Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending December 31, 2022 [J-GAAP]
August 4, 2022
Company name:Tokyo Ohka Kogyo Co., Ltd.
Listing:
Tokyo Stock Exchange (Prime Market)
Securities Code:4186
URL: https://www.tok.co.jp/eng
Representative: Noriaki Taneichi, President and Chief Executive Officer
Inquiries: Daisuke Matsuyama, General Manager, Accounting Division TEL: +81-44-435-3000
Scheduled date to file quarterly securities report:
August 5, 2022
Scheduled date to commence dividend payments:
September 7, 2022
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 2022 (January 1,
2022 to June 30, 2022)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year-on-year.)Net salesFirst six months ended
June 30, 2022
June 30, 2021

Operating income

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

84,71164,80830.7
13.3

14,810
9,574

54.7
43.7

15,353
10,052

52.7
48.1

9,723
6,399

51.9
37.9

(Note) Comprehensive income:First six months ended June 30, 2022
First six months ended June 30, 2021

Basic earnings per shareFirst six months ended
June 30, 2022
June 30, 2021

¥15,545 million¥10,703 million[ 45.2%][142.8%]

Diluted earnings per share

Yen

Yen

241.92154.05241.52
153.73(2) Consolidated Financial Position
Total assets
As ofJune 30, 2022
December 31, 2021
(Reference)

Equity:Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

231,295
217,264

175,262
165,190

71.7
71.7

4,117.91
3,880.18

As of June 30, 2022: ¥165,750 million

As of December 31, 2021: ¥155,829 million

2. Cash Dividends
Annual dividends per shareFirst quarter-end

Second quarter-end Third quarter-end

Yen

Yen

Fiscal year ended December 31, 2021

-

62.00

Fiscal year ending December 31, 2022
Fiscal year ending December 31, 2022
(Forecast)

-

78.00

Fiscal year-end

Yen

Total

Yen

Yen

-

94.00

156.00-80.00

158.00(Note) Revisions to the most recently disclosed dividend forecasts: None

3. Consolidated Financial Results Forecast for Fiscal Year Ending December 31, 2022 (January 1, 2022 to
December 31, 2022)(% indicates the rate of increase/decrease against the same period of the previous year)

Net sales
Millions of yen

Full year

171,800

Operating income% Millions of yen

22.7

30,000

Profit attributable toowners of parent

Ordinary income% Millions of yen

44.9(Note) Revisions to the most recently disclosed earnings forecasts: None

31,000

Basic earnings
per share%

Millions of
yen

%

Yen

43.1

20,40014.9

506.59

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation): None
(2) Application of special accounting treatment in preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(Note): Please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (4) Notes to Quarterly Consolidated Financial
Statements (Changes in Accounting Policies)” on page 9.

(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022
As of December 31, 2021

(ii)

42,600,000 shares
42,600,000 shares

Number of treasury shares at the end of the period
As of June 30, 2022
As of December 31, 2021

2,348,963 shares
2,439,651 shares(iii) Average number of shares outstanding during the period
First six months ended June 30, 2022
First six months ended June 30, 2021

40,193,516 shares
41,539,314 shares* The Financial Results report is outside the scope of a quarterly review by certified public accountants or an audit firm.
* Explanation of the proper use of earnings forecasts and other special notes
The earnings forecasts stated in this report are based on the information available as of the date of the release ofthis report, and actual results may differ from these forecasts due to a variety of factors.

○Table of contents of the attached document
1. Qualitative Information on Consolidated Financial Results for the First Six Months of the Fiscal Year Ending
December 2022 ··················································································································· 2(1) Explanation about Operating Results ···················································································· 2(2) Explanation about Financial Position ···················································································· 3(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts ·················· 3
2. Quarterly Consolidated Financial Statements and Major Notes ························································· 4(1) Quarterly Consolidated Balance Sheet ·················································································· 4(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ····· 6
Quarterly Consolidated Statements of Income
Quarterly Consolidated Statement of Income for the First Six Months ·········································· 6
Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Comprehensive Income for the First Six Months···················· 7(3) Quarterly Consolidated Statement of Cash Flows ····································································· 8(4) Notes to Quarterly Consolidated Financial Statements ······························································· 9(Notes Concerning Going Concern Assumption) ······································································ 9(Significant Changes in Shareholders’ Equity) ······································································· 9(Changes in Accounting Policies) ························································································ 9(Additional Information) ·································································································· 10(Segment Information) ··································································································· 11-1-1. Qualitative Information on Consolidated Financial Results for the First Six Months of the Fiscal YearEnding December 2022
(1) Explanation about Operating Results
During the six months ended June 30, 2022, the global economy continued to show signs of recovery in many
regions while the resurgence of COVID-19 weighed on certain Asian economies.
Amid such circumstances, the Group launched “tok Medium-Term Plan 2024,” a three-year medium-term plan
ending in FY2024, under the management vision to become “The e-Material Global Company” contributing to asustainable future through chemistry. With the slogan of “Boost up TOK!!,” the Plan aims to attain the long-term
vision TOK Vision 2030 by developing and promoting the following five company-wide strategies: (1) Increase
global market share of cutting-edge photoresists, (2) Acquire and create core technologies in electronic materials
and new fields, (3) Secure stable supply of high-quality products and establish an optimal production system for
the Group, (4) Improve employee engagement and promote people-oriented management, and (5) Build sound andefficient management foundation.
In the Material Business, net sales significantly increased year on year due to a continued growth in thesemiconductor market driven by the spread of 5G and IoT and the growing data server market, etc. as well as theeffect of the weakening yen.
In the Equipment Business, net sales increased year on year due to the progress in acceptance inspections of
the ordered equipment.
As a result, for the six months ended June 30, 2022, the Group recorded net sales of ¥84,711 million (up30.7% year-on-year), operating income of ¥14,810 million (up 54.7% year-on-year), ordinary income of ¥15,353
million (up 52.7% year-on-year), and profit attributable to owners of parent of ¥9,723 million (up 51.9% year-onyear).
Effective January 1, 2022, the Group applied the “Accounting Standard for Revenue Recognition”(Accounting Standards Board of Japan (“ASBJ”) Statement No. 29, March 31, 2020), etc., and its impact was
insignificant. Please see “2. Quarterly Consolidated Financial Statements and Major Notes (4) Notes to Quarterly
Consolidated Financial Statements (Changes in Accounting Policies)” for details.
Operating results by segment are as follows:
1) Material BusinessNet sales in the Material Business segment, excluding internal transactions were ¥82,256 million (up 28.7%
year-on-year), and operating income was ¥17,121 million (up 39.0% year-on-year), mainly due to strong sales ofelectronic functional materials and high-purity chemicals.
(Millions of yen)Six months ended
June 30, 2021

Six months ended
June 30, 2022

Net sales

63,937

82,256

18,31928.7%

Operating income

12,313

17,121

4,807

39.0%

Change%Overview by division is as follows.
In the Electronic functional Materials Division, net sales increased to ¥44,716 million (up 19.0% year-on-year).
This was mainly due to continued strong sales of semiconductor photoresists, etc., supported by spread of 5G and
IoT, etc. and strong semiconductor demand for data servers as well as the effect of the weakening yen althoughsales of photoresists for display decreased as a result of changes in demand for small- and medium-sized LCDs.
Net sales in the High-Purity Chemicals Division significantly increased to ¥37,162 million (up 41.6% year-onyear) mainly due to sales price adjustments for certain products of chemicals attached to semiconductor
photoresists used in the semiconductor production process as well as the effect of foreign exchange rate
fluctuations.

2) Equipment BusinessNet sales in the Equipment Business segment, excluding internal transactions increased to ¥2,454 million (up182.0% year-on-year), and operating income increased by ¥445 million from a year earlier to ¥219 million. Thiswas mainly due to the progress in acceptance inspections of ordered products, such as a wafer handling system
Zero Newton® used for the through-silicon-via (TSV) process for realizing high function, high-performancesemiconductors.

-2-

(Millions of yen)

Net sales
Operating income(loss)

Six months ended
June 30, 2021

Six months ended
June 30, 2022

870

2,454

1,584

182.0%

(225)

219

445

－

Change%(2) Explanation about Financial Position(Assets)
Total assets as of June 30, 2022 increased by ¥14,031 million from December 31, 2021 to ¥231,295 million.
Total current assets increased by ¥9,829 million mainly due to increases in inventories of ¥4,133 million, notes
and accounts receivable - trade of ¥3,694 million.
Total non-current assets increased by ¥4,202 million mainly because property, plant and equipment increasedby ¥5,830 million due to capital investments although investments and other assets decreased by ¥1,894 million
due to a decrease in investment securities caused by a decline in stock price.

(Liabilities)
Total liabilities as of June 30, 2022 increased by ¥3,959 million from December 31, 2021 to ¥56,032 million
mainly because notes and accounts payable – trade increased by ¥3,066 million and other in current liabilities
increased by ¥1,703 million due to an increase in equipment-related payables.

(Net assets)
Total net assets as of June 30, 2022 increased by ¥10,071 million from December 31, 2021 to ¥175,262
million mainly due to recording of profit attributable to owners of parent of ¥9,723 million and an increase inforeign currency translation adjustment of ¥4,874 million due to the weak yen despite payments of year-end
dividend of ¥3,794 million.
As a result, the equity ratio as of June 30, 2022 stood at 71.7%.

(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts
There has been no change in the earnings forecasts announced in “Announcement of Revision to Earnings
Forecasts” (in Japanese) dated July 29, 2022.
The foreign exchange rate is assumed to be $1=¥125.
In the event that we need to revise them due to COVID-19, we will disclose promptly.

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)

FY12/21(As of December 31, 2021)

Second quarter of FY12/22(As of June 30, 2022)

56,83533,895
3,999
9,451
4,606
7,292
2,921
(120)
118,883

58,31037,5893,999
10,373
6,706
8,404
3,414
(87)
128,71231,251
25,68056,932837

32,19830,56562,763
1,103

4,658
18,00017,957(6)
40,61098,380217,264

4,739
18,00015,982(6)
38,715102,583
231,295

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Retirement benefit asset
Long-term time deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

(Millions of yen)

FY12/21(As of December 31, 2021)

Second quarter of FY12/22(As of June 30, 2022)

19,250
3,900
4,278
2,488
9,739
39,65622,316
－
3,364
2,741
11,44339,867

6,711
609
5,095
12,41652,073

10,417666
5,081
16,16556,032

14,64015,207
124,806(11,818)
142,836

14,64015,303130,735(11,391)
149,287

6,851

5,536

5,618
522

10,493432

12,993

16,462

215
9,146
165,190
217,264

174
9,337
175,262
231,295

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-5-(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Quarterly Consolidated Statement of Income for the First Six Months)(Millions of yen)First six months ofFirst six months of
FY 12/21
FY 12/22(January 1, 2021 – June 30, 2021) (January 1, 2022 – June 30, 2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Environmental expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit attributable toProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-64,80841,681
23,126
13,552
9,574

84,711
54,22830,482
15,671
14,810

58
206
368
81
715

61
254
553
131
1,000

34
173
28
237
10,052

36
328
92
457
15,353

1
1

－
－

67
200
0
268
9,785
2,625
(94)
2,531
7,253
854
6,399

89
－
－
89
15,264
3,702
416
4,118
11,146
1,422
9,723

(Quarterly Consolidated Statement of Comprehensive Income)(Quarterly Consolidated Statement of Comprehensive Income for the First Six Months)(Millions of yen)First six months ofFirst six months of
FY 12/21
FY 12/22(January 1, 2021 – June 30, 2021) (January 1, 2022 – June 30, 2022)
Profit attributable to owners of parent
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

-7-

7,253

11,146

1,102(1,314)

2,364
(17)
3,449
10,703

5,804
(90)
4,399
15,545

9,339

13,193

1,363

2,352

(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)First six months ofFirst six months of
FY 12/21
FY 12/22(January 1, 2021 – June 30, 2021) (January 1, 2022 – June 30, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of derivatives
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Other
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Payments into long-term time deposits
Proceeds from withdrawal of long-term time
deposits
Other
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from sale of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

-8-

9,785
3,223

15,264
3,152

(7)

(35)

(135)
(201)
2
(265)
34
(665)
173
67
(2,663)
(899)
1,618
15
452
10,534265(34)(2,805)

235
(182)
3
(315)
35
(1,441)328
89(1,516)(2,509)1,921
64(1,464)
13,630319(35)(4,726)

7,959

9,187

(7,000)6,000－(3,623)(171)－(6,000)6,000
956(4,304)(380)(7,000)－10,000(19)(59)(4,814)

(788)

－
(182)
200
260
(3,919)(1,502)18

3,900(4,094)－574(3,789)(2,160)(94)(5,125)(5,664)

1,040

2,498

(939)
42,72841,7895,232
41,46946,702

(4) Notes to Quarterly Consolidated Financial Statements(Notes Concerning Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders’ Equity)
Not applicable.
(Changes in Accounting Policies)(Application of the accounting standard for revenue recognition)
The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March
31, 2020, “Accounting Standard for Revenue Recognition”), etc. from January 1, 2022, and recognizes revenue at
an amount that it expects to receive in exchange for the promised goods or services when the control of the goods
or services is transferred to a customer.
The Group’s performance obligation is sales of goods, and we recognize revenue from domestic sales ofmerchandise and finished goods when the shipment is completed if control of the merchandise or finished goods istransferred to customers within a normal period after the shipment in accordance with the alternative treatment
provided for in Paragraph 98 of the “Implementation Guidance on Accounting Standard for Revenue Recognition”(ASBJ Implementation Guidance No.30, March 26, 2021)
We applied the Accounting Standard for Revenue Recognition, etc. from January 1, 2022 pursuant to thetransitional treatment provided for in the proviso of Paragraph 84 of the Accounting Standard for Revenue
Recognition, with the cumulative effect of the retrospective application, assuming the new accounting policy had
been applied to periods prior to January 1, 2022, adjusted to the beginning balance of retained earnings as ofJanuary 1, 2022, but there was no impact on the beginning balance. The impact on the quarterly consolidated
financial statements is insignificant.
Pursuant to the transitional treatment provided for in Paragraph 28-15 of the “Accounting Standard for
Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), information on the breakdown ofrevenue arising from contracts with customers for the six months ended June 30, 2021 is not presented.
(Application of the accounting standard for fair value measurement)
The Company applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, July 4,
2019, “Accounting Standard for Fair Value Measurement”), etc. from January 1, 2022, and the new accounting
policies stipulated in the Accounting Standard for Fair Value Measurement, etc. are applied prospectively pursuant
to the transitional treatment stipulated by Paragraph 19 of the Accounting Standard for Fair Value Measurement
and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4,2019). The application has no impact on the quarterly consolidated financial statements.

-9-(Additional Information)(Transaction to grant the Company’s shares to employees, etc. through a trust)Based on the resolution at the Board of Directors meeting held on August 7, 2019, the Company introduced“Trust-Type Employee Stock Ownership Plan” (“Plan”) with an aim to enhance the Company’s welfare program aswell as to improve its medium- to long-term corporate value by providing employees with incentives for an increasein stock prices.
(1) Overview of the transaction
The Plan is an incentive plan for all employees in the “Tokyo Ohka Employees Stockholding Association”(“Stockholding Association”). Under the Plan, the Company sets up the “Tokyo Ohka Employee Stockholding
Association Trust” (“Stockholding Trust”) at a trust bank, and the Stockholding Trust purchases in advance thenumber of the Company’s shares expected to be purchased by the Stockholding Association over five years fromthe date the trust is set up and sells the shares to the Stockholding Association every month on a certain date. Any
gains on sale of shares accumulated in the trust upon expiry of the Stockholding Trust will be distributed as residual
assets to those satisfying the beneficiary eligibility requirements. As the Company provides guarantee for the loans
payable made by the Stockholding Trust to purchase the Company’s shares, the Company is liable to pay theoutstanding balance of the loans payable, equivalent to loss on sale of shares accumulated in the Stockholding Trust
due to a decline in stock prices, upon expiry of the Stockholding Trust.
The Plan aims to improve our medium- to long-term corporate value by providing employees with incentives for
an increase in stock prices and also to support employees’ asset building as a measure to enhance our welfare
program by promoting purchase and holding of shares through enhancement of the Stockholding Association.
(2) The Company’s shares remaining in the Trust
The Company’s shares remaining in the Trust are recorded as Treasury shares in Net assets at the carrying
amount at the Trust (excluding ancillary expenses). The carrying amount and number of treasury shares as ofDecember 31, 2021 and June 30, 2022 were ¥862 million and 206 thousand shares and ¥759 million and 182
thousand shares, respectively.
(3) The carrying amount of the loans payable recorded under the gross method
FY12/21¥611 million
First Six Months of FY12/22¥417 million- 10 -

(Segment Information)
Ⅰ First six months of the fiscal year ended December 2021 (January 1, 2021 – June 30, 2021)
1. Information about net sales, income/loss for each reportable segment(Millions of yen)

Reportable segment
Material
Business

Equipment
Business

Total

Reconciliations(Note) 1

Consolidated(Note) 2

Net sales
Net sales to customers

63,937870

64,808－64,808Inter-segment sales ortransfers

0

33

34

(34)

－

Total

63,938903

64,842(34)

64,808Segment income (loss)

12,313(225)

12,087(2,513)9,574(Note) 1. Reconciliation of segment income (loss) amounting to ¥(2,513) million includes general and administrative expenses of¥(2,513) million, which are not allocated to reportable segments.
2. Segment income (loss) has been adjusted for the operating income appearing in the quarterly consolidated statements ofincome.

2. Information on impairment losses on non-current assets or goodwill by reportable segment
Not applicable.

- 11 -ⅡFirst six months of the fiscal year ending December 2022 (January 1, 2022 – June 30, 2022)
1. Information about net sales, income/loss and breakdown of revenue by reportable segment(Millions of yen)

Reportable segment
Material
Business

Equipment
Business

Total

Reconciliations(Note) 1

Consolidated(Note) 2

Net sales
Electronic functional
materials

44,716－44,716－44,716High-purity chemicals

37,162－

37,162－

37,162

Process equipment

－

2,454

2,454

－

2,454

Other

378

－

378

－

378

82,2562,454

84,711－

84,711

－

－

－

－

－

Net sales to customers

82,2562,454

84,711－

84,711

Inter-segment sales
or transfers

－

46

46

(46)

－

82,2562,500

84,757(46)

84,711

17,121

219

17,340(2,530)14,810

Revenue from contracts
with customers
Other revenue

Total
Segment income(Note) 1. Reconciliation of segment income amounting to ¥(2,530) million includes general and administrative expenses of ¥(2,530)
million, which are not allocated to reportable segments.
2. Segment income has been adjusted for the operating income appearing in the quarterly consolidated statements of income.

2. Information on impairment losses on non-current assets or goodwill by reportable segment
Not applicable.
3. Changes, etc. in reportable segments
As described in Changes in Accounting policies, the Company applied the Accounting Standard for
Revenue Recognition from January 1, 2022 and changed the accounting treatment of revenue recognition, andaccordingly, the method to calculate profit or loss of business segment was also changed.
The impact of this change on net sales and segment income for the six months ended June 30, 2022 wasinsignificant.

- 12 -