FY2025 Financial Results Explanation Materials

Overview of FY2025 Full-Year Financial Results

For FY2025, operating + equity income reached 244.1 billion yen, an increase of 16.2% YoY, and net income attributable to owners of the parent was 192.3 billion yen, a 54.1% YoY growth. Sales declined 11.8% YoY to 8,105.9 billion yen, but operating income increased 30.8% YoY to 212.2 billion yen. The decline in coal prices was offset by the lag time effects of fuel oil prices and improvements in power and renewable energy segments. The lag effect had a significant impact of +96.7 billion yen YoY.

Shareholder Returns and Future Outlook

The dividend remains at 36 yen/share (interim 18 yen, year-end 18 yen), and a share buyback of 25 billion yen was approved on May 12. With dividends and share buybacks, the total shareholder return ratio is expected to maintain above 50%. For FY2026, a significant negative lag effect due to falling crude oil prices is anticipated, but excluding this lag, intrinsic profits are expected to remain steady. The dividend for FY2026 is currently projected at 36 yen/share, and a progressive dividend policy will be introduced.