Toyo Gosei : FY2022 1Q Business Results Presentation Material (from April 1, 2022 to June 30, 2022)

Business Results for the First Quarter of

Fiscal Year Ending March 31, 2023

(April 1, 2022 - June 30, 2022)

August 10, 2022

1

Financial Results for the Q1 FY2022

◼Net sales	・In electronic materials, strong demand for advanced semiconductor materials continues.
	There is also the impact of the depreciation of the yen.

• Operating profit ・Rises in raw materials, fuel, and freight costs (YoY +¥525 million) continued, and selling prices were reflected accordingly.
  ・Expenses for technology development for advanced semiconductor fields and production capacity enhancement (YoY +¥351 million) increased.
• Ordinary profit ・Foreign exchange gains due to yen depreciation (YoY +¥329 million).

	Q1 FY2021		Q1 FY2022		YOY
(Million yen)	Results		Results		Change	%
Net sales	8,309		9,232		+923	+11.1%
Operating profit	1,492		1,466		−26	−1.8%
Ordinary profit	1,475		1,788		+312	+21.2%
Profit	1,020		1,229		+209	+20.5%
FX Rate	¥110/$		¥136/$

2

Quarterly Sales & Operating profit Trend

• In the first quarter of the previous fiscal year, there was a temporary factor of last-minute demand prior to the surge in raw material prices.
• In the current fiscal year, although sales increased due to price reflections and volume increases, operating income decreased slightly due to increased expenses for technology development and production capacity expansion.
• Sales and profit growth trends continue.

Keep strong sales from second half and rush demand

Effect of expansion		Sales shift and
Effect of	recruiting expenses
works and equipment	increased
expansion works
repairs

9,232

1,466

Impact from raw materials, fuel and transportation cost increasing

3

Change analysis: Operating profit

• Partial price adjustment was made to reflect the impact of higher raw materials, fuel, freight and other costs. Sales volume of photosensitive materials and high-purity solvents also increased.
• Increase in expenses for technology development and production capacity expansion for advanced semiconductor fields.

(Million yen)

Increase in sales

volume, Selling price is +764 under increasing due

to high raw material prices.

1,492

Sales growth

Q1 FY2021

Operating profit

+162 +14

Operation

FX improvement

−90 −525

Inventory

revaluation

Impact from raw materials, fuel, consumables and transportation cost increasing

Increase in expenses for technology development and production capacity expansion for advanced semiconductor fields

−351

1,466

Expenses

increase

Q1 FY2022

Operating profit

4

Photosensitive Materials Segment

Net sales: 5,511 million yen

(YoY +443 million yen, +8.8％)

• Sales for Logic semiconductor applications are expanding.
• Sales for Memory and legacy semiconductor applications also increased.
• Sales Display applications are in an adjustment phase due to a decline in stay-at-home demand.

Operating profit: 998 million yen

(YoY −3 million yen, −0.4%)

• Increased costs due to rising raw material and fuel prices.
• Increase in expenses for technology development, production capacity expansion, etc.
• Sales and profit growth trends continue.

5