Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japan GAAP] (Consolidated)

Overview of Business Results

For the cumulative third quarter period of fiscal year ending March 2026 (April 1, 2025 to December 31, 2025), amid ongoing uncertainties in the global economy, net sales amounted to 173,472 million yen (1.3% increase YoY). Meanwhile, operating income declined to 31,826 million yen (11.0% decrease YoY), ordinary income was 34,518 million yen (8.2% decrease YoY), and net income attributable to owners of parent decreased to 25,565 million yen (7.5% decrease YoY). By segment, the Functional Chemicals division posted net sales of 106,969 million yen (6.6% decrease YoY) and operating income of 20,225 million yen (17.9% decrease YoY). The Pharmaceuticals, Medical, and Healthcare division recorded net sales of 36,455 million yen (0.1% decrease YoY) and operating income of 10,686 million yen (8.8% decrease YoY). The Chemical Drugs division achieved net sales of 29,552 million yen (50.1% increase YoY) and operating income of 2,845 million yen (83.0% increase YoY).

Financial Position, Dividends, and Share Buyback

At the end of the third quarter, total assets stood at 375,022 million yen, an increase of 17,826 million yen from the previous fiscal year-end, and net assets were 283,510 million yen, up 3,960 million yen. The number of treasury shares increased to 8,408,008 shares. The annual dividend forecast for fiscal year ending March 2026 was raised to 61.00 yen (compared to 45.00 yen last fiscal year). Additionally, at the Board of Directors meeting on February 13, 2026, a resolution was passed to repurchase treasury shares (up to 1,800,000 shares, 5,000,000,000 yen, from February 16 to March 31, 2026) to improve capital efficiency and strengthen shareholder returns.