Business Results for FYE 3/2023

May 9th, 2023
STELLA CHEMIFA CORPORATION
Securities code: 4109

Index【Business Results】【Reference Material】（Corporate Profile ・ Introduction of Our Business）

・Performance Highlights

P. 3

・Corporate Profile

P. 20

・Financial Summary

P. 4－13・Subsidiaries & Associates

P. 21

・Financial Forecast

P. 14－16

・Introduction of Our BusinessP. 22－41

・Shareholder ReturnP. 17－18

2

Performance Highlights[FYE 3/2023 Results]
 Sales volume of Semiconductors declined year on year as a result of the impact of decreased
production by memory manufacturers associated with the deterioration of market conditions
becoming increasingly apparent from the second half.
 The price of anhydrous hydrofluoric acid (AHF), a key raw material, rose year on year.

[FYE 3/2024 Forecast] The impact of downturn in the semiconductor industry is expected to expand compared to
FYE March 2023 on Semiconductors.
 Enriched boron (10B) used by nuclear energy-related facilities is expected to expand in the
Energy department.
3

Financial Summary
Percentage
Increase/
Decrease

FYE 3/2022

FYE 3/2023

Increase/
Decrease

Sales Revenue

37,29635,382－1,913－5.1

Gross Profit

8,902

7,410

－1,491－16.8

Operating Profit

4,583

3,514

－1,069－23.3

Ordinary Profit

5,707

4,347

－1,359－23.8

Profit Attributable to Owners of
Parent

5,364

2,280

－3,084－57.5

Earnings Per Share (yen)422.97186.03－236.94

60

60

-

13.7

5.4

－8.3

(million yen)

Dividend (yen)ROE (%)

4

Sales Revenue and Operating Profit
by Business Segment
Sales Revenue

FYE 3/2022

FYE 3/2023(million yen)
High-Purity
ChemicalBusiness

Operating Profit
Increase/
Decrease

FYE 3/2022

Amount％FYE 3/2023

Increase/
DecreaseAmount％32,33030,707－1,622

－5.0

4,776

2,961

－1,815

－38.0

4,676

4,504

－172

－3.7

764

533

－231

－30.2

MedicalBusiness

100

-

－100

-

－729

-

729

‐

Other

189

170

－18

－10.0

20

30

9

46.8

‐

‐

‐

‐

－248

－11

237

‐

37,29635,382－1,913

－5.1

4,583

3,514

－1,069－23.3

Transportation
Business

Eliminations
and Corporate

Total

5

Sales Revenue of High-Purity
Chemical Business (Breakdown)
FYE 3/2022

FYE 3/2023(million yen)

Semiconductors

17,85919,049

Increase/
Decrease

1,190

Sales Revenue Constituent Ratio

Percentage
Increase/
Decrease

6.7

of High-Purity Chemicals
Purchased Goods
18%

Industrial
Hydrofluoric Acid

3,121

Energy996－2,124－68.1

Sales Revenue
30.7 billion Yen（Abroad 57.3%）

6%
General Products

8%
Semiconductors

Electronic Materials

1,280

1,032

－248

－19.4

Electronic
Materials
3%62%Energy3%General Products

2,246

2,514

268

11.9

100%

Industrial
Hydrofluoric Acid

3,919

Purchased Goods

3,904

5,375

1,471

37.7

32,33030,707－1,622

－5.0

Total

Semiconductors Shipping Ratio by Country

1,739－2,179－55.6
Other
Singapore
TaiwanSouth Korea
Japan
FYE 3/2022

FYE 3/2023

6

Analysis of Operating Profit（Year on year）
Including decreased shipments of
Semiconductors/Energy (－)

Higher raw material prices (－)
Higher selling prices (+)(million yen)
Impact ofdeconsolidation of
Medical Business (+)

4,583
3,514

High-Purity Chemical Business -1,815

7

Change of Quarterly Operating Profit(million yen)

1,400

1,116

1,200
1,000

884

1,179

1,291

1,156

1,291
1,072 1,062

953

902

823

800
600

445

400
200

0

FYE 3/2021

FYE 3/2022

FYE 3/2023

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Sales
Revenue

8,222

8,389

8,315

7,965

8,896

9,212

9,015

10,171

9,764

9,854

8,651

7,112

Operating
Profit

884

902

1,116

1,179

1,291

1,156

1,072

1,062

1,291

953

823

445

10.8%

10.8%

13.4%

14.8%

14.5%

12.5%

11.9%

10.4%

13.2%

9.7%

9.5%

6.3%

Operating
Profit Margin

8

Transitions in Trade Statistics Value ofAnhydrous Hydrofluoric Acid(AHF)( yen/kg )(Note) Different from our purchase prices. Only for reference regarding price fluctuations.

300

250

200

150

100
1Q

(yen/kg)
Average
Price

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023

220

186

168

225

274

Source: Prepared by our company based on the Ministry of Finance’s “Trade Statistics of Japan” (http://www.customs.go.jp/toukei/info/)9

Change of Shipping Volume of High-Purity
Hydrofluoric Acid (Semiconductors)(t)
100,000

Full-year 94,100

90,00080,00070,000

2nd Half 48,400

Full-year 69,300

Full-year 71,100

2nd Half 32,700

2nd Half 35,700

1st Half 36,600

FYE 3/2020

Full-year 75,100

Full-year 72,400

60,00050,000

2nd Half 38,400

2nd Half 35,200

1st Half 35,400

1st Half 36,700

1st Half 37,200

FYE 3/2021

FYE 3/2022

FYE 3/2023

40,00030,00020,000

1st Half 45,700

10,0000

FYE 3/201910

Balance SheetFYE 3/2022
End-of-YearFYE 3/2023
End-of-Year

Increase/
Decrease

Percentage
Increase/
Decrease

Assets56,59855,471－1,126－2.0

Cash and deposits

15,89515,097－798－5.0

Operating receivables

8,642

7,110

－1,532－17.7

Inventory assets

5,271

5,496

225

4.3

21,667

22,625

957

4.4

375

261

－114

－30.4

13,86912,309－1,560－11.3

Operating liabilities

3,522

3,590

68

1.9

Interest-bearing liabilities

5,594

4,138

－1,455－26.0

Net Assets

42,72843,162434

1.0Equity capital

42,17042,875704

1.7

Liabilities and Net Assets

56,59855,471－1,126－2.0(million yen)

Property, plant, and equipment

Intangible assets
Liabilities

11Interest-Bearing Liabilities and D/E Ratio( million yen )(-fold )20,0000.40
Balance of interest-bearing liabilities

0.34

D/E ratio (-fold)

0.33

15,0000.30

0.24

10,00011,06911,184

0.20

8,862

0.13
0.10
5,594

5,000

0.10

4,138

0

0.00

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

FYE 3/2023
12

Statement of Cash Flows
Capital Expenditures, Depreciation & Amortization,
Research & Development Expenses(1) Consolidated Statement of Cash Flows(million yen)

FYE 3/2022

FYE 3/2023

Cash Flows from Operating Activities

5,403

5,634

Cash Flows from Investing Activities－5,674－3,281

－271

2,353

Cash Flows from Financing Activities

94－3,717Net Increase (Decrease) in Cash and Cash Equivalents

292

－810

Cash and Cash Equivalents, Beginning of Period

15,245

15,538Cash and Cash Equivalents, End of Period

15,53814,728(2) Capital Expenditures, Depreciation & Amortization,
Research & Development Expenses

FYE 3/2022

FYE 3/2023

Capital Expenditures

2,648

5,408

Depreciation & Amortization

2,713

2,593

744

660

Free Cash Flows (Operating CF + Investment CF)

Research & Development Expenses

13

Financial Forecast(million yen)

FYE 3/2023
ActualFYE 3/2024
Forecast

Increase/
Decrease

Percentage
Increase/
Decrease

Sales Revenue

35,38232,300－3,082－8.7

Operating Profit

3,514

2,800

－714

－20.3

Ordinary Profit

4,347

2,450

－1,897－43.7

Profit Attributable to Owners of
Parent

2,280

1,650

－630

－27.7

Earnings Per Share (yen)186.03137.33－48.70

Dividend (yen)

60

60

-

ROE (%)

5.4

3.8

－1.6

Capital Expenditures

5,408

4,400

－1,008－18.6

Depreciation & Amortization

2,593

2,750

156

6.1

660

750

89

13.5

Research & Development Expenses※Interim dividend only
(not yet determined forYear-end dividend)

14Forecast on Sales Revenue andOperating Profit by Business Segment
Sales Revenue
FYE 3/2023
ActualFYE 3/2024
Forecast

30,707

Transportation
Business

Other

Eliminations
and Corporate

Total

Increase/
Decrease

FYE 3/2023
ActualFYE 3/2024
Forecast

Amount％27,690－3,017

－9.8

2,961

4,504

4,430

－74

－1.7

170

180

9

-

-

35,38232,300(million yen)
High-Purity
ChemicalBusiness

Operating Profit
Increase/
DecreaseAmount

％

2,330

－631

－21.3

533

450

－83

－15.7

5.5

30

30

－0

－2.5

-

-

－11

－10

1

-

－3,082

－8.7

3,514

2,800

－714

－20.3

15

Sales Revenue Constituent Ratio
Industrial(million yen)
Semiconductors

FYE
3/2022
Actual

17,859FYE
3/2023
Actual

19,049FYE
3/2024
Forecast

18,200

Increase/
Decrease(24/3Forecast23/3Actual)－849

Percentage
Increase/
Decrease－4.5

Hydrofluoric
Acid

Purchased

3%

Goods

General14%

Products
10%Electronic

3,121

Energy

996

1,230

233

23.4

of High-Purity Chemicals

Sales Revenue
27.69 billion Yen（Abroad 57.1%）

Materials

Semiconductors

3%

66%

EnergyElectronic Materials

1,280

1,032

910

－122

－11.8

4%

Semiconductors Shipping Ratio by Country

General Products

2,246

2,514

2,660

145

5.8

Japan
Singapore

South Korea
Other

Taiwan100%

Industrial
Hydrofluoric Acid

3,919

1,739

740

－999

－57.5

Purchased Goods

3,904

5,375

3,950

－1,425－26.5

32,33030,707

27,690－3,017－9.8

合計

FYE 3/2022

FYE 3/2023

FYE 3/2024

ActualActualForecast

16

Shareholder Return
Stella Chemifa’s basic policy is to provide stable and continuous dividend payments, giving comprehensive
consideration to factors including its financial condition and profit level. Retained earnings will be allocatedto capital investment and R&D investment, and will be proactively utilized for future business development
to enhance corporate value.
 FYE3/2022

 Annual dividend: 60 yen per share (Regular dividend 50yen,Special dividend 10yen)
 The Company repurchased 300,000 of its own shares,
worth 840 million yen.

 FYE3/2023

 Annual dividend forecast: 60 yen per share The Company repurchased 500,000 of its own shares,
worth 1,350 million yen from August to November 2022
100
24.7%
Special dividend
9080Year-end dividend(yen per share)
70
60
Interim dividend (yen per share)
50
40
Dividend payout ratio
25
30
（%）
20
10
20
0
FYE3/2019

30.2%

20.4%

32.3%

23
22

25
22

30.0%

14.2%
10
26
24

40.0%
20.0%
10.0%

30

0.0%
-10.0%

30-20.0%-30.0%-40.0%

FYE3/2020

FYE3/2021

FYE3/2022

FYE3/2023

17

New Shareholder Return Policy
The company recognizes that providing stable and continuous dividend payments, giving
comprehensive consideration to factors including its financial condition and profit level is

an important issue for management.
Further, in addition to balancing growth investments and shareholder returns, in order toimprove capital efficiency, the company will aim for a total return ratio of 100% with anapplicable period (FYE 3/2024 and FYE 3/2025)
Retained earnings will be allocated to capital investment and R&D investment, and will be
proactively utilized for future business development to enhance corporate value.

 FYE 3/2024●Interim dividend forecast 60 yen per share* The year-end dividend has not yet been determined because thecompany has decided to judge based on future results forecasts,
consideration of the shareholder return method, etc.

18

Reference Material（Corporate Profile ・ Introduction of Our Business）

Corporate Profile
Corporate NameSTELLA CHEMIFA CORPORATIONHead Of f ice

Meiji Yasuda Seimei Osaka Midosuji Bldg. 10F,
4-1-1 Fushimi-machi, Chuo-ku, Osaka City, Osaka

Founded/EstablishedFebruary 1916 / February 1944

Capital Fund

4,829,782,512 yen

Representatives

Representative Director, President and Chief Executive Officer: Aki Hashimoto
Representative Director, Senior Managing Director(Products Management Group): Kiyonori SakaU

https://www.stella-chemifa.co.jp/english/

R

L

Number of
Employees

284

Sales Department

Osaka Sales Department (Chuo-ku, Osaka city, Osaka)
Tokyo Sales Department (Chiyoda-ku, Tokyo)

Production bases

R&D

base

(as of March 31, 2023)

Sanpo Factory(Sakai-ku, Sakai City, Osaka)
Izumi Factory (Izumiotsu City, Osaka)
Kitakyushu Factory (Yahatanishi-ku, Kitakyushu City, Fukuoka)
Next Generation Materials Research Lab(Sakai-ku, Sakai City, Osaka：Located within Sanpo factory premises)
20Subsidiaries & Associates

At home (3 companies)
Transportation BusinessBLUE EXPRESS, Inc.

Sakai-ku, Sakai City, Osaka

Othe r

B usi ne ss

BLUE AUTO TRUST Co., Ltd.

Sakai-ku, Sakai City, Osaka

MedicalBusiness

STELLA PHARMA CORPORATION

Chuo-ku, Osaka city, Osaka

Abroad (６ companies)
High-Purity Chemical Business

STELLA CHEMIFA SINGAPORE PTE LTD

Singapore

Transportation Business

STELLA EXPRESS (Singapore) PTE LTD

Singapore

High-Purity Chemical BusinessBlue Express (Shanghai) International Trade Inc.

China

Transportation BusinessBlue Express (Shanghai) International Freight Forwarding Co., Ltd.

China

High-Purity Chemical Business

Zhejiang Blue Star Chemical Co., Ltd.

China

High-Purity Chemical Business

Quzhou BDX New Chemical Materials Co., Ltd.

China

21

Introduction of Our Business
Manufacture and applications of hydrogen fluoride

CaF2+ H2SO4 =2HF

Calcium fluoride(Fluorite)

Concentrated
sulfuric acid

Hydrogenfluoride* There are five main grades of fluorite purity,and for semiconductor applications, highquality fluorite with a purity of 97% or higher
is required.

+ CaSO4
Calcium
sulfateConcretematerials, etc.

Reaction and refinement using our proprietary technology

Treatment of
surface such as
stainless steel

Raw materials
such asalternatives for
CFCs

Chemicals for
etching andcleaning forsemiconductors

Materials forlithium-ion
secondarybatteries

Enriched Boron

Reaction catalyst
Other products

22

Introduction of Our Business
High-Purity Chemical Business
Semic o nduc to rs

・Manufacture and sale of chemicals for etching and cleaning in the semiconductor and LCD panel manufacturing processes
・Manufacture and sale of enriched boron (boron 10) used for energy related facilities and cancer therapy (BNCT)

E

n

e

r

g

y
・Manufacture and sale of additives to improve the performance of lithium-ion secondary batteries

・Manufacture and sale of tantalum production aids for tantalum capacitors
E l e c t r o n i c

・Manufacture and sale of raw materials for camera and stepper lenses

M a t e r i a l s・Manufacture and sale of R&D products in the small-quantity production stage・Manufacture and sale of raw materials for production of phosphors and phosphors used for LEDs
・Manufacture and sale of a range of chemicals and catalysts for the manufacture of pharmaceutical intermediates, etc.

General Products

・Manufacture and sale of toothpaste additives to prevent tooth decay and gingivitis
・Manufacture and sale of other fluorine compounds

I n d u s t r i a l

・Manufacture and sale of hydrofluoric anhydride, raw materials for CFCs and fluoropolymers

Hydrofluoric Acid・Manufacture and sale of chemicals used for acid cleaning of stainless steel and slimming of LCD panels

Purchased Goods

・Sales of purchased goods

23Introduction of Our Business- Semiconductors -Ultra-High Purification Technology••

Impurity levels of less than 1 ppt (1×10-12) are controlled by ultra-purification and ultra-cleaning
technologies
Mass production of ultra-pure chemicals for ultra-high integrated circuit

Ultra High Purity•

Hydrofluoric acid (HF) is the only chemical capable of etching out silicon oxide film•

Chemical solutions are indispensable to the semiconductor manufacturing process andrequire ultra-high purity

Hydrofluoric Acid

Ultra High Purity Buffered
Hydrofluoric Acid•

In particular, dilute hydrofluoric acid is used in a number of semiconductor processes•

Mixed aqueous solution of hydrofluoric acid (HF) and ammonium fluoride (NH4F)•

Mainly used in processes such as etching and cleaning of insulation films•

Chemicals with etch rates ranging from tens of Å/min to thousands of Å/min can be produced

Example of Application (Photolithography Process)(1) Photoresist coating
on silicon wafer(heat drying)(2) ExposureLight(3) Development(4) Etching(Dissolve silicon oxide filmwith hydrofluoric acidchemicals)(5) Photoresist
stripping

Photoresist
Silicon oxide film

Silicon substrate24

Introduction of Our Business- Semiconductors -Production capacity of High Purity Hydrofluoric Acid for Semiconductors
Kitakyushu Factory

Kitakyushu City, Fukuoka

30,000 t /year

Sanpo Factory

Sakai City, Osaka

65,000 t /year

STELLA CHEMIFASINGAPORE

Singapore

10,000 t /year

105,000 t /year* As a comprehensive manufacturer of fluorine compounds, we use our own
technology to do everything from manufacturing to filling.
25

Introduction of Our Business- Energy -Enriched Boron (Boron-10) and its features
 Natural boron is made up of two isotopes, boron-10(20%) andboron-11(80%)
 Developed technology to enrich boron-10 to over 99%
 Established mass production technology of enriched boron for the first timein Japan(2000)
 Boron-10 has an extremely high capacity to absorb neutrons, and further
enriching it can increase its ability to absorb neutrons.

Production capacity
Enrichment plant(Izumiotsu City, Osaka)

Production Capacity

Products
Enriched Boron

10B

6t

(* When converted to the following items)
Enriched Boric Acid

Enriched Potassium
tetrafluoroborate

H310BO3

36t

K10BF475t
26

Introduction of Our Business- Energy -Applications of Enriched Boron Compounds
 Excess reaction control of pressurized-water reactors by dissolving into primary coolingwater Neutron-absorbing material of spent nuclear fuel transportation and storage containers Material of control rods of nuclear reactors and rack material of spent nuclear fuel pools
 Water source for facilities responding to specific major accidents, etc.
 Raw material for cancer treatment drugs (BNCT: Boron Neutron Capture Therapy)

Advantages of Using Enriched Boric Acid
(1) Improvement of corrosive environment in nuclear reactors
Required 10B concentration can be secured at 1/5 of natural products.
Operation at low concentration is possible, and corrosion in facilities can be reduced.
(2) Reduction of storage costs
Heating and heat retention are required to maintain the dissolution of boric acid water.
Enriched boric acid realizes the reduction in concentration, and reduces the problem of heatretention.
In addition, the storage tank can be made smaller.

(3) More reliable control
In the event of an emergency stop, more reliable control is possible, and since boric acid isharmful to the human body and the environment, the reduction of overall amount of boric
acid is an advantage.
27

Introduction of Our Business- Energy -Additives Additive for electrolytic solution to improve the performance oflithium-ion secondary batteries
 High-temperature endurance・High conductivity・
Increased capacity・Low resistance・Flame retardanceIzumi Factory's manufacturingbuilding (Izumiotsu City, Osaka)

Lithium Hexafluorophosphate High-purity electrolytes for lithium-ion secondary batteries* Manufacture and sale at our affiliate company in China (Quzhou BDX New Chemical Materials Co., Ltd. )Example of materials used in lithium-ion secondary batteries

Additives

Positive andnegative electrodeSeparator

Current
collector

Electrolyte

BinderProtective IC

PTC element

Quzhou BDX New Chemical
Materials Co., Ltd. (China)

28

Introduction of Our Business- General Products -Tin Fluoride 2017
The GMP inspection by USFDA for tin fluoride, an active ingredient of OTC anticaries drugs,
was completed, and obtained official approval.
 2018Started marketing of “tin fluoride” as a GMP-compliant product.

Izumi Factory's manufacturing building(Izumiotsu City, Osaka)* We expect to see big demand mainly inEurope and the US, where there is strong
interest in dental health and beauty.

 We are also developing new applications other than toothpaste(e.g., hoof sterilization)
29

Introduction of Our Business- New Initiatives -Chemicals for semiconductors
 In association with the progress of the high integration of semiconductors based on
the planar refinement and increased three-dimensionality of semiconductor devices,the hydrofluoric acid and buffered hydrofluoric acid used in wet etching andcleaning require both greater functionality and quality.
 In particular, in anticipation of the high integration of logic and memory
semiconductors,
we are promoting the development of functional chemical solutions adapted toadvanced technologies, and initiatives to guarantee smaller particle sizes.

MemoryLogic

Development andproposal of chemicalsolutions that support
advanced technologies

Micro

Analog30

Introduction of Our Business- New Initiatives(Battery Materials) -Storage device materials-related business Development of additives for electrolytic solutions that increase the capacity of lithium-ion secondary batteries (LiB)
Key points of development✔ Application on Ni-based cathode materials expected to have higher capacity✔ Suppression of cycle characteristics under high voltage and degradation under high temperature, which are issues for Ni-based
cathode materials

 Promotion of the development of materials for next-generation secondary batteries being touted as post-LiB

Features of additives for LiB electrolytic solutions(developed products)

Production volume of electrolytic solutions for EVs [t]AmountAbout 3.8 trillion
yenImprovement of cycle characteristics

Reduction of resistanceHigh temperature resistance

Discharge capacity after 200 cycles
525.2 billion
yen

Conventional product

2020

2021

2022
(expected)

2023(forecast)Developed product2025 (forecast)* Based on “Electric Vehicles and Vehicle Batteries” in Fuji Keizai “2022 Future Outlook for Energy and Large Rechargeable Batteries and Materials”

31Introduction of Our Business- New Initiatives(Cell Culture Container) General productProduct developed by the company

Cell culture containers
 We developed a cell culture container applying thecompany’s unique surface treatment technology
cultivated in High-Purity Chemical Business.
 We have started providing samples to research
institutions and pharmaceutical companies.

cell

Cells adhere and proliferate
Formation of chemically uniform
and stable culture substrate(100 million yen)

Future Market Size Forecast for Industries
Surrounding Regenerative Medicine (Japan)
Culture containers of plates and flasks

Culture containers(others)
Culture medium
PipetteTest kit
OthersThe developed cell culture container(year)

Adapted from the Ministry of Economy, Trade and Industry, “Future Market Size
Forecast for Industries Surrounding Regenerative Medicine”

Market: 3.5 billion yen (2020) -> 53 billion yen (2050)

32

Introduction of Our Business- New Initiatives(Electronic Materials) -Phosphor-related Materials
 Tablets and LCD TVs will feature mini-LED backlight LCDs, which will lead to their wider use.
 The expansion of needs is expected, using the merits of phosphor, which is more stable than quantum
dots, such as the adoption of phosphor films for automotive displays.
 The trend for adoption of fluoride phosphor for high-end model lighting is accelerating.
Fluoride phosphor andmaterials used for the
manufacturing of fluoride
phosphor< LED lighting >＜Digital signage＞

＜Display＞

Customer adoptions of some products have advanced and we are promoting R&D aimed at the further expansion of adoptions.
We will promote the development of highly efficient, long-life fluoride phosphor-related materials given functionality matched to applications.

33

Introduction of Our Business- New Initiatives -PCB Materials (Low Dielectric Constant Materials)
As materials for high-frequency communication devices, used as additives (fillers) to resin and other materials for substrates.

（million yen）

Development of high-performance
fillers for enhanced 5G or Beyond 5G

30,00029,00028,000
Average annual growth rate(2022 to 2028) 2.6%

27,000Developed high-performance filler(SHF series)

26,00025,000

2022

2023

2024

2025

2026

2027

Good
dispersibility toresin2028 （Year）

2022年 2023年 2024年 2025年 2026年 2027年 2028年

Early 5G

Enhanced 5G

Beyond5G

Figure. Trends, forecasts and prediction of market size of flexible printed circuitboards(Source: Fuji Chimera Research Institute)general-purpose silica

SHF-05

Evaluation of dispersibility to resin of general-purpose
silica and the product developed by the company34

Introduction of Our Business- New Initiatives -High-performance fluoride materials (nanomaterials)
 Material development is thriving due to the higher functionality of displays, also including automotive display
applications.
 We developed “CNP-P,” a fluoride nanoparticle dispersion agent with a refractive index of less than 1.35 forantireflection film applications.
-> We are currently promoting research aimed at the resolution of issues we received feedback on in user evaluations.

2026 (forecast)

2025 (forecast)

2024 (forecast)

2023 (forecast)

2022 (forecast)

2021 (actual)2020 (actual)

Developed product “CNP-P”

Amount (USD million)

Overview of the display panel
marketSource: 2022 Future Outlook for the Market for Touch Panels, Flexible andAutomotive Displays, and Components

35Introduction of Our Business- Other product examples Optical Material-Related(Product information)◆Calcium Fluoride◆Aluminum Fluoride◆Magnesium Fluoride ◆Lead Fluoride◆Lithium Fluoride◆Strontium Fluoride◆Barium Fluoride

Reactive Catalyst-Related◆High Purity Boron Trifluoride◆Boron Trifluoride Diethyl Ether◆Boron Trifluoride n-Butyl Ether◆Boron Trifluoride Tetrahydrofuran◆Boron Trifluoride Monoethyl Amine ◆Boron Trifluoride Piperidine◆Boron Trifluoride Dimethyl Ether◆Boron Trifluoride Phenol◆Triethylamine 3HF

Surface Treatment, Alternatives for CFCs-Related

Nuclear Energy-Related◆Anhydrous Hydrofluoric Acid

◆10B Enriched Potassium Fluoroborate◆ 10B Enriched Boric Acid

◆55% Hydrofluoric Acid

Other Products◆Fluorosilicic Acid
◆Potassium Fluorosilicate◆Fluoroboric Acid
◆Tin Fluoroborate◆Copper Fluoroborate◆Lead Fluoroborate◆Zinc Fluoroborate◆Sodium Fluoroborate◆Potassium Fluoroborate◆Ammonium Hydrogenfluoride◆Sodium Fluoride◆Potassium Fluoride◆Ammonium Fluoride◆Potassium Hexafluorozirconate◆Potassium Hexafluorotitanate ◆Refined Calcium Fluoride ◆Potassium Hexafluorophosphate

Newly-Developed Products◆Detergents Contributing to Increase in Chemical Lifetime ◆Detergents Suppressing Etching of Silicon Nitride Film
◆Detergents Inhibiting Silicon and Polysilicon Damage◆Battery-Related（ Ionic Liquids, Electrolytes for Sodium Ion Batteries - Sodium Hexafluorophosphate,
Additives for Lithium-Ion Batteries,）◆Various Fluoride Nanoparticles Dispersant (Magnesium, Lithium, Ytterbium, Calcium, CNP-P)◆Phosphor materials◆Nuclear Energy Industry◆5G/6G (Information Communication Systems), Printed Circuit Board◆Special-Purpose Inorganic Fluorine Compounds◆Fluorinated Carbon Nano-Tubes

36

Introduction of Our Business* For details, please visit the website.

37

Introduction of Our Business- Transportation Business (HP URL)

Transportation BusinessBLUE EXPRESS, Inc.

T r a n s p o r t

Land transport ・Marine transport・Rail transport

Customs Clearance

Customs clearance ・Loading and Unloading

Warehousing

Providing multi-functional warehouses fully equipped with the latest systems

Supplying large and pressurized containers that meet ISO specifications,
medium-size IBC pressurized containers, as well as IBC containers with UN
Container services
specifications,and also offering services for cleaning, repairing and leasing thecontainers
Customs
clearance sites

Shipping terminals

Overseas Bases

Ohama OfficeSendai Office

Singapore

Osaka Office

Kanto Office

China

Yokohama Office

Yokohama OfficeShimizu Office
Nagoya Office
Ohama Office
Kobe Office
Kitakyushu Office38

Introduction of Our Business- Transportation Business -Equipment(as of Feb 28, 2023)

List of vehicle types* Tractors(142)* Container Semitrailers(364)20FT chassis
35FT chassis
40FT chassis
chassis for container
Wings Semitrailers* Tank Trailer(10)Tank trailers
High Pressure Gas Trailers* 4～15-Ton Wings Trucks(6)* Temperature Controlled Wings Trucks(4)* 1～15-Ton Flatbed Bodies(12)* Container Carrier(18)* Tank Trucks(19)Dedicated Trucks
Tank Trucks for High Pressure Gas* Tank containers(516)
ISO Tank Containers (Teflon Lined)
ISO Tank Containers (Reefer)
JR Tank Containers (Teflon Lined)* Portable Tank (Teflon Lined)(24)39

Introduction of Our Business- Transportation Business -Initiatives aimed at the improvement of corporate value
1.Promoting initiatives focusing on profitability➣ Revision of low-price transactions: Revising the rates to ones commensurate with costs and revising the transactions themselves➣ Acquisition of new projects: Actively responding to inquiries, identifying potential demand of existing shippers,
collaborating with other departments, etc.

2. Construction of stable business foundations➣ We recruit with an eye on the future while looking at our age composition, and cultivate managers and senior employees
systematically.
➣ We use external training to promote the acquisition of skills and qualifications.
➣ We secure vehicles and containers by type matched to needs.

3. Continued strengthening of the compliance system➣ We prevent dangerous driving and overwork by using drive recorders and digital tachographs, and reviewing operational
management work.
➣ Enhancement of employee education, promotion of the understanding of related laws and regulations, etc.

4. Handling of the 2024-problem in logistics➣ Preparation of a system for the revision of the notice of the Minister of Health, Labour and Welfare (Standards for
Improvement of the Work Hours, etc. of Vehicle Drivers) in April 2024

40

Introduction of Our Business- Transportation Business -TOPICS(1) Rebuilding of the Head Office buildingat Ohama Office

We are rebuilding the Head Office building at the eastern sideof the Head Office site in Ohama for its efficient operation.
(Planned for completion in August 2023)(2) Introduction of top lifts in Kitakyushu OfficeTop-lifters have been introduced so that ISO tank containers can beloaded and unloaded, and stored in the parking lot at the office(April 2022).

41