Toagosei Co., Ltd. · TSE:4045
Toagosei — H1 2024 Earnings Presentation
34 slides from Toagosei's earnings presentation, August 2024
Slide 1: Summary of Semi-annual Financial Results for FY2024
Summary of Semi-annual Financial Results for FY2024 G: TOAGOSE/ Business Environment m@ There were significant fluctuations represented by further weakening of yen, rising stock prices, soaring general prices, and higinterest rate policies in the U.S. and Europe. @ Inexpensive commodity chemicals ma
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Slide 3: Overview of Semi-annual Financial Results for FY2024
Overview of Semi-annual Financial Results for FY2024 G TOAGOSE! 1H FY2023 | 1H FY2024| Change panies ange Net sales (Millions of yen 76,947 81,571 4,623 +6.0% Operating income (Millions of yen, 4,746 7,323 2,577 +54.3% Operating income ratio 6.2% 9.0% 2.8P _ Ordinary income (Millions of yen 6,172 8,
Slide 4: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income G TOAGOSEI (Billions of yen) 10.0 9.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 1H FY2023 Volume Unit price Fixed costs 1H 2024 Operating income Operating income
Slide 5: Consolidated Results (by Segment)
Consolidated Results(by Segment) G TOAGOSE! (Millions of yen) Net sales a — a aa Volume Unit price che Commodity Chemicals 35,102 38,374 2,134 1,137 3,272 Polymer & Oligomer 16,425 17,246 563 257 821 Adhesive Material 5,608 6,591 512 469 983 Performance Chemicals 5,285 5,080 (201) (3) (204) Plastics
Slide 6: Overview of Major Consolidated Subsidiaries
Overview of Major Consolidated Subsidiaries (Results for 1H FY2024) G TOAGOSEI (Millions of yen) Net income (loss) Company name Segment ers ner eeics bate oun ore nt 4H FY2023 | 1H FY2024 | 1H FY2023 | 1H FY2024 | 1H FY2023 | 1H FY2024 1 | Toa Techno Gas couteaty 400 2,013 2,306 81 446 ” 322 2 | Toa
Slide 7: Consolidated Statement of Income
Consolidated Statement of Income Non-operatin Income/Expenses and Extraordinar Income/Losses) G@* TOAGOSE/ (Millions of yen) (Millions of yen) Non-operating Extraordinary : 41H FY2023| 1H FY2024) Chi i 4H FY2023) 1H 024) Chi income/expenses ae income/losses BEN 202: a EWE? Interest and dividend 747
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet G TOAGOSE! Dec. 31, Jun. 30, Dec. 31, Jun. 30, 2023 2024 rues 2023 2024 change, Current assets 134,860| 129,895 (4,964)| | Total liabilities 59,767, 63,947 4,180 Cash and deposits Notes and accounts ardisecurties (1) 56,108} 51,038) (5,070)| | ovable 19,094 19,284 193 Note
Slide 9: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement G TOAGOSEI (Millions of yen) 1H FY2023|1H FY2024, Change Cash flows from operating activities A 13,607 14,255 647 Cash flows from investment activities B (4,454) (10,062) (5,607) Free cash flow C=A+B 9,153 4,192 (4,960) Cash flows from financial activities D (13,172)
Slide 10: Challenges in the 2nd Half of FY2024
Challenges in the 2nd Half of FY2024 G TOAGOSE!I Business Environment The supply chain structure is changing due to the power struggle between the U.S. and China. The outlook is highly uncertain in terms of exchange rates, interest rates, stock prices, resource prices, geopolitical risks, and politi
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Slide 12: Full-year Consolidated Results Forecast for FY2024
Full-year Consolidated Results Forecast for FY2024 G TOAGOSEI ee eS (Millions of yen) FY2024 Forecast PANES ISESTIES (Announced on Jul. 31, 2024) eeme 4H 2H Annual 1H 2H Annual (B-A) (A) Results Forecast (B) Net sales 76,947 82,424 159,371 81,571 88,429 170,000 10,629 Operating income 4,746 7,753 12
Slide 13: FY2024 Operating Income Analysis Forecast
FY2024 Operating Income Analysis Forecast G TOAGOSEI (Billions of yen) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 FY2023 Volume Unit price Fixed costs FY2024 Operating income Operating income (forecast) 15
Slide 14: Full-year Consolidated Results Forecast for FY2024 (Comparison by Segment)
Full-year Consolidated Results Forecast for FY2024 ’ Waar orga Com parison by Segment) G* TOAGOSEI (Millions of yen) Net sales ore Reaules (Comemecion at 2024) Change 4H 2H Annual 4H 2H Annual Commodity Chemicals 35,102 38,386 73,488 38,374 41,425 79,800 6,312 Polymer & Oligomer 16,425 17,340 33,765
Slide 15: Trends in Consolidated Results
Trends in Consolidated Results G TOAGOSEI (Billions of yen) (Yen) 30.0 120.00 25.0 100.00 20.0 80.00 15.0 60.00 10.0 40.00 5.0 20.00 0.0 0.00 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 (forecast) C9) EBITDA am Operating (9 Net income attributable “HF Net income income to owners of parent per s
Slide 16: Reference Trends for Consolidated Performance
Reference Trends for Consolidated Performance G: 7TOAGOSE/ (Shareholders’ equity Billions of yer) (Interestbearing debt:Billions of yer) 230.0 50.0 + 45.0 220.0 40.0 + 35.0 210.0 | 30.0 200.0 - 25.0 20.0 190.0 - 15.0 10.0 180.0 - 5.0 170.0 | 0.0 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 (fore
Slide 17: EBITDA/PP&E Ratio Trends
EBITDA/PP&E Ratio Trends G* TOAGOSEI (PP&E: Billions of yen) (EBITDA: Billions of yer) 120.0 115. 60.0 100.0 » 50.0 80.0 + 40.0 60.0 ~ 30.0 40.0 - 20.0 20.0 - 10.0 0.0 T T T ——r ——- 0.0 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 (forecast) G PP&E (left scale) @ EBITDA(right scale) —fil- EBITDA
Slide 18: Reference for Consolidated Performance
Reference for Consolidated Performance G TOAGOSE! (Billions of yen) FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Fy2024 (forecast) SEE] 12.5 15.8 13.6 11.9 22.8 15.4 30.3 Gane 17.0 16.9 11.8 24.9 26.0 26.7 26.0 epee nang 8.3 9.2 9.8 10.6 10.4 10.6 11.0 Research and development 3.6 3.7 4.0 4.3 4.7 5.0 5
Slide 19: Shareholder Return Trends
Shareholder Return Trends G TOAGOSEI (Millions of yen) (yen/%) 16,000 120 107.7% 14,000 Total return ratio 100 12,000 80 10,000 8,000 60 Dividend 6,000 per share 40 4,000 20 2,000 0 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 (forecast) fy Total (aq Share —® = Dividend per share (yen) —®= Total return
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Slide 21: ESG Initiatives
ESG Initiatives E (Environment) Ss (Society) Aug. 2021 Dec. 2021 Mar. 2022 Apr. 2022 Jul, 2022 Oct. 2022 Dec. 2022 Jan. 2023 Apr. 2023 Dec. 2023 Jan. 2024 Mar. 2024 May 2024 Jun. 2024 Aug. 2024 G' TOAGOSEI Participated in the Riko Challenge (science and technology challenge) organized by the Cabinet
Slide 22: ESG Initiatives
ESG Initiatives G TOAGOSEI Mar. 2020 Introduced a restricted share remuneration system for directors Oct. 2021 Revised the Toagosei Group Basic Policy on Corporate Governance + Aim for the amount recorded on the balance sheet of cross shareholdings to be about 10% of consolidated net assets + Promot
Slide 23: Growth Drivers (Semiconductor-related)
Growth Drivers (Semiconductor-related) G* TOAGOSEI Bf High purity liquid hydrogen chloride High purity caustic potash Hf Acrylic polymers for high performance chemical mechanical polishing (CMP) Applications: Cleaning and polishing etc. during semiconductor manufacturing Trend in Net Sales of High p
Slide 24: Growth Drivers (Automotive Battery-related)
Growth Drivers (Automotive Battery-related) G TOAGOSEI Hi Adhesives for Automotive Batteries (Hybrid and Fuel Cell) Our adhesives are currently being adopted in more and more new hybrid vehicles equipped with bipolar nickel metal hydride batteries and fuel cell vehicles. Vehicles Using [ig Our Adhes
Slide 25: Enhancement of Development Capabilities for New Products and Technologies (Launch of New Medical Care Products)
Enhancement of Development Capabilities for New Products and ; Technologies (Launch of New Medical Care Products) G* TOAGOSEI SESS ‘Aroncure Dental” (To be released in September 2024) New : A new concept hemostatic agent for bleeding after tooth extraction (Apolymer sponge becomes a hydrogel to adhe
Slide 26: Enhancement of Development Capabilities for New Products and Technologies (Enhancement of Research Facilities)
Enhancement of Development Capabilities for New Products and : Technologies (Enhancement of Research Facilities) G TOAGOSEI _____eeeeeeeesseennae Hf Opened Kawasaki Frontience R&D Center We will, together with our customers, advance science and technology by venturing into uncharted territory with i
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Slide 29: Growth Drivers (Semiconductor-related)
Growth Drivers (Semiconductor-related) G* TOAGOSEI Bf High purity liquid hydrogen chloride Hf High purity caustic potash Hf Acrylic polymers for high performance chemical mechanical polishing (CMP) Applications: Cleaning and polishing etc. during semiconductor manufacturing Trend in Net Sales of Hig
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Slide 31: Growth Drivers (Automotive Battery-related)
Growth Drivers (Automotive Battery-related) G* TOAGOSEI Hi Adhesives for Automotive Batteries (Hybrid and Fuel Cell) Our adhesives are currently being adopted in more and more new hybrid vehicles equipped with bipolar nickel metal hydride batteries and fuel cell vehicles. Vehicles Using [3m , . . .
Slide 32: Overview of Major Consolidated Subsidiaries
Overview of Major Consolidated Subsidiaries (Results for 1H FY2024) G TOAGOSEI (Millions of yen) Net income (loss) Company name Segment caret oe Net sales CoE EMMETT aoe See 4H FY2023 | 1H FY2024 | 1H FY2023 | 1H FY2024 | 1H FY2023 | 1H FY2024 1 | Toa Techno Gas Bey 100 2,013 2,306 81 446 71 322 2.
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