Financial Results for FYE 3/2020
Securities code: 4109

1. Consolidated Financial Results for FYE 3/2020
 Financial Summary
 Breakdown of Non-Operating Profit andLoss/Extraordinary Profit and Loss
 Quarterly Operating Profit
 Sales Revenue and Operating Profit by Business Transitions in Trade Statistics Value of Anhydrous
Hydrofluoric Acid Balance Sheet Interest-Bearing Liabilities and D/E Ratio Cash Flows, Capital Expenditures, Depreciation &Amortization, Research & Development Expenses
P.2

<Financial Summary>
Percentage
Increase/
Decrease

Increase/
Decrease(In millions ofFYE 3/2019
yen)(million yen)

FYE 3/2020

Sales Revenue

38,38433,729-4,654-12.1

Gross Profit

7,931

6,685

-1,246-15.7

Operating Profit

3,523

2,407

-1,116-31.7

Ordinary Profit

3,810

2,307

-1,502-39.4

Profit Attributable to Owners of
Parent

2,350

1,924

-426

-18.2

Earnings Per Share (yen)182.06149.00-33.06-18.2

Dividend (yen)

45

45

-

-

ROE (%)

7.3

5.8

-1.5

-20.5

P.3

<Breakdown of Non-Operating Profit and Loss/Extraordinary Profit and Loss>■ Non-operating Profit and Loss

■ Extraordinary Profit and LossFYE 3/2019

FYE 3/2020

FYE 3/2019(million yen)588

Non-Operating Profit

133Interest income

21

18

Dividend income

2

3

305

3

72

-

186

108

301

233

40

39

238

29

-

76

22

87

Gain on valuation ofderivatives
Foreign exchange gains
Other

Non-Operating Expenses
Interest expenses
Share of loss of entities accounted
for using the equity method

Foreign exchange losses
Other

P.4

FYE 3/2020(million yen)

Extraordinary Profit

18

42

Gain on sales of noncurrent assets

17

42

Extraordinary Losses

151

109

Loss on abandonment of
non-current assets

151

108

-

0

Loss on sales of noncurrent assets

<Quarterly Operating Profit>(million yen)

1,600

1,400
1,209

1,200
1,000

949

936

888

847

757

727

800

636

600

653

461

400
200

148

83

0
(million yen)

Sales Revenue
Operating Profit
Operating Prof it Margin

FYE 3/2018
1Q
2Q
3Q
8,159 8,561 8,314
888
936
461
10.9% 10.9% 5.5%
P.5

FYE 3/2019
4Q
1Q
2Q
3Q
8,587 10,134 9,323 9,275
83
949 1,209727
1.0% 9.4% 13.0% 7.8%

4Q
9,649
636
6.6%

1Q
9,733
847
8.7%

FYE 3/2020
2Q
3Q
7,406 7,591
148
653
2.0% 8.6%

4Q
8,998
757
8.4%

<Sales Revenue and Operating Profit by Business>
FYE 3/2019

Percentage Increase/
Decrease

FYE 3/2020

Sales
Revenue

Operating
ProfitSales
Revenue

Operating
ProfitSales
Revenue

Operating
ProfitHigh-Purity
Chemical Business

33,776

3,782

29,058

2,897

-14.0

-23.4

Surface
Treatment

2,080

1,525

-26.7

Alternatives for
CFCs

3,618

4,872

34.6

[High-Purity Chemical Business: Breakdown](In millionsof yen)yen)(million

Sales Revenue Constituent Ratio of HighPurity Chemicals
AbroadAt Home

58.0%
6.3%

Batteries

3,629

2,576

-29.0

Semiconductors/LCDs

20,093

15,687-21.9

Semiconductor
Devices

633

446

-29.5

Catalysts

904

925

2.3

Gypsum

176

201

14.3

GeneralProducts

1,762

1,835

4.1

Other

876

988

12.7

42.0%

3.4%

5.2%

3.2%

16.8%

1.5%
0.7%

Sales
Revenue
FYE 3/2020

8.9%

54.0%

Transportation
Business

4,382

Medical Business

-

Other

225

P.6

726
-1,051

42

4,429
-

241

502
-1,035

36

1.1
-

7.0

-30.9
-

-14.2

■ Surface Treatment■ Alternatives for CFCs

■ Batteries■ Semiconductors/LCDs■ Semiconductor Devices■ Catalysts■ Gypsum■ General Products■ Other<Transitions in Trade Statistics Value of Anhydrous Hydrofluoric Acid> *Reference data(yen/kg)

300

250

200

150

100
Apr-15

AveragePrice

Oct-15

Apr-16Oct-16

Apr-17Oct-17

Apr-18Oct-18Apr-19Oct-19FYE 3/2016

FYE 3/2017

FYE 3/2018

FYE 3/2019

FYE 3/2020

158

135

209

220

186

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

P.7

<Balance Sheet>
Percentage
Increase/
Decrease

FYE 3/2019

FYE 3/2020

Increase/
Decrease

55,45453,216-2,238-4.0

Cash and cash equivalents

14,044

13,591-453-3.2

Operating receivables

9,678

8,137

-1,541-15.9

Inventory assets

6,183

5,495

-688

-11.1

Property, plant, and equipment

22,32922,794

465

2.1

565

655

89

15.9

21,53618,487-3,048-14.2

Operating liabilities

4,562

3,310

-1,252-27.4

Interest-bearing liabilities

11,06910,992-76-0.7

33,91834,729810

2.4

32,821

34,0331,212

3.7

55,45453,216-2,238-4.0(million yen)

AssetsIntangible assets

Liabilities

Net Assets
Equity capital

Liabilities and Net Assets
P.8

<Interest-Bearing Liabilities and D/E Ratio>(million yen)

Balance of interest-bearing liabilities(-fold)D/E ratio (-fold)25,000

0.7

0.6

0.6
20,0000.5
0.5

15,000

0.3

0.4

0.3

0.3
0.3

10,00013,9750.2

13,967

10,8575,000

11,06910,9920.1

00.0

FYE 3/2016

P.9

FYE 3/2017

FYE 3/2018

FYE 3/2019

FYE 3/2020

<Cash Flows, Capital Expenditures, Depreciation & Amortization, Research &Development Expenses>(1) Consolidated Statement of Cash FlowsFYE 3/2019

FYE 3/2020(million yen)

Cash flows from operating activities
Cash flows from investing activities
Free cash flows (operating CF + investment CF)
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year

7,345
-3,532
3,813
-321
3,227
8,930
12,1585,036-3,173
1,863
-715
1,133
12,15813,291(2) Capital Expenditures, Depreciation & Amortization, Research & Development Expenses
FYE 3/2019

FYE 3/2020(million yen)

Capital Expenditures
Depreciation & Amortization
Research & Development Expenses

P.10

4,435
3,253
1,566

3,694
3,236
1,513

2. Financial Forecast for FYE 3/2021
 Financial Forecast
 Financial Trends
 Forecast on Sales Revenue andOperating Profit by Business

P.11

<Financial Forecast>
Percentage
Increase/
Decrease(In millions of FYE 3/2020
Actualyen)

FYE 3/2021
Forecast

Sales Revenue

33,72933,300-429-1.3

Gross Profit

6,685

6,600

-85

-1.3

Operating Profit

2,407

1,900

-507

-21.1

Ordinary Profit

2,307

1,950

-357

-15.5

Profit Attributable to Owners of Parent

1,924

1,400

-524

-27.2

Earnings Per Share (yen)149.00108.41-40.59-27.2

Dividend (yen)

45

45

-

-

ROE (%)

5.8

4.0

-1.8

-30.5

Capital Expenditures

3,694

2,250

-1,444-39.1

Depreciation & Amortization

3,236

3,130

-106

-3.3

Research & Development Expenses

1,513

1,560

46

3.1

(million yen)

P.12

Increase/
Decrease<Financial Trends>(million yen)

Operating profit (right axis)

Ordinary profit (right axis)

Sales revenue (left axis)

38,38440,0006,000

33,72933,622(million(millionyen)
yen)

33,3005,000

29,85030,0004,000

20,000

3,000

4,372

4,154
3,523

2,000

3,810

10,0002,407 2,307

2,369
1,756

1,9001,950

0

1,000

0
FYE 3/2017

P.13

FYE 3/2018

FYE 3/2019

FYE 3/2020

FYE 3/2021

<Forecast on Sales Revenue and Operating Profit by Business>
FYE 3/2020
Actual(million yen)

FYE 3/2021
Forecast

Percentage Increase/
Decrease

Sales Revenue Constituent
Ratio of High-Purity Chemicals

Operating
ProfitSales
Revenue

Operating
ProfitSales
Revenue

Operating
ProfitHigh-Purity
Chemical Business

29,0582,897

28,670

2,420

-1.3

-16.5

Surface
Treatment

1,525[High-Purity Chemical Business: Breakdown]

Sales
Revenue

AbroadAt home

55.3%

-14.8

44.7%

2.7%

Alternatives for
CFCs

4,872

4,500

-7.6

Batteries

2,576

2,290

-11.1

9.0%

0.6%

4.5%
15.7%

3.1%

1.6%
Semiconductors/LCDs

15,687

15,7000.1

Semiconductor
Devices

446

460

3.0

Catalysts

925

900

-2.7

Gypsum

201

160

-20.7

GeneralProducts

1,835

2,590

41.1

Other

988

770

-22.1

Transportation
Business

4,429-

Medical Business
Other

1,300

241

P.14

502
-1,035
36

4,420
210

510
-1,050
20

-0.2
-13.1

Sales
Revenue
Forecast
FYE 3/2021

8.0%

54.8%

1.6
-44.7

■ Surface Treatment■ Alternatives for CFCs

■ Batteries■ Semiconductors/LCDs■ Semiconductor Devices■ Catalysts■ Gypsum■ General Products■ Other

3. STELLA CHEMIFA CORPORATION
 Corporate Profile/Sales Office Locations/Plant Locations(as of March 31, 2020)

 List of Affiliated Companies
 High-Purity Chemical Business

P.15

<Corporate Profile/Sales Office Locations/Plant Locations(as of March 31, 2020)>
 Corporate Profile
Corporate Name
Head Office

FoundedEstablished
Capital Fund
Representatives

URL

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
Representative Director,
President and Chief Executive Officer: Aki Hashimoto
Representative Director, Senior Managing Executive Officer(Products Management Group): Kiyonori Saka
https://www.stella-chemifa.co.jp/

 Sales Offices
Osaka Sales Department
Tokyo Sales Department

Meiji Yasuda Seimei Osaka Midosuji Bldg. 10F,
4-1-1 Fushimi-machi, Chuo-ku, Osaka City, Osaka
Marunouchi Trust Tower North 12F,
1-8-1 Marunouchi, Chiyoda-ku, Tokyo Factory Addresses
Sanpo Factory
Izumi Factory
Kitakyushu Factory
P.16

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.17

Corporate NameBusiness Segment

Head office

STELLA CHEMIFA CORPORATION

High-Purity Chemical
Business

Osaka, Japan

BLUE EXPRESS, Inc.

Transportation BusinessOsaka, Japan

BLUE AUTO TRUST Co., Ltd.

Other BusinessOsaka, JapanSTELLA PHARMA CORPORATION

Medical BusinessOsaka, JapanSTELLA 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, are still used in the manufacture of various products.

Segment Name

Main 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

Additive for batteries
Lithium hexafluorophosphate

Additive for electrolytes to improve the performance of lithiumion secondary batteries
Electrolyte for lithium-ion secondary batteries

High-purity hydrofluoric acid
Semiconductors and
LCDs

Semiconductor
devices

General Products

High-purity buffered hydrofluoric
acid

Cleaning solution for silicon wafers and LCDs
Solar batteries

High-purity fluoride(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.18

Semiconductors and LCDs
 Features of Our Products and New Products
 Results and Forecast of World Semiconductor
Market Scale by 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)

P.19

<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.

Product name(Semiconductors and LCDs)
Ultra-high-purity hydrofluoricacid
Ultra-high-purity bufferedhydrofluoric acid

Description
An ultra-high-purity chemical used for wet cleaning of silicon wafers in manufacturing semiconductors,
FPDs, solar batteries, and MEMS
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 a surfactant has enabled it to achieve extended service life and given other advantages by optimizing theconcentration of ammonium fluoride at 15% to 25%, about half the concentration of ammonium fluoride contained inconventional BHF.

Ex-LAL BHF

An environmentally friendly BHF with a maximum ammonium fluoride concentration of 5% and added surface-active
properties that give it a longer life than any other type of BHF

HSN Series

A functional BHF for etching silicon nitride with selectivity to silicon oxide, which is expected to bemainly used in the next-generation DRAM manufacturing process

LPL BHF

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

Joint development of etchant for next-generation non-silicon semiconductor wafers is currently underway.

P.20

<Results and Forecast of World Semiconductor Market Scale by Product>
Actual(million $)500,000

400,000

300,000

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

98,805

Forecast

21,651
34,813
12,571

24,102
38,032
13,35623,960126,018

41,056
13,623

117,004

119,825

100,000

91,63390,753

46,16814,355
125,881

109,303102,20985,92824,874

104,617

111,463

105,907110,286

91,49867,043

79,232

77,20576,767

2013
Memory

2014
Logic

2015
Other

2016
Sensor123,974

157,967

0
2017
2018
Optoelectronics

2019
2020
(By Product)
Total Discrete

Source: World Semiconductor Trade Statistics Inc. (WSTS)

P.21

< Development of a New Memory Market >Base Name

Produced Item

Wafer Size

Production
Capacity

Plan

X2

3D-NAND

12 inches

20K wafers/month

Review plan to increase production to 65K wafers/month by
the end of 2020.

P2

DRAM

12 inches

15K wafers/month

Transferring the investment for X2 to P2 and increasing
production to 60K wafers/month by the end of 2020.

M15

3D-NAND

12 inches

25K wafers/month

The plan to increase production to 50K wafers/month by theend of 2020 is uncertain.

M16

DRAM/NAND

12 inches

C2F

DRAM

12 inches

Y6

3D-NAND

12 inches

Plan to start phase 2 mass production by the end of 2020.

K1

3D-NAND

12 inches

Plan to start phase 1 mass production by the end of 2020.

Y7

3D-NAND

12 inches

Construction to start in December 2020 and be completed in
2022.

Fab15

DRAM

12 inches

New building under construction (F2 building).

Fab16

DRAM

12 inches

New building under construction (A3).

ChangXin Memory Technologies(CXMT)

Phase1DRAM

12 inches

Yangtze Memory Technology(YMTC)

Phase1

3D-NAND

12 inches

Manufacturer

Samsung Electronics

SK Hynix

KioxiaTo be completed by the end of 2020.
20K wafers/month

Micron Technology

Currently 5K wafers/month.
10K wafers/month Shelve plan to increase production to 20K wafers/month by
the end of 2020.
Currently 20K wafers/month. Planning to increase
20K wafers/monthproduction to 50K wafers/month by the end of 2020.
Source: STELLA CHEMIFA

Continuous focus on market trends and increase market presence by flexible and quick
decision-making.
P.22

<Maintenance and Strengthening of Quality Edge>
 SA Grade HF quality Product technology
generation≥28 nm

1X nm

10 nm ≥

Our product grade

SA/SA-X

SA-XX

SA-XXX

Metal impurities level<100 ppt< 10 ppt< 1 ppt

Management size ofparticle

0.2/0.1um

0.05umFurther strengthening
particle management

1ppt = 1 trillionth = 12N (Twelve nine)With introducing the world’s most advanced analytical instruments.

©RION CO., LTD.

©Thermo Fisher Scientific K. K.

High resolution ICP-MS
Liquid-borne particle counter
P.23

<Change of Shipping Volume of High-Purity Hydrofluoric Acid
(Semiconductors and LCDs)>
100,000(Full-year)
94,10090,00080,000(Full-year)
83,424

Volume sold (t)70,00060,000(Full-year)
65,241(Full-year)
69,306(Full-year)
66,06950,00040,00030,000（1st Half）
39,665（1st Half）
32,698（1st Half）
31,257FYE 3/2016

FYE 3/2017

20,000（1st Half）
45,659(1st Half)
36,583

10,0000

P.24

FYE 3/2018

FYE 3/2019

FYE 3/2020

Batteries
 Features of Our Products/Business Development inChina
 Widespread Use of EVs and the Future of Mobility EV Applications Drive Lithium-ion Secondary Battery
Market Growth Construction Rush for Giant Battery Plants
 Sales Results and Forecast of Additives for Lithium-ion
Secondary Battery

P.25

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

Product Name (Related
to Batteries)

Description

Additive for batteries

Additive for electrolytic solution to improve theperformance of lithium-ion secondary batteries

Lithium
hexafluorophosphate

Electrolyte for lithium-ion secondary batteries<Business Development in China>■ Quzhou BDX New Chemical Materials Co., Ltd.
(established in December 2015)■ Capital fund: 95 million Chinese yuan
(STELLA CHEMIFA’s stake: 25%)

■ Some of the facilities used to manufacture electrolytes for lithiumion secondary batteries were relocated to this joint venturecompany. (Maximum production capacity: 1,300 t/year)
The joint venture company uses the relocated facilities to produce
electrolytes for lithium-ion secondary batteries and sells them inand outside China.

P.26

<Widespread Use of EVs and the Future of Mobility>
Environmental (emissions) regulations andindustrial development in each countries⇒ Support policies with subsidies
for the spread of EVs

Contributing to the development of the EV
marketDevelopment of a new mobility society• Enhanced convenience in urban means of transport• CASE; advancement and electrification of vehicle controls• Maas; spurring new mobility businesses
CASE (Connected, Autonomous, Shared, Electric)
Maas (Mobility as a Service)

Development of social systems designed for EVs
will drive EV sales up
P.27

<EV Applications Drive Lithium-ion Secondary Battery Market Growth>
Automotive lithium-ion secondary battery sales(billion yen)

140,000
120,000

Widespread use of EVs will drive
Widespread use of EVs will drive LiB
lithium-ion secondary battery
sales up in the 2020ssales up in the 2020s

100,000
80,00060,00040,00020,000
0
2017
2017

2018
2018

2019
2020
2019
2020
(projection) (forecast)(prospects) (forecast)

2021
2025
2030
2025
2021
2030
(forecast) (forecast) (forecast)(forecast) (forecast) (forecast)Fig. Change in sales in automotive lithium-ion secondary battery (results and forecasts)(Source: Materials released by Fuji Keizai)

P.28

<Construction Rush for Giant Battery Plants> *Source: STELLA CHEMIFA
China
EuropeNorth America

1150

1990

Asia

GWh

GWh

2023
2028
(forecast)(forecast)Fig. Change in production capacity for lithium-ion
secondary batteries by region (output-basis)

Sweden
Northvolt

State of Nevada
Tesla/PanasonicState of Georgia
SK Innovation

Panasonic/Toyota
Japan

Xian
BYD
Samsung SDI

Lishen, Tianjin

PolandLG chemUK
Envision AESCFranceSaftState of Ohio
LG ChemGermany
CATL
TerraE
Northvolt

Hungary
LG chem
SK innovation

XiningNanjing
BYD Chongqing LG chem
BYD
Wuxi
CATL, Envision AESC

Changshu

SK innovation
Svolt

Shanghai
Tesla
NingdeCATL

The medium-term demand for batteries for EVs will be supplied by Gigaplants, which are being constructed around the world.
P.29

<Sales Results and Forecast of Additives for Lithium-ion Secondary Battery><Schematic diagram of the inside of a lithium-ion secondary battery>
Electrolytic solution

Roles that additives play
Discharge

Positive-electrode material◆ High-temperature
endurance◆ High conductivity (lowtemperature)◆ Increased capacity◆ Low resistance◆ Flame retardanceChargeSeparator

Negative-electrode material

The Solid Electrolyte Interface (SEI), where the electrode comes in contact with theelectrolytic solution, is important.

FYE 3/2018

FYE 3/2019

FYE 3/2020

Actual
P.30

Prospects

FYE 3/2021

FYE 3/2022

GMP-related GMP (Good Manufacturing Practice)Oral Care-related ~ Tin Fluoride (SnF2) ~P.31

< 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, Osaka)

P.32

<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)
140
120
100
80

60
40
20
0

FYE 3/2017

FYE 3/2018

ActualP.33

FYE 3/2019

FYE 3/2020

Prospects

FYE 3/2021(Prospects)

Others
 Establishment of Enrichment Technology/Features ofEnriched Boron/Applications of Enriched Boron
Compounds

P.34

<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

4. Medical Business Corporate Profile (as of March 31, 2020)
 Development of New Radiotherapy Technology
 Obtained Marketing and Manufacturing Approval for
Head and Neck Cancer Drug
Steboronine® IV Drip Bag 9000 mg/300 mL
 Efforts to Expand the Indication of BNCT Participation in Development of Imaging Diagnostic
Technology

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<Corporate Profile (as of March 31, 2020)>
Corporate name

STELLA PHARMA CORPORATIONHead Office

3-2-7 Koraibashi, Chuo-ku, Osaka City, Osaka

Representative

President: Tomoyuki Asano

Established

June 2007

Capital Fund

1,900,000,000 yen

Business Lineup

Research and Development, Manufacture, andMarketing etc. of Drugs and Medical Devices

Shareholders

STELLA CHEMIFA CORPORATION
INCJ, Ltd.
Sumitomo Heavy Industries, Ltd.

Business Offices

Sakai Drug Discovery Research Center(Naka-ku, Sakai City, Osaka)
Tokyo Office (Chuo-ku, Tokyo)

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<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.

7Li recoil nucleus

0.84 MeV

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

* This image was prepared to illustrate the mechanism of BNCT. In the actual therapy, the details differ.

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<Obtained Marketing and Manufacturing Approval for Head and Neck Cancer Drug
Steboronine® IV Drip Bag 9000 mg/300 mL –BNCT–>

We obtained approval for indication in unresectable locally progressive or
locally recurrent head and neck cancers in March 2020. As a drug for BNCT,
this will be used in combination with a neutron radiation device and a treatment
support program.

BNCT approved. The therapy will start!
Boron preparation®

World first approvalof a drug for BNCT!

BNCT therapy system (NeuCure™)
BNCT dose calculation program(NeuCure™ Dose Engine)

Image: Provided by Sumitomo Heavy Industries, Ltd.

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<Efforts to Expand the Indications of BNCT –BNCT–>
To expand the indications for BNCT, a development project is underway in which
multiple accelerators are being used mainly for diseases that have shown someresults in clinical studies. These accelerators are installed at Southern TOHOKU
Hospital, Osaka Medical College Hospital, and National Cancer Center Hospital.

Brain tumor

Head and neck cancer(recurrent malignant glioma)(recurrent head and neck cancer)

A phase II study is underway.
(Under the consultation of the Prioritized
Review System for innovative medicines[SAKIGAKE Designation System])

We have obtained marketing andmanufacturing approval for pharmaceuticalproducts.

Melanoma/angiosarcoma
A phase I clinical study is underway.
* Started in November 2019.

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Recurrent high-grade
meningioma
A physician-led phase II study is underway.
(An investigational new drug has been
provided)<Participation in Development of Imaging Diagnostic Technology–PET Diagnosis–>
The “PET diagnosis” that attracts attention as a technology useful for the early detection ofcancers. We have undertaken the development of 18FBPA, which has been studied as a new drug
to be used for the technology.

Features of 18FBPA-PET

It is expected that 18FBPA-PET will contribute to the development of BNCT
because the accumulation of the boron-10 against cancer can be checked
beforehand (before treatment).

Current BNCT scheme
BNCT
Cancerdiagnosis(CT, MRI)

Administrationof Steboronine®

Radiation ofthermal neutron
beams(Left) MRI image of brain tumors(Right) 18FBPA-PET image of brain tumors

Checking the accumulation of boron-10(18FBPA-PET)

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Photo: Courtesy of Professor Ono at Kyoto University
Research Reactor Institute5. Transportation Business Corporate Profile (as of March 31, 2020)
 Transportation System by Cooperation with Domestic
Bases Overseas Bases Activity Policy 1
 Activity Policy 2
 Activity Policy 3

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<Corporate Profile (as of March 31, 2020)>
Corporate NameBLUE EXPRESS CORPORATIONHead Office

10 Ohamanishi-machi, Sakai-ku, Sakai City, Osaka

Representative

Representative Director and President: Kiyonori Saka

Established

June 1991

Capital Fund

350,000,000 yen

Business Lineup

Common motor trucking/International intermodal transport
Warehousing/Customs clearing agent/Sales, rental and lease of containers, tanks,etc.
Automobile maintenance services/Business related to life insurance and non-life
insurance agent, 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
Ohama OfficeOsaka Office
Yokohama Office

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<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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<Activity Policy 1>
1. To enhance compliance capability
 To stop reckless driving and overworking through the use of dashboard cameras and digitaltachographs, and revisions to fleet tracking operations, etc.
 To improve long-haul transportation (consider changing mode of transport) in order to mitigate
excessive driver workload❏ Our mission is to pioneer the future of logistics services with aneye to discovering a better tomorrow and an undying
commitment to the pursuit of safety and sustainability.
▶ All our offices have been G-Mark certified (given to businessestablishments with excellent safety standards)▶ Obtained ISO 14001
Certificate No.: JQA-EM5789
Certified locations: Headquarter, Sanpo Office Transport Section
Yokohama Office, and Warehouse Division
Operations covered: Freight transportation, warehousing,container services, and customs clearance❏ Ensure compliance across the Blue Express Group▶ Blue Auto Trust Co., Ltd.
▶ Blue Express (Shanghai) International Freight Forwarding Co., Ltd.
▶ Blue Express (Shanghai) International Trade Inc.
▶ Stella Express (Singapore) Pte Ltd

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<Activity Policy 2>
2. To carry out intra-group operations safely and accurately
 Working in line with Stella Chemifa’s business policies, make investments aimed at relocatingand expanding offices that serve as our transportation hubs and systematically hire drivers andcustoms specialists with an eye to enhancing the safety and accuracy of intra-group logistics.
 To work on the effective use of buildings to prepare for future transport volume growth.

 Offices planning to relocate/expand(1) Sendai Office(2) Kitakyushu Office

Headquarters new hazardous
materials warehouse
Completed in December 2018

Headquarters Sanpo OfficeCompleted in April 2018

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Nagoya Office
Relocated in February 2020

<Activity Policy 3>
3. To seek international intermodal logistics services and make business deals with a keen
focus on profits.
 To, as a hazardous materials transport expert, seek added value for international intermodal logistics
services, which includes transport, customs clearance, and container services.
 To make business deals with a keen focus on profits
 To focus on business transactions aimed at ensuring optimal operations

Transportation

Storage● High-purity
chemicals● Poisonous anddeleterious
substances● Hazardous materials● High-pressure gas● General cargo, etc.

Customs
clearance

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Container
services6. Future Activities
 Involvement/Integration of Our Technologies in Society Chemicals for Semiconductor Device Manufacturing 1
 Chemicals for Semiconductor Device Manufacturing 2
 Chemicals for Semiconductor Device Manufacturing 3
 Future Energy Devices 1
 Future Energy Devices 2
 Future Energy Devices 3
 Functional Fluoride 1
 Functional Fluoride 2
 Functional Fluoride 3

P.49

<Involvement/Integration of Our Technologies in Society>
Chemicals for
Semiconductor
Device Manufacturing
For LSI miniaturization
technology that supports
an IT-driven society

P.50

Future Energy
Devices

Functional
Fluoride

Development andproposal of materials
for next-generation
batteries

Applying fluorine technology
to light-emitting devices andfuturecommunication
devices

<Chemicals for Semiconductor Device Manufacturing 1>
Working with customers and universities to develop chemicals for future semiconductor
device manufacturing

Customer
Needs

MemorySensor

Discrete

OpticalDeveloping chemicals for new typesof power semiconductors
Developing chemicals for existing andfuture memories
Enhancing performance of existingproducts

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Logic

<Chemicals for Semiconductor Device Manufacturing 2>
Developing chemicals for existing and future memories

1.6% NOR

36%
NAND

0.2% Future memories
0.6% others

61%
DRAM

Fig. Market share by memory in 2018
(Total amount: $165 billion)

Sales [100 million dollars]

0.6% SRAM/FRAM

Fig. Market forecast of future memories
Source: "Status of the Memory Industry" Repot (May 2019) by Yole

Source: "Status of the Memory Industry" Repot (May 2019) by Yole

Developing high-performance chemicals
for the cutting-edge processes of DRAM
and NAND, And submitting proposals to
our customers.
P.52

Conducting surveys to grasp theneeds of future memories
manufacturing.

<Chemicals for Semiconductor Device Manufacturing 3>
Developing chemicals for future power semiconductors

2017
SiC, 27.5

2030

GaN, 130.0
GaN, 1.8

Ga2O3, 145.0

SiC, 227.0

Ga2O3,
extremely
littleTotal
2719.2billion yen

Total
4679.8billion yen

Si, 2689.9

Si, 4177.8

Fig. Market transition of power semiconductors(*Results of 2017 and forecast for 2030)

 GaN power devices Source: Fuji Keizai Group

Developing new chemicals in joint research with
universities Ga2O3 power devices  Collecting information by maintaining technologicalconnections with our customers
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<Future Energy Devices 1>
Production planning for lithium-ion batteries
and demand for electrolytes
Manufacturing capacity and production
projections for lithium-ion batteries(worldwide)[GWh/Y]

Global demand of electrolytes [t/Y]

Demand for electrolytes (forecast in 2019)
Demand for electrolytes (forecast in 2018)
Battery production plan (forecast in 2019, right axis)
Battery production plan (forecast in 2018, right axis)

Increase in the estimatedproduction capacity based on
the announcement of the newfactory plan[year]

Announcing a series of plans for new battery factories, primarily for EVs
We are developing battery materials, including electrolyte additives, and arepromoting user assessments
Source: Benchmark mineral Intelligence

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<Future Energy Devices 2>

Developing materials for high-performancelithium-ion secondary batteries
Improvement of battery performance and durability in EV batteries
Positive
electrode
Negative
electrode
Proposing materials for electrode layer

Image of electrode additive

Proposing materials for electrolyte

Appearance of a new additive

Electrolyte

Proposing materials that better meet customer needs, toimprove battery performance and safety
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<Future Energy Devices 3>
Developing materials for Future Energy Devices
Target and status

Metal-ionsecondarybatteries
Mass production of highpurity electrolytes

Resources

Battery capacity

Development product

Na, Ca, etc.
Small risk ofscarcity

Large capacitywith multiply
charged ions(Ca, etc.)

High-purity electrolyte

Small ignitionrisk(equal to that oflithium-ion
secondarybatteries)

Large capacitywith Li metal
anode

Small ignition risk(All-solid batteries)

Fluoride Smallrisk of scarcity

Large capacity

Safety(equal to that oflithium-ion
secondarybatteries)

All-solid lithiumion secondary
batteries
Making proposals to users
following the establishmentof evaluation system

Material for all-solid
batteries

Fluoride-ion
secondarybatteries
Aiming for use as
candidate materials forbatteries

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Fluoride-ion conductormaterial

Molded electrolyte

<Functional Fluoride 1>
Low refractive index material
Fluoride nanoparticles with low refractive index for
antireflection coatings

Radiation shielding material(1) X-ray shielding (contrast) material

Ensures antireflection and other optical
functions of cutting-edge devices withoutcompromising the design

Protective goggles
for X-ray therapy

Fluoride Nanofiller
with X-ray radiopaquefor dental contrast
materials

Preparing(2) Neutron-beam-shielding material
Refractive index
n = 1.38 (existing product)n = 1.31(under development)
Developed super-low-refractive-index fluoride-nanoparticle
dispersion and currently preparing prototypes.

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Protecting a camera withneutron-beam-shielding
transparent resin

Conducting joint research with universities

<Functional Fluoride 2>

Developing materials for future network devices
Proposing materials for high-frequency communication devices such as 5G
Expectation for 5th generation
mobile communication system(1) High-speed and largecapacity data transmission(2) Low-latency communication(3) Multiple simultaneousconnections
3GHz

6GHz

4G LTE

Deployment to communication
infrastructure

Deployment tocommunication terminals

30GHz

5G frequency band

Simultaneous use with 4G(present)

Expansion ofcorresponding frequency(future)Aim to achieve results at the time of launch of 5G
services

Materials for high-frequency use
Restriction of communication transmission loss
(low permittivity/low dielectric constant)
Under evaluation at parts manufacturers
in Japan and overseas

Making proposals for materials to be used in future communication infrastructurethat will support high-speed communication as well as IoT devices
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<Functional Fluoride 3>

Phosphor and its related materials(unit: 1,000)

Estimated volume of mini LED displays installed worldwide

Part

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Note: Based on the volume of applications using mini LED displays (small LEDs between 100 μm and 200 μm in size)
Source: The current situation and future prospect of LED Display Market/2019 - Micro LED and mini LED -(Yano
Research Institute Ltd.)Installation of displays and meter panels in vehicles is expected to lead the increasein volume of mini LED displays.
P.59

<Functional Fluoride 3> Phosphor and its related materials
Development of high-efficiency, long-life fluoride phosphor materials utilizing ourcompany’s core technology

LSA-61A

Red phosphor
NSM

MgF2
nanoparticles
CaF2
nanoparticles

Filler for LED
sealant

PBFS
P.60

Raw materials
for phosphor

Raw materials
for phosphor

Corporate slogan

Beyond the Chemical
Beyond the Chemical

We are drawing upon our 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 based on theinformation available as of the date of this announcement. We do not guarantee any future financial
results. The actual business results may be different from assessment figures due to future events.
Please note that the information stated 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 any
information 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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