Business Results for the Third Quarter of
Fiscal Year Ending March 31, 2024
(April 1, 2023 – December 31, 2023)
February 9, 2024

1

Financial Results for the Q3 FY2023• Net sales were 23,095 million yen, affected by weak demand for semiconductors and inventory adjustments in thesupply chain since the beginning of the period. (YoY -10%)• Operating profit was 2,628 million yen due to lower sales, despite efforts to curb costs in response to declining
demand. (YoY -31%)• Investments to increase production capacity will continue in preparation for medium and long- term market expansion
in the next fiscal year and beyond.

Q3 FY2022
Results

Q3 FY2023
Results

YoY
Change%Net sales

25,74723,095(2,651)(10%)

Operating profit

3,812

2,628(1,184)(31%)

Ordinary profit

4,026

2,529(1,497)(37%)

Profit2,745

1,724(1,020)(37%)

￥134/$￥143/$(Million yen)

FX Rate (USD)

2

Variance Analysis: Operating profit• Operating profit of 2.62 billion yen thanks to curb expenses planned at the beginning of the period on the rise,
foreign exchange gains and inventory valuation gains, against a decline in profit due to lower sales.
(Exceeding the Full-year Forecast)(Billion yen)

3.81

+0.16
FX+0.21(1.12)

Inventory Impact(operation andvaluation)(0.44)
Decrease in Sales

Operatingprofit

Increase in production
costs such as fuel,electricity, andpersonnel*Investments to increase production
capacity are progressing according
to the mid-term plan.

Q3 FY2022(1.18)

2.62
OperatingprofitQ3 FY2023

3Quarterly Sales & Operating profit• Although demand recovery is slow, inventory adjustments in the supply chain appear to have bottomed out andsales increased quarter-on-quarter.
• In Q3, inventory valuation gains due to cost increase mainly in photosensitive materials (one-time)

Quarterly Sales & Operating profit(Million yen)
10,000Net sales

Operating profit(Million yen)
3,000

Moderate Demand Recovery Trend

8,040
8,000

2,400

6,000

1,800

1,331
4,000

1,200
Inventory Valuation Gains¥0.6 billion

2,000

600

00
Q1

Q2

Q3

FY2021

Q4Q1

Q2

Q3

FY2022Q4Q1

Q2
FY2023

Q34

Photosensitive Materials Segment
Net sales & Operating profitNet sales(Million yen)
Operating profit
6,000
5,511
5,442

4,970 4,930(Million yen)
1,500

YoY: (¥1,636 million), (11％)• In materials for semiconductors, although inventory
adjustment has begun to show signs of slowing, the recovery
trend in demand is gradual, and demand remains sluggish.

4,832
4,466 4,477

998
4,000913

907

1,000820

500580• Inventory valuation gains were recorded in the Q3 due tohigher costs.

00
Q2

Q3

FY2022Q4Q1

Q2
FY2023

YoY: (¥775 million), (31％)• Cumulative profit decreased due to lower sales of materials
for advanced semiconductors.

222Q1• Demand for display materials remained at a certain level,albeit somewhat soft.

Operating profit: ¥1,710 million

574
2,000

Net sales: ¥13,775 million

Q3• Continued to increase production capacity investment
as planned in preparation for future demand expanding.
5Chemicals Segment
Net sales & Operating profit
4,000

Net sales
Operating profit

800

3,721

3,563
3,350

3,262

2,977

2,966

3,000

2,000

Net sales: ¥9,320 million

600

2,778

467

478

417
380

400

33526020000Q2Q3FY2022

Q4Q1Q2FY2023• Electronic materials-related business continued to recover frominventory adjustments and exceeded as the Q3 on year-on-yearlevel basis.
• Demand for aroma materials for toiletries recovered andexceeded the year-ago level on year-on-year basis.
• In the logistics business, although cargo movements continue tobe sluggish, tank contract rates remain at a high level.

Operating profit: ¥917 million

240

1,000

Q1

YoY: (¥1,015 million), (10%)

Q3

YoY: (¥408 million), (31%)• The Q3 profit increased thanks to higher sales of high-purity
solvents, aroma materials and inventory valuation gains fromhigher costs.
• Cumulative profit decreased due to the impact of lower sales in
the first half of the year.
6

Q3 FY2023 Income Statement• Net sales were 23,095 million yen, affected by weak demand for semiconductors and inventory adjustments in the supply chain
since the beginning of the period. (YoY -10%)• Gross profit was 5,656 million yen due to a decrease in sales of high value-added products caused by inventory adjustments insemiconductors, despite inventory valuation gains as well as curbing cost in response to lower sales. (YoY -18%)
Q3 FY2022
Results

Q3 FY2023
Results

Change%25,74723,095(2,651)(10%)

18,827

17,439(1,387)

(7%)

6,919

5,656(1,263)(18%)

SG&A expenses

3,106

3,027(79)(3%)

Operating profit

3,812

2,628(1,184)(31%)

Non-operating income

334

118(216)(65%)

Non-operating expenses

120216

+96

+80%

4,026

2,529(1,497)

(37%)

(58)

(27)

+31

Profit before income taxes

3,968

2,502(1,465)(37%)

Income taxes

1,223778(444)(36%)

Profit2,745

1,724(1,020)(37%)(Million yen)

Net sales
Cost of sales
Gross profit

Ordinary profit
Extraordinary income & losses

Previous Period
Foreign Exchange Gains: ¥262 million
Current Period
Foreign Exchange Losses : ¥110 million

7

Q3 FY2023 Balance sheet• Inventories -¥709 million: Inventory reduction in line with declining demand.
• Trade payables -¥1,762 million: Reduction of raw material purchases to meet declining demand.
• Tangible fixed assets +¥5,223 million:
Continued investment to increase production capacity in preparation for the demand recovery period.
• Borrowings +¥3,283 million: Increase in capital investment funds.
• Shareholders' equity +¥1,406 million: Net profit increase.
Mar. 2023
ended

Dec. 2023
ended

Change21,68521,872+187

Cash and deposits

3,252

3,524+272

Notes and accounts
payable – trade

Notes and accounts
receivable – trade

5,912

6,107+194

Borrowings

11,758761
29,42011,0491,191
34,960(709)+429+5,53927,63932,863+5,223607

1,028+420

1,172

1,068(104)51,10556,832+5,727(Million yen)
Current assets

Inventories
OtherFixed assets
Property, plant andequipment
Intangible assets
Investments and otherassets

Total assets

Mar. 2023
ended

Dec. 2023
ended

Change31,46335,735+4,271

4,943

3,181

(1,762)

17,893

21,177+3,283

8,625

11,375+2,75019,641

21,097+1,455

19,556

20,962+1,406

Valuation and translation
adjustments

85134+49

Liabilities and net assets

51,10556,832+5,727(Million yen)
Liabilities

OtherNet assets
Shareholders’ equity

8

Status of Inventories• Reduce inventory in line with declining demand.
• Inventories decreased by 0.7 billion yen from the end of the previous fiscal year and by 1.2 billion yen from the firstquarter.

Inventories Trend(Billion yen)

14Raw Materials

Products
11.7

12

11.2

11.0

8.2

8.3

(¥1.2 billion)

10.0

108

12.2

8.0
8.3

8.9

7.2

6
5.7
42
2.3

2.8

3.4

3.3

3.0

2.7

Q4

Q2

Q4

Q1

Q2

Q30
FY2021

FY2022

FY20239

Progress of Full-Year Earnings Forecasts• Progress against the forecast was 75% for net sales, and profits exceeded the forecast.
• In the Q3, cost of sales rose and an inventory valuation gain was recorded as a result of a drop-in operations inresponse to declining demand.
• In the Q4, inventory valuation gains are expected to be eliminated and expenses are expected to increase, so thefull-year forecast remains unchanged.

(Million yen)

FY2023
Forecasts

Q3 FY2023
Results

Progress
Ratio

31,00023,09575%

Operating profit

2,600

2,628101%

Ordinary profit

2,500

2,529

101%

Profit

1,600

1,724

108%

¥140/$¥143/$Net sales

FX Rate (USD)※November 10,

as of the revision※10Appendix

11

(Republished November 20, 2023 documents)

Investment to achieve the medium-term management plan
• The semiconductor market will return to high growth from 2024 onward after a production adjustment in 2023.
• To meet growing demand, constructing photosensitive materials manufacturing facilities, development and analysis
building, and high purity solvent facilities as planned in the mid-term plan.

FY2023

FY2022<PhotosensitiveMaterials>

Chiba Plant

Expanded production capacity of advanced products by 1.8 times
Infrastructureenhancements

Expansion of No. 4 photosensitive materials
plantCapacity up at existing
facilities<Chemicals>

FY2024

New distillation column addedat Awaji Plant

Awaji Plant

Qualification

Scheduled to be completed in July 2024

Construction of Development andAnalysis Building

Operation Start※Advanced products:

ArF, EUV

Scheduled to be completed in April 2024

Scheduled to be completed in March 2024

Expansion of highpurification facilities

Construction of indoor
filling station12(Republished November 20, 2023 documents)

Measures to Secure full-year Operating profit• Cost reductions, including timing adjustments, will continue in the second half of the year to offset the impact oflower sales in order to secure profits.

(Billion yen)

4.96

Operating profit

Previous Plan ¥2.5 billion(1.38)¥1.52 billion
Reduction

Decrease in Sales(0.98)
Increase in production
costs such as fuel,electricity, and personnel

2.60
Forecast
Operating profit*Investments to increase production
capacity are progressing according
to the mid-term plan.

FY2022 Full-year

FY2023 Full-year13

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 and risk such as the economic
status of the market surrounding the company, and do not perform any strict promise and guarantees.

14