太陽ホールディングス（4626） – Consolidated Financial Result Digest FY2022 Q4 (Fiscal Year Ended March 31,2022)

ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENTThis is a translation of the original Japanese-language document and is provided for convenience only.In all cases, the Japanese-language original shall take precedence.Consolidated Financial Result Digest FY2022 Q4(Fiscal Year Ended March 31, 2022)April 28, 2022Any information incorporated in this document is not intended for suggestion of purchase or sale of equity share of the company. All the description and projection are based on the company’s own analysis at the time of compilation, and their accuracy is not guaranteed. These data may be revised without prior announcement. The company will neither assume nor compensate any loss of anybody resulting from decision based on information provided here.Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.Our Reporting SegmentsElectronic MaterialsDevelops, manufactures, purchases and sells chemicals for PWBs and other electronic componentsMedical and PharmaceuticalManufactures and markets pharmaceuticals, and provides contract development and manufacturing organization (CDMO) servicesOthersEnergy business using natural energy, food business, fine chemicals business including dyes, pigments and other chemicals, and ICT business, etc.Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.2FY2022 Q4 OverviewElectronic Materials Business⚫ Net sales increased by 34% year on year⚫ Operating income increased by 52% year on yearMain reasons• New white dry film-type solder resist, which has been mass-produced since the first quarter, has been used for Mini LED displays and sold very well• Strong semiconductor market resulted in record high sales of PKG ProductsMedical and Pharmaceutical Business⚫ Net sales decreased by 4% year on yearMain reasons•Lower sales volume of other infectious disease-related products due to thorough countermeasures against the COVID-19 pandemicImpact of production adjustments as a result of changes to production plans by contract manufacturing clientsLower drug price due to the National Health Insurance (NHI) price revision of Long Listed Products••• Higher sales volume of some products as a result of suspensions to the supply of other companies’ generic drugs⚫ Completed the succession of manufacturing and marketing approval and transfer of distribution for all four products from AstraZeneca K.K.⚫ Acquired treasury stockCompanyShares acquired : 464,400 sharesTotal acquisition amount : Approximately 1,500 JPY million⚫ Support for TCFD recommendations and participation in TCFD ConsortiumCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.3Consolidated Financial ResultsResults SummaryUnit : JPY Million*1 JPY/USD exchange rate : Actual results for FY2022 3Q cumulative 111.4 JPY. Estimated value for FY2022 4Q 108.0 JPY.4Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.FY2021/3FY2022/3FY2022/3(announcedon Feb. 8)Full yearFull yearFull yearResultResultYoY%Forecast%Net Sales80,99197,96616,97521%93,900104%Operating Income13,94317,9584,01529%17,000106%Ordinary Income13,81918,0624,24331%17,200105%Net Income9,52911,8032,27424%12,10098%Exchange rate ofJPY/USD106.2112.96.7*1EBITDA21,42025,9424,52221%24,900104%Operating IncomeMargin17%18%18%EBITDAMargin26%26%27%② / ③①②②-①③(②-①) / ①Trend of Yearly PerformanceNet sales and Operating IncomeUnit : JPY BillionOperating Income（Right axis）Other Sales（Left axis）Medical and Pharmaceutical Sales（Left axis）Electronic Materials Sales（Left axis）484944471520 1393670318593746494848120100806040200109425[23%]97323[24%]3025201915171371[73%]80[73%]108032453505FY2023/3EFY2012/3 FY2013/3FY2014/3FY2015/3FY2016/3FY2017/3FY2018/3FY2019/3FY2020/3FY2021/3FY2022/3Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.4Q Cumulative Net Sales / Operating income / EBITDAUnit : JPY MillionMedical and PharmaceuticalOthers Company wideexpense3,3403,405Fiscal year ended March 2021Fiscal year ended March 2022Performance by SegmentElectronic Materials+34%71,09353,096+52%17,08211,208(4%)24,55323,467(37%)3,8372,400Net SalesOperating IncomeOperating Income marginEBITDA19,393(18%)12,9708,6687,079EBITDA margin24%27%35%30%Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.21%24%16%10%1%1%+50%3228(1,130)(1,543)6Trend of Quarterly PerformanceNet sales and Operating IncomeUnit : JPY MillionOperating Income (Right axis)Other sales (Left axis)Medical and Pharmaceutical Sales (Left axis)Electronic Materials Sales (Left axis)Full-scale entry into the pharmaceutical businessby acquiring long-termlisted products (Jan. 2018)Commenced pharmaceutical manufacturing contract business by acquiring Takatsuki Plant (Oct. 2019)24,3449197,0007848608407528758207818625,8756,368[25%]5,344[22%]5,8799519869176393743613724638191,5791,4932,3901,0662,6072,4451,0629067,3036,5495,664[28%]5,9976,3425,8586,00012,05012,99912,86511,94012,63312,96012,10311,89612,44413,04411,499 12,11218,04318,120[72%]18,079[74%]16,84913,28813,69214,003[68%]2,19710,38926,00024,00022,00020,00018,00016,00014,00012,00010,0008,0004,0002,00001Q3Q2QFY2018/32Q3QFY2019/33Q2QFY2020/34Q1Q4Q1Q4Q1Q4Q1Q2Q3QFY2021/32Q3QFY2022/34QCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.6,0005,0004,0003,5883,0002,0001,00007Overview of BSBS- Comparison with the previous termUnit : JPY Million*1 Inventories: Goods and products + work in process + raw materials and stored good*2 Short-term borrowings: Short-term borrowings + long-term borrowings scheduled to be repaid within one yearCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.8Equity to Asset Ratio42.5%45.2%+2.7%21/322/3Change21/322/3ChangeCash and Deposits54,70551,557(3,147)Notes and Account payable7,9079,2551,348Accounts Receivables22,52727,5585,030Short term borrowings*２21,88529,7707,884Inventory*113,44916,3842,935Long term borrowings59,33348,383(10,950)Others2,2563,2671,011Others13,37916,3983,019Total Current Assets92,93798,7665,828Total Liabilities102,504103,8061,301Tangible Fixed Assets46,34852,2555,907Shareholders Equity74,18479,9165,731Intangible Fixed Assets34,94932,058(2,891)Accumulated othercomprehensive income1,9545,5493,594Investments andother assets4,7656,1921,426Non-controlling interest3571(356)Total Fixed Assets86,06390,5074,443Total net assets76,49785,4668,969Total Assets179,001189,27310,271Total liabilities and net assets179,001189,27310,271Trend of Yearly ROE and ROICROE（Return on Equity）*Unit：%ROIC（Return on Invested Capital）*Unit：%14.67.17.213.110.06.25.020.015.010.05.06.25.40.0FY2019/3FY2020/3FY2021/3FY2022/3FY2020/3FY2021/3FY2022/30.0FY2019/3* ROE：Net income attributable to shareholders of the parent company / Average equity capital during the fiscal yearROIC：Operating profit after Tax / Average of（Balance of interest-bearing debt＋Total equity）during the fiscal yearCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.8.19Trend of Shareholder Returns✓ Taiyo Holdings intends to pay a year-end dividend per share the year ended March 2022 37.00 yen, resulting in an annual dividend of 69.55 yen （dividend on equity (DOE): 5.1%）when combined with the interim dividend of 32.55 yen.✓ In the year ending March 2023, Taiyo Holdings intends to pay an interim dividend of 37.00 yen and a year-end dividend of 37.00 yen, resulting in an annual dividend of 37.00 yen, a 4.45 yen increase compared with the year ended March 2022.Dividend*1・DOEDOE（Right axis）Interim dividend per share（Left axis）Year-end dividend per share（Left axis）Special commemorative dividend per share*2（Left axis）6.580.1015.005.35.465.1065.106.380.1015.0032.5532.5532.5532.555.169.5537.00Yen1201008060402005.660.0532.5527.5032.5532.5532.5532.5532.55FY2017/3FY2018/3FY2019/3FY2020/3FY2021/3FY2022/3*1 We performed a stock split with effect from October 1, 2021 whereby each common stock of Taiyo Holdings was divided into two shares.Figures have been calculated assuming the stock split was performed at the beginning of FY2018/3.*2 FY2018/3: Commemorative dividend for the 65th anniversary of the company’s establishment, FY2021/3: Commemorative dividend forthe 20th anniversary of listing on the First Section of the Tokyo Stock Exchange.10Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.%7654321074.0037.0037.00FY2023/3EAcquisition of Treasury StockTreasury stock acquisition status and planTotal number of shares acquired464,400FY2022/3ResultTotal acquisition price of shares1,499,689,985 yenAcquisition period Total number of shares acquiredNov. 10, 2021 ～ Feb. 10, 20221,000,000（upper limit）FY2023/3PlanTotal acquisition price of shares1,500,000,000 yen（upper limit）Acquisition period Mar. 22, 2022 ～ Mar. 16, 2023Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.11Support for TCFD Recommendations and Participation in TCFD Consortium✓ Taiyo Holdings has declared its support for the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures*1), and participated in the “TCFD Consortium*2,” a forum for supporting companies and financial institutions to engage in discussion.✓ Taiyo Holdings will identify the risks and opportunities offered by the impact of climate change on its business activities, based on the TCFD framework, and actively implement related initiatives, while also endeavoring to strengthen corporate governance.*1 A task force for considering corporate information disclosure related to climate change and the response of financial institutions,established by the Financial Stability Board (FSB) at the request of the G20. *2 A consortium established in 2019 to provide a forum for discussing effective corporate information disclosure and initiatives for utilizingthe information disclosed in appropriate investment decision-making by financial institutions, etc.Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.12Electronic Materials BusinessCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.13Electronic Materials BusinessTerminologyTermDefinitionPWBSRPKGDFPrinted Wiring Board“Solder resist ink” or “Solder mask”Semiconductor packagesDry FilmCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.14Electronic Materials BusinessProduct ClassificationGroupCategoryTypeRemarksRegularLiquidRigidPKGHigh endLiquid／DF・SR materials for insulation and surface Liquid／DFprotection use・Electronic materialsFPC （Flexible printed circuit board）Liquid／DFBuild-upLiquid／DF・Build-up materials for interlayer insulation and hole plugging useOthersLiquid・Marking, etching, plating materials・Flux, conductive silver paste, solvent etc. PWBinsulating materialsOtherrelated productsCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.15Electronic Materials BusinessNet Sales by product category20,00015,00012,44420113,04421211,89616769776276911,49918871970510,0003,0293,0603,5983,7193,47713,28819712,11219196813,6928784985614,0031727884,6853,7833,952[28%]3,7785,0635,2815,3805,0004,4984,5184,9215,6145,583[40%]Unit : JPY Million4Q CumulativeYoYQoQ18,043 18,120 18,07916,849280269960375945190893OthersBuild up and FPC5,4115,586[31%]5,851[32%]PKG+328[+10%]+6,301[+41%](52)[(6%)]+264[+5%]7,1927,2717,267[40%]7,372[41%]Rigid -High end+8,466[+41%]+105[+1%]2,9403,1403,0852,6312,9653,4243,3593,508[25%]3,8364,1323,947[22%]3,774[21%]Rigid -Regular+2,432[+18%](173)[(4%)]01Q2Q3QFY2020/34Q1Q4Q1Q2Q3QFY2021/32Q 3QFY2022/34QCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.16Electronic Materials BusinessNet Sales by sales area18,07918,043 18,120341771379964414905Europe, USand OthersASEAN3,7684,104[23%]4,011[22%]Korea16,8493498903,4102,6441,8542,0692,177[12%]2,033[11%]TaiwanUnit : JPY Million4Q CumulativeYoYQoQ+175[+5%]+4,868[+47%]+1,279[+19%](58)[(8%)](93)[(2%)](143)[(7%)]8,9799,6419,020[50%]9,377[52%]China+10,869[+42%]+357[+4%]14,00313,69224587335093913,28835579612,44413,04436079211,8963118543617552,5872,4131,5451,8402,3411,52312,11236174711,4993898812,6232,5651,5622,5021,7371,7671,8142,593[19%]1,711[12%]5,5176,0806,1305,5524,7806,5546,8977,145[51%]1,3501,2901,3361,2101,3251,1461,2671,267[9%]1,3631,4501,474[8%]Japan1Q2Q3QFY2020/34Q1Q3Q 4Q1Q2QFY2021/33Q2QFY2022/31,336[7%]4Q+618[+12%](137)[(10%)]17Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.20,00015,00010,0005,0000Taiyo Holdings Construction of New Development Center✓ Taiyo Holdings will construct the new building of development center at the Ranzan Facility, to respond to growing demand for materials for electronic devices and components including semiconductors.Overview of New Facility[Location] 355-0222388 Ohkura, Ranzan-machi,Hiki-gun, Saitama（On grounds of Ranzan Facility ）[Site area] 16,340 m2[Floor space] 10,515 m2[Floors] 6 floors above ground[Start of construction] November 2022 (planned)[End of construction] January 2024 (planned)[Uses] Research and development in theElectronic Materials BusinessCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.18Medical and Pharmaceutical BusinessCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.19Medical and Pharmaceutical BusinessTerminologyTermDefinitionLLPCDMOGMPA drug for which the patent or re-examination period has expired,enabling the sale of generic drugs (Long Listed Product)Organizations that are contracted to manufacture drugs and to develop drug formulation(Contract Development Manufacturing Organization）Standards for manufacturing control and quality of pharmaceuticals and quasi-drugs(Good Manufacturing Practice）Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.20Medical and Pharmaceutical BusinessNet Sales by companyUnit : JPY Million4Q CumulativeYoYQoQ7,3034,4726,3425,9975,8596,5495,8795,8755,6644,0003,7563,5973,3563,6603,1723,0723,454[61%]2,6072,4456,3673,089[49%]5,344MedicalandPharmaceutical(1,086)[(4%)](1,023)[(16%)]2,844[53%]TaiyoPharmaTech（CDMO）(1,889)[(13%)](244)[(8%)]2,6072,4452,8302,1022,7452,6402,8892,7072,8022,210[39%]3,278[51%]2,499[47%]TaiyoPharma（Manufacturingand Marketing）+803[+8%](779)[(24%)]8,0006,0002,00001Q2Q3QFY2020/34Q1Q4Q1Q3Q2QFY2021/32Q3QFY2022/34QCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.21Taiyo Pharma : Acquisition of Approval to Add Indications,etc., for “Kytril® Injections and Intravenous Infusion Bags”✓ After a request for development at a meeting of the “Committee on Unapproved or Off-labeled Drugs with High Medical Needs,” Taiyo Pharma submitted a public knowledge-based application*1 for “Kytril® injection 1mg,” “Kytril® injection 3mg,” “Kytril® intravenous infusion bag 3mg/50mL,” and “Kytril® intravenous infusion bag 3mg/100mL” (generic name: granisetron hydrochloride) (collectively, “Kyril® injections and intravenous infusion bags”), which act as 5-HT3 receptor antagonists. Subsequently, on February 25, 2022, Taiyo Pharma obtained approval from the Ministry of Health, Labour and Welfare for sale and manufacture for additional indications, dosages, and administrations in relation to “postoperative gastrointestinal symptoms (nausea, vomiting).”Brand name: Kytril® injection 1mgKytril® injection 3mgKytril® drip infusion bag 3mg/50mLKytril® drip infusion bag 3mg/100mLGeneric name: Granisetron hydrochloridePresent indications:Gastrointestinal symptoms (nausea, vomiting) associated with the administration of antineoplastic agents (cisplatin, etc.) and irradiationAdditional indications:Postoperative gastrointestinal symptoms (nausea, vomiting)*1 Public knowledge-based application refers to an application forapproval made without conducting all or part of clinical trials on the basis that the drug has already been approved for relevant indicationsin a foreign country and the efficacy and safety of the drug are medically known.Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.22Taiyo Pharma Tech Enters into Agreement with GE Healthcare Pharma✓ Taiyo Pharma Tech will begin manufacturing of Contrast Media, having entered into an agreement concerning the manufacturing of Contrast Media for which GE Healthcare Pharma holds market authorization.Target Contrast Media• Omnipaque® Non-ionic X-ray contrast media• Visipaque® Non-ionic isoosmolar X-ray contrast media• Omniscan® Linear Non-ionic MRI contrast media• Sonazoid® Ultrasound diagnostic contrast mediaCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.23Taiyo Pharma Tech（TPT） and Nippon Becton Dickinson （“BD in Japan”）Form Business Partnership✓ TPT and BD in Japan will provide “Pre-filled Syringe Total Support Services.”✓ This will enable BD in Japan and Taiyo Pharma Tech to offer Total Support, from device evaluation to contract manufacturing, to pharmaceutical companies among their clients.Solution fillingPre-filled syringe preparationPharmaceutical product (solution)TaiyoPharmaTechBD in JapanSyringes for pre-fillingTaiyoPharmaTechCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.24Earnings ForecastCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.25Consolidated Earnings Forecast by Segment for theFiscal Year Ending March 2023✓ Consolidated: Forecasting higher sales and profits in the year ending March 2023✓ Electronic Materials Business: Expecting higher sales and profits because of higher demand for rigidhigh-end and PKG materials, and forex impact✓ Medical and Pharmaceutical Business: Expecting higher sales because of increase in contract manufacturing volumes, but lower profits owing to the impact of National Health Insurance (NHI) drug price revisions and higher SGA expensesEarning forecast by segmentUnit : JPY Million*1 JPY/USD exchange rate : Actual results for FY2022/3 112.9 JPY.*2 JPY/USD exchange rate : Estimated value for FY2023/3 120.0 JPY.Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.26ConsolidatedElectronicMaterialsMedical andPharmaceuticalConsolidatedElectronicMaterialsMedical andPharmaceuticalConsolidatedElectronicMaterialsMedical andPharmaceuticalNet Sales97,96671,09323,467109,40080,20025,10012%13%7%OperatingIncome17,95817,0822,40019,00020,1001,0006%18%(58%)Ordinary Income18,062–18,800–4%–Net Income11,803–12,800–8%–EBITDA25,94219,3937,07926,90022,5005,5004%16%(22%)OperatingIncome Margin18%24%10%17%25%4%EBITDAMargin26%27%30%25%28%22%FY2022/3*1FY2023/3*2Full year ResultFull year Forecast%Consolidated Earnings Forecast by Segment for the1st Half and 2nd Half of Fiscal Year Ending March 2023Forecast for 1st half ofFY2023/3Unit : JPY MillionForecast for 2nd half ofFY2023/3Unit : JPY Million※1 JPY/USD exchange rate : Actual results for FY2022/3 112.9 JPY.※2 JPY/USD exchange rate : Estimated value for FY2023/3 120.0 JPY.Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.27ConsolidatedElectronicMaterialsMedical andPharmaceuticalConsolidatedElectronicMaterialsMedical andPharmaceuticalConsolidatedElectronicMaterialsMedical andPharmaceuticalConsolidatedElectronicMaterialsMedical andPharmaceuticalNet Sales48,34834,89211,75455,60041,00012,60049,61836,20011,71253,80039,20012,500OperatingIncome9,3018,3921,48410,40010,5009008,6578,6899168,6009,600100EBITDA13,1979,3663,94114,40011,7003,20012,74510,0263,13812,50010,8002,300OperatingIncome Margin19%24%13%19%26%7%17%24%8%16%24%1%EBITDAMargin27%27%34%26%29%25%26%28%27%23%28%18%FY2023/3*22nd half Resut2nd half ForecastFY2022/3*1FY2023/3*21st half Resut1st half ForecastFY2022/3*1Trend of Yearly Capital Investment and DepreciationCapital Investment*Unit : JPY MillionDepreciation*Unit : JPY MillionElectronic MaterialsMedical and PharmaceuticalElectronic MaterialsMedical and Pharmaceutical14,000Others13,3007,000Others11,5112,0096,8402,0201064,7146,916 7,1411,5866,2972,1393,3326442,93812,00010,0008,0006,0004,0002,00006,0005,0004,0003,0002,0001,00005,3285,2004,8288732,2393,5658071,0969832,0862,2581,896591291,2753,4153,2221,6601,714FY2019/3FY2020/3FY2021/3FY2022/3FY2019/3FY2020/3FY2021/3 FY2022/3FY2023/3E* Capital investment：Investment in property, plant and equipment and softwareDepreciation：Depreciation of property, plant and equipment and softwareCopyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.FY2023/3E28Copyright © TAIYO HOLDINGS CO., LTD. All Right Reserved.