FY2020 3rd quarter
Business Results(April 1, 2020-December 31, 2020)

February 5th, 2021

１．Business Results for the 3rd QT FY ending Mar. 2021

２．Mar. 2021 ending Projection

2

Financial Results for 3Q FY2020• Thanks to increasing demand from staying at home and continuous higher demand forsemiconductor & electronic device field , our revenue and profit achieved better as YOY andcomparison with our projection.
• Net sales was 19,823million yen（YoY +1,787million yen, +9.9%）.
• Profit: Operating profit 2,139million yen（YoY +634million yen, +42.1%）, Ordinary profit 2,086millionyen（YoY +679million yen, +48.3%）, Net profit1,412million yen（YoY +504million yen, +55.5％）（Million yen）

Net sales

3Q FY2019
Result3Q FY2020
Result18,036 19,823

YoY
Change+1,787%+9.9%

Operating profit

1,505

2,139+634 +42.1%

Ordinary Profit

1,406

2,086+679 +48.3%

908

1,412+504 +55.5%¥110/$¥104/$Net Profit
FX Rate（USD）

3

The summary of 3Q FY2020 Financial Results■Net sales✓ 19,823million yen（YoY +1,787million yen, +9.9%）✓ Photosensitive Materials:
Increased sales for high end semiconductor
application products such PAG and Polymer.
✓ Fine Chemicals:Electronic materials continue to grow.
Aroma related products keep stable business.
Logistic (Chemical Tank Terminal business) wasrecovery.

■Operating profit✓ 2,139million yen（YoY +634million yen, +42.1%）✓ High valued product sales in both business segment well compensated priorlabor cost & depreciation increase for photosensitive material capacity up cost
about 200million yen, then marked better profit.

■Ordinary Profit✓ 2,086million yen（YoY+679million yen, +48.3%）✓ As comparison with previous year, loss reduction mainly thanks insuranceincome even though FX loss in JPY appreciation.

■Net profit✓ 1,412million yen（YoY+504million yen, +55.5%）

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Quarterly Sales & Operating profit trend• Sales and operation profit achieved historical record as quarterly result.

Investment cost at
Chiba Plant forcapacity up
increased
4Q→3Q sales shift due
to plant maintenance& expansion works

Investment cost at
Chiba Plant for capacity up
increased(Labor cost & depreciation)

5Change Analysis: Operating Profit• Sales expansion compensating fix cost
increase for business growth investment, thenresulted better profit.

+334 +51 △144

（Million yen）

+935

Operation
Improvement Inventory
Revaluation
Portfolio
Improvement

Cost up in capacity
expansionLess expense than plan

△405

FX: 2020.3 3Q ¥110/$2021.3 3Q ¥104/$△136
Fix Cost
Increase

2,139

FX

1,505
Sales growth2020.3 3Q
Result+634

2021. 3 3Q
Result6

Photosensitive Materials Segment
Net Sales：11,467 million yen（YoY +1,038 million yen, +10.0%）• Products for Advanced semiconductor materials(PAG, Polymer) are continuously robust.

Operating profit：1,367 million yen（YoY +270million yen, +24.7％）• Increased labor cost and depreciation for theproduction capacity up investment, but sales
expansion well compensated it and resulted inprofit increase.

7Fine Chemicals Segment
Net sales：8,356 million yen（YoY +748 million yen, +9.8％）• EL materials sales increased.
• Aroma chemicals keep stable growth.
• Chemical Tank Terminal business wasstagnant in commodity solvents demand slow
down impacting goods turn around, but now
in recovery trend .

Operating profit：772 million yen（YoY +363 million yen, +88.9%）• Profit increased in line with sales development.
• EL material business is accelerating to shift
toward to high valued product business.

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3Q FY2020 Income Statement• Net sales 19,823 million yen.
• Gross profit rate improved thanks to high valued product sales expansion（21.1%→23.1%）.
• SG&A expense increased by 6.0% less than sales increase, operating profit resulted in 2,139
million yen.
（Million yen）

3QFY2019Net sales

18,0363Q
FY2020Change%19,823+1,787+9.9%

14,22815,242+1,013

+7.1%

3,807

4,581+773+20.3%

2,302

2,441+139+6.0%

1,505

2,139+634+42.1%

Non-operating income

67113+46+69.0%

Non-operating expenses

166

167

0+0.5%

1,406

2,086+679+48.3%

Extraordinary income &losses△40△29+10+26.8%

Profit before income taxes

1,366

2,056+690+50.6%

Income taxes

457644+186+40.7%Net profit

908

1,412+504+55.5%

Cost of sales
Gross profit
SG&A expenses
Operating profit

Ordinary profit［Gross profit +773
million yen］
high valued product sales
increase contributed
profitability（21.1%→23.1%）［Non-operating income+46 million yen］
insurance income 65 millionyen
FX loss 55 million yen

93Q FY2020 Balance Sheet• Because of photosensitive materials capacity up project, increased fixed
assets by3,056million yen and interest bearing debt by 2728 million yen.
• Shareholder’s equity increase by 1,252 million yen thanks to net profit increase.
（Million yen）
Current assets

Mar. 2020 Dec. 2020
end
end

15,503

Change16,909 +1,406（Million yen）
Liabilities

Mar. 2020 Dec. 2020
Changeend
end

28,561

31,538 +2,977

3,000

3,414

18,18820,916 +2,728
7,206

Cash and deposits

3,582

3,682+99

Trade accounts
receivable

4,654

4,968+313

Accounts payable-tradeInterest-bearing
debt

inventories

7,019

7,332+312

other

7,372

246

925+679
Net assets

10,56911,837 +1,268

10,563

11,816 +1,252

Other

23,627

26,466 +2,839

22,112

25,169+3,056

Intangible assets

407

480+73

Investments andother assets

1,107816△290

Fixed assets
Property, plantand equipment

Total assets

39,13043,376 +4,245［Tangible asset +3,056million yen］
［Interest-bearing debt+2,728million yen］
Due to photosensitive materials capacity up
project completion

Shareholders’equityValuation andtranslation
adjustments
Liabilities and netassets

539,130

21+414△165+15

43,376 +4,245［Equity Ratio］
27.3%（YOY+0.3pt）

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１．Business Results for the 3rd QT FY ending Mar. 2021

２．Mar. 2021 ending Projection

11

Revision of FY2020 Projection• Revised full year projection as consideration of continue better sales
for mainly high valued product business in Q4.
• FX rate keep ¥105/$.
Revision on
Aug. 7（Million yen）

2021.3Full Year
Projection

Net sales

Revision on Feb. 52021.3
New FullYear
Projection

ChangeChange(%)

25,000 26,000+1,000+4.0%

2,600
2,500
1,650

+650

+33.3%+630+33.7%+390+31.0%

Operatingprofit1,950

Ordinary profit

1,870

Net profit

1,260

12Mar. 2021 ending Projection• After the revision, progress ration are as below.

（Million yen）

2021.3
New Full Year
Projection

2021.3
3Q Result

Progress Ratio

26,00019,823

76.2%

Operating profit

2,600

2,13982.3%

Ordinary profit

2,500

2,086

83.5%

Net profit

1,650

1,412

85.6%

Net sales

13Capital Investment, Depreciation, & R&D trend• Under EL materials market demand growth, production capacity expansion investment
continue since 2017.
• FY2020 investment spending projection is about 5.5billion yen mainly for new plant
construction as same level as previous year spending.

(CAPEX, Depreciation & R&D)
New plant construction
at Chiba Plant
Enhanced existingproduction in Chiba
Plant for capacityup

For high purity solvent &aroma chemical demand
growth, constructed Aroma
Plant and Awaji Plant

14Photosensitive Materials Capacity Up Investment•New plant (4th photosensitive materials plant in Chiba plant site) completed on
October 18, 2020.
•FY2020 2nd half is product qualification activity period, profit contribution will startfrom next Financial year.

CurrentMar.
2018

Mar. 2019

Mar. 2020

Mar. 2021

Mar. 2022

2H

1H

1H

1H

1H

2H

Photosensitive
Materials for FPD（PAC）

Construction Qualification Operation
start

AdvancedpolymerConstruction Qualification Operation
start

Advanced
Photosensitive
Materials（PAG）
New Plant(New Productionbuilding)

2H

2H

2H

Construction Qualification Operation
start

Design・Construction

Qualification Operation
start15

Individual Development, to the global Chemical