TOKYO OHKA KOGYO CO., LTD.
Business Results-The 1st half of Fiscal Year ending Dec. 2024-

August 7, 2024
TOKYO OHKA KOGYO CO., LTD.

© 2024 TOKYO OHKA KOGYO CO., LTD.

1

Table of Contents
1.

Summary for the 1st Half of FY2024 (2024.1-2024.6)

p.2

2.

Consolidated Business Results for the 1st Half of
FY2024 (2024.1-2024.6)

p.3

3.

Consolidated Performance Forecasts for FY2024(2024.1-2024.12)

p.7

4.

Initiatives in TOK Medium Term Plan 2024

p.13

© 2024 TOKYO OHKA KOGYO CO., LTD.

2

Summary for 1H of FY2024● Revised upward the 1H earnings forecasts (July 26, 2024).

FY2024
1H
Results● Net sales were up 17.0 billion yen or 22.0% YoY to 94.7 billion yen, asignificant increase due to a recovery of the semiconductor market backed
by increased demand for generative AI and for the Chinese market,
and the impact of exchange rate changes.
● Operating income was up 2.5 billion yen or 23.3% YoY to 13.4 billion
yen, a significant increase due to increased sales and the impact of
exchange rate changes.
● Revised upward the full-year earnings forecasts (July 26, 2024).

FY2024
Consolidated
Forecasts

Shareholder
Returns● Assumptions:
Expect an increase in demand for our products due to widespread
penetration of generative AI and an increase in demand for the Chinese
market.
● Expect significant YoY growth in both revenue and profit based on thecurrent market situation, the usage status of our products and the launch ofoperation of customers' new plants.
Net sales: 193.4 billion yen (up 19.2%),
Operating income: 29.3 billion yen (up 29.0%)● Under the dividend policy targeting 4.0% of a consolidated dividend on
equity ratio, DOE, the interim dividend is 29 yen. The annual dividend
is forecast to be 58 yen.
● Maintain the forecast of dividend growth of consecutive 7 years.
(Note) The Company conducted a 3-for-1 stock split for common shares on January 1, 2024.
Dividend forecasts for FY2024 reflect the effect of the stock split.

© 2024 TOKYO OHKA KOGYO CO., LTD.

3

Summary(FY2024 1H)（Millions of yen,％）FY2024 1H

FY2023 1H
Change%InitialForecast

Progress(%)

77,674

94,736+17,062+22.0

83,100114.0

Electronic functional
materials

41,84851,360+9,511+22.7

45,600112.6

High purity chemicals

34,86542,475+7,609+21.8

36,500

116.4

959

900

(58)

(6.1)

1,000

90.1

Operating income

10,904

13,443+2,538+23.3

11,100121.1

Ordinary income

11,806

14,110+2,303+19.5

11,600

121.6

5,355

9,143

+3,788

+70.7

6,800

134.5

14,691

17,570+2,879+19.6

15,100116.4

Net sales

Other

Profit attributable toowners of parent
EBITDA

Average exchange rate (US$)︓¥134.2／$（FY2023 1H）⇒ ¥151.5／$（FY2024 1H）


Net sales: Up 22.0% YoY due to a recovery of the semiconductor market backed by increased demand forgenerative AI and growth of Chinese market, and the impact of exchange rate changes.

Operating income: Up 23.3% YoY due to increased sales and the impact of exchange rate changes.

Profit attributable to owners of parent: Up 70.7% YoY due to increased operating income and an absence ofbusiness restructuring costs recorded last year.
© 2024 TOKYO OHKA KOGYO CO., LTD.

4

Electronic Functional Materials Division

Display/

Display/other

Legacymaterial

other

17%

Advancedmaterial

1st Half
Result41,848millions ofyen

8%Materials for
Packagingprocess

Materials for 10%
13%
Packaging
FY 2023
process12%
g+i

FY 2024
1st Half
Result51,360
millions of
yen

22%
KrF

32%
Advancedmaterial

28%

Legacymaterial

KrF

33%

ArF

25%

*1 Legacy material︓g/i-line resist, etc.,*2 Advanced material ︓ArF/EUV resist, etc.,*3 Materials for Packaging process
︓Resist for Package・MEMS material・WHS* related material© 2024 TOKYO OHKA KOGYO CO., LTD.

Breakdown of the Change in operating Income5

1st Half of FY2023 Result vs. 1st Half of FY2024 Result
Impact ofsales Increases, etc+¥6.1 billions

Impact of exchange
rate changes
Price adjustment＋¥0.8 billions

Expenses Increase(¥4.4 billions)¥13.4
billions¥10.9
billions

1st Half of
FY2023Result+¥2.5 billions

1st Half of
FY2024
Result© 2024 TOKYO OHKA KOGYO CO., LTD.

6

Non-operating Expenses or income/Extraordinary Losses or Income（Millions of yen）

1H
FY2023

1H
FY2024

Change

+902

+666

(235)

Interest and divided income

+433

+474

＋40

(Foreign exchange related losses/gains)

+302
+370
(67)

+23
+73
(50)

(279)
(296)
＋16

Extraordinary Losses or Income(1,504)+682+2,187

-

+185

+185

Gain on sale of non-current
assets

＋219

+12

(206)

Gain on sale of investment
securities

-

+508

+508

Loss on retirement of noncurrent assets

(47)

(23)

＋23

Loss on sale of businesses(1,720)-+1,720Non operating Expenses orIncome(Loss) gain on valuationof derivatives
Derivatives

Gain on change in equity© 2024 TOKYO OHKA KOGYO CO., LTD.

Consolidated Performance
Forecasts for FY2024(2024.1-2024.12)© 2024 TOKYO OHKA KOGYO CO., LTD.

8

Earnings Forecasts (Full-year)（Millions of yen,％）FY2024FY2023
Net Sales

Revisions of
Forecasts

Change%Initialforecast

Progress (vs.
initial forecast)

162,270

193,400+31,129+19.2

179,200+7.9

Electronic functional
materials

87,799105,500+17,700+20.2

97,900+7.8High purity chemicals

71,992

86,100+14,107+19.6

79,300

+8.6

2,477

1,800

(677)

(27.3)

2,000(10.0)

Operating income

22,70629,300+6,593+29.0

26,800+9.3

Ordinary income

24,26030,400+6,139+25.3

27,700+9.7

Profit attributable toowners of parent

12,71219,800+7,087+55.8

17,600+12.5

EBITDA

30,42037,700+7,279+23.935,100

+7.4

7.2

10.3

+3.1

－

9.3

－

OthersROE

Average exchange rate (US$)︓¥140.3／$（FY2023）⇒ ¥145.0／$（FY2024）Net sales: Forecast to increase 19.2% YoY due to a recovery of the semiconductor market
backed by increasing demand for generative AI and growth of Chinese market, and the impact of exchange rate changes.

Operating income: Forecast to increase 29.0% YoY due to an increase in sales and the impact of exchange rate changes.
Profit attributable to owners of parent: Forecast to increase 55.8% YoY due to an increase in operating income.
Net sales and net income are expected to reach record highs.

© 2024 TOKYO OHKA KOGYO CO., LTD.

Electronic Functional Materials Division
Display/
Legacymaterial

Display/

other

10%
Materials for
Packagingprocess

19%
Advancedmaterial

FY2023Result87,799millions of
yen

22%
KrF

32%

27%

Legacymaterial

other
Materials for
Packagingprocess

12%

Advancedmaterial

9

8%

12%
g+i

FY2024
Forecast
105,500
millions of
yen

KrF

33%

ArF
25%

*1 Legacy material︓g/i-line resist, etc.,*2 Advanced material ︓ArF/EUV resist, etc.,*3 Materials for Packaging process
︓Resist for Package・MEMS material・WHS* related material© 2024 TOKYO OHKA KOGYO CO., LTD.

Breakdown of the Change in Operating Income

10

FY2023 Result vs. FY2024 Forecast
Impact ofsales Increases, etc+¥14.6 billions

Impact of exchange
rate changes・Price adjustment(¥0.3 billions)

Expenses Increase(¥7.7 billions)

¥29.3

¥22.7

billions

billions

FY2023ResultFY2024
Forecast+¥6.6 billions© 2024 TOKYO OHKA KOGYO CO., LTD.

11

Sales Breakdown(Forecast)
Net sales(Millions of yen)

120,000

Old segment

New segment

110,000
100,000
90,00080,00070,00060,00084,711
2,343
37,21390,723
2,726
40,35250,00094,736
77,674959
34,86584,596900

1,518
37,12742,47598,664900

43,62540,00030,00020,00045,15347,64541,84845,951

51,36054,14010,0000

FY 2022/1H FY 2022/2H FY 2023/1H FY 2023/2H FY 2024/1H FY 2024/2H
Forecast

Electronic fanctional materials

High-purity chemicals

Other© 2024 TOKYO OHKA KOGYO CO., LTD.

Capital Investments/Depreciation/R&D

12（Millions of yen,％）

1H
FY2023

1H
FY2024

ResultResultFY2023
Progress(vs. initial
forecast)

ResultFY2024
Revised
Forecast

ChangeInitialForecast

CapitalInvestments

6,380

11,22041.1

15,052

27,400+12,347

27,300Depreciation

3,786

4,127

49.7

7,713

8,300

+586

8,300

R&D

6,038

7,537

52.0

12,65815,000+2,341

14,500 Capital Investments: Expect to be in line with the plan.
 Depreciation: Expect to be in line with the plan.

 R&D: The plan has been revised taking into account research anddevelopment expenses in 1H.

© 2024 TOKYO OHKA KOGYO CO., LTD.

Initiatives in TOK
Medium Term Plan 2024

© 2024 TOKYO OHKA KOGYO CO., LTD.

14

TOK Vision 2030
Qualitative
Provide new innovations that inspires customers
Earn trust from stakeholders worldwide
Continue developing high technological capabilities
and show international presence
Enhance corporate value sustainably
with an aim to contribute to SDGs
All employees can work lively with pride
Quantitative Aspects

FY2020Net sales

117.5

tok Medium-Term Plan 2024

FY2030

FY2024 Targets
Over

180.0

350.0

(billion yen)

EBITDA

22.3

Over

35.0

77.0

6.7%

Over

8.0%

13%

(billion yen)ROE

© 2024 TOKYO OHKA KOGYO CO., LTD.

Features of the tok Medium-Term Plan 2024

15

Medium-term plan to attain TOK Vision 2030
Management Vision“The e-Material Global CompanyTM”

contributing to a sustainable future through Chemistry.

Business 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（５）Build sound and efficient management foundation© 2024 TOKYO OHKA KOGYO CO., LTD.

Increase global market share of cutting-edge photoresists &Acquire and create core technologies in electronic materials and new fields
Medium-Term Plan

Segments

Expand sales with a full
lineup of products to meet

Photoresist for
semiconductor

growing demand forsemiconductors

Materials for
Packaging process

Rapidly develop products forthe cutting-edge

packaging technologies

Expand sales in Asia andNorth America in responseto the sophistication ofHigh-Purity
Chemicals

semiconductor process
and demand increase16

Progress
 Advanced materials
The market share of our products is risingin the cutting-edge field including for generative AI.
 KrF
The market share of our products for semiconductors of new andolder generations is rising, contributing in all four growth areas.
 Legacy materials
Sales are steadily growing in the “Sensing & IoT” field such as forautomotive semiconductors and “Green Energy” field.
 Packaging materials:
Demand for photoresist for cutting-edge packaging is increasing
with the rise of generative AI. Our products’ share is rising.
 MEMS materials:
Sales show steady growth.
 WHS-related materials
Expand sales by a new M&E strategy.

 Thinners
Sales are expanding in Taiwan, China, and Japan.
Update global supply.
 Clean Solutions
The market share of our products for cutting-edge field is rising.
Accelerate new product development.

© 2024 TOKYO OHKA KOGYO CO., LTD.

17

Growth prospects for TOK products
due to increasing demand for generative AI
Examples of use of GPU for generative AI and TOK products
For DRAMFor Micro Bump

EUV/ArF/KrF photoresists

Packaging materials(Bump formation resists)

For Logic

ArF/KrF photoresists

For GPU

EUV/ArF/KrF/i-line photoresists
For interposer

KrF photoresists
Packaging materials (RDL resists)
WHS materials
Interposer substrates
Package substrates

Growth projection of generative AI market($100M)
Finance
Social/Infrastructure
Manufacturing

Bump formation resists for HBM
Sales growth forecasts (vs. 2022)

2,110

CAGR

53.3 %

Approx. more than
5 times（2023→2030）

RetailMedical/Nursing
Education

671

PublicCommunication/Package
Other

Approx. 2.5 times

106
2023

2025

2030

2022

2023

2024

Source: “PRODUCTION FORECASTS FOR THE GLOBAL ELECTRONICS AND INFORMATION TECHNOLOGY INDUSTRIES” published by Japan Electronics and Information Technology Industries Associiation in December 2023

© 2024 TOKYO OHKA KOGYO CO., LTD.

18

Progress toward the Medium-Team Plan:
Capital Investments

Accelerate strategic investment
toward achieving "TOK Vision 2030"

TOK Advanced Materials Co., Ltd.
(South Korea)

・Invest to enhance quaility control thatenables to increase production capacity
・Started construcion in 2H of 2023
Scheduled to start operation in 1H of 2026

TOK Advanced Materials Co., Ltd.
(South Korea)

・Acquire a site for a new plant in Pyeongtaek,
Gyeonggi Province. Maximize the synergy withthe existing plants to prepare for the futurebusiness expansion.
・Start construction in 2027
Schedued to start operation in 2028

TOK/Koriyama Plant (Japan)

・Decieded to construct a new productionbuilding for photoresist, the largest in Japan,that will achieve the world’s best quality andhighest production efficiency.
・Start construction in 2H of 2024
Scheduled to start operation in 2H of 2026

TOK/Aso Plant, Aso Kumamoto Site (Japan)
・ Constructed a new production plant for highpurity chemicals
Plan to supply our products to customers in WesternJapan including Kumamoto
・ Completed contraction in July 2024
Scheduled to start operation in 1H of 2025

© 2024 TOKYO OHKA KOGYO CO., LTD.

19

Progress toward the Medium-Team Plan:
Capital Investments

Increasing production facilities in preparation
for future demand growth
Koriyama
Plant
Aso
Kumamoto
Site

A new production building is under construction(scheduled to start operation in 2H of 2026)• Total construction costs: Approx. 20.0 billion yen• Production item: Photoresists

A new production building was completed(schedueld to start operation in 1H of 2025)• Total construction costs: Approx. 13.0 billion yen• Production item: High-purity chemicals“Employee-friendly“ smart factory
ーImproving both production capacity and work emvironmentー

Automation/digitalizationof production process

Improve production capacity
Improve production efficiency
Stabilize/improve quality© 2024 TOKYO OHKA KOGYO CO., LTD.

20

Improve employee engagement and promote
people-oriented management
tok Medium-Term Plan 2024

TOK Vision 2030

Consolidated net sales:
162.2 billion yen (2023)●2022

Consolidated net sales:
350.0 billion yen

CAGR 12%Introduced employee engagement indicators as part of the KPIs for the officers’ remuneration plan
●2023 Introduced “Tokyo Ohka Global Employees Stockholding Association Plan"●2024

Material
Issue

Established Human Capital Div. and introduced Restricted Stock Incentive Planfor Employees Stockholding Association

Pursue happiness ofhuman resources

Risks and Opportunities

Expand interactions between
capitals and create bigger
economic and social values

Intensifying cross-border competition
for human resources in thesemiconductor related industries

Human resources
Build
Master

Suppliers
Research
institutions

Create innovation and enhancecompetitiveness through active participationof diverse human resources

Venturecompanies
Investors

Human
network

Technology

Support

Improve corporate
value

Customers

Customers

tok

Develop global talents to copewith an increase in overseas sales ratio

Everyone can work
lively with pride

tok’ｓvalue chain

Innovation
Socialcontribution
Value creation

EnhanceFinance

Growing importance of happiness (well-being)for employees and society

Create highadded value

4 human resource strategies①Formulation ofdiverse population②Humanresource
development③ DE&I④Improvement of engagement© 2024 TOKYO OHKA KOGYO CO., LTD.

21

Promotion of BS management<Build sound and efficient management foundation>
Allocate the generated EBITDA
to prioritize capital investments and growth investments
for future growth and flexibly return to shareholders.
3-year cash flow plan （Landing zone image FY24/12）
Increase in working capital/ Income taxes paid. etc.

Shareholder returns
Around 20.0
billion yen or more

Cumulative
EBITDA

Approx. 105.0
billion yen

Growth investments
Around 20.0
billion yen or more

Capitalinvestments(Base)
BS adjustments

Approx. 56.9
billion yen

DOE : 4.0%
Flexibly conduct share buybackLong-run R&D-driven company(Launch of new businesses,
investment in human capital and IP,
climate change response, andM&As.)
Expand production bases toprepare for expansion ofsemiconductor market and stablesupply of high-quality products© 2024 TOKYO OHKA KOGYO CO., LTD.

Trends in Shareholder Returns and Dividends

22<Build sound and efficient management foundation>

Adopts a dividend on equity (DOE) ratio to ensure stable and continuous returns toshareholders. The dividend policy is to aim for a DOE 4.0%. (from FY2021/12).

Flexibly conducts share buyback as a means of returning profits to shareholders.

Buy Back worth
9,999million yen

Buy Back

FY
Interim dividend
Year-end dividend
Special dividend

Guidelines on
dividend policy

53

56

51

52

6,431

6,386

6,469

6,797

58（Yen）

A stock split was carried out
into 3 shares for 1 share As ofJanuary 1, 2024 (effective date).

40

32

Total dividend amount
Dividend per share**Figures prior to FY23/12 are recalculated toreflect the effect of the stock spllit.
Amounts less than 1 yen are rounded down.

Buy Back worth
9,999million yen

21
5,003

2,743

3,999

17/12

18/12

19/12

20/12

21/12

22/12

23/12

10
10

12
20

20
20

20
21
10

20
31

26
27

27
28

tok Medium-Term Plan 2018
- Consolidated payout ratio of over
40% -tok Medium-Term Plan 2021
-Based on consolidated DOE of
3.5% -

7,044（ Million yen ）24/12

Forecast

29
29 Forecast

tok Medium-Term Plan 2024
-Based on consolidated DOE of
4.0%-© 2024 TOKYO OHKA KOGYO CO., LTD.

“The e-Material Global Company ”
contributing to a sustainable future through Chemistry© 2024 TOKYO OHKA KOGYO CO., LTD.

Appendix© 2024 TOKYO OHKA KOGYO CO., LTD.

25

Balance Sheets（Millions of yen）
As of
June 30,
2024

vs. December
31, 2023

148,420+14,092

Cash and deposits

62,093+5,276

Notes and accounts
receivable

41,385+7,486Inventories

34,916+1,833

Property, plant and equipment

82,163+8,928Intangible assets

1,668

+279

Investments and other assets

40,836(2,075)Current Liabilities

53,462+14,835

25,898+5,567Long-Term Liabilities

14,167(3,589)Total net asset

205,457+9,977

Total asset

273,088+21,223

Current Assets

Notes and accounts
payableBuildings and structures +433
Machinery, equipment and vehicles (592)
Tools, furniture and fixtures +469
Land ＋359
Construction in progress +8,208

Investment securities +1,183
Long-term time deposits (6,000)
Long-term deposits ＋1,443
Long-term prepaid expenses +809

Notes and accounts payable +5,567
Short-term borrowings ＋3,965
Income taxes payable +2,219
Accounts payable - facilities +1,991

Long-term borrowings (3,900)
Long-term unearned revenue +358

Retained earnings +5,664
Treasury stock +168
Valuation difference on available-for-salesecurities +1,127
Foreign currency translation adjustment
account +4,035© 2024 TOKYO OHKA KOGYO CO., LTD.

26

Cash Flows（Millions of yen）

2023/62024/6+8,987+13,543+10,302+14,793

Depreciation+3,786+4,127

Decrease (increase) in trade notes andaccounts receivable+4,127(5,848)Decrease (increase) in inventories(5,608)(275)

Decrease (increase) in trade notes andaccounts payable(2,329)+4,579

Increase (decrease) in advances
received+1,034(7)

Income taxes paid

(4,102)(2,099)Cash flows from investing activities(5,481)(2,080)Cash flows from financing activities(3,998)(7,006)

Translation adjustments+1,780+2,120+1,288+6,577

Cash flows from operating activities
Income before income taxes andminority interests

Net increase (decrease) in cash andcash equivalents

Major breakdown
Purchase of property, plant andequipment(8,578)
Increase (Decrease) in Long-Term
Deposits+6,000
Proceeds from transfer of business－

Major breakdown
Dividends paid(incl. minority shareholders)(7,167)© 2024 TOKYO OHKA KOGYO CO., LTD.

27

Sales Breakdown
Net Sales（Millions of yen）

49,71850,00045,00040,00038,463570

39,211
388

40,946
303

409

490

1,215

22,40935,00030,00043,65045,017

18,33020,065

18,796

17,454

17,411

20,437

21,411

22,31323,637

24,46023/12Q1

23/12Q2

23/12Q3

23/12Q4

24/12Q1

25,00020,00015,00010,00026,8995,000
0Electronic functional materials

High purity chemicals

24/12Q2

Other© 2024 TOKYO OHKA KOGYO CO., LTD.

www.tok.co.jp/eng(Note)
This presentation material contains forward-looking statementsthat describe future prospects of TOKYO OHKA KOGYO CO., LTD.
(the Company) in terms of business planning, earnings andmanagement strategies. Such statements are based on
management’s judgement, derived from information available toit at the time such information was prepared. Readers are
cautioned not to rely solely on these forward-looking statements,
as actual results and strategies may differ substantially according
to changes in the Company’s business environment.

© 2024 TOKYO OHKA KOGYO CO., LTD.