Tokai Carbon : Announcement on the Rolling Format of the Mid-Term Management Plan
May 12, 2021 at 10:40 am
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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:
+81-3-3746-5228
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
Returning core businesses to a path of growth
Manage to increase the operation rate as the market grows
Improving and stabilizing the profitability of graphite electrodes
Optimizing the business portfolio (selection and concentration)
Continually revising business composition and product composition
Increasing production capacity for high value-added products
Concentrating investment in promising businesses and product development
Strengthening the consolidated governance structure
Responding to globalization of the head office organization
Strengthening the governance structure, mainly through the business and head office management functions
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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Tokai Carbon Co. Ltd. published this content on 11 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 09:39:04 UTC.
Tokai Carbon Co., Ltd. is one of the Japanese leaders in manufacturing and marketing of coal and graphite products. The group is also producing industrial furnaces. Net sales break down by family of products as follows:
- coal and graphite products (69.6%): coal, graphite electrodes, special graphite and friction materials primarily for industrial, electronic, energy, automotive and mechanic applications;
- cathodes for smelting aluminum and furnace linings (18.1%);
- industrial furnaces and heating products (6.9%): for thermal processing of ceramic products, electronic components, metals, glasses, etc.;
- other (5.4%).
Net sales break down geographically as follows: Japan (24.6%), Asia (26.7%), the United States (26.5%), Europe (11.6%) and other (10.6%).