TOKYO OHKA KOGYO CO., LTD.
Business Results― Fiscal Year ended March 2017―

May 10, 2017

© 2017 TOKYO OHKA KOGYO CO., LTD.

Contents

1. Consolidated Business Results for
FY2017 (2016.4-2017.3)

p.2

2. Consolidated Performance Forecasts for
FY2017 (2017.4-2017.12)

p.13

p.23
3. Topics- Initiatives under TOK Medium-Term Plan 2018 -© 2017 TOKYO OHKA KOGYO CO., LTD.

Consolidated Business Results for
FY2017(2016.4-2017.3)© 2017 TOKYO OHKA KOGYO CO., LTD.

Summary

03(Millions of yen ）FY2017FY2016

Change%Net sales

89,96988,764(1,204)(1.3)

Operating income

12,4389,954(2,483)(20.0)

Ordinary income

12,684

9,867(2,817)(22.2)

Profit attributable toowners of parent

7,716

6,343

(1,373)(17.8)■Average exchange rate (US$)： ¥119.3／$（FY2016）⇒¥107.1／$（FY2017)■Net sales：Decreased 1.3% due to weaker sales in Equipment Business despite exceeding
the revised forecast (on October 27, 2016).
■Operating income：Decreased due to decline in Material Business from yenʼs appreciation,and steeper loss in Equipment Business.
■Profit attributable to owners of parent：Decreased due to the decline in operating income
and foreign exchange losses.
© 2017 TOKYO OHKA KOGYO CO., LTD.

Non-operating Expenses or Income/Extraordinary Losses or Income

04（Millions of yen）

FY2016
Non-operating Expenses or income

FY2017

YoY

246

(87)

(333)

+287

+277

(10)

(△371)(642)+270(△885)(445)(439)(△514)+196(710)

Equity in earnings of an associate

+219

+126

(93)

Operating preparation expenses

(339)

－

+339

(906)

(647)

+259

+50

+265

+215

Impairment loss

(752)

(678)

+74

Losses due to disasters

(108)

(91)

(91)

Interest and dividend income(Foreign exchange related losses/gains)
Foreign exchange (loss) gain
Loss(gain) on valuation of derivatives

Extraordinary losses or Income
Gain on sale of investment securities© 2017 TOKYO OHKA KOGYO CO., LTD.

Results by Business Segment

05（Millions of yen）

FY2017FY2016
Net sales

Change%89,96988,764(1,204)(1.3)

87,28086,558

(721)

(0.8)

Electronic
functional materials

51,13453,074+1,940+3.8

High purity
chemicals

35,931

33,475(2,456)

(6.8)

214

9

(204)

(95.6)

2,689

2,205

(483)

(18.0)

12,4389,954(2,483)(20.0)

16,203

14,470(1,733)(10.7)

(423)

(750)

(327)

－

(3,342)(3,764)(422)－

Material business

Other
Equipment business
Operating income
Material business
Equipment businessEliminations andcorporate© 2017 TOKYO OHKA KOGYO CO., LTD.

Breakdown of the Charge in Operating Income(Material Business)

06

FY2016 result v.s. FY2017 result
Expenses increase(¥0.6billions)Improvement inproduct mix＋¥3.1billions¥16.2

Impact of exchange rate changes
andDiscounted selling prices(¥4.2billions)billions¥14.5

FY2016
Result

FY2017
Resultbillions(¥1.7billions)© 2017 TOKYO OHKA KOGYO CO., LTD.

Sales Breakdown of Material Business
Net Sales（Millions of yen）

25,00022,18246

20,00021,261
62

9,175

8,446

12,96012,75315,00019,65460
7,367

21,92122,019

25

(16)

8,300

8,590

13,595

13,44507

22,963(60)
9,216

10,0005,000

12,227

13,8060
2016/Q3 2016/Q4 2017/Q1 2017/Q2 2017/Q3 2017/Q4
Electronic functional materials

High purity chemicals

Other© 2017 TOKYO OHKA KOGYO CO., LTD.

Electronic Functional Materials Division
Sales Composition of Electric
Function Materials by Type
Other
High-density
integration*

10%

Semiconductor
Photoresist

g+i

17%

12% FY2016
LCD

Full-year

13%

result

22%

ArF

26%

Semiconductor
Photoresist

Other

LCD

11%

Sales Composition of Semiconductor
Photoresist by Region

Japan

20%

FY2016
Asia Full‐year North America
57% result 18%

KrF

High-density
integration* 17%

08

9%

g+i

16%

FY2017 KrF
Full‐year
23%
resultArF

24%* High-density integration：
Resist for Packaging, MEMS Materials

5%

EuropeJapan

23%

FY2017
Asia
Full‐year North
56% result
America
16%
5%Europe© 2017 TOKYO OHKA KOGYO CO., LTD.

Equipment Business09

Net sales/Order backlog（millions of yen）
2,000
1,500
1,000

Net sales
Order backlog

1,719
1,321

1,210
969

998

955

884
529

500
0

2016/1H

2016/2H

2017/1H

2017/2H(Millions of yen）

2016/1H

2016/2H

2017/1H

2017/2H

Year-end orderbacklog

1,440

1,140

1,016

966

© 2017 TOKYO OHKA KOGYO CO., LTD.

Capital Investments/Depreciation/R&D

10（Millions of yen）
14,577

15,00012,5009,378

10,000
7,500
5,000

6,389

6,211

5,332

7,276

7,015

6,903

5,919

3,758

2,500

8,207

4,276

6,118

5,631

2,672

0
FY2013

FY2014

Capital investments

FY2015
Depreciation

FY2016FY2017
R&D© 2017 TOKYO OHKA KOGYO CO., LTD.

Balance Sheets

11

As of
March 31, 2017

Current Assets（Million of yen）
YoY

88,647+1,533

Cash and deposits

49,663(1,212)

Notes and accounts
receivable

19,893+1,972Inventories

13,613+613

Property, plant andequipment

49,666+1,752640(108)

Investments and other assets

35,537+4,013Current Liabilities

19,536+2,405

9,607+1,819

2,024

(874)

Total net asset

152,931+5,660Total asset

174,492+7,192Intangible assets

Notes and accounts
payableLong-Term Liabilities

Buildings and structures
Machinery
Furniture and fixtures
Land
Construction in progress(36)+1,067
+806
(121)
＋37

Retained earnings+3,349Treasury stock+1,153
Unrealized gain on available-for-sale securities+1,860Foreign currencytranslation adjustments(1,290)© 2017 TOKYO OHKA KOGYO CO., LTD.

Cash Flows

12（Millions of yen）
FY2016FY2017

Cash flows from operating activities+11,902+12,476

Income before income taxes andminority interests+11,777+9,220+5,631+6,118(18)+180

Decrease (increase) in trade notes
and accounts receivable+1,200(2,124)

Decrease (increase) in inventories(1,755)(915)

Decrease (increase) in trade notes
and accounts payable(1,522)+1,836(5)+327(4,157)(2,567)

Cash flows from investing activities(4,385)(13,402)

Cash flows from financing activities(9,268)(2,370)

(298)

(358)

(2,049)(3,608)Depreciation
Increase (decrease) in allowance for
doubtful accounts

Increase (decrease) in advances
received
Income taxes paid

Translation adjustments
Net increase (decrease) in cash andcash equivalents

Major breakdown
Purchases of property,
plant and equipment
Major breakdown
Purchases of treasury stock
Dividends paid(incl. minority shareholders)(9,008)+823(2,769)© 2017 TOKYO OHKA KOGYO CO., LTD.

Consolidated Performance Forecasts for
FY2017(2017.3-2017.12)© 2017 TOKYO OHKA KOGYO CO., LTD.

Change in Fiscal Year-End

14

 Detail of change in fiscal year-end

Current：end of march ⇒ after：End of December
2017/33Q
10-12

Fiscal year ended in March（TOK and domestic subsidiaries）
Fiscal year ended in December（Overseas subsidiaries）

4Q
1-3

1Q

2017/122018/12

1Q
4-6

2Q
7-9

3Q
10-12

4Q
1-3

1Q
4-6

2Q
7-9

3Q
10-12

1Q
1-3

2Q
4-6

3Q
7-9

4Q
10-12

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

4Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

 Explanation about earnings forecastsDiscussion centers on forecasts for the fiscal year ending December 2017 (announced on May 9,2017 ).
Results for the fiscal year ended March 2017 are adjusted to show April-December for domestic
business and January-December for overseas business, and presented for comparison as “Adjusted
results for the fiscal year ended December 2016”.
2016/12 Simulation
3Q
10-12

4Q
1-3

Domestics
Overseas

1Q

2017/12 Forecast

2018/12

1Q
4-6

2Q
7-9

3Q
10-12

4Q
1-3

1Q
4-6

2Q
7-9

3Q
10-12

1Q
1-3

2Q
4-6

3Q
7-9

4Q
10-12

1Q

2Q

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

4Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Attention : The change in the fiscal year-end is pending approval by the 87th Ordinary General Meeting of
Shareholders to be held in June 2017.

© 2017 TOKYO OHKA KOGYO CO., LTD.

Earnings Forecasts：
Previous Basis/Change in Fiscal Year-End①

15

Expected to return to growth trend after declines in sales and profits
in the fiscal year ended March 2017.
（Millions of yen）
FY2017(2016.4~2017.3)
Result

FY2018(2017.4~2018.3)
Forecast%

FY2017(2017.4~12)
Forecast

Net sales

88,764

98,500+11.0

88,800Operating income

9,954

11,100

+11.5

8,400

Ordinary income

9,867

11,400

+15.5

8,600

6,343

7,200

+13.5

4,900

Profit attributable toowners of parent

Attention : Forecasts for the fiscal year ending March 2018 (previous basis) are our estimates if the change infiscal year-end does not occur, using a full 12 months for both domestic companies (April-March) andoverseas companies (January-December). One-time costs associated with the change in fiscal yearend are not included in these forecasts.

© 2017 TOKYO OHKA KOGYO CO., LTD.

Earnings Forecasts ：Previous Basis/Change in Fiscal Year-End ②

16（Millions of yen）
FY2017(2016.4-2017.3)
ResultNet sales*1

FY2018 (2017.4-2018.3)
Forecast*2%

FY2017(2017.4-2017.12)
Forecast

88,764

98,500+11.0

88,80086,55894,700+9.4

86,100Electronic functional
materials

53,074

56,100+5.7

49,600High purity chemicals

33,47538,500+15.0

35,900

2,205

3,800

+72.3

2,700

9,954

11,100

+11.5

8,400

14,47015,300+5.7

12,000

(750)

(500)

－

(600)

(3,764)(3,700)－(3,000)Material business

Equipment business
Operating income
Material business
Equipment businessEliminations and corporate＊1: Net sales of the Equipment Business are the figures after elimination of inter-segment sales.
＊2: Forecasts for the fiscal year ending March 2018 (previous basis) are our estimates if the change in fiscal yearend does not occur, using a full 12 months for both domestic companies (April-March) and overseas companies(January-December). One-time costs associated with the change in fiscal year-end are not included in these
forecasts.
© 2017 TOKYO OHKA KOGYO CO., LTD.

Earnings Forecasts (Full-year)

17

Earnings on a growth trend, but forecast decline in profits
due to change in fiscal year-end.

（Millions of yen）

FY2016(2016.4-2016.12)
Simulation result

FY2017 (2017.4-2017.12) Forecast
Change%Net sales

80,76188,800+8,038+10.0

Operating income

9,310

8,400

(910)

(9.8)

Ordinary income

9,119

8,600

(519)

(5.7)

Profit attributable toowners of parent

5,485

4,900

(585)

(10.7)

Attention: To facilitate comparisons with earnings forecasts for the fiscal year ending December 2017, simulation results for the fiscal
year ended December 2016 are presented as simulated figures for nine months (April-December 2016) earnings ofcompanies that end their fiscal years in March (the Company and its domestic consolidated subsidiaries)■Exchange rate assumptions（US$）： ¥105.4／$（2016/12）⇒¥110.0／$（2017/12）■Net sales: Expect sales to increase, mainly in Material Business, alongside sales growth in electronic
functional materials and recovery in high-purity chemicals.
■ Operating in come : Expect profits to decline, despite higher sales, owing to increased depreciation andcosts associated with change in fiscal year-end.
© 2017 TOKYO OHKA KOGYO CO., LTD.

Performance Forecasts by Business Segment

18（Millions of yen)
FY2016(2016.4-12)
Simulation
resultNet sales*1

Change%80,76188,800+8,038+10.0

78,842

86,100+7,257+9.2

Electronic functional
materials

47,31849,600+2,281+4.8

High purity chemicals

31,02635,900+4,873

+15.7

1,918

2,700

+781

+40.7

9,310

8,400

(910)

(9.8)

12,44812,000

(448)

(3.6)

(333)

(600)

(266)

－

(2,804)(3,000)(195)－

Material business

Equipment business
Operating income
Material business
Equipment businessEliminations and corporate*1:*2:

FY2017 (2017.4-12) Forecast*2

Net sales of the Equipment Business are the figures after elimination of inter-segment sales.
To facilitate comparisons with earnings forecasts for the fiscal year ending December 2017, adjusted results for the fiscal
year ended December 2016 are presented as adjusted figures for nine months (April-December 2016) earnings ofcompanies that end their fiscal years in March (the Company and its domestic consolidated subsidiaries).
© 2017 TOKYO OHKA KOGYO CO., LTD.

Capital Investments/Depreciation/R&D

19(Millions of yen)
FY2016(2016.4-12)
Simulation result

FY2017 (2017.4-12) Forecast
Change%CapitalInvestments

8,469

7,800

(669)

(7.9)

Depreciation

5,236

6,100

+863

+16.5

R&D

6,240

6,900

+659

+10.6

Attention:
To facilitate comparisons with earnings forecasts for the fiscal year ending December 2017, simulation
results for the fiscal year ended December 2016 are presented as simulated figures for nine months(April-December 2016) earnings of companies that end their fiscal years in March (the Company and its
domestic consolidated subsidiaries)© 2017 TOKYO OHKA KOGYO CO., LTD.

Breakdown of the Charge in Operating Income(Material Business)

20

FY2016(2016.4-12) Simulation Result v.s.
FY2017 (2017.4-12) Forecast
Expenses increase(¥2.0)billions

Costs associated with change in fiscal year-end(¥0.8)billions¥12.4

Impact ofsales increases, etc＋¥2.3billions

Impact of
Exchange rate changes
anddiscounted selling prices+¥1.0billions

billions¥12.0

FY2016 (2016.4-12)
Simulation result

FY2017(2017.4-12)
Forecast

billions¥0.4billions

Attention: To facilitate comparisons with earnings forecasts for the fiscal year ending December 2017, adjusted results for the fiscal
year ended December 2016 are presented as adjusted figures for nine months (April-December 2016) earnings ofcompanies that end their fiscal years in March (the Company and its domestic consolidated subsidiaries).
© 2017 TOKYO OHKA KOGYO CO., LTD.

Sales Breakdown of Material Business（Forecast）21
Net sales（Millions of yen）

50,00040,00043,835105

43,444108

41,57686

18,30917,621

15,66725,42025,71425,822

2016/1H

2016/2H

2017/1H（2016.4-9）

30,00044,982

46,20048,500Influence offiscal year changed
↓

100

600

19,300(76)

017,80819,20039,90016,70020,00010,0000

2016/1H

2016/2H

2017/1H(2016.4-9)

Electronic Functional materials

27,25127,0002017/2H

2017/1H

22,6002017/2H）

2017/2H（2016.10-2017.3） 2017/1H（2017.4-9 Forecast） 2017/2H（2017.10-12 Forecast(2016.10-2017.3)(2017.4-9)(2017.10-12)

High purity chemicals

29,1002018/2H
Forecast)

2018/2H (2017.10-2018.3(2017.10-2018.3)

Other

Attention:• The second half forecast is obtained by subtracting first-half results from the full-year forecast.
• The 2nd half forecast is obtained by subtracting the1st half results (6 months each for domestic and overseas companies) from the fullyear forecast (9 months for domestic companies, 12 months for overseas companies).
• The 2nd half forecast for the year ending March 2018 is obtained by subtracting the 1st half forecast (the same for the 1st half forecast
for the fiscal year ending December 2017) from the full year forecast for the year ending March 2018 (12 months each for domestic andoverseas companies).
© 2017 TOKYO OHKA KOGYO CO., LTD.

Electronic Functional Materials Division
Sales Composition of Semiconductor
Photoresist by Region

Sales Composition of Electric
Function Materials by Type
Other
High-density
integration*

8%

g+i

Semiconductor
Photoresist

16%
FY201618%(2016.4 12) KrF(2016.4-12)
Simulation 22%
LCD
11% result
ArF
25%* High-density integration：
Resist for Packaging,
MEMS Materials

Japan

19%

Asia

57%
Semiconductor
Photoresist

FY2016(2016.4 12)(2016.4-12)

North
America

Simulation
result18%
6%EuropeOther

High-density
integration*

17%
LCD
10%

7%

g+i
15%

FY2017
KrF(2017.4-12)
Forecast
ArF
27%

22

24%

Japan
Asia

FY201720%(2017.4-12) North
America
56% Forecast

18%

6%

EuropeAttentions : To facilitate comparisons with earnings forecasts for the fiscal year ending December 2017, simulation results for the fiscal
year ended December 2016 are presented as simulated figures for nine months (April-December 2016) earnings of companies
that end their fiscal years in March (the Company and its domestic consolidated subsidiaries)© 2017 TOKYO OHKA KOGYO CO., LTD.

Initiatives in
TOK Medium-Term Plan 2018

© 2017 TOKYO OHKA KOGYO CO., LTD.

1.TOK Medium-term Plan 201824

Plan to change fiscal year-end, aim for record-high profits in the final fiscal
year (for the year ending December 2018).
TOK MediumTerm Plan 2015

Operating income（Billions of yen）

200
175

GlobalFinancial crisis

150
125
100

Urgentbusiness
profitability

Structural reforms
Learn corporate
structure

*
132

50
0
(25)

09/3

3

( 13)

10/3

61

61

11/3

12/3

78

100

13/3

14/3

15/3

FY 2020
TargetChange in Fiscal YearEnd of March⇒ End of December

Record ofhigh profits

75
25

TOK MediumTerm Plan 2018

124

16/3

200
150

99

17/3

84

17/12
Budget

18/12
Target20/12
TargetAttention:• Due to plan to change fiscal year-end, figures shown with 12 months for both domestic and overseas companies(previous basis).
• December 2018 target is target for the final fiscal year of TOK Medium-Term Plan 2018 (announced on May 10, 2016).
© 2017 TOKYO OHKA KOGYO CO., LTD.

2. TOK Medium-Term Plan 2018
Summary of first fiscal year activities
Strategy25①Reform of business portfolio③Develop global personnel②Evolve strategy of building aclose relationships④Strengthen our management foundation

Summary of first fiscal year activities（2016.4-2017.3）
Semiconductor Photoresist

ArF Resist : Drop-off period for sales expansion, strengthened R&D infrastructure.



KrF Resist : Increased shipments for 3D-NAND, posted record-high net sales.

High-density integration materials :Broadly achieved Medium-Term Plan targets, faster-than-expected growth.
High purity chemicals
For semiconductor manufacturing: Enhanced mass production facilities for cuttingedge nodes.

New Business/New Materials :Made progress in commercializing focused themes.
High-functional films: Completed new plant, developed mass production system.

Equipment business :Developed equipment for promising targets, lent out actual equipment, etc.
© 2017 TOKYO OHKA KOGYO CO., LTD.

3-1.ArF resist／KrF resist
 ArF：sales trend

FY2016
Sales=100

Approx.
1.5 times＊

Change in demand from major manufacturers
switching to new process and expanding mass
production of devices adopting ArF resist.

Stronger demand as major manufacturers increase
production and switch to new process.

17/3

17/12
Forecast

 KrF： sales trend

18/12
Target

Approx.
1.4 times＊

FY2016
Sales=100



16/3

26

Major manufacturers increase mass production of
3D-NAND⇒Other manufacturers to increase mass production.

16/3

17/3

17/12
Forecast

18/12
Target* Due to plan to change fiscal year-end, figures shown with 12 months for both domestic and overseas companies (previous
basis). December 2018 target is target for the final fiscal year of TOK Medium-Term Plan 2018 (announced on May 10, 2016).
© 2017 TOKYO OHKA KOGYO CO., LTD.

3-2. High-density integration materials

27

Temporary plateau ahead, but no change in business growth potential.

*

Approx.
1.5 times

FY2016
Sales=100
Resist for Packaging
・ Adopted in FO-WLP manufacturing process. Optimization involume of applied resist with advances in mass production.
・ Maintain aggressive stance on growth in next-generation
memory and FO-WLP technologies.

Completed mass production facility of MEMS
materials(Sagami Plant)

MEMS Materials
・ Address new needs of electronic components manufacturers,
etc. ⇒ Move deeper into markets in North America and Asia.

16/3

17/3

17/12
Forecast

18/12
TargetMEMS Materials*Due to plan to change fiscal year-end, figures shown with 12 months for both domestic and overseas companies (previous basis).
December 2018 target is target for the final fiscal year of TOK Medium-Term Plan 2018 (announced on May 10, 2016).
© 2017 TOKYO OHKA KOGYO CO., LTD.

3-3. High purity chemicals

28

Sharp recovery from decline due to process switch, close
relationships with customers was successful.
FY2016
Sales=100*

Approx.
1.1 times

Enhanced mass production facility for cutting-edge nodes.
Tongluo plant of TOK TAIWAN Co., LTD.

16/3

17/3

17/12
Forecast

18/12
Target* Due to plan to change fiscal year-end, figures shown with 12 months for both domestic and overseas companies (previous
basis). December 2018 target is target for the final fiscal year of TOK Medium-Term Plan 2018 (announced on May 10, 2016).
© 2017 TOKYO OHKA KOGYO CO., LTD.

4-1.Share-holder Returns

29

Annual dividends of ¥64 per share planned for the fiscal year ending December 2017,
despite being a 9-month period, a substantial increase in dividends.
Dividend policy・Dividends applicable to theyear per share（yen）
・Considering the current level of dividends, continuously
distribute dividends with a consolidated dividend payout
ratio of over 40%.

Purchase of treasury stock

ROE & Operating income

ROE

5.8%

6.2%
5.3%

4.5%

4.4%

・Implement flexibly, but none undertaken in the fiscal
year ended March 2017.
Cash dividends
applicable to the year
（yen）
52

60

64

64
64
（Plan）（Forecast）

44

2013/3

30.9%

30.5%

2014/3

2015/3132

57.0%

Dividend payout ratio(Consolidated)

36.2%

Operatingincome（Billions）

124

100

99

78

43.8%
36.1%

2016/3＊2017/32017/12

Forecast＊:Including 4 yen of commemorative
dividend for 75th anniversary in FY2016

2013/3

2014/3

2015/3

2016/32017/3© 2017 TOKYO OHKA KOGYO CO., LTD.

http://www.tok.co.jp/（Note）
This presentation material contains forward-looking statementsthat describe future prospects of TOKYO OHKA KOGYO CO., LTD.
(the Company) in terms of business planning, earnings andmanagement strategies. Such statements are based on
managementʼs judgement, derived from information available to it
at the time such information was prepared. Readers are cautioned
not to rely solely on these forward-looking statements, as actual
results and strategies may differ substantially according tochanges in the Companyʼs business environment.

© 2017 TOKYO OHKA KOGYO CO., LTD.