Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 [J-GAAP]
February 13, 2024
Company name: Tokyo Ohka Kogyo Co., Ltd.
Listing: Tokyo Stock Exchange (Prime Market)
Securities Code:4186
URL: https://www.tok.co.jp/eng
Representative: Noriaki Taneichi, President and Chief Executive Officer
Inquiries: Daisuke Matsuyama, General Manager, Accounting Division TEL: +81-44-435-3000
Scheduled date of ordinary general meeting of shareholders: March 28, 2024
Scheduled date to commence dividend payments:
March 29, 2024
Scheduled date to file annual securities report:
March 28, 2024
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
Yes (for Institutional Investors and Analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (January 1, 2023 to
December 31, 2023)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year-on-year.)Net sales
Fiscal year ended
December 31, 2023
December 31, 2022

Operating income

Millions of yen% Millions of yen

162,270
175,434(Note) Comprehensive income:

(7.5)
25.3

Basic earnings per
share
Fiscal year ended
December 31, 2023
December 31, 2022

% Millions of yen

22,70630,181

FY2023: ¥24,218 million

Profit attributable toowners of parent

Ordinary income(24.8)
45.8[0.6%]% Millions of yen

24,26030,966(21.7)
42.9

FY2022: ¥24,079 million

Diluted earnings per
share

12,712
19,693[4.7%]

Ratio of ordinary
income to total assets

Return on equity%(35.4)
11.0

Operating margin

Yen

Yen

%

%

%

105.10163.18104.97162.93

7.2
12.1

9.9
13.6

14.0
17.2

(Note) The Company conducted a 3-for-1 stock split for common shares on January 1, 2024. “Basic earnings per share,” “Diluted earnings per share,” and“Net assets per share” in (2) Consolidated Financial Position below are calculated assuming that the stock split had been conducted on January 1, 2022.

(2) Consolidated Financial Position
Total assets
As ofDecember 31, 2023
December 31, 2022
(Reference)

Equity:Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

251,864
238,075

195,480
180,960

72.9
71.3

1,516.99
1,404.75

As of December 31, 2023: ¥183,654 million

As of December 31, 2022: ¥169,745 million(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
December 31, 2023
December 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

17,21018,991(9,378)(12,383)(7,376)(8,610)42,78840,856

2. Cash Dividends
1st quarter

Fiscal year ended
December 31, 2022
December 31, 2023
Fiscal year ending
December 31, 2024
(Forecast)

Yen

Annual dividends per share
2nd quarter 3rd quarter Year-end
Yen

Yen

Yen

Total

Total cash
dividendsonPayout ratio Dividend
equity ratio

Yen Millions of yen

－
－

78.00
82.00

－
－

82.00
86.00

160.00168.00

－

29.00

－

29.00

58.00

6,469
6,797

%

%

32.7
53.3

4.0
3.8

39.9

(Note) In light of the above stock split, the amounts before FY2023 are on a pre-split basis, and FY2024 (Forecast) reflects the effect of the stock split.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2024 (January 1, 2024
to December 31, 2024) (% indicates the rate of increase/decrease against the same period of the previous year.)Net salesFirst half
Full year

Operating income

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

83,100179,200

7.0
10.4

11,10026,8001.8
18.0

11,60027,700

(1.8)
14.2

6,800
17,600

27.0
38.4

56.11
145.19

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(Note): Please refer to “3. Consolidated Financial Statements and Major Notes, (5) Notes to Consolidated
Financial Statements (Changes in Accounting Policies)” on page 13.
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023
As of December 31, 2022

(ii)

127,800,000 shares
127,800,000 shares

Number of treasury shares at the end of the period
As of December 31, 2023
As of December 31, 2022

6,735,402 shares
6,963,774 shares(iii) Average number of shares outstanding during the period
Fiscal year ended December 31, 2023
Fiscal year ended December 31, 2022

120,955,808 shares
120,680,342 shares(Note) 1. The Company conducted a 3-for-1 stock split for common shares on January 1, 2024. “Total number of issued shares at the end of theperiod (including treasury shares),” “Number of treasury shares at the end of the period,” and “Average number of shares outstanding
during the period” are calculated assuming that the stock split had been conducted on January 1, 2022.
2. Number of treasury shares include the number of the Company’s shares held by “Tokyo Ohka Employee Stockholding Association
Trust.”(Reference) Overview of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (from January 1,
2023 to December 31, 2023)(1) Non-Consolidated Operating Results
Net sales
Fiscal year ended
December 31, 2023
December 31, 2022

Operating income

Ordinary income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

91,34999,617

(8.3)
18.1

8,462
15,709(46.1)
35.9

13,33520,363(34.5)
24.2

10,297
15,819(34.9)(6.9)

Basic earnings
per share
Fiscal year ended
December 31, 2023
December 31, 2022(% indicates year-on-year changes.)

Diluted earnings
per share
Yen

Yen

85.13
131.0885.03
130.88(Note) The Company conducted a 3-for-1 stock split for common shares on January 1, 2024. “Basic earnings per share” and “Diluted earnings per
share” are calculated assuming that the stock split had been conducted on January 1, 2022.

(2) Non-Consolidated Financial Position
Total assets
As ofDecember 31, 2023
December 31, 2022
(Reference) Equity:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

181,967

145,75080.0

1,202.74

175,185

137,29278.3

1,134.74

As of December 31, 2023: ¥145,609 million%

Yen

As of December 31, 2022: ¥137,117 million* The Financial Results report is outside the scope of an audit by certified public accountants or an audit firm.
* Explanation of the proper use of financial results forecast and other special notes
The financial results forecast stated in this report are based on the information available as of the date of the release of this report, and actual
results may differ from the forecast due to a variety of factors.

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

○Table of contents of the attached document
1. Overview of Operating Results, Etc. ························································································ 2(1) Overview of Operating Results for the Fiscal Year Ended December 31, 2023···································· 2(2) Overview of Financial Position as of December 31, 2023 ···························································· 3(3) Overview of Cash Flows for the Fiscal Year Ended December 31, 2023 ··········································· 3(4) Future Outlook ············································································································ 4
2. Basic Policy for Selection of Accounting Standards ······································································ 4
3. Consolidated Financial Statements and Major Notes ····································································· 5(1) Consolidated Balance Sheet ······························································································ 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ···················· 7
Consolidated Statement of Income ······················································································ 7
Consolidated Statement of Comprehensive Income ··································································· 8(3) Consolidated Statement of Changes in Equity ········································································· 9(4) Consolidated Statement of Cash Flows ················································································ 11(5) Notes to Consolidated Financial Statements··········································································· 13(Notes Concerning Going Concern Assumption) ····································································· 13(Changes in Scope of Consolidation or Equity Method Application) ·············································· 13(Changes in Accounting Policies) ·················································································· 13(Additional Information) ····························································································· 13(Consolidated Statement of Income) ·············································································· 14(Consolidated Statement of Cash Flows) ············································································· 15(Segment Information, Etc.) ························································································· 15(Per Share Information) ·································································································· 16(Significant Subsequent Event) ······················································································ 17-1-1. Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Fiscal Year Ended December 31, 2023
(i) Operating results for the fiscal year ended December 31, 2023
For the fiscal year ended December 31, 2023, the electronics market which is the main customers for the Group's
products faced a decrease in demand for smartphones and PCs from a year earlier, and the continued inventory
adjustment by semiconductor manufacturers resulted in a year-on-year decrease in demand for semiconductors.
Under these circumstances, the Group launched “tok Medium-Term Plan 2024,” a three-year medium-term planwith FY2024 as the final year, under the management vision to become “The e-Material Global CompanyTM”
contributing to a sustainable future through chemistry. Under the slogan of the Plan “Boost up TOK!!,” we haveworked to attain the long-term vision TOK Vision 2030 by promoting the following five company-wide strategies:(1) Increase global market share of cutting-edge photoresists, (2) Acquire and create core technologies in electronicmaterials and new fields, (3) Secure stable supply of high-quality products and establish an optimal production
system for the Group, (4) Improve employee engagement and promote people-oriented management, and (5) Buildsound and efficient management foundation.
First of all, in FY2023, we worked to increase global market share of cutting-edge photoresists by actively
utilizing cutting-edge research facilities to further develop our core technologies of miniaturization and high-purity
processing technology and meeting customer needs through the trinity collaboration between R&D, manufacturing
and sales. We also promoted activities to acquire and create core technologies in electronic materials and new fields
by strengthening cooperation with and support for promising venture companies and business-academia
collaboration as part of our efforts toward future business expansion and focusing on collaborative business creation
through open innovation.
Next, in anticipation of a future increase in semiconductor demand, we started construction of a new
manufacturing plant in Kikuchi city, Kumamoto prefecture, decided to make investments to increase production
capacity at the Koriyama Plant and overseas sites, and worked on optimization of the supply chain of high-purity
chemicals in Asia, with an aim to secure stable supply of high-quality products and establish an optimal production
system for the Group. In addition, in order to further grow the Material Business, we transferred the Equipment
Business (excluding certain parts) to AIMECHATEC, Ltd. and are promoting a new Materials & Equipment (M&E)
strategy in collaboration with the company.
Furthermore, as an effort to improve employee engagement, we have implemented various measures aimed atincreasing employees’ motivation, including the introduction of the Tokyo Ohka Global Employees Stockholding
Association Plan and the enhancement of an employee commendation system and education tools. We have also
worked on people-oriented management by introducing an employee career support system and promoting healthand productivity management that will lead to maintenance and improvement of employees’ health.
With the aim of realizing more transparent management and further expediting the decision-making, we shiftedto a company with an Audit and Supervisory Committee from a company with a Board of Auditors and have beenworking to strength our corporate governance framework. In addition, we have enhanced our system to manage
various risks such as economic security, information security, and climate change so as to be able to respond to therapidly changing management environment. We have also taken various measures to strengthen our managementfoundation such that we developed a digital transformation (DX) environment that contributes to productivity
improvement.
In spite of these various efforts, because of the stagnant semiconductor market compared to a year ago, for the
fiscal year ended December 31, 2023, the Group recorded net sales of ¥162,270 million (down 7.5% year-on-year).
In terms of profit, the Group recorded operating income of ¥22,706 million (down 24.8% year-on-year), ordinary
income of ¥24,260 million (down 21.7% year-on-year), and profit attributable to owners of parent of ¥12,712
million (down 35.4% year-on-year), due to decreased sales and increased expenses associated with investments for
future despite effects of the weakening yen.
Following the transfer of the Equipment Business (excluding certain parts) to AIMECHATEC, Ltd., we operate
the Material Business as a single business segment from the fiscal year ended December 31, 2023. Accordingly,
operating results by segment are not disclosed, but net sales by division are as follows.
Net sales in the Electronic Functional Materials Division amounted to ¥87,799 million (down 5.4% year-onyear), net sales in the High-Purity Chemicals Division amounted to ¥71,992 million (down 7.2% year-on-year), andnet sales in Other amounted to ¥2,477 million (down 51.1% year-on-year). Net sales in the Equipment Business(excluding certain parts) are included in Other.

-2-(2) Overview of Financial Position as of December 31, 2023
(Assets)
Total assets as of December 31, 2023 increased by ¥13,789 million from December 31, 2022 to ¥251,864
million.
Total current assets increased by ¥3,692 million from December 31, 2022 to ¥134,328 million mainly due toan increase in inventories of ¥3,076 million.
Total non-current assets increased by ¥10,097 million from December 31, 2022 to ¥117,536 million mainly
due to an increase of ¥7,224 million in property, plant and equipment associated with capital investments.
(Liabilities)
Total liabilities as of December 31, 2023 decreased by ¥730 million from December 31, 2022 to ¥56,384
million mainly due to decreases of ¥1,916 million in income taxes payable and ¥1,286 million in notes andaccounts payable – trade while deferred tax liabilities increased by ¥2,620 million.
(Net assets)
Total net assets as of December 31, 2023 increased by ¥14,520 million from December 31, 2022 to ¥195,480
million mainly due to increases of ¥6,079 million in retained earnings and ¥4,479 million in valuation difference
on available-for-sale securities.
As a result, the equity ratio as of December 31, 2023 stood at 72.9%.
(3) Overview of Cash Flows for the Fiscal Year Ended December 31, 2023
(Cash flows from operating activities)
Net cash provided by operating activities during the fiscal year ended December 31, 2023 decreased by ¥1,781
million from a year earlier to ¥17,210 million mainly because cash inflow decreased due to decreases in profit
before income taxes and changes in inventories.
(Cash flows from investing activities)
Net cash used in investing activities was ¥9,378 million, a decrease of ¥3,005 million from a year earlier, mainly
due to purchase of property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities increased by ¥1,234 million from a year earlier to ¥7,376 million mainly
due to dividends paid.
As a result, cash and cash equivalents increased by ¥1,931 million from December 31, 2022 to ¥42,788 million.
(Reference) Cash flow indicators
FY2019FY2020

FY2021

FY2022

FY2023Equity ratio (%)

77.5

75.3

71.7

71.3

72.9

Equity ratio at market value (%)

95.0

149.6

125.7

101.3

149.6

Interest-bearing debt to cash
flow ratio (%)

92.4

49.9

58.4

59.2

64.5

Interest coverage ratio (times)

200.2

377.0

272.3

258.8

210.1

Equity ratio: Equity/Total assets
Equity ratio at market value: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest payment(Note 1) All ratios are calculated based on the financial figures on a consolidated basis.
(Note 2) Market capitalization is calculated based on the number of shares issued and outstanding excluding
treasury shares.
(Note 3) Cash flow is derived from cash flows from operating activities.
(Note 4) Interest-bearing debt includes all liabilities recorded on the consolidated balance sheet that are
subject to interest payment.

-3-(4) Future Outlook
Under the management vision to become “The e-Material Global CompanyTM” contributing to a sustainable
future through chemistry, the Group will promote its business activities. The Electronic Functional Materials
Division will continue to aim at increasing market share of photoresists used in front-end processes ofsemiconductor manufacturing including excimer laser photoresists and Extreme Ultraviolet (EUV) photoresists aswell as expanding sales of high value-added products including materials used in back-end processes ofsemiconductor manufacturing such as packaging photoresists. The High-Purity Chemicals Division will focus on
further improvement of quality and stable supply of chemicals attached to semiconductor photoresists to meetgrowing demand for semiconductor.
The foreign exchange rate is assumed to be $1= ¥135.
<Reference>(Millions of yen, %)Fiscal year ended
December 31, 2023
(Results)

Fiscal year ending
December 31, 2024
(Forecast)Year-on-year

Net sales

162,270

179,200

10.4

Operating income

22,70626,80018.0

Ordinary income

24,26027,700

14.2

Profit attributable toowners of parent

12,712

17,60038.4

2. Basic Policy for Selection of Accounting Standards
The Group has adopted Japanese GAAP.
The Group is currently examining the potential application of International Financial Reporting Standards (IFRS)
in light of the trend in convergence of Japanese GAAP and revisions to IFRS by taking into account the impact of thetransition to IFRS and the response thereto on the management.

-4-3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Millions of yen)

FY12/22(As of December 31, 2022)

FY12/23(As of December 31, 2023)

55,371
911
34,9003,999
11,0847,000
11,9205,535(89)130,636

56,816916
32,982
3,999
11,0607,397
14,624
6,604(74)
134,328

83,665(47,163)
36,502
68,318(59,327)
8,991
26,873(21,306)
5,566
1,060
(246)
813
10,5703,565
66,0101,295

90,161(49,496)
40,66569,382(59,462)
9,920
26,669(20,803)
5,866
759
(316)
442
10,687
5,653
73,235
1,389

16,104
100
12
3,682
1,176
18,0001,063(6)40,133
107,439
238,075

22,774
88
13
4,267
1,299
12,0002,476(7)42,912
117,536
251,864

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Right-of-use assets
Accumulated depreciation
Right-of-use assets, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Long-term time deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

(Millions of yen)

FY12/22(As of December 31, 2022)

FY12/23(As of December 31, 2023)

21,617
－
7,733
3,308
97
3,090

20,331
486
8,004
1,391
193
2,537

214

195

17
4,701
40,781－
5,487
38,627

10,222
1,084
853
80
4,092
16,333
57,115

10,000
3,704
809
81
3,161
17,75656,384

14,64015,303
137,551(11,276)
156,219

14,64015,315
143,630(10,940)
162,646

5,280

9,759

8,877
(630)

11,603(354)

13,52621,007174
11,039180,960
238,075

140
11,684
195,480
251,864

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Accounts payable - other
Income taxes payable
Advances received
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Millions of yen)

FY 12/22

FY 12/23(January 1, 2022 – December 31, 2022) (January 1, 2023 – December 31, 2023)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of investments accounted forusing equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Loss on sale of shares of subsidiaries andassociates
Loss on sale of businesses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent*1, *3*2, *3

175,434
112,319
63,11532,93430,181
150
494

353
599

－

6

280
370
1,295

198
615
1,772

73
326
110
510
30,966

81
69
66
218
24,260

14
243
－
258

220
103
39
363

195
239

－
147

－

837

－
－
435
30,790
7,537
97
7,634
23,155
3,461
19,693

1,720
1
2,706
21,918
5,332
532
5,865
16,053
3,340
12,712*4-7-

162,270
104,319
57,950*2, *335,24322,706*1, *3

(Consolidated Statement of Comprehensive Income)(Millions of yen)

FY 12/22

FY 12/23(January 1, 2022 – December 31, 2022) (January 1, 2023 – December 31, 2023)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-8-

23,155

16,053(1,571)

4,479

3,649
(1,153)923
24,079

3,410
276
8,165
24,21820,226
3,852

20,193
4,024

(3) Consolidated Statement of Changes in Equity
For the fiscal year ended December 31, 2022 (January 1, 2022 – December 31, 2022)(Millions of yen)

Shareholders' equity

Balance at beginning of
periodShare capital

Capital surplus

Retained earnings

Treasury shares

Total
shareholders’equity14,64015,207

124,806(11,818)

142,836

Changes during period
Dividends of surplus(6,948)(6,948)

Profit attributable toowners of parent

19,693

19,693Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity

95

(0)

542

638

－

95

12,745541

13,383

14,64015,303

137,551(11,276)

156,219

Total changes during period
Balance at end of period(0)

Accumulated other comprehensive income
Valuation
Total
Share
Nondifference
Foreign
Remeasurements accumulatedacquisition controllingoncurrencyofotherrightsinterests
available- translation defined benefit comprehensive
for-saleadjustment
plansincomesecurities
Balance at beginning of
period

6,851

5,618

522

12,993215

9,146

Total net
assets

165,190

Changes during period
Dividends of surplus(6,948)

Profit attributable toowners of parent

19,693Purchase of treasury
shares(0)

Disposal of treasury
shares(40)598

Net changes in items
other thanshareholders' equity(1,571)

3,258(1,153)

533

－

1,893

2,426

Total changes during period(1,571)

3,258(1,153)

533

(40)

1,893

15,769Balance at end of period

5,280

8,877

(630)

13,526

174

11,039180,960-9-

For the fiscal year ended December 31, 2023 (January 1, 2023 – December 31, 2023)(Millions of yen)

Shareholders' equity

Balance at beginning of
periodTotal
shareholders’equityShare capital

Capital surplus

Retained earnings

Treasury shares

14,64015,303

137,551(11,276)

156,219

Changes during period
Dividends of surplus(6,633)(6,633)

Profit attributable toowners of parent

12,712

12,712

Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders' equity

12

(2)

338

350

－

12

6,079

335

6,427

14,64015,315

143,630(10,940)

162,646

Total changes during period
Balance at end of period(2)

Accumulated other comprehensive income
Valuation
Total
Share
Nondifference
Foreign
Remeasurements accumulatedacquisition controllingoncurrencyofotherrightsinterests
available- translation defined benefit comprehensive
for-saleadjustment
plansincomesecurities
Balance at beginning of
period

5,280

8,877

(630)

13,526

174

11,039Total net
assets180,960

Changes during period
Dividends of surplus(6,633)

Profit attributable toowners of parent

12,712

Purchase of treasury
shares(2)

Disposal of treasury
shares(34)

316

Net changes in items
other thanshareholders' equity

4,479

2,726

276

7,481

－

645

8,126

Total changes during period

4,479

2,726

276

7,481

(34)

645

14,520

Balance at end of period

9,759

11,603(354)

21,007140

11,684

195,480- 10 -

(4) Consolidated Statement of Cash Flows(Millions of yen)

FY 12/22

FY 12/23(January 1, 2022 – December 31, 2022) (January 1, 2023 – December 31, 2023)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Decrease in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Decrease in provision for bonuses for directors(and other officers)
Increase in retirement benefit asset
Decrease in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange gains
Loss on valuation of derivatives
Share of profit of investments accounted forusing equity method
Gain on sale of non-current assets
Loss on retirement of non-current assets
Gain on sale of investment securities
Loss on sale of shares of subsidiaries andassociates
Loss on sale of businesses
Increase in trade receivables
Increase in inventories
Increase in trade payables
Increase in advances received
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Net decrease in time deposits
Payments into long-term time deposits
Proceeds from withdrawal of long-term time
deposits
Proceeds from sale of businesses
Payments for sale of shares of subsidiaries
resulting in change in scope of consolidation
Other
Net cash used in investing activities- 11 -

30,790
6,762
195
(31)
593

21,918
7,713
－
(10)
(557)

(401)

(18)

(371)
(77)
(644)
73
(1,066)
326

(170)
(74)
(952)
81
(725)
69

－

(6)

(14)
239
(243)

(218)
147
(103)

－

837

－
(858)
(7,510)1,870
66(2,721)
26,975646(73)(8,557)
18,991

1,720(262)(4,887)140752(1,493)23,898951(81)(7,558)17,210(12,000)
12,000(10,698)(12,000)
12,000(14,712)

10

238

(752)
(2,082)371
982(14,000)

(516)
(372)
133
595
(6,000)14,00012,000－682－(2,012)(214)(12,383)586(9,378)(Millions of yen)

FY 12/22

FY 12/23(January 1, 2022 – December 31, 2022) (January 1, 2023 – December 31, 2023)

Cash flows from financing activities
Proceeds from short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash used in financing activities
Effect of exchange rate change on cash and cash
equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -－
3,900(4,289)184769(0)(6,941)(2,160)(71)(8,610)

482
－
(222)
－
316
(2)
(6,628)(1,163)(159)(7,376)

1,389

1,475

(612)
41,469* 40,856

1,931
40,856* 42,788

(5) Notes to Consolidated Financial Statements(Notes Concerning Going Concern Assumption)
Not applicable.
(Changes in Scope of Consolidation or Equity Method Application)
From the fiscal year ended December 31,2023, AIMECHATEC, Ltd. is included in the scope of equity method
application as the Company’s executive officer became an outside director of AIMECHATEC, Ltd.
(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No.31, June 17, 2021, “Implementation Guidance on Accounting Standard for Fair Value
Measurement”), from January 1, 2023, and the new accounting policies stipulated in the “Implementation Guidanceon Accounting Standard for Fair Value Measurement” are applied prospectively pursuant to the transitional treatment
stipulated by Paragraph 27-2 of the “Implementation Guidance on Accounting Standard for Fair Value Measurement.”
The application has no impact on the consolidated financial statements.
(Additional Information)(Transaction to grant the Company’s shares to employees, etc. through a trust)Based on the resolution at the Board of Directors meeting held on August 7, 2019, the Company introduced “TrustType Employee Stock Ownership Plan” (“Plan”) with an aim to enhance the Company’s welfare program as well as
to improve its medium- to long-term corporate value by providing employees with incentives for an increase in stock
prices.
(1) Overview of the transaction
The Plan is an incentive plan for all employees in the “Tokyo Ohka Employees Stockholding Association”(“Stockholding Association”). Under the Plan, the Company sets up the “Tokyo Ohka Employees Stockholding
Association Trust” (“Stockholding Trust”) at a trust bank, and the Stockholding Trust purchases in advance thenumber of the Company’s shares expected to be purchased by the Stockholding Association over five years from thedate the trust is set up and sells the shares to the Stockholding Association every month on a certain date. Any gains
on sale of shares accumulated in the trust upon expiry of the Stockholding Trust will be distributed as residual assets
to those satisfying the beneficiary eligibility requirements. As the Company provides guarantee for the loans payable
made by the Stockholding Trust to purchase the Company’s shares, the Company is liable to pay the outstandingbalance of the loans payable, equivalent to loss on sale of shares accumulated in the Stockholding Trust due to a
decline in stock prices, upon expiry of the Stockholding Trust.
The Plan aims to improve our medium- to long-term corporate value by providing employees with incentives for
an increase in stock prices and also to support employees’ asset building as a measure to enhance our welfare programby promoting purchase and holding of shares through enhancement of the Stockholding Association.
(2) The Company’s shares remaining in the Trust
The Company’s shares remaining in the Trust are recorded as Treasury shares in Net assets at the carrying amountat the Trust (excluding ancillary expenses). The carrying amount and number of treasury shares as of December 31,
2022 and 2023 were ¥643 million and 463 thousand shares and ¥437 million and 315 thousand shares, respectively.
(Note) the Company conducted a 3-for-1 stock split for common shares on January 1, 2024. The number of shares
above reflects the effect of the stock split.
(3) The carrying amount of the loans payable recorded under the gross method
FY12/22¥222 million
FY12/23
Not applicable.

- 13 -

(Consolidated Statement of Income)*1 Inventories as of December 31 are stated at written-down value to reflect a decline in profitability, and the following
loss (gain on reversal of loss) on valuation of inventories is included in cost of sales.
FY12/22(January 1, 2022 – December 31, 2022)

Loss on valuation of inventories

FY12/23(January 1, 2023 – December 31, 2023)¥8 million¥278 million*2 Major components and amounts of selling, general and administrative expenses are as follows.
FY12/22(January 1, 2022 – December 31, 2022)

Storage and transportation costs
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Research supplies expense
Depreciation

FY12/23(January 1, 2023– December 31, 2023)¥4,981 million
8,063
1,605
157
3,858
2,259

¥4,268 million
8,602
1,289
279
5,062
2,622

*3 R&D costs included in general and administrative expenses and manufacturing costs are as follows.
FY12/22(January 1, 2022 – December 31, 2022)

General and administrative expenses
Manufacturing costs
Total R&D costs

FY12/23(January 1, 2023– December 31, 2023)¥10,920 million
118
11,038¥12,495 million
162
12,658*4 The Group recognized impairment losses for the following asset groups.
For the fiscal year ended December 31, 2022 (January 1, 2022 – December 31, 2022)
Location

Use

Type of assets

Aso city, Kumamoto
prefecture

Business assets, etc.
for Material
Business

Koza-gun, Kanagawa
prefecture

Business assets, etc.
for Equipment
Business

Koza-gun, Kanagawa
prefecture

Idle
properties

Machinery, equipment andvehicles, Tools, furniture andfixtures, Construction inprogress
Machinery, equipment andvehicles, Tools, furniture andfixtures, Construction inprogress, Intangible assets
Machinery, equipment andvehicles, Tools, furniture andfixtures

Total

Impairment losses¥81 million

101
12
195

The Group classifies its assets into groups based on the business units used for management accounting purpose tomeasure revenues and expenses. Idle properties (including assets that are substantially in the idle state due to a decline
in operating rates) are individually evaluated. For the fiscal year ended December 31, 2022, the carrying amounts of theabove assets, from which investments are not expected to be recovered, were written down to the respective recoverable
amounts, with the reduced amount of ¥195million recognized as an impairment loss in extraordinary losses. The
breakdown is machinery, equipment and vehicles of ¥102 million, tools, furniture and fixtures of ¥42 million,
construction in progress of ¥48 million, and intangible assets of ¥2 million.
The recoverable amount of the assets is measured by net selling price. Net selling price is calculated based on an
appraisal value, and assets other than land and buildings are considered to have no real value and evaluated at theirmemorandum value.
For the fiscal year ended December 31, 2023 (January 1, 2023 – December 31, 2023)
Not applicable.

- 14 -

(Consolidated Statement of Cash Flows)* Reconciliation between the ending balance of cash and cash equivalents and the balance in the consolidated balance

sheet
FY12/22

FY12/23(January 1, 2022 – December 31, 2022)(January 1, 2023 – December 31, 2023)¥55,371 million
999¥56,816 million
999(15,514)(15,027)

40,85642,788Cash and deposits
Securities
Term deposits with maturities over threemonths (including current portion of
long-term deposits)
Cash and cash equivalents(Segment Information, Etc.)[Segment Information]
The Group segments its business based on products and services, with each business unit developing thecomprehensive strategy on their respective products and services in Japan and overseas and conducting businessactivities.
The Group previously had two reportable segments of the Material Business and the Equipment Businessbut operates the Material Business as a single business segment from the three months ended March 31, 2023.
The Material Business engages in manufacturing and sales of mainly electronic functional materials andhigh-purity chemicals.
This change is a result of a review of segmentation following the transfer of the Equipment Business(excluding certain parts) to AIMECHATEC, Ltd. effective March 1, 2023.
Accordingly, segment information for the fiscal years ended December 31, 2022 and 2023 are omitted.
[Related Information]
Fiscal year ended December 31, 2022 (January 1, 2022 – December 31, 2022)
1. Information by product and service
The disclosure is omitted because the Group is now comprised of a single segment as described in the segment
information section.
2. Information by geographic region(1) Net salesJapan
31,214

Taiwan(Millions of yen)South Korea

67,872

21,864The U.S.
14,617

China
29,888

Other
9,978

Total
175,434

Fiscal year ended December 31, 2023 (January 1, 2023 - December 31, 2023)
1. Information by product and service
The disclosure is omitted as the Group is comprised of a single segment.
2. Information by geographic region(1) Net salesJapan28,295

Taiwan57,112(Millions of yen)South Korea
21,989The U.S.
14,178- 15 -

China
30,574Other
10,119Total
162,270

(Per Share Information)
FY12/22

FY12/23(January 1, 2022 – December 31, 2022) (January 1, 2023 – December 31, 2023)

Net assets per share
Basic earnings per share¥1,404.75¥1,516.99¥163.18¥105.10

Diluted earnings per share¥162.93¥104.97(Notes) 1. The Company conducted a 3-for-1 stock split for common shares on January 1, 2024. “Net assets per
share,” “Basic earnings per share,” and “Diluted earnings per share” are calculated assuming that the stock
split had been conducted on January 1, 2022.
2. Basis for calculation of net assets per share is as follows.
FY12/22(As of December 31, 2022)

FY12/23(As of December 31, 2023)

Total net assets (millions of yen)

180,960

195,480

Amount deducted from net assets (millions of yen)

11,214

11,825(of which, share acquisition rights) (millions of yen)

(174)

(140)

(of which non-controlling interest) (millions of yen)

(11,039)(11,684)

Net assets as of year-end related to common shares
169,745
183,654(millions of yen)
Number of common shares issued and outstanding
127,800
127,800(thousand shares)
Number of treasury shares out of common shares
6,963
6,735
(thousand shares)
Number of common shares at year-end used to120,836
121,064
calculate net assets per share (thousand shares)(Note) The Company’s shares owned by “Tokyo Ohka Employees Stockholding Association Trust” are included
in treasury shares which is excluded from the number of shares issued and outstanding at year-end in
calculating “Net assets per share.” (463 thousand shares and 315 thousand shares as of December 31,
2022 and December 31, 2023, respectively)
3. Basis for calculation of basic and diluted earnings per share is as follows.
FY12/22

FY12/23(January 1, 2022 – December 31, 2022) (January 1, 2023 – December 31, 2023)(1) Basic earnings per share
Profit attributable to owners of parent(millions of yen)Amount not attributable to commonshareholders (millions of yen)
Profit attributable to owners of parent related tocommon shares (millions of yen)
Average number of common shares during theperiod (thousand shares)

19,693

12,712－－

19,693

12,712

120,680

120,955(2) Diluted earnings per share
Adjustment to profit attributable to owners of－－parent (millions of yen)
Increase in number of common shares
186
149(thousand shares)(of which, share acquisition rights)
(186)
(149)
(thousand shares)
Dilutive shares not included in the calculation ofdiluted earnings per share because of their anti－－
dilutive effect(Note) The Company’s shares owned by “Tokyo Ohka Employees Stockholding Association Trust” are included
in treasury shares which is excluded in the calculation of the average number of shares during the period
to calculate “Earnings per share” and “Diluted earnings per share.” (558 thousand shares and 400 thousand
shares for the fiscal years ended December 31, 2022 and 2023, respectively)- 16 -

(Significant Subsequent Event)(Stock split)
The Company resolved at the Board of Directors meeting held on October 6, 2023 to conduct a stock split as detailed
below.
1. Purpose of the stock split
By conducting the stock split to lower the price of share-trading units, we intend to make shares more affordable forinvestors, with a view to improving the liquidity of the Company’s stock and expanding its shareholder base.
2. Outline of the stock split(1) Method of the stock split
With December 31, 2023 as the record date of the stock split (since this day falls on a non-business day of theshareholder registry administrator, the record date in substance is December 29, 2023), each share of common shares
owned by a shareholder whose name appears or is recorded in the shareholder registry as of the end of the record date
was split into three shares.
(2) Increase in the number of shares as a result of the stock split
Total number of issued shares before the stock split:
Increase in the number of shares as a result of the stock split:
Total number of issued shares after the stock split:
Total number of authorized shares after the stock split:(3) Schedule of the stock split
Date of public notice of the record date:
Record date:
Effective date:42,600,000 shares
85,200,000 shares
127,800,000 shares
500,000,000 shares

December 15, 2023
December 31, 2023
January 1, 2024

“Per Share Information” is calculated assuming that the stock split had been conducted on January 1, 2022.

- 17 -