FY2025 Q2Business Results Presentation Material (from April 1, 2025 to September 30, 2025)

1. Business Results for the H1 FY2025

2. Forecasts for the FY2025

3. Progress of the mid-term management plan and Future Outlook

• Operating cash flow maintained stable at levels consistent with ※EBITDA, with progress in product certification and sample shipments from new facilities.

• Investing cash flow reflects the completion of all large-scale capital investment under the mid-term plan "Beyond500".

  Regular investments and land

  acquisition.

  Repayments and dividend payments.

Note: EBITDA

(Profit before income taxes + Depreciation)

Increase in working capital due to start-up of new facilities and tax refund.

• Financing cash flow shifted to the repayment phase following the completion of all large-scale capital investments, and free cash flow also turned positive.

  (Million yen)	FY2024 H1	FY2025 H1	Change
  Cash flows from operating activities	3,926	3,171	(754)
  Profit before income taxes	2,009	827	(1,182)
  Depreciation	1,576	2,505	+929
  Decrease (increase) in trade receivables （+: decrease）	604	(61)	(665)
  Decrease (increase) in inventories （+: decrease）	(717)	(560)	+156
  Increase (decrease) in trade payables（+: increase）	1,618	(478)	(2,096)
  Other	(1,164)	938	+2,103
  Cash flows from investing activities	(5,500)	(2,972)	+2,528
  FCF	(1,574)	199	+1,773
  Cash flows from financing activities	1,651	(446)	(2,097)
  Effect of exchange rate change on cash and cash equivalents	(61)	(20)	+41
  Net increase (decrease) in cash and cash equivalents	16	(266)	(282)
  Cash and cash equivalents	3,661	3,330	(330)

  
  
  ‌FY2025 H1 Balance sheet

• Thanks to an increase in high-value-added products, working capital (= accounts receivable + inventory − accounts payable)

  increased by ￥1.1 billion.

• Other current assets decreased by ￥1.29 billion due to tax refunds associated with large-scale investments completed in the previous term.

• Other liabilities decreased by ￥1.59 billion because of payments for capital investments.

• The equity ratio was 39.4% (+1.7 pt).

  (Million yen)	Mar. 2025 ended	Sep. 2025 ended	Change	(Million yen)	Mar. 2025 ended	Sep. 2025 ended	Change
  Current assets	24,069	23,125	(943)	Liabilities	41,032	38,844	(2,187)
  Cash and deposits	3,597	3,330	(266)	Notes and accounts payable - trade	5,676	5,198	(478)
  Notes and accounts receivable - trade
  	7,371	7,433	+61	Borrowings	27,731	27,614	(117)
  Inventories	11,053	11,614	+560	Other	7,624	6,031	(1,592)
  Other	2,047	747	(1,299)		0	0	+0
  Fixed assets	41,794	40,994	(799)	Net assets	24,831	25,275	+443
  Property, plant and equipment	37,702	36,938	(763)	Shareholders' equity	24,596	24,968	+371
  Intangible assets	2,590	2,248	(341)	Valuation and translation adjustments	234	307	+72
  Investments and other assets	1,501	1,807	+305		0	0	+0
  Total assets	65,864	64,120	(1,743)	Liabilities and net assets	65,864	64,120	(1,743)

  
  
  ‌Contents

  1. Business Results for the H1 FY2025

  2. Forecasts for the FY2025

3. Progress of the mid-term management plan and Future Outlook

• First-half net sales were roughly in line with forecasts, but profit decreased from the initial plan due to the impact of the lower

  of cost or market method of an approximately ￥0.4 billion valuation loss associated with new facility operations.

• Growth is expected to continue, driven mainly by demand related to generative AI.

• In the second half, profit is expected to increase through higher sales of high-value-added products (unchanged from the initial plan).

• The full-year earnings forecast has been revised downward only to reflect a ￥0.4 billion profit decrease in the first half, while keeping the original net sales forecast of ￥41,500 million unchanged.

  (Million yen)	FY2025 H1			FY2025 Full-Year
  	Initial Forecast	Results	Change	Initial Forecast	Revised Forecast	Change
  Net sales	19,500	19,349	(150)	41,500	41,500	ー
  Operating profit	1,300	937	(362)	3,200	2,800	(400)
  Ordinary profit	1,200	831	(368)	3,000	2,600	(400)
  Profit	800	570	(229)	2,300	2,000	(300)
  FX Rate (USD)	¥145/$	¥146/$		¥145/$	¥145/$

  
  
  

  ‌Progress of FY2025 Revised Full-Year Earnings Forecast

• Progress against full-year forecasts: Net sales 47%, Operating profit 33%, Ordinary profit 32%.

• Profit in the second half is expected to increase through higher sales of high-value-added products

  and expanded production at the new facilities.

  	FY2025 Full-Year Forecasts	FY2025 H1 Results	Progress (%)
  Net sales	41,500	19,349	47%
  Operating profit	2,800	937	33%
  Ordinary profit	2,600	831	32%
  Profit	2,000	570	29%

  
  
  

  ‌Variance Analysis ： FY2025 Forecast vs. FY2024 Result

• Due to partial production cuts in 1H, the production effect diminished.

• Compared with the initial plan, the projected cost increase of ￥3.0 billion was reduced by ￥0.6

  billion to ￥2.4 billion.

• Operating profit is projected at ￥2.8 billion (down ￥0.4 billion from the initial plan).

  
  
  

  Initial Plan: ¥1.4 Billion

  Initial Plan: ¥3.0 Billion

  (Billion yen)

  +0.92 +0.40 −0.22 −2.40

  ￥0.6 Billion in cost reductions

  4.10

  Operating profit (Previous FY)

  Increase in Sales

  Production Increase Effect

  Impact of Yen Appreciation

  Increased costs due to capacity expansion

  Initial Plan: ¥3.2 Billion

  2.80

  Operating profit (Current FY)

  FY2024 FY2025

  
  
  ‌H2 FY2025 Net sales & Operating Profit Forecasts

• The full-year net sales forecast is unchanged from the initial plan, operating profit is revised downward to ￥2.8 billion (−￥0.4 billion).

• Profit recovery is expected in 2H through increased sales of high-value-added products and

  expanded production at the new facilities.

  (Million yen)

  Net sales

  15,055

  16,901

  18,743

  19,921

  22,200

  19,349

  2,214

  1,900

  2,178

  1,925

  1,300

  1,297

  Operating profit

  H1 H2

  H1

  H2

  937

  Result

  H1

  (Result)

  H2

  (Forecast)

  FY2023

  FY2024

  FY2025

  25,000

  20,000

  15,000

  10,000

  5,000

  0

  Semiannual Sales & Operating Profit Trends

  (Million yen)

  4,000

  Initial Plan

  3,000

  2,000

  Revised Forecast

  Initial Plan

  1,000

  0

  
  
  

  ‌Dividend Forecast

• With a basic policy of stable dividends, an annual dividend of ￥40 (interim ￥20) will be maintained

  for the FY2025.

  (Yen) Dividend per Share (DPS)

  50

  40

  30

  20

  10

  0

  *

  45

  commemorative

  40

  40

  dividend of ¥5

  40

  30

  20

  Year-End

  20

  Interim

  20

  Including a

  FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

  (Plan)

  
  
  ‌Contents

  1. Business Results for the H1 FY2025

2. Forecasts for the FY2025

3. Progress of the mid-term management plan and Future 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

  2,000

  1,500

  1995

  Launch of AWS

  2016

  AI (AlphaGo) defeats Lee Sedol

  2022

  Announcement of ChatGPT

  2007

  Release of iPhone

  1993

  Launch of Mobile Phone Services

• • Demand for EUV photoresists will grow 4.0 times from 2024 to 2030 at a CAGR of 25%.

  • Demand for photoresists (KrF + ArF + EUV) is also expected to grow 1.4 times over the same period.

  • Our capacity also increased through expansion at the No.4 Photosensitive Materials Plant, Chiba Factory.

    (Million gallon)

    25

    20

    15

    10

    5

    0

    Long-Term Outlook for the Photoresist Market

    1.4× growth (CAGR 6%)

    CAGR (2024~2030) EUV: 25%

    ArF: 5%

    KrF: 6%

    CY2024 2025 2026 2027 2028 2029 2030

    Result Forecast

    Source: Fuji Chimera Research Institute, Inc

    Copyright © Toyo Gosei Co., Ltd. All rights reserved. 20

    
    
    

    ‌Semiconductor Market & Business Growth

• When the mid-term plan was formulated, the semiconductor market was expected to grow at an annual average rate of around 8%.

• However, due in part to demand adjustments in 2023, the actual average annual growth rate for 2021-2025 is 6%.

• Our sales have also trended in line with the semiconductor market's growth rate.

  (Billion yen)

  Byond500

  Sales Target：￥50 Billion

  +19%

  +11%

  Semiconductor Market Assumptions

  (at the Time of Mid-Term Plan Formulation)

  Semiconductor Market

  TGC300

  Beyond500

  Next Mid-Term Plan

  Our Net sales

Restated from Financial Presentation Materials for the Fiscal Year Ending March 2025

• 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

  Our Products

Lithography

• 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

  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

  Copyright © Toyo Gosei Co., Ltd. All rights reserved. 23

  
  
  

  Restated from Financial Presentation Materials for the Fiscal Year Ending March 2025

• Investment, depreciation, and R&D expenses remain unchanged from the initial plan.

• All large-scale Capex under current mid-term plan (Beyond 500) completed; capex down 43% YoY this fiscal year.

• Depreciation has increased with the start-up of the large-scale facilities, and aim to expand earnings by fully utilizing the new equipment going forward.

Capex (Cumulative): ¥28.84 billion

Depreciation increased with start-up of operations.

Beyond500 (FY2026)

Net sales: ¥50 billion

Operating profit: ¥8 billion (OP Margin 16%)

Capex: ¥30 billion (Total for the Mid-Term Plan Period)

OP Margin

(Note):

The forecasts presented in this document are based on information currently available and certain assumptions deemed reasonable at the time of preparation.

As such, they involve various uncertainties, and actual results may differ materially from those projected due to factors such as changes in the economic environment or market conditions surrounding the company. These forecasts are not intended to constitute guarantees or promises of future performance.