Consolidated Financial Results for the Nine Months Ended December 31, 2025

Company name: Sanyo Chemical Industries, Ltd.

Listing: Tokyo Stock Exchange

Securities code: 4471

URL: https://www.sanyo-chemical.co.jp/ Representative: Akinori Higuchi, President & CEO

February 9, 2026

Inquiries: Kenichi Nishimura, Director & Executive Officer, In charge of General Affairs TEL: +81-75-541-4312

Scheduled date to commence dividend payments: -Preparation of supplementary material on financial results: None Holding of financial results presentation meeting: None

(Figures are rounded down to the nearest million yen)

1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2026 (from April 1, 2025 to December 31, 2025)

   1. Consolidated operating results (cumulative) (% indicates year-on-year changes)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Nine months ended December 31, 2025	Millions of yen 96,600 111,108	% (13.1)	Millions of yen 7,558 6,872	% 10.0	Millions of yen 9,393 8,588	% 9.4	Millions of yen 12,807 3,640	% 251.8
      December 31, 2024		(9.0)		62.9		24.8		22.1

      Note: Comprehensive income: Nine months ended December 31, 2025 ¥21,296 million [–%]

      Nine months ended December 31, 2024 ¥1,681 million [(56.8)%]

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      December 31, 2025	578.97	-
      December 31, 2024	164.70	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of	Millions of yen 193,209 176,366	Millions of yen 155,484 138,302	%	Yen
   December 31, 2025			78.9	6,887.33
   March 31, 2025			76.8	6,119.90

   Reference: Equity: As of December 31, 2025 ¥152,358 million

   As of March 31, 2025 ¥135,385 million

2. Cash dividends

   	Cash dividends per share
   	1Q (as of June 30)	2Q (as of Sept. 30)	3Q (as of Dec. 31)	4Q (as of Mar. 31)	Total
   Fiscal year ended March 31, 2025 Fiscal year ending March 31, 2026	Yen - -	Yen 85.00 85.00	Yen - -	Yen 85.00	Yen 170.00
   Fiscal year ending March 31, 2026 (Forecast)				85.00	170.00

   Note: Revisions of the latest forecasts for cash dividends announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(% indicates year-on-year changes)

Note: Revisions of the latest forecasts for earnings announced: Yes

* For revisions of earnings forecasts, please see the “Notice of Revision of the Consolidated Earnings Forecast for the Fiscal Year Ending March 2026” released today (February 9, 2026).

1. Significant changes in the scope of consolidation during the period: Yes Excluded: 1 company (SDP Global Co., Ltd.)

   Note: See page 11, “2. Quarterly consolidated financial statements and significant notes thereto, (4) Notes to quarterly consolidated financial statements, Significant changes in the scope of consolidation during the period” for more information.

2. Application of special accounting methods for the preparation of quarterly consolidated financial statements: Yes

   Note: See page 11, “2. Quarterly consolidated financial statements and significant notes thereto, (4) Notes to quarterly consolidated financial statements, Application of special accounting methods for the preparation of quarterly consolidated financial statements” for more information.

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

   1. Changes in accounting policies associated with revised accounting standards, etc. : None

   2. Changes in accounting policies other than a. above : None

   3. Changes in accounting estimates : None

   4. Restatements : None

4. Number of shares issued (common stock)

   1. Number of shares issued at the end of the period (including treasury shares)

      As of December 31, 2025	23,534,752 shares
      As of March 31, 2025	23,534,752 shares

   2. Number of treasury shares at the end of the period

      As of December 31, 2025	1,413,188 shares
      As of March 31, 2025	1,412,596 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Note: Shares of Sanyo Chemical Industries, Ltd. (the “Company”) owned by the trust whose beneficiaries are directors, etc. of the Company are included in the treasury shares that are excluded in calculating the number of treasury shares at the end of the period and the average number of shares outstanding during the period.

• Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None

• Appropriate use of earnings forecasts and other special items

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual earnings may differ significantly due to various factors. See page 5, “1. Qualitative information regarding financial results for the nine months ended December 31, 2025, (3) Information concerning future forecast such as consolidated earnings forecasts” for more information regarding the circumstances behind the assumptions used in earnings forecasts and matters to be noted when relying on earnings forecasts.

Attached Material Index

1. Qualitative information regarding financial results for the nine months ended December 31, 2025 2

   1. Financial position and operating results 2

   2. Cash flows 4

   3. Information concerning future forecast such as consolidated earnings forecasts 5

2. Quarterly consolidated financial statements and significant notes thereto 6

   1. Consolidated balance sheets 6

   2. Consolidated statements of income and consolidated statements of comprehensive income 8

      Consolidated statements of income (cumulative) 8

      Consolidated statements of comprehensive income (cumulative) 9

   3. Consolidated statements of cash flows 10

   4. Notes to quarterly consolidated financial statements 11

      Notes to going concern assumptions 11

      Significant changes in the scope of consolidation during the period 11

      Notes on significant changes in the amount of shareholders’ equity 11

      Application of special accounting methods for the preparation of quarterly consolidated financial statements 11

      Consolidated statements of income 11

      Consolidated statements of cash flows 13

      Notes on segment information, etc. 14

3. Supplementary information 17

1. Qualitative information regarding financial results for the nine months ended December 31, 2025

   1. Financial position and operating results

      During the nine months ended December 31, 2025, Japanese economy showed a gradual recovery against a backdrop of an improvement in the employment and income environment. Meanwhile, the situation has been unpredictable, mainly due to the impact of U.S. tariff policies on the business performances of certain manufacturing industries centered on the automobile industry, and an increase in tension between Japan and China. The forex market saw yen appreciation at the start of the fiscal year, mainly driven by uncertainty around the U.S. trade policies; however, the yen subsequently began to depreciate, mainly due to trends in the Japan-U.S. interest rate differential. Furthermore, oil prices remained soft overall, affected by background factors such as production policies by OPEC+ and the demand forecast. In the global economy, the outlook remains uncertain due to factors such as an economic slowdown against the backdrop of U.S. trade policies, stagnation of the Chinese economy, the prolonged situation between Russia and Ukraine, and the geopolitical risks surrounding the Middle East region.

      In the chemical industry, the business environment is undergoing irreversible changes, such as the continued influx of Chinese products into the Japanese and Asian markets as a result of sluggish Chinese domestic demand and oversupply, and the progression of large-scale business restructuring and collaborations aimed at strengthening competitiveness in the domestic petrochemicals business, among others. In response to these changes, the Company has been working to enhance profitability for its core businesses through the implementation of our business portfolio reform aimed at shifting to high-value-added businesses set out in the “New Medium-Term Management Plan 2025.” Additionally, it is also focusing on the continuous promotion of “Monozukuri Transformation” aimed at streamlining the entire supply chain and the promotion of “Production Restructuring” which works toward the divestiture, integration, and consolidation of production facilities, among others.

      Under these circumstances, net sales for the period under review decreased by 13.1% year on year to

      ¥96,600 million primarily due to the impact of withdrawal from the superabsorbent polymer business and intensified competition with low-cost products made in China. In terms of profit, operating profit was

      ¥7,558 million (an increase of 10.0% year on year) and ordinary profit was ¥9,393 million (an increase of 9.4% year on year), mainly due to an improvement in profitability resulting from the abovementioned business withdrawal and streamlining of the entire supply chain, as well as favorable conditions in the advanced semiconductor field. Additionally, profit attributable to owners of parent was ¥12,807 million (an increase of 251.8% year on year) mainly due to a recording of taxes expenses (profit), which includes income taxes and income taxes - deferred, resulting from careful consideration of the recoverability of deferred tax assets for the tax loss carry forwards and deductible temporary differences and the like carried over from the Company’s consolidated subsidiary SDP Global Co., Ltd. in connection with the absorption-type merger of said company.

      1. Business performance

         (Millions of yen)

         	Nine months ended December 31, 2024	Nine months ended December 31, 2025	Change		FY2024
         			(Amount)	(Change) (13.1)% 10.0% 9.4% 251.8% 251.5% 0.9 percentage point 6.6 percentage point 5.6 percentage point
         Net sales	111,108	96,600	(14,507)		142,258
         Operating profit	6,872	7,558	685		8,439
         Ordinary profit	8,588	9,393	804		9,670
         Profit attributable to owners of parent	3,640	12,807	9,167		4,151
         Basic earnings per share	¥164.70	¥578.97	¥414.27		¥187.79
         ROA (Return on assets*)	5.9%	6.8%			5.1%
         ROE (Return on equity)	3.5%	10.1%			3.0%
         ROIC (Return on invested capital)	4.4%	10.0%			4.8%
         Currency exchange (US$, CNY)	US$=¥152.64 CNY=¥21.17	US$=¥148.71 CNY=¥20.77	¥(3.93) ¥(0.4)		US$=¥152.62 CNY=¥21.11
         Naphtha price in Japan	¥76,400/kl	¥65,100/kl	¥(11,300)/kl		¥75,700/kl

         *ROA (Return on assets) is calculated based on ordinary profit.

         Note: ROA, ROE and ROIC for the nine months ended December 31, 2024 and 2025 are annualized.

      2. Business performance by segment

      (Millions of yen)

      	Nine months ended December 31, 2024		Nine months ended December 31, 2025		Change		FY2024
      	Net sales	Operating profit	Net sales	Operating profit	Net sales	Operating profit	Net sales	Operating profit
      Toiletries and Health Care	25,940	209	12,976	(142)	(12,963)	(352)	30,680	176
      Petroleum and Automotives	37,536	3,092	36,905	4,376	(631)	1,283	49,232	3,979
      Plastics and Textiles	20,432	2,256	19,643	1,764	(788)	(491)	26,839	2,867
      Information and Electrics/Electronics	15,888	2,086	17,107	2,622	1,219	535	20,911	2,532
      Environmental Protection, Construction and Others	11,311	40	9,966	(44)	(1,344)	(85)	14,594	4

      In the Toiletries segment and the Health Care segment, sales declined significantly as a result of the withdrawal from the superabsorbent polymer business.

      As a result, total net sales in this segment decreased by 50.0% year on year, to ¥12,976 million. Operating loss was ¥142 million (compared to operating profit of ¥209 million during the same period of the previous fiscal year).

      In the Petroleum segment, while demand for lubricant additives was strong, due to a temporary increase in demand in the same period of the previous fiscal year, sales remained flat.

      In the Automotives segment, sales decreased as the business environment became more challenging due to the inflow of low-cost products from overseas, which adversely affected the market for raw materials for polyurethane foams used in automobile seats and other applications, leading to sluggish sales both in Japan and overseas.

      As a result, total net sales in this segment decreased by 1.7% year on year, to ¥36,905 million. Operating profit was ¥4,376 million (an increase of 41.5% year on year).

      In the Plastics segment, although sales remained strong due to demand for permanent antistatic agents recovering, sales decreased due to sluggish sales of paint coating agents.

      In the Textiles segment, sales decreased because sales of chemicals for carbon fibers used in wind turbines for wind power generation were sluggish, despite demand for urethane resins for synthetic leather and elastomer fiber for automotive interior recovering.

      As a result, total net sales in this segment decreased by 3.9% year on year, to ¥19,643 million. Operating profit was ¥1,764 million (a decrease of 21.8% year on year).

      In the Information segment, sales of polymerization toner-related materials were weak, mainly due to the withdrawal from production operations in China. However, demand for toner resins showed a recovery trend, resulting in flat overall sales.

      In the Electrics/Electronics segment, sales of electrolyte for aluminum electrolytic capacitors had been sluggish for automotive applications due to the slow recovery of the EV market, but performed favorably following an increase in demand for the non-automotive market. In addition, as the advanced semiconductor market remained strong, sales of related materials increased, driving an increase in net sales.

      As a result, total net sales in this segment increased by 7.7% year on year, to ¥17,107 million. Operating profit was ¥2,622 million (an increase of 25.7% year on year).

      In the Environmental Protection segment, sales remained flat due to low demand for heavy metal immobilizers, despite favorable sales of cationic monomers used in polymer flocculants.

      In the Construction segment, sales decreased significantly as the business environment became more challenging due to the inflow of low-cost products from overseas, which adversely affected the market for raw materials for polyurethane foams used in furniture, insulation agents, and other applications.

      As a result, total net sales in this segment decreased by 11.9% year on year, to ¥9,966 million. Operating loss was ¥44 million (compared to operating profit of ¥40 million during the same period of the previous fiscal year).

      The Group’s financial position at the end of the period under review was as follows:

      Total assets increased by ¥16,843 million compared with the end of the previous fiscal year, amounting to

      ¥193,209 million.

      Net assets increased by ¥17,182 million from the end of the previous fiscal year, to ¥155,484 million. Equity ratio rose by 2.1 percentage points from the end of the previous fiscal year, to 78.9%.

   2. Cash flows

      Cash and cash equivalents (“cash”) as of the end of the period under review amounted to ¥30,871 million. This marked an increase of ¥6,860 million compared with the end of the previous fiscal year.

      The cash flow movements during the period under review and the factors influencing them were as follows:

      Cash flows from operating activities

      Net cash provided by operating activities amounted to ¥15,059 million (compared to ¥9,441 million in net cash provided during the same period of the previous fiscal year). This result was mainly due to the cash inflow from profit before income taxes of ¥7,952 million and depreciation of ¥6,883 million, which outweighed the cash outflow mainly from income taxes paid of ¥1,559 million and payment for business restructuring of ¥1,173 million.

      Cash flows from investing activities

      Net cash used in investing activities amounted to ¥4,644 million (compared to ¥8,458 million in net cash used during the same period of the previous fiscal year). This result was mainly due to the cash outlay of

      ¥4,881 million for purchase of non-current assets.

      Cash flows from financing activities

      Net cash used in financing activities amounted to ¥4,535 million (compared to ¥11,475 million in net cash used during the same period of the previous fiscal year). This result was mainly due to the cash outflow from dividends paid of ¥3,750 million.

   3. Information concerning future forecast such as consolidated earnings forecasts

      Among the full-year consolidated earnings forecasts announced on November 5, 2025, profit attributable to owners of the parent is now expected to be lower than the forecast. The full-year consolidated earnings forecasts have therefore been revised as follows.

      Fiscal year ending March 31, 2026

      	Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Basic earnings per share
      Previously announced forecast (November 5) (A) Revised forecast (B) Amount of change (B–A)	Millions of yen 130,000 130,000 -	Millions of yen 10,000 10,000 -	Millions of yen 11,000 11,000 -	Millions of yen 16,000 14,000 (2,000)	Yen 723.26 632.86
      Percentage change (%)	-	-	-	(12.5)
      Results for the previous fiscal year (Fiscal year ended March 31, 2025)	142,258	8,439	9,670	4,151	187.79

      * These earnings forecasts were based on information available at the time of announcement. Actual earnings may differ due to various factors occurring in the future.

2. Quarterly consolidated financial statements and significant notes thereto

   1. Consolidated balance sheets

      (Millions of yen)

      As of March 31, 2025 As of December 31, 2025

      Assets

      Current assets
      Cash and deposits	24,532	31,019
      Notes and accounts receivable - trade	35,059	37,591
      Electronically recorded monetary claims - operating	146	133
      Merchandise and finished goods	12,965	12,410
      Semi-finished goods	5,118	5,425
      Work in process	257	52
      Raw materials and supplies	4,480	4,701
      Other	2,867	3,156
      Allowance for doubtful accounts	(485)	(481)
      Total current assets	84,942	94,008
      Non-current assets
      Property, plant and equipment
      Buildings and structures, net	14,729	14,398
      Machinery, equipment and vehicles, net	19,866	19,032
      Land	8,850	8,923
      Construction in progress	510	556
      Other, net	2,185	1,986
      Total property, plant and equipment	46,142	44,896
      Intangible assets
      Software	5,231	4,278
      Other	1,055	1,083
      Total intangible assets	6,286	5,362
      Investments and other assets
      Investment securities	30,713	39,532
      Long-term loans receivable	2,255	1,899
      Deferred tax assets	258	1,453
      Retirement benefit asset	4,588	4,653
      Other	1,204	1,428
      Allowance for doubtful accounts	(25)	(25)
      Total investments and other assets	38,994	48,942
      Total non-current assets	91,423	99,201
      Total assets	176,366	193,209

      Liabilities

      (Millions of yen) As of March 31, 2025 As of December 31, 2025

      Current liabilities

      Accounts payable - trade	16,881	19,332
      Electronically recorded obligations - operating	2,910	4,928
      Short-term borrowings	441	421
      Current portion of long-term borrowings	747	929
      Accounts payable - other	4,581	3,415
      Income taxes payable	669	407
      Provision for bonuses	1,829	1,090
      Provision for bonuses for directors (and other officers)	72	48
      Electronically recorded obligations - non-operating	567	729
      Other	1,629	2,473
      Total current liabilities	30,332	33,777
      Non-current liabilities
      Long-term borrowings	2,230	2,227
      Deferred tax liabilities	2,808	0
      Provision for share-based payments	366	452
      Retirement benefit liability	91	188
      Provision for business restructuring	1,664	533
      Other	571	544
      Total non-current liabilities	7,731	3,947
      Total liabilities	38,063	37,724
      Net assets
      Shareholders’ equity
      Share capital	13,051	13,051
      Capital surplus	13,289	13,289
      Retained earnings	99,868	109,012
      Treasury shares	(5,525)	(5,528)
      Total shareholders’ equity	120,683	129,824
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	11,412	18,036
      Foreign currency translation adjustment	1,488	2,813
      Remeasurements of defined benefit plans	1,800	1,682
      Total accumulated other comprehensive income	14,702	22,533
      Non-controlling interests	2,917	3,126
      Total net assets	138,302	155,484
      Total liabilities and net assets	176,366	193,209

   2. Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income (cumulative)

      (Millions of yen)

      Nine months ended December 31, 2024

      Nine months ended December 31, 2025

      Net sales	111,108		96,600
      Cost of sales	86,239		71,672
      Gross profit	24,869		24,927
      Selling, general and administrative expenses	17,996		17,369
      Operating profit	6,872		7,558
      Non-operating income
      Interest income	138		126
      Dividend income	1,114		1,242
      Foreign exchange gains	76		667
      Share of profit of entities accounted for using equity method	721		-
      Other	136		113
      Total non-operating income	2,187		2,149
      Non-operating expenses
      Interest expenses	99		85
      Share of loss of entities accounted for using equity method	-		95
      Compensation expenses	-		72
      Other	372		61
      Total non-operating expenses	471		314
      Ordinary profit	8,588		9,393
      Extraordinary income
      Gain on sale of investment securities	49		-
      Insurance claim income	39		29
      Total extraordinary income	88		29
      Extraordinary losses
      Loss on retirement of non-current assets		465		991
      Impairment losses	*1	308		-
      Loss on valuation of investment securities		8		114
      Business restructuring expenses	*2	1,574	*2	363
      Other		18		-
      Total extraordinary losses		2,374		1,469
      Profit before income taxes		6,302		7,952
      Income taxes		2,106		(5,477)
      Profit		4,196		13,430
      Profit attributable to non-controlling interests		555		622
      Profit attributable to owners of parent		3,640		12,807

      Consolidated statements of comprehensive income (cumulative)

      (Millions of yen)

      Nine months ended December 31, 2024

      Nine months ended December 31, 2025

      Profit	4,196	13,430
      Other comprehensive income
      Valuation difference on available-for-sale securities	1,470	6,623
      Foreign currency translation adjustment	(3,909)	1,359
      Remeasurements of defined benefit plans, net of tax	(75)	(117)
      Total other comprehensive income	(2,514)	7,865
      Comprehensive income	1,681	21,296
      Comprehensive income attributable to
      Comprehensive income attributable to owners of parent	1,081	20,611

      Comprehensive income attributable to non-controlling interests

      600 684

      (3) Consolidated statements of cash flows
      		(Millions of yen)
      	Nine months ended December 31, 2024	Nine months ended December 31, 2025
      Cash flows from operating activities
      Profit before income taxes	6,302	7,952
      Depreciation	7,381	6,883
      Loss on retirement of non-current assets	465	991
      Impairment losses	308	-
      Increase (decrease) in provision for bonuses	(977)	(741)
      Increase (decrease) in retirement benefit asset and (140) (156) liability

      Increase (decrease) in provision for bonuses for directors (and other officers)

      24 (24)

      Increase (decrease) in provision for share-based

      payments

      79

      86

      Interest and dividend income (1,253) (1,369)

      Interest expenses 99 85

Cash and cash equivalents at end of period 16,837 30,871

(4) Notes to quarterly consolidated financial statements

Notes to going concern assumptions

None

Significant changes in the scope of consolidation during the period

During the first quarter of the fiscal year ending March 31, 2026, SDP Global Co., Ltd., which was a wholly owned subsidiary of the Company, was dissolved in an absorption merger with the Company as the surviving company, and it has therefore been excluded from the scope of consolidation in the first quarter of the fiscal year ending March 31, 2026.

Notes on significant changes in the amount of shareholders’ equity

None

Application of special accounting methods for the preparation of quarterly consolidated financial statements

(Calculation of income tax expense)

After applying tax effect accounting to profit before income taxes for the fiscal year, which includes the third quarter under review, the Company makes a reasonable estimate of the effective tax rate and multiplies the profit before income taxes by that estimated effective tax rate. However, if the calculation of tax using such estimated effective tax rate would significantly lack rationality, the statutory tax rate is used after adjusting for important items in profit before income taxes among items that are not categorized as temporary differences, etc. Furthermore, income tax adjustments are included in the presentation of income taxes.

Consolidated statements of income

*1 Impairment losses

Nine months ended December 31, 2024 (April 1, 2024 to December 31, 2024) The Group recorded impairment losses on the following asset groups.

In principle, the Group classifies its assets into groups by factory.

As certain facilities are no longer expected to be used, the carrying amount has been reduced to the recoverable amount, and ¥308 million has been recorded as an impairment loss under extraordinary losses. The recoverable amount is measured by net realizable value, which is assessed based on professional appraisals.

Nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025) None

*2 Business restructuring expenses

Nine months ended December 31, 2024 (April 1, 2024 to December 31, 2024)

Business restructuring expenses refer to those associated with the decision, made in the fiscal year ended March 31, 2024, to withdraw from the superabsorbent polymer business and cease production of surfactants and urethane resin products, etc. in Nantong, Jiangsu Province, China as part of the structural reform under the “New Medium-Term Management Plan 2025.”

The breakdown of business restructuring expenses was mainly ¥2,057 million for impairment losses, ¥(868) million for reversal of provision for business restructuring, and ¥386 million for others.

Details concerning impairment losses are outlined below.

In principle, the Group classifies its assets into groups by factory.

In accordance with the conclusion of an equity interest transfer agreement concerning San-Dia Polymers (Nantong) Co., Ltd. on September 27, 2024, the carrying amount of the above facilities has been reduced to the recoverable amount, and the decrement has been recorded in business restructuring expenses as an impairment loss under extraordinary losses. The recoverable amount is measured by net realizable value, which is assessed based on the equity interest transfer agreement.

Nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025)

Business restructuring expenses refer to those associated with the decision, made in the fiscal year ended March 31, 2024, to withdraw from the superabsorbent polymer business and cease production of surfactants and urethane resin products, etc. in Nantong, Jiangsu Province, China as part of the structural reform under the “New Medium-Term Management Plan 2025.”

The breakdown of business restructuring expenses was mainly ¥230 million for impairment losses, and ¥132 million for others.

Details concerning impairment losses are outlined below.

In principle, the Group classifies its assets into groups by factory.

Due to progress made in the withdrawal from the superabsorbent polymer business and making the decision to remove the above facilities during the period under review, the carrying amount of the above facilities has been reduced to the recoverable amount, and the decrement has been recorded in business restructuring expenses as an impairment loss under extraordinary losses. The recoverable amount is measured by net realizable value, which is assessed as zero due to the difficulty of sale.

Consolidated statements of cash flows

* Breakdown of the key components of assets and liabilities for company that ceased to be a consolidated subsidiary as a result of the transfer of equity interest

Nine months ended December 31, 2024 (April 1, 2024 to December 31, 2024)

Following San-Dia Polymers (Nantong) Co., Ltd. ceasing to be a consolidated subsidiary due to a transfer of equity interest, a breakdown of the key components of assets and liabilities at the time of transfer, transfer price, and net disbursement for transfer are as follows.

(Millions of yen)

Note: This was the balance for San-Dia Polymers (Nantong) Co., Ltd. as of September 30, and has decreased as a result of it being excluded from the scope of consolidation.

Nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025) None

Notes on segment information, etc.

[Segment information]

1. Nine months ended December 31, 2024 (April 1, 2024 to December 31, 2024)

   1. Information regarding net sales and profit or loss by reportable segment

      (Millions of yen)

      	Reportable Segment						Adjustment	Total
      	Toiletries and Health Care	Petroleum and Automotives	Plastics and Textiles	Information and Electrics/ Electronics	Environmental Protection, Construction and Others	Subtotal
      Net sales
      Sales to external customers	25,940	37,536	20,432	15,888	11,311	111,108	-	111,108
      Intersegment sales/transfers	-	-	-	-	94	94	(94)	-
      Total	25,940	37,536	20,432	15,888	11,405	111,202	(94)	111,108
      Segment profit (loss)	209	3,092	2,256	2,086	40	7,685	(813)	6,872

      Notes: 1. Company-wide expenses of ¥813 million not allocated to reportable segments are included in the adjustment to segment profit (loss). Company-wide expenses are research and development expenses for new businesses, etc. not belonging to reportable segments.

   2. Total amount of segment profit (loss) has been adjusted with operating profit in the quarterly consolidated statements of income.

      1. Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment

         (Millions of yen)

         	Toiletries and Health Care	Petroleum and Automotives	Plastics and Textiles	Information and Electrics/ Electronics	Environmental Protection, Construction and Others	Total
         Impairment losses	308	-	-	-	-	308
         Business restructuring expenses	2,057	-	-	-	-	2,057
         Total	2,365	-	-	-	-	2,365

         Note: Of the impairment losses, ¥2,057 million is included in “Business restructuring expenses” in the quarterly consolidated statements of income.

2. Nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025)

   1. Information regarding net sales and profit or loss by reportable segment

      (Millions of yen)

      	Reportable Segment						Adjustment	Total
      	Toiletries and Health Care	Petroleum and Automotives	Plastics and Textiles	Information and Electrics/ Electronics	Environmental Protection, Construction and Others	Subtotal
      Net sales
      Sales to external customers	12,976	36,905	19,643	17,107	9,966	96,600	-	96,600
      Intersegment sales/transfers	-	-	-	1	147	148	(148)	-
      Total	12,976	36,905	19,643	17,109	10,114	96,749	(148)	96,600
      Segment profit (loss)	(142)	4,376	1,764	2,622	(44)	8,575	(1,017)	7,558

      Notes: 1. Company-wide expenses of ¥1,017 million not allocated to reportable segments are included in the adjustment to segment profit (loss). Company-wide expenses are research and development expenses for new businesses, etc. not belonging to reportable segments.

   2. Total amount of segment profit (loss) has been adjusted with operating profit in the quarterly consolidated statements of income.

      1. Information regarding impairment losses of non-current assets or goodwill, etc. by reportable segment

(Millions of yen)

Note: Of the impairment losses, ¥230 million is included in “Business restructuring expenses” in the quarterly consolidated statements of income.

[Information by geographic segment]

Nine months ended December 31, 2024 (April 1, 2024 to December 31, 2024)

(Millions of yen)

Nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025)

(Millions of yen)

[Overseas net sales]

Nine months ended December 31, 2024 (April 1, 2024 to December 31, 2024)

(Millions of yen)

Nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025)

(Millions of yen)

Notes: 1. The term “overseas net sales” refers to net sales of the Company (non-consolidated) and its consolidated subsidiaries registered in countries and regions outside Japan.

1. Areas included in each country or region are determined based on their degree of proximity.

2. Main countries or regions included in each geographic segment outside Japan

   1. Asia: South Korea, China, Indonesia, India, Thailand, etc.

   2. Americas: USA, Mexico, Brazil, etc.

   3. Other: Australia, Europe, the Middle East, etc.

1. Supplementary information

Trend of quarterly consolidated earnings

Fiscal year ended March 31, 2025 (Millions of yen)

Fiscal year ending March 31, 2026 (Millions of yen)