Notice Regarding the Difference Between Individual Financial Results and Previous Fiscal Year Results for the Full-Year Ending December 2025

Overview of Financial Results

For the fiscal year ending December 2025, individual results showed net sales of ¥287,364 million (Year-over-Year △0.6%), remaining nearly flat compared to the previous year. Operating income rose to ¥40,841 million (Year-over-Year +3.8%), reflecting successful cost reduction efforts. Ordinary income significantly increased to ¥66,613 million (Year-over-Year +43.2%), mainly driven by higher dividend income received from overseas subsidiaries. Net income attributable to owners of the parent also rose substantially to ¥55,611 million (Year-over-Year +42.6%), with earnings per share recorded at ¥151.24.

Reasons and Background for Differences

The substantial increase in ordinary income and net income attributable to owners of the parent was primarily due to increased dividend income from subsidiaries mainly overseas. Net sales remained generally steady backed by a substantial outstanding order backlog. Additionally, operating profit margin improved through cost reduction and other initiatives. It should be noted that the previous fiscal year figures are compared on a twelve-month basis due to a change in the fiscal year-end resulting in an irregular accounting period.