Fiscal Year Ending March 2026 Q3 Financial Results Presentation

Overview of Financial Results

Net sales for the cumulative third quarter of the fiscal year ending March 2026 were 598.3 billion yen, down 0.8% year-over-year. Operating income was 22.2 billion yen, a 23.8% decrease year-over-year, while quarterly net income increased by 4.0% to 18.4 billion yen. The decline in operating income was mainly due to sluggish performance in the Asian vinyls market and prolonged weakness in U.S. housing and construction demand. Conversely, the Medical business expansion drove the earnings. Gains on sales of policy-held shares amounting to 10.2 billion yen contributed to the increase in net income.

Segment Performance and Future Outlook

By segment, Material SU recorded net sales of 241.5 billion yen (YoY -5.5%) and operating income of 17.8 billion yen (YoY -21.8%), posting decreases in both sales and profits. Quality of Life SU posted net sales of 145.4 billion yen (YoY +0.8%) and operating income of 14.3 billion yen (YoY -9.2%), remaining roughly flat. Health Care SU achieved net sales of 57.3 billion yen (YoY +3.4%) and operating income of 9.6 billion yen (YoY +9.7%), marking sales and profit growth. Nutrition SU saw increased sales but decreased profits. The consolidated earnings forecast has been revised downward from the previous forecast, with net sales of 800.0 billion yen, operating income of 34.0 billion yen, and net income of 31.5 billion yen, although progress is being made in strengthening life sciences and social implementation of new products in key areas.