Good morning, everyone. Thank you for taking the time out of your busy schedules to join us today. Let me go straight into Adeka Corporation 's financial results for the first quarter of fiscal 2026, the fiscal year ending March 2027. Allow me to start with today's summary. First, we were off to a good start in the first quarter, with sales and profit both growing. Chemicals as a whole and the life science business contributed a great deal to that growth in sales and profit.
Second, we have revised our earnings and dividend forecasts upward. In light of changes in the business environment, we have revised our full-year earnings forecast upward and increased the interim and annual dividend. Third, we are accelerating investment in growth domains. We are strengthening our supply systems in anticipation of future demand growth across our various markets.
Today's presentation will proceed in the order shown here. Let me start with the consolidated results for the first quarter of fiscal 2026. Page four sets out an overview of our consolidated results. Sales and profit both grew, and as I said at the outset, the chemicals business as a whole and the life science business drove the results. First quarter net sales reached JPY 117 billion, up JPY 15.4 billion YoY.
On the profit side, operating profit rose JPY 4.6 billion to JPY 15.6 billion. Ordinary profit grew JPY 5.5 billion to JPY 16.6 billion, and quarterly profit increased JPY 3.4 billion to JPY 10.7 billion. Net profit per share increased JPY 38.9 YoY to JPY 110.1. Next is the analysis of operating profit. Fixed costs did increase, but strong volume and the favorable exchange rate offset this impact, driving a total YoY increase of JPY 4.6 billion.
Let's now have a look at the consolidated financial forecasts for fiscal 2026. Page seven shows our consolidated forecasts for fiscal 2026, starting with how they compare to fiscal 2025. For the full year, we are forecasting JPY 462 billion in net sales, JPY 50 billion in operating profit, JPY 50 billion in ordinary profit, and JPY 32 billion in profit attributable to owners of parent. As things stand, this puts us on track for higher sales and profits compared to fiscal 2025. There is certainly some uncertainty in the business environment, but we have made real inroads into growth and new markets, and our ability to steadily tap into that demand is what drives this outlook. Next, we show the changes from our previously announced figures. Here, we show the difference between our May and August forecasts.
As I just mentioned, our August forecast calls for JPY 462 billion in net sales, JPY 50 billion in both operating and ordinary profit, and JPY 32 billion in profit attributable to owners of parent. Compared to our May forecast, we have revised net sales upward by JPY 9 billion, operating profit by JPY 3.2 billion, ordinary profit by JPY 3.4 billion, and profit attributable to owners of parent by JPY 3.2 billion.
Let's now turn to the revisions to the dividend forecast for fiscal 2026. We had originally announced an interim dividend of JPY 60, but have since revised that to JPY 66 per share. Combined with a year-end dividend of JPY 66, this brings the annual dividend to JPY 132 per share. This forecast aligns with the dividend policy in our ADX 2026 medium-term management plan, which is to maintain a payout ratio of 40% or more.
Having built up shareholder returns through sustained profit growth and investment for medium-term growth, we have made maintaining a payout ratio of 40% or more our stated policy. Next is an overview by segment. These are the revised figures in our fiscal 2026 consolidated forecast, shown against what we announced at the start of the fiscal year. Looking within the chemicals business, we revised our full-year net sales and operating profit forecasts upward for polymer additives by JPY 4 billion and JPY 1 billion, respectively.
We revised our net sales and operating profit forecasts upward for semiconductor materials by JPY 2.3 billion and JPY 1 billion, respectively, and for environmental materials by JPY 4.7 billion and JPY 1.2 billion. For food products, we lowered our net sales forecast by JPY 1 billion. However, we expect to offset this with operational improvements in the second half, allowing us to maintain our initial operating profit target.
The forecasts for the life science business remain unchanged. Let me now go through first quarter results business by business, starting with polymer additives. Sales and profit both grew as sales of PVC stabilizers for housing and for telecommunications infrastructure rose. Net sales came in at JPY 28.7 billion, with operating profit reaching JPY 3.8 billion. Looking at the growth drivers, demand is rising for housing interior materials alongside expanding data center investment.
We saw especially large growth in PVC stabilizers used for telecommunications infrastructure. Furthermore, growing demand linked to rising tensions in the Middle East drove strong sales of plastic antioxidants. On the profit side, higher fixed costs had a negative impact of JPY 400 million. That said, this was offset by favorable sales volume, net pricing, and foreign exchange, resulting in a YoY increase of JPY 1.3 billion in overall operating profit. Next is the outlook and initiatives for polymer additives.
For fiscal 2026, we forecast JPY 115 billion in net sales and JPY 11.8 billion in operating profit, putting the business on track for stable results. Looking at the broader market, we expect continued strong demand for housing interior materials and products used in telecommunications infrastructure, driven primarily by North America. While oversupply and a slump in China's petrochemical sector mean the broader market recovery will likely be gradual, overall demand remains robust.
We view raw material prices and exchange rates as the primary variables for earnings. Looking at fiscal 2026 initiatives, we will drive sales of our high-performance products, namely nucleating agents, stabilizers, and plasticizers. We are also prioritizing customer qualification of our new clarifying agent and working to win new accounts. In the Middle East, production has resumed, supported by newly established transport routes for both raw materials and finished goods.
Finally, we are already actively managing our pricing to stay ahead of geopolitical risks. Turning to our first quarter performance in semiconductor materials, AI-driven demand lifted sales of materials for advanced DRAM and EUV applications, delivering top and bottom-line growth. Net sales came in at JPY 10.8 billion, with operating profit reaching JPY 2.6 billion. Looking at the underlying drivers, expanding production of advanced DRAM fueled strong sales across mainstays like High-K materials and new products alike.
Meanwhile, sales of semiconductor materials for advanced photoresists performed well, driven by the increasing adoption of EUV exposure equipment in client manufacturing processes. On the profit front, higher fixed costs weighed on the result, but this was offset by favorable sales volume and foreign exchange tailwinds, lifting operating profit by JPY 1.2 billion on a YoY basis.
Turning to the outlook for semiconductor materials, we expect AI-related investment in fiscal 2026 to drive growth in advanced materials while expanding their adoption across broader applications. This momentum extends beyond a single fiscal year. We anticipate this structural trend continuing over the next several years. Furthermore, as mass production of AI-related devices ramps up, supply conditions for legacy products are set to tighten even further. Overall, we expect semiconductor materials to sustain strong performance alongside the expansion of the broader market.
Looking at the full-year outlook and market environment, we expect demand for advanced memory to enter an expansionary phase driven by AI investment. In advanced logic, mass production is transitioning to the N2 generation, and we expect investment in miniaturization to remain highly active. Against this backdrop, we are executing three key initiatives this year. First, expanding sales of ALD materials for advanced DRAM.
Second, accelerating the development of ALD materials for advanced logic ICs and EUV resist materials. Third, expanding our portfolio beyond car to drive sales of, and invest in production capacity for metallic compounds used in MOR, where demand has already begun to materialize. Moving to first quarter performance for environmental materials, robust demand across electronics and mobility sustained growth in our high-performance materials, lifting both sales and profit on a YoY basis.
Net sales reached JPY 23.2 billion, with operating profit coming in at JPY 3.5 billion. Looking at our sector performance, in electronics, special epoxy resins for semiconductor encapsulation materials delivered strong results. In mobility, global sales of automotive lubricant additives increased. In consumer goods applications, our overseas expansion efforts drove steady growth in reactive emulsifiers. Ultimately, favorable sales volume and foreign exchange tailwinds offset cost pressures, raising operating profit by JPY 1.3 billion YoY.
Turning to the outlook for environmental materials, we will accelerate global expansion led by strategic products and focus our resources on key growth areas. For fiscal 2026, we are targeting JPY 93 billion in net sales and JPY 12.3 billion in operating profit to deliver stable top and bottom line results. Looking at the broader market, mobility will continue to grow moderately. Demand for electronics will also remain steady, underpinned by AI and semiconductor investments.
While demand in housing applications, specifically for paints and adhesives, is expected to hold firm. We are focused on three key initiatives this year: increasing global sales of automotive lubricant additives, broadening applications for bonding materials and reactive emulsifiers, and winning new accounts in electronics. Moving to Food Products, first quarter sales increased, but profit declined. Despite a persistently sluggish Chinese market, we aggressively drove sales of high value-added products.
Net sales came in at JPY 21.4 billion, generating an operating profit of JPY 800 million. Looking at the product level, sales of high-performance kneading ingredients and Deli-PLANTS, plant-based foods were strong both in Japan and overseas. While shortenings and margarines delivered solid results. However, as a result of strategies focused on profitability to address rising raw material prices, sales volumes declined for certain product lines.
Ultimately, a decline in sales volume was the main factor behind the decline in operating profit, which fell by JPY 300 million on a YoY basis. Turning to the full year outlook for Food Products, we will leverage food tech to drive global expansion in fiscal 2026. We forecast JPY 89 billion in net sales and JPY 5 billion in operating profit. As noted earlier, this forecast assumes we significantly accelerate our initiatives in the second half.
Externally, we expect the domestic food market to remain stable. In the Chinese market, sluggishness in the economy means consumers will remain highly price conscious, even as their needs diversify. Furthermore, we expect raw material costs to remain elevated. Against this backdrop, our initiatives will focus on driving sales of high-margin, high-performance products to ensure sustained growth. We will also expand applications for the Deli-PLANTS series and accelerate its overseas rollout.
Turning to our first quarter results for Life Science, which comprises NIHON NOHYAKU . Our revenue base remained stable as demand for agrochemicals stayed strong. This drove growth in both sales and profit. Net sales came in at JPY 31 billion, generating JPY 4.4 billion in operating profit. Looking at the underlying drivers, sales of insecticides for nuts and fruit trees were strong in North America, while herbicides for potato crops performed well in Eastern Europe.
In Japan, sales of mainstay products, including paddy rice herbicides, remained strong. On the profit front, while net pricing and fixed costs weighed on results, these were offset by volume gains and favorable foreign exchange, lifting operating profit by JPY 1.2 billion on a YoY basis. Next is the outlook and initiatives in the Life Science segment. We aim to increase sales and reinforce our revenue base by expanding our product lineup, focusing on proprietary products developed internally, and further developing our markets. For the full year, we project JPY 116 billion in net sales and JPY 10.4 billion in operating profit. Looking externally, we expect continued demand for agrochemicals, particularly in North America and Europe. It should be noted that crop acreage and weather conditions remain uncertain factors that could still cause fluctuations in demand.
Against this backdrop, our initiatives focus on driving sales of mainstay agrochemicals in North America, Europe, and Japan while strengthening profitability in India and Brazil. We will also expand the settings in which our agrochemicals are used, expanding to a wider range of crops, application timings, and targets of control. Furthermore, we will expand our lineup of agrochemicals and biostimulants that align with tightening environmental regulations. Let's now turn to key strategic investments for business expansion.
In polymer additives, we are initiating construction of a new manufacturing plant in South Korea for our new clarifier, TRANSPAREX, representing an investment of approximately JPY 6.5 billion. In semiconductor materials, we are investing approximately JPY 1 billion to expand production capacity for photoacid generators used in advanced photoresists at our Chiba plant in Japan. Because the building already exists, we are simply expanding the manufacturing lines inside.
This kept the required investment down while still roughly doubling our capacity. Given our high expectations for this segment, we are taking a disciplined, phased approach to capacity expansion. We are also accelerating our investment in advanced lithography materials. I mentioned a moment ago that we are doubling our photoacid generator capacity. You can see that in the bottom half of the page. We also expect growing demand for metallic compounds used in MOR.
We are handling production on existing equipment at present, but a new plant comes online in April 2028. We anticipate making various further investments in this area. We will provide updates as these plans solidify. Page 24 shows the results of the acquisition and cancellation of our own shares. We repurchased 4,823,900 shares for approximately JPY 18 billion, exactly as announced, and canceled them on June 16th, 2026. Now for the appendix.
Since we have already covered the main points today, I will leave page 26 and the segment breakdown on page 27 for you to look through at your convenience. Next is an overview of overseas sales. Our overseas sales ratio reached 55.9% in the first quarter of fiscal 2026, continuing to climb gradually. Next is the trend in consolidated performance. While we have seen some fluctuations along the way, profits have grown steadily over time.
Our full-year net sales forecast for fiscal year 2026 is JPY 462 billion, and progress stood at 25% at the end of the first quarter. The operating profit forecast is JPY 50 billion, and progress stood at 31% at the end of the first quarter. Page 30 shows the changes in dividends and to the dividend payout ratio. Circling back to what I touched on earlier, the payout ratio for fiscal 2026 remains at 40%.
We project an interim dividend of JPY 66 and a year-end dividend of JPY 66, bringing the full-year total to JPY 132 per share. One thing I want to highlight is that we have gone 18 consecutive fiscal years without reducing the dividend. We believe this track record underscores our commitment to stable long-term shareholder returns. That brings us to our medium-term management plan and our business goals, which we set out here on page 31. Fiscal 2026 marks the final year of our MTMP, ADX 2026. Our revised operating profit forecast of JPY 50 billion sits just below our JPY 53 billion target. We will be driving results throughout the rest of the year to narrow that gap. This concludes my presentation. Thank you for your time.