December 2026 Fiscal Year Q1 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Performance

In the first quarter of the December 2026 fiscal year, net sales increased 8.7% YoY to JPY 108,099 million. Growth factors included securing new projects in Japan in the Furniture segment, expansion of the platform-based purchasing management system "Benrineto" in the Business Supply Distribution segment, and overseas growth in the Stationery segment. Operating income rose 2.7% YoY to JPY 13,848 million, and ordinary income increased 11.4% YoY to JPY 14,517 million, supported by foreign exchange gains. Net income attributable to owners of the parent grew 0.8% YoY to JPY 10,091 million, reflecting stable profit growth.

Segment Performance

The Furniture segment posted net sales of JPY 57,257 million (6.4% YoY increase) and operating income of JPY 12,721 million (1.4% YoY increase), driven by rising office demand in Japan and growth in overseas operations. The Business Supply Distribution segment recorded net sales of JPY 29,912 million (12.7% YoY increase) due to the expansion of "Benrineto", while operating income declined 3.0% YoY to JPY 1,306 million due to temporarily reduced profitability from large-scale sales events. The Stationery segment performed well with net sales of JPY 23,727 million (8.8% YoY increase) and operating income of JPY 2,509 million (18.1% YoY increase), supported by overseas growth and the Campus brand strategy. The Interior Retail segment saw net sales of JPY 5,533 million (2.7% YoY increase), but operating income decreased 9.6% YoY to JPY 138 million.

Financial Position and Cash Flows

Total assets stood at JPY 352,123 million, down JPY 2.9 billion from the previous fiscal year-end, while net assets increased by JPY 5.5 billion to JPY 261,053 million, improving the equity ratio to 73.1%. Cash flow from operating activities resulted in an outflow of JPY 9.9 billion, investing activities led to outflows of JPY 4.4 billion, and financing activities caused outflows of JPY 5.4 billion. There is no revision to the dividend forecast; the full-year dividend forecast for the December 2026 fiscal year remains JPY 24.50 per share (interim: JPY 12.25, year-end: JPY 12.25).

Outlook

The full-year earnings forecast for the December 2026 fiscal year remains unchanged. Net sales are expected to reach JPY 390,000 million (8.4% YoY increase), operating income JPY 27,000 million (2.9% YoY increase), and net income attributable to owners of the parent JPY 20,300 million (5.5% YoY decrease). Although risks remain from volatility in raw material and logistics costs caused by the Middle East situation, the concrete impact amount is currently unknown, and the situation will be closely monitored.