Consolidated Financial Results for the Six Months Ended September 30, 2025 [PDF: 277.3 KB]

Consolidated Financial Results for the Six Months Ended September 30, 2025

(All financial information has been prepared in accordance with Generally Accepted Accounting Principles in Japan)

November 6, 2025

Company name : DAICEL CORPORATION Stock Exchange on which the shares are listed : Tokyo Stock Exchange in Japan Code number 4202

URL : https://www.daicel.com/en/

Representative : Yasuhiro Sakaki, President and CEO

Contact person : Masahiko Hirokawa, Executive Officer, Deputy General Manager, Corporate Support Headquarters, General Manager-Investor Relations & Corporate Communications Phone +81-3-6711-8121

Scheduled date for submitting financial statements : November 10, 2025 Scheduled date for dividend payment : December 2, 2025 The additional materials of the Financial Results : Yes

The briefing session of the Financial Results : Yes (for institutional investors and analysts)

1. Consolidated Financial Results for the Six Months Ended September 30, 2025 (Amounts are rounded down to the nearest million)

   1. Consolidated Operating Results (% of change from previous year)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
      Six months ended Sep. 30, 2025	277,119	(4.3)	20,121	(36.3)	20,371	(33.7)	18,802	(41.3)
      Six months ended Sep. 30, 2024	289,688	6.9	31,607	18.8	30,745	0.1	32,053	7.7

      (Note) Comprehensive income: 27,898 millions of yen [15.8%] for the Six Months Ended September 30, 2025 and 24,081 millions of yen [(52.7)%] for the six months ended September 30, 2024

      	Profit per share	Diluted profit per share
      	Yen	Yen
      Six months ended Sep. 30, 2025	70.90	-
      Six months ended Sep. 30, 2024	116.18	-

   2. Consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   	Millions of Yen	Millions of Yen	%	Yen
   As of Sep. 30, 2025	848,907	394,210	44.7	1,429.64
   As of Mar. 31, 2025	813,831	375,037	44.2	1,357.77

   (Reference) Shareholders' equity: 379,563millions of yen as of September 30, 2025 and 359,984 millions of yen as of March 31, 2025

2. Dividends

   	Cash dividends per share
   (Reference data)	1st quarter	2ｎd quarter	3rd quarter	4th quarter	Annual
   	Yen	Yen	Yen	Yen	Yen
   Year ended Mar. 31, 2025	-	30.00	-	30.00	60.00
   Year ending Mar. 31, 2026	-	30.00
   Year ending Mar. 31, 2026 (Forecast)			-	30.00	60.00

   (Note) Revisions to the latest announced dividend forecast: Not Applicable

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2026

   (% of change from same period of previous year)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Profit per share
   Year ending Mar. 31, 2026	Millions of Yen 583,000	% (0.6)	Millions of Yen 46,500	% (23.8)	Millions of Yen 47,500	% (23.8)	Millions of Yen 50,000	% 1.0	Yen 188.33

   (Note) Revisions to the latest announced forecast of consolidated financial results: Applicable

   *Notes

   1. Significant changes in the scope of consolidation during the period: Not applicable

   2. Adoption of specific accounting methods for presenting semi-annual financial statements: Not applicable

   3. Changes in accounting policies, changes in accounting estimates and restatements

      1. Changes in accounting policies due to revisions of accounting standards: Not Applicable

      2. Changes in accounting policies other than (3)-i: Not applicable

      3. Changes in accounting estimates: Not applicable

      4. Retrospective restatements: Not applicable

   4. Number of issued shares (common share)

   ⅰ Number of issued shares at the end of each period (including treasury shares)	As of Sep. 30, 2025	266,942,682 shares	As of Mar. 31, 2025	276,942,682 shares
   ⅱ Number of treasury shares at the end of each period	As of Sep. 30, 2025	1,446,001 shares	As of Mar. 31, 2025	11,814,115 shares
   ⅲ Average number of shares during each period (Cumulative from the beginning of the fiscal year)	Six months ended Sep. 30, 2025	265,212,162 shares	Six months ended Sep. 30, 2024	275,893,265 shares

   • Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.

   • Explanations or other special matters to appropriate use of the forecast of consolidated financial results

   The forecast of consolidated financial results and certain other statements contained in this document are forward-looking statements, which are rationally determined based on information currently available to the company. For a variety of reasons, actual performance may differ substantially from these projections.

4. Qualitative Information on the Period under Review

   1. Overview of the operating results

      During the consolidated first half of the fiscal year ending March 2026 (six months ended September 30, 2025), the global economy showed a slowing recovery, with some regions, such as China, stalling. In addition, the outlook remained uncertain due to concerns over the impact of the US tariff policy on prices and consumption.

      Although the recovery of demand has varied even among the Group's major markets, for products where demand is growing, we have steadily seized sales opportunities and increased sales volume while also implementing thorough cost reduction measures.

      As a result, sales revenue for the consolidated first half of the fiscal year under review totaled 277,119 million (down 2.9% year-on-year). On the income front, operating income amounted to 20,121 million (down 36.3% year-on-year), ordinary income was 20,371 million (down 23.2% year-on-year), and net income attributable to owners of the parent was 18,802 million (down 30.1% year-on-year).

      Segment information is summarized as follows. [Medical / Healthcare]

      In the life sciences business, although sales volume of chiral columns increased slightly, sales revenue decreased mainly due to the impact of exchange rates.

      In the healthcare business, sales revenue increased due to an increase in sales volume of health food ingredients, owing to favorable sales of supplements by clients.

      The overall segment sales came to ¥7,634 million (up 6.2% year-on-year). Operating income was ¥208 million (up 10.1% year-on-year) due to factors such as an increase in sales volume in the healthcare business.

      [Smart]

      In the functional products business, sales revenue decreased due to factors such as price competition for caprolactone derivatives in China and the impact of exchange rates.

      In the advanced technology business, although demand in the semiconductor materials market was solid, sales volume of resist materials decreased due to factors such as customers' production schedules shifting from the previous fiscal year, and demand for functional films for automotive applications decreased, resulting in a decrease in revenue.

      The overall segment sales came to ¥18,171 million (down 7.3% year-on-year). Operating income was ¥404 million (up 87.9% year-on-year) due to the decline in raw material prices.

      [Safety]

      In the mobility business, which produces products such as inflators (gas generators) for automotive airbags, sales volumes increased due to a recovery of production in Chinese automakers in the Chinese market and sales expansion in India, leading to increased revenue.

      Consequently, the overall segment sales came to ¥49,723 million (up 5.6% year-on-year). Operating income was ¥2,663 million (up 102.8% year-on-year) due to increased sales volume and improved productivity at North American bases.

      [Materials]

      In the acetyl business, while demand for its main derivatives, vinyl acetate and purified terephthalic acid, remained sluggish, sales volume of acetic acid increased due to sales adjustments implemented in the previous fiscal year because of problems at the raw material (carbon monoxide) plant. However, sales revenue decreased due to the decline in market conditions.

      Sales revenue for acetate tow decreased due to a decrease in sales volume, reflecting inventory adjustments by some customers and the impact of exchange rates.

      In the chemical business, sales revenue of cellulose acetate decreased due to a decrease in demand for fiber applications in the Chinese market, despite a flat in sales for display material applications because of a temporary recovery in the LCD panel market resulting from Chinese subsidy policy and last-minute demand before the implementation of U.S. tariffs.

      Sales revenue for other chemical products increased due to an increase in sales volume of 1,3-butylene glycol, which resulted from a recovery in the cosmetics market.

      Consequently, overall segment sales amounted to ¥77,166 million (down 12.8% year-on-year). Operating income was

      ¥4,974 million (down 65.3% year-on-year), due to factors such as a decrease in sales volume, the effects of inventory carried over from the previous term and the impact of exchange rates.

      [Engineering Plastics]

      In the business of Polyplastics Co., Ltd., such as polyacetal (POM), polybutylene terephthalate (PBT) resin, and liquid crystal polymer (LCP), sales revenue increaseｄ due to an increase in sales volume of products other than polyacetal resin, such as those for electronic materials, and adjustments to sales prices, despite a decrease in sales volume of polyacetal resin for industrial equipment and the impact of exchange rates.

      In the business of Daicel Miraizu Ltd., including water-soluble polymers, barrier films for packaging, and AS resins, sales revenue decreased due to the transfer of the resin compound business to equity method affiliate Novacel Co., Ltd. in July 2024.

      Consequently, overall segment sales amounted to ¥121,915 million (down 2.1% year-on-year). Operating income was

      ¥11,470 million (down 24.5% year-on-year) due to an increase in depreciation expenses, regular inspection expenses and the impact of exchange rates.

      [Other Businesses]

      In the other businesses, sales revenue decreased due to a decrease in sales of the membrane business, including membrane modules for water treatment.

      Consequently, overall segment sales amounted to 2,508 million (down 11.3% year-on-year). Operating income was 400 million (up 16.3% year-on-year).

   2. Overview of financial position for the period under review

      Total assets as of September 30, 2025, were 848,907 million, an increase of 35,075 million from March 31, 2025, due to increases in inventories and property, plant and equipment.

      Total liabilities were 454,696 million, an increase of 15,902 million from March 31, 2025, due to an increase in long-term borrowings.

      Total net assets were 394,210 million. Total shareholders' equity, which is calculated as the net assets minus non-controlling interests, was 379,563 million. Shareholders' equity ratio was 44.7%.

   3. Overview of cash flow for the period under review

      Cash and cash equivalents ("Cash") in the cumulative consolidated first half amounted to ¥64,419 million.

      Cash flow from operating activities

      Cash flow from operating activities during the consolidated first half under review was +32,755 million (vs. +50,745 million in the same period of the previous fiscal year). The increases in cash flow were mainly attributable to 26,183 million of net income before income taxes and 20,425 million of depreciation. Meanwhile, the main factor for the decreases in cash flow was

      15,290 million of decrease (increase) in income taxes paid. Cash flow from investment activities

      Cash flow from investment activities during the consolidated first half under review was -26,530 million (vs. -29,391 million in the same period last year). The main factors for the increase in cash flow were income of 5,803 million from the sale and redemption of investment securities. The main factors for the decrease in cash flow were expenditures of 35,429 million for the purchase of property, plant and equipment.

      Cash flow from financing activities

      Cash flow from financing activities during the consolidated first half under review was -7,835 million (vs.-24,043 million in the same period of the previous fiscal year). The increases in cash flow were mainly attributable to 22,856 million of proceeds from long-term borrowings. The main factors accounting for the decrease in cash flow were 14,256 million of net increase (decrease) in short-term borrowings and 7,950 million in dividends paid.

   4. Explanation regarding future forecast information of consolidated financial results

      Based on the business results for the consolidated first half of the current fiscal year, the Company has revised its consolidated earnings forecasts for the full fiscal year ending March 31, 2026 announced on May 13, 2025. For details, please refer to the " Notice Regarding Revision to Consolidated Financial Forecast " released today.

5. Consolidated Financial Statements

(1) Consolidated Balance Sheets

Assets

Current assets

(Unit: Millions of Yen)

As of Mar. 31, 2025 As of Sep. 30, 2025

Non-current assets

Intangible assets