FY2018-Q1: Key segments posted higher revenue and profit, while the Lifestyle-related segment posted lower revenue and profit

「Electronics & Energy　Operating profit　14,859　12,302　2,557　20.8／Mobility　Operating profit　3,785　4,238　△452　△10.7／Lifestyle-related　Operating profit　9,832　3,423　6,408　187.2」

「Electronics & Energy　Operating profit　6,767　5,981　786　13.1／Mobility　Operating profit　1,860　2,272　△411　△18.1／Lifestyle-related　Operating profit　4,555　1,974　2,580　130.7」

「In addition to increased sales of food ingredients by the Prinova Group, the gross profit margin improved from the same period of the previous year, when market conditions were declining／Operating profit declined as selling, general and administrative expenses increased due to the Prinova Group’s recognition of an allowance for doubtful accounts and higher personnel expenses, despite an increase in gross profit.」

「Despite deteriorating semiconductor market conditions, sales of materials for the semiconductor industry increased as the product lineup expanded / Operating income increased as gross profit rose / Sales at the Prinova Group increased overall, partly because the new Utah plant began operations / Operating income declined despite higher gross profit, mainly due to higher selling, general and administrative expenses, including personnel expenses, at the Prinova Group and the delayed contribution to earnings from the new Utah plant」

「Despite deteriorating semiconductor market conditions, sales of materials for the semiconductor industry increased as the product lineup expanded. Resin sales increased due to higher automotive production volumes and increased market share among existing customers. Sales at the Prinova Group increased overall as the new Utah plant began operations and the yen weakened. Operating income declined despite higher gross profit, mainly due to higher selling, general and administrative expenses, including personnel expenses, at the Prinova Group and the delayed contribution to earnings from the new Utah plant.」

「Resin sales increased in response to higher automotive production volumes. Operating income increased as gross profit rose. The Prinova Group's profitability declined and sales decreased due to lower market prices for food ingredients. Operating income declined despite higher gross profit, mainly due to lower profitability in the Prinova Group's food ingredients sales, higher selling, general and administrative expenses, including personnel expenses, and the delayed contribution to earnings from the new Utah plant.」

「By segment, profit increased in the Lifestyle-related segment, driven by the Prinova Group, while the Functional Materials and Mobility segments remained strong. Meanwhile, profit declined in the Processing Materials and Electronics & Energy segments.」

「By segment, Processing Materials and Electronics and Energy reported lower earnings, while Lifestyle-related reported a significant increase in earnings driven by the Prinova Group, and Functional Materials and Mobility performed well.」

「The main factors behind the increase in earnings were a significant increase in earnings in Lifestyle-related, driven by the Prinova Group, and strong performance in Functional Materials, despite lower earnings in the Processing Materials segment.」

「As earnings increased in all segments during the cumulative third quarter of the current consolidated fiscal year, all profit metrics from gross profit onward reached record highs for a third quarter.」

「As earnings increased in all segments during the cumulative second quarter of the current consolidated fiscal year, all profit metrics from gross profit onward reached record highs for a second quarter.」

「As earnings increased in all segments during the cumulative first quarter of the current consolidated fiscal year, all profit metrics from gross profit onward reached record highs for a first quarter.」

「In the Lifestyle-related business, domestic sales declined due to lower demand resulting from the impact of COVID-19 and other factors. However, overseas sales increased because sales from the Prinova Group, acquired in the second quarter of the previous consolidated fiscal year, were added, resulting in a substantial overall increase in sales.」

「In Functional Materials, sales declined both domestically and overseas, mainly because automotive production volumes declined in all regions except Greater China due to the spread of COVID-19. In Electronics, sales of precision processing for semiconductor back-end processes increased, but sales of display materials declined slightly, while sales of photoresist materials, modified epoxy resins for heavy and light electrical applications, and equipment-related products decreased, resulting in an overall sales decline. As a result, net sales were ¥54.42 billion, a decrease of ¥2.88 billion, or 5.0%, from the cumulative second quarter of the previous consolidated fiscal year. Operating income increased ¥400 million, or 12.9%, to ¥3.53 billion, mainly because the profitability of some manufacturing subsidiaries improved. In Lifestyle-related, domestic sales declined due to lower demand and other effects of COVID-19, but overseas sales increased because sales from the Prinova Group, acquired during the second quarter of the previous consolidated fiscal year, were added, resulting in a significant overall increase in sales.」

「In Functional Materials, sales declined both domestically and overseas, mainly because automotive production volumes declined in Japan and overseas markets due to the impact of COVID-19. In Processing Materials, sales declined both domestically and overseas because the impact of COVID-19 was broad-based, particularly in the resin business. In Electronics, sales increased in precision processing for semiconductor back-end processes, but declined in photoresist materials, modified epoxy resins for heavy and light electrical applications, equipment-related products and display-related materials, resulting in an overall sales decline. In the Mobility Solutions business, sales declined significantly both domestically and overseas because sales of automotive electronics-related materials in Japan and resin products in Japan and overseas decreased, mainly due to lower automotive production volumes caused by COVID-19. In Lifestyle-related, domestic sales declined due to lower demand and other effects of COVID-19, but overseas sales increased because sales from the Prinova Group, acquired during the second quarter of the previous consolidated fiscal year, were added, resulting in a significant overall increase in sales.」

「Operating income was ¥4.09 billion, a decrease of ¥130 million, or 3.2%, from the cumulative third quarter of the previous consolidated fiscal year. Operating income increased ¥150 million, or 2.3%, to ¥6.96 billion, mainly because the profitability of domestic manufacturing subsidiaries improved. Operating income was ¥4.14 billion, a decrease of ¥2.05 billion, or 33.2%. Operating income was ¥1.56 billion, a decrease of ¥900 million, or 36.8%. Operating income declined ¥1.07 billion, or 29.1%, to ¥2.62 billion, mainly because the profitability of some domestic manufacturing subsidiaries deteriorated.」

「Sales in Functional Materials declined slightly overall as domestic sales declined slightly and overseas sales decreased. Sales in Processing Materials declined overall as domestic sales were flat but overseas sales decreased. In Electronics, sales of modified epoxy resins for the semiconductor industry and other applications and photoresist materials increased, but sales of precision processing for semiconductor back-end processes, equipment-related products and display-related materials decreased, resulting in an overall sales decline. In the Mobility Solutions business, sales declined overall as a slight increase in domestic resin business and automotive electronics-related materials was outweighed by lower overseas resin sales. Sales in Lifestyle-related increased overall as domestic sales rose slightly and overseas sales increased.」

「Sales in Functional Materials declined slightly both domestically and overseas. As a result, net sales were ¥67.39 billion, a decrease of ¥1.32 billion, or 1.9%, from the cumulative first quarter of the previous consolidated fiscal year. Operating income was ¥2.03 billion, a decrease of ¥260 million, or 11.7%. Sales in Lifestyle-related increased overall because domestic sales rose slightly and overseas sales increased.」

「Sales in Functional Materials increased both domestically and overseas. Sales in Processing Materials also increased both domestically and overseas. Sales in Electronics declined both domestically and overseas. Sales in the Automotive Materials business increased overall because the resin business performed well in Japan, Greater China and ASEAN, while sales of automotive electronics-related materials also increased. Sales in Lifestyle-related increased both domestically and overseas.」

「Sales in Functional Materials increased both domestically and overseas. Sales in Processing Materials also increased both domestically and overseas. Sales in Electronics declined both domestically and overseas. Sales in the Automotive Materials business increased overall because the resin business performed well in Japan, Greater China and ASEAN, while sales of automotive electronics-related materials also increased. Sales in Lifestyle-related increased both domestically and overseas.」

「Sales in Functional Materials increased both domestically and overseas. Sales in Processing Materials increased both domestically and overseas. Sales in Electronics declined both domestically and overseas. Sales in the Automotive Materials business increased overall because the resin business performed well in Japan, Greater China and ASEAN, while sales of automotive electronics-related materials also increased. Sales in Lifestyle-related were flat both domestically and overseas.」

「As a result, net sales were ¥29.28 billion, a decrease of ¥1.25 billion, or 4.1%, from the cumulative first quarter of the previous consolidated fiscal year. Operating income increased ¥140 million, or 8.1%, to ¥1.86 billion, mainly because high-margin businesses in Greater China performed steadily.」

「Sales in Functional Materials increased both domestically and overseas. Sales in Processing Materials also increased both domestically and overseas. Sales in Electronics increased overall as the domestic and overseas manufacturing subsidiaries performed steadily. In the Automotive Materials business, sales increased overall, mainly because the resin business performed well in Japan, Greater China and ASEAN. In Lifestyle-related, domestic sales declined, but overseas sales increased, resulting in a slight overall increase in sales.」

「Sales in Functional Materials increased both domestically and overseas. Sales in Processing Materials also increased both domestically and overseas. Sales in Electronics increased both domestically and overseas. In the Automotive Materials business, sales increased overall, mainly because the resin business performed well in Japan, Greater China and ASEAN. In Lifestyle-related, domestic sales were flat, but overseas sales increased, resulting in a slight overall increase in sales.」

「As a result, net sales were ¥84.79 billion, an increase of ¥10.66 billion, or 14.4%, from the cumulative second quarter of the previous consolidated fiscal year. Operating income was ¥2.64 billion, an increase of ¥790 million, or 42.9%. As a result, net sales were ¥131.83 billion, an increase of ¥11.61 billion, or 9.7%. Operating income was ¥3.58 billion, an increase of ¥920 million, or 34.7%. As a result, net sales were ¥65.70 billion, an increase of ¥3.18 billion, or 5.1%. Operating income was ¥4.35 billion, an increase of ¥1.16 billion, or 36.6%. As a result, net sales were ¥62.74 billion, an increase of ¥10.33 billion, or 19.7%. Operating income was ¥1.43 billion, an increase of ¥910 million, or 177.3%. As a result, net sales were ¥42.12 billion, an increase of ¥850 million, or 2.1%. Operating income was ¥2.33 billion, an increase of ¥480 million, or 26.2%.」

「As a result, net sales were ¥40.32 billion, an increase of ¥3.23 billion, or 8.7%, from the cumulative first quarter of the previous consolidated fiscal year. Operating income was ¥1.17 billion, an increase of ¥310 million, or 35.8%. As a result, net sales were ¥64.59 billion, an increase of ¥5.90 billion, or 10.1%, from the cumulative first quarter of the previous consolidated fiscal year. Operating income was ¥1.66 billion, an increase of ¥450 million, or 38.2%. As a result, net sales were ¥30.53 billion, an increase of ¥650 million, or 2.2%, from the cumulative first quarter of the previous consolidated fiscal year. Operating income was ¥1.72 billion, an increase of ¥240 million, or 16.5%. As a result, net sales were ¥30.73 billion, an increase of ¥4.51 billion, or 17.2%, from the cumulative first quarter of the previous consolidated fiscal year. Operating income was ¥670 million, an increase of ¥400 million, or 150.0%. As a result, net sales were ¥20.79 billion, a decrease of ¥530 million, or 2.5%, from the cumulative first quarter of the previous consolidated fiscal year. Operating income was ¥1.21 billion, a decrease of ¥30 million, or 2.8%.」