Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | Soken Chemical & Engineering Co.,Ltd. (4972) timely disclosure

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Scale

-176

¥ millions (year-on-year change in operating profit)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year12 items taken from the company’s own explanation

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

Net Sales¥47,967 million+0.7%

Operating profit¥6,171 million-2.8%

Ordinary income¥6,239 million-1.6%

Net income¥4,046 million -7.6%net income attributable to owners of the parent

Operating profit margin12.9% (down 0.4 percentage points year on year)

Full-year earnings forecast

Net Sales

¥51,500 million

Operating profit

¥6,300 million

Ordinary income

¥6,200 million

Net income

¥4,300 million net income attributable to owners of the parent

Operating profit margin

12.2 %

Period-end exchange rate

23 yen/RMB

Dividend per share

To be determined

What the company explained in this material

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

Raw material prices¥6.1 100 million
Changes in sales and other factors¥-1.3 100 million
Depreciation¥-0.9 100 million
Expenses¥-7 100 million
Foreign exchange translation differences¥1.4 100 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Period-end exchange rate23 yen/RMB
Raw material pricesBroadly at the same level as the previous fiscal year

New initiatives

Launch of the new medium-term management plan, Advance 2028
Business expansion in the ASEAN and Indian regions
Rebuilding the Thailand operations and making a full-scale entry into the Indian market
Creating new businesses in the medical and healthcare, environment and energy fields through collaboration with academia and startups
Establishing and reorganizing domestic business locations, and automating and reducing labor requirements
Implement flexible share buybacks.

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

ROA11.1 %
Year on year against the same period last yearImproved from 4.7% in fiscal 2022
ROE10.2 %
Year on year against the same period last yearImproved from 4.9% in fiscal 2022
PBR1.32 times
Year on year against the same period last yearUp from 0.67 times in fiscal 2025
Overseas revenue ratio63.6 %
Year on year against the same period last yearDown from 65.6% in the fiscal year ended March 2025

Segment results

Chemicals
Net Sales¥43,824 million
Adhesives
Net Sales¥31,282 million
Micropowders
Net Sales¥2,975 million
Specialty functional materials
Net Sales¥3,072 million
Processed products
Net Sales¥6,494 million
Equipment Systems
Net Sales¥4,143 million

Medium-term management plan targets

Plan nameAdvance 2028

Target fiscal yearFY2028

Net Sales

¥560 100 million

Operating profit

¥75 100 million

Operating profit margin

13.4 %

ROA

10.5 %

ROE

11.5 %

Growth and maintenance investments

¥270 100 million

Compared with fiscal 2025 resultsCompared with fiscal 2025 results: revenue of ¥47.9 billion, operating profit of ¥6.1 billion and ROE of 10.2%

Financial targets

ROA

Target10.5 %

Actual results11.1 %

ROE

Target11.5 %

Actual results10.2 %

Market Size / Share

The materials state that the company has secured the top market share in adhesives for the liquid crystal display sector, but the market share percentage is Not disclosed

Capital expenditures

¥32.5 100 million actual for the fiscal year ended March 2026

Annual Dividend

Annual dividend per share¥75.0 expected for fiscal 2025; dividend forecast for the fiscal year ending March 2027 is undecided

Payout ratio

30.7% expected for fiscal 2025. Under Advance 2028, the policy is to gradually raise DOE from 3.1% to 4.0%

Acquisition of treasury shares

The policy is to conduct share repurchases flexibly depending on the progress of growth investments and other factors. The amount, number of shares and period for the repurchase authorization are Not disclosed

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fiscal year ending March 2026, full year
Net Sales	¥47,967 million (YoY +0.7%)
Operating profit	¥6,171 million (YoY -2.8%)
Ordinary income	¥6,239 million (YoY -1.6%)
Net income	¥4,046 million (net income attributable to owners of the parent) (YoY -7.6%)
Operating profit margin	12.9% (down 0.4 percentage points year on year)
Full-year earnings forecast	Net Sales ¥51,500 million / Operating profit ¥6,300 million / Ordinary income ¥6,200 million / Net income ¥4,300 million (net income attributable to owners of the parent) / Operating profit margin 12.2 % / Period-end exchange rate 23 yen/RMB / Dividend per share To be determined
Segment results	Segment Chemicals / Net Sales ¥43,824 million / Profit Not disclosed / yoy_pct -2.4, Segment Adhesives / Net Sales ¥31,282 million / Profit Not disclosed / yoy_pct -2.2, Segment Micropowders / Net Sales ¥2,975 million / Profit Not disclosed / yoy_pct -0.9, Segment Specialty functional materials / Net Sales ¥3,072 million / Profit Not disclosed / yoy_pct 4.3, Segment Processed products / Net Sales ¥6,494 million / Profit Not disclosed / yoy_pct -7.1, Segment Equipment Systems / Net Sales ¥4,143 million / Profit Not disclosed / yoy_pct 52.3
Breakdown of Factors Affecting the Change	Factors Raw material prices / Amount ¥6.1 100 million, Factors Changes in sales and other factors / Amount ¥-1.3 100 million, Factors Depreciation / Amount ¥-0.9 100 million, Factors Expenses / Amount ¥-7 100 million, Factors Foreign exchange translation differences / Amount ¥1.4 100 million
Key KPIs	Indicator name ROA / Value 11.1 % / Year on year against the same period last year Improved from 4.7% in fiscal 2022, Indicator name ROE / Value 10.2 % / Year on year against the same period last year Improved from 4.9% in fiscal 2022, Indicator name PBR / Value 1.32 times / Year on year against the same period last year Up from 0.67 times in fiscal 2025, Indicator name Overseas revenue ratio / Value 63.6 % / Year on year against the same period last year Down from 65.6% in the fiscal year ended March 2025
Assumptions Underlying the Business Outlook	Item Period-end exchange rate / Value 23 yen/RMB, Item Raw material prices / Value Broadly at the same level as the previous fiscal year
Medium-term management plan targets	Plan name Advance 2028 / Target fiscal year FY2028 / Net Sales ¥560 100 million / Operating profit ¥75 100 million / Operating profit margin 13.4 % / ROA 10.5 % / ROE 11.5 % / Growth and maintenance investments ¥270 100 million / Compared with fiscal 2025 results Compared with fiscal 2025 results: revenue of ¥47.9 billion, operating profit of ¥6.1 billion and ROE of 10.2%
Financial targets	ROA Target 10.5 % / Actual results 11.1 % / ROE Target 11.5 % / Actual results 10.2 %
Annual Dividend	Annual dividend per share ¥75.0 expected for fiscal 2025; dividend forecast for the fiscal year ending March 2027 is undecided / Interim Not disclosed / End of period Not disclosed
Payout ratio	30.7% expected for fiscal 2025. Under Advance 2028, the policy is to gradually raise DOE from 3.1% to 4.0%
Acquisition of treasury shares	The policy is to conduct share repurchases flexibly depending on the progress of growth investments and other factors. The amount, number of shares and period for the repurchase authorization are Not disclosed
Capital expenditures	¥32.5 100 million (actual for the fiscal year ended March 2026)
Market Size / Share	The materials state that the company has secured the top market share in adhesives for the liquid crystal display sector, but the market share percentage is Not disclosed
New initiatives	Launch of the new medium-term management plan, Advance 2028, Business expansion in the ASEAN and Indian regions, Rebuilding the Thailand operations and making a full-scale entry into the Indian market, Creating new businesses in the medical and healthcare, environment and energy fields through collaboration with academia and startups, Establishing and reorganizing domestic business locations, and automating and reducing labor requirements, Implement flexible share buybacks.

Items this document does not state (11)

Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders 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.

In Chemicals, the recovery in demand related to liquid crystal displays was gradual, while price reductions due to lower raw material prices and lower sales of processed products affected results. In terms of profit, personnel expenses, logistics costs and development expenses also increased, in addition to the impact of price reductions.

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