Business Results for the First Quarter of
Fiscal Year Ending March 31, 2024
(April 1, 2023 – June 30, 2023)
August 10, 2023

1

Financial Results for the Q1 FY2023• Net sales decreased by 1,621million yen YOY due to inventory adjustments in the semiconductor market.
• Operating profit decreased by 631million yen YOY due to lower sales in addition to higher fuel and electricity costs,
and higher fixed costs due to increased production capacity.
• Ordinary profit decreased by 967 million yen due to the impact of -329 million yen in foreign exchange gains.

Q1 FY2022
Results

Q1 FY2023
Results

Change%Net sales

9,232

7,611(1,621)(18)

Operating profit

1,466834(631)(43)

Ordinary profit

1,788820(967)(54)

Profit1,229552(677)(55)

FX Rate (USD)¥127/$¥136/$(Million yen)

YoY

2

Quarterly Sales & Operating profit Trend• Inventory adjustments in the semiconductor market are protracted.
• After peaking in Q4 FY2021 and Q1 FY2022, sales will continue to decline.

Quarterly Sales & Operating profit Trend(Million yen)

10,000(Million yen)

2,000Net sales
Operating profit

8,000

7,611 1,600

6,000

1,200834
4,000800
Decreased demand due toinventory adjustments in the market

2,000400

Continued high prices of raw materials, fuel and transportation cost

00Q1Q2Q3

FY2020Q4Q1Q2Q3

FY2021

Q4Q1

Q2

Q3

FY2022Q4Q1
FY20233

Variance Analysis: Operating profit• Decrease of 0.63 billion yen YoY due to lower sales resulting from inventory adjustments in the semiconductor
market, higher fuel and electricity costs and etc., as well as higher fixed costs resulting from increased production
capacity.

+0.27(Billion yen)

1.46(0.61)

+0.05
FX

Increase ininventory(unit price, quantity)(0.18)
Decrease in Sales(0.17)
higher fuel,electricity andproduction costs

FY2022 Q1Operating profit

0.83
Increase in
expenses fortechnology
development andproduction capacity FY2023 Q1
expansion.
Operating profit

4

Photosensitive Materials Segment
Net sales & Operating profit(Million yen)
7,000
6,000

(Million yen)
1,400

Net sales
Operating profit

1,200

5,511
998

5,000

5,442
4,970
907

4,930

4,832

1,000

820
4,000

8005743,000

400

1,000

20000Q3FY2022• Demand for semiconductor materials was sluggish due toinventory adjustments in the market.
• Demand for display materials recovered thanks to arecovery in production of large LCD panels, mainly inChina.

Operating profit: ¥574 Million

2,000

Q2

YoY: −¥678 Million, −12%600580

Q1

Net sales: ¥4,832 Million

Q4

YoY: −¥423 million, −42％
• In addition to the decrease in sales, fixed costs increased
due to the increase in production capacity as personneland capital investment.

Q1FY2023

5

Chemicals SegmentNet sales & Operating profit(Million yen)
4,000
3,721

Operating profit
3,350

Net sales: ¥2,778 Million

3,262
2,966

3,000

2,000

(Million yen)800

Net sales

467478

YoY: −¥942 Million, −25%
2,778

380

600

400

335

260
1,000

• Sales of electronic materials decreased due toprolonged inventory adjustments in the market.
• Sales of aroma materials declined YoY, despite signs ofa reversal in softening demand.
• In the logistics business, the tank contract rate remains
at a high level, despite the continued slump in cargomovements.

200

Operating profit: ¥260 Million
YoY: −¥207 Million, −44%
00Q1Q2Q3FY2022

Q4

Q1FY2023
6Q1 FY 2023 Income Statement• Net sales decreased by 1,621million yen YOY due to inventory adjustments in the semiconductor market.
• Ordinary profit decreased by 967 million yen due to the impact of -329 million yen in foreign exchange gains.

Q1 FY2022
Results

Q1 FY2023
Results

9,232

7,611

(1,621)

(18)

6,703

5,757(945)

(14)

2,529

1,853(675)(27)

SG&A expenses

1,063

1,019(44)(4)

Operating profit

1,466834(631)(43)

Non-operating income

351

15(335)(96)

Non-operating expenses

2929+0(0)1,788820(967)

(54)

(11)

(15)

(4)

1,777804(972)

(55)

547

252(294)

(54)

1,229

552

(677)

(55)

(Million yen)
Net sales
Cost of sales
Gross profit

Ordinary profit
Extraordinary income & losses
Profit before income taxes
Income taxes
ProfitChange%In the previous period, a foreignexchange gain of 0.32 billion yen
occurred.
Ordinary profit margin
10.8%

7

Q1 FY2023 Balance sheet• Inventories increased by 504 million yen due to lower sales resulting from inventory adjustments in the semiconductor market and an increase in raw
materials.
• Accounts payable decreased by 800 million yen due to lower sales.
• Borrowings increased by 1,213 million yen due to increases in capital investment and working capital.
• Shareholders' equity increased by 393 million yen thanks to the increase in quarterly net income.

Mar. 2023
ended

June 2023
ended

Change21,68522,428+743

Cash and deposits

3,252

3,510+258

Notes and accounts
payable – trade

Notes and accounts
receivable – trade

5,912

5,785(127)

Borrowings

11,758761
29,42012,263869
29,659+504+108+238

Other

27,63927,972+333

607

654+46

1,172

1,031(141)

51,10552,087+982(Million yen)
Current assets

Inventories
Other

Fixed assets
Property, plant andequipment
Intangible assets

Investments and otherassets

Total assets

Mar. 2023
ended

June 2023
ended

Change31,46332,047

+584

4,943

4,143(800)

17,893

19,107+1,213

8,625

8,797+171

19,641

20,039+397

19,556

19,950+393

Valuation and translation
adjustments

8589+4

Liabilities and net assets

51,10552,087+982(Million yen)
Liabilities

Net assets
Shareholders’ equity

8Forecast and Progress for the H1 FY2023• H1 progress ratio is 48% for net sales, 64% for operating profit, and 66% for ordinary profit.
• Inventory adjustments will continue in the first half, and a gradual recovery is expected from the second half andbeyond.

H1 FY2023
Forecasts

Q1 FY2023
Results

Progress Ratio

Net sales

16,0007,611

48%

Operating profit

1,300

834

64%

Ordinary profit

1,250820

66%

80055269%(Million yen)profit9

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 and risk such as the economic
status of the market surrounding the company, and do not perform any strict promise and guarantees.

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