FY2026 Third Quarter Financial Summary [IFRS] (Consolidated)

Performance Overview

For the cumulative third quarter period of FY2026, revenue totaled JPY 2,737.3 billion (down 8.2% YoY), core operating income was JPY 185.6 billion (down 2.4% YoY), and operating income was JPY 113.3 billion (down 22.2% YoY). Meanwhile, net income attributable to owners of the parent for the quarter significantly increased to JPY 105.4 billion (up 77.6% YoY), reflecting profit recognition from the sale of all shares of a discontinued business, Tanabe Mitsubishi Pharma Corporation. Segment-wise, Specialty Materials saw profit growth despite revenue decline; MMA & Derivatives experienced decreases in both revenue and profit; Basic Materials & Polymers recorded revenue declines; Industrial Gases showed increases in both revenue and profit.

Outlook and Business Strategy

The full-year earnings guidance for FY2026 forecasts revenue of JPY 3,672.0 billion and core operating income of JPY 250.0 billion to remain unchanged, but operating income is sharply revised downward to JPY 70.0 billion (down 60.2% from previous forecast), and net income attributable to owners of the parent is also significantly lowered to JPY 47.0 billion (down 62.4%). The primary cause is additional extraordinary losses related to structural reforms following the withdrawal from the coke and carbon materials business. Production discontinuation for the withdrawn business is scheduled for the second half of FY2027, affecting approximately 600 employees. The company will continue to review its business portfolio and aims to improve its earnings structure.