Tokyo Synthetic Chemical Industry Co., Ltd. Financial Results Briefing Materials -Q1 of FY2026-

Performance Overview

Sales for the first quarter of FY2026 reached 67.0 billion yen, an increase of 23.6% YoY. Despite sluggish demand in the smartphone sector, strong demand related to generating AI contributed to significantly higher revenue in electronics functional materials and high-purity chemicals. Operating income was 15.0 billion yen, up 53.8% YoY, driven by substantial sales growth. Both ordinary income and net income attributable to owners of parent also increased by 56.2% and 55.8%, respectively. EBITDA increased by 49.3%, indicating strengthened profitability.

Earnings Guidance and Shareholder Returns

The earnings guidance announced on February 9, 2026, remains unchanged, expecting sales of 261.0 billion yen (up 10.1% YoY) and operating income of 52.2 billion yen (up 10.2% YoY). The outlook assumes increased demand related to generating AI and the operation of new factories, with strong customer demand focusing on advanced fields. Regarding shareholder returns, the company plans to maintain a dividend payout ratio (DOE) of approximately 4.0%, with a mid-term dividend of 40 yen and an annual dividend of 80 yen, continuing a 9-term dividend increase. Capital expenditures totaled 9.178 billion yen (up 5.0% YoY), and research and development expenses were 4.357 billion yen (up 4.5% YoY), reflecting active investment.