FY March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Performance

During the cumulative third quarter period of FY March 2026, the domestic housing market saw a 13.7% year-over-year decline in new housing starts due to the rebound from rush applications before the revised Building Standards Act, but sales volume of ceramic exterior siding decreased by only 2.8%. The US market experienced mixed movements in new housing starts influenced by stable high housing prices and elevated interest rates. Net sales amounted to ¥109.295 billion (2.5% decrease YoY); however, operating income rose to ¥6.274 billion (12.3% increase YoY), ordinary income to ¥6.740 billion (8.3% increase YoY), and net income attributable to owners of parent for the quarter grew to ¥4.547 billion (20.7% increase YoY), driven by price revisions in domestic and overseas exterior materials businesses and fixed cost reductions. The US subsidiary concluded operations for general-purpose residential exterior materials production in October 2025 and is progressing with business withdrawal.

Financial Position and Outlook

At the end of Q3, total assets stood at ¥170.706 billion, net assets at ¥120.515 billion, and the equity ratio increased by 0.6 points from the previous fiscal year-end, reaching 70.8%. While there was a decline in current and fixed assets, total liabilities decreased by ¥3.16 billion. There is no revision to the full-year consolidated earnings forecast, which projects net sales of ¥145.0 billion (2.3% decrease YoY), operating income of ¥10.0 billion (43.8% increase YoY), and net income attributable to owners of parent of ¥3.0 billion (10.8% increase YoY). Any necessary revisions to earnings guidance will be disclosed promptly.