ダイセル（4202） – 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results

3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results February 2, 2022 Index 1. Highlights 2. External Environment 3. Consolidated Financial Results 4. Forecast – FY ending March 2022 5. References ••••••Trend in Net Sales, Operating Income, and EPS Trend in Acetic Acid Market Condition and Factors of Market Changes Segment Information Quarterly Results for Sales and Operating income Financial Forecast (FY ending March 2022) Assumptions P. 3 P. 4 P. 7 P. 13 P. 16 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 2 1. Highlights Highlights •••◇ 2022/3 3rd Quarter (Apr. to Dec.) Financial Results Sales Revenue: 343.0 billion yen, Operating Profit: 39.3 billion yen * The profit beyond the forecasts announced on November 2021 Sales revenue and operating profits exceeded the forecasts in Medical/Healthcare, Smart, Materials, Engineering Plastics due to the reason for this is the increase in sales volume of some products such as cellulose acetate for LCD films and the promotion of rising sales price, as well as the effects on the acetic acid market condition and foreign exchange. • An impairment loss of 9.8 billion yen was recorded as an extraordinary loss in Medical/Healthcare. • Net income attributable to owners of the parent was 23.5 billion yen ◇ 2022/3 Full-year Forecasts Sales Revenue: 462.0 billion yen, Operating Profit: 49.5 billion yen (upward revision) • We have upwardly revised our consolidated earnings forecast for the full fiscal year, based on the operating results for nine months(Apr. to Dec.) of the current consolidated period, exchange rate, demand forecast and procurement prices of raw materials. • We have upwardly revised the forecast of net income attributable to owners of the parent company to 29.0 billion yen. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 3 2. External Environment Trend in Market Segment Main Product Main Market Results of 2022/3 3Q (Apr. to Dec.) Raw Material for Cosmetics and Health Food Cosmetics Healthcare The domestic market of cosmetics has remained sluggish. In contrast, Chinese market became active through early recovery from Covid-19. The domestic health food market has remained strong due to rising health consciousness during Covid-19. Medical Healthcare Smart Chiral Columns Life Science TAC(*), High Performance Films, Resist Materials and Solvents for Electronic Materials Electronic Devices Semiconductor Safety Inflator for Air Bag Automotive The demand for chiral columns has been solid benefiting from the growing demand for US research organizations and universities after the coronavirus pandemic and growth of the generic medicine market in China and India. The demand for liquid crystal display panel has been strong under the recovery from Covid-19. Many LCD manufactures have kept their operation ratio standard between October to December. The demand for other electronic devices has been also growing. The semiconductor market has been vigorous under the favorable demand. There were increases in demand for base stations and data centers along with expansion of 5G network. The number of production in automotive has been increased larger than previous year owing to the recovery from the coronavirus pandemic. Nevertheless, the scarce supply of components such as semiconductor still has a negative impact on the market. Outlook for 2022/3 4Q (Jan. to Mar.) The Chinese market of cosmetics is expected to be strong, However, it is still concerned about the recurrence of the Covid-19 and the economic impacts by New Year by the lunar calendar. The domestic market of health food is expected to be kept solid. Although there are concerns for Covid-19 in some area, the demand for chiral columns is expected to be solid. It is expected that LCD panel market will be decline by the reduction of production because of pausing the stay-at-home consumption. On the other hand, It is expected that the demands for other electronic devices and semiconductors will be kept strong. It is expected that the scarce supply of components for automotive will influence the production continuously. *TAC（Tri-acetyl cellulose）： Acetic Acid cellulose for LCD film use 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 4 2. External Environment Trend in Market Segment Main Product Main Market Results of 2022/3 3Q (Apr. to Dec.) Outlook for 2022/3 4Q (Jan. to Mar.) Material Raw Materials for Resins and Inks, Solvents for Paints The demand of vinyl acetate and PTA has remained strong under the recovery from Covid-19. However, due to the concern of supply disruption caused by North American cold wave and the reinforcement of environmental and electricity regulation of Chinese government, the market condition of acetic acid has been kept high. The demand of ethyl acetate also remained strong for various applications, including gravure inks. The market condition rose in line with the rise in the acetic acid market. Fiber Filter The global market of filter industry, which is the main user acetate tow, has remained strong under the recovery from Covid-19 The demand of vinyl acetate and PTA is expected to be solid. On the other hand, the supply of acetic acid will be recovered thus the market condition of it has been decreasing. The demand of ethyl acetate is also expected to remain strong. The Market condition is expected to fall due to a decline in the acetic acid market. The demand is expected to be solid because of the inventory expansion of manufactures for coping with the logistics disruption, as well as the recovery from Covid-19. Raw Materials for Electrical Materials and Coatings The automotive market, which is one of the main market of epoxy and caprolactone derivatives, have been damaged from the lack of semiconductor despite recovering from Covid-19. In contrast, the electronic devices market, which is another main market of them have been on the rise. It is expected that the automotive market will have been sluggish influenced by the lack of semiconductor continuously. On the other hand, the electronic devices market is expected to be strong. Acetyl (Acetic Acid, Acetic Acid Derivatives and Acetate Tow） Chemical Epoxy, Caprolactone Derivatives and Other Chemical Products） 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 5 2. External Environment Trend in Market Segment Main Product Main Market Results of 2022/3 3Q (Apr. to Dec.) Outlook for 2022/3 4Q (Jan. to Mar.) Although the decrease in automotive production caused by supply chain disruption has continued, the market of automotive parts has been solid because of the inventory expansion of automobile component manufactures. The market of automobile component is expected to be solid continuously. Engineering Plastic The demand for Smartphone and PC has remained solid. On the contrary, the demand for white goods has been sluggish due to pausing the stay-at-home consumption. The demand for Smartphone and PC is expected to remain solid. POM PBT PPS LCP Automobile Component Electricity, Electronic devices and precision machines Electronic Devices The demand for smartphone has been strong. In addition, there has been an increase of construction for new base stations under the spread of 5G technology. It is expected that the demand for electronic devices will be kept strong. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 6 3. Consolidated Financial Results Financial Results （billion yen） 21/3 3Q Results 22/3 3Q Results Y on Y Change ％ 281.4 343.0 +61.6 +21.9% 18.7 20.2 39.3 43.2 +20.6 +109.8% +23.0 +113.5% 11.2 23.5 +12.3 +109.2% Net sales Operating income Ordinary income Income attributable to owners of parent Exchange rate USD/JPY 106 111 •The demand recovered in a wide range of industries compared to the same period of the previous year, which was greatly affected by Covid-19. Therefore, sales volume increased mainly for Safety and Engineering Plastics. • Operating profits increased due to price corrections corresponding to rising raw material, fuel prices and transportation cost and improved profitability through structural reforms, although direct sales costs increased due to an increase in sales volume, a global shortage of containers under Covid-19, and soaring transportation costs due to rising fuel prices. • An impairment loss of 9.8 billion yen was recorded in Medical/Healthcare (the construction in process of new 1,3-BG Manufacturing Plant in Aboshi and the goodwill of the overseas subsidiary. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 7 Net Sales and Operating Income by Segment (Y on Y Analysis) （billion yen） 21/3 3Q Results 22/3 3Q Results Change % Quantity Exchange Rate Impact Analysis Prices 3. Consolidated Financial Results Net Sales Medical / Healthcare Smart Safety Materials Others Total Engineering Plastics Medical / Healthcare Engineering Plastics Smart Safety Materials Others Corporate Total 12.0 17.6 46.7 74.9 121.2 9.1 281.4 1.2 2.1 0.6 10.9 14.0 1.3 – 11.3 18.7 Operating Income 21/3 3Q Results 22/3 3Q Results Change % Analysis Quantity Prices Exchange Rate Impact Others 14.6 24.0 50.3 89.2 156.8 8.0 343.0 +2.6 +21.9% +6.5 +36.8% +7.8% +3.7 +14.3 +19.1% +35.6 +29.4% -11.4% +61.6 +21.9% -1.0 +2.2 +5.3 +1.1 – 0.4 +17.4 -1.0 +24.6 +0.4 +1.2 +2.5 +14.7 +18.2 – +37.0 2.6 4.9 4.4 18.3 19.5 1.1 – 11.5 39.3 +1.3 +110.5% +2.8 +134.0% +3.8 +671.6% +7.5 +68.8% +5.5 +39.1% -13.1% – 0.2 -1.5% – 0.2 +20.6 +109.8% +1.9 +2.8 +2.0 +1.0 +7.2 – 0.2 – +14.7 – 0.2 +0.2 +1.3 +5.2 +2.5 – – +9.0 +0.2 – 0.0 +1.0 +1.2 +0.9 – – +3.2 +0.4 +0.1 +3.0 +2.4 +4.0 – +9.9 – 0.4 – 0.2 +0.4 +1.3 – 4.2 – – 0.2 – 3.2 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results *Exchange rate impact is included in price impact. 8 3. Consolidated Financial Results Operating Income by Segment (Y on Y Analysis) Analysis Operating Income Factors for Operating Income Changes Quantity +1.9 (Increase) Increase in sales volume of 1,3-BG, Equol and Chiral columns. Medical / Healthcare Prices -0.2 (Decrease) Higher raw material prices Others -0.4 (Decrease) Cost increases Quantity +2.8 (Increase) Increase in sales volume due to strong demand for LCD panels Smart Prices +0.2 (Increase) Sales price increase due to rising raw material price and logistics cost Others -0.2 (Decrease) Cost increases Quantity +2.0 (Increase) Increase in sales volume due to acquisition of new projects Safety Prices +1.3 (Increase) Exchange rate fluctuation Others ＋0.4 (Increase) Inventory prices Quantity +1.0 (Increase) Increase in sales volume due to recovery in demand from Covid-19 Materials Prices +5.2 (Increase) Upward trends in the acetic acid market, Sales price increase due to rising raw material price and logistics cost, and Exchange rate fluctuation Others ＋1.3 (Increase) Inventory prices Quantity +7.2 (Increase) Increase in sales volume due to recovery in demand from Covid-19 Engineering Plastics Prices +2.5 (Increase) Sales price increase due to rising cost Others -4.2 (Decrease) Increase in direct selling expenses 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 9 3. Consolidated Financial Results Progression Rate to the Full-year Forecasts* （billion yen） Statements of Income 22/3 3Q Results 22/3 Forecasts (Full Year) Progression Rate (%) Net sales 343.0 448.0 76.6% Operating income 39.3 38.0 103.4% Ordinary income 43.2 42.0 102.8% Income attributable to owners of parent 23.5 24.0 97.9% Exchange rate USD/JPY 111 110 Medical / Healthcare Smart Safety Materials Engineering Plastics Others Corporate Total Net Sales and Operating Income by Segment Net sales Operating income 22/3 3Q Results 22/3 Forecasts (Full Year) Progression Rate (%) 22/3 1Q Results 22/3 Forecasts (Full Year) Progression Rate (%) 14.6 24.0 50.3 89.2 156.8 8.0 – 343.0 19.0 76.8% 30.0 80.1% 69.0 73.0% 116.0 76.9% 203.0 77.2% 11.0 73.0% – 448.0 76.6% – 2.6 4.9 4.4 18.3 19.5 2.7 95.2% 4.2 115.9% 5.0 87.0% 19.0 96.5% 21.5 90.8% 1.1 – 11.5 39.3 1.6 69.9% – 16.0 71.9% 38.0 103.4% •••Exchange rate (Oct. to Dec.) Forecasts: ￥110/US$ ⇒ Actual: ￥114/US$ Smart increased in sales revenue and operating profit mainly due to an increase in sales volume in display business. • Materials increased in sales revenue and operating profit due to an increase in sales volume in some products such as acetate tow, as well as the effects of the acetic acid market condition and foreign exchange,. Engineering Plastics increased in sales revenue and operating profit due to an effect of foreign exchange and price corrections for mainly POM and PBT corresponding to rising raw material, fuel prices and transportation cost, despite a decrease in sales volume due to a logistics disruption. * Forecasts of Fiscal Year ending March 2022 were announced on November 5, 2021. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 10 3. Consolidated Financial Results Progress of Large-scale Investment Project ◇ Renewal of Carbon Monoxide (Acetic Acid Raw Material ) Plant in Aboshi Toward the start of commercial operation in June 2022, we have conducted the trial operation since January 2022. ◇ New 1,3-BG Manufacturing Plant in Aboshi Toward the start of commercial operation in July 2022, we are shipping samples manufactured in this plant for customer’s approval. We have changed the business plan in consideration of the deterioration of the product market environment due to Covid-19 and the current trend of raw material and fuel costs. Therefore, we decided that it would be difficult to recover the investment we initially expected, and recorded Impairment loss of this plant for 8.4 billion yen. ◇ Outlook for Depreciation Cost of Large-scale Investment Project 2022/3 2023/3 2024/3 2025/3 2026/3 （billion yen） Current plan cf.) Mid-term Strategy (announced on Feb. 2021) cf.) Before Plan (announced on May 2021) 0 13.0 4.5 10.5 11.5 13.5 10.5 8.5 10.0 8.0 6.5 7.5 6.0 5.0 6.0 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 11 3. Consolidated Financial Results Consolidated Balance Sheet （billion yen） Mar. 31, 2021 Dec. 31, 2021 Change Total Current Assets Cash, Deposits and Short-term Investment Securities Notes and Accounts Receivable-trade Inventories Other Total Non-Current Assets Property, Plant and Equipment Intangible Fixed Assets Investments and Other Assets Total Assets Liabilities Other Total Net Assets Interest-bearing Liabilities Total Liabilities and Net Assets 312.5 91.5 93.2 108.7 19.2 327.9 219.7 10.6 97.5 640.4 395.4 270.9 124.4 245.0 640.4 334.3 +21.8 76.6 -14.9 99.7 +6.5 130.1 +21.4 27.9 +8.8 345.3 +17.5 679.6 +39.3 227.8 10.2 107.3 410.7 277.5 133.2 269.0 +8.1 -0.4 +9.7 +15.3 +6.5 +8.8 +24.0 679.6 +39.3 • •••The decrease of cash and deposit due to an increase in working capital. Building up inventories of engineering plastics, which had been decreasing due to increased demand from the recovery of COVID-19. Property, Plant and Equipment includes both increase and decrease; the investment of plant for Acetic Acid raw material and an impairment loss of plant for cosmetics raw materials, respectively. Increase in market value of cross-shareholdings. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 12 4. Forecast – FY ending March 2022 Full- year Forecasts 21/3 Results 22/3 Forecasts* 22/3 Revised Forecasts Y o Y vs Forecasts Change ％ Change ％ （billion yen） Net Sales 393.6 448.0 462.0 +68.4 +17.4% +14.0 +3.1% Operating Income 31.7 38.0 49.5 +17.8 +56.0% +11.5 +30.3% Ordinary Income 34.7 42.0 53.5 +18.8 +54.3% +11.5 +27.4% Income Attributable to Owners of Parent 19.7 24.0 29.0 +9.3 +47.1% +5.0 +20.8% Exchange Rate USD/JPY 106 110 112 R O I C E B I T D A 4.1% 4.8% 6.2% 586 662 777 * The forecasts were announced on November 5, 2021. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 13 4. Forecast – FY ending March 2022 Revised Forecasts – Operating Income（vs Forecasts Analysis ） （billion yen） • Increases in sales volume of cellulose acetate for LCD film and high performance films in Smart and acetate tow in Materials. • Promoting price corrections due to rising raw material and fuel prices and logistics costs. • Revise the assumption of procurement prices of raw materials for 4th Quarter. • Change in foreign exchange assumptions in 2nd half of the fiscal year Previous Plan: ￥110/US$, Actual and Current Plan:￥114/US$ • Change in assumptions of acetic acid market condition in 2nd half of the fiscal year Previous Plan: US$750, Actual and Current Plan: US$910 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 14 4. Forecast – FY ending March 2022 Forecasts – Net Sales and Operating Income by Segment （billion yen） Net Sales Medical / Healthcare Smart Safety Materials Others Total Engineering Plastics Medical / Healthcare Smart Safety Materials Others Corporate Total Engineering Plastics 21/3 Results 22/3 Forecasts 22/3 Revised Forecasts Y o Y vs Forecasts Change ％ Change ％ 16.2 24.7 67.2 104.2 168.6 12.7 393.6 1.6 3.4 2.2 17.9 21.2 1.5 -16.1 31.7 19.0 30.0 69.0 116.0 203.0 11.0 448.0 2.7 4.2 5.0 19.0 21.5 1.6 -16.0 38.0 19.5 32.0 69.7 119.8 210.0 11.0 462.0 3.1 6.0 6.2 24.0 24.0 1.6 -15.4 49.5 +3.3 +7.3 +2.5 +15.6 +41.4 +20.3% +29.5% +3.7% +15.0% +24.6% -1.7 -13.2% +0.5 +2.0 +0.7 +3.8 +7.0 – +2.6% +6.7% +1.0% +3.3% +3.4% – +68.4 +17.4% +14.0 +3.1% Y o Y vs Forecasts Change ％ Change ％ +98.6% +1.5 +2.6 +75.8% +4.0 +177.9% +33.9% +6.1 +13.4% +2.8 +8.0% +0.1 +4.1% +0.7 +56.0% +17.8 +0.4 +14.8% +1.8 +42.9% +1.2 +24.0% +5.0 +26.3% +2.5 +11.6% – +3.8% +11.5 +30.3% – +0.6 Operating Income 21/3 Results 22/3 Forecasts 22/3 Revised Forecasts * The forecasts were announced on November 5, 2021. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 15 REFERENCES 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 16 5. References Trend in Net Sales, Operating Income, and EPS Methanol(Asian spot price)（USD / ton） 375 372 439 345 382 338 412 267 277 261 254 Exchange Rate(USD/JPY) 110 100 120 109 111 111 109 106 112 79 82 ■Net Sales（billion yen） □Operating Income（billion yen） ◆EPS (yen) 358.5 341.9 413.8 443.8 449.9 440.1 463.0 464.9 462.0 412.8 393.6 64.3 64.3 58.9 51.2 115.02 124.61 107.81 105.38 29.6 49.5 97.05 31.7 65.18 15.49 51.3 88.95 37.9 64.98 26.2 43.71 20.4 33.46 ’12/3 ’13/3 ’14/3 ’15/3 ’16/3 ’17/3 ’18/3 ’19/3 ’20/3 ’21/3 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results ’22/3 Forecasts 17 5. References (USD/ton) 125010007505002500Trend in Acetic Acid Market Condition and Factors of Market Changes Acetic Acid Market Condition Methanol Market Condition 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 ◇The Main Factors of Acetic Acid Market Condition Changes in 2021 The Events Influenced upon Acetic Acid Market Condition The supply-demand balance tightened because of out of operation of US acetic acid manufactures due to Texas cold wave. Some manufactures declared force majeure. Month Year February 2021 April to June 2021 The supply-demand balance tightened because of periodical repair of Asian acetic acid manufactures including us. July 2021 The supply-demand balance eased because of recovery in acetic acid production, since a new acetic acid plant in China (500,000 metric of tons) launched its operation in the end of June and many Asian acetic acid manufactures finished their periodical repair. September 2021 The supply-demand balance tightened because of decline in acetic acid production of Chinese manufactures influenced by the reinforcement of environmental and electricity regulation of Chinese government in the middle to end of September. October 2021 The supply-demand balance eased because of recovery in acetic acid production of Chinese manufactures by the mitigation of environmental and electricity regulation of Chinese government. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 18 5. References Medical / Healthcare Smart Safety Segment Information – Results of 3rd Quarter (Oct. to Dec.) ＜vs Forecasts announced on Nov. 2021＞ ••••Sales revenue of 1,3-BG (Cosmetic ingredients) exceeded the plan because of an increase in sales volume due to shipments ahead of schedule from 4th quarter. Sales revenue of chiral separation business exceeded the plan because of increases in overseas sales volume of chiral column and stationary phases in addition to front loading in separation service and effects of foreign exchange rate. • Contrary to expectations, the operation of panel makers continued at a certain level. Therefore sales revenue of cellulose acetate for LCD films exceeded the plan due to an increase in sales volume. Sales revenue of high performance films increased because of increases in sales volume due mainly to new adoption for the surface of TV displays. Full production of solvents for electronic materials and resist materials continued. Sales revenue of resist materials increased compared to the plan due to increases in sales volume of new products in addition to increases in existing products. Inflator sales volume was on par with the plan, and sales revenue were almost as planed. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 19 5. References Segment Information – Results of 3rd Quarter (Oct. to Dec.) ＜vs Forecasts announced on Nov. 2021＞ Materials • Market conditions for acetic acid were higher than expected. Along with this, sales price of acetic acid derivative also increased more than planned. Therefore, Sales revenue of them increased. Sales revenue of acetate tow increased compared to the plan due to strong demand and effects of foreign exchange rate. Sales revenue of caprolactone derivatives exceeded the plan due to increase in sales volume and sales price revisions along with raw material price and logistics cost increases. Sales revenue of epoxy compounds also exceeded the plan due to increases in sales volume for applications for electronic devices. ••• Engineering Plastics Engineering Plastics increased sales revenue due to an effect of foreign exchange and price corrections corresponding to rising raw material, fuel prices and transportation cost, despite a decrease in sales volume due to a logistics disruption. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 20 5. References Medical / Healthcare Smart Segment Information – Outlook for 4th Quarter (Jan. to Mar.) ＜vs Forecasts announced on Nov. 2021＞ ••••Sales revenue of 1,3-BG (Cosmetic ingredients) is expected to decrease compared to the plan due to a decrease in sales volume because some shipped ahead of schedule in the 3rd quarter. Sales revenue of chiral separation business is expected to decrease compared to the plan because some separation services offered ahead of schedule in the 3rd quarter, despite strong oversea demand of chiral column and stationary phases. Sales revenue of cellulose acetate for LCD films is expected to exceed the plan due to an increase in sales volume, although our customers are expected to adjust inventory due to production adjustments by panel makers in 4th quarter. However, we expect demand for our products to be strong after customer inventory adjustments. Sales revenue of high performance films will increase compared to the plan because of increases in sales volume due mainly to new adoption for the surface of TV displays, despite the impact of a decrease in automobile production due to a shortage of semiconductors. Solvents for electronic materials and resist materials will be kept at full production, thanks to strong demand for semiconductor. Sales revenue of them are expected to exceed the plan because of price corrections corresponding to rising raw material price. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 21 5. References Safety Segment Information – Outlook for 4th Quarter (Jan. to Mar.) ＜vs Forecasts announced on Nov. 2021＞ Sales revenue of inflator is expected to exceed the plan due to recovery of automobile production. • Operating profit is expected to decrease compared to 3rd quarter profits due to the decrease in the operation of Chinese plant, which has a higher profit margin than other plants, because of the Chinese New Year. In order to improve the global profit margin, we will work on cost reductions at other plants ahead of schedule for the next fiscal year. Materials • Acetic acid market condition is expected to decline compared to 3rd quarter level. •Sales revenue of acetate tow is expected to exceed the plan because of securing of inventory by customers due to a logistics disruption. Sales revenue of caprolactone derivatives is expected to exceed the plan because of increases in sales volume in response to the increase in inquiries resulting from a global logistics disruption. Sales revenue of epoxy compounds is expected to be almost as planed. Engineering Plastics Engineering Plastics increased sales revenue due to price corrections corresponding to rising raw material, fuel prices and transportation costs, despite a decrease in sales volume due to a logistics disruption. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results Sales volume is expected to increase in the next fiscal year due to the end of sales adjustments to secure inventory. 22 •••••5. References Quarterly Results for Sales and Operating income （billion yen） Net Sales Medical / Healthcare Smart Safety Materials Others Total Engineering Plastics Operating income Medical / Healthcare Smart Safety Materials Others Corporate Total Engineering Plastics 2021/3 2022/3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Forecast 106.0 112.2 111.4 113.5 118.2 119.0 2021/3 2022/3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Forecast 3.9 5.1 10.7 25.6 35.2 2.4 82.9 0.4 0.6 -2.3 3.9 3.9 0.4 -3.8 3.1 3.9 5.2 16.5 23.7 39.5 3.7 92.4 0.4 0.4 0.6 3.6 4.3 0.5 -3.9 6.0 4.2 7.3 19.5 25.6 46.5 3.0 0.4 1.0 2.2 3.4 5.8 0.4 -3.6 9.6 4.2 7.1 20.5 29.3 47.4 3.6 0.3 1.3 1.7 7.1 7.1 0.2 -4.7 13.0 4.8 8.0 16.3 28.3 51.5 2.6 0.9 2.0 0.7 6.0 8.2 0.5 -4.4 13.9 4.8 7.5 15.6 29.8 52.9 2.8 1.0 1.4 1.7 5.6 6.9 0.2 -3.6 13.3 5.0 8.6 18.5 31.2 52.4 2.6 0.7 1.5 2.0 6.7 4.4 0.4 -3.6 12.0 4.9 8.0 19.4 30.6 53.2 3.0 0.5 1.1 1.8 5.7 4.5 0.5 -3.9 10.2 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 23 5. References Financial Forecast (FY ending March 2022) （billion yen） Net sales 224.8 223.2 448.0 224.8 237.2 462.0 +14.0 Medical / Healthcare Smart Safety Materials Engineering Plastics Others Medical / Healthcare Smart Safety Materials Engineering Plastics Others Corporate Operating income Ordinary income Income attributable to owners of parent 2022/3 Previous Forecasts 2022/3 Revised Forecasts 1st Half 2nd Half Total(A) 1st Half 2nd Half Total(B) Change (B)-(A) 9.6 15.4 31.9 58.0 104.4 5.4 1.9 3.4 2.4 11.6 15.1 0.8 -7.9 27.3 29.8 9.4 14.6 37.1 58.0 98.6 5.6 0.8 0.8 2.6 7.4 6.4 0.8 -8.1 10.7 12.2 19.0 30.0 69.0 116.0 203.0 11.0 2.7 4.2 5.0 19.0 21.5 1.6 -16.0 38.0 42.0 9.6 15.4 31.9 58.0 104.4 5.4 1.9 3.4 2.4 11.6 15.1 0.8 -7.9 27.3 29.8 9.9 16.6 37.8 61.8 105.6 5.6 1.2 2.6 3.8 12.4 8.9 0.8 -7.5 22.2 23.7 19.5 32.0 69.7 119.8 210.0 11.0 3.1 6.0 6.2 24.0 24.0 1.6 -15.4 49.5 53.5 +0.5 +2.0 +0.7 +3.8 +7.0 +0.0 +0.4 +1.8 +1.2 +5.0 +2.5 +0.0 +0.6 +11.5 +11.5 22.0 2.0 24.0 22.0 7.0 29.0 +5.0 （ref.）Exchange rate USD/JPY 110 110 110 110 114 112 * These forecasts were announced on November 5, 2021. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 24 5. References Assumptions （USD／JPY） Methanol Asian spot price （USD/ton） Crude Oil Dubai （USD/bbl） Domestic Naphtha （JPY/kl） Raw Materials 2021/3 Results 2022/3 Results & Previous Forecasts 2022/3 Results & Revised Forecasts 1st Half (Results) 2nd Half (Results) 1st Half （Results) 2nd Half （Forecasts) 3rd Quarter （Results) 4th Quarter （Forecasts) Exchange rate 107 105 110 110 114 115 192 316 377 500 443 450 37 53 70 85 78 75 27,500 34,500 50,500 60,000 60,300 56,000 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 25 Notes Regarding Forward-Looking Statements The purpose of this document is to provide information and not to persuade any individual to take any action in response to the information contained in this document. Daicel has made the greatest possible effort to prepare this document with accurate information. The information in this document, however, may include risks or inaccuracy, and we do not guarantee the accuracy or reliability of this information. The reader is advised that the use of the information in this document is at your own risk. Any investment according to the prospects, target values, etc. appearing in this document might result in a loss. Daicel accepts no responsibility for such an eventuality. This document shall not be copied or distributed to a third party without the permission of Daicel Corporation. All rights reserved by Daicel Corporation. 3rd Quarter (Apr. to Dec.) of Fiscal Year ending March 2022 Consolidated Financial Results 26