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

Performance Overview

For the fiscal year ending December 2025, consolidated net sales were 46,189 million yen (13.0% decrease YoY), operating income was 6,759 million yen (44.8% decrease YoY), ordinary income was 8,091 million yen (40.0% decrease YoY), and net income attributable to owners of parent was 5,464 million yen (45.1% decrease YoY). The semiconductor market adjustment and reduced demand for certain products significantly impacted results, especially operating and net income which declined sharply. By segment, sales in Japan were 24,184 million yen (18.1% decrease YoY) and operating income was 4,374 million yen (60.6% decrease YoY), both significantly down, while the US, Europe, and Asia regions also experienced revenue and profit declines. An impairment loss of 452 million yen was recorded, and workforce reductions were implemented at the consolidated Chinese subsidiary as part of production system optimization.

Financial Position and Cash Flow Status

At the end of the fiscal year ending December 2025, consolidated total assets amounted to 117,916 million yen, an increase of 4,726 million yen year on year. Total liabilities were 20,365 million yen, up 1,379 million yen, and total net assets were 97,551 million yen, up 3,346 million yen. Cash flow from operating activities was 6,065 million yen (36.1% decrease YoY), cash flow from investing activities was an outflow of 11,314 million yen (79.2% increase YoY), and cash flow from financing activities was an inflow of 2,398 million yen. Cash and cash equivalents at the end of the period stood at 12,069 million yen, down 2,582 million yen compared to the previous year.

Dividends and Future Outlook

A dividend of 145 yen per share is planned, with a payout ratio of 55.6%. The dividend policy has been revised to establish a stable profit return framework with a basic payout ratio of 40% or higher. Earnings guidance for the fiscal year ending December 2026 projects net sales of 49,000 million yen (6.1% increase YoY), operating income of 6,200 million yen (8.3% decrease YoY), ordinary income of 6,000 million yen (25.8% decrease YoY), and net income attributable to owners of parent of 5,000 million yen (8.5% decrease YoY). Despite ongoing global economic uncertainties, demand recovery is expected in the electronics and energy sectors driven by the spread of generative AI and electrification.