Investor relationsManagement policyMessage from the President

The TOCALO Group’s business environment is rapidly changing. We are responding by improving our ability to react quickly and flexibly to changes while focusing on establishing sustainable growth to enhance our corporate value and fulfilling the expectations of our shareholders and stakeholders. It is my pleasure to share the results of our business performance for the first half (April 1 to September 30) of the fiscal year ending in March 2024 and to present our management outlook for the years ahead.

Earnings results for the first half of the fiscal year ending in March 2025.

The Group’s business environment has been gradually improving supported in part by steady corporate investment as economic activity returns to normal conditions. At the same time, persisting economic instability overseas and soaring raw material and energy prices due to the depreciation of the yen continue to cloud the future outlook.

In these conditions, the TOCALO Group’s earnings were generally stronger than our expectations at the start of the fiscal year. Supporting our performance were rising demand for generative AI and data centers in the semiconductor field, and our advances developing new coating processes and aggressive pursuit of orders in the semiconductor, iron & steel, industrial machinery, pulp & paper, film, and energy fields.

These activities and the business conditions enabled the Group to post the following results for the first half of the fiscal year. Net sales rose by ¥2,891 million (12.6% YoY) to ¥25,863 million, operating profit increased ¥1,087 million (25.3%) to ¥5,383 million, ordinary profit increased ¥930 million (20.3%) to ¥5,520 million, and profit attributable to owners of parent rose ¥570 million (19.1%) to ¥3,556 million.

Earnings outlook and direction

We expect the uncertain outlook to persist for the foreseeable future accompanied by tighter export restrictions and intensifying technological competition due to the friction between the United States and China along with soaring raw material and energy prices due to unstable international conditions. In this environment, we will implement the growth strategy in our medium-term management plan to develop new coating processes, carry out capital investment anticipating customer needs, and develop human resources in the semiconductor & FPD, environment & energy, and new business domains.

In the semiconductor field, anticipating increasing advances in digital technologies, we are further expanding our production capacity to meet growing demand for manufacturing equipment and developing technologies for semiconductor miniaturization.

Our efforts in the environment & energy field are focusing on expanding applications for biomass, hydropower, and offshore wind power generation facilities and for rechargeable batteries. We are also implementing measures to generate customer demand in new business areas, such as medical care and agriculture.

Our ESG management continues to center on efforts to create a sustainable society, including reducing greenhouse gas emissions, strengthening cooperation in the supply chain, and investing in human capital. These efforts will establish sustainable growth and enhance our corporate value as we aim to make TOCALO a 100-year company.