Financial Results for 3Q of FYE 32018 決算説明資料 | IRライブラリ | ステラケミファ株式会社

Financial Results for 3Q of FYE 3/2018

1. Financial Results for 3Q of FYE 3/2018



Basic Financial Data (Consolidated)



Consolidated Statement of Income



Non-operating Profit and Loss/Extraordinary Profit

and Loss



Sales Revenue and Operating Profit by Business



Quarterly Operating Profit



Consolidated Balance Sheet



Consolidated Cash Flows, Capital Expenditures,

FYE 3/2018

9M

(Apr

－

Dec)

FYE 3/2017

9M

(Apr

－

Dec)

YoY

Actual

Actual

Increase/ Decrease Percentage Increase/ Decrease

Sales Revenue

_25,034

_21,887

_3,147

_14.4

Operating Profit

_2,286

_3,459

_-1,173

_-33.9

Ordinary Profit

_2,119

_3,391

_-1,271

_-37.5

Quarterly Profit Attributable to

Owners of Parent

1,441

2,354

-913

-38.8

Dec.31,2017

FYE 3/2017

End of year

Increase/

Decrease

Total Assets

_49,399

_52,081

_-2,682

Equity Capital

_31,312

_28,078

_3,234

Interest-bearing

Liabilities

9,646

13,967

-4,320

(In millions of yen)

(In millions of yen)

FYE 3/2018

9M

(Apr

－

Dec)

FYE 3/2017

9M

(Apr

－

Dec)

YoY

Increase/ Decrease Percentage Increase/ Decrease

Sales Revenue

25,034

21,887

3,147

14.4

Gross Profit

5,336

6,160

-823

-13.4

Gross Profit Margin (%)

21.3

28.1

-

-

SG&A

3,050

2,700

350

13.0

Operating Profit

2,286

3,459

-1,173

-33.9

Operating Profit Margin (%)

_9.1

15.8

-

-

Ordinary Profit

2,119

3,391

-1,271

-37.5

Profit before Income Taxes

1,935

3,295

-1,359

-41.3

Quarterly Profit Attributable

to Owners of Parent

1,441

2,354

-913

-38.8

■

Non-operating Profit and Loss

■

Extraordinary Profit and Loss

<Non-operating Profit and Loss/Extraordinary Profit and Loss>

(In millions of yen)

FYE 3/2018

9M

(Apr

－

Dec)

FYE 3/2017

9M

(Apr

－

Dec)

Non-operating Profit

236

440

Interest income

6

8

Dividend income

2

2

Share of profit of entities accounted for using

equity method

-

22

Gain on valuation of

derivatives

159

310

Other

68

97

Non-operating Expenses

403

509

Interest expenses

32

38

Share of loss of entities accounted for using equity

method

67

-

Foreign exchange losses

166

351

Other

136

119

(In millions of yen)

FYE 3/2018

9M

(Apr

－

Dec)

FYE 3/2017

9M

(Apr

－

Dec)

Extraordinary Profit

18

28

Gain on sales of

non-current assets

18

28

Extraordinary Losses

203

123

Loss on abandonment

of non-current assets

203

46

Loss on sales of

non-current assets

0

0

Impairment loss

-

76

Loss on sales of

(In millions of yen) (In millions of

yen)

<Sales Revenue and Operating Profit by Business>

FYE 3/2018

9M

(Apr

－

Dec)

FYE 3/2017

9M

(Apr

－

Dec)

Percentage Increase/

Decrease

Sales Revenue Operating Profit Sales Revenue Operating Profit Sales Revenue Operating Profit

High-purity Chemical Business

_21,693

_2,347

_18,648

_3,460

_16.3

_-32.2

[Hig h -p u ri ty Ch e m ica l B u sin e ss: B re a kd o w n

] Surface Treatment 1,409 1,490 -5.4

Alternatives for CFCs 1,855 1,665 11.4

Batteries 4,081 3,847 6.1

Semiconductors/LCDs 11,375 8,952 27.1

Semiconductor Devices 517 349 48.1

Catalysts 716 649 10.2

Gypsum 62 56 11.9

General products 977 1,035 -5.6

Other 697 601 16.0

Transportation Business

_3,194

₆₀₄

_3,088

₅₅₃

_3.4

_9.2

Medical Business

_-

_-704

_-

_-585

_-

_-

Other Business

₁₄₆

₂₆

₁₅₀

₂₀

_-2.6

_31.7

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Sales Revenue

6,745

7,057

6,789

6,918

7,187

6,757

7,941

7,963

8,159

8,561

8,314

Operating Profit

86

288

404

609

960

1,025

1,473

912

888

936

461

Operating Prof it Margin

1.3%

4.1%

6.0%

8.8%

13.4%

15.2%

18.6%

11.5%

10.9%

10.9%

5.5%

FYE 3/2016

FYE 3/2017

FYE 3/2018

86

288

404

609

960

1,025

1,473

912

₈₈₈

936

461

0

200

400

600

800

1,000

1,200

1,400

1,600

(In millions of yen)

(In millions of yen)

Dec.31,2017

FYE 3/2017

End of Year

Increase/

Decrease

(In millions of yen)

Current Assets

_25,985

_28,069

_-2,084

Cash and Deposits

9,663

14,361

-4,698

Notes and Accounts _{Receivable - trade}

_9,251

_7,867

_1,383

Non-current Assets

23,413

24,011

-597

Property, Plant and _Equipment

21,485

22,072

-587

Intangible Assets

139

129

10

Investments and Other Assets

1,788

1,808

-20

Current liabilities

9,979

12,566

-2,586

Short-term Loans Payable

1,950

2,320

-370

Long-term Loans Payable

within 1 year

3,009

3,684

-674

Non-current liabilities

_6,794

_9,998

_-3,203

Bonds Payable

-

2,000

-2,000

Long-term Loans Payable

4,686

5,962

-1,275

Net Assets

32,624

29,516

3,107

Shareholders' Equity

30,934

27,771

3,163

Liabilities and Net Assets

_49,399

_52,081

_-2,682

(In millions of yen)

FYE 3/2018

9M

(Apr

－

Dec)

FYE 3/2017

9M

(Apr

－

Dec)

Capital Expenditures

_1,987

_1,355

Depreciation & Amortization

_2,502

_2,340

Research & Development Expenses

_1,088

₉₆₀

2. Financial Forecast for FYE 3/2018



Financial Forecast

<Financial Forecast>

(In millions of yen)

FYE 3/2018

Revised Full-year

forecast

( Feb.9, 2018 )

FYE 3/2018

Revised Full-year

forecast

( Aug.8, 2017 )

FYE 3/2017

Full-year results

FYE 3/2016

Full-year results

Sales Revenue

33,400

33,300

29,850

27,509

Operating Profit

2,100

4,700

4,372

1,388

Ordinary Profit

1,900

4,700

4,154

1,044

Net Profit Attributable to

Owners of Parent

1,400

3,300

2,824

1,323

Current Net Profit Per

Share

110.38

268.20

234.56

110.33

Capital Expenditures

3,000

3,010

2,328

1,302

Depreciation &

Amortization

3,350

3,309

3,117

3,525

Research & Development

FYE 3/2018 Revised Full-year Forecast ( Feb.9, 2018 )

FYE 3/2018 Revised Full-year Forecast ( Aug.8, 2017 )

FYE 3/2017 Full-year results FYE 3/2016 Full-year results Sales Revenue Operating Profit Sales Revenue Operating Profit Sales Revenue Operating Profit Sales Revenue Operating Profit High-purity Chemical

Business

28,960

2,320

29,100

5,030

25,501

4,422

23,087

1,390

[Hig h -p u ri ty Che m ical B u sine ss: B rea kd o w n

] Surface Treatment 1,840 1,720 2,033 2,097

Alternatives for CFCs _{2,360 3,410 2,463 2,023}

Batteries _{5,270 5,670 5,072 2,989}

Semiconductors/LCDs _{15,670 14,350 12,310 12,224}

Semiconductor

Devices 710 760 527 545

Catalysts _{910 770 854 846}

Gypsum _{70 110 94 107}

General products _{1,270 1,450 1,342 1,461}

Other _{860 860 803 791}

Transportation Business

4,250

770

4,020

720

4,143

698

4,195

664

Medical Business

_-

_-1,010

_-

_-1,080

_-

_-792

_-

_-691

Other Business

₁₉₀

₃₀

₁₈₀

₃₀

₂₀₄

₃₀

₂₂₆

₆

(In millions of yen)

3. STELLA CHEMIFA CORPORATION



Corporate Profile/Sales Office Locations/Plant

Locations

(as of December 31, 2017)



List of Affiliated Companies



Corporate profile

Corporate name:

STELLA CHEMIFA CORPORATION

Head Office:

Midosuji MTR Building 3F, 3-6-3 Awaji-machi, Chuo-ku, Osaka

Founded:

February 1916

Established:

February 1944

Capital:

4,829,782,512 yen

Representatives:

Chairperson, Representative Director: Junko Fukada

President, Representative Director: Aki Hashimoto

URL

http://www.stella-chemifa.co.jp/



Sales office

Osaka Sales Department: Midosuji MTR Building 4F, 3-6-3 Awaji-machi,

Chuo-ku, Osaka

Tokyo Sales Department:

Tokyo Tatemono Yaesu Building 2F, 1-4-16 Yaesu,

Chuo-ku, Tokyo



Factory addresses

Sanpo Factory:

7-227 Kaisan-cho, Sakai-ku, Sakai

Izumi Factory:

1-41 Rinkai-cho, Izumiotsu

Kitakyushu Factory: 1-1 Kurosakishiroishi, Yahatanishi-ku, Kitakyushu

Base

Logo

Corporate Name

Business Segment

Head Office:

At

ho

me

Stella Chemifa Corporation High-purity Chemical

Business Chuo-ku, Osaka

Blue Express, Inc. Transportation Business Sakai-ku, Sakai

Blue Auto Trust Co., Ltd. Other Business Sakai-ku, Sakai

Stella Pharma Corporation Medical Business Chuo-ku, Osaka

Ab

roa

d

Stella Chemifa Singapore Pte Ltd.

High-purity Chemical

Business Singapore

Stella Express (Singapore) Pte Ltd. Transportation Business Singapore

Blue Express (Shanghai) International Trade Inc.

High-purity Chemical

Business China

Blue Express (Shanghai) International

Freight Forwarding Co., Ltd. Transportation Business China

Zhejiang Blue Star Chemical Co., Ltd. High-purity Chemical

Business China

FECT Co., Ltd. High-purity Chemical

Business South Korea

Quzhou BDX New Chemical Materials Co., Ltd.

High-purity Chemical

Our products, fluorine compounds, have continued to be used in the manufacturing process of various products.

Segment name

Main product

Applications

Surface treatment

Hydrofluoric acid for industrial use

Used for acid cleaning of stainless steel and for thinning glass

substrates for LCDs

Alternatives for CFCs

Anhydrous hydrofluoric acid

Material for chlorofluorocarbon and fluorine resin

Batteries

Lithium hexafluorophosphate

Electrolyte for electrolytic solution of lithium-ion secondary

batteries

Semiconductors and

LCDs

High-purity hydrofluoric acid

Cleaning solution for silicon wafers and LCDs

Solar batteries

High-purity buffered hydrofluoric

acid

Semiconductor

devices

High-purity fluoride

(CaF

₂

, PbF

₂

, MgF

₂

, AlF

₃

, and

others)

Lens material for i-line steppers and cameras

Potassium fluoride

Auxiliary agent for manufacturing tantalum for tantalum

capacitors

General products

Tin fluoride

Quasi-drug

Semiconductors and LCDs



Features of our products



Results and forecast of world semiconductor

market scale by regions



New business development in growing market



Maintenance and strengthening of quality edge



Change in shipping volume of high-purity

<Features of our products>

(1) With our ultra purification technology and ultra sensitive technology, we are able to supply the ultra-high-purity

hydrofluoric acid and the ultra-high-purity buffered hydrofluoric acid with the best quality in the world.

(2) Product Lineups are readied to respond the customer requirements, including suppression of adhering particles,

suppression of increased roughness of wafer surfaces, and others, for the semiconductor and FPD manufacturing

process.

Description

The ultra-high-purity chemicals used for wet etching and wet cleaning of silicon wafers in

manufacturing semiconductors, FPDs, solar batteries, and MEMS.

The ultra-high-purity chemical mixed hydrofluoric acid and ammonium fluoride.

BHF

(buffered hydrofluoric acid)

The chemical mixed 50% hydrofluoric acid and 40% ammonium fluoride solutions.

LL BHF

BHF with various functionalities by adding a surfactant

LAL BHF

BHF containing a surfactant which has achieved extended service life and other advantages by

_{optimizing the concentration of ammonium fluoride.}

LA BHF

BHF which etches silicon oxide at high speed.

Silicon oxide etchant with High Selectivity for silicon nitride.

Silicon oxide etchant without damaging to silicon and poly-silicon absolutely.

Product name

(Semiconductor and LCDs)

Ultra-high-purity hydrofluoric acid

Ultra-high-purity buffered

hydrofluoric acid

HSN Series

<Results and forecast of world semiconductor market scale by regions>

Source: World Semiconductor Trade Statistics Inc. (WSTS)

69,324

68,738

65,537

73,561

75,334

75,471

37,459

_34,258

_32,707

35,543

36,669

37,110

34,830

_31,102

32,292

34,408

35,069

35,219

194,230

_201,070

_208,395

234,288

240,884

239,358

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2014

2015

2016

2017

2018

FY 2019

($ million)

USA

Europe

Japan

Asia-Pacific

Results

Forecast

2014

2015

2016

2017

2018

2019

<New business developments in growing markets>

Large investments in semiconductor factories are in the pipeline for China and other parts of East Asia by 2019.

While the Chinese semiconductor market is currently small, the industry in Taiwan and China is expected to grow increasingly.

_{*We will move ahead by implementing effective sales strategies in the Chinese market.}

ー カ ー 建 設 地 点 名 生 産 品 目 サ イ 生 産 能 力 計 画

N-Y2

3D-NAND

インチ

１

万枚／月

年度 け イン導入

Y6

3D-NAND

インチ

年度夏完成

イ ン テ

大 連

Fab2

3D-NAND

インチ

万枚／月

建設中。　 年 月 装置導入

ロ ー

フ ァ

ン

ー

成 都

Fab 11

ファン

ー

インチ

万枚／月

建設中。　 年 稼働

マ イ

ロ ン テ

ロ

ー

広 島

Fab 15

DRAM

インチ

万枚／月

の量産 向けて 新棟建設中。

サ

ン 電 子

西 安

イン Ⅱ

3D-NAND

インチ

万枚／月

万枚／月 ら 年 万枚／月 張

TSMC

南 京

ファン

ー

インチ

万枚／月

年後半 ら生産開始

福 建 省 電 子 信 息 ； 　

※

技 術 供 与

泉 州

ニッチ

A

インチ

万枚／月

年 月建屋竣工。 年 稼働。

Nexchip

ワ ー チ ッ プ )

合 肥

液晶

イ

ー

IC

インチ

万枚／月

年 ～ 月 . 万枚／月の装置挿入。

年 万枚／月追加。

ホ ワ

ー ； 　

上 海

Fab 2

ファン

ー

インチ

万枚／月

年 装置導入。

イ

ロ ン

ー

合 肥

DRAM

インチ

.

万枚／月

年 月 装置搬入。

長 江 存 儲 科 技 ； 　

※ 紫 光 集 団 資 参 加

武 漢

3D-NAND

インチ

万枚／月

年 装置導入。 年 万枚／月

構想も。

東 芝

四 日 市

Manufacturer

Toshiba Memory

Place of

construction Base name Produced item Wafer size

Production capacity, etc. Plan Intel Global Foundries Micron Technology Samsung Electronics TSMC

Fujian Electronics & Information; JHICC*Technology licensed by UMC

Nexchip (Powerchip)

Huali; HLMC

Innotron Memory

Yangtze Memory Technologies; YMTC *Tsinghua Unigroup acquired capital in XMC.

Yokkaichi Dalian Chengdu Hiroshima Xian Nanjing Quanzhou Hefei Shanghai Hefei Wuhan Y6 Fab 2 Fab 11 Fab 15

17 Line (II)

Fab 2 3D-NAND Foundry DRAM Niche DRAM Foundry Foundry LCD driver IC DRAM 3D-NAND 3D-NAND 12 inches 12 inches 12 inches 12 inches 12 inches 12 inches 12 inches 12 inches 12 inches 12 inches 100,000 wafers/month 80,000 wafers/month 20,000 wafers/month 160,000 wafers/month 200,000 wafers/month 60,000 wafers/month 80,000 wafers/month 40,000 wafers/month 40,000 wafers/month 125,000 wafers/month 50,000 wafers/month

Production lines will be installed by FY 2017

To be completed in summer of FY 2018

Under construction Equipment will be installed in February 2018

A new factory building is under construction for mass production of 1Xnm DRAMs

Capacity will be increased from 130,000 wafers/month to 200,000 wafers/month in 2019

Production will start in the second half of 2018

The factory building is expected to be completed in October 2017 To go online in 1Q 2018

Equipment to produce 3,000 wafers/month was installed in April-June 2017

Capacity will be increased by 10,000 wafers/month in 1Q 2018. Equipment will be installed in 2Q 2018

Equipment will be installed in November 2017

Equipment will be installed in 2Q 2018

Aiming to increase capacity to 1 million wafers/month by 2030

N-Y2 3D-NAND

3D-NAND 12 inches

12 inches

<Maintenance and strengthening of quality edge>

◆

SA Grade HF quality

◆

Product technology generation

≥45 nm

28 nm

≤16 nm

Our product grade

_SA/SA-X

_SA-XX

_SA-XXX

Metal impurities level

_{<100 ppt}

_{< 10 ppt}

_{<1 ppt}

Management size

of particle

0.2/0.1 um

0.05 um

_{0.03 um}

Succeeded in ultra-high-purity

Further strengthening particle management

High resolution ICP-MS

Liquid-borne particle counter

©Thermo Fisher Scientific K. K. ©RION CO., LTD.

We respond the needs of semiconductor manufacturers

<Change in shipping volume of high-purity hydrofluoric acid (semiconductors and LCDs)>

2Q 34,199

2Q

33,669 _32,698 2Q 2Q

31,257 (2Q) 39,665 (Full-year) 69,132 (Full-year) 65,177 (Full-year) 65,241 (Full-year) 66,069 3Q 62,075

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

FYE 3/2014

FYE 3/2015

FYE 3/2016

FYE 3/2017

FYE 3/2018

Batteries



Features of our products



Changes in lithium-ion battery market size and trends

in electric-powered vehicles



Launch of electrolyte business for lithium-ion

secondary batteries in China

(1) Used as main material comprising lithium-ion secondary batteries and commercialized much ahead of other companies

(

2) Because of the product’s high purity, it is

recently being used for high-performance lithium-ion secondary batteries.

Product name

(related to batteries)

Description

Lithium

hexafluorophosphate

Electrolyte for lithium-ion secondary batteries Electrolyte for other batteries

Lithium tetra fluoroborate Electrolyte and additives for lithium-ion primary and secondary batteries

Additive for batteries Additive for lithium-ion batteries

<Lithium hexafluorophosphate particle form> <Lithium tetra fluoroborate> <Large-size container: 1 m3_>

<Changes in lithium-ion battery market size and trends in electric-powered vehicles>

0

5000

10000

15000

20000

25000

30000

2013 2014 2015 2016 2017 2018 2019 2020

世

界

の

L

IB

販

売

金

額

[

億

円

]

実

績

ら

び

予

測

年

車載用

LIB

民生用

LIB

Growth of in-car LIB is expected.

(Results) (Prospects and forecast)

Source: Materials of Fuji Chimera Research Institute, Inc.

<Launch of electrolyte business for lithium-ion secondary batteries in China>

Outline

Name

Quzhou BDX New Chemical Materials Co., Ltd. (established in December 2015)

Location

17 Nianhua Road, Kecheng District, Quzhou City, Zhejiang Province, People's Republic of China

Business

lineup

Lithium hexafluorophosphate (LiPF6)

Research & development and production of byproduct hydrofluoric acid for industrial use, hydrochloric acid and other fluorine-containing chemical system products

Sales of in-house products and provision of related services

Capital fund

70 million Chinese yuan (1,330 million yen*) Stella: 25.0%; Quzhou NGF Chemicals Co., Ltd.: 75.0%

Objectives

In China, continuous growth of lithium-ion secondary battery industry is anticipated. A local production system _{is established to handle the demand in China.}

Details of

cooperation

Part of the manufacturing facilities of electrolyte for lithium-ion batteries is relocated to a joint company. The joint company produces the electrolyte for lithium-ion batteries by the relocated facilities and markets the electrolyte in and outside China.

■

June 2017

Start of operation of manufacturing

facilities.

(Manufacturing capacity: 1,300 t/year at

maximum)

On completion of product evaluation

(including suppliers), sales are slated to

be started.

<Plan and schedule>

<Launch of electrolyte business for lithium-ion secondary batteries in China>

■

Quzhou BDX New Chemical Materials Co., Ltd.

Product and material warehouse

Manufacturing building

FYE 3/2013 FYE 3/2014 FYE 3/2015 FYE 3/2016 FYE 3/2017 FYE 3/2018 FYE 3/2019 FYE 3/2020

Fiscal Year

Results

Prospects

<Additive for lithium-ion batteries>

Roles that additive play

◆ High-temperature

endurance

◆ High conductivity (low

temperature)

◆ Increased capacity ◆ Low resistance ◆ Flame retardance

<Schematic diagram of lithium-ion battery inside>

The solid electrolyte interface (SEI), wherein the electrode comes in contact with the electrolyte, is important.

Electrolytic solution

Discharge Charge

GMP-related

_{Standards for Manufacturing Control and Quality Control for Drugs and Quasi-drugs}

Three principles:

“

Reducing human errors to the lowest level"

“

Preventing contamination and product quality

loss“

“

Designing systems to assure high product quality"

<GMP(Good Manufacturing Practice)>

Fo

r

ma

nu

fac

turin

g

se

mic

on

du

ctors

Ex

pand

ed

to

pr

oduc

ts

re

lated

to

daily c

ommodities

<Examples of products for drugs>

Sodium fluoride

Sodium monofluorophosphate

Tin fluoride

<Actions of fluorine on teeth>

■

To suppress Streptococcus mutans from

producing acid

(Cavity prevention)

■

To promote tooth remineralization

■

To form tooth resistance to acid

(To form fluoroapatite)

Sales

started.

4. Medical Business



Corporate Profile (as of December 31, 2017)



Boron Neutron Capture Therapy (BNCT)



Establishment of enrichment technology/Features of enriched

Boron/Applications of 10B compounds



World’s First Accelerator

-based BNCT Clinical Trial



Boron-based Drug SPM-011 for BNCT Designated for MHLW

Prioritized Review System for innovative medicines

“SAKIGAKE”

Corporate name:

STELLA PHARMA CORPORATION

Head Office:

3-2-7 Koraibashi, Chuo-ku, Osaka-shi, Osaka

Representatives:

Tomoyuki Asano, Representative Director and President

Established:

June 2007

Business lineup

Research and development, manufacture and marketing, etc. of drugs and

medical devices

Capital:

1,900 million yen

Shareholders:

Stella Chemifa Corporation

Innovation Network Corporation of Japan

Sumitomo Heavy Industries, Ltd.

Laboratory:

Sakai Drug Discovery Research Center

(Naka-ku, Sakai-shi, Osaka)

URL

http://www.stella-pharma.co.jp/

Boron Neutron Capture Therapy (BNCT) is a particle beam radiation therapy which

damages cancer cells specifically by making the best of

nuclear fission reactions

between

boron 10

, stable isotope of boron, and

thermal neutrons

using small energy.

Administration of boron (Boron-10)

compound

Boron (Boron-10) compound is

selectively brought into cancer cells.

Irradiating with thermal neutron ray

causes boron (Boron-10) to fission.

Cancer cell which brought in boron

(Boron-10) compound is selectively destroyed.

Prompt gamma ray 478 keV

7_{Li Recoil nucleus}

0.84 MeV

4He nucleus (α particle)

1.47 MeV

4 μm

9 μm

10

_B

Thermal neutron

We established a mass production technology of

10

_{B for the first time in Japan and in November}

2000, the only enrichment plant in Japan was completed.

■

Establishment of enrichment technology

Generation

10

_B

10

_B

10

_B

10

_B

10

_B

10

_B

10

_B

10

_B

10

_B

10

_B

10

_B

10

_B

Enrichment and

separation

<The

only

10

_{B enrichment plant in Japan> (completed in November 2000)}

■

Features of enriched Boron

10

_{B offers properties of remarkably high neutron absorption capacity, and by increasing}

10

_{B concentration, the}

absorption capacity is improved significantly.

■

Applications of

10

_{B compounds}

•

Neutron-absorbing material of spent nuclear fuel transportation-and-storage containers

•

Material of control rods of nuclear reactors and rack material of spent nuclear fuel pools

•

Excess reaction control of pressurized-water reactors by immersing them in primary cooling water

The world’s first BNCT clinical trials using the boron

-based drug for BNCT (SPM-011) , which Stella

Pharma developed as well as accelerator-based irradiation system for BNCT, developed by Sumitomo

Heavy Industries, “Phase II study for recurrent malignant glioma (high

-

grade brain tumor)” started in

December 2015 and “Phase II study for head and neck cancer”

in June 2016. These trials were started

after submitting the clinical trial plan notification, and are still ongoing.

Pharmaceutical solution bag made by

Stella Pharma

Accelerator-based irradiation system made by Sumitomo Heavy Industries

World’s first BNCT clinical trial

Recurrent malignant glioma (high-

grade brain tumor)”



December 2015, Phase II study started.

Head and neck cancer



June 2016, Phase II study started.

Assumed flow chart, from clinical trial to approval application

Phase I study

Phase II study

Approval application _(scheduled)

Neutron dose is increased stepwise to check safety. Verification of effect by the dose decided.

Boron-

based drug “SPM

-

011” for BNCT for which Stella Pharma Corporation performs clinical

development was designated by Ministry of Health, Labour, and Welfare (MHLW) for “Prioritized

Review System for innovative medicines ‘SAKIGAKE’” On April 21,

2017.

<Boron-based Drug SPM-011 for BNCT Designated for MHLW Prioritized Review

System for innovative medicines “SAKIGAKE”>

Drug name

Intended indications and effects

Name or trade name of

applicant

SPM-011

•

Recurrent malignant gliomas

•

Unresectable locally recurrent head

and neck cancer and locally-advanced

head and neck cancer

(non-squamous cell carcinoma)

Stella Pharma Corporation

The BNCT system (accelerator-based irradiation system) of Sumitomo Heavy Industries, Ltd., which

jointly carries out the clinical study was assigned for the target item of the said system as a medical

device on February 28, 2017, too.

“Prioritized Review System for innovative medicines ‘SAKIGAKE’”

Photo: Courtesy of Professor Ono at Kyoto University Research Reactor Institute

Signing the joint development agreement with Sumitomo Heavy Industries, Ltd., which has expertise

in the automated synthesis of PET drugs, enabled us to develop PET drugs and take a major step

forward to commercialization.

Joint research is ongoing with Osaka Prefecture University, Osaka University, the National Cancer

Center, and other well-established research organizations though a project adopted by the Japan

Agency for Medical Research and Development (AMED).

In order to provide total medical care from early cancer diagnosis to therapy, we

will continue to carry out research and development in coming years.

(Left) MRI image of brain tumors

(Right) [18_{F]FBPA PET image of brain tumors}

We have undertaken the development of PET diagnostic technology using [

18

_{F]FBPA, which attracts}

researchers and industry attention as a new PET drug used for “PET diagnosis,”

which is a

technology useful for early detection of cancers.



To

be able to detect “brain tumor,” which is difficult to

detect at present.



Able to simply carry out PET diagnosis by [

18

_F]FBPA

for institutes where PET diagnosis is conducted at

present.



To be able to judge whether BNCT can be applied.

Features of PET diagnosis using [

18

_F]FBPA

5. Transportation Business



Corporate Profile

(as of December 31, 2017)



Transportation System by Cooperation with Domestic

Bases



Overseas Bases

Corporate name:

BLUE EXPRESS CORPORATION

Head Office:

10 Ohamanishi-machi, Sakai-ku, Sakai-shi

Representatives:

Kiyonori Saka, Representative Director and President

Established:

June 1991

Capital:

350 million yen

Business lineup

Common motor trucking / International intermodal transport /

_{Warehousing / Customs clearing agent / sales, rental and lease of}

containers, tanks, etc. /

_{Automobile maintenance services / Business related to life insurance and}

non-life insurance agent, etc.

URL

http://www.blue-express.co.jp/

Shipping terminals

Sendai Office

Kanto Office

Yokohama Office

Shimizu Office

Nagoya Office

Ohama Office

Kobe Office

Kitakyushu Office

Customs clearance sites

Tokyo Office

Yokohama Office

Osaka Office

Ohama Office

Kitakyushu Office

Blue Express (Shanghai) International Trade Inc.

Blue Express (Shanghai) International Freight Forwarding Co., Ltd.

China (Shanghai)

Stella Express (Singapore) Pte Ltd.

Singapore

Storage

Transportation

Customs

clearance

Container

service

<International Intermodal Logistics system>

●High-purity chemicals

●Poisonous and deleterious substances ●Hazardous material

<Future Activities>

■

To steadily expand business with priority given to the improvement of customer satisfaction

To further improve quality, etc. of international intermodal logistics service

■

To maintain continuous investment for further growth

To establish the additional hazardous substance warehouse

(construction to be started in April 2018)

■

To further strengthen business operation base and revenue base

6. Future Activities



Approaches to Advanced Energy Devices



New additive for advanced lithium-ion Batteries



Electrolyte for Post Lithium-ion Batteries



Development of Catalysts for Polymer Electrolyte

Fuel Cells (PEFCs)



Fluorinated Carbon Nanotubes

We are leveraging our expertise and experience in fluorine chemistry with an aim to make

original products that would serve as our next-generation prime source of earnings.

Development of catalysts

for fuel cells

Fuel cell vehicle (FCV)

Residential fuel cell system

Fluorine

chemistry

(core technology)

LIB

additives

know-how

Surface

treatment

technology

Mass

production

technology for

high-purity

electrolytes

Development of electrolyte for post

lithium-ion batteries

Launch of sodium ion battery prototypes (Image is for illustrative purposes only)

New additive for

advanced lithium-ion

batteries

Roll-out to automotive applications

Roll-out to residential applications

Conducted trials for a wide range of applications from

in-car to stationary LIBs across the globe

We were highly rated for our advanced high

capacity battery mechanism

Development Phase

Future Developments

Combine with user battery materials

Appearance of the new additive

New Additive Concept

Improved characteristics by film forming

Effect of improved characteristics by

new additive

Improved characteristics

Longer battery life Slower degradation under high

temperatures

Lower resistance under low temperatures

Work on developing mass production technique

<New Additive for Advanced Lithium-ion Batteries>

Separator _{Electrolytic solution}

Discharge Charge

Positive-electrode material Negative-electrode material With additive No additive D ischa rg e cap aci ty retent ion r atio [ %]

Na-ion battery-equipped electric bicycle

(Image is for illustrative purposes only)

Users rated our world-quality samples very high

Future Developments

Work on developing mass production technique

Developed a production process for high-purity NaPF6

to be used in future mass production

High-purity electrolyte for sodium-ion batteries

(NaPF6)

Na Li

1. Abundant resources (400 times more than Li) 2. Similar battery production process as LIB

Importance of sodium-ion batteries

Comparison of resource amounts

<Electrolyte for Post Lithium-ion Batteries>

Development Phase

Cla rke nu m be rs (rel a tiv e a bu nd a nc e of e le m e nts in Ea rth's c rus t)

Verified that the original surface treatment improved

performance in a low humidity environment

Development Phase

Future Developments

To promote and begin trials for users

Appearance of developed fuel cell

catalyst

Hydrogen gas

Fuel electrode

Air (oxygen gas)

H

+

Air electrode

Motor rotation

e

- (Electron)

Out

put

pot

ent

ial

[V]

Out

put

[

W

/c

m

2]

Move on to non-platinum catalyst research

Conventional catalysts do not perform well in a low humidity environment.

Current density [mA/cm2]

The newly developed catalyst performs better in a

<Development of Catalysts for Polymer Electrolyte Fuel Cells (PEFCs)>

Developed Catalyst

F

F

F

F

F

F

F

Fluorinated carbon nanotube dispersed liquid

Non-fluorinat ed CNT Fluorinated CNT

F-CNT dispersed liquid with high

dispersibility without using any

surfactant.

Applications in displays

Conductive film made with fluorinated CNT

Non-fluorinated

Coated with fluorinated CNT

Applications in exterior coatings

25% stronger

Epoxy resin Fluorinated CNT

epoxy composite Fluorination of carbon nanotube

Transparent conducting film and antistatic film

Composite material (compounding of CNT

and resin)

Antistatic film prototype sample

Applications in engineering plastics

Development of low refractive index fluoride material for antireflection film

<Fluoride Nanoparticles>

Evolution and market expansion of smart cars, IoT, and wearable devices

Increased demand of coating material that increases display panel visibility

Hollow introduced in particles

by particle morphology control

50nm

Conventional product n=1.38 _{Developed product n=1.32}

50nm

http://style.nikkei.com/article/DGXMZO11794240X10C17A1000000

Achievement of low

refractive index

Corporate slogan

B e y o n d

t h e

C h e m i c a l

We are drawing upon the strengths in the chemical field whose

growth we have nurtured so far and moving toward even greater

development in the future.

High-purity chemical

business field

Medical

business field

Transportation

Items related to the business forecast posted in this presentation material are created on the basis of the

information available as of the date of announcement of this presentation material and do not guarantee any

future business achievements. The actual business achievements may differ from assessment figures due

to future events.

Please note that the description stipulated in this presentation material may be changed without any prior

notice. We shall not assume any responsibility for any damages etc. resulting from any mistake in the

information, etc. posted in this presentation material.

This presentation material is created to help you understand our businesses.