Tokuyama : Report 2021 (Integrated Report)

TOKUYAMA

REPORT

2O21

Fiscal year ended March 31, 2021

Tokuyama's New Vision

Mission

To create a bright future in harmony

with the environment,

in collaboration with its customers,

based on chemistry

Vision

Be a value-creative company that places

first priority on R&D and marketing

●

Be a company that never stops challenging new domains while refining and exploiting its unique strengths

●

Be a company with healthy employees who have healthy families and take pride in their work at their company

●

Be a company that fosters bonds with people in communities and societies worldwide

Updated Vision

Tokuyama has recently updated its Mission and Vision in light of its rapidly-changing operating environment, based on a reassessment of the essential value it can provide to stakeholders.

In accord with its New Vision, which encompasses its Values in addition to its Mission and Vision, Tokuyama will create new value in harmony with the environment by supplying products that address societal problems while minimizing the environmental burden imposed by its business activities.

Values

• Commitment to customer satisfaction as a profit source
• A broader, loftier perspective
• Employees who consistently surpass their predecessors
• Integrity, perseverance, a playful spirit and boldness

TOKUYAMA

REPORT

2O21

Contents

Tokuyama's New Vision …………………………	1
Tokuyama: Making a Contribution ……………	2
Tokuyama at a Glance………………………………	4
Tokuyama Value Creation ………………………	6

Commitment from the Top……………………… 10

Financial and Nonfinancial Highlights ………	16
Growth Strategy ……………………………………	20
Growth Strategy Evolution ………………………	21

Medium-Term Management Plan 2025 ……… 22

Strategy 1: Transform Business Portfolio…… 24

Strategy by Business ………………………………	27
Strategy 2: Contribute to Mitigation of
Global Warming ……………………………………	32
Strategy 3: Promote Socially Responsible
Management …………………………………………	36

Roundtable Discussion:

Sustainable Growth and Our Mission………… 40

Corporate Governance …………………………… 44

Management Team ………………………………… 49

Business Sites and Group Companies …………	50
Stock Information …………………………………	52
Corporate Data & Editorial Policy ………………	53

About This Report

This report is published as an integrated report that combines the annual report and CSR report that were published until FY2020.

Cautionary Note on Forward-Looking Statements

This report contains forward-looking statements on the Company's plans, strategies, operating performance and other matters.These forward-looking statements are the Company's judgments based on information available at the time of this report's preparation. They are subject to various risks and uncertainties. The Company's actual activities and/or operating performance may differ materially from these forward-looking statements as a result of various factors, including but not limited to changes in economic conditions, the operating environment, demand trends or exchange rates.

Disclaimer

This report is intended to be informational. It is not intended as a solicitation. The Company assumes no liability for any losses due to investment decisions made entirely in reliance on forward-looking statements, numerical targets or other information contained herein.

TOKUYAMA REPORT 2021

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Tokuyama: Making a Contribution

Tokuyama is distinguished by the breadth of its contributions to society through products that run the gamut from basic raw materials to end products and support industry and daily life.

By supplying such products, it creates economic and societal value and contributes to the attainment of the Sustainable Development Goals (SDGs).

ECONOMY

SOCIETY

BIOSPHERE

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ECONOMY

Contributions to Economic Growth

Tokuyama helps to improve electronic hardware performance and energy efficiency by supplying a wide range of high-quality products, including advanced materials and high-purity chemicals. With its sights set on a bright future for humanity, Tokuyama contributes to economic growth by facilitating technological innovation in a digital society.

Aluminum nitride

Possesses superior heat dissipation properties conducive to development of smaller, higher-performance ICT hardware

High-purity chemicals for electronics manufacturing

Conducive to miniaturization of semiconductor devices

Semiconductor-grade polycrystalline silicon

Contributes to higher performance as primary raw material in semiconductor wafers

Waste gypsum board recycling

Recycling waste gypsum board

SOCIETY

Contributions to Societal Infrastructure

Japan faces a host of societal challenges, including a low birth rate, an aging population, and aging public infrastructure. To address such pressing challenges, Tokuyama offers diverse products that support both people's health and public infrastructure maintenance.

BIOSPHERE

Plastic lens-related materials

Photochromic dye materials with UV-blocking properties reduce glare and light transmissivity

Dental materials and equipment

Dental materials/equipment such as cosmetic restoration materials contribute to advancement of dentistry

Medical diagnostic systems

Diagnostic reagents and lab test systems that contribute to people's health by supporting healthcare

Cement

Contributes to mass recycling of waste; used to build infrastructure that supports daily life

Sodium hypochlorite

Used as household bleaching agent and water supply disinfectant for its strong biocidal action

PVC resin

Widely used in everything from lifeline infrastructure like water and sewage systems and power grids to staple goods and medical materials/equipment

Contributions to the Natural Environment

Placing priority on mitigating climate change and otherwise preserving the environment, Tokuyama is developing waste recycling processes that utilize ion exchange membranes and proprietary technologies. Tokuyama strikes a healthy balance between commercial viability on the one hand, and its contributions to a sustainable society and preservation of a biodiverse natural environment on the other.

Ion exchange membranes

Used to produce table salt from seawater, recover specific valuable substances from effluent, and reduce volume of industrial wastewater

Plastic window sashes

Contribute to supply of energy-efficient housing through better insulation and airtightness

Caustic soda

Contributes to safe water supplies and protects atmosphere and hydrological cycle through wastewater treatment and neutralization

REPORT 2021

Industrial waste recycling

Contributes to formation of a closed-loop society through recycling of waste as cement feedstock

TOKUYAMA

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