR Report 2022

Barium titanate formultilayer ceramic
capacitors

Soft magnetic Dielectricmaterials
materials

CO2 solid capture sorbents

Environmental
materials

TODA KOGYO Group's Two Business Segments and Five Business Fields
The TODA KOGYO Group has two business segments: functional pigments and electronic materials.
The functional pigments business deals with iron oxide and other materials. Its growth has been driven by its applications as coatings and coloring materials for photocopiers and printers. These coloring materials have been a pillar of earnings since our founding. We are working to develop products tailored to the needs of the times.
The electronic materials business deals chieﬂy with materials for automobiles and ICT equipment. The markets forthese products are expected to grow further. It is anticipated that business will expand, especially the business formagnet materials used in motors and sensors and dielectric materials used in capacitors.
These materials are used in ﬁve markets, namely automobiles, household appliances and communication devices,
coatings, photocopiers and printers and the environment. The Group thus deﬁnes them as ﬁve business ﬁelds andendeavors to carry out business activities there.

Electronic materials business

Functional pigments business

Magnet materials

Pigments

・Motors and sensors for household
appliances, automobiles and others

・Automotive coating
・Road surfaces, building materials andcosmetics
・Photocopiers and printers

Dielectric materials

・Multilayer ceramic capacitors for electronic
components for smartphones, electricvehicles (EVs) and others

Soft magnetic materials

・Inductors and noise control materials forelectronic components

Environmental materials

・CO2-free hydrogen and carbon nanotube
production systems
・Water treatment systems

Lithium ion battery materials

・Lithium ion batteries for EVs and HEVs

Five business ﬁelds
Automobiles

Household appliances andcommunication devices

Coatings

Photocopiers andprinters

The
environment

Business Topics
TODA KOGYO has established an integrated production system covering all processes frommaterials to components by making Jiangmen and Partners' Magnetic Product Co., Ltd. a subsidiary.
TODA KOGYO acquired equity in Jiangmen and Partners' Magnetic Product Co., Ltd. (hereinafter "JP"), a molding
manufacturer of bonded magnets based in the Chinese province of Guangdong, to make it a subsidiary in August2021.
Supply chain in the bonded magnet market
The TODA KOGYO Group has recently deﬁned magnet materials as a
End
Resin
Raw
materials Powder mixing Forming Materials Components products
growth business. Our focus is on developing and manufacturing bonded
magnet compounds. They are a composite of magnetic powder andresins. They oﬀer such outstanding durability and rust prevention that
Iron oxide Magnetic
Compound Magnets
Rotor
Motor
Automobiles
powderthey can be used to produce magnets with complex forms as well as
Conventional business domains
JP's business domains
magnets that constitute magnetic poles. They are thus increasingly used
The Group's business domains
as materials for magnetics in motors and sensors for automobiles, household appliances and many other applications.
JP is a Japanese capital company that specializes in manufacturing
bonded magnetics and other precision molding materials. Since it was
founded in 2006, it has accumulated advanced technological capabilities
and production expertise in injection molding. With an independent
metal mold function for forming, JP develops and produces products toquickly meet customer needs for high quality. It thus earns high marks
from its principal clients in the automotive components manufacturing
Jiangmen and Partners' Magnetic Product Co., Ltd.
sector.
(Jiangmen, Guangdong Province)
JP is now part of the TODA KOGYO Group. This allows us to respondto a broad range of customer needs, ranging from the manufacturing and development of magnetic powder andbonded magnet compounds to the area of magnet molding. Through the integrated management of technologicalinformation on raw and other materials in the supply chain, we will strive to heighten the quality level at individual
stages and to increase the speed of development. We will also work to stabilize our integrated development and production system in an eﬀort to earn greater trust from customers.

TODA KOGYO CSR Report 2022

7

Familiar Products from the TODA KOGYO Group
Chemical products are used in many diﬀerent applications around you.
The TODA KOGYO Group's materials are used in automobiles, household appliances, information devices and others. They help reduce sizes and weights and enhance
performance of these items.
Under a motto of "Fine Materials for the Future," we will continue to create newvalue from cutting-edge materials.

I n duc
インダクターtors
Ferrite sheets
for contactless charging
非接触充電用フェライ
トシート

Ca paコンデンサー
citorsTouchscreen
タッチパネル用フィルム
panel ﬁlms

Magnetic
磁 toners
性トナー・磁性キャリア
and carriers

Motors for
エアコンのモーター
air conditioners

Combustion燃catalysts
焼触媒
Industrial工
catalysis
業用触 媒

Color paving
カラー舗 装Bengalaベンガラ格
lattice 子
Film forビニールハウス用フィルム
plastic greenhouses

Brakes
ブレーキ

Motors
モーター

Center道lines
路のセンターライン
on roads

8

TODA KOGYO CSR Report 2022

洗

冷 蔵庫のパッキン
Fridge door seals

洗 濯 機のモーター
Motors for washing machines

口紅Lipsticks
磁気Magnetic
切 符 tickets

ファンモーター
Fan motors

Rust preventive
鉄骨の錆
agents
止め for steel frames

車の塗料
Automotive coatings
リチウムイオン電
Lithium ion 池
batteries

電 子回路Electronic部品
circuit components

Ship bottom
船 底 塗coatings
料（ 錆 止め）(rust prevention)

TODA KOGYO CSR Report 2022

9

Business Overview and Medium-Term Business Plan
Business Policy
The TODA KOGYO Group has achieved its growth by fulﬁlling its mission of helping to ﬁnd solutions to social
issues through its business and by addressing social problems and the most advanced needs of the times. In
recent years, through materials, we have been supporting many diﬀerent areas of industry, including automobilesand electronics. Amid the rapid changes in circumstances that are taking place during the COVID-19 pandemic,
we will not only work to address the issues facing customers. We will also tackle our own problems, combining
our capabilities with those of materials and partners to overcome the challenges and to create new value.

Business Overview for Fiscal 2021 (from April 1, 2021 to March 31, 2022)

Against the backdrop of a global economic recovery, demand rallied in Japan and overseas and that led tostrong net sales. Proﬁts were aﬀected by raw material and energy prices and by soaring marine transport costs
due to a shortage of containers. However, marginal proﬁt increased with a rise in net sales and growth in salesof high-margin products. In addition, the pandemic
Operating income Ordinary income
Net sales
resulted in sluggish demand for our products in
Fiscal 2020
Fiscal 2021 Unit: billion yen
ﬁscal 2020. That prompted us to undertake a companywide production adjustment. For ﬁscal 2021,：Former accounting standard
106：New accounting standard
stable operation resulted in enhanced productivity.
86
86
For ﬁscal 2021, net sales stood at 35.3 billion yen and81
78
operating income at 2.5 billion yen. (Operating income
69
67
66
14
for ﬁscal 2020 was 0.01 billion yen.) Ordinary income
10888reached 4.1 billion yen (compared with an ordi663
3nary loss of 0.6 billion yen for ﬁscal 2020). That
1 1
Q1
Q2
Q4
reﬂected the depreciation of the yen and strong
Q1
Q2
Q3
Q4
Q3
-0.1-0.1 -0.2
-0.1
-0.3 ●●Demand rallies in●Climbing market
revenue at equity method aﬃliates, which led to
A gradual turnaround
Japan and overseas. prices of nickel
in net sales and proﬁts
the posting of 1.5 billion yen in the share of proﬁt
and cobalt increasecommences in Q3 in
net sales and proﬁtline with orders received.
of entities accounted for using the equity method.
in battery materials.
●Market slows under the COVID-19

pandemic.

Overview of Business Segments●

Net sales grow.
Sales of high proﬁtability products grow.
Stable operation results in enhanced productivity.

The Group reports two businesssegments: electronic materials andFiscal 2020 Fiscal 2021 Change
functional pigments. Segments are
Electronic Segment proﬁt 151
217＋66
Main applications
determined on the basis of the range ofppmaterials rate to sales
10％
15％
＋5
products and in consideration ofHousehold appliances, automotive andMagnet materials
62
98
＋36
manufacturing methods and processes asother motors and sensors
Dielectric materials
11
15＋4
well as the similarity of their markets. The
ICT equipment and MLCCs for
55
83
＋28
Lithium ion battery materials
electronic components for EVs
electronic materials segment covers
Other materials
23
21△2
Lithium ion batteries for EVs and HEVs
businesses of magnet materials, dielectricmaterials, lithium ion battery materials andFunctional Segment proﬁt 111
135＋25
Main applications
other materials. The functional pigments
pigments rate to sales
11％
16％
＋5 pp
segment deals with pigments.
Pigments
Coloring of road surfaces and building materials, photocopiers and printers
111
135
＋25
In the electronic materials segment, net
sales rose 6.6 billion yen, from 15.1 billion yen for ﬁscal 2020 to 21.7 billion yen. The segment proﬁt rate surged
5 percentage points year on year, to 15%
Magnet materials sales increased 3.6 billion yen, from 6.2 billion yen for ﬁscal 2020 to 9.8 billion yen. The large
increase in sales is attributable to rising demand and the reorganization of a molded magnet manufacturer into a
subsidiary in the previous year. Magnet materials are used chieﬂy for motors in automobiles and household
appliances, and the increase in demand was due mainly to the automotive shift to electric vehicles. Dielectricmaterials sales increased 0.4 billion yen, from 1.1 billion yen for ﬁscal 2020 to 1.5 billion yen. They continued toenjoy brisk demand for applications of multilayer ceramic capacitors (MLCCs), which are often used in ICT
equipment and electric vehicles. Lithium ion battery materials sales grew 2.8 billion yen, from 5.5 billion yen forﬁscal 2020 to 8.3 billion yen. These materials serve automotive applications. The sales growth for ﬁscal 2021 is
explained by soaring market prices of nickel and other materials in addition to a turnaround in performance.
Other materials sales declined 0.2 billion yen, from 2.3 billion yen for ﬁscal 2020 to 2.1 billion yen.
In the functional pigments segment, net sales were up 2.5 billion yen, from 11.1 billion yen for ﬁscal 2020 to13.5 billion yen. Segment proﬁt rate rose 5 percentage points year on year, to 16%. Demand for diﬀerent
coloring materials and materials for photocopiers and printers rallied from the plunge under the pandemic. Net
sales and proﬁt both surged.
(* Note: The ﬁgures for ﬁscal 2020 comply with the new accounting standard.) Unit: billion yen

10 TODA KOGYO CSR Report 2022

Progress of Medium-Term Business Plan Vision 2023

Unit: billion yen(The bar chart portrays single-year ﬁgures whereNet sales(Above: cumulative total, below: single year)
Operating income(Above: cumulative total, below: single year)
as the line chart cumulative total ﬁgures.)
Target (cumulative total)
Target (cumulative total)
70
Result or forecast (cumulative total)
Result or forecast (cumulative total)
Fiscal 2021 was the initial year of the plan. For 1,200
60
59that year, net sales ended at 35.3 billion yen, 1,000
1,020（Forecast）（Forecast）
50
41
753
against the target of 31.0 billion yen. For ﬁscal
800
40（Result）
36
2022, business is expected to remain buoyant. Net
25
30（Result）
600
655
353
20
sales are forecast at 40.0 billion yen, surpassing the
450
400
17
30
10
310 400（Forecast）
target of 34.5 billion yen set in the plan.
200
40025（Result）
25
365
23
353（Result）345
Operating income ended at 2.5 billion yen for ﬁscal
350
19 16
20
310
17
（Forecast）
2021, against the target of 1.7 billion yen. For ﬁscal
300
152022, it is forecast to reach 1.6 billion yen, while the250
10
Fiscal 2021 Fiscal 2022 Fiscal 2023
Fiscal 2021 Fiscal 2022 Fiscal 2023
target is set at 1.9 billion yen. The forecast takes into
Target (single year)
Result or forecast (single year)
Target (single year)
Result or forecast (single year)
account the impacts of continuous rises in raw material and energy prices. During the period of the medium-term business plan, various factors will impact our results. We will work towards meeting the targets of 102.0
billion yen in three-year total net sales and 5.9 billion yen in three-year total operating income.

Eﬀorts for Business Growth

Next-generation businesses

The TODA KOGYO Group has adopted the medium-term business plan Vision 2023. In addition, we are in
the process of preparing Go Beyond 200 as a vision for ﬁscal 2024 and beyond after the period of themedium-term business plan. It will include what is currently under development.
Vision 2023 covers the period from ﬁscal 2021 toCO2 separation and captureﬁscal 2023. It deﬁnes pigments as a stable revenue
Environmental materials
base and magnet materials, dielectric materials andCO2-free high concentration hydrogen and carbon nanotubes
lithium ion battery materials as growth sectors.
Contactless power supply for EVs
Designed for ﬁscal 2024 and subsequent years, GoSoft magnetic materials
Noise control
Beyond 200 foresees the full-scale operation ofbusinesses for soft magnetic materials andMagnet materials
Automotive motors and sensors
environmental materials. As for soft magnetic
Dielectric materials
Capacitors for automotive and ICT equipment
Lithium ion battery materials
materials, we are mainly running two development
projects in response to a market change, speciﬁcallythe shift to electric vehicles. We expect toIncrease market share
Pigments
commercialize them both in ﬁscal 2024 or later. One is
Fiscal 2021 Fiscal 2023
to develop noise control materials. Here, noise refers
Vision2023
Go Beyond 200
to radio waves that cause electronic components tomalfunction. Electric vehicles have a large number of electronic components. This means that noise suppression is
now of growing importance. We are working hard to invent noise control materials. The other is to develop ﬂexible
ferrite plates. They help increase the eﬃciency of contactless power supply. It is anticipated that systems forcontactless power supply to electric vehicles will increase. We are striving to develop materials for EVs on thebasis of technologies that we have cultivated with contactless power supply materials for smartphones.
In environmental materials, we are working to develop a direct methane reforming (DMR) process for producing
CO2-free high-purity hydrogen and carbon nanotubes at the same time, with a view towards achieving carbon
neutrality. In addition, we embarked on a development project for the industrial production of sodium ferrite and its
application in society as a CO2 solid capture sorbent with the use of our original iron oxide synthesis technology. The
sodium ferrite is studied by Dr. Ikuo Yanase, an associate professor at Saitama University, for realizing carbon recycling.
Medium-term growth businesses

ESG Actions
Environment

SocialGovernancePast
actions・Development of environmentally friendly products
・Development of environment for teleworking ・Establishment of the Nomination and Compensation Advisory Committee
・Complete combustion catalysts
・Support for childcare and nursing care ・Increase in independence of the Quality Assurance Department
・Fixation and capture of CO2 from manufacturing processes
・Support for the active participation of people with disabilities ・Introduction of electronic exercise of voting rights
・Use of clean electric power

Futureactions・Development of CO2 sorbents
・Acceleration of next-generation personnel development activities
・CO2-free hydrogen production technology ・Advancement of the active participation of women ・Improvement in transparency and independence of the Board of Directors
・Water puriﬁcation sorbents
・Actions for the active participation of seniors ・Toughening of quality control
・Endeavors for carbon neutrality ・Development of workers with digital skills ・Strengthening of group governance

TODA KOGYO CSR Report 2022 11

Special Feature I Value-Inspired Innovation Marketing
Mission of Marketing Department
In April 2019, the TODA KOGYO Group separated the marketing function formerly played by the sales team and established the Marketing Department so that
it would specialize in this function. On that occasion, its mission was deﬁned as
creating a mechanism for selling. The term of marketing is generally said to derivefrom the word "market." However, our Marketing Department prefers interpreting it
as suggesting an eﬀort to hit a mark. We believe that the interpretation of "mark"as a point where the value or competence that the Group oﬀers meets customers'
needs will be easier to understand. The Marketing Department aspires not only toidentify the mark we aim to reach but also to create a mechanism for meeting themark without fail.
We groped our way to create the Marketing Department. Now it has more memYuji Omote, Leader,
Marketing Department
bers than it had at the beginning. We take advantage of members' diverse backgrounds and specialty areas to expand the range of activities. Inside the company,
we are working to build closer ties with other teams for research and development, sales, patents and manufacturing and to conduct activities of encouraging trials and errors that will lead to future success. Outside the company, we are increasing contacts not only with customers but with competitors and suppliers in a bid to pushahead with open innovation.
At the Marketing Department, we are conducting two measures with a view to conducting these internal andexternal activities in a broader area.

Wait-and-catch Marketing (Operation Spider)
The Marketing Department associated its wait-and-catch marketing approach with cobwebs and dubbed it as
Spider. We are working to continuously enlarge our cobwebs.
In 2015, eﬀorts to formulate standards for the contactless charging of laptops kicked oﬀ
at the initiative of large semiconductor manufacturers. In response, the TODA KOGYO
Group created and uploaded on its website a catalog of its ﬂexible ferrite sheets for contactless power supply*1. As early as the next morning, we received inquiries from two
sections of large manufacturers. That demonstrates that every corner of the world is connected via the Internet and that leading companies around the world are always searching for solutions to their problems. That was a moment when we realized that the online
distribution of information on the Group's products and technologies would help resolve
customers' issues.
Based on this experience, the Marketing Department began preparing catalogs and publishing them online. At
the beginning of this project, some in the Group said that online publication of catalogs would help make ourinformation open to competitors. However, we give higher priority to opportunities to have our products evaluated by customers than to the risk of oﬀering information to competitors. To date, 58 diﬀerent catalogs are available online. We also created application guides, which
explains not only products themselves but also the manner of （number）
25
using them. Oﬀering information about the use will propose a
Up around ﬁve times
wide variety of options to address customers' problems. The20
as a result of measures
Group has shifted from the conventional stance of selling15
goods to a value-based approach with a focus on selling
applications. Today, eight diﬀerent application guides are
10
available.
5
These activities increased the number of inquiries to the0Group around ﬁve times and helped it win some new promisTill May 2020
2021
2022
ing projects. The wait-and-catch "spider" marketing has
2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
achieved signiﬁcant positive results under the pandemic,
Trend in monthly average number ofunder which sales activities based on visits are diﬃcult.
inquiries by e-mail12 TODA KOGYO CSR Report 2022

Brand Familiarization Marketing (Operation Spreader)
The Marketing Department dubs this brand familiarization marketing "Spreader." Itis aimed at diﬀusing the Group's products across the market like spreading butter
across a slice of bread with a butter knife.
In the past, a customer said, "Why have I been unaware of TODA KOGYO until
today?" Another said, "Our approach was wasteful until we come to know TODA
KOGYO's products."
That inspired us to start displaying our products at exhibitions in 2020. In 2022, weparticipated as an exhibitor in four automotive trade shows.

After this action, some customers visiting an exhibition say to us that we propose distinctive products. The
Group still has limited name recognition. However, it now has such a presence in the market that we are recognized as a brand with unique products.

Future of the Marketing Department
The Marketing Department will tackle its mission of creating a mechanism for selling and will implement both
wait-and-catch Spider marketing activities and Spreader operations for brand familiarization.
Peter Drucker said, "The best way to predict the future is to create it." The Marketing Department will endeavor
to create a better future by searching for marks, which bring us business opportunities. And we will strive tocreate products beloved by customers around the world.

*1: Comprehensive Catalog of Flexible Ferrite Sheets published on TODA KOGYO's website

I joined the company in 2019 and I was assigned to the Marketing Department, which had
just been established in the same year. My duties include forming new partnerships withcustomers, business partners and suppliers. In a bid to build new relationships with companies that used to have transactions with our Group, we are attempting to create new value
with companies with which we have built connections through exhibitions and technology
exchange meetings. Many of our actions are unprecedented. I sometimes worry, as I feel as
if I am fumbling for how to advance projects in the dark. Meanwhile, I feel proud that ourGroup's technological strengths serve society when collaboration with a partner develops
into a project. I will continue this approach of trial and error in an eﬀort to serve as abridge between the Group and partners.

Chiaki Yokoyama,Marketing Department

TODA KOGYO CSR Report 2022 13

Special Feature II Value-Inspired Innovation Research and Development
Development of Revolutionary CO2 Separation and Recovery
Technology Using Na-Fe Oxides(Actions in NEDO Green Innovation Fund Project)
TODA KOGYO embarked on development of sodium-iron (Na-Fe) oxides that may be used as CO 2 solid capture sorbent.
Today, eﬀorts towards building a carbon-neutral society require not only large-sized CO 2 recovery systems
installed at large-scale power plants but also separation and recovery technologies applicable to many diﬀerent
sources of CO2 emissions. This project is intended to meet needs for recovering combustion exhaust gasses fromgeneral factories and other low-purity concentration CO2 at concentrations of 10% and less. These needs are
growing with each year.

Characteristics of Na-Fe oxides and their manner of CO2 absorption
Na-Fe oxides are substances fundamentally composed of sodium ferrite. Discovered at Saitama University,
sodium ferrite is an iron oxide-based material with the ability to absorb and desorb CO2. Sodium ferrite is alayered compound in which iron, oxygen and sodium are arranged in a layered form. It selectively chemiC,cally absorbs the CO2 in combustion exhaust gasses and in the atmosphere. When heated to around 120°it desorbs the CO2 so that it can be recovered. Without the deterioration of its characteristics after repeated absorption, separation and recovery, it can be used as a CO2 solid capture sorbent that may be continuously used for a long period of time. These Na-Fe oxides will exhibit greater CO2 absorption performanceand consume lower energy for the recovery of CO2 than conventional amine solutions and other CO2-capturing materials.

In May 2022, Saitama University, Air Water Inc. and TODA KOGYO submitted a joint proposal on the development of a revolutionary CO2 separation and recovery technology using Na-Fe oxides in response to an open invitation by the New Energy and Industrial Technology Development Organization (NEDO) under the Green Innovation Fund Program for commissioning and subsidizing projects for CO2 separation, recovery and other technology development (development and veriﬁcation of technologies for reducing costs of low-pressure low concentration CO 2 separation and recovery and medium- and small-sized CO2 separation and recovery from factoryexhaust gasses). It has been adopted by NEDO as a commissioned project from ﬁscal 2022 to ﬁscal 2024 and a
subsidized project from ﬁscal 2025 to ﬁscal 2026. Of its total project scale of 1.7 billion yen, 1.45 billion yen will
be covered by the Fund. This project aims to develop a technology of separating and recovering CO2 fromlow-pressure exhaust gas with CO2 concentrations of 10 wt% and less contained in factory exhaust gasses fromboiler and other small- and medium-sized facilities at a cost within a range from 2,000 yen to less than 3,000 yen
per ton of CO2 by means of a CO 2 separation and recovery process with the use of safe and low-cost Na-Fe
oxides and waste heat.

Improvement of CO2 recovery performance of Na-Fe oxides andestablishment of production methods
Establishment of a technology for the production of ceramic compacts to reduce CO2 recovery energy<Targets>◆Production cost: 5,000 yen or less per kilogram

H2O◆CO2 recovery volume: 10 wt% or more(against the weight of the solid absorber)◆CO2 recovery energy: 1 GJ or less

CO2
Na-Fe oxides(per ton of CO2)NaFeO2 + ｘCO2 + xH2O ↔ Na1-xHxFeO2・(NaHCO3)x

14 TODA KOGYO CSR Report 2022

Development of a CO2 separation and recovery processusing waste heat and Na-Fe oxides
Process without
dehumidiﬁcation using
waste heat

Na-Fe oxides

Approx.
100°
C
Exhaust gas
CO2 emission sources(e.g. boilers)<Targets>◆CO2 recovery cost:
In the range from
2,000 yen to less than
3,000 yen per ton of CO2

High-temperature f luid

Heat
recoverysystemAmbient
temperature

Absorption

Desorption

Exhaust gas

Recovered CO2 Users

To the atmosphere
TODA KOGYO will create Na-Fe oxides as new CO2 solid capture sorbents with a CO2 recovery volume of 10
wt% or more and a CO2 recovery energy of 1.0 GJ per ton of CO2 as well as superior durability on the basis of
sodium ferrite (NaFeO2) chemical sorbent and its original iron oxide synthesis technology. Na-Fe oxides must becompacts that will be set in a CO2 absorption tower to eﬃciently circulate CO2 gas. A technology for producing
compacts is a key point in development. Air Water Inc. will create a process and system for eﬃciently separating
and recovering high-temperature, low-pressure and low-concentration CO2 emitted from factory boilers and otherfacilities on the basis of its long-cultivated gas production and engineering technologies and with the use of the
new CO2 solid capture sorbents.
The main target in this project is exhaust gas from boilers, given that they are versatile and that a large numberof boilers are installed. Supplying the CO2 recovery system developed in this project to boiler manufacturers will
open the way for its use in general factories as an optional piece of equipment for boilers and will accelerate thewidespread use of CO2 recovery and utilization. Its social implementation is envisioned around 2027, when theﬁrst commercial model of the CO2 separation and recovery system with Na-Fe oxides for exhaust gas from boilers
will be released.
Diﬀerent projects under the Green Innovation Fund Program are studying the utilization of CO2 separated andrecovered. Applications considered include synthesis of basic substances of methanol and ethanol with the use ofH2 and CO2, synthesis of methane for use as a fuel, and synthesis of calcium carbonate for use as a concrete
preparation agent. Direct applications of CO 2 include the acceleration of plant growth, dry ice, welding andcarbonated beverages. They are expected to be implemented in diﬀerent businesses.

Basic substances

Synthesis of chemicals andmethanolOxygen-containing
compounds (e.g. urethane)
Biomass-derived chemicals
and others

Fuels

Methane synthesis(methanation)
Biofuel synthesis(microalgae) and others

Minerals

Concrete (mixed withcalcium carbonate)
Carbonate hydroxides

Direct applications

Acceleration of plant
growthDry ice
Welding, carbonatedbeverages and others

TODA KOGYO CSR Report 2022 15

Special Feature Ⅲ Value-Inspired Innovation Intellectual Property
Basic Principles on Intellectual Property
The TODA KOGYO Group understands that intellectual property is a signiﬁcant asset for corporate activities. It
therefore encourages activities relevant to intellectual property and endeavors to ensure that it is protected and utilized properly. The Group advances initiatives involving intellectual property in a bid to maximize corporate value.

Basic Policy on Intellectual Property

We are carrying out the intellectual property activities described below as part of our business and R&D
activities under the medium-term business plan Vision 2023 (for ﬁscal 2021 to ﬁscal 2023) and the vision for ﬁscal
2024 and beyond, titled Go Beyond 200.
(1) Prevention of infringement of other companies' patents, patent clearances, patent applications, and treatment
as undisclosed know-how for strengthening business(2) Activities of transforming R&D ﬁndings into rights with the aim of monetizing them through the launches of
new businesses

Functional pigments (iron oxide) business domain

This domain is our core business. We will continue activities to turn the necessary intellectual property into
rights for the purpose of maintaining and expanding the marketing share that we have gained. We will also act
appropriately with regard to other companies' rights.

Electronic materials (magnet materials, dielectric materials and lithium ion battery
materials) business domain

We deﬁne this domain as a growth area. To maintain constant growth, we will acquire intellectual property
rights to ensure our competitive advantage. To oﬀer high value-added products, we will orient our development
eﬀorts with reference to market trends and intellectual property information and build barriers to entry basedon intellectual property in order to dominate the technical details of the products we commercialize. We will
constantly monitor patent and other applications from competitors and take the necessary action.

Next-generation (soft magnetic materials and environmental materials) domainWith an eye towards future markets, we will engage in R&D activities that capitalize on our technologicaladvantage and accelerate eﬀorts to acquire intellectual property rights to develop our ﬁndings. We will pay
attention to applications from other companies and step up monitoring activities to take the necessary action.

Intellectual Property Activities
The R&D team and the intellectual property team will form close ties with each other and will work as one tocarry out intellectual property activities. We appoint intellectual property personnel for individual developmentareas. They have overall responsibility for their respective development subjects, ranging from investigation, application, rights acquisition and responses to other companies.
We strive to raise awareness of intellectual property. They include providing opportunities for regular informationexchange between the R&D team and the intellectual property team, the sharing of directions in R&D through progress meetings of the R&D team, and searching for new intellectual property items.
Prior to starting development in a new area, we will (1) understand trends in technologies, markets and other companies, (2) clarify the position of technologies and patents and (3) identify patents that will hamper R&D or business anddevelop steps to tackle them. In the process of conducting development activities, we focus on continuous patentmonitoring (selective dissemination of information (SDI)) on the development area. We construct a system that allows
the R&D team to constantly check other companies' applications in a bid to swiftly grasp the situation and respond
appropriately. Each time the development moves to a new stage, we check the circumstances surrounding intellectual
property and the situation regarding the acquisition of rights needed for commercialization, as well as the status ofother companies' rights, in order to take the necessary action. We develop an intellectual property database that storesthe information described above and use it for developing and executing intellectual property strategies.
We also engage in open innovation, or development in collaboration with other companies. As intellectual property activities that support this, we properly manage our own technologies by identifying them and classifying them as
either those for which applications should be ﬁled or as those to be kept undisclosed as our internal know-how.

16 TODA KOGYO CSR Report 2022

Structure for Conducting Activities
To facilitate intellectual property activities by R&D personnel, we always conduct consultations on patent
research methods, new application details, other companies' responses, patent clearance and other issues andhold consultation meetings with outside patent oﬃces and meetings to consider whether or not to ﬁle applications. To help drive these activities, we provide R&D personnel with intellectual property education geared totheir individual experience levels.
The Intellectual Property Management Committee studies the utilization of patents owned by the company andpatent negotiations with other companies and makes proposals to the Management Conference and other organizations.
Business Meetings in individual domains and the Management Conference share intellectual property information and review business strategies to ensure intellectual property activities helpful to business operation.

Statistical Information
Numbers of applications and registrations and distribution of patents owned bybusiness domainmaS
eti oftc
14 mat.4％ erialgn（number）

Number of publications

40

Number of registrations

Ot
h
28 er
.1％

s

Ot

he

30

r
480 in total

20

tal
men s
l
iron
Env ateria
m .5％
8

10

0
2016

2017

2018

2019

2020

2021

Numbers of applications(on an unexamined patent publication basis)and registrations in the past six years

ium
Lith
n
o
i
ic
y
tter s
ron s
t
a
c
b
l
Ele terial
eria
t
a
a
m
m
％
13.3
Ma
ma gnette
7.1 rials％

Functional
pigments

Iron oxide
25.8％

Dielectricmaterials
2.7％

Distribution of patents owned by businessdomain as of the end of ﬁscal 2021
(including patent applications under examination)

I joined TODA KOGYO in 2019 and was assigned to the Intellectual Property Group.
My main duties are to conduct patent surveys of applications and other activities, tocreate a patent analysis map, and to share information about other companies' applications with the R&D team by means of patent watching (SDI).
It is challenging to discover subjects with the potential for patent applications and tocommunicate with sales staﬀ and R&D personnel. However, I derive a sense of achievement from communicating with other teams to raise the level of understanding about our
technologies and to conduct surveys that lead to patent applications and activities
regarding other companies' patents to protect our own technologies. I still need to develop my skills, but I will work hard to contribute to the growth of the company's businessbased on intellectual property activities.

Choi Yuri, Intellectual Property GroupTODA KOGYO CSR Report 2022 17

Corporate Governance
Basic Stance on Corporate Governance
Aware that fulﬁlling its social responsibility as better citizens and as a better corporate citizen is a signiﬁcantrole, the TODA KOGYO Group will continue to base its business management on its Management Principle andits Management Policy, aspiring to achieve sound and continuous development towards the future. We willcomply with relevant laws and ordinances, internal regulations and rules on the basis of the spirit of compliance.
Our leaders will take the initiative to set examples and ensure that they are followed within the Company andknown to companies in the Group and to business partners. In addition, we will not enter into any relationships
with anti-social forces or groups.
We will enhance the Board of Directors' function of monitoring business execution to ensure transparency inmanagement. We will also seek to establish agile corporate governance that can swiftly respond to changes in circumstances. In addition, we will determine the principles set out below and endeavor to implement them for the
purpose of equally protecting the rights and interests of shareholders and other stakeholders through the proper
disclosure of information.
We will endeavor to protect shareholders' rights.
We will endeavor to ensure equality among shareholders.
We will endeavor to build smooth relationships with non-shareholding stakeholders.
We will endeavor to ensure information disclosure and transparency.
We will endeavor to enhance supervision of management in a bid to ensure accountability to shareholders.

Overview of Corporate Governance System and Reasons for This System
Overview of the corporate governance system

TODA KOGYO decided to transform from a company with a board of auditors to a company with an audit
and supervisory committee, aiming to further strengthen corporate governance. This change took eﬀect
following a resolution at the 89th Annual General Meeting of Shareholders on June 28, 2022.

Transition to a Company with an Audit and Supervisory Committee(Eﬀective since June 28, 2022)<Before transition>

Company with a board of auditors
General Meeting of Shareholders

Election

Dismissal

Board of Directors
Supervision

Election

Dismissal

Board of Corporate
Auditors
Auditing

Business executives (incl. President and Representative Director)

Reasoning for the Adoption of this System<After transition>

Company with an audit and supervisory committee
General Meeting of Shareholders
Election

Dismissal

Board ofDirectors
Supervision

Election Dismissal

Audit and Supervisory Committee
Auditing andsupervision

Auditing

Business executives (incl. President and CEO)We have adopted the structure of a company with an audit and supervisory committee as a form ofgovernance in our management. The Board of Directors, including Outside Directors, is a decision-making bodyfor important business execution. It also supervises business execution. The Board of Directors consists of
Directors who are familiar with the Group's businesses and who understand the importance of developing
fundamental technologies as the Group's strength. It is therefore prepared to make timely and appropriate
managerial decisions. In addition to its regular monthly meetings, it holds extraordinary meetings as needed tosupervise business execution and to discuss and make decisions on basic and important matters. After the shift
from a company with a board of auditors to a company with an audit and supervisory committee, we willfurther strengthen the Board of Directors' supervisory functions and monitoring system. We will thus continue
to enhance our corporate governance. We elected three people from outside the Company who possess a highlevel of independence as members of the Audit and Supervisory Committee to furnish its audit structure with
monitoring functions featuring high levels of objectivity and impartiality.

18 TODA KOGYO CSR Report 2022

Schematic of the corporate governance system
Election and dismissal

Nomination andCompensation
Advisory Committee

Decision-making
supervisionfunction

ReportConsultation

General Meeting of Shareholders
Election and dismissal

Board of Directors
Directors

ReportReportManagement Conference
Executive Oﬃcers
Internal operating organizations
Group companies

Auditing

Collaboration
Accounting audits

Collaboration

Accounting Auditors

ReportAuditing

Internal Audit Department

Compliance Committee
Risk Management Committee

Business executionfunction

President and CEO

Directors (Audit and Supervisory
Committee members)
ReportSupervision Report

Audit and Supervisory Committee

Collaboration

Selection, dismissaland supervision

Auditing andsupervision

Election and dismissal

Business Execution

The Board of Directors is an approval body for the decision of important business execution. The Board of
Directors is chaired by Shigeru Takaragi as Representative Director. Apart from the chair, it has four Directors
who do not serve as Audit and Supervisory Committee members, including three Outside Directors, and four
Directors who are also members of the Audit and Supervisory Committee, including three Outside Directors. As
such, it has a total of nine members. The four independent Outside Directors make up at least one third of thetotal members of the Board. That strengthens the independence of the Board of Directors and managementtransparency. The Board of Directors meets regularly at least once a month to discuss important matters and to
make quick and appropriate decisions.
TODA KOGYO has an executive oﬃcers system. This system is intended to separate decision-making on
management policies and on important business execution from day-to-day business operations. That in turnhelps to strengthen the supervisory function and the business execution function. The Management Conference
holds monthly meetings for understanding the status of business execution at individual operating divisions.
Directors and Executive Oﬃcers attend the meetings to report and discuss business policies, business plans,
their implementation of separate operating divisions as well as any problems they are facing. If there is any
important matter that should be referred to the Board of Directors pursuant to the Regulations on the Board of
Directors, it will be proposed to the Board of Directors.
The Nomination and Compensation Advisory Committee has been set up as a voluntary advisory body to theBoard of Directors. It is intended to increase the fairness, transparency and objectivity of procedures for thenomination and compensation of Directors and Executive Oﬃcers and to enhance corporate governance. This
committee consists of ﬁve members. They are Shigeru Takaragi, Representative Director, chairing thecommittee, and four independent Outside Directors. In answer to consultations from the Board of Directors,
the committee discusses matters related to the election and dismissal of Directors and Executive Oﬃcers and tocompensation for them, and submits reports to the Board of Directors.

Auditing and Supervision

The Audit and Supervisory Committee members and the accounting auditors hold regular meetings. They
collaborate with each other through brieﬁngs on auditing plans, explanations about matters that accounting
auditors should report to the Audit and Supervisory Committee members, reports and reviews related tosummaries of quarterly ﬁnancial results, and reports providing auditing summaries. They also meet as needed
to provide information and exchange views on matters necessary to the auditing process. They thus strive to
make auditing more appropriate and reliable and to strengthen their collaboration. The Audit and Supervisory
Committee and the Internal Audit Department regularly exchange information with each other on the building,
implementation and evaluation of the internal control system.

TODA KOGYO CSR Report 2022 19

Safety and Health Activities
Safety and Health Activities in the Workplace
The TODA KOGYO Group gives top priority to the safety and health of its workers. We will enhance workplaceenvironments to ensure that our staﬀ can keep working safely and with peace of mind. At the same time, we also
carry out personnel development.
For the purposes of sharing actions related to safety and health throughout the Group and carry out theseactions more intensively, we hold a Central Safety and Health Meeting on a quarterly basis. It manages the progress of these activities and distributes information to individual plants.

Facts about industrial injuries

In 2021, the Group had three work-related injuries (referring to any injury during work resulting in at lease
one day of absence). Two occurred in Japan and one overseas. Each year, we calculate rates of frequency andseverity as key performance indicators of our industrial safety and health operations. For 2021, the frequency
rate was 1.37, compared with a target of 1.80 or less. The severity rate was 0.00 against the target of 0.10 orless. We thus met both targets.
We set these targets in consideration of past data on average ﬁgures in all business sectors in Japan. From 2022,
we will pay attention to average data in all manufacturing sectors in Japan. In particular, we set a more demanding
frequency rate target. We will take steps to boost hazard sensitivity with a view to meeting the target.
（Frequency rate）（Severity rate）
Frequency rate

2.50

Severity rate

Target for 2017-2021

10.00
8.00

Fiscal1.50

6.00

Frequency rate

1.37

1.80⇩

1.20⇩

1.00

4.00

Severity rate

0.00

0.10⇩

0.10⇩

0.50

2.00

2.00

Severity rate target
0.00

0.00
2017

2018

2019

2020

2021 Fiscal

Trends in the Group's safety and health KPIs (on a domestic consolidated basis) in the past ﬁve years

2021 results 2021 targets 2022 targets

Frequency rate: Number of industrial injuries per million
cumulative actual working hours

Severity rate: Cumulative number of lost working days for reasons ofindustrial injuries per thousand cumulative actual working hours* From the report for 2021, a ﬁscal year for statistical purposes begins on January 1 and ends on December 31, whereas it formerly began on April 1 and ended on March 31.

Safety activities

Priority activities for ﬁscal 2021 include inter-plant mutual safety patrol and the establishment of the Day ofCommitment to Safety in addition to those continuing from the previous ﬁscal year, namely safety and healtheducation for young personnel and heat stroke prevention measures.

Safety and health education for young personnel

We run a safety and health education program for young employees with less than three years of service.
They receive education centered on risk assessments in their workplaces once a year for three years. For
ﬁscal 2021, the Research & Development Division also organized a monthly event for improving hazard
prediction and hazard sensitivity in teams of ﬁve, mainly comprising young employees. The event took placea total of 10 times. These activities will be intensively conducted in ﬁscal 2022 as well.

Heat stroke prevention measures

The Group runs the STOP Heatstroke Cool Work campaign pushed by the Ministry of Health, Labour andWelfare each year. Our activities include measuring the wet bulb globe temperature (WBGT), education on
knowledge about heat acclimation and the stockpiling of oral rehydration solution and salt candies.

Inter-plant mutual safety patrol

Safety and health personnel at the Onoda, Otake and Okayama Plants mutually carried out patrol of otherplants. They identiﬁed a total of 64 issues and 12 good points at all the plants. They reviewed rules that
apply at individual plants to share understanding about standards for the operation of protective equipment
and forklifts.

20 TODA KOGYO CSR Report 2022

Establishment of the Day of Commitment to Safety

On August 5, 2020, an industrial injury occurred that theGroup cannot and must not forget. We deﬁned the date ofAugust 5 as the Day of Commitment to Safety. It is
intended to prevent our resolution to never let any
industrial injury like that happen again from fading. On
that date, we displayed vertical banners and oﬀered a silent
prayer in the morning meeting across the Group. This
activity will continue to be held on August 5 each year.

Workshops and seminars

The Day of Commitment to Safety (at the Onoda Plant)

In addition to the groupwide priority activities, the Group
organized workshops for individual plants. Those conducted for ﬁscal 2021 include a seminar for preventing
backache, special education for handling low-voltage electricity, special education for small-sized boiler
operations, special education for grinding wheels, health education on laser works and health lectures. These
activities help maintain and improve accurate awareness about safety and health among the Group's
workforce.

Seminar for preventing backache (at the Otake Plant)

Special education for handling low-voltage electricity(at the Research & Development Division)

General disaster drill (ﬁre prevention and evacuation)

The Group conducts disaster drills based on detailed
hypothetical scenarios, such as a major earthquake along the
Nankai Trough and subsequent tsunamis and torrential rain
resulting in river ﬂoods.
Their results are used for disaster control measures thatprioritize saving lives of customers, local inhabitants andemployees.

Evacuation drill (at the Onoda Plant)

Rescue drill (at the Otake Plant)

Fire ﬁghting drill (at the Okayama Plant)

TODA KOGYO CSR Report 2022 21

Quality
Enhancing Product Quality
The TODA KOGYO Group has drawn up its
Toda Spirits
Quality Policy on the basis of the Toda Spirits,
which consist of six principles on manufacturing.
◆ Manufacturing that puts safety and security ﬁrst
The policy stipulates that we will carry out con◆ Manufacturing that seeks trust and satisfaction
tinuous activities for enhancement to provide
from customers and business partners
quality that achieves customers' trust and satis◆ Manufacturing that individuals endeavor to improvefaction. Based on this policy, we carry out thewith the use of their capacity
quality assurance activities described below.
◆ Manufacturing that creates originality and marketability
Executing this policy is the responsibility of the◆ Manufacturing that seeks stability, reproduction andQuality Assurance Department. To ensure thateﬃciency of quality
quality assurance activities are impartial and eﬀec◆ Manufacturing that is implemented on a global scale
tive, this department is an organization that iswith environmental consideration
independent from the sales, development andmanufacturing functions.
The Quality Assurance Department organizes Quality Assurance Committee meetings. It is ready to share information with quality assurance teams in diﬀerent plants in the Group and to ensure groupwide eﬀorts to deal withquality issues. It performs quality audits of manufacturing teams in the Group. It quickly identiﬁes information
about complaints and claims from customers to sales teams and takes swift action to respond to signiﬁcant incidents. It works to identify causes of individual complaints and claims, develops, implements and reviews recurrence prevention measures, and introduces them across the Group from a working-level perspective.
For ﬁscal 2022, it will strive to introduce an IATF 16949-compliant system to automotive products. It will
strengthen our global structure and toughen risk management to step up preventive actions. From the perspectiveof developing personnel through manufacturing, it will collaborate with the Human Capital Development Department for personnel development and for heightening quality assurance activities.

Quality Assurance Activities
1. We check to ensure that we comply with the requirements of the ISO 9001 series and carry out quality
audits aimed at increasing the level of our quality assurance system.
2. We monitor our state of compliance with laws, regulations and other requirements.
3. We conduct overall quality improvement activities, including quality analysis, guidance on improvement
to relevant teams and organizations of regular Quality Assurance Committee meetings for quality-related
discussions. All of these activities are designed to improve the quality of the TODA KOGYO Group's
products.
4. We are working to improve the quality assurance systems of overseas operating companies.
5. We conduct personnel education for building up capacity on the shop ﬂoor.

Identifying causes of complaints
and claims
Developing and implementing
recurrence prevention measures
Managing the progress of measures and introducing themthroughout the Group
Carrying out preventive actions

Quality assurance system diagram
Management Conference
ReportInstruction

Risk Management Committee
ReportReportInstruction

Quality Assurance Committee (Quality Assurance Department)
Research & Development Division
Consultation

Spread of measuresin the Group

Technical support

Onoda Plant

Otake Plant

Information
gathering
Report on
remediation

SupportHuman Capital Development Department

Quality audit
Guidance

Okayama Plant
Notiﬁcation ofcomplaints and claims

Sales personnel

22 TODA KOGYO CSR Report 2022

Guidance

Tokyo Shikizai Industry Co., Ltd.

Quality education
Personnel development

Other manufacturing subsidiaries

Enhancing the Quality Management System for Automotive Products
The Otake Plant has acquired VDA certiﬁcation for a product safety and conformity representative (PSCR) and operates its enhanced product safety management system in aneﬀort to prevent product recalls and other quality incidents.
To facilitate activities to acquire and maintain IATF 16949 certiﬁcation, it has gained
supply audit certiﬁcation (SAC) and is working to upgrade its management system.
We are thus improving the level of conformity to requirements from automotive customers.
For ﬁscal 2022, we will strive to obtain IATF 16949 certiﬁcation for more operations.

Inquiries from Customers
The Group always seeks to respond to customers' inquiries on products and CSR activities quickly and carefully
with a view to maintaining and improving product quality.
Relevant teams work together day and night to quickly address issues that are identiﬁed from the inquiries.
As shown in the diagram below, inquiries about chemical substances account for a large proportion of the inquiries we receive. For ﬁscal 2021, we worked intensively to shift to safety data sheets (SDS) for products in conformity to the revision to the JIS Z-7253 standard.
Day by day, the Group sincerely deals with inquiries from customers.
■Chemical substances■Conﬂict minerals

1％
21％
4％
10％

■Environmental and quality management systems

14％

57％

10％ Otake Plant

8％

4％
70％

3％

6％

Okayama
Plant■Others

14％

25％

5％

Onoda
Plant

■Business continuity planning (BCP)

11％
62％

Tokyo
ShikizaiIndustry75％

Small Group Activities
Based on the idea of personnel development leading to manufacturing, the Group is working to create a corporate culture of identifying problems in workplaces and thinking actively about how to cope with them. In addition
to activities for improvements, we conduct small group activities based on the 5S practices that serve as the foundation for all kinds of operations. We perform these under the name of the 5S model activities each year. They
nurture skills to remove any problems and waste that are discovered, aiming to help revitalize our workplaces.
In addition, on the basis of these 5S practices, we are providing total quality management (TQM) training andactions through small group activities aiming to achieve
improvements. We distribute the Guide to QC Circle Activities
QC サー
to workplaces engaging in manufacturing and take advantage
クル活動
の手引き
of small group activities not only for training but for on-the-job
training. For ﬁscal 2021, we provided the training on the Five
Whys again at the Onoda, Otake and Okayama Plants. The
Five Whys is a TQM approach. We made eﬀorts to truly prevent any past deﬁciencies from occurring again.
For ﬁscal 2022, we will focus on total productive maintenance(TPM) for preventive purposes. We will strive to further
enhance small group activities.
第２版

所属部署
・サークル名
︓

生産本部

人財開発
室（編）

TODA KOGYO CSR Report 2022 23

Environmental Vision
Environmental Vision 2033
Business activities
Eﬀectively utilizing industrial waste

Forming a recycling-oriented society

Providing environmentally-harmonizedproducts and technologies

Reduction greenhousegas emissions

Conserving biodiversity

The TODA KOGYO Group is aware that environmental issues are ofsuch signiﬁcant that the Group cannot ignore them if it is to survive as achemical manufacturer. We have long been working to shift our production process from the dry synthesis method, which has a substantial
environmental impact, to the pollution-free wet synthesis method and torecycle waste ﬂuid from steel plate manufacturers and waste from ourplants in an eﬀort to reduce our environmental footprint.
In 2019, oﬃcers and employees discussed what our vision for 2033,
which will be the 100th anniversary of the Group's founding. Based onthese deliberations, we adopted the Environmental Vision 2033. Its goalis accelerating our eﬀorts to reduce our environmental impact.

Basic Environmental Policy

TODA KOGYO Group conducts environmental management based on the ISO14000 series, and not only
recognizes environmental conservation as the mission imposed on global citizens, but also considers
environmental conservation activities and management activities coaxial. We are responsible for ourselves andwork on these activities across the entire group.

Concrete codes of conduct(1) Setting and achievement of high environmental conservation goals
Executives and employees set high goals that anticipate social expectations at their own responsibility, andstrive to create economic value through the achievement of them, as well as compliance with laws andregulations.
(2) Promotion of the development of innovative environmental technologies
Executives and employees create customer value, proceed with the development of innovativeenvironmental technologies widely used across society, and promote the development of environmentally
harmonized products.
(3) Continuous improvement with the participation of all executives and employees
Executives and employees grasp the impact on the environment in all business activities, and continuously
improve on the prevention of pollution and eﬀective use of energy and resources by all participants.
(4) Provision of environmentally conscious products and services
When providing products and services, executives and employees strive to reduce the environmental loadin all stages leading to sales, logistics, use, recycling and disposal from procurement policies and production.
(5) Improvement of consciousness and promotion of responsible environmental conservation activities
Each and every executive and employee broadly looks at society, raises awareness through positive
learning, and proceeds with environmental conservation activities by his/her own responsibility.
(6) Contribution to the realization of a sustainable society
Executives and employees contribute to the realization of a sustainable society by means of joining andsupporting environmental conservation activities.
(7) Acquisition of social trust through communication
Executives and employees develop environmental conservation activities in cooperation with stakeholders
and gain the trust of society through active communication.

Third-party assessment

Aside from environmental management that complies with the ISO 14000 seriesof standards, the Group undergoes a CSR assessment performed by EcoVadis.
This assessment examines the four subjects of the environment, labor and humanrights, ethics and the sustainable procurement of materials. It complies with theUnited Nations Global Compact Principles, the International Labor Organization(ILO) Global Jobs Pact, the Global Reporting Initiative (GRI) Standards, the ISO
26000 standards, the Coalition for Environmentally Responsible Economies(CERES) Principles and other international CSR standards. In 2022, we received abronze EcoVadis medal, as we did in 2021.

24 TODA KOGYO CSR Report 2022

Carbon Neutrality
Published in August 2021, the Sixth Assessment Report (AR6) of the United Nations (UN) Intergovernmental
Panel on Climate Change (IPCC) set a target of net zero global CO2 emissions in 2050 in its scenario for keeping
the global average temperature rise to 1.5°
C or below (SSP1-1.9).
The Group deﬁnes the existing Environmental Vision 2033 as an intermediate goal. Our eﬀorts to develop aroadmap to carbon neutrality, which we call Road to 2050 Carbon Neutrality, are underway. Viewing climatechange as a key management issue, we will address global warming to establish a sustainable economic societythat enables future generations to live with peace of mind.

Five missions for Carbon Neutrality 2050
Mission 1: Reduce CO2 emissions by conserving energy (Scopes 1 and 2)

Mission 2: Shift from fossil fuels to non-fossil fuels and renewable energy (Scopes 1 and 2)

Mission 3: Reduce CO2 emissions derived from raw materials and services purchased (Scope 3)

Mission 4: Create sustainable new business and reconstruct existing businesses (Scopes 1, 2 and 3)
Mission 5: Provide technologies and products that aid in carbon neutrality (Scope 3)

Reduction of greenhouse gas emissions(1) Reduce energy consumption per unit of net
sales by 20%
In October 2020, the Japanese government declared(2) Increase the percentage of energy fromthat the country would achieve net zero greenhouse gas
renewable sources to 20% or more
emissions, or carbon neutrality, by 2050. In response, in(3)
ReduceCO2 emissions per unit of net sales
June 2021, the Group adopted a more ambitious
by40%
greenhouse gas reduction target in the Environmental(4) Reduce CO 2 emissions from transport andVision 2033.
commuting by 30%
In ﬁscal 2021, 49,400 tons of CO2 were emitted from
(Figures expressed as a percentage of the ﬁgure in ﬁscal
the Group's operations in Japan. This is a 45%
2013 with the target ﬁscal year of ﬁscal 2033)
r e d uc tio n in terms of total emi ssi ons and a 3 2 %reduction in emissions per unit of net sales from their levels in ﬁscal 2013. CO 2 emissions decreased 5% fromthe ﬁscal 2020 level even though the production volume grew around 13%. The accumulation of several
activities including steady eﬀorts to conserve energy, increase production eﬃciency and switch to energy withlower CO2 emissions have begun to achieve results. We are steadily nearing our target.
From ﬁscal 2022 onwards, we（t-CO2/M￥）
w i l l l o o k a t i n t r o d u c i n g （kt-CO2/Y）
photovoltaic power generation 100
Fiscal 2033 target
4.0
and other renewable energy
80sources as well as internal
3.0
Down 45%60
carbon pricing, which is a
2.0
system under which the carbon
40
price is estimated internally to
1.0
20
encourage low-carbon
investments. We will broaden
00.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 Fiscal
2013 2014 2015 2016 2017 2018 2019 2020 2021 Fiscal
the scope of activities with aCOCO
2 emissions
2 emissions per unit of net sales
view toward achieving the(scopes 1 and 2 in Japan)(scopes 1 and 2 in Japan)
target.
CDP climate change questionnaires

We have been completing CDP climate change questionnaires since 2016. We disclose
our climate actions to institutional investors. For 2021, we received a score of C, as we did
the previous year. This suggests that there is room for us to improve our information
disclosure eﬀorts. Going forward, we will address material issues, make a scenario analysis
and develop a transition plan as required in the TCFD framework with the aim ofintegrating our management strategies with climate actions and increasing the level of
information disclosure.

TODA KOGYO CSR Report 2022 25

Environmental Activities
Eﬀective Use of Industrial Waste
The TODA KOGYO Group has set the goals below regarding industrial waste in its Environmental Vision 2033.
We will recycle industrial waste in order to reduce industrial waste subject to ﬁnal disposal in landﬁlls to zero byﬁscal 2033.
· Reduce the amount of industrial waste by 30% from the ﬁscal 2013 level · Achieve a 100% recycling rate
Waste emissions（thousand tons/year）

12

Target

100

10

90

8

80

6

70

4

60

2
0

Target

（％）

2013

2017

2018

2019

2020

2021 Fiscal

Waste emissions from the Otake, Onoda and Okayama
Plants and Tokyo Shikizai Industry Co., Ltd.

50

2013

2017

2018

2019

2020

2021 Fiscal

Recycling rate of the waste from the Otake, Onoda andOkayama Plants and Tokyo Shikizai Industry Co., Ltd.

Industrial waste emissions are decreasing. However, the recycling rate is stagnant. This is regrettable. We willtake the actions below in the future with a view towards meeting the targets:· Reduce the volume of waste (by drying and compressing it)· Accelerate the use of sludge as a cement material· Search for applications of recycled sludge and recycled waste plastics

Sorting of waste (at the Otake Plant)

Sorting of waste (at the Onoda Plant)

Recycling of sludge (at the Onoda Plant)

Reducing the volume of waste (at the Okayama Plant)

26 TODA KOGYO CSR Report 2022

Wastewater (Eﬀective Use of Water Resources)（thousand cubic meters/year）
Amid the increasing risks related to global warming, there
1,800
are concerns about water shortage due to extreme weather
1,600
and drought.
1,400
The Group necessarily uses water in its production activities
due to the characteristics of its products. An issue we face is
1,200
reducing the amount of water that we consume. We properly
1,000
treat the wastewater emitted from plants at our wastewater800
treatment facility before discharging it into the sea, a river or600
a public sewage system. We need to take steps to reduce the400volume of wastewater because this will reduce our environ200
mental impact.
0
2017
2018
2019
2020
2021 Fiscal
We optimize the operations of plant facilities to control theuse of water. We actively use cooling towers to cool water
Wastewater volume from the Otake, Onoda
and Okayama Plants and Tokyo Shikizai
and reduce water consumption.
Industry Co., Ltd.
The actual volume of wastewater is increasing. We will takethe following measures to curb this increase.
· Reuse water after it is used the ﬁrst time in plants· Introduce production processes that lead to using a smaller amount of water

Wastewater treatment facility (at the Onoda Plant)

Filtration system(at the Onoda Plant)

Noise
The Group is striving to minimize the impact of noise from its plants on their surroundings in order to maintainthe peace and quiet of the surrounding environment. We are taking measures to ensure that noise levels do not
exceed the threshold set by the Noise Regulation Act and the level agreed on with local governments at theboundaries of the premises. We have third parties regularly measure noise levels at the boundaries of the premises to check that regulations are observed.
（dB）

Average noise level75

Maximum noise level
Agreed level70

Average noise level（dB）

Maximum noise level
Agreed level

75
70

65
65

60

60

55
50

2017

2018

2019

2020

2021 Fiscal

Noise at the boundaries of the premises of the Otake Plant

55

2017

2018

2019

2020

2021 Fiscal

Noise at the boundaries of the premises of the Onoda Plant

TODA KOGYO CSR Report 2022 27

Sustainable Procurement
Sustainable Procurement
The TODA KOGYO Group shares the global values in the areas of human rights, labor, environment andanti-corruption that are speciﬁed in the United Nations Global Compact. We endeavor to increase sustainability
together with our suppliers in accordance with the Procurement Policy available on our website, with the aim ofenhancing our business competitiveness and corporate value while contributing to society.

Procurement Policy

Since its founding, the Group has consistently adhered to a spirit of creation and originality. We have honed
our skills and sharpened our senses to create value. We have adopted the Procurement Policy below tocontribute more than ever to society as a world-leading materials manufacturer.

Guidelines
1. Statutory Compliance: We will comply with laws and ordinances in all activities relating toprocurement and ensure the fairness of transactions.
2. CSR: We will be aware of our responsibilities as a better corporate citizen, and will proactively
conduct CSR activities. We will work with suppliers who share our aspiration to serve society.
3. Green procurement: We will pay attention in our procurement activities to the protection of resources
and the conservation of the environment.
4. Fair and impartial transactions: We will keep the possibility of purchase transactions open broadly to
Japanese and overseas suppliers and engage in these transactions based on fair and impartial
standards.
5. Selection of suppliers: We will comprehensively evaluate suppliers based on quality, pricing, delivery
time and other factors and select suppliers based on economic rationality, considering eﬀorts to reduce
costs and the potential to provide new materials and technologies.
6. We will always seek sound purchase transactions and eschew speculative transactions.
7. We will strictly control the materials and information provided to us in connection with purchase transactions.

CSR procurement

The Group will work with all parties involved in our supply chain to implement sustainable procurement.
Our purchase regulations oblige us to investigate suppliers. We ask signiﬁcant suppliers to answer the CSR
Self-Check Sheet. This sheet is provided in the Japanese, English and Chinese languages. After receiving their
responses, we will issue feedback sheets to them. We do this each year and ask them to operate a PDCA cyclethat enables them to follow an upward spiral improving their CSR activities.

(1) Distribute the CSR Self-Check Sheet(3) Issue feedback sheets

Investigation

TODA KOGYO
Group

Suppliers

Customers(2) Reply to the CSR Self-Check Sheet

Action report
66 signiﬁcant suppliers

Criteria for signiﬁcant suppliers

4· A large purchase amount· Supplying raw materials or componentsthat are diﬃcult to replace· Supplying important materials or components

14
46■Japan28 TODA KOGYO CSR Report 2022

2

■China■Europe and USA■Southeast Asia

Major investigation items in the CSR Self-Check Sheet
Quality actions· Organization· External certiﬁcation· CSR· Quality control

Environmental
considerations· External certiﬁcations,such as ISO 14001
certiﬁcation· Environmental
conservation
activities

Respect forhuman rights

Safety and health· Employment· Safety for workers· Young workers· Preparation for
emergency· Working hours· Elimination of
discrimination

Sound business
management

Business
continuity plan

· Fairness and information · Emergency structure
disclosure· Assumption of recovery· Information security · Education· Industrial injuries,· Mineral procurement
diseases and health · Intellectual property· Alternative strategies· Internal auditing· Carbon neutrality· Life cycle assessment(LCA )

Use of CSR Self-Check Sheet in ﬁscal
2021

Target of 90% or more

Number of issues

66

Business continuity plan

Number of responses

65Sound business management

Response rate

98%

85％
92％
95％

Safety and healthRespect for human rights

96％

Environmental considerations

88％

Quality actions

94％

Results of CSR self-checks by suppliers(achievement rates against requirements)

Message to suppliers

At the Group, some speciﬁc plants are striving to acquire IATF 16949 certiﬁcation. IATF 16949 is a
specialized standard for the automobile sector. This standard requires the development of a quality
management system that leads to the prevention of defects and the reduction of inconsistencies and waste in
the supply chain.
We will ask our suppliers to establish quality management systems that will result in the reduction ofinconsistencies and waste in the supply chain, to carry out quality assurance activities and to make sure thatthey make similar requests of their suppliers.

It has been two years since I was transferred to the Procurement & Logistics
Department. My main duties are procuring the raw materials necessary for production
with stable quality, at proper prices and in appropriate quantities. We feel grateful to our
suppliers for their constant cooperation.
We face today an urgent need to combat global warming. Thinking about what we cando to reduce CO2 emissions and create a carbon-free society, we are seeking to changemanufacturing. As activities towards the achievement of the SDGs are gathering
momentum at schools, children are increasingly involved in these activities. I believe thatthe whole world should work together for the future to address this issue. The Procurement& Logistics Department will strive to use raw materials that consider a carbon-free society
and renewable energy.

Mari Kawamura, Procurement & Logistics Department

TODA KOGYO CSR Report 2022 29

Exchange with Local Communities
Responsible Care Activities and Local Dialogue Meetings
TODA KOGYO is a member of the Responsible Care Committee of the Japan Chemical Industry Association andis involved in responsible care activities.

Responsible care activities
Voluntary activities for ensuring the environment, safety and health in all the processes involving
chemical substances, including development, manufacturing, distribution, ﬁnal consumption, disposal andrecycling, publishing the results of the activities and entering into dialogues and communication withsociety.
Our Otake Plant and Onoda Plant jointly organize local dialogue meetings with other member companies intheir respective regions. At local dialogue meetings, individual companies explain their respective businesses andsafety activities and exchange opinions with locals.
For ﬁscal 2021, local dialogues took written form in both regions for the purpose of preventing COVID-19
infections. Individual companies created and distributed preliminary reports on their businesses and safety
activities so that locals could take a look at them. We received comments and inquiries through questionnaires.
We organized responses collected from relevant companies to distribute a collection of their replies.
We will continue to seek active dialogues and communication with local residents.

Our responses to inquiries and comments collected through the questionnaire.
Otake Plant

Q Do you develop and produce bioplastics and similar materials?

A We are working to develop plant-derived biomass plastic materials that will replace plastics

used in magnetic compounds.

Onoda Plant
Q I hope that you will organize plant tours every year.

A We will strive to plan and hold tours of our plant so that it is better understood by local residents.

Q I want you to participate in job fairs that take place in the district each year.

A We took part in a job fair after receiving this comment. We will continue to take part next year

and beyond.

Cleanup Activities in Ogura District inOkayamaOur Okayama Plant is located in the Ogura district in Takebecho. It
conducts road gutter cleanup activities together with local residents.
If fallen leaves and leaf soil were left unremoved in road gutters,
roads would be covered with rainwater and become like rivers. The
elementary school route includes some roads around the plant. The
activities are important for the purpose of ensuring the safety ofschoolchildren. Local residents have long been active in conducting
the cleanup activities. As the aging and decline of the local population continues, the activities are becoming a heavier burden on them.
In light of this situation, some plant staﬀ have been taking part in thecleanup activities since 2013, which is the year the Okayama Plant
obtained ISO 14001 certiﬁcation. It is a routine to show andexchange gratitude with local community participants with a smile
and with a refreshed mind before a breakup.

Road gutter cleanup activities

Participants from the community of the
Ogura district and Okayama Plant members

30 TODA KOGYO CSR Report 2022

Online Science Lessons
On February 10, 2022, we gave online lessons for the ﬁrst time to second-year students in three science classesof Shiga Prefectural Torahime High School. The lessons were on the subject of the oxidization and reduction ofiron oxides. We explained an industrial method (i.e. the wet method) of producing iron oxides and Bengala aswell as the applications and functions of iron oxides. A student said, "I was impressed to learn that the roundabout search for a method that diﬀered from the dry method amid a crisis of corporate survival due to pollution
resulted in numerous discoveries andachievements." Another commented
that oxides were so profound that different kinds of iron oxides vary signiﬁcantly in properties. The feedback
convinces us that the lessons helped
the students with their learning.
Online lessons can be given irrespective of geographical distance. We willcontinue giving them when we havethe opportunity to do so.
A scene of an online lesson(Photo courtesy of Torahime High School)
We were able to communicate our long experience cultivated through our core businessand the viewpoint we value in the form of school lessons.
We are happy if they oﬀered excitement that students may not normally encounter intheir lessons or helped them discover something they had been unaware of in daily life.
We will continue to pass information on to the next generation, which will play a central role in the future, in a way that is as memorable as possible.

Torayuki Honmyo, Leader, Business Development Group

Relief Activities in Areas Flooded by Typhoon: Toda Kogyo Asia
(Thailand) Co., Ltd.
Late in September 2021, a typhoon caused ﬂoods in the central and northeastern parts of Thailand.
Toda Kogyo Asia (Thailand) Co., Ltd. (TKAT) itself was not aﬀected, but some employees suﬀered damages.
The ﬁrst ﬂoor of the house of one employee living in Ayutthaya was completely under water. TKAT provided
support for aﬀected employees together with drinking water to 185 households in the aﬀected areas. Some employees voluntarily brought eggs and face masks. TKAT donated them together with drinking water.
We will continue to serve local communities with a spirit of mutual help.

TODA KOGYO CSR Report 2022 31

Compliance
Compliance
Basic Stance

The TODA KOGYO Group is working to maintain and improve the Group's compliance on the basis of its
Code of Conduct, according to which every single member of staﬀ should behave with a high sense of ethics asa sincere and fair corporate citizen.

Compliance Helpdesks

In accordance with our Compliance Implementation Regulations, we have set up internal and external
compliance helpdesks and work to prevent violations of any law, ordinance or social ethics and to swiftly
discover any violation. Inside the Group, internal personnel including the full-time Audit and Supervisory
Committee member work for the helpdesk. Outside, our legal advisors are available for contact. Each helpdesk
has at least one female staﬀ member. To facilitate contacts and to protect those who do contact helpdesks, we
provide a broad range of options for contact, including oral communication, phone, e-mail and writing. The
helpdesks also accept anonymous contacts. The fact that any of the helpdesks is contacted and the information
provided will be treated as conﬁdential information and under strict control in order to prevent those who
make contact from being disadvantaged.

Audit and Supervisory Committee
Board of Directors
Management Conference Compliance Committee

ReportCompliance Promotion Bureau
Report· Inquiries· Violation incidents

Employees

Internal helpdesk(with twostaﬀ members)

Response andreportAt the discretion of· Full-time Audit and Supervisory
Committee member· Outside helpdesk (with two staﬀ members)

Compliance helpdesks

Contact

Compliance Committee

With the objective of improving corporate governance, the Management Conference has been holding aCompliance Committee meeting on a quarterly basis since July 2022. Chaired by the Representative Director,
the Compliance Committee makes decisions on compliance policies and monitors their implementation together
with Executive Oﬃcers and the full-time Audit and Advisory Committee member. The Executive Oﬃcer incharge of compliance is responsible for the Compliance Promotion Bureau. This organization engages in the
management of individual incidents and operation of the system.

Board of Directors

ReportConstruction of systems
Overall monitoring andmanagement of compliance(Meeting minutes of the Management Conference)Management Conference
ReportRepresentative Director
Control
Compliance Committee

Implementation report（quarterly）

Instruction on policies

Compliance Promotion Bureau
Education

Employees

32 TODA KOGYO CSR Report 2022

Report ofresults
Response and report
Contact

Management of individual incidents

ReportSystem operation· Inquiries· Violation incidents

Individual incidents
Compliance Helpdesks

Respect for Human Rights
Respect for Human Rights
The TODA KOGYO Group views the originality of its individual employees and their diversity as assets. We willencourage all employees to display their capabilities and their initiatives to the fullest degree and will evaluate
them impartially. We will strive to increase their peace of mind and richness and aim to live together.

Basic Policy

The Group always respects fundamental human rights since they are a prerequisite to mutual understanding.
The Group will not discriminate against any person on the grounds of race, faith, gender, social status,
nationality, disease, disability or other characteristics.

Speciﬁc Standards of Conduct

Eliminate all kinds of discriminationOﬃcers and employees shall respect the fundamental human rights of individuals. They shall not engage inany discriminatory speech or conduct, act of violence, sexual harassment, abuse of power or any otherconduct that disregards human rights.

Protect the Privacy of Individuals

Oﬃcers and employees shall pay the utmost attention to avoid infringing on the privacy of any individual at
the time of handling the personal information of any individual inside or outside the Company for the
purpose of business activities and shall properly manage such information.

Eliminate unfair laborOﬃcers and employees shall eliminate unfair labor. They shall employ no child under the minimum employment
age stipulated in laws and ordinances in the relevant country or region to any work. Oﬃcers and employees shallrequest sales stores and business partners to take actions equivalent to those taken by the Group.

Enriching of programs

We have established the Harassment Prevention Regulations, the Personal Information Protection
Regulations, the Childcare and Nursing Care Leave Regulations, the Regulations for Personal Injury and Illness
Leave and Return to Work, the Regulations for Stress Check Program, the Compliance Implementation
Regulations and the Compliance Helpdesk Program and other policies in an eﬀort to ensure a respect forhuman rights throughout the Group.

Harassment helpdesk program

We have set up helpdesks at the Personnel & General Aﬀairs Department and at an outside
law ﬁrm. These helpdesks receive inquiries and complaints about acts of harassment andabuse and take proper actions in accordance with the Harassment Prevention Regulations.

Outside Harassment Helpdesk: Yurie Jibiki, Attorney at Law, Toyoshima & Partners

I am working to be of help to TODA KOGYO Group employees in acting soundly. Upon
Yurie Jibiki,
receiving an inquiry from an employee, I will deal with it from a fair and impartial perspective
Attorney at Law,
as an outside expert.
Toyoshima & Partners

Actions regarding respect for human rights
Recruitment of foreign nationals

We actively recruit new graduates and others of foreign nationality. We have three foreign nationals as regular
employees. Since ﬁscal 2019, we have been taking part in the initiative of the Hiroshima Prefectural Government
to encourage international students majoring in the natural sciences and engineering to join companies in theprefecture. We are placing an emphasis on hiring competent personnel from countries in Asia and other regions.

Support for training staﬀ working for overseas subsidiaries

Since ﬁscal 2017, we have been oﬀering education support aimed at the career development of local
managers (of non-Japanese nationality) serving our overseas subsidiaries.

Education for personnel assigned to overseas positions

We oﬀer varied kinds of training to Japanese employees who are, or who will be, assigned to overseas
subsidiaries for the purpose of ensuring the orderly operation of subsidiaries. The training includes the basics
of business in diﬀerent cultures. In ﬁscal 2019, we oﬀered quality control training to staﬀ at overseas
subsidiaries at the Otake Plant. Currently, we are unable to provide this training because of the pandemic.
We will resume it as soon as it becomes possible.

Actions for preventing child labor

We have developed the Basic Policy Concerning Conﬂict Minerals. We are making eﬀorts across the supply
chain to procure no raw mineral materials that are produced in any manner that could lead to child labor,other human rights infringements or destruction of the environment.

TODA KOGYO CSR Report 2022 33

Personnel Development
Training Program
TODA KOGYO plans and provides internal training designed for diﬀerent grades. Some training sessions were
not held due to the pandemic and other reasons. The training opportunities shown below are planned.
Category
Grade

For selected
personnel

Correspondence education course

Training for new employees
Follow-up training for new employees

Language training

Grade 2

Quality control training

Training for Grade 3(main players)

Training for appraisers

Grade 3

Second life training and careerdevelopment training

Training for Grade 4(chiefs and equivalents)

Management Principle

Grade 4Training for women atmanagement positions

Training for Grade 5(assistant managers and equivalents)

On-the-job training
for leaders

Grade 5

Self-development

Focused on speciﬁc issues

Training for recruitment
interviewers

Training for managers

Language training

Managers

Training for personnel assigned overseas

Seniormanagers

Training for management
personnel

Corporate
OﬃcersGlobalMental health care (superiors' care and self-care)

Management workshop andtraining for directors

Dispatch to outside bodies (universities, graduate
schools, research institutions and suchlike)OﬃcersExecutive Oﬃcers

For speciﬁc grades

Training on Corporate History
In preparation for our 200th anniversary in 2023, we are providing training on our corporate history to employees in their thirties and forties. With some working experience, they will play central roles in the future. Referring
to TODA KOGYO's past periods, this training enables trainees to learn about and understand the thoughts, stances and work of our predecessors in the company.

Soichi Okubo Coordinator,
Recruit Management
Solutions Co., Ltd.
Acting as a lecturer in the
training on corporate history

It is not designed to merely teach them the company's history. It looks back on
episodes at the company's past turning points to highlight the hardships, dilemmas and endeavors of predecessors faced to achieve corporate and businessgrowth. It has already been held several times. One trainee commented, "I realize that what the company is today is based on the leaders and the production,engineering, sales and management teams facing diﬃculties and working hardfrom their respective standpoints and seizing opportunities without fail." Anothercommented that he again felt a sense of attachment to TODA KOGYO, with its
nearly 200 years of operation.
In the training, employees in the same generation form a group. They will see
career views and stances of other members with whom they usually do not interact. That will provide them with a fresh stimulus.
I hope that the training will be an initial step for trainees to open up a new era.

Interview with a Staﬀ Member
I joined the company more than three years ago as a mid-career job seeker. I have since
been working mainly as a salesperson in Tokyo, although I worked at the Otake site as amember of the Marketing Department for a year. The site is where the Otake Plant,
which is a manufacturing facility, and the Creative R&D Center are located. That gives
me opportunities to see the company's products from a closer distance and communicate
closely with manufacturing and development staﬀ. I gained tremendous experience thatis helpful to my current sales roles.
Now in the age of living with the pandemic, we are gradually allowed to visit customers
in Japan. However, we still cannot freely travel overseas. It is still diﬃcult to see customers face to face. Some information is hard to obtain through online meetings or over thephone. The skill to accurately acquire the necessary information will be of increasing
importance. Receiving guidance from my superiors and senior staﬀ for building good relationships with customers, I will address my duties day by day.

34 TODA KOGYO CSR Report 2022

Cai Gailun
Business Promotion
Department,
Sales DivisionWomen Employees' Roundtable Talk
Host: What kind of atmosphere does TODA KOGYO have?
Kobayashi: I feel at home working here. Barriers between job ranks arelow. We can say what we want to do without hesitation. The atmosphere
allows young staﬀ to actively take on challenges.
Honda: We can work at our own discretion as well.
Matsumae: I feel we can seek advice from superiors and senior colleagues
without hesitation and even from other departments' staﬀ relatively easily.
There are internal training, workshops and recreational events. I feel wehave a large number opportunities for exchanges with older and younger
staﬀ.
Okita: Many staﬀ members understand private circumstances andsituations related to childcare. I feel they are thoughtful about work-life balance.
Host: What are the strengths and weaknesses of TODA KOGYO as a workplace environment for working women?
Matsumae: Our company has a helpful program for childcare. My plant has a large number of female staﬀ. It has an
atmosphere where we can easily have consultations. Since I am a development staﬀ member, I sometimes need some help
during experiments. I do my tasks with the help of people around me.
Honda: There are several situations where I could not have gotten by without the understanding of my coworkers. For
example, I must take a leave of absence or leave the oﬃce earlier when a child is ill or when there is a school event. That isreally helpful. The shortened working hours program is available until a child graduates from the elementary school. That is
also of great help to me. The company allows us to choose an area-speciﬁc career track, in which we can select where towork in the region. It is an advantage that there is no concern about transfer during the childcare period. I would like tocontinue that since I may possibly have to provide nursing care for my parents and others in the future.
Okita: I watched senior staﬀ take advantage of diﬀerent programs and enjoy support from other staﬀ to successfully
combine their working life with raising children. Therefore, I had no anxiety about returning to my original position afterchildcare leave while changing my workstyle.
Kobayashi: The company does listen to women's voices. I feel that we have numerous opportunities to display our capacity
and try something.
Honda: A downside is that the rate of women in management positions is low at 2.7%. If this rate rises, there will be more
examples that working women can learn from or follow.
Host: What is your workstyle for taking on childcare as well?
Okita: I have two children aged 5 and 2. I am working shortened hours. Currently, partly due to the pandemic, I work fromhome once or twice a week. Time constraints and unscheduled unavailability for work for reasons of children are
unavoidable, and it is inevitable that I often ask my boss and colleagues for help. I make every possible eﬀort, such as
setting a reasonable deadline and always organizing and sharing data in preparation for a sudden handover of tasks. WhenI am away from my children, I can concentrate on my work. That relieves me of the stress of childcare.
Kobayashi: I am working normal, not shortened, hours after returning to work from childcare leave. It is possible because I live
only 10 minutes or so by car from my parents, and I enjoy their full support for childcare. In addition, my group members havea good understanding about balancing work with childcare. In addition to their consideration in helping me avoid working
overtime, they cheerfully accept my tasks when I have to suddenly be absent or leave for home early. That allows me to handtasks over to members and to work with some feeling of relief.
Honda: Diversity in workstyle is important to ensuring that women raising children can work actively. I will be glad if I makefull use of diﬀerent programs in the company to become a role model for women joining us later.
Host: What is your aspiration or goal for the future?
Matsumae: First, I would like to strengthen my specialty and attain the existing development goal. Then, I hope to be able togive technical explanations to customers and other teams in the company to gain their understanding.
Okita: Me, too. I would like to improve my skills in my current role in order to do reliable work. I hope I can set an example
for my children and that they will feel proud of their working mother.
Kobayashi: I also hope that my child will see me as an ideal mother. In my working life, I am aiming to be able to listen toother members' views and ideas while positively expressing my own when faced with challenges and to take actions to turntheir abilities into advantages for our unit so that they will feel like working together with me.
Honda: Earlier this ﬁscal year, the Society of Health Managers was launched as an organization subordinate to the Safety
and Health Committee. The plant has a policy of addressing health management and mental health for the purpose ofcreating a more worker-friendly workplace environment with a view towards ensuring health and productivity management.
As a member of the Society, I will study and gain more knowledge on mental health.

From left to right:

Kozue Matsumae, Production Development
Department 2, Research & Development Division;
Mamiko Okita, Intellectual Property Group;
Ikuko Honda, Otake Plant Quality AssuranceGroup;and Kaori Kobayashi, Otake Plant
Administration GroupTODA KOGYO CSR Report 2022 35

Diversity and Inclusion
Support for Next Generation Child-Rearing and Women's Career
Participation and Advancement
In accordance with the Act to Advance Measures to Support Next-Generation Child-Rearing and the Act on the
Promotion of Female Participation and Career Advancement in the Workplace, TODA KOGYO drew up theaction plans mentioned below to support next-generation childcare and to accelerate women's career participation and advancement. We are carrying out activities in line with these plans for a ﬁve-year period from April 1,
2021 to March 31, 2026.

Action plan for supporting next generation child-rearing
TargetActions for meeting the target

Results on ﬁscal 2021

1

· Raise awareness of childcare in
workplaces· State of acquisition of childcare
leave:At least one acquiring the leaveamong male employees entitledto it
Maintain the state in which all
the women entitled to it acquire
it and return to work

· Create a situation where
employees do not hesitate totake childcare leave· Make diﬀerent programs related
to childbirths and child-rearing
known to employees regularly· Prepare internal documents
related to childbirths andchild-rearing

Childcare leave taken by two male
employees.
The ratios of women taking
childcare leave and returning towork stayed at 100% each. (See
Numbers of employees entitled tochildcare leave and taking it andratios of employees taking it andreturning to work on p. 37)

2

Create an environment for diverseand ﬂexible workstyles (byencouraging workstyles that oﬀer
ﬂexibility in terms of location,such as working from home andteleworking)Institutionalize working fromhome and teleworking andcreate an environment where
they can be smoothly
implemented· Working from home and teleworking
were implemented to a best
possible extent as an emergency
measure under the COVID-19
pandemic.
· The institutionalization of theseworkstyles is under consideration.

Provide children with fun
experience about science andchemistry· Participate in events related toscience and chemistry forelementary schoolchildren andjunior and senior high school
students· Cooperate in school educationfor elementary schoolchildren,
such as visiting lessons· One event joined· One visiting lesson given

3

Action plan for women's career participation and advancement
Target(1) Increase the ratio of women to new graduates recruited to at least 30% (cumulative total during theperiod of the plan) in order to address our problem about the low percentages of women in personnel,
new recruits and in management positions.
(2) Keep the total number of overtime working hours of all the personnel within a limit of 10 hours onmonthly average.

Actions for meeting the target(1) Disclose the ratio of employees taking childcare leave and other ﬁgures and feature some actively
working female employees on recruitment media to positively advertise our company as a
women-friendly workplace.
· Create and improve workplaces and necessary environments for women's career participation.
· Provide female employees with career education.
(2) Implement a no-overtime day to raise awareness against overtime working.

36 TODA KOGYO CSR Report 2022

Results (as of March 31, 2022)(1) Recruitment

We failed to meet the target levels in the past two years. We will review the method of calling for job
applicants to improve the situation.
40％

Target

30％

20％

10％

29％

21％

14％

15％

0％

Among newAmong newAmong all new
graduates recruited graduates recruited graduates recruitedfor ﬁscal 2021
for ﬁscal 2022

In the company's
workforce inﬁscal 2022

Percentage of women(2) Continued service and workstyle reforms
Male

FemaleAverage

Average duration of continued service

21.9 years

11.0 years

20.1 years

Average age

48.7 years

39.7 years

47.2 years（hours）

10

10.3
9.3

14

TargetAverage acquisition rate

72.3

16

8

7.2

13.9

Fiscal 2020

13.0

44.9

6

Fiscal 2021

Monthly average overtime work

80
60
40

10
8

Fiscal 2019

（％）

65.2

12

6
4

Average length acquired（days）

1220

8.7
Fiscal 2019

Fiscal 2020

Fiscal 2021

0

Average length of annual paid leave acquired andaverage acquisition rate

* For ﬁscal 2020, the monthly average overtime working hours and the average length of annual paid leave acquired were
smaller due to implementation of a layoﬀ.

Numbers of employees entitled to childcare leave and taking it and ratios of employees
taking it and returning to work
Male
Number of employees entitled to childcare leave
Number of employees taking childcare leave
Ratio of employees taking childcare leave
Ratio of employees returning to work

FemaleTargetResultTarget

1

2

―

―
―
―

6

―

33％

100％

100％

100％

Result
2
2

100％
100％

* The ratio of female employees taking childcare leave has been staying at 100% for at least 10 years.

(3) Promotion (as of March 31, 2022)
Fiscal 2019

Fiscal 2020

Fiscal 2021

Ratio of women in positions at the level of assistant managers

11.8％

11.8％

12.9％

Ratio of women at management positions

2.7％

2.7％

2.7％

Ratio of women among oﬃcers

0％

0％

0％

TODA KOGYO CSR Report 2022 37

Company Information
Corporate ProﬁleOrganization Chart●

President and CEOCore Business Division

Production Division

Onoda Plant

Otake Plant

Management Conference

Internal Audit Department

Okayama Plant

Production Technology Division

Compliance
Committee

Risk Management Committee

Research & Development Division

Sales DivisionCorporate Administration Division

Business Support Promotion Department

Corporate Planning Department

Quality Assurance Department

Procurement & Logistics Department

Intellectual Property Group

Nomination and Compensation Advisory Committee

Audit and Supervisory Committee

Company Name: TODA KOGYO CORP.
Head Oﬃce Location: 1-23 Kyobashi-cho,
Minami-ku, Hiroshima● Year of Foundation: 1823
● Date of Incorporation: November 30, 1933
● Capital: 7,477 million yen● Number of Employees: 374 (non-consolidated),
1,303 (consolidated)●

General Meeting of Shareholders（as of June 28, 2022）

Board of Directors（as of March 31, 2022）

ISO Certiﬁcation Acquired in TODA KOGYO Group（as of January 1, 2023）

Company（business）

Location

Since

ISO
9001

ISO
14001

ISO
45001

IATF
16949

TODA KOGYO CORP.

1933ⓐOnoda Plant（manufacturing of functional pigments, dielectric materials and others）

1959

●

●

●

1984

●

●

●

○

ⓒOkayama Plant（manufacturing of inorganic pigments）

1933

●

●

ⓓOtake Creative R&D Center（research, development and marketing）

1991

●

＊

●

●

○＊

ⓑOtake Plant（manufacturing of magnet materials and functional pigments）

Japan

ConsolidatedⓔToda Plastic Magnet Material (Zhejiang) Corp.
（manufacturing and sales of ferrite magnetic compounds and others）

China

2003

●

●

ⓕToda Magnequench Magnetic Material (Tianjin) Co., Ltd.
（manufacturing and sales of rare-earth magnetic compounds and others）

China

2007

●

●

ⓖToda Advanced Materials Inc.
Canada（manufacturing and sales of lithium ion battery cathode material precursors）

2007

●

●

ⓗTokyo Shikizai Industry Co., Ltd.
（manufacturing and sales of organic pigments）

2008
●

●

Japan

Subject to equity methodⓙToda Kogyo Asia (Thailand) Co., Ltd.
Thailand（manufacturing and sales of ferrite magnetic compounds and others)(import and sales of coloring pigments）

2016ⓚJiangmen & Partners Magnetic Product Co., Ltd.
（manufacturing and sales of injection molded magnets and others）

China

2021

ⓛZhejiang Huayuan Pigment Co., Ltd.
（manufacturing and sales of inorganic pigments）

China

2003

●

●

ⓜZhejiang Toda DMEGC Magnetic Co., Ltd.
（manufacturing and sales of bonding ferrite materials）

China

2004

●

●

ⓝTODA ISU CORPORATION（manufacturing and sales of magnetic materials）

South
Korea

2008

●

●

ⓞMECHEMA TODA CORPORATION
Taiwan（manufacturing and sales of materials for lithium ion battery cathode materials and others）

2013ⓟBASF TODA Battery Materials LLC（manufacturing and sales of lithium ion battery cathode materials）

2015

●

●

Japan

●

Legend:●= Certiﬁcation acquired

●

●

●

○= Certiﬁcation pending*Design and development process

38 TODA KOGYO CSR Report 2022

Oﬃces and Plants
Japan
Consolidated

Subject to equity method- Tokyo Shikizai Industry Co., Ltd.
Iwaki PlantⓗTokyo Shikizai Industry Co., Ltd.
Head Oﬃce and Plant (Itabashi-ku, Tokyo)- Central Battery Materials Co., Ltd.

- Toda Fine Tech Inc.

ⓟBTBM, Kitakyushu Plant(Kitakyushu, Fukuoka)

Toda Kogyo Tokyo Oﬃce
(Minato-ku, Tokyo)ⓟBTBM Head Oﬃce, Onoda Plant(Sanyo-Onoda, Yamaguchi)ⓒToda Kogyo Okayama Plant(Kita-ku, Okayama)ⓐToda Kogyo Onoda Plant(Sanyo-Onoda, Yamaguchi)ⓑToda Kogyo Otake Plant(Otake, Hiroshima)ⓓToda Kogyo Creative R＆D Center(Otake, Hiroshima)

Toda Kogyo Head Oﬃce
(Minami-ku, Hiroshima)

Toda Kogyo Europe GmbH
(Dusseldorf, Germany)ⓝTODA ISU CORPORATION(Wonju, Gangwon, South Korea)*BTBM = BASF TODA Battery Materials LLC.

OverseasⓔToda Plastic Magnet Material(Zhejiang) Corp. (Zhejiang, China)ⓖToda Advanced Materials Inc.
(Sarnia, Canada)

Consolidated

Subject to equity methodⓖⓕⓜⓔⓕToda Magnequench Magnetic Material(Tianjin) Co., Ltd. (Tianjin, China)

ⓙ

ⓝ

ⓚ

ⓞ

ⓛ

ⓞMECHEMA TODA CORPORATION(Taoyuan, Taiwan)ⓙToda Kogyo Asia (Thailand) Co., Ltd.
(Ayutthaya, Thailand)ⓚJiangmen & Partners Magnetic Product Co., Ltd.
(Guangdong, China)

TODA (CHINA) Co., Ltd.
(Shanghai, China)ⓛZhejiang Huayuan Pigment Co., Ltd.
(Zhejiang, China)ⓜZhejiang Toda DMEGC Magnetic Co., Ltd.
(Zhejiang, China)

TODA KOGYO CSR Report 2022 39

The TODA KOGYO Groupsupports local sports
and arts.
©2022 S.FC

TODA KOGYO CORP.

For inquiries about this report, please contact:
CSR & Environment Management Group
Otake Plant, 1-4 Meijishingai, Otake, Hiroshima Prefecture739-0652 Japan
TEL: +81-827-57-6129

Published in January 2023