Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Business Results

For the third quarter cumulative consolidated period of the fiscal year ending March 2026, net sales were 99,843 million yen (3.0% YoY decrease), operating income was 5,641 million yen (11.5% YoY decrease), ordinary income was 5,639 million yen (13.4% YoY decrease), and net income attributable to owners of parent was 1,324 million yen (70.2% YoY decrease). The decrease in sales was due to the termination of the electronic components business, sluggish overseas sales of plastic films, and reduced apparel sales at mass merchandisers. The decline in operating income was impacted by increased fixed costs in the medical business, reduced sales volume and increased costs in the apparel business.

Segment Results

The Functional Solutions segment recorded net sales of 36,112 million yen (6.5% YoY decrease) and operating income of 5,255 million yen (1.5% YoY increase). The Medical segment posted net sales of 9,833 million yen (2.2% YoY increase) and operating income of 1,497 million yen (16.1% YoY decrease). The Apparel segment recorded net sales of 45,751 million yen (1.7% YoY decrease) and operating income of 931 million yen (29.5% YoY decrease). The Life Create segment posted net sales of 8,994 million yen (2.6% YoY increase) and operating income of 780 million yen (23.0% YoY increase).

Explanation of Financial Position

Total assets stood at 161,733 million yen, an increase of 2,056 million yen from the end of the previous consolidated fiscal year. Liabilities were 48,407 million yen, an increase of 9,712 million yen, mainly due to increased commercial paper and an increase in business structure improvement reserves. Net assets were 113,326 million yen, a decrease of 7,655 million yen, principally caused by a 6,331 million yen decrease due to dividends and a 2,061 million yen decrease due to share buybacks. The equity ratio was 68.9%.

Revision of Consolidated Earnings Forecast

The full-year consolidated earnings forecast for the fiscal year ending March 2026 has been revised. Net sales are expected at 133 billion yen (5.0% decrease from the previous forecast), operating income at 6.4 billion yen (24.7% decrease), ordinary income at 6.3 billion yen (24.1% decrease), and net income attributable to owners of parent at 1.6 billion yen (42.9% decrease). The main factors for the decline include stagnant consumption and price declines in overseas plastic film markets, delays in regulatory approval of new products in the medical business, strengthened regulations on sales in China, consumer restraint and weak seasonal products in the apparel business. The dividend forecast remains unchanged at 216 yen per share.