Consolidated Financial Results for the Three Months Ended June 30, 2025 [PDF: 174.3 KB]

Consolidated Financial Results for the Three Months Ended June 30, 2025

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

August 1, 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 dividend payment : -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 Three Months Ended June 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	%
      Three months ended Jun. 30, 2025	139,270	(4.3)	13,043	(25.3)	12,343	(32.1)	9,620	(40.6)
      Three months ended Jun. 30, 2024	145,572	11.3	17,458	91.5	18,179	43.2	16,189	8.0

      (Note) Comprehensive income: 11,130 millions of yen [(67.2)%] for the three months ended June 30, 2025 and 33,957 millions of yen [9.8%] for the three months ended June 30, 2024

      	Profit per share	Diluted profit per share
      	Yen	Yen
      Three months ended Jun. 30, 2025	36.29	-
      Three months ended Jun. 30, 2024	58.70	-

   2. Consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   	Millions of Yen	Millions of Yen	%	Yen
   As of Jun. 30, 2025	839,853	378,111	43.2	1,367.91
   As of Mar. 31, 2025	813,831	375,037	44.2	1,357.77

   (Reference) Shareholders' equity: 362,668millions of yen as of June 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
   Year ended Mar. 31, 2025 Year ending Mar. 31, 2026	Yen - -	Yen 30.00	Yen -	Yen 30.00	Yen 60.00
   Year ending Mar. 31, 2026 (Forecast)		30.00	-	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
   	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Yen
   Six months ending Sep. 30, 2025	290,000	0.1	22,500	(28.8)	23,500	(23.6)	25,000	(22.0)	94.29
   Year ending Mar. 31, 2026	600,000	2.3	54,000	(11.5)	56,000	(10.1)	54,000	9.1	203.68

   (Note) Revisions to the latest announced forecast of consolidated financial results: Not Applicable

   *Notes

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

   2. Adoption of specific accounting methods for presenting quarterly 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 Jun. 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 Jun. 30, 2025	1,816,434 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)	Three months ended Jun. 30, 2025	265,126,779 shares	Three months ended Jun. 30, 2024	275,813,361 shares

   *Review of the attached quarterly consolidated financial statements performed by certified public accountants or accounting firm: Not applicable

   *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

      Looking at the world trends during the consolidated first quarter of the fiscal year ending March 2026 (three months ended June 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, as well as the resulting surge and rebound in demand.

      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 quarter of the fiscal year under review totaled 139,270 million (down 4.3% year-on-year). On the income front, operating income amounted to 13,043 million (down 25.3% year-on-year), ordinary income was 12,343 million (down 32.1% year-on-year), and net income attributable to owners of the parent was 9,620 million (down 40.6% year-on-year).

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

      In the life sciences business, although sales volume of chiral columns decreased slightly, sales revenue increased mainly due to strong sales of separation and purification services in India.

      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 ¥3,833 million (up 9.9% year-on-year). Operating income was ¥162 million (up 72.3% year-on-year) due to factors such as an increase in sales volume in the healthcare business.

      [Smart]

      In the functional products business, sales volume of epoxy compounds increased due to sales expansion both domestically and overseas, but sales revenue decreased due to sluggish demand for caprolactone derivatives 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, resulting in a decrease in revenue.

      The overall segment sales came to ¥9,450 million (down 8.4% year-on-year). Operating income was ¥213 million (down 57.5% year-on-year) due to factors such as a decrease in sales volume and the impact of exchange rates.

      [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 ¥24,470 million (up 5.0% year-on-year). Operating income was ¥1,608 million (operating loss of 47 million in the same period of the previous fiscal 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 remained flat 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.

      Although demand for acetate tow remains strong, sales revenue decreased due to a decrease in sales volume compared to the same period of the previous fiscal year and the impact of foreign 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 an increase 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 due to a recovery in the cosmetics market and an increase in sales volume of ethyl acetate, the sales of which were adjusted in the previous fiscal year due to problems at a plant for the raw material for acetic acid (carbon monoxide).

      Consequently, overall segment sales amounted to ¥40,316 million (down 9.4% year-on-year). Operating income was

      ¥4,403 million (down 51.5% year-on-year), due to 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 decreaseｄ due to a decrease in sales volume of polyacetal resin for industrial equipment and other uses, as well as the impact of foreign exchange rates, despite strong sales for electronic materials.

      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 ¥59,939 million (down 4.4% year-on-year). Operating income was

      ¥6,529 million (down 15.4% year-on-year) due to an increase in depreciation expenses, the impact of foreign exchange rates, and the fact that the previous period was before the transfer of the resin compound business.

      [Other Businesses]

      In the other businesses, sales revenue decreased slightly due to differences in the sales mix of other subsidiaries, despite an increase in sales of the membrane business, including membrane modules for water treatment.

      Consequently, overall segment sales amounted to 1,260 million (down 0.6% year-on-year). Operating income was 125 million (up 14.7% year-on-year).

   2. Overview of financial position for the period under review

   Total assets as of June 30, 2025, were 839,853 million, an increase of 26,022 million from March 31, 2025, due to increases in inventories and property, plant and equipment.

   Total liabilities were 461,741 million, an increase of 22,947 million from March 31, 2025, due to an increase in longterm borrowings.

   Total net assets were 378,111 million. Total shareholders' equity, which is calculated as the net assets minus non-controlling interests, was 362,668 million. Shareholders' equity ratio was 43.2%.

5. Consolidated Financial Statements

(1) Consolidated Balance Sheets

Assets

Current assets

(Unit: Millions of Yen)

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

Non-current assets

Intangible assets