3Q FY2020 Tokuyama Corporation Investor Meeting
Q&A (Excerpts)

Date and time:

January 29, 2021 (Friday) 12:00 – 13:00

Participants:

Hideo Sugimura, Director, Managing Executive Officer, General Manager,
Corporate Planning Div.
Taro Kobayashi, General Manager, Corporate Communications & Investor
Relations Dept.

1.

Questions regarding individual products

Q1: Please tell us about the status of plastic lens-related materials, dental materials andequipment, and the share exchange agreement with A&T Corporation in the Life &Amenity segment?
A1: The downturn in plastic lens-related material exports bottomed out around the summers
and is projected to remain steady going forward. In dental materials and equipment,OMNICHROMA is receiving wide acclaim. We hope to secure firm growth of this newproducts in Europe and the U.S. As far as A&T Corporation is concerned, the goal is tolift our interest in the company and include it in our scope of consolidation as a whollyowned subsidiary while actively promoting increased integration with the Tokuyama’s
chemical synthesis technology. We are also looking to collaborate more deeply in theresearch of reagents and diagnostic equipment while working to expand ourcompetitiveness and business over the medium to long term.

Q2: The increase in profit does not appear to match the upswing in polycrystalline siliconsales volumes. Will this trend continue in the future? What can you tell us about
negotiations regarding sales volumes and prices for the next fiscal year? With theincrease in IC chemical sales volumes, will profits continue to improve going forward?
A2: While polycrystalline sales volumes for the full period are projected to increase around
10% year on year, investments in research and development are being undertaken tomaintain and improve quality. On this basis, the upswing in sales volume has not directlytranslated into profit growth. Although prices may fluctuate depending on thecomposition of customers, we believe that improvements will be made toward the next
fiscal year. In the IC chemicals business, sales volumes of both IPA and photoresist

developer are brisk. Efforts to maintain quality also remain steady. We are confident thatsales volumes will increase even further next fiscal year.

Q3: What is your outlook for fumed silica in the future?
A3: Fumed silica is widely used in the CMP semiconductor and general-purpose fields. One
such general-purpose application is in the antistatic toners used in copy machines. Here,sales volumes have declined due to the downturn in office copier use as a result of theincrease in telework. While we anticipate this trend will continue for the foreseeable
future, we recognize that the market environment is evolving and are accelerating thedevelopment of new products for new fields.

2.

Question regarding “Others (Fixed costs, etc.)” in the “Changes in Operating Profit”
graph on page 8 of the Presentation for IR Meeting materials

Q4: “Others (Fixed costs, etc.)” were projected to increase ¥10.4 billion year on year at thebeginning of the period. What was the rate of expenditure up to the third quarter, andwhat are you estimating for the full fiscal year? Looking further ahead, what will be thetrend from the next fiscal year and beyond?
A4: Roughly 80% of the ¥10.4 billion increase forecast at the beginning of the period is madeup of forward-looking investments. These forward-looking investments are earmarked ascapital as well as R&D expenditures, efforts to recruit and bolster human resources, andmaintenance of aging and deteriorating plants. As far as progress is concerned, steps
have been taken to complete approximately 50% of the aforementioned expenditures asof the end of the third quarter. Repairs and capital expenditures are in the implementation
phase with efforts being made to reduce costs. The schedules of certain R&D projects areundergoing adjustments in line with progress of individual themes. Personnel expenses
are essentially in line with plans. The actual total of ¥3.5 billion in the third quarter
partly reflects the lower level of such expenditures as business travel as well asentertainment expenses compared with forecasts at the beginning of the period. We
anticipate progress will come in at around 60 to 70% of the full fiscal year ¥10.4 billion,
and also expect increases in R&D expenses aimed at future growth as well as
depreciation associated with investments from the next fiscal year.

3.

Question regarding the status of investments in specialty products

Q5: The Company is working to enhance the capacity of each product in the Specialty
Products segment. Can you provide us with details of operating schedules and when wecan expect a contribution to profit?
A5: Work to expand production of aluminum nitride, a thermal management material, hasalready commenced with a 40% boost to capacity complete. We will move from
customer certification to commercial operation and anticipate a contribution to profit
from the next fiscal year. As was mentioned a moment ago, sales volumes of IPA will
increase from the next fiscal year. Photoresist developer facilities that underwent a boost
in capacity last year is currently online and already helping to lift profit. Construction ofa plant by the joint venture with Formosa Plastics Corporation in Taiwan will becompleted during 2021. Operations are scheduled to commence from 2022. In the Life &Amenity segment, work to boost capacity of dental materials and equipment at theKashima Factory will be completed in the middle of the next fiscal year and contribute toprofit from the second half.

4.

Question regarding the accumulation of shareholders’ equity and shareholder returns

Q6: Shareholders’ equity has steadily accumulated since the refinancing of a subordinatedloan in September 2018. What are your thoughts on shareholder returns?
A6: In formulating our new Medium-Term Management Plan, we are looking at future
capital expenditures, cash flow, and the structure of our assets. In this context, one major
financial issue is the redemption of subordinated loans. As our current profits increase,
we recognize the critical need to also undertake investments aimed at reducing CO2emissions. In light of the aforementioned, we will reorganize our thoughts onshareholder returns and elaborate further when announcing details of our newMedium-Term Management Plan.