Fiscal Year 2025 3rd Quarter Financial Results Presentation

Performance Overview

For the cumulative 3rd quarter of fiscal year 2025, net sales reached ¥724.0 billion (Year-over-Year 101%), and operating income was ¥33.2 billion (Year-over-Year 107%), both setting new records. The gross profit margin also improved by 0.9 points to 19.2% (previous year 18.3%), reflecting enhanced profitability through the pursuit of ROIC management. Particularly, the Prinova Group’s Solutions and Nutrition businesses performed strongly, supporting recovery trends in the manufacturing industry overall. Meanwhile, the trading company business remained flat due to sluggish automotive-related operations. Special gains and losses included losses associated with withdrawal from the China business and gains from negative goodwill related to M&A.

Segment Trends and Future Outlook

In the trading company segment, electronics, energy, and lifestyle-related businesses performed well, but mobility and automotive-related functional materials were sluggish. Manufacturing saw profit growth driven by the manufacturing recovery of the Prinova Group and increased sales of modified epoxy resin for AI server semiconductors by Nagase ChemteX. The functional materials segment experienced profit decline due to decreased demand for paint materials but was offset by increased sales of semiconductor materials. There are no significant revisions to the full-year outlook, with the Solutions business expected to continue its strong performance.