(English Translation)

This English translation is an abridged version of the original document in Japanese. In the event of any discrepancy, the Japanese version prevail.

FY2024 1Q

April 12, 2024

Presentation Materials for Financial Results

for the First Quarter of the Fiscal Year

Ending November 30, 2024

(December 1, 2023 - February 29, 2024)

OSAKA ORGANIC CHEMICAL INDUSTRY LTD.

Tokyo Stock Exchange, Prime Market: 4187

1Q FY11/24 Financial Summary

2

Operating environment

Net sales

Operating profit

Although the economy continued to recover moderately due to improvements in the employment and income environment and other factors, the outlook remains uncertain due in part to the risk of downward pressure on the domestic economy, including the uncertainty in overseas economies and the impact of global monetary tightening.

Sales in the chemical products business were strong, but decreased in the electronic materials and functional chemicals businesses. As a result, net sales increased 2.8% year on year to ¥7,066 million.

Operating profit decreased 42.3% year on year to ¥580 million due to factors such as an increase in depreciation and amortization and a decrease in sales of highly profitable products.

(million yen)

1Q FY11/23

1Q FY11/24

YoY change

results

results

Amount

%

Net sales

6,870

7,066

+195

+2.8%

Operating profit

1,005

580

-424

-42.3%

Ordinary profit

1,040

640

-399

-38.4%

Profit attributable to

726

603

-123

-17.0%

owners of parent

Price of naphtha in Japan

68,000

74,000

-

-

(Yen/KL)

(Company estimates)

Exchange rate

133

146

-

-

(Yen/USD)

Comparison with 1H forecast

First half

Progress rate

forecast

14,500

48.7%

1,400

41.5%

1,500

42.7%

1,000

60.3%

-

-

-

-

Factors change in operating profit

3

Although net sales increased as a whole, operating income decreased by ¥0.42 billion from the same quarter of the previous year due to a decrease in electronic materials and functional chemicals and an increase in expenses such as depreciation and amortization.

Increase in net sales

+¥0.19 billion

Chemical products

+¥0.58 billion

Electronics materials

-¥0.13 billion

Specialty chemicals

-¥0.25 billion

Increase in cost of goods sold

+¥0.48 billion

Increase in cost of raw materials

+¥0.19 billion

Inventory write-down

+¥0.14 billion

Decrease in fuel expenses

-¥0.04 billion

Increase in depreciation

+¥0.17 billion

Others

Increases in SG&A

+¥0.14 billion

Increase in depreciation

+¥0.09 billion

Others

Increase in

net sales

Increase in cost

of goods sold

Increases in

SG&A

Operating

profit

¥1.00 billion

Operating profit

-¥0.42 billion

Blue / ↑: Positive factors

Red / ↓: Negative factors

Operating profit ¥0.58 billion

2023/1Q

Change in net sales

Change in cost of goods sold

Change in SG&A

2024/1Q

■ Chemical products

4

1Q net sales

FY11/24 full-year

Progress rate vs.

Net sales / operating margin

forecast

full-year forecast

¥2.70 bn

¥11.20 bn

24.1%

Net sales

Operating margin(right axis)

(Billions of

yen)

20

4.0

●Operating environment

(%)

・Automotive production continues to recover.

・Although there are some signs of recovery in the display-related industry,

3.01

demand remains sluggish.

2.70

2.70

●OOC

2.46

2.11

10.2

・Sales of automotive paints, display adhesives, and UV inkjet inks

11.9

9.6

all increased compared to the same period last year.

10

・Due to the effects of seasonality and shipping timing, sales decreased

7.5

compared to the previous quarter.

6.4

●Market risks

・Crude oil prices remain high.

・Higher cost of raw materials derived from natural resources.

0.0

0

■ Electronics materials

5

1Q net sales

FY11/24 full-year

Progress rate vs.

Net sales / operating margin

forecast

full-year forecast

¥3.09 bn

¥14.50 bn

21.4%

Net sales

Operating margin(right axis)

(Billions of

yen)

4.0

40

(%)

●Operating environment

3.23

3.32

3.42

・As the semiconductor market continues to slump, cutting-edge EUV materials

3.09

are being put into practical use.

・Although there are some signs of recovery in the display-related industry,

2.78

demand remains sluggish.

●OOC

・Raw materials for cutting-edge EUV resists increased significantly.

17.9

20

・Sales of mainstay raw materials for ArF resists decreased due to prolonged

14.4

16.7

inventory cutbacks.

・The display materials group generally remained at the same level as the

previous year.

●Market risks

5.7

・Escalation of the U.S.-China economic confrontation.

・Delay in recovery of the semiconductor market.

1.1

0.0

0

■ Specialty chemicals

6

1Q net sales

FY11/24 full-year

Progress rate vs.

Net sales / operating margin

forecast

full-year forecast

¥1.26 bn

¥5.30 bn

23.8%

Net sales

Operating margin(right axis)

(Billions of

yen)

2.0

40

(%)

●Operating environment

・The cosmetics market continues to show a gradual recovery trend both

1.60

domestically and overseas.

1.51

1.36

1.34

●OOC

1.26

・In cosmetic ingredients, overseas sales were firm.

・In the Functional Materials Group, sales of consignment products decreased.

20

・Sales of high-purity special solvents manufactured by subsidiaries decreased.

19.9

●Market risks

16.3

15.7

・The exacerbation of the Japanese product boycott campaign by China.

14.6

10.5

0.0

0

Capital Expenditures, Depreciation, R&D Expenses

7

In 2023, we invested ¥8,666 million in equipment such as semiconductor materials manufacturing facilities. Depreciation expenses are expected to increase in 2024, and the first quarter actual amount was 802 million yen.

8,666

Millions of yen

5,000

4,776

Capital expenditures

Depreciation

R&D expenses

3,350

2,452

2,304

2,448

2,330

2,085

1,843

1,646

1,436

1,209

1,289

1,169

1,233

802

444

150

FY11/20

FY11/21

FY11/22

FY11/23

FY11/24

1Q

*(Dotted line: Forecast)

The earnings forecasts and business plans described in this material are current earnings forecasts and plans, and have been determined based on currently available information. Therefore, actual results may differ significantly due to various factors and risks, and we do not make promises or guarantees.

We lead the world with specialty acrylates

Inquiries

OSAKA ORGANIC CHEMICAL INDUSTRY LTD.

Administration Division, IR & PR Group TEL: +81-6-6264-5071 (main switchboard)

Tokyo Stock Exchange, Prime Market: 4187

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Osaka Organic Chemical Industry Ltd. published this content on 11 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 07:23:03 UTC.