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

Overview of Business Results

For the fiscal year ending December 2025, consolidated net sales increased 6.2% year-over-year to 359.8 billion yen, operating income rose 16.5% to 26.2 billion yen, and ordinary income grew 11.5% to 27.2 billion yen. In contrast, net income attributable to owners of parent decreased 1.4% to 21.4 billion yen, impacted by the reversal of gains on fixed asset sales. By segment, the Furniture Business performed well with net sales of 172.1 billion yen (6.0% increase YoY) and operating income of 26.1 billion yen (11.6% increase). The Business Supply & Distribution segment also expanded, posting net sales of 108.3 billion yen (9.5% increase) and operating income of 5.4 billion yen (22.2% increase). The Stationery Business’s net sales remained flat at 83.5 billion yen, while operating income improved to 7.0 billion yen (18.3% increase). The Interior Retail Business grew with net sales of 23.7 billion yen (11.5% increase) and operating income of 700 million yen (37.7% increase).

Financial Position and Cash Flow Status

At the end of December 2025, total assets stood at 355.0 billion yen, down 7.9 billion yen from the previous fiscal year-end, while net assets decreased by 8.6 billion yen to 255.5 billion yen. The equity ratio remained stable at 70.9%. Cash flow from operating activities was 14.3 billion yen, a decrease compared to the previous period. Cash flow from investing activities resulted in an outflow of 4.6 billion yen, and cash flow from financing activities was a 31.6 billion yen outflow, primarily due to treasury stock acquisition of 20.0 billion yen and dividends of 9.5 billion yen. A 4-for-1 stock split of common shares was implemented on July 1, 2025, with an annual dividend forecast of 24.50 yen (payout ratio of 50.7%) as a shareholder return measure.

Future Outlook and Management Strategy

For the fiscal year ending December 2026, consolidated earnings forecasts anticipate net sales of 390 billion yen (8.4% YoY increase), operating income of 27.0 billion yen (2.9% increase), ordinary income of 26.8 billion yen (1.6% decrease), and net income attributable to owners of parent of 20.3 billion yen (5.5% decrease). The 4th Medium-Term Management Plan, 'Unite for Growth 2027,' aims to drive growth in existing businesses and expand fields, strengthen the management base focused on cash flow, and continue shareholder returns. M&A plans include the acquisition of Vietnam’s Thien Long Group Corporation as a subsidiary to accelerate global expansion of the Stationery Business. Additionally, integration of domestic sales companies is planned to strengthen the sales network.