TOKYO OHKA KOGYO CO., LTD.
Business Results― The 1st Half of Fiscal Year ending Dec. 2020―

Aug. 7, 2020
TOKYO OHKA KOGYO CO., LTD.

© 2020 TOKYO OHKA KOGYO CO., LTD.

Contents

1. Consolidated Business Results forthe 1st Half of FY2020 (2020.1-2020.6)

p.02

2. Consolidated Performance Forecasts for
FY2020 (2020.1-2020.12)

p.13© 2020 TOKYO OHKA KOGYO CO., LTD.

Consolidated Business Results
for the 1st Half of FY2020© 2020 TOKYO OHKA KOGYO CO., LTD.

Summary03（Millions of yen）

FY2019/121H

FY2020/12 1H

Change%Net sales

48,932 57,203+8,271+16.9

Operating income4,428

6,664+2,236+50.5

Ordinary income

4,407

6,785+2,378+54.0

Profit attributableto owners of parent

2,924

4,639+1,715+58.7■Average exchange rate (US$)︓¥109.0／$（FY2019/12 1H）⇒ ¥107.1／$（FY2020/12 1H)■Net sales: Increased 16.9% year on year mainly due to increased sales of electronic
functional materials for Taiwan and South Korea supported by strong demandfor semiconductors■Operating income︓Increased 50.5% year on year due to an increase in net sales■Profit attributable to owners of parent︓
Increased 58.7% year on year due to an increase in operating income© 2020 TOKYO OHKA KOGYO CO., LTD.

Non-operating Expenses or Income/Extraordinary Losses or Income

04（Millions of yen）

FY2019/121H

FY2020/121H(20)+121+142

Interest and dividend income+224+260+35(Foreign exchange related losses/gains)

(186)
(471)
+284（30）(281)+250（155)+189(34)

Extraordinary losses or Income(27)+138+166

Gain on sale of fixed assets+19+150+131

Loss on sales and retirement ofnoncurrent assets

(46)

(10)

+36

Non-operating Expenses or income

Foreign exchange (loss) gain
Gain(Loss) on valuation of derivatives

YoY© 2020 TOKYO OHKA KOGYO CO., LTD.

Results by Business Segment

05（Millions of yen）

FY2020/12 1H

FY2019/121H

Change%48,93257,203+8,271+16.9

47,791

55,964+8,172+17.1

Electronic
functional materials

27,84732,095+4,247+15.3

High purity
chemicals

19,903

23,816+3,912+19.7

40

52+12+30.1

1,141

1,239+98+8.6

4,428

6,664+2,236+50.5

Material business

6,423

9,190+2,766+43.1

Equipment business

(270)

(294)

(23)

－(1,724)(2,231)(506)－Net sales
Material business

OtherEquipment business
Operating income

Eliminations andcorporate© 2020 TOKYO OHKA KOGYO CO., LTD.

Breakdown of the Charge in Operating Income(Material Business)06

1st Half of FY2019/12 Result v.s. 1st Half of FY2020/12 Result
Impact of exchange rate changes
anddiscounted selling prices(¥0.5billions)

Expenses Decrease+¥0.1billions

The impact of the amendment
to US GAAP Note(¥0.4billions)¥9.2

Improvement inproduct mix＋¥3.6 billions

billions¥6.4billions

1st Half ofFY2019/12Result

1st Half ofFY2020/12Result+¥2.8billions(Note) An overseas consolidated subsidiary adopting US GAAP applied ASC 606 “Revenue from Contracts withCustomers” effective January 1, 2019, which did not have any impact on the results for the 1st half of the© 2020 TOKYO OHKA KOGYO CO., LTD.
fiscal year ended December 31, 2019.

Sales Breakdown of Material BusinessASC 606
Pro forma figures without
the application of ASC 606

Net Sales（Millions of yen）
30,00025,00020,00023,480
24
9,906

07

24,311
15
9,997

25,44525,74910

1310,51910,25028,66822

27,29629

12,172

11,64415,00010,0005,000

13,54914,29814,915

15,485

15,622

16,473

19/12Q1

19/12Q2

19/12Q3

19/12Q4

20/12Q1

20/12Q20
Electronic functional materials

High purity chemicals

Other

Note : An overseas consolidated subsidiary adopting US GAAP applied ASC 606 “Revenue from Contracts withCustomers” effective January 1, 2019.
© 2020 TOKYO OHKA KOGYO CO., LTD.

Electronic Functional Materials Division
Sales Composition of Electronic
Functional Materials by Type
Other
High-density 8%
integration*
17%
LCD
10%

Sales Composition of Semiconductor
Photoresist by Region

Semiconductor
Photoresist

g+i
15%

Other23%ArF

Other

High-density
integration*
18%
LCD
8%

* EUV is included in others.

Japan
25%

*Sales compositionof semiconductor photoresist
by region includes EUV.

FY2019/12
1st Half
North America
Result13%
Korea,
Taiwan39%

FY2019/12
KrF
1st Half
28%
Result22%

089%

Semiconductor
Photoresist

g+i
14%

FY2020/12
1st Half
Result23%

25%
FY2020/12
1st Half
Result

KrF
30%

Korea,
TaiwanArF
21%* High-density integration︓
Resist for Packaging,
MEMS Materials

Japan

Other

North
America
12%40%※Regional segmentation has been changed from current term. “Other”
comprises Europe and Asia including China but excluding Korea andTaiwan.

© 2020 TOKYO OHKA KOGYO CO., LTD.

Equipment Business09

Net sales/Order backlog（Millions of yen）
Net sales

3,000

Order backlog
2,692

2,500
2,000
1,500

1,239

1,141 1,224

1,000

632818

5000(Millions of yen）

2019/12 1H

2019/12 2H

2019/12 1HYear-endorder backlog

2,757934814© 2020 TOKYO OHKA KOGYO CO., LTD.

Capital Investments/Depreciation/R&D

10(Millions of yen)

FY2020/12 1H

FY2019/121H

Change%Capital Investments

9,068

2,662(6,405)(70.6)

Depreciation

3,546

3,702+155+4.4

R&D

4,383

4,847+464+10.6© 2020 TOKYO OHKA KOGYO CO., LTD.

Balance Sheets

11（Millions of yen）
As ofJune 30,2020

v.s.
December31, 2019

97,655+4,373

Cash and deposits

51,239+4,833

Notes and accounts
receivable

23,679(208)

Inventories

17,755+315

53,399(1,657)590(71)

Investments and other assets

36,811(673)

Current Liabilities

20,846+530

11,493+1,14814,562+125

Total net asset

153,048+1,314

Total asset

188,456+1,970

Current Assets

Property, plant and equipment
Intangible assets

Notes and accounts payable
Long-Term Liabilities

Buildings and structures(364)
Machinery+840
Furniture and fixtures(362)
Land(277)
Construction in progress(1,490)Long-term debt

(152)

Retained earnings+2,106
Treasury stock+399
Unrealized loss onavailable-for-salesecurities(502)
Foreign currencytranslation adjustments(564)© 2020 TOKYO OHKA KOGYO CO., LTD.

Cash Flows

12（Millions of yen）
FY2019/12
1H

FY2020/12
1H

Cash flows from operating activities+5,205+11,461

Income before income taxes andminority interests+4,379+6,924

Depreciation+3,546+3,702

Decrease (increase) in trade notes
and accounts receivable+1,307+156

Decrease (increase) in inventories(1,707)(485)

Decrease (increase) in trade notes
and accounts payable(1,648)+1,058+265(33)(1,158)(781)

Cash flows from investing activities(5,873)+11,750

Cash flows from financing activities(3,247)(3,414)

(699)

(381)

(4,615)+19,415

Increase (decrease) in advances
received
Income taxes paid

Translation adjustments
Net increase (decrease) in cash andcash equivalentsMajor breakdown
Refund of long-term deposits+14,000
Purchases of property,
plant and equipment(3,197)
Major breakdown
Proceeds from salesof treasury stock+153
Dividends paid(incl. minority shareholders)(3,377)© 2020 TOKYO OHKA KOGYO CO., LTD.

Consolidated Performance
Forecasts for FY2020(2020.1-2020.12)© 2020 TOKYO OHKA KOGYO CO., LTD.

Earnings Forecasts (Full-year)

14（Millions of yen）

FY2020/12 Forecasts

FY2019/12
Net sales

Change%102,820

111,700+8,879+8.6

Operating income

9,546

13,800+4,253+44.6

Ordinary income

9,707

14,100+4,392+45.3

Profit attributable toowners of parent

5,410

9,600+4,189+77.4■Exchange rate assumptions（US$）︓¥108.1／$（2019/12）⇒ ¥ 105.0 ／$（2020/12 2H）■Net sales :Forecast to increase 8.6% year on year while incorporating the slowdown in thesemiconductor market■Operating income :Forecast to increase 44.6% year on year with a continued upward trend in profit in 2H
despite an increase in corporate expenses■Profit attributable to owners of parent :Forecast to increase 77.4% year on year due to an increase in operating income as well asa rebound from declined profit attributable to owners of the parent in FY2019/12© 2020 TOKYO OHKA KOGYO CO., LTD.

Performance Forecasts by Business Segment

15（Millions of yen)

FY2019/12

FY2020/12 Forecasts
Change%102,820

111,700+8,879+8.6

98,986

108,700+9,713+9.8

Electronic functional
materials

58,24962,700+4,450+7.6

High purity chemicals

40,67445,900+5,225

+12.8

3,833

3,000(833)(21.7)

9,546

13,800+4,253+44.6

13,462

18,700+5,237+38.9(286)

(300)

(13)

－(3,628)(4,600)(971)－Net sales
Material business

Equipment business
Operating income
Material business
Equipment businessEliminations and corporate© 2020 TOKYO OHKA KOGYO CO., LTD.

Capital Investments/Depreciation/R&D

16(Millions of yen)

FY2019/12

FY2020/12 ForecastChange%

14,1836,800(7,383)(52.1)

Depreciation

7,216

6,700(516)

(7.2)

R&D

8,879

9,600+720+8.1

Capital Investments© 2020 TOKYO OHKA KOGYO CO., LTD.

Breakdown of the Charge in Operating Income(Material Business)

17

FY2019/12 Result v.s. FY2020/12 Forecast
Impact of exchange rate changes
anddiscounted selling prices(¥1.4billions)
Expenses Decrease+¥1.3billions¥13.5

Improvement inproduct mix＋¥5.3billions¥18.7
billions

billions

FY2019/12Result+¥5.2billions

FY2020/12Forecast© 2020 TOKYO OHKA KOGYO CO., LTD.

Sales Breakdown of Material Business (Forecast)18
Net Sales（Millions of yen）

ASC 606
Pro forma figures without
the application of ASC 606

60,00052,934

49,68650,00041

53

40,00047,791
40

21,914

21,81819,90352

52,73547

23,81622,08355,964

51,19423
20,77030,00020,00030,97827,81410,0000

18/12 1H

18/12 2H

27,84730,40132,09530,604

19/12 1H

19/12 2H

20/12 1H

20/12 2HElectronic Functional Materials

High purity chemicals

Forecast

Other

Note : An overseas consolidated subsidiary adopting US GAAP applied ASC 606 “Revenue from Contracts withCustomers” effective January 1, 2019.
© 2020 TOKYO OHKA KOGYO CO., LTD.

Electronic Functional Materials Division
Sales Composition of Electronic
Functional Materials by Type
Other
High-density 9%

14%integration*

17%

LCD
10%

FY2019/12
ResultSales Composition of Semiconductor
Photoresist by Region

Semiconductor
Photoresist

g+i

Other

FY2019/1228%

ResultSemiconductor
Photoresist

Korea,Taiwan
39%

Other
High-density
integration*18%

LCD

9% g+i14%

FY2020/12
Forecast

7%* High-density integration︓
Resist for Packaging,
MEMS Materials

24%

KrF

ArF

* EUV is included in others.

Japan

24%

22%

19

*Sales compositionof semiconductor photoresist
by region includes EUV.

North America
13%

Other
25%

KrF
30%

ArF

22%

※Regional segmentation has been changed from current term. “Other”
comprises Europe and Asia including China but excluding Korea andTaiwan.

Japan
25%

FY2020/12
ForecastKorea,
Taiwan

NorthAmerica
12%

38%

© 2020 TOKYO OHKA KOGYO CO., LTD.

Appendix︓
20
Sales Breakdown of Material Business by Region(Forecast)
ASC 606
Pro forma figures without
the application of ASC 606

Net Sales（Millions of yen）
60,00049,68650,000
7,792

8,056

25,831

51,19447,791
7,712

40,00030,00055,96452,934

27,16324,0688,600

26,544

10,021

29,161

52,735
9,079

26,2380

Korea,
TaiwanNorth

20,00010,000

Other

4,996

5,704

11,066
18/12 1H

5,167

5,121

4,523

4,932

12,01010,88911,526

11,84812,251

18/12 2H

19/12 1H

19/12 2H

20/12 1H

20/12 2H

AmericaJapan

Forecast
Note : An overseas consolidated subsidiary adopting US GAAP applied ASC 606 “Revenue from Contracts
with Customers” effective January 1, 2019.
Note︓“Other” comprises Europe and Asia including China but excluding© 2020 TOKYO OHKA KOGYO CO., LTD.
Korea and Taiwan.

www.tok.co.jp/eng(Note)
This presentation material contains forward-looking statements that
describe future prospects of TOKYO OHKA KOGYO CO., LTD. (theCompany) in terms of business planning, earnings and management
strategies. Such statements are based on management’s judgement,
derived from information available to it at the time such information
was prepared. Readers are cautioned not to rely solely on theseforward-looking statements, as actual results and strategies may
differ substantially according to changes in the Company’s businessenvironment.

© 2020 TOKYO OHKA KOGYO CO., LTD.

Appendix①︓Progress toward the Medium-Term Plan
Targets (Performance Targets)
Net sales

22

Operating income/ROE（Billions of yen）

（Billions of yen）

20.5
～

125.0

4.7%

15.0

4.2%

～

120.0

6.5%

145.0
～

～

130.0

ROE︓Over 8.0%

15.0

13.5

105.2 102.8

111.7

13.8

10.5

9.5

FY18/12 FY19/12 FY20/12 FY20/12 FY21/12FY18/12 FY19/12 FY20/12 FY20/12 FY21/12

ResultResultResult Forecast Target

TargetResult Forecast Target

TargetNote︓Targets for FY2020/12 and FY2021/12 are as of February 14, 2019, the date of theannouncement of the “TOK Medium-Term Plan 2021.”
Note︓Forecasts for FY2020/12 is as of August 6, 2020, the date of announcement of the financial
results for the 1st Half of Fiscal ending December 31, 2020.
© 2020 TOKYO OHKA KOGYO CO., LTD.

Appendix②-1︓Progress toward the Medium-Term Plan
Targets （Business Segment）
Cutting-edge（EUV/ArF）

23

KrF

（※）Cutting-edge photoresists = EUV＋ArF

FY18/12→FY21/12

Nearly 1.7 times
FY18/12→FY21/12

Nearly 1.4 times
FY18/12= 100

FY18/12= 100

FY18/12FY19/12

FY20/12

FY21/12

FY18/12FY19/12

FY20/12

FY21/12ResultResultForecast

TargetResultResultForecast

TargetNote︓Targets for FY2020/12 and FY2021/12 are as of February 14, 2019, the date of theannouncement of the “TOK Medium-Term Plan 2021.”
Note︓Forecasts for FY2020/12 is as of August 6, 2020, the date of announcement of the financial
results for the 1st Half of Fiscal ending December 31, 2020.
© 2020 TOKYO OHKA KOGYO CO., LTD.

Appendix②-2︓Progress toward the Medium-Term Plan
Targets （Business Segment）
High-density Integration
Materials

24

High-purity chemicals
FY18/12→FY21/12

Nearly 1.4 times

FY18/12→FY21/12

Just over 1.1 times

18/12
＝100

18/12
＝100

MEMS
materials

Packagingmaterials

FY18/12FY19/12

FY20/12

FY21/12

FY18/12FY19/12

FY20/12

FY21/12ResultResultForecast

TargetResultResultForecast

TargetNote︓Targets for FY2020/12 and FY2021/12 are as of February 14, 2019, the date of theannouncement of the “TOK Medium-Term Plan 2021.”
Note︓Forecasts for FY2020/12 is as of August 6, 2020, the date of announcement of the financial
results for the 1st Half of Fiscal ending December 31, 2020.
© 2020 TOKYO OHKA KOGYO CO., LTD.