Fiscal Year ending March 2026 Q3 Financial Summary [Japan GAAP] (Consolidated)

Overview of Business Performance

For the cumulative consolidated period of Q3 ending March 2026, net sales were 724,069 million yen (0.8% YoY increase), gross profit was 138,896 million yen (5.9% YoY increase), operating income was 33,205 million yen (7.1% YoY increase), ordinary income was 33,600 million yen (9.4% YoY increase), and net income attributable to owners of parent for the quarter was 24,976 million yen (15.0% YoY increase), showing a profitable growth trend. Although the yen appreciated, improved profitability of manufacturing subsidiaries and reduced losses from business withdrawals contributed positively.

Segment Performance Overview

The Functional Materials segment recorded net sales of 115,373 million yen (1.1% YoY decrease) and operating income of 6,759 million yen (9.5% YoY decrease), affected by reduced demand for paint raw materials. Processing Materials posted net sales of 154,249 million yen (4.2% YoY decrease) and operating income of 5,475 million yen (0.5% YoY increase), with a decrease in quantity but improved profit margins. The Electronics & Energy segment showed strong performance with net sales of 128,959 million yen (6.3% YoY increase) and operating income of 11,338 million yen (28.0% YoY increase). The Mobility segment saw net sales of 97,293 million yen (3.1% YoY decrease) and operating income of 2,735 million yen (21.7% YoY decrease), resulting in a decline in profit. The Lifestyle segment achieved net sales of 228,130 million yen (4.4% YoY increase) and operating income of 6,980 million yen (124.1% YoY increase), with a significant profit rise.

Financial Position and Dividends

Total assets were 860,462 million yen (6.5% YoY increase), net assets were 416,339 million yen (2.4% YoY increase), and equity ratio was 47.4% (2.0 points YoY decrease). The annual dividend forecast for the fiscal year ending March 2026 is set to increase to 100 yen from 90 yen in the previous year.

Outlook

The consolidated full-year forecast for FY ending March 2026 anticipates net sales of 964,000 million yen (2.0% YoY increase), operating income of 40,700 million yen (4.1% YoY increase), and net income attributable to owners of parent of 31,500 million yen (23.4% YoY increase), expecting both revenue and profit growth. There has been no revision to the latest earnings forecast.