Toyo Tanso : Notification of Differences between Consolidated Earnings Forecasts for First Half of Fiscal Year and Actual Results, Revisions to Consolidated Earnings Forecasts for Fiscal Year, and Revisions to Dividend Forecasts for Fiscal Year

August 9, 2023

Attention: All concerned parties

Toyo Tanso Co., Ltd.

5-7-12 Takeshima, Nishiyodogawa-ku, Osaka 555-0011, Japan (Stock Exchange Code: 5310, Prime Market, Tokyo Stock Exchange)

Notification of Differences between Consolidated Earnings Forecasts for First Half of Fiscal Year and Actual Results, Revisions to Consolidated Earnings Forecasts for Fiscal Year, and Revisions to Dividend Forecasts for Fiscal Year

The consolidated earnings forecasts announced on February 14, 2023 for the first half of the fiscal year ending December 31, 2023 (January 1, 2023 - June 30, 2023) differ from the actual results announced today, as noted below.

Also, based on the latest business circumstances, we have revised the earnings forecast and dividend forecasts for the consolidated fiscal year (January 1, 2023 - December 31, 2023) as follows.

Particulars

1. Differences between consolidated earnings forecasts for first half of fiscal year and actual results, and revisions to consolidated earnings forecasts for fiscal year

1. Differences between consolidated earnings forecasts and actual results for first half of fiscal year ending December 31, 2023 (January 1, 2023 - June 30, 2023)

				Profit	Basic earnings
	Net sales	Operating	Ordinary	attributable to
	income	income	owners of	per share
				parent
	(million yen)	(million yen)	(million yen)	(million yen)	(yen)
Previous forecast (A)	23,000	3,800	3,800	2,600	123.97
Actual results (B)	23,712	4,610	5,338	4,128	196.85
Amount of increase/decrease (B-A)	712	810	1,538	1,528	－
Percentage of increase/decrease (%)	3.1	21.3	40.5	58.8	－
(Ref.) Results for the first half of the
previous fiscal year (first half of the	20,293	3,039	3,705	2,564	122.29
fiscal year ended December 31,
2022)

1. Revision of figures in consolidated earnings forecast for the year ending December 31, 2023 (January 1, 2023 - December 31, 2023)

				Profit
	Net sales	Operating	Ordinary	attributable to	Basic earnings
	income	income	owners of	per share
				parent
	(million yen)	(million yen)	(million yen)	(million yen)	(yen)
Previous forecast (A)	47,000	8,000	8,000	5,500	262.25
Revised forecast (B)	48,500	8,500	9,300	7,000	333.77
Amount of increase/decrease (B-A)	1,500	500	1,300	1,500	－
Percentage of increase/decrease (%)	3.2	6.3	16.3	27.3	－
(Ref.) Previous fiscal year results	43,774	6,667	7,369	5,181	247.08
(Year ended December 31, 2022)

1. Reasons for differences and revision

In the first half of the consolidated fiscal year under review, net sales were more or less in line with the plan, while operating profit exceeded the plan due to the posting of one-off sales of high- value-added products, in addition to the exchange rate continuing to be weaker than anticipated. In addition, ordinary profit and profit attributable to owners of parent substantially exceeded the plan reflecting foreign exchange gains and subsidy income, which were recorded in non- operating income and extraordinary income, respectively.

As it is anticipated that the yen's weakness will continue to a certain extent in the third quarter and beyond, we have changed our exchange rate assumptions. In line with this change, we have revised the full-year consolidated earnings forecast for the fiscal year ending December 31, 2023

*Exchange rates for the fiscal year ending December 31, 2023

Actual exchange rates for the consolidated first half: 134.8 yen/US$, 145.8 yen/EUR, 19.5 yen/CNY

Assumed exchange rates for the third quarter and beyond: 133 yen/US$, 146 yen/EUR,

19 yen/CNY

2. Revisions to dividend forecasts

(1) Revisions to dividend forecasts

				Dividends per share (yen)
			First	Second		Third		Year-end		Total
			quarter-end	quarter-end	quarter-end			(Full year)
Previous forecast	－	0.00		－	80.00	80.00
Revised forecast	－	0.00		－	90.00	90.00
Actual results for the
fiscal	year	ending	－	0.00
December 31, 2023
(Ref.) Results for the
previous fiscal year	－	0.00		－	70.00	70.00
(fiscal	year	ended
December 31, 2022)

1. Reasons for differences and revision

Our basic policy for profit allocation is to make strategic investments in order to strengthen our competitiveness and enhance our value over the long term and return profits to shareholders in a continuous and stable fashion with due consideration of business results for the fiscal year, funding needs for the future expansion of our business operations, and consolidation of our business foundation. Under this policy, the profit level and financial position for the fiscal year ending December 31, 2023, and the financial demands for the following fiscal period and beyond have been comprehensively considered, and the year-end dividends for the fiscal year ending December 31, 2023, have been adjusted to 90 yen, representing a 10-yen increase from the initial forecast.

Note: The above forecasts are based on the information available when these materials were

released, and actual results may differ from these forecasts due to various factors.

Please direct inquiries regarding the current situation to:

Toyo Tanso Co., Ltd.

Publicity & Investor Relations

E-mail: [e-mail]