Business Results for FYE 3/2024

May 10th, 2024
STELLA CHEMIFA CORPORATION
Securities code: 4109

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

・Performance Highlights

P. 3

・Corporate Profile

P. 22

・Financial Summary

P. 4－13・Subsidiaries & Associates

P. 23

・Financial Forecast

P. 14－16

・Introduction of Our BusinessP. 24－44

・Shareholder ReturnP. 17－18

・About PFAS

P. 46

・About the Action to Implement
Management that is Conscious of
Cost of Capital and Stock Price

P. 19－202

Performance Highlights[FYE 3/2024 Results]
 Shipment volume of Semiconductors declined year on year as a result of the impact of the deterioration ofmarket conditions although selling price rose.
 Sales of Energy increased year on year due to overseas shipments of Enriched Boron (Boron-10).
 Domestic purchase price of anhydrous hydrofluoric acid (AHF) is about the same level as the same period lastyear. (Price decreased in the overseas subsidiary.)
We will continue initiatives for procurement from outside China.

[FYE 3/2025 Forecast] Semiconductor market conditions are recovering, and Semiconductor shipment volumes are expected toincrease in stages.
 Energy expects further increases in shipment volumes of Enriched Boron due to demand for new nuclear

facilities overseas.
 Price of anhydrous hydrofluoric acid (AHF) is assumed to rise due to supply and demand trends and theimpact of foreign exchange rates.
3

Financial Summary
Percentage
Increase/
Decrease

FYE 3/2023

FYE 3/2024

Increase/
Decrease

Sales Revenue

35,38230,446－4,936－14.0

Gross Profit

7,410

6,446

－964

－13.0

Operating Profit

3,514

2,722

－792

－22.5

Ordinary Profit

4,347

3,064

－1,283－29.5

Profit Attributable to Owners of
Parent

2,280

1,845

－435

－19.1

Earnings Per Share (yen)186.03

153.48－32.55

Dividend (yen)

60

154

94

ROE (%)

5.4

4.2

－1.2

(million yen)4

Sales Revenue and Operating Profit
by Business Segment
Sales Revenue
FYE 3/2023

FYE 3/2024(million yen)
High-Purity
ChemicalBusiness
Transportation
Business

Other

Eliminations
and Corporate

Total

Operating Profit
Increase/
Decrease

FYE 3/2023

Amount％FYE 3/2024

Increase/
DecreaseAmount％30,70726,019－4,687

－15.3

2,961

2,167

－793

－26.8

4,504

4,252

－252

－5.6

533

548

15

2.9

170

174

3

2.1

30

18

－12

－39.3

-

-

-

-

－11

－13

－2

-

35,38230,446－4,936

－14.0

3,514

2,722

－792

－22.5

5

Sales Revenue of High-Purity
Chemical Business (Breakdown)
FYE 3/2023

Increase/
Decrease

FYE 3/2024(million yen)

Semiconductors

19,04918,341－708

Percentage
Increase/
Decrease－3.7

Sales Revenue Constituent Ratioof High-Purity Chemicals
Industrial
Hydrofluoric Acid

Purchased Goods

3%

12%

General Products

8%

996

Energy

1,152

155

15.6

Sales Revenue
26.0billion Yen（Abroad 54.9%）

Electronic
Materials
2%Electronic Materials

General Products

1,032

592

－439

－42.5

2,514

2,060

－454

－18.1

Energy4%

Semiconductors
71%

Semiconductors Shipping Ratio by Country
100%

Industrial
Hydrofluoric Acid

1,739

696

－1,043

－60.0

Other
Singapore

Purchased Goods

5,375

3,177

－2,198

Taiwan－40.9

South Korea

Total

30,70726,019－4,687

Japan

－15.3
FYE 3/2023

6

FYE 3/2024

Analysis of Operating Profit（Year on year）
Including decreased shipments of
Semiconductors/General Products (－)(million yen)

Higher selling prices (+)

Transportation Business (+)

3,514

2,722

High-Purity Chemical Business －793

7

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

1,291

1,200

1,156

1,291

1,162

1,072 1,062
953

1,000

823

800

582

600

445

539

437

400
200
0

FYE 3/2022

FYE 3/2023

FYE 3/2024

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Sales
Revenue

8,896

9,212

9,015

10,171

9,764

9,854

8,651

7,112

7,298

7,199

8,813

7134

Operating
Profit

1,291

1,156

1,072

1,062

1,291

953

823

445

582

539

1,162

437

Operating
Profit Margin

14.5%

12.5%

11.9%

10.4%

13.2%

9.7%

9.5%

6.3%

8.0%

7.5%

13.2%

6.1%

8

Transitions in Import Trade Statistics (China)
Value of Hydrofluoric Acid(HF)( yen/kg )(Note) Different from our purchase prices. Only for reference regarding price fluctuations.

300

250

200

150

100
1Q

2Q

3Q

4Q

FYE 3/2020(yen/kg)
AveragePrice

FYE 3/2020
186

1Q

2Q

3Q

4Q

1Q

FYE 3/2021

2Q

3Q

4Q

FYE 3/2022

FYE 3/2021

FYE 3/2022

168

225

1Q

2Q

3Q

4Q

FYE 3/2023

FYE 3/2023
274

1Q

2Q

3Q

4Q

FYE 3/2024

FYE 3/2024
266

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)(t)
100,000
90,00080,000Full-year 69,300

Full-year 71,100

Full-year 75,100

Full-year 72,400

70,000Full-year 65,100

60,00050,000

2nd Half 32,700

2nd Half 35,700

2nd Half 38,400

2nd Half 35,200
2nd Half 33,600

40,00030,00020,000

1st Half 36,600

1st Half 35,400

1st Half 36,700

1st Half 37,200

1st Half 31,500

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

10,000010Balance SheetFYE 3/2023
End-of-YearFYE 3/2024
End-of-Year

Increase/
Decrease

Percentage
Increase/
Decrease

Assets55,471

58,6183,146

5.7

Cash and deposits

15,097

16,225

1,127

7.5

Operating receivables

7,110

6,801

－309

－4.4

Inventory assets

5,496

5,476

－20

－0.4

22,62525,426

2,801

12.4

261

149

－111

－42.6

12,30914,116

1,807

14.7

Operating liabilities

3,590

3,093

－497

－13.9

Interest-bearing liabilities

4,138

5,119

980

23.7

Net Assets

43,16244,5011,339

3.1

Equity capital

42,87544,261

1,386

3.2

Liabilities and Net Assets

55,471

58,6183,146

5.7(million yen)

Property, plant, and equipment

Intangible assets

Liabilities

11Interest-Bearing Liabilities and D/E Ratio( million yen )(-fold )20,0000.40
Balance of interest-bearing liabilities

D/E ratio (-fold)

0.33
15,0000.30

0.24

10,00011,184

0.20

8,862

0.13

0.12
0.10

5,000

5,594

5,119

0.10

4,138

0

0.00

FYE 3/2020

FYE 3/2021

FYE 3/2022
12

FYE 3/2023

FYE 3/2024

Statement of Cash Flows
Capital Expenditures, Depreciation & Amortization,
Research & Development Expenses(million yen)

FYE 3/2023

FYE 3/2024

Cash Flows from Operating Activities

5,634

6,542

Cash Flows from Investing Activities－3,281－5,831

2,353

710－3,717－141

Net Increase (Decrease) in Cash and Cash Equivalents

－810

1,118

Cash and Cash Equivalents, Beginning of Period

15,53814,728Cash and Cash Equivalents, End of Period

14,72815,846(2) Capital Expenditures, Depreciation & Amortization,
Research & Development Expenses

FYE 3/2023

FYE 3/2024

Capital Expenditures

5,408

5,708

Depreciation & Amortization

2,593

2,768

660

698

(1) Consolidated Statement of Cash Flows

Free Cash Flows (Operating CF + Investment CF)
Cash Flows from Financing Activities

Research & Development Expenses
13

Financial Forecast
FYE 3/2024
ActualFYE 3/2025
Forecast

Increase/
Decrease

Percentage
Increase/
Decrease

Sales Revenue

30,44634,500

4,053

13.3

Operating Profit

2,722

3,650

927

34.1

Ordinary Profit

3,064

3,550

485

15.8

Profit Attributable to Owners of
Parent

1,845

2,600

754

40.9

Earnings Per Share (yen)153.48216.16

62.68

Dividend (yen)

154

170

16

ROE (%)

4.2

5.8

1.6

Capital Expenditures

5,708

6,900

1,191

20.9

Depreciation & Amortization

2,768

3,050

281

10.2

698

750

51

7.4

(million yen)

Research & Development Expenses

14Forecast on Sales Revenue andOperating Profit by Business Segment
Sales Revenue
FYE 3/2024
ActualFYE 3/2025
Forecast

26,019Transportation
Business

Other

Eliminations
and Corporate

Total

Increase/
Decrease

FYE 3/2024
ActualFYE 3/2025
Forecast

Amount％30,300

4,280

16.5

2,167

4,252

4,080

－172

－4.0

174

120

－54

-

-

30,44634,500(million yen)

High-Purity
ChemicalBusiness

Operating Profit
Increase/
DecreaseAmount

％

3,220

1,052

48.5

548

420

－128

－23.5

－31.1

18

20

1

7.1

-

-

－13

－10

3

-

4,053

13.3

2,722

3,650

927

34.1

15

Forecast on Sales Revenue of High-Purity
Chemical Business（Breakdown）

Sales Revenue Constituent Ratio

Industrial

Hydrofluoric of High-Purity Chemicals(million yen)

FYE
3/2023
ActualFYE
3/2024
ActualFYE
3/2025
Forecast

Increase/
Decrease(25/3 Forecast-24/3 Actual)

Acid

Percentage
Increase/
Decrease

3%
GeneralProducts

Purchased
Goods
10%

10%

Semiconductors

19,04918,341

20,360

2,018

11.0

Electronic
Materials

Sales Revenue
30.3 billion Yen（Abroad 58.8%）

2%

Energy

996

1,152

2,510

1,357

117.9

Semiconductors
Energy67%8%Electronic
Materials

1,032

592

690

97

16.4
Semiconductors Shipping Ratio by Country

GeneralProducts

2,514

2,060

3,050

989

48.0

Industrial
Hydrofluoric
Acid

1,739

696

700

3

0.6

Purchased
Goods

5,375

3,177

2,990

－187

－5.9

Total

30,70726,01930,300

4,280

16.5

16

Japan

South Korea

Singapore

Other

Taiwan100%

FYE 3/2023

FYE 3/2024

FYE 3/2025

ActualActualForecast

Shareholder Return【New Shareholder Return Policy (Released on May 9 th ,2023)】
The company recognizes that providing stable and continuous dividend payments, giving

comprehensive consideration to factors including its financial condition and profit level is an
important issue for management.
Further, in addition to balancing growth investments and shareholder returns, in order to improve
capital efficiency, the company will aim for a total return ratio of 100% with an applicable period(FYE 3/2024 and FYE 3/2025).
Retained earnings will be allocated to capital investment and R&D investment, and will be
proactively utilized for future business development to enhance corporate value.

17

Shareholder Return【Dividend paid and dividend forecast】
 FYE3/2024

 Annual dividend: 154 yen per share FYE3/2025●Annual dividend forecast : 170 yen per share (Released on May.10th, 2024)※The Company aims to achieve a total return ratio of 100% through dividends and share repurchases,
but the specific amounts and allocations will be determined based on future business forecasts, stock
price trends, and other factors.
Special dividend

91.4%

Year-end dividend (yen per share)

Interim dividend (yen per share)

Total return ratio

101.5%

30.1%

85
94

29.6%

（%）

25

10
26

30

22

24

30

FYE3/2021

FYE3/2022

FYE3/2023

18

60

FYE3/2024

85

FYE3/2025(Forecast)About the Action to Implement Management that is Conscious of
Cost of Capital and Stock Price【Profitability ・ Capital structure】
 Despite efforts to curb the increase in equity capital in line with the 100% total return policy,
profit margins declined mainly due to the sluggish semiconductor market.
 D/E ratio reversed and increased as a result of curbing the increase in equity capital andincreasing interest-bearing debt.

19

About the Action to Implement Management that is Conscious of
Cost of Capital and Stock Price【Stock Price・PBR・PER】
 Stock price rose on the back of the new shareholder return policy and the increase in TOPIX, and PBR
recovered to 1.0.
 As stock price rose, PER increased to 24.0.

20

Reference Material（Corporate Profile ・ Introduction of Our Business）

Corporate Profile(as of March 31, 2024)

Corporate NameSTELLA CHEMIFA CORPORATIONHead Office

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

Founded/EstablishedFebruary 1916 / February 1944

C a pi ta l F und

4,829,782,512 yen
Representative Director, President and Chief Executive Officer: Aki Hashimoto
Representative Director, Senior Managing Director(Products Management Group): Kiyonori Saka

Representatives

U

R

L

Number of Employees

Sales Department

Production bases

R & D

b a s ehttps://www.stella-chemifa.co.jp/english/

293
Osaka Sales Department (Chuo-ku, Osaka city, Osaka)
Tokyo Sales Department (Chiyoda-ku, Tokyo)
Sanpo Factory(Sakai-ku, Sakai City, Osaka)
Izumi Factory (Izumiotsu City, Osaka)
Kitakyushu Factory (Yahatanishi-ku, Kitakyushu City, Fukuoka)
Next Generation Materials Research Lab(Sakai-ku, Sakai City, Osaka：Located within Sanpo factory premises)
22Subsidiaries & Associates
At home (3 companies)
Tra n s p o r t a t i o n B u s i n e s sBLUE 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

Me dic al

B usine ss

STELLA PHARMA CORPORATION

Chuo-ku, Osaka city, Osaka

Abroad (６ 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

Quzhou BDX New Chemical Materials Co., Ltd.

China

23

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 forsemiconductor applications, high quality fluorite witha purity of 97% or higher is required.

+ CaSO4
Calcium sulfate(Gypsum)

Concretematerials, etc.

Reaction and refinement using our proprietary technology

Treatment of
surface such as
stainless steel

Raw materials
such asalternatives for
CFCs

Chemicals for
etching andcleaning forsemiconductors

24

Materials forsecondarybatteries

Enriched Boron

Reaction catalyst
Other products

Introduction of Our Business
High-Purity Chemical Business
Semiconductors

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

・Manufacture and sale of enriched boron (boron 10) used for energy related facilities and cancer therapy (BNCT)
E

n

e

r

g

y
・Development of materials to improve the performance of lithium-ion secondary batteries
・Manufacture and sale of tantalum production aids for tantalum capacitors

E l e c t r o n i c

・Manufacture and sale of raw materials for camera and stepper lenses

M a t e r i a l s・Manufacture and sale of R&D products in the small-quantity production stage・Manufacture and sale of raw materials for production of phosphors and phosphors used for LEDs

・Manufacture and sale of a range of chemicals and catalysts for the manufacture of pharmaceutical intermediates, etc.
General Products

・Manufacture and sale of toothpaste additives to prevent tooth decay and gingivitis
・Manufacture and sale of other fluorine compounds

I n d u s t r i a l

・Manufacture and sale of hydrofluoric anhydride, raw materials for CFCs and fluoropolymers

Hydrofluoric Acid・Manufacture and sale of chemicals used for acid cleaning of stainless steel and slimming of LCD panels

Purchased Goods

・Sales of purchased goods

25Introduction of Our Business- Semiconductors -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 andHydrofluoric Acid

Ultra High Purity Buffered
Hydrofluoric Acid

require ultra-high purity•

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) Exposure(3) Development

Light

Photoresist
Silicon oxide film
Silicon substrate

26(4) Etching(Dissolve silicon oxide filmwith hydrofluoric acidchemicals)(5) Photoresist
strippingIntroduction of Our Business- Semiconductors -Examples of the company’s products
Product name(Semiconductors)

Description

Ultra-high-purity hydrofluoricacid

Chemical solutions used in the wet etching and wet cleaning of silicon wafers in the
manufacture of semiconductors, FPDs, solar cells and MEMS

Ultra-high-purity bufferedhydrofluoric acid

Mixed aqueous solution of ultra-high purity hydrofluoric acid and ammonium fluoride
solution

BHF

A chemical mixed with 50% hydrofluoric acid and 40% ammonium fluoride solutions

LL BHFBHF with various functionalities made possible by adding a surfactant

LAL BHF

BHF that contains a surfactant has enabled it to achieve extended service life and given otheradvantages by optimizing the concentration of ammonium fluoride at 17% to 20%, about half
the concentration of ammonium fluoride contained in conventional BHF.

Ex-LAL BHF

Surfactant-containing BHF (buffered hydrofluoric acid) with ammonium fluoride
concentration reduced to 5% or less and crystal precipitation in equipment suppressed※New products

HSN BHF※New products

Similar to LAL BHF, a chemical solution that allows silicon oxide film etching with highselectivity with respect to a silicon nitride film while having merits such as longer life27

Introduction of Our Business- Semiconductors -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.
28

Introduction of Our Business- Energy -Enriched Boron (Boron-10) and its features
 Natural boron is made up of two isotopes, boron-10(20%) andboron-11(80%)
 Developed technology to enrich boron-10 to over 99%
 Established mass production technology of enriched boron for the
first time in Japan(2000)
 Boron-10 has an extremely high capacity to absorb neutrons, andfurther enriching it can increase its ability to absorb neutrons.

Production capacity
Enrichment plant(Izumiotsu City, Osaka)

Production Capacity

Products
Enriched Boron

10B

6t / year(* When converted to the following items)
Enriched Boric Acid
Enriched Potassium
tetrafluoroborate
29

H310BO3

36t / year

K10BF475t / year

Introduction of Our Business- Energy -Applications of Enriched Boron Compounds
 Excess reaction control of pressurized-water reactors by dissolving into primary coolingwater 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
 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
Heating and 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.
30

Introduction of Our Business- Energy -Materials for lithium-ion secondary batteries Materials to improve the performance of lithium-ion secondary
batteries
 High-temperature endurance・High conductivity・
Increased capacity・Low resistance・Flame retardanceIzumi Factory's manufacturingbuilding (Izumiotsu City, Osaka)

Lithium Hexafluorophosphate High-purity electrolytes for lithium-ion secondary batteries* Manufacture and sale at our affiliate company in China (Quzhou BDX New Chemical Materials Co., Ltd. )Example of materials used in lithium-ion secondary batteries
Additives

Positive andnegative electrodeSeparator

Current
collector

Electrolyte

BinderProtective IC

PTC element

Quzhou BDX New Chemical
Materials Co., Ltd. (China)

31

Introduction of Our Business- General Products -Tin Fluoride The GMP inspection by the USFDA for tin fluoride, an active ingredient of OTC anticaries drugs,
was completed, and we obtained official approval.
 We sell “tin fluoride” mainly in Europe and the US as a GMP-compliant productIzumi Factory's manufacturing building(Izumiotsu City, Osaka)* We expect to see big demand mainly inEurope and the US, where there is strong
interest in dental health and beauty.

 We are also developing new applications other than toothpaste(e.g., hoof sterilization)
32

Introduction of Our Business- New Initiatives(semiconductors) -Chemicals for semiconductors
Technological trends in advanced semiconductors by application
Logic

NAND

DRAM

•
•

Shift from FinFET to GAA nanosheet structure
Demand for addressing changes in constituent materials due to structural changes••

Going beyond 200 layers in 3D-NAND
Demand for even higher aspect ratio of the structure and processing technology torealize such a structure•

Demand for technology to increase integration density through further miniaturization of
2D planes and 3D stacking

Our response (selection of development and concentration of resources on it)• Focus on logic and DRAM to move forward with the development of functional
chemical solutions required for technological innovation by application• Continue to focus on initiatives aimed at reducing and guaranteeing nanosized particles to adapt to the manufacture of cutting-edge semiconductor
devices33

Introduction of Our Business- New Initiatives(Energy) Development of an electrolyte additive for lithium-ion secondary batteries Successfully applied to high-capacity,nickel-based positive electrode materials

Characteristics of the additive
under development

Realized control of deterioration in response tohigh voltages and high temperature loads
 Began sample work in March 2024

Improvement of cycle characteristics

Reduction of resistanceHigh temperature resistance
Conventional productDeveloped product

Discharge capacity after 200 cycles

Development of a material for all-solid-state batteries
 Achieved low internal resistance by facilitating electrode reactions at the positive electrode active
material-electrolyte interface for high performance Began sample work in March 2024
Trend in Market Size of Sulfide All-Solid-State Batteries Began sample work in March 2024

■ ... No buffer layer

Buffer material

Market size

Activematerial

FY 2035
Required volume of buffermaterial (estimated)... Thousands of tons

2025 (forecast)

30 (forecast)Coating of buffermaterial on
active material
surface35 (forecast)

40 (forecast)■ ... Conventional

抵抗 (Ω)(Ω)
Resistance

Volume of positive electrodeactive material (ternary system)

product■ ... Developed

product

70
0.50

Low
低

1.50

2.50

Medium中

Battery voltage (V)
電池電圧 (V)

Source: Fuji Keizai Co., Ltd. “2022 next-generation battery technology and market overview”

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High
高

3.50

Introduction of Our Business- New Initiatives(Cell Culture vessel) -Cell culture vessel Applied our unique surface processing technology to develop cell culture plates and currently promoting sample work at
research institutions, etc.
 Expanded our plate lineup in response to requests from users
 Installed test production facilities in the Next-Generation Materials Research Lab with a view to strengthening sample
work and full-scale sales
Forecast of the future size of the market
for cultivation containers including plates(100 million yen)and flasks (Japan)

Formation of chemically uniform
and stable culture substrate tofacilitate cell adhesion

Lineup of cell culture plates

Cell culture evaluation (cells: green)
General productProduct developed by our company(year)

Works well even for weakly
adherent cells

Excerpted from Ministry of Economy, Trade and Industry, “Forecast of the
future size of the market for regenerative medicine peripheral industries”

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Introduction of Our Business- New Initiatives(Electronic Materials1) -Phosphor-related Materials
 A phosphor is a substance that absorbs light energy from the outside, converts it into light of anotherwavelength, and emits it.
(Examples of applications: LED/LCD backlights, displays, etc.)
 Our LSA-61A is a red phosphor that is efficiently excited by blue light and emits a sharp red light.

Fluoride phosphor(LSA-61A)＜Display＞＜LED lighting ＞

Phosphors have an advantage over OLEDs
due to superior stability.

Adoptions of fluoride phosphors with high colorrendering properties for high-end model lighting
are picking up pace.

◆ Working to improve durability, a focus
of increasingly high-performancemini-LED and lighting applications
 The durability of the red phosphor was
improved by 50% compared with ourconventional prototype.

Our red phosphor passed initial evaluations
by some users and will undergo evaluations
for their product implementation.

 Currently promoting sample work

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Introduction of Our Business- New Initiatives(Electronic Materials2) -PCB Materials (Low Dielectric Constant Materials)
 Low-dielectric-constant materials contribute to 5G and other high-speed communications infrastructure.
 Our products are used as additives (fillers) for substrate materials such as resin.
 The higher the frequency, the more easily radio waves are attenuated and the harder it is for them toreach the intended target. To overcome this problem, there is a need to develop materials that can handle
higher frequencies.
External appearanceof the developed
product

We developed fillers with the following features to reducetransmission loss
 Low-dielectric-tangent filler
 Filler with negative thermal expansion coefficient and low dielectric property

0.001

General filler
Figure 1.

Filler for the suppression oftransmission loss

Developed productDielectric tangent of general filler anddeveloped products

Dielectric tangent of 0.001 or lower @10 GHz

Changes in crystal lattice constant at 30–400°C
Δ Changes in crystal
lattice constant (Å)

Substratesurface

Lower dielectric
tangent

Dielectric tangent

Filler powderHigh frequency
signal transmission(copper wiring)

0
-0.01

- 9ppm/ºC

-0.02
-0.03
-0.04
0

200

℃
400

Figure 2. Changes in crystal lattice constant at different
temperatures

Filler with negative thermal expansion coefficientand low-dielectric property

Working to get customer evaluations on the developed product as a substratematerial for high-frequency wave use
37

Introduction of Our Business- New Initiatives(Electronic Materials3) -High-performance fluoride materials (nanomaterials)

 Examples of target applications

 CNP-P：fluoride nanoparticle dispersion solution
with low refractive index for antireflection film

 CNP-PS1 ：Developed product that helps improve
film strength (under evaluation by customers) Film for electronic devices
 Foldable tablet
 Car cockpit, etc.

【CNP-PS1】

Focusing on film durability (Q3 to year-end) Increased film strength

Filler tightly binds to resin
in antireflection film Fluoride nanoparticles

Resin Low refractive index

CNP-P

 Chemical resistance
Surface coating

Base material

38

Introduction of Our Business- New Initiatives(Electronic Materials4) -Antistatic agent
 Antistatic agents are additives that prevent the accumulation of static electricity when mixed with plastics
and fibers.
 Using our ionic compound synthesis technology, we developed two types of highly pure material (liquidand solid) that provides excellent antistatic performance.
 Currently preparing sample work
Processed
Unprocessed
Surface resistance> 109 Ω / □Surface resistance> 1014 Ω / □The company’s developed product (AS series)

Antistatic testing with the company’s developed productAntistatic agents are used in a wide range of industries, including packaging, electronics, textiles, and automobiles,
because the buildup of static electricity in plastics and fibers can lead to malfunctions of electronic equipment or fires
due to dust adhesion and discharge.
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Introduction of Our Business- Other product examples (Product information)

Optical Material-Related◆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◆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
◆Battery-Related（Electrolytes for Sodium Ion Batteries - Sodium Hexafluorophosphate,
Additives for Lithium-Ion secondary Batteries, Material for all solid state Lithium-ion secondary battery）◆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♦Antistatic agent

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Introduction of Our Business- Transportation Business -BLUE EXPRESS, Inc.

(HP URL)

Transportation BusinessT r a n s p o r t

Land transport ・Marine transport・Rail transport

C ustoms Cl ea ra nce

Customs clearance ・Loading and Unloading

W a r e h o u s i n g

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
the containers
Customs
clearance sites

Shipping terminals

Overseas Bases

Ohama OfficeSendai Office

Singapore

Osaka Office

Kanto Office

China

Yokohama Office

Yokohama OfficeShimizu Office

Nagoya Office
Ohama Office
Kobe Office
Kitakyushu Office41

Introduction of Our Business- Transportation Business -Equipment(as of Jan, 2024)

List of vehicle types* Tractors(142)* Container Semitrailers(364)20FT chassis
35FT chassis
40FT chassis
chassis for container
Wings Semitrailers* Tank Trailer(10)Tank trailers
High Pressure Gas Trailers* 4～15-Ton Wings Trucks(6)* Temperature Controlled Wings Trucks(4)* 1～15-Ton Flatbed Bodies(12)* Container Carrier(18)* Tank Trucks(19)Dedicated Trucks
Tank Trucks for High Pressure Gas* Tank containers(516)
ISO Tank Containers (Teflon Lined)
ISO Tank Containers (Reefer)
JR Tank Containers (Teflon Lined)* Portable Tank (Teflon Lined)(24)42

Introduction of Our Business- Transportation Business -Initiatives aimed at the improvement of corporate value
1.Promoting initiatives focusing on profitability➣ Revision of low-price transactions: Revising the rates to ones commensurate with costs and revising the transactions themselves➣ Acquisition of new projects: Actively responding to inquiries, identifying potential demand of existing shippers,
collaborating with other departments, etc.

2. Construction of stable business foundations➣ We recruit with an eye on the future while looking at our age composition, and cultivate managers and senior employees
systematically.
➣ We use external training to promote the acquisition of skills and qualifications.
➣ We secure vehicles and containers by type matched to needs.

3. Continued strengthening of the compliance system➣ We prevent dangerous driving and overwork by using drive recorders and digital tachographs, and reviewing operational
management work.
➣ Enhancement of employee education, promotion of the understanding of related laws and regulations, etc.

4. Handling of the 2024-problem in logistics➣ Establishment of an internal system for the “Standards for improvement of the work hours, etc., of automobile
drivers (revised in April 2024)”

43

Introduction of Our Business- Transportation Business -TOPICS[2] Completion of new facilities(Yokohama Office)[1] Completion of new officebuilding (Head Office)・ Heating facilities for ISO tank containers for dangerous goods, 8 ofwhich can be heated simultaneously, were completed at Yokohama
Office. (Started operation in August 2023)

・ A new building has been built on the premises of Ohama
Office (Sakai City, Osaka Prefecture).
(Completed in August 2023)
・ The old office building was demolished to maintain the site for
efficient operation.

44

About PFAS

About PFAS
■ What are PFAS?
PFAS stands for per- and polyfluoroalkyl substances and is a general term for chemical substances that contain at least one carbon–fluorinebond (organofluorine compounds).
■ What are the characteristics of PFAS?

Chemical resistance: Strong resistance to solvents, acids, bases, etc.
Heat resistant: Hard to burn
Water and oil repellent: Repel water and oil
Electrical insulation: Can be used as an insulating material due to a low dielectric constantand more.
Applications include fluorine coating, Teflon coating, photoresists (photosensitive material), wire coating material, battery material(separator), artificial blood vessels, catheters, protective equipment, etc.
■ What are the environmental risks associated with PFAS?
PFAS are virtually indestructible in nature due to their characteristically strong atomic bonds and therefore will remain and continue toaccumulate in the environment. It is believed that PFAS may affect human health in various ways if taken into the body. However, there arethousands of kinds of PFAS, and the potential toxicity associated with many PFAS and whether or not they are toxic remains unknown.
■ Does Stella Chemifa handle PFAS?
Our main products, such as hydrofluoric acid, are inorganic fluorine compounds that do not have a carbon-fluorine bond, and we do not
manufacture products that fall under the PFAS category.
■ How will tighter PFAS regulations affect Stella Chemifa?
As noted above, our products are not PFAS so we are not directly affected by PFAS regulations. However, if any of our suppliers’ products
are subject to PFAS regulations, they may affect our company. Additionally, if any of the manufacturing facilities and components used byour company or suppliers are subject to PFAS regulations, they may affect our company.

46

＜Disclaimer＞
Items related to the business forecast posted in this presentation material are created based on theinformation available as of the date of this announcement. We do not guarantee any future financial results.
The actual business results may be different from assessment figures due to future events.
Please note that the information stated in this presentation material may be changed without any priornotice. We shall not assume any responsibility for any damages etc. resulting from any mistake in any
information posted in this presentation material.
This presentation material is created to help you understand our businesses.
Please kindly note that it is your sole responsibility to make any decision on your investment.

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