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, 2023 [J-GAAP]May 11, 2023
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, 2023
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
No(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December2023 (January 1,
2023 to March 31, 2023)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year-on-year.)Net salesFirst three months ended
March 31, 2023
March 31, 2022

Operating income

Millions of yen% Millions of yen

38,46339,599(Note) Comprehensive income:

(2.9)
27.9

% Millions of yen

5,392
6,944

(22.3)
44.4

First three months ended March 31, 2023
First three months ended March 31, 2022

Profit attributable toowners of parent

Ordinary income% Millions of yen

5,762
7,230

(20.3)
46.0

%

2,157
4,970

(56.6)
44.7¥4,479 million [- 40.0%]¥7,465 million [6.6%]

Basic earnings per share Diluted earnings per shareFirst three months ended
March 31, 2023
March 31, 2022

Yen

Yen

53.55
123.7553.47
123.53(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
December 31, 2022
(Reference)

Equity:Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

237,140
238,075

181,005
180,960

71.7
71.3

4,219.31
4,214.27

As of March 31, 2023: ¥169,976 million

As of December 31, 2022: ¥169,745 million

2. Cash Dividends
First quarter-end

Annual dividends per share
Second quarter-end Third quarter-end Fiscal year-end

Yen

Fiscal year ended December 31, 2022
Fiscal year ending December 31, 2023
Fiscal year ending December 31, 2023
(Forecast)

Yen

-

Yen

Total

Yen

Yen

78.00

-

82.00

160.00

82.00

-

82.00

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

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 2023 (January 1, 2023 to
December 31, 2023)(% indicates the rate of increase/decrease against the same period of the previous year)
Net salesFirst half
Full year

Operating income

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

89,000187,500

5.1
6.9

14,80031,000(0.1)
2.7

15,10031,600

(1.7)
2.0

7,900
19,400(18.8)(1.5)

196.01479.86(Note) Revisions to the most recently disclosed earnings forecasts: None
There has been no change in the earnings forecasts announced on February 13, 2023.

* 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 Quarterly Consolidated Financial
Statements (Changes in Accounting Policies)” on page 7.

(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, 2023
As of December 31, 2022

(ii)

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

Number of treasury shares at the end of the period
As of March 31, 2023
As of December 31, 2022

2,314,605 shares
2,321,258 shares(iii) Average number of shares outstanding during the period
First three months ended March 31, 2023
First three months ended March 31, 2022

40,281,307 shares
40,162,516 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 of thisreport, 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 2023··················································································································· 2(1) Explanation about Operating Results··················································································· 2(2) Explanation about Financial Position ·················································································· 2(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts ··············· 2
2. Quarterly Consolidated Financial Statements and Major Notes ······················································· 3(1) Quarterly Consolidated Balance Sheet ················································································· 3(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ···· 5
Quarterly Consolidated Statements of Income
Quarterly Consolidated Statement of Income for the First Three Months ····································· 5
Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Comprehensive Income for the First Three Months ················· 6(3) Notes to the Quarterly Consolidated Financial Statements ························································· 7(Notes Concerning Going Concern Assumption) ···································································· 7(Significant Changes in Shareholders’ Equity) ······································································ 7(Changes in Accounting Policies) ······················································································· 7(Additional Information) ································································································· 7(Revenue Recognition) ··································································································· 8(Segment Information) ······································································································ 8-2-1. Qualitative Information on Consolidated Financial Results for the First Three Months of the Fiscal
Year Ending December 2023
(1) Explanation about Operating Results
During the three months ended March 31, 2023, the global economy continued to be on a gradual recovery trend
overall, despite factors such as prolonged U.S.-China trade friction, COVID-19, the situation in Russia and Ukraine.
Under these circumstances, the Group has made an all-out effort to promote the company-wide strategies set out
in the “tok Medium-Term Plan 2024,” a three-year medium-term plan ending in FY2024.
In the Group’s business, net sales decreased year on year due to a decrease in demand for PCs and smartphones
as well as slowdown in growth of the data server market, resulting in a decline in sales of electronic functional
materials and high-purity chemicals.
As a result, for the three months ended March 31, 2023, the Group recorded net sales of ¥38,463 million (down
2.9% year-on-year), operating income of ¥5,392 million (down 22.3% year-on-year), ordinary income of ¥5,762
million (down 20.3% year-on-year), and profit attributable to owners of parent of ¥2,157 million (down 56.6% yearon-year).
Following the transfer of the Equipment Business (excluding certain parts) to AIMECHATEC, Ltd., we operate
the Material Business as a single business segment from the three months ended March 31, 2023. Accordingly,
operating results by business segment is not disclosed, but net sales by division are as follows.
Net sales in the Electronic Functional Materials Division amounted to ¥20,437 million (down 4.1% year-on-year),in the High-Purity Chemicals Division amounted to ¥17,454 million (down 2.5% year-on-year) and in other divisions
amounted to ¥570 million (up 53.6% year-on-year).

(2) Explanation about Financial Position(Assets)
Total assets as of March 31, 2023 decreased by ¥935 million from December 31, 2022 to ¥237,140 million.
Total current assets decreased by ¥1,612 million mainly due to a decrease in notes and accounts receivable - tradeof ¥4,669 million, despite an increase of ¥2,002 million in cash and deposits.
Total non-current assets increased by ¥677 million mainly because investments and other assets increased by¥2,020 million due to fair value measurement of investment securities despite a decrease in property, plant andequipment of ¥1,317 million due to depreciation.
(Liabilities)
Total liabilities as of March 31, 2023 decreased by ¥979 million from December 31, 2022 to ¥56,135 million
mainly because notes and accounts payable - trade decreased by ¥2,134 million despite an increase in provision forbonuses of ¥1,253 million.
(Net assets)
Total net assets as of March 31, 2023 increased by ¥44 million from December 31, 2022 to ¥181,005 million
mainly because valuation difference on available-for-sale securities increased by ¥1,432 million due to fair value
measurement despite a decrease in retained earnings of ¥1,158 million due to dividend payments.
As a result, the equity ratio as of March 31, 2023 stood at 71.7%.
(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts
There has been no change in the earnings forecasts announced on February 13, 2023.
In the event that we need to revise, we will disclose promptly.

-3-

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

FY12/22(As of December 31, 2022)
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 FY12/23(As of March 31, 2023)

55,37135,812
3,999
11,0847,000
11,9205,535(89)130,636

57,37331,142
3,999
10,746
7,476
12,8965,446(57)
129,023

36,50229,50766,0101,295

36,922
27,77064,692
1,269

3,682
18,00018,457(6)
40,133
107,439
238,075

3,713
18,00020,448(8)42,153
108,116
237,140

(Millions of yen)

FY12/22(As of December 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable - trade
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 FY12/23(As of March 31, 2023)

21,617
3,308
3,090
12,76540,781

19,483
2,654
4,343
12,628
39,10910,222853
5,257
16,333
57,115

10,222874
5,928
17,02556,135

14,64015,303
137,551(11,276)
156,219

14,64015,303
136,393(11,248)
155,088

5,280

6,712

8,877
(630)

8,824
(648)

13,526

14,887174
11,039180,960
238,075

174
10,853
181,005
237,140

(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 12/22
FY 12/23(January 1, 2022 – March 31, 2022) (January 1, 2023 – March 31, 2023)

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
Gain on sale of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

Loss on sale of businesses
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-6-39,59925,212
14,387
7,442
6,944

38,463
24,403
14,059
8,667
5,392

32
52
426
83
594

63
57
261
89
472

19
242
47
309
7,230

17
59
25
102
5,762

－
－
－

217
53
271

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

28
1,716
1,745
4,287
1,083
171
1,255
3,032
875
2,157

(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 12/22
FY 12/23(January 1, 2022 – March 31, 2022) (January 1, 2023 – March 31, 2023)

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-

5,574

3,032

(283)

1,432

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

33
(17)
1,447
4,479

6,483

3,518

982

961

(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 Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Statement No.31, June 17, 2021, “Implementation Guidance on Accounting Standard for Fair Value
Measurement”), from January 1, 2023, and the new accounting policies stipulated in the Implementation Guidanceon Accounting Standard for Fair Value Measurement are applied prospectively pursuant to the transitional
treatment stipulated by Paragraph 27-2 of the “Implementation Guidance on Accounting Standard for Fair Value
Measurement.”
The application has no impact on the quarterly consolidated financial statements.
(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 from thedate 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 the outstandingbalance 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 measure to enhance our welfare programby 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 amountat the Trust (excluding ancillary expenses). The carrying amount and number of treasury shares as of December 31,
2022 and March 31, 2023 were ¥643 million and 154 thousand shares and ¥615 million and 147 thousand shares,
respectively.
(3) The carrying amount of the loans payable recorded under the gross method
FY12/22¥222 million
First three months of FY12/23¥222 million-8-

(Revenue Recognition)
Information on the breakdown of revenue arising from contracts with customers
The Group operates a single business segment, and the information on the breakdown of revenue arising fromcontracts with customers is as follows.
Previously, the information on the breakdown of revenue arising from contracts with customers was classified into
two reportable segments of “Material Business” and “Equipment Business,” but we have changed the classification as
follows from the three months ended March 31, 2023 following the transfer of “Equipment Business” (excluding
certain parts).
As a result of this change, the information on the breakdown of revenue arising from contracts with customers forthe three months ended March 31, 2022 was also shown under the new classification.
(Millions of yen)

Electronic functional materials
High-purity chemicals
Other
Revenue from contracts with customers
Other revenue
Net sales to customers

First three months of
FY 12/22(January 1, 2022 – March 31, 2022)
21,322
17,906371
39,599－39,599First three months of
FY 12/23(January 1, 2023 – March 31, 2023)
20,437
17,454570
38,463－38,463(Segment Information)
I First three months of the fiscal year ended December 2022 (January 1, 2022 – March 31, 2022)
1. Information about net sales, income/loss for each reportable segment
Please refer to “II First three months of the fiscal year ending December 2023, 2. Changes, etc. inreportable segments.”
Ⅱ

First three months of the fiscal year ending December 2023 (January 1, 2023 – March 31, 2023)
1. Information about net sales, income/loss for each reportable segment
The disclosure is omitted as the Company operates a single business segment.
2. Changes, etc. in reportable segments
Previously, the Group had two reportable segments of “Material Business” and “Equipment Business,”but it operates the Material Business as a single business segment from the three months ended March 31,
2023.
The change was made based on the review of the segmentation conducted after the Company’s
Equipment Business (excluding certain parts) was succeeded to our wholly owned subsidiary Process
Equipment Business Split Preparatory Co., Ltd. (“Split Preparatory Company”) through an absorptiontype company split and the shares of the Split Preparatory Company were transferred to AIMECHATEC,Ltd. effective March 1, 2023.
As a result of this change, the disclosure of segment information for the three months ended March
31, 2022 and 2023 is omitted.

-8-