August 12, 2022
Consolidated First Quarter Results
April 1, 2022 through June 30, 2022 of Fiscal Year Ending on March 31, 2023
Figures in Million Yen, unless otherwise noted
1. Revenue and Income

from April 1, 2022 through June 30, 2022
Revenue(Note1)

OperatingIncome

Ordinary
IncomeNet Income

Net Income
Per Share(Note1)

Current Fiscal Year (FY2023)
First Quarter (Q1)8,894761

944

1,150

108.49 Yen

Converted into Million
U.S. dollars (Note2)

68.5

5.8

7.2

8.8

US$0.83

Last Fiscal Year (FY2022) Q1

7,538427584416

41.22 Yen

Change to FY2023 Q1
from FY2022 Q1

1,355334360733－

Note1: “Net Income” in this paper is “Net Income attributable to owners of parent”
in current accounting standards
Note2: U.S. dollar amounts are converted from Yen, for convenience only,at the rate of US$1.00 = ¥129.73

Numbers by Quarter（in Million Yen）

Sales (Left-side Scale)Operating Income (Right-side Scale)

12,000

1,200
1,000

9,000

800
6,000
600
3,0004000▲ 3,000200

Apr-Jun
2021

Jul-Sep

Oct-DecJan-Mar2022

Apr-Jun02. Financial Status

June 30, 2022
Total AssetsNet Assets

Capital to Asset
Ratio

Net Assets
Per Share

End of FY 2023 Q1June 30, 2022

43,105

18,94634.4%

1,233.51 Yen

Converted into Million
U.S. dollars (Note)

315.3

138.6

-US$9.024

End of FY 2022
43,574
17,616
30.9%
March 31, 2022
Note: U.S. dollar amounts are converted from Yen, for convenience only,at the rate of US$1.00 = ¥136.69

1,113.45 Yen

3. Forecast of Current Fiscal Year, which will end on March 31, 2023
Numbers released on May 13, 2022
Revenue

Operating
IncomeFirst Half

16,000300

Whole fiscal year

33,5001,000Ordinary
Income(Note)(Note)

Net Income

Net Income
Per Share

35050044.34 Yen

1,100

1,000

88.67 Yen(Note)

Net Income

Net Income
Per Share

Revised Numbers released on July 22, 2022
Ordinary
Income(Note)

Revenue

OperatingIncome

First Half

17,000

900

1,100

1,250

115.71 Yen

Whole fiscal year

34,500

1,500

1,550

1,500

134.99 Yen

Note: “Net Income” in this paper is “Net Income attributable to owners of parent”
in current accounting standards

Observation of Current First Quarter Result
During the First Quarter (Q1) of the Fiscal Year (FY) 2023 (April toJune, 2022), the sales of Semiconductor-related products and toner productsthat occupy large portion of TOMOEGAWA’s consolidated revenues, kept its
strong pace since last FY.

Also, progress of Yen depreciation increased

Yen-denominated value of overseas sales.

As a result, we recorded Q1

sales of ¥8,894 million, up ¥1,355 million or +18.0% from that of previous FY.
As for the profit, our consolidated Operating Income was ¥761
million, up ¥334 million or 78.1% from last FY Q1 number.

Factors

contributed to this increase are the Fixed Cost reduction effect derived fromthe shutdown of No.9 Paper Milling Machine that was our largest production
equipment, the sales increase that includes Yen depreciation effect, and thesales price increase to pass along related cost increases.

The effects of

those are large enough to absorb the material and fuel cost increase caused
mainly by the Ukrainian situation and Yen depreciation.
The consolidated Ordinary Income is ¥944 million, up ¥360 million or
61.6% from that of last FY Q1, thanks largely to the equity gain from anaffiliated company that handles processing of optical film used for displays.
Net Income is ¥1,150 million, up ¥733 million or 175.9% from that oflast FY Q1. The gain from the sales of the US toner factory site where theoperation ended in September 2020, is the main reason of this increase.

The Projection of the reminder of FY2023
On July 22, 2022, TOMOEGAWA made upward revision of its
business forecast of FY2023, originally released on May 13, 2022, based on
the assumption that exchange rate around 130 Yen per USD will continue
throughout the current FY.
Since the start of 2nd Quarter (July to September 2022), the marketof display-related products started to show the sign of weakening.

Also, theoutlook for our main business of toner products and semiconductor-related
products are now becoming unclear.
The effect of material and fuel cost increase will start to materialize
during the Second Quarter, as the products manufactured under the priceincrease-reflected cost system go on to the market.
Also, the expected negative effect on toner business from thedifficulty for raw material procurement due to the shortage of certain
supplier’s ability to supply, have not materialized so far, thanks to theprioritized production of high-margin toners and introduction of raw material
from other suppliers.

The effect of procurement difficulty will start to appear

in the second half of current FY.
To navigate under such a difficult situation, we will further strengthen
the approaches of sales price increase to pass on cost increase, and ofproduction cost reduction through productivity improvement.

By doing so, we will make sure to achieve the numbers weannounced in revised forecast.
Your continuous support of TOMOEGAWA will be greatly appreciated.