The Fiscal Year Ended March 31, 2023

Financial Results Briefing
May 23, 2023

Stock code: 4215 TSE Prime Market
1

Contents
1

Consolidated Financial Results for the Fiscal Year
Ended March 31, 2023

P.

2

Review of the Medium-term Management Plan

P. 15

3

Consolidated Financial Results Forecast for the Fiscal YearEnding March 31, 2024

P. 21

3

TOPICS

Expansion of Smoke-proof Hanging Partition WallBusiness

P. 30

TOPICS

Expansion of Commercial Signage Business for Major
Convenience Store Chains

P. 31

TOPICS

Increase Production Capacity(Domestic and Overseas Group Companies)

P. 32

TOPICS

Promotion of Digital Transformation for
Factories

P. 33

TOPICS

Promotion of Sustainable Management

P. 34

Appendix Qualitative Review of Medium-term Management Plan

P. 35

Appendix Company Overview and Company Features

P. 40
2

The Fiscal Year Ended March 31, 2023

1 Consolidated Financial Results31-1. Consolidated Financial Highlights
Results for the Fiscal Year Ended March 31, 2023
⚫ Net sales: 145,725 million yen (up 2.7% year on year)⚫ Operating profit: 5,791 million yen (down 33.1% year on year)⚫ Interim dividend: 11 yen, year-end dividend: 4 yen, total dividend: 15 yen (initial estimate; interim:
11 yen, year-end: 11 yen)(millions of yen)

Results for
FY2021

Revised forecast
for FY2022 as ofFebruary

Results for
FY2022

Year onyear

141,936

145,000

145,725+3,789Operating profit

8,651

5,900

5,791

-2,859Ordinary profit

9,084

6,100

5,923

-3,161

Profit attributable to owners of parent

6,660

2,500

2,460

-4,200Net sales⚫ Net sales increased by 2.7% year on year, as product price increase associated with higher prices of raw
materials and a weaker-yen effect exceeded the negative impact of a decline in sales quantity.
⚫ Operating profit decreased by 33.1% year on year due to higher costs resulting from higher raw material prices
and lower sales quantity, in particular, the slowdown in the European market for decorative construction
materials, the long-term suspension of large-scale construction properties in the infrastructure materials
business, the adjustment of distribution inventories in the North American market for the BONSET business, anddifficulty in procuring raw materials.
⚫ Profit attributable to owners of the parent decreased by 63.1% year on year, due to a decline at the operating
profit stage and an impairment loss of -1,345 million yen in total.
41-2. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Consolidated Statements of Income(millions of yen)

Results
Fiscal year ended March 31, 2022

AmountPercentage

Fiscal year ended March 31, 2023

AmountPercentage

Year on year
Increase/
Rate ofdecreasechangeNet sales

141,936

100.0%

145,725100.0%

3,789

+2.7%

Gross profit

39,82228.1%

37,31025.6%-2,512-6.3%

Selling, general, andadministrative expenses

31,17122.0%

31,518

21.6%

346

+1.1%

Operating profit

8,651

6.1%

5,791

4.0%

-2,859-33.1%

Ordinary profit

9,084

6.4%

5,923

4.1%

-3,161-34.8%

Profit attributable to owners ofparent

6,660

4.7%

2,460

1.7%

-4,200-63.1%

Overseas net sales

25,192

17.7%

25,821

17.7%

628

+2.5%

Earnings per share

68.47 yen―25.30 yen―-43.17 yen-63.0%

ROE

7.6%

―

2.7%

―

―

―

ROA

4.6%

―

1.7%

―

―

―
5

1-3. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Analysis of changes in consolidated net profit
Tax effect of transfer of operating
loss carryforwards associated withliquidation of subsidiaries
Gain on sale of securities, etc.

(millions of yen)

7,000

6,660

Basic earning
power

6,000

Increasein salesamount

5,786
-875

5,000

3,350

One-time gainin prior year

*All figures are after tax.
Gain on sale ofsecurities, gain
Cost
reduction, on liquidation ofsubsidiaries
expensereduction

145

189

4,000

-2,000Group company
profit or loss

3,000

Other impacts

376
2,000

-3,850
Increase in
prices of raw
materials andutilities

1,000

2,460

-1,530
Impairment loss of
fixed assets, etc.

0
Results for
FY2021Results for
FY20226

1-4. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Net Sales by Segment
Specialty Films Business

22,442 million yen

Construction
Materials Business

Other
0.7%

44,795 million yen

SANZIP Department
2.4%
BONSET Department
13.0%High Functional
Materials Department
15.6%

Housing Materials
Department
18.2%

Total net sales

145,725 million yen

Flooring & Decorative
Materials Department
12.5%

High Functional
Materials Business

22,729 million yen

Infrastructure Materials
Department
13.1%

Agricultural Materials
Department
24.5%

Environmental
Materials Business

54,816 million yen
71-5. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Overview by Segment(millions of yen)

Net Sales by Segment

60,00053,874 54,816

FY2021
FY2022

44,418 44,795
40,00021,625 22,729

21,352 22,442

High Functional
Materials

Specialty Films

20,0000Construction
Materials(millions of yen)

Environmental Materials

Operating Profit by Segment

4,000

FY2021
FY2022

3,144
3,000

2,716

2,603

2,484

2,000

1,440

1,405
1,000

304

126

0

Construction
Materials

Environmental Materials

High Functional
Materials

Specialty Films8

1-6. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Overview by Segment
Construction Materials Business Segment(Housing Materials Business,
Flooring and Decorative Materials Business)◼ Net sales in the Housing Materials Business increased in total due to an increase in net sales owing to product price increases
associated with higher raw material prices and recovery of demand on signage despite continued sluggish sales of nonresidential properties and livestock materials affected by a decrease in capital investment due to higher prices of construction
materials and livestock feed.
➤ Operating profit increased due to the control of fixed and logistics costs and the shifting of costs by product price increases.
◼ In the flooring and decorative materials business, sales of flooring materials in the domestic condominium renovation business werestrong, but sales of decorative construction materials in the European market, which is the mainstay of the overseas market, slowed
further, and overall net sales of the business were almost unchanged from the previous year.

➤ Operating profit decreased because of the failure to cover the increase in costs despite efforts to reduce fixed costs and pass the coston to customers through product price increases.
(millions of yen)

Construction
Materials BusinessNet sales

OperatingprofitFiscal year ended
March 31, 2022

Fiscal year ended March 31, 2023

Results

TargetResults

Year on year

Construction Materials
Business total

44,41847,70044,795+0.8%

Housing Materials
Business

25,92728,60026,506+2.2%

Flooring and Decorative
Materials Business

18,491

19,10018,288-1.1%

Construction Materials
Business total

2,716(6.1%)

2,890(6.1%)

2,484(5.5%)-8.5%

Housing Materials
Business

1,099(4.2%)

1,650(5.8%)

1,628(6.1%)+48.2%

Flooring and Decorative
Materials Business

1,617(8.7%)

1,240(6.5%)

856(4.7%)-47.1%
9

1-7. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Overview by Segment
Environmental Materials Business Segment(Agricultural Materials Business,
Infrastructure Materials Business)◼ Sales quantity in the Agricultural Materials Business remained weak due to a decline in producers’ willingness to invest owing tosoaring prices of agricultural materials, including fertilizers, but net sales increased due to price revisions and revised sales strategies.

➤ Operating profit declined due to the continued rise in raw material prices and the impact of lower sales quantity.
◼ In the infrastructure materials business, net sales declined due to the continued impact of a decrease in the number of civil engineeringorders and construction interruptions caused by COVID-19 on the industry as a whole, as well as the continued impact of long-term
interruptions in large-scale orders and changes in construction plans themselves.
➤ Operating profit fell into the red, largely due to a decline in sales quantity.

TOPIC

The Company has decided to transfer all of its shares in PT. Takiron Indonesia, a consolidated subsidiary engaged in the
manufacture, processing, and sale of agricultural and horticultural colored steel pipes, to PT. CAKRA BHAKTI PARA PUTRA(April 20, 2023: agreed to transfer shares, December 15, 2023: scheduled to transfer shares).
(millions of yen)

Environmental
Materials BusinessNet sales

OperatingprofitFiscal year ended
March 31, 2022

Fiscal year ended March 31, 2023

Results

TargetResults

Year on year

Environmental
Materials Business
total

53,87456,80054,816+1.7%

Agricultural Materials
Business

33,87435,60035,658+5.3%

Infrastructure Materials
Business

20,00021,20019,158-4.2%

Environmental
Materials Business
total

1,405
(2.6%)

1,650(2.9%)

304(0.6%)-78.3%

Agricultural Materials
Business753(2.2%)

770(2.2%)

597(1.7%)-20.7%

Infrastructure Materials
Business651(3.3%)

880(4.2%)-292(-1.5%)―

10

1-8. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Overview by Segment
High Functional Materials Business Segment◼ In the high functional materials business, sales of industrial plates and engineering plastic materials for manufacturing equipment
slowed sharply in the second half, partly due to export restrictions to China, after a sharp turnaround from solid demand forsemiconductors in the first half.
◼ Sales of nanomaterials for electronic circuit boards declined due to deteriorating memory market conditions, especially DRAM.
◼ Sales of acetate plates for eyeglass frames continued to grow due to strong demand from overseas brands.
◼ Micro motors, which were affected by the suspension of operations due to the Shanghai lockdown, remained at a high level after the
resumption of operations, mainly for consumer equipment.
➤ Operating profit declined due to a decline in sales quantity, despite the Company’s efforts to revise product prices in line with rising raw
material prices.

(millions of yen)High Functional
Materials Business

Fiscal year ended
March 31, 2022

Fiscal year ended March 31, 2023

Results

TargetResults

Year on year

Net sales

High Functional
Materials Business
total

21,625

22,10022,729+5.1%

OperatingprofitHigh Functional
Materials Business
total

3,144
(14.5%)

2,330(10.5%)

2,603(11.5%)-17.2%

11

1-9. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Overview by Segment
Specialty Films Business Segment(BONSET Business, SANZIP Business)◼ In the BONSET Business, net sales of shrinkable films increased in the domestic and European markets due to product price increases
associated with rising raw material prices, while net sales in the North American market increased due to product price increases and aweak yen, despite the Company struggling in terms of quantity due to impact from raw material shortages in the first half and distribution
inventory adjustments in the second half.
➤Operating profit fell sharply due to lower sales quantity in the North American market.
◼ In the SANZIP Business, while domestic sales of zipper tapes were strong, overseas sales declined due to the Shanghai lockdown, which
forced the Company to suspend operations for two months.
➤ Operating profit fell sharply due to a delay in product price increases in Japan and the impact of the Shanghai lockdown.
(millions of yen)

Specialty Films
Business

Net sales

OperatingprofitFiscal year ended
March 31, 2022

Fiscal year ended March 31, 2023

Results

TargetResults

Year on year

Specialty Films Business
total

21,352

23,30022,442+5.1%

BONSET Business

17,526

19,50018,987+8.3%

SANZIP Business

3,826

3,800

3,455

-9.7%

Specialty Films Business
total

1,440
(6.7%)

1,200(5.2%)

126(0.6%)-91.2%

BONSET Business

1,079(6.2%)

980(5.0%)

20(0.1%)-98.1%SANZIP Business

361(9.4%)

220(5.8%)

105(3.1%)-70.7%
12

1-10. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Consolidated Balance Sheets(millions of yen)

As of March
31, 2022

As of March
31, 2023

94,40398,095+3,691

Cash and deposits

7,790

5,603

-2,186

Accounts receivable trade47,11946,933-185

Inventories

23,884

28,126+4,241

Other

15,61017,432+1,821

Non-current assets

52,65751,178-1,478Property, plant, andequipment

41,39440,033-1,360Intangible assets

2,485

2,755

+270

Investments and otherassets

8,777

8,389

-387

Total assets

147,061

149,274+2,213

Total liabilities

55,00556,615+1,610(Interest-bearing
liabilities)

3,914

5,939

+2,025

Total net assets

92,05592,658+602

Assets(millions of yen)

94,40352,657

Current
assets

98,095+3,691

Non-current
assets51,178-1,478
As of March 31, 2022

As of March 31, 2023

Increase in inventories(+4,241)
Main factors:
Rising raw material prices,weak yen
Decrease in property, plant,
and equipment(-1,360)
Main factors:
Depreciation andimpairment exceeded
acquisition

Liabilities and Net Assets(millions of yen)

55,00592,055

Liabilities

56,615+1,610Net assets+602

92,658

Increase in shortterm borrowings(+2,025)

Increase in foreign
currency translation
adjustments(+755)

Current assets(%)

Capital-to-asset ratio
As of March 31, 2022

As of March 31, 2023

Increase/decrease

61.4

61.1

-0.3
13

1-11. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Consolidated Statements of Cash Flows⚫ Free cash flow decreased by 5,482 million yen to -1,057 million yen from +4,425 million yen in the fiscal year ended
March 31, 2022.
Profit before income taxes
Depreciation
Increase in inventories+4,393+5,434-3,967Purchase of property, plant, and equipment
Increase in deposits paid

-3,704-2,133+5,729Cash flows fromoperating activities-6,787
Cash flows frominvesting activities
Dividends paid

-2,632(millions of yen)

Cash and cash
equivalents at
beginning of
period7,790

April 1, 2022

FCF: -1,057 million yen-1,262+132

Cash flows fromfinancing activities

Effect ofexchange ratechange on cash
and cashequivalents

Cash and cash
equivalents at
end of period

5,603

March 31, 2023

14

2

Review of the Medium-termManagement Plan

15

2-1.

Review of the Medium-term Management Plan
Medium-term Management Plan <CX 2023> ⇒ to end in 2 years
Net sales

Net sales

157,000 Operating

154,000

million yen

Net sales

Net sales

141,936 Operating

145,725

11,000

million yen

million yen

million yen

profitnet profit

6,660
million yen

Results for the fiscal year
ended March 31, 2022

Operatingprofit

7,800

7,500

Operatingprofitmillion yen Consolidated

million yen

net profit

5,791
million yen

Operatingprofit margin 6.1%
ROE
7.6%
ROA
4.6%

million yen

profitConsolidated
net profit

8,651 Consolidated

million yen

One-year business plan

Operatingprofit margin 4.0%
ROE
2.7%
ROA
1.7%

5,000

Consolidated
net profit

million yen
Operatingprofit margin 7.0%
ROE
7.9%
ROA
4.8%

2,460
million yen

Results for the fiscal year
ended March 31, 2023

target fthe fiscal year
ending March 31, 2024

Operatingprofit margin
ROE
ROA

5.1 %
5.3%
3.3%

Target for the fiscal year
ending March 31, 2024

Reasons for formulating the FY2023 One-year Business Plan

• Changes in the external environment (the impact of COVID-19, the global economic situation, soaring raw material
prices, and the decrease or interruption of civil engineering works)• Business restructuring is urgently needed (declining profitability, delay in strengthening group management).

• FY2023’s plan was replaced with a one-year business plan.
• Initiate Group-wide business structural reforms to improve earnings and planmeasures for the next medium-term management plan16

2-2. Review of the Medium-term Management Plan

Basic Policies of the 2023 One-Year Business PlanI Achieve the One-year Quantitative Plan without Fail
Quantitative plan

(millions of yen)

Plan for the fiscal year
ending March 31, 2024

Net sales

Operating profit
Ordinary profit
Profit attributable to owners of parent

154,000
7,800
8,000
5,000

Year on year

+8,200 (106%)+2,000 (135%)+2,000 (135%)+2,500 (203%)

Measures

1

Steady implementation of improvement in business earnings• Secure profits by passing on product prices and conduct strategic purchases
Cost reduction through yield and factory fixed cost ratio management, productivity improvement throughproduct integration and abolishment

２

Reduce the number of companies in the red and the amount in the red

３Implement M&A that contributes to business restructuring• Thoroughly implement reduction of expenses and costs• Transition to a profit-driven sales style• Execute M&A deals for potential areas of synergy and acquisition of new technologies172-3. Review of the Medium-term Management Plan

Analysis of changes in consolidated net profit(millions of yen)

*All figures are after tax.

Group company
profit or loss

Increase insales amount

6,000

1,420

2,330

5,000

-259

5,000

Restructuring
costs

4,000

-214
Other impacts-1,363Decline of raw
material prices

Increase in costand expenses

626
3,000

2,460
2,000

1,000

0

Results for
FY2022

Plan forFY202318

2-4. Review of the Medium-term Management Plan

Basic Policies of the 2023 One-Year Business PlanII Certain Execution of One-year Qualitative Plan
1

Promotion of business restructuring(1) Develop and implement a business portfolio review plan using ROIC as an indicator(2) Pursuit total optimization by establishing a specialized management organization for Group companies

Deepen the governance system

234(1) Clarify supervisory and enforcement roles and expedite decision-making(2) Realize slimmer organization and stronger risk management by reskilling personnel in administrative
department

Promote DX implementation(1) Utilize DX tools to save labor in factory process management(2) Study on improving operational efficiency by promoting RPA and introducing the next core business system

Promote SDGs Management(1) Achieve FY2023 targets for important issues on sustainability (10 items of materiality)(2) Further deepen sustainability management through initiatives such as carbon neutrality (GHG reduction)19

2-5. Review of the Medium-term Management Plan

Basic Policies of the 2023 One-Year Business Plan

III
1
2

Draft and implement measures for the next
medium-term management plan
Restructure and strengthen business departments
Restructure business departments, integrate and abolish sales companies, implement business portfolio strategy using
ROIC, and increase production capacity in growth areas

Develop new products and new technologies and strengthen new businesspromotion framework
Strengthen development capabilities by establishing a new Company-wide new business development organization

3

Radical review of research and development

4

Strengthen the functions of Production Division

5

Strengthen management planning functions

6

Deepen personnel systems for sustainable growth7

Develop investment policy

Review research portfolio, consider establishing a new research institute, strengthen research and development throughthe use of intellectual property, and proactively introduce technology including M&A

Review the organization and structure of the Production Division to strengthen horizontal functions, develop a master planfor plant integration and abolition, and shift to smart factories

Strengthen ability to plan and implement management strategies, implement M&A strategies that contribute to businessexpansion, and plan measures that contribute to SDGs management

Revision toward performance-based grading and compensation systems, personnel planning to realize management
strategies, and development of human resources who will bear the future

Establish investment framework to accelerate business restructuring
20

The Fiscal Year Ending March 31, 2024

Financial Results
3 Consolidated
Forecast

21

3-1. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024

Consolidated Statements of Income(millions of yen)

Results

Forecast

Fiscal year ended March 31, 2023

Fiscal year ending March 31, 2024

AmountPercentage

AmountPercentage

Year on year
Increase/
Rate ofdecreasechangeNet sales

145,725100.0%

154,000

100.0%+8,274+5.7%

Gross profit

37,31025.6%

42,00027.3%+4,690+12.6%

Selling, general, andadministrative expenses

31,51821.6%

34,20022.2%+2,681+8.5%

Operating profit

5,791

4.0%

7,800

5.1%

+2,008+34.7%

Ordinary profit

5,923

4.1%

8,000

5.2%

+2,076+35.1%

Profit attributable to owners ofparent

2,460

1.7%

5,000

3.2%

+2,539+103.2%25.30 yen―51.41 yen―

26.11 yen103.2%

ROE

2.7%

―

5.3%

―

―

―

ROA

1.7%

―

3.3%

―

―

―

Earnings per share22

3-2. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024

Forecast by Segment
Construction Materials Business Segment
Housing Materials Business◼ Maximize profits by restructuring manufacturing and sales
systems in existing businesses◼ Expand sales of environmentally friendly and disasterprevention/mitigation products◼ Establish new business models and promote downstream
development by strengthening group management◼ Implement sales and operations reforms through DX◼ Enhance cost competitiveness through in-house productionof outsourced products

Business strategy

Flooring and Decorative Materials Business◼ Pursue the establishment of a de facto standard based on thebasic concepts of safety and security, and ensure thoroughdifferentiation◼ Develop and launch new products, shift to environmentally friendly
products and their development promotion by thoroughly meeting
deadlines for improvement◼ Strengthen sales expansion in North America and China, andenhance customer service capability by increasing local production
capacity in Europe(millions of yen)

Construction
Materials BusinessNet sales

OperatingprofitFiscal year ended
March 31, 2023

Fiscal year ending March 31, 2024

Results

Forecast

Year on year

Construction Materials
Business total

44,795

48,950+9.3%

Housing Materials Business

26,50629,520+11.4%

Flooring and Decorative
Materials Business

18,28819,430+6.2%

Construction Materials
Business total

2,484

3,670

+47.7%

Housing Materials Business

1,628

2,060

+26.5%

Flooring and Decorative
Materials Business

856

1,610

+88.1%
23

3-3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024

Forecast by Segment
Environmental Materials Business Segment
Agricultural Materials Business◼ Launch and expand sales of environmentally friendly products◼ Strengthen responsiveness to producer needs◼ Expand business domain by further strengthening collaboration anddeepening marketing capabilities with Group companies◼ Promote the commercialization of smart agriculture with materials
related to institutional horticulture◼ Market penetration and expansion of Japanese-quality agricultural
cladding materials in East Asia

Business strategy
Infrastructure Materials Business◼ Propose new products in the areas of disasterprevention/mitigation and clean energy, and develop
environmentally friendly products◼ Capture needs in the area of infrastructure renewal, suchas renewal, repair, and maintenance of highways,
tunnels, and sewers(millions of yen)

Environmental
Materials BusinessNet sales

OperatingprofitFiscal year ended
March 31, 2023

Fiscal year ending March 31, 2024

Results

Forecast

Year on year

Environmental Materials
Business total

54,81657,990+5.8%

Agricultural Materials
Business

35,65836,880+3.4%

Infrastructure Materials
Business

19,158

21,110+10.2%

Environmental Materials
Business total

304

1,470

+383.6%

Agricultural Materials
Business

597

940+57.5%

Infrastructure Materials
Business

-292

530

ー
24

3-4. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024

Forecast by Segment
High Functional Materials Business Segment
High Functional Materials Business (Plates)◼ Increase production capacity to meet increased demand forsemiconductor manufacturing equipment◼ Product development of environmentally friendly products◼ Promote development of new fields to complement thesemiconductor field

Business strategy

High Functional Materials Business (Micro Motors)◼ Develop control drivers and promote production
automation to increase production capacity and profit
margin through modularization◼ Promote new field development◼ Promote production automation to enhance production
capacity(millions of yen)High Functional
Materials Business

Fiscal year ended
March 31, 2023

Fiscal year ending March 31, 2024

Results

Forecast

Year on year

Net sales

High Functional
Materials Business
total

22,72923,520+3.5%

OperatingprofitHigh Functional
Materials Business
total

2,603

2,380

-8.6%

25

3-5. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024

Forecast by Segment
Specialty Films Business Segment

Business strategy

BONSET Business◼ Expand lineup of eco-friendly products◼ Expand new markets through strategic initiatives with raw
material suppliers◼ Strengthen sales of BAC in the North American market, boost
operations to restore earnings

SANZIP Business◼ Increase production and promote stable supply at 3
production sites in Japan and Shanghai◼ Further pass-through of higher manufacturing costs tosales prices and targeted shore-ups◼ Consider production optimization, including constructionof a second overseas plant(millions of yen)

Specialty Films
Business

Net sales

OperatingprofitFiscal year ended
March 31, 2023

Fiscal year ending March 31, 2024

Results

Forecast

Year on year

Specialty Films
Business total

22,442

26,080+16.2%

BONSET Business

18,98722,080+16.3%SANZIP Business

3,455

4,000

+15.8%

Specialty Films
Business total

126

1,370

+987.3%

BONSET Business

20

1,140

ー

SANZIP Business

105

230

+119.0%26

3-6. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024

Dividend Forecast◼ The year-end dividend forecast for the fiscal year ended March 31, 2023 is 4 yen per share (annual total of 15 yen per share).
◼ The minimum dividend for the fiscal year ending March 31, 2024 is 22 yen per share.
In line with the Company policy of setting a dividend payout ratio of 40% as a guide, we plan to revise the forecast upward if
results exceed projections.

(Dividend per share: yen)

(Payout ratio)

59.5%

40

60.0%

Payout ratio

35

50.0%
30

40.2%

42.9%

39.5%

40.0%
25

22 yen as
minimum dividend
Initialforecast

20

30.0%

22.0
15

27.0
10

20.0%

22.0

22.0
Revision in
February

10.0%

15.0

5

0

0.0%

FY2020

FY2021

FY2022

FY202327

3-7. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024

Net Sales and Profit
6.3%
Operating profit margin(total)

6.1%

5.3%

5.1%
4.0%

Net sales(millions of yen)

Operating profit(millions of yen)

154,000
160,000

141,936

139,432

134,470

140,000

Other

120,000

19,684
Specialty Films

19,464

100,000

High
17,267
Functional
Materials

17,478

531

940

664

448

Other

145,725

26,08016,000Specialty Films

22,442

21,35218,000870

14,00023,520High
Functional
Materials

22,72921,62512,000

8,651
8,511

80,00055,63960,000

Environmen
tal Materials

7,372
184
1,155

324
54,93053,874

3,144

1,803

1,381
46,310Construction
Materials

3,338
2,069

Environmental
Materials

44,795
2,716

7,800
-188

6,000
2,381

2,603

1,471

304
2,484

8,000

1,372

272
126

1,405
44,41842,14757,99054,816

5,791

2,329
20,000

1,440

1,984

1,313
40,00010,000-55

4,000

48,950Construction
Materials

3,670

0

2,000
0

Net sales Operating profit

FY2019Net sales Operating profit

FY2020Net sales Operating profit

Net sales Operating profit

Net sales Operating profit

FY2021

FY2022

Forecast for FY2023
28

TOPICS

29

TOPICS

Expansion of Smoke-proof Hanging Partition Wall Business

On March 2, the Company acquired all of the outstanding
shares of MIYOSHI Corporation (Hereinafter referred to as“MIYOSHI”) and made it an equity-method subsidiary.
What is a smoke-proof hanging partition wall?
Safety equipment installed in a building to block the flow of smoke and allow timefor evacuation in the event of a fire.

MarketDue to the frequent occurrence of earthquake disasters in recent years, the market
is indicating a major expansion phase as we see progress of the replacement of
conventional walls made of glass with walls made of sheet, which is lighter inweight and does not break or scatter when dropped during disasters.

Synergy
MIYOSHI is highly recognized in the industry and possesses a large amount ofexpertise that can create attractive added value, such as solving social issues andcreating environmentally friendly products.
The Company aims to expand its smoke-proof hanging partition wall business byimproving production efficiency and demonstrating synergies through collaboration
by integrating MIYOSHI’s products with the Company’s existing Dansumoku N,
smoke-proof hanging partition wall products made of fiberglass composite resin
sheets.

M-Type Tsurico(made of glass)<Outline of MIYOSHI>
Trade name

MIYOSHI Corporation

Location of Head Office

2-2-38 Kamiyacho, Naka-ku, Hiroshima-shi,
Hiroshima

Incorporated

August 1961

Capital

12 million yen

Net sales

336 million yen (fiscal year ended July 2022)

M-type LED Sainbotare

M-tension type(made of sheet)

30

TOPICS

Expansion of Commercial Signage Business for Major Convenience Store
Chains⚫ Move from the traditional focus on productsupply to a business model centered on services

Continuous expansion of business⚫ Target of business expansion

All retail, restaurant, and service
companies that are developing
store chains⚫ Appeal to customers through accumulating
store management data and centralized
data management

Propose new products and new
construction methods responding
to customer needs

Applications for outdoor
advertising to the authorities
Customer
Application for permission,
sign drawing
Status photo, safety report

Removal work ofclosing signage
Application to remove
outdoor advertising materials
Store closing information

Periodical maintenance
Build a store management database throughcentralized management of sign application,
inspection, and removal

Photography of stores and
signs
Safety inspection andmanagement of signboards* SANWA SIGNWORKS CO., LTD. is a Group company of the Company whose main business is the manufacture of indoor andoutdoor advertising goods, plastic moldings, and LED products.
31

TOPICS

Increase Production Capacity (Domestic and Overseas Group Companies)
Construction Materials
Business

High Functional
Materials Business

BONLEX EUROPE

TAKIRON TECHBONPACKBONSET AMERICA

Italy

Japan

Japan

USA

⚫ Bolster Bonrex’s competitiveness ⚫ Minimize the risk of lost salesin Europe, a major market⚫ Strengthen customer service byshifting imports from Japan to
Background
local production
andPurposeopportunities for PVC plates forsemiconductor manufacturing
equipment

Specialty Films Business⚫ High need for high-quality domestic

products in domestic food andmedical applications⚫ The domestic market is expected to⚫ Differentiate our products byimproving appearance quality
through establishment of newtechnology

continue to grow by 2-3%.
⚫ Establish 3 bases in Japan andoverseas from the perspective of
stable supply and BCP⚫ Renew aging facilities in a mass
⚫ Establish a production system forenvironmentally friendly products that
contribute to the realization of acircular economy (stable supply of
BONPET Renew, a film that can berecycled simultaneously with PET
bottles)⚫ Respond to the growing PET film

marketTargetProducts

PVC decorative sheet

PVC plate

Zipper tapePET shrink film

Production
Capacity

About 130%

About 115%

About 120%

About 110%Investment amount: About 4,000 million yen for the entire Group32

TOPICS

Promotion of Digital Transformation for Factories
Target reduction of 1,000 million yen in
FY2026

Roadmap

FY2021 to FY2022

STEP1

FY2023

STEP2
Digitization

Wireless network

Visualization

STEP3

Digitalization
Fascinating

From FY2024

Understandable

Digital Transformation
Enabling

Analog to digital

Digital data utilization

Digital process transformation

Partial operational efficiency

Overall operational efficiency

Overall business sophistication(1) Wireless network installation(2) Paperless computerization using
electronic document tools(3) Improve operational efficiency byintroducing RPA(1) Draw strategy from current
visualization, analysis, and data
(2) Connect systems and people(3) AI analysis(1) Create new value by using data
(2) Change the business model and aim
to increase earnings

New production control system

RPA (Robotic Process Automation): The use of digitalization, AI, and other technologies to substitute or replace advanced tasks previously thought to be possible only by humans.

[Model Plant: Ibogawa Plant](1) A remote monitoring system using cameras has been installed on all lines and surrounding
areas.
Increase the ratio of improvement work and promote multi-functional and multi-stage work.

(2) An automatic data acquisition tool from the sequencer (IoT Data Server) was introduced toautomatically acquire temperature data and other data from the extruder. Abnormal changemonitoring was also started.
(3) Introduced the BI tool Tableau to implement visualization. Started to automate the creation ofmonthly production, cost, and labor data.
33

TOPICS

Promote Sustainability Management (from FY2022)
Basic Policy

Results for FY2022(1) Think about the way business and management
should be conducted with an outside-in
perspective(2) Emphasize stakeholder communication

Group
Corporate
Philosophy

Supporting today,changing tomorrow

Sustainability
Vision1. Introduction of a human rights policy⚫ C.I. TAKIRON Group Human Rights Policy has been
established and disclosed.
• It has been established in accordance with international norms such as the
Guiding Principles on Business and Human Rights adopted by the UN
Human Rights Council.
• This is an expression of the idea that respect for human rights isfundamental to all business activities.

2. Establishment of a new carbon neutral strategy⚫ Adopt measures to combat global warming based on the idea ofcarbon neutrality• Set targets for FY2050:• Set targets for FY2030:

Corporate Code of
Conduct

SystemNet zero emissions
Scope 1 and 2: 35% reduction(compared to FY2018)
Scope 3: Reduction across the supply chain

3. Evolution of climate change response⚫ Determine the short-, medium-, and long-term impacts (initial scope)on the Group of risks and opportunities from climate changeManagement

Board of Directors

Execution

Management
Committee

ReportSustainability Committee
Secretariat: Corporate
Planning Department

Individual departments of
C.I. TAKIRON

Affiliated companies• Initiatives for TCFD Recommendations (governance, strategy, risk
management, metrics and targets)• Scenario analysis (transition risk, physical risk)• Financial impact assessment, specific actions for risks and opportunities

4. Promotion of CSR procurement⚫ Set conditions for selecting suppliers from the perspective of social
responsibility, and select suppliers• Request major domestic business partners to respect CSR procurement
guidelines• Request major business partners of overseas Group companies to respect
CSR procurement guidelines• Confirm agreement level of CSR procurement policy (confirmation byquestionnaire)34

Appendix

Qualitative Review of Medium-termManagement Plan

35

Appendix

Qualitative Review of the Medium-term Management Plan (1)1. Solve social issues
Concretely contribute to the solution of social issues by steadily implementing business activities andmateriality based on the SDGs, with an awareness of social sustainability.
Initial targets for FY2023
1. Number of development themes forenvironmentally friendly products

FY2022 Results

15 themes/year

6 themes/year

2. CO2 emissions reduction ratio(compared to FY2018)

Initial: 13% reduction
After revision: 28% reduction

33% reduction (forecast)

3. Number of participants inWaterside Clean Aid activities

Initial: 1,000 or more
After revision: 1,200 or more

2,074

2. Acquire new businesses, new products, and new technologies
Take on the challenge of creating and realizing new businesses, new products, and new technologies thatwill lead the next generation, with an eye on future changes and demand
Initial targets for FY2023

Results for FY2022

1. Net sales in new business fields

6,000 million yen ormore

260 million yen

2. Net sales ratio of new products(non-consolidated)

20% or more

21.5%

50 cases or more/year

50 cases/year

3. Number of new technologies created(number of patent applications)36

Appendix

Qualitative Review of the Medium-term Management Plan (2)3. Accelerate borderlessPursue corporate value enhancement and business growth from a borderless perspective, including global
expansion of sales and production bases, marketing with new value standards, and realization of diversity(gender, race, nationality, religion, age) in the organization and corporate culture
Initial targets for FY2023

Results for FY2022

1. Overseas net sales ratio

20% or more

17.7%

2. Percentage of women in management
positions

3% or more

3.0% (as of April 1, 2023)

3. Percentage of women in leadership
positions

5% or more

5.7% (as of April 1, 2023)

4. Percentage of women in career-track
positions

20% or more

19.4% (as of April 1, 2023)

5. Percentage of women hired for careertrack positions

40% or more

63.6%

4. Implement digital
Investigate the use of cutting-edge technology in all business processes and pursue results such as work
efficiency, labor savings, and cost reductions. Aim to create new business models by promoting the use ofdigital technologies that create new added value in sales.
Initial targets for FY2023
1. Digital maturity score

Initial: 2.5 or more
Changed to target withnew diagnostic methods: 3.0 or more

Results for FY2022

2.09*Results from new diagnostic methods
37

Appendix

Qualitative Review of the Medium-term Management Plan (3)5. Reorganize Group management
Realize value creation as a consolidated entity through multiple business collaborations and maximizing
investment efficiency
Initial targets for FY2023

Results for FY2022

7% or more

1. Consolidated operating profit ratio

2. Loss-making business and loss-making company

Zero

4.0%
1 business and 6 companies

6. Evolve management base
Evolve the system design based on work-life balance and implement of Management Commitment on
Enriching Lives by all employees. Reexamine our work environment and daily communications, including
ensuring no accidents and eliminating harassment, and seek to evolve our workplace into a safe andsecure one
Initial targets for FY2023

Results for FY2022

1. Employee work engagement score

3.0 or more

2.5

2. Employee loyalty score

3.0 or more

2.8

3. Serious compliance violations

0 cases

0 cases38

Appendix

Qualitative Review of the Medium-term Management Plan (4)Two Sources for Growth(1) Investment quota
Investment quota

Cumulative results for FY2021 and FY2022

33,000 million yen

7,340 million yen◼ Business investment

Breakdown◼ Environmental investment◼ Digital

4,210 million yen
380 million yen
2,750 million yen(2) Research and development expenses
Target value

FY2022 results

Ratio against sales
2.0% or more

Ratio against sales

0.9%
39

Appendix

Company Overview andCompany Features

40

Appendix

1. Corporate and Stock Information (As of March 31, 2023)
Corporate Information

Major shareholders

Trade name

C.I. TAKIRON Corporation

Established

October 10, 1919

Incorporated

December 20, 1935

ITOCHU Corporation

55.51%

Tokyo Head Office 108-6031
2-15-1, Konan, Minato-ku, Tokyo(Shinagawa Intercity Tower A)
TEL +81 (3)-6711-3700
Osaka Head Office 530 0001
3-1-3 Umeda, Kita-ku, Osaka-shi, Osaka(North Gate Building)
TEL +81 (6)-6453-3700

The Master Trust Bank of Japan, Ltd. (trust fund)5.98%

Custody Bank of Japan, Ltd. (trust fund)

1.91%

C.I. TAKIRON Employee Stock Ownership Association

1.38%

Kaneka Corporation

1.35%

Sekisui Jushi Corporation

1.09%

DFA INTL SMALL CAP VALUE PORTFOLIO

1.01%

Watanabe Pipe Co., Ltd.

0.90%

RE FUND 107-CLIENT AC

0.66%

JP MORGAN CHASE BANK 385781

0.46%

Head office

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

Capital15,204 million yen

Number of
employees(consolidated)

3,172(Note) Shareholding ratios are calculated after deducting treasury shares.
Securities company

Stock information

Treasury shares

0.58%

Stock code

4215

Total number ofissued shares

97,553,655 shares

Number ofshareholders

13,718Stock listing

Tokyo Stock Exchange Prime Market

Share unit

100 shares per unit

Shareholder register
administrator

Sumitomo Mitsui Trust Bank, Limited

Accounting auditor

Deloitte Touche Tohmatsu LLC

Shareholding ratio(%)

Name of shareholder

0.02%

Foreign persons

8.07%
Financial institutions

8.92%
Individuals and others

16.49%

Shareholder
distribution

Other domestic
corporations

65.89%

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

41

Appendix

2. Company History
Takiron Co., Ltd.

C.I. TAKIRON
Corporation◼ Subsidiary in China was◼ Takikawa Celluloid Plant was founded.

established.
⚫ Shanghai Takiron Plastics◼ Takikawa Celluloid Co., Ltd.

was established.

Chemical Co., Ltd.

1935

1959

◼ Ibogawa Plant◼ Changed name to

Newly established,
started operations

Takiron Co., Ltd.

1961
1919

Co., Ltd.

◼ Changed name to Takiron

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

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 changed to C.I. Kasei Co., Ltd.
—◼ Listed on the Second Section

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

Group companies such as the
Yokohama Rubber Co., Ltd. andZeon Corporation⚫ Transfer of synthetics businessrights from Yokohama Rubber

integration
C.I. TAKIRON Corporation.

of the Tokyo Stock Exchange.
◼ Listed on the First Sectionof the Tokyo Stock
Exchange.

1989

1971

◼ Management⚫ Company name changed toMerged with Kobe Resin Co., Ltd.

Founder: Sataro Takikawa

2019

2009

1993 1995◼ Bonset America Co.

was established.
◼ Capital participation by ITOCHU

Corporation⚫ Share transfer from Yokohama◼ Becoming a wholly

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

Rubber, etc.

42Appendix

3. Domestic Bases
Domestic Plants and R&D Center: 26
HOKKAIDO SANPLUS
Ishikari Plant(C.I. TAKIRON Corporation, not consolidated)

PlantsMain products

Aboshi Plant
Ibogawa Plant

Plate products
Housing materials
Polycarbonate building
materials

Yasutomi Plant

Flooring materials

Tokyo Plant

Housing materials

Shiga Plant

Agricultural films
Decorative materials

Okayama Plant

Shrinkable film

Tochigi Plant

Civil engineering sheet

Hiratsuka Plant
Sano Plant

C.I. TAKIRONCIVIL
Eniwa Plant

Shiga Plant

Shiga R&D Center
HOKKAIDO SANPLUS
Teine Plant

SANWA SIGNWORKS
Kyoto Plant

Yasutomi Plant

Tochigi Plant
C.I. TAKIRONCIVIL
Yokaichi Plant

Zipper tape
Bundling materials

C.I. TAKIRONCIVIL
Ako Plant

BONPACK Tochigi Plant

Sano Plant

DAILITE Ryugasaki Plant
C.I. TAKIRONCIVIL
Tsuchiura Plant

Okayama Plant
SANWA SIGNWORKS
Saitama Plant(CIK NANOTEK)TAKIRON TECH
Sanda Plant

TAKIRON POLYMER
Head Office Plant

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

Hiratsuka Plant(SANWA SIGNWORKS)

43

Appendix

4. Overseas Bases
Overseas manufacturing bases: 5

BONSET AMERICA(North Carolina, USA)

BONLEX EUROPE(Veneto, Italy)

SHANGHAI CIK
ELECTRONICS(Shanghai, China)

SHANGHAI SANPLUS
PLASTIC(Shanghai, China)
BONSET LATIN AMERICA(Uruguay)
44

Appendix

5. Group Overview
C.I. TAKIRON Group
Domestic

Construction Materials BusinessHousing Materials
Department⚫ SANWA SIGNWORKS⚫ MIYOSHI⚫ C.I. TAKIRONPLUS

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

45Appendix

Construction Materials Business◼ The Housing Materials Business handles water treatment products such as gutters and drainage basins, and Lume
Wall, high-insulation hollow panels made of polycarbonate resin, which are widely used for natural indoor lighting fromhouses to non-residential properties.

◼ The Flooring and Decorative Materials Business handles flooring materials with excellent slip-resistant properties that
protect the safety of poolsides, apartment hallways, stairs, etc., as well as decorative films that enhance the design ofinteriors 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 and 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⚫ Polycarbonate day-lighting building materials with

top market share, and slip-resistant PVC flooring⚫ Comprehensive development capability to add

functionality to decorative materials
Slip-resistant vinyl flooring sheet

Interior and exterior
decorative materials

Decorative material made ofresin⚫ Global expansion through overseas production

bases (BLX)
46

Appendix

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 asafe and secure social environment.

◼ 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 ofwaterproof and impervious sheets, 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⚫ Responsibilities from manufacturing and sales

to design, processing, and construction
Agricultural films

Packagingmaterials

Irrigation tube

Infrastructure Materials Business
Top Market Share

Top Market Share

Waterproof
geomembranes

Waterstops

Top Market Share

Hydrophilic watersealing materials

High-pressurepolyethylene pipe

Large polyethylene resin tank(handling: affiliated company)(handling: affiliated company)
47

Appendix

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 plastic materials, and acetate plates.
◼ Offer products in a wide range of fields, from semiconductor manufacturing equipment, that supports the industrial base,to product materials that enrich people’s lives.

Plate Business

Motor Business
Top Market Share

Top Market Share

Industrial plate

Laser shield plates

Acetate plate

Ultrafineparticle material

Filtration plateand large cutting(handling: affiliated companies)(handling: affiliated companies)(handling: affiliated companies)

Static dissipative plate

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

Uses: eyeglass frames⚫ High quality and brand strength48

Appendix

Specialty Films Business◼ BONSET is a brand of shrinkable film (heat-shrinkable film) born in Japan. Utilizing the characteristics of various
materials, it is used 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 products.

BONSET Business (heat-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 and PVC film

Heat-shrinkable film
Uses: beverage labels, etc.

Environmentallyfriendly products
Bonpet Renew

SANZIP Business (zipper)

Bonset Latin America
PET film and 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 bases in Japan (Hiratsuka and Okayama) andoverseas (China, the United States, and Uruguay), we are building a
global optimal production and sales network (supporting BCP).
Zipper tape
Uses: pouches for food packaging, etc.

Environmentally friendly products
Mono material zipper⚫ Meticulous response to customer needs through in-house productionof dies (SANZIP)⚫ Expansion and development of environmentally friendly products andtheir lineups such as biodegradation, mono material, and biomass

49

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 targets and projections and are not guarantees of future performance. Please also be awarethat the Company’s results may differ from the Company’s current expectations.
In addition, although the Company prepares forward-looking statements of the industry, etc. based on reliable data, the Company does not guarantee
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 areused for, and the Company assumes no responsibility whatsoever.
50