Financial Summary for Q3 Fiscal Year Ending March 2026

Overview of Performance

Consolidated net sales for Q3 of the fiscal year ending March 2026 reached 1,392.951 billion yen, a 0.7% increase year-over-year. However, operating income declined 53.2% year-over-year to 26.668 billion yen, and ordinary income fell by 63.9% to 22.739 billion yen. Net income attributable to owners of the parent for the quarter was 30.999 billion yen, down 38.5% year-over-year. Sales increased due to the acquisition effect of Walki Ltd., among others, but profits were pressured by decreases in domestic and overseas sales volume, deteriorating pulp market conditions, and increased interest payments due to rising interest rates. Quarterly net income per share was 33.81 yen.

Segment Performance and Financial Position

The reportable segments are: Living and Industrial Materials, Functional Materials, Resource and Environmental Business, and Printing and Information Media. Living and Industrial Materials posted net sales of 706.6 billion yen (up 2.8% year-over-year) and operating income of 13.4 billion yen (down 9.3%). Functional Materials reported net sales of 176.5 billion yen (down 0.4%) and operating income of 8.1 billion yen (down 26.5%). Resource and Environmental Business had net sales of 290.4 billion yen (down 0.9%) and operating income of 4.8 billion yen (down 80.7%). Printing and Information Media recorded net sales of 204.2 billion yen (down 6.9%) and operating income of 6.9 billion yen (down 35.5%). Total assets amounted to 2.6304 trillion yen, down from the previous fiscal year-end, net assets decreased to 1.0819 trillion yen, and the equity ratio stood at 39.8%. The company has continued share buyback activities, increasing the number of treasury shares to 114.17 million shares.