TOKYO OHKA KOGYO CO., LTD.
Business Results― Fiscal Year ended March 2015―May 11, 2015

Contents
1. Consolidated Business Results for
FY2015p.2

2. Consolidated Performance Forecasts for
FY2016p.12
3. Initiatives under
TOK Medium-Term Plan 2015p.19

4. Capital Policies

p.28
1

Consolidated Business Resultsfor FY2015

Summary(Millions of yen)

FY2014FY2015
Change%Net sales

75,26988,086+12,817+17.0

Operating income

10,025

13,253+3,227+32.2

Ordinary income

12,26914,443+2,174+17.7

Net income

7,549

8,818+1,269+16.8

Average exchange rate (US$): ¥99.3/$ (FY2014) ⇒ ¥109.3/$ (FY2015)
Net Sales: Growth exceeded the revised forecast (on October 29, 2014) due to the firstsales growth in three years in the Equipment Business and a favorable performance inthe Material Business.
Operating Income: Amid increased depreciation, growth exceeded the revised forecast
due to higher sales in the Material Business and improved profitability in theEquipment Business. Achieved record high.
Net Income: Record high continued from the previous year due to a substantial
increase in operating income.

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

FY2014FY2015Non-operating expenses or income

2,243

1,190(1,053)

Non-operating income

2,503

2,174(329)

309
1,391

229
1,459(79)
+68

259

983－
187－

460
4
496+724+460(182)+496(603)

(141)

+461

291

650－
172

622－

+359+622(172)894

792(101)856
25665
114(191)+89

Interest and dividend income
Foreign exchange gains

Non-operating expenses
Loss on valuation of derivatives
Taxes and dues
New plant related expenses

Extraordinary losses or income
Extraordinary income
Gain on revision of retirement benefit plan
Gain on liquidation of subsidiaries

Extraordinary losses
Impairment loss
Loss on retirement of non-current assets

YoY4

Results by Business Segment(Millions of yen)

FY2014FY2015
ChangeNet sales%

75,26988,086+12,817+17.0

72,866

84,611+11,744+16.1

Electronic functional materials

43,26149,818+6,556+15.2

High purity chemicals

29,194

34,844+5,650

+19.4

410

(52)

(463)

－2,402

3,475+1,072+44.7

10,025

13,253+3,227+32.2

Material business

14,086

16,355+2,269+16.1

Equipment business(889)

20+909－(3,171)(3,122)+48－

Material business

Other
Equipment business
Operating income

Eliminations and corporate(Note) Net sales of the Equipment Business are the figures after elimination of inter-segment sales.

5Breakdown of the Change in Operating Income(Material Business)
FY2014 result vs FY2015 resultExpenses increase(¥¥3.5billion)

Impact ofsales increases, etc.
＋¥5.1billion

Impact ofexchange rate changes
anddiscounted selling prices＋¥0.7billion¥16.4¥14.1billionbillion

FY2014ResultFY2015
Result＋ ¥2.3 billion

6

Sales Breakdown of Material Business
Net Sales(Millions of yen)

20,00015,000(Note)

18,307103(Note)

17,015138

19,50689

21,051
36

8,492

21,804(267)

22,248
89

9,198

9,341

7,812
7,588
7,321

10,0005,000

10,615

11,604

12,523

12,873

12,817

2015/1Q

2015/2Q

2015/3Q

2015/4Q

High purity chemicals

Other9,55402014/3Q

2014/4Q

Electronic functional materials(Note) Some sales channels have changed following the start of the Korean subsidiary.
A difference in accounting periods between the Company and its subsidiaries had a negative impact on sales in 3Q and 4Q ofFY2014.

7(Reference)
Electronic Functional Materials Division
Sales Composition of Electronic Functional Materials by Type
Other

Other

g+i
17%
7%
FY2014Full-year KrF
LCD
result20%(actual)
22%
ArF
22%

High-density
integration

12%

g+i
17%
9%
FY2015
KrF
Full-year
LCD
22%
18% result

High-density
integration

11%

ArF
23%

Sales Composition of Semiconductor Photoresist by Region
Japan

Japan

23%
FY2014
Asia Full-year
result59% (actual) North America
13%

20%
FY2015
Asia
Full-year
North America
60%
result15%

5%5%EuropeEurope(Note) Sales composition of FY2014 full-year results were prepared using figures after retroactive adjustments reflecting the change
in sales channels.

8Equipment BusinessNet sales/Order backlog(Millions of yen)

1,975
1,870

2,000
1,629
1,499

1,527
1,500
1,157
1,000

874
748

Netsales500
Orderbacklog
02014/1H

2014/2H

2015/1H

2015/2H(Millions of yen)

2014/1H

2014/2H

2015/1 H

2015/2H

Year-endorder backlog

769

1,051

1,180

1,072

(Note) The net sales of the equipment business is the figure after elimination of inter-segment sales.

9Balance Sheets(Millions of yen)

As ofMarch 31,
2015
Current assets

YoY

91,054+7,806

Cash and deposits

53,967+595

Notes and accounts receivable

19,422+2,798

Inventories

11,555+1,109

49,371+4,794934+284

Investments and other assets

33,503+6,118Current liabilities

19,295+4,917

9,797+4,0533,569+2,050

Total net assets

151,999+12,036

Total assets

174,863+19,004

Property, plant and equipment
Intangible assets

Notes and accounts payableNon-current liabilities

Buildings and structures
Machinery and equipment
Tools, furniture and fixtures
Land
Construction in progress+1,814+10,683+576+191△8,471Retained earnings+6,338Treasury stock+96
Valuation difference on
available-for-sale securities+1,471
Foreign currency translation adjustments+2,87710

Cash FlowsFY2014 FY2015
Cash flows from operating activities+11,881 +13,577

Income before income taxes and minority
interests+11,666 +14,301

Depreciation+2,672+4,276

Increase (decrease) in allowance for doubtful
accounts

(925)

(94)

Decrease (increase) in trade notes andaccounts receivable+720(2,119)+1,018(368)

Decrease (increase) in trade notes andaccounts payable(449)+3,121

Increase (decrease) in advances received
Income taxes paid

(652)
(2,583)(692)(3,935)

Cash flows from investing activities(14,491) (10,197)

Cash flows from financing activities(2,471)(2,110)Translation adjustments
Net increase (decrease) in cash and cash
equivalents+1,058+1,138(4,023)+2,408Decrease (increase) in inventories(Millions of yen)

Major breakdown:
Purchase of property, plant andequipment(7,052)
Purchase of investmentsecurities(2,284)
Major breakdown:
Cash dividends paid
(2,651)(incl. minority shareholders)11Cash Flows(Millions of yen)

FY2014 FY2015
Cash flows from operating activities+11,881 +13,577

Income before income taxes and minority
interests
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Decrease (increase) in trade notes andaccounts receivable
Decrease (increase) in inventories
Decrease (increase) in trade notes andaccounts payable
Increase (decrease) in advances received
Income taxes paid

+11,666 +14,301+4,276+2,672(925)
(94)
+720
(2,119)Cash flows from investing activities(14,491) (10,197)

Cash flows from financing activities(2,471)(2,110)Translation adjustments+1,058+1,138(4,023)+2,408Net increase (decrease) in cash and cash
equivalents+1,018(4499(368)+3,121(652)(2,583)(692)(3,935)Major breakdown:
Purchase of property, plant andequipment(7,052)
Purchase of investment
securities(2,284)
Major breakdown:
Cash dividends paid
(2,651)(incl. minority shareholders)

11Consolidated Performance
Forecasts for FY2016

Earnings Forecasts (Full-year)(Millions of yen)

FY2015Results

FY2016 Forecasts
Change%Net sales

88,086

96,700+8,613+9.8

Operating income

13,253

13,300+46+0.4

Ordinary income

14,44313,800(643)(4.5)

Net income

8,818

9,000+181+2.1

Exchange rate assumptions(US$): ¥109.3/$ (FY2015) ⇒ ¥115.0/$ (FY2016)
Net sales: Forecast is for increase of 9.8%, as electronic functional materials growth is driving
sales growth and higher sales are expected in the Equipment Business.
Operating income: Although depreciation increases substantially, operating income is in linewith that of the previous year.
Net income：A foreign exchange gain and a tax expense decrease are expected, and anincrease in net income is forecast.

13

Capital Investments/Depreciation/R&D(Millions of yen)
15,00014,577

12,50010,000

7,500

6,360

6,211

6,157

4,393

4,038
3,162

2,500

5,900

6,903

5,332
5,000

7,500

7,276
6,389
4,276

3,758

4,200

2,672

1,700

0
11/3

12/3
Capital investments

13/3

14/3
Depreciation

15/3

16/3 (Forecast)
R&D

14Performance Forecasts by Business Segment(Millions of yen, %)FY2015FY2016 Full-year forecasts

Full-year results

Change%88,086

96,700+8,613+9.8

84,61192,300+7,688+9.1

Electronic functional
materials

49,81854,600+4,781+9.6

High purity chemicals

34,84437,500+2,655

+7.6

3,475

4,400+924+26.6

13,253

13,300+46+0.4

16,355

16,400+44+0.3

20

200+179+887.5(3,122)(3,300)(177)－Net sales
Material business

Equipment business
Operating income
Material business
Equipment businessEliminations and corporate(Note) The net sales of the equipment business is the figure after elimination of inter-segment sales.

15

Breakdown of the Change in Operating Income (Material Business)
FY2015 Result vs FY 2016 Forecast
Expenses increase(¥3.7 billion)

Impact ofsales increases, etc.
＋¥3.2 billion

Impact ofExchange rate changes
anddiscounted selling prices+¥0.5 billion¥16.4
billion¥16.4
billion

FY2015/3
Full-year result

FY2016/3
Full-year forecast+ ¥0 billion

16

Sales Breakdown of Material Business (Forecast)
Net Sales(Millions of yen)

50,000(Note)

40,00030,00037,543
168

35,323242

40,55712544,053△ 177

44,90010047,400
100

18,40018,53919,10024,127

25,69025,7002015/1H

2015/2H

2016/1H(Forecast)

16,304

14,283
14,91020,00010,00023,091

20,17028,9000
2014/1H

2014/2HElectronic functional materials

High purity chemicals

2016/2H(Forecast)Other(Note) Some sales channels have changed following the start of the Korean subsidiary.
A difference in accounting periods between the Company and its subsidiaries had a negative impact on sales in
2014/2H.
The second half forecast is obtained by subtracting first-half results from the full-year forecast.

17(Reference) Electronic Functional Materials Division
Sales Composition of Electronic Functional Materials by Type
OtherHigh-density
integration

11%
9%

g+i
17%

FY2015Full-year
LCD
18% result

OtherHigh-density
integration

KrF
22%

ArF
23%

g+i16%
13%
FY2016KrF
LCD Full-year 22%
forecast
16%
ArF
23%
10%

Sales Composition of Semiconductor Photoresist by Region
JapanJapan

20%
FY2015Asia Full-year North America
60% result
15%

22%FY2016
Asia Full-year North America
59% forecast
15%

5%Europe4%Europe18

Initiatives in
TOK Medium-Term Plan 2015

Summary of TOK Medium-Term Plan 2015
Management Vision“Aim to be a globally trusted corporate group by inspiring
customers with high value-added products that havesatisfying features, low cost and superior quality."• Consolidated operating income: ¥20,000 million (fiscal 2021target)•• Net sales: ¥99,000 million• Operating income: ¥15,000 million

既存事業businesses
構成
Existing

Numerical Targets (FY2016)

Deepen and expand existing

既存領域の深耕・拡大
business domains
Rebuild existing
business domains

既存領域の再構築

既存事
業領域domains
Existing
business• “Deepen and expand existing
business domains, and swiftly launch
new business domains.”

将composition来の事業構of成businesses
FutureCultivate
new business
新規領域の開拓domainsbusiness
新規New事domains
業領域

Management Objectives

Features of the “TOK Medium-Term Plan 2015”• “Surpass record-high earnings” “Enhance business foundations”“Expanding business domains”
20Progress toward Numerical Targets (Budget Base)
Results for the final year (FY2016)
FY2013Results

FY2016
Budget72,91996,700 99,000

Material business

67,69792,30088,000Electronic
functional
materials

43,11654,60062,300High purity
chemicals

24,14437,50025,500

Other435200200

Equipment
business

5,222

4,400

11,000Operating income

7,872

13,300 15,000(Millions of yen)
Net sales

Material business
Equipment
business

FY2016
Target10,716

16,40016,800

232

200

1,500

Eliminations andcorporate(3,075)

Exchange rate (¥/$)

81.9(3,300)
115.0(3,300)92.0

Progress of mainstay products
Newbusiness/Newmaterial

Highdensity
integrationmaterials

Equipment
business

g＋＋i

KrF

LCD
materials

ArF

High purity
chemicals

Delay

Almostachieved

Favorable

FY2016 estimates vs“TOK Medium-Term Plan 2015” targets(on a sales basis)(Note) Size of diagram does not reflect the sales volume.

21

Semiconductor Photoresist
Approx.
1.4 times

ArF: Net sales(Budget base)

FY2013
Net sales=100

KrF: Net sales(Budget base)

FY2013
Net sales=100

Ongoing activities toward winningmarket share in the 1Xnm node
⇒Regional-based strategy focusedon characteristics, quality, andresponse

FY2013ResultApprox.
1.4 times

FY2014
Result

FY2015Result

FY2016
BudgetToward winning market share inthe thick film photoresists for 3DNAND⇒Material development compatible
with new fields

FY2013ResultFY2014
Result(Note) Sales of ArF and KrF are prepared reflecting the change in sales channels in FY2014.

FY2015Result

FY2016
Budget22

High Purity Chemicals
Over
1.5 times

Evolving miniaturization of semiconductors⇒ Increasing needs for higher quality in photoresist
chemicals used to manufacture semiconductors
Differentiation based on development and sales
expansion of high-quality grade tailored to customer’s
processes
Response to new growth markets(Budget base)

FY2013
Net sales=100

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016

ResultResultResultResultResultResultResultResultBudget23

High-density Integration Materials
Approx.
2.7 times

Integration materials for advanced process

Market expanding due to smartphones
and tablets growth, and higher density ofsemiconductor packaging
Expand sales utilizing the advantages ofhigh-resolution, positive type photoresist.

(Budget base)

MEMS materials

Associated with sensor market growth, ina phase of expanding demand thatemphasizes performance
Deepen connection with users while
widely and continuously conducting sales
and development activities to acquire newusers

FY2013/3
Net sales=100

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016

ResultResultResultResultResultResultResultResultBudget24

Equipment Business
Expand TSV equipment sales, develop new products, reduce costs(Millions ofyen)

Net Sales / Operating Income

8,000(Millions ofyen)

2,000

Net sales（left）
Operating income（right）
6,000

1,500

5,222
4,400
4,000

TSV equipment

Core of profitability and growth potential
In addition to existing users, takestronger approach to new targets
and expand customer base

1,000

3,475

UV curing machines
2,402
2,000

500
232

200
2000
FY2013

FY2014FY2015FY2016

Budget(500)△ 2,000△ 4,000

Strengthen as the next earnings
pillar after
Actively win orders targeted at smalland medium-sized LCD panels(889)(1,000)

Next-generation flexible display
manufacturing equipment

Currently developing new
manufacturing equipment forelectronic paper and flexible organic
EL displays
25

New Business/New material
Market development/
research

Product
development

Customerevaluation

Commercialize

1um

Diffusion material：：
EPLUS®

Rechargeable
microbatteriesCompound-based photovoltaic
related materials, Si photovoltaic
related material, etc.

NIL/Photonic crystal
structure
LED photonic crystal, etc.
Cathode正負 Cathode正極極

Renewable energyOptoelectronics

Anode極Unique TSV processing
technology using
lithography
microprocessing

・Silicon photonics
・Energy harvesting technologies
・Materials for various sensors
・・・

Lithium ion battery-related materials,
Rechargeable microbatteries, etc.

Rechargeable battery
Microfluidic chip,
MEMS, etc.

Zero Newton®

Life science
Through-silicon-via (TSV) system

IoT

Semiconductor
manufacturing equipment

26

Key Strategy of FY2016
１．Regional-based advantage successful,push forward toward goal
Increase ArF market share and acquire businesses
that leverage the advantage

２．Withan eye on the next medium-term plan,２．
move up to the next stage with newbusinesses and promising projects
Intensify search for new business candidates andspeed up efforts to commercialize

３．Strengthen improved earnings ofEquipment Business
Pursue growth and build a business foundation thatstably secures profitability
27

Capital Policies

Operating Income/ROE
Operating income/ROE
7.1%
5.8%

6.2%

5.3%
4.5%

20.0(billion)

12.8
10.8

13.2

13.3

FY2015FY2016 Budget

10.0
7.8

FY1998FY2007FY2013

FY2014FY2021 Target

Build earnings structure capable of generating operating
income of ¥20.0 billion
Create new businesses and achieve net sales of ¥50.0 billion

Appropriate application of capital policies to raise
corporate value
Formulate policies based
Review target ROE
on business strategy
Review further enhancementsof return to shareholders
29

Returns to Shareholders
Policy of returns toshareholders(points)(1) Considering the current level of dividends, continuously distributing dividends
with a consolidated dividend payout ratio of above 30%(2) With a long-term perspective, comprehensively take into account financial
position and business performance(3) From a long-term viewpoint, flexibly purchase treasury stock as return toshareholders

Returns to shareholders(1): Dividends
Dividend per share(¥¥)

60
5040302010038

445260(Plan)

64(Forecast)Year-end32
30
2824(Plan)

32

Including 4yen ofcommemorative
dividend for 75thanniversary(Forecast)Interim(Forecast)2030241820FY2012FY2013

FY2014FY2015FY2016 Forecast

Consolidated EPS¥84.86¥121.69¥168.54¥196.61¥200.56

Payout ratio

44.8%

36.2%

30.9%

30.5％

31.9%

Returns to shareholders(2): Treasury stock
Number of stocks to be purchased: 1.75 million shares (maximum limit)

Purchase of Total purchase cost: 7 billion yen (maximum limit)
treasury
Equivalent to 3.89% of the total shares issued (excluding treasury stock as of March 31, 2015)
stock
Purchase period: From May 11 through September 10, 2015
Cancellation Number of stocks to be cancelled: 1.5 million shares (Equivalent to 3.22% of the totalof treasury shares issued)
Scheduled date for cancellation: September 16, 2015
stock30

http://www.tok.co.jp/eng(Note)
This presentation material contains forward-looking statements that describe future prospects ofTOKYO OHKA KOGYO CO., LTD. (the Company) in terms of business planning, earnings andmanagement strategies. Such statements are based on management’s judgement, derived frominformation available to it 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 substantiallyaccording to changes in the Company’s business environment.