FY2021 1st quarter
Business Results（April 1, 2021-June 30, 2021）

August 6, 2021

１．Business Results for the 1st QT FY 2021

２. Projection for the FY 2021

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Financial Results for Q1 FY2021• Strong demand from Semiconductor & Electronic application contributed quarterly

record in sales and profits.
• Net sales: 8,309million yen（YOY※+1,719million yen, ※+26.1%）• Profits:

Operating profit 1,492million yen（YOY+731million yen, +96.2%）
Ordinary profit 1,475million yen（YOY+694million yen, +88.9%）
Net profit 1,020milion yen（YOY+477million yen, +88.0％）（Million yen）

Q1 FY2020
Results

Q1 FY2021
Results※8,309Net profit

6,589760781
542

FX Rate (USD)¥108/$¥110.5/$Net sales
Operating profit
Ordinary profit

1,492
1,475
1,020

YoY
Change%※+1,719※+26.1%+731+96.2%+694+88.9%+477+88.0%※"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 1QT.
The comparison for YOY is reference figure as new standard vs old standard.

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The summary of Q1 FY2021 Financial Results■Net sales✓ 8,309million yen（YOY※+1,719million yen, ※+26.1%）✓ Photosensitive materials: Semiconductor application continued to keep strong sales
from previous 2nd half.
Display allocation application continued to keep strong sales from previous 4QT.
✓ Chemicals: Electronic materials business continued to keep good sales.
Aroma chemicals business kept steady growth.
The logistic (chemical tank terminal) business has recovered inhandling quantity thanks to strong domestic chemical market
demand as same level as pre COVID-19.

■ Operating profit✓ 1,492million yen（YOY+731million yen, +96.2%）✓ Labor cost, depreciation and etc. (+219million yen) for production capacity expansion
increased.
✓ High valued product sales increase brought better profit■ Ordinary profit✓ 1,475million yen（YOY+694million yen, +88.9%）✓ Non-operating profit: There was insurance claim income(△35million yen) in previous year,
but nothing in this quarter.

■Net profit✓ 1,020million yen（YOY+477million yen, +88.0%）※The comparison for YOY is reference figure as new standard vs old standard.

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Quarterly sales & operating profit trend• Q1 sales: 8,309million yen (YOY ※+1,719milion yen, ※+26.1%)• Operating profit: 1,492million yen (YOY+731million yen, +96.2%)• Operating profit achieved quality high record.

※The comparison for YOY is reference figure as new standard vs old standard.

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Change analysis: Operating profit• Expense increased by raw materials, fuel and transportation cost increasing inaddition to fixed cost increase for business development investment
Advanced expenditure increased for• Sales expansion brought increasing profit.
production capacity up(Labor cost, Depreciation)（Million yen）

+203+67

Operation+1,005
improvement
Inventory
revaluation

FX

△339

Impact from raw
materials, fuelandtransportation Expenses
cost increasing increase

1,492+731

760
Q1 FY2020
Results+24 △228

Sales growth

Q1 FY2021
Results

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Photosensitive Materials Segment
Net sales: 5,067million yen(YOY※+1,386million yen, ※+37.7％)• Semiconductor application continued to keepstrong sales from previous 2nd half.
• Display allocation application continued tokeep strong sales from previous 4QT.

Operating profit: 1,001million yen(YOY+458million yen, +84.4％)• Semiconductor application, display application
and all product line had sales & profit
increase.
• Labor cost and depreciation increased forphotosensitive materials capacity expansion.
※New accounting standards about the profit recognition has been
applied, sales figure decreased by 95million yen from calculation in
old accounting standard.
The comparison for YOY is reference figure as new standard vs oldstandard.

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Chemicals Segment
Net sales: 3,241million yen(YOY※+333million yen, ※+11.5%)• Electronic materials business continued to keep
good sales• 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: 490million yen(YOY+273million yen, +125.6%)• Increased in production for demand expansion
resulted in better profit.
• Increasing selling price in accordance with raw
material & fuel price increase.
※New accounting standards about the profit recognition has been
applied, sales figure decreased by 162million yen from calculation inold accounting standard.
The comparison for YOY is reference figure as new standard vs oldstandard.

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Q1 FY2021 Income Statement• Net sales 8,309million yen (YOY※+1,719million yen, ※+26.1%).
• Gross profit rate was improved by 5.5pt thanks to higher plant operation rate and expanding
sales for advanced area.
(million yen)

Q1 FY2021

Q1 FY2020

Change%6,5898,309※+1,719※+26.1%

5,070

5,936+866+17.1%

1,518

2,372+853+56.2%

757879+121+16.1%

760

1,492+731+96.2%

Non-operating income

5927△31△52.9%

Non-operating expenses

3945+6+15.7%

Ordinary profit

781

1,475+694+88.9%

Extraordinary income &losses△11△3+8+72.8%

Profit before income taxes

769

1,472+702+91.3%

Income taxes

226452+225

2倍Net profit542

1,020+477+88.0%

Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit※"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 1QT.
The comparison for YOY is reference figure as new standard vs old standard.

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Q1 FY2021 Balance sheet• Shareholders’ equity increased by 940million yen thanks to net profit increase.
• Equity ratio is 31.6% (YOY+2.2pt）and exceeded 30% over last year.

(Million yen)Mar. 2021 Jun. 2021
ended
ended

Mar. 2021
ended

Jun. 2021
ended+615 Liabilities

30,727

29,722△1,005

3,470

4,101+630

19,98721,025+1,037

7,269

4,595

△2,673

12,79013,735+944

Shareholders’ equity

12,75013,691+940

Valuation andtranslation adjustments

40

44+3

43,51843,457△61

Change(Million yen)

16,99817,613

3,794

4,043+249

Trade payables

Trade accounts
receivable

5,386

6,081+694

Interest-bearing debt

Inventories

6,983

7,097+114

833

390

△442

26,52025,844△676 Net assets

24,90824,403△504

Intangible assets

523

512

△10Investments andotherassets

1,088

927

△160

43,51843,457

Current assets
Cash and deposits

Other
Fixed assets
Property, plant andequipment

Total assets

Other

Liabilities and net△61 assets

Change［Equity ratio］
31.6%（YOY+2.2pt）

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１．Business Results for the 1st QT FY 2021

２．Projection for the FY 2021

11FY 2021 ending projection• The progress ratio of the 1st half projection is as below.
• FX rate is ¥105/$.

(Million yen)

1H FY2021
Projection

Q1 FY2021
results

Progress Ratio

15,000

8,309

55.4%

Operating profit

1,980

1,492

75.4%Ordinary profit

1,900

1,475

77.7%

Net profit

1,300

1,020

78.5%

Net sales

12Future Outlook• As supported by the brisk semiconductor market conditions from theprevious year, demand for photosensitive materials and chemicals is rapidly
surging, it brought increases both in sales and profits compared to previousyear.
Accordingly, the progress degree for the earnings forecast 1st half year ishigh.
• However, in addition to crude oil and the raw materials price surging
continuous for 2QT and more, periodical repair on August and October has
been planned and increasing the cost of goods sold for product in accordancewith ramping up production at new plant, there factors make opaque for ourprojection.
Therefore, earnings forecast at the moment should not be changed.
• We will continue to strive our effort to achieved the target value of mediumterm management plan TGC300 and the further higher.

13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, Productivityimprovement, pilot production capability）with 150mio yen budget.

14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 iscurrently available.
Therefore actual business results may differ from those projected, dependingon factors and risk such as the economic status of the market surrounding
the company, and do not perform any strict promise and guarantee.