Financial Results for 2Q of FYE 3/2019
Securities Code: 4109

1. Financial Results for 2Q of FYE3/2019
 Basic Financial Data (Consolidated)
 Consolidated Statement of Income
 Non-operating Profit and Loss/Extraordinary Profit and Loss
 Sales Revenue and Operating Profit by Business Quarterly Operating Profit
 Consolidated Balance Sheet Consolidated Cash Flows, Capital Expenditures, Depreciation& Amortization, Research & Development Expenses

P.2

<Basic Financial Data (Consolidated)>(In millions of yen)

FYE 3/2019 6M(Apr－Sep)

FYE 3/2018 6M(Apr－Sep)

ActualActualYoY
Increase/Decrease

Percentage Increase/
Decrease

Sales Revenue

19,45816,720

2,738

16.4

Operating Profit

2,159

1,825

334

18.3

Ordinary Profit

2,367

1,698

669

39.4

Quarterly Profit Attributableto Owners of Parent

1,494

1,027

467

45.5

Sep.30, 2018
(In millions of yen)

FYE 3/2018
End-of-Year

Increase/
Decrease

Total Assets

53,486

51,3732,112

Equity Capital

32,262

31,233

1,029

Interest-bearing Liabilities

12,58910,857

1,731

P.3

<Consolidated Statement of Income>(In millions of yen)

FYE 3/2019 6M(Apr－Sep)

FYE 3/2018 6M(Apr－Sep)

YoY
Increase/ Decrease

Percentage Increase/
Decrease

Sales Revenue

19,45816,720

2,738

16.4

Gross Profit

4,314

3,804

509

13.4

Gross Profit Margin (%)

22.2

22.8

-

-

SG&A

2,154

1,979

175

8.9

Operating Profit

2,159

1,825

334

18.3

Operating Profit Margin
(%)

11.1

10.9

-

-

Ordinary Profit

2,367

1,698

669

39.4

Profit before Income
Taxes

2,350

1,528

821

53.7

Quarterly Profit Attributable to
Owners of Parent

1,494

1,027

467

45.5

P.4

<Non-operating Profit and Loss/Extraordinary Profit and Loss> Extraordinary Profit and Loss

 Non-operating Profit and Loss
(In millions of yen)

FYE 3/2019 6M(Apr－Sep)

FYE 3/2018 6M(Apr－Sep)(In millions of yen)

435

226

Interest income

7

Dividend income

FYE 3/2019 6M(Apr－Sep)

FYE 3/2018 6M(Apr－Sep)

Extraordinary Profit

11

14

5

Gain on sales ofnon- current assets

10

14

1

1

Extraordinary Losses

28

183

348

172

Loss on abandonment of
non-current assets

28

183

Foreign Exchange Gains

18

-

Other

59

47

227

353

20

24

Share of loss of entities
accounted for using equity
method191

69

Foreign exchange losses

-

173

15

86

Non-operating Profit

Gain on valuation ofderivatives

Non-operating Expenses
Interest expenses

Other

P.5

<Sales Revenue and Operating Profit by Business>
FYE 3/2019 6M(Apr－Sep)(In millions ofyen)(In millionsof(In millions of yen)

yen)

Sales
Revenue

FYE 3/2018 6M(Apr－Sep)

Operating
ProfitOperating
ProfitSurface Treatment

1,115

923

20.8

Alternatives for CFCs

2,161

1,472

46.7

Batteries

2,081

2,875

-27.6

Semiconductors/
LCDs

9,737

7,264

34.0

Semiconductor
Devices

349

360

-2.8

Catalysts

472

452

4.3

Gypsum

82

48

69.6

General products

723

676

7.0

Other

475

460

3.3

[High-Purity Chemical Business: Breakdown]

17,199

Medical Business

Other

P.6

14,534

1,865

Sales Revenue

High-purity Chemical BusinessTransportation Business

2,220

Sales
Revenue

Percentage Increase/Decrease

18.3

Operating
Profit

19.1

2,159

413

2,087

376

3.5

9.7

-

-505

-

-440

-

-

99

21

98

15

0.8

35.4

<Quarterly Operating Profit>(In millions of yen)

1,600

1,473

1,400
1,209
1,200
1,000

1,025

960

912

888

949

936

800
600
461
400
200

83

0

FYE 3/2017
FYE 3/2018(In millions of yen)
1Q
2Q
3Q
4Q
1Q
2Q
3Q
Sales Revenue
7,187 6,757 7,941 7,963 8,159 8,561 8,314
Operating Profit
960 1,025 1,473
912
888
936
461
Operating Profit Margin 13.4% 15.2% 18.6% 11.5% 10.9% 10.9%
5.5%
P.7

FYE 3/2019
4Q
1Q
2Q
3Q
8,587 10,134 9,323
83
949 1,209
1.0% 9.4% 13.0%

4Q

<Consolidated Balance Sheet>(In millions of yen)

Sep.30, 2018

FYE 3/2018
End-of-Year

Increase/
Decrease

30,301

26,101

4,200

Cash and Deposits

13,440

9,192

4,248

Notes and Accounts Receivable- trade

9,818

9,753

65

23,18525,272-2,087

Property, Plant and Equipment

21,18721,654-467

Intangible Assets

335

144

191

Investments and Other Assets

1,662

3,473

-1,811

10,106

10,617-510

Short-term Loans Payable

1,960

1,860

100

Long-term Loans Payable
within 1 year

2,788

2,794

-6

9,863

8,271

1,591

7,841

6,203

1,638

33,51632,485

1,031

Shareholders' Equity

31,98930,768

1,221

Liabilities and Net Assets

53,486

51,373

2,112

Current Assets

Non-current Assets

Current liabilities

Non-current liabilities
Long-term Loans Payable

Net Assets

P.8

<Consolidated Cash Flows, Capital Expenditures, Depreciation & Amortization,
Research & Development Expenses>(1) Consolidated Statement of Cash Flows(In millions of yen)

FYE 3/2019 6M(Apr－Sep)

FYE 3/2018 6M(Apr－Sep)

Cash Flows from Operating Activities (*1)

3,209

-611

Cash Flows from Investing Activities (*2)

Net Increase (Decrease) in Cash and Cash Equivalents-1,854
1,354
1,459
2,671

-1,527-2,138-1,673-3,916

Cash and Cash Equivalents, Beginning of year

8,930

14,169Cash and Cash Equivalents, End-of-Quarter

11,601

10,252

Free Cash Flows (*1 + *2)
Cash Flows from Financing Activities(2) Capital Expenditures, Depreciation & Amortization, Research & Development Expenses(In millions of yen)

FYE 3/2019 6M(Apr－Sep)

FYE 3/2018 6M(Apr－Sep)

Capital Expenditures

1,404

1,186

Depreciation & Amortization

1,579
742

1,642
695

Research & Development Expenses
P.9

2. Financial Forecast for FYE 3/2019
 Financial Forecast
 Forecast by Segment

P.10

<Financial Forecast>(In millions of yen)

FYE 3/2019
Full-Year Forecast

FYE 3/2018
Full-Year Results

FYE 3/2017
Full-Year Results

Sales Revenue

37,70033,622

29,850Operating Profit

2,600

2,369

4,372

Ordinary Profit

2,800

1,756

4,154

Profit Attributable to
Owners of Parent

1,700

1,274

2,824

Current Net Profit Per
Share (yen)131.65100.49234.56

Capital Expenditures

3,983

2,991

2,328

Depreciation &Amortization

3,414

3,344

3,117

Research & Development
Expenses

1,629

1,484

1,274

P.11

<Forecast by Segment>
FYE 3/2019
Full-Year Forecast[High-Purity Chemical Business: Breakdown](In millionsofof yen)(In millions
yen)
High-purity Chemical Business

Sales
Revenue

FYE 3/2018
Full-Year Results

Operating
Profit33,110

2,930

Sales
Revenue

FYE 3/2017
Full-Year Results

Operating
Profit29,145

2,500

Sales Revenue

25,501

Surface Treatment

2,110

1,956

2,033

Alternatives for CFCs

3,080

2,546

2,463

Batteries

4,700

5,069

5,072

Semiconductors/
LCDs

19,24015,662

12,310

Semiconductor
Devices

600

693

527

Catalysts

920

919

854

Gypsum

80

72

94

1,650

1,267

1,342

730

958

803

General products
Other

Transportation Business
Medical Business
Other

P.12

Operating
Profit

4,422

4,380

680

4,269

779

4,143

698

-

-1,050

-

-960

-

-792

210

30

207

34

204

30

3. STELLA CHEMIFACORPORATION
 Corporate Profile/Sales Office Locations/Plant Locations(as of September 30, 2018)
 List of Affiliated Companies
 High-purity Chemical Business

P.13

<Corporate Profile/Sales Office Locations/Plant Locations (as of September 30, 2018)>
 Corporate profile
Corporate name:Head Office:FoundedEstablished
Capital fund
Representatives

URL Sales officeOsaka Sales Department
Tokyo Sales Department
 Factory addresses
Sanpo Factory
Izumi Factory
Kitakyushu Factory
P.14

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

February 1916
February 1944
4,829,782,512 yen
Chairperson, Representative Director:
Junko Fukada
President, Representative Director:
Aki Hashimoto
https://www.stella-chemifa.co.jp/

Meiji Yasuda Seimei Osaka Midosuji Bldg. 10F, 4-1-1 Fushimi-machi, Chuo-ku,
Osaka City, Osaka
Tokyo Tatemono Yaesu Building 2F, 1-4-16 Yaesu, Chuo-ku, Tokyo

7-227 Kaisan-cho, Sakai-ku, Sakai City, Osaka
1-41 Rinkai-cho, Izumiotsu City, Osaka
1-1 Kurosakishiroishi, Yahatanishi-ku, Kitakyushu City, Fukuoka

<List of Affiliated Companies>
Logo

AbroadAt home

Base

P.15

Corporate NameBusiness Segment

Head Office:STELLA CHEMIFA CORPORATION

High-purity Chemical
Business

Chuo-ku, Osaka City,
Osaka

Blue Express, Inc.

Transportation BusinessSakai-ku, Sakai City,
Osaka

Blue Auto Trust Co., Ltd.

Other BusinessSakai-ku, Sakai City,
Osaka

Stella Pharma Corporation

Medical Business

Chuo-ku, Osaka City,
Osaka

STELLA CHEMIFA SINGAPORE
PTE LTD

High-purity Chemical
Business

Singapore

STELLA EXPRESS PTE LTD

Transportation BusinessSingapore

Blue Express (Shanghai) International Trade
Inc.

High-purity Chemical
Business

China

Blue Express (Shanghai) International Freight
Forwarding Co., Ltd.

Transportation Business

China

Zhejiang Blue Star Chemical Co., Ltd.

High-purity Chemical
Business

China

FECT Co., Ltd.

High-purity Chemical
Business

South Korea

Quzhou BDX New Chemical Materials Co., Ltd.

High-purity Chemical
Business

China<High-Purity Chemical Business>
Our products, fluorine compounds, have continued to be used in the manufacturing process ofvarious products.
Segment nameMain productApplications

Surface treatment

Hydrofluoric acid for industrial
use

Used for acid cleaning of stainless steel and for thinning
glass substrates for LCDs

Alternatives for
CFCs

Anhydrous hydrofluoric acid

Material for chlorofluorocarbon and fluorine resin

Batteries

Lithium hexafluorophosphate

Electrolyte for electrolytic solution of lithium-ion
secondary batteries

Semiconductors
and LCDs

High-purity hydrofluoric acid
High-purity bufferedhydrofluoric acid

Cleaning solution for silicon wafers and LCDs
Solar batteries

High-purity fluoride
Semiconductor
devices

General products(CaF2, PbF2, MgF2, AlF3 andothers)Lens material for i-line steppers and cameras

Potassium fluoride

Auxiliary agent for manufacturing tantalum for tantalum
capacitors

Tin fluoride

Quasi-drug

P.16

Semiconductors and LCDs
 Features of our products and new products
 Result and Forecast of world semiconductor market scaleby product Development of a new memory market
 Maintenance and Strengthening of Quality Edge
 Change of shipping volume of high-purity hydrofluoric acid(semiconductors and LCDs)
 Boosting Production of Semiconductor Chemicals

P.17

<Features of Our Products and New Products>(1) With our ultra purification technology and ultra sensitive technology, we are able to supply the ultra-high-purity
hydrofluoric acid and the ultra-high-purity buffered hydrofluoric acid with the best quality in the world.
(2) Products Lineups are readied to respond the customer requirements, including like suppression of adhering
particles, and suppression of increased roughness of wafer surfaces, and others, for the semiconductor and
FPD manufacturing process.
Product name

Description(Semiconductor and LCDs)

Ultra-high-purity hydrofluoricacid

An ultra-high-purity chemical used for wet cleaning of silicon wafers in manufacturing semiconductors,
FPDs, solar batteries, and MEMS

HF with various functionalities made possible by adding a surfactant. It is mainly used for cleaning silicon

LL HF

wafers.

Ultra-high-purity bufferedhydrofluoric acid

A chemical mixed with 50% hydrofluoric acid and 40% ammonium fluoride solutions

LL BHFBHF with various functionalities made possible by adding a surfactant

LAL BHF

BHF that contains an additive has enabled it to achieve extended service life and given other advantages by optimizing the concentration ofammonium fluoride at 15% to 25%, about half the concentration of ammonium fluoride contained in conventional BHF.

Ex-LAL BHF

BHF containing an environmentally friendly additive with a maximum ammonium fluoride concentration of
5%

HSN Series

An etchant for silicon nitride with selectivity to silicon oxide, which is mainly used in the DRAM
manufacturing process

LPL BHF

A silicon oxide etchant with minimum damage to silicon or polysilicon film

P.18

<Result and Forecast of World Semiconductor Market Scale by Product>(In millions of dollars)

Actual

550,000
500,000

Forecast

The semiconductor market has
achieved sharp growth.

450,000

24,659400,000

21,651
34,813
12,571350,000
300,000
250,000
200,000

18,201
27,571
8,036

20,17029,868
8,502

18,61233,256
8,816

19,41831,994
10,821

106,437

106,526

108,433

98,80523,61035,986
13,306124,247

38,024
14,118

129,626

117,004

109,476

114,747

102,209

150,000
100,000
50,00091,63390,75391,49867,043

79,232

77,20576,767

123,974

The memory market has morethan doubled overthe last
162,545
two years.
156,786

2013

2014

2015

2016

2017

2018

MemoryLogic

85,9280
Other

Sensor

Optoelectronics

2019

Total Discrete

Source: World Semiconductor Trade Statistics Inc. (WSTS)

P.19

<Development of New Memory Market>
Place ofconstruction

Base nameProduced item

Wafer size

Production
capacity, etc.

Plan

Xian

17 lines (II)3D-NAND

12 inches

120,000
wafers/month

Second factory under construction. Slated to go into operation
around June 2019.

Pyeongtaek

18 lines

3D-NAND

12 inches

130,000
wafers/monthPhase 2 under construction. Start of operation is not yetscheduled.

Wuxi

C2F

DRAM

12 inches

140,000
wafers/month

Mass production to start in January 2019

M15

3D-NAND

12 inches

50,000wafers/month

Went into operation in October 2018

M16

DRAM

12 inches

N-Y2

3D-NAND

12 inches

Y6II

3D-NAND

12 inches

Production started in September 2018.

Iwate

K1

3D-NAND

12 inches

Under construction. Scheduled to go into operation in the firsthalf of 2019.

Intel

DalianFab 2

3D-NAND

12 inches

160,000
wafers/month

For producing 3D NAND

Micron Technology

Hiroshima

Fab15

DRAM

12 inches

110,000
wafers/month

A new building under construction for the mass production of
1Xnm

Fujian Electronics & Information; JHICC*Technology licensed by UMC

Quanzhou

Nitch DRAM

12 inches

200,000
wafers/month

Mass production to start in 2019
Slightly behind schedule

Innotron Memory

Hefei

Phase1DRAM

12 inches

125,000
wafers/month

Started producing prototypes in FY 2018

Yangtze River Storage Technology(YRST); YMTC*Tsinghua Unigroup acquired capital in
XMC.

ChengduPhase1

3D-NAND

12 inches

50,000wafers/month

200,000 wafers/month in 2020; 1,000,000 wafers/month in
2030

Manufacturer

Samsung Electronics

SK Hynix
Cheongju

Yokkaichi
Toshiba Memory

Scheduled to go into operation in 2020
100,000
wafers/month

Utilization rate is being upped.

Source: STELLA CHEMIFA
Large-scale investments are being made in memory factories mainly in China.
Demand for memory is expected to grow in step with the advancement of the Internet and widespread use of IoT and artificial
intelligence (AI).

We pursue the sales to the memory market with active strategies.
P.20

<Maintenance and Strengthening of Quality Edge>
 SA Grade HF quality Product technology
generation≥45 nm28 nm≤16 nmOur product grade

SA/SA-X

SA-XX

SA-XXX

Metal impurities level<100 ppt< 10 ppt< 1 ppt ultra-high-purity

Management
size of particle

0.2/0.1 um

0.05 um

0.03 um

Succeeded in

Further strengthening particle managementwith introducing the World’s most advanced analytical instruments.

©RION CO., LTD.

Liquid-borne particle counter
P.21©Thermo Fisher Scientific K. K.

High Resolution ICP-MS(High resolution ICP-MS)

<Change of Shipping Volume of High-Purity Hydrofluoric Acid
(Semiconductors and LCDs)>
90,000(Full-year)
83,42480,000

Sales volume (tons)

70,00060,000(Full-year)
65,177(Full-year)
65,241(Full-year)
66,06950,00040,000(2Q)
39,66530,000(2Q)
33,669(2Q)
32,698FYE 2014

FYE 2015(2Q)
45,659(2Q)
31,25720,00010,0000
P.22

FYE 2016

FYE 2017

FYE 2018

<Boosting Production of Semiconductor Chemicals>
The shipping volume of 83,424 t in FYE 3/2018 is the largest figure everachieved.
The shipping volume in FYE 3/2019 is expected to be 90,000 t.
To expand our share and strengthen the stable supply system

Establishment of the system that makes it possible
to supply 100,000 t/year in FYE 3/2019

P.23

Batteries
 Features of Our Products Electrolyte Business for Lithium-ion Secondary
Batteries in China
 Global Market for Lithium-Ion Secondary Batteries(LIB) Approaches of Countries toward Automobile
Businesses Electric Car Market Forecast Additives for Lithium-Ion Secondary Batteries
P.24

<Features of Our Products>(1) Used as main material comprising the lithium-ion secondary batteries and commercialized ahead of othercompanies(2) Because of the product’s high purity, it is recently being used for high-performance lithium-ion secondary
batteries.
Product Name

Description(related to batteries)

Lithium
hexafluorophosphate

Electrolyte for lithium-ion secondary batteries
Electrolyte for other batteries

Lithium tetrafluoroborate

Electrolyte and additives for lithium-ion primary and secondary
batteries

Additive for batteries

Additives for lithium-Ion secondary batteries<Lithium hexafluorophosphate
particle form>

P.25<Lithium tetrafluoroborate><Large-size container: 1 m3>

<Electrolyte Business for Lithium-Ion Secondary Batteries in China>▪ Quzhou BDX New Chemical Materials Co., Ltd.
(established in December 2015)▪ Capital fund: 70 million Chinese yuan
(STELLA CHEMIFA’s stake: 25%)
▪ Some of the facilities used to manufacture electrolytes
for lithium-ion secondary batteries were relocated tothis joint venture company.
The joint venture company uses the relocated facilities
to produce electrolytes for lithium-ion secondary
batteries and sells them in and outside China.

<Progress>· June 2017

· 2018P.26

Started operation of manufacturing
facilities(Maximum production capacity: 1,300 t/year)
Started selling products

<Global Market for Lithium-Ion Secondary Batteries (LIB)>
Global LIB Market
Exclusive toin-carapplications
Approx. 2
trillion yen

Approx.
4 trillion
yen
2.7
trillionyen

Smallconsumer use
Approx. 1.8
trillion yen

For EES/UPS
and backup
power supply
Approx. 0.2
trillion yen

2021

2017

Demand for lithium-ion batteries exclusive to in-car applications is expected to growfurther because of an increase in global demand for environment-friendly vehicles.
P.27

<Approaches of Countries toward Automobile Businesses>
Country/region

Course of action/policy

UK and France

The sale of gasoline and diesel-powered vehicles will bebanned by 2040.

Norway and Netherlands

The sale of gasoline and diesel-powered vehicles will bebanned from 2025.

China

It is required that new energy vehicles (NEV) account for atleast 10% of the automobiles to be sold in China in 2019.

India

Total ban on the sale of gasoline and diesel-powered vehicles
will be imposed to limit all automobiles sold in India to electricvehicles by 2030.

U.S. (California)

A manufacturer selling more automobiles than the number
specified by the state must sell zero-emission vehicles (ZEV) ata fixed proportion of the total number of vehicles sold.

Electric vehicles (EV) will account for approximately 54% of all
automobiles sold by 2040.
Electric vehicles including plug-in hybrid vehicles (PHV) areprojected to account for over 90% of all automobiles sold.
P.28

<Additives for Lithium-Ion Batteries><Schematic diagram of the inside of a lithium-ion secondary battery>
Electrolyte

Discharge

Positive-electrode material

Roles that additive play High-temperature
endurance
 High conductivity(low temperature) Increased capacity
 Low resistance Flame retardanceChargeSeparator

Negative-electrode material

The Solid Electrolyte Interface (SEI), where the electrode comesin contact with the electrolyte, is important.

FYE 2015

FYE 2016

FYE 2017

FYE 2018

Actual YearProspects
P.29

FYE 2019

GMP-related GMP(Good Manufacturing Practice) Oral Care-related: Tin fluoride (SnF2)

P.30

< GMP(Good Manufacturing Practice) >The GMP inspection by USFDA

for tin fluoride, an active
ingredient of OTC anticaries
drugs, was completed in
November 2017.

Obtained official
approval by a publicorganization in the US

Started selling GMPcertified products in 2018

Standards for Manufacturing Control andQuality Control for Drugs and Quasi-drugs

Three principles:“Reducing human errors to the lowest level"“Preventing contamination and productquality loss"“Designing systems to assure high productquality"
Inside Izumi Factory (Izumiotsu City)

P.31

<Oral Care-related: Tin Fluoride (SnF2)><Actions of fluorine on teeth>▪ To suppress Streptococcus mutans from producing acid (Cavity prevention)▪ To promote tooth remineralization▪ To form acid-resistant teeth (to form fluorapatite)
We expect to see big demand mainly in Europe and the US, where there is strong
interest in dental health and beauty.
Trend in shipping volume of tin fluoride (T/year)
120

100
80
60
40
20
0
FYE 2016

P.32

FYE 2017
FYE 2018
ActualYear Prospects

4. Medical Business Corporate Profile (as of September 30, 2018)
 Development of New Radiotherapy Technology -BNCT Establishment of Enrichment Technology/Features of Enriched
Boron/Applications of Enriched Boron Compounds
 World’s First Accelerator-based BNCT Clinical Trial
 Participation in Development of Imaging Diagnostic Technology-PET Diagnosis Establishment of 18FBPA-PET Development System

P.33

<Corporate Profile (as of September 30, 2018)>
Corporate name:

STELLA PHARMA CORPORATIONHead Office:3-2-7 Koraibashi, Chuo-ku, Osaka City, Osaka

Representatives

Tomoyuki Asano, Representative Director and President

Established

June 2007

Capital fund

1.9 billion yen

Business lineup

Research and development, manufacture and marketing, etc.
of drugs and medical devices

Shareholders

STELLA CHEMIFA CORPORATION
Innovation Network Corporation of Japan
Sumitomo Heavy Industries, Ltd.

Research Center

Sakai Drug Discovery Research Center(Naka-ku, Sakai City, Osaka)P.34

<Development of New Radiotherapy Technology -BNCT->
Boron Neutron Capture Therapy (BNCT) is a particle beam radiation therapy,
which specifically damages cancer cells by making the best of nuclear fission
reactions between boron-10 and thermal neutrons with low energy.

Administration of Boron-10 compound (BPA)

Boron-10 compound (BPA) is selectively
brought into cancer cells.
4He nucleus (α particle)

Prompt gamma ray
478 keV

1.47 MeV
9 μm

Thermalneutron10B

4 μm

Irradiating with thermal neutron
ray causes Boron-10 to fission.

P.35

7Li recoil nucleus

0.84 MeV

Cancer cells with Boron-10 compound(BPA) are selectively destroyed.

<Establishment of Enrichment Technology/Features of Enriched Boron/
Applications of Enriched Boron Compounds>▪ Establishment of enrichment technology
STELLA CHEMIFA established mass production technology of 10B for the first time in Japan.
In November 2000, the only enrichment plant in Japan was established.

10B

Enrichment andseparation

10B

Generation

10B▪ Features of enriched boron

10B
10B

10B
10B
10B

10B
10B

<The only 10B enrichment plant in Japan>(completed in November 2000)

10B offers properties of remarkably high neutron absorption capacity, and by increasing 10B
concentration, the absorption capacity is improved significantly.

▪ Applications of Enriched Boron Compounds· 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· Excess reaction control of pressurized-water reactors by dissolving into primary cooling water.
· Cancer drug for boron neutron capture therapy (BNCT)
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10B

10B

<World’s First Accelerator-based BNCT Clinical Trial>
The world’s first clinical trials using the boron-based drug (SPM-011), developed by Stella
Pharma, and the accelerator-based irradiation system (BNCT 30), developed by Sumitomo
Heavy Industries, are on-going.
Phase II study for head andneck cancer

Phase II study for brain tumors
Having completed BNCT irradiation on all
subjects slated for testing, we are now
conducting an ongoing follow-up study. (Asof the end of September 2018)

Having completed BNCT irradiation on all
subjects slated for testing, we are now
conducting an ongoing follow-up study. (Asof the end of September 2018)<<Flow chart of planned steps from clinical trial to approval application>>
Phase I study
Neutron dose is increased stepwise tocheck safety.

Phase II study
Verification of the effect at thedetermined dose.

SPM-011 and BNCT30 were designated as the products subject tothe MHLW Prioritized Review System for innovative medicines“SAKIGAKE” in 2017.
This allows the drug and device to be given priority in the
consultation and review process for approval, and hence weundertake efforts to speed up their development.
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Approval application(scheduled)<Participation in the Development of Imaging Diagnostic Technology-PET Diagnosis->
The “PET diagnosis” that attracts attention as a technology useful for the early detection of cancers
We have undertaken the development of 18FBPA, which has been studied as a new drug to be used forthe technology.

Features of 18FBPA-PET☆ It is expected that 18FBPA-PET contributes to the development of BNCT because theaccumulation of the boron-based drug (BPA) against cancer can be checked
beforehand (before treatment).
Current BNCT scheme

BNCT
Administration ofboron-based drug
(BPA)

Cancer diagnosis(CT, MRI)

Checking the accumulation of
BPA
18( FBPA-PET)

Radiation ofthermal neutron
beams(Left) MRI image of brain tumors(Right) 18F-BPA PET image of brain tumors
Photo: Courtesy of Professor Ono at Kyoto University
Research Reactor InstituteP.38

<Establishment of 18FBPA-PET Development System>
To implement this project, we have been conducting joint research with
Osaka Prefecture University, Osaka University, and Sumitomo Heavy
Industries through the following projects adopted by the Japan Agency
for Medical Research and Development (AMED).
We have also been proceeding with the specific development of an
automated synthesis equipment required for the commercialization jointlywith Sumitomo Heavy Industries, Ltd.
“Project for Cancer Research and Therapeutic
Evolution” adopted by AMED

Osaka Prefecture
University

Stella Pharma

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Osaka University

Joint development
agreement

Sumitomo Heavy
Industries

5. Transportation Business Corporate Profile (as of September 30, 2018)
 Transportation System by Cooperation with Domestic Bases Overseas Bases International Intermodal Logistics System Future Activities

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<Corporate Profile (as of September 30, 2018)>
Corporate name:

BLUE EXPRESS CORPORATIONHead Office:10 Ohamanishi-machi, Sakai-ku, Sakai City, Osaka

Representatives

Kiyonori Saka, Representative Director and President

Established

June 1991

Capital fund

350 million yen

Business lineup

Common motor trucking/International intermodal transport
Warehousing/Customs-clearing/Sales, rental, and lease ofcontainers, tanks, etc.
Automobile maintenance services/Business related to life
insurance and non-life insurance agencies, etc.

URL

http://www.blue-express.co.jp/

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<Transportation System by Cooperation with Domestic Bases>

Shipping
terminals
Sendai Office
Kanto Office
Yokohama OfficeShimizu Office
Nagoya Office
Ohama Office
Kobe Office
Kitakyushu Office

Customs
clearance sites
Yokohama OfficeOsaka Office
Ohama Office

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Kitakyushu OfficeOpened in October 2014

<Overseas Bases>

China (Shanghai)Blue Express (Shanghai) International Trade Inc.
Blue Express (Shanghai) International Freight
Forwarding Co., Ltd.

Singapore
Stella Express (Singapore) Pte Ltd

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<International Intermodal Logistics System>

Transportation

 High-purity
chemicals Hazardous
materials
 General cargo, etc.

Customs
clearance

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Storage Poisonous anddeleterious
substances High-pressure gas

Container
service<Future Activities>▪ To steadily expand business with first priority given to the improvement ofcustomer satisfaction.
Further quality improvement of international intermodal logistics service▪ To maintain continuous investment for further growth· Currently building a new hazardous substance warehouse (scheduled
to be completed in October 2018)· Consider rebuilding the Ohama Head office building (for effective use of
the Ohama site)▪ To further strengthen business operation base and revenue base
· Promote compliance system and acquire human resources.
· Enhance efficiency by integrating the Overseas Division’s Tokyo and
Yokohama offices into one location in Yokohama.
· Build a new administrative building at the Sanpo Office and integrate
the Transport Section into Sanpo to improve efficiency.

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6. Future Activities
 Approaches to Advanced Energy Devices [1] Approaches to Advanced Energy Devices [2] Approaches to Advanced Energy Devices [3] Approaches to Advanced Energy Devices [4] Development of Fluoride Nanoparticles

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<Approaches to Advanced Energy Devices [1]>Lithium-ion batteriesa) Automotive
applications

New additives forelectrolytes of Lithium-ion
batteries (LIBs)b) Residential
applications
Continue user evaluation

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<Approaches to Advanced Energy Devices [2]>Next-generation
secondary batteries

Appearance of sodium ion battery
prototypes(The above image is for illustration
purposes only.)
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Electrolyte for high-purity
Sodium-ion batteries

Promotion of sample work

<Approaches to Advanced Energy Devices [3]>Catalysts for highperformance fuel cells

Fuel cells

Fuel-cellvehiclesResidential
units
To start of PR

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<Approaches to Advanced Energy Devices [4]>
Li+

Li+

Negative electrodeactive material

Organic electrolyte
solutiaon

Solidelectrolyte

Positive electrodeactive materialAll-solid-state LIB

Negative
electrode active
material

Positive electrodeactive material

Make itall-solid
state

Develop a material that will allow
lithium ions to move smoothly at theelectrode/electrolyte interface

Separator

F-

Lithium-ion secondary battery(Conventional)

Negative electrodeactive material
Solid electrolyte

Positive electrodeactive materialAll-solid-state FIB

Develop a material with high F-ion
conductivity

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RESEARCH ＆ DEVELOPMENT<Development of Fluoride Nanoparticles>
Antireflection film
Navigation

Heads-updisplay

Oral careInterior
panelsDevelopment of nano filler for dental composite resin
A radiopaque fluoride nano filler
makes it easy to identify theboundary of dentin.

Roll-out to the dental
material market
Dental X-ray image

A fluoride nano filler thattransmits visible lightenables aesthetic dental
treatments.
Image of teeth using fluoride fillers

Samples of fluoride nanoparticles
in powder form as well as inliquid form have been provided tocustomers for evaluation.

An example of an expected automotive
application for low refractive index fluoride
nanoparticles would be an antireflective
material for various in-car parts.
Fluoride Nanoparticles Dispersion

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Corporate slogan

Beyond the Chemical

We are drawing upon the strengths in the chemical field whose
growth we have nurtured so far and moving toward even greater
development in the future.

High-purity chemicalbusiness field
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Transportation
business field

Medical business
fieldItems related to the business forecast posted in this presentation material are created on the basis of theinformation available as of the date of announcement of this presentation material and do not guarantee any
future business achievements. The actual business achievements may differ from assessment figures due
to future events.
Please note that the description stipulated in this presentation material may be changed without any priornotice. We shall not assume any responsibility for any damages etc. resulting from any mistake in theinformation, etc. posted in this presentation material.
This presentation material is created to help you understand our businesses.
Please kindly note that it is your sole responsibility to make any decision on your investment.

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