May 13, 2022
Consolidated Financial Results of the Fiscal Year Ended on March 31, 2022
andOutlook for Fiscal Year Ending on March 31, 2023
Figures in Million Yen, unless otherwise noted
1. Revenue and Income

from April 1, 2021 through March 31, 2022

Revenue

FY 2022 ended on
March 31, 2022

Converted into Million
U.S. dollars
FY 2021 ended onMarch 31, 2021
Change to FY2022
from FY2021

32,785
Old Standard
34,696

Operating
IncomeOrdinary
IncomeNet Income
attributableto owners ofparent

1,982

2,310

1,650

152.71 Yen

17.6

20.5

14.6

US$1.35▲15145▲1,152▲114.84 Yen

1,998

2,1642,802-----

291.6
Old Standard
308.6
Old Standard
30,768Net Income
Per Share

2,016
Old Standard
3,928

Percent Change fromFY2021 numbers

6.6%

Initial projection forFY2022

32,000600600500-

Most recent FY2022
projection released onJanuary 21,2022

34,000

1,800

2,200

1,800

-

Change from FY2022
Initial Projection

785

1,382

1,710

1,150-

Change from FY2022
Most recent Projection▲1,215182

110

▲150-

Note: U.S. dollar amounts are converted from Yen, for convenience only,at the rate of US$1.00 = ¥112.40

2. Financial Status

March 31, 2022
Total Assets

Net Assets

Capital to Asset
Ratio

Net Assets
Per Share

End of FY 2022
March 31, 2022

43,574

17,61630.9%

1,113.45 Yen

Converted into Million
U.S. dollars

355.9

143.9

-US$9.09

End of FY 2021
40,65815,313
28.3%
March 31, 2021
Note: U.S. dollar amounts are converted from Yen, for convenience only,at the rate of US$1.00 = ¥122.41

940.17 Yen

3. Forecast of Current Fiscal Year, which will end on March 31, 2023
Net Income
Revenue

Operating

Ordinary

attributable toNet Income

IncomeIncomeowners ofPer ShareparentFirst Half

16,000300

35050044.34 Yen

Whole fiscal year

33,500

1,000

1,100

1,000

88.67 Yen

Observation of whole FY2022 (April 2021 to March 2022)
During Fiscal Year (FY) 2022, the sales of Semiconductor-related
products and Electronic Materials and the sales of Toner products showedstrong recovery from COVID-affected weak sales of previous FY.

Inaddition, we acquired new business of Optical Film used on smartphones
during First Half.

As a result, our full FY sales numbers reached ¥32,785

million, up ¥2,016 million or 6.6% from previous FY sales.
Beginning current FY, TOMOEGAWA has adopted ASBJ Statement
No. 29 Accounting Standard for Revenue Recognition, whose effect on oursales is ▲¥1,911 million.

If we had applied old standard for FY2022, itshould have been an increase of ¥3,928 million or 12.8%.
As for the profit, our consolidated Operating Income was ¥1,982
million, up ¥1,998 million from last FY number, thanks to the reduction of fixedand other cost brought by the structural reform we have been conducting forseveral years, followed by the large sales increase.

Ongoing Yen

depreciation against US Dollar since Second Quarter also contributed, andcash inflow derived from trial production of new products was much larger
than originally estimated.

There were material and energy cost increases,

and labor cost increases as the result of terminating temporal cost reduction
scheme.

The effect of such cost increases were minimized by transferring

them to the product sales price.

Also, skill training to develop multi-task

workers, and flexible worker allocation enabled us to handle production underthe environment of rapid demand fluctuation.

Effect of ASBJ Statement No.

29 adoption on Operating Income is ▲¥4 million.

Ordinary Income, which includes profit of high-performing equity
method affiliate that handles processing film used for display, was ¥2,310
million, up ¥2,164 million from that of previous FY.

Even though the sales ofidle assets of the closed US toner factory site delayed to April 2022, Net
Income reached ¥1,650 million, up widely by ¥2,802 million, thanks partly tothe gain from sales of Nihon Card Co., Ltd. stock and special profit derived

from the sales of traditional paper business-related assets to Sanzen Paper
Manufacturing Co., Ltd.
During Fourth Quarter, even though the market activity of
Semiconductor-related products, Electronic Materials and Toner saw littlechange, both the sales and profit showed apparent declines.

The factors

contributed to the Q4 sales decline are the shipments moved ahead to Q3 inorder to avoid logistic jam, and Chinese New Year factory closures in China.
The factors contributed to the Q4 profit decline are costs related to aggressive
balance sheet improvement activities such as the inventory disposal for thepreparation of the No.9 Paper Milling machine shutdown, and revision oflower cost method application policy.
During FY2022, with the improved business performance and salesof some assets, TOMOEGAWA achieved its total interest-bearing debt
amount reduction of ¥1,800 million, which led to improvement of D/E ratio (to0.7) and Net Asset ratio (to 40.4%).

Also, through refinancing of existing

debt with new syndicated loan, TOMOEGAWA successfully changed its debt
structure to allow us more time before loan repayments, which leads us togreater financial stability.

The Projection of FY2023 and Dividends payment
TOMOEGAWA Group’s current priority is on the accomplishment of
new “5 year Mid-term Business Plan” that started from FY2022 and will end inFY2027.

Under that plan, re-evaluation of business portfolio and structuralreform are being conducted to improve our financial structure.
During FY2022, the plan’s first year, we were able to record Operating
Income close to the plan’s final year Operating Income target of ¥2,000 million.
This way-higher-than-original-plan result was achieved thanks to the reduction offixed and other cost brought by the structural reform we have been conducting forseveral years, such as the shutdown of No.7 paper milling machine andwithdrawal from toner production in USA.

The business environmentimprovements followed that also contributed to higher results.

Those

improvements were namely, demand recoveries in Semiconductor-relatedproducts, Electronic Materials and Toner, acquisition of new business related tofilm, and ongoing Yen depreciation.
At the start of the current FY, the second year under the “5 year Midterm Business Plan”, there is wide-spread concern that the situation in Russia
and Ukraine will negatively affect the global economy.

As for TOMOEGAWA,

we do not foresee the structural shift in the demand of products that broughtstrong result in FY2022, which are Semiconductor-related products, Electronic
Materials and Toner, for the near future.

The contribution from launches of new

products such as the equipment used in semiconductor manufacturing process,and positive effects of Yen depreciation on our sales and profit are alsoexpected.
On the other hands, cost increase is projected as material and energy
prices continue to rise, and labor cost increase is expected as the result of thetermination of temporal cost reduction scheme.

In addition, for the Tonerbusiness, which is a key business of us, we are expecting to have difficulty in thenear future for raw material procurement due to the shortage of supply.

Also,

complication in logistics in China, where we have multiple production sites,
becomes a real issue after we observed the lockdown in Shanghai.

Because of

these factors, even though we expect gain of ¥430 million during the First Halffrom the sales of the idle assets of former US toner factory site that was closed in
September 2020, sales and profit are expected to temporarily suffer.
For the Second Half, we project normalization of global logistics and willtake measures of cost transfer to sales price, and will start raw materialpurchases from alternative suppliers.

Also, the shutdown of No.9 paper millingmachine at March 2022 will bring even larger cost reduction effect during FY2023
than in FY2022.

Production efficiency improvement efforts, which we have been

conducting, are expected to produce further results during FY2023.

With theprojection of launches and mass production of new products taken intoconsideration, we estimate our FY2023 numbers for Sales, Operating Income,Comprehensive Income and Net Income will be ¥33,500 million, ¥1,000 million,¥1,100 million and ¥1,000 million, respectively.

We will make ¥15 per share dividend payment under the policy that
honors steady and continuous dividend payment.
Your continuous support of TOMOEGAWA will be greatly appreciated.