Supplementary Materials for Q3 Financial Results for the Fiscal Year Ending March 2026

Performance Overview

The consolidated results for Q3 FY2025 (April to December) showed net sales of 59.7 billion yen (down 5.5% YoY), operating income of 5.9 billion yen (down 32.6% YoY), ordinary income of 6.2 billion yen (down 31.2% YoY), and net income attributable to owners of parent of 4.0 billion yen (down 33.7% YoY). While net sales declined, profit margins, especially operating income and below, saw significant decreases. By segment, the Pipe Material Systems business recorded net sales of 36.2 billion yen (down 8.7% YoY) and operating income of 5.1 billion yen (down 29.1% YoY), indicating declines in both sales and profits. The Resin business posted net sales of 17.2 billion yen (up 1.4% YoY), but operating income decreased to 700 million yen (down 30.3% YoY). The Water Treatment & Resource Development business also experienced declines in sales and profits.

Full-Year Outlook and Dividends

The performance forecast for the full fiscal year 2025 anticipates net sales of 80.0 billion yen (down 5.2 billion yen YoY), operating income of 7.0 billion yen (down 4.1 billion yen YoY), ordinary income of 7.3 billion yen (down 4.0 billion yen YoY), and net income attributable to owners of parent of 4.8 billion yen (down 2.8 billion yen YoY). Earnings per share are expected to be 256 yen. Dividends are forecasted at 60 yen interim and 60 yen year-end, with a payout ratio projected at 47.0%. Despite anticipated profit declines, dividends are being maintained.