Business Results for the First Quarter of
Fiscal Year Ending March 31, 2025
(April 1, 2024 － June 30, 2024)
August 9, 2024

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Financial Results for the Q1 FY2024• Net sales increased significantly by 21% YoY to 9,216 million yen, thanks to inventory
adjustments coming to an end and a rapid recovery in sales of advanced semiconductormaterials.
• Operating profit was 1,302 million yen, up 56% YoY, thanks to increased sales.
YoY(Million yen)

Q1 FY2023
Results

Q1 FY2024
ResultsChange%Net sales

7,611

9,216+1,604+21%

Operating profit

834

1,302+467+56%

Ordinary profit

820

1,424+603+74%

Profit552

968+416+75%¥136/$¥154/$FX Rate (USD)

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2

Variance Analysis: Operating profit• Increased sales absorbed increased costs for production capacity expansion, resulting in a 56%
increase in profit over the same period of the previous year.
(Billion yen)

+0.69

+0.07
FX

−0.11

−0.18
1.3

Inventory Valuation
Increase inproduction costs
such as personnel,
etc.

0.83+56%+¥0.46 billion

Sales GrowthOperatingprofit

FY2023 Q1※Investments to increase
production capacity areprogressing according to themid-term plan.

Operatingprofit

FY2024 Q1Copyright © Toyo Gosei Co., Ltd. All rights reserved.

3

Quarterly Sales & Operating profit Trends• Inventory adjustments from FY2022 Q2 have settled down and quarterly sales have returned torecord highest level ever.
Quarterly Sales & Operating profit(Million yen)

10,000(Million yen)

Sales Recovery

9,232

9,216

8,000

2,000

1,600

1,302
6,000

1,200

4,000

800

2,000400Net sales
Operating profit

00Q1Q2Q3

FY2022Q4Q1Q2Q3

FY2023

Q4Q1

FY2024
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4Photosensitive Materials Segment
Net sales & Operating profit(Million yen)
6,000

Net sales
Operating profit

5,615(Million yen)
1,500

5,285
4,832
4,466
4,000

4,477
1,000

913

630

574
446

2,000

500

222

00Q1Q2Q3

FY2023

Q4Q1Net sales: ¥5,285 million
YoY: +¥453 million, +9%• Sales of semiconductor materials are recovering,
especially in cutting-edge fields, and are expanding.
• Regarding display materials, panel production has
been maintained at a certain level, mainly in China, anddemand for our company has been strong.

Operating profit: ¥630 million
YoY: +¥56 million, +10%
• Increased demand absorbed increased costs
associated with increased production capacity,resulting in higher profits.

FY2024
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5

Chemicals Segment
Net sales & Operating profit(Million yen)
5,000Net sales
Operating profit(Million yen)
1,500

Net sales: ¥3,930 million
YoY: +¥1,151 million, +41%

3,930

4,000
3,563
3,245
3,000

1,000

2,977
2,778

671
2,000

417

437500• In the electronic materials sector, inventory
adjustments have been completed and sales ofadvanced semiconductor materials have surged.
• Sales of flavor and fragrance materials increased as
demand continued to recover.
• In logistics, tank contract rates remained high despitesluggish cargo movement.

Operating profit: ¥671 million

1,000
260

240

00Q1Q2Q3

FY2023

Q4Q1

YoY: +¥411 million, +158%• Profit increased 2.6 times YoY thanks to increased
demand.

FY2024
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6

Q1 FY2024 Income Statement•••

Net sales were 9,216 million yen (YoY +21%).
Gross profit increased by 554 million yen as sales growth absorbed increased expenses, and the gross profit margin improved by 1.8 points to 26.1%.
Operating profit increased by 603 million yen thanks to foreign exchange gains, and the operating profit margin improved by 4.7 points to 15.5%.

(Million yen)
Net sales

Cost of sales
Gross profitSG&A expenses

Operating profit
Non-operating income
Non-operating expenses
Ordinary profit
Extraordinary income & losses
Profit before income taxes
Income taxes
ProfitQ1 FY2023

Q1 FY2024

Change%

7,611
5,757
1,853
1,019
834
15
29820
(15)
804
252
552

9,216
6,808
2,408
1,105
1,302
176
54
1,424
(26)
1,398
429
968

+1,604+1,050+554+86+467+160+24+603
(10)
+593
+177
+416

+21%
+18%
+30%
+8%
+56%
－+84%
+74%
－+74%
+70%
+75%

Gross profit Margin
24.4%→26.1%
Improved by 1.8 points

Ordinary profit Margin
15.5％

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Q1 FY2024 Balance sheet•

Working capital improved by 1.2 billion yen thanks to sales expansion.

•Due to continued capital investment to increase production capacity, tangible fixed assets increased by 868 million yen andborrowings increased by 1,718 million yen.

•Thanks to the increase in profit, shareholders' equity increased by 809 million yen. The equity ratio rose to 37.2% (+0.5pt).
Mar. 2024
endedJun. 2024
ended

Change22,68223,204+521

Cash and deposits

3,645

3,519(125)Notes and accounts
payable – trade

Notes and accounts
receivable – trade

7,222

6,977(245)

Inventories

10,338

10,976+637

Other

1,475
36,834

1,730
37,647+255+812

Property, plant andequipment

33,862

34,731+868

Intangible assets

1,579

1,650+71

Investments and otherassets

1,393

1,265(127)59,51760,852+1,334(Million yen)

Current assets

Fixed assets

Total assets

Mar. 2024
endedJun. 2024
ended

Change37,691

38,185+493

4,009

5,552+1,543Borrowings

22,00823,727+1,718

Other

11,6738,905(2,767)

021,8250
22,666+0+84021,63522,444+809

190

221+3000+059,517

60,852+1,334(Million yen)

Liabilities

Net assets
Shareholders’ equity
Valuation and translation
adjustments

Liabilities and net assets

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8

Progress of First Half Earnings Forecasts• Progress rates for the first quarter against the first half forecast were 51% for net sales, 84% foroperating profit, and 95% for ordinary profit.
• The rapid recovery in demand has improved operating rates and accelerated profit progress.

(Million yen)

H1 FY2024
Forecasts

Q1 FY2024
Results

Progress
Ratio

Net sales

18,0009,21651%

Operating profit

1,550

1,302

84%

Ordinary profit

1,500

1,424

95%

Profit

1,000

968

97%

¥148/$¥154/$FX Rate (USD)

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9

Revision to Earnings Forecasts for the FY2024•

The first-half earnings forecast was revised upward as demand in the semiconductor market has recovered more quickly thaninitially expected.

•For the second half of the year, the previously announced forecast includes the continuation of the demand recovery from the first

half, and the forecast remains unchanged.
•Full-year net sales are expected to reach a record high.

H1 FY2024

FY2024 Full Year

(Million yen)Previous
Forecasts

Revised
Forecasts

Change%Previous
Forecasts

Revised
Forecasts

Change%Net sales

18,50018,700+700+4%

37,50038,200+700+2%

Operating profit

1,550

2,050+500

+32%

3,100

3,600+500+16%

Ordinary profit

1,500

2,000+500

+33%

3,000

3,500+500+17%

Profit

1,000

1,350+350+35%

2,150

2,500+350+16%

FX Rate (USD)¥148/$¥148/$¥148/$¥148/$
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10

Sales and Operating profit Forecasts by Half Year
• Upwardly revised H1 FY2024 forecast to net sales of 18,700 million yen (+700 million yen) and operating profit of
2,050 million yen (+500 million yen).
• For the second half of the year, the forecast remains unchanged at net sales of 19,500 million yen and operating
profit of 1,550 million yen.

Half-year sales and operating profit(Million yen)
25,00020,00018,700Net sales

17,553

16,901

16,603(Million yen)
5,000

19,5004,000+¥700M

15,05515,000

3,000

2,852
10,000

RevisedOperating profit

1,550

2,214

2,115
1,297

RevisedPrevious

5,000

2,050
+¥500M

2,000

1,000

00
H1H2
FY2022

H1H2FY2023

H1

H2
FY2024
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11Outlook for operating profit and fixed cost increase
Operating profit and increase in fixed costs(Billion yen)

2.21

1.29

H1H2
FY2023※ No change from the initial plan

Operating profit• Investments to increase production capacity in
1.55
response to growing demand are proceeding asplanned.
+¥1.03 Billion• The Chiba Plant's No.4 photosensitive materials
Fixed costs
plant is scheduled for completion in September
2024 with a production line for advanced products+¥1 Billion(investment of 12 billion yen).
※Expanded production capacity of advanced
products by 1.8 times.
• With the start of operations, fixed costs areexpected to rise by 1.03 billion yen in the second
half of the year compared to the first half.
H1H22.05

FY2024
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12Reposted) Progress and Plans for Capital Investment ※ No change from the initial plan
•The Chiba Plant's No. 4 photosensitive materials plant is scheduled for completion in September 2024 with a production line foradvanced products.

•Large-scale investments to increase production capacity under Beyond 500 (current mid-term plan) are scheduled to becompleted this fiscal year. FY2023

FY2025

FY2024※Advanced Products:ArF, EUV Materials

Expanded production capacity of advanced products by 1.8 times

Capacity expansion of No.4 Photosensitive
Materials Plant’s
Photosensitive
Materials
Segment

Qualification

Operation Start

Scheduled for completion in September 2024.

Construction of
Photosensitive
Materials R&D / QC
CenterOperation Start

Strengthening
Development Capabilities

Completed in May 2024

Solvents for semiconductors, shipment capacity tripled from previous level
Chemicals
Segment

Qualification
Awaji Plant’s No.2
Indoor Filling Station

Operation Start

Completed in March 2024

Capacity expansion of existing facilities
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13

Appendix

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Reposted) CAPEX, Depreciation & R&D Plans••••

In FY2023, the company invested 10.1 billion yen in facilities, including construction to increase the capacity of the No.4 photosensitive materials
plant for advanced products and the No.2 indoor filling station at the Awaji Plant (already completed).
For FY2024, the company plans to invest 9.2 billion yen in facilities (calculated as acceptance inspection base), including a Photosensitive Materials
R&D / QC Center (completed in May) and capacity expansion at its No. 4 photosensitive materials plant (to be completed in August).
Depreciation is expected to increase due to the completion of large facilities.
In R&D, in addition to product development, strengthen manufacturing technology capabilities (analysis/analysis, process development) to improve
productivity and quality.
Fiscal discipline is also maintained, including risk management.

CAPEX, Depreciation & R&D Plans(Million yen)

12,000

CAPEX

10,16010,000

9,241

8,000

6,000

5,258

4,027

4,000

3,053

2,311
2,000

Depreciation

5,200

2,579
1,029

876

2,797

2,898
1,267

1,078

R&D

1,6320FY2020

FY2021

FY2022

FY2023

FY2024
Forecasts

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15独創的な視点で世界へ
Individual Development, to the global Chemical

東洋合成工業株式会社(Note):
The forecasts made in this document contain a variety of uncertain factors since it has been prepared based on
judgments from information that is currently available.
Therefore, actual business results may differ from those projected, depending on factors and risk such as the economic
status of the market surrounding the company, and do not perform any strict promise and guarantees.