Toho Acetylene Co.,Ltd.

The Group comprises the Company, 15 consolidated subsidiaries, 3 equity-method affiliates, 6 non-consolidated subsidiaries not accounted for under the equity method, 9 affiliates, and 2 other affiliated companies. Its principal businesses are the manufacture and sale of various high-pressure gases and the purchase and sale of equipment and supplies. The business classifications are the same as the segments, and the Group operates mainly in the following areas: gas-related businesses, espuma-related businesses, equipment and supplies-related businesses, automotive equipment-related businesses, ice-making machine-related businesses, and Other. Its main sales and service locations are concentrated in the Tohoku, Hokkaido, and Kanto regions, with operations nationwide. Its history began on 7 March 1955, when it established a new Sakata Plant in Sakata, Yamagata Prefecture, and began producing dissolved acetylene. The Group has since expanded and reorganized its operations at the site and continues to the present day. In terms of business conditions, the Group has made investments under its medium-term management plan, including the start-up of hydrogen gas production facilities in fiscal 2025 and the construction of production facilities for food-additive gases, scheduled to begin operations in early 2027. While implementing measures such as launching new products, expanding sales channels, and improving productivity, the Group has fallen short of the quantitative targets in its medium-term plan due to higher raw material and supply costs, logistics expenses, and labor costs, among other factors. Under the new three-year medium-term management plan beginning in fiscal 2026, the Group targets consolidated net sales of ¥37.0 billion, operating profit of ¥2.4 billion, and net income attributable to owners of the parent of ¥1.6 billion in fiscal 2028, and has set a long-term target of ROE of 8.0% or higher, assuming ROE of 7.6% in the final year. The Group will strengthen its business foundation and expand growth areas by developing hydrogen gas in the gas-related business, expanding the espuma-related business, introducing labor-saving and automated processes in the equipment and supplies-related business, and constructing a new ice-making machine plant.