Toho Titanium Co., Ltd. Financial Results FY2024
May 16, 2025
(C)2025 Toho Titanium Co., Ltd.
Outline
FY2024 Financial Results Summary
FY2024 Entire-Year Financial Forecasts
(C)2025 Toho Titanium Co., Ltd. 2
1. FY2024 Financial Results Summary
(C)2025 Toho Titanium Co., Ltd. 3
Sales for aircraft remained strong, but the impact from quality issues and striking workers at Boeing is expected to materialize in the future.
Sales for general industrial applications were sluggish, impacted by excess production by Chinese manufacturers which emerged during the second half of the fiscal year
Demand for high-purity titanium for use in semiconductors was on a recovery track
Profitability improved year over year due to revised sales prices and the weakening of the yen
Review of FY2024
Exports increased due to excess polyolefin production capacity in China, but the delayed recovery in production volume at our customers in neighboring countries had an impact
Some regions and customers showed signs of a recovery in demand for catalysts, and total sales volume increased year on year
Equipment utilization rates deteriorated year on year due to inventory adjustments, but both sales and profits improved due to higher sales volume and the weakening of the yen
Impacts such as the stagnating Chinese economy have bottomed out, and MLCC demand is on a gradual recovery track
Sales prices declined due to falling NiLME raw material prices
A loss was recorded due to major production adjustments to improve the inventory balance, which were conducted primarily from July to September
Summary of Performance by Segment
Titanium Metal
Catalysts
Chemicals
FY2024 Consolidated Financial Results(In billions of JPY)
FY2024 Entire fiscal year | FY2023 Entire fiscal year | Change | |
Net Sales | 89.0 | 78.4 | +10.6 |
Operating income | 5.9 | 5.6 | +0.3 |
Ordinary income (loss) | 5.5 | 6.3 | -0.8 |
Net income | 3.7 | 5.0 | -1.2 |
Average exchange rate (yen/$) Dividend (¥/share) | 152.6 (149.5 ¥/$ at the end of the period) 18.00 | 144.6 (151.4 ¥/$ at the end of the period) 24.00 | |
Net Sales
Net sales increased in all segments, and rose 13.5% (¥10.6 billion) year on year.
Operating results
Operating income: YoY 4.5% (+¥0.3 billion)
Ordinary income: YoY -12.1% (-¥0.8 billion)
Net income: YoY -24.7% (-¥1.2 billion)
FY2024 Net Sales and Operating Income by Segment
(In billions of JPY)
Net Sales | FY2024 FY2024 (From April 1, 2024 to (From October 1, 2024 September 30, 2024) to March 31, 2025) | FY2024 Entire fiscal year | FY2023 Entire fiscal year | Change (Entire fiscal year) | |
Titanium Metal | 32.8 | 32.7 | 65.6 | 59.4 | +6.2 |
Catalysts | 4.8 | 5.9 | 10.7 | 7.3 | +3.4 |
Chemicals | 6.2 | 6.6 | 12.7 | 11.7 | +1.0 |
Total | 43.8 | 45.2 | 89.0 | 78.4 | +10.6 |
Operating income | FY2024 FY2024 (From April 1, 2024 to (From October 1, 2024 September 30, 2024) to March 31, 2025) | FY2024 Entire fiscal year | FY2023 Entire fiscal year | Change (Entire fiscal year) | |
Titanium Metal | 3.3 | 3.6 | 6.9 | 4.5 | +2.4 |
Catalysts | 1.0 | 1.4 | 2.4 | 2.0 | +0.4 |
Chemicals | (1.0) | (0.6) | (1.5) | 0.9 | -2.4 |
Common Costs and | |||||
Expenses Not Allocated to the | (0.9) | (1.0) | (1.9) | (1.8) | -0.2 |
Individual Segments | |||||
Total | 2.4 | 3.5 | 5.9 | 5.6 | +0.3 |
Difference in Operating Income between FY2024 and FY2023
(In billions of JPY)
4.56.9
2.02.4
0.9(1.5)
Titanium Metal
Catalysts
Chemicals
Exchange rate
Ore and electric (○)1.6
Labor and related costs
(×)0.3
Inventory adjustments, etc.
(×)1.9
Sales volume Exchange rate
(○)0.3
Sales volume
(○)0.4
Sales volume
(○)1.3
Price
(○)0.9
Repairs and other fixed costs
(×)0.6
(○)0.6
Costs (decreased production) etc.
(×)0.5
Ni raw material-related
(×)0.2
Costs (decreased production) etc. (×)2.6
Common costs
(×)0.2
12.0
10.0
8.0
6.0
(○)1.5
4.0
2.0
0.0
FY2023
Operating income 5.6
FY2024
Operating income 5.9
Trends in Operating Cash Flow and ROIC
FY2022
Results
FY2023
Results
FY2024
Results
Titanium metal
8.7%
4.6%
7.1%
Catalysts
17.1%
8.6%
8.3%
Chemicals
10.3%
3.2%
(4.5%)
ROIC
(company-wide)
8.3%
3.9%
3.8%
FY2025
Target
FY2030
Target
7.0% or 10.0% or higher higher
WACC 6.7%
Operating cash flow (2) ROIC
FY2022
Results
FY2023
Results
FY2024
Results
Operating Cash Flow (In billions of JPY)
5.3
(3.1)
19.3
2. FY2025 Entire-Year Financial Forecasts
(C)2025 Toho Titanium Co., Ltd. 9
Despite a temporary adjustment phase forecast to continue up to the end of the first half, demand for aircraft is expected to gradually recover in the second half
The difficult environment surrounding sales for general industrial applications is expected to continue
Demand for high-purity titanium for use in semiconductors should continue on its recovery track
Sales prices are still under negotiation domestically and overseas, and LTA export prices are expected to fall by several percentage points due to a decline in raw material prices
Business environment in FY2025
A modest recovery in demand that began in the previous year is expected to continue
Expanded sales are targeted in areas outside China and neighboring countries
There are plans to raise catalyst equipment utilization rates from approximately 60% in the previous year to around 80%, to match increases in sales volume
While impacts from the stagnating Chinese economy remain, a continued recovery in demand is forecast in communications, automotive and industrial equipment
Going forward, demand is expected to expand as applications related to AI servers and wellness are added to conventional communications and automotive applications
Ni powder equipment utilization rates will be raised from the approximately 40% in the previous fiscal year to about 75%.
A new plant currently under construction will enter trial operation during FY2025 and enter full service starting FY2026
Business Environment by Segment
Titanium Metal
Catalysts
Chemicals
Impact of Reciprocal Tariffs with the United States
Currently the direct impact is minor and only affects the catalyst business
There may be indirect impacts due to future changes in global conditions, but those potential impacts have not been incorporated into our forecast financial results
(In billions of JPY)
FY2025 Entire fiscal year | FY2024 Entire fiscal year | Change | |
Net Sales | 92.3 | 89.0 | +3.3 |
Operating income | 4.3 | 5.9 | -1.6 |
Ordinary income (loss) | 3.3 | 5.5 | -2.2 |
Net income | 2.4 | 3.7 | -1.3 |
Average exchange rate (yen/$) Dividend (forecast) (¥/share) | 140.0 (140.0 ¥/$ at the end of the period) 18.00 | 152.6 (149.5 ¥/$ at the end of the period) 18.00 | |
Net Sales
Net sales are expected to decline in the Titanium Metal segment but increase in the Catalysts and Chemicals segments, resulting in an overall year-on-year increase of 3.7%, or ¥3.3 billion.
Operating results
Operating income: YoY -26.9% (-¥1.6 billion)
Ordinary income: YoY -40.1% (-¥2.2 billion)
Net income: YoY -35.7% (-¥1.3 billion)
FY2025 Financial Results Forecast: Net Sales and Operating Income by Segment
(In billions of JPY)
Net Sales | FY2025 (From April 1, 2025 to September 30, 2025) | FY2025 (From October 1, 2025 to March 31, 2026) | FY2025 Entire fiscal year | FY2024 Entire fiscal year | Change (Entire fiscal year) |
Titanium Metal | 27.7 | 34.0 | 61.7 | 65.6 | -3.9 |
Catalysts | 5.7 | 6.5 | 12.2 | 10.7 | +1.5 |
Chemicals | 8.6 | 9.8 | 18.4 | 12.7 | +5.7 |
Total | 42.0 | 50.3 | 92.3 | 89.0 | +3.3 |
Operating income | FY2025 (From April 1, 2025 to September 30, 2025) | FY2025 (From October 1, 2025 to March 31, 2026) | FY2025 Entire fiscal year | FY2024 Entire fiscal year | Change (Entire fiscal year) |
Titanium Metal | 1.2 | 2.8 | 4.0 | 6.9 | -2.9 |
Catalysts | 1.2 | 1.0 | 2.2 | 2.4 | -0.2 |
Chemicals | (0.3) | 0.7 | 0.4 | (1.5) | +1.9 |
Common costs | (1.3) | (1.0) | (2.3) | (1.9) | -0.4 |
Total | 0.8 | 3.5 | 4.3 | 5.9 | -1.6 |
(In billions of JPY)
Titanium Metal
6.94.0
Catalysts
Chemicals
(1.5)0.4
2.42.2
Depreciation and other fixed costs Ore and electric (○)0.7
(○)0.9
(×)0.8
Price
(×)1.2
Inventory impact, etc.
(○)1.3
Changes in inventories, etc.
(×)1.6
Labor and related costs
(×)0.7
Sales volume and price
(○)1.6
Selling expenses
(×)0.5
Sales volume and prices
(○)2.8
Ni raw material and other costs (×)0.4
(○)0.7
Exchange rate
(×)2.6
Raw materials and other costs
(×)0.5
Changes in inventories, etc.
(×)0.6
Common costs
Exchange rate
(×)0.7
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
FY2024
Sales volume
FY2025
Operating income 5.9
Operating income 4.3
* Exchange rate sensitivity: ±1 ¥/$ = operating income ±¥0.2 bn/year (sign is + when yen depreciates)
Difference in Operating Income by Segment Between FY2025/1H and FY2024/2H(In billions of JPY)
Titanium Metal
3.61.2
Catalysts
1.41.2
Chemicals
(0.6)(0.3)
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
FY2024/2H
FY2025/1H
Sales volume Depreciation and other fixed costs (×)1.0
(○)0.3
Price
(×)0.7
Ore and electric
(○)0.0
Changes in inventories, etc.
(○)0.6
Labor and related costs
(×)0.4
Exchange rate Changes in inventories, etc. (×)1.0 (○)0.2
Selling expenses
(×)0.3
Sales volume and prices (○)0.9
Raw materials and other costs
(×)0.2
Changes in inventories, etc. (×)0.8
Common costs
Sales volume and price
(○)0.2
Exchange rate
(×)0.4
material and other costs (×)0.3
(○)0.2
Ni raw
（From October 1, 2024 to (From April 1, 2025 to
March 31, 2025）
Operating income
3.5
September 30, 2025) Operating income 0.8
Sales Volume of Main Products
Sales volume with FY2023 results indexed to 100 (FY2023 to FY2024 results, FY2025/1H forecast)
Titanium sales volume
110
100
90
FY2023
FY2024/1H FY2024/2H FY2025/1H
THC catalyst sales volume
200
150
100
50
0
FY2023 FY2024/1H FY2024/2H FY2025/1H
Ni powder sales volume
200
150
100
50
0
FY2023 FY2024/1H FY2024/2H FY2025/1H
FY2023 to FY2025 Three-year Cumulative | Medium-Term Management Plan Three-year Cumulative | Expected Attainment Rate | ||
Net Sales | 259.7 | 310.2 | 84% | |
Titanium Metal | 186.6 | 197.7 | 94% | |
Catalysts | 30.2 | 37.8 | 80% | |
Chemicals | 42.8 | 69.9 | 61% | |
Others (new businesses) | - | 4.8 | - | |
Operating income | 15.8 | 27.6 | 57% | |
Titanium Metal | 15.4 | 13.3 | 116% | |
Catalysts | 6.5 | 10.1 | 64% | |
Chemicals | (0.2) | 7.5 | - | |
Others (new businesses) | - | 1.1 | - | |
Common costs | (6.0) | (4.4) | - |
FY2025 Forecast | FY2025 MTMP |
92.3 | 120.0 |
61.7 | 72.0 |
12.2 | 15.0 |
18.4 | 30.0 |
- | 3.0 |
4.3 | 13.0 |
4.0 | 6.0 |
2.2 | 4.0 |
0.4 | 3.5 |
- | 1.0 |
(2.3) | (1.5) |
Comparison with Medium-Term Management Plan
Forecast
(In billions of JPY)
Action Conscious of Share Price
Dividend payout ratio
15 yen
34.4%
28.9%
18 yen
18 yen
21 yen
30.2%
3 yen
28.5%
30 yen
53.4%
The basic policy has been changed since the FY2024 year-end dividend
Old: Consolidated payout ratio of around 30%
New: Consolidated payout ratio of 30 - 35%
or
at least 2% of consolidated net assets
FY21 FY22 FY23 FY24 FY25 Forecast
* Payout ratio of 30.2% in FY2023 excludes the 70th anniversary commemorative dividend (¥3)
Officer compensation system
The Company decided to switch a portion of cash-based compensation paid to corporate officers to restricted stock-based compensation, in order to provide corporate officers with incentives to pursue the sustainable enhancement of corporate value, and to share value with shareholders to a greater degree
Management Philosophy
The Toho Titanium Group pursues the infinite possibility of titanium and the related technologies, and contributes to building a sustainable society by continuously supplying excellent products and services
Fundamental Policies
To put our Management Philosophy into practice, we adhere to the following three Fundamental Policies:
We give the highest priority to safety and compliance and operate a healthy and fair business.
We practice innovation and creativity to achieve continuous growth for our employees and organization.
We enhance communication with all stakeholders including customers, local communities, and shareholders, to develop relationships of mutual trust and symbiosis.
Management Philosophy
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This material contains "forward-looking statements" related to future events, such as our expectations on future business and financial performance and financial conditions, which reflect the management's views and assumptions derived from information that is currently available and are subject to risk and uncertainties. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this material, words such as "believe," "estimate," "expect," "intend," "may," "plan," "project," "target," "will," or "would" and similar expressions, as they relate to Toho, are intended as forward-looking statements.
Many factors could cause the actual results, performance, or achievements to be materially different from any future performance or achievements that may be expressed or implied by such forward-looking statements, including, among others,
changes in general economic and business conditions,
the state of the regulatory environment or political situation, changes in currency exchange rates and interest rates,
introduction of competing products by other companies, lack of acceptance of new products by Toho's targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy, and various other factors, both referenced and not referenced in this material. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Toho does not intend or assume any obligation to update these forward-looking statements.