{"id":77,"date":"2026-02-24T12:22:31","date_gmt":"2026-02-24T03:22:31","guid":{"rendered":"https:\/\/www.toho-ace.co.jp\/en\/?page_id=77"},"modified":"2026-07-06T16:41:48","modified_gmt":"2026-07-06T07:41:48","slug":"managementpolicy","status":"publish","type":"page","link":"https:\/\/www.toho-ace.co.jp\/en\/investorrelations\/managementpolicy","title":{"rendered":"[Investor Relations] Management Policy"},"content":{"rendered":"
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\r\n\t\tHOME<\/a>\r\n\t\t > <\/span>\r\n\t\tInvestor Relations<\/a>\r\n\t\t > <\/span>\r\n\t\tManagement Policy<\/span>\r\n\t<\/div>\r\n<\/div>\r\n\r\n
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\r\n\t\t\tInvestor Relations<\/span>\r\n\t\t\t

Management Policy<\/h1>\r\n\t\t<\/div>\r\n\t<\/div>\r\n\r\n\t\r\n\t
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Message from the President<\/h2>\r\n\t<\/div>\r\n\t
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\r\n\t\t\tFurther enhance corporate value believing in the \u201cfuture and power of gas\u201d \r\n\t\t<\/h3>\r\n\r\n\t\t

\r\n\t\t\tSince our establishment in 1955, when we began to manufacture and sell dissolved acetylene gas, which is essential for core industries, we have remained committed to \u201cmonozukuri\u201d (Japanese term for \u201cmanufacturing\u201d) and supplied the gases society needs, to make people\u2019s lives better and enrich lifestyles. While endeavoring to resolve societal issues, which change with the times, we continue to grow. By responding to the changing times in every era, always keeping an eye on the future, and believing in the future and power of gas, we have remained one step ahead of industry rivals.\r\n\t\t<\/p>\r\n\r\n\t\t

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Today, society faces various challenges, and companies are increasingly expected to embrace sustainability and address ESG issues actively. Implementation of our management philosophy of \u201ccreating economic value through industrial gases and related technologies, equipment, etc., while contributing to society\u201d aligns with our goal of achieving corporate growth by helping to resolve societal issues.<\/p>\r\n\t\t\t\"\"\r\n\t\t\t\"\"\r\n\t\t<\/div>\r\n

Positioning of the new medium-term management plan<\/h3>\r\n\t\t

\r\n\t\t\tOur specific initiatives for the realization of our management policy are found in the three-year medium-term management plan launched this fiscal year. While our strong sales foundation based primarily in Tohoku is our strength, on the other hand, we are also exposed to a challenging business environment, including skyrocketing resources and energy prices stemming from geopolitical risks, inflation caused by rising logistics costs and shortages of goods and labor, increases in U.S. tariffs, and population decline in the Tohoku region.
\r\nWe also face challenges including the need to respond flexibly to changes in the external environment, deepen penetration of existing sales channels, and develop new sales channels. Further efforts will be needed to realize our management policy.
\r\nTo this end, we will aim to achieve the medium-term management plan by implementing four strategies as the \u201cimplementation phase for our next leap forward.\u201d
\r\nThose four strategies are (1) \u201cstrengthening core businesses and growth businesses,\u201d (2) \u201crealizing management that is conscious of cost of capital and share price,\u201d (3) \u201cpromotion of sustainable growth,\u201d and (4) \u201cpromotion of CSR management.\u201d\r\n\r\n\t\t<\/p>\r\n\r\n\t\t

\r\n\t\t\tStrengthening core businesses and growth businesses\r\n\t\t<\/h3>\r\n\r\n\t\t

\r\n\t\t\tAs our numerical target under this strategy, we will aim for operating profit of 2.4 billion yen in FY2028 through a dual-track strategy of strengthening core businesses and expanding growth businesses. \r\nWe will promote efficiency improvements in production and logistics and shift allocation of management resources toward high value-added domains. In doing so, we will improve our operating profit margin to 5.7% in FY2026, 5.3% in FY2027 (slightly lower due to the impact of regular repairs of the Tagajo Plant), and 6.5% in FY2028.
\r\nWe are also considering the strengthening of three key growth businesses toward FY2028.
\r\nThe first of those involves improving the utilization rate of our hydrogen production facility and the expansion of sales to new sectors such as semiconductor-related industries.
\r\nThis hydrogen facility, which was built with an investment of 1.0 billion yen, began commercial operations in August 2025. By expanding sales to semiconductor-related industries and other new customers, we will work to increase its utilization rate.
\r\nThe second is the establishment of a new food-grade gas filling plant. Construction of a new filling plant is underway inside our Kanto Sales Office in Shiroi City, Chiba Prefecture, at a cost of 600 million yen, with the aim of completion in January 2027. Through this reinforcement of supply capacity, we will aim for further growth of our food business while working to build a stable supply structure.
\r\nThe third is the construction of a new production plant for the ice-making machine business.
\r\nAt Group company Tagawa, which has its head office in Katori City, Chiba, construction of a new production plant is planned, with completion targeted for May 2027.
\r\nThrough these initiatives, we will work to expand production capacity and further improve operational efficiency and safety in our aim to strengthen the production foundations that will underpin business growth. We plan to make proactive investment in these three main growth businesses going forward.\r\n\r\n\t\t<\/p>\r\n\r\n\t\t

\r\n\t\t\tRealizing management that is conscious of cost of capital and share price\r\n\t\t<\/h3>\r\n\r\n\t\t

\r\nWe position ROE as a key metric.However, during the medium-term management plan period, we will prioritize growth investments such as investments in large-scale facilities and strengthening of supply infrastructure. For this reason, we do not expect ROE improvement to go beyond 7.6%.
\r\nOn that basis, by increasing earning capacity and asset efficiency through these initiatives, we will aim to achieve ROE of 8.0% and the sustainable enhancement of corporate value over the medium to long term.
\r\nWith a dividend payout ratio of approximately 40% as our goal, we will continue to provide continued, flexible dividend payments, while taking into account the balance with retained earnings needed to support future business expansion, strengthen our business foundation, and fund capital investments.
\r\nFurther, we will strengthen our public relations and investor relations (IR) activities to enhance the Company’s visibility in the market and deepen relationships with investors who support our Group from a medium- to long-term perspective. We will continue to expand and enhance these initiatives.\r\n\t\t<\/p>\r\n\r\n

Promotion of sustainable growth<\/h3>\r\n

\r\nAs the basic policy for technology and research development, we aim to maximize added value by focusing on three pillars: strengthening existing businesses, addressing environmental issues, and creating new business domains. We will achieve innovation by enhancing our marketing efforts, including the development of potential customers, and by focusing our efforts on technology and research development with a view to achieving the Sustainable Development Goals (SDGs).
\r\nWe also place particular importance on our people as our greatest management resource underpinning the sustainable growth of the company. With the creation of a working environment in which our employees can work with vitality and vigor as our basic policy, we are working to establish workplaces where employees can maintain high motivation and achieve their own growth. We are also advancing workstyle reforms from a long-term perspective that leverage our diverse workforce to improve both work-life balance and productivity.<\/p>\r\n\r\n\r\n

Promotion of CSR management<\/h3>\r\n

To coincide with the formulation of the new medium-term management plan, we have set new materiality issues and KPIs and established medium-term targets for CSR activities. By making CSR management the foundation of our business activities, we will aim for the sustainable growth of the Group.
\r\nOn the environmental front, with the aim of realizing a carbon-neutral society, we have identified \u201caddressing climate change\u201d and \u201ccircular resource utilization\u201d as material issues. On the social front, with the aim of creating a working environment in which our employees can work with vitality and vigor, we have identified three new material issues: \u201ccreating a pleasant working environment,\u201d \u201cdiversity,\u201d and \u201csafe and stable operations.\u201d Further, we have identified: \u201ccompliance,\u201d \u201ccorporate governance,\u201d and \u201crisk management\u201d as our three material issues on the governance front, with the aim of realizing highly transparent management.<\/p>\r\n\r\n

Unite a Group in our aim to enhance corporate value<\/h3>\r\n

Finally, the business environment surrounding the Company is expected to remain challenging. We believe that addressing the various risks that may arise will boost the enhancement of our corporate value and lead to opportunities for the expansion of earnings.
\r\nBy continuing to advance portfolio strategies with a proactive approach, we hope to realize sustainable growth.
\r\nIn addition, by further increasing the trust of our stakeholders, the Group will continue to contribute to the sustainability of society and aim to be a \u201cshining company originating from Tohoku\u201d that continues to grow sustainably itself.
\r\nWe sincerely request your ongoing support and hope that you will look forward to the future of the Toho Acetylene Group as we continue to take on new challenges.<\/p>\r\n\r\n\r\n\t<\/div>\r\n\r\n\t\r\n\r\n<\/section>\r\n","protected":false},"excerpt":{"rendered":"HOME  >  Investor Relations  >  Management Policy Investor Relations Management Policy Message from the President Further enhance corporate value believing in the \u201cfuture and power of gas\u201d Since our establishment in 1955, when we began to manufacture and sell dissolved acetylene gas, which is essential for core industries, we have remained committed to \u201cmonozukuri\u201d (Japanese […]","protected":false},"author":1,"featured_media":0,"parent":75,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"class_list":["post-77","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/pages\/77"}],"collection":[{"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/comments?post=77"}],"version-history":[{"count":20,"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/pages\/77\/revisions"}],"predecessor-version":[{"id":844,"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/pages\/77\/revisions\/844"}],"up":[{"embeddable":true,"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/pages\/75"}],"wp:attachment":[{"href":"https:\/\/www.toho-ace.co.jp\/en\/wp-json\/wp\/v2\/media?parent=77"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}