Q1 FY2026 Financial Results Supplementary Explanation Material

Business Performance Overview

For the first quarter of FY2026, consolidated earnings totaled 68.1 billion yen in net sales (up 6.3% YoY), 4.17 billion yen in operating profit (up 8.2% YoY), 4.796 billion yen in ordinary income (up 13.3% YoY), and 3.314 billion yen in net income attributable to the parent company's shareholders (up 7.7% YoY), achieving both growth in sales and profits. The operating profit margin was 6.1%, and the ordinary income margin was 7.0%, both exceeding the same period last year. Segment-wise, sales of printing inks (Americas), printing inks (Europe), and functional materials expanded, leading to increased operating profits. Meanwhile, sales declined in printing inks (Japan) and other segments.

Full-Year Earnings Forecast and Future Outlook

For FY2026, the full-year consolidated earnings forecast is net sales of 276.0 billion yen (up 7.1% YoY), operating profit of 17.0 billion yen (up 11.6% YoY), ordinary income of 17.8 billion yen (up 15.8% YoY), and net income attributable to owners of the parent of 11.8 billion yen (up 1.6% YoY). The forecast assumes an exchange rate of 150 yen to 1 dollar. Based on the strong performance in the first quarter, there will be no change to the full-year outlook.