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.

Consolidated Financial Results for the First Quarterof the Fiscal Year Ending December 31, 2022 [J-GAAP]May 11, 2022

Company name:Tokyo Ohka Kogyo Co., Ltd.
Listing:
Tokyo Stock Exchange (Prime Market)
Securities Code:4186
URL: https://www.tok.co.jp/eng
Representative: Noriaki Taneichi, President and Chief Executive Officer
Inquiries: Daisuke Matsuyama, General Manager, Accounting Division TEL: +81-44-435-3000
Scheduled date to file quarterly securities report:
May 12, 2022
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2022 (January 1, 2022
to March 31, 2022)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year-on-year.)Net salesFirst three months ended
March 31, 2022
March 31, 2021

Operating income

Ordinary income

Profit attributable toowners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

39,59930,971

27.9
11.5

6,944
4,808

44.4
47.5

7,230
4,953

46.0
53.6

4,970
3,435

44.7
53.3

(Note) Comprehensive income:First three months ended March 31, 2022
First three months ended March 31, 2021

Basic earnings per shareFirst three months ended
March 31, 2022
March 31, 2021

¥7,465 million¥7,004 million[ 6.6%][ - %]

Diluted earnings per share

Yen

Yen

123.7582.75

123.53
82.55(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2022
December 31, 2021
(Reference)

Net assets

Millions of yen

220,772
217,264

Equity:Equity ratio

Net assets per share

Millions of yen%

167,803
165,190

As of March 31, 2022: ¥158,542 million

Yen

71.8
71.7

3,947.16
3,880.18

As of December 31, 2021: ¥155,829 million

2. Cash Dividends
Annual dividends per shareFirst quarter-end
Fiscal year ended December 31, 2021
Fiscal year ending December 31, 2022
Fiscal year ending December 31, 2022
(Forecast)-Second quarter-end Third quarter-end

Yen

Yen

62.00

-

78.00

-

Fiscal year-end

Yen

Total

Yen

Yen

94.00

156.0080.00

158.00(Note) Revisions to the most recently disclosed dividend forecasts: None

3. Consolidated Financial Results Forecast for Fiscal Year Ending December 31, 2022 (January 1, 2022 to
December 31, 2022)(% indicates the rate of increase/decrease against the same period of the previous year)

Net salesFirst half
Full year

Millions of yen

78,500162,100

Operating income
%

21.1
15.7

Millions of yen

12,00024,600

Profit attributable toowners of parent

Ordinary income
%

25.3
18.8

(Note) Revisions to the most recently disclosed earnings forecasts: None

Millions of yen

12,30025,100% Millions of yen

22.4
15.9

8,000
16,700

Basic earnings
per share
%

25.0
(5.9)

Yen

199.14415.58

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation): None
(2) Application of special accounting treatment in preparing the 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
(Note): Please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to the Quarterly Consolidated Financial
Statements (Changes in Accounting Policies)” on page 10.

(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022
As of December 31, 2021

(ii)

42,600,000 shares
42,600,000 shares

Number of treasury shares at the end of the period
As of March 31, 2022
As of December 31, 2021

2,433,761 shares
2,439,651 shares(iii) Average number of shares outstanding during the period
First three months ended March 31, 2022
First three months ended March 31, 2021

40,162,516 shares
41,512,737 shares* The Financial Results report is outside the scope of a quarterly review by certified public accountants or an audit firm.
* Explanation of the proper use of earnings forecasts and other special notes
The earnings forecasts stated in this report are based on the information available as of the date of the release ofthis report, and actual results may differ from these forecasts due to a variety of factors.

○Table of contents of the attached document
1. Qualitative Information on Consolidated Financial Results for the First Three Months of the Fiscal Year Ending
December 2022 ··················································································································· 4(1) Explanation about Operating Results ···················································································· 4(2) Explanation about Financial Position ···················································································· 5(3) Explanation about Future Forecast Information including Consolidated Earnings Forecasts ·················· 5
2. Quarterly Consolidated Financial Statements and Major Notes ························································· 6(1) Quarterly Consolidated Balance Sheet ·················································································· 6(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ····· 8
Quarterly Consolidated Statements of Income
Quarterly Consolidated Statement of Income for the First Three Months ······································· 8
Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Comprehensive Income for the First Three Months················· 9(3) Notes to the Quarterly Consolidated Financial Statements ··························································· 10(Notes Concerning Going Concern Assumption) ······································································ 10(Significant Changes in Shareholders’ Equity) ······································································· 10(Changes in Accounting Policies) ························································································ 10(Additional Information) ·································································································· 11(Segment Information) ··································································································· 12-1-1. Qualitative Information on Consolidated Financial Results for the First Three Months of the Fiscal YearEnding December 2022
(1) Explanation about Operating Results

During the three months ended March 31, 2022, the global economy continued to show signs of recovery inmany regions while the effect of COVID-19 weighed on certain Asian economies.
Amid such circumstances, the Group launched “TOK Medium-Term Plan 2024,” a three-year medium-termplan ending in FY2024, under the management vision to become “The e-Material Global Company” contributing
to a sustainable future through chemistry. With the slogan of “Boost up TOK!!,” the Plan aims to attain the longterm vision TOK Vision 2030 by developing and promoting the following five company-wide strategies: (1)Increase global market share of cutting-edge photoresist, (2) Acquire and create core technologies in electronicmaterials and new fields, (3) Secure stable supply of high-quality products and establish an optimal production
system for the Group, (4) Improve employee engagement and promote people-oriented management, and (5)Build sound and efficient management foundation.
In the Material Business, net sales significantly increased year on year due to a growth in the semiconductor
market driven by the spread of 5G and IoT and the growing data server market, etc. In the Equipment Business,
net sales increased year on year against a backdrop of growing demand for high performance semiconductors.
As a result, for the three months ended March 31, 2022, the Group recorded net sales of ¥39,599 million (up27.9% year-on-year), operating income of ¥6,944 million (up 44.4% year-on-year), ordinary income of ¥7,230
million (up 46.0% year-on-year), and profit attributable to owners of parent of ¥4,970 million (up 44.7% year-onyear).
Effective January 1, 2022, the Group applied the “Accounting Standard for Revenue Recognition”(Accounting Standards Board of Japan (“ASBJ”) Statement No. 29, March 31, 2020), etc., and its impact was
insignificant. Please see “2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to Quarterly
Consolidated Financial Statements (Changes in Accounting Policies)” for details.
Operating results by segment are as follows:
1) Material BusinessNet sales in the Material Business segment, excluding internal transactions were ¥39,162 million (up 27.8%
year-on-year), and operating income was ¥8,216 million (up 33.6% year-on-year), mainly due to strong sales ofelectronic functional materials and high-purity chemicals.
(Millions of yen)Three months ended
March 31, 2021

Three months ended
March 31, 2022

Net sales

30,637

39,162

8,525

27.8%

Operating income

6,151

8,216

2,065

33.6%

Change%Overview by division is as follows.
In the Electronic Functional Materials Division, net sales increased to ¥21,093 million (up 16.3% year-on-year).
This was mainly due to increased net sales because sales of semiconductor photoresists, etc. remained steady,supported by spread of 5G and IoT, etc. and strong semiconductor demand for data servers although sales ofphotoresists for Micro Electro Mechanical Systems (MEMS), high-density integration materials, decreased as aresult of changes in users’ demand.
Net sales in the High-Purity Chemicals Division increased significantly to ¥17,870 million (up 43.1% year-onyear) mainly due to increased net sales because sales of chemicals attached to semiconductor photoresists used in
the semiconductor production process remained steady.
2) Equipment BusinessNet sales in the Equipment Business segment, excluding internal transactions were ¥436 million (up 30.7%
year-on-year), and operating loss decreased by ¥122 million from a year earlier to ¥1 million mainly because salesof materials related to wafer handling system Zero Newton® increased year on year.

Net sales
Operating loss

Three months ended
March 31, 2021

Three months ended
March 31, 2022

334
(124)

436
(1)

-2-

(Millions of yen)

Change

%

102
122

30.7%
－

(2) Explanation about Financial Position(Assets)
Total assets as of March 31, 2022 increased by ¥3,508 million from December 31, 2021 to ¥220,772 million.
Total current assets increased by ¥1,699 million mainly due to an increase in merchandise and finished goodsof ¥1,173 million.
Total non-current assets increased by ¥1,808 million mainly because other in property, plant and equipment
increased by ¥1,875 million due to capital investments.
(Liabilities)
Total liabilities as of March 31, 2022 increased by ¥895 million from December 31, 2021 to ¥52,968 million
mainly because current liabilities increased by ¥1,068 million due to an increase in notes and accounts payable trade.
(Net assets)
Total net assets as of March 31, 2022 increased by ¥2,613 million from December 31, 2021 to ¥167,803 million
mainly because retained earnings increased by ¥1,175 million due to recording profit and foreign currencytranslation adjustment increased by ¥1,841 million due to weak yen.
As a result, the equity ratio as of March 31, 2022 stood at 71.8%.

(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts
There has been no change in the earnings forecasts announced on February 14, 2022.
In the event that we need to revise them due to COVID-19, we will disclose promptly.

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)

FY12/21(As of December 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
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, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Retirement benefit asset
Long-term time deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-First quarter of FY12/22(As of March 31, 2022)

56,83533,895
3,999
9,451
4,606
7,292
2,921
(120)
118,883

56,89733,751
3,999
10,625
5,420
7,609
2,368
(89)
120,583

31,251
25,68056,932837

31,44927,55659,005
1,096

4,658
18,00017,957(6)
40,61098,380217,264

4,695
18,00017,397(6)
40,087100,189
220,772(Millions of yen)

FY12/21(As of December 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
long-term borrowings
Retirement benefit liability
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
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-5-First quarter of FY12/22(As of March 31, 2022)

19,250
3,900
4,278
2,488
9,739
39,656

20,280
3,900
2,042
3,531
10,97040,725

6,711
609
5,095
12,41652,073

6,711
639
4,892
12,24352,968

14,64015,207
124,806(11,818)
142,836

14,64015,207125,982(11,793)
144,036

6,851

6,568

5,618
522

7,460
477

12,993

14,505215
9,146
165,190
217,264

215
9,045
167,803
220,772

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Quarterly Consolidated Statement of Income for the First Three Months)(Millions of yen)First three months ofFirst three months of
FY 12/21
FY 12/22(January 1, 2021 – March 31, 2021) (January 1, 2022 – March 31, 2022)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit attributable toProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-30,971
19,722
11,2496,440
4,808

39,59925,212
14,387
7,442
6,944

29
28
310
62
431

32
52
426
83
594

16
249
20
286
4,953

19
242
47
309
7,230

1
1

－
－

25
0
25
4,929
1,170
(123)
1,047
3,881
446
3,435

4
－
4
7,226
1,597
54
1,651
5,574
603
4,970

(Quarterly Consolidated Statement of Comprehensive Income)(Quarterly Consolidated Statement of Comprehensive Income for the First Three Months)(Millions of yen)First three months ofFirst three months of
FY 12/21
FY 12/22(January 1, 2021 – March 31, 2021) (January 1, 2022 – March 31, 2022)

Profit attributable to owners of parent
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

-7-

3,881

5,574

1,115

(283)

2,016
(8)
3,122
7,004

2,219
(45)
1,891
7,465

6,151

6,483

852

982

(3) Notes to Quarterly Consolidated Financial Statements(Notes Concerning Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(Changes in Accounting Policies)(Application of the accounting standard for revenue recognition)
The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March
31, 2020, “Accounting Standard for Revenue Recognition”), etc. from January 1, 2022, and recognizes revenue at
an amount that it expects to receive in exchange for the promised goods or services when the control of the goods
or services is transferred to a customer.
The Group’s performance obligation is sales of goods, and we recognize revenue from domestic sales ofmerchandise and finished goods when the shipment is completed if control of the merchandise or finished goods istransferred to customers within a normal period after the shipment in accordance with the alternative treatment
provided for in Paragraph 98 of the Implementation Guidance on Accounting Standard for Revenue Recognition.
We applied the Accounting Standard for Revenue Recognition, etc. from January 1, 2022 pursuant to thetransitional treatment provided for in the proviso of Paragraph 84 of the Accounting Standard for Revenue
Recognition, with the cumulative effect of the retrospective application, assuming the new accounting policy had
been applied to periods prior to January 1, 2022, adjusted to the beginning balance of retained earnings as ofJanuary 1, 2022, but there was no impact on the beginning balance. The impact on the quarterly financial
statements is insignificant.
Pursuant to the transitional treatment provided for in Paragraph 28-15 of the “Accounting Standard for
Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), information on the breakdown ofrevenue arising from contracts with customers for the three months ended March 31, 2021 is not presented.
(Application of the accounting standard for fair value measurement)
The Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, July 4,
2019, “Accounting Standard for Fair Value Measurement”), etc. from January 1, 2022, and the new accounting
policies stipulated in the Accounting Standard for Fair Value Measurement, etc. are applied prospectively pursuant
to the transitional treatment stipulated by Paragraph 19 of the Accounting Standard for Fair Value Measurement
and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4,2019). The application has no impact on the quarterly consolidated financial statements.

-8-(Additional Information)(Transaction to grant the Company’s shares to employees, etc. through a trust)Based on the resolution at the Board of Directors meeting held on August 7, 2019, the Company introduced“Trust-Type Employee Stock Ownership Plan” (“Plan”) with an aim to enhance the Company’s welfare program aswell as to improve its medium- to long-term corporate value by providing employees with incentives for an increasein stock prices.
(1) Overview of the transaction
The Plan is an incentive plan for all employees in the “Tokyo Ohka Employees Stockholding Association”(“Stockholding Association”). Under the Plan, the Company sets up the “Tokyo Ohka Employee Stockholding
Association Trust” (“Stockholding Trust”) at a trust bank, and the Stockholding Trust purchases in advance thenumber of the Company’s shares expected to be purchased by the Stockholding Association over five years fromthe date the trust is set up and sells the shares to the Stockholding Association every month on a certain date. Any
gains on sale of shares accumulated in the trust upon expiry of the Stockholding Trust will be distributed as residual
assets to those satisfying the beneficiary eligibility requirements. As the Company provides guarantee for the loans
payable made by the Stockholding Trust to purchase the Company’s shares, the Company is liable to pay theoutstanding balance of the loans payable, equivalent to loss on sale of shares accumulated in the Stockholding Trust
due to a decline in stock prices, upon expiry of the Stockholding Trust.
The Plan aims to improve our medium- to long-term corporate value by providing employees with incentives
for an increase in stock prices and also to support employees’ asset building as a measures to enhance our welfare
program by promoting purchase and holding of shares through enhancement of the Stockholding Association.
(2) The Company’s shares remaining in the Trust
The Company’s shares remaining in the Trust are recorded as Treasury shares in Net assets at the carrying
amount at the Trust (excluding ancillary expenses). The carrying amount and number of treasury stock as ofDecember 31, 2021 and March 31, 2022 were ¥862 million and 206 thousand shares and ¥837 million and 201
thousand shares, respectively.
(3) The carrying amount of the loans payable recorded under the gross method
FY12/21¥611 million
First three months of FY12/22¥611 million-9-

(Segment Information)
Ⅰ First three months of the fiscal year ended December 2021 (January 1, 2021 – March 31, 2021)
1. Information about net sales, income/loss for each reportable segment(Millions of yen)

Reportable segment
Material
Business

Equipment
Business

Total

Reconciliations(Note) 1

Consolidated(Note) 2

Net sales
Net sales to customers

30,637334

30,971－30,971

Inter-segment sales ortransfers

－

8

8

(8)

－

Total

30,637342

30,980(8)30,971

Segment income (loss)

6,151

(124)

6,026

(1,218)4,808(Note) 1. Segment income (loss) amounting to ¥(1,218) million includes common costs of ¥(1,218) million, which are not allocated toreportable segments.
2. Segment income (loss) has been adjusted for the operating income appearing in the quarterly consolidated statements ofincome.

2. Information on impairment losses on non-current assets or goodwill by reportable segment
Not applicable.

- 10 -ⅡFirst three months of the fiscal year ending December 2022 (January 1, 2022 – March 31, 2022)
1. Information about net sales, income/loss and breakdown of revenue by reportable segment(Millions of yen)

Reportable segment
Material
Business

Equipment
Business

Total

Reconciliations(Note) 1

Consolidated(Note) 2

Net sales
Electronic functional
materials

21,093－21,093－21,093High-purity chemicals

17,870－17,870－17,870

Process equipment

－

436

436

－

436

Other

199

－

199

－

199

39,162436

39,599－39,599

－

－

－

－

－

Net sales to customers

39,162436

39,599－39,599Inter-segment sales
or transfers

－

27

27

(27)

－

Total

39,162463

39,626(27)

39,599Segment income (loss)

8,216

(1)

8,214

(1,270)

6,944

Revenue from contracts
with customers
Other revenue(Note) 1. Segment income (loss) amounting to ¥(1,270) million includes common costs of ¥(1,270) million, which are not allocated toreportable segments.
2. Segment income (loss) has been adjusted for the operating income appearing in the quarterly consolidated statements ofincome.

2. Information on impairment losses on non-current assets or goodwill by reportable segment
Not applicable.
3. Changes, etc. in reportable segments
As described in Changes in Accounting policies, the Company applied the Accounting Standard for
Revenue Recognition on January 1, 2022 and changed the accounting treatment of revenue recognition, andaccordingly, the method to calculate profit or loss of business segment was also changed.
The impact of this change on net sales and segment income (loss) for the three months ended March 31,
2022 was insignificant.

- 11 -