FY2021 3rd Quarter
Business Results（April 1, 2021- December 31, 2021）
February 4, 2022

１．Business Results for the Q3 FY 2021
２．Segment Results for the Q3 FY 2021
３．Projection for the FY2021

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Financial Results for the Q3 FY2021• Semiconductor materials continue to be at a high level in all areas, such as demand for 5Gcompatible smartphones and PCs, and increased investment in DX, communications, and datacenters.
• Despite soaring prices of raw materials and fuels as well as global logistics disruption, weachieved increase in income and profit compared to the same period of the previous year,
thanks to increased production in response to strong demand for semiconductors andelectronic materials.
（Million yen）

Q3 FY2020
Results

Q3 FY2021
Results

YOY
Change%※19,823

23,873※+4,049※+20.4%

Operating profit

2,139

3,323+1,183+55.3%

Ordinary profit

2,086

3,342+1,256+60.2%

Profit1,412

2,289+876+62.1%¥103.6/$¥114.9/$Net sales

FX Rate (USD)※"Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) has been
applied from the beginning of ending term of March, 2022 period. As a result, accounting is different
from a total period in the previous 3rd quarter. The comparison for YOY is reference figure as newstandard vs old standard.

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Progress of Full-year Results Forecast for the FY2021• Under strong demand for semiconductors and electronic materials, the progress rate against the fullyear earnings forecast (before revision) is 79% for sales and 90% or more for each profit.
• Profit achieved the medium-term management plan "TGC300 (sales of 30 billion, ordinary profit of 3billion or more, ordinary profit margin of 10% or more)" one year ahead of schedule.

(Million yen)

FY2021
Previous Forecast(May 11, 2021)

Q3 FY2021Results

Progress Ratio

30,00023,873

79.6%

Operating profit

3,550

3,323

93.6%

Ordinary profit

3,400

3,342

98.3%

Profit

2,400

2,289

95.4%

¥302.38¥288.40

Net sales

Earnings per share (Yen)4The Summary of Q3 FY2021 Financial Results■Net sales
23,873 million yen（YOY※+4,049 million yen、※+20.4%）✓ Photosensitive materials Segment: Both semiconductor and display application continue keep good sales.
✓ Chemicals Segment: Electronic materials sales increase, and the fragrance related product keep stable sales.
Selling price are under increasing in accordance with raw material price increase.
In the logistic business, load movement volume increased due to strong demand forchemicals and needs for securing inventories.

■Operating profit
3,323 million yen（YOY+1,183 million yen、+55.3%）✓ Increased profits as absorbing increased costs such as labor costs, depreciation costs, raw materials/ fuel/distribution costs for production capacity expansion.
✓ Overall high-value-added products sales expanded, and the plant utilization rate increased from the initial plan.

■Ordinary profit
3,342 million yen（YOY+1,256 million yen、+60.2%）✓ Foreign exchange gains due to yen depreciation (Foreign exchange loss occurred in the previous year)■Profit
2,289 million yen（YOY+876 million yen、+62.1%）※The comparison for YOY is reference figure as new standard vs old standard. 5

Change analysis: Operating profit• Thanks to expanding sales and reflecting prices in soaring raw material prices, it resulted in profits increase by
absorbing increased costs such as raw material, fuel, distribution, investment for growth and etc.
Increase in unit
price of stock(Million yen)
Increase in sales
volume, Selling
price is underincreasing due tohigh raw material
prices.

+2,425+203
Inventory
revaluation

2,139
Sales growth

Q3 FY2020
Operating profit+28
Operation
improvement+149

Advanced expenditure increased
for production capacity up(Labor cost, Depreciation)

△825

FX

△796
Impact from raw
materials, fuelandtransportation
cost increasing

3,323
Expenses
increase+1,183

Q3 FY2021
Operating profit6

Quarterly Sales & Operating profit Trend• Sales in the third quarter (October-December) remained at a high level of ¥ 8,162 million (+ ¥ 1,174million, + 16.8% year-on-year) due to increased sales and price reflections associated with soaring
prices of raw materials.
• Operating profit increased by 954 million yen (+121 million yen, + 14.6%).
• Although strong demand continues, there are still risks of soaring raw material, fuel, distribution costsand etc.

※"Accounting Standard forRevenue Recognition" (ASBJ
Statement No.29, March 31, 2020)
has been applied from thebeginning of ending term of March,2022 period. As a result,accounting is different from a total
period in the previous 3rd quarter.
The comparison for YOY isreference figure as new standard
vs old standard.

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Q3 FY2021 Income Statement• Sales were 23,873 million yen (※YOY +4,049 million yen, +20.4%).
• Thanks to increased sales absorbing upfront costs, achieved profits increase.
• Gross profit margin improved by 2.2pt (23.1% → 25.3%) thanks to increased factory operation and sales inadvanced products.

(Million yen)

Q3 FY2020

Q3 FY2021

Change%※19,823

23,873※+4,049※+20.4%

15,242

17,826+2,584+17.0%

4,581

6,046+1,465+32.0%

2,441

2,723+281+11.6%

2,139

3,323+1,183+55.3%

Non-operating income

113

127

13+12.3%

Non-operating expenses

167108△58△35.0%

Ordinary profit

2,086

3,342+1,256+60.2%

Extraordinary income & losses△29△32△3-Profit before income taxes

2,056

3,309+1,252+60.9%644

1,020+376+58.4%

1,412

2,289+876+62.1%Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit

Income taxes
ProfitGross profit: +1,213
Gross profit margin
improved by 2.2pt.

※"Accounting Standard for Revenue
Recognition" (ASBJ Statement No.29,March 31, 2020) has been applied fromthe beginning of ending term of March,2022 period.
As a result, accounting is different froma total period in the previous 3rd quarter.
The comparison for YOY is reference
figure as new standard vs old standard.

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Q3 FY2021 Balance sheet• Inventories increased by 1,192 million yen due to strategic procurement for securing raw materials supply.
• Tangible fixed assets decreased by 806 million yen due to going depreciation exceeding the acquisition of new equipment.
• Interest-bearing debt decreased by ¥ 1,575mn due to increased profits.
• Shareholders' equity increased by 2,088 million yen thanks to an increase in net income.
• The equity ratio was 33.9% (YOY +4.5pt).
Mar. 2021
ended

Dec. 2021
ended

16,99818,307+1,309Cash and deposits

3,794

3,676

△118Notes and accounts receivable –trade

5,386

5,858+471Inventories

6,983

8,175

+1,192

833

597

△235

26,52025,554△965

24,908

24,101

△806

523

521

△11,088931△157

43,51843,862+344(Million yen)
Current assets

Other
Fixed assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets

Mar. 2021
ended

Dec. 2021
ended

Change30,72728,982△1,745

Notes and accounts
payable – trade

3,470

5,370

+1,899Interest-bearing debt

19,987

18,412△1,575

Other

7,269

5,199

△2,070Net assets

12,79014,880+2,089

12,75014,839+2,088Valuation andtranslation adjustments

40400

Liabilities and net assets

43,51842,652△865Change(Million yen)
Liabilities

Shareholders’ equity

9１．Business Results for the Q3 FY 2021
２．Segment Results for the Q3 FY 2021
３．Projection for the FY2021

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Photosensitive Materials Segment
Net sales: 14,813 million yen(YOY※+3,346 million yen, ※+29.2％)• Legacy generation semiconductor applications areperforming well.
• Memory semiconductor remains decent demand.
• Logic semiconductor applications keep strong demand.
• High-level production continues for display applications.
• Sales of both photosensitive materials and polymers
increased.

Operating profit: 2,430 million yen（YOY +1,062 million yen, +77.7％)• Increased production in all areas of semiconductor anddisplay applications absorbed the increase in labor costs
and depreciation costs associated with the expansion ofequipment capacity, resulting in an increase in profits.
※New accounting standards about the profit recognition has been applied, sales
figure decreased by 320 million yen from calculation in old accounting standard.
The comparison for YOY is reference figure as new standard vs old standard.

11Chemicals Segment
Net sales: 9,059 million yen(YOY ※+703 million yen, ※+8.4%)• Electronic materials business continued to keep goodsales.
• Aroma chemicals business kept steady growth.
• Selling price is under increasing due to high raw materialprices.
• In the logistic business, load movement volume
increased due to strong demand for chemicals and needs
for securing inventories.

Operating profit: 893 million yen（YOY+120 million yen, +15.7%）• In response to the disruption in the supply of rawmaterials and logistics, we worked to increase
production in line with growing demand, then achieved
profits increase.
※New accounting standards about the profit recognition has been applied,sales figure decreased by 489 million yen from calculation in old accountingstandard. The comparison for YOY is reference figure as new standard vs oldstandard.

12１．Business Results for the Q3 FY 2021
２．Segment Results for the Q3 FY 2021
３．Projection for the FY2021

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Revision to Full-year Results Forecast for the FY2021• Full-year earnings forecast revised upward under the strong demand for semiconductor market.
• Sales are expected to continue to be strong, mainly for semiconductor materials.
• Continue to increase production capacity and increase production to achieve further excess of mediumterm management plan.
Previous forecast(May 11, 2021)

Revised forecast

30,000Operating profit

Change%32,000+2,000+6.7%

3,550

4,000+450+12.7%

Ordinary profit

3,400

4,000+600+17.6%

Profit2,400

2,800+400+16.7%¥302.38¥352.78(Million yen)

Net sales

Earnings per share (Yen)14

Appendix: H1 FY2021 vs H2 FY2021 Operating Profit Comparison• Soaring crude oil and raw material prices as well as logistics disruption are expected to continue.
• Costs associated with construction, regular repairs and increased personnel will be implemented asplanned.
Advanced expenditure increased
for production capacity up(Labor cost, Depreciation)△740(Million yen)
Operation
improvement

2,369
Sales growth

H1 FY2021
Result2022.3月期 上半期△780
Impact fromraw materials,
fuel andtransportation
cost increasing

1,630
Expenses
increase

H2 FY2021
Forecast

2022.3月期 下半期 15

Individual Development, to the global Chemical(NB)
The forecasts made in this document contain a variety of uncertain factors since it has been
prepared based on judgments from information that is currently available.
Therefore actual business results may differ from those projected, depending on factors andrisk such as the economic status of the market surrounding the company, and do not perform
any strict promise and guarantee.

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