Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

May 27, 2024
Ishihara Sangyo Kaisha, Ltd.

1• Medium-term Business Plan Vision 2030 Stage II• Note concerning forward-looking statements

This presentation material contains forecasts based on future assumptions, outlooks, and plans that were current as of the time of
their announcement. Actual performance may differ materially from these forecasts due to risks and uncertainties associated withfactors including economic conditions, demand trends, competitive conditions, and exchange rate fluctuations in Japan and overseas.
Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

2

Review of Vision 2030 Stage I

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3

Summary of FY2023 financial results(100 million yen)

FY2023
Forecast(November 2023)

Difference

2022 Results

2023 Results

Increase/
Decrease

1,312

1,384

72

1,380

4

Ordinary
income

86

114

28

100

14

103

148

45

110

38

Dividends(yen/share)

69

79

10

80

△0

42

70

28

60

10

Net sales

OperatingincomeNet income

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4

Review of Vision 2030 Stage I
Group-wide net sales and operating income

Operating income and operating margin trends

Net sales trends• Net sales increased due to product price revisions, thedepreciation of the yen, increased agrochemical sales in
Brazil, and the sales of new herbicides in the US.

1,109

1,384

1,312

(100 million yen)

1,250

180
160
140
120
100

• Income from Biosciences business increased along with sales.
• Titanium dioxide sales income decreased as the market
declined in the latter half of FY2022, resulting in reduced
profits thereafter.
（%）(100 million yen)

13.3%

10.4%

115

80
60

86

114
6.6%

166

8.3%

2022 Results

2023 Results

Net sales

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

2023 Plan

10.0%
6.0%
4.0%
2.0%

20
2021 Results

12.0%
8.0%

40
0

14.0%

2021 Results

2022 Results

Operating income

2023 Results

Operating margin

2023 Plan

0.0%

5

Review of Vision 2030 Stage I
Group-wide operating income• While we managed to offset the increased manufacturing costs stemming from rising raw material and fuel costthrough price adjustments and currency effects, operating income fell short of our plan due to lower-than-expectedsales volume and increased sales and administrative expenses.

Sales price

121

166

Sales volume△41

2023 Plan
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(100 million yen)Exchange
rate effects

52

Production
costs

△154

Selling,
general andadministrative
costs

△29

Others△01142023 Results
6Analysis of differences in operating income
by business segment (FY2023 Plan vs. FY2023 Results)

Healthcare business

Biosciences business• Despite falling short of the sales volume target, we nearly
achieved our goals due to the depreciation of the yen.

• Targets were not met due to the delayed launch of theanimal health product Panoquell™ in the US.

(10.6 billion yen income targeted in medium-term business plan ⇒Recorded 10.3 billion yen, falling 0.2 billion yen short of plan)
Exchange
rate effects

106

0

Sales
volume12(100 million yen)(100 million yen)

63

Sales
price

(0.6 billion yen income targeted in plan ⇒ Recorded 0.7 billion loss,
falling 1.3 billion short of plan)

Production
costs

△33

△18

2023 Plan

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6

OthersSelling,
general and △2
administrative
costs

103

△24

0

Sales
price
Sales
volume△102023 Results

2023 Plan

1△7

Exchange
rate effects

3

Production
costs

Others△2

Selling,
general andadministrative
costs

△5

0

△7

2023 Results
7Analysis of differences in operating income
by business unit (FY2023 Plan vs. FY2023 Results)
Functional materials

Titanium dioxide and other inorganic chemicals• Due to the market slowdown, price revisions wereinsufficient to fully offset the increase in raw material
and fuel cost.

• Medium-term business plan targets were not achieved due
to a downturn in the electronic components market and a
failure to expand sales of electrically conductive materials
in Japan and overseas.

(1.5 billion yen income targeted in medium-term business plan ⇒Recorded 1.1 billion loss, falling 2.6 billion short of plan)(3.8 billion yen income targeted in plan ⇒ Recorded 2.6 billion
income, falling 1.1 billion short of plan)
Exchange
Sales rate effects
price
0

38

22

Sales
volume△11086Selling,
general andadministrative
costs Others△23

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6(100 million yen)

Production
costs

2023 Plan

Sales
price

2

0

(100 million yen)Exchange
rate effects

△7

△14

26
0
2023 Results

15

Sales
volume2023 Plan△3△7

Selling,
general andadministrative
costs Others
Production
costs

△96

△2

2

△11

2023 Results
8

Review of Vision 2030 Stage I Resultsof the priority measures• In Stage II, we will further strengthen the business foundation and reform our business structure.
Note: Text in “ ” indicates the priority measures defined for Stage I

Results• “The use of multiple agrochemical distributor” and “the maintenance of agrochemical registrations” helped
Organic
achieve the sales targets of agrochemicals.
chemicals • Finalized the construction plan for Technology Research Center, Hyogo-Ono to “refine and pass on chemical synthesis
technologies.”
Inorganic
chemicals• To “expand sales of high-purity materials for components,” we established a joint venture company with
Murata Manufacturing Co., Ltd. and finalized the plant construction plan.
• We successfully achieved “waste reduction at the Yokkaichi Plant”. “Creating a roadmap toward carbon neutrality”.

IssuesGroupwide• To achieve ““management from the perspective of ESG and the SDGs,” we have implemented an organizational transformation
under the leadership of the Sustainability Promotion Committee.
• We successfully achieved “strengthening shareholder return ” with a payout ratio of 30%
and a cumulative shareholder return of 7.7 billion yen. Further enhancement will be pursued in Stage II.

Groupwide• “Strengthening of the ability to create new businesses and products” is still ongoing.
We will pursue the enhancement of R&D organization.
• To achieve “exhaustive capital cost management,” we will establish mechanisms and structures for ROIC-focused management.

Organic
chemicals• A new subcontractor plant in India has started operation to achieve “low-cost production of active agrochemical ingredients,”
but the introduction of the new production method is behind schedule.
• To achieve the “global roll-out of the anti-inflammatory drug for acute phase of pancreatitis in dogs,” a sales partnershipwith Ceva Santé Animale S.A. was concluded but the sales plan was behind schedule.

Inorganic • “Increasing the sales ratio for highly functional, high-value-added products” was not achieved.
We are steadfastly implementing the structural reform of the inorganic chemicals business.
chemicals• “Accelerating development of new products that will serve as drivers of further growth” was behind schedule.

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9

Review of Vision 2030 Stage I
Trends for business indicators• Operating income fell short due to the rise in raw material and fuel cost.
• Interest-bearing debt increased due to investment in equipment at MF Material Co., Ltd.’s second plant at Nobeoka.

Net income per share (yen)Net assets balance(100 million yen)2021 Results

2022 Results

292.5

175.7

918

974

504

560

14％

7％

Interest-bearing debt
balance (100 million yen)
Return on equity (ROE)
Operating margin

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10％

7％

2023 Results

209.2

2023 Plan
310.3△101.0

414

289

1,061

1,003

8％

13％

703
8％

Differences

13％

58

△5pt
△5pt

10

About the ISK Group

Corporate Purpose

To continue contributing to better living environments
through chemical technologies.
Contribute to social
development, protection of lifeand environmental preservation

Basic Philosophy

Respect shareholders,customers, suppliers, local
communities and employees

Abide by laws and regulations;maintain transparency inbusiness activities

Our Vision Towards 2050

A global company that is cherished by people and society,achieving healthy and fulfilling lives

Challenges andinnovation• Create new value throughchemical technology• Solve living problems throughchemical technology• Construct a new business modelthrough chemical technology andDX
Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

Three initiatives to realize our vision

Create society• Realize a sustainable society• Offer the value ofenvironmentally friendly, peoplefriendly, safe, comfortable, andsecure living• Addressing social issues andadapting to changes in lifestyles

Organizational and human
evolution• Enhance our human capital• Enhance our technologicalinfrastructure• Promote a culture of complianceand ethical conduct, ensuringcorporate health and reliability
11Vision 2030
Escalating climatechange issues,
transition to a carbonneutral society

Aging populations
as a result of greater
longevity

Megatrends
Shareholders
and investors

Growth of emerging
economies

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Local
communities

Customers
and business
partners

Development ofdigital technologies

Improvement in thestandard of living

Employees

Unstable politicalsituations aroundthe world

Growth of the global
population and foodproblems

12

Vision 2030

Vision 2030

Originality. Acceleration. Global Reach.
Transforming Lives Through the Power of Chemistry.
Ability to develop
Ability to accommodate quality
Ability to collaborate
proprietary technologies × and environmental requirements × globally

ISK’s strengths derived
from our corporate
philosophy and DNA

Management capability
Inorganic Chemicals

Organic Chemicals

Supply unique products that directly enhance customer value acrossthe world, and support people’s nutrition, health, and life to contributeto realizing a sustainable society.
Agrochemicals

Improving agricultural
production stability andquality

Animal healthproducts

Attain a comfortable
life with companion
animals

Pharmaceuticals
Contributing to
medical care

■Pursuing development and commercialization in a way that’s aware of the value chain■Accelerating the creation of value and restoring our growth trajectory by improving
and evolving in-house technologies■Manufacturing flagship products at the lowest cost in the world and supplying themin a stable manner to customers

New businesses, others

Create new value based on the technologies developed for titanium
dioxide products, to support the environment and digital society, andcontribute to realizing a sustainable society.
Titanium dioxide
Providing a varietyof colors and hues

Functional
materials

Creating a range ofcomfortEnvironmental
products

Achieving both innovationand environmental
protection■Diversifying the optical properties of titanium dioxide to realize new value creation■Contributing to the resolution of social issues such as the adoption of ICT and theelectrification of automobiles through functional materials■Reducing environmental impacts while streamlining production throughreform structures■ Building a new business portfolio■ Strengthening development of environmentally friendly products by investing resources (people and money) with an awareness of ESG
considerations in areas other than titanium dioxide or agrochemicals■ Establishing structures to pursue carbon neutrality by 2050

Contributing to realization of a sustainable society with improving our corporate value through such business activities.
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13

Path to realizing Vision 2030 targets

Originality. Acceleration. Global Reach.
Transforming Lives Throughthe Power of Chemistry.

Vision 2030
Stage Ⅲ

Stage II targets● Operating income: Greater than
¥19 billion(Estimated net sales: Greaterthan ¥160 billion)● ROE: 10% or moreStage I: FY2023 targets● Net sales: Greater than ¥125 billion● Operating margin: 13% or more
● ROE: 10% or moreStage I: FY2023 results● Net sales: ¥138.4 billion● Operating margin: 8%● ROE: 8%

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FY2027-2029

Vision 2030
StageⅡ
FY2024-2026

Vision 2030
StageⅠ
FY2021-2023

Vision 2030 targets● Operating income: Greater than
¥24 billion(Estimated net sales: Greaterthan ¥180 billion)● ROE: Maintaining 10% or more
steadily

Further improvements incorporate value
Social contributions throughtechnological development
Improvements in corporate
value
14

Vision 2030 StageⅡ

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15

Overview of Vision 2030 Stage II

Vision 2030

Originality. Acceleration. Global Reach. Transforming Lives Through the Power of Chemistry.
Medium-term business plan FY2024 to FY2026 Vision 2030 Stage II

Strengthening R&D capabilities
and improving efficiency for
greater originality

Accelerating globalization

Organic chemicals business●Accelerating R&D and commercialization of new agrochemicals andanimal health products●Increasing our share of the global market by manufacturing agrochemicals
at the lowest cost in the world and supplying them in a stable manner●Acquiring and maintaining agrochemical registrations in various countries
worldwide●Expanding sales for the animal health product PANOQUELL™
in the US and deploying the drug in other major countries as well
●Expanding the scale of our businesses by pursuing M&As and partnerships
with other companies, and introducing agents from other companies●Developing and commercializing biological products

経営全般

Overall management
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Pursuing ROIC management

Continuing stable returns
for shareholders

Inorganic chemicals business●Reforming our inorganic chemicals business structure●Expanding sales and increasing production capacity of electronic
component materials●Expanding business by marketing newly developed products and creating
new businesses●Improving the capability of technical sales overseas●Expanding business through collaboration with other companies●Procuring main raw materials and fuels stably and on favorable terms

Pursuing the initiatives to combine business activities with sustainability●Contributing to the environment and society ●Promoting DX●Promoting human capital management●Continuing and improving corporate governance16

Vision 2030 Stage II Management targets
2023 Results
Operatingincome11.1 billion yen

Operatingmargin8％

Net income

7.9 billion yen

ROE

8％

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2026 TargetOver

19 billion yen

12% or moreOver

13 billion yen

10% or more

Capitalinvestment

R&D expenses

2021–2023
Results

20.7 billion yen
27 billion yen

2024–2026
Targets

32.7

billion yen

30.3

billion yen

TargetDividend
policyAiming for a consolidated
dividend payout ratio of 40%
toward FY2026

17

Vision 2030 Stage II Performance targets(100 million yen)

300
250
200
150
100
50
0

1,384

1,312

1,109
132
115 116

103
86
69

114

2021 Results 2022 Results 2023 Results
Vision 2030 Stage I
Operating income

1,510

1,440

146

100
90

136

103

• Accelerate globalization and improve the ratio ofoverseas sales.

1,500• Organic chemicals business

In FY2024, sales and profits have decreased from the previous year
due to inventory adjustment in the agrochemicals (herbicides)
market in North America.
1,200
After FY2025, the sales of growth strategy agents* will increase,including a recovery in herbicides sales.
*Growth strategy agents here refer to Tolpyralate (herbicide), Cyclaniliprole(insecticides), Tiafenacil (herbicide), Isofetamid (fungicides), and Pyriofenone
900 (fungicides).

• Inorganic chemicals business

In FY2024,, profits decreased because of a production adjustment.
600From FY 2025, sales and profits will increase due to reduced
manufacturing costs and increased sales of functional materials.

60

Exchange rate

(JPY/USD)(JPY/EUR)

FY2022

134.7

140.7

FY2024148.0

300
FY20212024 Plan

Ordinary income

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198 193

167

148

79

1,607

1,800

2025 Plan

2026 Plan

Vision 2030 Stage Ⅱ
Net income

Net sales

0

FY2023

FY2025
FY2026

112.8

145.6
140.0

130.4
157.0
158.0
150.0

18

Vision 2030 Stage II Group-wide operating income• Organic chemicals business: Increase the sales volume through expanded sales of the growthstrategy agents including the recovery of herbicide sales and animal health products.
Increase profits through improved manufacturing costs.
• Inorganic chemicals business: Reduce manufacturing costs through rationalization and thefavorable procurement of raw materials and fuel.
Manufacturing
cost

63

Sales volume

61

114

Sales prices△4

Exchange
rate effects△14

OthersSelling,
general andadministrative
costs

1

(100 million yen)

198

△25

Exchange rate

FY2023
FY2024FY20252023 Results
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2026 Plan

FY2026(JPY/USD)(JPY/EUR)

148.0

158.0

145.6
140.0

157.0
150.0

19

Analysis of differences in operating income
by business unit (FY2023 Results vs. FY2026 Plan)

Healthcare business

Biosciences business• Increase profit due to higher sales volumes focused on
growth strategy agents and reduced manufacturing costs
through new manufacturing techniques.

• Increase due to expanding sales of animal health productsin the US.

(Recorded 0.7 billion yen ⇒ 2.1 billion yen income targeted in mediumterm business plan to achieve an increase of 2.8 billion yen)

(Recorded 10.3 billion yen ⇒ 12.1 billion yen income targeted in
medium-term business plan to achieve an increase of 1.7 billion yen)(100 million yen)

Sales volume

Manufacturing
cost

34

103

34

Sales prices△24

Exchange
rate effects△122023 Results
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6

OthersSelling,
general andadministrative
costs

4

Sales prices

Sales
volume

26

121

△18

2

Manufacturing
Exchange cost
rate effects △1△1

02026 Plan

Selling,
general andadministrative (100 million yen)
costs

2

△7

Others△021△72023 Results

2026 Plan
20

Analysis of differences in operating income
by business unit(FY2023 Plan vs. FY2023 Results)
Functional materials

Titanium dioxide and other inorganic chemicals• Expanding sales of mainly electronic component
materials.

• Revise the sales prices.
• Reduce manufacturing cost by procuring raw materials and fuels
stably and on favorable terms and lowering the depreciation andrepair costs of titanium dioxide plants in the sulfate process.

(Recorded 2.6 billion yen ⇒ 3.3 billion yen income targeted in
medium-term business plan to achieve an increase of 0.6 billion yen)

Manufacturing
Exchange rate cost
Sales prices effects
3

Sales
volume

26

5

1

0

2023 Results
Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

(Recorded 1.1 billion yen loss ⇒ 2.2 billion yen income targeted in themedium-term business plan to achieve an increase of 3.3 billion yen)(100 million yen)

OthersSelling,
general and △1
administrative
costs

Manufacturing
cost(100 million yen)

27

33

Sales
prices0△12026 Plan△11

17

Sales volume△22023 Results

Exchange
rate effects△1

Selling,
Othersgeneral andadministrative △1
costs

△7

22
△11
2026 Plan
21

Vision 2030 Stage II R&D Strategy (Group wide)• Strengthen the foundation and environment to merge a number of technologies expertise in organic andinorganic chemicals fields to create original products, businesses, and values.

Further value creation

Realizing a sustainable society
Offering the value of safe, comfortable, and secure living
Addressing social issues and adapting to changes in lifestyle

Platform for creating new products, businesses, and values
Technological platform

Technological evolution and advancement
Organic
Synthesis
technologies

Formulation
Manufacturing
technologies

Crystalcontrol

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Environmental
analysistechnologies

Electronic
Conductivity
control

From
Stage III

Reinforcedat Stage II

Genetic
Modification
technologies

Manufacturing
technologies

22Vision 2030 Stage II R&D expenses trends (Group wide)
20.0%
18.0%
16.0%
14.0%
12.0%

91

14.2%
81

6.0%
4.0%
2.0%
0.0%

84

76

68

1.9%

15

12

2022 Results

Vision 2030 StageⅠ

R&D expenses fororganic chemicals

132023 Results

R&D expenses forinorganic chemicals

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101

98

13.8%

90

11.9%
83

86

11.2%

120
100
80
60
40

2.4%

2.2%

2021 Results

12.6%

11.9%

10.0%
8.0%

97

104

(100 million yen)

1.9%

14

2024 Plan

Ratio of R&D expenses for organic sales

1.9%

15

2025 Plan

Vision 2030 StageⅡ

1.9%
162026 Plan

20
0

Ratio of R&D expenses for inorganic sales
23

Vision 2030 Stage II Business strategy (bioscience business)• Accelerating R&D of new chemical pesticides. Lowering manufacturing cost by refining the manufacturing technology.
• Acquiring agrochemical registrations in countries worldwide and expanding the sales area using our global network.

Priority measures●Strengthening R&D capabilities and improving
efficiency● Accelerating R&D and commercialization of new
chemical pesticides-Proposing at least one full-scale R&D programfor a new chemical compound pesticide
every three years-Embodying and executing a new value-creationtheme● Accelerating globalization-Increasing our share of the global market by
manufacturing agrochemicals at the lowest costin the world and supplying them in a stablemanner-Acquiring and maintaining agrochemicalregistrations in various countries worldwide-Implementing strategic, innovative sales
measures, for example, by utilizing multiple
agrochemical sales companies● Expanding the scale of our business by pursuing
M&As and partnerships with other companies,
and introducing agents from other companies●Developing and commercializing biologicalproducts
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Sources of growth● R&D capabilities
Organic synthesis, agrochemical ingredients andintermediates manufacturing technologies,
biological and bioactivity evaluation technologies,
formulation technology, safety assessment
technology, environmental analysis technology,
biological control technology, pest activity
control technology, genetic modification
technology, production engineering● Global network-Capability to develop and register agrochemicals
in various countries worldwide-Sales bases and sales partners in various countries
worldwide-Raw material procurement sources and750
manufacturing partners in major countries

650
550
450
350

Construction of Technology Research Center,
Major
Hyogo-Ono for production engineering R&D
investment M&A and business alliancessConcept drawing ofTechnology ResearchCenter, Hyogo-Ono

Net sales and operating income(100 million yen)trends
250
651

103

628

102

662

115

714

121

200
150
100
50

2023 Results 2024 Plan

2025 Plan

2026 Plan0

Net sales

Operatingincome24

Vision 2030 Stage II Business strategy (healthcare business)• Acquiring a full approval for PANOQUELL™ in the US and starting sales in other major countries.
• Expanding the applications of Fuzapladib sodium, the active ingredient in PANOQUELL™,
and expanding the business and disease-treatment areas.

Priority measures● Strengthening R&D capabilities and improving
efficiency● Accelerating R&D and commercializationof animal health products-Creating business through multiple pipelines
including in the veterinary and human healthproducts fields● Accelerating globalization-Expanding sales for the animal health product
PANOQUELL™ in the US and deploying the drugin other major countries

Sources of growth●R&D capabilities
Organic synthesis, manufacturing technologies forveterinary drug ingredients and intermediates,
drug efficacy/pharmacological analysis technology,
formulation technology, safety assessment t
echnology, production engineering● Global network-Sales bases and sales partners in countries
worldwide-Raw material procurement sources andmanufacturing partners in major countries

Net sales and operating income(100 million yen)trends
60

0

20
△7

2023 Results

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24

△ 10

2024 Plan

21

33

50

2

40
30
20
10

2025 Plan

Operating income

502026 Plan0

Net sales25

R&D strategy (organic chemicals business)• Accelerate R&D of new drugs for growth markets and new product launches.
• Advance chemical pesticides by considering the introduction of agents from other companies and joint development with partners.

[Newly expanding market] Development pipeline [Newly expanding market] Other development• Development of new agrochemicals utilizing ISK’s
advanced agrochemical creation capabilities*.
Developed
agentsR&D

Phase1

Phase2Phase3• Current development status of agents that contribute tosustainable agriculture

Registrationstage

Insecticide A
Herbicide B

Biopesticides

Biostimulant agents

Marketing period

In FY2026
In FY2026[Continuously expanding market]
Animal healthcare products• Expanding the application of fuzapladib sodium hydrate
utilizing its unique mechanism of action, towards Stage III

Fungicide C
InsecticideD

Products under development: Planning to consider in FY2024 to 2026

*Generally, the probability of successfully creating a new medicine is considered
to be one in 160,000 compounds, but the rate for ISK is one in approximately 13,000 compounds

Expand to otherdiseases
Expand toinflammatory
conditions

Canine acute pancreatitis(Current)

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26

Vision 2030 Stage II Organic chemicals businessNet sales and operating income plan
Net sales trends
637
482
10

472

17

(100 million yen)

671

696

651
24

20

33

765
50

Operating income trends
66
73

△7

2021 Results

619

651

2021 Results 2022 Results 2023 Results

Vision 2030 StageⅠ

662

628

2024 Plan

Bioscience

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

2025 Plan

714

2026 Plan

Vision 2030 StageⅡ
Healthcare

90

96

92

97

103

102

△6

△7

2022 Results 2023Rresults

Vision 2030 StageⅠ

16%

2021 Results

16%

16%

2022 Results 2023Rresults

Vision 2030 StageⅠ

Bioscience operating margin

115

121

2025 Plan

2026 Plan

Vision 2030 StageⅡ

41%

2024 Plan

Healthcare operating margin

21

2

△10

16%

142

117

2024 Plan

Operating margin trends(100 million yen)

17%

6%

2025 Plan

17%2026 Plan

Vision 2030 StageⅡ27

Vision 2030 StageⅡ Agrochemical sales plan by region• In the Americas, the herbicide market will recover in FY 2025; sales of our growth strategy agents will increase.
• In Europe, maintain sales by taking action against generic versions of our main agrochemicals
and increasing sales of the fungicide isofetamid.
• Increase sales by employing multiple dealers in Asia.

472
140
152
68

109

2021 Results

619
248
179
75

115

2022 Results

Vision 2030 StageⅠ

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

651
220
222

628

88

119

187

243

216

203

214

109

126

141

2025 Plan

2026 Plan

2024 Plan
Asia

714

218

116

115

2023 Results
Japan

662

(100 million yen)

EuropeVision 2030 StageⅡ

Americas117

Note: “Asia“ includes Oceania.

28

Vision 2030 StageⅡ Agrochemical sales plan by product800• For the fungicide fluazinam, eliminate the stock in the Brazilian market, andmaintain market share by adopting new sales companies.
• For the fungicide cyazofamid, maintain registration and expand sales areas.
• For the insecticide flonicamid, expect an increased competition from genericproducts in Europe and US. Take action to maintain market share bydeveloping and launching mixed agents.

(100 million yen)

700
600
500
400
300
200
100
0

651

619

155

149

472

109

77

136

68

42
72

100

119

87

146

174

109
23

29

2021 Results

2022 Results

Nicosulfuron

Fluazinam

119192023 Results

Vision 2030 StageⅠ

Cyazofamid

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

628

159
106
91

131

123
18

2024 Plan
Flonicamid

714

662

152

140

176

149

143

136

123

2025 Plan

Vision 2030 StageⅡ

Three growth-strategy agents(100 million yen)
143

120

100

95

19

• For the herbicide tiafenacil, increase sales byachieving recovery in North American herbicide
markets and launching new mixed agents.
• For the herbicide tolpyralate, increase sales in the
US by launching mixed agents etc. Start sales inseveral other countries.
• For the insecticide cyclaniliprole, lower
manufacturing costs using new manufacturingmethods. Sales growth expected in Asia andBrazil.

124
202026 Plan

Growth strategy agents

Others

60
28
5
11
11

23

20
16

86
35

18
31

79

50

21

Tolpyralate
Tiafenacil

27

22

25
33

2021 Results 2022 Results 2023 Results 2024 Plan

Vision 2030 StageⅠ

58

48

58

2025 Plan

2026 Plan

Vision 2030 StageⅡ

Cyclaniliprole

29

Vision 2030 StageⅡ Business strategy (inorganic chemicals business)• Accomplishing structural reforms of inorganic chemicals business by FY2026 to achieve higher profitability.
• Accelerating the development of new products by strengthening R&D capabilities and improving efficiency,
and expanding functional materials sales.

Priority measures●Reforming the structure of the inorganic
chemicals business●Strengthening R&D capabilities and improving
efficiency●Expanding sales and increasing production
capacity of electronic component materials-Improving quality and reducing costs byimproving the processes used at
MF Material Co., ltd. (Nobeoka Plant andHyuga Plant)-Expanding the portfolio for the electronic
component materials field● Expanding business by marketing newly
developed products and creating new businesses● Accelerating globalization-Improving the capability of technical sales
overseas● Expanding businesses through collaboration withother companies● Procuring main raw materials and fuels stably
and on favorable terms

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

Nobeoka (to increase production capacity)
Major
Yokkaichi Plant
investment Electrolytic cell alteration to zero gap design
MF Material Co., Ltd.’s second plant at

Sources of growth● R&D capability
Crystal control, fine-particle synthesis, particle
shape control, dispersion technology, opticalproperty control, electronic conductivity
control, heat storage and dissipation
technology, production technology● Wide-ranging and loyal customer base
● Extensive product lineup● Newly developed unique productsHigh and low dielectric constant materials (filler
materials), new, high-purity titanium dioxide(electronic component materials), highrefractive index materials, high jet-blackmaterials, heat storage materials(energy conservation)
Slag richening construction(expanded freedom to choose
minerals)
Conceptual view ofcompleted MF Material Co.,
Ltd.’s second plant at
Nobeoka

80
60
40
20
0

Net sales and operating income(100 million yen)trends
900
680
15

756
6

2023 Results 2024Plan

787

49

2025 Plan

814

552026 Plan

800

700 Net sales
600

Operatingincome30

Structural reform of inorganic chemicals business
改革概要• Completing structural reforms of inorganic chemicals business for Stage III
Market growth rate

Functional materials
FY2023
Sales:

Titanium dioxide

192 billion yen

Operating income:Operating income:26 billion yen

33 billion yen

FY2026
Sales:

622 billion yen

FY2023
Sales:

53.2 billion yen

Operating income:Operating loss:-1.1 billion yen

148 billion yen

FY2026
Sales:

Bubble size: Operating income

22 billion yen

Sulfate-based
Stop production at titanium dioxide
Yokkaichi Plant in March, 2027
production

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

Operating income• Setup of inorganic chemicals businessheadquarters by reforming organization-Unify sales, production and R&D functions• Full-scale transformation of product portfolio
from commodity titanium dioxide to functional
materials domain-Accelerating new product R&D, primarily forelectronic component materials field-Investing resources in functional materials
domain• Merging and streamlining production bases
and product lines-Improving production efficiency throughoptimization and rationalization across theentire group31

Vision 2030 Stage II R&D strategy (inorganic chemicals business)• Accelerating new product R&D in other fields, including product portfolio extension for electronic component materials field.

New product R&D
Classification

Continued
expansion
marketNew
expansion
marketDeveloped materials
High and low dielectric
constant materials

Sales period (Unit: Fiscal year)

2024

2025

2026

High and low dielectric
constant materials

New high-purity titanium dioxide(new particle size)2027

New high-purity titanium
dioxideHigh refractive index
material

High refractive materialHigh jet-black pigment(LUSHADE™)
Heat storage material(HASClay™*)*This product was developed basedon findings from our collaborative
research with the National Instituteof Advanced Industrial Science andTechnology.

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

High jet-black pigment: Full-scale sales: Pre-saleHeat storage (HASClay)32

Vision 2030 Stage II
Inorganic chemicals business Net sales and operating income plan
900

Net sales trends

800
700
600
500

598

138

644
150

680

148

400
300
200

459

494

532

787

756

(100 million yen)

177

154

814

192

800
700

45

27

15

26

24

18

△ 30

600

△ 11

△6
500 2021 Results 2022 Results 2023 Results

610

602

622

2021 Results 2022 Results 2023 Results 2024 Plan

Vision 2030 StageⅠ

Titanium dioxide

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

400

300
30%
200
20%
10%
100
0%

100
0

900

Operating income trends

2025 Plan

2026 Plan

Vision 2030 StageⅡ

Functional materials

0-10%

Vision 2030 StageⅠ

6

19

△ 13
2024 Plan

Operating margin trends
20%

4%

18%

16%

△2%

△6%

2021 Results 2022 Results 2023 Results

Vision 2030 StageⅠ

Titanium dioxide operating margin

49(100 million yen)

55

27

33

2025 Plan

2026 Plan

15%

17%

22

22

Vision 2030 StageⅡ

12%

△2%

2024 Plan

4%4%2025 Plan

2026 Plan

Vision 2030 StageⅡ

Functional materials operating margin33

Vision 2030 Stage II
Functional materials sales plan by materials
Sales amount by material trends

200• Increase sales by strengthening sales of electronic component materials andelectro-conductive materials.

150

138

100

26

50
0

18

150
23
26

148
26
25

154
24
27

94

99

96

102

2021 Results

2022 Results

2023 Results

2024 Plan

Vision 2030 StageⅠ

Electronic component materials

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

Electro-conductive materials(100 million yen)

177

192

34

37

115

121

2025 Plan

2026 Plan

28

Vision 2030 StageⅡ
Others34

34

Vision 2030 Stage II
Sales of titanium dioxide by region
700
600
500
400
300
200
100
0

Sales amount by region trends

459
18
7
154

278

2021 Results

532
25
7

494
23
7

147

143

(100 million yen)

622

602
27
17

610

195

186

191

34
19

39
19

321

351

364

371

373

2022 Results

2023 Results

2024 Plan

2025 Plan

2026 Plan

Vision 2030 StageⅠ

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

Japan

Asia

EuropeAmericas

Vision 2030 StageⅡ35

Vision 2030 Stage II Priority measures (overall management)

Implementing sustainability initiatives to increase corporate value

Contributing to the environmentand society

Promoting DX

Promoting human capital management

Continuing and advancing corporate
governance• Creating measures to improve energy efficiency andto reduce greenhouse gases• Promoting carbon neutrality along the roadmap• Identifying and developing environmentally friendly
products and technologies• Supporting human rights issues, including in the
supply chain• Taking action based on ISK Group human resourcesmanagement policy• Accumulating and organizing human resource
information(use a talent management system)• Fostering human resources linked to business strategy• Maintaining and improving employee engagement• Promoting career development of employees

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

• Accelerating innovation by introducing atechnical data/information-sharing system• Streamlining and saving manpower throughdigitalization• Improving productivity through utilization ofgenerative AI• Developing DX talent and improving
employee IT literacy• Continuing and strengthening compliancemanagement• Strengthening risk management36

Vision 2030 Stage II Capital allocation
Capital allocation plan for FY2024–2026 (3-year cumulative)• Actively invest for growth and shareholder returns to increase the corporate value.

Capital investment
Approx.

Cash flows fromoperating activities
Approx.

52 billion yen

Other growth investments(M&As and introduction of agentsfrom other companies, etc.)

Approx.

10 billion yen

Dividend*

Approx.

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

30 billion yen

12 billion yen• Capital
investment• Construction of MF Material Co.,
Ltd.’s second plant at Nobeoka,
Technology Research Center,
Hyogo-Ono for production
technology research• Investments • Strategically invest for(M&As andintroduction of
agents from othercompanies, etc.)• Dividend

expansion and sales increases ofbusiness portfolios in growthareas.

• Aiming for a consolidated
dividend payout ratio of 40%
toward FY2026.

*Cumulative year-end dividend fromFY2024 to 2026

We will flexibly acquire treasury stock in line with the cash flow situation.

37

Vision 2030 Stage II Shareholder return policy• Aiming for a consolidated dividend payout ratio of 40% toward the final year.
(100 million yen)

60
50

45%

40

20

30
20
10
0

33%

14

16

2021 Results

2022 Results

Dividend
36 yenper share

42 yenTotal dividend amount26

2023 Results
70 yenCopyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

40%
54

24%

12%

37~39％

26

2024 Plan
70 yenAcquire treasury stock

38~40

2025 Plan

100~105 yen

2026 Plan

Shareholder return policy

60%

50%Regarding dividends, our basic policy is
to continue paying stable dividends inline with business performance,
40%comprehensively taking into accountⅠ factors such as business performancetrends, financial conditions, and the
30%maintenance of sufficient internal
reserves necessary for future businessdevelopment.
20%
We aim for a consolidated dividend
Ⅱ payout ratio of 40% toward the final year
10%(FY2026).

Ⅲ0%

We will flexibly acquire treasury stock.

143 yen

Consolidated dividend payout ratio
38

Vision 2030 Stage II Free cash flow plan

150
100
50
0
△ 50
△ 100
△ 150

(100 million yen)

146

121
116
2021 Results

69

79

60
34

103

2022 Results

2023 Results

2024 Plan

2025 Plan△ 110
Vision 2030 StageⅠ

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

121362026 Plan△ 98

Net income

Free cash flow

Vision 2030 StageⅡ39

Vision 2030 Stage II Interest bearing debt balance plan
Debt-related indicators
900
800
700

28%

27%

600
500
400
300
200
100
0

560

504

384

31%

31%

31%

703

718

735

503

511

496

(100 million yen)

35%

26%

30%

636

401

233

End of March 2022

25%
20%
15%
10%
5%

End of March 2023

Vision 2030 StageⅠ

Interest-bearing debt balance

End of March 2024

Net interest-bearing debt balance

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

End of March 2025

End of March 2026

Vision 2030 StageⅡ *Debt as a percentage of total assets

End of March 2027

0%

*Cash outflows from other growth investments in capital allocations(approximately 10 billion yen) are not considered.
40

Vision 2030 Stage II Capital investments; Depreciation plan
Transition of capital investments, and depreciation expenses

157

160

130

140
120

96

100
80
60
40
20
0

(100 million yen)

51

59
45

2021 Results

52

2022 Results

Vision 2030 StageⅠ

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

522023 Results
Capital investment

57

56

62
40

2024 Plan

2025 Plan

2026 Plan

Depreciation expense

Vision 2030 StageⅡ41

Management policies focused on
capital cost and stock price

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

42

Management policies focused on capital cost and stock price
Current
situation
as we see it• The ROE target for Vision2030 Stage I is 10% or more; Although 13.6% was achieved in FY2021, it was
only 7.3% in FY2022 and 7.9% in FY2023 due to weak operating income in the inorganic chemicals
business.
• We recognize that the cost of equity is at a high level due to the high volatility of operating profits
in the inorganic chemicals business*. ROE is expected to fall below the cost of equity
due to a decline in ROE in FY2022 and FY2023.
0• PBR has remained below 1x.

2018
Results

2019
Results

2020
Results

2021
Results

2021
Results

2022
Results

PER(times)

5.2

9.3

10.8

3.7

6.3

8.5

ROE(%)

12.2

PBR(times)

0.6

3.1
0.3

4.3
0.5

13.6
0.5

7.3
0.5

7.9
0.7

*According to CAPM calculations, our cost of equity at the end of FY2023 wasestimated to be in the range of 7% to 10%.

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

0
0
0
0
0
△0

(100 million yen)

13.6%

12.2%
60

45
4.3%

24

3.1%

△2

7.3%

7.9%
15

△6

2018 Results 2019 Results 2020 Results 2021 Results 2022 Results 2023 Results
ROE

Inorganic chemicals business
operating margin

100

70

40

10

-20
43

Management policies focused on capital cost and stock price

Policy• By diligently implementing the priority measures defined for Vision2030 Stage II,
we aim to achieve an operating income of over 19 billion yen and a ROE of over 10%.
• Further strengthen our R&D capabilities and strengthen our growth base.
• Shift to a more profitable business structure through structural reform of the inorganic
business.
• Promote ROIC management to increase ROE.
• Aim to achieve PBR of more than 1x during Stage II.
• Strengthen shareholder returns.

Initiatives• Progress steadily in product development and strengthen internal R&D mechanisms and systems.
• In the bioscience business, take action to expand sales of growth strategy agents and to reduce
manufacturing costs through changes in manufacturing methods, etc.
• The healthcare business will increase sales through complete US approval of PANOQUELL™ in
FY2026.
• In the inorganic chemicals business, implement a full-scale shift of the product portfolio to thefunctional materials domain by accelerating new product R&D and sales and strengthening ourtechnical sales capabilities.
• Formulate and implement a roadmap to promote ROIC management capabilities.
• Achieve the target dividend of 70 yen per share for FY2024 (year-end dividend), and aim at aconsolidated dividend payout ratio of 40% for the final fiscal year of Stage II.

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44

Strengthen IR activities (promote dialog with shareholders and institutional investors)• In addition to disclosure in our annual integrated report, disclosures are made on the company's homepage every quarter.

Number of IR coverage for institutional investors
Domestic
investors
Overseas
investors
Total

2018

2019

2020

2021

2022

2023

14

19

9

19

21

39

77

91

48

67

39

48

71

90

51

72

61

100

Number of participants in company orientations (including online participants since FY2020)
May

November
Total

2018

2019

39

32

42

81

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

2020

2021

2022

2023

22

38

34

41

36

Canceled

68

22

35

73

35

69

39

80
45

End

自らの変化と環境変化への対応力企業としての存在価値• Note concerning forward-looking statements
This presentation material contains forecasts based on future assumptions, outlooks, and plans that were current as of the time of their announcement.
Actual performance may differ materially from these forecasts due to risks and uncertainties associated with factors including economic conditions, demand trends,
competitive conditions, and exchange rate fluctuations in Japan and overseas.

Copyright © Ishihara Sangyo Kaisha, Ltd. All rights reserved.

46