Translation
Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy
between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Based on Japanese GAAP)
August 7, 2024
Company name:

TODA KOGYO CORP.

Stock exchange listing: Tokyo
Stock code:
4100
Representative:
Inquiries:

URL https://www.todakogyo.co.jp

Representative Director
Department Manager of Corporate Planning

Tsuneaki Kubo
Atsushi Tomokawa

Department
Scheduled date to commence dividend payments:–

Preparation of supplementary material on financial results:
Holding of financial results meeting:No
No

TEL +81-82-577-0055(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2024
Three months ended June 30, 2023
Note: Comprehensive income

Operating profit

Millions of yen
7,307
6,183

% Millions of yen
18.2
(31)
(36.3)(77)%––

Three months ended June 30, 2024:
Three months ended June 30, 2023:
Earnings per share

Three months ended June 30, 2024
Three months ended June 30, 2023

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
176 (75.2)
28 (95.7)
711 (39.2)
666 (21.8)¥1,201 million¥1,226 million[(2.0)%][(28.0)%]

Diluted earnings per share

Yen
5.01
115.45Yen
4.97
114.66(2) Consolidated financial position
Total assets
As of June 30, 2024
As of March 31, 2024
Reference:

EquityAs of June 30, 2024:
As of March 31, 2024:

Net assets

Millions of yen
54,49753,714Equity ratio

Millions of yen
15,732
14,525

%
27.6
25.8

¥15,019 million¥13,860 million

2. Cash dividends
Annual dividends per share

Year ended March 31, 2024
Year ending March 31, 2025

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen

Yen

Yen

Yen

Yen

–
–

0.00

–

0.00

0.00

0.00

–

0.00

0.00

Year ending March 31, 2025 (Forecast)
Note: Revisions to the forecasts of cash dividends most recently announced: No

Total

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

Net sales
Millions of yen
Six months ending
September 30, 2024
Full year

15,400

21.5

100

–

350

(64.0)

100(87.5)

17.31

32,000

22.0

700

497.2

1,100

(5.8)

600

–

103.88* Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024:

No

Note: Revisions to the consolidated financial results forecasts most recently announced: No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

6,099,192 shares

As of March 31, 2024

6,099,192 shares

322,123 shares

As of March 31, 2024

321,945 shares

Number of treasury shares at the end of the period
As of June 30, 2024

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024

5,777,135 shares

Three months ended June 30, 2023

5,772,671 shares* Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an
audit corporation: No* Proper use of earnings forecasts, and other special matters
The forecast of financial results is based on information available at the current time and include many uncertain factors. Actual financial
results and other items may differ from the above forecast for any of various reasons, including changes in business conditions. Please refer to“(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements” of “1. Qualitative Information on Quarterly
Financial Results” on page 2 of the attached materials for the items related to the above forecasts.

Attached Material
Index
1. Qualitative Information on Quarterly Financial Results ................................................................................ 1(1) Explanation of Business Results ..................................................................................................................... 1(2) Explanation of Financial Position .................................................................................................................. 1(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements ............................ 2
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto.............................................. 3(1) Consolidated Balance Sheets........................................................................................................................... 3(2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive
Income (Cumulative) ....................................................................................................................................... 5
Consolidated Statements of Income (Cumulative)........................................................................................ 5
Consolidated Statements of Comprehensive Income (Cumulative) ............................................................ 6(3) Notes to Quarterly Consolidated Financial Statements ............................................................................... 7(Notes on Changes in Accounting Policies) .................................................................................................... 7(Notes on Assumption of Going Concern) ..................................................................................................... 7(Notes When There Are Significant Changes in Amounts of Shareholders’ Equity) ................................. 7(Notes on Quarterly Consolidated Statements of Cash Flows) .................................................................... 7(Notes on Segment Information, Etc.) ............................................................................................................ 8

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Business Results
In the business environment surrounding the TODA KOGYO Group (the “Group”) during the three months
ended June 30, 2024, there was a moderate recovery trend in the economy with signs of a pickup in consumer
spending and corporate earnings. On the other hand, the outlook remains uncertain due to the deteriorating
situation in the Middle East, the protracted situation in Ukraine, and the risk of a downturn in overseas
economies due to continued high interest rate levels in the U.S. and Europe and the slowdown of the Chinese
economy.
Under these circumstances, to achieve the vision of the Group for fiscal 2030 (fiscal year ending March 31,2031), set out in its materiality, the Group has formulated a medium-term management plan, Vision2026,
covering the period from fiscal 2024 (fiscal year ending March 31, 2025) to fiscal 2026 (fiscal year ending
March 31, 2027). Under “Vision2026,” we will strengthen our business portfolio management and strive forbusiness growth by accelerating selection and concentration.
During the three months ended June 30, 2024, market demand, particularly for magnet materials and dielectricmaterials, moved toward recovery, albeit slowly. In addition, net sales rose year on year due to the conversion
of TODA ISU CORPORATION into a consolidated subsidiary.
Turning to profit, operating profit rose year on year due to the effects of continuous cost reduction activities
and expense reduction, in addition to an increase in net sales. However, for non-operating income andexpenses, ordinary profit and profit attributable to owners of parent decreased year on year due to decline inrevenues from associates accounted for using the equity method.
As a result of the above, net sales came to ¥7,307 million (up 18.2% year on year), operating loss came to ¥31
million (compared with operating loss of ¥77 million in the same period of the previous fiscal year), ordinary
profit came to ¥176 million (down 75.2% year on year), and profit attributable to owners of parent came to ¥28
million (down 95.7% year on year).
The status of each segment is as follows.
Functional pigments
Although overall market demand is on the way to recovery, net sales were ¥2,089 million, a decline of 5.2%
year on year, and segment profit was ¥249 million, a decline of 18.9% year on year due to sluggish demand forsome products such as materials for copiers and printers and magnetic recording materials.
Electronic materials
The Company’s consolidated subsidiary that manufactures lithium ion battery (LIB) materials, experienced
sluggish demand as existing products reached the end of their product life cycle. On the other hand, sales ofmagnet materials and dielectric materials were strong and increased from the same period of the previous year.
In addition, mainly due to the conversion of TODA ISU CORPORATION into a consolidated subsidiary, net
sales were ¥5,343 million, an increase of 30.5% year on year, and segment profit was ¥469 million, an increaseof 14.3% year on year.
(2) Explanation of Financial Position
AssetsAssets as of June 30, 2024, came to ¥54,497 million, an increase of ¥783 million over the end of the previous
fiscal year. This was mainly due to increases of ¥1,122 million in property, plant and equipment, and ¥708
million in investment securities, despite a decrease of ¥1,113 million in cash and deposits.
Liabilities
Liabilities as of June 30, 2024, came to ¥38,765 million, a decrease of ¥424 million over the end of theprevious fiscal year. This was mainly due to decreases of ¥293 million in notes and accounts payable - trade,and ¥192 million in provision for bonuses.

1

Net assets
Net assets as of June 30, 2024, came to ¥15,732 million, an increase of ¥1,207 million over the end of theprevious fiscal year. This was mainly due to increases of ¥525 million in valuation difference on available-forsale securities and ¥592 million in foreign currency translation adjustment.
(3) Explanation of Forecast of Financial Results and Other Forward-looking Statements
There is no change to the consolidated earnings forecast for six months ending September 30, 2024 and thefull-year announced in the “Summary of Consolidated Financial Results for the Year Ended March 31, 2024”
on May 15, 2024.

22. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheets
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital of subsidiaries and associates
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3(Millions of yen)
As of June 30, 2024

8,164
8,712
4,662
2,476
4,718
1,587
(11)
30,309

7,051
8,569
4,666
2,305
5,095
1,699
(23)
29,365

1,583
1,686
4,887
210
492
8,860

1,745
1,767
5,601
295
571
9,982

2,497
13
2,510

2,521
22
2,544

3,290
8,016
729
(3)
12,033
23,40453,714

3,998
7,934
675
(3)
12,60525,13254,497

As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
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-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4(Millions of yen)
As of June 30, 2024

3,507
9,113
4,712
148
314
3,832
21,629

3,214
9,423
4,702
101
122
3,996
21,56013,490
112
2,342
1,613
17,55939,18913,035
–
2,276
1,892
17,20438,765

7,477
4,306
(425)
(1,447)
9,910

7,477
4,306
(396)
(1,448)
9,939

1,389
2,016
543
3,950
97
567
14,52553,714

1,914
2,608
556
5,080
103
609
15,73254,497

(2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive Income(Cumulative)
Consolidated Statements of Income (Cumulative)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Employees’ salaries
Provision for bonuses
Retirement benefit expenses
Research and development expenses
Other
Total selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on sale of investment securities
Compensation income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sale of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5

Three months ended
June 30, 2023
6,183
4,901
1,281

(Millions of yen)Three months ended
June 30, 2024
7,307
5,808
1,499

298
51
21
373
614
1,359
(77)

365
50
31
369
712
1,530
(31)

11
35
401
364
42
855

20
38
83
158
29
331

62
3
66
711

109
14
123
176

7
76
8
92

1
–
0
2

7
0
7
795
68
22
91
704
38
666

1
–
1
177
103
33
136
41
12
28

Consolidated Statements of Comprehensive Income (Cumulative)
Three months ended
June 30, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6704(Millions of yen)Three months ended
June 30, 2024
41

197
224
41

524
478
13

58

143

522
1,226

1,159
1,201

1,172
54

1,158
42

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Changes in Accounting Policies)
Application of the “Accounting Standard for Current Income Taxes” and other relevant ASBJ regulations
The Company has applied the “Accounting Standard for Current Income Taxes” (Accounting Standards
Board of Japan (ASBJ) Statement No. 27, October 28, 2022; the “Revised Accounting Standard of 2022”)
and other relevant ASBJ regulations from the beginning of the first quarter of the fiscal year ending March
31, 2025.
Revisions to categories for recording current income taxes (taxation on other comprehensive income)conform to the transitional treatment in the proviso of paragraph 20-3 of the Revised Accounting Standard of2022 and the transitional treatment in the proviso of paragraph 65-2(2) of “Guidance on Accounting Standard
for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022; the “Revised Guidance of 2022”).
This change in accounting policy has no impact on the quarterly consolidated financial statements.
In addition, for revisions related to the review of the treatment in consolidated financial statements when again or loss on sale arising from the sale of shares of subsidiaries, etc. among consolidated companies isdeferred for tax purposes, the Company has applied the Revised Guidance of 2022 from the beginning of thefirst quarter of the fiscal year ending March 31, 2025. The change in accounting policy has been applied
retrospectively. Therefore, the new accounting policy was reflected in the consolidated financial statements
for the same period of the previous fiscal year and for the previous fiscal year. The change in accounting
policy has no impact on the quarterly consolidated financial statements of the same period of the previous
fiscal year or the consolidated financial statements of the previous fiscal year.
(Notes on Assumption of Going Concern)
Not applicable(Notes When There Are Significant Changes in Amounts of Shareholders’ Equity)
Not applicable(Notes on Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the three months ended June 30, 2024 is not prepared.
Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of
goodwill for the three months ended June 30, 2024 are as follows.
Three months ended
June 30, 2023
Depreciation

188

Amortization of goodwill

70

7(Millions of yen)Three months ended
June 30, 2024
111
86

(Notes on Segment Information, Etc.)[Segment information]
I Three months ended June 30, 2023
1. Information regarding amounts of net sales and profit or losses for each reportable segment
Reportable segments

Net sales
Net sales to external customers
Inter-segment net sales ortransfers
Total
Segment profit (loss)
Notes: 1

2

Adjustments(Note 1)

Total

(Millions of yen)Amountposted onquarterly
consolidated
statements ofincome(Note 2)Functional
pigments

Electronicmaterials

2,200

3,983

6,183

–

6,183

3

112

115

(115)

–

2,203
307

4,096
410

6,299
718

(115)
(795)

6,183
(77)

The adjustment of negative ¥795 million to segment profit (loss) includes corporate expenses of negative ¥795
million not allocated to either reportable segment. Corporate expenses mainly consist of general andadministrative expenses that do not belong to the reportable segments.
For segment profit (loss), the Group has adjusted operating loss on its quarterly consolidated statements ofincome.

2. Information regarding impairment losses on non-current assets or goodwill, etc. by reportable segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in the amount of goodwill)
Not applicable(Significant gain on bargain purchase)
Not applicable8

II Three months ended June 30, 2024
1. Information regarding amounts of net sales and profit or losses for each reportable segment
Reportable segments

Net sales
Net sales to external customers
Inter-segment net sales ortransfers
Total
Segment profit (loss)
Notes: 1

2

Adjustments(Note 1)

Total

(Millions of yen)Amountposted onquarterly
consolidated
statements ofincome(Note 2)Functional
pigments

Electronicmaterials

2,089

5,218

7,307

–

7,307

0

125

125

(125)

–

2,089
249

5,343
469

7,433
718

(125)
(749)

7,307
(31)

The adjustment of negative ¥749 million to segment profit (loss) includes corporate expenses of negative ¥749
million not allocated to either reportable segment. Corporate expenses mainly consist of general andadministrative expenses that do not belong to the reportable segments.
For segment profit (loss), the Group has adjusted operating loss on its quarterly consolidated statements ofincome.

2. Information regarding impairment losses on non-current assets or goodwill, etc. by reportable segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in the amount of goodwill)
Not applicable(Significant gain on bargain purchase)
Not applicable9