Toray Indus Inc Unsp/Adr

Thank you very much for joining us today despite your busy schedule. On behalf of Torre Group, I'd like to take this opportunity to extend my gratitude towards your continued understanding and your interest in your management and business activities. Now, I'd like to report Torre's business results for the third quarter as nine months ended December 31st, 2025, and the business forecast for the fiscal year ending March 2026. Now, I'd like to follow the table of contents shown on page 1. This is a summary of the business performance and forecast. During the 9 months in FY2025, the Japanese economy continued to recover at a gradual pace. However, sluggishness in the flow of goods and holding back on purchases were also seen in some areas against the backdrop of growing uncertainties. triggered by the U.S. policy shift under the Trump administration. Amid these circumstances, corporating income of the nine months decreased year-on-year to 105.1 billion yen due to the sluggish market conditions and the impact on inventory adjustment, although the company worked on business structure reform and strategic pricing. The full-year focus for cooperating income increased to ¥150 billion compared with the previous fiscal year. Furthermore, the company is proceeding with share buybacks in line with the resolution at the Board of Directors meeting held in November 2024. As of the end of January 2026, the total repurchase price of shares has reached ¥29 billion equivalent to 28 million of shares. I'll explain the details starting from the next page. I'd like to begin with a summary of business results for the third quarter of the nine months ended December 31st, 2025. Please turn to page 4. Consolidated revenue for the nine months decreased 0.2% compared with the same period a year earlier to ¥1,919.5 billion. Corporating income decreased 3.4% to 105.1 billion yen and profit decreased 46.6% to 40.2 billion yen. Page 5 is about special items. Special items for the 9 months worsened by 29.1 billion yen to negative 34.1 billion yen compared with the same period over the previous fiscal year. Seoul reposted 25 billion yen of impairment losses as profitability worsened in the battery separator film business as a subsidiary in the Republic of Korea due to the sluggish EV market, etc. Page 6 about assets, liabilities, equity, and free cash flows. As for financial condition at the end of December 2025, both assets and liabilities were affected by the increase in translated yen amounts of its overseas sales series caused by yen depreciation. Total assets stood at 3,515.1 billion yen, up 222.5 billion yen from the end of the previous fiscal year due primarily to increases in trade and other receivables as well as property, land and equipment. Total liabilities increased 158.5 billion yen from the end of the previous fiscal year to 1,630.5 billion yen, owing mainly to increases in borrowings. Despite a decrease Owing to share buybacks, total equity increased by ¥64 billion compared with the end of the previous fiscal year to ¥1,884 billion due mainly to increases in other capital components. Owners' equity was ¥1,762 billion, interest-bearing liabilities was ¥985.1 billion, and degree ratio was 0.56. Free cash flow was positive at 14.1 billion yen. Page 7 explains about the capital expenditures, depreciation and amortization and R&D expenditures. Capital expenditures for the 9 months decreased by 41.9 billion yen to 102.7 billion yen on a year-to-year comparison. Meanwhile, depreciation and amortization increased by 1 billion yen to 100.7 billion yen. R&D expenditures increased by 1.6 billion yen to 54.4 billion yen compared with the same period of the previous fiscal year. Page 8 shows the factor analysis of 3.7 billion yen decrease in incorporating income for the nine months on an year-to-year comparison. The fibers and textile segment remains strong mainly in the apparel applications. Meanwhile, in the performance chemicals segment, cooperating income decreased due to weak sales of battery separator film and lack of temporary factors, including reversible allowance that increased profit in the previous fiscal year, etc. In the carbon fiber composite materials segment, profit decreased due mainly to the impact of demand correction. And for the net changing price, strategic pricing has proceeded steadily. Corporating income decreased 3.4% compared with the same period of the previous fiscal year, and the cooperating income margin fell 0.2 points. Using page 9 and after, I'd like to explain the results of each segment. First, fibers and textiles. Revenue of the overall segments increased 3.9% to 804.9 billion yen compared with the same period a year earlier, and the cooperating income increased 9.5% to 54.8 billion yen. The apparel applications were robust, as shipment of the fall winter clothing in Japan was strong overall. As for the industrial applications, Amid the sense of stagnation in the market, including the automobile applications, the group strives to reduce costs. Page 10 is the performance chemical segment. Revenue decreased 6.1% to 668.7 billion yen compared with the same period a year earlier. Corporating income decreased 10.3% to 43.1 billion yen. In the resins and chemicals businesses, spread of the resins business has improved, but sales were stagnant due to impact from the slowdown in the automobile applications. The chemicals business was affected by the worsening market conditions. In the fumes business, demand for automobile capacitors and electronic parts related applications grew, while sales of battery separator fumes were sluggish. In the electronic and information materials business, OLED-related materials and circuit materials were affected by the slow demand for display panels and intensified competition in China, although a new product for the power induction applications was launched. Page 11 is the carbon fiber composite materials segment. Revenue decreased 4.7% to 212.7 billion yen compared with the same period a year earlier, and this segment posted cooperating income of 11.5 billion yen, 18.6% decrease from the same period a year earlier. In the aerospace applications, sales for major customers have steadily recovered, accompanying the alleviation of inventory adjustment in supply chain. In the sports applications, sales of the high-end products for outdoor leisure was steady. However, inventory adjustments of the general-purpose products continued. In the industrial applications, the pressure-based applications entered an adjustment phase. Page 12. In the environment and engineering segment, revenue increased 11% to ¥180.3 billion compared with the same period a year earlier, and corporating income increased 3.5% to 17.6 billion yen. The water treatment business was affected by the sluggish market conditions in China, even as the shipments for the Middle East remained strong. As for subsidiaries in Japan, sales of a construction subsidiary was steady. Page 13 is a life science segment. Revenue decreased 1.8% to 38.5 billion yen compared with the same period a year earlier, and corporating income decreased by 0.2 billion yen to negative 1.1 billion yen. The pharmaceutical business was affected by the penetration of the generic version of the drug in Japan, while overseas sales grew mainly in China. In the medical devices business, sales of dialysis or hemorrhage filtration was slow. Page 14 shows the business results of major subsidiaries and regions. At Story International, sales were strong mainly in the fibers and textiles but affected by the cost increase. After subsidiaries in Southeast Asia, in the fibers and textiles business, demand for the apparel applications and automotive applications in the industrial applications was weak. In the performance chemicals business, spread of ABS regions has improved. After subsidiaries in China, in the fibers and textiles business, the apparel applications were steady. In the performance chemicals business, The chemical business was impacted by the worsened market conditions. As for sub-series in the Republic of Korea, sales volume of the fibers and textiles business decreased stemming from the scale-down of low-fossility applications. However, spread has improved. In the performance chemical business, sales of battery separator film was stagnant. I would like to explain the consolidated business forecast for the fiscal year ending March 2026. Please turn to page 16. The global economy is expected to continue with the gradual recovery phase. While the uncertainties stemming from the Trump typhus will remain high, their impact on the global economy is likely to be limited. The Japanese economy is also expected to continue with its gradual recovery. However, prevailing economic trends will be affected by the direction of the trade and foreign policies of the U.S. and the responses from other countries, geopolitical tensions and rising prices of primary products, the future of AI demand, and the stagnation in the Chinese economy, which may also have a significant impact on the changes in the supply chains and trade structure in the medium to long term. For the fiscal year ending March 2026, solar revised its four-year consolidated forecast for revenues, taking into consideration its business performance for the nine months and business environment. The forecast for cooperating income and profits attributable to owners or parents remained the same as the announcement on November 14, 2025. Assume the exchange rate from January onwards is 155 yen per U.S. dollar. Page 17 shows the consolidated business forecast for the fiscal year ending March 2026 by segment. Based on the business performance for the 9 months, Tore has revised its forecast for the 5,000 textiles and carbon fiber composite materials segment as well as the 1,000 segments. Revenue and corporating income are expected to increase owing to sales expansion in the fibers and textiles and environmental engineering segments in addition to the positive effects from the strategic pricing and profitability improvement projects. Page 18 shows the comparison of corporating income between the forecast announced on November 14, 2025 and the new forecast with breakdowns into segments. The factors behind the difference are shown on the right side of the table. This concludes my presentation. Thank you very much.