Consolidated Financial Results for the Six Months Ended September 30, 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

November 5, 2025

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

Scheduled date to file semi-annual securities report: November 13, 2025

Scheduled date to commence dividend payments: December 8, 2025 Preparation of supplementary material on financial results: Yes

Holding of financial results presentation meeting: Yes (for analysts)

(Figures are rounded down to the nearest million yen)

1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2026 (from April 1, 2025 to September 30, 2025)

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

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended September 30, 2025	Millions of yen 63,779 77,030	% (17.2)	Millions of yen 4,290 4,453	% (3.7)	Millions of yen 5,030 4,991	% 0.8	Millions of yen 10,417 940	% -
      September 30, 2024		(2.8)		120.5		0.9		(78.6)

      Note: Comprehensive income: Six months ended September 30, 2025 ¥14,889 million [–%]

      Six months ended September 30, 2024 ¥(545) million [–%]

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      September 30, 2025	470.92	-
      September 30, 2024	42.55	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of	Millions of yen 186,158 176,366	Millions of yen 151,222 138,302	%	Yen
   September 30, 2025			79.6	6,696.23
   March 31, 2025			76.8	6,119.90

   Reference: Equity: As of September 30, 2025 ¥148,131 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: None

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

   Note: See page 11, “2. Semi-annual consolidated financial statements and significant notes thereto, (4) Notes to semi-annual 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 semi-annual consolidated financial statements: Yes

   Note: See page 11, “2. Semi-annual consolidated financial statements and significant notes thereto, (4) Notes to semi-annual consolidated financial statements, Application of special accounting methods for the preparation of semi-annual 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 September 30, 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 September 30, 2025	1,413,064 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.

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit corporation.

• 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 six months ended September 30, 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 six months ended September 30, 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. Semi-annual consolidated financial statements and significant notes thereto 6

   1. Semi-annual consolidated balance sheets 6

   2. Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income 8

      Semi-annual consolidated statements of income 8

      Semi-annual consolidated statements of comprehensive income 9

   3. Semi-annual consolidated statements of cash flows 10

   4. Notes to semi-annual 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 semi-annual consolidated financial statements 11

      Semi-annual consolidated statements of income 11

      Notes on segment information, etc. 13

3. Supplementary information 16

1. Qualitative information regarding financial results for the six months ended September 30, 2025

   1. Financial position and operating results

      During the six months ended September 30, 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 as the impact on the business performances of certain manufacturing industries centered on the automobile industry is beginning to emerge, among other factors, despite a reduction in uncertainty from U.S. tariff policies. The forex market, driven by factors such as trends of the Japan-U.S. interest rate differential, saw the yen appreciate in the first half of the period, but it then shifted to a yen depreciation trend in the second half. Furthermore, oil prices dropped mainly due to a global economic slowdown and increased crude oil production policies by OPEC+. In the global economy, the outlook remains uncertain due to factors such as an economic slowdown caused by U.S. tariff 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 this change, 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 17.2% year on year to

      ¥63,779 million primarily due to the impact of withdrawal from the superabsorbent polymer business and intensified competition with low-cost products made in China. In term of profit, operating profit was

      ¥4,290 million (a decrease of 3.7% year on year), as the improvement in profitability due to the withdrawal from the superabsorbent polymer business was not enough to offset the negative impact of decreased revenue, etc. Meanwhile, ordinary profit was ¥5,030 million (an increase of 0.8% year on year), mainly due to the foreign exchange gains. Additionally, profit attributable to owners of parent was

      ¥10,417 million (compared to profit of ¥940 million in the same period of the previous fiscal year due to factors such as the recording of ¥2,151 million in business restructuring expenses) 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)

         	Six months ended September 30, 2024	Six months ended September 30, 2025	Change		FY2024
         			(Amount)	(Change) (17.2)% (3.7)% 0.8% - - 0.5 percentage point 7.8 percentage point 5.1 percentage point
         Net sales	77,030	63,779	(13,251)		142,258
         Operating profit	4,453	4,290	(163)		8,439
         Ordinary profit	4,991	5,030	39		9,670
         Profit attributable to owners of parent	940	10,417	9,477		4,151
         Basic earnings per share	¥42.55	¥470.92	¥428.37		¥187.79
         ROA (Return on assets*)	5.1%	5.6%			5.1%
         ROE (Return on equity)	1.4%	9.2%			3.0%
         ROIC (Return on invested capital)	4.8%	9.9%			4.8%
         Currency exchange (US$, CNY)	US$=¥152.78 CNY=¥21.17	US$=¥146.03 CNY=¥20.30	¥(6.75) ¥(0.87)		US$=¥152.62 CNY=¥21.11
         Naphtha price in Japan	¥78,000/kl	¥64,900/kl	¥(13,100)/kl		¥75,700/kl

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

         Note: ROA, ROE and ROIC for the six months ended September 30, 2024 and 2025 are annualized.

      2. Business performance by segment

      (Millions of yen)

      	Six months ended September 30, 2024		Six months ended September 30, 2025		Change		FY2024
      	Net sales	Operating profit	Net sales	Operating profit	Net sales	Operating profit	Net sales	Operating profit
      Toiletries and Health Care	20,729	252	8,462	(129)	(12,267)	(381)	30,680	176
      Petroleum and Automotives	25,112	2,113	24,702	2,890	(410)	776	49,232	3,979
      Plastics and Textiles	13,384	1,426	12,978	1,023	(405)	(403)	26,839	2,867
      Information and Electrics/Electronics	10,484	1,206	11,166	1,365	682	158	20,911	2,532
      Environmental Protection, Construction and Others	7,318	(2)	6,468	(181)	(850)	(178)	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 59.2% year on year, to ¥8,462 million. Operating loss was ¥129 million (compared to operating profit of ¥252 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 1.6% year on year, to ¥24,702 million. Operating profit was ¥2,890 million (an increase of 36.7% 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 3.0% year on year, to ¥12,978 million. Operating profit was ¥1,023 million (a decrease of 28.3% 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 remained sluggish due to the slow recovery of the EV market. However, net sales increased due to higher sales of related materials as the advanced semiconductor market remained strong.

      As a result, total net sales in this segment increased by 6.5% year on year, to ¥11,166 million. Operating profit was ¥1,365 million (an increase of 13.2% year on year).

      In the Environmental Protection segment, sales were weak due to low demand for heavy metal immobilizers, despite signs of recovery in 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 11.6% year on year, to ¥6,468 million. Operating loss was ¥181 million (compared to operating loss of ¥2 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 ¥9,792 million compared with the end of the previous fiscal year, amounting to

      ¥186,158 million.

      Net assets increased by ¥12,919 million from the end of the previous fiscal year, to ¥151,222 million. Equity ratio rose by 2.8 percentage points from the end of the previous fiscal year, to 79.6%.

   2. Cash flows

      Cash and cash equivalents (“cash”) as of the end of the period under review amounted to ¥28,399 million. This marked an increase of ¥4,388 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 ¥9,191 million (compared to ¥4,905 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 ¥3,998 million and depreciation of ¥4,598 million, which outweighed the cash outflow mainly from payment for business restructuring of ¥896 million and income taxes paid of ¥750 million.

      Cash flows from investing activities

      Net cash used in investing activities amounted to ¥2,902 million (compared to ¥3,475 million in net cash used during the same period of the previous fiscal year). This result was mainly due to the cash outlay of

      ¥3,106 million for purchase of non-current assets.

      Cash flows from financing activities

      Net cash used in financing activities amounted to ¥2,394 million (compared to ¥6,777 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 ¥1,880 million.

   3. Information concerning future forecast such as consolidated earnings forecasts

      Performance for the six months ended September 30, 2025 was mostly in line with the forecasts announced on August 1, 2025, and so the Company has left its full-year consolidated earnings forecasts unchanged.

      The rates of progress made during the period under review in comparison to the full-year consolidated earnings forecasts announced on August 1, 2025 are shown in the table below.

      (Millions of yen)

      	Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
      Semi-annual consolidated earnings forecasts	62,000	4,500	5,000	11,500
      [Progress to forecasts (%)]	[102.9]	[95.3]	[100.6]	[90.6]
      Full-year consolidated earnings forecasts	130,000	10,000	11,000	16,000
      [Progress to forecasts (%)]	[49.1]	[42.9]	[45.7]	[65.1]

      * 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. Semi-annual consolidated financial statements and significant notes thereto

   1. Semi-annual consolidated balance sheets

      (Millions of yen)

      As of March 31, 2025 As of September 30, 2025

      Assets

      Current assets
      Cash and deposits	24,532	28,542
      Notes and accounts receivable - trade	35,059	34,577
      Electronically recorded monetary claims - operating	146	125
      Merchandise and finished goods	12,965	12,021
      Semi-finished goods	5,118	5,116
      Work in process	257	225
      Raw materials and supplies	4,480	4,773
      Other	2,867	3,097
      Allowance for doubtful accounts	(485)	(485)
      Total current assets	84,942	87,993
      Non-current assets
      Property, plant and equipment
      Buildings and structures, net	14,729	14,524
      Machinery, equipment and vehicles, net	19,866	18,802
      Land	8,850	8,879
      Construction in progress	510	1,065
      Other, net	2,185	2,024
      Total property, plant and equipment	46,142	45,296
      Intangible assets
      Software	5,231	4,597
      Other	1,055	1,044
      Total intangible assets	6,286	5,641
      Investments and other assets
      Investment securities	30,713	35,428
      Long-term loans receivable	2,255	1,945
      Deferred tax assets	258	3,791
      Retirement benefit asset	4,588	4,633
      Other	1,204	1,453
      Allowance for doubtful accounts	(25)	(24)
      Total investments and other assets	38,994	47,226
      Total non-current assets	91,423	98,165
      Total assets	176,366	186,158

      Liabilities

      (Millions of yen) As of March 31, 2025 As of September 30, 2025

      Current liabilities

      Accounts payable - trade	16,881	17,108
      Electronically recorded obligations - operating	2,910	3,400
      Short-term borrowings	441	391
      Current portion of long-term borrowings	747	863
      Accounts payable - other	4,581	3,913
      Income taxes payable	669	535
      Provision for bonuses	1,829	1,935
      Provision for bonuses for directors (and other officers)	72	29
      Electronically recorded obligations - non-operating	567	802
      Other	1,629	1,994
      Total current liabilities	30,332	30,976
      Non-current liabilities
      Long-term borrowings	2,230	2,070
      Deferred tax liabilities	2,808	-
      Provision for share-based payments	366	423
      Retirement benefit liability	91	97
      Provision for business restructuring	1,664	813
      Other	571	555
      Total non-current liabilities	7,731	3,960
      Total liabilities	38,063	34,936
      Net assets
      Shareholders’ equity
      Share capital	13,051	13,051
      Capital surplus	13,289	13,289
      Retained earnings	99,868	108,515
      Treasury shares	(5,525)	(5,527)
      Total shareholders’ equity	120,683	129,328
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	11,412	14,941
      Foreign currency translation adjustment	1,488	2,139
      Remeasurements of defined benefit plans	1,800	1,722
      Total accumulated other comprehensive income	14,702	18,803
      Non-controlling interests	2,917	3,090
      Total net assets	138,302	151,222
      Total liabilities and net assets	176,366	186,158

   2. Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income

      Semi-annual consolidated statements of income

      (Millions of yen)

      Six months ended September 30, 2024

      Six months ended September 30, 2025

      Net sales	77,030		63,779
      Cost of sales	60,415		47,980
      Gross profit	16,614		15,798
      Selling, general and administrative expenses	12,161		11,508
      Operating profit	4,453		4,290
      Non-operating income
      Interest income	113		86
      Dividend income	510		680
      Foreign exchange gains	-		104
      Share of profit of entities accounted for using equity method	463		-
      Other	165		85
      Total non-operating income	1,253		956
      Non-operating expenses
      Interest expenses	70		56
      Foreign exchange losses	444		-
      Share of loss of entities accounted for using equity	-		50
      method
      Compensation expenses		-		73
      Other		200		37
      Total non-operating expenses		715		216
      Ordinary profit		4,991		5,030
      Extraordinary losses
      Loss on retirement of non-current assets		309		695
      Impairment losses on non-current assets	*1	308		-
      Loss on valuation of investment securities		8		110
      Business restructuring expenses	*2	2,151	*2	225
      Total extraordinary losses		2,778		1,031
      Profit before income taxes		2,212		3,998
      Income taxes		920		(6,795)
      Profit		1,292		10,794
      Profit attributable to non-controlling interests		352		376
      Profit attributable to owners of parent		940		10,417

      Semi-annual consolidated statements of comprehensive income

      (Millions of yen)

      Six months ended September 30, 2024

      Six months ended September 30, 2025

      Profit	1,292	10,794
      Other comprehensive income
      Valuation difference on available-for-sale securities	(64)	3,528
      Foreign currency translation adjustment	(1,723)	645
      Remeasurements of defined benefit plans, net of tax	(50)	(78)
      Total other comprehensive income	(1,838)	4,095
      Comprehensive income	(545)	14,889
      Comprehensive income attributable to
      Comprehensive income attributable to owners of parent	(920)	14,491

      Comprehensive income attributable to non-controlling interests

      375 398

      (3) Semi-annual consolidated statements of cash flows
      		(Millions of yen)
      	Six months ended September 30, 2024	Six months ended September 30, 2025
      Cash flows from operating activities
      Profit before income taxes	2,212	3,998
      Depreciation	5,119	4,598
      Loss on retirement of non-current assets	309	695
      Impairment losses	308	-
      Increase (decrease) in provision for bonuses	(69)	104
      Increase (decrease) in retirement benefit asset and (107) (157) liability

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

      5 (42)

      Increase (decrease) in provision for share-based

      payments

      51

      57

      Interest and dividend income (624) (766)

      Interest expenses 70 56

Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation

– 369

Cash and cash equivalents at end of period 21,722 28,399

1. Notes to semi-annual consolidated financial statements

   Notes to going concern assumptions

   None

   Significant changes in the scope of consolidation during the period

   During the six months ended September 30, 2025, 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 six months ended September 30, 2025.

   Notes on significant changes in the amount of shareholders’ equity

   None

   Application of special accounting methods for the preparation of semi-annual 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 first six months 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.

   Semi-annual consolidated statements of income

   *1 Impairment losses

   Six months ended September 30, 2024 (April 1, 2024 to September 30, 2024) The Group recorded impairment losses on the following asset groups.

   Location	Main use	Key breakdown components
   San-Dia Polymers (Nantong) Co., Ltd. Jiangsu Province, China	Facilities related to Toiletries and Health Care	Machinery, equipment and vehicles ¥270 million Others ¥37 million

   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.

   Six months ended September 30, 2025 (April 1, 2025 to September 30, 2025) None

   *2 Business restructuring expenses

   Six months ended September 30, 2024 (April 1, 2024 to September 30, 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, and

   ¥94 million for others.

   Details concerning impairment losses are outlined below.

   Location	Main use	Key breakdown components
   San-Dia Polymers (Nantong) Co., Ltd. Jiangsu Province, China	Facilities related to Toiletries and Health Care	Buildings and structures ¥664 million Machinery, equipment and vehicles ¥1,046 million Others ¥346 million

   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.

   Six months ended September 30, 2025 (April 1, 2025 to September 30, 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 ¥126 million for impairment losses, and ¥99 million for others.

   Details concerning impairment losses are outlined below.

   Location	Main use	Key breakdown components
   Sanyo Chemical Industries, Ltd. (the Company) Nagoya Factory Tokai, Aichi	Facilities related to Toiletries and Health Care	Machinery, equipment and vehicles ¥124 million Others ¥1 million

   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.

   Notes on segment information, etc.

   [Segment information]

   1. Six months ended September 30, 2024 (April 1, 2024 to September 30, 2024)

      1. Information regarding net sales, 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	20,729	25,112	13,384	10,484	7,318	77,030	-	77,030
         Intersegment sales/transfers	-	-	-	-	66	66	(66)	-
         Total	20,729	25,112	13,384	10,484	7,384	77,096	(66)	77,030
         Segment profit (loss)	252	2,113	1,426	1,206	(2)	4,996	(543)	4,453

         Notes: 1. Company-wide expenses of ¥543 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 semi-annual 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 semi-annual consolidated statements of income.

   2. Six months ended September 30, 2025 (April 1, 2025 to September 30, 2025)

      1. Information regarding net sales, 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	8,462	24,702	12,978	11,166	6,468	63,779	-	63,779
         Intersegment sales/transfers	-	-	-	1	111	112	(112)	-
         Total	8,462	24,702	12,978	11,168	6,579	63,892	(112)	63,779
         Segment profit (loss)	(129)	2,890	1,023	1,365	(181)	4,968	(678)	4,290

         Notes: 1. Company-wide expenses of ¥678 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 semi-annual consolidated statements of income.

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

(Millions of yen)

Note: Impairment losses of ¥126 million are included in “Business restructuring expenses” in the semi-annual consolidated statements of income.

[Information by geographic segment]

Six months ended September 30, 2024 (April 1, 2024 to September 30, 2024)

(Millions of yen)

Six months ended September 30, 2025 (April 1, 2025 to September 30, 2025)

(Millions of yen)

[Overseas net sales]

Six months ended September 30, 2024 (April 1, 2024 to September 30, 2024)

(Millions of yen)

Six months ended September 30, 2025 (April 1, 2025 to September 30, 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)