TOKYO OHKA KOGYO CO., LTD.
Business Results― Fiscal Year ended December 2018―Feb. 15, 2019TOKYO OHKA KOGYO CO., LTD.

© 2019 TOKYO OHKA KOGYO CO., LTD.

Contents
1. Consolidated Business Results for

01

p.02

FY2018 (2018.1-2018.12)
2. Consolidated Performance Forecasts for

p.14

FY2019 (2019.1-2019.12)© 2019 TOKYO OHKA KOGYO CO., LTD.

Consolidated Business Results for
FY2018(2018.1-2018.12)© 2019 TOKYO OHKA KOGYO CO., LTD.

Change in Fiscal Year-End

03

Detail of change in fiscal year-end

Current：End of March ⇒ after：End of December* Approved by the 87th Ordinary General Meeting of Shareholders (held on June 28, 2017)(March 31 ⇒ December 31)
3Q
10-12

1Q
1-3

2017/12
Simulation result
2Q
3Q
4Q
4-6
7-9 10-12

3Q

4Q

1Q

2Q

3Q

1Q

2Q

3Q

4Q

1Q

・・・

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

・・・

2017/3Fiscal year ended in March（TOK and domestic subsidiaries）
Fiscal year ended in December（Overseas subsidiaries）

3Q

Fiscal year ended in December（Overseas subsidiaries）

3Q

2019/12

1Q
1-3

2Q
4-6

3Q
7-9

4Q
10-12

1Q
1-3・・・

2017/12
Simulation result
1Q2Q
3Q
4Q
1-3
4-6
7-9 10-12

1Q
1-3

2Q
4-6

3Q
7-9

4Q
10-12

1Q
1-3・・・

3Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

・・・

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

・・・

3Q
10-12
Fiscal year ended in March（TOK and domestic subsidiaries）

2018/122018/122019/12© 2019 TOKYO OHKA KOGYO CO., LTD.

Summary

04（Millions of yen）

FY2018/12

FY2017/12
Simulation
resultNet sales

100,422 105,277

Change%+4,854+4.8

Operating income

9,878

10,505+627+6.4

Ordinary income

10,534

10,734+199+1.9Profit attributable toowners of parent

6,885

6,875(9)(0.1)

Attention: These are comparisons with the adjusted results for the fiscal year ended December, 2017 due to a change in fiscal yearend. Please refer to slide 03 for details.

■Average exchange rate (US$)： ¥111.1／$（FY2017/12 Simulation）⇒¥109.5／$（FY2018/12)■Net sales：Increased 4.8% year on year due to sales increase both in the Material Business and theEquipment Business.
■Operating income：Increased 6.4% year on year despite the impact of rising raw materials costs.
■Profit Decreased 0.1% year on year due to special factors including impairment loss and tax effectaccounting despite an increase in operating income.
© 2019 TOKYO OHKA KOGYO CO., LTD.

Non-operating Expenses or Income/Extraordinary Losses or Income

05（Millions of yen）

FY2017/12
Simulation
result

FY2018/12

656

228

(427)

Interest and dividend income+347+392+44(Foreign exchange related losses/gains)

(110)
+852
(962)

(274)
(580)
+306

(163)
(1,432)+1,268(979)(920)+59+59+59

Non-operating Expenses or income

Foreign exchange (loss) gainLoss(gain) on valuation of derivatives

Extraordinary losses or Income

YoY

Gain on sales of subsidiaries andaffiliates' stocks-Impairment loss(874)

(860)

(14)

Loss on retirement of noncurrent assets

(218)

(124)

(94)

Attention: These are comparisons with the adjusted results for the fiscal year ended December, 2017 due to a change in fiscal yearend. Please refer to slide 03 for details.

© 2019 TOKYO OHKA KOGYO CO., LTD.

06

Performance Forecasts by Business Segment（Millions of yen）

FY2018 /12

FY2017/12
Simulation resultNet sales

Change%100,422

105,277+4,854+4.8

98,247

102,621+4,373+4.5

Electronic functional
materials

56,947

58,793+1,845+3.2

High purity chemicals

41,16543,733+2,567+6.2

134

95(39)(29.3)

2,174

2,655+4,81+22.1

9,878

10,505+627+6.4

Material business

14,86815,075+207+1.4

Equipment business(1,073)

(883)

+189

-

Eliminations and corporate(3,917)(3,686)+231-

Material business

Other
Equipment business
Operating income

Attention: These are comparisons with the adjusted results for the fiscal year ended December, 2017 due to a change in fiscal
year-end. Please refer to slide 03 for details.

© 2019 TOKYO OHKA KOGYO CO., LTD.

Breakdown of the Charge in Operating Income(Material Business)
FY2017/12 Simulation result

07

vs. FY2018/12 Result

Expenses increase(¥1.9billions)¥14.9

Improvement inproduct mix＋¥3.8billions

Impact of exchange rate changes
andDiscounted selling prices(¥1.7billions)¥15.1billions

FY2017
Simulation result

billions+¥0.2billions

FY2018Result

These are comparisons with the adjusted results for the fiscal year ended December, 2017 due to a change in fiscal
year-end. Please refer to slide 03 for details.
© 2019 TOKYO OHKA KOGYO CO., LTD.

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

25,00024,35723,02835

51

20,00025,53425,327▲452

24,39617

10,922

14,71814,55913,70914,105

17/12*Q1 17/12*Q2 17/12*Q3 17/12*Q4

18/12Q1

18/12Q2

10,044

10,66926,241
1026,693
30

11,015

10,89815,214

15,764

18/12Q3

18/12Q4

25,29035

10,614

9,584

08

11,14915,00010,00014,261

13,4085,000

0Electronic functional materials

High purity chemicals

OtherNote : Following a change in fiscal year-end, comparisons are made with the adjusted results for the quarter of the fiscalyear ended December, 2017. Please refer to slide 3 for details.
© 2019 TOKYO OHKA KOGYO CO., LTD.

Electronic Functional Materials Division

Sales Composition of Semiconductor
Photoresist by Region

Sales Composition of Electric
Function Materials by Type
Other
High-density
integration*

17%
LCD

11%

8%

Semiconductor
Photoresist

g+i09*Sales composition ofsemiconductor
photoresist by region
includes EUV.

Japan

23%

16%

FY2017
Asia
アジア Simulation
North America
北米
58%
result14%

FY2017
KrF
Simulation
24%
resultSemiconductor
Photoresist

ArF

24%
Other

g+iHigh-densityintegration*9%

Europeg+iJapan

15%

17%
LCD

5%

* EUV is included others.
10%* High-density integration：
Resist for Packaging, MEMS Materials

FY2018ResultArF ArF
23%

23%
KrF

Asia
アジア

26%
58%

FY2018ResultNorth
America

14%5%EuropeThese are comparisons with the adjusted results for the fiscal year ended December, 2017 due to a change in fiscal
year-end. Please refer to slide 03 for details.
© 2019 TOKYO OHKA KOGYO CO., LTD.

Equipment Business

10Net sales/Order backlog（millions of yen）

2,500Net sales

Order backlog
1,976

2,000
1,500
1,000

1,594 1,530

1,496677

1,061879

1,0615000(Millions of yen）

2017/1H
Simulation result

2017/2H
Simulation result

2018/1H

2018/2H

Year-end orderbacklog

1,423

1,190

2,291

2,472

These are comparisons with the adjusted results for the fiscal year ended December, 2017 due to a change in fiscalyear-end. Please refer to slide 03 for details.
© 2019 TOKYO OHKA KOGYO CO., LTD.

Capital Investments/Depreciation/R&D11（Millions of yen）

FY2018/12

FY2017/12
Simulation
resultChange%CapitalInvestments

7,633

5,636(1,996)(26.2)

Depreciation

6,917

7,063+146+2.1

R&D

8,888

8,526(361)(4.1)

These are comparisons with the adjusted results for the fiscal year ended December, 2017 due to a change in fiscal year-end.
Please refer to slide 03 for details.

© 2019 TOKYO OHKA KOGYO CO., LTD.

Balance Sheets

12（Million of yen）

FY2018

YoY

101,589+13,870

Cash and deposits

56,093+11,911

Notes and accounts
receivable

22,539△15Inventories

17,245+1,351

Property, plant and equipment

48,358△3,345558+67Investments and other assets

34,176△4,591

Current Liabilities

21,574△167

11,381+937

12,250+8,829Total net asset

150,857△2,659Total asset

184,683+6,001

Current Assets

Intangible assets

Notes and accounts
payableLong-Term Liabilities

Buildings and structures (439)
Machinery(1,542)
Furniture and fixtures
(555)
Land
(123)
Construction in progress (684)

Retained earnings+3,980Treasury stock(2,084)
Unrealized gain on available-for-sale securities(2,578)Foreign currencytranslation adjustments(1,508)© 2019 TOKYO OHKA KOGYO CO., LTD.

Cash Flows13（Millions of yen）

FY2018Cash flows from operating activities+14,311

Income before income taxes andminority interests+9,814

Depreciation+7,063

Increase (decrease) in allowance for
doubtful accounts△420

Decrease (increase) in trade notes andaccounts receivable△1,770Decrease (increase) in inventories+1,092

Decrease (increase) in trade notes andaccounts payable△147

Increase (decrease) in advances received△2,221

Income taxes paid

△8,013

Cash flows from investing activities+4,333

Cash flows from financing activities△741

Translation adjustments+9,889Major breakdown
Purchases of property,
plant and equipment
Increase in time deposits(6,491)(2,150)Major breakdown
Proceeds from long-term loans payable+10,000
Purchases of treasury stock(2,212)
Dividends paid(incl. minority shareholders)(3,426)© 2019 TOKYO OHKA KOGYO CO., LTD.

Consolidated Performance Forecasts for
FY2019(2019.1-2019.12)© 2019 TOKYO OHKA KOGYO CO., LTD.

15

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

FY2018Net sales

FY2019105,277 111,600

Forecast

Change%+6,322+6.0

Operating income

10,50510,500(5)(0.1)

Ordinary income

10,734

10,800+65+0.6

6,875

7,200+324+4.7

Profit attributable toowners of parent■Exchange rate assumptions（US$）： ¥109.5／$（2018/12）⇒¥105.0／$（2019/12）■Net sales :Will increase 6.0% year on year as the growth rate of the Material Business will be the lowest
in the 1st half and recover in the 2nd half.
■Operating in come :Will remain at the same level as the previous year due to cost increase in the Material Businessas well as the impact of exchange rate changes while sales increase is expected.
■Profit attributable to owners of parent :Will secure positive growth year on year as there will no longer be impact of the special factor related
to tax effect accounting.
© 2019 TOKYO OHKA KOGYO CO., LTD.

16

Performance Forecasts by Business Segment（Millions of yen）

FY2019 ForecastFY2018
Net sales%

105,277

116,000+6,322+6.0

102,621

107,100+4,478+4.4

Electronic functional
materials

58,79361,600+2,806+4.8

High purity chemicals

43,73345,300+1,566

+3.6

2,655

4,500

+1,844+69.5

10,505

10,500(5)(0.1)

15,075

14,600(475)

(3.2)

(883)

(100)

+783

-

(3,686)(4,000)(313)-Material business

Equipment business *1
Operating income
Material business
Equipment businessEliminations and corporate*1:

ChangeNet sales of the Equipment Business are the figures after elimination of inter-segment sales.

© 2019 TOKYO OHKA KOGYO CO., LTD.

Capital Investments/Depreciation/R&D

17(Millions of yen)

FY2018FY2019 Forecast
Change%CapitalInvestments

5,636

16,500+10,863+192.7

Depreciation

7,063

7,700+636+9.0

R&D

8,526

9,300+773+9.1

Breakdown of the Charge in Operating Income(Material Business)

18

FY2018 Result vs. FY2019 Forecast
Expenses increase(¥2.4billions)¥15.1

Improvement inproduct mix＋¥5.1billions

Impact of exchange rate changes
andDiscounted selling prices(¥3.2billions)¥14.6

billions

billions

FY2018ResultFY2019Forecast(¥0.5billions)© 2019 TOKYO OHKA KOGYO CO., LTD.

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

50,00040,00047,38586

50,86247

49,68653

21,536

21,81827,66929,277

27,814FY2017/1H

FY2017/2H

FY2018/1H

19,6291955,700
100

52,93441

51,400100

21,914

21,40030,978

29,90031,700FY2018/2H

FY2019/1H

FY2019/2H

23,90030,00020,00010,0000

Simulation result Simulation result

Electronic functional materials

High ourity chemicals

Other

These are comparisons with the adjusted results for the fiscal year ended December, 2017 due to a change in fiscal
year-end. Please refer to slide 03 for details.
© 2019 TOKYO OHKA KOGYO CO., LTD.

Electronic Functional Materials Division

Sales Composition of Semiconductor
Photoresist by Region

Sales Composition of Electric
Function Materials by Type
OtherHigh-density
integration*

17%
LCD

10%

9%

Semiconductor
Photoresist

g+i20*Sales composition ofsemiconductor
photoresist by region
includes EUV.

Japan

23%

15%

FY2018
KrF
Full-year
26%
ResultAsia
アジア
58%

FY2018Full-year
North America
北米
Result14%

Semiconductor
Photoresist

ArF

23%

5%
EuropeOther

8%High-density
integration*

16%
LCD

9%
* EUV is included others.
* High-density integration：
Resist for Packaging, MEMS Materials

g+i

Japan

15%

FY2019Full-year KrF
Forecast 30%
ArF

22%

Asia
56%

FY2019Full-year
Forecast

26%

NorthAmerica

13%5%Europe© 2019 TOKYO OHKA KOGYO CO., LTD.

https://www.tok.co.jp/（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 judgment, derived from information available to it
at the time such information was prepared. Readers are cautioned
not to rely solely on these forward-looking statements, as actualresults and strategies may differ substantially according tochanges in the Company’s business environment.