#1The First Six Months of the Fiscal Year Ending March 31, 2023 Financial Results Briefing November 11, 2022 PC.I. TAKIRON Corporation Stock code: 4215 TSE Prime Market 1#2Contents P タキロンシーアイ 1 Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 P. 3 2 Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 P. 17 TOPIC Investment for Increased Production of Zipper Tapes P. 21 Information Notice Concerning Issuance of Integrated Report 2022 P. 23 Appendix Company Overview and Our Company Features P. 25 2#3タキロンシーアイ The First Six Months of the Fiscal Year Ending March 31, 2023 1 Consolidated Financial Results 3#41-1. Consolidated Financial Highlights d P タキロンシーアイ Financial results for the first six months of the fiscal year ending March 2023 Net sales: 72,515 million yen (up 3.0% year on year) • Operating income: 3,090 million yen (down 35.5% year on year) Net sales Operating income Ordinary profit Profit attributable to owners of parent (millions of yen) Six months ended September 30, 2020 Six months ended September 30, 2021 Six months ended September 30, 2022 Year on year 64,175 70,417 72,515 +2,097 3,675 4,792 3,090 -1,702 3,783 4,998 3,318 -1,680 2,086 3,480 1,862 -1,617 ⚫ Net sales increased 3.0% year on year due to the gradual economic recovery and the shifting of higher raw material prices to product sales prices. Operating income decreased 35.5% year on year due to rising raw material prices, a time lag in passing on prices, the suspension of operations from the end of March to the end of May at three operating companies based in Shanghai, and an increase in expenses associated with the lifting of the state of emergency declaration. ● Profit attributable to owners of parent decreased 46.5% year on year due to a decrease in operating income. 4#51-2. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Consolidated Statements of Income J タキロンシーアイ Results (millions of yen) Six months ended September 30, 2021 Six months ended September 30, 2022 Year on year Amount Percentage Amount Percentage Increase/ decrease Rate of change Net sales 70,417 100.0% 72,515 100.0% 2,097 +3.0% Gross profit 20,423 29.0% 19,218 26.5% -1,205 -5.9% Selling, general and 15,630 22.2% 16,127 22.2% 497 +3.2% administrative expenses Operating income 4,792 6.8% 3,090 4.3% -1,702 -35.5% Ordinary profit 4,998 7.1% 3,318 4.6% -1,680 -33.6% Profit attributable to 3,480 4.9% 1,862 2.6% -1,617 -46.5% owners of parent Overseas net sales 13,106 18.6% 13,975 19.3% 869 +6.6% Earnings per share 35.76 yen 19.16 yen -16.60 yen -46.6% 5#61-3. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Analysis of Factors Behind Changes in Consolidated Operating Income P タキロンシーアイ भ وم High Functional Materials BONSET SANZIP -329 -463 -150 (millions of yen) Construction Materials Environmental Materials High Functional -211 089- Materials -329 Specialty Films -613 净含膳 Housing Materials +132 Flooring and Decorative Materials Agricultural Materials Infrastructure Material -344 -124 -555 (millions of yen) 5,000 4,792 -27 186 4,000 3,000 Increase in profit due to decrease in SG & A expenses Decrease in profit due to decrease in gross profit margin Decrease in profit due to decrease in net sales Decrease in profit due to increase in SG&A expenses -315 -95 -160 -408 -546 Decrease in profit due to decrease in gross profit margin Increase in profit due to increase in net sales Decrease in profit due to increase in SG&A expenses Decrease in profit due to decrease in gross profit margin Increase in profit due to increase in net sales Increase in profit due to decrease in SG & A expenses Decrease in profit due to decrease in gross profit margin Decrease in profit due to decrease in net sales Decrease in profit due to increase in SG & A expenses Decrease in profit due to decrease in gross profit margin Increase in profit due to increase in net sales Decrease in profit due to increase in SG & A expenses Decrease in profit due to decrease in gross profit margin Decrease in profit due to decrease in net sales Decrease in profit due to increase in SG & A expenses Increase in profit due to increase in gross profit margin Decrease in profit due to decrease in net sales 0 Six months ended September 30, 2021 5,000 4,000 3,090 3,000 Other Six months ended September 30, 2022 6#71-4. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, Topics Affecting the Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Rising prices of raw materials 2023 P タキロンシーアイ Raw material prices rose sharply from the previous year due to high resource prices and foreign exchange rate effect. Price shifting has been ongoing since last fiscal year. There is a time lag (about 3-6 months) in shifting higher raw material prices to product prices. Shanghai lockdown Three operating companies based in Shanghai stopped operations from the end of March to the end of May (resumed operations from June). Estimated impact: Negative impact of approximately 200 million yen (operating income) for the 3 companies Effect of foreign exchange rate Positive impact of conversion of overseas operating companies into yen (Year-on-year sales: +1,839 million yen, operating income: +184 million yen) 7#81-5. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Net Sales and Operating Income by Segment Net sales P タキロンシーアイ Operating income Specialty Films Construction Specialty Films Business 12,457 million yen Other 0.5% Materials Business 22,259 million yen Business 483 million yen Other 1.2% ② Construction Materials Business 1,154 million yen A SANZIP Department 2.5% Housing Materials BONSET Department Department 18.4% 14.7% Total net sales High Functional Materials 72,515 million Flooring & Decorative Materials yen Department 16.1% Department 12.3% Infrastructure Materials Department 12.3% Agricultural Materials High Functional Materials Business 11,665 million yen Department 23.2% Environmental Materials Business 25,774 million yen SANZIP Department 2.1% BONSET Department 13.5% Housing Materials Department Operating income total 24.4% 3,090 million yen High Functional Materials Department 46.1% High Functional Materials Business 1,424 million yen Flooring & Decorative Materials Department 12.9% ما لالة ہلے Agricultural Materials Department 9.3% Infrastructure Materials Department -9.6% Environmental Materials Business -8 million yen 8#91-6. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Quarterly Trends by Segment Net sales by segment (millions of yen) 15,000 14,419 13,260 13,267 13,329 12,506 11,935 11,319 11,035 12,864 10,444 11,223 10,718 P タキロンシーアイ 2022 2023 10,000 5,000 5,927 5,418 5,738 5,081 5,617 5,507 6,754 5,703 5,608 5,466 5,440 4,836 0 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q Construction Materials Operating income by segment (millions of yen) 1,000 500 1,039 851 582 572 498 327 0 1Q 2Q 3Q 4Q 1Q 2Q Construction Materials 465 351 320 Environmental Materials 268 1,019 High Functional Materials 874 734 719 671 685 549 Specialty Films 2022 2023 411 239 104 491 18 -27 -8 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q L Environmental Materials High Functional Materials Specialty Films 9#10* 1-7. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Key Related Trends P タキロンシーアイ Segment Related indicator FY20-FY21 FY21-FY22 New housing starts Construction Materials Segment L Environmental Materials Segment Renovation work on condominiums Demand for agricultural materials Status of civil engineering and public works High Functional Demand for Materials semiconductors Segment FY2023 Overview Previous fiscal year saw a recovery from the effects of the COVID-19, but we see a slight downward trend in this fiscal year. Business continued to be strong as orders for projects postponed due to the impact of the COVID-19 continued to be placed. Renewal demand declined due to higher prices of fertilizers and various materials due to higher raw material prices. As for projects related to our company, business has been sluggish due to continuous suspension and postponement of construction. Global demand for semiconductors appears to be stabilizing, but demand for semiconductor manufacturing equipment remains strong. Specialty Films PET bottle Segment consumption trends Demand remained strong, particularly in Europe and the United States. Relevant indicators and general conditions were determined in our company based on interviews with business partners of our company and are not based on public data. 10#111-8. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Overview by Segment: Construction Materials Business Segment Construction Materials Business Segment (Housing Materials Business, Flooring and Decorative Materials Business) J タキロンシーアイ Net sales in the Housing Materials Business decreased slightly due to sluggish sales of non-residential properties and livestock materials, affected by a decrease in capital investment due to higher prices of construction materials and livestock feed, despite an increase in net sales due to product price increases. Operating income increased due to lower fixed costs and higher product prices, despite higher raw materials and logistics costs. In the Flooring and Decorative Materials Business, net sales for Flooring Materials Business increased due to the steady sales growth in renovation work of condominiums. In the Decorative Materials Business, sales declined due to a slowdown in the European market, the mainstay of overseas markets, and continued delays in recovery in China and Asia. ■ Operating income declined due to the significant impact of slowdown in the European market, which is the mainstay of the Decorative Materials Business. Construction Materials Business (millions of yen) Six months ended September 30, 2021 Six months ended September 30, 2022 2Q total 1st Q 2nd Q 2Q total Results Results Results Results Year on year Net sales Construction Materials 22,380 11,223 11,035 22,259 Business total -120 (-0.5%) Housing Materials Business 13,365 6,527 6,797 13,324 -40 (-0.3%) Flooring and Decorative 9,014 4,696 4,238 8,934 Materials Business -79 (-0.9%) Operating income Construction Materials 1,366 582 572 Business total (6.1%) (5.2%) (5.2%) 1,154 (5.2%) 621 318 435 Housing Materials Business (4.7%) (4.9%) (6.4%) 753 (5.7%) -211 (-15.5%) 132 (+21.3%) Flooring and Decorative Materials Business 744 264 136 (8.3%) (5.6%) (3.2%) 400 (4.5%) -344 (-46.2%) 11#121-9. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Overview by Segment: Environmental Materials Business Segment Environmental Materials Business Segment (Agricultural Materials Business and Infrastructure Material Business) J タキロンシーアイ In the Agricultural Materials Business, last-minute demand continued to occur as price revisions in line with demand periods spread from western Japan to eastern Japan, and overall agricultural materials remained firm, resulting in increased net sales. Operating income declined due to soaring raw material prices. The Infrastructure Material Business continued to experience a decline in the number of orders for civil engineering work and construction interruptions due to COVID-19 throughout the industry. Orders received in our company also continued to be affected by the long-term suspension of large-scale construction projects and changes in construction plans. Net sales decreased due to sluggish sales of Howell piping to large properties, which were firm in the previous fiscal year. Operating income decreased due to a time lag in product price increases in response to higher raw material prices in addition to decreased sales. Environmental Materials Business язв (millions of yen) Six months ended September 30, 2021 Six months ended September 30, 2022 2Q total 1st Q 2nd Q 2Q total Results Results Results Results Year on year Net sales Environmental Materials 26,194 12,506 13,267 25,774 Business total -419 (-1.6%) Agricultural Materials 104 16,752 8,427 8,429 16,857 Business (+0.6%) Infrastructure Materials 9,441 4,079 4,838 8,917 Business -523 (-5.5%) Operating income Environmental Materials 671 18 -27 -8 -680 Business total (2.6%) Agricultural Materials 414 Business (2.5%) (0.1%) 215 (2.6%) (-0.2%) (---) (---) 74 289 (0.9%) (1.7%) -124 (-30.1%) Infrastructure Materials 257 -196 -101 -298 -555 Business (2.7%) (-4.8%) (-2.1%) (-3.3%) (---) 12#131-10. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Overview by Segment: High Functional Materials Business Segment High Functional Materials Business Segment In the High Functional Materials Business, J タキロンシーアイ sales of industrial plates and engineering plastics for manufacturing equipment remained at high levels due to continued strong demand for semiconductors. Sales of nanomaterials for electronic circuit boards remained steady throughout the period. Sales of acetate plates for eyeglass frames continued to grow due to strong demand from overseas brands. Sales of micro motors decreased due to the shutdown caused by the Shanghai lockdown, but after resuming operations, full operation returned and sales rapidly recovered. Operating income declined due to soaring raw material prices. High Functional Materials Business Net sales (millions of yen) Six months ended September 30, 2021 Six months ended September 30, 2022 2Q total 1st Q 2nd Q 2Q total Results Results Results Results Year on year High Functional Materials 10,589 5,738 5,927 11,665 Business total 1,076 (+10.2%) Operating income High Functional Materials 1,753 874 549 Business total (16.6%) (15.2%) (9.3%) 1,424 (12.2%) -329 (-18.8%) 13#141-11. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023 Overview by Segment: Specialty Films Business Segment Specialty Films Business Segment (BONSET Business and SANZIP Business) In the BONSET Business, shrinkable film sales were strong in Japan and the European market. P タキロンシーアイ In the North American market, net sales increased due to product price hikes and the yen's depreciation, although the tight situation forced us to struggle in quantity. Operating income declined due to soaring raw material prices. In the SANZIP Business, while domestic sales of zipper tapes were strong, overseas sales declined due to the Shanghai lockdown, which forced our company to suspend operations for two months. Operating income declined due to a sharp rise in raw material prices and the effects of the Shanghai lockdown. Specialty Films Business (millions of yen) Six months ended September 30, 2021 Six months ended September 30, 2022 2Q total 1st Q 2nd Q 2Q total Results Results Results Results Year on year Net sales Specialty Films Business 11,049 5,703 6,754 12,457 total 1,408 (+12.7%) BONSET Business 9,084 4,909 5,778 10,687 1,603 (+17.7%) SANZIP Business 1,965 794 975 1,769 -195 (-9.9%) Operating income Specialty Films Business total 1,096 -8 491 (9.9%) (-0.1%) (7.3%) 483 (3.9%) 880 -39 BONSET Business (9.7%) (-0.8%) 457 (7.9%) 417 (3.9%) -613 (-56.0%) -463 (-52.6%) 216 31 34 65 SANZIP Business (11.0%) (4.0%) (3.5%) (3.7%) -150 (-69.6%) 14#151-12. Consolidated Financial Results for the first six months of the fiscal year ending March 31, 2023 Consolidated Balance Sheets P タキロンシーアイ (millions of yen) Assets (millions of yen) As of March 31, 2022 As of September 30, Increase/ 2022 decrease Current assets 94,403 99,881 +5,477 Current 99,881 94,403 assets Increase in inventories (+4,296) Cash and deposits 7,790 6,706 -1,083 +5,477 Accounts receivable - trade 47,119 46,301 -817 Inventories Non- current 52,657 53,314 assets +657 March 31, 2022 Increase in machinery, 23,884 28,180 +4,296 equipment and vehicles (+914) Other 15,610 18,693 +3,083 Non-current assets 52,657 September 30, 2022 53,314 +657 Property, plant and 41,394 42,126 +732 equipment Liabilities/Net assets (millions of yen) Intangible assets 2,485 2,614 +129 55,005 Liabilities +4,451 59,457 Increase in trade payables (+2,773) Investments and other assets 8,777 8,573 -203 Total assets 147,061 153,196 +6,134 Total liabilities 55,005 59,457 +4,451 Increase in foreign (Interest-bearing 93,738 92,055 Net assets +1,683 currency translation 3,914 5,660 liabilities) +1,745 adjustments (+1,311) Total net assets 92,055 93,738 +1,683 March 31, 2022 September 30, 2022 Capital-to-asset ratio 61.4% 59.9% -1.5% 15#161-13. Consolidated Financial Results for the first six months of the fiscal year ending March 31, 2023 Consolidated Statements of Cash Flows P タキロンシーアイ Free cash flow decreased by2,894 million yen to -806 million yen from 2,088 million yen in the second quarter of fiscal 2022. As deposits paid can be considered substantially as deposits, free cash flow excluding the impact is 2,300 million yen. Profit before income taxes +3,044 Depreciation +2,607 Income taxes paid -671 Purchase of property, plant and equipment -1,614 Decrease (increase) in deposits paid -3,107 +4,446 Cash flows from operating activities -5,253 Cash flows from investing activities Dividends paid -1,559 Cash and cash equivalents at beginning of FCF: -806 million yen period 7,790 April 1, 2022 (millions of yen) -525 Cash flows from financing activities +248 Effect of exchange rate change on cash and cash equivalents Cash and cash equivalents at end of period 6,706 September 30, 2022 16#17タキロンシーアイ The Fiscal Year Ending March 31, 2023 2 Consolidated Financial Results Forecast 17#182-1. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 Consolidated Statements of Income P タキロンシーアイ (millions of yen) Results Fiscal year ended March 31, 2022 (cumulative) Forecast Fiscal year ending March 31, 2023 (cumulative) Year on year Amount Percentage Amount Percentage Increase/ Rate of decrease change Net sales 141,936 100.0% 150,000 100.0% +8,063 +5.7% Gross profit 39,822 28.1% 41,400 27.6% +1,577 +4.0% Selling, general and 31,171 22.0% 33,200 22.1% +2,028 +6.5% administrative expenses Operating income 8,651 6.1% 8,200 5.5% -451 -5.2% Ordinary profit 9,084 6.4% 8,400 5.6% -684 -7.5% Profit attributable to owners of 6,660 4.7% 5,400 3.6% -1,260 -18.9% parent Overseas net sales Earnings per share ROA ROE 25,192 17.7% 68.47yen 55.53 yen -12.94 yen -18.9% 4.6% 3.7% 7.6% 6.0% 18#192-2. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 Dividend Forecast P タキロンシーアイ Dividend transition The year-end dividend forecast for fiscal 2022 is 22 yen per share. Dividend per share: yen 40 35 30 30 25 25 20 20 15 26.0 10 5 39.6% 0 FY2018 56.6% 37.0 FY2019 Payout ratio 60.0% 50.0% Payout ratio 40.2% 39.5% 39.7% 40.0% 30.0% 20.0% 27.0 22.0 22.0 FY2020 FY2021 10.0% 0.0% Forecast for FY2022 (Note) Payout ratio is calculated excluding extraordinary loss or income. (For the fiscal year ended March 31, 2020, “FY2019❞ calculated at 27 yen excluding the commemorative dividend of 10 yen) 19#202-3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 Net Sales and Income P タキロンシーアイ Operating income margin (total) Net sales (millions of yen) 6.3% 6.0% 6.1% 5.5% 5.3% Operating income (millions of yen) 160,000 150,650 18,000 150,000 Other 520 141,936 139,432 100 134,470 16,000 140,000 664 20,824 531 23,300 Specialty Films 448 21,352 19,684 19,464 14,000 120,000 18,935 High Functional 22,100 17,267 21,625 Materials 12,000 17,478 100,000 10,000 80,000 61,867 Environmental 55,639 56,800 53,874 8,000 Materials 54,930 60,000 6,000 40,000 9,080 8,511 8,651 48,502 20,000 7,372 46,310 42,147 44,418 8,200 4,000 47,700 2,000 Construction Materials 0 0 Net sales Operating income Net sales Operating Net sales Operating Net sales Operating Net sales Operating income income income income FY2018 FY2019 FY2020 FY2021 Forecast for FY2022 20 20#21タキロンシーアイ TOPIC Investment for Increased Production of Zipper Tapes 21#22Investment in Increased Production of Zipper Tapes P タキロンシーアイ Capital investment Capital investment of 700 million yen to increase production of zipper tapes and to establish a production system with two domestic bases. SANZIP Business (zipper) Capital investment of approximately 700 million yen was made to establish a system aimed at increasing production of SANZIP Tape, zipper tape and to establish a production system with two domestic bases. [Production capacity] Domestic production capacity increased by 20% in March 2023 [Stable supply] Stable supply by increasing production capacity and establishing two domestic bases [DX] We aim to further improve production technology by automating equipment and promoting a digital transformation. Zipper tape Background [Quality] The highest level of quality is required in food and medical product applications, which account for 80% of the market in Japan, and the need for domestic products is high. [Market Expansion] The domestic market is expected to grow by 2-3% in the coming years, due to the improved hygiene concept caused by the COVID-19 pandemic and the growing demand for reclosable features that reduce food loss. [Stable supply, BCP] Production at multiple bases to meet strong demand and ensure stable supply. In addition to the C.I. TAKIRON Hiratsuka Plant, we have installed a production facility for SANZIP Tape at BONPACK CO., LTD., a domestic operating company. SHANGHAI SANPLUS PLASTIC CO., LTD. (SHANGHAI SANPLUS), an operating company in Shanghai, will be included in the three bases. C.I. TAKIRON Hiratsuka Plant 22#23タキロンシーアイ Information Notice Concerning Issuance of Integrated Report 2022 23 23#24P タキロンシーアイ Issue Integrated Report 2022 C.I. TAKIRON C.I. TAKIRON Group Integrated Report 2022 Point Allattard® Detailed description of sustainability management • Disclosure of carbon neutral strategy • Enhancement of non-financial information Outcome Value creation process diagram Dialogue with Stakeholders ▶P.61 Engagement with Stakeholders Output P.21 A Driving Force for Change Construction Materials Business Polycarbonate building materials, housing materials, piping and pluming equipment, flooring materials, decorative materials, s, water damage prevention materials Safety and Security Environmental Materials Business Agricultural materials, binding materials, infrastructure materials, civil engineering products, liquid, chemical tanks Comfort and Peace of Mind, Mission Creating a people- and earth- friendly future Resilience* "Ablity to respond to and recover from social difficulties and crises such as natural disasters and social infrastructure Sustainability Management Sustainability Vision Supporting today, changing tomorrow C.I. TAKIRON 2030 Vision Material -term formation P.17 Commit to 7 Procurement ▶P36 Materiality CX2023 Plan (CX2023) Production Marketing/Research & Development After-sales Services/ Technological Guidance Five Strengths Polymer Processing Technology Product Development and Design Capabilities 3 Customers First 4 Trusted Relationships with Business Partners > Climate Leveraging Individuality Corporate Culture Pride in our accumulated value and the courage to transform Sales High Functional Materials Business Heat-shrinkable films, zippers Environment Specialty Films Business Plastic sheets, machining materials, micro motors New capital acquisition P5 Finandal Non-financial Highlights Financial capital Capital Manufacturing capital Human capital Intellectual capital Social capital Natural capital Please refer to the following URL for the Integrated Report 2022. https://takiron-ci-catalog.meclib.jp/integrated report 2022/book/index.html 24#25タキロンシーアイ Appendix Company Overview and Our Company Features 25 25#261. Corporate and Stock Information (As of September 30, 2022) Company Information Trade name Established Incorporated Head office address Telephone C.I. TAKIRON Corporation October 10, 1919 December 20, 1935 3-1-3 Umeda, Kita-ku, Osaka, 530-0001, Japan (North Gate Building) +81 (6)-6453-3700 https://www.takiron-ci.co.jp Major shareholders Name of shareholder ITOCHU Corporation The Master Trust Bank of Japan, Ltd. (trust fund) P タキロンシーアイ Shareholding ratio (%) 55.51% 6.46% Custody Bank of Japan, Ltd. (trust fund) 2.02% Sekisui Jushi Corporation 1.40% Kaneka Corporation 1.35% C.I. TAKIRON Employee Stock Ownership Association 1.26% DFA INTL SMALL CAP VALUE PORTFOLIO 1.00% Capital Number of employees (consolidated) 3,227 (as of March 31, 2022) RE FUND 107-CLIENT AC Watanabe Pipe Co., Ltd. The Master Trust Bank of Japan, Ltd. (employee pension trust CBC account) 0.90% 0.66% 0.41% Website 15,204 million yen Stock information Securities code 4215 Securities company 0.77% Total number of 97,553,655 issued shares Foreign person- 7.59% Number of shareholders Stock listing 13,231 Financial institution 9.60% Share unit Tokyo Stock Exchange Prime Market 100 Individuals and others 15.47% Shareholder distribution Shareholder register Sumitomo Mitsui Trust Bank, Limited administrator Accounting auditor Deloitte Touche Tohmatsu LLC Treasury stock 0.02% Other domestic corporations 66.55% List of major participating organizations (as of May 31, 2022) Kansai Chemical Industry Association Kansai Economic Federation CLOMA (Japan Clean Ocean Material Alliance) Japan PVC Pipe and Fittings Association Japan Agricultural Cooperatives Packaging and Gardening Materials Association Nippon Interior Association Japan Vinyl Goods Manufacturer's Association The Japan Plastics Industry Federation JAPAN PLASTIC SHEET ASSOCIATION Agricultural Film Recycling Promotion Association 26#272. Company history Takiron Co., Ltd. Takigawa Celluloid Plant was founded. ■Takikawa Celluloid Co., Ltd. was established. ■Renamed Takiron Chemical Co., Ltd. Renamed Takiron Co., Ltd. 1961 ■Subsidiary in China was established. ⚫ Shanghai Takiron Plastics Co., Ltd. Ibogawa Plant newly established and started operation. 1919 1935 1959 1973 1996 2000 ■Listed on the ■Listed on the First Section of the Tokyo Stock Exchange. Founder: Sataro Takikawa P タキロンシーアイ C.I. TAKIRON Corporation タキロンシーアイ、 始動。 「タキロンシーア 905-ELELA. 75XF9OTEL.ZUT- シナジーそして、リーデ 「タキロンシーアイ」 します。 ふたつの「可能性」が、ひとつの「未来」へ。 Second Section of the Osaka Securities Exchange. C.I. Kasei Co., Ltd. 1963 1967 Steady business expansion as paper, wood, and iron are replaced by plastics Company name changed to C.I. Kasei Co., Ltd. Merged with Kobe Resin Co., Ltd. 1989 ■Listed on the Second Section of the Tokyo Stock Exchange. Listed on the First Section of the Tokyo Stock Exchange. 2009 2017 タキロンシーアイ ロンシーアイをしています。 100-year anniversary ■ Management integration • Company name changed to C.I. TAKIRON Corporation. 1971 Established as Hama Kasei Co., Ltd. ⚫ Joint investment by Furukawa Group companies such as the Yokohama Rubber Co., Ltd. and Zeon Corporation • Transfer of synthetics business rights from Yokohama Rubber 1993 1995 Bonset America Co. was established. ■Capital participation by ITOCHU Corporation ⚫ Share transfer from Yokohama Rubber, etc. ■Becoming a wholly owned subsidiary of ITOCHU Corporation Delisting from the First Section of the Tokyo Stock Exchange 27#283. Domestic Bases Domestic manufacturing bases: 25 Yasutomi Plant Okayama Plant (CIK NANOTEK) C.I. TAKIRONCIVIL Ako Plant TAKIRON POLYMER Head office plant SANWA SIGNWORKS Kyoto Plant Shiga Plant Shiga R&D Center Ibogawa Plant Aboshi Plant (TAKIRON TECH) C.I. TAKIRONCIVIL - Yokaichi Plant P タキロンシーアイ HOKKAIDO SANPLUS Ishikari Plant HOKKAIDO SANPLUS Teine Plant C.I. TAKIRONCIVIL Eniwa Plant Tochigi Plant BONPACK Tochigi Plant DAILITE Ryugasaki Plant Sano Plant C.I. TAKIRONCIVIL Tsuchiura Plant TAKIRON TECH SANWA SIGNWORKS Saitama Plant Mita Plant Hiratsuka Plant Tokyo Plant (SANWA SIGNWORKS) 28#294. Overseas Bases Overseas manufacturing bases: 6 BONLEX EUROPE Veneto, Italy P タキロンシーアイ BONSET AMERICA (North Carolina, USA) H SHANGHAI SANPLUS PLASTIC (Shanghai, China) SHANGHAI CIK ELECTRONICS (Shanghai, China) PT. TAKIRON INDONESIA (Indonesia Surabaya) BONSET LATIN AMERICA (Uruguay) 29 29#305. Group Overview C.I. TAKIRON Group Construction Materials Business Housing Materials Department Flooring & Decorative Materials Department Environmental Materials Business Agricultural Materials Department Infrastructure Materials Department High Functional Materials Business High Functional Materials Department Specialty Films Business BONSET Department SANZIP Department Other affiliated companies Domestic SANWA SIGNWORKS C.I. TAKIRON PLUS TAKIRON MATEX HOKKAIDO SANPLUS ● C.I. TAKIRONAGRI C.I. MATEX DAILITE C.I. TAKIRONCIVIL TAKIRON POLYMER CIK NANOTEK TAKIRON-ROWLAND BONPACK P タキロンシーアイ Overseas BONLEX EUROPE PT. TAKIRON INDONESIA SHANGHAI CIK ELECTRONICS BONSET AMERICA BONSET LATIN AMERICA SHANGHAI SANPLUS PLASTIC TAKIRON TECH C.I. TAKIRON LOGISTICS DAIPLA WINTES • MAVERIQ Partners ● SHANGHAI C.I. KASEI TRADING 30 30#31Construction Materials Business P タキロンシーアイ The Housing Materials Business handles water treatment products such as gutters and drainage basins, and Lume Wall, high-insulation hollow panels made of polycarbonate resin, which are widely used for natural indoor lighting from houses to non-residential properties. The Flooring and Decorative Materials Business handles flooring materials with excellent anti-slip properties that protect the safety of poolside, apartment hallways, stairs, etc., as well as decorative films that enhance the design of interiors and buildings. Lume Wall: high-insulation hollow panel made of polycarbonate resin Housing Materials Business Plate made of polycarbonate resin Top Market Share Housing materials (rain gutters, etc.) Pipe work equipment Flooring and Decorative Materials Business Anti-slip vinyl floor sheet Top Market Share Interior and exterior decorative materials Decorative material made of resin Strengths of major businesses • Polycarbonate molding and processing technology Japan's best production capacity for polycarbonate building materials • Having top share of polycarbonate made lightning building material and anti-slip vinyl chloride floor material Comprehensive development capability to add functionality to decorative materials • Global expansion through overseas production bases (BLX) 31#32Environmental Materials Business L P タキロンシーアイ The Environmental Materials Division consists of the Agricultural Materials Business, which proposes the optimal environment for agricultural cultivation, and the Infrastructure Material Business, which supports the development of a safe and secure social environment. Agricultural Materials Business contributes to agricultural development with a focus on high-performance agricultural films. The Infrastructure Material Business supports social infrastructure through the manufacture and construction of waterproof and impervious sheets, high-density polyethylene pipes, and other related materials. Agricultural film Top Market Share Agricultural Materials Business Packaging material Irrigation tube Strengths of major businesses Industry share • Production technology capability • Sales system and customer support • Responsibilities from manufacturing and sales to design, processing, and construction Impervious sheet Top Market Share Infrastructure Materials Business Water expansion cutoff material Top Market Share High-pressure polyethylene pipe (Handling: affiliated companies) Large polyethylene resin tank (Handling: affiliated companies) Water stop plate Top Market Share 32#33High Functional Materials Business ■ Plate Business handling PVC, PC, PET, and other general-purpose and functional resin plates ■Motor Business dealing with micro motors ■Composed of group companies handling ultrafine particles, engineering plastics, and acetate plates P タキロンシーアイ ■ Offering products in a wide range of fields, from semiconductor manufacturing equipment and other products that support the industrial base to products that enrich people's lives Industrial plate Top Market Share Plate Business Highly functional polycarbonate plate Antistatic plate Top Market Share Motor Business Micro motor LUMEX Avance-25 10408 Acetate plate (Handling: affiliated companies) Uses: eyeglass frames Ultrafine particle material (Handling: affiliated companies) TanoTe TanoTek NanoTe NanoTe aroTek TIO₂ BO ALO コバルトブルー SO NanoTek YO NanoTe NanoTek NanoTek TO-R CeO ZnO Cuo SnO NanoTe NanoT Filtration plate/Large cutting (Handling: affiliated companies) Strengths of major businesses Technology accumulated over many years in the industry. Rich lineup of high-performance products to meet customer needs Strong sales network High quality and brand strength 33#34Specialty Films Business quam dental P タキロンシーアイ BONSET is a brand of shrinkable film (heat-shrinkable film) born in Japan. Utilizing the characteristics of various materials, it is used for various applications and contents such as labels, cap seals, and molded products. SANZIP is a plastic zipper tape brand used in various fields, including food products. Heat-shrinkable film Uses: beverage labels, etc. BONSET Business (heat-shrinkable film) Environmentally friendly products Botanical film Respond to worldwide demand with a global tripartite structure (Japan, North America, and South America) C.I. TAKIRON Okayama Plant PS film Bonset America PET film/PVC film CL TAKIRON CLTAKIRON CITAKIRO CATARIN CL TAKIRON CITAKIRON SANZIP Business (zipper) Zipper tape Uses: pouches for food packaging, etc. Environmentally friendly products Cellulose-containing zipper 7 Bonset Latin America PET film/PVC film Strengths of major businesses • Manufacturing and processing technology and knowledge accumulated over many years • Manufacture of a wide variety of products for specific applications using our unique blending technology • With production bases in Japan (Hiratsuka and Okayama) and overseas (China, the United States and Uruguay), we are building a global optimal production and sales network (supporting BCP). • Meticulous response to customer needs through in-house production of dies (SANZIP) Expansion and development of environmentally friendly products and their lineups such as biodegradation, monomaterials, and biomass 34#35Results by Segment for the First Six months of the Fiscal Year Ending March 31, 2023 P タキロンシーアイ (Business) Net sales Results for the six months ended September 30, 2021 Results for the six months ended September 30, 2022 (millions of yen) Increase/ Amount Percentage Amount Percentage decrease Rate of change Total net sales Construction Materials Business total Housing Materials Business 70,417 100.0% 72,515 100.0% +2,097 +3.0% 22,380 31.8% 22,259 30.7% -120 -0.5% 13,365 19.0% 13,324 18.4% -40 -0.3% Flooring and Decorative Materials Business 9,014 12.8% 8,934 12.3% -79 -0.9% Environmental Materials Business total 26,194 37.2% 25,774 35.5% -419 -1.6% Agricultural Materials Business 16,752 23.8% 16,857 23.2% +104 +0.6% Infrastructure Materials Business 9,441 13.4% 8,917 12.3% -523 -5.5% High Functional Materials Business total 10,589 15.0% 11,665 16.1% +1,076 +10.2% Specialty Films Division total 11,049 15.7% 12,457 17.2% +1,408 +12.7% BONSET Business SANZIP Business Operating income 9,084 12.9% 10,687 14.7% +1,603 +17.7% 1,965 2.8% 1,769 2.5% -195 -9.9% (millions of yen) Amount Profit ratio Percentage Amount Profit ratio Percentage Increase/ decrease Rate of change Total operating income 4,792 6.8% 100.0% 3,090 4.3% 100% -1,702 -35.5% Construction Materials Business total Housing Materials Business 1,366 6.1% 28.5% 1,154 5.2% 37.3% -211 -15.5% 621 4.7% 13.0% 753 5.7% 24.4% +132 +21.3% Flooring and Decorative Materials Business 744 8.3% 15.5% 400 4.5% 12.9% -344 -46.2% Environmental Materials Business total 671 2.6% 14.0% -8 www -0.3% -680 Agricultural Materials Business 414 2.5% 8.6% 289 1.7% 9.3% -124 -30.1% Infrastructure Materials Business 257 2.7% 5.4% -298 -3.3% -9.6% -555 --- High Functional Materials Business total 1,753 16.6% 36.6% 1,424 12.2% 46.1% -329 -18.8% Specialty Films Division total 1,096 9.9% 22.9% 483 3.9% 15.6% -613 -56.0% BONSET Business 880 9.7% 18.4% 417 3.9% 13.5% -463 -52.6% SANZIP Business 216 11.0% 4.5% 65 3.7% 2.1% -150 -69.6% 35#36Contact Information for IR C.I. TAKIRON Corporation Sustainability Strategy Department Corporate Communication Group Phone: +81 (3)-6711-3718 e-mail: [email protected] Cautionary notes regarding forward-looking statements This material is for the purpose of providing information to investors only, and is not intended to solicit sales. Forward-looking statements in this document are based on goals and projections and are not guarantees of future performance. Please also be aware that our company's future results may differ from our company's current expectations. In addition, although our company prepares forward-looking statements of the industry, etc. based on reliable data, our company does not guarantee the accuracy or completeness of such statements. These materials are provided on the assumption that investors will use them at their own discretion and responsibility no matter what purpose they are used for, and our company assumes no responsibility whatsoever. 36