Other Businesses(Friction materials, Anode materials)Business Results Overview and OutlookIn 2018, net sales grew 14.6% year on year, to ¥15,525 million, and operating income was up 24.5%, to ¥1,068 million.Friction materials for use in construction equipment and in machine tools, including industrial robots, sold well. Withdrawal from the four-wheel vehicle market, to which the division was supplying commodity products, was completed as part of the business restructuring set forth in the medium-term management plan. Now attention will turn to expanding sales of products for use in industrial robots and in electromagnetic brakes for wind turbines. Regarding anode materials for lithium-ion batteries, efforts will focus on achieving further growth by expanding production capacity and the customer base in line with EV/PHEV market growth.Hiroshi Takahashi General Manager of Friction Materials Division Mitsuaki DozonoGeneral Manager of Anode Materials Division Business restructuring is the medium-term management plan theme for this business. In concert with that theme, we will focus on achieving optimal improvements for individual product types.Continued growth is expected in the EV market.Our next challenge is to boost product performance through greater quality and to achieve business expansion by capturing market growth that requires larger-scale CAPEX.Friction MaterialsAnode Materials 20192018201713,54285815,5251,06812,40020008,0004,00012,00016,00008004001,2001,600forecastOperating incomeNet sales(Year)(Millions of yen)(Millions of yen)Business results and forecast* The 2019 operating income forecast does not reflect internal adjustments.29TOKAI CARBON ANNUAL REPORT 2018Financial ReportData SectionSustainability ReportBusiness ReportVision and Strategy
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