Briefing on results for the second quarter of the fiscal year ending March 2027 | S.T.CORPORATION (4951) timely disclosure

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

¥ billion (year-on-year change in operating profit, decrease)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation

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

Net Sales¥246.4 100 million+2.0%

Operating profit¥8 100 million-56.2%

Ordinary income¥10.5 100 million-46.9%

Net income¥17.1 100 million+27.9%

Gross Profit Margin37.4%

Operating profit margin3.3%

Selling, general and administrative expenses¥84.2 100 million

Full-year earnings forecast

Net Sales

¥500 100 million

Operating profit

¥12 100 million

Ordinary income

¥16 100 million

Profit attributable to owners of the parent

¥20 100 million

Annual Dividend

46 Yen

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Failure to meet the plan due to worsening external conditions

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

Year-on-Year Change in Operating Profit

Volume factor275 Millions of yen

Pricing333 Millions of yen

Sales deductions and other items17 Millions of yen

Disposal and valuation losses, etc.-214 Millions of yen

Cost factor-856 Millions of yen

Marketing expenses-319 Millions of yen

Other SG&A expenses-270 Millions of yen

Change in operating profit versus plan

Volume factor-483 Millions of yen

Pricing178 Millions of yen

Sales deductions and other items-19 Millions of yen

Disposal and valuation losses, etc.-165 Millions of yen

Cost factor121 Millions of yen

Marketing expenses-593 Millions of yen

Other SG&A expenses367 Millions of yen

New initiatives

Project to reform the earnings structure of existing businesses
Expansion of B2B coating services and fragrance-space production
Transformation into an R&D structure focused on creating new value
Business development in the livestock sector using todomatsu fir extract
Strengthening product development capabilities in Thailand and expanding the overseas pet care business
Launch of new products from spring 2027
Use of generative AI and promotion of digital transformation
In-house device development and expansion of the leasing model

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

System toilet units sold122 % year on year
Year on year against the same period last year+22.0%
Inventory value at the end of September 2026111 % of the year-ago month
Year on year against the same period last year+11.0%
SKU count782 (741 in the previous year)
Year on year against the same period last yearIncreased
Overseas Sales¥3.6 100 million
Year on year against the same period last yearDecreased from ¥400 million in the previous year
B2B revenue¥28 100 million
Year on year against the same period last yearIncreased from ¥2.5 billion in the previous year
Operational Efficiency Through Generative AI3.7 Hours per person per month

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

The disclosure cites quantity and selling price factors, year-on-year sales of system toilet units at 122%, and a ¥513 million benefit from higher selling prices for products subject to price revisions.

Segment results

Air Care

Net Sales¥115.2 100 million

Year on year against the same period last year101.4%

Pet Care

Net Sales¥19.7 100 million

Year on year against the same period last year105.9%

Fabric Care

Net Sales¥36.7 100 million

Year on year against the same period last year99.9%

Home Care

Net Sales¥23.7 100 million

Year on year against the same period last year94.2%

Humidity Care

Net Sales¥17.9 100 million

Year on year against the same period last year107.8%

Thermo Care

Net Sales¥5.5 100 million

Year on year against the same period last year83.1%

Hand Care

Net Sales¥27.3 100 million

Year on year against the same period last year114.6%

Medium-term management plan targets

Plan nameSMILE 2027

Target fiscal yearFiscal year ending March 2027

Further Revised Target

Net Sales¥50.0 billion

Operating profit¥1.2bn

Operating profit margin2.4%

EBITDA¥3 billion

ROE6.1%

Initial Revised Plan

Net Sales¥52.0 billion

Operating profit¥2.5 billion

ROE5.3%

Comparison with actual resultsActual results for the fiscal year ended March 2026 were revenue of ¥48.4 billion, operating profit of ¥1.9 billion and ROE of 4.9%.

Financial targets

ROE

Actual results4.9% (fiscal year ended March 2026)

Revised plan5.3%

Further revision6.1%

DOE3% target

Market Size / Share

The disclosure states that the deodorizer and air freshener market continues to expand. The figure is Not disclosed.

Annual Dividend

Annual dividend per share46 Yen

Payout ratio

46.8%

Acquisition of treasury shares

¥2.39 billion

PeriodAugust 2026

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥246.4 100 million (YoY +2.0%)
Operating profit	¥8 100 million (YoY -56.2%)
Ordinary income	¥10.5 100 million (YoY -46.9%)
Net income	¥17.1 100 million (YoY +27.9%)
Gross Profit Margin	37.4%
Operating profit margin	3.3%
Selling, general and administrative expenses	¥84.2 100 million
Full-year earnings forecast	Net Sales ¥500 100 million / Operating profit ¥12 100 million / Ordinary income ¥16 100 million / Profit attributable to owners of the parent ¥20 100 million / Annual Dividend 46 Yen
Self-assessment against the plan	Failure to meet the plan due to worsening external conditions
Segment results	Air Care Net Sales ¥115.2 100 million / Year on year against the same period last year 101.4% / Pet Care Net Sales ¥19.7 100 million / Year on year against the same period last year 105.9% / Fabric Care Net Sales ¥36.7 100 million / Year on year against the same period last year 99.9% / Home Care Net Sales ¥23.7 100 million / Year on year against the same period last year 94.2% / Humidity Care Net Sales ¥17.9 100 million / Year on year against the same period last year 107.8% / Thermo Care Net Sales ¥5.5 100 million / Year on year against the same period last year 83.1% / Hand Care Net Sales ¥27.3 100 million / Year on year against the same period last year 114.6%
Breakdown of Factors Affecting the Change	Year-on-Year Change in Operating Profit Volume factor 275 Millions of yen / Pricing 333 Millions of yen / Sales deductions and other items 17 Millions of yen / Disposal and valuation losses, etc. -214 Millions of yen / Cost factor -856 Millions of yen / Marketing expenses -319 Millions of yen / Other SG&A expenses -270 Millions of yen / Change in operating profit versus plan Volume factor -483 Millions of yen / Pricing 178 Millions of yen / Sales deductions and other items -19 Millions of yen / Disposal and valuation losses, etc. -165 Millions of yen / Cost factor 121 Millions of yen / Marketing expenses -593 Millions of yen / Other SG&A expenses 367 Millions of yen
Key KPIs	Indicator name System toilet units sold / Value 122 % year on year / Year on year against the same period last year 22 % year on year, Indicator name Inventory value at the end of September 2026 / Value 111 % of the year-ago month / Year on year against the same period last year 11 % of the year-ago month, Indicator name SKU count / Value 782 (741 in the previous year) / Year on year against the same period last year Increased, Indicator name Overseas Sales / Value ¥3.6 100 million / Year on year against the same period last year Decreased from ¥400 million in the previous year, Indicator name B2B revenue / Value ¥28 100 million / Year on year against the same period last year Increased from ¥2.5 billion in the previous year, Indicator name Operational Efficiency Through Generative AI / Value 3.7 Hours per person per month / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	The disclosure cites quantity and selling price factors, year-on-year sales of system toilet units at 122%, and a ¥513 million benefit from higher selling prices for products subject to price revisions.
Medium-term management plan targets	Plan name SMILE 2027 / Target fiscal year Fiscal year ending March 2027 / Further Revised Target Net Sales ¥50.0 billion / Operating profit ¥1.2bn / Operating profit margin 2.4% / EBITDA ¥3 billion / ROE 6.1% / Initial Revised Plan Net Sales ¥52.0 billion / Operating profit ¥2.5 billion / ROE 5.3% / Comparison with actual results Actual results for the fiscal year ended March 2026 were revenue of ¥48.4 billion, operating profit of ¥1.9 billion and ROE of 4.9%.
Financial targets	ROE Actual results 4.9% (fiscal year ended March 2026) / Revised plan 5.3% / Further revision 6.1% / DOE 3% target
Annual Dividend	Annual dividend per share 46 Yen / Breakdown Not disclosed
Payout ratio	46.8%
Acquisition of treasury shares	Amount ¥2.39 billion / Period August 2026
Market Size / Share	The disclosure states that the deodorizer and air freshener market continues to expand. The figure is Not disclosed.
New initiatives	Project to reform the earnings structure of existing businesses, Expansion of B2B coating services and fragrance-space production, Transformation into an R&D structure focused on creating new value, Business development in the livestock sector using todomatsu fir extract, Strengthening product development capabilities in Thailand and expanding the overseas pet care business, Launch of new products from spring 2027, Use of generative AI and promotion of digital transformation, In-house device development and expansion of the leasing model

Items this document does not state (9)

Results for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogKey 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.

Operating profit declined due to higher costs for raw materials, processing fees and other items resulting from the situation in the Middle East, increased advertising expenses as a reaction to the partial suspension of commercial placements in the same quarter of the previous year, and expanded research and development expenses. Net income increased on gains from the sale of investment securities.

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