Explanatory material
November 7, 2025
1st Half: April - September
FY2025 1st Half Consolidated Result
Scope of Consolidation
Item | End of FY2024 (A) | End of FY2025 2Q (B) | Difference （B) - （A) | Notes |
Number of consolidated subsidiaries | 34 | 45 | 11 | ＋ LANXESS Solutions Australia Pty. Ltd. ＋ SISTEMAS DE URETANOS DO BRASIL LTDA. ＋ Urethane Systems Canada Ltd. ＋ Chemtura China Holding Co., Ltd. ＋ LANXESS Advanced Materials (Nantong) Co., Ltd. ＋ Elfte LXS GmbH ＋ LANXESS SOLUTIONS INDIA PRIVATE LIMITED ＋ LANXESS Solutions Italy S.r.l. ＋ LANXESS Sales Netherlands B.V. ＋ LANXESS Urethanes UK LTD ＋ URETHANE SYSTEMS USA LLC |
Number of equity method affiliates | 17 | 17 | - | |
Total | 51 | 62 | 11 |
3
Environmental FactorsItem | FY2024 2Q (A) | FY2025 2Q (B) | Difference (B) - (A) | |||
Exchange Rate | Yen/$ | 152.6 | 146.0 | (6.6) | ||
Material Price | Naphtha | CIF | $/t | 714 | 617 | (97) |
Domestic | Yen/KL | 77,950 | 64,800 | (13,150) | ||
Australian Coal (CIF) | $/t | 162.0 | 139.0 | (23.0) | ||
Yen/t | 24,726 | 20,299 | (4,427) | |||
4
Major P/L ItemsItem | FY2024 2Q (A) | FY2025 2Q (B) | Difference (B) - (A) |
Net sales | 243.0 | 212.7 | (30.3) |
EBITDA | 19.8 | 21.3 | 1.6 |
Operating profit | 6.0 | 8.3 | 2.2 |
Ordinary profit | 1.9 | 15.9 | 14.0 |
Profit attributable to owners of parent | 0.3 | 10.9 | 10.6 |
(Billions of yen)
Percentage change |
(12.5)% |
7.9% |
36.4% |
737.9% |
- |
5
Previous Segment | Businesses |
Specialty Products | Polyimide Separation membranes Ceramics Separators Phenolic resin Semiconductor gases |
Composites | |
Nylon polymers | |
Polymers & Chemicals | Caprolactam and ammonium sulfate Industrial chemicals C1 chemicals |
High-performance coatings | |
Elastomers | |
Machinery | |
Others | Pharmaceuticals Power Sales companies, etc. |
New Segment | Businesses |
Polyimide | |
Separation membranes | |
Specialty Products | Ceramics Separators Phenolic resin Semiconductor gases |
High Performance Urethane (New) | Urethane systems (new) High-performance coatings (transferred) |
Pharmaceutical (Established as an independent business segment) | |
Polymers & Chemicals | Composites Nylon polymers Caprolactam and ammonium sulfate Industrial chemicals C1 chemicals Elastomers |
Machinery | |
Others | Power Sales companies, etc. |
6
Net salesSegment | FY2024 2Q (A) | FY2025 2Q (B) | Difference (B) - (A) |
Specialty Products | 31.7 | 29.8 | (1.9) |
High Performance Urethane | 7.4 | 17.0 | 9.7 |
Pharmaceutical | 15.9 | 10.5 | (5.4) |
Polymers & Chemicals | 137.8 | 118.5 | (19.2) |
Machinery | 43.0 | 29.8 | (13.3) |
Others | 20.7 | 16.7 | (4.0) |
Adjustment | (13.3) | (9.6) | 3.7 |
Total | 243.0 | 212.7 | (30.3) |
Percentage change |
(5.9)% |
131.4% |
(33.9)% |
(14.0)% |
(30.8)% |
(19.3)% |
- |
(12.5)% |
(14.3)% |
- |
- |
- |
(36.6)% |
0.8% |
- |
36.4% |
(Billions of yen)
Operating profit
Specialty Products | 5.0 | 4.3 | (0.7) |
High Performance Urethane | 0.8 | (0.6) | (1.3) |
Pharmaceutical | 0.7 | (0.5) | (1.2) |
Polymers & Chemicals | (2.5) | 4.2 | 6.7 |
Machinery | 3.0 | 1.9 | (1.1) |
Others | 1.0 | 1.0 | 0.0 |
Adjustment | (1.9) | (2.1) | (0.1) |
Total | 6.0 | 8.3 | 2.2 |
Note: Starting from FY2025, the reportable segments have been revised from the previous four segments of "Specialty Products," "Polymers & Chemicals," "Machinery," and "Others" to the six segments of "Specialty Products," "High Performance Urethane," "Pharmaceutical," "Polymers & Chemicals," "Machinery," and "Others." The results for the first half of FY2024 are
figures reflecting the segment reclassification. 7
Analysis － Total(Billions of yen)
+2.2
FY2024 2Q FY2025 2Q
36.4% Increased
0.0
(0.7)
(1.3)
(1.2)
6.7
(1.1)
0.0
(0.1)
Specialty Products
High Performance Urethane Pharmaceutical
Polymers & Chemicals Machinery
Others
Adjustment
5.0
6.0
8.3
260.0
10.0
FY2024 2Q FY2025 2Q
(12.5)% Decreased
0.0
Specialty Products (1.9)
High Performance Urethane 9.7
Pharmaceutical (5.4)
Polymers & Chemicals (19.2)
Machinery (13.3)
Others (4.0)
Adjustment 3.7
130.0
(30.3) 212.7
243.0
Net Sales
Operating profit
Fixed Cost
and Others *2
(0.9)
Net sales: Down
Polymers & Chemicals: Sluggish sales of nylon polymers and caprolactam
Machinery: Exclusion of the Steel Products Business from the scope of consolidation following the transfer of its management rights to another company in FY2024 3Q
Operating profit: Up
Polymers & Chemicals: Reduced repair costs and increased sales volume due
to no large-scale biennial maintenance at the ammonia plant
Polymers & Chemicals: Decline in raw material prices of elastomers
Price *1
Volume
5.5
(2.4)
Total
2.2
*1: Including both selling and purchase change
*2: Including inventory valuation changes
Qualitative Information
Difference of operating profit
8
Analysis － Specialty Products(Billions of yen)
6.0
FY2025 2Q
FY2024 2Q
0.0
(14.3)% Decreased
3.0
4.3
(0.7)
5.0
36.0
FY2025 2Q
FY2024 2Q
0.0
(5.9)% Decreased
18.0
29.8
(1.9)
31.7
Net Sales
Operating profit
Fixed Cost
and Others *2
(0.4)
Net sales: Down
Polyimide: Sluggish varnish sales in 1Q, impacted by declining smartphone sales and customer inventory adjustments
Separation membranes: Continued impact of inventory adjustments by certain customers on CO2separation membranes for biomethane production
Ceramics: Decline in sales of products for bearings and substrates due to xEV market slowdown
Separators: Increase in sales volume driven by rising demand for hybrid vehicles
Operating profit: Down
Weak sales of polyimide, separation membranes, and ceramics
Price *1
Volume
1.5
(1.9)
*1: Including both selling and purchase change
*2: Including inventory valuation changes
Total
(0.7)
Qualitative Information
Difference of operating profit
9
Analysis －High Performance Urethane(Billions of yen)
20.0
+9.7
17.0
10.0
7.4
0.0
131.4% Increased
FY2024 2Q FY2025 2Q
1.0
0.8
(1.3)
0.0
(0.6)
(1.0)
－
FY2024 2Q FY2025 2Q
Net Sales
Operating profit
Net sales: Up
Urethane systems: Acquired in April 2025, with 2Q results reflecting April-June performance because the companies operating this business have a December fiscal year-end. Robust sales mainly in the U.S. market
Operating profit: Down
Recorded expenses related to post-merger integration (PMI) in the urethane systems business
Weak sales of high-performance coatings
Price *1
Volume
(1.0)
(0.2)
Fixed Cost
and Others *2
Total
(0.2)
*1: Including both selling and purchase change
*2: Including inventory valuation changes
(1.3)
Qualitative Information
Difference of operating profit
10
Analysis －Pharmaceutical(Billions of yen)
FY2025 2Q
FY2024 2Q
－
(1.0)
(0.5)
0.0
(1.2)
0.7
1.0
FY2024 2Q FY2025 2Q
(33.9)% Decreased
0.0
10.0
10.5
(5.4)
15.9
20.0
Net Sales
Operating profit
Net sales: Down
Reduction in sales volume of contract pharmaceuticals
Operating profit: Down
Reduction in sales volume of contract pharmaceuticals
Price *1
Volume
0.3
(1.4)
Fixed Cost
and Others *2
Total
(0.0)
(1.2)
*1: Including both selling and purchase change
*2: Including inventory valuation changes
Qualitative Information
Difference of operating profit
11
Analysis － Polymers & Chemicals(Billions of yen)
FY2024 2Q FY2025 2Q
－
(5.0)
(2.5)
3.4
3.3
Performance Polymers
& Chemicals Elastomer
0.0
+6.7
4.2
5.0
FY2024 2Q FY2025 2Q
(14.0)% Decreased
0.0
(18.6)
(0.6)
Performance Polymers
& Chemicals Elastomer
80.0
118.5
(19.2)
137.8
160.0
Net Sales
Operating profit
Net sales: Down
Nylon polymers: Decreases in sales volume and sales prices because of sluggish demand for food packaging film in the overseas market
Caprolactam & ammonium sulfate: Decline in sales volume and selling prices due to intensified competition
Operating profit: Up
Reduced repair costs and increased sales volume due to no large-scale biennial maintenance at the ammonia plant
Decline in raw material prices of elastomers
Price *1
Volume
5.9
0.8
Fixed Cost
and Others *2
Total
(0.1)
6.7
*1: Including both selling and purchase change
*2: Including inventory valuation changes
Qualitative Information
Difference of operating profit
12
Analysis － Machinery(Billions of yen)
50.0
43.0
(13.3)
29.8
25.0
0.0
(30.8)% Decreased
FY2024 2Q FY2025 2Q
4.0
3.0
(1.1)
2.0
1.9
0.0
(36.6)% Decreased
FY2024 2Q FY2025 2Q
Net Sales
Operating profit
Net sales: Down
Exclusion of the Steel Products Business from the scope of consolidation following the transfer of its management rights to another company in FY2024 3Q
Operating profit: Down
Weak sales of the industrial machine products
Marginal profit on machinery product: (2.9)
(Since machinery products are manufactured on an individual order basis, no analysis of differences in price and volume is conducted.)
Qualitative Information
Difference of operating profit
13
Analysis － Others(Billions of yen)
2.0
FY2025 2Q
FY2024 2Q
0.0
0.8% Increased
1.0
1.0
1.0
+0.0
22.0
FY2025 2Q
FY2024 2Q
(19.3)% Decreased
0.0
11.0
16.7
(4.0)
20.7
Net Sales
Operating profit
Net sales: Down
Power: Decline in electricity selling prices due to falling coal prices
Operating profit: Up
Reduced repair expenses due to no large-scale biennial maintenance at an in-house power plant
Price *1
(1.2)
Volume 0.2
Fixed Cost
and Others 1.0 *1: Including both selling and purchase change
Total
0.0
Qualitative Information
Difference of operating profit
14
Operating Profit － Profit Attributable to Owners of Parent(Billions of yen)
Item | FY2024 2Q (A) | FY2025 2Q (B) | Difference (B) - (A) |
Operating profit | 6.0 | 8.3 | 2.2 |
Non-operating income (expenses) | (4.2) | 7.7 | 11.8 | ||
Net interests expenses | 0.0 | (1.2) | (1.2) | ||
Share of profit (loss) of entities accounted for using equtiy method | (1.4) | 7.9 | 9.3 | ||
Share of profit of entities accounted for using equtiy method related to Mitsubishi UBE Cement Group | 8.1 | 6.8 | (1.3) | ||
Foreign exchange gains | (1.3) | 1.2 | 2.5 | ||
Others | (1.4) | (0.3) | 1.2 | ||
Ordinary profit | 1.9 | 15.9 | 14.0 | ||
Extraordinary income (losses) | 0.1 | (1.9) | (2.0) |
Profit before income taxes | 2.0 | 14.0 | 12.0 |
Income taxes and profit (loss) attributable to non-controlling interests | (1.7) | (3.1) | (1.4) |
Profit attributable to owners of parent | 0.3 | 10.9 | 10.6 |
Net income per share | 3.28 yen | 112.08 yen | 108.80 yen |
15
Consolidated Balance Sheet (Billions of yen)
Item | End of FY2024 (A) | End of FY2025 2Q (B) | Difference (B) - (A) | |
Current assets | 358.4 | 290.8 | (67.6) | |
Fixed assets | 507.1 | 574.8 | 67.8 | |
Total assets | 865.7 | 865.8 | 0.2 | |
Interest-bearing debt | 330.5 | 321.8 | (8.8) | |
Other liabilities | 123.1 | 119.9 | (3.2) | |
Total liabilities | 453.7 | 441.7 | (12.0) | |
Shareholders' equity * | 395.1 | 406.7 | 11.6 | |
Non-controlling interests and others | 16.9 | 17.5 | 0.5 | |
Total net assets | 412.0 | 424.1 | 12.1 | |
Total liabilities and net assets | 865.7 | 865.8 | 0.2 | |
* Shareholders' equity = Net assets - Share acquisition rights - Non-controlling interests
16
Consolidated Statements of Cash Flows (Billions of yen)Item | FY2024 2Q | FY2025 2Q | |
A.Cash flows from operating activities | 6.3 | 31.6 | Profit before income taxes 14.0 Depreciation and amortization 12.3 Increase in working capital 13.0, etc. |
B.Cash flows from investing activities | (33.1) | (88.8) | Acquisition of PP&E and intangible asset (24.7) Purchase of shares of subsidiaries resulting in change in scope of consolidation (71.5), etc. |
Free cash flows (A+B) | (26.8) | (57.2) | |
C.Cash flows from financing activities | 19.2 | (16.1) | Increase in interest-bearing debts (10.0) Dividends paid (6.1), etc. |
D.Net increase/decrease in cash and cash equivalents | (7.3) | (71.3) |
E.Cash and cash equivalents at end of the period | 28.6 | 44.2 |
17
FY2025 Consolidated Forecasts18
There are no changes to major items in the consolidated earnings forecast announced on May 12, 2025. However, the outlook for each segment has been revised to reflect the latest market conditions.
Environmental Factors
Item | FY2024 (A) | FY2025 (B) | Difference (B) - (A) | |||
Exchange Rate | Yen/$ | 152.6 | 148.0 [150.0→150.0] | (4.6) [0.0] | ||
Material Price | Naphtha | CIF | $/t | 695 | 645 [680→650] | (50) [(30)] |
Domestic | Yen/KL | 75,700 | 66,800 [72,900→67,400] | (8,900) [(5,500)] | ||
Australian Coal (CIF) | $/t | 157.8 | 137.0 [140.0→134.0] | (20.8) [(6.0)] | ||
Yen/t | 24,069 | 20,280 [21,000→20,100] | (3,789) [(900)] | |||
[ ] indicates change from the previous forecast figures for the second half only to the latest forecast figures for the second half only.
19
Major P/L ItemsItem | FY2024 (A) | FY2025 (B) | Difference (B) - (A) |
Net sales | 486.8 | 490.0 | 3.2 |
EBITDA | 45.5 | 55.0 | 9.5 |
Operating profit | 18.0 | 25.0 | 7.0 |
Ordinary profit | 22.4 | 37.5 | 15.1 |
Extraordinary income (losses) | (33.3) | (4.5) | 28.8 |
Profit (loss) attributable to owners of parent | (4.8) | 27.5 | 32.3 |
Net income per share (Yen) | (49.60) | 283.15 | 332.75 |
Dividend (Yen /Share) | *1110.00 | *2110.00 | - |
*1 Dividend: Interim / 55 yen, Fiscal year-end / 55 yen
*2 Dividend: Interim / 55 yen, Fiscal year-end / 55 yen
(Billions of yen)
Percentage change |
0.7% |
21.0% |
38.5% |
67.6% |
- |
- |
-
20
Net Sales and Operating Profit by Segment (Billions of yen)Net sales | Segment | FY2024 (A) | FY2025 (B) | Difference (B) - (A) | |
Specialty Products | 66.2 | 69.0 | 2.8 | ||
High Performance Urethane | 15.6 | 50.5 | 34.9 | ||
Pharmaceutical | 31.5 | 23.0 | (8.5) | ||
Polymers & Chemicals | 273.6 | 257.0 | (16.6) | ||
Machinery | 86.9 | 74.0 | (12.9) | ||
Others | 39.2 | 35.5 | (3.7) | ||
Adjustment | (26.1) | (19.0) | 7.1 | ||
Total | 486.8 | 490.0 | 3.2 |
Percentage change |
4.3% |
223.4% |
(27.0)% |
(6.1)% |
(14.8)% |
(9.4)% |
- |
0.7% |
Specialty Products | 11.7 | 12.5 | 0.8 |
High Performance Urethane | (0.2) | 1.0 | 1.2 |
Pharmaceutical | 1.2 | 0.0 | (1.2) |
Polymers & Chemicals | (0.7) | 9.5 | 10.2 |
Machinery | 7.9 | 6.5 | (1.4) |
Others | 2.1 | 1.5 | (0.6) |
Adjustment | (3.8) | (6.0) | (2.2) |
Total | 18.0 | 25.0 | 7.0 |
7.1% |
- |
(100.0)% |
- |
(17.5)% |
(27.1)% |
- |
38.5% |
Operating profit
Note: Starting from FY2025, the reportable segments have been revised from the previous four segments of "Specialty Products," "Polymers & Chemicals," "Machinery," and "Others" to the six segments of "Specialty Products," "High Performance Urethane," "Pharmaceutical," "Polymers & Chemicals," "Machinery," and "Others." The results for FY2024 are figures
reflecting the segment reclassification. 21
Analysis － Specialty Products(Billions of yen)
15.0
FY2025
FY2024
0.0
7.1% Increased
7.5
12.5
11.7
+0.8
80.0
FY2025
FY2024
0.0
4.3% Increased
40.0
69.0
+2.8
66.2
Net sales
Operating profit
Net sales: Down ［71.0 → 69.0, (2.0)］
Separation membranes: Decline in sales volume of CO2separation membranes for biomethane production, impacted by inventory adjustments at certain customers
Operating profit: Down ［13.5 → 12.5, (1.0)］
Separation membranes: Decline in sales volume of CO2separation membranes for biomethane production, impacted by inventory adjustments at certain customers
Revisions from the previous earnings forecasts published on May 12, 2025
22
Analysis － High Performance Urethane(Billions of yen)
1.5
FY2025
FY2024
(1.5)
－
(0.2)
0.0
1.0
+1.2
60.0
FY2025
FY2024
0.0
223.4% Increased
15.6
30.0
50.5
+34.9
Net sales
Operating profit
Net sales: Down ［51.0 → 50.5, (0.5)］
High-performance coatings: Sluggish sales in the first half
Operating profit: Down ［2.0 → 1.0, (1.0)］
Urethane systems: Increase in expenses related to post-merger
integration (PMI)
Revisions from the previous earnings forecasts published on May 12, 2025
23
Analysis － Pharmaceutical(Billions of yen)
FY2025
(100.0)% Decreased
0.0
FY2025
FY2024
0.0
1.0
1.2
(1.2)
2.0
40.0
FY2024
0.0
(27.0)% Decreased
20.0
23.0
(8.5)
31.5
Net sales
Operating profit
Net sales: Down ［24.0 → 23.0, (1.0)］
Decrease in sales volume of contract pharmaceuticals
Operating profit: Down ［1.0 → 0.0, (1.0)］
Decrease in sales volume of contract pharmaceuticals
Revisions from the previous earnings forecasts published on May 12, 2025
24
Analysis － Polymers & Chemicals(Billions of yen)
FY2025
FY2024
(10.0)
－
(0.7)
10.8
(0.6)
Performance Polymers
& Chemicals Elastomer
0.0
+10.2
9.5
10.0
FY2025
FY2024
0.0
(6.1)% Decreased
(11.8)
(4.8)
Performance Polymers
& Chemicals Elastomer
150.0
257.0
(16.6)
273.6
300.0
Net sales
Operating profit
Net sales: No revision ［257.0 → 257.0, 0.0］
Performance Polymers & Chemicals
Caprolactam: Decline in sales volume and selling prices
C1chemicals: Increase in license revenue
Operating profit: Up ［6.0 → 9.5, +3.5］
Performance Polymers & Chemicals
Caprolactam & ammonium sulfate: Improved profitability
C1chemicals: Increase in license revenue Elastomer
Decline in raw material prices
Revisions from the previous earnings forecasts published on May 12, 2025
25
Analysis － Machinery(Billions of yen)
9.0
FY2025
FY2024
0.0
(17.5)% Decreased
4.5
6.5
(1.4)
7.9
90.0
FY2025
FY2024
0.0
(14.8)% Decreased
45.0
74.0
(12.9)
86.9
Net sales
Operating profit
Net sales: Down ［76.0 → 74.0, (2.0)］
Sluggish sales of molding machines and industrial machinery Operating profit: No revision ［6.5 → 6.5, 0.0］
Revisions from the previous earnings forecasts published on May 12, 2025
26
Analysis － Others(Billions of yen)
3.0
FY2025
FY2024
0.0
(27.1)% Decreased
1.5
1.5
2.1
(0.6)
40.0
FY2025
FY2024
0.0
(9.4)% Decreased
20.0
35.5
(3.7)
39.2
Net sales
Operating profit
Net sales: No revision ［35.5 → 35.5, 0.0］
Operating profit: Down ［2.0 → 1.5, (0.5)］
Decline in electricity selling prices due to lower coal prices
Revisions from the previous earnings forecasts published on May 12, 2025
27
ReferenceDifference of Net Sales
（Billions of yen）
Segment | Previous forecast 2025/5/12 (A) | Revised forecast 2025/11/7 (B) | Difference (B) - (A) | Major factors |
Specialty Products | 71.0 | 69.0 | (2.0) | |
High Performance Urethane | 51.0 | 50.5 | (0.5) | |
Pharmaceutical | 24.0 | 23.0 | (1.0) | |
Polymers & Chemicals | 257.0 | 257.0 | - | Performance Polymers & Chemicals (1.0) Elastomer 1.0 |
Machinery | 76.0 | 74.0 | (2.0) | |
Others | 35.5 | 35.5 | - | |
Adjustment | (24.5) | (19.0) | 5.5 | |
Total | 490.0 | 490.0 | - |
29
Difference of Operating Profit（Billions of yen）
Segment | Previous forecast 2025/5/12 (A) | Revised forecast 2025/11/7 (B) | Difference (B) - (A) | Major factors |
Specialty Products | 13.5 | 12.5 | (1.0) | |
High Performance Urethane | 2.0 | 1.0 | (1.0) | |
Pharmaceutical | 1.0 | 0.0 | (1.0) | |
Polymers & Chemicals | 6.0 | 9.5 | 3.5 | Performance Polymers & Chemicals 1.5 Elastomer 2.0 |
Machinery | 6.5 | 6.5 | - | |
Others | 2.0 | 1.5 | (0.5) | |
Adjustment | (6.0) | (6.0) | - | |
Total | 25.0 | 25.0 | - |
30