Fiscal Year Ending March 2026 Q3 Financial Summary (Japanese GAAP) (Consolidated)

Performance Overview

In the consolidated cumulative third quarter period for the fiscal year ending March 2026, net sales were JPY 93,077 million (1.4% decrease YoY). Operating income was JPY 6,182 million (2.4% increase YoY), and ordinary income was JPY 6,933 million (6.8% increase YoY), both showing profit growth. However, quarterly net income attributable to owners of parent was JPY 6,699 million (34.0% decrease YoY). This was due to a special gain on sale of fixed assets of JPY 7,760 million recognized in the previous year’s same period, whereas the current period recorded only a special gain of JPY 2,225 million from the sale of policy-held shares. By segment, the Color & Functional Products segment performed well with net sales of JPY 51,417 million (1.6% increase YoY) and operating income of JPY 3,335 million (22.1% increase YoY). On the other hand, the Polymer & Coating Materials segment saw decreased revenue and profit with net sales of JPY 18,214 million (5.8% decrease YoY) and operating income of JPY 2,095 million (22.4% decrease YoY). The Graphic & Printing Materials segment recorded net sales of JPY 23,413 million (4.0% decrease YoY) but increased operating income to JPY 732 million (21.4% increase YoY).

Financial Position and Dividend Status

At the end of the third quarter, total assets increased by JPY 2,726 million from the previous fiscal year-end to JPY 199,510 million. Total liabilities remained almost flat at JPY 66,165 million, while net assets increased by JPY 2,846 million to JPY 133,344 million, raising the equity ratio to 65.6%. Regarding dividends, the fiscal year ending March 2026 annual dividend forecast was revised upward, setting the year-end dividend at JPY 121 (comprising a regular dividend of JPY 106 plus a special dividend of JPY 15). Additionally, a 4-for-1 stock split is scheduled effective April 1, 2026, aiming to strengthen shareholder returns.