FY2026 Full Year Financial Results Explanation Document

Performance Summary

The consolidated financial results for FY2026 show net sales of 837.25 billion yen (down 0.3% YoY), operating profit of 9.431 billion yen (up 3.5%), ordinary income of 8.907 billion yen (up 5.5%), and net income attributable to owners of parent of 6.741 billion yen (up 9.5%). In Q4, net sales reached 23.341 billion yen (up 3.3%), with operating profit of 3.085 billion yen (up 82.7%), achieving significant profit growth. The operating profit margin was 11.3% for the full year and 13.2% in Q4, setting a new record high. Segments: Sign Graphics (SG) contributed to sales expansion due to strong sales of new products; Industrial Products (IP) saw robust sales of large-format UV printers but remained flat overall due to a decrease in small-format UV; Textile & Apparel (TA) saw strong sales of sublimation transfer flagship models in Q4, but sales declined over the full year; Factory Automation (FA) experienced a decline due to a significant decrease in automotive FA equipment sales.

Outlook and Market Environment

The consolidated forecast for FY2027 projects net sales of 91.0 billion yen, operating profit of 9.5 billion yen, ordinary income of 8.6 billion yen, and net income attributable to owners of parent of 6.1 billion yen. The market environment is expected to remain firm for industrial inkjet printers, with continued contributions from new product launches and strategic initiatives driving revenue growth across segments. Efforts to reduce cost of sales and ongoing investments in selling, general, and administrative expenses will support profit margins, with a focus on managing the cost of sales ratio. The assumed exchange rates are USD146/yen and EUR170/yen. Although geopolitical uncertainty in the Middle East remains, its impact on performance is expected to be limited.