Toyo Gosei Co., Ltd.TSE: 4970

FY2024 Q3 Business Results Presentation Material (from April 1, 2024 to December 31, 2024)

Feb 13, 2025 at 2:59 AM UTC · Issued by Toyo Gosei Co., Ltd.

Business Results for the Third Quarter of Fiscal Year Ending March 31, 2025

(April 1, 2024 － December 31, 2024)

February 7, 2025

Financial Results for the Q3 FY2024

Net sales increased significantly by 26% YoY to 29,073 million yen, mainly thanks to sales expansion in materials for cutting-edge semiconductors against the backdrop of robust AI-related investment.
Although fixed costs increased significantly due to the completion of new facilities and increased personnel, operating profit increased 17% YoY to 3,067 million yen, as the increase in sales absorbed the increase in fixed costs.

				(Cumulative)

	Q3 FY2023	Q3 FY2024	YoY
(Million yen)	Results	Results	Change	YoY

Net sales	23,095	29,073	+5,978	+26%
Operating profit	2,628	3,067	+438	+17%

Ordinary profit	2,529	3,103	+573	+23%
Profit	1,724	2,087	+363	+21%


FX Rate (USD)	￥143/$	￥152/$

Variance Analysis: Operating profit

Increased sales will increase profits by 2.82 billion yen, and increased production will reduce costs.
In the third quarter of the previous year, costs rose due to a decline in demand, resulting in a 0.6 billion yen inventory valuation decrease compared to the previous year.
Fixed costs increased by 1.89 billion yen due to the completion of new facilities and increased personnel in preparation for future supply expansion.
Absorbing these increased expenses, operating income was 3.06 billion yen, 17% up from the previous year.
Aiming to expand investment effects in the next fiscal year and beyond.

(Billion yen)	+2.82	+0.11	−0.60
					−1.89

			FX
				Inventory valuation
				reduction due to
				increased production
2.62						3.06	+17%
			Increase in			¥+0.44 Billion
		Sales Growth			depreciation, labor
	Operating			costs, etc. due to the		Operating

				completion of new
	Profit				facilities		Profit

Q3 FY2023	Q3 FY2024
	Copyright © Toyo Gosei Co., Ltd. All rights reserved.	3

Quarterly Sales & Operating profit Trends

Quarterly sales reached record high thanks to increased sales of materials for cutting-edge semiconductors.
Sales expansion absorbed the increase in fixed costs associated with the completion of the new facility and secured profits.

(Million yen)	Quarterly Trends
(Million yen)

12,000	Net sales		Operating profit
								10,330

8,000
4,000										889

0
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	FY2022			FY2023			FY2024

3,000

2,000

1,000

Fixed Costs Increased by 0.77 billion yen YoY

Photosensitive Materials Segment

Net sales & Operating profit

(Million yen)						(Million yen)	Net sales: ¥17,675 Million (Cumulative)
8,000								2,500
Net sales	Operating profit
					YoY: +¥3,899 Million, +28%

							6,472		• Quarterly sales reached record high.
							2,000	• Sales of semiconductor materials expanded thanks to
						5,917
6,000				5,615				increased demand in cutting-edge fields driven by AI-related

				5,285
								investment.
	4,832
	4,466	4,477					1,500	• Regarding display materials, panel production has been

4,000									maintained at a certain level, mainly in China, and our sales

			913					1,000	have been firm.

2,000	574				630				Operating profit: ¥1,421 Million (Cumulative)
			446		399	390		YoY: −289 Million, −17%
					500

		222							• Fixed costs increased as new large-scale facilities were
									completed to expand supply in cutting-edge fields.
0	Q1	Q2	Q3	Q4	Q1	Q2	Q3	0	• Profit levels will be maintained thanks to increased demand
		for cutting-edge materials.

		FY2023			FY2024

Chemicals Segment

Net sales & Operating profit

(Million yen)						(Million yen)	Net sales: ¥11,398 Million (Cumulative)
5,000							1,500
Net sales	Operating profit
				YoY: +¥2,078 Million, +22%

								• Sales of high-purity solvents increased thanks to higher
4,000					3,930	3,610	3,857	demand for semiconductors and recovery of demand for
			3,563				electronic components.

				3,245			1,000	• Sales of fragrance materials increased thanks to continued
		2,977
3,000	2,778						recovery in demand.

					671			• Regarding tank terminals, cargo movement is sluggish, but
							the tank contract rate remains at a high level.
2,000
			437		476	498
			417		500
					Operating profit: ¥1,645 Million (Cumulative)

1,000		240						YoY: +¥728 Million, +79.3%
	260							• Profits increased significantly thanks to increased sales of

								high-purity solvents.
0							0
	Q1	Q2	Q3	Q4	Q1	Q2	Q3
		FY2023			FY2024

Q3 FY2024 Income Statement

Net sales were 29,073 million yen (YoY 26% up).
Gross profit increased by 1,126 million yen (YoY 20% up) from the previous year, as increased sales absorbed the increase in fixed costs.

• Ordinary profit was 3,103 million yen, 23% up from the previous year.	(Cumulative)

(Million yen)	Q3 FY2023	Q3 FY2024	Change	%

Net sales	23,095	29,073	+5,978	+26%
Cost of sales	17,439	22,291	+4,851	+28%
Gross profit	5,656	6,782	+1,126	+20%
SG&A expenses	3,027	3,715	+687	+23%
Operating profit	2,628	3,067	+438	+17%
Non-operating income	118	208	+90	+77%
Non-operating expenses	216	172	(44)	(20%)
Ordinary profit	2,529	3,103	+573	+23%
Extraordinary income & losses	(27)	(85)	(58)	－
Profit before income taxes	2,502	3,017	+515	+21%
Income taxes	778	930	+152	+20%
Profit	1,724	2,087	+363	+21%

Gross profit Margin 24.5%→23.3%

Ordinary profit Margin 10.7％

Q3 FY2024 Balance sheet

Thanks to the continued trend of sales expansion, working capital improved by 630 million yen.
Due to capital investments to increase production capacity, tangible fixed assets increased by 4,197 million yen, and borrowings increased by 3,075 million yen.
thanks to the increase in net profit, shareholders' equity increased by 1,769 million yen. The equity ratio was 35.6%.

(Million yen)	Mar. 2024	Dec. 2024	Change	(Million yen)	Mar. 2024	Sep. 2024	Change
ended	ended	ended	ended

Current assets	22,682	24,620	+1,937	Liabilities	37,691	42,651	+4,959

	Cash and deposits	3,645	3,581	(64)	Notes and accounts	4,009	6,018	+2,008
	payable - trade

	Notes and accounts	7,222	8,071			22,008	25,083
	+848	Borrowings	+3,075
	receivable - trade

	Inventories	10,338	10,868	+530	Other	11,673	11,549	(123)

	Other	1,475	2,098	+623

Fixed assets	36,834	41,639	+4,805	Net assets	21,825	23,608	+1,783

	Property, plant and	33,862	38,060	+4,197	Shareholders' equity	21,635	23,405		+1,769
	equipment
	1,579	2,275		Valuation and translation	190	203
	Intangible assets	+696	+13
	adjustments

	Investments and other	1,393	1,304	(88)
	assets

Total assets	59,517	66,260	+6,742	Liabilities and net assets	59,517	66,260	+6,742


						Copyright © Toyo Gosei Co., Ltd. All rights reserved.	8

Progress of Full-Year Earnings Forecasts

Q3 progress rate against the full-year forecasts is 76% for net sales, 85% for operating profit, 89% for ordinary profit, and 83% for profit.
Fixed costs are expected to continue to increase in Q4 due to the operation of new facilities.
Aiming to expand investment effects in the next fiscal year and beyond.

(Million yen)	FY2024 Full-Year	Q3 FY2024	Progress
	Forecasts	Results	Ratio
Net sales	38,200	29,073	76%

Operating profit	3,600	3,067	85%

Ordinary profit	3,500	3,103	89%

Profit	2,500	2,087	83%

FX Rate (USD)	¥148/$	¥152/$

Repost) 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 Fixed Costs due to Increased Production Capacity

(Billion yen)

+1.07

+0.98

Increase in depreciation, labor costs, etc. due to operation of new facilities

H1H2

FY2023

H1	H2 (Plan)
	FY2024