Earnings Presentation Materials for FY March 2027 Q2

Performance Overview

In the second quarter of FY March 2026, net sales were 27,424 million yen, operating income was 2,774 million yen, and ordinary income was 3,430 million yen, representing increases of 6.8% in net sales and 19.0% in operating income compared with the same period of the previous fiscal year. Meanwhile, interim net income decreased to 2,775 million yen. Structural changes such as the "equity-method associate in China" contributed to the decline in interim net income. The full-year forecast for FY March 2027 has been revised upward to net sales of 56,500 million yen, operating income of 5,200 million yen, ordinary income of 5,800 million yen, and net income of 4,800 million yen.

Shareholder Returns and Financial Strategy

An interim dividend of 40 yen and an assumed full-year dividend of 130 yen are planned. The dividend payout ratio aims to be around 30% compared with past results shown in the materials. In terms of financial strategy, despite the impact of rising raw material costs, the company aims to improve profits through selling price revisions and cost containment. Share buybacks (treasury stock acquisitions) are mentioned in the financial strategy section of the IR materials, and flexible implementation at appropriate timing will be considered. Improving ROE and optimizing capital efficiency are important measures toward achieving the medium-term management plan.