Tokyo Ohka Kogyo Co., Ltd.

I am Taneichi, the president of Tokyo Oka Kogyo Co., Ltd. Thank you for joining us today in this busy month of December, 2023. Before I begin, I would like to express my sincere condolences to those who were affected by the Noto Peninsula Earthquake in June 2020. In response to the rapid recovery, we would like to express our gratitude for your support. In addition, our business has not been affected by the disaster. Now, I would like to begin my presentation based on the materials I have at hand. According to the report, on December 12, 2023, I will explain the progress of the TOK medium-term plan 2024 in the following order. Today, I will explain the progress of the TOK medium-term plan 2024. Today, I would like to explain the review of our long-term vision, TOK Vision 2030. First of all, I would like to explain the summary of 2023 in this slide. In December 2023, we saw a sign of recovery in the semiconductor market in the second half of the year, but through the first year, This year has been a year that has been strongly affected by the harsh demand environment of the semiconductor market. As a result, the sales volume is 1,622 billion yen, which is 13.1 billion yen per year. The operating profit is 22.7 billion yen, which is 7.4 billion yen per year. Next, The market environment in December of 2024 is expected to recover the semiconductor market by increasing demand for all kinds of final products through the full-scale expansion of AI generation. In this kind of market situation, our group is looking forward to increasing the use of our products, We are expecting a V-shaped recovery from last year due to the start of the operation of the new customer factory. Based on these assumptions, we have estimated that this year's business performance will be a large-scale increase and increase in sales by 17.92 billion yen, with a sales profit of 26.8 billion yen. In order to achieve a stable and sustainable return on profits, we have established the so-called DOE 4.0% return policy, which is a so-called DOE 4.0% return policy, which is a so-called DOE 4.0% return policy, which is a so-called DOE 4.0% return policy, which is a so-called DOE 4.0% return policy, which is a so-called DOE 4.0% return policy, which is a so-called As a result, the annual disbursement in 2023 will be an increase of 168 yen for six consecutive units. In January 1, 2024, we divided the shares into three parts, each of which was a normal share. As a result, this year's disbursement money We expect to receive a total of ¥29 per share for the end of the year and ¥58 per share for the year-round. In addition, we expect to receive a total of ¥3,000 per share for the year-round. I will explain the content of this presentation in another slide. Now, I will explain the results of the joint settlement in December 2023. The sales volume in December 2023 was 16.22 billion yen, as reported earlier. Although there was a positive effect on the exchange rate, The main cause of this is a strong impact on semiconductor production adjustment, which has deteriorated from the beginning of the year. The operating profit was 22.7 billion yen, which is the current profit of 7.4 billion yen per year. I will explain the details later. In addition to the reduction in operating profit of the current operating profit, which belongs to the parent company shareholders, Next, Today, I would like to explain the different types of electronic functional materials. In terms of the different types of sales cost, the cost of the cutting materials and the cost of the semiconductor post-processing materials has increased. In terms of the different types of sales costs, the legacy materials, such as G-SEN and i-SEN resist, The previous year's cost was minus 10%. The KRF register is now minus 5%. On the other hand, the end material including the ARF and EUV register is the beginning. This means that the EUV register has been increased by 15% due to the expansion of the share by the new year. The ARF register has been strongly affected by semiconductor production and has been reduced by 5%. In addition, the semiconductor post-processing related materials have been reduced in the previous year. The package register, which is a component, has been reduced by 5%. The MEMS material has a negative 10% and a negative growth, but the WHS-related material has a positive 40%. As a result, you can see the cost of each product in terms of electronic functional materials. Next, I would like to explain the increase and decrease in operating profits. The operating profits of 2022 include 29.3 billion yen, excluding the total operating profit, and 6.6 billion yen in interest. Due to the impact of semiconductor production, The sales of electronics functional materials and high-priced chemical drugs have decreased, resulting in 5.2 billion yen. Next, the total cost of the exchange rate and the increase of the sales adjustment have increased to 1.4 billion yen. Finally, in terms of expenses, As a result of the increase in fuel consumption and research and development costs, we have seen a decline of 2.8 billion yen. As you can see, we are talking about sales loss and special loss. This graph shows the sales growth rate for each quarter. As for the December fiscal year of 2023, I would like to explain the current status of Kyuon-Kyu Co., Ltd. The orange-colored Electronics functional materials were in a difficult market environment, but the efforts of the shares and factories have led to results, and the first quarter is slowly recovering there, and the fourth quarter is selling at the same level as the previous year. As you can see in the blue color, high-priced chemical drugs have been affected by the same strict regulation as electronic functional materials, but the recovery tendency has become clear in the second half of the year. As you can see in the slide, the equipment investment, raw material incineration expenses, and research and development expenses. I will continue to explain the sales forecast for the December fiscal year of 2024. First of all, the total sales of this fiscal year is expected to be the highest in the past 17.92 billion yen, which is an increase of 1.69 billion yen in the previous fiscal year. As for the fiscal year, Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. is expected to have a sales profit of 26.8 billion yen, which is an increase of 4 billion yen. I will explain the difference between the increase and the decrease later. In addition, the default price is $1.135. Next, I would like to explain the cost of sales for each type of electronics. The cost of sales for each type of electronics is 5% per year for legacy materials, 10% for KRF resist materials, and 15% for cutting-edge materials. In particular, we believe that the cutting-edge materials will continue to improve with the expansion of product shares and the creation of AI. The EUV register is expected to be plus 35% and the ARF register is expected to be plus 10%. In addition, for semiconductor post-processing related materials, added 15% to the previous year's budget. The package register, which is the component factor, added 10%. The MEMS material added 20%. The WHS related material added 40%. It is expected that the momentum of the Shimo period of 2023 will continue as it is. Next, I would like to explain the increase and decrease in operating profits. I would like to explain the increase and decrease of 4.1 billion yen in operating profits in December 2023 and December 2024. First of all, by increasing the sales value of electronics functional materials and high-priced chemical drugs, the increase in revenue is 1.3 billion yen, and the effect of the change in price and sales adjustment is estimated at minus 3.6 billion yen. In addition to the current revenue due to the change in price, This is because we expect to see an increase in volume discounts and so on. As for the increase in expenses, it is due to a decrease in profits of 5.3 billion yen. This is due to the change in cost of fuel and human resources, as well as the increase in human resources and human resources, as well as the change in the cost of building the global supply chain, This graph shows sales performance and expectations for each half-year. Kami-Ki is expected to be almost at the same level as the 23-year-old Shimo-Ki, taking into account the performance of customer stock adjustment and seasonality. However, from the Shimo-Ki point of view, electronics functional materials, is expected to sell at the highest level in the past with high-quality chemical drugs. I would like to explain the equipment investment, raw material incineration expenses, and research and development expenses. This year's equipment investment will be implemented in line with the TOK medium-term plan, which was announced in February 2022, We are planning to invest the largest amount of 2.73 billion yen in the past year. As you can see, we are investing in the fuel-emitting and research and development expenses. Next, I would like to report on the progress of the TOK medium-term plan 2024. This slide shows In the review of the TOK Vision 2030, which was announced yesterday, it shows how the company groups that have been closed down are contributing to the changes in the social environment. I will explain the details in the review of the TOK Vision 2030. The product portfolio of our group is determined to realize a prosperous future. We would like to further grow by contributing to the development of four fields such as information terminal, cloud, sensing and IoT, and green energy. To be more specific, we would like to develop the product portfolio In order to meet the expectations of society in terms of science, we have set five strategies in the TOK Mid-term Plan 2024 and are promoting our activities. In December 2024, the TOK Mid-term Plan 2024 will be the final year, and the achievements of our efforts so far, I would like to explain the landing forecast. First, I would like to talk about the progress of the industry in terms of mass production targets. As you can see, the December fiscal year of 2023 was a result of rapid deterioration of the semiconductor market. However, the forecast for this fiscal year, which is the final year of the mid-term, This is a standard that almost achieves the target value. In addition, as a material business, it is expected to achieve the target value of the medium-term plan. Next, it is the progress of equipment investment, raw material incineration expenses, and research and development expenses. We are planning to build a business base to respond to the semiconductor demand environment that is growing at our feet. This slide shows the investment projects that are currently in progress. As for the acquisition of industrial land in Pyeongtaek, Korea, which was announced yesterday, is a part of the strategic investment that aims to realize the TOK Vision 2030, and we are also promoting activities that will definitely link these investments to business growth. Next is the progress of the semiconductor pre-processing photoregist. The details are as described, but the progress is roughly as planned, is at a level where it can achieve the target value by improving global share. Next, we will look at the progress of post-processing related materials. In addition to the progress as planned, with the expansion of the usage area of cutting-edge packages such as AI, is expected to be able to reach its goal at a high level. Next, we will look at the progress of high-frequency chemical drugs. The main material is a material that is greatly affected by the factory operation situation of customers, but the results of powerful business activities have been seen in Taiwan, China, and Japan, is expected to achieve the target value of the base. As for the device business, last March, the device business, including part of it, was assigned to i-MECATEC. As for the new business, as you can see, by continuing to strengthen the marketing function, We will continue to measure the rapid development of our business. Next, I would like to talk about our efforts to improve the sustainability of our corporate value. Last August, we reported on our website that our company has been implementing the Mochikabukai system, which has been limited to domestic employees, has introduced the Tokyo-Oka Global Employee Compensation System, a system that anyone can join if they are an employee of our group. The details are as described here. By fully utilizing this system, we will reduce the employee's interest in the company's profits from our group, This is an image of the landing page of the cash flow plan for the third quarter. The cash loss power lost in the third quarter of the medium-term period We have prioritized the future investment in equipment and growth, and have not changed the policy of distributing the capital to the owner. This is a slide related to the owner's return. Our group does not depend on the stock market. In order to provide stable and sustainable profits to our shareholders, we have adopted the so-called DOE 4.0% return policy. In addition, we are also working hard to acquire self-sufficiency stocks. These two policies will be implemented, and we will measure the balance between the growth of our group and those of our shareholders. Finally, I would like to introduce two examples of initiatives aimed at sustainable companies with high growth and consideration for the global environment. This slide shows the results of our research on EBITDA, which is the main result of our research. As you can see, our research group carried out a research development that took the seeds ahead of time, and we can see that the output of the cash has definitely increased. In the future, we will continue to improve our research and development by taking the seeds ahead of time. Finally, I would like to explain our efforts to achieve carbon neutrality. In February 2022, we will launch GHG in 2050. Co., Ltd. Co., Ltd. Co., Ltd. We will continue to promote business activities that consider the global environment for the realization of carbon neutrality in 2050. This concludes the explanation of the progress of the mid-term TOK project in 2024.