First Quarter Financial Results for the FY2027 (Japanese GAAP)

Overview of Results

In the first quarter of the consolidated cumulative period, revenue substantially increased due to the inclusion of the newly consolidated Moro-Roku ReNova Group. The resins processing products and chemical segments achieved higher revenue and profit thanks to stable trends in North America and Japan and effects from restructuring. Meanwhile, the impact of weakened demand in the Chinese market and higher raw material costs was felt, but overall revenue reached 48,191 million yen, operating income 2,297 million yen, ordinary income 2,297 million yen, and net income attributable to owners of the parent 3,498 million yen, significantly surpassing the previous year's first quarter.

Outlook / Financial Position

As of the end of the first quarter, total assets stood at 174,899 million yen, net assets 83,171 million yen, and equity ratio 40.2%. The expansion of the ReNova Group into the consolidated scope has improved the financial position. However, there are ongoing challenges in the financial structure, such as increased long-term borrowings, and a plan to revisit the syndicate loan terms. The FY2027 consolidated earnings forecast has been revised upward, with potential impacts from foreign exchange movements and raw material price fluctuations on future performance.