Supplementary Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | SANWAYUKA INDUSTRY CORPORATION (4125) timely disclosure

Worth reading

69In focus

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Direction

Improvement

Direction inferred from the company’s description.

Scale

2300

¥ million (amount of upward revision to the full-year revenue forecast)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation

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

Net Sales¥13,423 million+62.0%

Operating profit¥1,272 million+158.5%

Ordinary income¥1,238 million+111.3%

Net income¥815 million +116.7%net profit attributable to owners of the parent

Gross Profit Margin26.1

Operating profit margin9.5

Results for the three months of the current quarter

Net Sales

¥6,940 million

Operating profit

¥581 million

EBITDA

¥917 million

Full-year earnings forecast

Reuse revenue

¥10,800 million

Recycling net sales

¥6,200 million

Fine Chemicals net sales

¥4,200 million

Basic Chemicals net sales

¥3,000 million

Engineering net sales

¥1,600 million

Total revenue

¥25,800 million

Operating profit

¥2,300 million

Ordinary income

¥2,200 million

Profit attributable to owners of the parent

¥1,500 million

EBITDA

¥3,750 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Reuse revenue50.6%

Recycling net sales50.4%

Fine Chemicals net sales54.4%

Basic Chemicals net sales52.0%

Engineering net sales61.7%

Total revenue52.0%

Operating profit55.3%

Ordinary income56.3%

Profit attributable to owners of the parent54.4%

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Metal recovery¥320 million
Solvent recycling¥227 million
Fine chemical products¥117 million
Other¥382 million
Selling, general and administrative expenses, etc.¥-266 million

New initiatives

Construction of a new plant in Kitakyushu City, scheduled to begin operations in April 2027
Expansion of mixed-emulsion processing equipment
Construction of new tungsten recovery facilities
Expansion of indium recovery facilities
Capital participation in a Japan-Taiwan joint venture
Consolidation of engineering functions into a subsidiary and the subsidiary's capital increase

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

Recycled product volume (reuse)
Waste collection volume (recycling)
Product and merchandise sales volume (fine chemicals)
Number of orders received (engineering)
Research and Development Expenses¥251 million

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Recycled product sales volume and revenue
BusinessReused merchandise
DetailsBoth the handling volume and unit price of recycled products (solvents) remained firm
Waste collection volume and collection unit price
BusinessRecycling
DetailsVolume increased, while the collection unit price for processed waste remained flat
Product and merchandise sales volume and revenue
BusinessFine Chemicals
DetailsSales volume disclosed
Number of orders received and revenue
BusinessEngineering
DetailsIncrease in the number of small- and medium-sized projects won

Segment results

Reused merchandise

Net Sales

¥5,464 million

Year on year against the same period last year+176.1%

Recycling

Net Sales

¥3,127 million

Year on year against the same period last year+9.1%

Fine Chemicals

Net Sales

¥2,284 million

Year on year against the same period last year+53.0%

Basic chemicals

Net Sales

¥1,559 million

Year on year against the same period last year+16.3%

Engineering

Net Sales

¥987 million

Year on year against the same period last year+62.9%

Medium-term management plan targets

Fiscal year ending March 2029

Net Sales¥30,000 million

Operating profit¥2,600 million

Operating profit margin8.7% or higher

EBITDA¥4,800 million

EBITDA margin16.0% or higher

Grand Vision 2030

Net Sales¥35.0 billion

Operating profit¥4.2 billion

EBITDA¥6.6 billion

Capital expenditures

¥2,993 million first-half results for the fiscal year ending March 2027

Annual Dividend

Forecast for the fiscal year ending March 2027¥60.0 per share

Payout ratio

17.3% (fiscal year ending March 2027 forecast)

Contents of this document
Item	Details
Document type	Earnings presentation materials
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥13,423 million (YoY +62.0%)
Operating profit	¥1,272 million (YoY +158.5%)
Ordinary income	¥1,238 million (YoY +111.3%)
Net income	¥815 million (net profit attributable to owners of the parent) (YoY +116.7%)
Gross Profit Margin	26.1
Operating profit margin	9.5
Results for the three months of the current quarter	Net Sales ¥6,940 million / Operating profit ¥581 million / EBITDA ¥917 million
Full-year earnings forecast	Reuse revenue ¥10,800 million / Recycling net sales ¥6,200 million / Fine Chemicals net sales ¥4,200 million / Basic Chemicals net sales ¥3,000 million / Engineering net sales ¥1,600 million / Total revenue ¥25,800 million / Operating profit ¥2,300 million / Ordinary income ¥2,200 million / Profit attributable to owners of the parent ¥1,500 million / EBITDA ¥3,750 million
Progress against full-year forecast	Reuse revenue 50.6% / Recycling net sales 50.4% / Fine Chemicals net sales 54.4% / Basic Chemicals net sales 52.0% / Engineering net sales 61.7% / Total revenue 52.0% / Operating profit 55.3% / Ordinary income 56.3% / Profit attributable to owners of the parent 54.4%
Segment results	Reused merchandise Net Sales ¥5,464 million / Year on year against the same period last year +176.1% / Recycling Net Sales ¥3,127 million / Year on year against the same period last year +9.1% / Fine Chemicals Net Sales ¥2,284 million / Year on year against the same period last year +53.0% / Basic chemicals Net Sales ¥1,559 million / Year on year against the same period last year +16.3% / Engineering Net Sales ¥987 million / Year on year against the same period last year +62.9% / Segment profit Not disclosed
Breakdown of Factors Affecting the Change	Factors Metal recovery / Amount ¥320 million, Factors Solvent recycling / Amount ¥227 million, Factors Fine chemical products / Amount ¥117 million, Factors Other / Amount ¥382 million, Factors Selling, general and administrative expenses, etc. / Amount ¥-266 million
Key KPIs	Indicator name Recycled product volume (reuse) / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name Waste collection volume (recycling) / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name Product and merchandise sales volume (fine chemicals) / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name Number of orders received (engineering) / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name Research and Development Expenses / Value ¥251 million / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Business Reused merchandise / Indicator Recycled product sales volume and revenue / Details Both the handling volume and unit price of recycled products (solvents) remained firm, Business Recycling / Indicator Waste collection volume and collection unit price / Details Volume increased, while the collection unit price for processed waste remained flat, Business Fine Chemicals / Indicator Product and merchandise sales volume and revenue / Details Sales volume disclosed, Business Engineering / Indicator Number of orders received and revenue / Details Increase in the number of small- and medium-sized projects won
Medium-term management plan targets	Fiscal year ending March 2029 Net Sales ¥30,000 million / Operating profit ¥2,600 million / Operating profit margin 8.7% or higher / EBITDA ¥4,800 million / EBITDA margin 16.0% or higher / Grand Vision 2030 Net Sales ¥35.0 billion / Operating profit ¥4.2 billion / EBITDA ¥6.6 billion
Annual Dividend	Forecast for the fiscal year ending March 2027 ¥60.0 per share / Breakdown Not disclosed
Payout ratio	17.3% (fiscal year ending March 2027 forecast)
Capital expenditures	¥2,993 million (first-half results for the fiscal year ending March 2027)
New initiatives	Construction of a new plant in Kitakyushu City, scheduled to begin operations in April 2027, Expansion of mixed-emulsion processing equipment, Construction of new tungsten recovery facilities, Expansion of indium recovery facilities, Capital participation in a Japan-Taiwan joint venture, Consolidation of engineering functions into a subsidiary and the subsidiary's capital increase

Items this document does not state (11)

Selling, general and administrative expensesSelf-assessment against the planNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesOrders 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.

The Company identified the expansion of the metal business through a business combination, higher sales volumes and unit prices for recycled solvents, higher handling volumes of fine chemical products, and progress on large-scale dismantling projects as factors driving profit growth in the first half. The upward revision to the full-year forecast reflects strong progress in fine chemical contract manufacturing and dismantling projects. The Company also explained that higher interest expense and a loss on disposal resulting from the demolition of part of the buildings at its head office plant would partially weigh on profit.

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