Interim report
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NIPPON SHOKUBAI CO . , LTD . ( 4114 ) Financial Results for the First Quarter of the Fiscal Year Ending March 31 , 2027 Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31 , 2027 [ IFRS ] ( Three Months Ended June 30 , 2026 ) FASF MEMBERSHIP August 7 , 2026 Company name : Code number : Representative : Contact for inquiries : Takeharu Tatsumi , General Manager of Corporate Communications Dept. NIPPON SHOKUBAI CO . , LTD . 4114 Listing : TSE ( Prime Market ) URL : https://www.shokubai.co.jp/en Kazuhiro Noda , Representative Director , President Phone : + 81-3-3506-7605 Scheduled date of dividend payment : Supplementary materials prepared : Financial results briefing held : Yes Yes ( for securities analysts and institutional investors ) ( Figures are rounded off to the nearest million yen ) 1 . Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31 , 2027 ( hereafter FY2026 ) ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes ) Profit Revenue Operating profit Profit before tax Profit attributable to Total comprehensive owners of parent income Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen Millions of % % yen Three months ended 121,318 19.8 12,142 182.7 14,158 125.3 10,647 129.0 10,378 134.0 14,580 510.7 Jun . 30 , 2026 Three months ended 101,247 ( 3.7 ) 4,295 ( 17.2 ) 6,283 ( 2.1 ) 4,649 ( 3.3 ) 4,434 ( 4.2 ) 2,387 ( 82.8 ) Jun . 30 , 2025 Basic earnings Diluted earnings per share per share Yen Yen Three months ended 70.24 70.23 Jun . 30 , 2026 Three months ended 29.27 29.26 Jun . 30 , 2025 ( 2 ) Consolidated financial position Total assets Total equity As of Jun . 30 , 2026 As of Mar. 31 , 2026 Millions of yen 610,609 580,209 Millions of yen 411,330 406,587 Equity attributable to owners of parent Millions of yen 401,692 396,649 Ratio of equity attributable to owners of parent % 65.8 68.4 2. Dividends End of 1Q Yen End of 2Q Yen Annual dividends End of 3Q Year - end Annual Yen Yen Yen FY2025 FY2026 50.00 63.00 113.00 FY2026 ( forecast ) 70.00 Note : Revisions to the dividends forecast since the latest announcement : Yes 70.00 140.00 Equity attributable to owners of parent per share Yen 2,718.26 2,684.47
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 3. Consolidated Financial Forecasts for FY2026 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes) Revenue Operating profit Profit before tax Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen First half (cumulative) 235,000 17.4 12,500 38.7 15,000 38.9 10,500 37.9 71.06 Full year 455,000 13.8 21,000 19.8 27,500 27.9 20,500 22.3 139.71 Note: Revisions to the financial forecasts since the latest announcement: Yes *Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies; changes in accounting estimates 1) Changes in accounting policies required by IFRS: None 2) Other changes in accounting policies: None 3) Changes in accounting estimates: None (3) Number of shares issued and outstanding (common shares) 1) Number of shares issued at the end of the period (including treasury shares) Jun. 30, 2026: 150,000,000 shares Mar. 31, 2026: 150,000,000 shares 2) Number of treasury shares at the end of the period Jun. 30, 2026: 2,224,392 shares Mar. 31, 2026: 2,243,116 shares 3) Average number of shares outstanding during the period Three months ended Jun. 30, 2026: 147,761,565 shares Three months ended Jun. 30, 2025: 151,515,521 shares Note: The numbers of treasury shares at the end of the periods include shares of the Company held by the trust account set up after the introduction of a Performance -linked Stock Compensation Plan for the Company’s Members of the Board and Executive Officers (148,092 shares as of June 30, 2026 and 166,816 shares as of March 31, 2026). Shares of the Company held by the trust account are included in the treasury shares to be deducted in the calculation of the average number of shares outstanding during the period. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Appropriate use of financial forecasts and other special items 1. In this document, statements other than historical facts are forward -looking statements that reflect the Company’s plans and expectations. These forward -looking statements involve risks, uncertainties and other factors that may cause our actual results and achievements to differ from those anticipated in these statements. Please refer to “ 1. Overview of Operating Results, etc. (3) Consolidated Financial Forecasts and Other Forward-looking Statements” on page 3 of the attached materials for the assumptions used in financial forecasts. 2. Supplementary materials will be disclosed through TDnet on Friday, August 7, 2026, and will also be posted on the Company’s website. * This document is translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 1 Contents of the Attached Materials 1. Overview of Operating Results, etc. ...................................................................................................................... 2 (1) Overview of Operating Results for the Period under Review .......................................................................... 2 (2) Overview of Financial Position for the Period under Review .......................................................................... 2 (3) Consolidated Financial Forecasts and Other Forward-looking Statements ...................................................... 3 2. Condensed Quarterly Consolidated Financial Statements and Related Notes ....................................................... 4 (1) Condensed Quarterly Consolidated Statements of Financial Position .............................................................. 4 (2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income ............................................................................................................ 6 (3) Condensed Quarterly Consolidated Statements of Changes in Equity ............................................................. 8 (4) Condensed Quarterly Consolidated Statements of Cash Flows ...................................................................... 10 (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements ................................................ 11 (Going Concern Assumption) .......................................................................................................................... 11 (Applicable Financial Reporting Framework) ................................................................................................. 11 (Segment Information) ..................................................................................................................................... 11
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 2 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Period under Review For an overview of the Group’s operating results, pleas e refer to the supplementary material for financial results, which has been disclosed today. (2) Overview of Financial Position for the Period under Review 1) Assets, Liabilities and Equity Total assets at the end of the first quarter of the fiscal year under review increased by 30,400 million yen from the end of the previous fiscal year to 610,609 million yen. Current assets increased by 22,075 million yen from the end of the previous fiscal year. This was mainly due to increases in trade receivables and inventories primarily owing to higher selling prices and raw material prices. Non-current assets increased by 8,325 million yen from the end of the previous fiscal year. This was mainly due to an increase in property, plant and equipment chiefly because of capital expenditure and the impact of the depreciation of the yen on foreign currency translation , and an increase in other financial assets as a result of higher fair values of stocks held. Total liabilities increased by 25,657 million yen from the end of the previous fiscal year to 199,279 million yen. This was mainly due to an increase in trade payables primarily owing to higher raw material prices , as well as an increase in borrowings associated with capital expenditure and other factors. Total equity increased by 4,743 million yen from the end of the previous fiscal year to 4 11,330 million yen. This was mainly due to an increase in net change in fair value of financial assets measured at fair value through other comprehensive income as a result of higher fair values of stocks held , and an increase in exchange differences on translation of foreign operations caused by the depreciation of the yen. The ratio of equity attributable to owners of parent decreased by 2. 6 percentage points from 68.4% at the end of the previous fiscal year to 6 5.8%. Equity attributable to owners of parent per share increased by 33.79 yen from the end of the previous fiscal year to 2,718.26 yen. 2) Cash Flows Cash and cash equivalents at the end of the three months ended June 30, 2026 amounted to 50,162 million yen, a decrease of 1,657 million yen from the end of the previous fiscal year, as the sum of cash flows used in investing activities including capital expenditure and cash flows used in financing activities exceeded the cash flows provided by operating activities. Cash flow from operating activities Net cash provided by operating activities in the three months ended June 30, 2026 amounted to 13,141 million yen, a decrease of 1,621 million yen from a cash inflow of 14,762 million yen in the same period of the previous fiscal year. This was mainly owing to increases in trade receivables and inventories, which more than offset an increase in profit before tax and an increase in trade payables due to higher raw material prices. Cash flow from investing activities Net cash used in investing activities in the three months ended June 30, 2026 totaled 12,820 million yen, a decrease of 4,260 million yen from a cash outflow of 17,080 million yen in the same period of the previous fiscal year. This was mainly due to a decrease in purchase of shares of subsidiaries resulting in change in scope of consolidation , despite a decrease in proceeds from sale of investment securities. Cash flow from financing activities Net cash used in financing activities in the three months ended June 30, 2026 amounted to 2,370 million yen, a decrease of 5,771 million yen from a cash outflow of 8,140 million yen in the same period of the previous fiscal year. This was mainly due to an increase in proceeds from borrowings.
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 3 (3) Consolidated Financial Forecasts and Other Forward-looking Statements For the Group’s consolidated financial forecast and dividend forecast , please refer to the “Notice Regarding Earnings Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2027,” which has been disclosed today. (Reference) Assumptions used in financial forecasts Domestic naphtha price Foreign exchange rate Yen/kl Yen/USD Yen/EUR First-half forecasts 101,000 159 183 Second-half forecasts 75,000 158 180 Full-year forecasts 88,000 158 181 Forecasts by reportable segment (Unit: Billions of yen) Materials business Solutions business Adjustment Total Revenue Operating profit Segment income Revenue Operating profit Segment income Segment income Revenue Operating profit Segment income First-half forecasts 169.0 6.3 7.5 66.0 5.8 7.1 0.4 235.0 12.5 15.0 Second-half forecasts 159.0 6.0 7.9 61.0 2.4 4.0 0.1 220.0 8.5 12.0 Full-year forecasts 328.0 12.3 15.4 127.0 8.2 11.1 0.5 455.0 21.0 27.0 Note: Segment income is calculated with the formula of “operating profit” + “Share of profit (loss) of investments accounted for using equity method.” “Adjustment” includes inter-segment transaction eliminations and corporate profit (loss) not allocated to reportable segments.
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 4 2. Condensed Quarterly Consolidated Financial Statements and Related Notes (1) Condensed Quarterly Consolidated Statements of Financial Position (Unit: Millions of yen) FY2025 As of Mar. 31, 2026 1Q FY2026 As of Jun. 30, 2026 Assets Current assets Cash and cash equivalents 51,819 50,162 Trade receivables 91,288 104,085 Inventories 85,758 95,607 Other financial assets 9,101 10,221 Other current assets 9,277 9,241 Total current assets 247,243 269,317 Non-current assets Property, plant and equipment 223,128 228,140 Goodwill 3,539 3,539 Intangible assets 6,015 5,713 Investments accounted for using equity method 30,004 29,468 Other financial assets 42,199 45,906 Retirement benefit asset 20,675 20,964 Deferred tax assets 4,616 4,844 Other non-current assets 2,791 2,719 Total non-current assets 332,966 341,292 Total assets 580,209 610,609
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 5 (Unit: Millions of yen) FY2025 As of Mar. 31, 2026 1Q FY2026 As of Jun. 30, 2026 Liabilities and equity Liabilities Current liabilities Trade payables 51,659 66,090 Borrowings 23,107 33,140 Other financial liabilities 13,194 12,806 Income taxes payable 2,427 4,260 Provisions 7,020 8,508 Other current liabilities 6,460 5,668 Total current liabilities 103,867 130,473 Non-current liabilities Borrowings 35,624 33,868 Other financial liabilities 6,302 6,053 Retirement benefit liability 9,189 9,286 Provisions 4,006 4,073 Deferred tax liabilities 14,510 15,382 Other non-current liabilities 125 145 Total non-current liabilities 69,755 68,806 Total liabilities 173,622 199,279 Equity Share capital 25,038 25,038 Capital surplus 22,473 22,457 Treasury shares (3,854) (3,823) Retained earnings 302,831 303,957 Other components of equity 50,160 54,062 Total equity attributable to owners of parent 396,649 401,692 Non-controlling interests 9,939 9,638 Total equity 406,587 411,330 Total liabilities and equity 580,209 610,609
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 6 (2) Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income Condensed Quarterly Consolidated Statements of Profit or Loss (Unit: Millions of yen) 1Q FY2025 Apr. 1, 2025 to Jun. 30, 2025 1Q FY2026 Apr. 1, 2026 to Jun. 30, 2026 Revenue 101,247 121,318 Cost of sales 83,040 94,325 Gross profit 18,208 26,994 Selling, general and administrative expenses 14,145 15,054 Other operating income 560 568 Other operating expenses 328 365 Operating profit 4,295 12,142 Finance income 1,035 897 Finance costs 284 229 Share of profit (loss) of investments accounted for using equity method 1,238 1,348 Profit before tax 6,283 14,158 Income tax expense 1,635 3,511 Profit 4,649 10,647 Profit attributable to: Owners of parent 4,434 10,378 Non-controlling interests 214 269 Profit 4,649 10,647 Earnings per share: Basic earnings per share (Yen) 29.27 70.24 Diluted earnings per share (Yen) 29.26 70.23
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 7 Condensed Quarterly Consolidated Statements of Comprehensive Income (Unit: Millions of yen) 1Q FY2025 Apr. 1, 2025 to Jun. 30, 2025 1Q FY2026 Apr. 1, 2026 to Jun. 30, 2026 Profit 4,649 10,647 Other comprehensive income Items that will not be reclassified to profit or loss Net change in fair value of financial assets measured at fair value through other comprehensive income 1,304 2,553 Share of other comprehensive income of investments accounted for using equity method (0) (2) Total of items that will not be reclassified to profit or loss 1,304 2,551 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations (2,362) 1,282 Share of other comprehensive income of investments accounted for using equity method (1,202) 99 Total of items that may be reclassified to profit or loss (3,565) 1,382 Other comprehensive income, net of tax (2,261) 3,933 Comprehensive income 2,387 14,580 Comprehensive income attributable to Owners of parent 2,565 14,278 Non-controlling interests (178) 302 Comprehensive income 2,387 14,580
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 8 (3) Condensed Quarterly Consolidated Statements of Changes in Equity Three months ended June 30, 2025 (Apr. 1, 2025 to Jun. 30, 2025) (Unit: Millions of yen) Share capital Capital surplus Treasury shares Retained earnings Other components of equity Net change in fair value of financial assets measured at fair value through other comprehensive income Remeasurements of defined benefit plans Balance at beginning of period 25,038 22,533 (7,263) 308,770 4,225 – Profit – – – 4,434 – – Other comprehensive income – – – – 1,304 (0) Comprehensive income – – – 4,434 1,304 (0) Purchase of treasury shares – – (0) – – – Disposal of treasury shares – – – – – – Share-based payment transactions – – – – – – Dividends – – – (9,091) – – Transfer from other components of equity to retained earnings – – – (659) 659 0 Other – – – – – – Total transactions with owners – – (0) (9,750) 659 0 Balance at end of period 25,038 22,533 (7,264) 303,454 6,189 – Other components of equity Total equity attributable to owners of parent Non-controlling interests Total equity Exchange differences on translation of foreign operations Total Balance at beginning of period 29,726 33,951 383,029 9,505 392,533 Profit – – 4,434 214 4,649 Other comprehensive income (3,173) (1,869) (1,869) (392) (2,261) Comprehensive income (3,173) (1,869) 2,565 (178) 2,387 Purchase of treasury shares – – (0) – (0) Disposal of treasury shares – – – – – Share-based payment transactions – – – – – Dividends – – (9,091) (616) (9,707) Transfer from other components of equity to retained earnings – 659 – – – Other – – – – – Total transactions with owners – 659 (9,091) (616) (9,707) Balance at end of period 26,552 32,741 376,502 8,711 385,213
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 9 Three months ended June 30, 2026 (Apr. 1, 2026 to Jun. 30, 2026) (Unit: Millions of yen) Share capital Capital surplus Treasury shares Retained earnings Other components of equity Net change in fair value of financial assets measured at fair value through other comprehensive income Remeasurements of defined benefit plans Balance at beginning of period 25,038 22,473 (3,854) 302,831 10,384 – Profit – – – 10,378 – – Other comprehensive income – – – – 2,551 (2) Comprehensive income – – – 10,378 2,551 (2) Purchase of treasury shares – – – – – – Disposal of treasury shares – 0 31 – – – Share-based payment transactions – (16) – – – – Dividends – – – (9,309) – – Transfer from other components of equity to retained earnings – – – (2) – 2 Other – – – 58 – – Total transactions with owners – (15) 31 (9,253) – 2 Balance at end of period 25,038 22,457 (3,823) 303,957 12,936 – Other components of equity Total equity attributable to owners of parent Non-controlling interests Total equity Exchange differences on translation of foreign operations Total Balance at beginning of period 39,776 50,160 396,649 9,939 406,587 Profit – – 10,378 269 10,647 Other comprehensive income 1,350 3,900 3,900 33 3,933 Comprehensive income 1,350 3,900 14,278 302 14,580 Purchase of treasury shares – – – – – Disposal of treasury shares – – 32 – 32 Share-based payment transactions – – (16) – (16) Dividends – – (9,309) (602) (9,911) Transfer from other components of equity to retained earnings – 2 – – – Other – – 58 – 58 Total transactions with owners – 2 (9,234) (602) (9,837) Balance at end of period 41,126 54,062 401,692 9,638 411,330
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 10 (4) Condensed Quarterly Consolidated Statements of Cash Flows (Unit: Millions of yen) 1Q FY2025 Apr. 1, 2025 to Jun. 30, 2025 1Q FY2026 Apr. 1, 2026 to Jun. 30, 2026 Cash flows from operating activities Profit before tax 6,283 14,158 Depreciation and amortization 7,775 8,143 Loss (gain) on sale of property, plant and equipment (1) (0) Interest and dividend income (941) (832) Interest expenses 274 228 Share of loss (profit) of investments accounted for using equity method (1,238) (1,348) Decrease (increase) in trade receivables 2,388 (12,286) Decrease (increase) in inventories 2,044 (9,375) Increase (decrease) in trade payables (2,986) 14,137 Other 2,032 (687) Subtotal 15,631 12,138 Interest and dividends received 2,868 2,246 Interest paid (175) (195) Income taxes refund (paid) (3,562) (1,048) Net cash provided by (used in) operating activities 14,762 13,141 Cash flows from investing activities Purchase of property, plant and equipment (13,640) (13,333) Proceeds from sale of property, plant and equipment 2 0 Purchase of intangible assets (183) (97) Purchase of investments (1) (1) Proceeds from sale and redemption of investments 3,790 – Purchase of shares of subsidiaries resulting in change in scope of consolidation (6,900) – Other (148) 611 Net cash provided by (used in) investing activities (17,080) (12,820) Cash flows from financing activities Net increase (decrease) in short-term borrowings 2,359 4,814 Proceeds from long-term borrowings – 3,112 Repayments of long-term borrowings (383) (21) Repayments of lease liabilities (409) (363) Purchase of treasury shares (0) – Dividends paid (9,091) (9,309) Dividends paid to non-controlling interests (616) (602) Net cash provided by (used in) financing activities (8,140) (2,370) Effect of exchange rate changes on cash and cash equivalents (598) 392 Net increase (decrease) in cash and cash equivalents (11,056) (1,657) Cash and cash equivalents at beginning of period 54,565 51,819 Cash and cash equivalents at end of period 43,508 50,162
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 11 (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements (Going Concern Assumption) Not applicable. (Applicable Financial Reporting Framework) The Group ’s condensed quarterly consolidated financial statements, which comprise the Condensed Quarterly Consolidated Statement of Financial Position, Condensed Quarterly Consolidated Statement of Profit or Loss, Condensed Quarterly Consolidated Statement of Comprehensive Income, Condensed Quarterly Consolidated Statement of Changes in Equity, Condensed Quarterly Consolidated Statement of Cash Flow s, and Notes Concerning Condensed Quarterly Consolidated Financial Statements, have been prepared in accordance with Art icle 5, Paragraph 2 of the Tokyo Stock Exchange, Inc.’s Standards for the Preparation of Quarterly Financial Statements (the “Standards”), applying the provisions for reduced disclosures as set forth in Article 5, Paragraph 5 of the Standards, accordingly certain disclosures and notes required by IAS 34 Interim Financial Reporting are not given. (Segment Information) 1. Outline of Reportable Segments The Group’s reportable segments are divisions of the Group for which separate financial information is available, and whose operating results are reviewed regularly by the Board of Directors of the Company in order to allocate management resources and assess financial results. The Group’s main business lines are divided based on similarity in the type and nature of business, among other factors, and the Group prepares the comprehensive strategy and conducts the business activities corresponding to the products handled by each business line. Accordingly, the Group is comprised of reportable segments by product type based on the classified businesses and does not aggregate these business segments . The two reportable segments of the Group are the Materials business and the Solutions business. In the Materials business, acrylic acid, acrylates, ethylene oxide, ethylene glycol, ethanolamine, special esters, superabsorbent polymers, maleic anhydride, process catalysts, etc. are manufactured and sold. In the Solutions business, concrete admixture polymers, glycol ethers, water-soluble polymers such as raw materials for detergents, intermediates for pharmaceuticals, electronic and information materials, iodine compounds, resins for adhesives/paints, ethyleneimine derivatives, processed adhesive produ cts, De-NOx catalysts, dioxin decomposition catalysts, equipment for waste gas treatment, wastewater treatment catalysts for catalytic wet air oxidation, materials for batteries, etc. are manufactured and sold.
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NIPPON SHOKUBAI CO., LTD. (4114) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 12 2. Information Concerning Revenue and Income or Loss by Reportable Segment Three months ended June 30, 2025 (Apr. 1, 2025 to June 30, 2025) (Unit: Millions of yen) Reportable segments Adjustment (Note) Total Materials Solutions Total Revenue Revenue to third parties 69,808 31,440 101,247 – 101,247 Intergroup revenue and transfers 4,317 715 5,031 (5,031) – Total 74,124 32,154 106,279 (5,031) 101,247 Segment income Operating profit 2,330 1,856 4,185 109 4,295 Share of profit (loss) of investments accounted for using equity method 734 503 1,238 – 1,238 Total 3,064 2,359 5,423 109 5,532 Finance income – – – – 1,035 Finance costs – – – – 284 Profit before tax – – – – 6,283 Note: The “Segment income” adjustment of 109 million yen includes inter-segment transaction eliminations and corporate profit (loss) not allocated to reportable segments. Three months ended June 30, 2026 (Apr. 1, 2026 to June 30, 2026) (Unit: Millions of yen) Reportable segments Adjustment (Note) Total Materials Solutions Total Revenue Revenue to third parties 87,894 33,424 121,318 – 121,318 Intergroup revenue and transfers 5,106 834 5,940 (5,940) – Total 93,000 34,258 127,259 (5,940) 121,318 Segment income Operating profit 8,414 3,658 12,072 70 12,142 Share of profit (loss) of investments accounted for using equity method 345 1,002 1,348 – 1,348 Total 8,759 4,661 13,420 70 13,490 Finance income – – – – 897 Finance costs – – – – 229 Profit before tax – – – – 14,158 Note: The “Segment income” adjustment of 70 million yen includes inter-segment transaction eliminations and corporate profit (loss) not allocated to reportable segments.