Fiscal Year 2025 Q3 Earnings Presentation Materials

Overview of Financial Results

Consolidated results for the third quarter of fiscal year 2025 showed net sales of 756.1 billion yen (YoY △39.6 billion yen), operating income of 69.9 billion yen (YoY △4.7 billion yen), ordinary income of 77.0 billion yen (YoY △5.6 billion yen), and net income attributable to owners of parent of 24.6 billion yen (YoY △23.9 billion yen). The primary factors for the decrease in profits included reduced demand for petrochemical products, production declines due to scheduled maintenance at the Nanyo Plant, price drops following raw materials cost declines, worsening inventory valuation differences, and increased fixed costs. Conversely, sales expansion in the engineering business and improved trading terms contributed partially.

Segment Performance and Full-Year Outlook

The Petrochemical segment recorded net sales of 133.0 billion yen (YoY △26.1 billion yen) and operating income of 8.1 billion yen (YoY △4.3 billion yen), showing declines in both sales and profit. The Chlor-alkali segment reported net sales of 253.8 billion yen (YoY △25.0 billion yen) and operating income of 0.1 billion yen (YoY △7.2 billion yen), a significant profit decrease. The Functional Products segment remained almost flat with net sales of 202.6 billion yen (YoY △0.6 billion yen) and operating income of 31.1 billion yen (YoY △0.1 billion yen). The Engineering segment achieved net sales of 132.8 billion yen (YoY +12.8 billion yen) and operating income of 27.8 billion yen (YoY +6.4 billion yen), posting growth in both sales and profit. The full-year forecast for fiscal year 2025 anticipates net sales of 1,010 billion yen (Previous Forecast △10 billion yen), operating income of 90 billion yen (Previous Forecast △13 billion yen), and net income attributable to owners of parent of 30 billion yen (Previous Forecast △8 billion yen), reflecting downward revisions owing to the downturn in major product markets and weak demand.