FY2026 Q3 Financial Presentation Materials

Overview of Business Performance

FY2025 Q3 revenue was JPY 299.3 billion, down 3.0% year-on-year, while operating income was JPY 15.2 billion, almost unchanged compared to the same period last year. Segment profit was JPY 16.7 billion, down 8.7% year-on-year. Quarterly profit increased by 2.5% year-on-year to JPY 14.4 billion. The revenue decline was mainly due to deterioration in profitability of the Materials segment, with increases in selling, general and administrative expenses and declines in inventory valuation gains pressuring profits. On the other hand, the Solutions segment achieved both revenue and profit growth. The full-year earnings forecast remains unchanged from the revision on November 7, with revenue of JPY 405.0 billion, operating income of JPY 18.0 billion, and net income of JPY 15.0 billion forecasted.

Segment Trends and Financial Position

The Materials segment recorded revenue of JPY 208.5 billion, down 6.1% year-on-year, and profit of JPY 10.8 billion, a decrease of JPY 1.9 billion. This was particularly affected by sluggish overseas market conditions for AES and specialty esters. The Solutions segment posted revenue of JPY 90.8 billion and profit of JPY 5.2 billion, both increasing. On a consolidated basis, total assets stood at JPY 564.7 billion, total liabilities at JPY 167.5 billion, and the equity ratio stable at 68.7%, maintaining a sound financial base. Cash flow from operating activities was positive JPY 40.3 billion, while investing activities showed negative JPY 30.9 billion and financing activities negative JPY 14.8 billion.