FY2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

For the third quarter of the fiscal year ending March 2026, consolidated results were net sales of JPY 1.934 trillion (0.2% YoY increase), operating income of JPY 498.0 billion (14.8% YoY decrease), ordinary income of JPY 557.4 billion (13.5% YoY decrease), and net income attributable to owners of parent of JPY 384.3 billion (11.1% YoY decrease). Sales remained nearly flat, while profit declined. By segment, electronic materials performed steadily with net sales of JPY 750.3 billion (6% increase), whereas life & environment foundation materials recorded net sales of JPY 747.9 billion (4% decrease) and operating income of JPY 146.3 billion (35% decrease), showing a decline. Functional materials also saw net sales of JPY 333.7 billion (2% decrease) and operating income of JPY 72.5 billion (7% decrease).

Financial Position and Dividends

At the end of the third quarter of the fiscal year ending March 2026, total assets stood at JPY 5.4513 trillion (a decrease of JPY 185.3 billion from the previous fiscal year-end), net assets were JPY 4.4897 trillion (a decrease of JPY 347.8 billion), resulting in an equity ratio decline to 79.2%. The decrease in cash and deposits was mainly due to share buybacks, dividend payments, and corporate tax payments. The dividend forecast remains at JPY 106 per share annually, with a payout ratio expected to increase 3 points to 42.4% compared with the previous fiscal year.

Full-Year Earnings Guidance

The full-year earnings guidance for the fiscal year ending March 2026 forecasts net sales of JPY 2.4 trillion (6% decrease YoY), operating income of JPY 635.0 billion (14% decrease YoY), ordinary income of JPY 700.0 billion (15% decrease YoY), and net income attributable to owners of parent of JPY 470.0 billion (12% decrease YoY). Earnings per share are projected at JPY 250. Operating income margin is expected to decline to 26.5%, and net profit margin to 19.6%.