Fiscal Year Ending March 2026 Full-Year Earnings Presentation

Performance Overview

Net income attributable to owners of parent in fiscal 2025 reached a record high of 23.3 billion yen, achieving over 20% growth in both operating income and net income. For fiscal 2026, revenue and profit growth are expected in the space and media businesses, with plans for operating revenue of 135 billion yen and net income of 27 billion yen (an increase of 3.7 billion yen year-on-year). The space business continues steady growth despite risks of diminishing competitiveness in the satellite communications market and satellite procurement challenges. The media business aims to constrain declines in broadcasting revenues and increase profits through expansion of the Hikari Alliance business.

Outlook and Capital Policy

From fiscal 2026 to 2027, aggressive growth investments will be pursued, with a cumulative investment plan of approximately 220 billion yen for 2025 to 2027. Shareholder returns will be maintained at a dividend payout ratio of 50% or higher, with the fiscal 2027 dividend forecasted at 48 yen annually (an increase of 6 yen). The hurdle rate has been revised from the previous 7% to 8%, and financing will include external borrowing to balance stable shareholder returns with growth investments.