Notice Regarding Earnings Guidance for the Fiscal Year Ending March 2027 and Dividend Projection

Key points of earnings outlook

This release discloses the consolidated earnings forecast and dividend projection for the fiscal year ending March 2027, with net sales of 455,000 hundred million yen, operating income of 21,000 hundred million yen, ordinary income of 27,500 hundred million yen, net income attributable to owners of the parent of 20,500 hundred million yen, and earnings per share of 139.71 yen. Interim period outlook includes net sales of 235,000 hundred million yen, operating income of 12,500 hundred million yen, ordinary interim income of 15,000 hundred million yen, interim net income attributable to owners of the parent of 10,500 hundred million yen, and interim earnings per share of 71.06 yen. Exchange assumptions are 158 yen/USD and 181 yen/EUR, with domestic naphtha price at 88,000 yen/KL. Dividends are planned at 140 yen per year (72 yen interim, 70 yen final).

Dividend policy and drivers

In line with our shareholder return policy, we target either a payout ratio of 100% or a DOE of 2.0%, whichever is higher, and this dividend projection indicates an increase compared with the prior year’s results. Despite potential impacts from mid-term raw material prices and changes in sales quantities, profit is expected to be supported by increased production and sales of Solutions products and widening spreads.