Hello everyone. I'm Hideki Somemiya, CFO of Resonac Holdings. I'd like to express my sincere gratitude for your continued understanding and support for the company. Today, I will explain the overview of our consolidated financial results for the first half of the fiscal year ending December 2026. Please turn to the second slide, key takeaways. There are three main points I'd like to share with you today. The first is that Semiconductor and Electronic Materials segment posted very strong revenue and core operating profit. In the April-June quarter, sales of products for advanced semiconductors such as AI performed extremely well, and both revenue and core operating profit reached record highs on a quarterly basis. The second is the increase in core operating profit year-on-year.
In addition to the strong performance of the Semiconductor and Electronic Materials segment, the effects of the structural reform of the graphite electrode business implemented in FY 2025 also materialized, and the narrowing of the loss in the chemicals segment contributed to the overall profit increase. As a result, company-wide core operating profit for the first half was 2.6x the level of the same period last year. The third is that we have revised upward our full year FY 2026 forecast. In particular, for the Semiconductor and Electronic Materials segment, we now expect products for advanced semiconductors such as AI to grow faster than our initial forecast. Although in May we had held off on revising the full year forecast due to the uncertainty in the external environment, we have now revised full year company-wide core operating profit upward to JPY 196 billion, 40% increase versus the initial forecast.
In addition, we now expect the EBITDA margin to be 24.4%, an improvement of 6.5 points from the initial forecast. I will now begin the explanation of the first half financial results for the fiscal year ending December 2026. Please turn to page four. As a summary of the consolidated results, we show the consolidated results for January-June 2026, both year-on-year and versus forecast in May. I'll explain the year-on-year comparison in more detail later. So on this slide, I'll explain the comparison with the forecast. Revenue for January to June 2026 was JPY 676.9 billion, an increase of JPY 16.9 billion versus the forecast we announced on May 13. Core operating profit was JPY 88.8 billion, an increase of JPY 14.8 billion versus the forecast. Please turn to page five for the consolidated results for January to June 2026 with year-on-year comparison.
Revenue for January to June period was JPY 676.9 billion, up JPY 34.8 billion year-on-year. This was because the revenue increase in the Semiconductor and Electronic Materials segment more than offset the revenue decline at Cresol Chemical and the impact of the transfer of the automotive molded parts business, and the transfer of FIAMM Energy Technology, our lead-acid battery business. Core operating profit was JPY 88.8 billion, 2.6x year-on-year, up JPY 54.2 billion. Below that, non-recurring items worsened JPY 13.5 billion year-on-year, mainly due to the recording of our 1x expenses associated with the revision of our retirement benefit plan. Profit attributable to owners of the parent was JPY 48.5 billion, 2.5x year-on-year, an increase of JPY 28.8 billion. EBITDA was JPY 134.3 billion, and EBITDA margin was 19.8%, an improvement of 7.1 points year-on-year.
Excluding Cresol Chemical, which is scheduled for the partial spinoff on October 1, the EBITDA margin was 23.4%, clearing the 20% target set out in our long-term vision. In addition, our adjusted net D/E ratio improved significantly from 0.83x at the end of the previous fiscal year to 0.65x . This was mainly because the interest bearing debt decreased and the equity increased following the conversion of the portion of our Euroyen convertible bonds maturing in 2028. As always, as noted in a footnote, in calculating the net D/E ratio, we treat 50% of our subordinated loans as equity based on the rating from Japan Credit Rating Agency, Ltd. Please turn to the next slide, page six. This chart breaks down by factor the difference between core operating profit of JPY 88.8 billion in January-June period this year, and JPY 34.6 billion in the same period last year.
Breaking down the year-on-year increase of JPY 54.2 billion. First, the sales volume variance was positive JPY 38.9 billion, driven by the strong performance of the Semiconductor and Electronic Materials segment and higher graphite electrode volumes in the Chemicals segment. Next, the sales price variance was positive JPY 23.4 billion. This was mainly due to the higher naphtha prices year-on-year, which pushed up the selling prices at Crasus Chemical segment. The cost variance was negative JPY 37.4 billion, reflecting the higher fixed costs such as labor cost and higher raw material cost in each segment, as well as a negative impact on profit at the Crasus Chemical segment from the year-on-year rise in naphtha prices. The foreign exchange variance was positive JPY 5.9 billion, mainly because the yen was weaker against the dollar by around 10 yen year-on-year.
Finally, the other variance was positive JPY 23.5 billion, reflecting an improved product mix in the Semiconductor and Electronic Materials segment, a positive inventory variation effect at the Crasus Chemical segment, and a higher profit from increased revenue at our overseas sales subsidiaries, among others. Turning to page 7, let us look at results by segment. Here, we show revenue, core operating profit, and the EBITDA margin by segment on a year-on-year basis. The major year-on-year movement was the Semiconductor and Electronic Materials segment achieved 30% increase in revenue and a 92% increase in profit, driving overall company performance. In the Chemical segment, the loss narrowed due to higher graphite electrode sales volumes and the emergence of structural reform effects. Pages eight through 11 show a summary of results by segment. On page 8, for Semiconductor and Electronic Materials, revenue increased 30% year-on-year to JPY 299 billion.
Core operating profit increased JPY 39 billion, or 92% year-on-year, to JPY 81.5 billion. The main driver of the revenue and profit increase was back-end semiconductor materials, which grew in sales volume mainly for advanced semiconductors such as AI. Front-end semiconductor materials and the Device Solutions also achieved double-digit percentage revenue growth year-on-year. The segment's EBITDA margin also improved significantly from 27.8% in the same period last year to 35.2%. Turning to page nine, revenue in Mobility decreased 6% year-on-year to JPY 84.6 billion, while core operating profit increased JPY 3 billion- JPY 4.3 billion. This was because despite the revenue decline from the transfer of the automotive molded parts business, increased demand from certain customers pushed up the profit. Innovation Enabling Materials performance steadily overall, although trends varied by product. Revenue increased 11% year-on-year to JPY 50 billion.
Core operating profit increased JPY 1.4 billion year-on-year to JPY 6.3 billion. The segment's EBITDA margin was 18.5%, continuing to exceed the 15% target level. Page 10 covers the chemical segment. Revenue increased 17% year-on-year to JPY 91.8 billion, and the core operating profit contracted by JPY 7.5 billion to a loss of JPY 0.6 billion. Most of the revenue growth and the loss reduction came from graphite business, mainly due to the recovery in graphite electrode sales volumes and the emergence of the structural reform effects, which reduced that loss. The last of the segment results on page 11 is Crasus Chemical. Revenue decreased 13% year-on-year to JPY 130.1 billion, reflecting the impact of the once every four years large scale periodic shutdown maintenance carried out from February to April 2026.
On the other hand, a significant positive inventory variation effect from the rise in naphtha prices contributed and core operating profit increased JPY 4.6 billion- JPY 3.8 billion. The partial spinoff of Crasus Chemical is scheduled to be executed on October 1, 2026, and we are currently preparing for the corporate approval required to carry out the spinoff. That concludes our results by segment. On page 12, we show items below core operating profit, the details of non-recurring items on the left, and the financial income and cost and equity earnings on the right on a year-on-year basis. On the left, non-recurring items worsened JPY 13.5 billion year-on-year. This was because while the business structure improvement cost associated with the graphite electrodes structural reform decreased, we recorded a one-time expense in the first half related to the revision of our retirement benefit plan.
On the right, financial income and cost improved by JPY 2.6 billion year-on-year to minus JPY 5.2 billion. This mainly reflected an improvement in the financial balance and a reduction in foreign exchange losses. Finally, equity earnings was JPY 4.7 billion, a decrease of JPY 0.9 billion year-on-year, reflecting one-time losses and timing differences in earnings at some affiliated companies. Turning to page 13, the consolidated statement of financial position. On the assets side on the left, total assets at the end of the period were JPY 2 trillion, 216 billion, an increase of JPY 109.3 billion versus the end of the previous fiscal year.
The main reason was the JPY 65.1 billion increase in cash and cash equivalent driven by the solid operating cash flows from our strong business performance. Total liabilities were JPY 1 trillion 411 billion, an increase of JPY 31.9 billion versus the end of the previous fiscal year. This reflected a decrease in interest-bearing debt from the conversion of convertible bonds, but income taxes payable increased, among others.
Total equity increased JPY 77.4 billion versus the end of the previous fiscal year to JPY 805 billion. This was because the share capital and the capital surplus increased due to the conversion of convertible bonds, and the retained earnings increased due to strong business performance. Regarding the conversion status of the convertible bonds, as of the end of June 2026, almost 40% of JPY 100 billion outstanding balance had been converted. Next, I'll move on to the explanation of FY 2026 performance forecast.
Please turn to page 15, FY 2026 consolidated forecast. Having reached a point where the execution of the partial spin-off of Crasus Chemical is now in sight, and considering the strong performance of the Semiconductor and Electronic Materials segment, we have revised upward the full-year forecast we announced on February 13. Because the partial spin-off of Crasus Chemical is scheduled to be executed on October 1, 2026, in today's revised full-year forecast, we classified it as a discontinued operation retroactively from the beginning of the fiscal year. Regarding foreign exchange assumptions, based on the actual first half rate of JPY 158.2 to a dollar, we made a full-year forecast using a rate of JPY 154.1 to a dollar. Under the revised forecast announced today, we expect revenue of JPY 1 trillion 165 billion and core operating profit of JPY 196 billion.
With Crasus Chemical now classified as a discontinued operation, we expect revenue to decline. However, core operating profit shows 40% upward revision from the previous full-year forecast, driven by the strong performance of the Semiconductor and Electronic Materials segment, among others. There is no major change from the previous forecast for non-recurring items, financial income and cost, and equity earnings. We expect profit attributable to owners of the parent of JPY 112.5 billion, an increase of JPY 35.5 billion from the previous forecast. As for our key financial indicators, we expect EBITDA margin of 24.4%, clearing our 20% target. The next slide, page 16, shows a revised revenue and core operating profit forecast by segment. We have significantly revised the Semiconductor and Electronic Materials segment upward, reflecting strong demand for AI-related materials.
For the other segment, reflecting current demand trends, we revised the Chemical segment downward while revising the Mobility and Innovation Enabling Materials segment upward. For the Crasus Chemical segment, the forecast is prepared on the assumption that the partial spin-off is executed and consolidate its results only through the third quarter of 2026. However, as noted here, because Crasus Chemical is still undergoing the listing examination, its segment forecast has not been revised from the figures as of February 2013 of this year. The next slide, page 17, shows a trend in revenue, core operating profit, and EBITDA margin by segment after the forecast revision, reflecting the partial spin-off of Crasus Chemical and broken down into continuing and discontinued operation. Please refer to them as needed. Finally, page 18 shows our consolidated forecast and the financial indicators.
EPS, a profitability indicator, is expected to be JPY 606 above our JPY 500 target. ROIC is also expected to improve to 9.8%, very close to our 10% target. Regarding our debt level at the end of 2026, we expect adjusted net debt ratio to improve to 0.55x , well below our target of 1x or less, and the Net debt to EBITDA ratio to improve to 1.9x , reflecting the decrease in net debt from the conversion of convertible bonds, among others, and the EBITDA growth. We will continue working to improve profitability and our financial position as we aim to become a company that can compete on the world stage. The following pages from page 19 onward are appendix. On page 20 and 21, we included slides explaining the treatment of discontinued operations under IFRS. So let me briefly walk you through.
First, on page 20, and this might be familiar to many of you already, following the decision on the policy to execute a partial spin-off, the Crasus Chemical segment will become a discontinued operation, which will significantly change how it appears in our P&L. Specifically, items such as Crasus Chemical's revenue and core operating profit will be excluded from the P&L of continuing operations, and only the bottom line net profit will be incorporated as profit from discontinued operations. As a result, after Crasus Chemical becomes a discontinued operation, our consolidated revenue scale and core operating profit will both decrease, but net profit and earnings per share will not change. Next, page 21 shows how the reclassification to discontinued operations affect the consolidated results. As you can see, in this first half results announcement, Crasus Chemical segment results are still incorporated into consolidated results as usual.
For the third quarter results, reflecting the decision on the partial spin-off policy disclosed on July 6, we will disclose Crasus Chemical as a discontinued operation. Crasus Chemical's results will be treated as a discontinued operation retroactively from the beginning of the fiscal year, not only for July-September quarter, and will be consolidated in a single line within the net profit. In the fourth quarter, October-December, following the spin-off, our ownership of Crasus Chemical shares is expected to fall below 20% and its results will no longer be incorporated into our P&L. That concludes my brief supplementary explanation of discontinued operation. With this, I conclude my presentation. Thank you for your attention.