Toho Zinc Co (5707) Investor presentation summary

Strategic direction and revitalization plan

• Executing a business revitalization plan focused on exiting mineral resources, reorganizing zinc smelting, and boosting lead and silver smelting profitability.

• Investments target enhanced competitiveness, leveraging high silver prices and improving business resilience.

• Aims to transform the business structure around smelting and refining for long-term value.

Investment breakdown and objectives

• Total planned investment of 6,056 million yen across three main areas: plant digital transformation (DX), expanding recoverable elements, and process streamlining for waste batteries and crude lead.

• Plant DX investment (1,756 million yen) will modernize core plants with real-time data systems to improve productivity and stability from April 2026 to March 2029.

• 3,050 million yen allocated to enhance recovery and purity of precious/rare metals and process complex ores, with a focus on hydrometallurgical R&D and equipment upgrades.

• 1,250 million yen to strengthen organizational structure and processes for increased recycling and cost reduction, especially for waste batteries and crude lead, from September 2026 to March 2028.

Financing strategy and structure

• Plans to raise about 6 billion yen via moving-strike stock acquisition rights (MS warrants), with 3.5 million shares issued (11.2% dilution), exercisable over 24 months from March 2026.

• Financing chosen for flexibility, gradual dilution, and ability to suspend exercises to manage share price impact.

• Allottee selected for phased funding certainty and capital market expertise; stock lending arrangements in place.