Tokai Carbon (5301) Investor presentation summary

Vision and strategic goals

• Aims to contribute to a sustainable society through advanced materials and solutions, targeting net sales of ¥500 billion, EBITDA margin of 20%, and ROIC of 12% by 2030.

• Focuses on building a future of technology and trust, with Vision 2030 updated as of February 13, 2026.

Business environment and progress

• Structural reforms in Graphite Electrodes and Smelting & Lining are expected to take effect from Q4 FY2025, with improvements in Fine Carbon and Industrial Furnaces anticipated from 2027.

• Net sales are projected to rise from ¥346.7 billion in 2026 to ¥500 billion by 2030, with EBITDA and ROIC also improving.

• Responds to persistent EV market deceleration by leveraging AI-driven demand and expanding sustainable initiatives like carbon black regeneration from used tires.

Portfolio management and capital allocation

• Allocates resources based on ROIC and market growth, prioritizing high-growth, high-profitability businesses such as Fine Carbon and Industrial Furnaces.

• Targets a company-wide economic spread of 7% or greater (ROIC-WACC) by 2030, with significant investments in facility ramp-ups and next-generation products.

• Operating cash flow is allocated to proactive investments, shareholder returns, and financial stability, with a target adjusted net D/E ratio of 0.35x and WACC below 5%.