Translation
Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy
between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Based on Japanese GAAP)
February 9, 2024
Company name:

TODA KOGYO CORP.

Stock exchange listing: Tokyo
Stock code:
4100
Representative:
Inquiries:

URL https://www.todakogyo.co.jp

Representative Director
Department Manager of Corporate Planning

Shigeru Takaragi
Atsushi Tomokawa

Department
Scheduled date to file Quarterly Securities Report:

February 13, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL +81-82-577-0055(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31,
19,613(28.7)
231 (80.8)
1,288 (53.1)
1,513 (43.5)
2023
Nine months ended December 31,
27,49111.4
1,203 (27.0)
2,746
(0.4)
2,677
27.2
2022
Note: Comprehensive income
Nine months ended December 31, 2023:¥3,068 million[(24.0)%]Nine months ended December 31, 2022:¥4,036 million[38.6%]
Earnings per share
Nine months ended December 31,
2023
Nine months ended December 31,2022

Diluted earnings per share

Yen

Yen

262.05260.26464.11460.84(2) Consolidated financial position
Total assets
As of December 31, 2023
As of March 31, 2023
Reference:

EquityAs of December 31, 2023:
As of March 31, 2023:

Net assets

Millions of yen
57,61852,016Equity ratio

Millions of yen
19,45916,559

%
32.6
30.5

¥18,799 million¥15,842 million

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end3rd quarter-end

Fiscal year-end

Yen

Yen

Yen

Yen

Yen––

0.00
0.00

––

0.00

0.00

0.00

0.00

Year ending March 31, 2024 (Forecast)
Note: Revisions to the forecasts of cash dividends most recently announced: NoTotal

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Full year

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
26,500 (24.1)
200 (85.4)
1,300 (61.2)
700 (78.6)
121.22

Note: Revisions to the consolidated financial results forecasts most recently announced: No* Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):
Newly included:

Yes

1 company (TODA ISU CORPORATION)(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

6,099,192 shares

As of March 31, 2023

6,099,192 shares

321,885 shares

As of March 31, 2023

326,475 shares

Number of treasury shares at the end of the period
As of December 31, 2023

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023

5,775,466 shares

Nine months ended December 31, 2022

5,769,582 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forecast of financial results is based on information available at the current time and include many uncertain factors. Actual financialresults and other items may differ from the above forecast for any of various reasons, including changes in business conditions. Please refer to“(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements” of “1. Qualitative Information on Quarterly
Financial Results” on page 1 of the attached materials for the items related to the above forecasts.

Attached MaterialIndex
1. Qualitative Information on Quarterly Financial Results ................................................................................ 1(1) Explanation of Business Results ..................................................................................................................... 1(2) Explanation of Financial Position .................................................................................................................. 1(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements ............................ 1
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto.............................................. 2(1) Consolidated Balance Sheets........................................................................................................................... 2(2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive
Income (Cumulative) ....................................................................................................................................... 4
Consolidated Statements of Income (Cumulative)........................................................................................ 4
Consolidated Statements of Comprehensive Income (Cumulative) ............................................................ 5(3) Notes to Quarterly Consolidated Financial Statements ............................................................................... 6(Notes on Assumption of Going Concern) ..................................................................................................... 6(Notes When There Are Significant Changes in Amounts of Shareholders’ Equity) ................................. 6(Change in Scope of Application of Equity Method and Scope of Consolidation) ..................................... 6

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Business Results
In the business environment surrounding the TODA KOGYO Group (the “Group”) during the nine monthsended December 31, 2023, there was a moderate recovery trend in the economy against the backdrop of
normalization of socioeconomic activity as a result of the recovery from the COVID-19 pandemic. However,the future remains unclear due to factors that include the growing tension in international affairs, the impacts ofrising global prices and monetary tightening, and concerns about a slowdown in the Chinese economy.
Under such conditions, for the functional pigments segment, sales of materials for copiers and printers andmaterials for catalysts were affected by a delayed recovery in demand in the market. In addition, net sales fell
year on year as a result of having transferred equity in Toda United Industrial (Zhejiang) Co., Ltd.
In the electronic materials segment, demand for both magnet materials and dielectric materials is gradually
recovering from the second half of the fiscal year. In particular, net sales increased from the previous fiscal
year for bonded rare earth magnet material, which possesses world-class magnetic properties, mainly for
automotive applications. However, net sales for the segment decreased year on year affected by inventory
adjustments at the Company’s consolidated subsidiary that manufactures battery-related materials in addition
to the two aforementioned materials, due to the delayed market recovery in the first half of the fiscal year.
Turning to profit, operating profit declined year on year due to high levels of prices for raw materials andenergy relative to the previous fiscal year, in addition to the downturn in net sales.
For non-operating income and expenses, despite the Company having encountered factors with a positiveeffect on earnings such as a shift in exchange rates to a weakening yen, ordinary profit and profit attributable toowners of parent decreased year on year due to a downturn in operating profit and decline in revenues fromassociates accounted for using the equity method.
As a result of the above, net sales came to ¥19,613 million (down 28.7% year on year), operating profit, ¥231
million (down 80.8% year on year), ordinary profit, ¥1,288 million (down 53.1% year on year), and profit
attributable to owners of parent, ¥1,513 million (down 43.5% year on year).
(2) Explanation of Financial Position
AssetsAssets as of December 31, 2023, came to ¥57,618 million, an increase of ¥5,602 million over the end of theprevious fiscal year. This was mainly due to increases of ¥1,058 million in notes and accounts receivable trade, ¥1,082 million in raw materials and supplies, ¥1,661 million in property, plant and equipment, and¥1,818 million in investments in capital of subsidiaries and associates.
Liabilities
Liabilities as of December 31, 2023, came to ¥38,159 million, an increase of ¥2,703 million over the end of theprevious fiscal year. This was mainly due to increases of ¥1,513 million in borrowings and ¥1,896 million inother current liabilities.
Net assets
Net assets as of December 31, 2023, came to ¥19,459 million, an increase of ¥2,900 million over the end of theprevious fiscal year. This was mainly due to ¥1,513 million in profit attributable to owners of parent, andincreases of ¥461 million in valuation difference on available-for-sale securities and ¥924 million in foreign
currency translation adjustment.
(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements
There is no change to the consolidated earnings forecast for the full-year announced in the “Summary ofConsolidated Financial Results for the Six Months Ended September 30, 2023” on November 10, 2023.

12. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheets
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accountsTotal current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets2(Millions of yen)
As of December 31, 2023

8,476
7,607
4,581
2,018
3,654
2,136(9)28,465

7,555
8,665
4,617
2,517
4,736
1,840
(52)
29,880

1,975
1,687
6,326
1,019
508
11,515

2,484
2,997
6,338
694
661
13,176

2,355
133
2,489

2,640
181
2,821

2,709
6,300
539
(3)
9,545
23,55052,016

3,048
8,118
577
(3)
11,74027,73857,618

As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - otherRetirement 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-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

3(Millions of yen)
As of December 31, 2023

3,712
7,686
4,012
230
345
1,616
17,604

3,224
8,503
4,648
89
88
3,512
20,067

14,031
469
1,896
1,454
17,85235,456

14,091
115
2,380
1,503
18,09238,159

7,477
4,288
3,155
(1,468)13,453

7,477
4,310
4,669
(1,447)
15,009

688
1,368
332
2,389
86
630
16,55952,016

1,149
2,292
349
3,790
92
566
19,45957,618

(2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive Income(Cumulative)
Consolidated Statements of Income (Cumulative)
Nine months ended
December 31, 2022
27,491
21,623
5,867

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Employees’ salaries
Provision for bonuses
Retirement benefit expenses
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on change in equity
Gain on sale of investments in capital of subsidiaries andassociates
Gain on liquidation of subsidiaries and associates
Gain on sale of investment securities
Gain on step acquisitions
National subsidies
Compensation income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Compensation expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

4(Millions of yen)
Nine months ended
December 31, 2023
19,61315,061
4,551

922
153
73
985
2,528
4,663
1,203

879
142
81
1,151
2,065
4,320
231

32
58
1,349
140
184
1,765

39
64
789
314
96
1,304

200
21
222
2,746

220
26
246
1,288

4
60

11–

933

–

52
–
–
1
36
1,088

–
76
475
–
162
726

55
76
–
131
3,703
490
91
582
3,121
443
2,677

52
–
0
52
1,962
223
126
350
1,612
98
1,513

Consolidated Statements of Comprehensive Income (Cumulative)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

5

Nine months ended
December 31, 2022
3,121(Millions of yen)
Nine months ended
December 31, 2023
1,612

(11)
671(19)

461
786
17273

191

914
4,036

1,456
3,068

3,389
646

2,914
153

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
Not applicable(Notes When There Are Significant Changes in Amounts of Shareholders’ Equity)
Not applicable(Change in Scope of Application of Equity Method and Scope of Consolidation)
Significant changes in scope of consolidation
During the third quarter ended December 31, 2023, the Company acquired a majority of the total voting rightsof TODA ISU CORPORATION, which had been an associate accounted for using the equity method, throughthe conversion of class shares held by the Company into common shares. As a result, the said company andone of its subsidiaries were included in the scope of consolidation. Since the Group has established December
31, 2023 as the deemed acquisition date, only the said company’s balance sheet as of December 31, 2023 is
consolidated for the nine months ended December 31, 2023, and the said company’s operating results are notincluded in the quarterly consolidated statement of income.
These changes in the scope of consolidation are expected to cause material effects to the consolidated
financial statements of the fiscal year to which the third quarter ended December 31, 2023 belongs.
Contemplated effects include an increase of total assets in the consolidated balance sheet.

6