Toyo Tanso (5310) investor relations material

Executive summary

• Net sales for H1 FY2026 were ¥22,370 million, down 2.7% year-over-year and 0.6% below forecast, with operating profit at ¥1,778 million (down 53.7%), ordinary profit at ¥2,229 million (down 41.2%), and profit attributable to owners at ¥1,677 million (down 37.4%).

• The global economy showed resilience but faced uncertainty from rising energy prices and geopolitical tensions, impacting manufacturing costs and demand in key sectors.

• Demand for electronics and AI-related fields improved toward the period's end, while semiconductor applications remained sluggish due to inventory adjustments.

Financial highlights

• Gross profit declined to ¥6,113 million from ¥8,301 million year-over-year, and operating profit margin dropped to 7.9% from 16.7% a year earlier.

• Comprehensive income rose to ¥3,116 million from ¥1,311 million, driven by foreign currency translation gains.

• Basic EPS for H1 FY2026 was ¥80.00, down from ¥127.85 in H1 FY2025.

• Equity ratio at end of H1 FY2026 was 81.6%.

• Cash and cash equivalents increased to ¥12,076 million at period-end, up from ¥9,953 million a year earlier.

Outlook and guidance

• Full-year FY2026 net sales forecast at ¥49,000 million, up 6.1% year-over-year, with operating profit projected at ¥6,200 million (down 8.3%), ordinary income at ¥6,000 million (down 25.8%), and profit attributable to owners at ¥5,000 million (down 8.5%).

• H2 FY2026 operating profit expected to recover substantially, driven by improved product mix and higher volumes in semiconductor applications.

• Dividend per share to be maintained at ¥145, with payout ratio rising to 60.8%.

• Uncertainties from rising fuel prices and geopolitical risks are not yet reflected in forecasts; updates will be provided if significant impacts arise.