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.

Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending December 31, 2023 [J-GAAP]
August 8, 2023
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 to file quarterly securities report:
August 9, 2023
Scheduled date to commence dividend payments:
September 6, 2023
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 2023 (January 1,
2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year-on-year.)Net salesFirst six months ended
June 30, 2023
June 30, 2022

Operating income

Millions of yen% Millions of yen

77,67484,711(Note) Comprehensive income:

(8.3)
30.7

Profit attributable toowners of parent

Ordinary income% Millions of yen

10,904
14,810(26.4)
54.7

First six months ended June 30, 2023
First six months ended June 30, 2022

% Millions of yen

11,806
15,353(23.1)
52.7

%

5,355
9,723

(44.9)
51.9¥14,033 million [- 9.7%]¥15,545 million [45.2%]

Basic earnings per share Diluted earnings per shareFirst six months ended
June 30, 2023
June 30, 2022

Yen

Yen

132.89241.92132.71241.52(2) Consolidated Financial Position
Total assets
As ofJune 30, 2023
December 31, 2022
(Reference)

Equity:Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

247,380
238,075

190,732
180,960

72.1
71.3

4,420.47
4,214.27

As of June 30, 2023: ¥178,283 million

As of December 31, 2022: ¥169,745 million

2. Cash Dividends
First quarter-end

Annual dividends per share
Second quarter-end Third quarter-end Fiscal year-end

Yen

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

Yen

-

78.00
82.00

Yen

Total

Yen

Yen

-

82.00

160.00-82.00

164.00(Note) Revisions to the most recently disclosed dividend forecasts: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 2023 (January 1, 2023 to
December 31, 2023)(% indicates the rate of increase/decrease against the same period of the previous year)
Net sales
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

164,000(6.5)

23,500(22.1)

25,000(19.3)

13,500(31.5)

334.74(Note) Revisions to the most recently disclosed earnings forecasts: None
There has been no change in the earnings forecasts announced on July 28, 2023.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation): None
(2) Application of special accounting treatment in preparing the quarterly consolidated financial statements: None
(3) 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 “2. Quarterly Consolidated Financial Statements and Major Notes, (4) Notes to Quarterly Consolidated Financial
Statements (Changes in Accounting Policies)” on page 8.

(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023
As of December 31, 2022

(ii)

42,600,000 shares
42,600,000 shares

Number of treasury shares at the end of the period
As of June 30, 2023
As of December 31, 2022

2,268,713 shares
2,321,258 shares(iii) Average number of shares outstanding during the period
First six months ended June 30, 2023
First six months ended June 30, 2022

40,298,233 shares
40,193,516 shares* The Financial Results report is outside the scope of a quarterly review by certified public accountants or an audit firm.
* Explanation of the proper use of earnings forecasts and other special notes
The earnings forecasts stated in this report are based on the information available as of the date of the release of thisreport, and actual results may differ from these forecasts due to a variety of factors.

○Table of contents of the attached document
1. Qualitative Information on Consolidated Financial Results for the First Six Months of the Fiscal Year Ending
December 2023··················································································································· 2(1) Explanation about Operating Results··················································································· 2(2) Explanation about Financial Position ·················································································· 2(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts ··············· 2
2. Quarterly Consolidated Financial Statements and Major Notes ······················································· 3(1) Quarterly Consolidated Balance Sheet ················································································· 3(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ···· 5
Quarterly Consolidated Statement of Income
Quarterly Consolidated Statement of Income for the First Six Months ········································ 5
Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Comprehensive Income for the First Six Months ···················· 6(3) Quarterly Consolidated Statement of Cash Flows ···································································7(4) Notes to Quarterly Consolidated Financial Statements ······························································ 8(Notes Concerning Going Concern Assumption) ···································································· 8(Significant Changes in Shareholders’ Equity) ······································································ 8(Changes in Accounting Policies) ······················································································· 8(Additional Information) ································································································· 8(Revenue Recognition) ··································································································· 9(Segment Information) ······································································································ 9-1-1. Qualitative Information on Consolidated Financial Results for the First Six Months of the Fiscal YearEnding December 2023
(1) Explanation about Operating Results
During the six months ended June, 2023, the global economy was on a gradual recovery trend overall, despite
factors such as prolonged U.S.-China trade friction and the situation in Russia and Ukraine.
Under these circumstances, the Group has made an all-out effort to promote the company-wide strategies set out
in the “tok Medium-Term Plan 2024,” a three-year medium-term plan ending in FY2024.
In the Group’s business, net sales decreased year on year despite a solid growth in automotive semiconductor
due to a decrease in demand for PCs and smartphones, etc., resulting in a decline in sales of electronic functional
materials and high-purity chemicals.
As a result, for the six months ended June 30, 2023, the Group recorded net sales of ¥77,674 million (down 8.3%
year-on-year), operating income of ¥10,904 million (down 26.4% year-on-year), ordinary income of ¥11,806 million(down 23.1% year-on-year) and profit attributable to owners of parent of ¥5,355 million (down 44.9% year-on-year).
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 three months ended March 31, 2023. Accordingly,
operating results by business segment is not disclosed, but net sales by division are as follows.
Net sales in the Electronic Functional Materials Division amounted to ¥41,848 million (down 7.3% year-on-year),in the High-Purity Chemicals Division amounted to ¥34,865 million (down 6.3% year-on-year) and in other divisions
amounted to ¥959 million (down 59.1% year-on-year).

(2) Explanation about Financial Position(Assets)
Total assets as of June 30, 2023 increased by ¥9,304 million from December 31, 2022 to ¥247,380 million.
Total current assets decreased by ¥201 million mainly due to a decrease in notes and accounts receivable - tradeof ¥4,376 million, despite an increase of ¥4,248 million in inventories.
Total non-current assets increased by ¥9,506 million mainly because property, plant and equipment
increased by ¥3,589 million due to capital investments and investments and other assets increased by ¥5,832
million due to an increase in investment securities caused by a rise in stock prices.
(Liabilities)
Total liabilities as of June 30, 2023 decreased by ¥467 million from December 31, 2022 to ¥56,648 million mainly
because current liabilities decreased by ¥2,686 million due to a decrease in income taxes payable despite anincrease in non-current liabilities of ¥2,219 million due to an increase in deferred tax liabilities.
(Net assets)
Total net assets as of June 30, 2023 increased by ¥9,772 million from December 31, 2022 to ¥190,732 million
mainly due to securing of profit attributable to owners of parent of ¥5,355 million and increases in valuationdifference on available-for-sale securities of ¥3,249 million and foreign currency translation adjustment of¥3,033 million due to a weak yen despite payments of the year-end dividend of ¥3,315 million.
As a result, the equity ratio as of June 30, 2023 stood at 72.1%.
(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts
There has been no change in the earnings forecasts announced in “Notice on Revisions of Forecasts” dated July28, 2023.
The foreign exchange rate is assumed to be $1=¥135.
In the event that we need to revise, we will disclose promptly.

-2-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)

FY12/22(As of December 31, 2022)

Second quarter of FY12/23(As of June 30, 2023)

55,37135,812
3,999
11,0847,000
11,9205,535(89)130,636

55,99331,435
3,999
10,701
8,686
14,8664,815(64)130,434

36,50229,50766,010
1,295

39,08030,51869,5991,380

3,682
18,00018,457(6)
40,133
107,439
238,075

3,707
18,00024,265(6)
45,965
116,945
247,380

AssetsCurrent assets
Cash and deposits
Notes and 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, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Retirement benefit asset
Long-term time deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-3-

(Millions of yen)

FY12/22(As of December 31, 2022)

Second quarter of FY12/23(As of June 30, 2023)

21,617
－
3,308
3,090
12,76540,781

20,653
497
1,920
2,582
12,44038,094

10,222853
5,257
16,333
57,115

10,018839
7,695
18,55356,648

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

14,64015,315
139,591(11,037)
158,510

5,280

8,529

8,877
(630)

11,910(666)

13,526

19,772

174
11,039180,960
238,075140
12,308
190,732
247,380

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
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-4-(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Quarterly Consolidated Statement of Income for the First Six Months)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
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
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of businesses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit attributable toProfit attributable to non-controlling interests
Profit attributable to owners of parent

First six months ofFirst six months of
FY 12/22
FY 12/23(January 1, 2022 – June 30, 2022) (January 1, 2023 – June 30, 2023)
84,711
77,67454,22849,431
30,482
28,242
15,671
17,33814,81010,904

-5-

61
254
553
131
1,000

151
282
370
236
1,040

36
328
92
457
15,353

38
67
32
138
11,806

－
－
－

219
44
264

89
－
0
89
15,264
3,702
416
4,118
11,146
1,422
9,723

47
1,720
1
1,768
10,302
2,733
492
3,225
7,076
1,721
5,355

(Quarterly Consolidated Statement of Comprehensive Income)(Quarterly Consolidated Statement of Comprehensive Income for the First Six Months)(Millions of yen)

Profit attributable to owners of parent
Other 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 toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

First six months ofFirst six months of
FY 12/22
FY 12/23(January 1, 2022 – June 30, 2022) (January 1, 2023 – June 30, 2023)
11,1467,076-6-(1,314)

3,249

5,804
(90)
4,399
15,545

3,743
(35)
6,957
14,033

13,193

11,602

2,352

2,431

(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)First six months ofFirst six months of
FY 12/22
FY 12/23(January 1, 2022 – June 30, 2022) (January 1, 2023 – June 30, 2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of derivatives
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sale of businesses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Other
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of investment securities
Purchase of intangible assets
Net decrease (increase) in time deposits
Payments into long-term time deposits
Proceeds from withdrawal of long-term time
deposits
Proceeds from sale of businesses
Other
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Proceeds from short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from sale of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-7-15,264
3,152

10,302
3,786

(35)

(21)

235
(182)
3
(315)
35
(1,441)328－
89－(1,516)(2,509)1,921
64(1,464)
13,630319(35)(4,726)

(520)
(58)
(48)
(433)
38
761
67
(218)
47
1,720
4,127
(5,608)(2,329)1,034
49
12,695432(38)(4,102)

9,187

8,987

(6,000)6,000(4,304)(6,000)6,000(7,452)

－

237

－
(380)
956
(7,000)

(153)
(274)
(214)
(6,000)10,000

7,000

－
(59)

682
693

(788)

(5,481)－
3,900(4,094)574(3,789)(2,160)
(94)

463
－
(203)
314
(3,323)(1,163)(86)(5,664)(3,998)

2,498

1,780

5,232
41,46946,702

1,288
40,85642,145

(4) Notes to Quarterly Consolidated Financial Statements(Notes Concerning Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(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 Statement 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 quarterly 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“Trust-Type Employee Stock Ownership Plan” (“Plan”) with an aim to enhance the Company’s welfare program aswell as to improve its medium- to long-term corporate value by providing employees with incentives for an increasein 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 Employee 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 June 30, 2023 were ¥643 million and 154 thousand shares and ¥536 million and 128 thousand shares,
respectively.
(3) The carrying amount of the loans payable recorded under the gross method
FY12/22¥222 million
First six months of FY12/23¥18 million-8-

(Revenue Recognition)
Information on the breakdown of revenue arising from contracts with customers
The Group operates a single business segment, and the information on the breakdown of revenue arising fromcontracts with customers is as follows.
Previously, the information on the breakdown of revenue arising from contracts with customers was classified into
two reportable segments of “Material Business” and “Equipment Business,” but we have changed the classification as
follows from the three months ended March 31, 2023 following the transfer of “Equipment Business” (excluding
certain parts).
As a result of this change, the information on the breakdown of revenue arising from contracts with customers forthe six months ended June 30, 2022 was also shown under the new classification.
(Millions of yen)

Electronic functional materials
High-purity chemicals
Other
Revenue from contracts with customers
Other revenue
Net sales to customers

First six months of
FY 12/22(January 1, 2022 – June 30, 2022)
45,15337,213
2,343
84,711－
84,711First six months of
FY 12/23(January 1, 2023 – June 30, 2023)
41,84834,865959
77,674－
77,674(Segment Information)
I First six months of the fiscal year ended December 2022 (January 1, 2022 – June 30, 2022)
1. Information about net sales, income/loss for each reportable segment
Please refer to “II First six months of the fiscal year ending December 2023, 2. Changes, etc. inreportable segments.”
Ⅱ

First six months of the fiscal year ending December 2023 (January 1, 2023 – June 30, 2023)
1. Information about net sales, income/loss for each reportable segment
The disclosure is omitted as the Company operates a single business segment.
2. Changes, etc. in reportable segments
Previously, the Group had two reportable segments of “Material Business” and “Equipment Business,”but it operates the Material Business as a single business segment from the three months ended March 31,
2023.
The change was made based on the review of the segmentation conducted after the Company’s
Equipment Business (excluding certain parts) was succeeded to our wholly owned subsidiary Process
Equipment Business Split Preparatory Co., Ltd. (“Split Preparatory Company”) through an absorptiontype company split and the shares of the Split Preparatory Company were transferred to AIMECHATEC,Ltd. effective March 1, 2023.
As a result of this change, the disclosure of segment information for the six months ended June 30,
2022 and 2023 is omitted.

-9-