Sumitomo Chem Co Ltd Ord

To start, we will now begin the conference call for the presentation of financial results for fiscal year 2025, the third quarter. Thank you very much for your participation. Today, Mr. Yamaguchi, executive officer and general manager of accounting department, will give a briefing, and later, we will have a Q&A session. We will conclude the call at around 1650. Now, Mr. Yamaguchi, over to you. Thank you very much. This is Yamaguchi speaking. Thank you very much for attending the Sumitomo Chemical Conference call despite your busy schedule. I'd like to thank investors and analysts for your daily understanding and support to our management. Thank you very much for that. Now, let me start with a briefing of financial results for fiscal year 2025, third quarter. Before explaining the details of financial results, I would like to give a brief update on the status of profit and loss for the third quarter. Core operating income and net income attributable to owners of a parent for the third quarter significantly increased compared to the same period of the previous fiscal year. Cooperating income was driven by Sumitomo Farmer's strong sales and partial divestiture of the Asian business recorded their gains. Corporate income of essential green materials increased significantly year on year with a gain of a partial sale of shares in petro-rabic and better trade terms. Agro and life solutions, crop production, chemical business had solid performance. Net income attributed by the owners of a parent already exceeded the third quarter, the forecast announced in November. However, we anticipate that a record of losses from non-recurring items will be concentrated in the fourth quarter. Consolidated financial results of the third quarter of FY2025. Sales revenue was ¥1,706.3 billion down ¥198.5 billion year on year. Core operating income expressing recurring earnings power was 186.8 billion yen, up 126.8 billion yen year on year. Non-recurring items not included in core operating income was a loss in total of 6.4 billion yen. In the same period of a previous year, there was The impact of recognizing our interest in Pedro Rabic's debt forgiveness gain of 86 billion yen as a non-recurring item leading to a profit of 85.4 billion yen. So compared to a previous year, this has worsened by 91.8 billion yen. As a result, operating income was 180.4 billion yen up 35 billion yen year on year. Finance income was a loss of ¥36 billion, improvement of ¥69.3 billion compared to the same period of previous year when loss on that waiver for PetroRabic was recognized. Gain or loss on foreign currency transactions included in finance income or expenses was a loss of ¥7.7 billion. Income tax expenses was a loss of 300 million yen, increase of tax burden of 900 million yen year on year. Net income or loss attributable to non-controlling interests was a loss of 56.80 billion yen, worsening by 44.7 billion yen year on year with improvement of Sumitomo Pharma's income. As a result, Net income attributable to owners of a parent for the third quarter was a profit of 87.4 billion yen, up 58.8 billion yen year-on-year. Exchange rate and NAFSA price which impact our performance. Average U.S. dollar rate during the term was 148.7 billion yen to a dollar, and NAFSA price was 65,000 yen per kilometer. Next, sales revenue by reporting segment. Please look at page 6. Total sales revenue was down 198.5 billion yen year on year. By segment, sales revenue decreased in all segments except As for year-on-year changes of sales revenue by factor, sales price decreased by ¥49.5 billion, volume decreased by ¥191 billion. Foreign exchange transaction variance of foreign subsidiaries sales revenue decreased by ¥28 billion. However, the large negative difference in volume is largely due to business restructuring efforts such as the sale of subsidiaries and business withdrawals. And decrease in shipment volume at our sole subsidiary due to a periodic plant maintenance carried out by Petro-Arabic this fiscal year. Next is page seven. Total core operating income increased by $126.8 billion Analyzing by factor, price was plus 6 billion yen, cost plus 3.5 billion yen, volume of variance including changes in equity in earnings of affiliates was plus 117.3 billion yen. I will explain the details on the following pages. But a significant increase in volume of Next is performance by segment. Please turn to page eight. Agro and Life Solutions. Corroborated income was a profit of 28.1 billion yen up 8.6 billion yen year on year. Price variance. Trade terms improved for overseas crop protection products.

Volume variance.

There were strong shipments in Japan, India and other regions, but income declined from exports due to stronger yen, and there was stronger yen's effect on the sales of subsidiaries outside Japan when converted into yen. Please turn to the next page. ICT and Mobility Solutions Core operating income was a profit of 46.5 billion yen down 13.2 billion yen year on year. Price variance, selling prices of display-related materials declined. Volume variance, though there was a gain on the sale of large LCD polarizing film with business, shipments of display-related materials decreased. Shipments of semiconductor processing materials such as resists and high purity chemicals increased due to the continued gradual recovery of the semiconductor market. There was lower income from exports due to stronger yen and stronger yen's effect on the sales of subsidiaries outside Japan when converted into yen. Next page. Advanced medical solution segment. Cooperative income was a gain of 300 million yen For the essential and grain material segment, core operating income was ¥19.8 billion, an improvement of ¥64.1 billion year-on-year. As for the price variance,