FY2026 Financial Results Explanation Meeting

Overview of Business Performance

For the fiscal year ending March 2026, net sales totaled 251.9 billion yen, a 1.8% decline from the previous year. Operating income was 37.0 billion yen (down 6.8% YoY), and ordinary income was 39.4 billion yen (down 5.6% YoY), while net income attributable to shareholders of the parent was 31.6 billion yen (down 1.4% YoY), indicating a generally solid performance. Special gains and losses totaled 0.3 billion yen and 1.0 billion yen respectively, both decreasing. Segment-wise, sales from plant construction and sales were 79.5 billion yen (up 1.3% YoY) with an operating income of 12.0 billion yen (down 4.2% YoY). Industrial products recorded sales of 53.3 billion yen (up 0.3% YoY) and operating income of 10.1 billion yen (down 8.5% YoY). High-performance products had sales of 39.1 billion yen (down 12.3% YoY) and operating income of 6.9 billion yen (down 32.5% YoY). Automotive parts made sales of 28.5 billion yen (down 2.1% YoY) with operating income of 2.7 billion yen (up 91.8% YoY). Building materials posted sales of 28.5 billion yen (down 2.1% YoY) with a significant profit increase, generating an operating income of 2.7 billion yen.

Financial Status and Capital Policy

The shareholders’ equity ratio increased from 74.5% to 77.7%, confirming a strong financial foundation. Due to reductions in corporate taxes, the effective tax rate decreased from 30.6% to 18.0%, contributing to increased net income. The credit rating remains stable at A＋ (Stable) as evaluated by Japan Credit Rating Agency (JCR). As part of its capital policy, the company plans to implement a stock split of 3 shares per 1 ordinary share as of April 1, 2026. Additionally, it has decided to cancel 4,150 thousand shares of treasury stock, equivalent to 1% of issued shares, to enhance shareholder returns and optimize share liquidity.