Supplementary Financial Explanation Materials for the Fiscal Year Ending December 2025

Overview of Performance

For the fiscal year ending December 2025, consolidated net sales amounted to 257,668 million yen, up 4.9% year-over-year, with operating income rising 15.7% to 15,226 million yen. Ordinary income increased 19.2% to 15,364 million yen, and net income attributable to owners of the parent rose 28.9% to 11,609 million yen. Operating margin was 5.9%, ordinary income margin 6.0%, and net income margin 4.5%, all exceeding the previous year. Net income per share was 235.26 yen.

Segment Performance and Financial Position

By segment, sales increased for Printing Ink (Americas), Printing Ink (Europe), and Functional Materials, while operating income saw significant growth in Printing Ink (Japan), Asia, and the Americas. Financially, current assets increased by 4.5 billion yen, fixed assets decreased by 100 million yen. Total liabilities declined by 2.9 billion yen, net assets increased by 6.8 billion yen, and the equity ratio improved from 50.7% to 52.8%. Net assets per share also rose to 2,425.44 yen.

Full-year Earnings Forecast for the Fiscal Year Ending December 2026

The earnings forecast for the fiscal year ending December 2026 projects net sales of 276,000 million yen (up 7.1% year-over-year), operating income of 17,000 million yen (up 11.6%), ordinary income of 17,800 million yen (up 15.8%), and net income attributable to owners of the parent of 11,800 million yen (up 1.6%). Operating margin is expected to be 6.2%, ordinary income margin 6.4%, and net income margin 4.3%, with net income per share forecasted to increase to 241.84 yen.