Business Results for the Third Quarter of
Fiscal Year Ending March 31, 2023
(April 1, 2022 – December 31, 2022)
February 10, 2023

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External Environment• Global inflation progressed, naphtha and raw material prices remained high, and 1.5 times higher than in the same
period of the previous year.
• The yen depreciates from ¥110/USD to ¥134/USD due to the interest rate differential between Japan and theUnited States.

Naphtha Prices
FY2021

USD/JPY Chart

FY2022

1.5 times+¥24Source: Amerec Energy Com., Yahoo Finance2

Semiconductor Market Trend• Demand for consumer products such as smartphones and PCs decreased due to rebound of from stay-at-homedemand and progressing inflation.
• However, advanced semiconductors remained firm demand thanks to progress of DX.

Semiconductor Market Trends
FY2021

Source: WSTS

FY20223

Financial Results for the Q3 FY2022• Sales increased 7.8% YOY due to strong demand for advanced semiconductor materials amid a slowdown
in demand for general products.
• Operating profit increased for advanced products, offsetting increased fixed costs due to increasedproduction capacity. Profit increased by 489 million yen (+14.7%).
• Ordinary profit increased 20.5% YoY, thanks in part to foreign exchange gains.

(Million yen)

FY2021
Q1-3 Results

FY2022
Q1-3 Results

YoY
Change%Net sales

23,87325,747+1,873+7.8%

Operating profit

3,323
3,342
2,289

3,812
4,026
2,745

+489
+684
+456

+14.7%+20.5%+19.9%

EPS¥288.40¥345.87

FX Rate (USD)¥110.9/$¥134.1/$

Ordinary profit

Profit4

Change analysis: Operating profit• Increase in profit by 14.7% thanks to higher sales of high value-added products, which offset the decrease in salesof general products, soaring raw material, fuel, and freight costs, and increased expenses due to the continued
expansion of production capacity.
Increase in expenses for technology
Increase in sales
volume, Selling priceis under increasing
due to high raw
material prices.

+660+1,759FX(Million yen)

3,323

+200
Operation
improvement

△90

△916

Inventory
revaluation

development and production
capacity expansion for advanced
semiconductor fields
Expenses
increase△1,124
Impact from raw
materials, fuel,consumables andtransportation cost
increasing

3,812+489

Sales growth

FY2021 Q1-3
Operating profit

FY2022 Q1-3
Operating profit 5

Quarterly Sales & Operating profit Trend• In Q3, sales and profits remained at the same level as the previous year due to strong demand for advanced
materials, despite a slowdown in demand due to ongoing inflation and an increase in fixed costs.
• The yearly average growth rate in the last 5 years +10.6%, expanding business continuously.

Quarterly Sales & Operating profit Trend

CAGR +10.6%
slowdown indemand due toongoing inflation
End of Special Demand for
COVID-19,
Display inventory adjustment

Continued high prices of raw materials, fuel and transportation cost

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Photosensitive Materials Segment
Net sales & Operating profit
Q1-3 Net sales: 15,411 million yen(YoY +597 million yen, +4.0％)【Q3 Overview】• Strong demand continues for logic semiconductor
applications.

• Sales for memory semiconductor applications keeping
firm growth.
• Inventory adjustment of photosensitive materials fordisplays has been completed, and the trend of gradual
recovery continues.

Q1-3 Operating profit: 2,486 million yen(YoY +55 million yen, +2.3％)• Soaring raw material and fuel prices, and increased
costs for technology development and production
capacity expansion.
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Chemicals Segment
Net sales & Operating profit

Q1-3 Net sales: 10,335 million yen(YoY +1,275 million yen, +14.1%)【Q3 Overview】• Demand for high-purity solvents for use in advanced
semiconductors was firm, although demand declined
due to a rebound from stay-at-home demand andinventory adjustments.

• Demand for aroma chemicals declined due to inflation.
• In the logistics business, the contract rate remained
high despite a decrease in cargo movement due tolower automobile production and other factors.

• Selling prices continue to be adjusted in raw material
prices increase accordingly.

Q1-3 Operating profit: 1,326 million yen(YoY +433 million yen, +48.5%)• Product sales composition changed to high value-addedproducts.

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Q1-3 FY2022 Income Statement• Gross profit increased by 872 million yen and the gross profit margin improved by 1.6pt to 26.9%, as the increasein sales of high value-added products offset the decline in sales of general products, higher raw material and fuelcosts, and increased fixed costs. Operating income increased 489 million yen (+14.7%).
• Ordinary profit increased by 684 million yen (+20.5%) due to foreign exchange gains (262 million yen) from yen depreciation.

FY2021
Q1-3 Results

FY2022
Q1-3 Results

23,87325,747+1,873+7.8%

17,826

18,827+1,000+5.6%

6,046

6,919+872+14.4%

2,723

3,106+383+14.1%

3,323

3,812+489+14.7%

Non-operating income

127334+206+161.7%

Non-operating expenses

108120+11+10.6%

Ordinary profit

3,342

4,026+684+20.5%

Extraordinary income & losses△32△58△25ーProfit before income taxes

3,309

3,968+658+19.9%

Income taxes

1,020

1,223+202+19.9%

Profit2,289

2,745+456+19.9%(Million yen)
Net sales
Cost of sales
Gross profit

SG&A expenses
Operating profit

Change%Gross profit margin
improved by 1.6pt.

Foreign exchange gain of¥262 million
Ordinary profit margin
Improved by 1.6pt.

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Q3 FY2022 Balance sheet• Working capital improved due to a decrease in accounts receivable.
• Inventories increased by 3,279 million yen due to a partial recovery to decent inventory levels and higher inventory value resulting
from higher raw material costs.
• Shareholders' equity increased by 2,467 million yen due to an increase in net income.
• Equity ratio is 38.3%, the highest ever since listing (up 4.1pt from the end of the previous term).
(Million yen)
Current assets

Mar. 2022
ended

Sep. 2022
ended

Change19,76622,025+2,258(Million yen)
Liabilities
Notes and accounts payable –tradeMar. 2022
ended

Sep. 2022
ended

Change30,82429,861

△963

5,010

5,382+371

17,81918,731+912

Cash and deposits

3,681

3,601

△79Notes and accounts
receivable – trade

7,402

6,404

△997

Interest-bearing debt

Inventories

8,080

11,360+3,279

Other

7,993

5,747

△2,246602

658+5627,11926,406△713

Net assets

16,061

18,570+2,50825,376

24,830△545

16,007

18,474+2,467

Valuation and translation
adjustments

5495+41

Liabilities and net assets

46,88648,431+1,545
10Other
Fixed assets
Property, plant andequipment

Intangible assets
Investments and otherassets
Total assets

511

550

+38

1,231

1,025

△206

46,88648,431+1,545

Shareholders’ equity

Forecast and Progress for the FY2022• The full-year progress rate is 73.6% for sales, 74.0% for operating profit, and 80.5% for ordinary profit (includingforeign exchange gains).
• Despite the economic slowdown and recent adjustments in the electronic materials market, there is no change inthe trend of increasing demand over the medium term, so invest (cumulative investment of 30 billion yen during theperiod of the medium-term management plan) will continue.

(Million yen)

FY2022
Forecast

FY2022
Q1-3 Results

Progress Ratio

Net sales

35,00025,747

73.6%

Operating profit

5,150

3,812

74.0%

Ordinary profit

5,000

4,026

80.5%

profit

3,500

2,745

78.4%

EPS

¥440.98¥345.87
11Investment to achieve the "Beyond 500" medium-term management plan
• Semiconductors support the evolution of social infrastructure, and the market is expected to double from 2020 to2030. Continued growth thereafter.
• Decided to expand production facilities for photosensitive materials in order to meet growing demand.
• In addition, with the increasing difficulty of cutting-edge quality, the decision was made to construct a development
and analysis building to strengthen the R&D and analysis system.

Investment Plan (As of Feb. 2023)

Global Semiconductor Market

LogicShipment amount(trillion yen)

MemoryChiba Plant
Expansion ofphotosensitive materials
manufacturing facilities

Amount of Investment: Approx. ¥12 billion
Completion scheduled for Jul. 2024.

Chiba Plant
New development andanalysis building

Amount of Investment: Approx. ¥3 billion
Completion scheduled for Apr. 2024.

OtherBeyond500

Source: The Ministry of Economy, Trade and Industry (METI)

Diagram of the Development Building

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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.

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