Fiscal Year Ending March 2027 Half-Year Financial Results Briefing

Overview of Results

Consolidated net sales for the half-year were 81,447 million yen, up 4.4% year-over-year. Operating income was 6,452 million yen, an increase of 7.9%. Growth businesses (electronic materials, organic chemicals, etc.) and stable businesses (hygiene materials, contract manufacturing, etc.) secured profit growth. The impact of terminating the pigment-grade titanium dioxide business has been partially offset by declines in efficiency improvement projects. Upon exercise of stock acquisition rights, 1,012,600 new shares will be issued and approximately 2,000 million yen will be allocated to M&A standby funds.

Outlook and Shareholder Returns

While electronic materials are expected to remain strong in the second half, attention should be paid to reduced inventory sales of pigment-grade titanium dioxide and shifts in sales composition such as inorganic materials. Considering gains from the sale of strategically held shares, net income is expected to improve in the next fiscal year. The company will implement a 6,000 million yen treasury stock acquisition to enhance shareholder value. The full-year dividend will remain unchanged from the previously announced amount. Working capital management will continue to improve CCC.