Fiscal Year Ending December 2026 Q1 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

For the first quarter of the fiscal year ending December 2026 (January 1 to March 31, 2026), consolidated net sales amounted to JPY 38,634 million (3.0% decrease YoY), operating income was JPY 3,206 million (4.7% decrease YoY), ordinary income was JPY 3,210 million (0.2% increase YoY), and quarterly net income attributable to owners of the parent was JPY 2,774 million (38.7% increase YoY). Net sales declined due to rising raw material costs and supply chain disruptions, but net income significantly increased due to gains on sale of idle real estate.

Segment Performance

The Basic Chemicals segment recorded net sales of JPY 15,697 million (12.1% decrease YoY) and operating income of JPY 1,650 million (27.7% decrease YoY). The Polymer & Oligomer segment achieved net sales of JPY 9,153 million (3.9% increase YoY) and operating income of JPY 878 million (39.1% increase YoY), posting both sales and profit growth. The Adhesive Materials segment posted net sales of JPY 3,543 million (4.5% increase YoY) and operating income of JPY 250 million (83.3% decrease YoY). The High-Performance Materials segment posted net sales of JPY 2,762 million (14.8% increase YoY) and operating income of JPY 437 million (200.7% increase YoY), achieving significant profit growth. The Resin Processing Products segment recorded net sales of JPY 6,881 million (0.9% increase YoY) and operating income of JPY 669 million (33.6% increase YoY). Other businesses reported net sales of JPY 596 million (13.8% increase YoY) and operating income of JPY 153 million (1.9% decrease YoY).

Financial Position and Dividends

Total assets amounted to JPY 284.1 billion (1.7% decrease YoY), net assets were JPY 213.975 billion (0.9% decrease YoY), and the equity ratio stood at 74.9% (up 0.6 points YoY). The dividend forecast for the full fiscal year ending December 2026 is JPY 70 per share (year-end dividend of JPY 35), unchanged from the most recent forecast (previous year: JPY 65).

Earnings Guidance

The full-year consolidated earnings forecast for the fiscal year ending December 2026 anticipates net sales of JPY 167 billion (2.9% increase YoY), operating income of JPY 14.5 billion (2.3% increase YoY), ordinary income of JPY 15.1 billion (0.2% increase YoY), and net income attributable to owners of the parent of JPY 11.5 billion (9.9% decrease YoY). For the first half cumulative period, net sales of JPY 81.5 billion (1.4% increase YoY) and operating income of JPY 7.0 billion (0.3% decrease YoY) are forecast.