Tokuyama Corporation (4043) Financial Summary for the Third Quarter of Fiscal Year Ending March 2026

Performance Overview

For the cumulative third quarter period of the fiscal year ending March 2026, consolidated net sales were 251.524 billion yen (down 0.7% YoY). The increase in sales was driven by the addition of the Tokuyama Life Science Group to the consolidation and increased sales of semiconductor-related products, while sales declined due to lower overseas market prices for vinyl chloride products. Operating income rose to 26.730 billion yen (up 26.9% YoY), reflecting improvements in manufacturing costs and strong sales of semiconductor-related products. Net income attributable to owners of parent for the quarter was 18.870 billion yen (up 11.5% YoY).

Segment Performance

The Chemicals segment recorded net sales of 79.180 billion yen (down 7.9% YoY) and operating income of 7.818 billion yen (down 1.8% YoY), both declining. The Cement segment posted net sales of 50.272 billion yen (up 1.3% YoY) and operating income of 7.247 billion yen (up 25.8% YoY), both increasing. The Electronic Advanced Materials segment achieved net sales of 63.443 billion yen (up 2.2% YoY) and operating income of 10.389 billion yen (up 94.8% YoY), significantly increasing profits. The Life Science segment reported net sales of 33.630 billion yen (up 10.2% YoY) and operating income of 5.706 billion yen (down 3.3% YoY), showing higher sales but lower profits. The Environmental Business segment posted net sales of 4.219 billion yen (up 21.3% YoY) and operating income of 430 million yen (previously operating loss of 36 million yen YoY), returning to profitability.

Financial Position and Liquidity

At the end of the fiscal year ending December 2025, total assets amounted to 556.339 billion yen (up 16.8% from the previous fiscal year-end), liabilities were 264.389 billion yen (up 30.7%), and net assets were 291.950 billion yen (up 6.6%). The increase in liabilities was due to higher long-term borrowings and commercial paper. Cash and cash equivalents stood at 48.597 billion yen, ensuring sufficient liquidity. Capital expenditures planned amount to 35.632 billion yen, which will primarily be financed through internal funds and borrowings.

Outline of Business Combination

On October 1, 2025, JSR-01 Corporation (currently Tokuyama Life Science Corporation) was made a subsidiary. The acquisition cost was 80.637 billion yen, acquiring the in vitro diagnostics pharmaceutical business and materials business to accelerate growth in the health sector. Goodwill of 60.052 billion yen was recorded, with amortization planned evenly over 20 years. This business combination significantly increased assets in the Life Science segment.