Objectives & Achievements

Material issues	Relevant capital	Risks and opportunities	Issues, qualitative objectives, and KPI objectives for FY 2026/12	Main achievements, progress, and KPI in FY 2025/12	Evalu- ation
Contributions to society through innovation and corporate value enhancement	■ Financial capital ■ Manufactured capital ■ Intellectual capital ■ Social and relationship capital	■ Growth of the semiconductor industry, intensification of competition in global markets, and rising strategic importance ■ Response to increasing geopolitical risks and supply chain disruptions, and the creation of new business opportunities and ecosystems ■ Expansion of the role of semiconductors in innovation and the resolution of social and environmental issues ■ Technological advances and market expansion in cutting-edge fields related to the miniaturization, high purity processing, and stacking of semiconductors; expansion of applications for legacy fields ■ Expansion of applications and social need for semiconductor technologies (such as life science-related materials, functional materials, and optical materials) ■ Risk reduction and long-term stable growth through the diversification of the business and regional portfolios and multiplication of the target markets ■ Emergence of optical semiconductor and quantum computing markets and increasing demand for new material development	■ Increase the global market share of cutting-edge photoresists ■ Ensure long-term research and development that anticipates technology trends and customer needs ■ Thoroughly implement customer-oriented strategies through the trifecta of development, manufacturing, and marketing	■ Expand the adoption of EUV photoresists and high-purity chemicals for cutting-edge nodes	○
				■ Record-high consolidated net sales: 17.9% increase year-over-year > Global silicon wafer shipment area growth rate: 5.8% (Source: SEMI)	○
		■ Accelerating increases in power consumption due to the relentless evolution and increased use of generative AI and the rising demand for new energy-efficient semiconductors ■ Increase in the customer’s needs for further advances, complexity, and ultrahigh purification of semiconductor materials ■ Coexistence of supply shortage areas and oversupply areas in the semiconductor markets, and the resulting complexity of silicon cycles	■ Provide materials using world-leading microprocessing, high purity processing, and multi-layer stacking technologies. ■ Establish advanced technology and stable mass production systems that respond to customers as soon as possible ■ Improve detection sensitivity for metal impurities that comply with customer development roadmaps ■ Strengthen global marketing system coordination to deliver innovation that impresses customers
				■ Expand sales of materials for semiconductor devices used in a range of advanced AI applications.	○
				■ Electronics functional materials consolidated net sales: 16.0% increase year-over-year	○
				■ High-purity chemicals consolidated net sales: 19.6% increase year-over-year	○
				■ R&D efficiency: 366% (57-point increase year-over-year)	○
		■ Increasing importance of materials informatics (MI) and computational chemistry as the means of creating innovation ■ Creation of high-efficiency development environments through conversion to databases and AI utilization and the acceleration of digital transformation	■ Advance business processes across the entire value chain ■ Strengthen a secure and flexible information utilization infrastructure and security ■ Create value and maximize impact through AI and digital initiatives ■ Improve organizational execution through human capital development and operational reform	■ Developed a digital human capital development framework and continued role- and level-based training	○
				■ Conducted multiple proof-of-concept projects and full-scale implementations based on real operational challenges identified in collaboration with frontline teams	○
				■ Strengthened a flexible and sustainable IT operating environment incorporating security and governance considerations	○
				■ Advanced the application of MI to development, productivity improvement, and quality stabilization	○
Pursuit of happiness by human capital	■ Financial capital ■ Intellectual capital ■ Human capital	■ Intensification of cross-border competition in the recruitment of human capital for semiconductor-related industries ■ Global human capital development and strengthening in conjunction with the increase in the overseas sales ratio ■ Increase in the importance of the happiness (well-being) and work-life balance for employees and society ■ Creation of better working environments by improving business efficiency and reducing the burden on workers through digital transformation	■ Enhance support for individual skill development ■ Promote career autonomy ■ Develop core talent ■ Employee engagement: 2027 target — up 5.4 points from 2024 ■ Review and implement improvements to the overall employee benefits program ■ Improve productivity and reduce total working hours and excessive overtime ■ Foster a work environment where everyone can thrive and work with pride, and promote a sense of fulfillment at work	■ Employee engagement index improved by 1.9 points compared to 2024	○
				■ Continued implementing Self-Career Dock (SCD) training that promotes career autonomy: Conducted SCD training for employees in their late 20s and for senior employees	○
				■ Reduction of prescribed working hours (decrease of 15.5 hours per year)	○
				■ Support for Self-Directed Reskilling through DX Readiness and AI Readiness Training	○
		■ Creation of innovation and increase in competitiveness by leveraging diverse human capital ■ Utilization of the “know-why” accumulated by senior talent	■ Strengthen recruitment of new graduates and mid-career professionals ■ Develop global talent ■ Create an environment where diverse talent can thrive ■ Promote innovation by leveraging diverse perspectives, values, and expertise	■ Number of hires: 143 (new graduate recruitment: 66, mid-career hires: 77)	○
				■ Mid-career hires ratio: 53.8%	○
				■ Extension of the Mandatory Retirement Age and Operation of the Elder Meister Program to Support Senior Employees	○
				■ Percentage of Male Employees Taking Childcare Leave: 66.7%	△
Evolution of sustainability governance	■ Financial capital ■ Human capital ■ Social and relationship capital	■ Increase in the potential risks and opportunities involved in business growth and increase in the number of stakeholders ■ Rapid changes in the business environment in the era of BANI* ■ Increase in business opportunities directly linked to sustainability issues inside and outside the company, domestically and internationally ■ Upgrades to monitoring, supervisory, and control functions to directly link business growth to the enhancement of corporate value ■ Maintenance and enhancement of public trust and brand power in communities in Japan and overseas ■ Increase in tail risks that include pandemics and extremely severe natural disasters and conflicts ■ Strengthening of risk tolerance to continue fulfilling supplier responsibilities and strengthening response to laws and regulations (ordinances)	■ Continue and deepen efforts to address issues identified through effectiveness evaluations by further enhancing the effectiveness of the Board of Directors ■ Ensure the ongoing reviews of approval authority to accelerate and streamline decision-making and strengthen governance ■ Continue periodic checks of laws and regulations (four times annually) and review the list of applicable laws and legal management procedures	■ Implemented improvement measures in response to issues identified in the evaluation of the Board of Directors for the fiscal year ended December 31, 2024	○
				■ Conducted ongoing reviews to ensure appropriate approval authority settings and revised the authority regulations	○
				■ Performed checks on compliance with laws and regulations (four times annually), and reviewed the list of applicable laws and legal management procedures	○
				■ Reviewed the CSR Policy Handbook	○
		■ Monitoring of human rights issues throughout the value chain (human rights due diligence)	■ Continue efforts to prevent harassment ■ Implement human rights education ■ Continue the appropriate operation of the internal reporting system ■ Improve the accessibility of internal reporting (create flowcharts for rules, develop and distribute case study materials) ■ Number of internal reports; promote and raise awareness of the internal reporting system and the whistleblowing and counseling contact information	■ Continue efforts to prevent harassment	○
				■ Implemented human rights education	○
				■ Added internal reporting channels (added an external specialist organization as an outside reporting route)	○
				■ Conducting a Survey on Whistleblowing as Part of the Compliance Awareness Survey	○
				■ Publicized the establishment of a reporting desk for business partners (Supplier Hotline) on the company website	○
Contributions to the global environment for a sustainable future	■ Financial capital ■ Natural capital	■ Cost increases for responding to carbon pricing introduction and policies, laws, and regulations ■ Cost increases for process and product temperature management, water stress, and water procurement difficulties from rising temperatures ■ Contribution to lower power consumption of semiconductors through miniaturization ■ Rising demand for power semiconductors	■ Ensure the reliable operation of the integrated environmental data management system ■ Proactively disclose information by publishing the Integrated Report and environmental information on our website ■ Reduce energy-related CO₂ emissions by 30% by 2030 from 2019 levels ■ Expand sales and ensure a stable supply of i-line photoresists for power semiconductors	■ Effective Operation of the Integrated Environmental Data Management System	○
				■ Active information disclosure: publication of Integrated Report, environmental information disclosure on website	○
				■ Energy-derived CO2 emissions: 36.7% reduction (vs. 2019)	○
				■ Stably supplied i-Line photoresists for power semiconductors	○
		■ Increase in interest in the marine plastics issue ■ Expansion of a circular economy	■ Reduce water consumption by renewing equipment ■ Domestic water usage: 15% reduction by 2030 (vs. 2019) ■ Industrial waste emission intensity: 15-point reduction by 2030 (vs. 2019)	■ Reduced water usage through centralization of primary pure water systems at the Koriyama Plant	○
				■ Domestic water consumption: Increased by 9% compared with 2019 (due to the opening of new facilities)	×
				■ Industrial waste generation (per base unit): Increased by 55 points compared with 2019 (same reason)	×
		■ Tighter emissions regulations in major developed countries ■ Further risk reduction by satisfying standards stricter than the regulatory requirements	■ No cases of exceeding operational management standards ■ Manage fluorocarbon leakage through proper equipment management ■ Consider adopting non-fluorocarbon alternatives when upgrading equipment ■ Environmental accidents: zero serious incidents	■ Excess of operational thresholds: None	○
				■ Managed CFC leakage volume through the proper management of equipment and introduced non-fluorocarbon alternatives during equipment updates	○
				■ Environmental accidents: No major accidents	○
		■ Increased risk of global biodiversity loss ■ Risk reduction through initiatives addressing biodiversity and water resources as a single issue	■ Implement ongoing employee training ■ Participation in forest conservation activities	■ Implemented sustainability briefing sessions for all employees, directors, and auditors: 100% participation rate	○
				■ Participated in environmental conservation activities at each site	○
Development of the semiconductor ecosystem	■ Financial capital ■ Natural capital ■ Social and relationship capital	■ Tighter chemical substance control regulations in major developed countries ■ Increased product value through proactive and thorough compliance with laws and regulations before and during the early stages of material development	■ Consideration of modification and expansion of a chemical substance information management system ■ PCB waste (low concentration): Formulate and promote an equipment renewal plan based on the roadmap toward the deadline for disposal in 2027	■ Considered the modification and expansion of a chemical substance information management system to improve the efficiency of compliance surveys and enhance regulatory responsiveness	○
				■ Made progress on the schedule based on the roadmap toward the deadline for the disposal of PCB waste (low concentration) in 2027	○
		■ Implement initiatives to convert geopolitical risks and similar challenges into new opportunities while continuing to ensure the stable supply of TOK products and the semiconductor supply chain ■ Increased risk of accidents due to the increase in production sites, production volume, and operating hours ■ Escalating human rights risks resulting from expanding the supply chain and increasing the importance of lifecycle assessment ■ Further risk reduction through RBA audits and ISO 45001 certification	■ Ensure a stable supply of high-quality products ■ Foster a strong occupational safety culture ■ Promote effective occupational safety initiatives ■ Minimize “unexpected” situations and conduct effective emergency response drills that function in real emergencies ■ Achieve zero lost-time injuries ■ Create a workplace that complies with the RBA Code of Conduct ■ Continue safety awareness training and hazard simulation training ■ Update risk management documents ■ Enhance employee safety confirmation drills ■ Improve employees’ risk literacy ■ Conduct tabletop BCP exercises	■ Implemented 5S activities based on common procedures for 5S implementation for the establishment of autonomous 5S activities	○

				■ Confirmed progress management and the effectiveness of safety measures based on safety inspection results conducted at all sites, including overseas, for eliminating occupational accident risks	○
				■ Conducted emergency response drills based on various scenarios to prepare for a wide range of contingencies	○
				■ Lost workdays accidents: 1, without lost workdays accidents: 8	×
				■ Delivered presentations to students to support semiconductor human capital development and participated in regional consortia	○

* Unconsolidated basis and consolidated subsidiaries in Japan