FY2026 Q2 Financial Results and Strategy Presentation

Summary of Results

For FY2026 Q2, consolidated revenue was 5,892 hundred million yen (YoY +7.3%), and operating income was 7 hundred million yen (YoY -92.1%), indicating a decline in profit. Results reflect weakness in overseas operations and impacts from the Kumamoto earthquake and the NDP incident. Recorded 38,000 million yen in special gain from sale of investment securities and 15,100 million yen in special losses related to disaster expenses, etc. The full-year FY2026 forecast anticipates a substantial deficit with an operating loss of -5 billion yen and a net loss of -40 billion yen.

Progress and Challenges of Medium-Term Plan 2030

The core strategies of the Medium-Term Management Plan 2030 are "B/S optimization," "decisive structural reforms," and "profitability improvement." Initiatives underway include discontinuation of graphic paper and pulp businesses, Opal reform, suspension of NPCE operations, integration of logistics subsidiaries, recovery and restructuring of the Yatsushiro Mill, and creation of new businesses using domestic timber. Under the Opal reform, the outlook for the second half indicates efforts aimed at improving the deficit.