Sekisui Chemical Co.,Ltd. Q4 FY2025 earnings call

• New President and CEO Shimizu took office in March, discussed FY2025 results and FY2026 plans. • Shareholder returns: FY25 year-end dividend 40 yen per share, annual dividend 80 yen; FY26 plans 81 yen per share dividend hike, 17th consecutive year. Conducted additional share buyback in FY25, FY26 plan 4 million shares buyback. • Perovskite solar cell business: Launched, established 1m wide panel manufacturing, started talks with municipalities/business operators, plans 100 MW production line in FY2027. • Nishida explained FY25 and FY26 results, Asano from HPP talked about HPP performance trends, Yoshida from Housing reviewed business performance, Hirai from UIEP presented UIEP performance, Yamashita from Medical explained medical business.

For FY25, net sales reached 1,309.3 billion yen. Operating profit was 106.5 billion yen. Ordinary profit was 117.2 billion yen due to FX gains, and net profit was 75.2 billion yen. For FY26, projected net sales and operating profit growth, with OP target at 115 billion yen, net profit 76 billion yen, ROE 9%. By segment: Housing and UIEP had profit growth but not enough to offset declines in HPP and medical. HPP: Mobility field net sales up but profit down due to raw material costs; FY26 aims for net sales and profit growth. Housing: FY25 net sales 536.2 billion yen, OP 37.2 billion yen; FY26 targets OP 40 billion yen. UIEP: FY25 net sales 240.4 billion yen, OP 23.2 billion yen; FY26 projects net sales 255.4 billion yen, OP 25 billion yen. Medical: FY25 net sales 93.7 billion yen, OP 11.1 billion yen; FY26 plans net sales 97.3 billion yen, OP 12 billion yen.

• FY2026 projects net sales and operating profit growth, OP target 115 billion yen, net profit 76 billion yen, ROE 9%. • Dividend: FY26 plans to increase annual dividend to 81 yen per share, 17th consecutive year of hike. • Share buyback: FY26 plan 4 million shares or up to 12 billion yen. • Perovskite solar cell: Launch business, plan 100 MW production line in FY2027. • HPP FY26 aims for net sales and profit growth in strategic fields. • Housing FY26 targets OP 40 billion yen through product strategy. • UIEP FY26 projects net sales 255.4 billion yen, OP 25 billion yen via overseas sales and product expansion. • Medical FY26 plans net sales 97.3 billion yen, OP 12 billion yen via domestic and pharmaceutical science business growth.

• Middle East situation impact: Challenges in raw material procurement and cost increase, estimate 14 billion yen impact in first half, but plan to pass on costs. • Market conditions: Global auto production volume below expectation in FY25 Q4, smartphone shipments below previous year, housing visitor numbers down in FY25 second half, new housing starts expected slight recovery but long-term downward trend. • HPP: Global market uncertainty, fixed costs increase. • Medical: Difficult market conditions in overseas diagnostics, especially in China.