Steel Plate Related Business

Centered around Toyo Kohan Co., Ltd., the company adds value to steel using the unique technologies it has cultivated since its founding, such as rolling, surface treatment, and lamination, and its business focuses on the manufacture and sale of various steel sheet materials that are used in all aspects of daily life, including materials for cans, electrical and electronic parts, automotive and industrial machinery parts, and construction and home appliances.

Group company in Steel Plate Related Business

Performance

Sales amounted to 91.463 billion yen (up 1.6% year-on-year), and operating profit was 9.859 billion yen (up 28.1% year-on-year).

SWOT analysis

Competitive advantages and strengths

• 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.

Assignment

• Promoting a human resource strategy based on human capital management
• Contributing to solving climate change issues
• Improving productivity through the promotion of digital transformation (DX)

Risks to growth and profit generation

• Increasing quality requirements
• Difficulty in procuring resources and increased costs due to the situation in the Middle East.
• Declining demand in the domestic market due to a declining birthrate and aging population
• Economic recession and increased market competition (such as a decline in market share due to increased production capacity by competitors)
• Unstable international situation and fluctuations in financial markets

Growth and revenue generation opportunities

• Productivity improvements due to advances in AI and digitalization
• Increasing demand for environmentally friendly and resource-saving products such as EVs and hybrid vehicles
• Increased profits from overseas products due to the weak yen

Progress and Review for Fiscal Year 2025

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

① Sustainable growth of existing businesses

• Strengthening competitiveness by improving the productivity of existing businesses through capital investment.
• Optimizing business portfolio
• Promoting productivity improvement and smart factory initiatives through the use of IT and digital technologies.

② Exploring, commercializing, and monetizing new growth areas

• Capture demand for automotive secondary batteries and continue to consider capital investment
• Considering investments to create new products

③ Strengthening the management foundation that supports growth

• Promoting human capital management
• Addressing climate change through the introduction of solar power generation (such as off-site PPAs)
• Improving productivity through IT (ERP, RPA, AI)
• Measures to address aging infrastructure at the Kudamatsu plant (equipment replacement, etc.)

2. Progress of the "Capital Efficiency Initiative 2027"

• Investment in demonstration facilities for the development of negative electrode current collectors for next-generation automotive secondary batteries.

Overview of Strategies in the Medium-Term Management Plan 2030

• Establishing a supply system for battery components (nickel-plated steel sheets) for growing EV/hybrid vehicle markets.
• Maintain and improve profitability by continuing to shift to high-value-added products, primarily nickel-plated steel sheets
• Strengthening the development of negative electrode current collectors for next-generation batteries

Strategies and Key Initiatives for Fiscal Year 2026

① Business growth in growth business areas

• Capture demand for automotive secondary batteries and continue to consider capital investment
• To promote the widespread adoption of next-generation batteries, we will promote the development of negative electrode current collectors and consider additional investments to strengthen the supply chain infrastructure for battery components.

② Efficiency improvements and sustainable investment in mature business areas

• We will promote the renewal and improvement of aging equipment to increase productivity.

③ Strengthening the management foundation

• Promoting human capital management
• Enhancing the company-wide business infrastructure through improvements to the IT infrastructure environment.
• Renewal and improvement of aging facilities

• Packaging Business
• Engineering,
  Filling and Logistics Businesses
• Steel Plate Related Business

• Functional Material Related Business
• Real Estate Related Business
• Others