Osaka Organic Chemical Industry Ltd.TSE: 4187

Consolidated Financial Results for the Three Months Ended February 28, 2025（April 11, 2025 312 KB）

Apr 11, 2025 at 7:59 AM UTC · Issued by Osaka Organic Chemical Industry Ltd.

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results

for the Three Months Ended February 28, 2025

[Japanese GAAP]

April 11, 2025

Company name: OSAKA ORGANIC CHEMICAL INDUSTRY LTD.

Listing: Tokyo Stock Exchange

Securities code: 4187

URL: https://www.ooc.co.jp/

Representative: Masayuki Ando

Representative Director and CEO

Inquiries: Soichi Honda

Director, Corporate Officer, General Manager of Administration

Division

Telephone: +81-6-6264-5071

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Three Months Ended February 28, 2025 (December 1, 2024 to February 28, 2025)

(1) Consolidated Operating Results

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

February 28, 2025

8,516

20.5

1,365

135.2

1,480

131.3

1,035

71.6

February 29, 2024

7,066

2.8

580

(42.3)

640

(38.4)

603

(17.0)

(Note) Comprehensive income:

Three months ended February 28, 2025:

835 million

[

(28.3) %]

Three months ended February 29, 2024:

1,164 million

[

24.4%]

Basic earnings

Diluted earnings per

per share

Three months ended

Yen

February 28, 2025

49.96

February 29, 2024

28.47

(2) Consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

As of

Millions of yen

February 28, 2025

54,467

44,003

79.4

November 30, 2024

59,964

46,139

75.8

(Reference) Equity: As of

February 28, 2025:

43,273 million

As of

November 30, 2024:

45,435 million

2. Dividends

					Annual dividends

		1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end

		Yen		Yen	Yen		Yen	Yen
Fiscal year ended November 30, 2024		-		32.00	-		34.00	66.00
Fiscal year ending November 30, 2025		-

Fiscal year ending November 30, 2025				34.00	-		34.00	68.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently:	None
(Note) Breakdown of the 1st quarter dividend for the fiscal year ending November 30, 2025 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2025(December 1, 2024 to November 30, 2025) (Percentages indicate year-on-year changes.)

		Net sales			Operating profit	Ordinary profit	Profit attributable	Basic earnings
				to owners of parent	per share

		Millions of		%		Millions of	%	Millions of	%	Millions of	%	Yen
		yen			yen	yen	yen
Six months ending May
	16,800		9.5		2,500	34.4	2,600	30.7	1,700	(15.8)	81.00
31, 2025

Full year		34,000		4.0		5,000	8.5	5,200	9.4	3,500	(13.5)	165.50
(Note) Revision to the financial results forecast announced most recently:	None
* Notes:
(1) Significant changes in the scope of consolidation during the period:	Yes
Newly included:	1	(Company name: OSAKA ORGANIC CHEMICAL INDUSTRY KOREA LTD.	)
Excluded:	-	(Company name: -							)

Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2. Changes in accounting policies due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None

(Note) Please refer to "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies" on page 8 of the attached materials for details.

Number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

February 28, 2025:	22,410,038	shares
November 30, 2024:	22,410,038	shares
2) Number of treasury shares at the end of the period:
February 28, 2025:	2,083,311	shares
November 30, 2024:	1,283,303	shares

3) Average number of shares outstanding during the period:
Three months ended February 28, 2025:	20,726,729	shares
Three months ended February 29, 2024:	21,195,658	shares

Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None
Proper use of earnings forecasts, and other special matters
The forward-looking statements in this document, including forecasts of financial results, are based on information currently available to the Company and are subject to a number of uncertainties. Accordingly, actual results may differ from the forecasts due to changes in business conditions and other factors. Please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements" on page 3 of the attached materials for matters related to forecasts of financial results.

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/25

Contents of Attachments

1. Overview of Results of Operations	2
(1)	Results of Operations for the Period under Review	2
(2)	Financial Position for the Period under Review	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheets	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
(3)	Notes to Quarterly Consolidated Financial Statements	8
	Going Concern Assumption	8
	Notes to Quarterly Consolidated Statements of Cash Flows	8
	Significant Changes in Shareholders' Equity	8
	Changes in Scope of Consolidation or Scope of Application of Equity Method	8
	Changes in Accounting Policies	8
	Segment and Other Information	9
	Significant Subsequent Events	10

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/25

1. Overview of Results of Operations

(1) Results of Operations for the Period under Review

During the three months ended February 28, 2025, the Japanese economy continued to recover moderately on the back of personal consumption and capital investment picking up. However, the outlook remains uncertain due to a risk of downward pressure on the Japanese economy stemming from price increases, trade and other policy trends in the U.S., and conditions surrounding the Middle East region.

Under these circumstances, we launched a new medium-term management plan Progress & Development 2030 (P&D 2030) for the period from the fiscal year ended November 30, 2024 to the fiscal year ending November 30, 2030. Based on our Group management philosophy, P&D 2030 has set a management vision of "providing value to the global market as a leading company in specialty acrylic acid esters." Under this vision, we will promote sustainable management that takes ESG into account, aiming to increase corporate value and achieve sustainable growth.

In the Chemical Products Business, we worked to improve profit ratios mainly by integrating and closing products and improving production efficiency, and focused on expanding sales of environmentally friendly products, such as those derived from biomass. In the Electronics Materials Business, the Group worked to accelerate the development of cutting-edge semiconductor materials and to develop new applications for photoresist materials. In the Specialty Chemicals Business, the Group worked to strengthen the overseas expansion of cosmetic raw materials and expand sales of high-purity special solvents. In the current fiscal year, following a subsidiary in South Korea established last year, we are planning to establish a sales base in North America, and we will work to strengthen our overseas sales system by acquiring new customers and cultivating new markets.

As a result, for the three months ended February 28, 2025, net sales were 8,516 million yen (up 20.5% year on year), operating profit was 1,365 million yen (up 135.2% year on year), ordinary profit was 1,480 million yen (up 131.3% year on year), and profit attributable to owners of parent was 1,035 million yen (up 71.6% year on year).

1)Business results by segment are explained below (excluding inter-segment transactions). Chemical Products Business

In the Chemical Products Business, sales of automotive coatings were flat in the acrylic acid ester group, but sales for display adhesives increased significantly, along with increased sales for UV inkjet inks. In the methacrylate ester group, sales were weak. As a result, net sales were 3,316 million yen (up 22.7% year on year) and segment profit was 527 million yen (up 102.4% year on year).

Electronic Materials Business

In the Electronic Materials Business, sales of raw materials for cutting-edge EUV resists decreased in the semiconductor materials group, but sales of raw materials for ArF resists, which are the Company's mainstay, recovered, and Group-wide sales increased. In the display materials group, sales for insulating films for touch panels were strong, and sales for the group as a whole increased. In addition, sales of other groups were flat. As a result, net sales were 3,724 million yen (up 20.2% year on year) and segment profit was 530 million yen (up 202.6% year on year).

Specialty Chemicals Business

In the Specialty Chemicals Business, sales were flat in the cosmetics materials group. In the functional materials group, sales remained solid. Sales of high-purity specialty solvents at subsidiaries remained strong. As a result, net sales were 1,476 million yen (up 16.8% year on year) and segment profit was 315 million yen (up 138.1% year on year).

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/25

(2) Financial Position for the Period under Review

Total assets at the end of the first quarter of the current fiscal year decreased by 5,497 million yen from the end of the previous fiscal year to 54,467 million yen. This was mainly attributable to a decrease of 2,921 million yen in cash and deposits, a decrease of 1,725 million yen in notes and accounts receivable-trade and contract assets, mainly due to the last day of the previous fiscal year being a holiday for financial institutions, a decrease of 221 million yen in finished goods, and a decrease of 281 million yen investment securities.

Liabilities at the end of the first quarter of the current fiscal year decreased by 3,360 million yen from the end of the previous fiscal year to 10,463 million yen. This was mainly due to a decrease of 1,714 million yen in notes and accounts payable - trade, mainly due to the last day of the previous fiscal year being a holiday for financial institutions, a decrease of 523 million yen in accounts payable - other, and a decrease of 407 million yen in income taxes payable.

Net assets at the end of the first quarter of the current fiscal year decreased by 2,136 million yen from the end of the previous fiscal year to 44,003 million yen. This was mainly due to an increase of 309 million yen in retained earnings, an increase of 2,224 million yen in treasury shares, and a decrease of 211 million yen in valuation difference on available-for-sale securities.

Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements The consolidated financial results forecast announced on January 9, 2025, remain unchanged.

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/25

2. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly Consolidated Balance Sheets

				(Thousands of yen)
			As of November 30, 2024	As of February 28, 2025

Assets
	Current assets
		Cash and deposits	13,047,614	10,126,298
		Notes and accounts receivable - trade, and contract	11,252,037	9,526,371
		assets

		Electronically recorded monetary claims -	374,384	394,629
		operating

		Finished goods	4,799,006	4,577,633

		Work in process	2,070,025	2,067,873
		Raw materials and supplies	1,989,293	1,982,533

		Other	773,069	777,723
		Allowance for doubtful accounts	(18,415)	(14,176)

		Total current assets	34,287,015	29,438,887
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	8,327,194	8,183,923
		Machinery, equipment and vehicles, net	7,530,545	7,319,999
		Land	2,172,476	2,172,476
		Construction in progress	94,679	38,330
		Other, net	290,291	317,537
		Total property, plant and equipment	18,415,187	18,032,266
		Intangible assets
		Goodwill	23,333	18,333
		Other	50,538	46,700
		Total intangible assets	73,871	65,033
		Investments and other assets

		Investment securities	6,294,854	6,013,701
		Retirement benefit asset	758,144	766,761

		Deferred tax assets	1,927	1,496
		Other	133,712	148,955

		Total investments and other assets	7,188,638	6,930,915
		Total non-current assets	25,677,697	25,028,215
	Total assets	59,964,713	54,467,103

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/25

				(Thousands of yen)
			As of November 30, 2024	As of February 28, 2025

Liabilities
	Current liabilities
		Notes and accounts payable - trade	5,924,864	4,210,272
		Current portion of long-term borrowings	2,188,610	2,104,453
		Accounts payable - other	1,524,265	1,000,978
		Income taxes payable	895,161	487,951
		Provision for bonuses	-	263,716
		Provision for bonuses for directors (and other	42,210	8,805
		officers)

		Other	1,154,766	600,754
		Total current liabilities	11,729,879	8,676,931
	Non-current liabilities
		Long-term borrowings	1,337,923	1,200,459
		Deferred tax liabilities	634,911	472,849
		Provision for share awards for directors (and other	35,086	-
		officers)

		Other	86,937	113,522
		Total non-current liabilities	2,094,858	1,786,831
	Total liabilities	13,824,737	10,463,763
Net assets

	Shareholders' equity
		Share capital	3,600,295	3,600,295

		Capital surplus	3,513,436	3,513,443
		Retained earnings	38,727,951	39,037,663

		Treasury shares	(3,129,535)	(5,353,564)
		Total shareholders' equity	42,712,148	40,797,837
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	2,344,090	2,132,130
		securities

		Foreign currency translation adjustment	132,235	99,458
		Remeasurements of defined benefit plans	246,812	244,313

		Total accumulated other comprehensive income	2,723,138	2,475,902
	Non-controlling interests	704,689	729,599
	Total net assets	46,139,976	44,003,339
Total liabilities and net assets	59,964,713	54,467,103

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/25

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)

		(Thousands of yen)
	For the three months	For the three months
	ended February 29, 2024	ended February 28, 2025

Net sales	7,066,021	8,516,926
Cost of sales	5,282,984	5,846,560
Gross profit	1,783,036	2,670,366
Selling, general and administrative expenses	1,202,420	1,304,495
Operating profit	580,615	1,365,870
Non-operating income

Interest income	601	2,771
Dividend income	33,947	36,842

Foreign exchange gains	17,549	-
Insurance claim income	-	97,183

Other	11,105	28,683
Total non-operating income	63,203	165,480
Non-operating expenses
Interest expenses	2,314	2,406
Foreign exchange losses	-	45,193
Commission for purchase of treasury shares	602	2,400
Loss on investments in investment partnerships	591	506
Other	-	0
Total non-operating expenses	3,508	50,507
Ordinary profit	640,311	1,480,843
Extraordinary income
Gain on sale of investment securities	273,751	-
Total extraordinary income	273,751	-
Extraordinary losses
Loss on retirement of non-current assets	102	199
Total extraordinary losses	102	199
Profit before income taxes	913,960	1,480,644
Income taxes - current	409,192	466,937
Income taxes - deferred	(116,318)	(68,048)
Total income taxes	292,873	398,888
Profit	621,086	1,081,755
Profit attributable to non-controlling interests	17,675	46,306
Profit attributable to owners of parent	603,410	1,035,449

OSAKA ORGANIC CHEMICAL INDUSTRY LTD. (4187) Financial Results for the First Quarter of FY11/25

Quarterly Consolidated Statements of Comprehensive Income (For the three months)

			(Thousands of yen)
		For the three months	For the three months
		ended February 29, 2024	ended February 28, 2025

Profit	621,086	1,081,755
Other comprehensive income
	Valuation difference on available-for-sale securities	526,368	(211,286)
	Foreign currency translation adjustment	14,415	(32,776)
	Remeasurements of defined benefit plans, net of tax	2,224	(2,559)
	Total other comprehensive income	543,008	(246,623)

Comprehensive income	1,164,094	835,132
Comprehensive income attributable to
	Comprehensive income attributable to owners of	1,145,212	788,214
	parent

	Comprehensive income attributable to non-controlling	18,881	46,917
	interests

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