Daicel : 1st Quarter of Fiscal Year ending March 2023 Consolidated Financial Results

1st Quarter of Fiscal Year ending March 2023 Consolidated Financial Results

August 4, 2022

Index

1.	Highlights	P. 3
2.	External Environment	P. 4
3.	Consolidated Financial Results	P. 6
4.	References	P. 18

Note:

We have reviewed the method of allocating corporate expenses from FY2023/3 in order to shift to a system in which each business unit bears responsibility for its own expenses and manages them accordingly.

Unless otherwise noted, operating income by segment for FY2022/3 in this document is the figure after reviewing the corporate expense allocation method.

1st Quarter (Apr. to Jun.) of Fiscal Year ending March 2023 Consolidated Financial Results	2

1. Highlights

Highlights

• 2023/3 1st Quarter (Apr. to Jun.) Financial Results

Net Sales: 128.0 billion yen Operating Profit: 13.0 billion yen

＜Y on Y＞

• Net sales increased because of aggressive efforts to correct prices corresponding to rising raw material prices and the effects of foreign exchange rates, although the sales volume of some products decreased because of the impact of the lockdown in China and the curtailment of auto production due to a shortage of components such as semiconductors.
• Operating profit decreased because of rising raw materials, fuel and distribution costs as well as the impact of the lockdown in China, despite some effects of foreign exchange rates.

＜vs Forecasts＞

• Net sales fell slightly less than the plan because of the impact of the lockdown in China mainly, despite the sales expansion of some products and the effects of foreign exchange rates.
• Operating profit exceeded the plan because of the sales expansion of some products and the effect of the depreciation of the yen more than expected, despite the effect of rising raw material, fuel and distribution costs.

1st Quarter (Apr. to Jun.) of Fiscal Year ending March 2023 Consolidated Financial Results

3

2. External Environment

Trends in Market

	Segment	Main Product	Main Market	Results of FY2023/3 1Q
		Raw Material	Cosmetics	The demand for cosmetics remained weak due to the lockdown in the
		for Cosmetics
		and Health	Healthcare	main market, China.
	Medical	The domestic health food market remained strong.
	Food
	Healthcare
	Chiral		As for chiral columns and stationary phases, the Chinese market was
		Life Science	affected by the lockdown in the first half of the first quarter, but demand
		Columns	recovered rapidly after the lockdown was lifted.
				The demand in other regions such as India also remained strong.
		TAC(*), High-		The demand for LCD panels has been sluggish due to adjustments made
		Performance	Electronic
	Smart	Films, Resist	after the increase in production because of the end of peak recovery in
	Materials and	Devices	demand from Covid-19 in the previous fiscal year.
		Solvents for	Semiconductor	The semiconductor market continues to grow against the backdrop of
		Electronic		strong demand from the previous year.
		Materials
	Safety	Inflators for	Automotive	Automobile production remains sluggish due to a shortage of
	Air Bag	semiconductors, the lockdown in China and other factors.
*TAC（Tri-acetyl cellulose）： Tri-acetate cellulose(TAC) for optical films	4
1st Quarter (Apr. to Jun.) of Fiscal Year ending March 2023 Consolidated Financial Results

2. External Environment

Trends in Market

Segment	Main Product	Main Market	Results of FY2023/3 1Q
		Raw Materials	The demand for vinyl acetate and PTA remained strong. On the other
		hand, the acetic acid market was on a downward trend partly due to the
	Acetyl	for Resins and	recovery in supply.
	Inks, Solvents	The demand for ethyl acetate also remained strong for various
	(Acetic Acid, Acetic
	for Paints	applications, including gravure inks. However, the market condition was
	Acid Derivatives		affected by the decline in the acetic acid market.
	and Acetate Tow）
Material		Fiber	The global market of filter industry, which is the main user of acetate tow,
		Filter	remained strong in the Asian region.
	Chemical	Raw Materials	The automotive market, which is one of the main markets for epoxy and
	(Epoxy,
	for Electrical	caprolactone derivatives, was weak due to the lockdown in China. In
	Caprolactone	Materials and	contrast, the semiconductor market, which is another main market of
	Derivatives and
	Other Chemical	Coatings	these products remained strong.
	Products）
		Automobile	The demand for Automobile Components was sluggish
	POM	Component	due to curtailment of auto production and the lockdown in China.
	Electricity,	The production of electronic devices such as smartphones and PCs, and
	PBT
	Electronic
Engineering	PPS	devices and	consumer electronics was weak due to the lockdown in China and
declining demand resulting from consumer purchasing reluctance
Plastic		precision	against the background of unstable social conditions.
		machines
	LCP	Electronic	Smartphone production declined due to the impact of lockdown in
	China and declining demand because of consumer purchasing
	Devices
		reluctance against the background of unstable social conditions.	5