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

Performance Overview

Consolidated net sales for the fiscal year ending March 2026 were JPY 240,490 million (YoY +2.1%), achieving a 16th consecutive term of increased revenue and a record high. Operating income amounted to JPY 21,614 million (YoY +17.0%), ordinary income was JPY 21,768 million (YoY +18.0%), and net income attributable to owners of parent was JPY 14,869 million (YoY +19.1%), all setting new records. Product sales volume slightly declined year-on-year due to rising prices but has shifted to a recovery trend driven by expansion in high value-added product sales. While costs increased due to higher raw material prices and logistics expenses, profitability improved through product price revisions and strengthened sales activities.

Financial Condition and Cash Flow Status

Total assets stood at JPY 304.062 billion (an increase of JPY 11.836 billion from the previous term), total liabilities were JPY 138.891 billion (an increase of JPY 0.779 billion), and total net assets reached JPY 165.171 billion (an increase of JPY 11.056 billion). Cash and cash equivalents increased to JPY 25,478 million from JPY 19,020 million in the prior term. Cash flow from operating activities increased to JPY 29.981 billion year-over-year, cash flow from investing activities recorded expenditures of JPY 16.594 billion, and cash flow from financing activities recorded expenditures of JPY 6.928 billion.

Dividend Policy and Future Outlook

Dividends are paid with a consolidated payout ratio target of 40%, with a principle of no reduction and progressive dividend increases; for the fiscal year ending March 2026, an annual dividend of JPY 73.00 per share (interim: JPY 31.50, year-end: JPY 41.50) is planned. Earnings guidance for the fiscal year ending March 2027 is undecided due to difficulty rationally calculating impacts such as a sudden surge in crude oil prices, but the dividend policy is to maintain or increase. Efforts will continue to stabilize raw material procurement and maintain/improve profitability through product price revisions, alongside promoting capital investments such as the construction of a new factory and new distribution center to aim for sustainable growth.

Business Strategy and ESG Initiatives

We are focused on developing high value-added products and expanding recycling businesses, contributing to reducing environmental impact. The successful development of new materials 'OPTENA' and 'FORTENA' and the expansion of recycling 'store-to-store' initiatives have strengthened sales of environmentally friendly products. Automation and efficiency improvements in production and logistics are being promoted to reinforce a stable supply system. Additionally, active investments in human capital continue, such as maintaining certification as a Health & Productivity Management Organization and promoting employment of persons with disabilities.