Financial Summary for the Third Quarter of the Fiscal Year Ending August 2026 (Consolidated)

Overview of Business Performance

For the cumulative third quarter period, net sales decreased by 0.7% YoY to JPY 13,267 million, and operating profit declined by 3.5% to JPY 2,813 million. The main reasons are delays in core market update projects, weak demand in surrounding markets for surgical wear, and increased costs due to transportation and labor expenses, which exerted pressure on profitability. On the other hand, overseas markets expanded sales through distribution channel growth, supported by steady performances in surgical wear. The gross profit margin improved by 0.4 points to 40.0%. The full-year earnings forecast remains unchanged from the previous announcement.

Capital Policy and Future Outlook

The company's financial position includes total assets of JPY 42,725 million, net assets of JPY 39,424 million, and an equity ratio of 92.3%. The company plans to repurchase treasury stock, with the Board of Directors having resolved to acquire up to 600,000 shares, with a maximum amount of JPY 1 billion, through open market purchases during the period from June 30, 2026, to October 31, 2026. Discussions regarding dividend forecasts for the full year are ongoing, and improvements in dividend payout are expected at the quarter-end.