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, 2025. Now, I would like to begin the explanation of the settlement based on the materials at hand. According to the report, after explaining the summary of the December of 2025, the results of the December of 2025, and the expected results of the December of 2026, we will explain the TOK medium-term plan 2027, which we reviewed today. First, In this slide, I will explain the Summary of the December fiscal year of 2025. In the December fiscal year of 2025, we will consider the expansion of the electronics market, such as the demand increase related to AI generation, and the increase in sales, operating profits, business profits, management profits, and the net profit of the parent-company shareholders. has updated the history of our company in two consecutive years. Next, as for the December period of 2026, we are looking forward to the growth of cutting-edge semiconductor materials from the continued high demand for AI-related production and the start of new construction and operation of customers. As for the estimated exchange rate for the year 2026, It is expected to increase and decrease in price by $1.50. It is expected to increase and decrease in price by $1.50. It is expected to increase and decrease in price by $1.50. It is expected to increase and decrease in price by $1.50. It is expected to increase and decrease in price by $1.50. It is expected to increase and decrease in price by $1.50. It is expected to increase and decrease in price by $1.50. According to the Dispensary Policy, the end-of-year disbursal in 2025 is expected to be 37 yen. This means that the annual disbursal is expected to be 72 yen for 8 consecutive disbursals. In addition, regarding this year's disbursal, has maintained the DOE 4.0% and is expected to receive 40 yen each for the mid-term and end-term disbursements. The annual disbursement is expected to be 80 yen more than the previous year's increase of 8 yen. Now, I would like to explain the results of the December fiscal year in 2025. As you can see, the sales volume has increased by 17.9% in the previous year to 2,370 billion yen. This is mainly due to the increase in demand for AI-related production and the increase in demand for PC purchases, which has led to the improvement of electronics functional materials and high-definition chemical drugs. ELECTRONICS functional materials are based on the demand increase of cutting-edge semiconductors for AI generation. The sales of the latest EUV resist and post-processing related materials from legacy materials to the latest EUV resist and post-processing related materials increased by 16% in the previous year, which is 12.47 billion yen. The increase in the number of customers and the expansion of demand due to the new factory increased by 19.6% in the previous year to 1,094 billion yen. The sales profit increased by 43.2% in the previous year due to the increase in the sales of high-value products to 47.3 billion yen, which is a large increase. In addition, the development-related materials and other inventory recognition factors have contributed to the increase in the number of customers. The net net profit of the parent company's shareholders has increased by 47% in the previous year, to 3.33 billion yen. In addition, the increase in the number of customers As I said in the previous report, we have formed a special profit in the first quarter. Next, I would like to explain the sales of Electronics functional materials by category. The total sales of Electronics functional materials was 16% in the previous year. For each type of material, we increased the cost per year by 15% for each type of material, such as photoregist for semiconductor microprocessor, semiconductor post-processing related material, display material, and so on. The cutting-edge material composed of ARF and EUV resist is increased by 20% per year, Among them, the EUV register has increased by 50% in the previous year due to demand increase and share expansion. The KRF register has increased by 15% both for logic and memory. G-SEN and i-SEN REGIST are made up of 15% of legacy materials. As for the post-processing related materials, the package materials are 15% and the WHS materials are 40% and have grown significantly. Next, I would like to explain the increase and decrease in operating profits. In December 2025, operating profits of 4.73 billion yen and 33.1 billion yen in previous years will be compared. I would like to explain the increase and decrease of 14.2 billion yen. First of all, the improvement of sales growth and product mix, focusing on cutting-edge semiconductor materials, led to an increase of 1.93 billion yen. Next, the impact of exchange rate fluctuations and depreciation adjustments led to an increase of 1.6 billion yen. As for expenses, There was a decrease in the price of raw materials, but due to the increase in fixed costs, focusing on human resources, which led to the expansion of the business, there was a loss of 5.5 billion yen. As explained in the business history, there was a loss of 2 billion yen due to inventory recognition of development-related materials. This graph shows the sales and operating profits of each market unit. In December 2025, we will consider the trend of the semiconductor market with the expansion of semiconductor market with the expansion of semiconductor market with the expansion of semiconductor market with the expansion of semiconductor market The success of our efforts for Global Share No. 1 at Sentan Regist has led to a significant increase in sales. The sales profit shown in gray shows that the sales profit of the fourth quarter includes a one-off increase of 2 billion yen, but the profit is steadily increasing with each quarter. Equipment Investment As you can see in the slide, we have implemented a cost-saving research and development project. In December 2025, we implemented a cost-saving investment of 28.7 billion yen, which was the highest in the past. Since some of the cost-saving investments have fallen behind, the annual plan has been reduced, We are progressing as planned for the medium-term plan. Next, I would like to explain the business expectations for the December fiscal year of 2026. First of all, this year's sales value is expected to be 26.1 billion yen, which is the highest in the past year, with an increase of 10.1% in the previous year. As a prerequisite, we will continue to expand the demand for AI-related production, and the demand for pre-processing and post-processing materials for cutting-edge semiconductors will increase significantly. In addition, we expect a large increase in the previous year's cost from the fact that customers are also planning to start moving their new factories. The total sales value of Electronics' functional materials is 1,400 billion yen, with an increase of 12.3% in the previous year. High-priced chemical drugs are expected to increase by 6% in the previous year to 1,160 billion yen. Business profits are expected to increase by 10.2% in the previous year, the highest in the past, is expected to reach 5.22 billion yen. In addition, the increase in sales profits, including the increase in sales profits, including the increase in sales profits, including the increase in sales profits, including the increase in sales profits, including the increase in sales profits, including the increase in sales profits, including the increase in sales profits, including Next, I would like to explain the sales forecast for each type of Electronics functional materials. The sales of Electronics functional materials is expected to be 12.3% per year. For each type, the semiconductor microprocessor photoregist Pre-year cost plus 10%, semiconductor post-processing related materials plus 30%, and other display materials are expected to be minus 5%. The top materials made up of ARF and EUV resist are expected to be pre-year cost plus 10%, and EUV resist is expected to be K.R.F. Regist has continued to closely monitor K.R.F. Regist and predicts that K.R.F. Regist will receive an additional 10% in the previous year, as well as additional 10% in the legacy material. The semiconductor post-processing related materials include The WHS-related materials are expected to increase the production capacity of customers by 170% over the previous year due to the large increase in production capacity. Next, I would like to explain the increase and decrease in operating profits. The operating profit in 2025 was 4.73 billion yen. This includes a special increase factor of 1 in 20 billion yen, so I will explain the analysis in the next page if we exclude this factor. Here, I would like to explain the difference between the increase in sales and the increase in product mix. First of all, we expect the improvement of sales growth and product mix to be an increase of 1.69 billion yen. On the other hand, the impact of the change in the exchange rate and the adjustment of the interest rate will be a source of interest of 3.1 billion yen, and the cost will continue to increase in human capital investment and the increase in fixed cost due to the increase in fixed cost due to the increase in fixed cost due to the increase in fixed cost due is expected to be a source of revenue of 6.9 billion yen. As a result, the operating profit of 2026 is expected to be 5.2 billion yen. This graph shows the sales performance of each department and the expected sales performance of each half-year. In the first half of 2026, It is expected that the cutting-edge semiconductor materials will continue to improve, but due to seasonal factors, it is expected that the total sales will be doubled compared to the quarter of 2025. The quarter will be updated with electronics functional materials, high-purity chemical drugs, and the highest sales in the past. Next, I would like to explain about the equipment investment, cost of incineration, and research and development expenses. This year's equipment investment will be implemented in line with the TOK medium-term plan for 2027, and we are planning to expand the semiconductor market by the largest amount of 35.8 billion yen in the past. The research and development cost is to meet the needs of the most advanced fields, so we are actively planning to increase the number of resources. Finally, regarding the return of the shareholders, the mid-term disbursement and the final disbursement are as explained in the summary at the beginning. Next, I would like to talk about the policy of return on investment based on the net asset return rate, and the policy of return on investment based on the two shareholder returns of self-sufficient self-sufficient self-sufficient self-sufficient self-sufficient self-sufficient Today, I would like to explain the TOK medium-term plan, which reviewed the target of mass production. The demand for AI semiconductors has increased. In addition to the fact that our group's product demand is expanding at a pace that exceeds expectations at the beginning, we will continue to improve our product quality Ebitda, 720 Oken. The ROE was set to 14.0%. In addition, the exchange rate was changed from $1.135 to $150. Furthermore, there is no change in the correct goal and the seven focus strategies. This is a summary of the joint sales volume by 2027 This is a graph showing the trend of EBITDA margin. We will definitely promote the strategy set out in the TOK medium-term plan in 2027, and we will realize the strengthening of cash loss by increasing the market growth by expanding the share of major products and increasing the market growth by increasing the market growth by increasing the market growth by increasing the market growth by increasing the market growth by increasing the market growth. Next, I will explain the goals, strategies, and progress of each product segment. HANDOU TAIYO PHOTO REGISTRATION has changed the sales growth rate target for the year of 2027 to 42% compared to the year of 2024. Last year, HANDOU TAIYO for AI generation, The increase in demand in the cutting-edge sector and the increase in sales due to the improvement of shares have made a significant progress. We will continue to expand our technology portfolio and strengthen the quality management of defect-free products that are required for further recycling. We will also measure the differentiation of high-quality products by high-quality production technology and stable supply. Various electronic materials have changed the sales growth rate target for the year of 2027 to ±143% for the year of 2024. Due to the expansion of demand for cutting-edge packaging technology, while sales are increasing, we will continue to measure further customer base expansion by taking precedence over technology trends. High-priced chemical drugs have changed the sales growth rate target for the year of 2027 to 44% for the year of 2024. The sales have increased significantly due to the new factory operation of our customers. In preparation for further expansion of demand, In addition to the construction of supply systems at the Pyontech factory under construction in Korea, as well as the maintenance of global supply systems, we will continue our efforts to acquire new devices for the cutting-edge device manufacturing process. In addition, we will continue our efforts to acquire new devices will introduce the development efforts of the next-generation EUV resist. Our group will introduce the development efforts of the next-generation EUV resist. Our group will introduce the development efforts of the next-generation EUV resist. Our group will introduce the development efforts of the next-generation EUV resist. Our group will introduce the development efforts of the next-generation EUV resist. Our group will introduce the development efforts of the next-generation EUV resist. We are working on the development of the next-generation EUV resist called SMR. Each resist has a different strength, but the POSI-type MOR has a high sensitivity and etching resistance, and the MEGA-type SMR has a high level of uniformity and etching resistance. As the technology requirements required for photoregistration are getting more and more advanced, we will respond to various needs of customers by maximizing the characteristics of these next-generation EUV registers. Regarding research and development investments, we will challenge the higher level of core technology of our group, In addition to self-development, cooperation with academic institutions and companies, in addition to the use of M&A methods, we will challenge further corporate value improvement as a long-run research and development company. This is an example of the application of our group products for AI GPUs. In addition to the materials for semiconductor and micro-processing, we also use wide-ranging product portfolios of our group, such as post-processing related materials and surface discharges. The sales growth rate for each product for 2027 is as shown here. This slide is an image of EBITDA, which is expected by the main equipment investment in the TOK medium-term plan 2027. In the semiconductor market that is expanding, high-quality products that exceed customers' expectations, We are making strategic investments in order to supply the required amount to the required place at the necessary time and at the necessary place. We are focusing on making each investment project work properly as soon as possible, which will lead to the acquisition of new cash output. As a result, EBITDA achieved 7.2 billion yen by 2027, and we will continue to make further efforts for 2030. As a human capital investor, our group will make four human capital projects, We will continue to focus on human capital investment based on the pursuit of happiness for each employee based on the development of corporate value as well as the improvement of employee engagement and the achievement of employee engagement. The cash allocation is as shown here. In the three years of the TOK medium-term plan of 2027, the total EBITDA of about 1.9 billion yen, the equipment investment of 7.6 billion yen, the growth investment of more than 2 billion yen, Thank you for listening. Thank you for listening.