FY2025 Q3 Financial Results Presentation

Performance Overview

Operating income for April-December FY2025 increased 6.2% YoY to 173.9 billion yen, and quarterly net income attributable to owners of the parent rose 22.7% YoY to 120.6 billion yen, achieving profit growth. Profit growth in the pharmaceutical business contributed positively, and the domestic housing business also performed steadily. Meanwhile, the Essential Chemicals business posted a decline in profit due to inventory settlement differences and regular maintenance impact. The full-year forecast also anticipates record-high profits for the second consecutive year, with operating income expected at 225.0 billion yen (YoY +6.2%) and net income at 145.0 billion yen (YoY +7.4%), representing a second upward revision in this fiscal year from the forecast announced in November.

Business Portfolio Transformation and Growth Strategy

Based on the medium-term management plan, the company is promoting business portfolio transformation through a dual approach of growth investments and structural transformation. The goal is to expand the profit composition ratio of priority growth businesses such as pharmaceuticals, critical care, and electronics, targeting these sectors to account for approximately 50% of operating income by FY2027. Additionally, efforts to improve profitability and transform business models are advancing, accelerating improvements in low capital efficiency in the materials business. From FY2026, a special incentive system will be introduced to the employee stock ownership plan to foster awareness toward enhancing corporate value.