Toagosei : Financial Results for 2Q FY2023

About this update from Toagosei Co., Ltd.

Financial Results for 2Q FY2023 August 9, 2023 Table of Contents 1. Results for 2Q FY2023 P.2- 2. Results Forecast for FY2023 P.11- 3. Topics P.22- 4. Toagosei Group's Initiatives to P.29- Improve Our Price-to-Book Ratio (PBR) 5. Appendix P.36- 1 Results for 2Q FY2023 2 Summary of Financial Results for 2Q FY2023 Business Environment Interest rates were raised to combat inflation in Europe and the U.S. Meanwhile, monetary easing continued in Japan to ease inflation. The pace of recovery in the Chinese economy slowed. It become possible to see a movement to reorganize supply chains due to decoupling because of the power struggle between the U.S. and China. The sense of an economic slowdown in the manufacturing industry is also becoming more intense in Europe and the U.S. Against this background, the operating efficiency of production equipment for basic materials such as ethylene has remained low over a long period of time. Overview of Financial Results for 2Q FY2023 Commodity chemicals and other segments located upstream of a wide range of fields were greatly affected by the Japanese and overseas economies. That led to overall decline in shipment volume. Sales increased for developed products including products for automotive batteries and medical care products. Net sales, operating income, ordinary income and net income attributable to owners of parent declined in 2Q FY2023 in a year-on-year comparison. 3 Overview of Results for 2Q FY2023 2Q FY2022 2Q FY2023 Change Rate of Change Net sales (Millions of yen) 77,977 76,947 (1,030) (1.3%) Operating income (Millions of yen) 7,891 4,746 (3,145) (39.9%) Operating income ratio 10.1% 6.2% (4.0P) － Ordinary income (Millions of yen) 9,387 6,172 (3,214) (34.2%) Net income attributable (Millions of yen) 7,391 5,469 (1,921) (26.0%) to owners of parent Net income per share (Yen) 59.36 45.71 (13.65) (23.0%) Interim dividend [annual (Yen) 18.0 20.0 2 +11.1% dividend] (the values for [36.0] [40.0] [4] [+11.1%] 2023 are a forecast) Note: We have changed our scope of consolidation. We added Toagosei (Shanghai) Management Co., Ltd. from 2Q FY2023 (19 consolidated subsidiaries and 2 equity-method affiliates). 4

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