Supplementary Explanation Material for the Fiscal Year Ending December 2025 Financial Results

Overview of Business Performance

For the fiscal year ending December 2025, consolidated results recorded net sales of JPY 39,258 million (up 17.9% YoY), operating income of JPY 9,484 million (up 23.8% YoY), and net income attributable to owners of parent of JPY 6,498 million (up 28.1% YoY). The iodine and natural gas businesses achieved increased sales and profits due to higher sales volumes and firm international market conditions. The metal compounds business experienced decreased sales due to a drop in sales prices caused by declining metal market prices, despite stable sales volumes of nickel chloride; however, operating income was secured through various improvement measures.

Earnings Guidance for 2026 and Future Outlook

For the fiscal year ending December 2026, earnings guidance forecasts net sales of JPY 38,000 million (down 3.2% YoY), operating income of JPY 8,000 million (down 15.7% YoY), and net income of JPY 5,400 million (down 16.9% YoY). Sales volumes of iodine products are expected to decline from the previous year due to reduced demand from some customers. Cost increases due to rising raw material prices, depreciation expenses, and labor costs are also expected to impact profits negatively. Mid-term strategies have been formulated in preparation for the company's 100th anniversary in 2027, focusing on sustainable development, technological innovation, and ensuring safety and reliability.