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: February 10, 2023 (14:00 JST)

Consolidated Financial Results
for the Nine Months 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 to file quarterly securities report:
February 13, 2023
Scheduled date to commence dividend payments:
None
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended March 31, 2023
(from April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended(Percentages indicate year-on-year changes.)

Operating income

Millions of yen% Millions of yen%

Millions of yen%

Millions of yen

%

1,932

(3.0)

1,749

19.9

1,992

‐

1,458

‐

December 31, 2022

25,865

6.6

1,827

11.3

December 31, 2021

24,254

10.8

1,641

‐

Note: (1) Comprehensive income For the nine months ended December 31, 2022:
For the nine months ended December 31, 2021:
Basic earnings
per share
Nine months ended¥1,915 million¥1,795 million[6.7%][‐%]

Diluted earnings
per share
Yen

December 31, 2022

Net income attributableto owners of parent

Ordinary income

Yen

161.40‐December 31, 2021
144.04‐
Note: (2) The above per share information pertains to Common Stock.

(2) Consolidated financial position
Total assets
As of

Net assets

Net assets
Per Share

Equity-to-asset ratio

Millions of yen

December 31, 2022

42,925

19,21535.0

1,247.42

March 31, 2022

43,574

17,61630.9

1,113.45

Reference:

EquityAs of December 31, 2022:¥15,012 million
As of March 31, 2022:¥13,479 million
Note: The above per share information pertains to Common Stock.

%

Yen

Millions of yen

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

‐

0.00

‐

‐

0.00

‐

Fiscal year-end

Fiscal year ending
March 31, 2023 (Forecast)

Total

Yen

Yen

15.00

15.00

15.00

15.00

Note:
(1) Revisions to the forecast of cash dividends most recently announced: None
(2) 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 2023 (from April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Full year

34,500Operating income% Millions of yen

5.2

1,500

Net income
Basic earnings
attributable to owners
per shareof parent

Ordinary income% Millions of yen(24.3)

1,550% Millions of yen(32.9)

Note: Revisions to the forecast of consolidated financial results most recently announced: None

1,500

%

Yen

(9.1)

134.99

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) 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
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

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 December 31, 2022

18,354 shares

As of March 31, 2022

169,232 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Nine months ended December 31, 2022

10,371,052 shares

Nine months ended December 31, 2021

10,126,800 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
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 notintended as a promise by the Company that they will be achieved. Actual results may differ materially due tovarious factors.
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, 2023 (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

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
Quantitative Information
1. Net sales and Income ･･････････････････････････････････････････････････････････････････ 2
2. Main Segment figures ･･････････････････････････････････････････････････････････････････ 3
3. Financial Position ･････････････････････････････････････････････････････････････････････ 3
4. Forecast of Current Fiscal Year, which will end on March 31, 2023 ･･････････････････････････････ 3

Qualitative Information･Observation of Current Third Quarter Result ･･････････････････････････････････････････････････ 4･Overview of main segment ････････････････････････････････････････････････････････････････ 4･Explanation regarding Financial Position ･････････････････････････････････････････････････････ 5･The Forecast of the reminder of FY2023 ･････････････････････････････････････････････････････ 6

p. 1

February 10, 2023
Consolidated Third Quarter Results
April 1, 2022 through December 31, 2022 of Fiscal Year Ending on March 31, 2023
Figures in Million Yen, unless otherwise noted
1. Net sales and Income

from April 1, 2022 through December 31, 2022
(Note1)

Net sales

Operating
IncomeOrdinary
IncomeNet Income

Net Income
Per Share

Current Fiscal Year (FY 2023)
Third Quarter (3Q)

25,865

1,827

1,932

1,749

161.40Yen

Converted into Million
U.S. dollars (Note2)

189.5

13.4

14.2

12.8

US$1.18

Last Fiscal Year (FY 2022) 3Q

24,254

1,641

1,992

1,458

144.04Yen

Change to FY 2023 3Q
from FY 2022 3Q

1,611

185

▲59

290

17.36Yen(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 = ¥136.52

p. 2

2. Main Segment figures
FY 2023 3Q

FY 2022 3Q
Net sales

Toner

9,042

10,586

1,543

871

1,882

1,010

4,566

4,261

▲304

829

157

▲671

Net sales

7,547

7,968

420

Operating Income

▲79

▲65

13

Net sales

2,930

2,869

▲61

225

120

▲105

Operating Income
Net sales

Electronic Materials

Operating Income

Functional Sheet

Change to FY
2023 3Q
from FY 2022 3Q

Security MediaOperating Income

3. Financial Position

December 31, 2022
Total Assets

Net Asset

Equity-to-asset
ratio

Net assets
Per Share

End of FY 2023 3Q
December 31, 2022

42,925

19,21535.0%

1,247.42Yen

Converted into Million
U.S. dollars (Note)

323.5

144.8

-

US$9.40

End of FY 2022
43,574
17,61630.9%
1,113.45Yen
March 31, 2022
Note1: The above per share information pertains to Common Stock
Note2: U.S. dollar amounts are converted from Yen, for convenience only,at the rate of US$1.00 = ¥132.70

4. Forecast of Current Fiscal Year, which will end on March 31, 2023
Forecast released(Release Date)

Net sales

Operating
IncomeOrdinary
IncomeWhole FY
(July 22,2022)

34,500

1,500

p. 3

1,550

Net Income

Net Income
Per Share

1,500

134.99Yen

Observation of Current Third Quarter Result
During the Third Quarters (3Q) of the Fiscal Year (FY) 2023 (April to December 2022), market
conditions for Semiconductor-related businesses deteriorated, but Toner business remained strong, andthe Yen depreciation through mid-November boosted overseas-related sales. As a result, we recorded
3Q sales of ¥25,865 million, up ¥1,611 million or +6.6% from that of last FY.
As for the profit, our consolidated Operating Income was ¥1,827 million, up ¥185 million or+11.3% from last FY 3Q number. Following the adjustment in the display-related market from the second
quarter, semiconductor market conditions also began to adjust, resulting in a deterioration of profit andloss in Electronic Materials segment. In addition to raw material price hikes, the increase in LNG for
power generation and steam production at our plants and purchased electricity rates continued throughDecember. Against these factors of decrease in profit, we thoroughly added the cost increase to theselling price, and this was supplemented by the positive effect of increased income from overseas-related
sales.
The consolidated Ordinary Income is ¥1,932 million, down ¥59 million or ▲3.0% from that oflast FY 3Q, due to the decrease in the equity gain from an affiliated company that handles processing of
optical film used for displays.
Net Income is ¥1,749 million, up ¥290 million or +19.9% from that of last FY 3Q, 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.
Overview of main segment< Toner >As for the Toner Segment, Net sales were ¥10,586 million, up ¥1,543 million or +17.1% fromthat of last FY 3Q, and Segment (operating) income was ¥1,882 million, up ¥1,010 million or +115.9%
from that of last FY 3Q.
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, although the Segment was affected by the sharp rise in procurement prices ofraw materials and fuels, we were able to transfer part of the impact in our selling prices.
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 suppliers' situation, which was a concern at the beginning of current
FY.
< Electronic Materials >As for the Electronic Materials Segment, Net sales were ¥4,261 million, down ¥304 million or▲6.7% from that of last FY 3Q, and Segment (operating) income was ¥157 million, down ¥671 million or▲81.0% from that of last FY 3Q.
p. 4

The sales declined due to a drop in demand as the semiconductor and electronic materials
markets rapidly entered an adjustment phase, and the 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 3Q, due to the decrease in sales 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 ¥7,968 million, up ¥420 million or +5.6%
from that of last FY 3Q, and Segment (operating) loss was ¥65 million (loss of ¥79 million in last FY 3Q).
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 some pricerevisions, resulting in current 3Q sales increase from that of last FY 3Q.
Profits were affected by higher procurement prices for raw materials and fuel, but the deficit was
reduced compared to Last FY 3Q, 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 ¥2,869 million, down ¥61 million or ▲2.1%
from that of last FY 3Q, and Segment (operating) income was ¥120 million, down ¥105 million or ▲46.7% from that of last FY 3Q.
Even though the increased sales of card-related products and other products, net sales declined
due to the continued stagnant demand for passbooks and other products, as well as the conclusion of a
one-time special demand project in the previous year.
On the cost front, despite the effect of efforts to improve the in-house production ratio and further
curb fixed costs, the Segment was affected by rising raw material and fuel prices, and the write-down ofsome inventories.
Explanation regarding Financial Position
Total assets amounted to ¥42,925 million at the end of the Third Quarter of current FY, down
¥649 million from the end of last FY. Current assets totaled ¥21,435 million, up ¥40 million from theend of last FY. This was mainly due to an increase in inventories, despite a decrease in notes andaccounts receivable compared to the end of last FY. Non-current assets totaled ¥21,490 million, adecrease of ¥689 million from the end of last FY. This was mainly due to the sales of the land andbuildings of the US toner factory and a decrease in property, plant and equipment value by depreciation
over time.
Total liabilities amounted to ¥23,710 million, down ¥2,247 million from the end of last FY.
Current liabilities totaled ¥14,697 million, down ¥145 million from the end of last FY. This was mainly
due to a decrease in notes and accounts payable and a decrease in provision for bonuses for winterbonus payments, despite an increase in current portion of long-term loans payable.
p. 5

Non-current

liabilities totaled ¥9,012 million, down ¥2,102 million from the end of last FY, mainly due to the repaymentof long-term debt. Interest-bearing debt decreased ¥1,570 million from the end of last FY to ¥11,084
million.
Net assets amounted to ¥19,215 million, up ¥1,598 million from the end of last FY. This wasdue to the recording of net Income attributable to owners of parent, a decrease in treasury stock resulting
from the conversion of a consolidated subsidiary into a wholly owned subsidiary through a shareexchange.

The Forecast of the reminder of FY2023
As for the Fourth Quarters of current FY, in the Toner business, which has been the driving force
behind the company's performance current FY, orders are expected to decline due to inventory
adjustments of some products, mainly for major customers, and the company plans to make temporary
production adjustments. During this time, it will concentrate on facility modification, maintenance andrepair work that could not be done during the busy season.
In the Semiconductor-related business, although we expect growth over the medium to longterm, we expect the current adjustment phase will continue for some time.
Furthermore, although we expect that the continuous increase in procurement prices of raw
materials and fuels will settle down in the future, we expect that the effects on profit and loss will be fully
realized toward the end of current FY via semi-finished products and finished goods inventories.
We have decided to maintain the full-year forecast unchanged from that announced on July 22,2022, even though each stage of profit has already exceeded the annual announcement, while taking
into account the results through 3Q, in consideration of the expected deterioration in the businessenvironment and full-scale cost increases, as well as the ongoing appreciation of the yen, especially inthe toner business, which is expanding its business overseas.
By doing so, we make sure to realize our most recent forecast numbers.
Your continuous support of TOMOEGAWA will be greatly appreciated.

p. 6