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

Overview of Consolidated Performance for the Fiscal Year Ending December 2025

Consolidated net sales for the fiscal year ending December 2025 reached ¥257.668 billion (up 4.9% YoY), supported by strong sales in the Americas, steady demand for functional materials, and the acquisition impact of a U.S. subsidiary. Operating income was ¥15.226 billion (up 15.7% YoY), ordinary income was ¥15.364 billion (up 19.2% YoY), and net income attributable to owners of the parent significantly increased to ¥11.609 billion (up 28.9% YoY), aided by gains on sales of investment securities. By segment, the printing ink business in the Americas performed strongly, while sales price revisions and profitability improvements advanced in Asian and Japanese operations. Conversely, the functional materials segment saw a decline in operating income due to increased expenses despite higher sales.

Financial Position and Cash Flow Status

Total assets amounted to ¥225.864 billion (up 2.0% YoY), net assets reached ¥126.519 billion (up 6.1% YoY), and the equity ratio improved to 52.8%. Cash flow from operating activities increased by ¥17.05 billion, cash flow from investing activities decreased by ¥4.485 billion, and cash flow from financing activities decreased by ¥9.975 billion. The year-end balance of cash and cash equivalents increased to ¥18.782 billion.

Earnings Forecast and Dividend Policy for the Fiscal Year Ending December 2026

For the fiscal year ending December 2026, the consolidated earnings forecast anticipates net sales of ¥276.0 billion (up 7.1% YoY), operating income of ¥17.0 billion (up 11.6% YoY), ordinary income of ¥17.8 billion (up 15.8% YoY), and net income attributable to owners of the parent of ¥11.8 billion (up 1.6% YoY). Dividends are projected at ¥100 annually (¥50 interim and ¥50 year-end), aiming for a total return ratio of 50% or more based on the medium-term management plan 2026.