Mitsui Chemicals : 【Timely Disclosure】Q3 FY2025 Consolidated Financial Results Summary

Feb 5, 2026

Mitsui Chemicals, Inc.

1. Summary of Operating Results （Unit : Billions of Yen)

   		3rd Q of FY2024	3rd Q of FY2025	Incr. (Decr.)
   Sales revenue		1,338.8	1,218.7	(120.1)
   Operating income before special items		75.8	68.0	(7.8)
   Operating income		66.9	54.6	(12.3)
   Net income		46.3	33.4	(12.9)
   Net income attributable to owners of the parent		37.7	22.6	(15.1)
   Exchange rate	Yen / US$	153	149	(4)
   Domestic standard naphtha price	Yen / KL	76,400	65,000	(11,400)

   FY2024	Outlook for FY2025 (announced Feb. 5)
   	FY2025	Incr. (Decr.)
   1,809.2	1,675.0	(134.2)
   101.0	103.0	2.0
   78.3	87.0	8.7
   42.6	56.0	13.4
   32.2	42.0	9.8
   153	150	(3)
   75,600	65,000	(10,600)

2. Sales Revenue and Operating Income before Special Items by Business Segment ※1

   ･Sales revenue

   		3rd Q of FY2024	3rd Q of FY2025	Incr. Breakdown
   				(Decr.)	Volume	Price
   	Life & Healthcare Solutions	172.8	174.1	1.3	6.9	(5.6)
   	Mobility Solutions	416.5	382.8	(33.7)	(14.5)	(19.2)
   	ICT Solutions	209.7	208.4	(1.3)	1.6	(2.9)
   Specialty chemicals domains		799.0	765.3	(33.7)	(6.0)	(27.7)
   Basic & Green Materials		528.8	442.5	(86.3)	(56.5)	(29.8)
   Others		11.0	10.9	(0.1)	-	(0.1)
   Total		1,338.8	1,218.7	(120.1)	(62.5)	(57.6)

   ･Operating income (loss) before special items

   （Unit : Billions of Yen)

   FY2024	Outlook for FY2025 (announced Feb. 5)
   	FY2025	Incr. (Decr.)
   251.7	270.0	18.3
   555.1	510.0	(45.1)
   277.6	280.0	2.4
   1,084.4	1,060.0	(24.4)
   710.0	600.0	(110.0)
   14.8	15.0	0.2
   1,809.2	1,675.0	(134.2)

   （Unit : Billions of Yen)

   		3rd Q of FY2024	3rd Q of FY2025	Incr. Breakdown
   				(Decr.)	Volume	Price ※2	Fixed Costs etc.
   	Life & Healthcare Solutions	20.5	17.0	(3.5)	0.8	(2.0)	(2.3)
   	Mobility Solutions	43.2	37.5	(5.7)	(2.7)	(3.1)	0.1
   	ICT Solutions	21.1	28.5	7.4	5.0	1.4	1.0
   Specialty chemicals domains		84.8	83.0	(1.8)	3.1	(3.7)	(1.2)
   Basic & Green Materials		(7.3)	(12.8)	(5.5)	(0.9)	(8.5)	3.9
   Others		(1.8)	(0.1)	1.7	-	-	1.7
   Adjustment		0.1	(2.1)	(2.2)	-	-	(2.2)
   Total		75.8	68.0	(7.8)	2.2	(12.2)	2.2

   FY2024	Outlook for FY2025 (announced Feb. 5)
   	FY2025	Incr. (Decr.)
   34.1	35.5	1.4
   55.1	53.0	(2.1)
   26.7	35.5	8.8
   115.9	124.0	8.1
   (11.4)	(15.0)	(3.6)
   (2.6)	(2.5)	0.1
   (0.9)	(3.5)	(2.6)
   101.0	103.0	2.0

   ※1 In accordance with the organizational reform implemented on April 1, 2025, the Mitsui Chemicals group has revised the segment classifications for Mitsui Chemicals Asahi Life Materials Co., Ltd. and certain other consolidated subsidiaries.

   Accordingly, the results for the same period of the previous year have been reclassified into the post-revision reportable segment classifications.

   ※2 Price includes both selling and purchasing price variances.

3. Summary of Statement of Financial Position （Unit : Billions of Yen)

   	Assets
   	As of Mar. 31, 2025	As of Dec. 31 2025	Incr. (Decr.)
   Current assets	1,041.2	1,015.2	(26.0)
   Property, plant and equipment & right-of-use assets	669.2	721.1	51.9
   Goodwill and intangible assets	87.3	97.9	10.6
   Other non-current assets	356.3	374.9	18.6
   Total assets	2,154.0	2,209.1	55.1

   	Liabilities and Equity
   	As of Mar. 31, 2025	As of Dec. 31 2025	Incr. (Decr.)
   Interest-bearing debt	791.7	814.8	23.1
   Other liabilities	391.7	389.1	(2.6)
   Equity attributable to owners of the parent	848.3	877.4	29.1
   Non-controlling interests	122.3	127.8	5.5
   Total liabilities and equity	2,154.0	2,209.1	55.1

   ［ Net D/E Ratio ］ 0.73 0.70 (0.03)

4. Summary of Statement of Cash Flows （Unit : Billions of Yen)

   	3rd Q of FY2024	3rd Q of FY2025	Incr. (Decr.)
   Cash flows from operating activities	141.4	141.0	(0.4)
   Cash flows from investing activities	(80.8)	(97.0)	(16.2)
   Free cash flows	60.6	44.0	(16.6)
   Cash flows from financing activities	(90.5)	(31.0)	59.5
   Others	5.8	8.6	2.8
   Net incr.(decr.) in cash and cash equivalents	(24.1)	21.6	45.7
   Cash and cash equivalents at the end of period	186.2	192.2	6.0

   FY2024	Outlook for FY2025 (announced Feb. 5)
   	FY2025	Incr. (Decr.)
   200.5	200.0	(0.5)
   (165.0)	(155.0)	10.0
   35.5	45.0	9.5
   (74.4)	(45.0)	29.4
   (0.8)	0.0	0.8
   (39.7)	0.0	39.7
   170.6

5. Dividends

   	Annual Dividends per Share (yen)
   	1st Q	Interim (2nd Q)	3rd Q	Year-end (4th Q)	Annual Total
   FY2024 Result	-	75.00	-	75.00	150.00
   FY2025 Result/Forecast	-	75.00	-	37.50	-

   On January 1, 2026, Mitsui Chemicals, Inc. (hereinafter the "Company") conducted a two-for-one stock split of its common shares. The above dividends per share for the FY2024 and the second quarter of the FY2025 are the amounts before the stock split.

   The forecast total annual dividend per share for the FY2025 is not stated because the interim dividend and the year-end dividend cannot be simply added together due to the stock split. If the stock split is not taken into account, the forecast year-end dividend per share for FY2025 would be 75.00 yen, and the total annual dividend would be 150.00 yen.

6. Number of Shares Outstanding (common stock)

※3rd Q of FY2024

On January 1, 2026, the Company conducted a two-for-one stock split of its common shares.

The above number of Shares Outstanding (common stock) has been calculated assuming that the stock split had been conducted at the beginning of the FY2024.

1. Operating Results
   1. Overview

      In the fiscal period under review (the nine-month period from April 1, 2025 to December 31, 2025, hereinafter the "third quarter"), economic recovery continued moderately worldwide. Meanwhile, the pace of recovery in some countries and regions has slowed amid weak demand and U.S. trade policies.

      In Japan, economic activity has continued to recover with the improvement of employment and income environment. However, uncertainty arising from U.S. trade policies persists.

      The Mitsui Chemicals Group (hereinafter the "Group") reported the operating results for the third quarter as follows. The Group employs operating income before special items which stands for operating income excluding non-recurring items (e.g., losses resulting from withdrawing from and/or downsizing businesses) as a management indicator.

      (Billions of Yen)

      	Sales Revenue	Operating Income before Special Items	Operating Income	Net Income Attributable to Owners of the Parent
      Third Quarter	1,218.7	68.0	54.6	22.6
      Same period of previous fiscal year	1,338.8	75.8	66.9	37.7
      Difference	(120.1)	(7.8)	(12.3)	(15.1)
      Difference (%)	(9.0)	(10.3)	(18.3)	(40.1)

      Sales revenue was 1,218.7 billion yen, a decrease of 120.1 billion yen, or 9.0%, year on year. This result was mainly due to the decrease in selling prices, which was resulting from the fall in raw material prices, such as naphtha, and the decrease in sales mainly in the Basic & Green Materials segment. Operating income before special items was 68.0 billion yen, a decrease of 7.8 billion yen, or 10.3%, year on year. This result was mainly due to the worsened inventory revaluation gain and loss resulting from the fall in raw material prices, such as naphtha. Operating income was 54.6 billion yen, a decrease of 12.3 billion yen, or 18.3%, year on year. This result was mainly due to the decrease in operating income before special items and the recognition of an impairment loss on an investment accounted for using equity method to operate phenol businesses in China. Financial income/expenses worsened 2.2 billion yen year on year to a 3.1 billion yen loss.

      As a result of the aforementioned factors, income before income taxes amounted to 51.5 billion yen, a decrease of 14.5 billion yen, or 21.9%, year on year.

      Net income attributable to owners of the parent after accounting for income taxes and non-controlling interests was 22.6 billion yen, a decrease of 15.1 billion yen, or 40.1%, year on year. Basic earnings per share for the period amounted to 60.07 yen. On January 1, 2026, Mitsui Chemicals, Inc. (hereinafter the "Company") conducted a two-for-one stock split of its common shares.
   2. Results by Business Segment

   The status of each segment during the third quarter is as follows.

   In accordance with the organizational reform implemented on April 1, 2025, the Group has revised the segment classifications for Mitsui Chemicals Asahi Life Materials Co., Ltd. and certain other consolidated subsidiaries. Accordingly, the results for the same period of the previous year have been reclassified into the post-revision reportable segment classifications.

   Life & Healthcare Solutions

   Sales revenue increased 1.3 billion yen compared with the corresponding period of the previous fiscal year to 174.1 billion yen and comprised 14% of total sales. On the other hand, operating income before special items decreased 3.5 billion yen to 17.0 billion yen year on year. This result was mainly due to the impact of a halt in production facilities at the Omuta Works, despite healthy sales in vision care materials and agrochemicals.

   In vision care materials, sales were healthy for ophthalmic lens materials. On the other hand, the halt in production facilities at the Omuta Works had a negative impact on fixed costs, etc.

   In oral care materials, sales remained at the same level as the corresponding period of the previous fiscal year.

   In agrochemicals, sales were healthy.

   Mobility Solutions

   Sales revenue decreased 33.7 billion yen compared with the corresponding period of the previous fiscal year to 382.8 billion yen and comprised 32% of total sales. This was mainly due to the transfer of the Group's subsidiary shares. Operating income before special items decreased 5.7 billion yen to 37.5 billion yen year on year. This was mainly due to the decrease in sales of polypropylene compounds caused by the impact of U.S. tariffs, a shortage of semiconductor supplies, and reduced production by various companies engaged in OEM following a fire at an aluminum plant in North America. It was also due to the worsened terms of trade by exchange rate differences.

   In elastomers, sales remained at the same level as the corresponding period of the previous fiscal year. In addition, terms of trade worsened mainly due to exchange rate differences.

   In polypropylene compounds, sales decreased compared to the corresponding period of the previous fiscal year. Meanwhile, the revision of prices contributed to an improvement in the terms of trade despite the adverse impact of exchange rate differences.

   In solutions business, sales decreased compared to the corresponding period of the previous fiscal year.

   ICT Solutions

   Sales revenue decreased 1.3 billion yen compared with the corresponding period of the previous fiscal year to 208.4 billion yen and comprised 17% of total sales. This was mainly due to the transfer of the Group's subsidiary shares. On the other hand, operating income before special items increased 7.4 billion yen to 28.5 billion yen year on year. This was mainly due to healthy sales in semiconductor & optical materials and ICT films & sheets.

   In semiconductor & optical materials, sales were healthy due to a recovery in demand in the semiconductor market.

   In coatings & engineering materials, sales remained at the same level as the corresponding period of the previous fiscal year.

   In ICT films & sheets, sales were healthy due to a recovery in demand in the semiconductor market.

   In nonwovens, sales decreased compared to the corresponding period of the previous fiscal year.

   Basic & Green Materials

   Sales revenue decreased 86.3 billion yen compared with the corresponding period of the previous fiscal year to 442.5 billion yen and comprised 36% of total sales. Operating loss before special items increased 5.5 billion yen, resulting in 12.8 billion yen. This was mainly due to the worsened inventory revaluation gain and loss resulting from the falling raw material prices, such as naphtha, and deteriorating market conditions, despite the improvements in fixed costs, etc. from business restructuring.

   Sales of phenols decreased compared with the same period of the previous fiscal year. In polyolefin, price revisions have improved terms of trade.

   Naphtha cracker operating rates remained low due to a decrease in demand for downstream products and the scheduled major maintenance. Others

   Sales revenue decreased 0.1 billion yen compared with the corresponding period of the previous fiscal year to 10.9 billion yen and comprised 1% of total sales. On the other hand, operating loss before special items improved 1.7 billion yen to 0.1 billion yen year on year.

2. Financial Position

1. Status of Assets, Liabilities and Net Assets Total assets at the end of the third quarter stood at 2,209.1 billion yen, an increase of 55.1 billion yen compared with the previous fiscal year-end. Total liabilities at the end of the third quarter increased 20.5 billion yen compared with the previous fiscal year-end to 1,203.9 billion yen. Interest-bearing debt amounted to 814.8 billion yen, an increase of 23.1 billion yen compared with the previous fiscal year-end. As a result, the interest-bearing debt ratio was 36.9%, an increase of 0.1 percentage point. Total equity was 1,005.2 billion yen, an increase of 34.6 billion yen compared with the previous fiscal year-end. The ratio of equity attributable to owners of the parent was 39.7%, an increase of 0.3 percentage point.

   Accounting for the aforementioned factors, the net debt-equity ratio stood at 0.70 at the end of the third quarter, a 0.03 percentage point decrease from the previous fiscal year-end.

2. Cash Flow Status

Cash and cash equivalents (hereinafter "net cash") at the end of the third quarter increased

21.6 billion yen to 192.2 billion yen compared with the previous fiscal year-end.

Net cash provided by operating activities decreased 0.4 billion yen to 141.0 billion yen, compared with the same period of the previous fiscal year.

Net cash used in investing activities increased 16.2 billion yen to 97.0 billion yen, compared with the same period of the previous fiscal year, due to an increase in purchase of property, plant and equipment.