Tocalo Co., Ltd. · TSE:3433

Tocalo — FY2019 Earnings Presentation

44 slides from Tocalo's earnings presentation, May 14, 2019

  1. Slide 1: Tocalo

    | TOCALO Teeeeioec:

  2. Slide 2: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 1

  3. Slide 3: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 2

  4. Slide 4: Company profile

    payamivie=s « h-vORASe BRAS : A Ott : Rela 1 1951477A : 26(85,882534F5 | aah beé DcRwKeL Ee : 44 395/858 (20194235 HA) : fi 1,021% (20194F 3 AIRE) Copyright (c) TOCALO Co.,Ltd. All rights reserved. 4

  5. Slide 5: SSSSLLqLqLLSS—SSE———

    SSSSLLqLqLLSS—SSE——— _ : t fers ate RPL 4 HR Lie - Li ARTETA BP-EALIUI— Copyright (c) TOCALO Co.,Ltd. All rights reserved. 5 FB ela 4

  6. Slide 6: Tocalo group companies

    D\L—-TFBtt PTOCALO) BH mutA OR OA = ERR Beret BAI-F4 ICY S—-KASH 19854 4A ARRIIR §=§— 100% © PVDLEBANT RHE (LN) RACER MAAR) 2005 4A HE LRA 70% iH zReth) RS (Bl) STARAA 2011 5A PE THA 90% iat Hus F PD) SRERETROARAA 2011% 6A AB ART 50% aH(4usH- F PD) TOCALO USA, Inc. 201511 KEI CAM 100% — 3aq4 4458 ¢a

  7. Slide 7: Business overview

    CKCERERAIHMSS RH GED kK - FPD (DSyb NAIF 4 ATLA) SEF EDOM EON AMEN (TD/ZAC/PTA) 19/3A4 3951858557 (i848) ERBHAS see Copyright (c) TOCALO Co.,Ltd. All rights reserved. = SCRIPTS 's Meetings, Globally

  8. Slide 8: Business description

    ALireales LTOCALO ABHOR (4xX—-D) (aa) Fee H Ie REIL ri GRAF ky K RAT HORT CSSYIA ARR Copyright (c) TOCALO Co.,Ltd. All rights reserved. 8 7

  9. Slide 9: Technologies and services

    AAS cls PTOCALO Rb =VIA VI=VIARR Be RoOm AMIE - mank(b Copyright (c) TOCALO Co.,Ltd. All rights reserved. 9 = SCRIPTS 's Meetings, Globally 8

  10. Slide 10: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 9

  11. Slide 11: History and sales trend

    AEE + SHOES (19517 E~) rocaLo] soli (87: BAF) mm h—-DOBL CEB A- POL) mm b-DORLCEBA-FPD) ERSAIEE 40,000 5 ma BEFAt EL EB FEGES) e000 35,000 | 1951.7 B¥HOS1(LY ILS Biz 38/4 + a 8,000 1958.2 RANDOM 1959.11 RRs soi 7,000 30,000 | 4960.10 sSStABPIDATE SERNA | 1981.9 h—-yORHSHICHSAe ~ 6,000 25,000 | 1982.

  12. Slide 12: FY2019 results: sales and operating income

    at WN 20194 3 AHA RES SE PTOCALO ] mazc_tia(BAA) 39,558 ont 4 (BHA) 8.076 no BRA oo FEE . 7,363 28,746 28,963 2015/3) 2016/3) 2017/38 2018/3) 2019/3It 2015/38] 2016/38) 2017/38) 2018/38) 2019/31 Copyright (c) TOCALO Co.,Ltd. All rights reserved. 12 = SCRIPTS 's Meetings, Globally 11

  13. Slide 13: FY2019 results: net income and ROE

    20194 3 AA iS RS Ree PTOCALO ] mem REE (CI SS AS (EA) 5,441 -e=ROE 2015/3884 2016/3384 2017/3348 2018/3384 2019/334 Copyright (c) TOCALO Co.,Ltd. All rights reserved. 13 = SCRIPTS 's Meetings, Globally 12

  14. Slide 14: FY2019 results summary

    20194 3 AHA RE Rie TOCALO) AC) 6RiEROMIIBE (HAMBN—Z2) sok + Alm cBl(CBARaeeMI Sb IB(K + FP DEPOSI LD FRAC IRL 7 Alc EAE Ue PACS DS 0:(2) LAILF—-AFOBHAM LAIN Amy KSSEDABT SY HaHa a ILA Sk “0:(3) BASFSAt BRU THA SHE (ARIE OED PE ORRROGIB:- DADE SILA Copyright (c) TOCALO Co.,Ltd. All rights reserved 14

  15. Slide 15: FY2019 results: income statement

    20194 3 ABA RE Rie _TOCALO (BAR) 2018/3848 2019/3HA AUETa) RATES ik sem | fiat xm | attt | oe | x colin 34,109 100.0% 39,558 100.0% 5,449 16.0% Bath HA) 26,183 76.8% 30,400 76.8% 4,217 16.1% 48K» F PD 13,474 39.5% 17,134 43.3% 3,659 27.2% ESL 4,218 12.4% 4,154 10.5% A 64 -1.5% Ski 3,697 10.8% 3,662

  16. Slide 16: Operating income change factors

    BUSFIEIRALL Aas BAO frocalo) A155 DOPE OLA Po Anigi= pala owen Atte BMRe zor HEN +39 + 713BAA 9.7%} 8,076 2018/34 2019/34 SEHER AS EMR Copyright (c) TOCALO Co.,Ltd. All rights reserved. = SCRIPTS tings, Globally 15

  17. Slide 17: Sales by segment: thermal spray

    VIX> bask (BIEIIRALL) frocaLo) raat L (Bite) a 30 _tia(BAP) a UIX»> b4let(BAR) 30,400 26,183 2,493 502 545 2018/34 2019/3184 2018/34 2019/34 SELE(AK + FPDDEFAAS < (PR UEIED, AS Pekin —D-aistyaTSa~ EONS EF (LHF - BBE) BUF a CHUB AE OPVDMFBMN TALC. UNAS Copyright (c) TOCALO Co.,Ltd. All rights reserve

  18. Slide 18: Sales by segment: other

    VOX> KBR (AIERIBALL) Procato] m 3c Lia(BAR) 4,460 me COX» bilz(BAR) 3,642 2,204 LO71 974 bid 126 152 2018/3HA 2019/3HA 2018/33A 2019/3#A LIBS HEE (CYA OMAAILA, BA FE GBRUAI- AA). as Ge peEB cate FDI BHUE (CHO. RUBE K+ FPD) €G(CHF ACHES L. UNI Copyright (c) TOCALO Co.,Ltd. Alll rights reserved. 18 =

  19. Slide 19: Results by segment

    VOX ABR (BUFERIRALL) PTOCALO ] AIEEE (5A) 2018/388 2019/38 wy ONES are |promis| are |eromigs) 4 x | 3% | F MIR) = =—-26,183 6,009 30,400 6,515 4,217 16.1% 506 84% BIAFSH 2,312 502 2,493 545 181 7.8% 43 8.6% ort 5,613 1,101 6,665 1,216 1,051 18.7% 115 10.5% COHRALENT 1,971 126 2,204 152 -233—-11.8% 2

  20. Slide 20: Balance sheet

    (GAR) 2018/3889 | 2019/3#A 4Qk 4Q& OTE 52,664 57,278 AoaA 34,174 37,559 AGA 64.9% 65.6% AFAR 2,486 4,478 - BAFESAIMAALL 468A OID (55. AMEE AHOIBH 28187) » AGRA RISAINAALE 0.771K-14 YY KERO65.6% - BAIT AAISATALL 198 AOD (7AICISAR, 3 ACAM4eAORAME A Sei) Copyright (c) TOCALO Co.,Ltd. Alll rights reserv

  21. Slide 21: Cash flow

    Fry 4+ 7O-OKn PTOCALO ] (BAR) 2018/3885 2019/3#A BRFvy>.1-7o0-— 7,611 8,044 RAFery>4-7oO-— A 4,681 A 4,617 MBFey>a- 7oOo— A 2,217 40 RERVUREASWOMA RE 8,807 12,213 -#8C FF /AMEEREOIWS BUA: A434 4HA: AGOEFY AME AORN A (MR) AIHA: 7tL = YHA: +2048F9 - IEC F /RIMBAIC SIMA AUHA: 7 = YHA: + 20489 »DU-—Fyyl

  22. Slide 22: Operating environment

    EDEL RIZE (CDUVT _TOCALO) 201943 AHA Sia awimizSs8 SO65SR AA oxisyiesA 70/8) (eno 531895559 - aK F PDDEF COE RMS (HABE Lis i Liniz, ALAN Tis BR RRL aM) RERI—F4 VORB A BINS st PRAAIER 2808 met F Att X FHUBRO+S EA RORTRRABEA, Ast HO— Ae Mes GEA EHR (2019 2 Ae) \ Sa FPDASehilc 2@89S5A yy, Copyright (c)

  23. Slide 23: FY2020 outlook

    20204 3 AHO FrocALoy a HAD SAS. UR a RNS —-ADSRIt mSASOART ARIE [SHOF—W) x HIGtE «FP DSS : TiAl eA SERED OR Se TAMEN DET EITTE x MesiROS AME aithizOMiG CRF hizo WALA Copyright (c) TOCALO Co.,Ltd. All rights reserved. 24 = 22

  24. Slide 24: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 23

  25. Slide 25: FY2020 forecast: sales and operating income

    20204 3 AFA aia TOME PTOcALO) +IG(K- F P DADE COA WISELY IAG, soli BIRALL A9.0%, Files BURALL A31.9% mit LS(GAF) 39,558 mn 841128 (AY) -» BERIZER 36,000, grxegaese 8,076 28,746 28,963 26,068 2015/388 2016/34 2017/3Hi 2018/3HA 2019/38 2020/3848 2015/384 2016/38 2017/38 2018/3Ri 2019/3898 2020/3%4 (eu

  26. Slide 26: FY2020 forecast: net income and ROE

    20204 3 AFA aia TOME PTOcALO) MRE (Clas SS SHAM AE(BAA) -.-ROE 5,441 2015/3384 2016/34 2017/35 2018/3F4 2019/3#8 2020/3885 CFE) Copyright (c) TOCALO Co.,Ltd. All rights reserved. 26 = RIPTS 's Meetings, Globally 25

  27. Slide 27: FY2020 forecast: operating income change

    BUSFIEIRALL Aas BAO frocalo) ZB . A40 +104 HM Say ty A49 A 2,5768AA 31.9% = 2019/3HA 2020/3#A (48) REA All At REA a Copyright (c) TOCALO Co.,Ltd. Alrights reserved. 27 = SCRIPTS 's Meetings, Globally 26

  28. Slide 28: FY2020 forecast summary

    20204 3 AHA mitaseia 78 TOCALO) 2019/3#4 2020/3#A ARASH LE. em | Aut FAR 8 | | ARLE ras lim 39,558 100.0% 36,000 100.0% A 3,558 AS DNL (BSA) 30,400 76.8% 26,658 74.1% A 3,742 “EMA + F PD 17,134 43.3% 13,500 37.5% <A 3,634 PES 4,154 10.5% 3,650 10.1% A 503 KA) 3,662 9.3% 4,047 11.2% 385 ZO 5,449 13.7

  29. Slide 29: Sales: FPD and semiconductor

    [I- Fie (K- FP DBF Osc_LiEts FS STHNT (BA) m FPD4>8¥ mm ERAS BF 13,474 10,069 10,003 [ze 1,110 17,134 2015/31 2016/31 2017/38 2018/3) 2019/30 2020/38 (ra) Copyright (c) TOCALO Co.,Ltd. All rights reserved. 29 = RIPTS 's Meetings, Globally 28

  30. Slide 30: Sales by segment trend

    HER: FP Da EPL Ose EES BTOCALO ] me ESRD mp PRIZE = EOE (SAF) me COMA UIS @ FSH 22,424 22,500 20,634 18,676 18,959 2017/38 2018/3358 2019/33h 2020/3534 ra Copyright (c) TOCALO Co.,Ltd. All rights reserved. 30 = SCRIPTS 's Meetings, Globally 29

  31. Slide 31: Half-year sales trend

    solis + RAAF RAN— AHS =< (Hr: SD mee mK + FPDIELE 20,943 elas 18,500 17,747 17,500 2018/3 FHA 2018/3 FHA 2019/3 LSA 2019/3 FHA 2020/3 FHA 2020/3 FHA (FB) (F8) Copyright (c) TOCALO Co.,Ltd. All rights reserved. 31 = SCRIPTS Asio’s Meetings, Globally 30

  32. Slide 32: Capex and depreciation

    SIVA - MMA - RR am on SAIL TEED -o-TETIEE on 6,361 5,936 5,965 2015/3#8 2016/3348 2017/3388 2018/38 2019/3341 2020/3381 PAB) Copyright (c) TOCALO Co.,Ltd. All rights reserved. 32 = SCRIPTS Asio’s Meetings, Globally 31

  33. Slide 33: Medium-term initiatives

    APA SEL RAPER 368A /K—-pO 26189 > RERIO— Fa VOR EOIS A IAF Set - PRE 5 A eh Fett aK - FPDDRARiOic 5 (eA Nog, _ J Copyright (c) TOCALO Co.,Ltd. All rights reserved. 33! riceuil 32

  34. Slide 34: Dividends and payout

    1 S72 ORC RA - ACHEMIOHS Gap mmm 1476 0 BC48R (FY) mm LR Y7E 0 PRAY SA( FA) 0-H 4 ttt Il HA) (Fa) 30.00 2015/3384 2016/3548 2017/3538 2018/3348 2019/3348 2020/338 (P48) GE) 2015/3HA~2017/3HAO 1 FRYE ORR YEAS, HEDIS SR LCMEICRBLCHORS. Copyright (c) TOCALO Co.,Ltd. Alll rights reserved. 34 = SCRIPTS A

  35. Slide 35: ROE and operating margin

    ROE + #tA acs OES eROE fac 13.9% 14.9% 15.2% 12.2% 44.2% na Mey rns “9.1% >) __»— —_e— Own oo - o, “- 3.7% 4.2% 4.4% 4.9% 5.1% 4.0% 2015/3384 2016/3358 2017/3578 2018/3358 2019/3784 2020/3538 (iB) ROE (ACB) = YMA / Pace OREO = LR ORO / RAYS 1 RY 7c 0 RE (= ROE = Ac44ttra)) Copyright (c) TOCALO Co.,L

  36. Slide 36: Growth strategy

    FFI ARORA Cat CT ProcALo K—A DORR ie mOWS RO ArhizOelw S—Ay bitita@ 5 AE PR ROEODL ID ay 1.4384 - F PD 1 OMBsiROS Ate 2.90 Fett i + Bay Wet CO ABLACSRIMAARS, AO PATE CBE ROA AME D1 IL, i / AAD eto. | QI fk - FPDS3EF 3.LRILF— - Boe i+ PAB CMA IC ALRERE ONS 4. AK : - REMERZARO BABAR ROLE, MEH ete. © @

  37. Slide 37: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 36

  38. Slide 38: Market trends

    [I- FARA (4 vs. K-00) eee mitt HOR RERE Wm (B/E. Ae) foT Al —h—A0 48S his (BSPA/ AE. AR) BIG DATA PR FE SLID 1,000 YU—-ARR ane 2005% 2006% 2007% 2008% 2009% 2010% 2011% 2012% 2013% 2014% 2015% 2016% 2017 2018% 2019% 2020% (BAYSASSREBS MR MEt (WorldWide SEMS Report) | OUUtRA(B#)7—F (cB IArEA) Copyrig

  39. Slide 39: Cautionary note

    RAR RE = —a RIPTS 's Meetings, Globally 38

  40. Slide 40: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 39

  41. Slide 41: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 40

  42. Slide 42: Dil

    Dil —a RIPTS 's Meetings, Globally 41

  43. Slide 43: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 42

  44. Slide 44: = SCRIPTS

    = SCRIPTS 's Meetings, Globally 43

Tocalo — FY2019 Earnings Presentation on 6ix