Fiscal Year Ending December 2025 Earnings Report〔Japanese GAAP〕(Consolidated)

Overview of Financial Performance

For the fiscal year ending December 2025, consolidated net sales slightly increased to JPY 100,952 million (1.5% YoY increase), while operating income declined to JPY 9,412 million (5.4% YoY decrease). Ordinary income rose to JPY 9,022 million (7.3% YoY increase), but net income attributable to owners of parent dropped significantly to JPY 2,168 million (63.7% YoY decrease), mainly due to special loss recognition including impairment losses at consolidated subsidiaries. By product segment, electronic drums and synthesizers performed well, supported by new product launches and market development efforts. The equity ratio decreased to 49.2% from the previous fiscal year, although total assets increased.

Outlook and Dividend Policy

For the fiscal year ending December 2026, consolidated earnings are forecasted with net sales of JPY 106,400 million (5.4% YoY increase), operating income of JPY 10,000 million (6.2% YoY increase), ordinary income of JPY 9,600 million (6.4% YoY increase), and net income attributable to owners of parent of JPY 7,200 million (232.1% YoY increase). Dividends are planned to remain at an annual total of JPY 170 per share (interim JPY 85, year-end JPY 85), consistent with fiscal year 2025, reflecting the policy of sustainable and stable shareholder returns. The company aims to maintain a minimum DOE of 5.0%, considering share buybacks and capital efficiency.