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 were 73,668 million yen (3.2% increase YoY), operating income was 9,060 million yen (1.3% decrease YoY), ordinary income was 9,230 million yen (11.1% decrease YoY), and net income attributable to owners of parent was 5,514 million yen (10.6% decrease YoY). Sales increased due to recovery in the domestic market and contributions from newly consolidated subsidiaries in North America, while operating income and net income declined due to the impact of tariff measures, sluggish sales, and semiconductor shortages. By segment, the Japanese market remained steady despite export declines, North America saw contributions from new subsidiaries but decreased profits, China experienced sluggish sales although tube sales remained firm, Asia had robust domestic demand, and Europe showed profit improvement due to increased sales.

Financial Position and Cash Flow Status

Total assets were 88,115 million yen (increase of 5,137 million yen from previous period), net assets were 68,119 million yen (increase of 4,261 million yen), and equity ratio was 68.5% (up 0.1 points). Cash flow from operating activities increased by 8,417 million yen, cash flow from investing activities decreased by 3,745 million yen, and cash flow from financing activities decreased by 3,815 million yen. Total dividends amounted to 2,321 million yen, with a dividend payout ratio of 42.1%.

Outlook

For the fiscal year ending December 2026, consolidated earnings forecasts are: net sales of 78,000 million yen (5.9% increase YoY), operating income of 9,300 million yen (2.6% increase YoY), ordinary income of 9,500 million yen (2.9% increase YoY), and net income attributable to owners of parent of 5,600 million yen (1.6% increase YoY). Despite geopolitical risks and international uncertainties, the company plans revenue and profit growth, supported by price pass-through negotiations with customers, growth in the Indian market, and cost reductions through supply chain review. The assumed exchange rates are 1 US$ = 150 yen and 1 € = 170 yen.