Life Science Business Division

Business Briefings
September 29, 2023

© 2023 Tokuyama Corporation. All rights reserved.

Contents

1.

Life Science Business Field

2.

Dental Materials and Equipment3.

Eyeglass Lens Materials

4.

Active Pharmaceutical Ingredients (APIs)and Intermediates

5.

Technology Topics- Radiation Protection Materials- Cosmetics Related Materials© 2023 Tokuyama Corporation. All rights reserved.

11. Life Science Business Field© 2023 Tokuyama Corporation. All rights reserved.

2

Overview of the Life Science BusinessTrends in Net Sales (From FY2016)*

Business Domain（Billions of yen）
4.5
4.0

▶ Active Pharmaceutical Ingredients (APIs)

3.5and Intermediates

3.0▶ Eyeglass Lens Materials

2.5▶ NF (Microporous films)

2.0
1.5

▶ Healthcare Materials

1.0▶ Dental Materials and Equipment

0.50（Tokuyama Dental Corporation）（FY）*Until fiscal 2020, prepare data based on the total sales of the relevant profit center▶ Medical Diagnosis Systems（A&T Coporation）© 2023 Tokuyama Corporation. All rights reserved.

3

Goal of the Life Science Business

Use unique technology to capture top niche market share in areas where we candifferentiate our products from competitors’: vision, dental, and diagnostics
Operating profit by segment
OthersPriority Measures（FY2022）¥2.0billion

Chemicals¥6.8 billion

Electronic & AdvancedMaterials¥7.0 billion

OperatingProfit¥14.3 billion（FY2022）

Life Science¥7.3 billion
Adjustment and corporate-wide expenses ・・・ ¥ - 5.3 billion
Eco Business ・・・・・ ¥ 0 billion
Cement ・・・ ¥ - 3.7 billion▶ Strengthen the marketing system and accelerate
expansion of production capability to further boost
market share of dental materials outside Japan▶ Develop new products and strengthen sales
activities to further expand the photochromic
market outside Japan▶ Strengthen the medical diagnostic systemsbusiness© 2023 Tokuyama Corporation. All rights reserved.

4

2. Dental Materials and Equipment© 2023 Tokuyama Corporation. All rights reserved.

5

Dental Materials and Equipment
FY2022 Results▶Tokuyama Dental Corporation began commercial
operations of a new production line (MD-7) at theKashima Factory in October 2022
▶Composite resin business expanded worldwide due toincreased shipments to overseas markets and increased
sales to Europe, the US, and emerging countries▶Sales of blocks for dental crowns increased

Future Plans and Investments▶Further grow overseas market share by reinforcing
the sales structure❶ Cavity
preparation
窩洞形成❷ Bonding
application
ボンディング塗布❸ OMNICHROMA ❹ Light curingfilling
オムニクロマ充填
光照射❺ Finishing,
仕上げ・研磨・完成
polishing, andcompletion

OMNICHROMA FLOW in artificial teeth (Before and after light-curing)
BeforeAfter▶Accelerate improvements to the supply system byadding a new production line (construct a new facility(MD-8) )© 2023 Tokuyama Corporation. All rights reserved.

6

Composite Resin (CR)Tokuyama Dental Corporation▶Steady progress in acquiring customers in
Share of the US CR market

Trends in the Percentage of Overseas Net Sales

Trends in thePercentage ofOverseas Net Sales

Sales Expansion Strategy Centeredon OMNICHROMA

Share ofthe US CR market▶Work to further bolster sales promotion bymaking full use of exhibitions, online
marketing, and sampling▶Sales also on a growth trajectory in theOMNICHROMA launchedin Chicago in 2018

(FY)

the US, the company’s most important
market; jumped to third place in terms ofmarket share by product in the CR market

Middle East and Brazil(Year)
Share of the US CR market / Source︓SDM Northcoast Data

© 2023 Tokuyama Corporation. All rights reserved.

7

CR Share in Major Countries
CountryCR Share*/％

Population**/Billions

USD GDP**/PersonItaly

160.059

34,113

France100.066

42,636

Germany

80.084

48,636

Poland80.03818,280

United States

50.334

76,348Brazil50.214

8,995

India

51.423

2,379

China

01.413

12,814

Indonesia

N.D.

0.275

4,798

Japan

140.125

33,822*CR share : our estimate**Based on 2022 IMF data

Map Showing the Relative Sizes of Global Markets for Dental Materials
and Equipment

Circle size: Market size Color: Growth potential© 2023 Tokuyama Corporation. All rights reserved.

8Blocks for Dental Crowns
Introduction of New ProductCategories as Digital-Related Products▶Rapid expansion in domestic demand for blocks fordental crowns (start of insurance coverage)▶Further growth in the customer base centered ontechnical laboratories going forward amid positive
steps to resolve supply shortages and rapid expandin domestics sales

Computer-generated
tooth design

完成

MixingApplication

Hybrid resin block

Cutting process in line withdesign data utilizing a dedicatedmachineEnd-product▶Further sales expansion with the start of overseassales▶Dental 3D printing
Recognizing the significant improvement inworkflows at dental clinics and laboratories as wellas the substantial reduction in patient chair time,the dental 3D printing market continues to growamid the ongoing development of dental-relatedmaterials, including 3D printing resins

Air blowing

Paste application

Prosthetic pressure welding,excess cement removal

Final light curing(At least 20 seconds)© 2023 Tokuyama Corporation. All rights reserved.

9Plan for the Construction of the MD-8 Facility▶Above-ground two-story facility (on thegrounds of the Tokuyama, Kashima Factory)
located in Kamisu-shi, Ibaraki Prefecturewith a total floor area of approximately
6,000 m2

▶Construction commenced in April 2023;

scheduled to come online in October 2024

▶Manufacture of composite resin andCAD/CAM resin blocks▶On completion, this facility will roughly double

the manufacturing capacity for productkneading, filling, packaging, etc.

© 2023 Tokuyama Corporation. All rights reserved.

10

Overseas Expansion of the Dental Materials BusinessTokuyama Dental America（US、Canada）

Most important region
CR share 5.7% ⇒ Over 10%; strengthen digital marketing

Tokuyama Dental Deutschland
Tokuyama Dental Italy（Europe, Turkey, Africa）
Brazil, Latin America
Expand sales in whitening/CR veneers

Kashima
Factory

Middle East, India

Commence full-scale sales to the world’s
most populated market

China
Conduct market research for future strategic planning

AfricaConsider full-scale entry from the second half of FY2023© 2023 Tokuyama Corporation. All rights reserved.

11

3. Eyeglass Lens Materials© 2023 Tokuyama Corporation. All rights reserved.

12

Eyeglass Lens Materials
FY2022 Results▶Global market share increased steadily due tothe strong performance of photochromic materials
for eyewear lenses

Future Plans▶Further differentiate performance through thedevelopment of next-generation photochromicmaterials▶Expansion into product lineups other than lenses(Sheets, digitally compatible lens materials, etc.)© 2023 Tokuyama Corporation. All rights reserved.

13

Tokuyama’s Competitive Advantage
Molecular design of photochromiccolorings and matrixes (polymer)

Assigning technology to maximize
coloring performance

Responding tovarious customerneedsManufacturing technologies andquality control that enable theproduction of a wide variety ofproducts in small quantities© 2023 Tokuyama Corporation. All rights reserved.

14

4. Active Pharmaceutical Ingredients (APIs)and Intermediates© 2023 Tokuyama Corporation. All rights reserved.

15

Active Pharmaceutical Ingredients (APIs) and Intermediates
FY2022 Results▶ Increase in earnings owing mainly to robust
sales volumes of generic pharmaceuticals▶ Impact also on the buildup of inventory bygeneric drugmakers▶ Favorable evaluation of the Company’s qualitycontrolFuture Plans▶ Build a supply chain for stable supply▶ Develop high-rarity APIs and strengthen

competitiveness© 2023 Tokuyama Corporation. All rights reserved.

16

Toward the Future of the Generic BusinessHighly reliable supply
system based on organic
synthesis technology

Provide cost and quality thatsatisfy the expectations andrequirements of our business
partners

Strengthen collaborative ties
including CDMOs in India andChina in addition to Japan

Development of high-rarity
generic APIs

(partial equity investment in Japan)

Kashima Factory© 2023 Tokuyama Corporation. All rights reserved.

17

5. Technology Topics
Radiation Protection Materials
Cosmetics Materials 〔Airlica™〕© 2023 Tokuyama Corporation. All rights reserved.

18

Development of Radiation Protection Materials[Development] Steps are also being taken to develop soft rubber-like, sheet-type protective
materials for a wide range of applications in fields such as medicine.
Built-in type full-face dust mask (inner shield)

Rubber sheet protective materials

DesignAssemblybuilt-in mask
© 2023 Tokuyama Corporation. All rights reserved.

19

Development of Radiation Protection Materials【Overview】
Development of lead-free, eye-protecting materials used indecommissioning work at the Fukushima Daiichi Nuclear PowerPlant under the supervision of Tokyo Electric Power Company
Holdings, Inc. Tokuyama is looking into developing goggle-type
masks for stand-alone use, shields for use with full-face dust
masks, and rubber-like sheets for use as window materials.

Radiation protection goggle

Type A（Lightweight type）

While protection against X-rays at 120 kV is about 0.10士0.02
mmPb/2.5mm～0.12士0.02 mmPb/2.5 mm*) (2.5 mm thickmaterial is equivalent to 0.1-0.12 mm lead foil), final radiation
protection performance, shape, and specifications are currently
being adjusted.
Type B (Combination type with corrective eyewear）* Measurement results by Tokyo Metropolitan Industrial Technology Research Institute© 2023 Tokuyama Corporation. All rights reserved.

20

Cosmetics Materials : Airlica™
Spherical silica aerogel powder manufactured by the Company’s patented technology.
Useful characteristics as a raw material for cosmetics.

Product Attributes

Primary particle
diameter : 4nm

Pore diameter: approx.40 nm

Effects▶Extremely porous▶High oil absorption▶Spherical and uniform▶Smooth skin feelparticle size

▶10μm sphericalparticles▶Naturally derived
ingredients, etc

Adsorbs sebum and prevents makeup from fading
Superior feel compared with general aerogel▶Soft focus (Light diffusion effect)

Conceals roughness of skin and yields beautiful
skin effect▶Highly safe

Attractive to cosmetics manufacturers with a highsensitivity to safety and the environment© 2023 Tokuyama Corporation. All rights reserved.

21

Airlica™
Favorable evaluation toward the level of efficacy; decision by a major cosmetics manufacturer to adopt for use
in its high-end line; sales from the next fiscal year
Examples of application

Soft Focus Effect

Airlica™

Resin beads

Comparison with the soft focus properties ofsilicone resin with 2% Airlica™ and the additionof resin beads; soft focus (blurring) effect ishigher with Airlica™

Cultivate users
and expand sales
through
formulation
proposal-basedmarketing▶Powder foundation▶Liquid foundation

Airlica™ formulated samples(in-house formulation)© 2023 Tokuyama Corporation. All rights reserved.

22