Taiyo : Consolidated Financial Result Digest FY2023/3 1Q (Fiscal Year Ending March 31, 2023)

ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT

This is a translation of the original Japanese-language document and is provided for convenience only.

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Consolidated Financial

Result Digest

FY2023/3 1Q

(Fiscal Year Ending March 31, 2023)

July 27, 2022

Any information incorporated in this document is not intended for suggestion of purchase or sale of equity share of the company. All the description and projection are based on the company's own analysis at the time of compilation, and their accuracy is not guaranteed. These data may be revised without prior announcement. The company will neither assume nor compensate any loss of anybody resulting from decision based on information provided here.

Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.

Our Reporting Segments

Electronics*1

Develops, manufactures, purchases and sells chemicals for PWBs and other electronic components

*1 As of FY2023/3 1Q, the name of the "Electronic Materials Business" has been changed to "Electronics Business." This change only applies to the segment name. There is no change in the subsidiaries that make up the segment.

Medical and Pharmaceutical

Manufactures and markets pharmaceuticals, and provides contract development and manufacturing organization (CDMO) services

Others

Energy business using natural energy, food business, fine chemicals business

including dyes, pigments and other
chemicals, and ICT business, etc.	2

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FY2023 Q1 Overview

• Net sales increased by 15% year on year
• Operating income increased by 37% year on year Main reasons

Electronics

Business

• Progression in the weakening of the yen contributed to growth in both revenues and income Avg. exchange rate during quarter under review : 129.0JPY/USD
  Avg. exchange rate during same quarter of prior FY : 110.0JPY/USD
• Sales quantities and value in sales for PKG DF products both reached record-highs
• Lockdowns in China caused our customer's suspension of operation and logistical disruptions, resulting in weak sales volume and value of rigid products in and around the East China region.

• Net sales decreased by 3% year on year Main reasons

Medical and

Pharmaceutical

Business

• Our product mix shifted alongside changes in production plans at contract manufacturing clients
• Unit sales prices became lower due to the revision of drug prices in the National Health Insurance (NHI) scheme for long-listed products
• Sales increased due to the completion of the succession of approval for manufacture and sale and the transfer of distribution from AstraZeneca K.K.
• Demand for certain product increased in line with shipment adjustments for generic drugs by other companies

Other	⚫ Taiyo Green Energy : Opened a new floating solar power plant in Hyogo Pref.
⚫	funlead corp. : Joint proposal for mangrove preservation was selected for the
Businesses
	"International Collaborative Research Program 2021"

3

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Consolidated Financial Results

		Results Summary					Unit : JPY Million
			①	②	②-①	（②-①）	③	②/③	④	②/④
			/①
			FY2022/3	FY2023/3			FY2023/3		FY2023/3
							(announced		(announced
							on Apr. 28)		on Apr. 28)
			1Q	1Q			1st half		Full year
			Result	Result	YoY	%	Forecast	%	Forecast	%
	Net Sales	23,568	25,757	2,189	9%	55,600	46%	109,400		24%
	Operating	4,287	5,335	1,048	24%	10,400	51%	19,000		28%
	Income
	Ordinary Income	4,450	5,119	669	15%	10,400	49%	18,800		27%
	Net Income	3,106	3,619	513	17%	7,200	50%	12,800		28%
	Exchange rate of	110.0	129.0	19.0		120.0		120.0
	JPY/USD
	EBITDA	6,160	7,283	1,123	18%	14,400	51%	26,900		27%
	Operating	18%	21%			19%		17%
	Income Margin
	EBITDA	26%	28%			26%		25%
	Margin
											4
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Trend of Quarterly Performance

Net Sales and Operating Income

Unit : JPY Million

																25,757
26,000		Operating Income（Right axis）							23,568	860	784	24,344	786	7,000
		Other Sales（Left axis）									919
24,000									840
	Medical and Pharmaceutical Sales（Left axis）
										5,678
22,000		Electronics Sales （Left axis）											6,000
	752				781	862		5,875	6,368	5,344	[22%]
									875
20,000									820		5,879			5,335
													[22%]
													[25%]					5,000
18,000								1,062
									6,549
16,000		951	986		917	906	7,303			5,997	5,664
639				6,342
							5,858									4,000
14,000
1,579	1,493				2,445
2,390	1,066	2,607
12,000				2,197														3,000
																	19,293
10,000																18,079
													16,849	18,043	18,120	[75%]
8,000													[71%]			[74%]
											14,003					2,000
		12,960					13,044			13,287	13,692
6,000	12,633	12,103		11,896	12,444		12,112
	11,499
		10,389
4,000																		1,000
2,000
0	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	0
		FY2019/3			FY2020/3			FY2021/3			FY2022/3		FY2023
																	/3	5

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