Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [IFRS] (Consolidated)

Overview of Business Performance

For the cumulative consolidated period of the third quarter of the fiscal year ending March 2026, net sales amounted to JPY 8,722.37 billion, a 4.0% decrease year-over-year. Operating income secured a gain with a 26.6% increase to JPY 270.78 billion, and operating income excluding inventory effects increased by JPY 92.6 billion YoY to JPY 391.4 billion. Income before tax rose 28.1% to JPY 258.9 billion, but net income attributable to owners of parent decreased 24.3% to JPY 129.23 billion. By segment, the Petroleum Products and Other segment achieved net sales of JPY 7,715.2 billion (4.8% decrease YoY) and operating income of JPY 118.7 billion (increase of JPY 45.3 billion), showing profit growth. The Oil and Natural Gas Exploration segment recorded net sales of JPY 16.07 billion (12.7% decrease YoY) and operating income of JPY 45.7 billion (decrease of JPY 27 billion), resulting in lower profits. The Functional Materials, Electricity, and Renewable Energy segments experienced profit increases.

Financial Position and Cash Flow Overview

Total assets increased by JPY 242.1 billion compared to the previous fiscal year-end to JPY 9,315.38 billion, and total liabilities increased by JPY 151.6 billion to JPY 5,470.4 billion. Interest-bearing liabilities decreased by JPY 34 billion to JPY 2,642.0 billion. Total equity increased by JPY 90.5 billion to JPY 3,561.1 billion, despite dividend payments, due to recording quarterly profit. The net D/E ratio improved to 0.57 times compared to the previous fiscal year-end. Cash flows from operating activities increased by JPY 393.9 billion, investing activities cash flow decreased by JPY 173.5 billion, and financing activities cash flow decreased by JPY 304.8 billion. The dividend forecast remains unchanged from the previous announcement, with a full-year forecast of JPY 34 per share.