Nippon Felt Co., Ltd. Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Business Results Overview

While the domestic economy showed signs of recovery during this interim period, net sales declined year-on-year due to a decrease in sales volumes of felts for the paper and pulp industry and weakened demand in some regions. Sales in the felt business were 2,732 million yen (down YoY, particularly in certain overseas markets), while the real estate leasing business increased to 318 million yen. Ordinary income increased, whereas operating income decreased. Net income attributable to owners of parent for the interim increased significantly. Supplementary information in the financial results referenced the recording of a subsequently disclosed extraordinary gain and revisions to performance and dividend forecasts.

Outlook and Dividends

The most recently announced full-year forecast includes revisions, and dividend forecasts have been adjusted in conjunction with the recording of extraordinary gains such as sales of investment securities. Disclosure of treasury stock acquisition status has been made, and the equity ratio remains at a high level. Recovery in sales and cost management will determine the pace of operating income recovery going forward.