FY2021 1st HalfBusiness Results（April 1, 2021- September 30, 2021）
November 12, 2021

１．Business Results for the 1st Half FY 2021

２．Segment Results for the 1st Half FY 2021
３．Projection for the FY2021
４．Future Outlook
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Financial Results For the H1 FY2021• Demand for 5G-compatible smartphones and PCs as well as investment in DX, communications, anddata centers are accelerating strong demand for advanced semiconductors and capital investment insemiconductor plants factories.
• Although there was logistics disruption in addition to remarkable price increase of fuel and raw material,
thanks to sales increase for high end semiconductor application, sales and all profit categories
increased more than the last year result and the projection.
• Profits were 1.8x YOY and 20% excess against the projection.
(Million yen)

H1 FY2020
Results

H1 FY2021
Projections

H1 FY2021
Results

YOY
Change%Comparison withprojections
Change%※12,835

15,00015,710※+2,874※+22.4%+710

104.7%

Operating profit

1,306

1,980

2,369

+1,062+81.3%+389

119.7%

Ordinary profit

1,277

1,900

2,360

+1,082+84.7%+460

124.2%

865

1,300

1,625

+759

+87.8%+325

125.0%¥109.04¥163.79¥204.79¥10.00¥15.00¥15.00¥105.8/$¥105.0/$¥111.9/$Net sales

Net profit
Earnings per share
Interim Dividends per ShareFX Rate (USD)※"Accounting Standard for Revenue Recognition" (ASBJ
Statement No.29, March 31, 2020) has been applied from the
beginning of ending term of March, 2022 period. As a result,accounting is different from a total period in the previous first half.
The comparison for YOY is reference figure as new standard vs
old standard.

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The Summary of H1 FY2021 Financial Results■Net sales
15,710 million yen（YOY※+2,874 million yen, ※+22%）✓ Photosensitive materials Segment: Both semiconductor and display application continue keep good sales.
✓ Chemicals Segment: Electronic materials sales increase, and the fragrance related product keep stable sales.
Selling price are under increasing in accordance with raw material price increase.
Logistic business (Chemical tank terminal) recovered in goods turn around.

■Operating profit
2,369 million yen（YOY+1,062 million yen, +81%）✓ Although the start of operation of the new photosensitive material manufacturing building, various costs
increasing such as labor costs, depreciation costs, raw materials, fuel, logistic costs for production capacity
enhancement, it was absorbed by the increase in production volume, then profits increased.
✓ Overall high-value-added products sales expanded, and the plant utilization rate increased from the initial plan.

■Ordinary profit
2,360 million yen（YOY+1,082 million yen, +85%）✓ Foreign exchange gains due to yen depreciation (Foreign exchange loss occurred in the previous year)■Net profit
1,625 million yen（YOY+759 million yen, +88%）※The comparison for YOY is reference figure as new standard vs old standard.

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Change analysis: Operating profit• Thanks to expanding sales and reflecting prices in soaring raw material prices, it resulted in profits increase by
absorbing increased costs such as raw material, fuel, distribution, investment for growth and etc.
(Million yen)
Increase in sales
volume, Selling
price is underincreasing due tohigh raw material
prices.

Increase in unit
price of stock+1,712

1,306
H1 FY2020 Sales growth
Results+203
Inventory
revaluation

+51

+68

Operation
improvement

FX

Advanced expenditure increased
for production capacity up(Labor cost, Depreciation)

△470

△501
Impact from raw
materials, fuelandtransportation
cost increasing

2,369
Expenses
increase+1,062H1 FY2021
Results5

Quarterly Sales & Operating profit Trend• Average sales are steadily growing from 6.7 billion yen in the previous fiscal year to 7.8 billion yen (YOY+ 16%), thesame level in the second half of the year is expected.
• Sales in the 2QT were favorable at 7,401 million yen (YOY +1,155 million yen, + 18% )• Absorbing the impacts of soaring prices of raw materials and fuels, operating profit increased to 876 million yen (YOY+330
million yen, + 61%).
• Operating profit in the 2nd half may have risk of soaring raw materials, fuel, logistics costs, etc.

※"Accounting Standard for Revenue
Recognition" (ASBJ Statement No.29,
March 31, 2020) has been applied fromthe beginning of ending term of March,2022 period. As a result, accounting isdifferent from a total period in theprevious first half. The comparison for
YOY is reference figure as new standard
vs old standard.

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H1 FY2021 Income Statement• Sales were 15,710 million yen (*YOY+2,874 million yen, *+22%).
• Gross profit margin improved by 3.6pt (22.7% → 26.3%) thanks to increased factory operation and sales inadvanced products.
• Selling, general and administrative expenses increased by only +9%, then operating income increased to 2,369
million yen (YOY+1,062 million yen, + 81%).
(Million yen)

H1 FY2020

H1 FY2021

Change%※12,835

15,710※+2,874※+22.4%

9,916

11,577+1,661+16.8%

2,919

4,133

+1,213+41.6%

1,612

1,764

+151

+9.4%

1,306

2,369

+1,062+81.3%

Non-operating income

69

59

△9

△14.2%

Non-operating expenses

98

68

△30

△30.5%

Ordinary profit

1,277

2,360

+1,082+84.7%

Extraordinary income & losses

△16

△12

+3

-

Profit before income taxes

1,261

2,347

+1,085+86.1%

Income taxes

396

721

+325

+82.2%Net profit

865

1,625

+759

+87.8%Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit

Gross profit: +1,213
Gross profit margin
improved by 3.6pt.

※"Accounting Standard for Revenue
Recognition" (ASBJ Statement No.29,
March 31, 2020) has been applied fromthe beginning of ending term of March,2022 period.
As a result, accounting is different froma total period in the previous first half.
The comparison for YOY is reference
figure as new standard vs old standard.

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H1 FY2021 Statement of Cash flows• Operating CF: 4,479 million yen Expanded operating CF thanks to the effect of increased profits and improved
working capital in sales expansion.
• Investment CF: △ 3,195 million yen Although capital expansion investment is continuing, it decreased compared tolast year's investment for the new manufacturing building.
• Financial CF: △ 1,287 million yen Borrowing was reduced by improving CF.
(Million yen)

H1 FY2020

H1 FY2021

ChangeCash flows from operating activities

2,165

4,479

+2,314

Profit before income taxes

1,261

2,347

+1,085

1.087

1,273

+186

581

407

△173

△507

△654

△146

356

933

+576

△613

172

+785

△4,729△3,195+1,534△2,564

1,284+3,8492,711△1,287△3,999Effect of exchange rate change on cash and cash equivalents

△16

6

+23

Net increase (decrease) in cash and cash equivalents

130

3

△127

3,301

3,385

+84

Depreciation
Decrease (increase) in trade receivables（+: decrease）
Decrease (increase) in inventories（+: decrease）
Increase (decrease) in trade payables（+: increase）
Other
Cash flows from investing activities
FCF
Cash flows from financing activities

Cash and cash equivalents

Improvement of WC

Increase in raw material
and fuel costs, Increase
in inventory levels of
raw materials due tologistics disruptions.

8H1 FY2021 Balance sheet• Tangible fixed assets decreased by 711 million yen due to going depreciation exceeding the acquisition of new equipment.
• Interest-bearing debt decreased by ¥1,125 million thanks to improved CF.
• Decrease in equipment accounts payable for the new photosensitive material manufacturing building (△ 2,231 million yen).
• Shareholders' equity increased by ¥1,545 million thanks to an increase in net income.
• The equity ratio was 33.6% (YOY+ 4.2pt), exceeding 30%.
Mar. 2021
ended

Sep. 2021
ended

16,998

16,845△152

Cash and deposits

3,794

3,797

+3

Trade accounts receivable

5,386

4,979

△407

Interest-bearing debt

Inventories

6,983

7,638

+654

833

430

△402

26,52025,807△712

24,90824,197△711(Million yen)
Current assets

Other
Fixed assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets

Mar. 2021
ended

Sep. 2021
ended

Change30,72728,303△2,423

3,470

4,403

+933

19,987

18,862△1,125

Other

7,269

5,037

△2,231

Net assets

12,79014,348+1,55812,75014,295+1,545

Valuation andtranslation adjustments

40

53

+13

Liabilities and net assets

43,51842,652△865

Change(Million yen)

523

516

△7

1,088

1,094

5

43,51842,652△865

Liabilities
trade payables

Shareholders’ equity

9１．Business Results for the 1st Half FY 2021

２．Segment Results for the 1st Half FY 2021
３．Projection for the FY2021
４．Future Outlook
10

Business Portfolio• Because of more than 80% of our sales are related to semiconductors, displays, and otherelectronic materials, and further demand is expected to increase in the future.
Logistics
Aroma
Materials

Chemicals
Segment
39%
High-purity organic
solvent

H1 FY2021
Net sales
15,710 million yen

Photosensitive
Materials Segment
61%

IC/FPD/
Other electronic application(Photosensitive materials,
Polymer, High-purity
organic solvent)11

Photosensitive Materials Segment
Net sales: 9,652 million yen+32%（YOY※+2,315 million yen, ※+32％）• Semiconductor application continued to keep
strong sales from previous 2nd half.
• Display allocation application continued to keep
strong sales from previous 4QT.

Operating profit: 1,677 million yen（YOY+795 million yen, +90％）• Increase in high value-added products in theadvanced area.
• Increased production in all areas of semiconductor
and display applications absorbed the increase inlabor costs and depreciation costs associated withthe expansion of equipment capacity, resulting in
an increase in profits.
※New accounting standards about the profit recognition has been applied, sales
figure decreased by 207million yen from calculation in old accounting standard.
The comparison for YOY is reference figure as new standard vs old standard.

12Chemicals Segment
Net sales: 6,058 million yen+10%（YOY※+558 million yen, ※+10%）• Electronic materials business continued to keep goodsales.
• Aroma chemicals business kept steady growth.
• The logistic (chemical tank terminal) business hasrecovered in handling quantity thanks to strong domestic
chemical market demand as same level as pre COVID-19.

Operating profit: 691 million yen（YOY+266 million yen, +63%）• Increase in high value-added products in the advanced
area.
• Profit increased thanks to increased production in
growing demand.
• Selling price is under increasing due to high raw material
prices.
※New accounting standards about the profit recognition has been applied, sales
figure decreased by 321million yen from calculation in old accounting standard. The
comparison for YOY is reference figure as new standard vs old standard.

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１．Business Results for the 1st Half FY 2021

２．Segment Results for the 1st Half FY 2021
３．Projection for the FY2021
４．Future Outlook14

FY 2021 Ending Projection & Progress• The progress rate of the full-year earnings forecast exceeds 50% for sales and 65% for each profit.
• Demand is expected to remain strong in the future, but in addition to surging crude oil and raw material prices, we
assume that construction cost, regular repairs cost, personnel cost and etc. will increase in the second half. As theoutlook is uncertain, there are no changes to our earnings forecasts at this time.
• Dividends will remain unchanged from 15 yen for the interim period and 15 yen for the end of the period.
• "Standard market" will be selected for the transition to the new market category of the Tokyo Stock Exchange, Inc.

(Million yen)

FY2021
Projection

H1 FY2021
Results

Progress Ratio

30,00015,71052.4%

Operating profit

3,550

2,369

66.7%

Ordinary profit

3,400

2,360

69.4%

Net profit

2,400

1,625

67.7%

Earnings per share¥302.38¥204.79

FX Rate（USD）¥105/$¥111.9/$Net sales15

H1 FY2021 vs H2 FY2021 Operating Profit Comparison• In the second half, although there will be an effect of increasing sales, in addition to rising prices of raw materials,
fuel, distribution costs, etc., costs associated with construction for regular maintenance and capacity expansion as
well as number of personnel are expected to increase, then profits are expected to decrease.

△740（Million yen）

2,369

Operation
improvement
Sales growth

H1 FY2021
Results

Advanced expenditure increased for production
capacity up(Personnel expenses, Depreciation, Maintenance& Repairs expenses）△780
Impact fromraw materials,
fuel andtransportation
cost increasing

1,180
Expenses
increase

H2 FY2021
Projection

16Capacity Up Investment• Production at the new photosensitive material manufacturing building has started from this term.
• Both photosensitive materials and chemical segments will continue production capacity expansion inexisting facilities

Advanced
Materials
New Plant(New Productionbuilding)

FY2019FY2020

FY2021

FY2022Current

Operation
Start

Operation Start

Construction
Qualification

capacity up at
existing facilities

Construction

Chemicals
Segment

Construction

Continue capacity
expansion

Construction

Ichikawa
Plant
Awaji Plant

Construction

Continue capacity
expansion

Continue investment for capacity
up at existing facilities

Photosensitive
Materials
Segment

17

Capital Investment, Depreciation & R&D Trend• Since 2017, executing capacity up investment in electronic materials market expansion.
• After completed planned strategic big investment, capital investment in FY2021 is about 3.5billion yen as plan.
Capacity up investment will continue in market demand increase.
• R&D focus on production process technology enhancement （Analytical capability, Productivity improvement, pilot
production capability）with 150mio yen budget.

CAPEX
Depreciation
R&D

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１．Business Results for the 1st Half FY 2021

２．Segment Results for the 1st Half FY 2021
３．Projection for the FY2021
４．Future Outlook
19

Semiconductor Market & Technology Development & Projection• The semiconductor market is expected to double in the 10 years from 2020 to 2030.
• Semiconductor miniaturization technology development continue and 5nm process has been put into volume production now.
• With miniaturization progress, expanding higher demand for ultra high purity solvent and photosensitive materials.
• Making further evolution on our the solvent / photosensitive material manufacturing technology that we have cultivated for 70 years,
to support the future evolution of the industry.
CY2021 Accelerating semiconductor market growth （WSTS）
8.4%（Dec.）→19.7%（June）→25.1%（Aug.）
Global Semiconductor Market
Shipment amount(trillion yen)

Logic

MemoryOther

Source: The Ministry of Economy, Trade and Industry (METI)"Strategy for Semiconductors and the Digital Industry"

Source: IRDS2020 and Toyo Gosei

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Photoresist Market Development• Demand for ArF and EUV resists is expected to grow at least 2.1 times from 2021 to 2026.
• The actual annual growth rate at this moment is ongoing at about 2 times of last market projection for
the annual average growth rate.

886,000

EUV photoresist

45.1%
ArF photoresist

413,500

12.2%
KrF photoresist

5.5%
The numbers are CAGR.
（2019→2026）

Source : Fuji Keizai Co., Ltd. and Toyo Gosei

21

FPD Market Trend•FPD（Flat Panel Display）market continue steadily growth at CAGR4.5%•Because of high resolution display share expansion by large display TV, smart phone with OLED type,
4K&8K TV and etc. contribute demand increase for ultra high purity solvent and photosensitive materials.
(Million m2)

Demand outlook for FPDs (surface area)→Projection

OLED
LCD
LCD
2015→2020：35.9% growth
CAGR：6.3%

OLED
2015→2020：2.8 times
CAGR：30.3%

4.5%

LCD
2020→2024：14.4% growth
CAGR：3.4%

OLED
2020→2024：1.4 times
CAGR：25.0%

Source：DSCC’s 2020 Display Market Outlook Virtual Conference & Toyo Gosei

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TGC300 Progress (Mid-term business plan)• The medium-term management plan "TGC300: 30 billion yen for sales, 3 billion yen or more for ordinary profit, 10% ormore for ordinary profit rate as target for the fiscal year ending March 2023” are expected to be achieved in the fiscal year
ending March 2022 as one year ahead of schedule. ➡ Demand expansion is accelerating faster than original assumption.
• Acquired land adjacent to the Chiba plant in anticipation of a rapid future demand increase. (Press release on October 1,
2021)• Based on the current situation, the next medium-term management plan is under preparation.

Map of Chiba Plant

New
photosensitive
Materials Plant(Million yen)

Land Acquisition(Fiscal Year)(Projection)

Mid-term business plan

Our business land23

Management Policy
1. Make what is needed in the times
2. Making something that other companies cannot
make (Global niche top)
3. Research & Development and technology
at the core in the business4. Don't give up, do it simply honestly and sincerely

Founder Masateru Kimura

In order to meet the growing demand for high-performance materials that support
society evolution, we will continue to increase production capacity and work hard as
one team for improving corporate value. We all appreciate your continued
understanding and support to us.
24Individual Development, to the global Chemical(NB)
The forecasts made in this document contain a variety of uncertain factors since it has been
prepared based on judgments from information that is currently available.
Therefore actual business results may differ from those projected, depending on factors andrisk such as the economic status of the market surrounding the company, and do not perform
any strict promise and guarantee.

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