Financial Summary for Fiscal Year Ending March 2026 [Japan GAAP] (Consolidated)

Summary of Consolidated Performance for Fiscal Year Ending March 2026

For the fiscal year ending March 2026, consolidated net sales amounted to 670.125 billion yen (8.2% increase YoY), operating income was 94.997 billion yen (16.9% increase YoY), and ordinary income reached 95.202 billion yen (21.7% increase YoY), all marking record highs. Net income attributable to owners of the parent was 59.936 billion yen (9.1% increase YoY), despite a special loss of 19.959 billion yen related to business structure reform costs. By segment, the Environment Business posted net sales of 401.442 billion yen (2.7% increase YoY) and operating income of 68.617 billion yen (0.5% increase YoY). The Digital Society Business achieved net sales of 205.409 billion yen (19.7% increase YoY) and operating income of 28.15 billion yen (63.5% increase YoY). The Energy & Industry Business recorded net sales of 65.913 billion yen (12.9% increase YoY) but an operating loss of 1.322 billion yen.

Financial Position, Cash Flows, and Dividends

Total assets increased 8.8% year-on-year to 1.24333 trillion yen, and net assets rose 12.3% to 817.352 billion yen, resulting in an equity ratio of 65.0%. Cash flow from operating activities was an inflow of 137.989 billion yen, investing activities showed an outflow of 77.121 billion yen, and financing activities resulted in an outflow of 48.277 billion yen, leading to cash and cash equivalents increasing to 199.643 billion yen. Dividends for the full year are planned at 80 yen per share (up from 60 yen the previous year), with the next fiscal year forecasted at an annual dividend of 106 yen per share (53 yen interim, 53 yen year-end).

Earnings Outlook for Fiscal Year Ending March 2027

For the fiscal year ending March 2027, net sales are projected at 710.0 billion yen (6.0% increase YoY), operating income at 107.0 billion yen (12.6% increase YoY), ordinary income at 105.0 billion yen (10.3% increase YoY), and net income attributable to owners of the parent at 82.0 billion yen (36.8% increase YoY). The exchange rate assumptions are 150 yen per USD and 175 yen per EUR. Growth in semiconductor demand centered on AI applications is expected to drive expansion in the Digital Society Business.

Business Strategy and Management Policy

Based on the “NGK Group Vision Road to 2050,” the company is promoting a transformation of its business portfolio aiming for carbon neutrality and the realization of a digital society. Focus is on maximizing profits in the Environment Business, accelerating growth of the Digital Society Business, and creating new businesses, targeting over 100 billion yen in sales from new businesses by 2030. R&D investment is planned at around 200 billion yen over five years starting 2026, with digital transformation and sustainability management central to corporate strategy.

Organizational Restructuring and Capital Policy

On April 1, 2026, the company executed an organizational restructuring by absorbing the sales division of wholly-owned subsidiary NGK Electrodevice Ltd. through a company split and merging its manufacturing division with another subsidiary. Additionally, the company plans to acquire up to 6.5 million shares of treasury stock (maximum 33 billion yen) on May 1, 2026, with complete cancellation of all acquired shares scheduled for June 1, 2026, aiming to improve capital efficiency.