Fiscal Year Ending March 2026, 3rd Quarter Earnings Presentation

Overview of Business Performance

Cumulative net sales for the 3rd quarter of the fiscal year ending March 2026 were 26,963 million yen (+1.2% Year-over-Year), and operating income was 3,577 million yen (+7.4% YoY). Profitability improved in the semiconductor and general products segments due to price pass-through in response to raw material cost increases. Although sales decreased in the purchased products segment, increased shipments in the electronic materials segment contributed to higher revenue and profits. On the other hand, net income attributable to owners of parent for the quarter was 2,410 million yen, down 11.9% from the same period last year. Capital expenditures increased significantly to 3,106 million yen, up 44.6% YoY, and research and development expenses are also showing an upward trend.

Full-Year Outlook and Shareholder Returns

There is no change to the full-year earnings guidance announced on May 9, 2025. Although the market price of anhydrous hydrogen fluoride, a key raw material, in the 4th quarter is expected to exceed initial assumptions, concerns remain over profit pressure due to the progressing yen depreciation. Additionally, the earnings forecast is unchanged due to possible delays in construction progress at the delivery site for concentrated boron in the energy segment. Regarding shareholder returns, the policy aims for a total return ratio of over 100% cumulatively over the three fiscal years from March 2026 to March 2028, with an annual dividend target floor of 170 yen per share.