Financial Results Explanation Material for Fiscal Year Ending March 2026

Overview of Financial Results for Fiscal Year Ending March 2026

Net sales decreased by 1.2% YoY to ¥579.6 billion. Despite an increase in sales of inflators for automotive airbags in the Safety segment, sales declines in the Material segment's acetate tow and inventory adjustments impacted overall performance. Operating income fell 31.0% to ¥42.1 billion, and net income attributable to owners of parent plummeted 79.4% to ¥10.2 billion. The primary reason for the profit decline was a ¥32.4 billion impairment loss recognized at the second COC plant under construction in Germany.

2027 Fiscal Year Outlook and Business Strategy

For the fiscal year ending March 2027, consolidated sales are expected to reach ¥595.0 billion (+2.7%), operating income to ¥42.5 billion (+1.0%), and net income attributable to owners of parent to ¥32.0 billion (+214.3%). Growth is anticipated from increased sales of engineering plastics and inflators for automotive airbags, along with the resolution of inventory adjustments in the Material segment. The company has also decided to cancel 10.8 million shares through share buyback, with the return policy to be announced sequentially in its medium-term strategic plan.