The First Six Months of the Fiscal Year Ending
March 31, 2024

Financial Results Briefing
November 14, 2023

Stock code: 4215 TSE Prime Market
1

Contents
Consolidated Financial Results for the First Six Months of the
1 Fiscal Year Ending March 31, 2024

P. 3-14

Consolidated Financial Results Forecast and Initiatives to Achieve
One-Year Management Plans

P. 15-19

3 Laying the Groundwork for the Next Medium-Term Management Plan

P. 20-23

2

TOPICS

Increase Production Capacity in Growth Areas

P. 25

TOPICSR & D Strategy

P. 26

TOPICS

Challenges in the Field of Mobility

P. 27

TOPICS

Development of Environmentally Friendly Products

P. 28

TOPICS

Efforts toward Carbon Neutrality

P. 29

Information

Notice Concerning Issuance of Integrated Report 2023

P. 31

AppendixCompany Overview and Our Company Features

P. 32-422

1

The First Six Months of the Fiscal Year Ending
March 31, 2024

Consolidated Financial Results31-1. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Consolidated Financial Highlights
Financial results for the first six months of the fiscal year ending March 2024
(millions of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Year on year

Net sales

72,51567,943-4,571

Operating income

3,090

2,393

-696

Ordinary profit

3,318

2,588

-730

Profit attributable to owners of parent

1,862

1,888

25

Net sales

Operating income

Profit attributable toowners of parent

Although the infrastructure business recovered owing to the Howell piping recovery and flooringmaterials remained strong, overall net sales declined mainly owing to a significant decline in sales ofshrinkable film due to the slump in the North American market, sluggish sales of housing materials due
to reasons such as a decrease in the number of new housing starts, and sluggish growth in highfunctional materials due to a delay in the recovery of the semiconductor market.
BAC*1, a North American subsidiary of Shrinkable Film Business, BLA*2, a South American
subsidiary of Shrinkable Film Business, and BLX*3, a European subsidiary of Decorative Materials
Business, posted sharp declines in profit due to a decline in sales volume caused by the prolonged
slump in the North and South American and European markets.
Although there was a decline in the operating income level, extraordinary gains and losses improved
mainly owing to gains on sales of securities resulting from the dissolution of cross-shareholdings,
resulting in an increase in profit.
*1 BONSET AMERICA, *2 BONSET LATIN AMERICA, *3 BONLEX EUROPE
4

1-2. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Consolidated Statements of Income(millions of yen)

Results
Six months ended
September 30, 2022

Six months ended
September 30, 2023
Year on year

AmountPercentage

AmountPercentage

Increase/decrease

Rate ofchangeNet sales

72,515100.0%

67,943100.0%-4,571-6.3%

Gross profit

19,21826.5%

17,79926.2%-1,419-7.4%

Selling, general andadministrative expenses

16,12722.2%

15,405

22.7%

-722

-4.5%

Operating income

3,090

4.3%

2,393

3.5%

-696

-22.5%

Ordinary profit

3,318

4.6%

2,588

3.8%

-730

-22.0%

Profit attributable to owners ofparent

1,862

2.6%

1,888

2.8%

25

+1.4%

Overseas net sales

13,975

19.3%

9,629

14.2%

-4,346-31.1%

Earnings per share

19.16 yen---

19.41 yen---

0.25 yen+1.3%
5

1-3. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Percentage of Net Sales by Segment
Other
0.5%

Packaging
Materials
Department
12.9%

Specialty Films
Business
8,740 million yen
HighFunctional
Materials
Department
15.4%

Total net sales

Infrastructure
Materials
Department
14.5%
High Functional
Materials Business
10,458 million yen

Housing Materials
Department
19.2%

Construction
Materials Business
21,846 million yen

Flooring &Decorative
Materials
Department
12.9%

Agricultural Materials
Department
24.6%

Environmental
Materials Business
26,570 million yen
6

1-4. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Quarterly Trends by Segment
FY2022

Construction
Materials(millions of yen)

Environmental
Materials

Net sales by segment
11,786

11,103
10,743
10,74911,035Specialty Films

14,795
13,68014,247
13,267
12,89015,000
11,223High Functional
Materials

FY2023

12,506

10,000
6,754

5,927

5,727
5,738

5,336

5,274
5,183

5,291
4,693

5,703

5,000

4,485
4,255

0
1Q

(millions of yen)

2Q

4Q

1Q

2Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

4Q

1Q

2Q

1Q

2Q

3Q

4Q

1Q

2Q

Operating income by segment

900

600

3Q

874

822

582

810

640 615

572

549

507

528

491

465

368

300

238
74

18

0

-300

1Q

2Q

3Q

4Q

1Q

2Q

260 244

1Q

-27

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

-8
-97

2Q

-150
-258

1Q

2Q

3Q

4Q

-298
1Q

2Q

7

1-5. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Key Related Indicator Trends
Segment

Construction
Materials
Segment

Environmental
Materials
Segment

Related indicator

FY2021→ FY2022

FY2022→ FY2023

Overview of FY2023

New housing starts

Down sharply from the previous year
owing to reasons such as higher housing
prices and rising prices of commodities.

Renovation work on
condominiums

Post-coronavirus postponed projects havesettled, anddemand has been on track as initiallyforecasted.

Demand for agricultural
materials

Declining demand for renewals due to rising
prices of various materials against the
backdrop of continued rise in prices such as
raw material costs.

Status of civilengineering and public
works

The construction of projects related to ourcompany are stillsuspended or postponed, but the recovery of
new construction is expectedowing to the end of the COVID-19 pandemic.

High Functional
Demand forMaterials
semiconductors
Segment

Specialty Films
Segment

FY2020→ FY2021

Consumption
trends of household
goods such as PET
bottles and food

After nearly a year of
global market contraction into which the active
market had suddenly changed, there are finally
signs of bottoming out.

Owing to the effects of recent high prices,
there has been no significant recovery, andthe overall performance has been weak.

* Related indicators and overviews were determined in our company based on interviews with business partners of our company and are notbased on public data.

8

1-6. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Overview by Segment:
Construction Materials Business Segment
Construction Materials Business Segment
Housing Materials Business■ Net sales:● Operating
income:Although there was an increase in sales due to product price increases associated with higher raw material prices and a recovery in demand
for signage, sales to residential and non-residential properties remained sluggish owing to a decrease in the number of new housing starts
and a decrease in capital investment due to higher construction materials and livestock feed prices, resulting in a decrease in net sales of
total business.
In the case of daylighting building materials, profit decreased owing to low sales volume and rise in raw material prices, but overall profit of
the business increased owing to cost transfer to product prices, reduction in fixed costs, and improvement in earnings in the signage field.

Flooring & Decorative Materials Business■ Net sales:● Operating
income:Sales of flooring materials to condominium renovations in Japan remained steady. On the other hand, although demand for decorative materials in
China and Australia was on a recovery trend, there was prolonged cooling of the furniture market in North America and Europe, where financial
tightening continues. As a result, overall sales of the total business remained at the same level as the previous year.
In decorative materials, profit fell largely owing to a decline in sales volume, despite improvements in sea freight rates and electricity prices in Europe.
On the other hand, profit of flooring materials increased, partly owing to the second price hike of products associated with the rise in raw material prices.
As a result, overall profit of the total business increased.

(millions of yen)

Construction
Six months ended
Materials Business September 30, 2022

Net sales

OperatingincomeSix months ended September 30, 2023

2Q total

1st Q

2nd Q

2Q total

Results

Results

Results

Results

Year on year

Construction Materials
Business total
Housing Materials
Business
Flooring & Decorative
Materials Business

22,259

11,103

10,743

21,846-412(-1.9%)

13,324

6,555

6,474

13,030

8,934

4,548

4,268

8,816

Construction Materials
Business total

1,154(5.2%)

640(5.8%)

615(5.7%)

1,255(5.7%)

101(+8.8%)

Housing Materials
Business753(5.7%)

332(5.1%)

502(7.8%)

835(6.4%)

81(+10.8%)Flooring & Decorative
Materials Business400(4.5%)

307(6.8%)

112(2.6%)

420(4.8%)

19(+4.9%)-294(-2.2%)-117(-1.3%)

9

1-7. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Overview by Segment:
Environmental Materials Business Segment
Environmental Materials Business Segment
Agricultural Materials Business■ Net sales:

Although the construction of plastic greenhouses continued to perform well following the previous fiscal year, the decline in crop yields
due to extreme weather events such as record-breaking heat and heavy rain caused a decline in the willingness of producers to invest,
resulting in sluggish growth in agricultural materials. As a result, overall sales of the business decreased.

● Operating
income:There was also a downward push by competitors, but the decline was minimal.

Infrastructure Materials Business■ Net sales:

Although pipe renewal remained sluggish owing to delays in construction projects, overall sales of the business increased owing to a recovery indemand for Howell piping and continued strong sales of rotationally molded products and civil engineering sheet shields.

● Operating
income:In addition to the increase in revenue, the plant improved its profitability and operating income became profitable.

(millions of yen)

Environmental
Six months ended
September
30, 2022
Materials BusinessNet sales

OperatingincomeSix months ended September 30, 2023

2Q total
Results

1st Q
Results

2nd Q
Results

Environmental Materials
Business total
Agricultural Materials
Business
Infrastructure Materials
Business

25,774

13,68012,89026,57016,857

9,009

7,717

16,727

8,917

4,670

5,172

9,843

Environmental Materials
Business total

-8
(---)

260
(1.9%)

244(1.9%)

504(1.9%)

513
(---)

289
(1.7%)-298(-3.3%)

191(2.1%)
68(1.5%)

91(1.2%)
152(3.0%)

283(1.7%)
221(2.2%)-6(-2.1%)

Agricultural Materials
Business
Infrastructure Materials
Business

2Q total
Results
Year on year
796(+3.1%)-129(-0.8%)
926(+10.4%)

519
(---)

10

1-8. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Overview by Segment:
High Functional Materials Business Segment
High Functional Materials Business Segment
High Functional Materials Business■ Net sales:

Sales of industrial plastic plates and engineering plastics for manufacturing equipment fell owing to the impact of the semiconductor inventory
adjustment and related production cuts by semiconductor manufacturing equipment manufacturers. Sales of nanomaterials for electronic circuitboards were lower than a year earlier owing to continued weakness in the memory market, particularly DRAM. Micro motors remained weakowing to inventory adjustments in major sectors such as consumer equipment.
On the other hand, sales of acetate plates for eyeglass frames increased owing to strong demand from domestic and overseas brandmanufacturers.

● Operating
income:Profit declined significantly owing to the effects of rising prices of resin raw materials, etc., utility costs such as electricity and fuel, and rising logistics
costs, in addition to the decline in sales volume.

(millions of yen)High Functional
Six months ended
September 30, 2022
Materials BusinessSix months ended September 30, 2023

2Q total

1st Q

2nd Q

Results

Results

Results

2Q total
Results

Year on year

Net sales

High Functional
Materials Business
total

11,665

5,274

5,183

10,458-1,207(-10.4%)

OperatingincomeHigh Functional
Materials Business
total

1,424
(12.2%)

528(10.0%)

465(9.0%)

993(9.5%)-430(-30.2%)111-9. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Overview by Segment:
Specialty Films Business Segment
Specialty Films Business Segment
Packaging Materials Business■ Net sales:

The production and sales in North America and South America have been low owing to the sluggish market in Europe and the United States,
especially the prolonged distribution inventory adjustments in the North American market, resulting in a significant decrease in sales ofshrinkable film. On the other hand, domestic sales of zipper tapes remained at the same level as last year, while overseas sales, especially inEurope and the Middle East, were generally weak, resulting in a decrease in sales.

● Operating
income:For shrinkable film, the main markets in North America and South America were weak, resulting in a large operating loss. Although operating
income of zipper tapes was secured despite the impact from a delay in passing on the rise in raw material prices in Japan and a slump inoverseas sales, the business as a whole suffered a large operating deficit.

(millions of yen)

Specialty Films
Business

Six months ended
September 30, 2022

Six months ended September 30, 2023

2Q total

1st Q

2nd Q

Results

Results

Results

2Q total
Results

Year on year

Net sales

Specialty Films
Business(Packaging Materials
Business) total

12,457

4,255

4,485

8,740

-3,716(-29.8%)OperatingincomeSpecialty Films
Business(Packaging Materials
Business) total

483(3.9%)-298(-7.0%)-150(-3.4%)-449(-5.1%)

-932
(---)

12

1-10. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Consolidated Balance Sheets(millions of yen)
As ofMarch 31,2023

Assets

As of
September 30,
2023

Increase/decrease(millions of yen)

98,095

101,179+3,084

Cash and deposits

5,603

6,868

+1,264

Accounts receivable trade

46,933

46,463-470

Inventories

28,12628,555

+428

Other

17,432

19,293+1,860Non-current assets

51,17850,737-441

Property, plant andequipment

40,03340,457+423

Liabilities/Net assets

Intangible assets

2,755

2,939

+183

(millions of yen)

Investments and otherassets

8,389

7,340

-1,048

Total assets

149,274

151,916+2,642

Total liabilities

56,61556,875+259(Interest-bearing
liabilities)

5,939

5,931

-8

Total net assets

92,65895,041+2,382Current assets

Current
assets

98,095

101,179+3,084

51,178Non-current
assets50,737-441
March 31, 2023

Liabilities

56,61592,658September 30, 2023

56,875+259

Net assets+2,382

95,041

Increase in cash anddeposits(+2,948)
Main factor: Surplus funds

Decrease in investment
securities(-1,350)
Main factor:
Decrease due to dissolutionof cross-shareholdings

Increase in accrued
taxes(+814)

Increase in retained
earnings( +1,498)(%)
March 31, 2023

September 30, 2023

Capital-to-asset ratio

61.1

61.6

0.5
13

1-11. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2024

Consolidated Statements of Cash Flows⚫ Free cash flow increased by 2,997 million yen to +2,190 million yen from -806 million yen
in the second quarter of fiscal 2023.
Profit before income taxes
Depreciation
Decrease in trade payables

Purchase of property, plant and equipment
Increase in deposits paid
Proceeds from sales of investment securities+2,845+2,634-1,195-2,392+4,582
Cash flows fromoperating activities-1,990-1,683+1,761

Decrease in short-term borrowings -603

Cash flows frominvesting activities(millions of yen)

Cash andcash equivalents
at beginning of
period5,603

April 1, 2023

-1,076+150

Cash flows
from financing
activities

Effect of exchange
rate change on
cash and cash
equivalents

Cash andcash equivalents
at end of period

6,868
FCF: + 2,190 million yen

September 30, 2023

14

2

Consolidated Financial Results
Forecast and Initiatives to Achieve
One-Year Management Plans

15

2-1. Consolidated Financial Results Forecast and Initiatives to Achieve One-Year Management Plans

Revisions to Consolidated Financial Results Forecast(millions of yen)

Results

Forecast

Fiscal year ended March
31, 2023 (cumulative)

Fiscal year ending March 31, 2024 (cumulative)

AmountForecast at the
beginning of theperiodAmountRevised forecast

AmountYear on year

Increase/decrease
from forecast at
the beginning of
the period

145,725

154,000

146,000+274-8,000Operating income

5,791

7,800

6,200

+408

-1,600Ordinary profit

5,923

8,000

6,300

+376

-1,700

Profit attributableto owners of parent

2,460

5,000

5,000

+2,539---Earnings per share

25.30 yen51.41 yen51.37 yen

26.07 yen

-0.04 yen

ROE

2.7%

5.3%

5.3%

+2.7%

---

ROA

1.7%

3.3%

3.3%

+1.7%

---

Net sales162-2. Consolidated Financial Results Forecast and Initiatives to Achieve One-Year Management Plans

Reasons for Revision of Consolidated Financial Results
Forecast and Initiatives for the Full Achievement
Reasons for revision❶ Slower sales due to weak domestic market conditions
Declines in the number of new housing starts, delays in the recovery of semiconductor-related demand, etc.

❷ Worsening earnings of three overseas group companies
BLX
BAC
BLA

Delayed recovery due to prolonged cooling of the furniture market in Europe as monetary tightening continues.
Continued sales slump due to prolonged distribution inventory adjustments and changes in market conditions amid tightenedmonetary policy.
Sluggish sales due to stagnant market conditions and competition with cheaper Asian products in South America.

Initiatives for the full achievement❶ Improvement in raw
material prices❷ Improvement of sales
pricesContinuing strategic purchasing through internal manufacturing and import expansion whileclosely monitoring severe market trends.

❸ Reduction of costs andexpenses❹ Reduction in the numberof loss-making companies

Promotion of improvement and rationalization of plant production efficiency.

Continuing product price increases due to higher raw material and utility prices.

Four companies are expected to be deleted (from nine to five) as a result of strengthened
management and supervision of underperforming companies regarded as targets for criticalmonitoring.

❺ Strategic transformation of one overseas group company (BLA)The Company has decided on the withdrawal of the business of BLA under the policy to concentrate management resources in the
North American market, which is expected to grow in the future.

❻ Turnaround of two overseas group companies (BLX, BAC)
BLX
BAC

Improving business profitability such as by strengthening sales in North America, improving yields and strengthening
manufacturing site management.
By strengthening local sales, reducing management personnel, optimizing manufacturing personnel, and reducing raw
material costs, the company is expected to achieve a monthly profit during the second half, leading to a V-shaped recovery
in the next fiscal year.
172-3. Consolidated Financial Results Forecast and Initiatives to Achieve One-Year Management Plans

Trends in Net Sales and Operating Income
6.3%
Operating income
margin (total)

6.1%

5.3%
4.2%
4.0%

OperatingincomeNet sales(millions of yen)(millions of yen)

160,000

141,936

139,432
140,000

Other

120,000

19,684
Specialty Films

100,000

17,267
High Functional
Materials

134,470

531

448

Other

940

664

840

16,00019,350Specialty Films

22,442

21,35218,000146,000

145,725

14,00019,464
22,530High Functional
Materials

22,72921,625
17,47812,00010,00055,63960,000

8,651

8,511

80,000

7,372

Environmen
tal Materials

54,93057,620
Environmen
tal Materials

54,81653,874

8,000

6,200

5,791

6,000

40,0004,000
20,00046,310Construction
Materials

45,660Construction
Materials

44,79544,41842,1472,000

00Net sales

OperatingincomeFY2019Net sales

OperatingincomeFY2020Net sales

OperatingincomeFY2021

Net sales

OperatingincomeFY2022

Net sales

OperatingincomeForecast for FY2023
18

2-4. Consolidated Financial Results Forecast and Initiatives to Achieve One-Year Management Plans

Dividend Forecast◼ The minimum dividend for FY2023 is 22 yen per share.
In accordance with our company policy, which sets the dividend payout ratio at 40%, the Company plans torevise upward if its performance exceeds the plan.
(Payout ratio)(Dividend per share: yen)

59.5%

40

60.0%

Payout ratio

35

50.0%
30

40.2%

42.9%

39.5%

40.0%
25

Lower limit of 22 yen
20

30.0%

15

27.0
10

20.0%

22.0

22.0
15.0

10.0%

5

0

0.0%

FY2020

FY2021

FY2022

FY202319

3Laying the Groundworkfor the Next Medium-Term
Management Plan20

3. Laying the Groundwork for the Next MediumTerm Management Plan (1)Promotion of business restructuring
Establishment of the Business Restructuring
Council
Each department establishes measures to achieve an operating income and to double it over the medium term.
Monitor progress and discuss issues, etc. to achieve the plan.
We have a goal of restructuring the decorative materials business and increasing plate production in the high functional
materials business in anticipation of recovery of demand for semiconductors.
M & A Strategy
Making business investments that contribute to business expansion.
Establishment of investment policy
Establishment of investment quotas to accelerate business restructuring.

Increase production capacity in growth areas▶ P. 25

Active investment in the semiconductor sector
Aggressive investment in the Aboshi Plant, the mother plant of plate production for semiconductor manufacturing equipment,
will be promoted to increase production capacity. In addition, dedicated production lines are to be established at other plants
and appropriate production systems will be established for future demand expansion.
Overall optimization of production system
In order to strengthen competitiveness, we will optimize all of the Group’s production sites.
Investment leading to improvement and rationalization of production efficiency beyond maintenance and renewal at each plant.
New production investment with an eye on future demand trends.

Steadily increasing capacity and building an offensive structure21

3. Laying the Groundwork for the Next MediumTerm Management Plan (2)Fundamental review of R & D◼ Formulate new R & D strategy
Review of the research portfolio
By taking inventory, selecting and concentrating on research topics, we select targets for focus
in the Next Medium-Term Management Plan.
New research institute plan

▶ P. 26

Laboratories spread across Aboshi/Shiga/Okayama are to be consolidated into a new R&D
center, with Sanda City as a candidate for its location.
Create businesses that support the future by demonstrating synergy effects.

Image

Strengthening the new business promotion
system through organizational restructuring
We envision the establishment of a new organization to explore new fields and premarket new products and materials.

◼ Specific examples of new initiatives
New field

Challenges in the Field of Mobility▶ P. 27

Development of polycarbonate resin windows contributes to mobility weight reduction.
New
technology

Consider the introduction of
nanotechnology

Synergy with our group’s nanomaterials technology is to be demonstrated through theintroduction of technology from overseas.
New productDevelopment of Environmentally
Friendly Products▶ P. 28

From the perspective of 3R + Renewables, we will promote reduce, recycle, and the use of biomass plastics and biodegradable resins.
223. Laying the Groundwork for the Next MediumTerm Management Plan (3)Restructuring and strengthening business divisions
Business portfolio strategy
Visualize capital profitability through portfolio management using ROIC as an indicator.
In addition to selecting and concentrating businesses, we will also examine and improve capital profitability at the site level.

Strengthening the functions of the Production Division
Smart Factory
The Ibogawa Plant is used as a model plant to promote the development of smart factories. After verification of its
effectiveness, it is planned to be deployed to other plants.
Carbon Neutral▶ P. 29

Scope 1 and 2 achieved the mid-term targets for FY2030 goals, but we aim for further increases.
The head office and some manufacturing sites obtained ISCC PLUS certification, an international certification system forsustainable products.

Deepening the personnel system for sustainable growth
Revision of the personnel system

Simple, performance-based grading and compensation system
Promotion of personnel planning, selection of the right people for the right positions and promotion by
selection, in order to realize management strategies
Constructing systems to nurture human resources that will lead the future and developing a challenging culture
Promotion by selection and training of young people (earlier development of human resources)
23

TOPICS

24

TOPICS

Increase Production Capacity in Growth Areas
Sites

Measures

Aboshi Plant
First stagePress
expansion

Content

Operatingtime

Investment
amountFY2026

Approx.
5.5 billion yen

FY2024

Approx.
3.5 billion yen

・Production increase of plates forsemiconductor manufacturing equipment

Shiga Plant

Effective useof existing
facilities

・Conversion of calendar sheet (decorative
materials) facilities to those forsemiconductor applications

BAC

Expansionof production
lines

・Production increase of shrinkable film inNorth America

BLX

Expansionof production
lines

・Production increase of PVC cosmetic sheetsin Europe

FY2024

Approx.
1.0 billion yen

TAKIRONROWLAND

Expansion of
production
lines

・Production increase of acetate plates foreyeglass frame materials

FY2024

Approx.
200 million yen

All plantsNew
production
management
system・Rationalization through the renovation ofplant management systems
・Beginning with the Shiga Plant and the
Ibogawa Plant, it is planned to expand to allplants from FY2024.

FY2023 toFY2026

Approx.
3.0 billion yen

Ibogawa
Plant

Smartening

・Rationalization through AI utilization and DX

FY2023 toFY2026

Approx.
800 million yen

Hiratsuka
Plant

Automation

・Streamlining by automating productpackaging, transportation, and stocking

FY2024

Approx.
400 million yen

All Group
plantsConsolidation
andelimination

・Transferring and consolidating/eliminatingproduction systems to improve efficiency andreduce fixed costs

---

---

Aboshi Plant

Shiga Plant

BAC

BLX

Ibogawa Plant
25

TOPICS

R & D Strategy
New research institute plan
Aboshi Plant

New R&D center
Sanda City in Hyogo Prefecture is considered as a
candidate location for consolidated facilities within two years.

Current
situation

PurposeAchieve synergies by consolidating
R & D resources

Plates,compounds, etc.

Shiga Plant

Desired results

Consolidation
Films

Acquisition of newtechnologies
through M & A andintroduction oftechnologies fromoverseas

Okayama Plant
Nanotec
hnology⚫ Accelerating the creation of new
businesses and products⚫ Higher functionality and higher
added value through application toexisting products⚫ Development of applications ingrowing markets such as
semiconductors and mobility, andentry into those markets

Creating businesses that
support the future

To sustainable growth

Concretely considering introduction oftechnology from overseas
Nanotechnology:
Techniques for freely controlling substances at atomic and molecular scales

Image

26

TOPICS

Challenges in the Field of Mobility
Polycarbonate resin base material applied for mobility weight reduction“Low-carbon Polycarbonate Resin Front Window”
Our company, which manufactures, processes, and sells
synthetic resin products, has developed the Low-carbon
Polycarbonate Resin Front Window
in collaboration withmajor Tier 1 manufacturers* and materials
manufacturers. This window isadopted for the LEXUS’s ROV* carwith the first hydrogen engine for the customer
experience program.
* Tier 1 manufacturers
Manufacturers that supply parts directly to finishedvehicle manufacturers* ROV

Recreational Off highway Vehicle

As a countermeasure against global warming, vehicles are required to be lighter. By using polycarbonate resin windows,
weight reduction of about 5 kg can be realized.
Our company has long been engaged in the research and development of glass-replacement resins, reducing to the maximum
the distortion caused by thermal shrinkage during the manufacture of polycarbonate sheets and ensuring their visibility as front
windows.
27

TOPICS

Development of Environmentally Friendly Products
Polycarbonate plateof 99% recycled material

Recyclable
PET bottle label

Zipper for mono-material
packaging material

PCECO, recycled polycarbonate plateswith Eco Mark certification, weredeveloped and released in February 2023.

Development of Bonpet Renew
to promote PET bottle recycling in the
United States

Polyethylene Zipper
for mono-material packaging

PCECO is an Eco Mark certified product using
99% recycled materials. The 1% is an additive
for adjusting hue. This is the first polycarbonate
plate in the industry made of almost completely
recycled materials and has been successfullycommercialized without compromising impact
resistance and transparency, which are
performance characteristics of polycarbonates.

Recyclable next-generation shrinkable labels in
the United States, where labels are not routinely
removed and thrown away. Obtaining APR
certification, PET bottles can be recycled
without removing the label. Aiming to sell
10,000 tons of the shrinkable labels by 2025,
we will contribute to enhancing the PET bottle
recycling rate in the United States.

PCECO: Read as “PC-eco.” PC is a polycarbonate.
Eco Mark: An environmental label attached only
to products recognized as being usefulfor environmental conservation.

APR: The Association of Plastic Recyclers

As an environmentally friendly product, we aredeveloping zippers for mono-material
packaging that are easy to recycle.
They are excellent for low-temperature sealing
and contribute to improvement of productivityof difficult-to-process mono-material pouches.

Mono-material:
Packaging materials made of multiple
materials are difficult to recycle. Packaging
materials manufactured from a single material(mono-material) are suitable for recycling.

28

TOPICS

Efforts toward Carbon Neutrality
Carbon Neutral Strategy

The C.I. TAKIRON Group aims to become carbon neutral by FY2050 (zero emissions in real terms).
Scope 1, 2

Scope 335% reduction (compared to FY2018)

Reduction across the supply chain

Scope 1 (direct emissions) Scope 2 (indirect emissions)

Scope 3 (Other emissions)

FY2030IntermediatetargetActual results

Reduction rate
(Compared to
FY2018)◼ CO2 emissions of Scope 1 and Scope 2

35%(1000 t CO2)

100

109

89

◼ CO2 emissions of Scope 3(1000 t CO2)

500

93
81

71

70

261

244

223

2018

2019

2020

544*

499*

2021

2022

200

0

2018

2019

2020

2021

2022

(Fiscalyear)

0(Fiscalyear)*Expanded the scope of calculation to the entire Group and all 1-15 categories from FY2021

Acquisition of ISCC PLUS
certification
At its head office and some of its manufacturing
sites, C.I. TAKIRON has acquired ISCC PLUS
certification, one of the international
certification systems for sustainable products.
This certification ensures that materials such as
biomass raw materials and recycled raw
materials are properly managed in the supply
chain, including the production of products,
using a mass balance method.

ISCC: “International Sustainability & Carbon Certification” = “International Sustainable Carbon Certification”

Product

Product name

Used resin

Sites

Polycarbonate
plate

Flat Sheet, Corrugated SheetPC

Ibogawa Plant

Flooring material
sheet

Takistron, TAKISTEP

PVC

Yasutomi Plant

Decorative film,
Decorative sheet

Belbien, Bonlex

PVC

Shiga Plant

Shrinkable film

OPS Shrinkable Films

SBC

Okayama Plant

29

Information30

Information

Notice Concerning Issuance of Integrated Report 2023
Points⚫ Deep digging of inputs and outputs in the value creation process⚫ Strategies for each business segment andfoundations to support its growth⚫ Special Feature: Roundtable discussion on
women’s participation and advancement in the workplace, and roundtable discussion on governance

Please visit our company’s official website
for the Integrated Report 2023.

https://www.takiron-ci.co.jp/ir/library/integrated/

31

Appendix

Company Overview and Our Company Features

32

Appendix

1. Corporate and Stock Information (As of September 30, 2023)
Company Information
Trade name

C.I. TAKIRON Corporation

Established

October 10, 1919

Incorporated

December 20, 1935
Tokyo Head Office 108-6031
2-15-1 Konan, Minato-ku, Tokyo

Head Office

Major shareholders

ITOCHU Corporation

1.89%

C.I. TAKIRON Employee Stock Ownership Association

1.40%

Osaka Head Office 530-0001
3-1-3 Umeda, Kita-ku, Osaka-shi, Osaka

Kaneka Corporation

1.35%

DFA INTL SMALL CAP VALUE PORTFOLIO

1.01%

Watanabe Pipe Co., Ltd.

0.90%

Sekisui Jushi Corporation

0.76%

GOLDMAN SACHS INTERNATIONAL

0.52%

RE FUND 107-CLIENT AC

0.52%

https://www.takiron-ci.co.jp

Capital
Number of
employees(consolidated)

15,216 million yen
3,172 (as of March 31, 2023)(Note) The shareholding ratio is calculated by deducting treasury stock.
Securities companies
0.88%

Stock information

Stock listing

5.91%

Custody Bank of Japan, Ltd. (trust fund)WebsiteTotal number ofissued shares
Number ofshareholders

The Master Trust Bank of Japan, Ltd. (trust fund)(Shinagawa Intercity A Building)
TEL: +81 (3)-6711-3700(North Gate Building)
TEL: +81 (6)-6453-3700

Stock code

Shareholding
ratio (%)
55.49%Name of shareholder

Treasury stock
0.02%

Financial institutions
8.87%

4215
97,597,530

Foreign persons
9.78%

12,482
Tokyo Stock Exchange Prime Market

Shareholder
registeradministrator

Sumitomo Mitsui Trust Bank, Limited

Accounting auditor

Deloitte Touche Tohmatsu LLC

Individuals and others
15.01%

Shareholder
distribution

Other domestic corporations
65.44%

List of major participating organizations
Kansai Chemical Industry Association

Japan PVC Pipe and Fittings Association

Japan Vinyl Goods Manufacturer’s
Association

Kansai Economic Federation

Japan Agricultural Cooperatives Packaging and
Gardening Materials Association

JAPAN PLASTIC SHEET ASSOCIATION

CLOMA (Japan Clean Ocean Material Alliance)

Nippon Interior Association

Agricultural Film Recycling Promotion
Association

33

Appendix

2. Company History
Takiron Co., Ltd.
◼ Subsidiary in China was◼ Takigawa Celluloid Plant was founded.

established.

◼ Takigawa Celluloid Co., Ltd. wasestablished.

⚫ Shanghai Takiron Plastics

Co., Ltd.

◼ Renamed Takiron Chemical Co., Ltd.

◼ Ibogawa Plant◼ Renamed Takiron Co., Ltd.

newly establishedand started
operation.

1961
1919

1935

1959

1973
◼ Listed on the1996 2000◼ Listed on the First Section ofSecond Sectionof the Osaka
Securities
Exchange.

the Tokyo Stock Exchange.

100-year anniversary

2017

C.I. Kasei Co., Ltd.
Steady business expansion as paper, wood,and iron were replaced by plastics.
◼ Company name◼ Listed on the Second Sectionchanged to C.I.
of the Tokyo Stock Exchange.
Kasei Co., Ltd.
◼ Moved to the First Section— Merged with Kobeof the Tokyo StockResin Co., Ltd.
Exchange.

Founder: Sataro Takigawa

1963 1967◼ Established as Hama Kasei Co., Ltd.
⚫ Joint investment

by Furukawa Group companies
such as the Yokohama RubberCo., Ltd. and Zeon Corporation.
⚫ Transfer of synthetics businessrights from Yokohama Rubber.

C.I. TAKIRON
Corporation

1989

1971

2019

◼Management

integration⚫ Company name changed to

C.I. TAKIRON Corporation.

2009

1993 1995◼ Bonset America

Co. was established.
◼ Capital participation by

ITOCHU Corporation.
⚫ Share transfer from◼ Becoming a wholly

owned subsidiary of
ITOCHU Corporation.
◼ Delisting from the First
Section of the Tokyo
Stock Exchange.

Yokohama Rubber, etc.

34Appendix

3. Domestic Sites
Domestic production sites and laboratories: 26
HOKKAIDO SANPLUS
Ishikari Plant(C.I. TAKIRON, Nonconsolidated)
Major manufacturing
Production sites
products
Plate products
Aboshi Plant
Housing materials

Ibogawa Plant

Daylighting building
materials

Yasutomi Plant

Flooring materials

Tokyo Plant

Housing materials

Shiga Plant

Agricultural films
Decorative materials

Okayama Plant

Shrinkable films

Tochigi Plant

Civil engineering sheet

Hiratsuka Plant

Zipper tape

Sano Plant

C.I. TAKIRONCIVIL
Eniwa Plant

Shiga Plant

R&D Center
HOKKAIDO SANPLUS
Teine Plant

SANWA SIGNWORKS
Kyoto Plant

Yasutomi Plant

Tochigi Plant
C.I. TAKIRONCIVIL
Yokaichi Plant

Bundling materials
C.I. TAKIRONCIVIL
Ako Plant

BONPACK Tochigi Plant

Sano Plant

DAILITE Ryugasaki Plant
C.I. TAKIRONCIVIL
Tsuchiura Plant

Okayama Plant(CIK NANOTEK)SANWA SIGNWORKS
Saitama Plant

TAKIRON POLYMER
Head Office Plant

TAKIRON TECH
Sanda Plant

Tokyo Plant
Aboshi Plant
Ibogawa Plant(TAKIRON TECH)(TAKIRON-ROWLAND)

Hiratsuka Plant(SANWA SIGNWORKS)

35

Appendix

4. Overseas Sites
Overseas production sites: 5

BONSET AMERICA(North Carolina, USA)

BONLEX EUROPE(Veneto, Italy)

SHANGHAI CIK ELECTRONICS(Shanghai, China)

SHANGHAI SANPLUS PLASTIC(Shanghai, China)
BONSET LATIN AMERICA(Uruguay)36

Appendix

5. Group Overview
C.I. TAKIRON Group
Domestic

Construction Materials BusinessHousing Materials
Department⚫ SANWA SIGNWORKS⚫ MIYOSHI⚫ C.I. TAKIRON PLUS

Flooring & Decorative
Materials Department⚫ TAKIRON MATEX

Overseas⚫ BONLEX EUROPE

Environmental Materials Business
Agricultural Materials
Department⚫ HOKKAIDO SANPLUS⚫ C.I. TAKIRONAGRI⚫ C.I. MATEX

Infrastructure Materials
Department⚫ DAILITE⚫ C.I. TAKIRONCIVILHigh Functional Materials BusinessHigh Functional Materials
Department⚫ TAKIRON POLYMER⚫ CIK NANOTEK⚫ TAKIRON-ROWLAND⚫ SHANGHAI CIK ELECTRONICS⚫ BONPACK⚫ BONSET AMERICA⚫ BONSET LATIN AMERICA⚫ SHANGHAI SANPLUS PLASTIC⚫ TAKIRON TECH
⚫ C.I. TAKIRON LOGISTICS⚫ DAIPLA WINTES⚫ MAVERIQ Partners⚫ SHANGHAI C.I. KASEI TRADING

Specialty Films Business
Packaging Materials
Department
Other Group Companies

37Appendix

6. Construction Materials Business◼ The Housing Materials Business handles water treatment products such as gutters and drainage basins, and Lume Wall, highinsulation hollow panels made of polycarbonate resin, which are widely used for natural indoor lighting from houses to nonresidential properties.

◼ The Flooring & Decorative Materials Business handles flooring materials with excellent slip-resistant properties that protect thesafety of poolsides, apartment hallways, stairs, etc., as well as decorative films that enhance the design of interiors and buildings.

Housing Materials Business
Top Market Share

Lume Wall: high-insulation hollow
panel made of polycarbonate resin

Plate made of polycarbonate resin

Housing materials(rain gutters, etc.)

Flooring & Decorative Materials Business

Piping and plumbing
equipment

Strengths of major businesses⚫ Polycarbonate molding and processing technology

Top Market Share⚫ Japan’s best production capacity for polycarbonate

building materials⚫ Having top share of polycarbonate madeSlip-resistant vinyl flooring

Interior and exterior
decorative materials

Decorative materials
made of resin

daylighting building materials and slip-resistantvinyl chloride floor materials⚫ Comprehensive development capability to add
functionality to decorative materials⚫ Global expansion through overseas production
sites (BLX)
38

Appendix

7. Environmental Materials Business◼ The Environmental Materials Division consists of the Agricultural Materials Business, which proposes the optimal environment for
agricultural cultivation, and the Infrastructure Materials Business, which supports the development of a safe and secure social
environment.
◼ The Agricultural Materials Business contributes to agricultural development with a focus on high-performance agricultural films.
◼ The Infrastructure Materials Business supports social infrastructure through the manufacture and construction of waterproof
geomembranes, high-density polyethylene pipes, and other related materials.

Agricultural Materials Business

Strengths of major businesses⚫ Industry share

Top Market Share⚫ Production technology capability⚫ Sales system and customer support capability⚫ Response capabilities from manufacturing andsales to design, processing, and construction
Agricultural films

Binding
materials

Irrigation tubes

Infrastructure Materials Business
Top Market Share

Top Market Share

Waterproof
geomembranes

Waterstops

Top Market Share

Hydrophilic watersealing materials

High-pressure-resistantLarge polyethylene resin tanks
polyethylene pipe
(Handling: Group companies)(Handling: Group companies)
39

Appendix

8. High Functional Materials Business◼ Plate Business handling PVC, PC, PET, and other general-purpose and functional resin plates.
◼ Motor Business dealing with precision micro motors.
◼ Composed of group companies handling ultrafine particles, engineering plastics, and acetate plates.
◼ Offering products in a wide range of fields, from semiconductor manufacturing equipment and other products that support theindustrial base to product raw materials that enrich people’s lives.

PlatesTop Market Share

Top Market Share

Industrial plastic plates

Acetate plate(Handling: Group
companies)
Top Market Share

MotorsLaser shield plates

Static dissipative
plastic plates

Ultrafine particle
materials

Filtration plate /Large cutting(Handling: Group companies)(Handling: Group companies)

Micro motors

Strengths of major businesses⚫ Technology accumulated over many

years in the industry⚫ Rich lineup of high-performance

products to meet customer needs⚫ Strong sales network⚫ High quality and brand strength

Uses: eyeglass frames40Appendix

9. Specialty Films Business◼ BONSET is a brand of shrinkable film (heat-shrinkable film) born in Japan. Utilizing the characteristics of various materials, it isused for various applications and contents such as labels, cap seals, and molded products.

◼ SANZIP is a plastic zipper tape brand used in various fields, including food product field.

BONSET (shrinkable film)◼ Respond to worldwide demand with a global tripartite structure(Japan, North America, and South America)
C.I. TAKIRON Okayama Plant
PS film
Bonset America
PET film/PVC film

Shrinkable films
Uses: beverage labels, etc.

Environmentally friendly products
Bonpet Renew

SANZIP (Zipper tape)

Bonset Latin America
PET film/PVC film

Strengths of major businesses⚫ Manufacturing and processing technology and knowledge

accumulated over many years⚫ Manufacture of a wide variety of products for specific applications

using our unique blending technology⚫ With production sites in Japan (Hiratsuka and Okayama) and overseas(China, the United States, and Uruguay), we are building a global
optimal production and sales network (also supporting BCP).
Zipper tape
Environmentally friendly products
Uses: pouches for food packaging, etc.
Mono-material zipper⚫ Meticulous response to customer needs through in-house productionof dies (SANZIP)⚫ Expansion of development of environmentally friendly products andtheir lineups such as biodegradation, mono-materials, and biomass

41

Appendix

10.Net Sales and Operating Income by Segment(millions of yen)
Six Months Ended September 30, 2022

Construction
Materials
Business

1Q

2Q

2Q total

1Q

2Q

Results

Results

Results

Results

Results

Results

Net sales

11,223

11,03522,259

11,103

10,743

21,846

Housing Materials

6,527

6,797

13,324

6,555

6,474

13,030Flooring & Decorative
Materials

4,696

4,238

8,934

4,548

4,268

8,816

Operating income(Profit ratio)582(5.2%)

572(5.2%)

1,154(5.2%)

640(5.8%)

615(5.7%)

1,255(5.7%)

435(6.4%)
136(3.2%)

753(5.7%)
400(4.5%)

332(5.1%)

502(7.8%)

835(6.4%)

Flooring & Decorative
Materials

318(4.9%)
264(5.6%)

307(6.8%)

112(2.6%)

420(4.8%)Net sales

12,506

13,267

25,774

13,68012,89026,570Agricultural Materials

8,427

8,429

16,857

9,009

7,717

16,727-129(-0.8%)

Infrastructure Materials

4,079

4,838

8,917

4,670

5,172

9,843

926
(+10.4%)

Operating income(Profit ratio)

18(0.1%)

-27
(---)

-8
(---)

260
(1.9%)

244(1.9%)

504(1.9%)

513
(---)

215
(2.6%)
-196
(---)

74
(0.9%)
-101
(---)

289
(1.7%)
-298
(---)

191
(2.1%)

91(1.2%)

283(1.7%)-6(-2.1%)

68(1.5%)

152(3.0%)

221(2.2%)

519(---)

Net sales

5,738

5,927

11,665

5,274

5,183

10,458-1,207(-10.4%)

Operating income(Profit ratio)874(15.2%)

549(9.3%)

1,424(12.2%)

528(10.0%)

465(9.0%)

993(9.5%)-430(-30.2%)

Net sales

5,703

6,754

12,457

4,255

4,485

8,740

-3,716(-29.8%)Operating income(Profit ratio)

-8
(---)

491
(7.3%)

483(3.9%)

-298
(---)

-150
(---)

-449
(---)

-932
(---)

Net sales

35,312

37,20272,51534,43333,50967,943Operating income(Profit ratio)

1,445(4.1%)

1,644(4.4%)

3,090(4.3%)

1,066(3.1%)

1,327(4.0%)

2,393(3.5%)

Housing Materials

Environmental
Materials
Business

Agricultural Materials
Infrastructure Materials

High Functional
Materials
Business

Specialty
Films
Division

Total

Six Months Ended September 30, 2023

2Q totalYear on year-412(-1.9%)-294(-2.2%)-117(-1.3%)
101(+8.8%)
81(+10.8%)19(+4.9%)
796(+3.1%)-4,571(-6.3%)-696(-22.5%)42

Contact Information for IR

C.I. TAKIRON Corporation
Corporate Communication Dept.
Phone: +81 (3)-6711-3718

E-mail: ir@takiron-ci.co.jp■ Cautionary notes regarding forward-looking statements
This material is for the purpose of providing information to investors only, and is not intended to solicit sales.

Forward-looking statements in this document are based on goals and projections and are not guarantees of future performance. Please also beaware that our company’s future results may differ from our company’s current expectations.
In addition, although our company prepares forward-looking statements of the industry, etc. based on reliable data, our company does notguarantee the accuracy or completeness of such statements.
These materials are provided on the assumption that investors will use them at their own discretion and responsibility no matter what purpose
they are used for, and our company assumes no responsibility whatsoever.
43