The Fiscal Year ending March 2020(2019 April- 2020 March)
Business Results

May 2020

Corporate Outline■ Establishment︓September 27, 1954

Top
■ Management︓

Yujin Kimura, President■ Paid-In Capital︓ 1,618 Million yen（As of March 31, 2020）■ Net Sales︓

24,455 Million yen（For the year ended March 31, 2020）■ Employees︓

688（As of March 31, 2020）■ Listed Market︓

Tokyo Stock Exchange JASDAQ Market■ Securities Code︓ 4970
2

Site Map

Tokyo
Hyogo
Awaji Plant

Head office

Chiba・Chiba Plant

Osaka・Ichikawa Plant
・Takahama Chemical
Tank Terminal
・Aroma Plant
・R&D CenterWest Japan Sales
office(Shin-Osaka)
3Origin of company name
Differences between those possessed and those not possessed = Science andtechnology and strategy in Reconstruction of Japan after world war II.
“Our founder wanted to start a business that contributes globally from Asia
based on chemical technology”, then he named it “Toyo Gosei Kogyo”.

A scene of Ichikawa City's Baraki in 1966 (Showa 41). Rice
harvesting.
Under the environment, our founder did self-study about
distillation technology, designed and made distillation tower
and boiler.
Source : City Ichikawa Nature Museum

4Management Policy
1. Make what is needed in the times
2. Making something that other companies
cannot make (Global niche top)
3. Research & Development and technology
at the core in the business4. Don't give up, do it simply honestly andsincerely5•Our Business History•Since established in 1954, the Company expanding business in the functional chemicals field byleveraging our strengths in organic synthesis and purification technologies.
•Always estimate market’s need to expand business

1950

1970

Photosensitive
Materials Segment

1990
Organicsynthesis

1954
Company
foundedPhotosensitive
materials
business

Chemicals Segment

Functional
chemicals
business (aroma
chemicals)
Fine chemicals
business (highpurity solvents)
Logistics
business

1970

1989

•R&D activities
launched

Chiba Plant
opened2003
Highpurification& synthesis
technology•Distillation /refining
technologies

1963•Ichikawa Plant
opened•Liquid chemicalstoragetechnologies

2019•Continuously
expanding production
capacity and capability•Aroma chemicals
business division
set upMay 2012•Aroma Chemical
Plant starts
operations•Synthesis
technologies•April 2013
•Awaji Plant
completed1971•Takahama Chemical
Tank Terminal opened

Others

1982
R&D

2010

•Photosensitive
Materials ResearchCenter•opened•Water soluble
2008
photopolymer•Photosensitivetechnologies •Cell-able 3D cell
Materials
cultureResearch Centersystem developed
relocated(life sciences field)

1996

6

Business portfolio• 80% sales from IC/FPD/Electronic application
ロジスティック
Logistic

外側︓対⾯市場
内側︓当社の売上⽐率

⾹料材料
Aroma materials

2020 Mar end
revenue
24,455million yen
ChemicalSegment
42%

Outside: market
Inside: Our sales ratio

Photosensitive
materials
segment 58%

IC・FPD・
Other electronic
application

7

Photosensitive materials products,
Electronic materials products
High-purity solvents

Inside of IC Chip
• Intelʼs IC Chip: Photo of CPU(Central Processing Unit)
1nm=0.000001mm

Line width︓700nm〜20nm
Production Technology︓
65nm node、8 layers Cu wire
# of Transistors︓1.3 billion
Chip area︓435㎟
Level 2 cache︓1MB
Level 3 cache︓16MB
Operating frequency︓3.4GHz
Power-supply voltage︓1.25V
power consumption︓150W（peak）
110W（average）

http://www.eos.ncsu.edu/e115/text.php?ch=6&p=processors

Intelʼs Xeon (Tulsa), Processerʼs function structure(Present on Aug 2006, FSB: 800MHz)

9

Photolithography in Semiconductor and FPD• High definition FPD ＝ Minimum line width• Performance of CPU/Memory（IC）＝ Minimum line width
１．Coating photoresist on the substrate

２．Exposure via photomask astransferring image to coatedphotoresist
Light source

４．Developing by developer to get thepattern

Photomask(circuit diagram)
Projection lensPhotoresist
substrate

３．Chemical reaction on the
exposure area

10Composition of photoresist• Toyo Goseiʼs photosensitive materials are a critical component inphotoresists used to make semiconductors and FPDs.
Commonphotoresist
composition
ratio

AdditivesPhotosensitive materials
PAG: Photo Acid Generator
PAC: Photo Acid Compound
Total 100%

Photoresist (liquid form)*Blended with other materials by photoresist makers

Several% to several tens% for polymer

Polymer（Resist resin、Basepolymer) 〜10％

•Our main products

High-purity organic solvent(PGMEA, EL etc.)11Business Overview Photosensitive Materials/Chemicals (Solvents)
Toyo Gosei supplies photosensitive materials to customers worldwide. These materials play a key role indetermining the performance of semiconductors and FPD.
Semiconductors’ application is diversifying in growing market such as IoT, which is driving growth inphotosensitive material demand.
Mobile phones
Semiconductors
Photoresists
VR devices
Photosensitive
materials
Automobiles
Semiconductor makers
TGC

Photoresist
makersPC
Finishedproduct makers

Retailers

ConsumersPanelmakers

LCD panels, TVs

LED bulbs
Digital signage

12Business Overview high-purity solvents
Toyo Gosei’s high-purity solvents are used in various stages of the semiconductor
manufacturing process.

Wafer
cleaning

UV light
exposure

Photoresist
coating
Enlargedview

Silicon wafer

Photoresist applied byspin coating, baked dry

Exposure
on Photoresist
露光機でパターン露光
patterning

Developer

Removing residue
by striper〜7nm
Complete circuit after emoving
photoresist and other process

Etching pattern using photoresist
pattern as the mask

Develop the exposed
area
13

Semiconductor Market Development & Projection• Since 1980era, information society is driving IC market demand growth.
• In 2020, growth rate will be 0 or minus• Thanks to progress of information communication technology support IC demand
growth, x1.5-2.0 for 2020-2030
World IC Market Sales
2017 result 21.6% growth
2018 result 13.7% growth（WSTS ）2019 projection -12.2% down（WSTS 2019.12）

CAGR 7%2020 projection -4% down（IC Insight 2020.4）

CAGR 5-6%

Source: WSTS & Fuji Chimera Research Institute, Inc

Projection

14

Down Size by photo lithography• Semiconductor Node (Line Width) continues to be down size, 5nm technology
in mass production now.
• For 2025, 2nm node process is under development• In accordance with line width down size, surging need more high purity
photosensitive materials
Sub 3nmnext
generation
EUV?

14-10nmArF Multi
patterning
20nm
ArF Double
patterning

10nm
14nm

20nm

7nm

5nm

3nm

2nm

14Å

7nm EUV
3D structure device

28nm
2011

2013

2015

2017

2019

2021

2023

2025

Year
Source : IMEC and TGC

15

Photoresist Market Development• EUV photoresist process started mass production in 2019
• EUV photoresist demand growth is estimated x 2.0 in 2021, x1.5 in 2022, x1.2 in 2023 compared
to previous year will overtake KrF photoresist market size in 2021 and ArF photoresist market sizein 2023.

年平均成⻑率100 million yen

CAGR rate

Current

EUV Photoresist︓65.6%
ArF Photoresist︓5.9%

KrF Photoresist︓2.5%

ResultEstimation

Projection Projection Projection

Projection Projection Projection

Source: Fuji Chimera Research Institute, Inc「Å（オングストローム）半導体プロセス材料／技術の展望調査（2018年7⽉）」より当社作成

Projection

16

FPD Market Trend•FPD market continue to grow as CAGR 3%•High end FPD combined LCD（4K&8K）& OLED shows higher CAGE, 8.6％,
then it will be count as 70% of total in 2026.
Demand outlook for FPDs (surface area)→Projection

OLED
LCD 4K&8K
LCD

FPD
2015→2019︓30% growth
CAGR︓5.4%

LCD（4K&8K）
2015→2019︓x3.2
CAGR︓33.1%

Total FPD
2019→2026︓26% growth
CAGR︓3.0%

LCD（4K&8K）
2019→2026︓77% growth
CAGR︓7.4%

OLED
2019→2026︓ x2.8
CAGR︓18.4%

Source︓IHS Marketing17Key demand driver for Photosensitive Materials/ EL Solvent
Demand for photosensitive materials will be driven by market growth, and by the need for new types ofmaterials as semiconductor and display technologies become more advanced.

TV
LCDs
Display
applications
OELDs

Photosensitive
material
demandSmartphones
Smartphones

Flash (multilayer)
MemorySemiconductor
applications

Higher resolution

SSDs

DRAM

Logic

Multiple core /multiple layer

Sensors

IoT

18

Outlooks: Photosensitive materials Application, Wave length and Line Width• Continue down size of photoresist line width need EUV process• Started mass production supply for EUV materials in 2019
• TGC continue to improve quality of photosensitive materials and diversifying product line up to＝stagnantsatisfy customerʼs needs＝growing
FPD
g＋ｈ＋
ｉline

I lineIC
G lineI line

KrF

ArF

Node

〜
〜
〜700nm 〜200nm 〜110nm 〜65nm
2,000nm 1,000nm

Application

Small & Mid
size Panel

TV, PC

Smart phoneand etc.

MarketStagnant

Stagnant
andgradually
growth

IGBT、LCD driver、
LED

Immersion

ArF
DP

〜45nm

〜22nm

ArF

DRAM/NAND memory（recovery in 2020 as projection）

Back-end process materials
Advanced logic LSI⇒ steady
CMOS sensor
Gradually
growthexpanding

TGC
Poducts

Photo Active Compound (PAC）
EL high purity solvents

stagnant steady

expanding

ArF
MP
EUV
〜7nm

〜5nm

〜2nm︖

New generation DRAM
（2020〜）
New Generation Logic LSIStart EUV process in production

CAPEX in progress

R&D

Photo acid generator（PAG）
Polymer
EL Ultra high purity solvents

19

Photosensitive Materials Capacity Up Investment•On going capacity up project to meet market demand increasing•Completed capacity up project for the existing plant as plan. After customersʼ qualification process,starting products shipment from new line accordingly.
• New production plant construction to be completed in 2020 as on going in the planed schedule.

Current
FY2018.3

Photosensitive
Materials for FPD（PAC）

Advanced polymer

Advanced
Photosensitive
Materials（PAG）

New Plant（New Productionbuilding）

FY2019.3

1H

1H

Construction

Qualification &
Training

Construction

FY2020.3
2H

Qualification &
Training

FY2021.3

1H

2H

Qualification &
Training

Operation
start

1H

FY2022.3
2H

1H

2H

Operation
start

Operation
startConstruction

Design & Construction

Qualification &
Training

Operation
start

20

Aroma chemicals products,
Chemicals logistics
and storage services

Aroma Chemicals Market
Aroma Chemicals Market share• The global aroma chemicals market is expanding at
CAGR 3-4% steadily• The top six suppliers dominate 70% of the global market.
• Major suppliers is activily doing the M&A to increase
their global market share, which is lead tooligopolization.
• TGC is a few selected aroma chemical key materials
to mainly major global aroma chemicals companies.
Our market share is estimated around 30-40% in
our segment• Global niche top position

出所︓Leffingwell & Associates

22Business Overview Chemicals (Aroma Chemicals)
Aroma chemical flow from raw materials through to finished products

Raw materials

Process

Plants,flowers,
seeds, fruit,
leaves, bark,resin, etc.

Press
Extract
DistilAnimals
Dairy, meat,
fish

RefineSynthetic raw
materials
Pulp- andalcoholbasedmaterials, etc.

Synthesize

Base material

RefineNaturalaromatics

IsolateRefineProcess

Processing
Solubilization
Powderization
Emulsification

Products

Applications

Flavors(Foodflavorings)

Confectionary
Beverages
Frozendesserts
SnacksHam
Sausages
Tooth paste
Cigarettes, etc.

Fragrances(Cosmeticfragrances)

PerfumeCologneCosmetics
Soap
Detergent
Shampoo
Air freshener
Solvents, etc.

Blend

Syntheticaromatic

Ourbusinessdomain23

Logistic Business (Advantage of Takahama Chemical Oil terminal)• Toyo Goseiʼs chemical logistics terminal distributes
liquid chemicals made in Japan or overseas toplants across the Kanto region-biggest chemicals
distribution hub as largest shipment volume inTokyo bay area
• Only chemical tank terminal run by chemicals
company and handling variety of package, own
certified analytical laboratory for the high-quality
storage management as providing service for wide
rage chemicals
Terminal has 65 bonded storage tanks with various volumes,
capable of holding chemicals with different grades and properties• Prime location close to expressway network (abouta few minutes from Chidoricho IC) shorted delivery
time to northern Kanto area where are major
chemical users located. Possible to three rounddelivery a day is appreciated by customers inshortage of tank lorry driver.

• Strict regulations in the Fire Service Act make it
difficult for new competitors to establish new
Receives 70 vessels per month Largest shipment volume inoperations in the Tokyo Bay area
the Kanto region: 80-100 Tank
lorry car per day

24

Logistic Business model①Liquid chemicals made in Japan oroverseas coming to Takahama bychemical tanker② Transfer chemical totank from tanker③ Storage at tank

④ Transfer chemicals to tank lorry
and other package from tanks⑤Deliver to users in Tokyo
metropolitan area

25

Completion of New Expressway contribute turnover rate
• Completion of Tokyo-Gaikan Expressway in 2018 further improved transport access to northern Kanto area asshortening delivery time
• # of Round trip per day increased which contribute higher operation rate at Takahama chemical oil terminal

26

Business Results for FY2020

Business Highlight for FY2020• Revenue & profit, all achieved historical record• Revenue is 24,455mio yen（vs Prev. year +1,480百万円、+6%）• For profit, Operation profit 2,184 mio yen（+624mio yen、+40%）, Ordinary profit
2,061 mio yen （+494mio yen、+32%）、 net profit1,852mio yen（+681mio yen、+58％）（Million yen）

Prev. year
ResultProjection
Projection

FY2020ResultRevenue

22,97525,500 24,455 +1,480

1,559

1,800

2,184

1,567

1,700

Net profit

1,171

Net profit per share

YOY
I/D AMTI/D %Vs Projection
I/D AMTI/D %+6％△1,044

96%

+624

+40％

+384

+121%

2,061

+494

+32％

+361

+121%

1,600

1,852

+681

+58％

+252

+116%

147.54201.58233.43

Dividend per share

10.00

20.00

20.00

FX rate（USD）¥110/$¥107/$¥109/$

Operation
ProfitOrdinary
Profit28

The summary of the Business Result FY2020■Revenue 24,4556million yen（YOY+1,480799milion yen、+6%）
 Photosensitive Materials Segment: Sales growth mainly thanks to advanced products andstable increasing FPD as YOY
 Chemicals Segment: Sales in high-end application keep growth. Aroma chemicals sales forexport increased. Solvent sales for Electronic application like memory application slightly
decreased. Logistic business kept high operation.

■Operation profit
 2,184 million yen（+624million yen、+40%）Although investment cost (labor, depreciation etc.) for the capacity improvement in photosensitive
materials segment increased, the profit increases as contribution of sales expansion mainly from high-end
application both in photosensitive materials and EL solvents as well as aroma chemical more thancompensate investment cost (labor, depreciation etc. +450million yen) for the capacity improvement inphotosensitive materials segment■Ordinary profit
 2,061 million yen（+494 million yen、+32%）
 Non-Op Exp.: No Non-Op income from FX and insurance, then interest fee increase
130milion compared to previous year

■Net profit

 1,852million yen（+681million yen、+58%）
 This term net profit included deferred tax asset, it cause higher net profit as one time.

29

Operating profit: factors for increase/decrease• Sales growth more than compensates capacity up investment
expenditure, bring profit increase
Labor /depreciation（Million yen）

+239 +52 △559

cost up in capacity
expansion

FX influence（¥110/$→¥109/$）

Inventory+248
Revaluation
Productivity+755
improvement
△106
2,184
Portfolio
Fix cost
improvement
FX
increase

1,559

Sale Growth
Prev. FY
Result+625

This FY
result30

Quarterly Sales & Operating profit trend• Quarterly sales steadily increasing（CAGR10%）, quarterly operation profit improved from 200milion to 600milio0n level• 4Q sales achieved historical highest record（6,418milllion yen）

4Q→3Q sales shift
due to plant maint.
& expansion works

Investment
coat at Chiba
Plant for capup increased

31

Photosensitive Materials Segment
Million yen＋13％

Revenue︓14,217 million yen（YOY+1,605million yen、+12.7%）• Products for high-end semiconductor
application（ArF、EUV generation）
keep good sales• Stable increasing for FPD applicationas YOY

Revenue
Operating profit＋48％

Operating profit︓1,565million
yen（YOY+507millon yen、+47.9％）• Contribution of sales expansion
contributed more than investment cost(labor, depreciation etc. +450million
yen) for the capacity improvement
increase.
32

Chemicals Segment
Revenue & Operating profit
million yen

Revenue
Operating profit

million yen

Revenue︓10,238million yen（YOY△125million yen、△1.2%）• EL solvent sales for high-end
semiconductor process & aroma
chemical increase, but Stagnant
memory IC market and commodity EL
solvent impact to sales decrease, as
result, sales slightly decreased
compared to previous year.
• Logistic business keep high operation

Operating Profit︓618million yen（YOY+117million yen、+23.4%）• Accelerating shift to high value productbusiness
33

Profit & Loss Statement• Revenue 24,455百万円（YOY+1,480百万円、+6％）• Gross Profit more than compensated fix cost up (+450million yen）, recorded 5,262million yen（YOY+726百万円、+16%）and profitability improvement (YOY+1.7pt) thanks to good sales with high end products.
• Operating profit achieved 2,184million yen（YOY+624百万円、+40%）as contolling selling expense within
100million inrcase.
［Gross profit +435］
Product portfolio
2020.3（Million yen）
2019.3 end
I/D AMTID %improvement、high value
end
product expansion
Revenue
22,97524,455+1,480+6%
contribute profit
improvement
COGS
18,43819,192+754+4%(19.7%→21.5%）
Gross Profit
4,536
5,262
+726
+16%
Selling Exp.

2,976

3,078

+101

+3%

1,559

2,184

+624

+40%

Non-Op profit

162

94

△67

△42%

Non-Op Exp.

154

217

+63

+41%

Ordinary profit

1,567

2,061

+494

+32%

Extraordinary P&L

△56

△48

+8

△14%

Profit before Tax

1,511

2,013

+502

+33%

340

160

△179

△53%

1,171

1,852

+681

+58%

Op. Profit

Tax
Net Profit［Non-ope profit △67、
Non-ope expense +63］
FX gain △33、FX loss +56

34

Cash Flow
• CF of operating activities︓3,463million yen（+1,365百万円、+65%） Sales increase 1400milion contributed profit expansion（＋
500million yen）, and WIC improvement (+500million yen) for strategic investment• CF of investing activities︓△5,179miilion yen as executed cash out for photosensitive material business capacity• CF of financing activities︓△80miilion yen as result payback bank loan

(million yen)
CF of operating activities
Profit before income taxes
Depreciation
Increase (decrease) in
account receivable
Increase (decrease) ininventories
Increase (decrease) in
accounts payable

2019.3期 2020.3期
2,097
3,463
1,511
2,013
1,944
2,172

増減額
+1,365
+502
+228

△619

△339

+279

△713

△197

+516

222

△94

△316

△247
△2,499
△401
3,268

△90
△5,179△1,715△80+156△2,679△1,313△3,348

Effect of exchange rate change on
cash and cash equivalents

20

△33

△53

Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at endof period

2,886△1,829△4,716

5,000

3,170

△1,829OthersCF of investing activities
Free ・Cash Flows
CF of financing activities［AR ＋279、Inventory +516、
AP △316］
Improve WIC by operation
activity

35

Balance Sheet• Shareholderʼs equity increased 1,733million yean thanks to net profit increase , equity ratio also increased to 27%（+3pt）• Spent profit and cash into photosensitive material production expansion, then tangible asset+3,546 million yen、 facility accountpayable and etc +426millon yen, as result Interest-bearing debt keep +203million yen（million yen）
Current assets
Cash
Accounts receivable
Inventories
othersFixed assets
tangible assets
Intangible assets
Inv.& other assets
Assets total
Liabilities
accounts payableinterest-bearing debt
othersNet assets
Shareholderʼs equity
valuation/translationdifference
Liabilities & Net
Assets Total

2019.3 end
17,228
5,412
4,314
6,822
679
19,637
18,566417
653
36,86528,024
3,094
17,984
6,945
8,841
8,830

2020.3 end
15,503
3,582
4,654
7,019
246
23,627
22,112407
1,107
39,13028,561
3,000
18,188
7,372
10,56910,563

I/D AMT
△1,725△1,829
339
197
△433
3,990
3,546
△10
453
2,264
536
△94
203
426
1,728
1,733

11

5

△5

36,865

39,1302,264［Cash △1,829］
cash out for facility
investment［Tangible asset +3,546］
Due to investment forphotosensitive material
capacity up［equity ratio］
27.0%（YOY+3.0pt）

36

Measurement for COVID-19

Measurement for COVID-19
 As of May 14, no infected employee
 As of Feb 27, set up COVID-19 countermeasures office under CEO’sleadership① Countermeasures for commuting Apply Time difference work, Car commuting or Tel-work for all site Apply Tel-work for HQ in Tokyo and Sales office in Osaka as principle.
② Business trip, Customer visit and internal meeting Ban visit other office as principle
 Use WEB meeting, TVG meeting, tele conference as much as possible to reduce
infection risk
 Asking same rule for all customer, vender and etc who have chance to come to TGC③ Countermeasures for work Ask employee (who has Cold symptoms) to stay home
 Within TGC site, all person inquired to wear mask, washing hand, alcohol finger
disinfection and Gargling Asking same rule for all customer, vender and etc who have chance to come to TGC

Appreciate all who cooperating with us and continue keep our operation
under good safety and health management
38

Support to local community• Donate disinfection solution to local government in near our site( Chiba
Ichikawa city, Tonosho town, Hyogo Awaji city). TGC continue to support
local communities.

Left above）Ichikawa city fire station withdisinfection solution (ethanol 90L)
Right above）Tonosho Town with disinfection
solution (ethanol 90L and hypochlorous acidsolution)
Left bottom）Hyogo Awaji city with disinfection
solution (ethanol 90L)

39

Progress for Mid term plan
TGC300Semiconductor Market Development & Projection• Since 1980era, information society is driving IC market demand growth.
• In 2020, growth rate will be 0 or minus• Thanks to progress of information communication technology support IC demand
growth, x1.5-2.0 for 2020-2030
World IC Market Sales

2017 result 21.6% growth
CAGR 7%2018 result 13.7% growth（WSTS ）2019 projection -12.2% down（WSTS 2019.12）
2020 projection -4% down（IC Insight 2020.4）

CAGR 5-6%

Source: WSTS & Fuji Chimera Research Institute, Inc

Projection

41

Down Size by photo lithography• Semiconductor Node (Line Width) continues to be down size, 5nm technology in mass
production now.
• For 2025, 2nm node process is under development• In accordance with line width down size, surging need more high purity photosensitive
materials
Sub 3nmnext
generation
EUV?

14-10nmArF Multi
patterning
20nm
ArF Double
patterning

5nm

3nm

2nm

14Å

7nm
10nm
14nm
20nm

7nm EUV
3D structure device

28nm
2011

2013

2015

2017

2019

2021

2023

2025

Year
Source : IMEC and TGC

42

Photoresist Market Development• EUV photoresist process started mass production in 2019
• EUV photoresist demand growth is estimated x 2.0 in 2021, x1.5 in 2022, x1.2 in 2023
compared to previous year will overtake KrF photoresist market size in 2021 and ArF
photoresist market size in 2023.
年平均成⻑率100 million yen

CAGR rate

Current

EUV Photoresist︓65.6%
ArF Photoresist︓ 5.9%

KrF Photoresist︓ 2.5%

ResultEstimation

Projection

Projection

Projection

Projection

Projection

Projection

Projection

Source: Fuji Chimera Research Institute, Inc「Å（オングストローム）半導体プロセス材料／技術の展望調査（2018年7⽉）」より当社作成

43

FPD Market Trend•FPD market continue to grow as CAGR 3%•High end FPD combined LCD（4K&8K）& OLED shows higher CAGE, 8.6％, then it
will be count as 70% of total in 2026.
Demand outlook for FPDs (surface area)
OLED→Projection
LCD 4K&8K

LCD

FPD
2015→2019︓30% growth
CAGR︓5.4%

LCD（4K&8K）
2015→2019︓x3.2
CAGR︓33.1%

Total FPD
2019→2026︓26% growth
CAGR︓3.0%

LCD（4K&8K）
2019→2026︓77% growth
CAGR︓7.4%

OLED
2019→2026︓ x2.8
CAGR︓18.4%

Source︓IHS Marketing

44Composition of photoresist• Toyo Gosei’s photosensitive materials are a critical component inphotoresists used to make semiconductors and FPDs.
Commonphotoresist
composition ratio

AdditivesPhotosensitive materials
PAG: Photo Acid Generator
PAC: Photo Acid Compound
Several% to several tens% for polymer

Photoresist (liquid form)

Total 100%

*Blended with other materials by photoresist makers

Our main products

High-purity organic solvent(PGMEA, EL etc.)

Polymer（Resist resin、Basepolymer) 〜10％45

Progress for Mid term plan TGC300• Under COVID-19 outbreak, our business have risk for sales down, but we keep our mid
term plan and try to achieve its goal:TGC300︓2023 ending with sales 30billion yen、
ordinary profit 3billion yen、ordinary profit more than 10％. Keep dividend as 20 yen per
share.
ordinary profit %• Exceeded our 2nd year plan in TGC300（vs Projection Sales △4％、Ordinary profit+21％）（vs TGC300 Sales △6%、Ordinary profit b+19%）• Expanding Electronic material supply ability,
production capacity investment on going asschedule

Revenue million yen
Ordinary profit
million yen

 Existing facility enhancement→completed New production building at Chiba plant→on going for completion by Sept 2020
• TGC all together work for TGC300 achievenment（Plan）（Plan）

Medium-term management plan

46

FY2021 March ending
Projection

Background for FY2021 March ending projection■ Market environment• COVID-19 outbreak influence to demand for car, automobile and etc, it may
lead risk of IC & FPD sales slow down
• 5G infrastructure investment, information communication technology
innovation and data center investment brig continuous demand increase forhigh end IC, and expecting daily necessities products such as aroma
chemicals for toiletry application steadily growing under the circumstance■Present status and assumption• FY2020 March ending 4QT- FY2021 March ending 1QT, sales is increasing
thanks to customer inventory increase for risk management under COVID19 outbreak• FY2021 March ending 2Q〜3Q, consumer sales have risk to shrink.
• TGC’s fixed cost will increase in 2nd half (YOY +800million yen) due to newbuilding completion at Chiba plant48

2021 March ending projection
Assumption• Sales for High end IC application (both Photosensitive & Chemical segment) and aroma
chemical business continue to grow.
• Count for fixed cost increase (+800mio yen) as completion of new product building at Chiba plant on
Sept , it bring lesser profit vs FY2020 Mach ending• FY rate is ¥105/$, dividend per share 20yen per share, no change form last FY（million yen）

2020.3
result2021.3
Projection

Prev. result vs projection
I/D AMTI/D %24,45525,000

+545

+2.2%

Operating profit

2,184

1,800

△384

△17.6%

Ordinary profit

2,061

1,700

△361

△17.5%Net profit

1,852

1,100

△752

△40.6%

Earnings per share
Dividend per share

233.4320.00

138.5920.00

FX rate（USD）¥109/$¥105/$

Revenue※This is best our assumption on
May 12 2020. We will promptly
disclose new projection at any
changes in the forecast.

49

Progress of Photosensitive Materials Capacity Up Investment•On going capacity up project to meet continuing increased demand from the market•Completed 1st phase as PAC(FPD) and advanced polymer production capacity up as well as 2ndphase as PAG (advanced materials)• On going 3rd phase for new production as to be completed in 2020 Sept.

Current
FY 2018.3 end

2HPhotosensitive
Materials for
FPD

Construct

Advancedpolymer

Construct

Advanced
Photosensitive
Materials
New Plant（New Building）

FY2019.March end

1H
Qualification& Training

Qualification& Training

FY2020 March end

2H

1H

2H

FY2021.March end
1H
2H

Operation

Operation

Construct

Qualification& Training

Operation

Design & Construction

Qualification &Training

Operation

50

Capital Investment & Depreciation History• CAPEX for FY2021 ending plan as same level as previous year( about 5.5billion yen)
• Dep. Will be same level in FY2008
million yen

Capital Investment & Depreciation
CAPEX Amount
Depreciation Amount

Investment for
new plant for
Photosensitive
materials

（年度）

51

Photosensitive Materials (Chiba Plant）Construction status【The drawing of new productionbuilding at completion】【Construction status】
as of 2021 Apr 1752

独創的な視点で世界へ
Individual Development, to the global Chemical（⾒通しに関する注意事項）
本資料の業績予想は、現時点において⾒積もられた⾒通しであり、これまでに⼊⼿可能な情報から得られた判断に基づいております。
従いまして、実際の業績は、様々な要因やリスクにより、この業績予想とは⼤きく異なる結果となる可能性があり、いかなる確約や保証を⾏うものではありません。