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Functional Material Related Business

Toyo Kohan Co., Ltd. Ltd. applies the advanced surface treatment and other technologies it has cultivated through its Steel Plate Related Business to other materials, providing magnetic disk aluminum substrates and optical functional films, as well as glazes, pigments, gel coats, and Fertilizer for enamel products developed by TOMATEC Co., Ltd.. These high-quality, highly functional materials are used in a variety of fields.

Group companies in Functional Material Related Business

  • Toyo Kohan Co., Ltd.

    Manufacture and sale of tinplate, thin sheets, various surface-treated steel sheets, and various functional materials

  • KOHAN KOGYO CO., LTD.

    Manufacture and sale of steel strips, bundling machines and other machinery and equipment, hard alloys, etc., and manufacture of magnetic disk aluminum substrates

  • TOMATEC Co., Ltd.

    Manufacture and sale of glass frit products, inorganic composite oxide pigments, gel coats, Fertilizer etc.

  • ISHIKAWA INK CO., LTD. *

    Processing of synthetic resins and sales of FRP materials

  • TOMATEC (Shanghai) Fine Materials Co., Ltd.

    Manufacture and sale of inorganic pigments (composite oxide pigments), sale of frit products

  • TOMATEC（Xiamen）Fine Material Co., Ltd.

    Manufacture and sale of frit products

  • TOYO-MEMORY TECHNOLOGY SDN.BHD.

    Manufacture and sale of magnetic disk aluminum substrates

  • PT. TOMATEC INDONESIA

    Manufacture and sale of frits and pigments

  • TOMATEC America, Inc.

    Import and sales of inorganic composite oxide pigments and glass frit products

*Non-consolidated subsidiary

Performance

Sales were 51,866 million yen (up 32.1% from the previous year), and operating income was 6,097 million yen (operating income of 28 million yen in the previous year).

SWOT analysis

Competitive Advantage

Toyo Kohan

  • We have a history of applying our highly specialized technologies, such as material processing, rolling, and surface treatment, which we have accumulated over many years, and our proprietary technologies to a wide range of uses and other businesses through our ingenuity.

TOMATEC

  • Supply capabilities for Asian, European and American markets through collaboration between domestic and overseas manufacturing bases, production technology and brands cultivated over many years, and a stable customer base

Assignment

Toyo Kohan

  • Responding appropriately to fluctuations in demand to maintain and develop existing businesses
  • Expanding business areas, including overseas expansion, and developing new fields
  • Securing talent and fostering an organizational culture that supports people who take on challenges

TOMATEC

  • Increase production and sales of high-profit products in growth markets (overseas fertilizer market, special functional materials market, existing product emerging markets)
  • Optimizing production bases, promoting automation and labor-saving measures
  • Establish a profit structure that is not affected by fluctuations in raw material prices

Risk

Toyo Kohan

  • Increased quality requirements for existing products and technologies
  • Difficulty in procuring resources and rising costs
  • Economic downturn and intensifying market competition (declining market share due to increased production capacity of competitors, etc.)
  • Unstable international situations and fluctuations in financial markets

TOMATEC

  • Decline in domestic housing starts and cultivated area
  • Increased costs of countermeasures due to environmental regulations in each country
  • Fluctuations in raw material and energy prices
  • Intensifying market competition due to overseas competitors' improved quality and lower prices

Opportunity

Toyo Kohan

  • Expanding demand for data center products due to advances in AI and digitalization
  • Increased profits from overseas products due to the weak yen

TOMATEC

  • Increasing global demand for infrastructure maintenance
  • Increased demand for liquid fertilizer due to the shift to plant factories and greenhouse horticulture
  • Slowdown and withdrawal of Western competitors in the Chinese market

Strategies for sustainable growth

  • Optimizing and expanding business in line with market conditions
  • Pursuing innovation and improving profitability

Toyo Kohan

  • In the data industry, which is expected to grow over the long term, we will improve our presence in terms of supply capacity, quality, and cost magnetic disk aluminum substrates, and reduce the risk of demand fluctuations by promoting an all-round strategy.
  • Secure a competitive advantage in terms of quality and cost for optical functional films in the acrylic film market, which is expected to expand mainly in China due to the increasing size of LCD panels

TOMATEC

  • Reallocation of management resources, including restructuring of production bases
  • Secure profits by reviewing sales, development, and service strategies in domestic business
  • Expand sales to overseas markets and new markets
  • Next-generation product development

Progress and review of measures for sustainable growth in fiscal 2024

1. Sustainable growth in existing business areas

Toyo Kohan

  • Increased utilization rate of magnetic disk aluminum substrates
  • Strengthen relationships with existing customers and secure revenue through orders from new customers for optical functional films

TOMATEC

  • Improve profitability by reducing raw material costs domestically and streamlining production and personnel
  • Promoting sales expansion at fair prices in overseas markets and expanding sales channels to new markets

2. Towards exploring, commercializing, and monetizing new growth areas

Toyo Kohan

  • Development of next-generation thin magnetic disk aluminum substrates
  • Development of high-value-added optical functional films

TOMATEC

  • Accelerate profitability by strengthening efforts in the fields of fertilizer, specialty materials, and infrastructure maintenance

3. Strengthening the foundations for growth

Toyo Kohan

  • Promoting human capital management
  • Addressing climate change issues through the introduction of solar power generation (off-site PPA, etc.)

TOMATEC

  • Reconstruction of domestic infrastructure and review of personnel allocation

4. Towards improving capital return

Toyo Kohan

  • Improved operating rates due to market recovery for magnetic disk aluminum substrates
  • Responding to increasing demand for wide-format optical functional films

TOMATEC

  • Maintaining profit margins at overseas subsidiaries

Strategies and key measures for fiscal 2025

Toyo Kohan

  • Establishment of production system in response to market recovery for magnetic disk aluminum substrates
  • Acquiring new customers in the Chinese market for optical functional films

TOMATEC

  • Normalize profits by appropriately passing on fluctuations in domestic raw material prices to sales prices, and develop new application markets for glass frit
  • Increase profits by increasing production and expanding sales of highly profitable products such as glass frit in overseas markets