Asahi Yukizai REPORTS LOWERED FULL-YEAR FORECAST DUE TO IMPAIRMENT LOSS

TOKYO, May 15 (Pulse News Wire) – ASAHI YUKIZAI CORPORATION (4216.T) reported a lower-than-expected full-year forecast for the fiscal year ending March 31, 2026, due to impairment losses recorded in its pipe manufacturing operations within the tube system business. The company revised its asset grouping based on strategic business units (SBUs) outlined in its mid-term plan GNT2030.

As a result, an impairment loss of ¥1.975 billion was recognized as a special loss due to declining profitability in the domestic chlorinated Vinyl Kan Shijou sector. In addition, ASAHI YUKIZAI noted differences between its previously announced forecasts and actual performance figures released today.

According to the report: | Metric | Previous Forecast (A) | Actual Performance (B) | Difference (B-A) | Variance (%) | |--------|-----------------------|------------------------|------------------|--------------| | Revenue | ¥80.00 billion | ¥80.08 billion | ¥81 million | +0.1 | | Operating Profit | ¥7 billion | ¥7.579 billion | ¥579 million | +8.3 | | Ordinary Profit | ¥7.300 billion | ¥7.956 billion | ¥656 million | +9.0 | | Net Income Attributable to Parent Company Shareholders | ¥4.800 billion | ¥3.326 billion | --¥1.474 billion | -30.7 | The positive variances in operating profit and ordinary profit were attributed to increased sales of high-value-added products in the resin materials division and steady progress in public works projects in water treatment and resource development businesses. However, net income attributable to parent company shareholders fell below expectations due to the impairment loss mentioned earlier.

For more detailed comparisons against the previous year's results, refer to the attached tables.