Sekisui Chemical Co (SKSUF) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Yes, thank you for taking time out of your busy schedule to join us today. Also, I will begin my presentation. Page 1 shows the currency assumption. In Q3, the yen was 6 yen weaker than expected at 154 yen against the dollar. For Q4, the revised October plan called for 148 yen, but we revised the assumption to 156 yen in the current forecast. As stated, the sensitivity to FX is an uplift of 500 million yen in OP for every 1 yen depreciation against the U.S. dollar. On page 2, the left half of the table shows the Q3 results. Net sales increased to 330.1 billion yen, reaching a new record high. The blue asterisks indicate record highs. Operating profit was 27.5 billion yen, and ordinary profit was 31.8 billion yen, both declining year on year. Although we do not disclose the plan by quarter, The results were generally in line with our internal plan. Net profit decreased partly due to the impairment loss of 14.9 billion yen. This was booked in the biorefinery business for the dismantling of the Kuji plant in Iwate after completing the demonstration experiments as scheduled. We set up an additional share buyback program of 10 million shares for 30 billion yen for the second half of this fiscal year. As of Q3, we made progress as described on the page and will continue in order to complete the 14 million share buyback for the full year. Next, page 3 shows the results by segment. The left table illustrates that the Q3 net sales and OP grew in HPP and housing out of the four segments. We do not disclose the quarterly plans, but the two segments are performing slightly better than planned. However, it was not enough to offset the decline in UREP, medical, and other segments, and resulted in sales growth but profit decline on consolidated basis. The right table shows the resu...