Philosophy

Our stakeholders, including customers, business partners, employees, society, and shareholders, are indispensable partners for the Company to contribute to the realization of a sustainable society through our corporate activities. Coexistence and co-prosperity with our stakeholders are the Company's earnest wishes, and the key of "co-creation" that creates new value together with our stakeholders, are trusting relationships. The Tokai Carbon Group will continue to make constant efforts to further strengthen the "Ties of Reliability" with our stakeholders. To that end, we will always be sincere, and while maintaining appropriate communication with our stakeholders, through fair and transparent corporate activities, we will boldly challenge ourselves while aiming for innovation and will work as a Group so that we can exceed our stakeholders' expectations in a timely, continuous, and long-term manner.

Guidelines

1.Pursuit of Ties of Reliability

Our stakeholders including customers are important partners for the Company to contribute to the realization of a sustainable society through our corporate activities. The Tokai Carbon Group will continue to make constant efforts to further strengthen the “Ties of Reliability” with each stakeholder.

• 1-1.(Customers) Creation of advanced materials and solutions

  The Tokai Carbon Group will always think from customers’ perspectives and respond to the trust they place on us by providing advanced materials and solutions in a timely manner through fair and transparent corporate activities. To that end, we sincerely listen to the opinions of our customers, aim to provide materials and solutions that meet their needs, and strive for thorough quality control and improvement.

• 1-2.(Shareholders) Improvement of corporate value and commitment to communication

  By contributing to the realization of a sustainable society through our corporate activities, the Tokai Carbon Group will achieve the sustainable enhancement of corporate value and meet the expectations of our shareholders. We will build a sound corporate governance system, ensure management transparency, and strive to promote understanding of our corporate management and corporate activities through timely and appropriate IR activities.

• 1-3.(Employees) Creation of a rewarding workplace

  The most important asset that supports corporate activities is human resources. The Tokai Carbon Group will create a vibrant work environment where all employees take on challenges with satisfaction in their work and cooperate with each other to grow while being physically and mentally healthy and harnessing their abilities and aptitudes.

• 1-4.(Business partners) Development of sound and appropriate relationships with business partners

  Tokai Carbon will comprehensively evaluate and select business partners including suppliers based on various conditions such as quality and price, and strive to build sound and appropriate business relationships through transparent and fair transactions.

• 1-5.(Society) Coexistence with the global environment, international community, and local communities

  Environmental problems such as global warming are critical issues to realize a sustainable society. The Tokai Carbon Group aims to coexist with the global environment through corporate activities that are friendly to people and the earth. Furthermore, we will respect the culture and customs of each country and region and build trusting relationships through appropriate communication with the international and local communities to coexist as a good corporate citizen.

2.Sincere and fair business activities

We will thoroughly comply with domestic and international competition and antitrust laws, maintain a fair competitive relationship with our competitors, and carry out our corporate activities in a fair manner.

• 2-1.Supply of safe and high-quality products

  We will comply with laws and regulations of each country and region concerning safety and quality, establish and operate a company-wide system to ensure safety and quality, including ISO 9001 certification, and provide a stable supply of safe and high-quality products at reasonable prices.

• 2-2.Compliance with antitrust laws and fair competition

  We will thoroughly comply with domestic and foreign competition laws and antitrust laws to maintain competitive relationships with competitors and to conduct corporate activities in a fair manner.

• 2-3.Prevention of bribery and corruption

  We will comply with international norms as well as relevant laws and regulations of each country regarding the prevention of corruption and will not take part in any corruption with others, including each country’s civil servants and government officials. When making political donations and other kind of donations, we will comply with laws and regulations of each country and internal rules after fully considering the necessity and appropriateness of the donations.

• 2-4.Security export control

  We will establish a security export control system for the purpose of maintaining international peace and security, while complying with laws, regulations, and rules of each country and region as well as internal rules regarding export control so that transactions such as the export of products and the provision of technology will not be used for the development, manufacture, use, and storage of weapons of mass destruction and conventional weapons, support for terrorism, or other purposes that threaten world peace.

• 2-5.Prohibition of conducts contrary to the legitimate interests of the Company

  We will not engage in any conduct that contradicts the legitimate interests of the Company and damages the Company, such as those that are intended to benefit oneself or a third party or those that damage the credibility or honor of the Group.

• 2-6.Blocking of relationships with antisocial forces

  We will cut off any relationships with antisocial forces, groups, or individuals that threaten the order and safety of civil society while organizationally and firmly standing against unjust and illegal demands from such forces and rejecting any such demands.

• 2-7.Responsible procurement

  To pursue optimum procurement, we will comprehensively evaluate suppliers from the aspects of quality, price, delivery schedule, environmental impact, human rights, occupational safety, stability, etc., in accordance with the “Tokai Carbon Global Procurement Policy.” In addition, we will encourage the upstream supply chain of raw materials, etc. to comply with laws and regulations of each country and region, and at the same time, we will collect information on products and services, etc. by tracing back to the upstream supply chain of raw materials, etc. and manage such information appropriately, and will make our best efforts when requested by our customers, etc., to disclose such information. In addition, our procurement activities shall take into consideration the impact on local communities of the use of raw materials that may cause social problems such as human rights and the environment (e.g., conflict minerals (tin, tungsten, tantalum, gold), cobalt, natural rubber, etc.), and if there is any concern, we will take measures to avoid use of such raw materials.

  We will treat our suppliers on an equal and fair basis, conduct sincere transactions with them, and not engage in dishonest acts such as unfair discrimination and exclusion or restraint of business activities. We will also ask our suppliers to follow the “Tokai Carbon Global Procurement Policy.”

3.Respect for human rights and safe working environment

In accordance with the “Tokai Carbon Group Global Policy on Human Rights,” we will respect the human rights of each employee and create a workplace where diverse talents can work safely and healthily.

• 3-1.Respect for human rights and diversity

  We will respect the basic human rights of individuals and diversity and will not discriminate, in all corporate activities, on the basis of race, physical features, nationality, gender, sexual orientation, age, language, religion, political or other opinions, property, disability, family origin or other social status, or any other similar reasons. In addition, child labor is not permitted in our corporate activities in any countries and regions, and slave labor such as human trafficking, forced labor, and bonded labor is prohibited.

• 3-2.Ban on harassment

  Recognizing that workplace harassment is an act that undermines the dignity of individuals and has a negative impact on human relations in the workplace, worker motivation, and corporate reputation, we will prevent any harassment.

• 3-3.Protection of personal information

  To protect individual privacy, we will comply with relevant laws and regulations of each country and region regarding the handling of personal information and aim to prevent information leakage and loss.

• 3-4.Thorough health and safety and health management

  We prioritize ensuring the health and safety of our employees in the workplace, comply with laws and regulations of each country and region regarding occupational health and safety, and create an environment that takes into consideration the prevention of accidents and disasters.

4.Efforts to preserve the global environment

Recognizing that the preservation of the global environmental is one of the top priority management issues, we will seek to create harmony between our corporate activities and the environment and carry out activities for the realization of a sustainable society in accordance with the “Environmental Policy.”

• 4-1.Provision of environmentally friendly products and services

  We will actively develop and provide products and services that are friendly to the global environment.

• 4-2.Reduction of environmental impact in business activities

  We will contribute to the realization of a sustainable society by reducing environmental impact and preventing environmental pollution in our corporate activities.

5.Appropriate disclosure of corporate information

We will disclose corporate information in a timely and appropriate manner while actively communicating with shareholders and other stakeholders.

• 5-1. Timely and appropriate disclosure of corporate information

  To fulfill our accountability as a listed company, we will widely disclose corporate information in a timely, appropriate, and impartial manner to the entire society, including our stakeholders.

• 5-2. Appropriate financial reporting

  We will develop an internal control system to ensure the reliability of financial reporting and record and report on accounting and tax in a timely and appropriate manner in accordance with relevant laws and regulations, applicable accounting standards, and internal rules, while properly fulfilling our tax obligations.

6.Protection of company assets and information

We have a responsibility to protect the assets of the Company. In addition, the assets of customers, suppliers, etc., who entrust their assets to the Group must be protected in the same way.

• 6-1.Management and proper use of company property

  We will properly manage the tangible and intangible assets of the Company and prevent cyber-related risks, unauthorized access, theft, loss, etc. In addition, these assets will not be used for purposes other than business purposes, such as appropriation for private use.

• 6-2.Management of confidential information

  We will properly manage internal and external confidential information that we have obtained in connection with our duties and transactions in accordance with laws and regulations as well as internal rules. Furthermore, we will not disclose, leak, or illegally use such information not only during employment but also after retirement without following appropriate procedures.

• 6-3. Management of personal information

  We will endeavor to prevent unauthorized or unjust disclosure and misuse of internal and external personal information that we have obtained in connection with our duties and transactions.

• 6-4. Prohibition of insider trading

  We will not engage in insider trading or acts creating the perception of insider trading based on undisclosed internal or external information that we have obtained in connection with our duties and transactions. We will also not leak such information to third parties, including family members, or recommend insider trading.

• 6-5. Protection and use of intellectual property rights

  We will make good use of the Company’s own intellectual property, while properly managing it to prevent it from being used illegally by others. We will respect the intellectual property rights of others and will not use them illegally.