Tokai Carbon : Announcement on the Rolling Format of the Mid-Term Management Plan

May 11, 2021

News Release

Company name:	Tokai Carbon Co., Ltd.
Representative:	Hajime Nagasaka, President & CEO
(Stock Code:	5301 Section I, Tokyo Stock
	Exchange)
Contact:	Masafumi Tsuji, General Manager,
	Corporate Planning Department
Telephone:	[phone]

Announcement on the Rolling Format of the Mid-Term Management Plan

Tokai Carbon Group announced a three-yearmid-term management plan "T-2022" for the period from 2020 to 2022 on February 17, 2020. In light of changes in the business environment and our business performance, we have formulated T-2023, the new mid-term management plan for the next three years from 2021 to 2023.

1. Background of the Rolling Format

Since the T-2021 plan disclosed in February 2019, we have adopted a rolling method which we revise the contents of our Mid-Term Management Plan on an annual basis. Normally, we would have presented T-2023 in February of this year, but delayed it until this May to determine the impact of the COVID-19 pandemic, which showed no signs of slowing down at that time.

There are still unprecedented issues as living with COVID-19 and carbon neutrality. These issues are to be responded and must be addressed during T-2013 period to achieve sustained improvement in corporate value.

2. Mid-Term Management Plan T-2023 Basic Policies

1. Returning core businesses to a path of growth
2. 1. Manage to increase the operation rate as the market grows
   2. Improving and stabilizing the profitability of graphite electrodes
3. Optimizing the business portfolio (selection and concentration)
4. 1. Continually revising business composition and product composition
   2. Increasing production capacity for high value-added products
   3. Concentrating investment in promising businesses and product development
5. Strengthening the consolidated governance structure
6. 1. Responding to globalization of the head office organization
   2. Strengthening the governance structure, mainly through the business and head office management functions
   3. Building an ESG management base

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3. Quantitative Targets (Consolidated Basis)

			FY 2023 Targets	FY 2020 Results
		Net sales	¥320 billion	¥201.5 billion
		Operating income	¥57 billion	¥7.9 billion
		ROS*1	18%	4%
		EBITDA*2	¥86 billion	¥35.3 billion
*1	ROS: Return On Sales (Operating margin)
*2	EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization

(Note) The mid-term management plan is based on information available at the time of developing the plan and assumptions made on uncertain factors which may influence future performance of the company. Actual performance may vary significantly, depending on various future factors.

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