Q&A Summary for the Q1 of the Consolidated Financial Results for the Fiscal Year Ending March 2027

Overview of performance

The full-year outlook for this period has shifted from undecided to disclosed. The raw material procurement environment is showing an improving trend, but continued supply disruptions and elevated prices for certain materials persist. Adjusted EBITDA is expected to be about 13% higher YoY at 2.21 billion yen, while depreciation from capital expenditure increases is expected to reduce operating income and ordinary income YoY. The impact of raw material risk response costs is expected to be limited, depending on progress from the second quarter onward. The biopharma segment is expected to grow steadily, and the pharmaceutical segment is in the preparatory stage with slower growth anticipated for future mass-production projects.

Key outlook and risks

Procurement difficulties for raw materials and packaging materials remain in part, but the group will prioritize productivity and profitability. The pace of substitutions and the lag in passing higher raw material costs to selling prices could affect the full-year earnings forecast, leading to a conservative outlook. Looking ahead, imports from regions outside the Middle East are expected to increase, which should ease logistics congestion, but vigilance remains for high price levels.