Tokyo Ohka Kogyo : Announcement of the TOK Group's Medium-Term Plan

1. Summary of "tok Medium-Term Plan 2021 (FY2019-FY2021)"

Successfully returned to a growth trajectory amid rapidly changing external environment

The company-wide policy of tok Medium-Term Plan 2021 which started in 2019 was to "aim to become an Only One, Number One Company" to differentiate from other companies and to achieve the numerical targets for our "overarching aspiration for 2020" in the final year of the Plan. However, the external environment had changed drastically over the three years subject to tok Medium-Term Plan 2021 (from 2019 to 2021).

2019: Escalation of the U.S.-China trade friction/year-on-year contraction of semiconductor market (calendar year basis)

2020: COVID-19 pandemic

2021: Semiconductor shortage/COP26

Under such circumstances, net sales achieved the higher end of the target range and both operating income and ROE exceeded their respective targets.

Performance targets

tok Medium-Term Plan 2021	FY 21/12 Result
Net sales	: 125.0~145.0 billion yen	140.0 billion yen
Operating income	: 15.0~20.5 billion yen	20.7 billion yen
ROE	: Over 8.0%	11.5%

2. tok Medium-Term Plan 2024 (FY2022-FY2024)

1. ―Contribute to achieving SDGs through five strategies―

2. Increase global market share of cutting-edge photoresists

Increase the market share of cutting-edge photoresists, the Group's growth driver, to establish a solid position as the e-Material Global Company and offer technology, quality, environment, and added value that contribute to the customers' value creation processes.

(2) Acquire and create core technologies in electronic materials and new fields

Create new businesses comparable to photoresists and high-purity chemicals, pillars of our current business, with an eye on becoming a 100-year company.

1. Secure stable supply of high-qualityproducts and establish an optimal production system for the Group Establish an optimal production system by rapidly and accurately adapting to changes in external environment and capturing customers' requests that are becoming more sophisticated and complicated.
2. Improve employee engagement and promote people-oriented management

Create an environment to increase happiness and productivity of individual employees as well as provide education or system to leverage their strengths, implementing measures to generate the sense of fulfillment and support their growth.

(5) Build sound and efficient management foundation

Implement the four strategies above achieving maximum performance and build a management foundation to further develop the Group. Enhance the Group's governance by realizing eco-friendly production, information/risk management, and compliance at a high level.

Also adapt to continuously changing external environment by improving the digital environment of the company toward smart manufacturing and data utilization.

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(2) Shareholder returns and dividends

• Updated the dividend policy with the objective of steadily and continuously returning profits to shareholders

⇒New dividend policy: Aim for DOE of around 4.0% (from FY2021)

• Flexibly conductshare buyback as a means of returning profits to shareholders

(Reference)

4. TOK Vision 2030

1. Management Vision
   "The e-Material Global Company" contributing to a sustainable future through Chemistry.
2. Overarching Aspiration Qualitative Aspects
   Provide new added value that inspires customers Earn trust from stakeholders worldwide
   Continue developing high technological capabilities and show international presence Enhance corporate value sustainably with an aim to contribute to SDGs
   All employees can work lively with pride Quantitative Aspects
   Net sales : 200.0 billion yen (FY2030)

EBITDA : 45.0 billion yen (FY2030)

ROE : Over 10.0% (FY2030)

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1. Management strategy
   Deepen and cultivate electronic materials field Create new business
   Utilize global personnel Renovate production sites Address key social issues sustainably
   Develop and effectively use financial position"To be an acquirer" "Not to be an acquiree"
   Promote DX

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For contact: Corporate communication Division

Tel. + 81-44-435-3000

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