Financial Results for

1Q(Three months) of FYE 3/2022
August 6th, 2021
STELLA CHEMIFA CORPORATION
Securities code: 4109

Index【Financial Results】【Reference Material】（Corporate Profile ・ Introduction of Our Business）

・Performance Highlights

P. 3

・Corporate Profile

P. 17

・Financial Summary

P. 4－11・Subsidiaries & Associates

P. 18

・Financial Forecast

P. 12－14

・Introduction of Our BusinessP. 19－35

・Shareholder Return

P. 15

2

Performance Highlights[1Q(Three months) of FYE 3/2022 Results]
 Both domestic and overseas sales of Semiconductors and LCDs increased year on year.
 Overseas shipments of enriched boron (10B) used by nuclear energy-related facilities

increased year on year, contributing to the profit.
 The price of anhydrous hydrofluoric acid, a key raw material, rose year on year.
 STELLA PHARMA CORPORATION: Listed on the Mothers section of the Tokyo Stock Exchange

in April 2021.

[Full-year Forecast] The business environment is solid, particularly for Semiconductors and LCDs.
 The price of anhydrous hydrofluoric acid, a key raw material, is expected to remain higher
year on year.
3

Financial Summary
Though the revenue recognition standard has been
adopted from FYE3/2022, this standard was not applied
to FYE3/2021. *The same also applies to pages 5 to 8.

(million yen)

1Q
(Three months)of FYE 3/2021

1Q(Three months)of FYE 3/2022

Increase/
Decrease

Percentage
Increase/
Decrease

Sales Revenue

8,222

8,896

674

8.2

Gross Profit

1,924

2,297

372

19.3

Operating Profit

884

1,291

407

46.1

Ordinary Profit

841

1,282

440

52.3

Quarterly Profit Attributable to
Owners of Parent

479

802

323

67.4

Earnings Per Share (yen)

37.27

62.66

Capital Expenditures

441

332

－109

－24.7

Depreciation & Amortization

900

663

－236

－26.3

Research & Development Expenses

193

170

－22

－11.8
4

Sales Revenue and Operating Profit
by Business Segment
Sales Revenue
1Q

1Q(Three months)(Three months)of FYE 3/2021

of FYE 3/2022(million yen)

Operating Profit
Increase/
Decrease

1Q(Three months)

Amount％1Q(Three months)of FYE 3/2021

of FYE 3/2022

Increase/
DecreaseAmount％High-Purity
ChemicalBusiness

7,040

7,708

668

9.5

864

1,401

537

62.2

Transportation
Business

1,023

1,141

118

11.5

130

193

62

48.2

109

7

－102

－93.0

－115

－182

－66

‐

48

38

－9

－20.2

5

2

－3

－59.0

‐

‐

‐

‐

－0

－123

－122

‐

8,222

8,896

674

8.2

884

1,291

407

46.1

MedicalBusiness

Other

Eliminations andCorporate

Total

5

Sales Revenue of High-Purity
Chemical Business (Breakdown)(million yen)

1Q
(Three months)of FYE 3/2021

1Q(Three months)of FYE 3/2022

Increase/
Decrease

Percentage
Increase/
Decrease

221

－72

－24.7

Alternatives for
CFCs

1,102

1,079

－23

－2.1

Batteries

370

468

98

26.7

Semiconductors/
LCDs

3,863

4,191

327

8.5

Semiconductor
Devices

170

187

16

9.9

207

209

1

0.8

Gypsum

49

26

－23

－47.2

General Products

731

943

211

29.0

251

381

130

51.7

Catalysts

Other

Alternatives for

Other

293

Surface Treatment

Sales Revenue Constituent Ratioof High-Purity Chemicals

GeneralProducts
12%

CFCs

13%

14%

Batteries

Sales Revenue
7.7 billion Yen（Abroad 57.4%）

6%

Semiconductors/LCDs
55%

Semiconductors/LCDs Shipping Ratio by Country
100%

Other
Singapore
TaiwanSouth Korea
Japan
1Q(Three months) 1Q(Three months)

Total

7,040

7,708

668

9.5

of FYE 3/2021

of FYE 3/2022

6

Analysis of Operating Profit（Year on year）
Including increased shipments of
Semiconductors/LCDs Business andenriched boron for nuclear use (+)

Including decrease in
Depreciation & Amortization (+)

Higher raw material prices (-)
Lower selling prices (-)(million yen)

1,291

884
High-Purity Chemical Business ＋537

7

Change of Quarterly Operating Profit(million yen)
1,400

1,116

1,200
1,000

884

847

800

653

1,179

1,291

902

757

600

400

148

200
0

FYE 3/2020

FYE 3/2021

FYE 3/2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

Sales
Revenue

9,733

7,406

7,591

8,998

8,222

8,389

8,315

7,965

8,896

Operating
Profit

847

148

653

757

884

902

1,116

1,179

1,291

Operating
Profit Margin

8.7%

2.0%

8.6%

8.4%

10.8%

10.8%

13.4%

14.8%

14.5%

2Q

3Q

4Q

8

Transitions in Trade Statistics Value ofAnhydrous Hydrofluoric Acid
( yen/kg )
300

250

200

150

100
1Q

(yen/kg)
Average
Price

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FYE 3/2018

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2018

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022
１Q

209

220

186

168

199

Source: Prepared by our company based on the Ministry of Finance’s “Trade Statistics of Japan” (http://www.customs.go.jp/toukei/info/)9

Change of Shipping Volume of High-Purity
Hydrofluoric Acid (Semiconductors and LCDs)(t)
100,000
90,000Full-year 94,100
Full-year 83,400

80,00070,00060,000

2nd Half 48,400

Full-year 69,300

Full-year 71,100

2nd Half 32,700

2nd Half 35,700

1st Half 36,600

1st Half 35,400

2nd Half 43,700

50,00040,00030,00020,000

1st Half 39,700

1st Half 45,700
1Q(Three months)

10,00018,0000

FYE 3/2018

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/202210

Balance Sheet

Jun.30,2021

Increase/
Decrease

Percentage
Increase/
Decrease

52,93356,643

3,709

7.0

15,56818,722

3,153

20.3

Operating receivables

8,483

8,725

241

2.8

Inventory assets

4,872

5,137

264

5.4

21,564

21,372

－191

－0.9

516

457

－58

－11.3

16,175

15,602－573－3.5

Operating liabilities

3,026

3,175

148

4.9

Interest-bearing liabilities

8,862

8,367

－494

－5.6

Net Assets

36,75841,040

4,282

11.7

Equity capital

36,22038,5792,358

6.5

Liabilities and Net Assets

52,93356,643

3,709

7.0

FYE 3/2021
End-of-Year

AssetsCash and deposits(million yen)

Property, plant, and equipment

Intangible assets
Liabilities

11Financial Forecast
In line with the adoption of the revenue recognition standard from FYE3/2022, actual results for FYE3/2021 were calculated based on
the assumption that the revenue recognition standard was applied to FYE3/2021. *The same also applies to pages 13 and 14.

(million yen)

FYE 3/2021
ActualFYE 3/2022
Forecast

Increase/
Decrease

Percentage
Increase/
Decrease

Sales Revenue

32,56133,000438

1.3Operating Profit

4,081

4,000

－81

－2.0

Ordinary Profit

4,020

4,000

－20

－0.5

Profit Attributable to Owners of
Parent

2,959

3,000

40

1.4

Earnings Per Share (yen)230.70233.88Dividend (yen)47

50

ROE (%)

8.4

7.9

Capital Expenditures

1,818

1,920

101

5.6

Depreciation & Amortization

3,039

2,760

－279

－9.2

793

880

86

10.9

Research & Development Expenses

12Forecast on Sales Revenue andOperating Profit by Business Segment

Sales Revenue
FYE 3/2021
ActualFYE 3/2022
Forecast

28,073Operating Profit
Increase/
Decrease

FYE 3/2021
ActualFYE 3/2022
Forecast

Amount％Amount

％28,750

676

2.4

4,201

4,450

248

5.9

4,069

3,820

－249

－6.1

593

500

－93

－15.8

MedicalBusiness

205

220

14

6.8

－644

－740

－95

-

Other

213

210

－3

－1.5

26

30

3

11.7

-

-

-

-

－95

－240

－144

-

32,56133,000

438

1.3

4,081

4,000

－81

－2.0

(million yen)
High-Purity
ChemicalBusiness
Transportation
Business

Eliminations
and Corporate

Total

Increase/
Decrease

13

Forecast on Sales Revenue of High-Purity
Chemical Business (Breakdown)
Sales Revenue Constituent Ratio(million yen)

FYE 3/2021
ActualFYE 3/2022
Forecast

Increase/
Decrease

Percentage
Increase/
Decrease

Surface
Treatment

947

Alternatives for
CFCs

4,099

4,550

450

11.0

Batteries

2,364

1,710

－654

－27.7

560

－387

－40.9

of High-Purity Chemicals
Other
General10%

Alternatives
for CFCs

Products
9%16%

Batteries
6%

Sales Revenue
28.75 billion Yen（Abroad 54.5%）

Semiconductors/LCDs

Semiconductors/
LCDs

16,283

17,030746

4.6

Semiconductor
Devices

696

630

－66

－9.5

Catalysts

852

970

117

13.8

Gypsum

175

140

－35

－20.2

General Products

2,067

2,710

642

31.1

Other

Total

587

450

－137

－23.4

28,07328,750

676

2.4

59%

Semiconductors/LCDs Shipping Ratio by Country
100%

Other
Singapore
TaiwanSouth Korea
Japan

FYE 3/2021

FYE 3/2022

ActualForecast

14

Shareholder Return
Stella Chemifa’s basic policy is to provide stable and continuous dividend payments, giving comprehensive
consideration to factors including its financial condition and profit level. Retained earnings will be allocatedto capital investment and R&D investment, and will be proactively utilized for future business development
to enhance corporate value.

 FYE 3/2021

 Annual dividend: 47 yen per share The Company repurchased 100,000 of its own shares,
worth 260 million yen.

 FYE 3/2022

 Annual dividend forecast: 50 yen per share（3 yen increase compared to FYE 3/2021）

65

60

40.8

50.0

30.2

55
50 (yen per share)
Annual dividends

20.4

24.7

21.4

30.0

45 ratio（%）
Dividend payout
40
35

41

45

45

47

40.0

50

20.0
10.0

30

0.0
FYE3/2018

FYE3/2019

FYE3/2020

FYE3/2021

FYE3/2022(Forecast)15

Reference Material（Corporate Profile ・ Introduction of Our Business）

Corporate Profile(as of June 30, 2021)
Corporate NameSTELLA CHEMIFA CORPORATIONHead Of f ice

Meiji Yasuda Seimei Osaka Midosuji Bldg. 10F,
4-1-1 Fushimi-machi, Chuo-ku, Osaka City, Osaka

Founded/EstablishedFebruary 1916 / February 1944

Capital Fund

4,829,782,512 yen

Representatives

Representative Director, President and Chief Executive Officer: Aki Hashimoto
Representative Director, Senior Managing Director(Products Management Group): Kiyonori Saka

U

R

L

https://www.stella-chemifa.co.jp/english/

Number of Employees

301

Sales Department

Osaka Sales Department (Chuo-ku, Osaka city, Osaka)
Tokyo Sales Department (Chiyoda-ku, Tokyo)

F a c t o r y

Sanpo Factory(Sakai-ku, Sakai City, Osaka)
Izumi Factory (Izumiotsu City, Osaka)
Kitakyushu Factory (Yahatanishi-ku, Kitakyushu City, Fukuoka)
17

Subsidiaries & Associates

At home (3 companies)
Transportation BusinessBLUE EXPRESS, Inc.

Sakai-ku, Sakai City, OsakaO t h e r

B u s i n e s sBLUE AUTO TRUST Co., Ltd.

Sakai-ku, Sakai City, Osaka

MedicalBusiness

STELLA PHARMA CORPORATION

Chuo-ku, Osaka city, Osaka

Abroad (7 companies)
High-Purity Chemical Business

STELLA CHEMIFA SINGAPORE PTE LTD

Singapore

Transportation Business

STELLA EXPRESS (Singapore) PTE LTD

Singapore

High-Purity Chemical BusinessBlue Express (Shanghai) International Trade Inc.

China

Transportation BusinessBlue Express (Shanghai) International Freight Forwarding Co., Ltd.

China

High-Purity Chemical Business

Zhejiang Blue Star Chemical Co., Ltd.

China

High-Purity Chemical Business

FECT CO.,LTD

South Korea

High-Purity Chemical Business

Quzhou BDX New Chemical Materials Co., Ltd.

China

18

Introduction of Our Business
Manufacture and applications of hydrogen fluoride

CaF2+ H2SO4 =2HF

Calcium fluoride(Fluorite)

Concentrated
sulfuric acid

Hydrogenfluoride* There are five main grades of fluorite purity,and for semiconductor applications, highquality fluorite with a purity of 97% or higher
is required.

+ CaSO4
Calcium
sulfateConcretematerials, etc.

Reaction and refinement using our proprietary technology

Treatment of
surface such as
stainless steel

Raw materials
such asalternatives for
CFCs

Etching agent for
semiconductor
liquid crystals

Materials forlithium-ion
secondarybatteries

Camera lens materials
for semiconductor
manufacturing
equipment

Reaction catalyst
Other products

19Introduction of Our Business
High-Purity Chemical Business
Surface Treatment

Manufacture and sale of chemicals used for acid cleaning of stainless steel andslimming of LCD panels

Alternatives for CFCs

Manufacture and sale of hydrofluoric anhydride, raw materials for CFCs andfluoropolymers

B a t t e r i e s

Manufacture and sale of additives to improve the performance of lithium-ion
secondary batteries

Semiconductors/LCDs

Manufacture and sale of chemicals for etching and cleaning in the semiconductorand LCD panel manufacturing processes

Semiconductor Devices

Manufacture and sale of raw materials for camera and stepper lenses, tantalum
production aids for tantalum capacitors, etc.

C a t a l y s t sManufacture and sale of a range of chemicals and catalysts for the manufacture ofpharmaceutical intermediates, etc.

G

Sale as raw material for concrete, etc. (Byproduct of hydrofluoric acid production)

y

p

s

u

m

General Products

Manufacture and sale of fluorine compounds for toothpaste, concentrated boron
compounds, etc.

O

Sales of purchased goods, etc.

t

h

e

r

20

Introduction of Our Business- Semiconductors/LCDs -Ultra-High Purification Technology••

Impurity levels of less than 1 ppt (1×10-12) are controlled by ultra-purification and ultra-cleaning
technologies
Mass production of ultra-pure chemicals for ultra-high integrated circuit

Ultra High Purity•

Hydrofluoric acid (HF) is the only chemical capable of etching out silicon oxide film•

Chemical solutions are indispensable to the semiconductor manufacturing process andrequire ultra-high purity

Hydrofluoric Acid

Ultra High Purity Buffered
Hydrofluoric Acid•

In particular, dilute hydrofluoric acid is used in a number of semiconductor processes•

Mixed aqueous solution of hydrofluoric acid (HF) and ammonium fluoride (NH4F)•

Mainly used in processes such as etching and cleaning of insulation films•

Chemicals with etch rates ranging from tens of Å/min to thousands of Å/min can be produced

Example of Application (Photolithography Process)(1) Photoresist coating
on silicon wafer(heat drying)(2) ExposureLight(3) Development(4) Etching(Dissolve silicon oxide filmwith hydrofluoric acidchemicals)(5) Photoresist
stripping

Photoresist
Silicon oxide film

Silicon substrate21

Introduction of Our Business- Semiconductors/LCDs -Production capacity of High Purity Hydrofluoric Acid for Semiconductors
Kitakyushu Factory

Kitakyushu City, Fukuoka

30,000 t /year

Sanpo Factory

Sakai City, Osaka

65,000 t /year

STELLA CHEMIFASINGAPORE

Singapore

10,000 t /year

105,000 t /year* As a comprehensive manufacturer of fluorine compounds, we use our own
technology to do everything from manufacturing to filling.
22

Introduction of Our Business- Batteries -Additives Additive for electrolytic solution to improve the performance oflithium-ion secondary batteries
 High-temperature endurance・High conductivity・
Increased capacity・Low resistance・Flame retardance

Lithium Hexafluorophosphate High-purity electrolytes for lithium-ion secondary batteries

Izumi Factory's manufacturingbuilding (Izumiotsu City, Osaka)* Manufacturing at our affiliate company in China (Maximum production capacity: 1,300 t/year)

Example of materials used in lithium-ion secondary batteries
Additives

Positive andnegative electrodeSeparator

Current
collector

Electrolyte

BinderProtective IC

PTC element

Action on the Development of Materials for
the Next-Generation Battery

Quzhou BDX New Chemical
Materials Co., Ltd. (China)[Metal-ion secondary batteries]

High-purity electrolytes for sodium-ion secondary batteries(sodium hexafluorophosphate)[All-solid secondary batteries]

Fluoride materials for all solid-state batteries[Fluoride-ion secondary batteries]

Fluoride-ion conductor material

23

Introduction of Our Business- Enriched Boron -Enriched Boron (Boron-10) and its features
 Natural boron is made up of two isotopes, boron-10(20%) and boron11(80%)
 Developed technology to enrich boron-10 to over 99%
 Established mass production technology of enriched boron for the first timein Japan(2000)
 Boron-10 has an extremely high capacity to absorb neutrons, and further
enriching it can increase its ability to absorb neutrons.

Production capacity
Enrichment plant(Izumiotsu City, Osaka)

Production Capacity

Products

6,000kg

Enriched Boron

10B

Enriched Boric Acid

H310BO3

36,000kg

K10BF475,000kg

Enriched Potassium
tetrafluoroborate

24

Introduction of Our Business- Enriched Boric Acid -Applications of Enriched Boron Compounds
 Neutron-absorbing material of spent nuclear fuel transportation and storage containers Material of control rods of nuclear reactors and rack material of spent nuclear fuel pools Excess reaction control of pressurized-water reactors by dissolving into primary coolingwater
 Water source for facilities responding to specific major accidents, etc.
 Raw material for cancer treatment drugs (BNCT: Boron Neutron Capture Therapy)

Advantages of Using Enriched Boric Acid
(1) Improvement of corrosive environment in nuclear reactors
Required 10B concentration can be secured at 1/5 of natural products.
Operation at low concentration is possible, and corrosion in facilities can be reduced.
(2) Reduction of storage costs
Heat retention are required to maintain the dissolution of boric acid water.
Enriched boric acid realizes the reduction in concentration, and reduces the problem of heatretention.
In addition, the storage tank can be made smaller.

(3) More reliable control
In the event of an emergency stop, more reliable control is possible, and since boric acid isharmful to the human body and the environment, the reduction of overall amount of boric
acid is an advantage.
25

Introduction of Our Business- GMP-related -Tin Fluoride 2017
The GMP inspection by USFDA for tin fluoride, an active ingredient of OTC anticaries drugs, wascompleted, and obtained official approval.
 2018Started marketing of “tin fluoride” as a GMP-compliant product.

<Actions of fluorine on teeth>■ To suppress Streptococcus mutans from producingacid (Cavity prevention)■ To promote tooth remineralization■ To form acid-resistant teeth (to form fluorapatite)* We expect to see big demand mainly inEurope and the US, where there is strong
Izumi Factory's manufacturing building
interest in dental health and beauty.
(Izumiotsu City, Osaka)*

What is FDA?

FDA stands for Food and Drug Administration in the U.S.
(A public agency, similar in function to the Ministry of Health, Labour and Welfare in Japan)*

What is GMP?

It stands for “Good Manufacturing Practice”, which refers to a common standard for manufacturing and quality control of drugs and quasi-drugs.

26

Introduction of Our Business- New Initiatives -Phosphor-related Materials
 Development of highly efficient and long-life fluoride phosphor materials using our core technologies
 Use of the materials is expected to increase in display applications such as mini-LED
Global Forecast on Mini-LED Displays[1,000 units]

Our phosphor-related materials
Red phosphor
materials
Phosphormaterials
Filler for LED
sealant

MgF2 nanoparticles
CaF2 nanoparticles

Screen

DisplayColorfilter
LCD

Digital signage

Mini-LED
backlight<Local Dimming>

Partially

Source: Yano Research Institute2019 LED Display Market and Future Prospects - Focusing on Micro LED and Mini-LED -Appearance of LSA-61A

Mini-LED is expected to be adopted for in-vehicle displays and meter panels, driving the number ofmini-LED displays installed27

Introduction of Our Business- New Initiatives -PCB Materials (Low Dielectric Constant Materials)

Forecast on Radio Frequency
Market
高周波（RF）回路、基板等(RF) Circuits, Substrates, etc.
[100 million yen][億円]
市場規模予測 As materials for high-frequency communication devices, used as additives (fillers) to resin and other materials for
substrates.
 Contribute to suppression of signal transmission loss, miniaturization of devices, and suppression of power
consumption.

200,000
180,000
160,000
140,000
120,000
100,000
80,00060,00040,00020,0000Filler powderHigh frequency signaltransmission(copper wiring)

Substratesurface

Filler for suppression of dielectric loss
(transmission loss inside the substrate)

2020
2020年

2024
2024年

2028
2028年

Electronic substrate built in highspeed communication devices

Low dielectric
constant
Low dielectric
tangent

2030
2030年

Source: Yano Research InstituteMarket Forecast on 5G High-frequency Circuits, Substrates, etc.

Appearance of developed filler

28Introduction of Our Business- Other product examples Optical Material-Related(Product information)◆Calcium Fluoride◆Aluminum Fluoride◆Magnesium Fluoride ◆Lead Fluoride◆Lithium Fluoride◆Strontium Fluoride◆Barium Fluoride

Reactive Catalyst-Related◆High Purity Boron Trifluoride◆Boron Trifluoride Diethyl Ether◆Boron Trifluoride n-Butyl Ether◆Boron Trifluoride Tetrahydrofuran◆Boron Trifluoride Monoethyl Amine ◆Boron Trifluoride Piperidine◆Boron Trifluoride Dimethyl Ether◆Boron Trifluoride Phenol◆Triethylamine 3HF

Surface Treatment, Alternatives for CFCs-Related

Nuclear Energy-Related◆Anhydrous Hydrofluoric Acid

◆10B Enriched Potassium Fluoroborate◆ 10B Enriched Boric Acid

◆55% Hydrofluoric Acid

Other Products◆Fluorosilicic Acid
◆Potassium Fluorosilicate◆Fluoroboric Acid
◆Tin Fluoroborate◆Copper Fluoroborate◆Lead Fluoroborate◆Zinc Fluoroborate◆Sodium Fluoroborate◆Potassium Fluoroborate◆Ammonium Hydrogenfluoride◆Sodium Fluoride◆Potassium Fluoride◆Ammonium Fluoride◆Potassium Hexafluorozirconate◆Potassium Hexafluorotitanate ◆Refined Calcium Fluoride ◆Potassium Hexafluorophosphate

Newly-Developed Products◆Detergents Contributing to Increase in Chemical Lifetime ◆Detergents Suppressing Etching of Silicon Nitride Film
◆Detergents Inhibiting Silicon and Polysilicon Damage◆Battery-Related（Ionic Liquids, Additives for Lithium-Ion Batteries,…etc）◆Various Fluoride Nanoparticles Dispersant (Magnesium, Lithium, Ytterbium, Calcium, CNP-P)◆Phosphor materials◆Nuclear Energy Industry◆5G/6G (Information Communication Systems), Printed Circuit Board◆Special-Purpose Inorganic Fluorine Compounds◆Fluorinated Carbon Nano-Tubes

29

Introduction of Our Business* For details, please visit the website.

30

Introduction of Our Business- Transportation Business (HP URL)

Transportation BusinessBLUE EXPRESS, Inc.

T r a n s p o r t

Land transport ・Marine transport・Rail transport

Customs Clearance

Customs clearance ・Loading and Unloading

Warehousing

Providing multi-functional warehouses fully equipped with the latest systems

Supplying large and pressurized containers that meet ISO specifications,
medium-size IBC pressurized containers, as well as IBC containers with UN
Container services
specifications,and also offering services for cleaning, repairing and leasing thecontainers
Customs
clearance sites

Shipping terminals

Overseas Bases

Ohama OfficeSendai Office

Singapore

Osaka Office

Kanto Office

China(Shanghai)

Yokohama Office

Yokohama OfficeShimizu Office
Nagoya Office
Ohama Office
Kobe Office
Kitakyushu Office31

Introduction of Our Business- Medical Business (HP URL)

STELLA PHARMA CORPORATION

Principle of Boron Neutron Capture Therapy(BNCT)
Boron Neutron Capture Therapy(Boron Neutron Capture Therapy : BNCT)

Mechanism of BNCTA particle beam treatment that selectively destroys cancer cells by using the nuclear fission reaction
between boron (Boron-10) and thermal neutrons produced by injecting a boron agent into cancer
cells and irradiating the affected area with neutrons from outside the body.

Administration of boron-10
compound (BPA)

Boron-10 compound (BPA) is selectively
brought into cancer cells.
4He nucleus (α particle)

Prompt gamma ray
478 keV

1.47 MeV

9 μm

Thermalneutron10B

4 μm
Irradiating with thermal neutron ray
causes Boron-10 to fission.

7Li recoil nucleus

0.84 MeV

Cancer cells with boron-10 compound(BPA) are selectively destroyed.

* This image was prepared to illustrate the mechanism of BNCT. In the actual therapy, the details differ.

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Introduction of Our Business- Medical Business -Features of Boron Neutron Capture Therapy (BNCT)• Achieves a high response rate in the area of head and neck cancer (71.4%)
Effectiveness• Selectively destroys cancer cells• Expected to be effective against highly infiltrating cancer

Safety• Less damage to adjacent normal tissue• Short treatment period

Benefits forpatients• Low invasiveness• Can be used for recurrent cancer after X-ray treatment

Item

X-ray *3

Proton *4

Heavy-particle *5

BNCT

Medicaltreatment(Head and neckcancer *1)

Number ofradiation sessions

35 sessions

32 sessions

16 sessions

1 session

Treatment period

7 weeks

7 weeks

4 weeks

1 day

Therapeutic
effectCancer cell killing
power *2

1

1.1

3

3 or more*1: For X-ray, proton and heavy-iron, the data indicates the typical number of radiation sessions and treatment period required.
*2: The data indicates RBE (Relative Biological Effectiveness) for X-ray, proton and heavy particle and CBE (compound Biological Effectiveness) for BNCT.
*3: Japan Society for Head and Neck Cancer Website: http://www.jshnc.umin.ne.jp/general/section_05.html*4: Kobe Proton Center website: https://www.kobe-pc.jp/disease_1.html*5: QST Hospital website: https://www.nirs.qst.go.jp/hospital/radiotherapy/explanation/doctor06.php

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Introduction of Our Business- Medical Business -Boron drug for BNCT “Steboronine”
Antineoplastic drug Steboronine Intravenous Drip Bag 9000 mg/300 mL(Approval No.：30200AMX00438000)

May, 2020 Launch[Regulatory category] Prescription drug *Use by prescription from a physician, etc.
[Indications]
Unresectable, locally advanced or locally recurrent Head and Neck cancer
Feature 1

Feature 2

Highenrichment
10B

99%

＞

※

*in-house standard

Feature 3

Prepreparation

Feature 4

Shelf
life

Not
required

36 months

GMP
grade

Storage: to be be stored at 2-8 degrees Celsius

Efforts to Expand the Indications
Brain tumor

A phase II study is underway.

(recurrent malignant glioma)(Under the consultation of the Prioritized Review System for innovative medicines[SAKIGAKE Designation System])

Melanoma/angiosarcoma

A phase I clinical study is underway.

Recurrent high-grade
meningioma

A physician-led phase II study is underway.
(Provision of an investigational drug)

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Introduction of Our Business- Medical Business -Upcoming Efforts to Increase Use of BNCT

Increasing
number of
BNCT facilities

Increasing
number ofindications

Enhance the recognition of BNCT as a
new treatment modality with higher
Strategy 1
response rates to ensure quality of life
(QOL) of patients

Focus on diseases for which Stella Pharma
has a proven experience in reactor
Strategy 1
research to increase the certainty ofdevelopment success

Partner with various accelerator
manufacturers

Take advantage of Stella Pharma’s
Strategy 2 expertise of cell-selective radiotherapy
to focus on Unmet Medical Needs

Effectively use the existing approvals
given to drugs for head and neck cancer
Strategy 3
in Japan for the acquisition of drug
application approvals overseas

Simultaneously develop PET drugs toaccelerate the expansion ofindications

Strategy 2Strategy 335