Transition to consolidated accounting and change to 2 reporting segments

「The contract distillation business remained broadly firm, but revenue was ¥837,393 thousand, up 0.1% year on year, and segment profit was ¥329,570 thousand, down 5.1% year on year, due to reduced business with major customers and a temporary decline in inquiries for electronic materials projects. (Plant business) Revenue from the plant business was ¥169,358 thousand, up 125.5% year on year, and segment loss was ¥17,872 thousand, compared with a segment loss of ¥37,971 thousand in the first 3 quarters of the previous consolidated fiscal year, due to the execution of construction and maintenance work for distillation equipment and steady orders for filtration equipment.」

「(Contract distillation business) Revenue from the contract distillation business was ¥588,251 thousand, up 11.5% year on year, and segment profit was ¥236,173 thousand, up 20.9% year on year. (Plant business) Revenue from the plant business was ¥117,321 thousand, up 138.6% year on year, and segment loss was ¥8,737 thousand, compared with a segment loss of ¥23,347 thousand in the first half of the previous consolidated fiscal year.」

「(Contract distillation business) In the contract distillation business, inquiries for a wide range of distillation projects, mainly for electronic materials, increased, and distillation projects were concentrated during the cumulative first quarter of the current consolidated fiscal year. As a result, revenue was ¥347,850 thousand, up 16.8% year on year, and segment profit was ¥177,124 thousand, up 40.6% year on year. (Plant business) In the plant business, delays in delivery from the previous fiscal year were resolved, and orders for both distillation and filtration equipment progressed steadily. As a result, revenue was ¥56,548 thousand, an increase of ¥37,503 thousand year on year, and segment loss was ¥3,646 thousand, compared with a segment loss of ¥15,661 thousand in the first quarter of the previous consolidated fiscal year.」

「(Contract distillation business) Revenue from the contract distillation business was ¥836,904 thousand, up 4.5% year on year, and segment profit was ¥347,257 thousand, up 16.8% year on year. (Plant business) Revenue from the plant business was ¥75,090 thousand, down 33.3% year on year, and segment loss was ¥37,971 thousand, compared with a segment loss of ¥38,613 thousand in the first 3 quarters of the previous consolidated fiscal year.」

「(Contract distillation business) Revenue from the contract distillation business was ¥527,795 thousand, up 2.5% year on year, and segment profit was ¥195,338 thousand, up 17.8% year on year. (Plant business) Revenue from the plant business was ¥49,165 thousand, up 8.9% year on year, and segment loss was ¥23,347 thousand, compared with a segment loss of ¥38,126 thousand in the first half of the previous consolidated fiscal year.」

「(Contract distillation business) Revenue from the contract distillation business was ¥297,760 thousand, down 18.7% year on year, and segment profit was ¥126,013 thousand, down 7.9% year on year. (Plant business) Revenue from the plant business was ¥19,045 thousand, compared with no revenue in the first quarter of the previous consolidated fiscal year, and segment loss was ¥15,661 thousand, compared with a segment loss of ¥5,626 thousand in the first quarter of the previous consolidated fiscal year.」

「The Group classifies its segments primarily based on the characteristics of its products and services, and has designated the contract distillation business and the plant business as its 2 reporting segments.」

「(Contract distillation business) Revenue from the contract distillation business was ¥801,001 thousand, up 16.1% year on year, and segment profit was ¥297,395 thousand, up 14.2% year on year. (Plant business) Revenue from the plant business was ¥112,618 thousand, up 1,842.2% year on year, and segment loss was ¥38,613 thousand, compared with a segment loss of ¥27,593 thousand in the same period of the previous year.」

「Previously, the Group had a single segment, the precision distillation business, comprising R&D support, contract processing and plant services. However, from the first quarter of the current consolidated fiscal year, the Company established ユカエンジニアリング株式会社 and obtained a general construction business license to undertake projects including plant construction. This expanded the size and scope of projects the Group could undertake, and the nature of the plant services business changed, increasing its importance to the Group. Accordingly, the Company changed its reporting structure to 2 segments: the contract distillation business, comprising R&D support and contract processing, and the plant business, comprising plant services.」

「Accordingly, the Company changed its reporting structure to 2 segments: the contract distillation business, comprising R&D support and contract processing, and the plant business, comprising plant services.」

「From the first quarter of the current consolidated fiscal year, the Company has prepared quarterly consolidated financial statements. Previously, the Group had a single segment, the precision distillation business, comprising R&D support, contract processing and plant services. Accordingly, the Company changed its reporting structure to 2 segments: the contract distillation business, comprising R&D support and contract processing, and the plant business, comprising plant services.」