Business Results for
3Q(Nine months) of FYE 3/2024
February 13th, 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. 18

・Financial Summary

P. 4－11・Subsidiaries & Associates

P. 19

・Financial Forecast

P. 12－14

・Introduction of Our Business

P. 20－41

・Shareholder Return

P. 15－16

・About PFAS

P. 42

2

Performance Highlights[3Q(Nine months) of FYE 3/2024 Results]
 Shipment volume of Semiconductors declined year on year as a result of the impact of thedeterioration of market 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 last year. (Price decreased in the overseas subsidiary.)
We will continue initiatives for procurement from outside China.

[Full-year Forecast] In order to monitor the impact of uncertainties, such as the price of anhydrous hydrofluoric acid (AHF)
and trends in foreign exchange rates, on business performance, the full-year forecast remains
unchanged.
 The dividend forecast has been revised based on information available as of the announcement date.
(Feb.13 th, 2024)
3

Financial Summary
3Q(Nine months)of FYE 3/2024

Increase/
Decrease

Percentage
Increase/
Decrease

28,27023,311－4,958－17.5

Gross Profit

6,017

5,110

－907

－15.1

Operating Profit

3,068

2,284

－784

－25.6

Ordinary Profit

3,750

2,537

－1,212－32.3

Quarterly Profit Attributable to
Owners of Parent

1,658

1,707

48

2.9

Earnings Per Share (yen)134.42141.98

Capital Expenditures

3,523

3,341

－182

－5.2

Depreciation & Amortization

1,922

2,100

177

9.2

381

521

139

36.6

(million yen)
Sales Revenue

Research & Development Expenses

3Q(Nine months)of FYE 3/2023

4

Sales Revenue and Operating Profit
by Business Segment
Sales Revenue(million yen)
High-Purity
ChemicalBusiness
Transportation
Business

Other

Eliminations
and Corporate

Total

3Q
(Nine months)of FYE 3/2023

3Q(Nine months)of FYE 3/2024

24,700Operating Profit
Increase/
Decrease

3Q(Nine months)of FYE 3/2023

3Q(Nine months)of FYE 3/2024

Amount％20,059－4,641

－18.8

2,619

3,453

3,127

－325

－9.4

116

124

8

-

-

28,27023,311

Increase/
DecreaseAmount

％

1,964

－654

－25.0

441

317

－124

－28.3

6.9

16

13

－3

－19.2

-

-

－8

－10

－1

-

－4,958

－17.5

3,068

2,284

－784

－25.6

5

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

Semiconductors

3Q(Nine months)of FYE 3/2023

14,7293Q(Nine months)of FYE 3/2024

Increase/
Decrease

13,754－974

Percentage
Increase/
Decrease

Sales Revenue Constituent Ratioof High-Purity Chemicals
Industrial
Hydrofluoric Acid

Purchased Goods

3%

13%

－6.6

General Products

7%

856

Energy

1,156

299

35.0

Sales Revenue
20.0billion Yen（Abroad 56.5%）

Electronic
Materials
2%Electronic Materials

796

423

－372

－46.8

Semiconductors
Energy69%

6%General Products

2,002

1,496

－505

－25.2

Semiconductors Shipping Ratio by Country
100%

Industrial
Hydrofluoric Acid

1,621

554

－1,066

－65.8

Other
Singapore

Purchased Goods

4,694

2,673

－2,021

Taiwan－43.1

South Korea

Total

24,70020,059－4,641

6

Japan

－18.8
3Q(Nine months)

3Q(Nine months)of FYE 3/2023

of FYE 3/2024

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

Higher selling prices (+)

Transportation Business (－)

3,068

2,284

High-Purity Chemical Business －6547

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

400
200
0

FYE 3/2022

FYE 3/2023

FYE 3/2024

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Sales
Revenue

8,896

9,212

9,015

10,171

9,764

9,854

8,651

7,112

7,298

7,199

8,813

Operating
Profit

1,291

1,156

1,072

1,062

1,291

953

823

445

582

539

1,162

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%

8

4Q

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
264

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

2nd Half 32,700

2nd Half 35,700

Full-year 75,100

Full-year 72,400

70,00060,00050,000

2nd Half 38,400

2nd Half 35,200

Total 3Q 48,200
3Q(Three months)

40,00016,70030,00020,000

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 Sheet
Dec.31,2023

Increase/
Decrease

Percentage
Increase/
Decrease

55,471

57,641

2,170

3.9

15,097

16,730

1,632

10.8

Operating receivables

7,110

6,594

－516

－7.3

Inventory assets

5,496

5,460

－36

－0.7

22,62523,640

1,015

4.5

261

178

－83

－31.8

12,30912,828518

4.2

Operating liabilities

3,590

2,607

－983

－27.4

Interest-bearing liabilities

4,138

5,425

1,286

31.1

Net Assets

43,16244,8131,651

3.8

Equity capital

42,87544,566

1,690

3.9

Liabilities and Net Assets

55,471

57,641

2,170

3.9

FYE 3/2023
End-of-Year

AssetsCash and deposits(million yen)

Property, plant, and equipment

Intangible assets

Liabilities

11Financial Forecast
FYE 3/2023
ActualFYE 3/2024
Forecast

Increase/
Decrease

Percentage
Increase/
Decrease

Sales Revenue

35,38232,300－3,082－8.7

Operating Profit

3,514

2,800

－714

－20.3

Ordinary Profit

4,347

2,450

－1,897－43.7

Profit Attributable to Owners of
Parent

2,280

1,650

－630

－27.7

Earnings Per Share (yen)186.03137.33－48.70

Dividend (yen)

60

145

85

ROE (%)

5.4

3.8

－1.6

Capital Expenditures

5,408

4,400

－1,008－18.6

Depreciation & Amortization

2,593

2,750

156

6.1

660

750

89

13.5

(million yen)

Research & Development Expenses

12※Released on
Feb. 13 th, 2024

Forecast on Sales Revenue andOperating Profit by Business Segment
Sales Revenue

Transportation
Business

Other

Eliminations
and Corporate

Total

Increase/
Decrease

FYE 3/2023
ActualFYE 3/2024
Forecast

30,707

27,690

4,504

4,430

170

180

9

-

-

-

35,38232,300(million yen)

High-Purity
ChemicalBusiness

Operating Profit
FYE 3/2023
ActualFYE 3/2024
Forecast－3,017 －9.8

2,961

－74 －1.7

Amount％Increase/
DecreaseAmount

％

2,330

－631

－21.3

533

450

－83

－15.7

5.5

30

30

－0

－2.5

-

－11

－10

1

-

－3,082 －8.7

3,514

2,800

－714

－20.3

13

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

FYE 3/2023
ActualFYE 3/2024
Forecast

Increase/
Decrease(million yen)

Percentage
Increase/
Decrease

Industrialof High-Purity Chemicals

Hydrofluoric
Purchased

Acid

Goods

3%

14%

General

Semiconductors

19,04918,200－849－4.5

Products
10%Electronic

Energy

996

1,230

233

23.4

Sales Revenue
27.6 billion Yen（Abroad 57.1%）

Materials

Semiconductors

3%

66%

EnergyElectronic
Materials

1,032

910

－122

－11.8

4%

Semiconductors Shipping Ratio by Country

2,514

2,660

145

5.8

Industrial
Hydrofluoric Acid

1,739

740

－999

－57.5

Purchased Goods

5,375

General Products

100%
Other
Singapore

3,950－1,425

Taiwan－26.5

South Korea

Total

30,707

27,690－3,017

14

－9.8

Japan

FYE 3/2023

FYE 3/2024

ActualForecast

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.

15

Shareholder Return【Dividend paid and dividend forecast】
 FYE3/2023

 Annual dividend: 60 yen per share The Company repurchased 500,000 of its own shares (worth 1,350 million yen)

 FYE3/2024●Annual dividend forecast : 145 yen per share (Released on Feb.13th, 2024)

Special dividend

105.6%

Year-end dividend (yen per share)

Interim dividend (yen per share)

32.3%

20.4%

85

14.2%

30.2%
Dividend payout ratio
（%）

10

30

23

25

26

22

22

24

30

FYE3/2020

FYE3/2021

FYE3/2022

FYE3/2023

1660

FYE3/2024(Forecast)Reference Material（Corporate Profile ・ Introduction of Our Business）

Corporate Profile(as of Dec 31th, 2023)

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/

292
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)
18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

19

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
sulfateConcretematerials, 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

20

Materials forlithium-ion
secondarybatteries

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
・Manufacture and sale of additives 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

21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

22(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 life23

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.
24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
25

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.
26

Introduction of Our Business- Energy -Additives Additive for electrolytic solution to improve the performance oflithium-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)

27

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

Izumi 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)
28

Introduction of Our Business- New Initiatives(semiconductors) -Chemicals for semiconductors
Trends in advanced semiconductors● In addition to miniaturization, the scaling ofsemiconductor devices is advancing due totechnological innovations such as three-dimensional
structures and the application of new materials.
● The functionality required of hydrofluoric acid andbuffered hydrofluoric acid varies, and quality
requirements are becoming increasingly strict.

Logic

DRAM
Selection and concentration of development● Focusing on logic and memory.
We are promoting the development of functional
chemical solutions that can contribute to technologicalinnovation.
● We are continuing to focus on initiatives to guarantee
extremely small particles to adapt to the manufactureof nanoscale semiconductor devices.

29

NAND

Introduction of Our Business- New Initiatives(Energy) Development of an electrolyte additive for lithium-ion secondary batteries●Application to high capacity Ni (Nickel) based positiveelectrode materials
Control of deterioration in response to high voltages
and high temperature loads

Characteristics of the additive
under development
Improvement of cycle characteristics

Reduction of resistance●A prototype is currently being prepared for sample work High temperature resistance

Conventional productDeveloped product

Discharge capacity after 200 cycles

Development of a material for all-solid-state batteries●We are currently promoting the development of a material for the higher performance of all-solid-state batteries.
●Approaches to facilitate electrode reactions at the positive active material-electrolyte interface■ ... No buffer layer

Solid electrolyte
Positive
electrode active
material

Formation of a buffer
layer on the active
material surface■ ... Conventional

抵抗 (Ω)(Ω)
Resistance

Negative
electrode active
material

product■ ... Developed

product

70
0.50

Low
低

1.50

2.50

Medium中

Battery voltage (V)
電池電圧 (V)
30

High
高

3.50

Introduction of Our Business- New Initiatives(Cell Culture vessel) -Cell culture vesselWe have developed cell culture plate applying the company’s unique surface processing technology cultivated in high-purity chemicals business.
We have started providing samples to research institutions, etc. We are currently working on expanding our product lineup in response torequests from users.
The evaluation of culture performance is underway with joint research collaborators, and we are working on the strengthening of PR data.

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

The developed cell culture plate
Evaluation of cell proliferation (cells: red)General productProduct developed by our company(year)

Good proliferation

31

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

Introduction of Our Business- New Initiatives(Electronic Materials1) -Phosphor-related Materials
 Tablets and LCD TVs will feature mini-LED backlight LCDs, which will lead to their wider use.
 The expansion of needs is expected, using the merits of phosphor, which is more stable than quantum
dots, such as the adoption of phosphor films for automotive displays.
< LED lighting > The trend for adoption of fluoride phosphor for high-end model lighting is accelerating.
＜Digital signage＞＜Display＞

Mini LED market / x 1,000 units

Fluoride phosphor(LSA-61A)

Rate of maintenance ofinternal quantum efficiency

50% up against thecompany’s productThe company’s
conventional prototype

Developed
product

After storage at 85 degrees celsius and 85% RH for 1,000 hours

Success in the improvement of durability => currently promoting
sample work for customers

32

Forecast of the size of the global market for mini LED displays

2021

2022

2029 (forecast)

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

Introduction of Our Business- New Initiatives(Electronic Materials2) -PCB Materials (Low Dielectric Constant Materials)


Development of low dielectric fillers for high frequency substrates
Filler powder

External appearance ofthe developed productHigh frequency
signal transmission(copper wiring)
Substratesurface

Filler for the suppression oftransmission loss
(100 million yen)

30,00029,00028,000Dielectric
tangent

27,000〰〰
〰〰

26,00025,000

0.001

2022

2023

5G

2024

2025

2026

2027

5G Advanced

2028

〰〰
〰〰

（year）

6G

Figure. Trends and forecasts of market size of flexible printed circuit (FPC)(Source: Fuji Chimera Research Institute)

General filler

Developed
product

Success in the development of a new high-performance filler (dielectric tangent of 0.001 or lower @ 10 GHz)We are promoting customer evaluations as a substrate material for high frequency use

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Introduction of Our Business- New Initiatives(Electronic Materials3) -High-performance fluoride materials (nanomaterials)
 “CNP-P” fluoride nanoparticle dispersion solution with low refractive index for antireflection film
 We have developed “CNP-PS1,” which contributes to the improvement of film strength, and have started the shipmentof samples.
No antireflection film

With antireflection film

[CNP-PS1]

Amount [100million yen]

Trend in shipments of display-related materials(Surface processed film)

1,600

CNP-P
1,400

Surface coating* The screen is an image.

1,200

 Fluoride nanoparticles

 Low refractive index
 Chemical resistance
1,000 Increased film strength

2022

2023

2025

2028

ResultExpected

Forecast

Forecast* Source: Fuji Keizai Co., Ltd., “2023 Current status of and future prospects fordisplay-related markets”

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Introduction of Our Business- New Initiatives(Electronic Materials4) -Antistatic agent
 Using our ionic compound synthesis technology,
we developed a highly pure material able toprovide excellent antistatic performance.

Unprocessed
Resin powder adheres tothe whole surface

Antistatic agent application
Virtually no adhesion of resin
powder

Surface resistance> 1014 Ω / □Surface resistance> 109 Ω / □The company’s developed product (AS series)
The growth of the market for antistatic agents is expected due to the rapid
industrialization and significant growth of the electronics industry in emerging
economies.

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Antistatic testing with the company’s developed product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

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

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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

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 Office38

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)39

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)”

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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.

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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.

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＜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 prior notice.

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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