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

Performance Overview

For the cumulative consolidated period of the third quarter of the fiscal year ending March 2026, net sales were 80,679 million yen (down 2.9% YoY), operating income was 4,302 million yen (down 39.5% YoY), ordinary income was 6,223 million yen (down 26.3% YoY), and net income attributable to owners of parent was 3,626 million yen (down 28.6% YoY). The main factors for the profit decline were yen appreciation, soaring raw material costs (especially the price increase of flame retardants due to China's rare metal regulations), and the economic slowdown in China. By segment, net sales in the Industrial Products segment were 56,296 million yen (down 0.5% YoY) with a segment loss of 162 million yen; the Household Products segment recorded net sales of 24,197 million yen (down 8.0% YoY) and a segment profit of 5,872 million yen.

Financial Condition and Outlook

Total assets stood at 158,540 million yen, an increase of 12,406 million yen compared to the previous fiscal year-end, and net assets increased by 9,021 million yen to 103,486 million yen. The equity ratio improved to 65.2% from the previous fiscal year-end. The rise in fixed assets was due to increases in tangible fixed assets and investment securities. There are no changes to the dividend forecast or the full-year earnings guidance, which anticipate net sales of 109,000 million yen (down 0.1% YoY), operating income of 5,700 million yen (down 34.5% YoY), and net income attributable to owners of parent of 4,300 million yen (down 35.6% YoY).