During fiscal year ended March 31, 2026, the global economy maintained steady growth but faced continuing uncertainty from geopolitical risks, such as the prolongation of the Russia-Ukraine war, heightened tensions in the Middle East, and the structuralization of the U.S.-China confrontation.
　The Mobility & Imaging Business Unit is affected by trends in the global mobility market. Although the situation is constantly changing, such as with the re-evaluation of hybrids over electric vehicles, the need for development of products that improve safety and comfort is high, and this is a promising market where medium- to long-term expansion can be expected in the future.
　In the Fine Chemicals Business Unit, the need for semiconductor materials is increasing as rapid ad-vances in digital technology lead to higher performance in the next generation of high-speed (5G/6G) communications devices and other digital equipment, the proliferation and growth of AI servers and other servers for data centers, and increasingly sophisticated electronic equipment in automobiles. In the printing industry, the switch from conventional analog printing to digitalization is advancing, and the need for environmental friendliness is increasing, one example of which is the demand for non-phenolic materials in the area of developer for thermal paper.

　In the Life Science Business Unit, we contribute to extending the healthy lifespan of people in Japan through innovative drug development while ensuring a stable supply of high quality pharmaceuticals. We must do this to pass on a society to the next generation where all people in Japan can be assured of receiving quality medical care. Nippon Kayaku must determine how to swiftly and consistently engage in pharma-ceutical research, development, manufacturing, and supply to meet these expectations. However, the increase in medical and other social security expenses is straining consumer finances and achieving sustainable healthcare is a challenge for us amid even stricter government measures to curb drug prices and other medical expenses. Products that contribute both to increased food production and reduction in negative environ-mental impacts by the agriculture industry are necessary as the global population continues to increase and importance of food security is stressed. To achieve these missions, we must continue to provide excellent, environmentally friendly agrochemicals along with the technology and services for them, support food supply, and contribute to growth of sustainable agriculture.
　The Nippon Kayaku Group entered the final year of ”KAYAKU Vision 2025 (KV25)”, the mid-term business plan which began in April 2022, amid such conditions. We continued to implement the roadmap to the vision specified for each business while advancing initiatives to address key company-wide issues aimed at achieving the vision.

　As a result, consolidated net sales for the fiscal year ended March 31, 2026 totaled 241,851 million yen, an increase of 19,266 million yen (8.7%) year-on-year. Sales in the Mobility & Imaging Business Unit, Fine Chemicals Business Unit, and Life Science Business Unit all outperformed the previous fiscal year.
　Operating income increased by 2,052 million yen (10.1%) to 22,454 million yen compared to the pre-vious fiscal year.
　Consolidated ordinary income totaled 25,478 million yen, an increase of 3,211 million yen (14.4%) year-on-year. This increase was due to growth in consolidated operating income and an increase in foreign exchange gains.
　Profit attributable to owners of parent was 24,641 million yen, an increase of 7,132 million yen (40.7%) year-on-year. The increase was mainly due to a gain on sale of investment securities.

Sales rose to 94,714 million yen, an increase of 3,338 million yen (3.7%) year-on-year.
　In the safety systems business, although there was some impact from U.S. government tariff policy, automobile production overall remained firm both in Japan and overseas. In the Chinese market in particular, sales to local manufacturers in China were strong, supported by subsidies and incentives continuing from the previous fiscal year. Accordingly, sales of airbag inflators, micro gas generators for seatbelt pretensioners, and squibs all outperformed year-on-year. The safety systems business overall outperformed year-on-year as a result.
　In the Polatechno business, shades for HUDs recorded year-on-year growth, while LCD projector components underperformed year-on-year, and components for X-ray analysis systems also underperformed year-on-year due to inventory adjustments by main customers. Polarizing films were nearly on par with the previous fiscal year. The Polatechno business overall underperformed year-on-year as a result.
　Segment profit totaled 10,654 million yen, a decrease of 2,657 million yen (20.0%) year-on-year. This decrease resulted from the significant impact of steep price increases for raw materials, despite efforts to pass on costs to product prices.

Sales rose to 74,142 million yen, an increase of 7,935 million yen (12.0%) year-on-year.
　The functional materials business as a whole outperformed the previous fiscal year. This outperformance resulted from firm demand for every product group due to expanding demand for AI and high-end servers in cutting-edge areas of semiconductors and signs of rebound in the general-purpose semiconductor market.
　The color materials business as a whole underperformed the previous fiscal year. This resulted from underperformance of home inkjet printer colorants compared to the previous fiscal year, despite the contribution from strong sales of developer for thermal paper, reflecting the shift to phenol-free products in response to stricter regulations in the U.S. market, and the launch of new dichromatic colorants.
　The catalyst business outperformed year-on-year, as performance was firm in the fourth quarter despite being sluggish until the third quarter.
　Segment profit totaled 11,929 million yen, an increase of 2,030 million yen (20.5%) year-on-year. Sales growth contributed to this increase in segment profit.

Sales rose to 72,994 million yen, an increase of 7,992 million yen (12.3%) year-on-year.
　The pharmaceuticals business as a whole outperformed the previous fiscal year. This outperformance was due to the launch of the anti-cancer drug IBTROZI® and the generic drugs LENALIDOMIDE Capsules and ABIRATERONE ACETATE Tab. for the Japanese market, as well as the increased market penetration of the antibody biosimilars ADALIMUMAB BS and BEVACIZUMAB BS. These factors compensated for the year-on-year underperformance in sales of active pharmaceutical ingredients for the Japanese domestic market, exports, sales from contract production, and diagnostic drugs.
　The agrochemicals business outperformed the previous fiscal year. Sales in the domestic market were maintained as the increased costs of agricultural materials were reflected in selling prices, while export sales of flometoquin, a mainstay product, grew steadily.
　Sales in the real estate business were on par with the previous fiscal year.
　Segment profit totaled 9,680 million yen, an increase of 3,326 million yen (52.3%) year-on-year.

Net sales	Operating income	Ordinary income	Profit attributable to owners of parent	Net income per share
241,851 million yen (Increase year-on- year by 8.7％)	22,454 million yen (Increase year-on- year by 10.1％)	25,478 million yen (Increase year-on- year by 14.4％)	24,641 million yen (Increase year-on- year by 40.7％)	161.18 Yen

■	Mobility & Imaging	94,714	【39.2%】
■	Fine Chemicals	74,142	【30.7%】
■	Life Science	72,994	【30.2%】

■	Mobility & Imaging	10,654	【33.0%】
■	Fine Chemicals	11,929	【37.0%】
■	Life Science	9,680	【30.0%】