Business Results for the First Quarter of
Fiscal Year Ending March 31, 2023
(April 1, 2022 – June 30, 2022)
August 10, 2022

1

Financial Results for the Q1 FY2022◼ Net sales

・In electronic materials, strong demand for advanced semiconductor materials continues.
There is also the impact of the depreciation of the yen.

◼ Operating profit

・Rises in raw materials, fuel, and freight costs (YoY +¥525 million) continued, and selling prices were reflectedaccordingly.
・Expenses for technology development for advanced semiconductor fields and production capacity
enhancement (YoY +¥351 million) increased.

◼ Ordinary profit

・Foreign exchange gains due to yen depreciation (YoY +¥329 million).

(Million yen)

Q1 FY2021
Results

Q1 FY2022
Results

YOYChange%Net sales

8,309

9,232+923+11.1%

Operating profit

1,492

1,466−26−1.8%

Ordinary profit

1,475

1,788+312+21.2%

Profit1,020

1,229+209+20.5%

FX Rate¥110/$¥136/$

2

Quarterly Sales & Operating profit Trend• In the first quarter of the previous fiscal year, there was a temporary factor of last-minute demand prior to the surge in raw
material prices.
• In the current fiscal year, although sales increased due to price reflections and volume increases, operating income decreasedslightly due to increased expenses for technology development and production capacity expansion.
• Sales and profit growth trends continue.

Keep strong sales fromsecond half and rush demand

9,232
1,466

Effect of expansion
works and equipment
repairs

Effect ofexpansion works

Sales shift andrecruiting expenses
increased

Impact from raw materials,
fuel and transportation cost
increasing3

Change analysis: Operating profit• Partial price adjustment was made to reflect the impact of higher raw materials, fuel, freight and other costs. Sales volume of photosensitive
materials and high-purity solvents also increased.
• Increase in expenses for technology development and production capacity expansion for advanced semiconductor fields.

(Million yen)
Increase in sales
volume, Selling price isunder increasing due
to high raw material
prices.

+764

1,492
Sales growth

Q1 FY2021
Operating profit+162+14−90FX

Operation
improvement

Inventory
revaluation−525

Impact from raw
materials, fuel,consumables andtransportation cost
increasing

Increase in expenses for technology
development and production capacity
expansion for advanced semiconductor
fields−351

1,466
Expenses
increase

Q1 FY2022
Operating profit

4

Photosensitive Materials Segment

Net sales: 5,511 million yen(YoY +443 million yen, +8.8％)• Sales for Logic semiconductor applications are expanding.
• Sales for Memory and legacy semiconductor applications also
increased.
• Sales Display applications are in an adjustment phase due to a
decline in stay-at-home demand.

Operating profit: 998 million yen(YoY −3 million yen, −0.4%)• Increased costs due to rising raw material and fuel prices.
• Increase in expenses for technology development, production capacityexpansion, etc.
• Sales and profit growth trends continue.

5Chemicals Segment
Net sales: 3,721 million yen(YoY +479 million yen, +14.8%)• Sales of high-purity solvents for electronic materials werestrong.
• Sales for Aroma chemicals declined due to a lull in demandand disruptions in overseas logistics.
• In the logistics business, the contract rate remained highdespite a decrease in cargo movement due to lower
automobile production and other factors.
• Selling prices continue to be adjusted in raw material prices
increase accordingly.

Operating profit: 467 million yen(YoY −22 million yen, −4.7%)• In the first quarter of the previous fiscal year, there was atemporary factor of last-minute demand prior to the surge inraw material prices.
• Raw materials, fuel, freight rates, etc. continue to rise.
6

Q1 FY2022 Income Statement• Gross profit increased due to higher sales of high value-added products, despite the impact of surging raw material, fuel, andfreight costs.
• Non-operating income includes foreign exchange gains (YoY +¥329 million) due to yen depreciation.

(Million yen)

Q1 FY2021

Q1 FY2022

Change%8,309

9,232+923+11.1%

5,936

6,703

+766

+12.9%

2,372

2,529+157

+6.6%

879

1,063

+184

+20.9%

1,492

1,466

−26

−1.8%

Non-operating income

27351+323

12.6 times

Non-operating expenses

4529

−15

−34.8%

1,475

1,788+312+21.2%△3△11‒‒

1,472

1,777+304+20.7%

452

547+95+21.0%

1,020

1,229+209+20.5%Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit

Ordinary profit
Extraordinary income & losses
Profit before income taxes
Income taxes
ProfitIncrease in expenses fortechnology development
and production capacity
expansion for advanced
semiconductor fields.

7

Q1 FY2022 Balance sheet• Improved working capital due to decrease in account receivables.
• Tangible fixed assets decreased by 415 million yen, partly due to the acquisition of new facilities, but also due to the depreciation of existing facilities.
• Interest-bearing debt decreased by 791 million yen.
• Shareholders' equity increased by 1,110 million yen due to an increase in net income.
• Equity ratio was 37.4% (+3.1 pt from the end of the previous period).
Mar. 2022
ended

June 2022
ended

Change19,766

19,524−242

Cash and deposits

3,681

3,633

−48

Notes and accounts
receivable – trade

7,402

6,979

−422

Interest-bearing debt

Inventories

8,080

8,419

+338

602

492

−110

27,11926,448−670

25,376

24,961

−415

511

521

+91,231965−265

46,88645,972−913(Million yen)
Current assets

Other
Fixed assets
Property, plant andequipment

Intangible assets
Investments and otherassets
Total assets(Million yen)Mar. 2022
ended

June 2022
ended

Change30,824

28,792−2,032

5,010

5,074

+63

17,81917,028

−791

Other

7,993

6,689

−1,304

Net assets

16,061

17,180+1,11816,007

17,118+1,110

Valuation and translation
adjustments

54

62

+7

Liabilities and net assets

46,88645,972−913
8Liabilities
Notes and accounts payable –trade

Shareholders’ equity

Forecast and Progress for the First Half of FY2022• Each profit trended favorably in line with the 1st half forecast.

(Million yen)

H1 FY2022
Forecast

Q1 FY2022
Results

ProgressRatio

Net sales

20,000

9,232

46.2%

Operating profit

2,450

1,466

59.8%

Ordinary profit

2,400

1,788

74.5%

profit

1,650

1,229

74.5%

EPS¥207.89¥154.979

Individual Development, to the global Chemical10