Information Disclosure Based on TCFD
(Task Force on Climate-Related FinancialDisclosures) Recommendations

December 20, 2023

Introduction

Our company recognizes that addressing environmental issues is an essential
requirement for our corporate activities in order to achieve a sustainable society (acarbon-neutral society by 2050) and considers responding to climate change to be oneof several important management issues.

In addition, the Sustainability Committee and its working groups have conductedscenario analyses, including risk severity assessments, to identify and evaluate
climate-related risks and opportunities in our company’s core business, the High-purity
Chemical Business.

Going forward, we will continue to promote responses based on the TCFD
recommendations, strive to provide substantial information disclosures, and work withall stakeholders involved with our company to contribute to the realization of asustainable society through our business.

1. Basic Policy on Sustainability
Our company’s Board of Directors has established the following Basic Policy on Sustainability as its
fundamental policy to practice sustainability initiatives through our business activities.

Basic Policy on SustainabilityIn addition to practicing our management philosophy, we strive to realize a sustainable society
and enhance corporate value through our business activities under the slogan “Beyond theChemical,” which embodies our “aim to create products that will make people happy, and as aresult, build a company with higher corporate value.”
1. Identify materiality (key issues) and contribute through business activities
・We will promote research and development utilizing original perspectives and unique technologies that we have cultivated tocreate and provide products that contribute to solving social issues.
・We will commit to achieving long-term mutual prosperity by capturing customer needs and providing high-quality, safe products
in a stable manner.

2. Respond to climate change and conserve the environment
・We will work toward the realization of a decarbonized society and address environmental issues, including climate change.
・We will manage and reduce the emission of chemical substances from our business activities and strive to reduce our impact
on the natural environment.

3. Create a safe and rewarding environment
・We aim to create a workplace environment where diverse personalities and workstyles are respected, work-life balance isenriched, and work is rewarding.
・We are committed to developing responsible and autonomous human resources who can think and act on their own.
・We respect human rights and do not engage in unjust discrimination based on race, gender, ethnicity, nationality, or any othergrounds, including among our suppliers.

2. Governance and Risk Management
As the approach to addressing various issues related to sustainability is an important management issue for improving ourcompany’s corporate value over the medium to long term, the Board of Directors has established a system for appropriatemonitoring.
In April 2023, we established the Sustainability Committee, composed of directors and the heads of different divisions, anddeveloped the Basic Policy on Sustainability. The Sustainability Committee collects information on efforts related tosustainability, including responses to climate change, deliberates and reviews cross-organizational risks and opportunities, andreports the results as well as makes recommendations to the Board of Directors. The Board of Directors then reviews strategiesand directions as well as selects and supervises initiatives related to sustainability based on the reports from the Sustainability
Committee and the recognition of external environments.
[Structure]
Board of Directors
Report and Make Recommendations

Select and Monitor

Sustainability Committee
Supervise and Monitor

WorkingGroup (1)Working
Group (2)Working
Group (3)Working
Group (4)Working
Group (5)At our company, the Sustainability Committee recognizes risks associated with climate change, deliberates on
countermeasures, and monitors progress, which is then reported to the Board of Directors. Since the impacts of climate change
manifest over a medium-to-long-term timeframe, relevant divisions carry out their efforts and regularly report progress to theCommittee. In addition, to incorporate sustainability issues into company-wide efforts, discussions are held within Sustainability
Working Groups organized by working-level employees in each division.

3. Strategy I
We reviewed the main risks and opportunities in consideration of how climate change could impact ourbusiness.
Assumed World Setting
2°C Scenario

While the cost of raw materials is expected to rise, an increase in semiconductor-related products isalso expected, thereby expanding opportunities.

4°C Scenario

The momentum towards decarbonization weakens, the cost of raw materials and energy rises, andthe risk of natural disasters increases.

A 2°C WorldRenewable
EnergyMarket

A 4°C World The introduction of renewable energy based on adiverse range of procurement methods is promoted

 There are few renewable energy procurement methods
available, resulting in delays in the introduction ofrenewable energy (costs also remain high) Demand for semiconductors increases in line with thepromotion of smart cities

 The development of smart cities does not progress, andtraditional urban forms are maintained, resulting in no
significant change in the demand for semiconductors

 Demand for semiconductors and batteries increases dueto the spread of ZEVs

 EVs increase incidentally, and accordingly, the demand
for semiconductors and batteries does not change
significantly

Government A carbon tax is introduced, and stricter recycling
regulations are enacted

 Energy-saving and renewable-energy policies are notactively promoted (a carbon tax is not introduced)

 Low-carbon factories are achieved through thesecurement of renewable energy sources, etc.

 Factories shut down due to extreme weatherFactory Operations are impacted in areas with high water risk

3. Strategy II
Evaluation items
Category
Policy/LegalIndustry/MarketTransition

Subcategory
Carbon price and taxes
Carbon emissions targets/policies
of different countries
Fluctuations in the cost of raw
materials
Changes in customer behavior

Development and spread of lowcarbon, next-generation
technologies
Technology
Energy-saving policies, subsidies
for renewable energy, etc.

Reputation

Changes in reputation among
investors
Changes in reputation amongcustomers
Rising average temperatures

Chronic
Physical

Water stress
Rising sea levels

Acute

Changes in precipitation andweather patterns
Increased severity of extreme
weather events

Main risk

Main opportunity

Countermeasures

Introduction of a carbon tax

Increase in sales opportunities
for low-carbon products
Increase in sales opportunities
due to increasing demand forsemiconductors- Updates to the latest cogeneration
systems in proportion toconsumption levels

Increased compliance costs
due to enhanced emission
targets
Increased cost of raw
materials
Increased demand fromcustomers

Failure of technology
investments
Decline in reputation among
investors
Decline in company or
product reputation amongcustomers
Increase in electricity
consumption anddeterioration of working
environment due to risingoutdoor temperatures
Impact of business due towater shortages
Impact on business due torising sea level
Impact on business due toheavy rain and strong winds
Impact on business due tosevere disasters

Increase in sales opportunities
due to emission reduction
measures

Increase in demand forenvironmentally friendly
products, etc.
Decrease in facility investment
and R&D costs
Increase in reputation amonginvestors
Increase in sales opportunities
for environmentally friendly
products--

 Diversification of raw material
suppliers Introduction of various energysaving facilities
 Increased efficiency through theconsolidation of production facilities
 Sales of products forsemiconductors and nextgeneration batteries, which aregrowing in demand mostly due toZEVs-

 Introduction of renewable energy
and solar power generation
 Reduction of water intake
and effective use of wastewater Relocation of electrical equipment tomore than 10 m above ground Installation of tidal barriers aroundkey facilities
 Waterproofing of electrical wiring
routes Installation of emergency
generators

4. Metrics and Targets
In evaluating climate-related risks and opportunities, our company has set Scope 1 and Scope 2 greenhousegas (CO2) emissions as indicators. The government has set a goal to achieve carbon neutrality by 2050, andour company also aims to achieve carbon neutrality by 2050.

By 2030, we will reduce GHG emissions (Scopes 1 and 2) by 46% of FY2013 levels (11,830 t).
By 2050, we will achieve carbon neutrality in GHG emissions (Scopes 1 and 2).
(Reference)

FY2013

FY2016FY2019FY2022Emissions

25,718t

25,611t

22,276t

17,302t(t)

FY2013

FY2016FY2019FY2022

FY2030FY2050