2025 December Period Financial Summary [Japanese Accounting Standards] (Consolidated)

Performance Overview

For the fiscal year ending December 2025, consolidated performance showed net sales increasing to JPY 40,531 million (3.2% increase YoY), while operating income decreased to JPY 6,791 million (9.8% decrease YoY), ordinary income fell to JPY 7,106 million (11.1% decrease YoY), and net income attributable to owners of the parent declined to JPY 5,457 million (11.8% decrease YoY). The primary factors behind the profit decline were one-time expenses related to the 90th anniversary business project and increased planned investments in DX promotion. By segment, the battery and mobility markets performed steadily, resulting in sales growth in China, India, and the domestic market, whereas sales in South Korea, the United States, and Europe showed a declining trend. The equity ratio remained high at 85.4%, with cash and cash equivalents increasing to JPY 16,723 million.

Future Outlook and Dividend Policy

The consolidated earnings forecast for the fiscal year ending December 2026 projects net sales of JPY 43.0 billion (6.1% increase YoY), operating income of JPY 7,680 million (13.1% increase YoY), ordinary income of JPY 7,800 million (9.8% increase YoY), and net income attributable to owners of the parent of JPY 6,000 million (9.9% increase YoY). Despite remaining uncertainties in the global economy, growth is expected driven by expanded capital expenditures associated with decarbonization and the EV shift. Regarding dividends, the company plans to continue stable payouts targeting a consolidated payout ratio of 40%, with a planned annual dividend of JPY 200 (interim JPY 100, year-end JPY 100) for both fiscal years 2025 and 2026.