Management Policy

Steadily Implement the Medium-Term Management Plan to Enhance Corporate Value

Toho Acetylene was established in 1955 to manufacture and sell essential dissolved acetylene gas for core industries. Since then, we have remained committed to “monozukuri” (Japanese term for manufacturing), the beginning of a manufacturer supplying the gases society needs, contributing to people’s better lives and enriched living. In the face of various societal challenges, companies are increasingly expected to embrace sustainability. Our management philosophy of “creating economic value through industrial gases and related technologies and equipment while contributing to society” aligns with our goal to grow by resolving societal issues.

To date, we have achieved specific results by relentlessly reducing costs, expanding the sales of high-value-added areas such as gases for food applications, and timely reflecting the rise in raw material and fuel prices in our product pricing. However, facing challenges such as geopolitical resource energy price hikes and inflation due to shortages of goods and labor, we acknowledge the ongoing challenging business environment. We recognize the need for further efforts in this demanding business environment to achieve sustainable growth toward our desired future state.
To achieve our medium-term management plan, we must promote dual-strategy management by enhancing the competitiveness of existing businesses and actively investing in growth areas. It is crucial to steadily implement various business infrastructure enhancement measures and actively work towards increasing the group’s corporate value. So far, we have already taken strategic investments, such as upgrading and maintaining high-pressure gas filling plants, strengthening the functions of our Tokyo and Osaka branches to expand our food additive gas business（Espuma）, and investing in T2, A Company that is developing autonomous driving technology for long-distance trucks. We also consider M&A and other suitable opportunities as they arise. Looking ahead for sustained growth, investments in expansion are inevitable.

Focusing on ESG as the Foundation of Our Business

We recognize that ESG (Environmental, Social, and Governance) perspectives are essential for a company to increase its value sustainably.
Regarding the environment, we are advancing initiatives related to safety and quality in the manufacturing industry through responsible care activities. Continuously addressing pollution control and waste reduction, we prioritize proactive climate change response, focusing on the planned lessening of CO₂ emissions from our business activities. As an industrial gas manufacturer aiming for a global “carbon-neutral society,” we collaborate with diverse expertise and technologies to accelerate efforts in providing environmentally contributing products and technologies.
Concerning society, we value human resources as the most significant management resource supporting the sustained growth of our company. Within our group, we are enhancing workplace environments where all employees can fully utilize their capabilities, maintaining high motivation for change. Additionally, with a long-term perspective, we are actively engaged in workstyle reforms that use diverse talents to improve work-life balance and productivity.
In terms of governance, to enhance the effectiveness and diversity of the board of directors, we have established a structure where 4 out of 7 directors, including our first female director, are outside directors. All four audit committee members are outside auditors, with two serving as full-time auditors, strengthening the supervision of directorial duties. Furthermore, ensuring legal compliance is a given, and we aim to elevate compliance awareness. Regarding internal controls, we focus on thoroughly implementing and strengthening system operations.

Looking Ahead to Future Growth with our Stakeholders

For our group to continue growing sustainably, it is crucial to look towards the future and move forward with all our stakeholders, including shareholders and investors. Among these, returning benefits to our shareholders is a top priority, and we plan to continue a progressive dividend policy based on stable dividends. Despite the increasing uncertainty of international situations and the rapidly changing business environment, we consider addressing various risks as an opportunity for corporate value improvement and revenue expansion. We hope that all of our stakeholders will look forward to the future of the Toho Acetylene Group and support us as we continue to take on challenges together as a group, with every one of our employees keeping the “To-Ace Spirit” in their hearts.