Supplementary Explanation Materials for the Q1 Financial Results for the Fiscal Year Ending November 2026

Overview of Performance

In Q1 of the fiscal year ending November 2026, net sales reached 16,243 million yen (+5.8% YoY), operating income was 2,286 million yen (+20.5% YoY), ordinary income was 2,436 million yen (+19.6% YoY), and net income attributable to owners of the parent was 1,734 million yen (+22.6% YoY), achieving revenue and profit growth. The strong sales of agrochemical products both domestically and internationally were the main drivers of this revenue increase. Although the fine chemicals segment saw some decline in sales, the textile materials segment experienced growth.

Segment Performance

The agrochemical segment achieved net sales of 12,359 million yen (+11.3% YoY) and operating income of 1,669 million yen (+57.5% YoY), showing significant revenue and profit growth. Domestically, advance sales of rice field agents remained solid, while overseas sales expanded in India and Brazil. The fine chemicals segment recorded net sales of 3,402 million yen (-9.9% YoY) and operating income of 601 million yen (-26.3% YoY), declining due to demand fluctuations in the pharmaceutical agrochemical and electronic materials sectors and inventory adjustments. The textile materials segment recorded net sales of 479 million yen (+2.8% YoY) and operating income of 17 million yen (-23.6% YoY).

Future Outlook and Long-term Management Plan

For fiscal 2026, the company forecasts net sales of 52,000 million yen (+5.9% YoY), operating income of 5,200 million yen (+5.8% YoY), ordinary income of 6,100 million yen (+0.3% YoY), and net income of 4,460 million yen (+0.2% YoY). Dividends are expected at 54 yen annually, an increase of 8 yen compared to the prior period. The long-term management plan targets net sales of 55 billion yen and ordinary income of 6.8 billion yen plus alpha by fiscal 2029. Given the steady progress in the agrochemical and fine chemicals businesses, the company has revised its targets upward.