Financial Summary for the Fiscal Year Ending December 2025 [Japan GAAP] (Consolidated)

Overview of Financial Results

Consolidated results for the fiscal year ending December 2025 recorded net sales of 77,277 million yen (down 1.2% YoY), operating income of 5,161 million yen (down 24.7% YoY), ordinary income of 2,703 million yen (down 44.4% YoY), and net income attributable to owners of parent of 1,418 million yen (down 54.9% YoY). The main reasons for the decline in revenue and profits were a significant drop in manganese ore prices in the ferroalloy business and production decreases due to scheduled maintenance. On the other hand, businesses other than ferroalloy expanded steadily, and ordinary income on a performance basis excluding one-off factors such as inventory effects remained almost flat at 5.3 billion yen compared to the previous year. The equity ratio improved to 76.0% compared to the previous year.

Outlook and Dividend Policy

For the fiscal year ending December 2026, the earnings guidance forecasts net sales of 75,000 million yen (down 2.9% YoY) and ordinary income of 6,000 million yen (up 121.9% YoY). The factors contributing to increased profits include increased incineration ash collection volume, cost reductions in the ferroalloy business, and resolution of inventory effects. However, the outlook for the battery materials business remains uncertain. Dividends are planned at 13 yen annually (5.5 yen interim, 7.5 yen year-end), with the annual dividend floor raised to 11 yen starting the fiscal year ending December 2026. Share buybacks are positioned as a complement to dividends.