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.

October 30, 2023

Consolidated Financial Results for the Nine Months Ended September 30,
2023 (Under Japanese GAAP)
Company name:Taki Chemical Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4025
URL:
https://www.takichem.co.jp/
Representative:
Takamoto Taki, Representative Director, President
Inquiries:
Osamu Okamoto, General Manager, General Affairs & Personnel Department
TEL:079-437-6002
Scheduled date to file quarterly securities report:
November 10, 2023
Scheduled date to commence dividend payments:–
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 September 30, 2023 (from January 1,2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended
September 30, 2023
September 30, 2022Millions of yen

25,04225,455

Note: Comprehensive income

Operating profit% Millions of yen

(1.6)
–

619
1,923

Profit attributable toowners of parent

Ordinary profit% Millions of yen(67.8)–

858
2,182% Millions of yen(60.7)–

702
1,670%(57.9)–For the nine months ended September 30, 2023: ¥2,841 million [61.0%]
For the nine months ended September 30, 2022: ¥1,765 million[–%]

Basic earnings per share
Nine months ended
September 30, 2023
September 30, 2022*(Percentages indicate year-on-year changes.)

Diluted earnings per share

Yen

81.10
192.95Yen––

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter of the previous fiscal year, and eachfigure for the nine months ended September 30, 2022 is the figure after applying the accounting standard and relevant
ASBJ regulations. The percentage of year-on-year change is not shown.

(2) Consolidated financial position
Total assets

Net assets

Millions of yenAs ofSeptember 30, 2023
51,692December 31, 2022
50,323
Reference:
EquityAs of September 30, 2023:¥34,418 million
As of December 31, 2022:¥31,948 million

Equity-to-asset ratio

Millions of yen%

34,49432,057

66.6
63.5

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
December 31, 2022
Fiscal year ending
December 31, 2023––––––

Fiscal year-end

Fiscal year ending
December 31, 2023
(Forecast)

Total

Yen

Yen

50.00

50.00

50.00

50.00

Note: Revisions to the forecast of cash dividends most recently announced: None
Breakdown of year-end dividend for the fiscal year ended December 31, 2022
Ordinary dividend:¥45.00Commemorative dividend:¥5.00 (Commemorating transition to the Prime Market)

3. Consolidated earnings forecast for the fiscal year ending December 31, 2023 (from January 1,2023 to December 31, 2023)
Net sales

Full year(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

38,0006.0

1,550(43.7)

1,900(39.6)

1,400(31.9)

161.67

Note: Revisions to the earnings forecast most recently announced: None

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
Newly included:
0 companies
Excluded:
0 companies(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: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
* For more information, please see “(3) Notes to Quarterly Consolidated Financial Statements(Changes in Accounting Policies)” in “2. Quarterly Consolidated Financial Statements andSignificant Notes Thereto” on page 8 of the appendix.
(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

9,458,768

As of December 31, 2022

9,458,768(ii) Number of treasury shares at the end of the period
As of September 30, 2023

792,644

As of December 31, 2022

798,931(iii) Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Nine months ended September 30, 2023

8,663,427

Nine months ended September 30, 2022

8,657,276* Quarterly financial results reports are exempt from a quarterly review conducted by certified publicaccountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The earnings forecast is based on information available to the Company as of the date of this document as well as certain
assumptions it believes to be reasonable, and actual results may differ materially due to various factors. Please also see“(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information” in “1. QualitativeInformation on Quarterly Financial Results” on page 3 of the appendix.

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2023

Appendix Table of ContentsIndex
1. Qualitative Information on Quarterly Financial Results ........................................................................... 2(1) Explanation of Operating Results ....................................................................................................... 2(2) Explanation of Financial Position ...................................................................................................... 3(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information............... 3
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .......................................... 4(1) Quarterly Consolidated Balance Sheet ............................................................................................... 4(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income ...................................................................................................................... 6(Quarterly Consolidated Statement of Income) (First nine-month period) ........................................ 6(Quarterly Consolidated Statement of Comprehensive Income) (First nine-month period) .............. 7(3) Notes to Quarterly Consolidated Financial Statements ...................................................................... 8(Notes on Going Concern Assumption) ............................................................................................. 8(Notes on Significant Changes in Shareholders’ Equity) ................................................................... 8(Changes in Accounting Policies) ...................................................................................................... 8-1-Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2023

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
Given the backdrop of rebounding economic and social activities, during the nine-month period underreview, the Japanese economy was expected to continue recovering gradually due partly to the effectsof various government policies. However, the situation remained uncertain due to downside risks
caused by price increases, fluctuations in financial and capital markets, and other factors.
Working against this backdrop, the Group focused on enhancing the profitability of its current
businesses in line with the Medium-term Management Plan 2023 launched in January 2021. Net sales
for the nine months under review totaled ¥25,042 million (down 1.6% versus the same period lastyear), due to factors such as rising raw materials prices and energy costs, operating profit was ¥619
million (down 67.8% versus the same period last year), ordinary profit was ¥858 million (down 60.7%versus the same period last year), and profit attributable to owners of the parent was ¥702 million(down 57.9% versus the same period last year).
Operating results by segment are as shown below.
Agriculture
While fertilizer sales prices increased due to higher raw material prices, sales volume declined
sharply due a decline in demand as people refrained from purchasing in expectation of a drop inprices, resulting in net sales of ¥6,793 million, a decrease of 8.2% versus the same period last year.
Chemicals
Sales of water treatment chemicals totaled ¥7,989 million, a significant increase of 16.3% versus
the same period last year, as the sales volume increased due to steady shipments of ultra-highbasicity polyaluminum chloride and due to work to revise selling prices resulting from higher raw
material prices.
Sales of functional materials amounted to ¥3,333 million, a significant decrease of 23.1% versus
the same period last year, due to lower sales volume of high-purity tantalum oxide for smartphones
and aluminum chloride with high basicity for automotive ceramic fibers as a result of significantly
falling demand.
Sales of other chemical products totaled ¥149 million, up 1.9% versus the same period last year.
As a result, net sales came to ¥11,471 million, up 1.1% versus the same period last year.
Construction materials
Net sales totaled ¥2,292 million, up 9.1% versus the same period last year as a result of an increase
in selling prices of gypsum board despite the sales volume remaining flat.
Petroleum
Net sales came to ¥1,443 million, a decrease of 9.7% versus the same period last year, due to adecline in fuel oil sales volume as a result of falling demand.
Real estate
Net sales totaled ¥1,017 million, up 1.6% versus the same period last year with rental income at
shopping centers remaining at the same level as the same period last year.

-2-Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2023

Transportation
Net sales rose 0.9% versus the same period last year to ¥2,024 million as handling volume
increased despite a decrease in transported cargo.
(2) Explanation of Financial Position
Total assets at the end of the third quarter of the current fiscal year came to ¥51,692 million (up ¥1,369
million from the end of the previous fiscal year). Current assets totaled ¥23,201 million (down ¥2,838
million from the end of the previous fiscal year) due primarily to decreases of ¥1,136 million in cash
and deposits, ¥2,367 million in notes and accounts receivable - trade, and ¥225 million in raw materials
and supplies, despite an increase of ¥958 million in merchandise and finished goods. Non-current
assets came to ¥28,491 million (up ¥4,207 million from the end of the previous fiscal year) due
primarily to increases of ¥1,174 million in property, plant and equipment and ¥3,126 million in
investment securities.
Total liabilities amounted to ¥17,198 million (down ¥1,068 million from the end of the previous fiscalyear) due primarily to decreases of ¥1,854 million in notes and accounts payable - trade and ¥617
million in income taxes payable, despite increases of ¥417 million in accounts payable - other, ¥258
million in provision for bonuses, and ¥864 million in deferred tax liabilities.
Net assets totaled ¥34,494 million (up ¥2,437 million from the end of the previous fiscal year) due
primarily to increases of ¥269 million in retained earnings and ¥2,170 million in the valuationdifference on available-for-sale securities.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
No changes have been made to the earnings forecast for the fiscal year ending December 31, 2023,
which was announced on February 13, 2023.

-3-

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2023

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheet(Millions of yen)
As of December 31, 2022

As of September 30, 2023

6,256
10,002

5,119
7,635

2,196

2,217

4,085
271
2,292
947
(13)
26,039

5,044
265
2,067
862
(11)
23,201

22,324(15,652)
6,672
16,810(15,346)1,463
1,494(1,383)
111
6,455
457
(93)
364
245
15,312

22,360(16,003)
6,357
16,858(15,629)
1,229
1,547(1,414)
133
7,086
457(114)342
1,337
16,486406
91418320
916347

8,361
29
196
(35)
8,552
24,28350,323

11,488
19184(35)
11,65728,491
51,692

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished 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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
SoftwareRight to use water facilities, etc.
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2023
(Millions of yen)
As of December 31, 2022

As of September 30, 2023

6,785
369
60
35
1,372
627
77
42
602
9,973

4,930
371
60
35
1,789
10
22
300
620
8,141

395
378
1,131
3,693
2,509
185
8,293
18,266

335
351
1,995
3,687
2,537
149
9,056
17,1982,147
1,398
25,511(729)
28,3272,147
1,420
25,781(723)
28,625

3,612

5,783

8
3,621
108
32,05750,323

9
5,793
75
34,494
51,692

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Guarantee deposits received
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 incomeValuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2023

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income(Quarterly Consolidated Statement of Income)(First nine-month period)(Millions of yen)
Nine months ended
September 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interestsProfit attributable to owners of parent-6-Nine months ended
September 30, 2023

25,45519,037
6,418
4,495
1,923

25,042
19,967
5,075
4,455
619

4
199
92
296

3
208
55
267

912
16
37
2,182

812
6
27
858

145
–
145

–
214
214

14
14
2,313
815
(157)
657
1,656
(13)
1,670

–
–
1,073
491
(87)
403
669
(32)
702

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2023

(Quarterly Consolidated Statement of Comprehensive Income)(First nine-month period)(Millions of yen)
Nine months ended
September 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests-7-Nine months ended
September 30, 2023

1,656

669

103
4
108
1,765

2,170
1
2,171
2,841

1,779

2,874

(13)

(32)

Taki Chemical Co., Ltd. (4025) Financial Results for the Nine Months Ended September 30, 2023

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Not applicable(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Group has applied the “Implementation Guidance on Accounting Standard for Fair ValueMeasurement” (ASBJ Guidance No. 31, June 17, 2021) from the beginning of the first quarter of thefiscal year under review, and it has applied the new accounting policy provided for by theImplementation Guidance on Accounting Standard for Fair Value Measurement prospectively inaccordance with the transitional measures provided for in paragraph 27-2 of the Implementation
Guidance on Accounting Standard for Fair Value Measurement. This has no effect on the quarterly
consolidated financial statements.

-8-