Financial Presentation Material for the Fiscal Year Ending December 2025

Performance Overview

For the fiscal year ending December 2025, net sales were 48,000 million yen, down 13.0% year-on-year. Operating income was 7,500 million yen, down 44.8% YoY, and ordinary income was 7,000 million yen, down 40.0%. Net income attributable to owners of the parent was 5,000 million yen, down 45.1%. The main cause of the decline in operating income was a decrease in contribution margin due to volume decrease and changes in product composition, as well as an increase in depreciation expenses. A special loss of 656 million yen related to the business restructuring of a small carbon brush business at a consolidated subsidiary in China also impacted results.

Product and Segment Trends and Sales by Region

Special graphite products saw an increase in advanced products for AI applications in silicon semiconductors, while demand for SiC semiconductor applications declined. Overall, changes varied by segment. In the general industrial segment, discharge machining electrodes decreased due to automotive production and capital investment stagnation, showing a declining trend. By region, semiconductor demand decline led to a significant 19.4% decrease in Japan.

Earnings Forecast for the Fiscal Year Ending December 2026

For the fiscal year ending December 2026, net sales are forecasted at 49,000 million yen (up 6.1% YoY), operating income at 6,200 million yen (down 8.3% YoY), ordinary income at 6,000 million yen (down 25.8% YoY), and net income attributable to owners of the parent at 5,000 million yen (down 8.5% YoY). While an increase in contribution margin due to higher sales is expected, operating income is forecasted to decrease due to higher depreciation expenses and inventory effects.