Basic Management Policy

We hold to the ideals of “customer orientation,” “efficient management,” and “social contribution” as our corporate philosophy.
That is, we work hard to gain the trust of our customers by engaging in business practices that are always focused on our customers.
In addition, we not only strive to provide our customers with products that have the very best quality, but we also reduce costs to secure a fair return. We are dedicated to supporting highly efficient business operations that achieve a balance between quality and profit.
Furthermore, we work hard to form a niche in society by making contributions through our business activities to society.
Based on the corporate philosophy noted above and our current status as a company, we engage in business practices which embrace “innovation,” “trust” and “promptness” as our guiding principles.

Target Management Indicators

The Titan Kogyo Group has established its Seventh Mid-Term Management Plan (FY2024–2026) and will implement short-term intensive performance improvement measures, with returning to profitability in FY2024 as its most important issue. We will achieve profitability in FY2024 by increasing sales through price revisions and higher sales volumes and by thoroughly lowering costs.

This plan establishes medium- and long-term goals focused on scale and return on equity (ROE) with the goal of achieving sales of 15 billion yen and ROE of 8% by 2036, the 100th anniversary of our company’s founding, constantly in mind.

Medium- and long-term numerical targets (consolidated)

Descriptions pertaining to the future, such as earnings estimates, have been created based on information available as of the end of the consolidated fiscal year under review. Actual earnings may differ from estimates due to a variety of factors.

Seventh Mid-Term Management Plan (FY2024–2026)

The Titan Kogyo Group has established its Seventh Mid-Term Management Plan (FY2024–2026), which incorporates medium- and long-term management policies, short-term intensive performance improvement measures for FY2024, and management-related measurements that are attentive toward capital costs and the stock price.

Our Seventh Mid-Term Management Plan can be summarized as follows.

Basic Policy

In accordance with a basic policy that consists of expanding sales and improving the profitability of cosmetics-related products, enhancing our risk tolerance, and contributing toward a sustainable society, we aim to secure a unique position and gain market share in a global cosmetics marketplace that has shrunk due to the COVID-19 pandemic. We will also continue our efforts to improve profitability through cost reductions, to implement growth strategies, to increase the efficiency of our management resources, and to enhance our risk tolerance. Moreover, by pursuing the attainment of a prosperous sustainable society, we aim to recover from our faltering performance and increase our Group’s corporate value.

Business Strategy

We will leverage our strengths to make ourselves stand out from the competition so that we can survive in the global marketplace and carve out a unique presence. We will expand our business in areas where our accumulated technology and experience allow us to be competitive.

*Our six core technologies: particle shape control technology, ultrafine particle creation technology, composite creation technology, surface processing technology, dispersion technology, and impurity reduction technology

Dividend Policy

Acquired funds will be saved in moderation for future investment and to ensure risk tolerance as well as to repay debt, giving due consideration to our financial position. They will also be returned to shareholders in an appropriate manner. Our shareholder return policy entails determining the dividend amount by targeting a payout ratio of 20% with attention paid to dividend consistency, and to increase dividends in stages over the three-year period covered by our Seventh Mid-Term Management Plan in accordance with profit growth. We will also consider the acquisition of treasury stock to provide a moderate range of flexibility.

Actions to promote management that is attentive toward capital costs and the stock price

The cost of capital and return on capital indicators will be evaluated using the cost of shareholder equity and ROE, which are firmly entrenched within the company. The Board of Directors will share our commitment to managing the company in a manner that prioritizes keeping ROE higher than the cost of shareholder equity. Our target ROE is 8%, which is higher than our company’s perceived cost of shareholder equity. The status of these efforts will be reported and analyzed monthly by the Board of Directors, and large-scale capital investments will be augmented by an evaluation from the perspective of return on capital (e.g., IRR versus the cost of capital). Our progress status will be shared annually through our website and disclosure documents.

For details, please refer to the document “Notice Regarding New Mid-Term Management Plan and Short-Term Intensive Performance Improvement Measures,” which was released on May 15, 2024.

• Notice Regarding New Mid-Term Management Plan and Short-Term Intensive Performance Improvement Measures (PDF / 518 KB)