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

Performance Overview

For the fiscal year ending March 2026, consolidated net sales totaled JPY 2,573.9 billion (0.5% YoY increase), operating income was JPY 635.2 billion (14.4% YoY decrease), ordinary income was JPY 708.2 billion (13.7% YoY decrease), and net income attributable to owners of parent was JPY 474.4 billion (11.2% YoY decrease). While net sales showed a slight increase, profits declined. The operating margin decreased from 29.0% in the previous year to 24.7%. By segment, the Electronic Materials business performed well with net sales of JPY 1,015.7 billion (9% YoY increase) and operating income of JPY 344.5 billion (6% YoY increase). In contrast, the Life & Environment Materials business saw a decline with net sales of JPY 981.3 billion (6% YoY decrease) and operating income of JPY 164.8 billion (43% YoY decrease). The Functional Materials business recorded net sales of JPY 440.8 billion (2% YoY decrease) and operating income of JPY 100.9 billion (1% YoY increase).

Financial Position and Dividends

Total assets increased to JPY 5,661.9 billion compared to the previous fiscal year-end, while net assets decreased to JPY 4,643.3 billion, causing the equity ratio to decline to 78.7%. Cash flow from operating activities was JPY 712.6 billion (decreased from prior year), cash flow used in investing activities was an outflow of JPY 544.8 billion, and cash flow by financing activities was an outflow of JPY 504.8 billion. Dividends are planned at JPY 106 annually, maintaining the same level as the prior fiscal year.

Outlook

Regarding earnings guidance for the fiscal year ending March 2027, uncertainties arising from the global situation, supply constraints in energy and basic materials, and price fluctuations make reasonable forecasts difficult at this time; thus, the forecast is currently undecided. Medium to long-term, the company plans to pursue growth by actively developing products that meet customer needs and making investments accordingly.