Fiscal Year Ending March 2027 — Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

In the second quarter of the fiscal year ending March 2027, Showa Chemical Industry Co., Ltd.'s consolidated net sales amounted to 4,986 million yen, a modest increase of 2.9% year-over-year. However, due to rising raw material costs, a decline in equity-method investment income, and foreign exchange losses, ordinary income decreased to 393 million yen. Interim net income attributable to owners of parent was 294 million yen, down 12.3% year-over-year. By segment, filtration aids performed well both domestically and internationally, building materials & fillers experienced a domestic slowdown, chemical products expanded, and other segments saw revenue growth. The financial position improved with total assets of 15,115 million yen, net assets of 9,958 million yen, and an equity ratio of 65.9%. There is no change to the full-year forecast, and qualitative information notes efforts to promote new businesses and respond to price revisions.

Outlook and Shareholder Impact

In the near term, it remains uncertain whether the effects of price revisions will outweigh high raw material costs. The company is promoting energy-saving measures, productivity improvements, and strengthening stable supply systems while continuing to develop new businesses. Dividend plans remain as currently announced, with an annual dividend maintained at 10.00 yen (interim 3.00 yen, year-end 3.00 yen; the 2026 actual included a 3.00 yen year-end dividend), and the full-year forecast is unchanged. The improvement in the equity ratio contributes to financial stability. For shareholders, the continuation of stable dividends and efforts toward long-term business expansion are key points of interest.