Toyo Gosei : FY2022 2Q Business Results Presentation Material (from April 1, 2022 to September 30, 2022)

Business Results for the Second Quarter of

Fiscal Year Ending March 31, 2023

(April 1, 2022 - September 30, 2022)

November 14, 2022

1

１．Business Results for the H1 FY 2022

２．Projection for the FY2022

３．Future Outlook

2

Naphtha Prices in the H1 FY2022

• Recovery from the COVID-19, lockdown in China, the invasion to Ukraine and etc led to global inflation, which rose to 1.6x YOY.
• The United States and European countries are raising interest rates to curb inflation, however resource prices remain high, and there are fears of economic recession.

Naphtha Prices

¥80,000

USD/JPY Exchange Rate for the H1 FY2022

• In order to curb inflation, policy interest rates were raised mainly in the United States and European countries.
• The yen depreciates from 110 yen/USD to 145 yen/USD (1.3 times) due to the interest rate differential between Japan and the United States.

USD/JPY Chart

Semiconductor Market in H1

• Demand for consumer products such as smartphones and PCs has declined due to the end of the COVID-19 special demand.
• However, demand for advanced semiconductors is expanding under demand for DX, competition for technological supremacy, and accelerating investment competition.
• Continuing shortage of semiconductors for automobiles.

World Semiconductor Sales