Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) FASF MEMBERSHIP August 6 , 2026 Sumitomo Seika Chemicals Company , Limited . Tokyo Stock Exchange https://www.sumitomoseika.co.jp/en/ Company name : Listing : Securities code : URL : 4008 Representative : Inquiries : Telephone : ODA Yoshiaki , Representative Director & President ABO Koichi , General Manager , Sustainability Promotion Office Public Relations Group + 81-6-6220-8511 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : None None ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of the parent Three months ended Jun . 30 , 2026 Millions of yen 40,397 % Millions of yen 13.6 3,452 47.5 % Millions of yen 4,315 168.5 % Millions of yen 3,263 % 212.2 Jun . 30 , 2025 35,569 ( 3.6 ) 2,340 ( 19.6 ) 1,607 ( 54.8 ) 1,045 ( 58.5 ) Note : Comprehensive income For the three months ended Jun . 30 , 2026 : For the three months ended Jun . 30 , 2025 : ¥ 3,665 million ¥ 1,260 million [ 190.8 % ] [ ( 75.3 ) % ] Three months ended Jun . 30 , 2026 Basic earnings per share Diluted earnings per share Yen Yen 50.53 Jun . 30 , 2025 15.95 Note : As of April 1 , 2026 , Sumitomo Seika Chemicals Company , Limited ( " the Company " ) conducted a stock split at the ratio of 5 shares to 1 share of common stock . " Basic earnings per share " is calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year . ( 2 ) Consolidated financial position As of Jun . 30 , 2026 Mar. 31 , 2026 Reference : Equity Total assets Net assets Equity - to - asset ratio Millions of yen Millions of yen % 160,224 105,386 65.8 152,732 103,621 67.8 As of Jun . 30 , 2026 : As of Mar. 31 , 2026 : ¥ 105,386 million ¥ 103,621 million
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Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended Mar. 31, 2026 － 100.00 － 120.00 220.00 Fiscal year ending Mar. 31, 2027 － Fiscal year ending Mar. 31, 2027 (Forecast) 35.00 － 35.00 70.00 (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of the parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % yen Fiscal year ending Mar. 31, 2027 165,000 11.2 11,000 (24.0) 11,200 (26.6) 8,000 4.2 124.46 2. Cash dividends Note: 1. Revisions to the forecast of cash dividends most recently announced: Yes 2. For details regarding the forecast of dividends, please refer to the “Notice Regarding Change in Dividend Policy (Introduction of DOE) and Revision to Dividend Forecasts for FY2026 ” announced today. 3. As of April 1, 2026, the Company conducted a stock split at the ratio of 5 shares to 1 share of common stock. The amounts shown for the fiscal year ended March 31, 2026 are the actual amount of dividends paid before the stock split. On the assumption that the stock split had been conducted at the beginning of previous fiscal year, the annual dividends per share for fiscal year ended Mar. 31, 2026 would be 44 yen (second quarter-end of 20 yen and fiscal year-end of 24 yen). 3. Consolidated financial forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) Note: 1. Revisions to the financial forecasts most recently announced: Yes 2. For details regarding the forecast of consolidated financial forecasts, please refer to the “ Announcement of Full-Year Consolidated Financial Forecasts ” announced today. 3.The Company resolved to purchase and cancel treasury shares at the meeting of the Board of Directors held on 12 May, 2026.“Basic earnings per share” takes into account the impact of acquisition and cancellation of treasury shares.
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(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (i) Total number of issued shares at the end of the period (including treasury shares) As of Jun. 30, 2026 64,683,785 shares As of Mar. 31, 2026 69,958,980 shares (ii) Number of treasury shares at the end of the period As of Jun. 30, 2026 270,860 shares As of Mar. 31, 2026 5,275,195 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended Jun. 30, 2026 64,586,395 shares Three months ended Jun. 30, 2025 65,532,875 shares * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Application of specific accounting methods for the preparation of quarterly consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement (4) Number of issued shares (common shares) Note: As of April 1, 2026, the Company conducted a stock split at the ratio of 5 shares to 1 share of common stock. “Total number of issued shares at the end of the period (including treasury shares)”, “Number of treasury shares at the end of the period”, and “Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)” are calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters The forward-looking statements such as the forecasts included in this document are based on information available at the time and estimates based on reasonable assumptions, and do not represent a commitment from the Sumitomo Seika Group that they will be achieved. The actual financial results figures may differ from the forecasts due to various factors. For details of assumptions for financial forecasts, please refer to “1. Qualitative Information on Financial Results (3) Consolidated Forecasts and Other Forward-Looking Information ” on page 3 of the Attachment.
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1. Qualitative Information on Financial Results ……………………………………………………………………………………… 2 (1) Operating Results ……………………………………………………………………………………………………………… 2 (2) Financial Position ……………………………………………………………………………………………………………… 2 (3) Consolidated Forecasts and Other Forward-Looking Information …………………………………………………………… 3 (4) Research and Development Activities ………………………………………………………………………………………… 3 2. Quarterly Consolidated Financial Statements and Significant Notes ……………………………………………………………… 4 (1) Consolidated Balance Sheets ………………………………………………………………………………………………… 4 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ……………………………… 6 Consolidated Statements of Income …………………………………………………………………………………………… 6 Consolidated Statements of Comprehensive Income ………………………………………………………………………… 7 (3) Notes to Quarterly Consolidated Financial Statements ……………………………………………………………………… 8 Notes on Going Concern Assumptions ……………………………………………………………………………………… 8 Notes on Significant Changes in the Amount of Shareholders’ Equity ……………………………………………………… 8 Application of Specific Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements ………… 8 Notes on Quarterly Consolidated Statement of Income ……………………………………………………………………… 8 Notes on Segment Information, etc. …………………………………………………………………………………………… 9 Notes on Quarterly Consolidated Statement of Cash Flows ………………………………………………………………… 10 Revenue Recognition ………………………………………………………………………………………………………… 11 3. Summary of Consolidated Financial Results for the Three Months Ended June 30, 2026 ……………………………………… 13 ○Attached Material Index - 1 -
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1. Qualitative Information on Financial Results (1) Operating Results Consolidated Financial Results for the Three Months Ended June 30, 2026 Sumitomo Seika Chemicals Co., Ltd. (“the Company”) has announced its consolidated financial results for the three months ended June 30, 2026 as follows: Net sales were 40,397 million yen, an increase of 13.6% year-on-year. Operating profit was 3,452 million yen, an increase of 47.5% year-on-year. Ordinary profit was 4,315 million yen, an increase of 168.5% year-on-year. Profit attributable to owners of the parent was 3,263 million yen, an increase of 212.2% year-on-year. Basic earnings per share were 50.53 yen and the return on equity (ROE) was 3.1%. The financial results by business segment for the period were as stated below: Super Absorbent Polymers Net sales were 31,868 million yen, an increase of 14.1% year-on-year, and operating profit was 2,702 million yen, an increase of 26.6% year-on-year. Net sales increased from the same period in the previous fiscal year due mainly to the continued weakening of the yen and the adjustment of selling prices to reflect the sharp rise in prices of raw materials and fuels. Operating profit also increased year on year because of, among other factors, the weaker yen and the impact of inventory valuation resulting from fluctuations in raw material and fuel prices. Functional Materials Net sales were 8,468 million yen, an increase of 11.9% year-on-year, and operating profit was 743 million yen, an increase of 296.3% year-on-year. Both net sales and operating profit increased from the same period in the previous fiscal year due mainly to higher sales of water-soluble polymers and Pressure Swing Adsorption (PSA) hydrogen generators. Others In addition to the above businesses, the Company is engaged in contract manufacturing service and other businesses. In this segment, net sales were 59 million yen, a decrease of 15.9% year-on-year, with operating profit of 6 million yen. (2) Financial Position Total assets as of June 30, 2026 increased by 7,492 million yen from the end of the previous fiscal year to 160,224 million yen. Total current assets increased by 5,061 million yen from the end of the previous fiscal year to 87,424 million yen. This was mainly due to an increase in merchandise and finished goods, despite a decrease in cash and deposits. Total non-current assets increased by 2,430 million yen from the end of the previous fiscal year to 72,800 million yen. This was mainly due to investment in the construction of a new research building in Japan. Total liabilities increased by 5,726 million yen from the end of the previous fiscal year to 54,838 million yen. This was mainly due to an increase in short-term borrowings, despite a decrease in accounts payable. Net assets increased by 1,765 million yen from the end of the previous fiscal year to 105,386 million yen. As a result, the equity- to-asset ratio declined by 2.0 percentage points from the end of the previous fiscal year to 65.8%. - 2 -
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Fiscal year ended March 31, 2026 (Result) Fiscal year ending March 31, 2027 (Forecast) Year-on-year changes Net sales Millions of yen 148,354 165,000 16,646 Operating profit Millions of yen 14,464 11,000 (3,464) Ordinary profit Millions of yen 15,249 11,200 (4,049) Profit attributable to owners of the parent Millions of yen 7,677 8,000 323 Basic earnings per share Yen 117.48 124.46 6.98 Return on equity (ROE) % 7.8 7.6 (0.2) ppts Return on invested capital (ROIC) % 8.1 6.1 (2.0) ppts (3) Consolidated Forecasts and Other Forward-Looking Information The full-year consolidated financial forecasts for the fiscal year ending March 31, 2027 were undetermined because the impact of the deteriorating situation in the Middle East made it difficult to reasonably calculate estimates. In light of the latest circumstances, the Company has announced the forecasts as follows. Net sales are expected to increase from the previous fiscal year due mainly to the adjustment of selling prices to reflect the rise in raw material and fuel prices caused by the worsening situation in the Middle East, as well as to the continued weakening of the yen. Operating profit and ordinary profit are expected to decrease year on year due mainly to an increase in fixed costs resulting from the expansion of the manufacturing facilities for super absorbent polymers at the Singapore site of a consolidated subsidiary. Profit attributable to owners of the parent is expected to increase from the previous fiscal year, as extraordinary losses are anticipated to decrease. Actual financial results may differ from the forecasts due to future developments in the Middle East or other factors. If any material matters requiring disclosure arise, the Company will disclose them without delay. The above forecasts are based on the following assumptions: For the second quarter and the rest of the fiscal year ending March 31, 2027, the average exchange rates will be 157.00 JPY/USD and 23.00 JPY/CNY, and the average naphtha price will be 76,000 JPY/KL; and for the full fiscal year, the average exchange rates will be 157.00 JPY/USD and 23.00 JPY/CNY, and the average naphtha price will be 86,700 JPY/KL. (4) Research and Development Activities Expenses related to research and development activities for the three months ended June 30, 2026 were 902 million yen. - 3 -
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 18,217 15,155 Notes and accounts receivable - trade, and contract assets 32,998 32,573 Merchandise and finished goods 20,702 28,975 Work in process 588 598 Raw materials and supplies 3,900 4,544 Other 5,974 5,596 Allowance for doubtful accounts (19) (19) Total current assets 82,362 87,424 Non-current assets Property, plant and equipment Buildings and structures, net 14,513 23,982 Machinery, equipment and vehicles, net 7,943 25,296 Construction in progress 28,357 2,621 Other, net 7,840 9,511 Total property, plant and equipment 58,655 61,412 Intangible assets 4,200 4,410 Investments and other assets Retirement benefit asset 5,080 5,026 Other 2,433 1,951 Total investments and other assets 7,513 6,978 Total non-current assets 70,370 72,800 Total assets 152,732 160,224 Liabilities Current liabilities Notes and accounts payable - trade 16,308 17,339 Short-term borrowings 2,978 9,740 Accounts payable - other 6,538 4,842 Income taxes payable 2,860 2,074 Provision for bonuses 1,069 513 Other 3,051 3,102 Total current liabilities 32,807 37,613 Non-current liabilities Long-term borrowings 14,500 14,500 Retirement benefit liability 728 753 Other 1,075 1,970 Total non-current liabilities 16,304 17,224 Total liabilities 49,111 54,838 2. Quarterly Consolidated Financial Statements and Significant Notes (1) Consolidated Balance Sheets - 4 -
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 Net assets Shareholders’ equity Share capital 9,742 9,742 Capital surplus 7,596 7,596 Retained earnings 74,740 72,248 Treasury shares (4,203) (347) Total shareholders’ equity 87,876 89,240 Accumulated other comprehensive income Valuation difference on available-for-sale securities 388 87 Foreign currency translation adjustment 12,303 13,104 Remeasurements of defined benefit plans 3,052 2,955 Total accumulated other comprehensive income 15,744 16,146 Total net assets 103,621 105,386 Total liabilities and net assets 152,732 160,224 - 5 -
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(Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 35,569 40,397 Cost of sales 28,100 31,212 Gross profit 7,468 9,184 Selling, general and administrative expenses Freight-out 1,509 1,707 Employees’ salaries and bonuses 860 845 Provision for bonuses 148 180 Retirement benefit expenses 29 (14) Research and development expenses 712 889 Other 1,868 2,123 Total selling, general and administrative expenses 5,128 5,731 Operating profit 2,340 3,452 Non-operating income Interest income 95 74 Dividend income 12 9 Foreign exchange gains － 372 Compensation income － 288 Subsidy income 122 188 Other 18 16 Total non-operating income 248 949 Non-operating expenses Interest expenses 65 74 Foreign exchange losses 880 － Other 35 11 Total non-operating expenses 981 86 Ordinary profit 1,607 4,315 Extraordinary income Gain on sale of investment securities － 549 Gain on sale of non-current assets － 0 Insurance claim income 3 － Total extraordinary income 3 550 Extraordinary losses Impairment losses 192 26 Loss on retirement of non-current assets 11 25 Total extraordinary losses 204 51 Profit before income taxes 1,406 4,813 Income taxes 361 1,550 Profit 1,045 3,263 Profit attributable to owners of the parent 1,045 3,263 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income - 6 -
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(Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 1,045 3,263 Other comprehensive income Valuation difference on available-for-sale securities 109 (301) Deferred gains or losses on hedges (46) － Foreign currency translation adjustment 74 800 Remeasurements of defined benefit plans, net of tax 77 (96) Total other comprehensive income 214 401 Comprehensive income 1,260 3,665 Comprehensive income attributable to Owners of the parent 1,260 3,665 Consolidated Statements of Comprehensive Income - 7 -
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(3) Notes to Quarterly Consolidated Financial Statements Notes on Going Concern Assumptions Not applicable Notes on Significant Changes in the Amount of Shareholders’ Equity (Acquisition of Treasury Shares) The Company purchased 270,800 shares of treasury shares during the three months ended June 30, 2026 based on a resolution of the Board of Directors meeting held on May 12, 2026. As a result, treasury shares were increased by 347 million in the three months ended June 30, 2026. (Cancellation of Treasury Shares) The Company cancelled 5,275,195 shares of treasury shares as of May 26, 2026 based on a resolution of the Board of Directors meeting held on May 12, 2026. As a result, retained earnings and treasury shares were decreased by 4,203 million yen respectively in the three months ended June 30, 2026. As a result, retained earnings amounted to 72,248 million yen, treasury shares to 347 million yen respectively as of June 30, 2026. Application of Specific Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements (Deferment of cost variance) Cost variance caused by seasonal changes in operation rates, etc. is deferred because it is expected to be eliminated for the most part by the end of the cost accounting period. (Calculation of tax expenses) Income tax expenses were calculated by multiplying profit before income taxes by an effective tax rate that was reasonably estimated after application of tax effect accounting to the profit before income taxes for the fiscal year. Furthermore, income taxes - deferred are included in income taxes. Notes on Quarterly Consolidated Statement of Income (Impairment losses) The Company recognized impairment losses related to manufacturing facilities, etc. for Powdered Polyethylene and Gas Products at its Chiba Works. - 8 -
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(Millions of yen) Reportable Segment Others (Note 1) Total Adjustment (Note 2) Amount on Quarterly Consolidated Statements of Income (Note 3) Super Absorbent Polymers Functional Materials Total Net sales Sales to external customers 27,931 7,567 35,498 70 35,569 － 35,569 Intersegment sales/transfers － 12 12 197 210 (210) － Total 27,931 7,580 35,511 267 35,779 (210) 35,569 Segment profit (loss) 2,133 187 2,321 18 2,340 0 2,340 (Millions of yen) Reportable Segment Others (Note 1) Total Adjustment (Note 2) Amount on Quarterly Consolidated Statements of Income (Note 3) Super Absorbent Polymers Functional Materials Total Net sales Sales to external customers 31,868 8,468 40,337 59 40,397 － 40,397 Intersegment sales/transfers － 13 13 213 227 (227) － Total 31,868 8,482 40,351 273 40,624 (227) 40,397 Segment profit (loss) 2,702 743 3,446 6 3,452 0 3,452 Notes on Segment Information, etc. [Segment information] Three months ended June 30, 2025 (April 1, 2025 to June 30, 2025) (1) Information on net sales, profit or loss by reportable segment Notes: 1 “Others” represents operating segment that is not included in any reportable segment. “Others” includes contract manufacturing service and other services. 2 Segment profit (loss) in “Adjustment” refers to inter-segment elimination. 3 Total amount of segment profit (loss) has been adjusted with operating profit in the quarterly consolidated statements of income. (2) Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment In the Functional Materials segment, the Company recognized impairment losses of 192 million yen related to manufacturing facilities, etc. for Powdered Polyethylene at its Chiba Works, as the carrying amounts of the relevant assets were reduced to their recoverable amounts. Three months ended June 30, 2026 (April 1, 2026 to June 30, 2026) (1) Information on net sales, profit or loss by reportable segment Notes: 1 “Others” represents operating segment that is not included in any reportable segment. “Others” includes contract manufacturing service and other services. 2 Segment profit (loss) in “Adjustment” refers to inter-segment elimination. 3 Total amount of segment profit (loss) has been adjusted with operating profit in the quarterly consolidated statements of income. - 9 -
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(2) Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment In the Functional Materials segment, the Company recognized impairment losses of 26 million yen related to manufacturing facilities, etc. for Powdered Polyethylene and Gas Products at its Chiba Works, as the carrying amounts of the relevant assets were reduced to their recoverable amounts. (Millions of yen) Three months ended June 30, 2025 (April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (April 1, 2026 to June 30, 2026) Depreciation 1,306 2,056 Notes on Quarterly Consolidated Statement of Cash Flows The quarterly consolidated statement of cash flows for the three months ended June 30, 2026 has not been prepared. Depreciation (including amortization) for the three months ended June 30, 2025 and 2026 is as follows. - 10 -
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(Millions of yen) Reportable Segment Others (Note) Total Adjustment Amount on Quarterly Consolidated Statements of Income Super Absorbent Polymers Functional Materials Total Japan 5,604 4,166 9,770 34 9,804 － 9,804 Asia 4,142 2,070 6,212 － 6,212 － 6,212 China 10,159 466 10,626 36 10,662 － 10,662 Europe 3,154 586 3,740 － 3,740 － 3,740 North America 3,001 138 3,140 － 3,140 － 3,140 Others 1,868 138 2,007 － 2,007 － 2,007 Revenue from contracts with customers 27,931 7,567 35,498 70 35,569 － 35,569 Other revenue － － － － － － － Sales to external customers 27,931 7,567 35,498 70 35,569 － 35,569 (Millions of yen) Reportable Segment Others (Note) Total Adjustment Amount on Quarterly Consolidated Statements of Income Super Absorbent Polymers Functional Materials Total Goods and services transferred at a point in time 27,931 7,234 35,166 70 35,236 － 35,236 Goods and services transferred over time － 332 332 － 332 － 332 Revenue from contracts with customers 27,931 7,567 35,498 70 35,569 － 35,569 Other revenue － － － － － － － Sales to external customers 27,931 7,567 35,498 70 35,569 － 35,569 Revenue Recognition Breakdown of revenue from contracts with customers Three months ended June 30, 2025 (April 1, 2025 to June 30, 2025) Note: “Others” represents operating segment that is not included in any reportable segment. “Others” includes contract manufacturing service and other services. - 11 -
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(Millions of yen) Reportable Segment Others (Note) Total Adjustment Amount on Quarterly Consolidated Statements of Income Super Absorbent Polymers Functional Materials Total Japan 5,146 4,397 9,543 29 9,573 － 9,573 Asia 5,125 2,344 7,470 － 7,470 － 7,470 China 12,588 773 13,361 29 13,391 － 13,391 Europe 3,222 698 3,920 － 3,920 － 3,920 North America 3,490 172 3,663 － 3,663 － 3,663 Others 2,295 82 2,377 － 2,377 － 2,377 Revenue from contracts with customers 31,868 8,468 40,337 59 40,397 － 40,397 Other revenue － － － － － － － Sales to external customers 31,868 8,468 40,337 59 40,397 － 40,397 (Millions of yen) Reportable Segment Others (Note) Total Adjustment Amount on Quarterly Consolidated Statements of Income Super Absorbent Polymers Functional Materials Total Goods and services transferred at a point in time 31,868 8,186 40,055 59 40,114 － 40,114 Goods and services transferred over time － 282 282 － 282 － 282 Revenue from contracts with customers 31,868 8,468 40,337 59 40,397 － 40,397 Other revenue － － － － － － － Sales to external customers 31,868 8,468 40,337 59 40,397 － 40,397 Three months ended June 30, 2026 (April 1, 2026 to June 30, 2026) Note: “Others” represents operating segment that is not included in any reportable segment. “Others” includes contract manufacturing service and other services. - 12 -
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Three months ended June. 30 Year-on-year changes FY 2026 ending March 31, 2027 (Forecast) FY 2025 FY 2026 Net Sales Million ¥ 35,569 40,397 4,827 165,000 Operating Profit Million ¥ 2,340 3,452 1,112 11,000 Ordinary Profit Million ¥ 1,607 4,315 2,708 11,200 Profit Attributable to Owners of the Parent Million ¥ 1,045 3,263 2,218 8,000 Basic Earnings Per Share ¥ 15.95 50.53 34.58 124.46 ROE % 1.1 3.1 2.0pt 7.6 Debt / Equity Ratio Times 0.24 0.24 0.00 － Average Exchange Rate ¥/USD 144.61 159.49 － 157.00 Average Exchange Rate ¥/CNY 19.99 23.44 － 23.00 Naphtha Price ¥/KL 66,300 118,900 － 86,700 Three months ended June. 30 Year-on-year changes FY 2026 ending March 31, 2027 (Forecast) FY 2025 FY 2026 Super Absorbent Polymers Net Sales Million ¥ 27,931 31,868 3,937 131,200 Operating Profit Million ¥ 2,133 2,702 568 7,700 Functional Materials Net Sales Million ¥ 7,567 8,468 901 33,500 Operating Profit Million ¥ 187 743 556 3,200 Others Net Sales Million ¥ 70 59 (11) 300 Operating Profit Million ¥ 18 6 (12) 100 Adjustment Net Sales Million ¥ － － － － Operating Profit Million ¥ 0 0 0 － Total Net Sales Million ¥ 35,569 40,397 4,827 165,000 Operating Profit Million ¥ 2,340 3,452 1,112 11,000 3. Summary of Consolidated Financial Results for the Three Months Ended June 30, 2026 (1) Consolidated Results Note:1 As of April 1, 2026, the Company conducted a stock split at the ratio of 5 shares to 1 share of common stock. “Basic earnings per share” is calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year. 2. For the second quarter and the rest of the fiscal year ending March 31, 2027, the average exchange rate will be 157.00 JPY/USD and 23.00 JPY/CNY, and the average naphtha price will be 76,000 JPY/KL (2) Net Sales and Operating Profit by Business Segment - 13 -