Toda Kogyo : CSR Report 2021

Fine Materials for the Future

CSR Report 2021

CSR Policy

TODA KOGYO Group is committed to carry out management on an ongoing basis which is based on management principle and management policy, for the purpose of continued sound development into the future. Recognizing that the fulfillment of our social responsibility is an important role as better citizens and corporate citizens, we will adhere to the laws, regulations and company rules, on the base of the spirit of compli- ance. Top managers of our Group themselves will lead by examples of these philosophy and policy, then will enforce within the company, disseminating to Group corporations and business partners. Furthermore, we will seek sound and normal relations with politics and government, while refusing to have relations with antisocial forces and groups that may threaten the order and safety of civil society.

Management Principle,

Management Policy and

Guidelines for Action

TODA KOGYO Group renewed its Management Principle, Management Policy and Guidelines for Action in fiscal 2014. Each and every executive and employee fulfills his or her respective role and works in accordance with these principles.

Contents

• CSR Policy

• Management Principle, Management Policy and Guidelines for Action

Four guidelines for CSR

For our Investors

Not only by means of accumulation and supply of results brought by high quality growth which is underpinned by creative technologies, but also by means of establishment and administration of a transparent and sound corporate governance setup and effective internal con- trols, we will endeavor to earn understandings and empathies of all our investors.

For our Customers and Business Partners

We will share values from customers' viewpoints and, using our original technologies as advantages, we will also build good partnerships with our business partners who share same ambitions. And then, we will continue to make mutually beneficial efforts for achieving our common goals.

Management Principle

The Group will further improve the fine particle synthesis technology we have developed with iron oxides and will always continue lively growth and development.

We will work on a foundation built on sincerity and trust and we will bring together our creativity and manufacturing strength to make a contribution to society in general with attractive new materials and solutions that are full of originality.

• Business Contents and History

• TODA KOGYO Group's Product Group familiar to Consumers

• Top Message

10 Business Overview and Medium-Term Business Plan

For Society

In accordance with the spirit of compliance, we will break off relations with antisocial forces, give the highest priority to considerations for safety and the global environment, and aim to build a wonderful living culture on the global level based on our cultural capital, while seeking cooperation with local communities and harmony with international societies.

For our Employees

The creativity and diversity of each and every employee are our wealth. We will support and fairly assess the limitless advancement and expression of these abilities. We will also strive to live together while enhancing the comfort and affluence of employees.

Management Policy

1. We will establish a management founda-

tion as a"Manufacturing Company"that can

contribute to society and will continue to

grow and develop even 100 years after our

foundation.

2. We will refine our only-one technologies

and continue to offer products and solutions

that have high added value.

3. We will become a company that is essen-

tial on a global level and increase the corpo-

14 Feature I

Efforts to Realize a Decarbonized Society

16 Feature II

Exhibiting at an Automobile Industry Exhibition

Editorial Policy

With the aim of promoting the sustainable development of the company and society, the Group has been working on CSR activities (environment, health and safety, health, labor and human rights, quality assur- ance, ethics, social contribution, and community dia- logue) and striving for sound business management. We began publishing our CSR Report in 2015 in order to disclose the details of these activities to our stakeholders and society in general.

We hope that this report will help our stakeholders understand the Group's CSR activities and build a better relationship of trust through dialogue.

Scope covered: TODA KOGYO CORP. and some Group companies

Period covered: April 1, 2020 to March 31, 2021

(Some of the reports include activities prior to fiscal 2019 and activities after April 2021.)

Reference guidelines: GRI: Global Reporting Initiative Ministry of the Environment, Environmental Reporting Guidelines 2018 Publication date: (English version) December 2021

About the Cover

The Group supports Paralympic Art, an initiative that encourages the social participation and economic independence of artists with disabili- ties, and supports the artists as an official partner.

Title: The Edge of the Wave

Name of artist: AngelRabbits (father and son collaboration)

As I stared with the lines my son drew, an image of the ocean, which he loves, came to mind, and I painted the lines with color, thinking of the joy my son would feel.

rate value of the Group.

4. We will seek the happiness of our employ-

ees and their families and will be a company

that is constantly trusted by our stakeholders.

Guidelines for Action

1. We will act quickly to offer products and solutions that respond to the requirements of the customers.
2. The whole company will come together as one, with manufacturing, engineering, sales and management working enthusiastically together.
3. We will be corporate citizens who are faithful and fair and will act with a strong sense of ethics.
4. We will improve our dignity as individuals and will continue to have pride, hope and dreams for the future.
   ・We will work for harmony and symbiosis with the local community and with the global environment.

1. Management

1. Product Quality

1. Environment and Safety

1. Society

1. Company Data
2. Offices and Affiliate Companies

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1975

Funairi Plant transformed into a dedicated research and development facility

Business Contents of TODA KOGYO Group

TODA KOGYO Group expands business based on nanotechnologies beginning with the wet synthesis of iron oxides. Iron oxides are inorganic compounds composed primarily of iron and oxygen. Depending on types of bonding of elements, iron oxides show differences in color, hardness, strength, magnetism and other physical or chemical properties.

The Group's wet synthetic technology is unique in that we can freely produce various kinds of materials with the functions and properties required by the application, by means of controlling properties of par- ticles. Our accumulation of nanotechnology based on wet synthetic technology represents the core competence of TODA KOGYO.

Our accumulation of specialized knowledge, technologies and know-how based on iron oxides enables us to approach customers' issues from a new viewpoint and to find solutions from the perspective of materials.

In recent years, we have developed and manufactured materials for electronic parts unique to TODA KOGYO with superior knowledge of materials, such as Barium titanium trioxide. Therefore, we can meet the advanced demands of customers in the electronic parts market. Moreover, returning to the origin of iron oxides, we will continue to focus on the development and manufacture of various kinds of catalysts, magnet materials and functional pigments.

With the entire Group working together, we will continue to provide solutions which support information, environment and energy via materials.

Please do have a look at

"TODA KOGYO CORP." introduction video of

4 minutes and 30 seconds.

Home appliances and telecommunications equipment

Paints

Automobiles

Copiers and printers

Environment and housing

・Magnet materials (household appliance motors) ・Parts for cell phones and smartphone products

• Parts for wearable products

・Pigments for automobiles and office equipment ・Pigments for building and building materials

• Pigments for antirust paints for ship bottom

・Battery materials (for electric vehicles) ・Magnet materials (motors and sensors) ・Transparent iron oxide (coating)

・Functional materials for electronic components (inductors, capacitors)

・Functional iron oxide

(brake pads, anti-vibration, vibration control)

・Toner materials, carriers

・Magnet materials (magnet roll)

・Lead free materials (PVC, roads) ・Combustion catalysts

• Contaminated soil improver

History of TODA KOGYO Group

1907	1933
Plant relocated to	TODA KOGYO CORP.
Asakita-ku,	established in
Hiroshima City	Yokogawa-Shinmachi in
(Hiroshima Plant)	Nishi-ku, Hiroshima City
	1936
	Head Office and
	plant relocated to
	Funairi-Minami in
	Naka-ku,
	Hiroshima City

1953

Tokyo Sales Office and Osaka Sales Office established

1953

In the process of manufacturing iron oxides by calcination of iron sulfate, sulfurous acid gas was generated and became a serious problem

1959

Onoda Plant built in Sanyo-Onoda City, Yamaguchi Prefecture

1965

Overcoming the pollution problems using the development of the wet synthetic method in which iron oxides are synthesized from aqueous solution by a chemical reaction

1983

Shares listed on the first section of Tokyo Stock Exchange

1984

Otake Plant newly established

in Otake City, Hiroshima Prefecture

1991

Otake Creative R&D Center established in Otake Plant

1994

Toda Kogyo Europe GmbH established in Germany

2003

Wholly owned subsidiary Toda Plastic Magnet Material (Zhejiang) Corp. established in Zhejiang Province, China

2004

Zhejiang Toda DMEGC Magnetic Co., Ltd. established in Zhejiang Province, China

2006

TODA Ferrite KOREA Co., LTD. established in South Korea

2007

Toda Magnequench Magnetic Material (Tianjin) Co., Ltd. established in Tianjin, China

Toda Advanced Materials Inc. established in Canada

2008

All shares of Tokyo Shikizai Industry Co., Ltd. acquired TODA ISU CORPORATION established in South Korea

2011

Toda United Industrial (Zhejiang) Co., Ltd. in Zheji- ang Province, China became a consolidated subsidiary of TODA KOGYO

2012

TODA MAGNET (SHENZHEN) Co., Ltd. established in Guangdong Province, China

2015

BASF TODA Battery Materials LLC established

2016

Toda Kogyo Asia (Thailand) Co., Ltd. established in Thailand

All shares of Toda Fine Tech Inc. acquired

2021

Jiangmen & Partner's Magnetic Product Co., Ltd in Guangdong Province, China became a subsidiary of

TODA KOGYO

Founded	1910	1920	1930	1940
in 1823

1823	Beginning from the
industrial manufacture
Bengala manufacturing
of Bengala, the oldest
started in Ibara City,
pigment known to mankind
Okayama Prefecture

Coating material for building timber Primer for dark blue dyeing Coloring for lacquerware

and bangasa (coarse oilpaper umbrellas) Ceramics (akae glaze), etc.

1950	1960	1970
1953		1969		1973
Joint research started with		Manufacturing equipment	Equipment for production
Kyoto University		of magnetic powder	of coloring pigment using
Bengala manufacturing is		materials for audiotapes	wet synthetic method
transformed from a traditional	and videotapes added to	added to Onoda Plant
"skill"to a"technology"		Onoda Plant
Production plant of ferrite		World's Number 1 share for
materials newly added to Hiroshima Plant	magnetic powder used in
		audiotapes and videotapes!

	Use of iron sulfate and iron chloride, which are
	derived as byproducts from iron and steel product
	manufacturing processes, as raw materials
Ferrite powder		Contributing to reduction of
		industrial wastes and effective
		utilization of resources
		The industry's first!
		Development of the wet
Pellets		synthetic method for iron oxides

1980		1990
	1988	1989
	Dedicated facility to	Manufacturing facility of magnetic powders
	produce coloring	for metal tape added to Onoda Plant
	materials for electronic	Computer
	printing added to
Toner materials	Onoda Plant	digital recording tapes
Application of the
				wet synthesis
				method to materials
				other than iron
			1994
1984			Development of a combustion
Production of ferrite materials started	catalyst which suppresses
at Otake Plant			generation of dioxins

Magnets Magnetic tickets and magnetic cards	Examples of use of a
	dioxin-suppressing catalyst
	(garbage bags, cushioning material)

2000

1999

Facilities for manufacturing Hydrotalcite newly added to Onoda Plant

Hydrotalcite

1996

Facilities for manufacturing color toner carrier materials newly added to Otake Plant

Color toner carrier

		2010	2020
2003	2004
Manufacturing facility of
cathode materials for lithium	Facilities for manufacturing Barium titanium trioxide
ion rechargeable battery	added to Onoda Plant
newly added to Onoda Plant
			Example of use of barium
			titanium trioxide
2006		2011
	Manufacturing equipment of NFC
Manufacturing equipment of antenna	Ferrite sheets for use in smartphones added
sheets for IC tags added to Otake Plant	to Otake Plant

Metal-compatible RFID tags

Ferrite sheet

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TODA KOGYO Group's Product Group familiar to Consumers

Chemical products are used in various forms as a part of our everyday lives.

TODA KOGYO Group's materials contribute to downsizing, weight reduction and increasing the performance of automobiles, consumer electronics, information equipment, etc. Under the slogan of"Fine Materials for the Future", we will continue to create new values utilizing the most advanced material technologies.

	Inductors
Ferrite sheet for wireless charging	Capacitors
	Films for touch panels
Magnetic toner and carriers

Motors for air conditioners

Combustion catalysts

Industrial catalysts

Refrigerator door gaskets

Motors for washing machine

Lipstick

Magnetic tickets

Fan motors

Rust preventives for a steel frame

Colored pavement

Paints for automobiles

Bengala lattice

Lithium ion rechargeable battery

Films for a plastic greenhouse

Brake

Motors

Electronic circuit components

The line in the center of the road	Ship bottom paints (rust preventives)

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Top Message

Director and Executive Officer Message

Thank you very much for your continued support of TODA KOGYO Group. We hereby report on our most recent Group CSR activities with this report.

In the past few years, natural disasters such as heavy rains have become more frequent world- wide, and we have come to realize that climate change and environmental destruction are advancing more and more. We, as the Group, are determined to address environmental and social issues through our CSR activities, and at the same time, we are determined to further promote the building of a sustainable society through our business activities.

In addition to environmental issues, there are many other social issues that need to be ad- dressed, such as the declining birthrate and aging population, promotion of diversity, and strengthening of governance. We have formulated a medium-term business plan, Vision 2023, in order to promote efforts to address these social issues at each of the Group's operating companies and organizations in line with clear numerical targets.

The markets targeted in Vision 2023 are mainly in the fields of automobiles, home appliances, communication equipment, and paints, which are an extension of our business activities to date. In addition to adding more value to our products through development activities, we will strengthen our supply chain in order to build a strong structure that can withstand changes in

The environmental issues facing Japan are increasing day by day, and it has become essential to focus on the environment from various perspectives in our daily business activities, such as global warming, ocean pollution, and explosive population growth. Among these issues, the issue of CO2 has been taken up by countries around the world as an issue that has a direct impact on business activities and is inseparable from them. The EU and other countries are already in the process of implementing LCA (Life Cycle Assessment) regulations as part of their trade regulations, and it can be predicted that this will have a significant and direct impact on corporate activi- ties. Under such circumstances, we have been one of the first companies to start developing environmental materials in the past, and we already have several products that have been materialized, but we would like to further develop products and manufacturing methods that are carbon neutral and increase our contribution.

Director and Senior Executive Officer

Hiroshi Oka

the external environment.

In addition, from fiscal 2024 onward, we plan to commercialize environment-related materials that will help reduce the burden on the environment, as part of our Go Beyond 200! strategy to continue to grow even beyond our 200-year anniversary. We are determined to work together as a group to grow our business into one that rivals that of the automotive, home appliance, and communication equipment industries.

I would like to ask for your continued understanding and support as we strive to grow together with all of our stakeholders.

Director and Senior Executive Officer

Tetsuo Tsurui

The Group is working to reduce greenhouse gas emissions, conserve and improve the global environment through soil and water purification, and develop activities to achieve the SDGs.

In May 2019, we formulated the TODA KOGYO Group Environmental Vision 2033, setting specific goals and working to achieve them. Going forward, we will further accelerate the development and manufacture of environmentally friendly products to contribute to energy conservation, downsizing, weight reduction, and higher efficiency in a wide range of business fields, including automobiles, home appliances, and information equipment.

We will also position ESG management as a medium- to long-term management strategy and focus on it on an ongoing basis, disclose the results of our ESG management activities as appropriate, and engage in corporate activities that will win the sympathy and trust of our many stakeholders. We would like to ask for your continued support and guidance in these endeavors.

President and CEO

Shigeru Takaragi

In order to realize our management principle of contributing to society at large through attractive and original new materials and solu- tions, we will not only engage in social contribution activities through CSR activities, but will also aim to capture and provide as many business opportunities as possible where we can utilize our strengths in connection with the SDGs by responding quickly to changes in the social environment in the present and future.

Furthermore, in an environment where efforts to become carbon neutral are becoming extremely important, we will work together in development and manufacturing to see if we can contribute to society not only by reducing greenhouse gas emissions in manufacturing, but also by absorbing and removing them.

Director and Senior Executive Officer

Tsuneaki Kubo

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