FY2025 Q3 Business Results Presentation Material (from April 1, 2025 to December 31, 2025)

‌Business Results for the Third Quarter of Fiscal Year Ending March 31, 2026

(April 1, 2025 - December 31, 2025)

February 6, 2026

Toyo Gosei Co., Ltd. Securities Code: 4970

‌FY2025 Q3 Financial Highlights

• New facilities for advanced semiconductor materials are progressing toward product qualification, with operations and shipments increasing.

• Net sales increased 5% YoY to ¥30,408 million, supported by steady sales of advanced semiconductor materials.

• Operating profit declined 32% YoY to ¥2,071 million, mainly due to ¥1.93 billion in increased costs (depreciation, headcount expansion, etc.) from the start-up of new facilities for advanced semiconductor materials.

  (Million yen)	FY2024 Q3 Results	FY2025 Q3 Results	YoY
  			Change	%
  Net sales	29,073	30,408	+1,335	+5%
  Operating profit	3,067	2,071	(995)	(32%)
  Ordinary profit	3,103	1,990	(1,112)	(36%)
  Profit	2,087	1,357	(729)	(35%)
  EPS	¥263.00	¥171.04
  FX Rate (USD)	¥152/$	¥149/$

  
  
  ‌Quarterly Sales & Operating Profit Trends

  • Q3 net sales increased on higher sales of advanced semiconductor materials, reaching a record high.

  • Q3 operating profit recovered from the Q1 low to ¥1,134 million, doubling QoQ (+¥595 million).

    (Million yen)

    Net sales

    Operarting profit

    11,059

    2,000

    1,500

    1,134

    1,000

    +0.59 billion Doubling QoQ

    500

    1Q

    2Q

    3Q

    4Q

    1Q

    2Q

    3Q

    4Q

    1Q

    0

    FY2024

    2Q

    FY2025

    3Q

    FY2023

    
    
    

    12,000

    Quarterly Sales & Operating Profit Trends

    (Million yen) Record high

    9,000

    6,000

    3,000

    0

    
    
    ‌Variance Analysis: Operating profit

  • Higher shipments for advanced semiconductor materials increased sales, and the resulting production ramp-up contributed to

    a ¥0.96 billion increase in profit.

  • Depreciation and personnel expenses increased ahead of sales growth, and the launch of the Manufacturing Execution System added further costs, bringing the total increase to ¥1.93 billion.

  • Operating profit reached ¥2.07 billion, as absorption of start-up costs related to the new facilities gradually improved.

＋0.61 +0.35 −0.02 −1.93

(Billion yen)

3.06

Operating profit

(Previous FY)

Increase in Sales

Production Increase Effect

Impact of Yen Appreciation

Increased costs due to capacity expansion

−32%

¥−0.9 Billion

2.07

Operating profit (Current FY)

FY2024 Q3 FY2025 Q3

‌Photosensitive Materials Segment

(Million yen)

Net sales & Operating profit

(Million yen)

7,046

6,472

5,917

6,197

6,427

5,285

5,333

Returned to profitability

334

(71)

(233)

Q1

Q2

Q3

Q4

Q1

FY2024

Q2

FY2025

Q3

630

399

558

390

7500

5000

2500

0

Net sales

Operating profit Record high

1500

1000

500

0

Net sales: ￥18,807 million (Cumulative) YoY : +¥1,132 Million,+6%

• Quarterly net sales reached a record high.

• Demand for AI applications remained strong, increasing sales of

  materials for advanced photoresists

• Sales of display materials remained solid, supported by stable panel production for smartphones and TVs.

  Operating profit: ￥29 million (Cumulative) YoY :-¥1,392 Million,−98%

• New facilities are progressing toward product qualification, and shipments are increasing.

• Higher sales of advanced materials improved fixed-cost absorption,

  resulting in a return to profitability both YTD and in Q3.

• Absorption of costs associated with the start-up of new facilities and the manufacturing execution system (MES) is gradually improving, supporting continued profit recovery.

  Copyright © Toyo Gosei Co., Ltd. All rights reserved. 5

  
  
  ‌Chemicals Segment

  (Million yen)

  3,930

  3,857

  3,610

  Record-high

  sales and profits 4,012

  3,794 3,793

  3,393

  799

  671

  498

  476

  Q1

  Q2

  Q3

  Q4

  Q1

  FY2024

  Q2

  FY2025

  Q3

  477

  611

  630

  4,500

  3,000

  1,500

  0

  Net sales & Operating profit

  Net sales

  Operating profit
  
  

  (Million yen)

  1,500

  1,000

  500

  0

  Net sales: ¥11,601 million (Cumulative) YoY :+¥203 Million,+2%

• Quarterly net sales reached a record high.

• Net sales of high-purity solvents increased thanks to rising demand driven by the spread of generative AI.

• Sales of flavor and fragrance materials decreased due to inventory adjustments in the supply chain and exchange rate impact.

• The tank terminal business remained solid, supported by demand for domestic products as well as steady storage demand for imported products. Inquiries for tanks have remained at high levels.

  Operating profit: ¥2,041 million (Cumulative) YoY :+¥396 Million,+24%

• Quarterly operating profit reached a record high, partly supported by improved product mix.

• YTD profit increased on higher sales of value-added products.

  Copyright © Toyo Gosei Co., Ltd. All rights reserved. 6

  
  
  ‌FY2025 Q3 Income Statement

  • Net sales increased to ¥30,408 million, up 5% YoY.

  • Gross profit decreased YoY due to a ¥1.93 billion increase in expenses-mainly depreciation and headcount expansion-associated with the start-up of new facilities.

  • However, net sales have expanded since bottoming out in Q1, and profits have continued to improve as these expenses have been gradually absorbed.

‌FY2025 Q3 Balance sheet

• Driven by sales expansion, working capital (accounts receivable + inventories − accounts payable) increased by ¥2,125 million.

• Driven by higher profits, net assets increased by ¥1,148 million, and the equity ratio improved to 39.9% (+2.2pt YoY).

• Following the completion of major capital investments, interest-bearing debt decreased by ¥744 million, improving financial

  soundness.

  (Million yen)	Mar. 2025 ended	Dec. 2025 ended	Change	(Million yen)	Mar. 2025 ended	Dec. 2025 ended	Change
  Current assets	24,069	24,417	+347	Liabilities	41,032	39,198	(1,834)
  Cash and deposits	3,597	2,996	(600)	Notes and accounts payable - trade	5,676	5,807	+130
  Notes and accounts receivable - trade							(744)
  	7,371	8,902	+1,531	Borrowings	27,731	26,987
  Inventories	11,053	11,777	+724	Other	7,624	6,403	(1,220)
  Other	2,047	740	(1,307)		0	0	+0
  Fixed assets	41,794	40,760	(1,033)	Net assets	24,831	25,980	+1,148
  Property, plant and equipment	37,702	36,741	(960)	Shareholders' equity	24,596	25,597	+1,000
  Intangible assets	2,590	2,232	(357)	Valuation and translation adjustments	234	382	+148
  Investments and other assets	1,501	1,786	+284		0	0	+0
  Total assets	65,864	65,178	(685)	Liabilities and net assets	65,864	65,178	(685)

  
  
  ‌FY2025 Full-Year Earnings Forecast and Q3 Progress

  • Progress toward the full-year forecasts reached 73% for net sales, 74% for operating profit, 77% for ordinary profit, and 68% for net profit by Q3.

  • Toward the fiscal year-end, we will continue expanding supply of high value-added products and work to further improve our performance.

    	FY2025 Full-Year Forecasts	FY2025 Q3 Results	Progress (%)
    Net sales	41,500	30,408	73%
    Operating profit	2,800	2,071	74%
    Ordinary profit	2,600	1,990	77%
    Profit	2,000	1,357	68%

    
    
    ‌Progress of Capital Expenditures, Depreciation and R&D

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

  • All major capital investments have been completed, and we aim to expand earnings by leveraging the new facilities going forward.

(Billion yen)

12

10

8

6

4

2

0

Capex, Depreciation, and R&D

CAPEX

Depreciation R&D Expenses

10.16

8.61

Capex down 43%

5.20

4.87 5.17

3.05 3.71

2.57

1.02

2.79

1.07

2.89

1.26

1.70

1.93

FY2021 FY2022 FY2023 FY2024 FY2025

(Plan)

Beyond 500

‌Progress of Mid-Term Plan "Beyond500"

Results and Targets

15% 15%

11%

11%

(Billion yen)

50

40

Net sales Oprating profit

+¥2.83 Billion

41.50

38.66

50.00 (Billion yen)

10

8

33.14 34.15 31.95

30

4.62 4.96

20 3.51

10

0

4.10

2.80

• The semiconductor market is expected to continue

  6 growing over the medium to long term.

• To expand supply capacity, mass production operation at

  4 the new facilities began in the fiscal year ending March 2026.

  2 • We will maximize utilization of the completed facilities to expand supply of high value-added products.

• As the final year of the medium-term management plan,

0 we will accelerate profit growth by improving capacity

FY2021 FY2022 FY2023 FY2024 FY2025

(Forecast)

FY2026

(Target)

utilization and stabilizing mass production.

Beyond500

Copyright © Toyo Gosei Co., Ltd. All rights reserved. 11

‌Individual Development, to the global Chemical

Toyo Gosei Co., Ltd.