Fiscal Year Ending March 2026 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Results

Consolidated net sales for the fiscal year ending March 2026 amounted to 33,796 million yen (5.2% decrease YoY). Operating income was 5,341 million yen (9.1% increase YoY), ordinary income was 5,570 million yen (6.9% increase YoY), and net income attributable to owners of parent was 4,428 million yen (14.4% increase YoY). The sales decline was mainly due to the withdrawal of a trading division from our trading subsidiary in the Functional Products segment, while increases in contract manufacturing of pharmaceutical intermediates in the Healthcare segment and profitability improvements in the Fine Chemicals segment supported profit growth. By segment, Functional Products net sales were 26,351 million yen (7.4% decrease), but operating income improved to 4,688 million yen (8.7% increase), reflecting better profit margins. Environmental Hygiene Products also recorded increased net sales of 7,212 million yen (3.1% increase) and operating income of 572 million yen (10.2% increase), achieving both higher sales and profits.

Financial Position and Future Outlook

Total assets increased by 5,624 million yen year on year to 65,421 million yen, and net assets rose by 3,321 million yen to 52,390 million yen, resulting in a slightly decreased equity ratio of 78.5%. Cash flow from operating activities generated income of 6,814 million yen, investing activities resulted in expenditures of 2,227 million yen, and financing activities had outflows of 4,001 million yen. The annual dividend is planned at 98 yen per share (payout ratio 48.4%), with an anticipated increase to 104 yen next fiscal year. For the fiscal year ending March 2027, net sales are forecasted at 37.4 billion yen (10.7% increase), operating income at 5.7 billion yen (6.7% increase), and net income attributable to owners of parent at 5.2 billion yen (17.4% increase), aiming for expanded profitability through selective focus.