Q1 Fiscal 2023 - Apr 1, 2023 to Jun 30, 2023-

Presentation forIR Meeting
July 27, 2023

Key points of the first quarter of fiscal 2023
• Despite progress in revising sales prices for cement and other products,
net sales remained on the same level as the corresponding period of theprevious fiscal year due to sluggishness in the semiconductor market andin overseas market conditions for chemicals.
• Despite a downturn in the coal spot price, operating profit remained at thesame level as the corresponding period of the previous fiscal year due tothe impact of inventories. The effects of falling prices are expected toemerge in the second quarter and thereafter.
• Despite an outlook for lower production costs due to a drop in coal prices,
the Company has delayed making results forecasts for the current period
given growing future uncertainty.

© 2023 Tokuyama Corporation. All rights reserved.

2

CONTENTS➊ Financial Results for Q1 FY2023➋ Performance Forecasts for FY2023➌ Topics➍ Supplementary Material© 2023 Tokuyama Corporation. All rights reserved.

3❶ Financial Results for Q1 FY2023
1. Financial Highlights
2. Net Sales / Operating Profit byBusiness Segment
3. Changes in Operating Profit
4. Changes in Net Sales / Operating
Profit by Business Segment© 2023 Tokuyama Corporation. All rights reserved.

© 2023 Tokuyama Corporation. All rights reserved.

4➊ Financial Results for Q1 FY2023

1. Financial Highlights
Q1 FY2022(Billions of yen)
Q1 FY2023

Difference
AmountMain changing factors%

Revised sales prices for cement,chemicals, and other products
Robust sales of life science related
products
Revised sales prices for cement,chemicals, and other products
Robust sales of life science relatedproducts

Net sales84.0

84.8+0.8+1

Operating profit

5.1

5.1+0.0+1

Ordinary profit

7.1

5.6(1.4)(21) income/expenses

Profitattributable to owners ofparent
Basic earnings per share(yen)
Exchange rate (yen/USD)
Domestic naphtha price (yen/kl)

Deterioration in non-operating
Lower ordinary profit
Improved extraordinary
income/losses

4.4

4.3(0.1)

(4)

62.29

59.82

---

130

137-

--

86,50066,700---© 2023 Tokuyama Corporation. All rights reserved.

5➊ Financial Results for Q1 FY2023

1. Financial Highlights(Billions of yen)

As of Mar 31,2023

As of Jun 30,2023

Total assets

478.3

476.3

(1.9)

Lower accounts receivable trade

Shareholders’ equity

229.4

233.0+3.6

Posting profit attributable toowners of parent

Shareholders’equity ratio

48.0%

48.9%

+0.9pts

Interest-bearing debt

142.4

144.6

+2.1

D/E ratio

0.62

0.62

+0.00

-

Net D/E ratio*

0.32

0.31

(0.01)-

3,189.01

3,239.04--

Net assets per share(yen)Difference

Main changing factors

Increase in long-term loanspayable*Net D/E ratio: (Interest-bearing debt – Cash and deposits, Cash equivalents, Money in trust)/Shareholders’ equity© 2023 Tokuyama Corporation. All rights reserved.

6➊ Financial Results for Q1 FY2023

2. Net Sales/Operating Profit by Business Segment(Year-on-year change)

Q1 FY2022
Net sales

Q1 FY2023

Operating profit

Net sales(Billions of yen)

Difference

Operating profit

Net sales

Operatingprofit%%

Chemicals

31.6

4.2

28.6

2.0

(3.0)

(10)

(2.1)

(51)

Cement

14.5

(0.3)

16.4

0.4＋1.9＋14＋0.7-Electronic &Advanced Materials

20.4

1.3

18.3

0.7

(2.1)

(10)

(0.6)

(47)

Life Science

8.3

1.3

10.1

2.1＋1.8＋22＋0.7＋56

Eco Business2.5(0.1)

2.7(0.3)＋0.1＋8(0.1)-Others

9.6

0.5

11.1

1.0＋1.4＋15＋0.4＋95

Total

87.2

7.0

87.5

6.1＋0.3＋0(0.9)(13)

Inter-segment
eliminations andcorporate-wide expenses

(3.2)

(1.9)

(2.6)

(0.9)

＋0.5

-＋0.9

-

Consolidated
Results

84.0

5.1

84.8

5.1＋0.8＋1＋0.0＋1(Note) Sales and operating profit in each segment shown above include inter-segment transactions© 2023 Tokuyama Corporation. All rights reserved.

7➊ Financial Results for Q1 FY2023

3. Changes in Operating Profit(Year-on-year change)(Billions of yen)

By Factor
Revision of sales prices (+)(1.3)
Impact of inventories of coal (-)

＋7.1

(1.5)
5.1

22年6月期Q1 FY2022

(1.6)

5.1

(2.6)

原燃料
Raw material and
単価差
fuel
price

数量差
Sales volume

販売価格差
Selling price

原単位・Improvement of操業度変動他
operation

その他
Others23年6月期Q1 FY 2023

© 2023 Tokuyama Corporation. All rights reserved.

8➊ Financial Results for Q1 FY2023

4. Changes in Net Sales / Operating Profit by Business Segment(Year-on-year change)

Chemicals

Lower earnings on Lower sales(Billions of yen)

31.6

28.6

Net Sales

4.2

Operating Profit

2.0
Q1 FY2022
31.6
4.2

28.6

(Soda ash and calcium chloride)• Despite lower sales volume, earnings increased owing tosuccessful efforts to revise sales prices
29.8

28.6
2.1

0.5
Q1/FY22Q2/FY22(Caustic soda)• Despite a decrease in sales volume, earnings grew owing tosuccessful efforts to revise sales prices in Japan(Vinyl chloride monomer (VCM) / Vinyl chloride resin)• Earnings declined due to sluggish overseas market conditions

Q1 FY2023

26.1

Qualitative information

2.0(0.0)
Q3/FY22

Q4/FY22

Q1/FY23© 2023 Tokuyama Corporation. All rights reserved.

9➊ Financial Results for Q1 FY2023

4. Changes in Net Sales / Operating Profit by Business Segment(Year-on-year change)

CementEarnings improved on higher sales(Billions of yen)

16.4

14.5

Operating Profit

0.4(0.3)
Q1 FY2022
14.5(0.3)

Q1/FY22Net Sales

Qualitative information(Cement)• Earnings improved due to domestic shipments remaining in linewith the corresponding period of the previous fiscal year and tosuccessful efforts to revise sales prices.

Q1 FY2023

14.3(1.4)

Q2/FY2214.9(1.0)

Q3/FY2214.6(0.8)

Q4/FY2216.4

0.4

Q1/FY23© 2023 Tokuyama Corporation. All rights reserved.

10➊ Financial Results for Q1 FY2023

4. Changes in Net Sales / Operating Profit by Business Segment(Year-on-year change)

Electronic & Advanced
Materials

Lower earnings on Lower sales(Billions of yen)

20.4

18.3

1.3

1.3

Operating Profit

0.7

Q1 FY202220.4Net Sales

20.8

24.5
18.3

3.5

1.90.0Q1/FY22Q2/FY22Q3/FY22(Semiconductor-grade Polycrystalline silicon)• Despite a decline in sales volume due to a slowdown in thesemiconductor market, results remained in line with thecorresponding period of the previous fiscal year owing tosuccessful efforts to revise sales prices(IC Chemicals)• Earnings declined due to lower sales volume as a result of aslowdown in the semiconductor market

Q1 FY2023
25.7

Qualitative information

Q4/FY220.7
Q1/FY23(Fumed Silica)• Despite domestic sales remaining at the same levels as thecorresponding period of the previous fiscal year, earnings declined
due to weaker sales volume overseas as a result of a slowdown inthe Chinese economy(Thermal management materials)• Despite lower sales volume due to a slowdown in thesemiconductor market, results remained in line with thecorresponding period of the previous fiscal year thanks tosuccessful efforts to revise sales prices© 2023 Tokuyama Corporation. All rights reserved.

11➊ Financial Results for Q1 FY2023

4. Changes in Net Sales / Operating Profit by Business Segment(Year-on-year change)

Life Science

Higher earnings on higher sales(Billions of yen)

10.1

8.3

Q1 FY2022

9.9

Q1/FY221.9

Q2/FY222.3

Q3/FY22(Dental materials)• Earnings grew thanks to an increase in shipments to overseas(APIs and intermediates)• Earnings increased owing mainly to growth in the sales volume ofgeneric pharmaceuticals(Plastic lens-related materials)• Results remained in line with the corresponding period of theprevious fiscal year. This reflected robust sales volumes ofphotochromic dye materials for eyeglass lenses

Q1 FY2023

9.6
1.3

Operating Profit

2.1

1.3

8.3

Net Sales

Qualitative information

10.1

9.6
1.6

Q4/FY222.1

Q1/FY23© 2023 Tokuyama Corporation. All rights reserved.

12➊ Financial Results for Q1 FY2023

4. Changes in Net Sales / Operating Profit by Business Segment(Year-on-year change)

Eco Business

Earnings deteriorated on higher sales(Billions of yen)

2.7

2.5

Net Sales
Operating Profit

(0.1)

(0.3)

Q1 FY2022

Q1 FY2023

4.0

3.7
2.5

Qualitative information(Ion exchange membranes )• Earnings increased owing to the growth in shipments(Plastic window sashes)• Despite progress in the revision of selling prices, earnings
declined due to this largely reflected the increase inmanufacturing costs as well as the downturn in sales volumes

3.4

2.7

0.4(0.1)

Q1/FY220.0
Q2/FY22

Q3/FY22(0.2)
Q4/FY22(0.3)
Q1/FY23© 2023 Tokuyama Corporation. All rights reserved.

13

❷ Performance Forecasts for FY2023
1. Performance Forecasts
2. Performance Forecasts byBusiness Segment© 2023 Tokuyama Corporation. All rights reserved.

© 2023 Tokuyama Corporation. All rights reserved.

14❷ Performance Forecasts for FY2023

The forecast, announced on Apr 28, 2023, has not been revised

1. Performance Forecasts
FY2022 Results(Billions of yen)
FY2023 Forecasts

Difference
AmountMain changing factors%

Net sales

351.7

380.0 +28.2+8-

Operating profit

14.3

30.0 +15.6+109-

Ordinary profit

14.7

30.0 +15.2+103-

attributable to owners ofparent

9.3

22.0 +12.6

+135

-

Basic earnings per share(yen)130.15---------Profit

Exchange rate (yen/USD)
Domestic naphtha price (yen/kl)

13576,600

305.77
1Q results:137
2-4Q forecast:135
1Q results:66,700
2-4Q forecast:57,000© 2023 Tokuyama Corporation. All rights reserved.

15

❷ Performance Forecasts for FY2023

The forecast, announced on Apr 28, 2023, has not been revised

2. Performance Forecasts by Business Segment
FY2022 Results

Chemicals
CementElectronic &Advanced Materials
Life ScienceEco BusinessOthers
TotalInter-segment eliminations
and corporate-wide
expenses

Consolidated Results

FY2023 Forecasts(Billions of yen)

Difference
OperatingProfit

Net sales

Operatingprofit

Net sales

Operatingprofit

Net sales

116.2
58.56.8(3.7)

128.0
69.0

12.5
6.0

+11.7+10+5.6+81+10.4+18+9.7

-

91.5

7.0

103.0

9.0

+11.4

+12+1.9

+28

37.5
13.8
47.3
365.1

7.3
0.0
2.0
19.6

40.0
8.0
45.0
393.0

7.5
0.0
2.0
37.0

+2.4

+6+1+2

(5.8)

(42)

(0.0)

-(2.3)

(5)

(0.0)

(2)

+27.8

+8+17.3+88(13.3)(5.3)(13.0)

(7.0)

+0.3

-(1.6)

-

351.7

14.3

380.0

30.0

+28.2

+8+15.6+109%%(Note) Sales and operating profit in each segment shown above include inter-segment transactions© 2023 Tokuyama Corporation. All rights reserved.

16❸ Topics
1.

Repaid subordinate loans before maturity© 2023 Tokuyama Corporation. All rights reserved.

© 2023 Tokuyama Corporation. All rights reserved.

17➌ Topics

Repaid subordinate loans before maturity• Repayment date: 20 September, 2023
(Borrowing Date: 20 September, 2018)• Repayment amount: ¥60 billion• Repayment conditions(The case of repayment by funds other than those with capital equal to or greater than the loan)

1. The most recently announced consolidated shareholders‘ equity exceeded ¥179.2 billion⇒ ¥219.0 billion (as of the end of June 2023)
2. The most recently announced consolidated D/E ratio was less than 0.9 times⇒ 0.62 times (as of the end of June 2023)© 2023 Tokuyama Corporation. All rights reserved. 18

➍ Supplementary Material
1. Consolidated Financial Statements
2. Performance Trend© 2023 Tokuyama Corporation. All rights reserved.

© 2023 Tokuyama Corporation. All rights reserved.

20➍ Supplementary Material

1. Consolidated Financial Statements
Q1 FY2022

Income Statements(Billions of yen)

Difference

Q1 FY2023

Amount%

84.0

84.8

+0.8

+1

59.9
19.0

60.9
18.7(1.0)

(2)

+0.2

+1

5.1

5.1+0.0+1

2.0

0.5(1.4)

(74)

7.1

5.6(1.4)(20)

Extraordinary income/expenses

(0.0)

0.6

+0.6

-

Profit/loss before income taxes

7.0

6.2

(0.8)

(11)

2.6(0.0)

2.0(0.0)+0.5+22+0.0

-

4.4

4.3

(0.1)

(4)

Net sales
Cost of sales
Selling, general and administrative expenses

Operating profit
Non-operating income/expenses

Ordinary profit

Income taxes
Non-controlling interestsProfit attributable to owners of parent*Regarding changes, income or profit is shown as positive and expenses or losses are shown as negative amount© 2023 Tokuyama Corporation. All rights reserved.

21➍ Supplementary Material

1. Consolidated Financial Statements

Balance Sheets(Billions of yen)

As of Mar 31,2023

As of Jun 30,2023

478.3

476.3

Current assets

253.6

Tangible fixed assets

ChangesAmount%

(1.9)

(0)

246.3

(7.3)

(3)

155.3

160.4

+5.1

+3

Intangible fixed assets

3.4

3.4

(0.0)

(0)

Investments and other assets

65.8

66.0

+0.2+0

As of Mar 31,2023

As of Jun 30,2023

236.7

232.3

Current liabilities

88.2

Long-term liabilities

Total net assets

Total assets

Total liabilities

ChangesAmount

%

(4.3)

(2)

82.3

(5.8)

(7)

148.4

149.9

+1.4

+1

241.6

244.0

+2.4+1© 2023 Tokuyama Corporation. All rights reserved.

22➍ Supplementary Material

2. Performance Trend
AnnualNet sales (Billions of yen)
400.0
350.0
300.0

302.0

307.1

38.5

250.0
200.0
150.0

19.5

60.0
30.0
0.0
(30.0)(60.0)(90.0)(120.0)

41.2

35.2

316.0

34.2302.4

30.9

60.0

293.8

50.0
30.0

24.5

15161718
34.2

192021
28.0

19.9

52.1

151623
Forecast

9.3

22.0

■ Profit attributableto owners of parents(100.5)
FY14

220.0

24.5

19.6

(65.3)

30.0

10.0

Operating Profit

FY1440.0

20.0

14.3

Net sales

50.0(Billions of yen)

308.0

351.7

23.0

100.0
0.0

299.1

324.6

Profit (Billions of yen)
380.0
70.0

1718

1920

21

2223
Forecast© 2023 Tokuyama Corporation. All rights reserved.

23➍ Supplementary Material

2. Performance Trend
Quarter

Consolidated(Billions of yen)82.2

78.9
67.4

92.6

84.0

92.7

82.3

84.8

65.1

7.4

7.4
4.1

5.4

5.1

5.1

4.8
3.1
1.1

Q1/FY21 Q2/FY21 Q3/FY21 Q4/FY21 Q1/FY22 Q2/FY22 Q3/FY22 Q4/FY22 Q1/FY23■ Net Sales■ Operating Profit© 2023 Tokuyama Corporation. All rights reserved.

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Disclaimer
This material is supplied to provide information of Tokuyama and its Group
companies, and is not intended as a solicitation for investment or other actions.
This material has been prepared based on the information currently available andinvolves uncertainties. Tokuyama and its Group companies accept no liability inrelation to the accuracy and completeness of the information contained in thismaterial.
Tokuyama and its Group companies assume no responsibility whatever for any
losses or deficits resulting from investment decisions based entirely on projections,numerical targets and other information contained in this material.
Accordingly, the information on this material may not be used, reproduced, altered,distributed, sold, reprinted or published without the prior approval of the Company.

© 2023 Tokuyama Corporation. All rights reserved.

25