Financial Supplementary Explanation

Overview of Performance

In the consolidated financial results for fiscal year 2025 (period ending December 2025), net sales were 118.082 billion yen, up 3.7% year-over-year. Operating income was 8.328 billion yen, up 168.2% YoY; ordinary income was 9.224 billion yen, up 124.0%; and net income attributable to owners of parent was 6.869 billion yen, up 493.9%, representing significant profit growth. Domestic operations posted increased revenue year-over-year, while overseas operations offset revenue declines in China including currency impacts with increased sales in ASEAN subsidiaries, resulting in overall revenue growth.

Segment Performance and Revision of Earnings Guidance

By segment, Japan recorded net sales of 55.943 billion yen and operating income of 3.338 billion yen, achieving increases in both revenue and profit. The U.S. saw a slight increase in net sales to 31.701 billion yen and turned operating income positive at 336 million yen. Europe posted net sales of 4.017 billion yen and operating income of 13 million yen, with growth in both metrics. Asia maintained steady performance with net sales of 17.079 billion yen and operating income of 3.633 billion yen. China experienced a revenue decline to 9.093 billion yen but increased operating income. The full-year earnings guidance for fiscal 2026 has been upwardly revised to net sales of 160.0 billion yen, operating income of 10.9 billion yen, ordinary income of 12.2 billion yen, and net income attributable to owners of parent of 8.7 billion yen.