Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Member, Financial Accounting Standards Foundation
The Announcement date: May 12, 2023 (14:00 JST)

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(Under Japanese GAAP)
Company name:TOMOEGAWA CO., LTD.
Listing:
Tokyo Stock Exchange
Securities code:
3878
URL:
https://www.tomoegawa.co.jp/
Representative:
Yoshio Inoue, President and Representative Director, Group CEO
Inquiries:
Masaaki Yamaguchi, Director, Senior Managing Executive Officer, Group CFO
Telephone:+81-54-256-4319
Scheduled date of annual general meeting of shareholders:June 28, 2023
Scheduled date to commence dividend payments:
June 7, 2023
Scheduled date to file annual securities report:
June 28, 2023
Preparation of supplementary material on financial results:
None
Holding of financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31,
2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating income

Net income attributableto owners of parent

Ordinary income

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2023

34,170

4.2

2,052

3.5

2,151

(6.9)

1,451

(12.1)March 31, 2022

32,785

6.6

1,982

-

2,310

-

1,650

-

Note: (1) Comprehensive income For the fiscal year ended March 31, 2023:
For the fiscal year ended March 31, 2022:
Basic earnings
per share

Diluted earnings
per share¥2,202 million¥2,307 million

Return on equity[(4.5%)][201.0%]

Ratio of ordinary
income to total
assetsRatio of operating
income to net sales

Fiscal year ended

Yen

March 31, 2023

135.11

-

10.6

5.0

6.0

March 31, 2022

152.71

-

13.2

5.5

6.0

Yen

%

%

%

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023:¥176 million
For the fiscal year ended March 31, 2022:¥459 million
Note: (2) The above per share information pertains to Common Stock.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2023

42,94818,37032.7

1,251.36

March 31, 2022

43,574

17,61630.9

1,113.45

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:¥14,027 million¥13,479 million%

YenNote: The above per share information pertains to Common Stock.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Millions of yen

March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

1,010

(54)

(1,566)

4,282

3,364

(217)

(2,651)4,737

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended

March 31, 2022
Fiscal year ended

March 31, 2023

Yen

Fiscalyear-end

Yen

Total cash
dividends(Total)

Total

Yen

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

-

0.00

-

15.00

15.00

153

9.8

1.5

-

0.00

-

15.00

15.00

155

11.1

1.3

-

0.00

-

15.00

15.00

Fiscal year ending

March 31, 2024

28.3

(Forecast)

Note: The above "2. Cash dividends" shows dividends for Common stock. For details of dividends for Preferred stock (unlisted), therights of which are different from those of Common stock issued by the Company, please refer to "Reference: Dividends forPreferred Stock" below.

3. Forecasts of Consolidated financial results for Fiscal Year 2024 (from April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Operating income% Millions of yen

Net income
Basic earnings
attributable to owners
per shareof parent

Ordinary income% Millions of yen% Millions of yen%

Yen

First Half

17,500(0.2)

600(50.2)

600(55.9)

200 (84.1)

16.87

Full year

36,0005.4

1,500(26.9)

1,500(30.3)

600 (58.7)

53.03

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): /None(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common stock)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

10,389,406 shares

As of March 31, 2022

10,389,406 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023

18,354 shares

As of March 31, 2022

169,232 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

10,371,052 sharesFiscal year ended March 31, 2022

10,149,824 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating income

Fiscal year ended

Millions of yen%

Millions of yen

March 31, 2023

19,204

(0.4)

(245)

March 31, 2022

19,2875.0

460

Basic earnings
per share

Ordinary income%

Net income

Millions of yen%

Millions of yen

%

-

1,011

96.6

821

10.9

-

514

-

740

-

Diluted earnings
per share

Fiscal year ended

Yen

March 31, 2023

74.36

-

March 31, 2022

62.63

-

Yen

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2023

24,774

5,321

21.5

411.88March 31, 2022

25,966

5,822

22.4

364.25

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:%¥5,321 million¥5,822 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.

Yen* Proper use of earnings forecasts, and other special matters(Notes on statements about the future)
The forward-looking statements in this document, including earnings forecasts, are based on information
currently available to the Company and certain assumptions that the Company considers reasonable, and are
not intended as a promise by the Company that they will be achieved. Actual results may differ materially due
to various factors. For the basis of presumption of the forecasted operation results and the notes on its use, refer
to “Ⅰ. Overview of Operating Results, etc., 4. The Projection of FY 2024 and Dividends payment” on page 8
in the Attachments.
Reference: Dividends for Preferred Stock
The breakdown of dividends per share related to Class-A Preferred stock that have different rights from
common stocks is as follows:
Annual dividends per share

Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
Fiscal year ending
March 31, 2024 (Forecast)First quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year-end

Total

Yen

Yen

‐

‐

‐

50.14

50.14

‐

‐

‐

50.00

50.00

‐

‐

‐

50.00

50.00

Note:
(1) Dividends per share for the fiscal year ended March 31 2022 is rounded down to the nearest one-hundredth of a yen.
(2) Dividends per share for the fiscal year ended March 31 2022 includes accrued cumulative dividend for the year ended March
31, 2021.

【Attachment】

Contents of Attachment
Ⅰ．Overview of Operating Results, etc. ･･･････････････････････････････････････････････････

2

1. Overview of Operating Results of This Fiscal Year ････････････････････････････････････････

2(1) Review of operating results ･･･････････････････････････････････････････････････････

2

・Net sales and Income ･･･････････････････････････････････････････････････････････

2

・Numbers by Quarter ･･･････････････････････････････････････････････････････････

2

・Observation of whole FY 2023 (April 2022 to March 2023) ･････････････････････････････

3(2) Consolidated operating results by segment ･･･････････････････････････････････････････

4

・Segment figures ･･･････････････････････････････････････････････････････････････

4

・Overview of segment ･･･････････････････････････････････････････････････････････

4

2. Overview of Financial Position of This Fiscal Year ･･･････････････････････････････････････

6

・Financial Position ･････････････････････････････････････････････････････････････

6

・Explanation regarding Financial Position ･･･････････････････････････････････････････

6

3. Overview of Cash Flows for This Fiscal year ････････････････････････････････････････････

7

・Cash Flows ･･････････････････････････････････････････････････････････････････

7

・Explanation regarding Cash Flows ････････････････････････････････････････････････

7

4. The Projection of FY 2024 and Dividends payment ････････････････････････････････････････

8

Ⅱ．Basic Rationale for Selection of Accounting Standards ･････････････････････････････････････

9

Ⅲ．Consolidated Financial Statements and Major Explanatory Notes Thereto ･･････････････････････ 10
1. Consolidated balance sheet ･･････････････････････････････････････････････････････････

10

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ･･･････ 12
3. Consolidated Statements of Changes in Net Assets ････････････････････････････････････････ 14
4. Consolidated Statements of Cash Flows ････････････････････････････････････････････････

16

5. Explanatory Notes to Consolidated Financial Statements ･･･････････････････････････････････ 18(Notes on Going Concern Assumption) ･････････････････････････････････････････････････ 18(Segment Information) ･････････････････････････････････････････････････････････････

18(Per Share Information) ･････････････････････････････････････････････････････････････

22(Significant Subsequent Events) ･･････････････････････････････････････････････････････

22

p. 1

Ⅰ．Overview of Operating Results, etc.
Figures in Million Yen, unless otherwise noted
1. Overview of Operating Results of This Fiscal Year
(1) Review of operating results
・Net sales and Income

FY 2023 ended
March 31, 2023

on

Converted into Million
U.S. dollars (Note3)
FY 2022 ended on March 31,
2022
Change to FY 2023 from FY
2022
Percent Change from FY
2022 numbers
Initial projection for FY 2023
Most
recentFY
2023
projection released on April
21,2023
Change from FY 2023 Initial
Projection
Change from FY 2023 Most
recent Projection

from April 1, 2022 through March 31, 2023
(Note1, 2)

Net sales

Operating
IncomeOrdinary
IncomeNet Income

Net Income
Per Share

34,170

2,052

2,151

1,451

135.11Yen

252.2

15.1

15.9

10.7

US$1.00

32,785

1,982

2,310

1,650

152.71Yen

1,384

69

▲159

▲199

▲17.60Yen

4.2%

3.5%

▲6.9%

▲12.1%-

33,500

1,000

1,100

1,000

-

34,100

2,000

2,100

1,400

-

670

1,052

1,051

451

-

70

52

51

51

-

(Note1)

Note1: “Net Income” in this paper is “Net Income attributable to owners of parent” in current
accounting standards
Note2: The above per share information pertains to Common Stock
Note3: U.S. dollar amounts are converted from Yen, for convenience only, at the rate of
US$1.00 = ¥135.51
・Numbers by Quarterp. 2

・Observation of whole FY 2023 (April 2022 to March 2023)
During Fiscal Year (FY) 2023, market conditions for semiconductor-related businesses, which
had been strong toward the middle of the period, rapidly deteriorated. Nevertheless, the toner businessremained strong, and the Yen depreciation through mid-November boosted overseas-related sales. As
a result, our full FY sales numbers reached ¥34,170 million, up ¥1,384 million or +4.2% from the previous
FY sales.
As for the profit, our consolidated Operating Income was ¥2,052 million, up ¥69 million or +3.5%
from last FY number. Following the adjustment in the display-related market from the second quarter,
semiconductor market conditions also began to adjust in the latter half of the period, resulting in a
deterioration of profit and loss in the Electronic Materials segment. In addition to raw material pricehikes, the increase in LNG for power generation and steam production at our plants and purchased
electricity rates continued through December and remained high thereafter.

Against these factors ofdecrease in profit, we thoroughly added the cost increase to the selling price in each business segment,
and this was supplemented by the positive effect of increased income from overseas-related sales,
mainly in the toner business.
The consolidated Ordinary Income is ¥2,151 million, down ¥159 million or ▲6.9% from that oflast FY, due to the decrease in the equity gain from an affiliated company that handles processing of
optical film used for displays.
Net Income is ¥1,451 million, down ¥199 million or ▲12.1% from that of last FY, mainly due tothe increase in the gain from the sales of the land and buildings of the US toner factory, which ceased
operations in September 2020, in the First Quarter of current FY and the gain on sales of investment
securities, nevertheless there was also an extraordinary loss associated with the proactive disposal ofunderutilized or idle facilities in order to further improve productivity toward the end of the period.
As for the three months of the fourth quarter (January-March 2023), sales declined due tocontinued adjustments in the semiconductor-related business and a decrease in orders received in the
toner business, which had been strong until the third quarter, due to inventory adjustments of someproducts, mainly for major customers. In addition, the negative impact of rising procurement prices for
raw materials and fuel on profit and loss was delayed and materialized via inventories, and the tonerbusiness experienced a decline in profit due to the concentrated implementation of facility modifications,maintenance and repair work during this period, which was not possible during the busy season.
During FY 2023, as disclosed on March 13, 2023, TOMOEGAWA is working to improve its
financial soundness by acquiring and retiring a portion of its preferred stock, thereby reducing the burdenof preferred dividend payments.

p. 3

(2) Consolidated operating results by segment
・Segment figures

FY 2023

FY 2022

Toner

Electronic
Materials

Functional
Sheet

Security MediaNew Business
Development

Change to FY
2023
from FY 2022

Percent Change
from FY 2022
numbers

Net sales

12,303

13,531

1,228

10.0%

Operating
Income

1,198

2,093

894

74.7%

Net sales

6,121

5,634

▲487

▲8.0%

Operating
Income

970

186

▲783

▲80.8%Net sales

10,195

10,769574

5.6%

Operating
Income

▲162

▲72

89

-

Net sales

3,928

3,985

56

1.4%

Operating
Income

257

224

▲33

▲12.9%Net sales

97

54

▲43

▲44.7%

Operating
Income

▲438

▲499

▲61

-

・Overview of segment< Toner >As for the Toner Segment, Net sales were ¥13,531 million, up ¥1,228 million or +10.0% fromthat of last FY, and Segment (operating) income was ¥2,093 million, up ¥894 million or +74.7% from thatof last FY.
While the demand for some products declined, market demand trends remained strong andorders remained firm. Yen depreciation trend in the foreign exchange market also provided boost to thesales. In terms of profit, despite the Segment was affected by the sharp rise in procurement prices ofraw materials and fuels, and the intensive implementation of facility remodeling, maintenance and repair
work toward the end of current FY, income increased due to higher selling prices and the overseasrelated sales resulting from the depreciation of the yen.
By prioritized production of high-margin toners and introduction of raw material from new
suppliers, we have resolved the negative impact on sales and profit from the toner raw material
procurement difficulties caused by one suppliers' situation, which was a concern at the beginning ofcurrent FY.

p. 4

< Electronic Materials >As for the Electronic Materials Segment, Net sales were ¥5,634 million, down ¥487 million or▲8.0% from that of last FY, and Segment (operating) income was ¥186 million, down ¥783 million or▲80.8% from that of last FY.
The sales declined due to a drop in demand as the semiconductor and electronic materials
markets, which had been strong until the middle of the period, rapidly entered an adjustment phase, andthe optical film-related business experienced a sales decline due to the conclusion of one-time special
demand projects in the previous year. Profits decreased from that of last FY, due to the decrease insales in the optical film-related business and the decrease in sales due to deteriorating market conditions
in semiconductor-related business.
< Functional Sheet >As for the Functional Sheet Segment, Net sales were ¥10,769 million, up ¥574 million or +5.6%
from that of last FY, and Segment (operating) loss was ¥72 million (loss of ¥162 million in last FY).
While the existing business continued to shrink, the business focused on expanding sales ofsome products with strong demand, including products of its subsidiaries, and proceeded with someprice revisions, resulting in current FY sales increase from that of last FY. Profits were affected byhigher procurement prices for raw materials and fuel, but the deficit was reduced compared to Last FY,
mainly thanks to the effects of structural reforms implemented in December 2019 and March 2022,
including the shutdown of two large paper-manufacturing facilities.
< Security Media >As for the Security Media Segment, Net sales were ¥3,985 million, up ¥56 million or +1.4% fromthat of last FY, and Segment (operating) income was ¥224 million, down ¥33 million or ▲12.9% fromthat of last FY.
Although demand for passbooks and other products continued to decline, sales of card-related
products expanded and sales of ledger sheets increased. Profits were affected by the sharp rise inenergy prices and the disposal of some inventories.
< New Business Development >As for the New Business Development Segment, Net sales were ¥54 million, down ¥43 million
or ▲44.7% from that of last FY, and Segment (operating) loss was ¥499 million (loss of ¥438 million inlast FY).
Despite development and sales efforts centered on iCas-related products, sales fell short ofplans due to delays in the development schedule of some products.

p. 5

2. Overview of Financial Position of This Fiscal Year・Financial Position

March 31, 2023
(Note1)

Total assets

Net assets

Equity-to-asset
ratio

Net assets
Per Share

End of FY 2023, March
31, 2023

42,94818,37032.7%

1,251.36Yen

Converted into Million
U.S. dollars (Note2)

321.6

137.6

-

US$9.37

End of FY 2022, March
31, 2022

43,574

17,61630.9%

1,113.45Yen

Note1: The above per share information pertains to Common Stock
Note2: U.S. dollar amounts are converted from Yen, forat the rate of US$1.00 = ¥133.54

convenience

only,・Explanation regarding Financial Position
Total assets amounted to ¥42,948 million at the end of current FY, down ¥626 million from theend of last FY. Current assets totaled ¥21,537 million, up ¥143 million from the end of last FY. Thiswas mainly due to an increase in inventories of finished goods and others, despite a decrease in Cashand deposits notes and accounts receivable compared to the end of last FY. Non-current assets totaled¥21,410 million, a decrease of ¥769 million from the end of last FY. This was mainly due to the salesof idle facilities and a decrease in property, plant and equipment value by depreciation over time.
Total liabilities amounted to ¥24,577 million, down ¥1,380 million from the end of last FY.
Current liabilities totaled ¥16,078 million, up ¥1,235 million from the end of last FY. This was mainly
due to an increase in short-term borrowings and current portion of long-term borrowings, despite adecrease in notes and accounts payable. Non-current liabilities totaled ¥8,498 million, down ¥2,615
million from the end of last FY, mainly due to the repayment of long-term borrowings. Interest-bearing
debt increased ¥58 million from the end of last FY to ¥12,713 million.
Net assets amounted to ¥18,370 million, up ¥753 million from the end of last FY. This was
thanks to the recording of net Income attributable to owners of parent and a decrease in treasury shares
resulting from the conversion of a consolidated subsidiary into a wholly owned subsidiary through ashare exchange, furthermore a increase in remeasurements of defined benefit plans and foreign
currency translation adjustments due to exchange rate fluctuations, despite a decrease in capital surplus
by partial redemption of Class A preferred stock.

p. 6

3. Overview of Cash Flows for This Fiscal year
・Cash Flow

March 31, 2023
Cash flows fromoperatingactivities

Cash flows
from investing
activities

Cash flows
from financing
activities

Cash and cash
equivalents at
end of period

1,010

(54)

(1,566)

4,282

Converted into Million
U.S. dollars (Note)

7.5

(0.4)

(11.6)

32.1

FY 2022 ended on
March 31, 2022

3,364

(217)

(2,651)

4,737

Change to FY 2023 fromFY 2022(2,353)

162

1,084

(454)

FY 2023 ended
March 31, 2023

onNote: U.S. dollar amounts are converted from Yen, for convenience only, at the rate of US$1.00= ¥135.51 as for Cash flow and ¥133.54 as for Cash and cash equivalents at end of period
・Explanation regarding Cash Flow
Cash and cash equivalents (net cash) amounted to ¥4,282 million at the end of current FY, down¥454 million from the end of last FY.
Net cash from operating activities for current FY was ¥1,010 million, down ¥2,353 million fromlast FY. The main inflow factors were profit before income taxes of ¥2,377 million and depreciation(¥1,619 million), while the outflow factors included an increase in inventories (¥720 million), a decreasein trade payable (¥1,125 million), and income tax paid (¥1,001 million).
Net cash used in investing activities for current FY was ¥54 million, down ¥162 million from lastFY. The main inflow factors were proceeds from sale of property, plant and equipment (¥580 million)
and investment securities (¥302 million), while the outflow factors included purchase of property, plantand equipment (¥885 million).
Net cash used in financing activities for current FY was ¥1,566 million, down ¥1,084 million fromlast FY.

The main inflow factors were net increase in short-term borrowings (¥1,465 million) andproceed from long-term borrowings (¥750 million), while the outflow factors included repayments of longterm borrowings (¥2,144 million) and purchase of treasury shares by partial redemption of Class A
preferred stock (¥1,132 million).
[Reference] The trends in the Group’s cash flow indicators are shown below.
Equity-to-asset ratio (%)
Market-based equity-to-asset ratio(%)
Interest bearing debt to cash flow
ratio (annual)Interest coverage ratio (times)

FY 2019
25.8

FY 2020
20.6

FY 202128.3

FY 202230.9

FY 2023
32.7

26.2

17.2

20.9

19.9

16.5

9.7

-

3.4

3.8

12.6

5.7

-

18.0

19.9

5.0

Note: Equity-to-asset ratio: Equity / Total assets
Market-based equity-to-asset ratio: Market cap / Total assets
p. 7

Interest bearing debt to cash flow ratio: Interest bearing debt / Operating cash flow
Interest coverage ratio: Operating cash flow / Interest* Each of these indicators are calculated from consolidated financial figures.
* Market cap is calculated by multiplying year-end closing price by year-end issued shares(excluding treasury shares).
* Cash flows from operating activities from the consolidated cash flow statement are used for
operating cash flow.
* Interest-bearing debts represent all debts on the consolidated financial position for which interestis paid.
* Interest bearing debt to cash flow ratio and Interest coverage ratio for FY 2020 are not shown
due to negative operating cash flow.
4. The Projection of FY 2024 and Dividends payment
・Forecast of Current Fiscal Year, which will end on March 31, 2024

17,500Operating
Income600

Ordinary
Income600

36,000

1,500

1,500

Forecast released

Net salesFirst Half
Whole fiscal year200

Net Income
Per Share
16.87Yen

600

53.03Yen

Net Income

TOMOEGAWA Group’s current priority is on the accomplishment of new “5 year Medium-Term
Management Plan” that started from FY 2022 and will end in FY 2026. Under that plan, re-evaluationof business portfolio and structural reform are being conducted to improve our financial structure.
In FY 2023, the second year of the Medium-Term Management Plan, we were able tosignificantly exceed the initial plan and achieve consolidated operating income of 2 billion yen, which
was planned for the final year of the Medium-Term Management Plan (FY 2026).
This was due to better-than-expected earnings improvement from structural reforms, the Tonerbusiness continuing its strong performance from FY 2022 and the positive effect of yen depreciation on
earnings, and the Semi-conductor-related business performing well until the middle of the year.
Based on these results, we are currently reviewing the numerical targets in particular of theMedium-Term Management Plan.
In the next fiscal year (FY 2024), the third year of the medium-term management plan, the Tonerbusiness, which has driven the company's performance to date, is expected to be affected by continued
inventory adjustments of some products for major customers and intensified price competition. Under
these circumstances, the company will review its product mix and shift to higher-margin products.
In addition, for the Semi-conductor and Display-related business [previously the Electronic
Materials business*], especially in the Semi-conductor-related business, we expect the adjustment
phase that began in mid-FY 2023 to continue for some time, and the contribution of related new products
will be delayed about a year longer than initially expected.
On the other hand, in the Functional Sheet business, we will focus on expanding sales of various
functional sheets, which have been growing especially since the second half of the FY 2023.
In terms of profit, despite the expected increase in sales, we anticipate a temporary cost
increase of ¥700 million, including upfront expenses related to the launch of new products, mainly forsemiconductor manufacturing equipment, and the impact of aggressive investments in human resources
and the promotion of operational efficiency through the use of DX.
p. 8

Based on the above, for the next fiscal year (FY 2024), we aim to achieve sales of 36 billion
yen, operating income of 1.5 billion yen, ordinary income of 1.5 billion yen, and net income of 600 million
yen due to the absence of extraordinary gains from the sale of assets in the previous year. Even in thiscase, we plan to exceed the initial projections in the 8th Mid-Term Management Plan.
As for capital policy, the company's first priority is to secure a net asset ratio of 40% or more,while aiming for early redemption of the remaining 1 billion yen in preferred stock, and we will make ¥15
per share dividend payment under the policy that honors steady and continuous dividend payment.
For the revision of the 8th Medium-Term Management Plan, please refer to the "Notice ofRevision of the Mid-Term Management Plan (Japanese document only)" which is scheduled to bedisclosed after the resolution of the Board of Directors' meeting to be held on May 19, 2023.
Please refer to the numerical aspects of the plan, especially the target of 40 billion yen inconsolidated net sales and 3.5 billion yen in operating income for the final year (fiscal year ending March
31, 2026), together with an overview of various initiatives to achieve sustainable growth and enhance
corporate value over the medium to long term.
(*) The Group plans to change the names of its reportable segments from the next fiscal year (Q1 of the
fiscal year ending March 31, 2024). For an outline of this change, please refer to the "Notice Concerning
Revision of Medium-Term Management Plan (Japanese document only)" scheduled to be released on
May 19, 2023.
Your continuous support of TOMOEGAWA will be greatly appreciated.

Ⅱ．Basic Rationale for Selection of Accounting Standards
TOMOEGAWA Group currently adopts Japanese accounting standards for its financial reportingin view of comparability between fiscal years on financial statements and comparability with othercompanies.

Regarding the adoption of International Financial Reporting Standards, the Group will

respond appropriately in consideration of circumstances in and outside Japan.

p. 9

Ⅲ．Consolidated Financial Statements and Major Explanatory Notes Thereto
1. Consolidated balance sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable - tradeFinished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Afforestation tree
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

p. 10

As of March 31, 2023

4,825
475

4,353
511

691

726

5,911
6,168
66
2,169
1,106
△21
21,394

5,320
6,837
61
2,310
1,430
△13
21,537

4,708
3,980
5,469
728
401
633
379
16,302

4,475
3,628
5,398
637
347
632
412
15,533

48
246
141
436

38
223
129
391

5,029
138
347
△73
5,441
22,18043,574

5,012
138
408
△74
5,485
21,41042,948(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Provision for retirement benefits for
directors (and other officers)
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

p. 11

As of March 31, 2023

6,326
2,798
1,882
358
492
2,983
14,843

5,222
4,289
2,433
146
518
3,468
16,078

7,228
583
892
1,946

5,339
474
854
1,446

286

309

178
11,11425,95775
8,498
24,577

2,122
3,249
6,999
△288
12,083

2,122
2,033
8,197
△31
12,322

289

241

390
716

492
971

1,396

1,705

4,136
17,616
43,574

4,342
18,37042,948

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Transportation costs
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision for retirement benefits for
directors (and other officers)
Depreciation
Research and development expenses
Other
Total selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidies for employment adjustment
Share of profit of entities accounted forusing equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Financial fee
Idle-assets expense
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of shares of subsidiaries andassociates
Gain on transfer of registered trademarks
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Other
Total extraordinary losses
Profit before income taxes

p. 12

Fiscal year ended
March 31, 2023

32,78526,027
6,758

34,17026,637
7,532

768
1,333
105
31

777
1,467
115
39

29

31

103
582
1,820

107
931
2,010

4,775

5,480

1,982

2,052

4
72
9
51

10
81
－
－

459

176

155
753

157
425

168
－
84
70
101
425
2,310

195
32
32
5
60
326
2,151

7
23

474
226

54

－

200
284

－
701

24
29
2
57
2,537

122
353
0
475
2,377

(Millions of yen)
Fiscal year ended
March 31, 2022
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controllinginterests
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

p. 13

Fiscal year ended
March 31, 2023

502
130
632
1,905

568
△37
531
1,845

1,650

1,451

254

394

△1

△24

667

126

△262

255

402
2,307

356
2,202

1,885

1,760

421

441

3. Consolidated Statements of Changes in Net Assets
Previous fiscal year (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

2,122

Retained earnings

Treasury shares

Total shareholders'equity

5,470

3,122

△377

10,338△2,226

2,226

－

1,650

1,650

Changes during period
Transfer from capitalsurplus to retained
earnings
Profit (loss)
attributable to owners ofparentPurchase of treasury
sharesChange in shares ofparent held bysubsidiaries
Net changes in items
other than shareholders'equity6

Total changes during period
Balance at end of period

△0

△0

88

95

－

△2,220

3,876

88

1,745

2,122

3,249

6,999

△288

12,083

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of
periodForeigncurrencytranslation
adjustment

288

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensiv
e income

△107

979

1,160

Noncontrollinginterests

3,814

Total net
assets15,313

Changes during period
Transfer from capitalsurplus to retained
earnings
Profit (loss)
attributable to owners ofparentPurchase of treasury
sharesChange in shares ofparent held bysubsidiaries
Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

－

－

－

1,650

－

△0

－

95

0

498

△262

235

321

557

0

498

△262

235

321

2,302

289

390

716

1,396

4,136

17,616

p. 14

Current fiscal year (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

2,122

Retained earnings

3,249

Total shareholders'equityTreasury shares

6,999

△288

12,083

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Changes by shareexchanges
Purchase of treasury
sharesCancellation of treasury
sharesNet changes in items
other than shareholders'equity

△253

△253

1,451

1,451

△84

△1,132

Total changes during period
Balance at end of period

257

172

△1,132△1,132

1,132

－

－

△1,216

1,197

257

238

2,122

2,033

8,197

△31

12,322

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balanceperiodat

beginningof289

Foreigncurrencytranslation
adjustment

Total
Remeasurements accumulatedofdefined otherbenefit plans comprehensiv
e income

390

716

1,396

Noncontrollinginterests

4,136

Total net
assets17,616

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Changesbyshareexchanges
PurchaseoftreasurysharesCancellation of treasury
sharesNet changes in items otherthan shareholders' equity

－

△253

－

1,451

－

172

－

△1,132

－

－

△47

102

255

309

205

515

Total changes during period

△47

102

255

309

205

753

Balance at end of period

241

492

971

1,705

4,342

18,370p. 15

4. Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase(decrease)inprovisionforretirement benefits for directors (and otherofficers)
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted
for using equity method
Loss on retirement of non-current assets
Loss (gain) on sale of non-current assets
Gain on transfer of registered trademarks
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries
and associates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Other, net
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Payments for retirement of property, plantand equipment
Proceeds from sale of property, plant andequipment
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds
fromtransferofregisteredtrademarks
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares

p. 16

Fiscal year ended
March 31, 2023

2,537
1,717
29

2,377
1,619
353

8

22

△122

△244

△76
168

△91
195

△459

△176

24
△4
△200
△23

122
△474
－
△226

△54

－

△144
△1,177
1,321
158
3,704
121
△168
△285
39
△48

603
△720
△1,125
△236
1,996
182
△200
△1,001
－
34

3,364

1,010

△60
45
△919

△62
82
△885

△10

△9

6

580

29

302

550

－

200

－

△58

△63

△217

△54

△2,674

1,465

4,711
△4,629△25

750△2,144－

(Millions of yen)
Fiscal year ended
March 31, 2022
Proceeds from sale of shares of parent heldby subsidiaries
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of periodp. 17

Fiscal year ended
March 31, 2023
223

－

0
0
△5
△250

△1,132
△253
△41
△210

△2,651△1,566

253

156

748

△454

3,988
4,737

4,737
4,282

5. Explanatory Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
None.
(Segment Information)
1. Reportable Segment Overview
The Company’s group reportable segments are those for which financial information thatis separate from the Group as a whole is available.
The Board of Directors andRepresentative Director, President (CEO) reviews these segments regularly in order todetermine allocation of management resources and evaluate performance.
The Group classifies its businesses by product area into the Toner Business, Electronic
Materials Business, Functional Sheet Business, Security Media Business, and New Business
Developed based on similarities in product content and economic characteristics, andformulates comprehensive domestic and overseas strategies and develops business activities.
Accordingly, the Group has five reportable segments: "Toner Segment", "Electronic
Materials Segment", "Functional Sheet Segment", "Security Media Segment", and "NewBusiness Development Segment”.
Toner Business produces and sells chemical products (toner), while the Electronic
Materials Business produces and sells FPD-related products and semiconductor-related
products. The Functional Sheet Business produces and sells papermaking-related products,
functional sheet-related products, and coated paper-related products. Security MediaBusiness produces, processes, and sells securities, cards, forms, and magnetic recordingrelated products, as well as information processing-related business.
In the "NewBusiness Development," the Group develops and sells new products by integrating its basic
and underlying technologies.
2. Net sales and Income by Reportable Segment and Method of Calculating Amount of Assets
and Others
The method of accounting for the reportable segments is in line with the accounting
policies adopted to prepare the consolidated financial statements.
Income in the reportable segments is based on operating income.
Inter-segment income and transfers are based on prevailing market prices.

p. 18

3. Information on Net sales, Income, Assets and Others per Reportable Segment and Profit
Disaggregation
Previous fiscal year (From April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segments

Toner

New
Electron
ReportabFunction Security Businessic
leal Sheet Media Developm
Material
segments
ent(Note 2)

(Note 1)

Other

Total

(Note 3)Per
Reconcilconsolidated
ing
financial
items
statements

Net sales
Japan

2,390

3,774

9,589

3,928

97

19,781

69

19,850－19,850

4,093

235

107

－

－

4,435

－

4,435

－

4,435

Other Asia

1,097

2,044

422

－

－

3,564

－

3,564

－

3,564

Europe

3,641

2

7

－

－

3,651

－

3,651

－

3,651

North America

782

65

68

－

－

915

－

915

－

915

Other

298

－

－

－

－

298

－

298

－

298

12,303

6,121

10,195

3,928

97

32,64669

32,715－32,715

－

－

－

－

－

－

69

69

－

69

12,303

6,121

10,195

3,928

97

32,646

139

32,785－32,785

－

－

904

49

－

954

682

1,636

(1,636)－

Net sales

12,303

6,121

11,0993,978

97

33,600821

34,421(1,636)32,785

Operating profit(loss)

1,198

970

(162)

257

(438)

1,825

113

1,939

43

1,982

Assets

10,267

6,143

10,652

6,328

45

33,436

180

33,616

9,957

43,574

560

463

363

229

－

1,617

28

1,645

72

1,717

12

－

－

－

－

12

－

12

－

12

371

221

264

195

－

1,053

9

1,062

72

1,135

China (including
Hong Kong)

Revenue fromcontracts withcustomers
Other revenue
Revenues fromexternalcustomers
Transactions
with othersegments

Other items
Depreciation
Amortization of
goodwill
Increase inproperty, plantand equipment

and intangible
assets
Notes:
1. The “Other” classification is for business segments not included in a reportable segment and includes
logistics services, etc.
2. Adjustments are as follows:(1) Segment income in the above adjustment \43 million represents eliminations for inter-segment
transactions.
(2) Adjustments to segment assets were ¥9,957 million represents company-wide assets that cannot beallocated to reportable segments. The main items of company-wide assets are surplus assets undermanagement (cash and deposits), long-term investment funds (investment securities, etc.), and assets,etc. related to administrative divisions.
p. 19

(3) \72 million for adjustment for depreciation consists of general management expenses that is not
attributed to each reported Segment.
(4) \72 million for adjustment for the increase in property, plant and equipment and intangible assets
consists of capital expenditures mainly in company-wide common divisions at the Company.
3. Segment income is reconciled to operating income presented in the Consolidated Statements of Income andConsolidated Statements of Comprehensive Income.

Current fiscal year (From April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments

Toner

New
Electron
ReportabFunction Security Businessic
leal Sheet Media Developm
Material
segments
ent(Note 2)

(Note 1)

Other

Total

(Note 3)Per
Reconcilconsolidated
ing
financial
items
statements

Net sales
Japan

2,078

3,312

9,764

3,985

54

19,195126

19,321－

19,321China (including
Hong Kong)

4,407

262

127

－

－

4,798

－

4,798

－

4,798

Other Asia

1,601

2,030

709

－

－

4,341

－

4,341

－

4,341

Europe

4,124

2

3

－

－

4,130

－

4,130

－

4,130

North America

966

26

164

－

－

1,156

－

1,156

－

1,156

Other

351

－

－

－

－

351

－

351

－

351

13,531

5,634

10,7693,985

54

33,974

126

34,100－34,100

－

－

－

－

－

－

69

69

－

69

13,531

5,634

10,7693,985

54

33,974

196

34,170－34,170

－

－

796

134

－

931

608

1,539

△1,539－Net sales

13,531

5,634

11,5654,120

54

34,905804

35,710△1,53934,170Operating profit(loss)

2,093

186

△72

224

△499

1,931

84

2,016

36

2,052

Assets

10,517

5,728

10,7916,193

22

33,253200

33,453

9,494

42,948

513

446

355

208

－

1,524

30

1,555

64

1,619

14

－

－

－

－

14

－

14

－

14

281

313

376

98

－

1,069

13

1,082

140

1,223

Revenue fromcontracts withcustomers
Other revenue
Revenues fromexternalcustomers
Transactions
with othersegments

Other items
Depreciation
Amortization of
goodwill
Increase inproperty, plantand equipment

and intangible
assets
Notes:
1. The “Other” classification is for business segments not included in a reportable segment and includes
logistics services, etc.
2. Adjustments are as follows:p. 20

(1) Segment income in the above adjustment \36 million represents eliminations for inter-segment
transactions.
(2) Adjustments to segment assets were ¥9,494 million represents company-wide assets that cannot beallocated to reportable segments. The main items of company-wide assets are surplus assets undermanagement (cash and deposits), long-term investment funds (investment securities, etc.), and assets,etc. related to administrative divisions.
(3) \64 million for adjustment for depreciation consists of general management expenses that is not
attributed to each reported Segment.
(4) \140 million for adjustment for the increase in property, plant and equipment and intangible assets
consists of capital expenditures mainly in company-wide common divisions at the Company.
3. Segment income is reconciled to operating income presented in the Consolidated Statements of Income andConsolidated Statements of Comprehensive Income.

p. 21

(Per Share Information)
As of March 31, 2022

As of March 31, 2023

Net assets per share

1,113.45 Yen

1,251.36 Yen

Net income per share

152.71 Yen

135.11 Yen(Notes) 1. Because there was no potential common stock, the amount for diluted net income per shareis omitted.
2. Net income per share is calculated based on the following:
As of March 31, 2022
Net income attributable to owners ofparent (Millions of yen)Amount not attributable to common
stockholders (Millions of yen)
Of which: Dividends for Preferred
Stock (Millions of yen)
Net income attributable to common stock(Millions of yen)
Average number of common stock
outstanding during the fiscal year

As of March 31, 2023

1,650

1,451

100

50

100

50

1,549

1,401

10,149,824

10,371,052(Shares)
3. Net assets per share is calculated based on the following:
As of March 31, 2022

As of March 31, 2023

Net assets (Millions of yen)

17,616

18,370

Amount deducted from net assets(Millions of yen)

6,237

5,392

（4,136）（4,342）（2,000）（1,000）

（100）

（50）

Of which: Non-controlling interests(Millions of yen)
Of which: Preferred stock paid-in
amount (Millions of yen)
Of which: Accrued cumulative dividendfor Preferred Stock (Millions of yen)
Net assets attributable to common stockat the fiscal year-end (Millions of yen)

11,37912,977

10,220,174

10,371,052

Number of common stock outstanding at
the fiscal year-end used for the
calculation of net assets per share(Shares)(Significant Subsequent Events)
None.

p. 22