Supplementary Materials for FY2027 Second Quarter Financial Results

Overview of Performance

In 2Q of FY2027 (fiscal year ending March 2027), net sales increased 4.3% year-on-year to 22,025 million yen, gross profit was 7,727 million yen (up 3.9% year-on-year), and operating income was 1,233 million yen (up 3.5% year-on-year), securing an increase in profit. Profitability was maintained through improved product mix that absorbed higher raw material costs and optimization of selling, general and administrative expenses. Orders on hand rose 10.2% year-on-year, with continued demand for movable and sliding partitions for offices and cultural facilities. The completion ceremony for Kaga Factory Building No.2 was held in September, and operations are scheduled to commence in May 2027.

Shareholder Returns and Capital Investment Policy

From FY2026 the company changed its dividend policy to target a DOE of 6%. For FY2027 it plans a dividend increase of 5 yen to 135 yen year-on-year. Capital expenditures in 1H FY2027 totaled 2.7 billion yen, and the full-year plan is 5.2 billion yen. This includes investments related to Kaga Factory Building No.2, relocation and renovation of logistics warehouses, and maintenance and renewal investments. To realize the medium-term management plan NEXT VISION 2028, the company will promote growth in existing partition products and strengthen production capacity, create new products, and enhance production management through IoT and other measures.