Fiscal Year Ending December 2025 Earnings Presentation Materials

Overview of Fiscal Year Ending December 2025 Performance

For the fiscal year ending December 2025, net sales were 162,312 million yen (YoY -3.2%), operating income was 14,180 million yen (YoY -0.4%), and ordinary income was 15,067 million yen (YoY -5.8%). Net income attributable to owners of parent increased to 12,766 million yen (YoY +7.5%). Despite declines in shipment volume of core chemical products and sluggish overseas market conditions, significant profit growth was achieved through increased sales of environmental infrastructure system products and price revisions. Share buybacks amounted to approximately 4.8 million shares (about 7 billion yen), of which 5 million shares were cancelled. The annual dividend was 65 yen (an increase of 5 yen from the previous year), with a payout ratio of 55.5%, and a total return ratio of 110.1%.

Earnings Guidance and Challenges for Fiscal Year Ending December 2026

For the fiscal year ending December 2026, net sales are forecasted at 167,000 million yen (YoY +2.9%) and operating income at 14,500 million yen (YoY +2.2%). Efforts will be made to increase sales volume, improve profitability, and cut expenses to absorb fixed cost increases. The company will promote joint development with academia and venture companies and accelerate early realization of results from new products to expand earnings. Dividends are planned at 70 yen, aiming to raise the total return ratio to approximately 90% and the payout ratio to around 70%. Management will continue initiatives to exceed a Price-to-Book Ratio (PBR) of 1.