2026 Fiscal Year May Financial Results Briefing Materials

Performance Overview

For the fiscal year ending May 2026, revenue was approximately ¥20,381 million, a 1.4% decrease from the previous year. However, operating income rose by 36.1% to ¥1,134 million, showing an improvement in profit margins. Net income decreased by 40.1% to ¥693 million, but cash flow improved, contributing to stabilized long-term financial management. Factors contributing to revenue decline include rising raw material costs and intensified competition, but the company aims to enhance profitability through strict cost management and expansion of new businesses.

Future Outlook and Investor Impact

Future earnings forecasts are cautious, expecting flat or slightly increased revenue in the fiscal year ending May 2027. The company plans to improve profit margins through cost reductions and expansion of new businesses. While short-term net income decline may concern investors, improvements in cash flow and medium- to long-term growth strategies suggest a sustainable growth trajectory. Shareholder return policies are under consideration, including maintaining dividends and share buybacks.