Functional Material Related Business

Group companies Earnings SWOT analysis Progress and Review In the Medium-Term Management Plan 2030
Strategy Overview Strategy and Key Initiatives

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 amounted to 57.785 billion yen (an 11.4% increase compared to the previous period), and operating profit was 6.831 billion yen (a 12.0% increase compared to the previous period).

SWOT analysis

Competitive advantages and strengths

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

Appropriate responses based on domestic and international demand fluctuations, expansion of business areas including overseas expansion, and development of new fields.
Securing talent and fostering an organizational culture that supports people who take on challenges

TOMATEC

In light of the shrinking domestic market and intensifying competition, we are responding to increased production and sales expansion of high-profit margin products in growth markets (overseas fertilizer market, special functional materials market, and emerging markets for existing products).
Optimizing production bases, promoting automation and labor-saving measures
Establish a profit structure that is not affected by fluctuations in raw material prices

Risks to growth and profit generation

Toyo Kohan

Increased quality requirements for existing products and technologies
Difficulty in procuring resources and rising costs
Increased competition due to changes in economic trends and increased production capacity of competitors.
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

Growth and revenue generation opportunities

Toyo Kohan

Rising demand for magnetic disk aluminum substrates driven by the evolution of AI and advances in digitalization, as well as for HDD products for data centers.
Expanding demand for optical functional films driven by larger LCD panels
Increased profits from overseas products due to the weak yen

TOMATEC

Increasing global demand for infrastructure maintenance
The growing global awareness of food security is driving the expansion of fertilizer demand.
Increased demand for liquid fertilizer due to the shift to plant factories and greenhouse horticulture
In light of the slowdown and withdrawal of activity by Western competitors in the Chinese market, we aim to secure stable supply and price advantages by leveraging our Chinese base.

Progress and Review for Fiscal Year 2025

1. Results of the "Medium-Term Management Plan 2025"

① Sustainable growth of existing businesses

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

Strengthening a stable supply system through optimization of production bases

② Exploring, commercializing, and monetizing new growth areas

Toyo Kohan

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

TOMATEC

Building a stable production and sales system through collaboration

③ Strengthening the management foundation that supports growth

Toyo Kohan

Promoting human capital management
Addressing climate change issues through the introduction of solar power generation (off-site PPA), etc.
Promoting productivity improvement and smart factory initiatives through the use of IT and digital technologies.

TOMATEC

Strengthening the stable supply system and improving profitability through optimization of production bases.

2. Progress of the "Capital Efficiency Initiative 2027"

Toyo Kohan

Improved operating rates due to market recovery for magnetic disk aluminum substrates
Strengthening Response to Increasing Demand for Wide-Width Products in optical functional films

TOMATEC

Improving quality and technical capabilities through review and optimization of manufacturing processes, and responding flexibly to customer needs.
Development of next-generation products and expansion into new markets.
Strengthening human capital through talent development, organizational restructuring, and work style reforms.

Overview of Strategies in the Medium-Term Management Plan 2030

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.
In the acrylic film market, which is expected to expand mainly in China due to larger LCD panels, we will secure a competitive advantage in optical functional films quality and cost, responding to the growing demand for wide-width products.

TOMATEC

Improving quality and technical capabilities through reviewing and optimizing manufacturing processes, and providing flexible responses to customer needs.
Development of next-generation products and expansion into new markets.
Strengthening human capital through talent development, organizational restructuring, and work style reforms.

Strategies and Key Initiatives for Fiscal Year 2026

① Business growth in growth business areas

Toyo Kohan

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

TOMATEC

Expanding business areas through collaboration and investment
Development and business expansion of glass frit for the electronic materials field, and development of next-generation products for secondary battery materials used in home energy storage systems, etc.
Strengthening production capacity and expanding sales of high-profit products, including glass frit, in overseas markets.

② Efficiency improvements and sustainable investment in mature 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

Expanding business areas through collaboration and investment

③ Strengthening the management foundation

Toyo Kohan

Promoting human capital management
Addressing climate change issues through the introduction of solar power generation (off-site PPA), etc.
Enhancing the company-wide business infrastructure through improvements to the IT infrastructure environment.

TOMATEC

Strengthening human capital through talent development, organizational restructuring, and work style reforms.
Promoting DX to accelerate and improve management decision-making.