Toho Titanium : Notice of Difference between Previous Forecast and Actual Results for the Six Months Ended September 30, 2023, Revision of Financial Forecasts for Fiscal Year 2023 and Revision

October 26, 2023

Company name: Toho Titanium Co., Ltd.

Representative: Ysuji Yamao, Representative Director and President

Code number: 5727 (First Section of the Tokyo Stock Exchange)

Contact person: Hiromu Tomeba, General Manager, Planning, Corporate Management Division

Telephone: [phone]

Notice of Difference between Previous Forecast and Actual Results for the Six Months Ended

September 30, 2023, Revision of Financial Forecasts for Fiscal Year 2023 and Revision of

Dividend Forecast

Toho Titanium Co., Ltd. announced today difference between its forecasts announced on July 27, 2023 and the actual results for the six months ended September 30, 2023.

In light of recent business trends, we also announced on May 8, Revision to the forecasts for the fiscal year ending March 31, 2024 and Revision of Dividend Forecast as indicated below.

1. Difference between previous forecasts and the actual results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)

				(Millions of yen)
		Operating	Ordinary	Profit		Net Income
	Net sales	attributable		per Share
	income	income	to owners of
			(Yen)
				parent
Previous Forecasts (A)	37,700	1,200	1,500	1,000		14.05
Actual results (B)	36,649	2,341	3,182	2,436		34.24
Difference (B－A)	(1,051)	1,141	1,682	1,436		－
Difference (%)	(2.7)	95.1	112.1	143.6		－
Results for the six months	38,890	5,823	6,406	4,536		63.74
ended September 30, 2022
(Reasons for the difference)

Although net sales for the six months ended September 30, 2023 declined due to lower sales volume of THC catalysts, earnings exceeded the previously announced figures, mainly due to the progress of yen depreciation.

2. Revision of the consolidated financial forecast for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

				(Millions of yen)
		Operating	Ordinary		Profit	Net Income
	Net sales		attributable	per Share
	income	income		to owners of
			(Yen)
					parent
Previous Forecasts (A)	83,200	4,600	4,400		2,900	40.75
Revised Forecasts (B)	80,700	4,800	5,000		4,100	57.61
Difference (B－A)	(2,500)	200	600		1,200	－
Difference (%)	(3.0)	4.3	13.6		41.3	－
Results for the fiscal year	80,351	10,693	10,532		7,504	105.44
ended March 31, 2023
(Reasons for the revision)

Consolidated net sales for FY2023 are expected to decrease from the previous forecast due to lower sales volume of THC catalysts and ultra-fine nickel powder, mainly affected by the economic stagnation in China. Operating income, ordinary income, and net income attributable to owners of the parent for FY2023 are expected to exceed the previously announced forecasts due to a change in the assumed exchange rate from 130 yen/US$ to 140 yen/US$ in consideration of recent exchange rate trends, although the above-mentioned decrease in sales volume will be a factor in lower income.

3. Revision of Dividend Forecast
			Dividend per share (yen)
		End of	Year-end	Annual
		second quarter
Previous forecast			6.00	12.00
			14.00	20.00
			(Ordinary	(Ordinary
Revised forecast			dividend: 11.00)	dividend: 17.00)
			(Commemorative	(Commemorative
			dividend: 3.00)	dividend: 3.00)
Dividends that have been paid	6.00
in the fiscal year
Fore reference: dividends	in
the previous		11.00	19.00	30.00
fiscal year (ended March 31,
2023)
(Reasons for the revision)

The Company's policy regarding dividends is to determine dividends based on the return of profits to shareholders reflecting business performance, while giving due consideration to the Company's financial position, the need for internal reserves to strengthen the corporate foundation, and the

maintenance of stable dividends. Based on the above policy and the revised consolidated earnings forecast for the fiscal year ending March 31, 2024, we have revised our year-end dividend forecast from 6 yen to 11 yen per share.

In August 2023, we will celebrate the 70th anniversary of our founding. We would like to take this opportunity to express our sincere gratitude to our shareholders, customers, business partners, and all related parties for their support over the years. To commemorate this milestone and to express our gratitude to our shareholders, we have decided to pay a commemorative dividend of 3 yen per share as the year-end dividend for the fiscal year ending March 31, 2024. As a result, the year-end dividend for the fiscal year ending March 31, 2024 will be 14 yen per share, bringing the annual dividend to 20 yen per share.

Note: Business performance forecasts and other forward-looking statements contained in this document are based on the information that is presently available to the Company and on certain assumptions that the Company considers reasonable. The Company makes no representations that those forecasts and other forward-looking statements are achievable. Actual results may differ materially from the forecasts due to various factors.

End of Document