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 Third Quarterof the Fiscal Year Ending December 31, 2023 [J-GAAP]
November 10, 2023
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:
November 13, 2023
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
No(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 2023 (January 1,
2023 to September 30, 2023)(1) Consolidated Operating Results(% indicates the rate of increase/decrease year-on-year.)Net salesFirst nine months ended
September 30, 2023
September 30, 2022

Operating income

Millions of yen% Millions of yen

118,620
130,463(Note) Comprehensive income:

(9.1)
29.8

% Millions of yen

15,446
22,665(31.9)
50.2

First nine months ended September 30, 2023
First nine months ended September 30, 2022

Profit attributable toowners of parent

Ordinary income% Millions of yen

16,58923,572¥17,360 million¥20,930 million(29.6)
50.2

%

7,520
15,215(50.6)
47.0[- 17.1%][32.7%]

Basic earnings per share Diluted earnings per shareFirst nine months ended
September 30, 2023
September 30, 2022

Yen

Yen

186.57378.37186.33377.77(2) Consolidated Financial Position
Total assets
As of
September 30, 2023
December 31, 2022
(Reference)

Equity:Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

245,164
238,075

188,548
180,960

72.4
71.3

4,400.89
4,214.27

As of September 30, 2023: ¥177,518 million

As of December 31, 2022: ¥169,745 million

2. Cash Dividends
First quarter-end

Annual dividends per share
Second quarter-end Third quarter-end Fiscal year-end

Yen

Fiscal year ended December 31, 2022
Fiscal year ending December 31, 2023
Fiscal year ending December 31, 2023
(Forecast)

Yen

-

78.00
82.00

Yen

-

Total

Yen

Yen

82.00

160.0082.00

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

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 2023 (January 1, 2023 to
December 31, 2023)(% indicates the rate of increase/decrease against the same period of the previous year.)Net sales
Full year

Operating income

Profit attributable toowners of parent

Ordinary income

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

164,000(6.5)

23,500(22.1)

25,000(19.3)

13,500(31.5)

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

* 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, (3) Notes to Quarterly Consolidated Financial
Statements (Changes in Accounting Policies)” on page 7.

(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023
As of December 31, 2022

(ii)

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

Number of treasury shares at the end of the period
As of September 30, 2023
As of December 31, 2022

2,263,125 shares
2,321,258 shares(iii) Average number of shares outstanding during the period
First nine months ended September 30, 2023
First nine months ended September 30, 2022

40,310,065 shares
40,213,660 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 of thisreport, 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 Nine Months of the Fiscal Year Ending
December 2023··················································································································· 2(1) Explanation about Operating Results··················································································· 2(2) Explanation about Financial Position ·················································································· 2(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts ··············· 2
2. Quarterly Consolidated Financial Statements and Major Notes ······················································· 3(1) Quarterly Consolidated Balance Sheet ················································································· 3(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ···· 5
Quarterly Consolidated Statement of Income
Quarterly Consolidated Statement of Income for the First Nine Months ······································ 5
Quarterly Consolidated Statement of Comprehensive Income
Quarterly Consolidated Statement of Comprehensive Income for the First Nine Months ·················· 6(3) Notes to Quarterly Consolidated Financial Statements ······························································ 7(Notes Concerning Going Concern Assumption) ···································································· 7(Significant Changes in Shareholders’ Equity) ······································································ 7(Changes in Accounting Policies) ······················································································· 7(Additional Information) ································································································· 7(Segment Information) ······································································································ 8(Revenue Recognition) ······································································································ 8(Significant Subsequent Events) ·························································································· 9-1-1. Qualitative Information on Consolidated Financial Results for the First Nine Months of the Fiscal
Year Ending December 2023
(1) Explanation about Operating Results
During the nine months ended September 30, 2023, the global economy was on a gradual recovery trend overall,
despite factors such as prolonged U.S.-China trade friction and the situation in Russia and Ukraine.
Under these circumstances, the Group has made an all-out effort to promote the company-wide strategies set out
in the “tok Medium-Term Plan 2024,” a three-year medium-term plan ending in FY2024.
In the Group’s business, while demand for PCs and smartphones is showing signs of recovery, net sales decreased
year on year as the semiconductor market continues to face challenging conditions, resulting in a decline in sales ofelectronic functional materials and high-purity chemicals.
As a result, for the nine months ended September 30, 2023, the Group recorded net sales of ¥118,620 million(down 9.1% year-on-year), operating income of ¥15,446 million (down 31.9% year-on-year), ordinary income of¥16,589 million (down 29.6% year-on-year) and profit attributable to owners of parent of ¥7,520 million (down
50.6% year-on-year).
Following the transfer of the Equipment Business (excluding certain parts) to AIMECHATEC, Ltd., we operate
the Material Business as a single business segment from the three months ended March 31, 2023. Accordingly,
operating results by business segment is not disclosed, but net sales by division are as follows.
Net sales in the Electronic Functional Materials Division amounted to ¥64,162 million (down 6.8% year-on-year),in the High-Purity Chemicals Division amounted to ¥53,195 million (down 7.8% year-on-year) and in other divisions
amounted to ¥1,262 million (down 67.7% year-on-year).

(2) Explanation about Financial Position(Assets)
Total assets as of September 30, 2023 increased by ¥7,089 million from December 31, 2022 to ¥245,164 million.
Total current assets increased by ¥2,222 million mainly due to an increase in inventories of ¥2,998 million.
Total non-current assets increased by ¥4,867 million mainly because property, plant and equipment increased by¥5,164 million due to capital investments.
(Liabilities)
Total liabilities as of September 30, 2023 decreased by ¥498 million from December 31, 2022 to ¥56,616 million
mainly due to a decrease in income taxes payable of ¥2,009 million despite an increase in other non-current liabilitiesof ¥1,010 million due to an increase in deferred tax liabilities.
(Net assets)
Total net assets as of September 30, 2023 increased by ¥7,588 million from December 31, 2022 to ¥188,548
million mainly because valuation difference on available-for-sale securities increased by ¥2,989 million due to markto-market and foreign currency translation adjustment increased by ¥3,675 million due to a weak yen.
As a result, the equity ratio as of September 30, 2023 stood at 72.4%.
(3) Explanation about Future Forecast Information Including Consolidated Earnings Forecasts
There has been no change in the earnings forecasts announced in “Notice on Revisions of Forecasts” dated July28, 2023. The foreign exchange rate is assumed to be $1=¥135.
In the event that we need to revise, we will disclose promptly.

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

FY12/22(As of December 31, 2022)

Third quarter of FY12/23(As of September 30, 2023)

55,37135,812
3,999
11,0847,000
11,9205,535(89)130,636

56,32633,227
3,999
10,311
7,789
14,9026,369(70)
132,858

36,50229,50766,0101,295

39,01532,15971,174
1,417

3,682
18,00018,457(6)
40,133
107,439
238,075

3,753
12,00023,968(7)
39,714112,306
245,164

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-3-

(Millions of yen)

FY12/22(As of December 31, 2022)

Third quarter of FY12/23(As of September 30, 2023)

21,617
－
3,308
3,090
12,76540,781

19,905
513
1,299
3,756
14,00539,47910,222853
5,257
16,333
57,115

10,018850
6,267
17,136
56,616

14,64015,303
137,551(11,276)
156,219

14,64015,315
138,439(11,014)
157,381

5,280

8,269

8,877
(630)

12,552(684)

13,526

20,137174
11,039180,960
238,075140
10,889188,548
245,164

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-4-(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 Nine Months)(Millions of yen)First nine months of
FY 12/22

First nine months of
FY 12/23(January 1, 2022 – September 30, 2022) (January 1, 2023 – September 30, 2023)

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
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of shares of subsidiaries andassociates
Loss on sale of businesses
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-5-

130,463
83,46846,99524,33022,665

118,620
77,03041,58926,143
15,446

92
316
782
196
1,388

210
387
399
339
1,336

55
323
102
481
23,572

60
76
57
193
16,589

14
243
－
258

220
103
45
369

205

79

－

837

－
－
205
23,626
5,872
189
6,061
17,564
2,348
15,215

1,720
1
2,638
14,319
4,427
(64)
4,362
9,957
2,436
7,520

(Quarterly Consolidated Statement of Comprehensive Income)(Quarterly Consolidated Statement of Comprehensive Income for the First Nine Months)(Millions of yen)First nine months of
FY 12/22

First nine months of
FY 12/23(January 1, 2022 – September 30, 2022) (January 1, 2023 – September 30, 2023)

Profit attributable to
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-6-

17,564

9,957(2,159)

2,989

5,660
(135)
3,365
20,930

4,467
(53)
7,403
17,36017,765

14,131

3,165

3,229

(3) 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 Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Statement No.31, June 17, 2021, “Implementation Guidance on Accounting Standard for Fair Value
Measurement”), from January 1, 2023, and the new accounting policies stipulated in the “Implementation Guidanceon Accounting Standard for Fair Value Measurement” are applied prospectively pursuant to the transitional treatment
stipulated by Paragraph 27-2 of the “Implementation Guidance on Accounting Standard for Fair Value Measurement.”
The application has no impact on the quarterly consolidated financial statements.
(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 from thedate 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 the outstandingbalance 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 programby 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 amountat the Trust (excluding ancillary expenses). The carrying amount and number of treasury shares as of December 31,
2022 and September 30, 2023 were ¥643 million and 154 thousand shares and ¥513 million and 123 thousand shares,
respectively.
(3) The carrying amount of the loans payable recorded under the gross method
FY12/22¥222 million
First nine months of FY12/23¥18 million-7-

(Segment Information)
I First nine months of the fiscal year ended December 2022 (January 1, 2022 – September 30, 2022)
1. Information about net sales, income/loss for each reportable segment
Please refer to “II First nine months of the fiscal year ending December 2023, 2. Changes, etc. in reportablesegments.”
Ⅱ

First nine months of the fiscal year ending December 2023 (January 1, 2023 – September 30, 2023)
1. Information about net sales, income/loss for each reportable segment
The disclosure is omitted as the Company operates a single business segment.
2. Changes, etc. in reportable segments
Previously, the Group had two reportable segments of “Material Business” and “Equipment Business,” butit operates the Material Business as a single business segment from the three months ended March 31, 2023.
The change was made based on the review of the segmentation conducted after the Company’s Equipment
Business (excluding certain parts) was succeeded to our wholly owned subsidiary Process Equipment Business
Split Preparatory Co., Ltd. (“Split Preparatory Company”) through an absorption-type company split and theshares of the Split Preparatory Company were transferred to AIMECHATEC, Ltd. effective March 1, 2023.
As a result of this change, the disclosure of segment information for the nine months ended September 30,
2022 and 2023 is omitted.

(Revenue Recognition)
Information on the breakdown of revenue arising from contracts with customers
The Group operates a single business segment, and the information on the breakdown of revenue arising fromcontracts with customers is as follows.
Previously, the information on the breakdown of revenue arising from contracts with customers was classified into
two reportable segments of “Material Business” and “Equipment Business,” but we have changed the classification as
follows from the three months ended March 31, 2023 following the transfer of “Equipment Business” (excluding
certain parts).
As a result of this change, the information on the breakdown of revenue arising from contracts with customers forthe nine months ended September 30, 2022 was also shown under the new classification.
(Millions of yen)

Electronic functional materials
High-purity chemicals
Other
Revenue from contracts with customers
Other revenue
Net sales to customers

First nine months ofFirst nine months of
FY 12/22
FY 12/23(January 1, 2022 – September 30, 2022) (January 1, 2023 – September 30, 2023)
68,85364,162
57,70553,195
3,905
1,262
130,463
118,620－－
130,463
118,620-8-

(Significant Subsequent Events)(Stock split)
The Company resolved at the Board of Directors meeting held on October 6, 2023 to undertake a stock split
as detailed below.
1. Purpose of the stock split
By undertaking the stock split to lower the price of share-trading units, we intend to make shares more
affordable for investors, with a view to improving the liquidity of the Company’s stock and expanding its
shareholder base.
2. Outline of the stock split(1) Method of the stock split
With December 31, 2023 as the record date of the stock split (since this day falls on a non-business day ofthe shareholder registry administrator, the record date in substance will be December 29, 2023), each share ofcommon stock owned by a shareholder whose name appears or is recorded in the shareholder registry as of theend of the record date will be split into three shares.
(2) Increase in the number of shares as a result of the stock split
Total number of issued shares before the stock split:
42,600,000 shares
Increase in the number of shares as a result of the stock split: 85,200,000 shares
Total number of issued shares after the stock split:
127,800,000 shares
Total number of authorized shares after the stock split:
500,000,000 shares(3) Schedule of the stock split
Date of public notice of the record date: December 15, 2023 (plan)
Record date:
December 31, 2023
Effective date:
January 1, 2024
Please refer to “Notice Regarding Stock Split and Partial Amendment of Articles of Incorporation” releasedon October 6, 2023 for details.

-9-