Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Performance

For the consolidated results of the third quarter of the fiscal year ending March 2026, net sales were ¥493,063 million (down 1.8% YoY), while operating income increased significantly to ¥18,092 million (up 165.4% YoY) and ordinary income to ¥16,026 million (up 273.6% YoY). Net income attributable to owners of parent for the quarter was ¥8,820 million, reversing from a loss of ¥6,281 million in the same period last year. The primary drivers of increased profits included fixed cost reductions, increased sales of value-added products, the impact of price revisions taking hold, and recording of special gains. By segment, although net sales decreased in the Paper and Paperboard business, profits increased, and the Home & Personal Care business maintained steady sales while significantly improving profitability.

Financial Position and Outlook

Total assets stood at ¥865,951 million, a decrease from the previous fiscal year-end, while net assets increased to ¥254,022 million, improving the equity ratio to 27.6%. The number of issued shares remained unchanged, with a slight decrease in treasury shares. There is no revision to the full-year earnings forecast for the fiscal year ending March 2026, and management reform is advancing steadily under the Fifth Medium-Term Business Plan based on a stable management foundation. Additionally, some subsequent events such as subsidy approvals have occurred, but their impact on future performance is expected to be minimal.