Business Results for the Second Quarter of
Fiscal Year Ending March 31, 2024
(April 1, 2023 - September 30, 2023)
November 20, 2023
1
Management Philosophy & Vision of the Medium-term Management Plan
Management Philosophy
Toyo Gosei is conducting business to support the advancement of civilization through projects based on human talent, creativity, science, and technologies. Then Toyo Gosei growing itself to increase its contribution.
The concept of Medium-term Management Plan
In the field of electronic materials, where demand is expected to grow further in the future, we will further refine the high-purity synthesis that we have cultivated over many years and our refining technology as well as strengthen a stable supply system that meets customer quality, then achieve growth in people, organizations, and businesses. As the result we contribute to the realization of a sustainable decarbonized society as the world's No.1.
Vision of the Medium-term Management Plan
We will create the future by taking each customer issue and technical issue seriously, solving them from an original perspective, then achieving both ultra-high quality as the world's No. 1 DANTOTSU (outstanding)and productivity
improvement. | 2 |
1. Business Results for the H1 FY 2023
2. Projection for the FY2023
3. Future Outlook
3
Financial Results for the Q1 FY2023
- Sales were 15,055 million yen (YoY -14%) due to the impact of sluggish semiconductor demand and inventory adjustments.
- Operating profit was 1,297 million yen (YoY -55%) due to cost reduction efforts in response to declining demand from the beginning of the fiscal year.
- Compared to initial plans, sales were below target, but operating profit was almost achieved, ordinary profit +8%, and net profit +15%.
- Investments to increase production capacity will continue in preparation for medium and long- term market expansion in the next fiscal year and beyond.
H1 FY2022 | H1 FY2023 | YoY | H1 FY2023 | Comparison with Forecasts | |||
(Million yen) | Results | Results | Change | % | Projections | Change | YoY |
Net sales | 17,553 | 15,055 | (2,498) | (14%) | 16,000 | (944) | (6%) |
Operating profit | 2,852 | 1,297 | (1,555) | (55%) | 1,300 | (2) | (0%) |
Ordinary profit | 3,278 | 1,354 | (1,924) | (59%) | 1,250 | +104 | +8% |
Profit | 2,247 | 917 | (1,330) | (59%) | 800 | +117 | +15% |
EPS | ¥283 | ¥115 | |||||
Interim Dividends | ¥20 | ¥20 | |||||
FX Rate (USD) | ¥132/$ | ¥140/$ |
4
Variance Analysis: Operating profit
- While cost reduction efforts in response to lower sales, the planned 1 billion yen increase in expenses for the first half was limited to approximately 0.4 billion yen as timing adjustments and other arrangement to secure operating income of 1.29 billion yen at the level of the earnings forecast.
(Billion yen)
2.85 +0.11
FX
Operating
profit
(0.20)
Inventory Impact | H1 Plan | |
(operation and | (1.06) | ¥1 billion |
valuation) | ¥0.59 billion | |
Reduction | ||
Decrease in Sales | (0.41) | |
Increase in production |
costs such as fuel,
electricity, and
*Investments to increase production personnel capacity are progressing according
to the mid-term plan.
(¥1.56) billion
1.29
Operating
profit
2023.3月期 Q2 | 2024.3月期 Q2 |
5
Net sales Composition Ratio
- Net sales of semiconductor and electronic materials-related products accounted for 86% of total sales.
Aroma Logistics
Chemicals
Chemicals Segment | Photosensitive Materials | |
62% | ||
38% | ||
( Including electronic | ||
materials related 24%) | H1 FY2023 | IC/FPD/ |
High-purity | Net sales: | Other electronic application |
¥15,055 million | (Photosensitive materials, Polymer) | |
solvents | ||
6
Semiconductor Market Trend
- WSTS expects the growth rate in 2023 to be -10.3%YoY.
- April-Septemberaverage sales were -14.5%YoY, while semiconductor sales bottomed out in February and are now recovering moderately.
(M$)
60,000
50,000
40,000
30,000
20,000
10,000
0
Semiconductor Market Trend | ||||||||||||||||
H1 FY2022 | H1 FY2023 | |||||||||||||||
YoY | ||||||||||||||||
-14.5% | ||||||||||||||||
April | May | June | July August | September | October November December January | February March April | May June July August | September | October | November December January | February | March | April May | June | July | August |
CY2021 | CY2022 | CY2023 |
recovering moderately
Source: WSTS | 7 |
Electronics manufacturing supply chain from our company to the consumer
Photosensitive | Photoresists | Semiconductors | Automobiles |
materials & | smartphones | ||
Polymer | |||
PCs |
TOYO GOSEI | Photoresist | Semiconductor / | Finished Product Retailers | Consumers |
Manufacturers | Display | Manufacturers | ||
Manufacturers | ||||
excess inventory
OLED/LCD, TVs
High-purity solvent | IoT |
VR devices
8
Quarterly Sales, Operating profit & Sales Growth Rate Trend
- Sluggish demand for semiconductors and inventory adjustments in the supply chain will last longer than expected
- Sales had been declining since peaking in Q4 of the fiscal year ending March 2022, but are expected to bottom out in Q2.
Quarterly Sales, Operating profit & Sales Growth Rate
Sales Growth Rate | ||||||||||||||
11.1% | 12.4% | (YoY) | ||||||||||||
(Million yen) | (Million yen) | |||||||||||||
0.4% | ||||||||||||||
15,000 | -10.5%2,000 | |||||||||||||
Net sales | -9.3% | -17.6% | ||||||||||||
Operating profit | ||||||||||||||
12,000 | 1,600 | |||||||||||||
9,000 | 7,444 | 1,200 | ||||||||||||
6,000 | 463 | 800 | ||||||||||||
3,000 | 400 | |||||||||||||
0 | 0 | |||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |
FY2020 | FY2021 | FY2022 | FY2023 |
Decrease in net sales narrowed ➡Bottom out
9
Photosensitive Materials Segment
Net sales & Operating profit
(Million yen) | Net sales | (Million yen) | |||||||||||||||||||||||||||||||||||||||||||||
12,000 | 10,922 | 10,481 | Operating profit | 2,400 | Net sales: ¥9,298 million | ||||||||||||||||||||||||||||||||||||||||||
10,373 | |||||||||||||||||||||||||||||||||||||||||||||||
9,652 | |||||||||||||||||||||||||||||||||||||||||||||||
9,298 | |||||||||||||||||||||||||||||||||||||||||||||||
9,000 | 1,800 | YoY: (¥1,183) million, (11%) | |||||||||||||||||||||||||||||||||||||||||||||
1,905 | |||||||||||||||||||||||||||||||||||||||||||||||
1,677 | |||||||||||||||||||||||||||||||||||||||||||||||
1,620 | • | Sales of materials for semiconductors decreased due to | |||||||||||||||||||||||||||||||||||||||||||||
6,000 | 1,400 | 1,200 | |||||||||||||||||||||||||||||||||||||||||||||
797 | sluggish demand and inventory adjustments in the | ||||||||||||||||||||||||||||||||||||||||||||||
3,000 | 600 | supply chain. | |||||||||||||||||||||||||||||||||||||||||||||
• | In materials for displays, large LCD panel production | ||||||||||||||||||||||||||||||||||||||||||||||
0 | 0 | remained strong, especially in China. | |||||||||||||||||||||||||||||||||||||||||||||
H1 | H2 | H1 | H2 | H1 | |||||||||||||||||||||||||||||||||||||||||||
FY2021 | FY2022 | FY2023 | |||||||||||||||||||||||||||||||||||||||||||||
(Million yen) | Net sales | (Million yen) | Operating profit: ¥797 million | ||||||||||||||||||||||||||||||||||||||||||||
Operating profit | |||||||||||||||||||||||||||||||||||||||||||||||
6,000 | 5,511 | 5,442 | 1,500 | ||||||||||||||||||||||||||||||||||||||||||||
4,970 | 4,930 | 4,832 | 4,466 | YoY: (¥1,108) million, (58%) | |||||||||||||||||||||||||||||||||||||||||||
998 | • | Profit decreased due to decreased sales of materials for | |||||||||||||||||||||||||||||||||||||||||||||
4,000 | 907 | 820 | 1,000 | ||||||||||||||||||||||||||||||||||||||||||||
574 | advanced semiconductors. | ||||||||||||||||||||||||||||||||||||||||||||||
• | Continued to increase production capacity | ||||||||||||||||||||||||||||||||||||||||||||||
2,000 | 500 | ||||||||||||||||||||||||||||||||||||||||||||||
580 | 222 | investment as planned in preparation for demand | |||||||||||||||||||||||||||||||||||||||||||||
expanding period. | |||||||||||||||||||||||||||||||||||||||||||||||
0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | 10 | |||||||||||||||||||||||||||||||||||||||||
FY2022 | FY2023 | ||||||||||||||||||||||||||||||||||||||||||||||
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Disclaimer
Toyo Gosei Co. Ltd. published this content on 21 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 01:59:09 UTC.