6309.T

Overall Consolidated Performance

• Total consolidated revenue was 15.333 billion yen, a 1.6% increase year-over-year, with growth in both operating segments.
• All profit metrics declined year-over-year: operating profit was 1.672 billion yen (-6.8%), ordinary profit was 1.687 billion yen (-6.5%), and net income attributable to parent shareholders was 1.11 billion yen (-10.3%). The primary driver of profit declines was higher SG&A expenses centered on personnel costs: bonuses are tied to ordinary profit forecasts, so the bonus provision increased significantly due to a full-year ordinary profit forecast of 5.77 billion yen this term, up from 5 billion yen in the prior year same period.
• Machinery Manufacturing and Sales segment has maintained strong order inflows, with backlog at an all-time high level increased year-over-year.

Consolidated Balance Sheet Highlights

• Cash and deposits decreased compared to the end of the prior term due to payments for bonuses, dividends, and corporate income taxes between December and January.
• Fixed assets increased due to new factory construction and the impact of sustained high equity market conditions.
• Net equity decreased slightly due to treasury stock purchases conducted following last year's secondary offering.

Expansion into the Low-Temperature Waste Heat Utilization Business

• This business is positioned as the

• Full-year 2026 October term earnings guidance remains unchanged from the forecast announced last December. Management will review performance after the second quarter and revise guidance if necessary.
• For the Chemical Industrial Products Sales Segment, full-year growth is expected to come in the second half, driven by higher sales of selected products in mineral and functional material categories, fulfillment of backlog orders for power semiconductor components, and sales of heat exchangers for low-temperature waste heat utilization.
• The overall low-temperature waste heat utilization market is projected to grow from its current size of 32 billion yen to 60 billion yen within 5 years, and to over 100 billion yen within 10 years, driven by rising energy prices, growing corporate decarbonization demand, policy support including subsidy programs and regulatory updates, and technological innovation.
• The 30kW small binary power generation unit and hydrogen concentration sensor (a new product for the machinery trading business, the

1. Chemical Industrial Products Sales Segment: Total revenue was 10.82 billion yen, flat year-over-year. Operating profit was 814 million yen, a 13% decrease year-over-year driven by higher SG&A expenses (primarily personnel costs). The operating profit progress rate against the full-year forecast is 22.2%, and 49.9% against the first half forecast, which is in line with planned progress. Sub-segment performance: - Chemical products related: Slightly down year-over-year, but strong sales for coating applications from new business rights continue. - Mineral related: 97 million yen increase in revenue year-over-year driven by higher resin additive sales from antimony price surges; profit margin decreased due to changed competitive landscape, dragging down the segment's overall profit margin. - Industrial materials related: 175 million yen increase in revenue year-over-year driven by higher sales of materials for construction materials and refractories. - Functional materials related: 100 million yen decrease in revenue year-over-year due to sluggish sales of power semiconductor components from continued weak EV market conditions. - Electronic materials related: 91 million yen increase in revenue year-over-year driven by higher sales of materials for semiconductor assembly amid improving market conditions. - Synthetic resin related: 263 million yen decrease in revenue year-over-year due to shutdown of a liquidating Chinese subsidiary. - Other: 47 million yen increase in revenue year-over-year from the first recorded sales of heat exchangers for low-temperature waste heat utilization, which is handled under this segment leveraging its trading house function. The segment accounts for approximately 70.6% of total consolidated revenue. 2. Machinery Manufacturing and Sales Segment: Total revenue was 4.512 billion yen, a 5.6% increase year-over-year. Operating profit was 858 million yen, nearly flat year-over-year, as higher SG&A expenses (primarily personnel costs) offset revenue gains. Sub-segment performance: - Domestic public demand: 637 million yen increase in revenue year-over-year driven by strong performance of large machinery, prime contracting work, and repair services in major metropolitan areas including Tokyo and Osaka. - Domestic private demand: 371 million yen decrease in revenue year-over-year due to a pullback effect from a large petrochemical and pharmaceutical machinery project completed in the prior year period. - Overseas: 27 million yen decrease in revenue year-over-year, as stronger parts and repair sales to India, Southeast Asia, and China were offset by a pullback effect from semiconductor equipment sales in the prior year period. The 30kW small binary power generation unit (the

• Middle East geopolitical tensions are not having an immediate large material impact on operations at present, but management is monitoring the situation closely due to concerns over potential declines in sales of imported synthetic resins.

The full question and answer text is cut off in the provided transcript. The scheduled topics for the question and answer section are: 1.

Q: When will revenue from the low-temperature waste heat utilization business start being recognized?

A: [Answer not included in provided transcript] 2.

Q: What is Tomoe Kogyo's target or expected market share in the low-temperature waste heat utilization sector?

A: [Answer not included in provided transcript] 3.

Q: What was the impact of the bonus provision expense in the first quarter?

A: [Answer not included in provided transcript] 4.

Q: Can you elaborate on the profit decline in the mineral-related sub-segment of the Chemical Industrial Products Sales business?

A: [Answer not included in provided transcript] 5.

Q: What is the progress of the Chemical Industrial Products Sales business against full-year forecasts?

A: [Answer not included in provided transcript]