Toyo Gosei Co., Ltd.TSE: 4970

FY2024 Business Results Presentation Material (from April 1, 2024 to March 31, 2025)

May 27, 2025 at 6:51 PM UTC · Issued by Toyo Gosei Co., Ltd.

Business Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 - March 31, 2025) May 16, 2025 Toyo Gosei Co., Ltd. Securities Code: 4970

Confidential

1. FY2024 Business Results

2. FY2025 Business Forecast

3. Future outlook and progress of the mid-term management plan

4. Sustainability Activities

Sales increased significantly by 21% YoY to ¥38,665 million, thanks to increased sales of materials for cutting-edge
semiconductors under expanding demand for generative AI applications.
Operating profit increased 17% YoY to ¥4,103 million, as increased sales offset increased fixed costs from new facilities and increased personnel.
Sales were in line with the forecast. Operating profit exceeded the forecast by 14% thanks to efforts to control increased costs.

Profit exceeded by +31% thanks to special corporate tax credits such as tax credits for promoting wage increases and capital

investment.

(Million yen)	FY2023 Results	FY2024 Results	YoY Change	%	FY2024 Forecasts	Compared to Forecasts Change %
Net sales	31,956	38,665	+6,708	+21%	38,200	+465	+1%
Operating profit	3,512	4,103	+591	+17%	3,600	+503	+14%
Ordinary profit	3,393	3,997	+603	+18%	3,500	+497	+14%
Profit	2,396	3,279	+882	+37%	2,500	+779	+31%
EPS FX Rate (USD)	¥301.98 ¥144/$	¥413.20 ¥153/$

Increased sales will increase profits by ¥3.14 billion, and increased production will reduce costs.
Fixed costs are increasing due to the completion of new facilities and increased personnel in preparation for future supply
expansion.
However, as efforts to control increased costs, the initial plan of ¥2.9 billion was compressed to ¥2.25 billion.

Absorbing these increased expenses, operating profit increased 17% YoY to ¥4.1 billion.

Initial Plan: ¥2.9 billion

(Billion yen)

＋3.14 +0.14 −0.44 −2.25

FX Impact Inventory

¥−0.65 billion

3.51

Valuation Loss due to Increased Production

Increased Costs (Depreciation, Personnel, etc.)

4.10

+17%


Operating profit (Previous FY)	Increase in Sales	Operating profit (Current FY)

+0.59 billion

FY2023 FY2024

Sales bottomed out in Q2 FY2023 and are now on an upward trend.
Increased sales offset the increase in fixed costs associated with the completion of the new facility, and profits were secured.
(Million yen)
Net sale
Operating profit
9,591
1,036
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY2022
FY2023
FY2024
Bottom Out

12,000

10,000

Quarterly Sales & Operating profit Trends

(Million yen)

2,000

1,600

8,000

6,000

4,000

2,000

1,200

800

400

0 0

Sales continued to increase from the second half of the previous year, up 6% from the first half.
Maintained profit level while absorbing costs associated with the completion of new facilities.

Half-Year Sales & Operating Profit Trends

(Million yen) (Million yen)

Net sales

Operating profit

+11%

¥+1,842 million

+6%

¥+1,178 million

17,553

18,743

19,921

16,603

16,901

2,852

15,055

2,115

2,214

2,178

1,924

1,297

FY2022

FY2023

FY2024

25,000 5,000

20,000

15,000

10,000

4,000

3,000

2,000

5,000 1,000

0 0

(Million yen)

Net sales Operating profit

23,873

20,574

20,854

19,390

15,976

3,297

3,306

2,156

1,823

1,979

30,000

24,000

18,000

12,000

6,000

Net sales & Operating profit

(Million yen)

5,000

4,000

3,000

2,000

1,000

Full-Year

Net sales: ¥23,873 million (YoY +23%)

Record highs for both the full year and the half year.
In semiconductors materials business, sales of materials for cutting-edge photoresists increased thanks to growing demand for generation AI applications.
In displays materials business, panel production was maintained at a certain level, especially in China, then sales were strong.
(Million yen)
15,000
12,000
9,000
6,000
3,000
0
FY2020 FY2021 FY2022 FY2023 FY2024
(Million yen)
12,670
11,203
9,298
10,092
1,359
1,030
797
948
1H
2H
1H
2H
FY2023
FY2024
2,500

2,000
1,500
1,000
500
0
Operating profit: ¥1,979 million (YoY −8%)
Fixed costs increased due to the completion of new large-scale facilities to expand production and supply capacity in cutting-edge fields. Maintained profit level by increasing production.
As utilizing the new facilities to ensure a stable supply of cutting-edge quality then aims to increase the return on investment.
Confidential

(Million yen)

Net sales

Operating profit

14,792

12,569

13,301

12,565

11,187

2,123

1,661

1,115

1,326

1,355

20,000

16,000

12,000

8,000

4,000

Net sales & Operating profit

(Million yen)

4,000

3,200

2,400

1,600

800

Full-Year

Net sales: ¥14,792 million (YoY +18%)

Full year sales reached a record high.
Sales of high-purity solvents increased thanks to increased demand for semiconductors and electronic components.
Sales of flavor and fragrance materials increased thanks to
strong overseas sales.
(Million yen)
10,000
8,000
6,000
4,000
2,000
0
FY2020 FY2021 FY2022 FY2023 FY2024
(Million yen)
7,540
6,809
7,251
5,756
1,147
855
975
500
1H
2H
1H
2H
FY2023
FY2024
2,000
1,600
1,200
800
400
0
In the tank terminal business, domestic demand was weak, but imports increased due to petrochemical restructuring in Japan, then tank contract rates remained high.
Operating profit: ¥2,132 million (YoY +57%)
Increased profit thanks to higher sales of high-purity solvents,
etc.
Confidential

Net sales increased ¥6,708 million (+21% YoY) to ¥38,665 million as new record high.
Gross profit was maintained as the increase in sales absorbed the increase in fixed costs.
Tax Incentive for Promoting Wage Increases
Tax Incentive for Promoting Regional
Future Investment

Gross profit Margin

23.8%→23.4%

Profit increased by 37% YOY due to special corporate tax credits such as tax credits for promoting wage increases and capital investment.

(Million yen) FY2023	FY2024	Change %
Net sales 31,956	38,665	+6,708 +21%
Cost of sales 24,355	29,605	+5,250 +22%
Gross profit 7,600	9,059	+1,458 +19%
SG&A expenses 4,088	4,956	+867 +21%
Operating profit 3,512	4,103	+591 +17%
Non-operating income 207	232	+25 +12%
Non-operating expenses 325	338	+12 +4%
Ordinary profit 3,393	3,997	+603 +18%
Extraordinary income & losses △ 123	△ 131	△ 7 +6%
Profit before income taxes 3,270	3,865	+595 +18%
Income taxes 873	586	△ 286 △33%
Profit 2,396	3,279	+882 +37%
			Confidential

¥6,795 million

Improved working capital, which increased thanks to sales expansion, by ¥2,222 million,

¥11,974 million

up 49% from the previous year.

Payment for large capital investments in the mid-term plan was completed.

¥5,193 million

Securing funds for capital investment.

Operating CF :

Investing CF :

Financing CF :

(Million yen)	FY2023	FY2024	Change
Cash flows from operating activities	4,572	6,795	+2,222
Profit before income taxes	3,270	3,865	+595
Depreciation	2,898	3,715	+817
Decrease (increase) in trade receivables （+: decrease）	△ 1,310	△ 148	+1,161
Decrease (increase) in inventories （+: decrease）	1,420	△ 714	△ 2,134
Increase (decrease) in trade payables（+: increase）	△ 934	1,667	+2,601
Other	△ 772	△ 1,590	△ 818
Cash flows from investing activities	△ 7,593	△ 11,974	△ 4,381
FCF	△ 3,021	△ 5,179	△ 2,158
Cash flows from financing activities	3,596	5,193	+1,596
Effect of exchange rate change on cash and cash equivalents	△ 182	△ 62	+120
Net increase (decrease) in cash and cash equivalents	393	△ 48	△ 441
Cash and cash equivalents	3,645	3,597	△ 48

YoY +49%

Working Capital Improvement:

+¥1,628 million

Working capital improved thanks to sales expansion, resulting in ¥805 million.
Due to investments to increase production capacity, tangible fixed assets increased by ¥3,839 million, and borrowings increased by ¥5,722 million.

Shareholders' equity was +¥2,961 million thanks to profit increase. Equity ratio was 37.7% (+1.0 pt).

(Million yen)	Mar. 2024 ended	Mar. 2025 ended	Change	(Million yen)	Mar. 2024 ended	Mar. 2024 ended	Change
Current assets	22,682	24,069	+1,387	Liabilities	37,691	41,032	+3,340
Cash and deposits	3,645	3,597	△ 48	Notes and accounts payable - trade	4,009	5,676	+1,667
Notes and accounts receivable - trade	7,222	7,371	△ 48	Notes and accounts payable - trade	4,009	27,731	+5,722
Notes and accounts receivable - trade	7,222	7,371	+148	Borrowings	22,008	27,731	+5,722
Inventories	10,338	11,053	+714	Other	11,673	7,624	△ 4,049
Other	1,475	2,047	+572		0	0	+0
Fixed assets	36,834	41,794	+4,959	Net assets	21,825	24,831	+3,005
Property, plant and equipment	33,862	37,702	+3,839	Shareholders' equity	21,635	24,596	+2,961
Property, plant and equipment	33,862	37,702	+1,011 +108	Valuation and translation adjustments	190 0	24,596
Intangible assets	1,579	2,590				234	+44
Investments and other assets	1,393	1,501				0	+0
Total assets	59,517	65,864	+6,346	Liabilities and net assets	59,517	65,864	+6,346

Cash dividends

For FY2024, the interim dividend was 20 yen and the final dividend will be 25 yen, including a 5 yen commemorative dividend
for the company's 70th anniversary, resulting in a total annual dividend of 45 yen.
(Yen)
Commemorative Dividend: ¥5
40
40
40
30
20
20
20
20
20
50
Dividends per Share
45
40
30
20
10
0
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
(Forecast)

Contents
1. FY2024 Business Results

2. FY2025 Business Forecast

3. Future outlook and progress of the mid-term management plan

4. Sustainability Activities

The semiconductor market is expected to continue to grow, driven by AI-related demand.
Sales for FY 2025 are expected to be a record high of ¥41,500 million , an increase of ¥2,834 million (+7%).
Large-scale capital investments based on the mid-term plan have been completed in FY 2024.
FX Rate
¥153/$
¥145/$

Counting the full-year impact of increased fixed costs due to the start of operation of large facilities, operating profit of ¥3,200 million and profit of ¥2,300 million are expected.

(Million yen)	FY2024 Results	FY2025 Forecasts	Change	%
Net sales	38,665	41,500	+2,834	+7%
Operating profit	4,103	3,200	−903	△22%
Ordinary profit	3,997	3,000	−997	△25%
Profit	3,279	2,300	−979	△30%

Sales continue to increase, mainly for materials for cutting-edge semiconductors.
For the full year, profits are expected to decrease due to increased fixed costs resulting from the start of operation of large facilities, but in the second half alone, profits are expected to recover to the same level as the previous year thanks to increased sales.
Half-Year Forecasts: Sales & Operating profit
Net sales
Operating profit
18,743
19,921
+13%, +¥2,500 million
22,000
19,500
16,901
15,055
2,214
2,178
1,924
1,297
+46%
+¥600 million
1,900
1,300
FX Rate ¥153/$
FX Rate ¥145/$
1H
2H
1H
2H
1H
2H
FY2023
FY2024
FY2025 (Forecasts)

(Million yen) (Million yen)
25,000
20,000
15,000
5,000
4,000
3,000
10,000 2,000
5,000 1,000
0 0

Variance Analysis: FY2025 Operating profit Forecast
Despite a ¥3 billion increase in depreciation, personnel and other expenses, and ¥220 million impact from foreign exchange rate fluctuations, an operating profit of ¥3.2 billion thanks to ¥2.3 billion increase in increased sales and increased production are expected.

(Billion yen)

1.40

△0.22

FX Impact

△3.00

0.92

4.10

Increase in

Sales

Effect of Increased Production

3.20

Increased Costs (Depreciation, Personnel, etc.)

Operating profit

FY2024 Results FY2025 Forecast

FY2023 : Capital investment of ¥10.16 billion was made in the Photosensitive Materials R&D/QC Center, expansion of the No.4 Photosensitive Materials Plant, the Administration and Analysis Building at the Flavor and Fragrance Plant, and the indoor filling station at the Awaji Plant.

FY2024 : Capital investment of ¥8.61 billion was made, including the Photosensitive Materials R&D/QC Center (completed in May) and capacity expansion at the No. 4 Photosensitive Materials Plant (completed in September). All major investments were completed.

FY2025 Plan : Capital expenditures, including enhancement of existing facilities, are planned at ¥4.87 billion (down ¥3.73 billion from the previous year). Depreciation is planned at ¥5.17 billion due to the start of operation of new facilities and MES.

(Billion yen)

CAPEX

Depreciation R&D Expenses

10.16

8.61

CAPEX

5.20

4.87 5.17

Depreciation

3.052.57

1.02

2.79

1.07

2.89

1.26

3.71

1.70

1.93

R&D

CAPEX, Depreciation, and R&D

FY2021 FY2022 FY2023 FY2024 FY2025

(Plan)

Flavor and Fragrance Plant's Administration and Analysis Building (Completed in August 2023）

Photosensitive Materials R&D/QC Center (Completed in May 2024)

Awaji Plant's No.2 Indoor Filling Station (Completed in March 2024)

Capacity Expansion of No.4 Photosensitive Materials Plant (Completed in September 2024)

Flavor and Fragrance Plant's Administration and Analysis Building
(Investment: Approx. ¥0.3 billion）
Improving Analysis, Workplace, and Supply Stability
Awaji Plant's No.2 Indoor Filling Station (Investment: Approx. ¥1 billion)
Shipment Capacity of High-Purity Solvents for Semiconductors Tripled
Photosensitive Materials R&D/QC Center (Investment: Approx. ¥3 billion)
Integrated R&D and Quality Control to Significantly Strengthen Manufacturing Technologies and Analytical Capabilities
Capacity Expansion of No.4 Photosensitive Materials Plant (Investment: Approx. ¥12 billion)
Production Capacity for ArF and EUV Materials Expanded
1.8x (vs. FY2021)
- Completion of production line for materials for cutting-edge semiconductors (ArF, EUV) in September 2024, completing all
  major capital investments under Beyond 500 (current mid-term plan).
- For FY2025, aiming at maximum use of the completed facilities and establishing a stable supply system that meets cutting-edge quality standards.
  
  FY2023
  Production Capacity for ArF and EUV Materials Expanded 1.8x
  FY2024
  Product Certification
  FY2025 Plan
  Photosensitive Materials Segment
  Capacity Expansion of No.4 Photosensitive Materials Plant
  Strengthening Development Capabilities

Photosensitive Materials R&D / QC Center

Mass Production Start

Completed in May 2024 / Investment: Approx. ¥12 billion

Start of Operations

Chemicals Segment

Shipment Capacity of High-Purity Solvents for Semiconductors Tripled

Awaji Plant's No.2 Indoor Filling Station

Completed in May 2024

Confidential

Product Certification Completed in March 2024

MES: Start of Operation: April Expansion of Existing Facilities

Start of Operations

Enhancement of Shipping Capacity

Flavor and Fragrance Plant's Administration and Analysis Building

As miniaturization progresses, the manufacturing difficulty of photoacid generators and polymers (raw materials for
photoresists) also becomes more sophisticated.
In addition to increasing production capacity, developing manufacturing and analysis technologies and promoting DX for visualization of manufacturing data, aiming to establish a supply system with stable quality for the next generation.
Technology Roadmap
CY2020 2023 2025 2027 2029 2031
5nm
3nm
2nm
1.4nm
A10 (1.0nm)
A7 (0.7nm)
Photoacid Generator (PAG)
Our Products

Lithography

EUV Exposure

High-NA EUV

Confidential

Polymer

Visualization of manufacturing data and sophistication of analysis technology to develop a data base for manufacturing quality
improvement.

Improve productivity by sharing various types of data in an easy-to-understand manner through BI.

Improvements in Quality, Supply Capability,

and Productivity

Analysis

Data Visualization

MES

Development of

Analytical Technologies

＊Manufacturing Execution System

Confidential

2211

For FY2025, interim and year-end dividends of 20 yen each, for a total annual dividend of 40 yen are forecasted.
(Yen)
50
Dividends per Share
40
40
Commemorative Dividend: ¥5
40
30
20
20
20
20
20
45
40
30
20
10
0
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
(Forecast)

Contents
1. FY2024 Business Results

2. FY2025 Business Forecast

3. Future outlook and progress of the mid-term management plan

4. Sustainability Activities

Semiconductor Market Growth and Outlook

The semiconductor market has expanded 30 times over the past 40 years (CAGR 9%).
Growth is expected to continue, reaching $1 trillion by 2030 and $5 trillion by 2050.
（Billion USD）
5,000
4,500
4,000
2006
Semiconductor Market

Current
3,500
3,000
2,500
Launch of AWS
2007
Release of iPhone
1993
Launch of Mobile Phone
Services

2016

2022

Announcement of ChatGPT

2,000

1,500

1,000

500

1995

Release of Windows 95

AI (AlphaGo) defeats Lee Sedol

Phase1: IT Adoption

Phase2: AI & Virtualization

Phase 3: Automation & Autonomy

Semiconductor Market & Business Growth

Projected growth of +19% in 2024 and +11% in 2025.
Sales grew steadily along with the expansion of the semiconductor market.
In order to continue to support the evolution of semiconductors, continue to research and develop new materials that support miniaturization and high integration as developing manufacturing technologies, enhancing quality control as well as improving productivity by maximizing use of our increased capacity facilities, then ensure a stable supply of high quality products.
(Billion yen)
Our Net sales
+11%
+19%
Semiconductor Market
TGC300
Beyond500
Next Mid-Term Plan

60
Our Sales & Semiconductor Market Trends
(Billion USD)
1,200
50 1,000
40 800
30 600
20 400
10 200
0 0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Demand for EUV photoresists will grow 7.5 times from 2023 to 2030 at a CAGR of 33%.
Demand for photoresists (KrF+ArF+EUV) is also expected to expand 1.8 times from 2023 to 2030.
The Chiba Plant's No.4 Photosensitive Materials Plant has increased capacity by 1.8 times.
(1,000 gallons)
2,500
2,000
1,500
Photoresist Market Long-Term Forecast
Expand to 1.8x (CAGR 9%)
CAGR (2023 - 2030)
EUV Resist: 33%
ArF Resist: 8%
1,000
500
KrF Resist: 7%
0
CY2023 2024
Results
2025 2026 2027 2028 2029 2030
Forecasts
Source: Fuji Chimera Research Institute, Inc
Display area demand is forecast to continue to grow at a moderate 4% average annual growth rate.
Area demand is expected to expand by 1.2 times between 2023 and 2028.
Demand for photosensitive materials/high purity solvents is on the rise thanks to the increasing size of TVs and the spread of high-definition products.
(M m2) 350
280
Display Market Long-Term Forecast
Expanded 1.2x (CAGR 4%)
CAGR (2023 - 2028)
OLED: 15%
210
140
LCD: 4%
70
0
CY2023 2024 2025 2026 2027 2028
Results Forecasts
Source: Counterpoint

Completion of Major Investment: "Beyond500" Plan
Completion of production line for materials for cutting-edge semiconductors (ArF, EUV) in September 2024, completing all
major capital investments under Beyond 500 (current mid-term plan).
For FY2025, aiming at maximum use of the completed facilities and establishing a stable supply system that meets cutting-edge quality standards.

FY2023

Production Capacity for ArF and EUV Materials Expanded 1.8x

FY2024

Product Certification

FY2025 Plan

Photosensitive Materials Segment

Capacity Expansion of No.4 Photosensitive Materials Plant

Strengthening Development Capabilities

Photosensitive Materials R&D / QC Center

Mass Production Start

Maximizing Use of New

Facilities

Completed in May 2024 / Investment: Approx. ¥12 billion

Start of Operations

Chemicals Segment

Shipment Capacity of High-Purity Solvents for Semiconductors Tripled

Awaji Plant's No.2 Indoor Filling Station

Completed in May 2024

Confidential

Product Certification Completed in March 2024

MES: Start of Operation: April Expansion of Existing Facilities

Start of Operations

Enhancement of Shipping Capacity

Flavor and Fragrance Plant's Administration and Analysis Building

Progress of Mid-Term Plan "Beyond500"

Beyond500 (FY2026)

Net sales: ¥50 billion

Operating profit: ¥8 billion

（OP Margin 16%）

Targets vs. Actuals

11%

OP Margin

15% 15%

(Billion yen)

Net sales Oprating profit

+¥2.83 billion

41.50

38.66

50.00 (Billion yen)

8.00

33.14 34.15 31.95

4.62 4.96

20 3.51

4.10

3.20

6 • The semiconductor market is expected to continue to grow over the medium to long term.

In order to expand supply, mass production operation of
4 new facilities started in FY 2025.
Maximizing use of the completed facilities, then aiming for

2 a stable supply system that meets the most cutting-edge quality standards.

FY2021 FY2022 FY2023 FY2024 FY2025

Confidential

Beyond500

(Forecast)

FY2026

(Target)

CAPEX Plan and Subsidy Approval for Future Growth

Capital investment is planned for 2027~2029 to further expand supply capacity.
Approved as a project eligible for funding under the METI's Economic Security (November 29, 2024).
Production capacity for photosensitive materials and polymers is expected to expand 1.4 times compared to FY2024.
In anticipation of future demand for semiconductors, aiming to secure production capacity after the current mid-term plan as securing stable supply of cutting-edge quality products that support market growth.

	Production Site	Planned Supply Start	Planned Production Capacity	Planned Investment Amount
Photosensitive Materials Segment	Chiba Plant	April 2029	Plan to expand production capacity of photosensitive materials and polymers to 1.4x FY2024 level.	Approx. ¥21.1 billion Maximum Grant Amount: Up to ¥7 billion
Chemicals Segment	Ichikawa Plant	September 2027	To establish a stable production system for photosensitive materials and polymers, enhance the production capacity of high-purity solvents.
Chemicals Segment	Awaji Plant	September 2027

Overview of the Supply Security Plan (Eligible for Grant Support)

Chiba Plant

Ichikawa Plant Awaji Plant

Confidential

Company analysis

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