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Medium-term Management Plan

On May 15, 2024, The TODA KOGYO Group formulated a medium-term management plan, Vision2026, covering the period from the fiscal year ending March 31, 2025 (fiscal 2024) to the fiscal year ending March 31, 2027 (fiscal 2026) to achieve our Vision for the fiscal year ending March 31, 2031 (fiscal 2030) as defined by our materiality.

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About Medium-term Management Plan "Vision2026"

We established our purpose in 2023 and identified our materialities. In the materialities, we set our goals looking ahead to our Vision.
For a medium-term management plan, Vision2023, covering the period from the fiscal year ending March 31, 2022 (fiscal 2021) to the fiscal year ending March 31, 2024 (fiscal 2023), we've been working on business growth and structural transformation. However, we need to increase more corporate value of our Group.
Thus, during "Vision2026," we will strengthen our business portfolio management to increase the corporate value.

Our Vision
The TODA KOGYO Group defines sustainability as "the lively growth and development of the company, society and the earth." We formulate a medium-term management plan based on the sustainability and aim to achieve our Vision for fiscal 2030.
Review of Medium-term Business Plan "Vision2023"

As we approached our 200th anniversary in fiscal 2023, the final year of our "Vision 2023," we have established our purpose: "We transform the potential of fine particles into new possibilities for our world." In addition, based on our purpose and Management Principle, we have formulated materialities, which clearly indicate our business initiative actions from the viewpoint of ESG and key indicators therefor.
In terms of business activities, we positioned our electronic materials segment as a growth business and our functional pigments segment as a revenue base so as to improve our corporate value. In fiscal 2021, the first year of the plan, demand recovered on the back of a recovery in the global economy, and results far exceeded our plans. Sales of high-quality electronic materials in particular were strong. We also acquired a magnet molding manufacturer "Jiangmen & Partner's Magnetic Product Co., Ltd" (China) as our subsidiary, and expanded our business through downstream development. However, from fiscal 2022 onwards, the plan fell short of our target due to factors such as sluggish demand and rising prices for raw materials and energy and transportation costs. In particular, a transfer of consolidated subsidiary "Toda United Industrial (Zhejiang) Co., Ltd." (China), which manufactures iron oxide pigments, was carried out based on the judgment that it would contribute to increasing the future corporate value of our group. However, in fiscal 2023, it became a major factor in reducing the profitability of the functional pigments segment.
For these reasons, the electronic materials segment during the period was in the black but showed weak growth, while the functional pigments segment was in the red and failed to secure stable profits.

Concept of Medium-term Management Plan "Vision2026"

During "Vision2026," we will strengthen our business portfolio management to increase the corporate value. We will promote 3 strategies to accelerate selection and concentration aimed at achieving the vision.

(1) Business Strategies

In the electronic materials segment, we will continue to expand the business through the following strategies.

  • Development of highly reliable materials and downstream expansion
  • Further growth of business strengthened through past M&A

In the functional pigments segment, we will transform our business structure through the following strategies.

  • Business streamlining and profitable business continuity
  • Speedy commercialization of next-generation businesses through industry-academia-government collaboration
(2) Financial Strategies

We have set operating profit margin, ROE, equity ratio and working capital turnover period as management targets and will strive to operate our business with an awareness of a stable financial base and capital efficiency.

(3) Human Capital Strategies

As part of our human capital development efforts to support a company built upon technology, we will strengthen succession plans for key divisions, develop the careers of women and minorities, and foster human capital that will accelerate the promotion of digital transformation. Through these human capital development efforts, we aim to realize a diverse and creative workplace and maximize our human capital.

Mission: "Strengthen Our Business Portfolio Management" ~Business growth through accelerate selection and concentration~
"Vision2026" Business Plan

We will strengthen our business portfolio management to realize our Vision for fiscal 2030.