Report to shareholders

Business Report 2023
April 1, 2023 - March 31, 2024

Hodogaya Chemical Group: Management Philosophy
Through constant innovation of chemical technology, we will provide high-quality products and services
throughout the world and contribute to the creation of an environmentally conscious society.

Business Overview
One of the things that make the Hodogaya Chemical group unique is that in each sector, whether it is
Functional Colorants, Specialty Polymers, Basic Chemicals, Agro-Science, or Logistics, etc., there is a highly
specialized group company. With Research & Development, Manufacturing, and Sales working together in a
Trilateral Business Plan, we are able to meet the various needs of our customers quickly, and with products
and service of the highest quality.

Hazardous materials warehousing

Materials for copiers and printers
Color and Dyestuff
OLED Materials

Polyurethane ingredients

Herbicides, Pesticide

Waterproofing materials(Urethane, Cementitious)

Hydrogen peroxide andIntermediates for pharmaceuticals

related products

Financial Results
FY 2023: Consolidated Results (Millions of Yen)
FY 2023

ChangesResults

Gains/Losses

Net sales

44,261+2.2%

Operating profit

3,951+6.8%

Ordinary profit

4,711+11.9%

Profit attributable to owners of parent

2,480+11.6%- 1 -Mid-term management plan (FY2021 to FY2030)
The Hodogaya Chemical Group has been promoting our mid-term management plan (FY2021 to FY2030)
that began in FY2021.
In establishing this mid-term management plan, we have focused on how, based on the issues found in"HONKI 2020", the Hodogaya Chemical Group, which aims to continue to exist for 200 years, realizes growthin the next 10 years under ambiguous situations.
Despite a hard-to-predict condition, we have set our "ideal figure" to be achieved in 10 years, with"megatrends" up to FY2030 in mind.
Using a "backcasting" method, the plan has drawn up a growth scenario for the Group over thenext 10 years.

PURPOSE [Management Philosophy]
Through constant innovation of chemical technology, we will provide high-quality products andservices throughout the world and contribute to the creation of an environmentally conscious
society.

[Outline of the Mid-term Management Plan]- 2 -”SPEED 25/30” aims at a speedy transformation of the Hodogaya Chemical Group to the "target figure" by
FY2025 and to the "ideal figure" in FY2030.
In this hardly predictable age, we have first defined a figure that we seek to achieve in FY2030 as our "idealfigure" and developed a 10-year scenario using a "backcasting" method. As its halfway point, we havedrawn up our "target figure" to be achieved in FY2025.

Management Targets (Financial)
Financial target

FY2023 results

FY2024 forecast

FY2025 managementtargetNet sales¥44.2 billion¥48.0 billion¥50.0 billion

Operating profit¥3.9 billion¥4.5 billion¥7.5 billion

Operating margin

8.9％

9.4％

15％

ROE

5.5％

―9％

Management Targets (Non-financial)
Non-financial target

FY2023 results

FY2025 management targets

0.506kl

0.606kl(per million JPY of net sales)(per million JPY of net sales)

0.842t0.868t(CO2 emission intensity) (※)(per million JPY of net sales)(per million JPY of net sales)

Industrial waste volumes

2,523tSame level or less than previous FY

ESG evaluation score

3.6

3.7–

Gradually raise score

Percentage of

11.3%

13%

female managers(FY2022 results)

Energy intensity
CO2 emissions(FTSE Russell score)
Engagement score(※) Estimated figures as of 20 May 2024. Definitive figures will be disclosed in the Integrated Report 2024.

- 3 -Overview By Business Segment
Functional Colorants
OLED Materials

OLED Materials (Transport Materials, Emitting Materials, Capping LayerMaterials), Bio Materials

Colorants

Aluminum Coloring Dyes, Stationery Dyes, Dyes for Hair Color Treatment, Food
Additives

Imaging Materials

Materials for Copier Toner, Organic Photo Conductor Materials

Advanced Device

Dyes for Color Filters, Near-infrared Absorption Materials, Organic Solar Cell

Materials

Materials

Specialty Polymers
Polyurethane Materials

Urethane Materials, Adhesives, Release Agents

Construction Materials

Waterproof Materials for Civil Engineering and Construction, Waterproofing
and Leak-Plugging WorkSpecialty Chemicals

Intermediates for Pharmaceutical, Functional Polymers and Electronics

Basic Chemicals
Industrial Chemicals

Hydrogen Peroxide and Derivatives, Industrial Chemicals

Agro-Science
Agrochemicals andHerbicides, Pesticides, Agricultural Materials (Oxygen Supply Materials)

Agricultural Materials

Logistics
Logistics

Warehousing, Consigned Freight Forwarding, ISO Tank Container Storage
Services- 4 -CONSOLIDATED FINANCIAL STATEMENTCONSOLIDATED BALANCE SHEETSMILLIONS OF YEN
2023

2024

Mar. 31Mar. 31

Total Current Assets

36,596

38,675

Total non-current assets

35,454

42,482

23,72928,665241558

11,483

13,25872,051

81,157

Total current liabilities

12,972

14,770Total non-current liabilities

9,181

8,943

Total Liabilities

22,15323,714

Total shareholders' equity

36,111

38,197

Capital stock

11,196

11,196

Capital surplus

7,943

7,933

Retained earnings

18,612

20,660Treasury shares(1,640)(1,593)

Total accumulated other comprehensive income

6,723

9,537

Non-controlling interests

7,061

9,708

Total net assets

49,89757,443

Total liabilities and net assets

72,051

81,157ASSETS

Total property, plant and equipment
Total intangible assets
Total investments and other assets
Total Assets
LIABILITIES- 5 -CONSOLIDATED STATEMENTS OF INCOMEMILLIONS OF YEN
FY 2023

FY 2024

Apr.1-Mar.31

Apr.1-Mar.31

Net Sales

43,32444,261

Cost of sales

26,654

27,162

Total selling, general and administrative expenses

12,96813,147

Operating profit

3,701

3,951

Total non-operating income

652

931

Total non-operating expenses

141

171

4,211

4,711

Total extraordinary income

1260

Total extraordinary losses

66

18

Profit before income taxes

4,271

4,693

Total income taxes

1,081

956

Profit

3,189

3,737

966

1,256

2,223

2,480

Ordinary profit

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 6 -STOCK (AS of March 31, 2024)
AUTHORIZED NUMBER OF SHARES

20,000,000
NUMBER OF COMMON SHARES ISSUED

8,413,726（including 274,374 treasury shares)
NUMBER OF SHAREHOLDERS

6,534
MAIN SHAREHOLDERS (TOP 10 COMPANIES)
Number of Shares Held

Shareholder

Percentage of Shares
Held (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

1,093,300

13.4

Tosoh Corporation

700,000

8.6

Custody Bank of Japan, Ltd. (Trust Account)359,300

4.4

Mizuho Bank, Ltd.

298,704

3.7

The Norinchukin Bank

227,430

2.8

Custody Bank of Japan, Ltd. (Trust Account E)

203,000

2.5

Meiji Yasuda Life Insurance Company

164,535

2.0

The Toho Bank, Ltd.

148,399

1.8

The Yamaguchi Bank, Ltd.

130,000

1.6

MUFG Bank, Ltd.

120,107

1.5

Treasury stocks (274,374 shares) are not included in the above list.

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