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(Tokyo Stock Exchange, Prime Market: 4187) July 10, 2025 OSAKA ORGANIC CHEMICAL INDUSTRY LTD. 1H FY11/25 Presentation Materials for Financial Results for the First Half of the Fiscal Year Ending November 30, 2025 (December 1, 2024 – May 31, 2025) Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
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2 ■ Contents 01 1H FY11/25 Financial Summary 02 FY11/25 Forecast 03 Achieving the Medium-Term management Plan 04 Appendix
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■ 1H FY11/25 Financial Summary 1H FY11/24 results 1H FY11/25 forecast 1H FY11/25 results Y oY change Amount % Net sales 15,338 16,800 17,400 +2,062 +13.4% Operating profit 1,859 2,500 2,922 +1,063 +57.2% Ordinary profit 1,988 2,600 3,040 +1,052 +52.9% Profit* 2,020 1,700 2,132 +112 +5.6% Price of naphtha in Japan (Yen/KL) (Our estimated value) 75,750 75,000 69,950 — — Exchange rate (Yen/USD) 150 155 150 — — (Millions of yen) *Profit attributable to owners of parent 3 Operating environ- ment Net sales Operating profit Although the economy is on a gradual recovery trend, some areas are showing signs of stagnation due to factors such as sluggish personal consumption caused by rising prices. The outlook remains uncertain due to the impact of U.S. trade policy, the situation in the Middle East, and other issues. Net sales increased year on year in each business of Chemical Products, Electronic Materials and Specialty Chemicals. As a result, net sales increased by 13.4% year on year to 17,400 million yen. Operating profit increased by 57.2% year on year to 2,922 million yen due to factors such as a decrease in depreciation, in addition to a significant increase in net sales.
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■ Factors Affecting Operating Profit 0.00 50.00 1H FY11/24 1H FY11/25 Operating profit ¥1.85 billion Operating profit ¥2.92 billionOperating profit +¥1.07 billion Net sales significantly increased centering on electronic materials. While both the cost of sales and selling, general and ad ministrative expenses increased, a decrease in depreciation and inventory valuation contributed to an increase in profit. As a result, operat ing profit increased by 1.07 billion yen. Blue/↑: Positive factors Red/↓: Negative factors Increase in net sales Increase in cost of sales Increase in SG&A Increase in net sales +¥2.06 billion Chemical products Electronic materials Specialty chemicals +¥0.53 billion +¥1.15 billion +¥0.37 billion Increase in SG&A +¥0.13 billion Decrease in depreciation Increase in personnel expenses Increase in transaction fees -¥0.06 billion +¥0.06 billion +¥0.11 billion Others Change in net sales Change in cost of sales Change in SG&A Increase in cost of sales +¥0.86 billion Increase in cost of raw materials Impact of inventory valuation Decrease in depreciation Increase in labor costs +¥0.85 billion -¥0.07 billion -¥0.05 billion +¥0.08 billion Others 4 Increase/ decrease factors
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4.58 5.72 5.99 6.52 6.52 6.56 6.21 6.65 7.71 7.81 3.11 2.71 2.68 3.12 3.05 7.0 11.0 14.2 17.3 15.416.2 9.7 9.7 15.9 16.7 18.1 15.1 13.3 13.3 20.2 0 5 10 15 20 25 0 10 20 30 1H FY11/23 2H 1H FY11/24 2H 1H FY11/25 OP margin (%) Net sales (Billions of yen) Net sales by segment and OP margin (%) Specialty chemicals Electronic materials Chemical products Chemical products (OP margin) Electronic materials (OP margin) Specialty chemicals (OP margin) ■ Chemical products ■ Electronic materials ■ Specialty chemicals Sales of products for automotive coatings were on a recovery trend, while sales of products for display adhesives and UV inkjet inks remained strong. As a result, both net sales and operating profit increased significantly year on year. In semiconductor materials, sales of raw materials for cutting- edge EUV resists decreased, but sales of the Company’s mainstay raw materials for ArF resists increased significantly. In display materials, sales for insulating films for touch panels were robust. As a result, net sales and operating profit increased significantly year on year. Sales were flat in the cosmetics materials group and the functional materials group, but sales of high-purity specialty solvents produced by a subsidiary remained strong. As a result, both net sales and operating profit increased significantly year on year. Chemical products Electronic materials Specialty chemicals Net sales 6.52 7.81 3.05 (YoY: +8.9％) (YoY: +17.4%) (YoY: +13.8%) Operating profit 1.00 1.30 0.61 (YoY: +18.3%) (YoY: +102.2%) (YoY: +73.3%) (Billions of yen) 5 ■ Results by Segment
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■ Capital Expenditures, Depreciation, R&D Expenses 1,646 1,169 5,000 1,673 2,710 2,452 2,304 2,448 3,303 3,080 1,289 1,233 1,436 1,863 1,912 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 FY11/21 FY11/22 FY11/23 FY11/24 FY11/25 Capital expenditures Depreciation R&D expenses In 2023, we invested 8.66 billion yen in equipment such as semiconductor materials manufacturing facilities. Depreciation and amortization expenses have been decreasing since its peak in 2024, amounted to 1.47 billion yen in the first half of FY2025, and are projected to reach 3.08 billion yen over the full year. Capital expenditures are expected to increase in the second half of the fiscal year, but in the first half they have remained at 580 million yen. *(Dotted line: Full-year forecast) 8,666 Millions of yen (First Half) 583 1,479 898 6 Sum- mary
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7 ■ Contents 01 1H FY11/25 Financial Summary 02 FY11/25 Forecast 03 Achieving the Medium-Term management Plan 04 Appendix
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FY11/24 results FY11/25 forecast YoY change 1H FY11/25 results 1H progress ratioAmount % Net sales 32,698 34,000 +1,301 +4.0% 17,400 51.2% Operating profit 4,608 5,000 +391 +8.5% 2,922 58.5% Ordinary profit 4,753 5,200 +446 +9.4% 3,040 58.5% Profit* 4,044 3,500 -544 -13.5% 2,132 60.9% Price of naphtha in Japan (Yen/KL) (Our estimated value) 75,600 75,000 ― ― 69,950 ― Exchange rate (Yen/USD) 150 155 ― ― 150 ― (Millions of yen) The full-year forecast for the fiscal year ending November 2025 is net sales of 34.0 billion yen and operating profit of 5.0 billion yen. In the first half of the fiscal year, net sales reached 51.2% of the forecast and operating profit reached 58.5% of the forecast, showing favorable progress. 8 ■ Progress Against Forecast *Profit attributable to owners of parent
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1H FY11/25 Net sales FY11/25 Full-year forecast Progress rate vs Full-year forecast Net sales / Operating margin ¥6.52 billion ¥12.90 billion 50.6％ ● Operating environment ・ Automobile production was on a recovery trend, albeit moderate. ・ In display-related products, the situation remained firm due to subsidy policies in China and other factors. ● OOC ・ Sales of products for automotive coatings were on a recovery trend. ・ Sales of products for display adhesives and materials for UV inkjet inks remained strong. ● Market risks ・ Impacts of U.S. tariff policies. ・ Higher cost of raw materials derived from natural resources. ・ Rapid fluctuations in exchange rates. ■ Chemical Products Business 4.58 5.72 5.99 6.52 6.52 6.50 7.0 11.0 14.2 17.3 15.4 0 10 20 0.00 4.00 8.00 (%) (Billions of yen) Net sales Operating margin (right axis) 9
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1H FY11/25 Net sales FY11/25 Full-year forecast Progress rate vs Full-year forecast Net sales / Operating margin ¥7.81 billion ¥15.50 billion 50.4％ ● Operating environment ・ The semiconductor market continued to be on a recovery trend, driven by cutting-edge materials. ・The LCD display market continued to shift to China. ● OOC ・ Sales of our mainstay ArF resist raw materials continued recovering, showing a significant increase year on year. ・ Sales of materials for EUV resists swing wildly due to many products being developed, and this fiscal year, sales have decreased. ・ The display materials group remained solid. ● Market risks ・ Escalation of the U.S.-China economic confrontation. ・ Progress in in-house production of semiconductors in China. ■ Electronic Materials Business 6.56 6.21 6.65 7.71 7.81 7.90 16.2 9.7 9.7 15.9 16.7 0 10 20 0.00 4.00 8.00 (%) (Billions of yen) Net sales Operating margin (right axis） 10
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1H FY11/25 Net sales FY11/25 Full-year forecast Progress rate vs Full-year forecast Net sales / Operating margin ¥3.05 billion ¥5.60 billion 54.6％ ● Operating environment ・ The domestic cosmetics market remained steady. ・ In China, in addition to the economic slowdown, the competitive environment is changing due to the rise of local manufacturers. ● OOC ・ Sales of cosmetics raw materials remained steady. ・ Sales of high-purity specialty solvents produced by a subsidiary remained strong. ● Market risks ・ Delayed market recovery in China. ■ Specialty Chemicals Business 3.11 2.71 2.68 3.12 3.05 2.80 18.1 15.1 13.3 13.3 20.2 0 10 20 30 0.00 2.00 4.00 (%) (Billions of yen) Net sales Operating margin (right axis) 11
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12 ■ Contents 01 1H FY11/25 Financial Summary 02 FY11/25 Forecast 03 Achieving the Medium-Term management Plan 04 Appendix
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Result from heat or impurities Failure Acrylate before purification High purity Acrylate Polymerization (side reaction) High purity [Our Core Technology] Refining process Heat Easy to occur By completely controlling side reactions, it is possible to purify acrylates to a high degree of purity. Difficult ■Core Technologies Supporting Our Products -High Purification of Specialty Acrylates- 13 (administration of temperature history, selection of optimal additives, etc.) Low viscosity ⇒ Ink performance UP Low Toxicity ⇒ Biocompatibility UP Low odor ⇒ Cosmetics-quality UP Low Metal ⇒ Semiconductor Performance UP [V alue through high purity] Chemically reactive As a unique strength since its founding Demonstrate differentiated characteristics If not controlled, there is a risk of a serious accident. : impurities
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Acrylic acid Deepening of technology Specialty Acrylates ArF monomer Ultra-high purity Special structuring EUV monomer Polymer for electronic materials Special structuring Photoresists for display materials Polymerization Resist Downstream Production Distillation refining High purification of solvents Elastomers Organic Piezoelectric Materials Conversion to film Esterification Cosmetics material Biocompatible material CMP Slurry Materials Biomass Acrylate Solvents for electronic materials Japan's first industrialization Slurry Chemical synthesis non-fossil ■Our Business Area Map and Today's Topics 14 Reaction Control Topics ①: Chemicals Segment Topics ②: Materials for Semiconductors With high-purity specialty acrylates as our core technology, we are committed to promoting downstream products and deepening our technology. We will further develop these businesses through our medium-term management plan "Progress & Development 2030."
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■Initiatives in the Chemicals Segment's Medium-Term Plan 15 ・Improve production efficiency by reforming processes Although this is a product group with a long history, we are working to further develop it through strong collaboration between our technology, sales, and manufacturing divisions. ・Improve production capacity by investing in plants ・ Expansion of product lineup through development of new compounds Continuation of technological developmentExpansion of sales channels ・Transition to the most efficient production methods (e.g., ester exchange method） ・Expansion of sales channels overseas Expansion of production capacity Manufacturing Sales Technology Quick commercialization of needs Rapid industrialization of new products Timely construction of supply system ・North American sales office with SHIN-NAKAMURA CHEMICAL 1H FY11/25 2H FY11/25 Signing of a joint venture agreement Planned establishment of a joint venture company Investment amount in the medium-term business plan P&D2030 ¥530 million ・Development of 100% biomass acrylates 0 20 40 60 80 2024 2025 2026 2027 Europe North America China Japan Estimated volume (Thousand tons) Forecasted size of the acrylate market* *This graph was created by the Company based on Fuji Keizai’s “Overview of the market for optical functional materials and products” Global forecast volume CAGR 2.4% Expanding share in overseas markets Responsive supply system 2014 - Osaka Organic Chemical (Shanghai) Trading Ltd. 2024 - Osaka Organic Chemical Industry Korea Ltd. Enhance sales overseas Production capacity including BzA, V#200, and 4-HBA increased by approximately 1.1 times
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■Initiatives in Semiconductor Materials 16 ・Proposing chemical structures that meet customer needs Strength 1: Proposal capabilities for special monomers In order to further strengthen our responsiveness, we plan to construct and commence operations of a medium-scale laboratory in 2025. We are also venturing into applications other than photoresist materials. ・Monomer synthesis technology that creates structures ・Rapid commercialization, legal compliance, and raw material procurement ・Chemical structure and quality standards for each customer/resist Evaluation and verification with customers Strength 3: Swift and detailed response Strength 2: Timely investment ・Ultra-high purity and consistent quality ・Faster cycle of review with customers CommercializationR&D Prototype Investments (cumulative from FY19 to FY23) ¥19.5 billion Planning to construct and commence operations of a medium- scale laboratory (for EUV) in 2025 Currently considering expansion into related materials such as CMP slurry materials and back- end process materials. Our Strengths in Semiconductor Materials Further enhancement: Expansion into peripheral materials Standard value (ppb) Consistent High-purity cleaning solution Photoresist PFC etching gas Nitrogen trifluoride Sales composition of front-end process materials in FY2029 CMP slurry 11% ArF resist: 4.0% Sales value CAGR Market for photoresists EUV resist: 36.0% ※ 0 200 400 600 800 1,000 1,200 2023 (actual) 2024 (forecast) 2025 (forecast) 2026 (forecast) 2027 (forecast) 2028 (forecast) 2029 (forecast) ArF EUV *This graph was created by the Company based on Fuji Keizai’s “Current status and future outlook for the semiconductor materials market in 2024” ($1M)
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17 ■ Contents 01 1H FY11/25 Financial Summary 02 FY11/25 Forecast 03 Achieving the Medium-Term management Plan 04 Appendix
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2024/11 2025/05 Change Major factors Change Assets Current assets 34,287 33,998 -288 Cash and deposits -459 Property, plant and equipment 18,415 17,573 -842 Machinery, equipment and vehicles, net -657 Intangible assets 73 56 -17 Investments and other assets 7,188 7,009 -178 Investment securities -205 Liabilities Current liabilities 11,729 11,738 +8 Notes and accounts payable - trade +204 Non-current liabilities 2,094 1,741 -353 Long-term borrowings -273 Net assets 46,139 45,157 -982 Retained earnings Treasury shares +1,406 -2,196 Total assets 59,964 58,637 -1,327 (Millions of yen) Financial indicators As of May 31, 2025 Equity ratio 75.7％ Short-term liquidity ratio 3.8 months Debt-equity ratio 0.07 Net debt-equity ratio -0.23 Interest coverage ratio 836 times ■ Balance Sheet 18
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2024/05 2025/05 Change Major factors Change Non-operating income 154 221 +66 Foreign exchange gains Insurance claim income -67 +101 Non-operating expenses 25 103 +77 Foreign exchange losses Donations +96 -20 Extraordinary income 815 ― -815 Gain on sale of investment securities -815 Extraordinary losses 1 0 -0 Blue: Positive factors Red: Negative factors (Millions of yen) ■ Statement of Income 19 Non- operating income and expenses Extraordinary income or losses Non-operating income increased year on year due to the impact of insurance claim income and other factors. Non-operating expenses increased due to the impact of foreign exchange losses and other factors. Extraordinary income decreased year on year due to the gain on sale of strategic shareholdings received last year.
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(Millions of yen) 2024/05 2025/05 Major factors Cash flows from operating activities 5,473 3,650 Profit before income taxes Depreciation Income taxes paid 3,040 1,469 -906 Cash flows from investing activities 460 -711 Purchase of property, plant and equipment -572 Cash flows from financing activities -1,906 -3,375 Purchase of treasury shares Dividends paid -2,226 -718 Effect of exchange rate change on cash and cash equivalents 77 -101 Net increase (decrease) in cash and cash equivalents 4,104 -537 Cash and cash equivalents at end of period 11,995 12,587 ■ Cash Flows 20
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<Note regarding forward-looking information> 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. Inquiries Administration Division, IR&PR Group TEL: +81-6-6264-5071 (main switchboard) OSAKA ORGANIC CHEMICAL INDUSTRY LTD.