(Note) This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

December 13, 2023
Company Name: Tokuyama Corporation
Representative Name: Hiroshi Yokota,
Representative Director, President and Executive Officer(Code No. 4043, Prime Market, TSE)
Contact: Tetsuya Nakano, General Manager
Corporate Communications & Investor Relations Dept.
TEL: +81-3-5207-2552

Notice Concerning the Execution of aSemiconductor-Grade Polycrystalline Silicon Business Joint Venture Agreement
Tokuyama Corporation (hereinafter referred to as “Tokuyama” or “the Company”) today announced that its
Board of Directors had resolved to execute a joint venture agreement with OCI Company Ltd. (based inSeoul, South Korea and hereinafter referred to as “OCI”) for the joint production of semiconductor-grade
polycrystalline silicon semi-processed products in Malaysia at a meeting held on December 13, 2023. Brief
details are presented as follows.
1. Purpose of Joint Venture Establishment
Tokuyama has identified efforts to transform its business portfolio as a key component of its Medium-Term
Management Plan 2025. Based on the aforementioned, the Company is promoting business growth byallocating management resources to the electronics, healthcare, and environmental businesses while at thesame time pursuing international expansion. The joint venture business in this instance is a part of theseendeavors. In light of expansion in the semiconductor market and subsequent forecast increase in demandfor polycrystalline silicon, Tokuyama plans to establish a joint venture company with OCI to put in place
production and supply facilities for semiconductor-grade polycrystalline silicon using clean energy andpromote accelerated business expansion in the electronics field while controlling increase in CO2 emissions.
As identified, this joint venture business entails the establishment of a joint venture company that will engage
in the production of semiconductor-grade polycrystalline silicon semi-processed products. The Company
plans to start the operation with an annual production capacity of around 8,000 metric tons. The total
investment is expected to be worth around US$300 million. Production capacity is planned to increase toaround 10,000 metric tons in the future. Each company plans to undertake the commercialization and sale ofproducts as is currently the case.
Collaboration is subject to the approval of the relevant regulatory authorities in the countries involved. With
this in mind, Tokuyama will proceed with the establishment of the joint venture with OCI while responding
appropriately.
12. Outline of Joint Venture
(1)

Name

Sarawak Advanced Materials Sdn. Bhd.

(2)

Location

Sarawak, Malaysia(3)

Name and Title of

Yet to be decided

Representative(4)

Business

Production and sale of semiconductor-grade polycrystalline siliconsemi-finished products(5)

Capital

168 million US dollars(6)

Date of Establishment

April 2024 (Planned)(7)

Major Shareholder andOCI Company, Ltd.

50%

Ratio of Shareholding

Tokuyama Corporation50%2

3. Outline of Joint Venture Partner
(1)

Name

OCI Company, Ltd.

(2)

Location

94 Sogong-ro, Jung-gu, Seoul Korea(3)

Name and Title ofVice Chairman & CEO Teak Joung Kim,

Representative

President & CEO Yoo Shin Kim(4)Business

Manufacture and sale of chemicals, etc.

(5)

Capital37,183 million Korean won(6)

Date of Establishment

May 2, 2023(7)Major Shareholders andOCI Holdings Company Ltd.

33.25%

Ratios of Shareholdings

National Pension Service

7.42%

SK siltron Co., Ltd.

2.00%

(8)

(9)

Relationships between

CapitalTokuyama and the relevant company have nothe Parties

Relationshipsignificant capital relationship.

Personnel

Tokuyama and the relevant company have noRelationshipsignificant personnel relationship.

Transaction

Tokuyama and the relevant company have noRelationshipsignificant transaction relationship.

Status as a

The relevant company does not belong to Tokuyama’s

Related Party

related parties.

Recent operating results and financial position* (In million Korean won)
Fiscal year

2022

2021

2020

Net Assets

4,011,397

3,123,792

2,385,729

Total Assets

6,745,534

5,704,061

4,437,236

Net Sales

4,671,316

3,243,997

2,002,517

Operating Income (loss)

976,673

625,985(86,145)

Income (loss) attributable to owners of

880,286

647,648(246,151)

Net assets per share (In Korean won)

168,338

132,095

100,615

Net income (loss) per share

36,941

27,387(10,381)

2,500

2,000

0parent(In Korean won)
Dividends per share (In Korean won)* On May 1, 2023, the former OCI Company, Ltd. was divided into OCI Holdings Company Ltd., a surviving
corporation, and the current OCI Company, Ltd., a new company. The above is numerical information of theformer OCI Company, Ltd. before divided.

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4. Timetable(1)

Board of Directors’ resolution date

December 13, 2023

(2)

Joint venture agreement date

December 13, 2023 (Planned)(3)

Business launch date

April 2024 (Planned)

5. Impact on Business Performance
The impact of the establishment of this joint venture on the consolidated full-year earnings forecast for thefiscal year ending March 31, 2024, will be minor, but the Company will promptly give notice if the earnings
forecast is revised.

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