Toyo Ink SC : Presentation data of First Half of FY2022 Results Briefing

Toyo Ink SC Holdings Co., Ltd.

First Half of FY2022 Results Briefing

Content

• Summary of Consolidated Business Performance
• Summary of Performance by Segment/results for First Half
• Initiatives for Second Half
• ESG Topics

• [Reference]
  Overviews of Balance Sheet and Profit & Loss Statement Performance by Region and by Segment
  Major products and applications

Date of Results Briefing : August 19, 2022

Release date of Presentation data of Results Briefing : August 17, 2022

The forecast or projections in this presentation are based on the assumptions and beliefs of our management in light of the information available as of August 17, 2022. Changes in global, economic and business conditions could cause actual results to differ materially from these

forecasts. All amounts are rounded to the nearest 100 million yen.

First Half of FY2022 Results Briefing

Copyright © TOYO INK SC HOLDINGS CO., LTD. All Rights Reserved.

First Half of FY2022

Summary of Consolidated Business Performance

	1H, FY2021	1H, FY2022	Increase/
	decrease (%)
Net sales	139.4	154.8	11.1
Operating profit	7.2	4.6	-36.2
Ordinary profit	8.7	6.7	-22.3
Profit attributable to	6.3	8.4	33.1
owners of parent
Operating margin	5.2%	3.0%	-2.2 points
Overseas sales ratio	49.3%	52.5%	3.2 points

Assumed indexes for targets

	(Unit: 1 billion yen)
Initial full year targets	Revised full year targets
for FY2022	for FY2022
295.0	310.0
14.5	13.0
15.0	14.0
10.0	12.5
4.9%	4.2%

		2022	1H, 2022	1H, 2021			2022	1H, 2022	1H, 2021
		projections	avg.	avg.			projections	avg.	avg.
	1 USD	¥115.0	¥124.5	¥108.5	Raw material
Exchange	Naphtha (/KL)	¥60,000	¥75,350	¥43,250
1 EUR	¥130.0	¥135.2	¥130.5
rate
1 RMB	¥18.0	¥19.1	¥16.8			First Half of FY2022 Results Briefing
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First Half of FY2022 Summary of

Consolidated Business Performance

• Increased sales with lower operating profit: Sales increased year on year, but operating profit declined due to the surge in raw material prices.
• Sales: Increased in the main segments, particularly driven by the growth of overseas sales.
• • Materials for packaging, such as liquid inks, pressure sensitive adhesives and adhesives, among other materials, showed growth.
• Operating profit: Decreased due to the impact of surging raw material prices.
• Net profit: Exceeded the year-ago level.
• • Extraordinary income was posted due to the dissolution of capital alliance with SAKATA INX CORPORATION.

Billion yen

Changes in net sales

Billion yen

Changes in operating profit and net profit

150.0

10.0

100.0

Japan

5.0

50.0

Overseas

Operating

Consolidated

profit

Net profit

0.0

0.0

1H '20

1H '21

1H '22

1H '20

1H '21

1H '22

First Half of FY2022 Results Briefing

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First Half of FY2022 Analysis of Factors Behind YoY Difference in Operating Profit

Raw materials prices

Surging prices due to supply shortages resulting from the sharp recovery of market conditions.

1H,	Surging energy prices
Surging costs of petrochemical
FY2021
resources due to geopolitical

risks, etc.

		Increased costs
		Higher expenses attributable
		to the larger volume of sales
		that cannot be absorbed by
		cost reductions and
7.2 billion
yen		increases in logistics costs
	and depreciation

Price revision

Price revisions implemented both in Japan and overseas

					Exchange rate
					fluctuation	1H,
		Cost		+0.2
				FY2022
	reductions	+1.8
+8.9	+0.2

4.6 billion

yen

(Unit: billion yen)

-11.6-0.9

-1.2-0.0

Fall in prices

Increased sales

Higher sales mainly driven by the expansion of overseas sales, and the growth of high value-added products such as electronics.

First Half of FY2022 Results Briefing

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First Half of FY2022

Trends in Raw Material Prices and Price Revisions

Background behind the increase of raw material prices and forecast

• Conditions likely to remain harsh into the second half of FY2022 with respect to raw material prices
• • Rising demand for various types of raw materials amid the recovery of economic activity.
  • Surging energy prices and the supply shortage of raw materials due to the Ukraine situation, etc.
  • Surging transportation cost, reflecting distribution disruptions due to the COVID-19 pandemic and geopolitical risks
  • Rising prices of imported raw materials linked to foreign exchange rates (weakening of the yen)
  • Increased costs for actions to address the continuing enhancement of global environmental regulations

Impact on operating profit (1H of FY2022 compared with the previous year)

Impact of the surge in	Results of price revision
raw material and energy prices

-12.5 billion yen	8.9 billion yen
 Raw materials	 Titanium oxide	 Pressure sensitive		Flexographic inks
derived from naphtha	 Container (drum)	adhesives		Offset inks
 Organic solvents		 Laminating adhesives		Screen inks
 Resins / Resin raw		 Can coatings/resins		Pigments
materials		 UV-curable inks		Plastic colorants
 Pigments / Pigment	etc.	 Gravure inks		etc.
raw materials

Purchasing policy

Prioritize responsibility for product supply and then improve SCM and review raw materials.

First Half of FY2022 Results Briefing

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