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

Overview of Results

For the third quarter of the fiscal year ending March 2026, consolidated net sales were ¥61,370 million (3.5% decrease YoY), operating income was ¥5,367 million (14.7% increase YoY), and ordinary income was ¥5,479 million (10.2% increase YoY). Net income attributable to owners of parent stood at ¥2,900 million (22.2% decrease YoY) due to impairment losses on cosmetic materials. By segment, growth businesses such as electronic materials and organic chemicals saw increases in both sales and profits, whereas cosmetic materials posted a 37.8% decline in sales and an operating loss of ¥216 million. Stable businesses like sanitary materials recorded decreases in sales and profits, while contract manufacturing showed increases in both. Efficiency review businesses including titanium oxide & zinc products and resin additives experienced declining sales and profits.

Financial Position and Future Outlook

Total assets amounted to ¥117,395 million, down 4.8% from the previous fiscal year-end, with total liabilities also decreasing to ¥39,287 million. Net assets were ¥78,108 million, a decrease of ¥1,277 million, but the equity ratio rose to 65.6%. The number of shares issued remained unchanged at 17,000,000, while treasury shares increased. The full-year earnings guidance for the fiscal year ending March 2026 forecasts net sales of ¥86,000 million (1.9% increase YoY), operating income of ¥6,500 million (6.7% increase YoY), and net income attributable to owners of parent of ¥3,000 million (40.2% decrease YoY). The dividend forecast is an increase to ¥145.00 per share.