Basic Management Policy

We hold to the ideals of “customer orientation,” “efficient management,” and “social contribution” as our corporate philosophy.
That is, we work hard to gain the trust of our customers by engaging in business practices that are always focused on our customers.
In addition, we not only strive to provide our customers with products that have the very best quality, but we also reduce costs to secure a fair return. We are dedicated to supporting highly efficient business operations that achieve a balance between quality and profit.
Furthermore, we work hard to form a niche in society by making contributions through our business activities to society.
Based on the corporate philosophy noted above and our current status as a company, we engage in business practices which embrace “innovation,” “trust” and “promptness” as our guiding principles.

Target Management Indicators

The Titan Kogyo Group established its Sixth Mid-Term Management Plan (FY2021–2023) with the short-term goal of reforming its cost structure to generate profit even in times of slow sales recovery. We also aim to build a strong corporate structure in these three years which does not waver in times of emergency. We are taking on management activities with this plan’s numerical targets of a 9% return on sales(ROS) and an 8% return on equity(ROE) for FY2023 as our management indicators.

Mid- to Long-Term Corporate Management Strategies and Issues to be Addressed

As the Titan Kogyo Group moves forward in dealing swiftly with pressing issues arising from the COVID-19 pandemic, we have considered what kind of company we hope to be in ten years and established the Sixth Mid-Term Management Plan, backcasting what we would like to achieve in these three years.

An outline of the Sixth Mid-Term Management Plan is as follows:

Basic Policy

Higher profitability and the implementation of our growth strategy, stronger risk tolerance, and contribution to the environment and society define our basic policy. With this, we will strive to move forward with our endeavor to improve profitability with cost reductions as well as the realization of our growth strategy and streamlining of our management resources while heightening our risk tolerance and reinforcing our management base. And through the pursuit of creating a sustainable future in which our company can prosper together with society, we aim for early recovery of earnings which have taken hits and to improve our corporate value.

Business Strategy

Our business strategy entails increasing our sales through more of a presence in overseas cosmetics markets, expansion into new uses, and the like due to greater ultrafine particulate titanium oxide production. We will improve profitability to strengthen our grounding and risk tolerance.
In regard to cost reductions, for FY2021, the first year of the plan, we lowered our expenditures and moved forward full force in reducing fixed costs, and for FY2023, the third year of the plan, we will grow the productivity of each employee to over 1.5 times the current amount.
And we will place an emphasis on bringing together a rewarding work experience and our own growth as we create an enlivened company.

ESG Management

Titan Kogyo is looking ten years into the future as it promotes ESG management with the SDGs in mind to contribute to the creation of a sustainable society. We will move forward in mitigating environmental load through such acts as energy conservation, waste reduction, and prevention of marine pollution.
When it comes to governance, we will handle various issues such as the demonstration of our board of directors’ functionality, ensuring diversity among core human resources within the company, and efforts surrounding sustainability issues. We will strive for a higher level of governance required by a listed company entering prime, new market segments of the Tokyo Stock Exchange.

Dividend Policy

Acquired funds are steadily saved for future investments and to ensure risk tolerance while also being used as repayment for borrowings. They are also used as appropriate return to shareholders with consideration to the fortification of our financial strength.
Our shareholder return policy entails gradually increasing dividends in accordance with profit growth over three years for stable dividend distribution.

Applying to Select Standard Market from Prime Market

In April 2022, the Tokyo Stock Exchange (hereinafter “TSE”) restructured its markets segments, and during this, our company Titan Kogyo transitioned to the Prime Market. Nevertheless, among the criteria for maintaining listing on the Prime Market, we were failing to meet the criteria for market capitalization of tradable shares and average daily trading value. As such, we submitted a plan for meeting the criteria for maintaining listing to TSE, and we aimed to satisfy the two listing maintenance criteria by increasing our stock price. Nonetheless, we are currently in a situation in which there is a significant gap between our stock price, and the stock price of 4,800 yen that is needed for fulfilling the listing maintenance criteria.
Furthermore, we formulated our Sixth Mid-Term Management Plan with transitioning to the Prime Market in mind, and in FY2022, the second year of this plan, we fell short of our planned levels for sales, operating profit, and ROS. This is due to the impact of factors such as an economic slowdown resulting from global monetary tightening, a prolonging of the Ukraine situation, and a sudden rise in the prices of raw materials and fuel caused by a depreciation of the yen. Moreover, we are anticipating that in FY2023, the third year of the plan, there will continue to be a harsh business environment and we will once again fall short of our planned performance levels.
As a result of comprehensively considering factors such as the surrounding business environment and TSE’s end date for the application for transitional measures, our company has determined that it would be appropriate to apply to select the Standard Market from the Prime Market. Even after our applying to select the Standard Market, we will not revise the content of our Sixth Mid-Term Management Plan, and will continue aiming to achieve increases in our corporate value and shareholder value.

Numerical targets (consolidated)

Descriptions pertaining to the future, such as earnings estimates, have been created based on information available as the end of the current consolidated fiscal year. Actual earnings may differ from estimates due to a variety of factors.