Supplementary Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027 | Sakai Chemical Industry Co.,Ltd. (4078) timely disclosure

Worth reading

46Recurring

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

6.6

% (year-on-year change in revenue)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 20276 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥21,466 million+6.6%

Operating profit¥1,705 million-10.5%

Ordinary income¥1,879 million-2.5%

Net income¥2,000 million+56.0%

Operating profit margin7.9 %

Results for the three months of the current quarter

Net Sales

¥21,466 million

Operating profit

¥1,705 million

Ordinary income

¥1,879 million

Net income

¥2,000 million

Full-year earnings forecast

Net Sales

¥81,700 million

Operating profit

¥6,000 million

Ordinary income

¥6,100 million

Net income

¥4,400 million

What the company explained in this material

New initiatives

Share buyback of up to ¥7 billion and 1.52 million shares, followed by the cancellation of all repurchased shares
Implementation of a special career transition support program
End of the business partnership with IAパートナーズ

Key KPIsA metric the company considers important as a management benchmark.

EPS¥130.66
Equity ratio68.8 %
CCC161 days

Segment results

Electronic Materials
Net Sales¥3,364 million (YoY +17.2%)
Operating profit¥581 million (YoY +22.1%)
Cosmetic materials
Net Sales¥534 million (YoY +58.5%)
Operating profit¥-105 million
Organic chemicals
Net Sales¥1,922 million (YoY -9.4%)
Operating profit¥256 million (YoY -44.2%)
Hygiene Materials
Net Sales¥1,428 million (YoY +11.3%)
Operating profit¥142 million (YoY +79.7%)
Contract processing
Net Sales¥1,730 million (YoY +8.4%)
Operating profit¥231 million (YoY +35.1%)
Titanium Oxide and Zinc Products
Net Sales¥1,866 million (YoY -30.6%)
Operating profit¥142 million (YoY -65.3%)
Resin additives
Net Sales¥3,114 million (YoY +3.4%)
Operating profit¥322 million (YoY -5.6%)
Catalysts
Net Sales¥702 million (YoY +48.7%)
Operating profit¥84 million
Inorganic Materials
Net Sales¥1,484 million (YoY +10.7%)
Operating profit¥303 million (YoY +4.8%)
Pharmaceuticals
Net Sales¥2,107 million (YoY +0.5%)
Operating profit¥-19 million
Other
Net Sales¥3,211 million (YoY +38.8%)
Operating profit¥448 million (YoY +42.7%)

Financial targets

Equity ratio

FY3/26 year-end66.3 %

26.668.8 %

CCC

Target180 days

FY3/26 year-end178 days

26.6161 days

Annual Dividend

¥160 per share

Acquisition of treasury shares

Maximum purchase price

70 Hundreds of millions of yen

Maximum number of shares to be acquired

1,520,000 Shares

Period1 July–31 December 2026

Progress as of 31 July

Acquisition amount24

Unit: acquisition amountHundreds of millions of yen

Number of shares acquired596,100

Share acquisition unitShares

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥21,466 million (YoY +6.6%)
Operating profit	¥1,705 million (YoY -10.5%)
Ordinary income	¥1,879 million (YoY -2.5%)
Net income	¥2,000 million (YoY +56.0%)
Operating profit margin	7.9 %
Results for the three months of the current quarter	Net Sales ¥21,466 million / Operating profit ¥1,705 million / Ordinary income ¥1,879 million / Net income ¥2,000 million
Full-year earnings forecast	Net Sales ¥81,700 million / Operating profit ¥6,000 million / Ordinary income ¥6,100 million / Net income ¥4,400 million
Segment results	Segment Electronic Materials / Net Sales ¥3,364 million (YoY +17.2%) / Operating profit ¥581 million (YoY +22.1%), Segment Cosmetic materials / Net Sales ¥534 million (YoY +58.5%) / Operating profit ¥-105 million, Segment Organic chemicals / Net Sales ¥1,922 million (YoY -9.4%) / Operating profit ¥256 million (YoY -44.2%), Segment Hygiene Materials / Net Sales ¥1,428 million (YoY +11.3%) / Operating profit ¥142 million (YoY +79.7%), Segment Contract processing / Net Sales ¥1,730 million (YoY +8.4%) / Operating profit ¥231 million (YoY +35.1%), Segment Titanium Oxide and Zinc Products / Net Sales ¥1,866 million (YoY -30.6%) / Operating profit ¥142 million (YoY -65.3%), Segment Resin additives / Net Sales ¥3,114 million (YoY +3.4%) / Operating profit ¥322 million (YoY -5.6%), Segment Catalysts / Net Sales ¥702 million (YoY +48.7%) / Operating profit ¥84 million, Segment Inorganic Materials / Net Sales ¥1,484 million (YoY +10.7%) / Operating profit ¥303 million (YoY +4.8%), Segment Pharmaceuticals / Net Sales ¥2,107 million (YoY +0.5%) / Operating profit ¥-19 million, Segment Other / Net Sales ¥3,211 million (YoY +38.8%) / Operating profit ¥448 million (YoY +42.7%)
Key KPIs	Indicator name EPS / Value ¥130.66 / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 68.8 % / Year on year against the same period last year Not disclosed, Indicator name CCC / Value 161 days / Year on year against the same period last year Not disclosed
Financial targets	Equity ratio Target Not disclosed / FY3/26 year-end 66.3 % / 26.6 68.8 % / CCC Target 180 days / FY3/26 year-end 178 days / 26.6 161 days
Annual Dividend	¥160 per share
Acquisition of treasury shares	Maximum purchase price 70 Hundreds of millions of yen / Maximum number of shares to be acquired 1,520,000 Shares / Period 1 July–31 December 2026 / Progress as of 31 July Acquisition amount 24 / Unit: acquisition amount Hundreds of millions of yen / Number of shares acquired 596,100 / Share acquisition unit Shares
New initiatives	Share buyback of up to ¥7 billion and 1.52 million shares, followed by the cancellation of all repurchased shares, Implementation of a special career transition support program, End of the business partnership with IAパートナーズ

Items this document does not state (16)

Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Sales increased because the decline in sales volume following the end of the titanium dioxide business was offset by the electronic materials business, which is benefiting from strong AI server demand, and other businesses. Operating profit declined due to the decrease in sales volume following the end of the titanium dioxide business and the negative impact of the year-on-year decline in organic chemicals and pharmaceutical API intermediates, whose sales had been concentrated in the same quarter of the previous year. Net income increased because the company recorded approximately ¥1 billion in gains on the planned sale of fixed assets.

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