Fiscal Year Ending March 2027 – Second Quarter Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

In the second quarter (interim) of the fiscal year ending March 2027, TODA KOGYO CORP.'s consolidated net sales were 15,371 million yen, up 7.4% year-over-year. Operating income was 864 million yen, up 44.1% year-over-year; ordinary income was 747 million yen; and interim net income attributable to owners of parent was 1,889 million yen, maintaining profitability. By segment, electronic materials performed well, supported by increased demand for dielectric materials and steady demand for magnetic materials. Supplementary earnings materials will be prepared and an earnings briefing will be held; a revision to the full-year earnings forecast has also been announced.

Segment Trends and Financial Position

Functional pigments showed steady sales due to increased demand for recording materials and rising demand for LTO, with segment profit also increasing. In electronic materials, dielectric materials expanded driven by demand from AI data centers, and rare-earth bonded magnetic materials also remained strong. Total assets were 48,359 million yen and total equity was 12,894 million yen, improving the equity ratio to 25.3%. Increases in cash and deposits and accounts receivable contributed to the asset growth.