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
Presentation Materials for Financial Results
for the First Quarter of the Fiscal Year
Ending November 30, 2025
(December 1, 2024 – February 28, 2025)
OSAKA ORGANIC CHEMICAL INDUSTRY LTD.
1Q FY11/25
April 11, 2025
(Tokyo Stock Exchange, Prime Market: 4187)
■1Q FY11/2025 Financial Summary
Operating
environ-
ment
The economy continues to recover moderately on the back of personal consumption and capital investment picking up, but the outlook remains uncertain due to a risk of downward pressure on the Japanese economy stemming from price increases and policy trends in the U.S.
Net sales | Net sales increased year on year in each business of Chemical Products, Electronics Materials and Specialty Chemicals. As a result, net sales | |
increased by 20.5% year on year to 8,516 million yen. | ||
Operating | Operating profit increased by 135.2% year on year to 1,365 million yen due to factors such as a decrease in depreciation, in addition to a | |
profit | significant increase in net sales. | |
(Millions of yen) |
1Q FY11/24 results | 1Q FY11/25 results | YoY change | ||
Amount | % | |||
Net sales | 7,066 | 8,516 | +1,450 | +20.5％ |
Operating profit | 580 | 1,365 | +785 | +135.2％ |
Ordinary profit | 640 | 1,480 | +840 | +131.3％ |
Profit* | 603 | 1,035 | +432 | +71.6％ |
Price of naphtha in Japan | 74,000 | 75,000 | — | — |
(Yen/KL) (Our estimated value) | ||||
Exchange rate (Yen/USD) | 146 | 154 | — | — |
Comparison with 1H forecast
First half | Progress rate |
forecast | |
16,800 | 50.7% |
2,500 | 54.6% |
2,600 | 57.0% |
1,700 | 60.9% |
— | — |
— | — |
*Profit attributable to owners of parent | 2 |
■Factors Affecting Operating Profit
Increase/ decrease factors
Net sales significantly increased centering on chemical products and electronics materials. While both the cost of sales and selling, general and administrative expenses increased, a decrease in depreciation and inventory valuation contributed to an increase in profit. As a result, operating profit increased by 0.78 billion yen.
Increase in net sales
+¥1.45 billion
Increase in cost of sales
+¥0.56 billion
Increase in SG&A
+¥0.10 billion
Chemical products | +¥0.61 billion |
Electronics materials | +¥0.62 billion |
Specialty chemicals | +¥0.21 billion |
Increase in cost of raw materials
Impact of inventory valuation Decrease in depreciation Increase in labor costs
+¥0.57 billion -¥0.07billion -¥0.04billion +¥0.03 billion Others
Decrease in depreciation | -¥0.03 billion |
Increase in personnel expenses | +¥0.03 billion |
Increase in transaction fees | +¥0.06 billion |
Others |
0.00
Increase in | Blue/↑: Positive factors | |||
cost of sales | Increase in | Red/↓: Negative factors | ||
SG&A | ||||
Increase in | ||||
net sales | ||||
Operating profit | Operating profit | +¥0.78 billion | Operating profit | |
¥1.36 billion | ||||
¥0.58 billion |
1Q FY11/24 | Change in net sales | Change in cost of sales | Change in SG&A | 1Q FY11/25 | 3 | ||
■Chemical Products Business | |||||||
1Q FY11/25 | FY11/25 | Progress rate | Net sales / Operating margin | ||||
Net sales | Full-year forecast | vs Full-year forecast | |||||
¥ 3.31billion | ¥ 12.90billion | 25.7% | (Billions of | Net sales | (%) | ||
Operating margin (right axis) | |||||||
yen) 4.0 | 20 | ||||||
●Operating environment | 3.28 | 3.37 | 3.31 | ||||
・Automobile production showed growth locally in China and India, but | 3.14 | ||||||
remained somewhat weak in Japan, Europe and the U.S. | 2.70 | 15.7 | 15.8 | 15.9 | |||
・In display-related products, demand was solid mainly due to rush | |||||||
14.2 | |||||||
demand backed by subsidy policies in China and to avoid U.S. tariffs. | |||||||
●OOC | 10 | ||||||
9.6 | |||||||
・Sales of products for automotive coatings were flat year on year. | |||||||
・Sales of products for display adhesives and materials for UV inkjet | |||||||
inks remained strong. | |||||||
●Market risks | |||||||
・Impacts of U.S. tariff policies. | 0.0 | 0 | |||||
・Higher cost of raw materials derived from natural resources. | |||||||
・Rapid fluctuations in exchange rates. |
4
■Electronics Materials Business | ||||||
1Q FY11/25 | FY11/25 | Progress rate | Net sales / Operating margin | |||
Net sales | Full-year forecast | vs Full-year forecast | ||||
¥ 3.72billion | ¥ 15.50billion | 24.0% | (Billions of | Net sales | (%) | |
Operating margin (right axis) | ||||||
yen)5.0 | 19.5 | 20 | ||||
●Operating environment | ||||||
・The semiconductor market continued to be on a recovery trend, driven | 4.03 | 3.72 | ||||
by cutting-edge materials. | 3.56 | 3.67 | ||||
・The display business is shifting from LCD to OLED. | 3.09 | 14.2 | ||||
●OOC | 13.2 | 11.9 | ||||
10 | ||||||
・Sales of our mainstay ArF resist raw materials continued recovering, | ||||||
showing a significant increase year on year, despite a slight decrease | ||||||
quarter on quarter. | ||||||
・Sales of materials for EUV resists swing wildly due to many products | 5.7 | |||||
being developed, but demand continued to be strong. | ||||||
・The display materials group remained solid. | ||||||
●Market risks | 0.0 | 0 | ||||
・Escalation of the U.S.-China economic confrontation. | ||||||
・Progress in in-house production of semiconductors in China. | 5 | |||||
■Specialty Chemicals Business | |||||||
1Q FY11/25 | FY11/25 | Progress rate | Net sales / Operating margin | ||||
Net sales | Full-year forecast | vs Full-year forecast | |||||
¥ 1.47billion | ¥ 5.60billion | 26.4% | (Billions of | Net sales | (%) | ||
Operating margin (right axis) | |||||||
yen)2.0 | 30 | ||||||
●Operating environment | 1.72 | ||||||
・The domestic cosmetics market remained steady. | |||||||
・In China, in addition to the economic slow down, the competitive | 1.26 | 1.42 | 1.39 | 1.47 | |||
environment is changing due to the rise of local manufacturers. | 21.4 | 20 | |||||
18.3 | |||||||
●OOC | 15.7 | ||||||
・Sales of cosmetics raw materials remained steady, but decreased | |||||||
10 | |||||||
quarter on quarter mainly due to seasonal factors. | 10.5 | ||||||
・Sales of high-purity specialty solvents produced by a subsidiary | |||||||
remained strong. | 7.1 | ||||||
●Market risks | 0.0 | 0 | |||||
・Delayed market recovery in China. |
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■Capital Expenditures, Depreciation, R&D Expenses
Summary
In 2023, we invested 8.66 billion yen in equipment such as semiconductor materials manufacturing facilities.
Depreciation and amortization expenses have been decreasing since its peak in 2024 and amounted to 0.72 billion yen in the first quarter of FY2025 (0.80 billion yen in the first quarter of FY2024).
5,000 |
4,500 |
4,000 |
3,500 |
3,000 |
2,500 |
2,000 |
1,500 |
1,000 |
500 |
0 |
8,666 | Millions of yen | ||||||
Capital expenditures | |||||||
Depreciation | |||||||
R&D expenses | 3,350 | ||||||
3,080 | |||||||
2,452 | 2,448 | 2,710 | |||||
2,304 | 2,330 | ||||||
1,646 | 1,843 | 1,912 | |||||
1,436 | |||||||
1,289 | 1,233 | ||||||
1,169 | |||||||
726 | *(Dotted line: Full-year forecast) | ||||||
342 | 451 | ||||||
FY11/21 | FY11/22 | FY11/23 | FY11/24 | FY11/25 | 1Q |
7
The earnings forecasts and business plans described in this material are current earnings forecasts and plans and have been determined based on currently available information. Therefore, actual results may differ significantly due to various factors and risks, and we do not make promises or guarantees.
OSAKA ORGANIC CHEMICAL INDUSTRY LTD.
Inquiries
Administration Division, IR&PR Group
TEL: +81-6-6264-5071 (main switchboard)