Nippon Chemical Industrial Co., Ltd. 1st Quarter Financial Results Announcement 〔Japanese GAAP〕(Consolidated)

Section heading

We are advancing the three initiatives of the medium-term management plan, and while considering fluctuations in demand for automotive applications and delays in raw material supply, sales expanded due to growth in AI server-related demand and catalyst and organic synthesis material for overseas markets. Segments show trends in Functional Products, Chemicals, Leasing, and Other, with improvements in financial position as total assets increased and the equity ratio remained robust. The full-year forecast for the fiscal year ending March 2027 has been raised to net sales of 40.8 billion yen, operating income of 2.8 billion yen, and net income attributable to owners of the parent of 4.5 billion yen. We will remain mindful of the preparation of supplementary materials and future market trends, while balancing capital efficiency and shareholder returns.

Section 2 heading

Qualitative quarterly performance commentary indicates steady demand from AI server-related customers, while automotive demand remained weak, and some impact from delays in raw material supply. Segment contributions come from Functional Products and Chemicals, with Leasing and Other segments such as environmental measurements also performing steadily. In terms of financial position, cash and deposits declined while accounts receivable increased; investment securities increased, strengthening equity. Going forward, considering the sale of strategically held shares, we will prioritize ROE improvement and ensuring financial soundness.