Q3 Financial Results Presentation Materials for Fiscal Year Ending March 2026

Summary of Performance

For the third quarter of the fiscal year ending March 2026, net sales amounted to 424.8 billion yen, a 1.8% decrease year-over-year, while operating income was 32.4 billion yen, down 25.0%. EBITDA stood at 64.0 billion yen (down 12.9%), and net income attributable to owners of parent was 35.7 billion yen (down 18.9%). Net sales were supported by increased sales of inflators in the Safety business, but were affected by decreased sales of acetate tow in the Materials business. Operating income benefited from productivity improvements and cost reductions in the Safety business, but decreases were caused by inventory adjustments and increased depreciation expenses in the Materials business.

Segment Performance and Future Outlook

While multiple segments including Medical & Healthcare, Safety, and Mobility achieved revenue and profit increases, the Materials and Engineering Plastics segments experienced declines in both revenue and profits. The Materials segment was particularly impacted by delayed resolution of CO plant troubles and postponed sales timing. The progress rates against full-year forecasts were approximately on plan, with net sales at 72.9% and operating income at 69.8%. Due to a revision of the business plan for COC resin, the start-up of the new plant has been postponed to Q4 of the fiscal year ending March 2027. Shareholder returns will maintain a total return ratio of 40% or more and DOE (Dividend on Equity) of 4% or more, with treasury stock acquisitions to be implemented as planned.