Supplementary Financial Explanation Materials (1st Quarter of Fiscal Year Ending October 2026)

1st Quarter Results of Fiscal Year Ending October 2026

Net sales for the 1st quarter of the fiscal year ending October 2026 were 46.7 billion yen (up 3.3 billion yen YoY, +8%), operating income was 5.0 billion yen (up 1.0 billion yen, +25%), and ordinary income was 6.2 billion yen (up 1.2 billion yen, +23%). Quarterly net income attributable to owners of the parent was 3.9 billion yen, down 0.1 billion yen YoY (▲2%). Strong performances in the pesticides and agricultural related business and the chemical products business boosted sales and profits, but quarterly net income declined due to the tax effect recorded on retained earnings of affiliates accounted for by the equity method.

Segment Performance and Earnings Guidance

Net sales for the pesticides and agricultural related business were 37.8 billion yen (YoY +9%), and operating income was 4.6 billion yen (+28%), showing strong results. The chemical products business also grew, with net sales of 6.7 billion yen (+12%) and operating income of 700 million yen (+21%). Conversely, the other business saw declines, with net sales of 2.3 billion yen (▲20%) and operating income of 200 million yen (▲25%). The full-year earnings forecast for FY2026 projects net sales of 162.0 billion yen (▲5% YoY), operating income of 7.2 billion yen (▲32%), ordinary income of 10.9 billion yen (▲18%), and net income attributable to owners of the parent of 6.4 billion yen (+46%). The dividend is planned at 24 yen annually with a payout ratio of 45.2%.