Supplementary Explanatory Material for Q3 Financial Results for the Fiscal Year Ending March 2026

Performance Overview

For the cumulative Q3 of the fiscal year ending March 2026, consolidated results show net sales of 151.4 billion yen (2.8% YoY increase), operating income of 13.6 billion yen (7.7% YoY increase), and quarterly net income attributable to owners of parent of 10.18 billion yen (15.8% YoY increase), achieving profit growth. Improved performance of domestic and overseas group companies and strict control of selling, general and administrative expenses contributed to maintaining operating income at about the same level as the previous year. The Domestic Interior segment saw a decline in sales volume due to sluggish new housing market and price revisions, but maintained profit growth through increased sales of high value-added products and expanded earnings of group companies. The Domestic Exterior segment achieved higher sales and profits supported by price increases and new development initiatives. The Overseas segment improved profitability due to expanded market share and increased sales of high-margin products in North America. In Southeast Asia, structural reforms led to a turnaround to profitability, but operating losses continued due to rising costs in design and construction businesses. China and Hong Kong saw a reduced deficit.

Outlook and Dividend

Although profits are generally progressing in line with expectations for the full year, the company will monitor the continuing stagnation in demand for the domestic new housing market and at present maintains the full-year forecast unchanged. The company aims to achieve the full-year plan by optimizing the sales portfolio including high value-added products, controlling selling, general and administrative expenses, and strengthening consolidated management. The dividend forecast is 155.0 yen per share annually (interim 77.5 yen, year-end 77.5 yen), marking the 12th consecutive year of dividend increases.