Osaka Organic Chemical Industry (4187) investor relations material

Executive summary

• Net sales for 1H FY11/26 rose 15.1% year-over-year to ¥20,034 million, with operating profit up 51.4% to ¥4,424 million and profit attributable to owners of parent up 44.8% to ¥3,086 million.

• Growth was driven by strong performance in electronic materials and specialty chemicals, improved production efficiency, and expansion of environmentally friendly products.

• The company advanced its medium-term plan, expanded overseas operations, and formed a capital and business alliance with SANBO CHEMICAL IND. CO., LTD.

• All business segments—chemical products, electronic materials, and specialty chemicals—achieved year-over-year growth in both net sales and operating profit.

• The company revised its full-year forecast upward, expecting net sales of ¥39,000 million (+7.5% YoY), operating profit of ¥7,500 million (+21.2% YoY), and profit of ¥5,200 million (down 24.5% YoY due to prior year extraordinary income).

Financial highlights

• Net sales increased by ¥2,633 million (+15.1% YoY); operating profit rose by ¥1,501 million (+51.4% YoY); ordinary profit up ¥1,557 million (+51.2% YoY); profit attributable to owners of parent up ¥954 million (+44.8% YoY).

• Gross profit increased to ¥7,135 million from ¥5,514 million year-over-year.

• Comprehensive income surged to ¥5,558 million, up 183.3% year-over-year.

• Basic earnings per share increased to ¥151.76 from ¥103.71 year-over-year.

• Price of naphtha in Japan surged to ¥93,350/KL from ¥69,950/KL YoY; exchange rate moved from 150 to 157 Yen/USD.

Outlook and guidance

• Full-year net sales forecast revised to ¥39,000 million, operating profit to ¥7,500 million, and profit attributable to owners of parent to ¥5,200 million.

• Interim and year-end dividends raised to 43 yen each, annual dividend forecast at 86 yen, marking 12 consecutive years of increases.

• Demand for semiconductor materials expected to remain strong in 2H, though some areas may see a reactive slowdown.

• Forward-looking statements subject to change based on business conditions.