Fiscal Year 2025 Q3 Financial Presentation Materials

Overview of Fiscal Year 2025 Q3 Results

Net sales for the third quarter of fiscal year 2025 were JPY 549.4 billion, a decrease of JPY 33.7 billion year-over-year. The main factors for the decline in sales were lower market prices for polycarbonate (PC) and methanol, as well as the withdrawal from the ortho-xylene (OX) chain business. On the other hand, increased sales volume of BT materials contributed positively to revenue. Operating income was JPY 37.8 billion, down JPY 7.4 billion year-over-year, impacted by increased fixed costs due to capacity expansion in inorganic chemicals and deterioration in profitability of MXDA-related products. Net income attributable to owners of parent was a loss of JPY 26.1 billion, significantly affected by impairment losses recorded at the MXDA plant in the Netherlands (JPY 53.4 billion loss) and the hydrogen peroxide plant in China (JPY 5.2 billion loss).

Full-Year Earnings Guidance and Dividend Policy for Fiscal Year 2025

The full-year net sales forecast is maintained at JPY 730.0 billion, with operating income projected at JPY 47.0 billion (up JPY 3.0 billion from the previous forecast), and net income attributable to owners of parent expected to be a loss of JPY 18.0 billion (down JPY 1.0 billion from the previous forecast). Special income includes gains on the sale of non-operating assets in the fourth quarter. Dividends are planned at JPY 50 for the interim dividend (actual) and JPY 50 for the year-end dividend (forecast), unchanged from the previous forecast. The foreign exchange assumptions are JPY 150 per USD, JPY 180 per EUR, and crude oil price assumption is USD 65 per barrel.