Toyo Gosei Co., Ltd. · TSE:4970
Toyo Gosei — H1 FY2024 Earnings Presentation
25 slides from Toyo Gosei's earnings presentation, Nov 18, 2024
Slide 1: Business Results for the Second Quarter of Fiscal Year Ending March 31, 2025
Business Results for the Second Quarter of Fiscal Year Ending March 31, 2025 (April 1, 2024 － September 30, 2024) November 18, 2024 Copyright © Toyo Gosei Co., Ltd. All rights reserved.
Slide 2: 70th Anniversary - Thank you to everyone
70th Anniversary - Thank you to everyone • On September 27, 2024, we celebrated our 70th anniversary. • We would like to express our sincere gratitude to all the people involved who have supported our business growth to date. ～70th Anniversary Logo～ 70th Anniversary Thanksgiving Copyright © Toyo Gos
Slide 3: Contents
Contents 1. Business Results for the H1 FY2024 2. Forecasts for the FY2024 3. Future outlook Copyright © Toyo Gosei Co., Ltd. All rights reserved. 3
Slide 4: Financial Results for the H1 FY2024
Financial Results for the H1 FY2024 • Net sales increased 25% YoY to 18,743 million yen, thanks to increased sales of materials for advanced semiconductors, driven by AI-related investments. • Operating profit was 2,178 million yen, up 68% YoY, thanks to increased sales. • Compared to the projection
Slide 5: Variance Analysis: Operating profit
Variance Analysis: Operating profit • Increased sales absorbed the increased costs of expanding production capacity, and the weak yen also contributed to operating profit increasing 68% YoY to 2.17 billion yen. (Billion yen) +1.75 +0.11 −9.8 FX 2.17 Increase in depreciation, labor +68% 1.29 costs, e
Slide 6: Quarterly Sales Trends
Quarterly Sales Trends • Quarterly sales reached a record high, mainly thanks to sales expansion of materials for advanced semiconductors. Sales Recovery (Billion yen) Quarterly Sales Trends 10 9.23 9.52 Bottom Out 8 6 4 2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2022 FY2023 FY2024 Copyright © Toyo Gosei C
Slide 7: H1 FY2024 Net sales & Operating profit Results
H1 FY2024 Net sales & Operating profit Results • Both sales and profits have recovered since the second half of the previous year. Sales increased 11% from the previous second half. • Increased sales absorbed the increased costs associated with increased production capacity and ensure profits. Semia
Slide 8: Photosensitive Materials Segment
Photosensitive Materials Segment Net sales & Operating profit (Million yen) Net sales (Million yen) ¥+1,904 Million 12,000 10,481 Operating profit +20% 11,203 2,400 Net sales: ¥11,203 Million 10,373 9,298 10,092 YoY: + ¥1,904 Million, +20% 9,000 1,800 1,905 • Record highs for both the semi-annual an
Slide 9: Chemicals Segment
Chemicals Segment Net sales & Operating profit (Million yen) Net sales ¥+1,784 Million (Million yen) 8,000 7,072 Operating profit +31% 7,540 2,000 Net sales: ¥7,504 Million 6,229 5,756 6,809 YoY: + ¥1,784 Million, +31% 6,000 1,500 1,147 • Sales of high-purity solvents increased thanks to higher 946
Slide 10: H1 FY2024 Income Statement
H1 FY2024 Income Statement • Net sales were 18,743 million yen (YoY +25%). • Gross profit increased 1,283 million yen and gross profit margin improved by 2.4 points to 24.5%, as sales growth absorbed increased expenses. • Ordinary profit increased 1.5 times from the previous year to 2,060 million ye
Slide 11: H1 FY2024 Statement of Cash flows
H1 FY2023 Statement of Cash flows • Operating CF: ¥3,926 Million Profit increase, working capital improvement. • Investment CF: ¥5,500 Million Continued investment in production capacity expansion. • Financial CF: ¥1,651 Million Secured funds for capital investment. (Million yen) H1 FY2023 H1 FY2024
Slide 12: H1 FY2024 Balance sheet
H1 FY2024 Balance sheet • Working capital improved by 1.5 billion yen thanks to sales expansion. • Due to continued capital investment to increase production capacity, tangible fixed assets increased by 4.36 billion yen and borrowings increased by 1.91 billion yen. • Thanks to the increase in net pr
Slide 13: Contents
Contents 1. Business Results for the H1 FY2024 2. Forecasts for the FY2024 3. Future outlook Copyright © Toyo Gosei Co., Ltd. All rights reserved. 13
Slide 14: Progress of Full-Year Earnings Forecasts
Progress of Full-Year Earnings Forecasts • The progress rate for the first half of the year against the full-year forecasts is 49% for sales, 61% for operating profit, 59% for ordinary profit, and 56% for profit. • Each profit has progressed by more than 50% against the forecasted results FY2024 Ful
Slide 15: Progress of Capital Investments
Progress of Capital Investments • In September 2024, the Chiba Plant's 4th Photosensitive Material Plant with new additional production lines for ArF and EUV materials completed, then all large-scale investment for increasing production capacity during “Beyond 500” (current mid-term plan) have been
Slide 16: FY2024 Increase in Fixed Costs due to Increased Production Capacity
FY2024 Increase in Fixed Costs due to Increased Production Capacity • In the second half of the year, fixed costs are expected to increase by 1.07 billion yen from the first half due to an increase in depreciation and personnel expenses following the start of operation of new facilities. Increase in
Slide 17: H2 FY2024 Net sales & Operating Profit Forecasts
H2 FY2024 Net sales & Operating Profit Forecasts • The sales expansion continues mainly on advanced semiconductor materials for the second half year. • Profits will temporarily decline in the second half of the fiscal year due to upfront increases in personnel, depreciation and other expenses associ
Slide 18: FY2024 CAPEX, Depreciation & R&D Plans
FY2024 CAPEX, Depreciation & R&D Plans • Revised annual capital expenditures from 9.24 billion yen to 9.63 billion yen due to higher construction costs for capital expenditures. • Depreciation have been revised from 4.02 billion yen to 3.84 billion yen due to the start date of depreciation. CAPEX, D
Slide 19: Shareholder Returns
Shareholder Returns • Based on stable dividends policy, the company plans to maintain an annual dividend of 40 yen (interim dividend of 20 yen) for the fiscal year ending March 2025. Dividend Per Share (Yen) 50 40 40 40 40 30 30 Year-end ¥20 20 20 Interim 10 ¥20 0 FY2020 FY2021 FY2022 FY2023 FY2024
Slide 20: Contents
Contents 1. Business Results for H1 FY2024 2. Forecasts for FY2024 3. Future outlook Copyright © Toyo Gosei Co., Ltd. All rights reserved. 20
Slide 21: Future outlook for the semiconductor market
Future outlook for the semiconductor market • The global semiconductor market is forecast to grow 18.8% in 2024 and continue to expand 13.8% in 2025. • It is expected to continue growing after 2026 and reach $1 trillion by 2030. Long-term forecast of the semiconductor market (B $) 1,000 +13.8% +18.8
Slide 22: Future Outlook for Advanced Photoresists Market
Future Outlook for Advanced Photoresists Market • CY2023-2029: Demand for EUV resists is expected to grow 5.9 times, at an average annual growth rate of 34%. • Total demand for EUV and ArF resists is also expected to expand 1.7 times. • With the completion of the expansion of the 4th Photosensitive
Slide 23: Progress of the Mid-term Management Plan "Beyond 500"
Progress of the Mid-term Management Plan "Beyond 500" Performance Targets and Progress Beyond500 Targets (FY2026) (Billion yen) (Billion yen) Net sales: 50 Billion yen 60 Net sales 12 Operating profit: 8 Billion yen Operating Profit 50 (Operating profit Margin 16%) 50 10 ¥+6.25 Billion 8 40 38.2 8 3
Slide 24: Human Resource Development Initiatives
Human Resource Development Initiatives • In 2017, a job-based HR system was introduced for management positions in preparation for mid- to long-term growth. • September 5, 2024: Selected by the Cabinet Office's Job-based Personnel Promotion Council as a company to take the lead in introducing the sy
Slide 25: Individual Development, to the global Chemical (Note): The forecasts made in this document contain
独創的な視点で世界へ Individual Development, to the global Chemical 東洋合成工業株式会社 (Note): The forecasts made in this document contain a variety of uncertain factors since it has been prepared based on judgments from information that is currently available. Therefore, actual business results may differ from those