Supplementary Explanation Materials for the Third Quarter of the Fiscal Year Ending March 2026

Overview of Financial Results

For the cumulative third quarter (April to December) of the fiscal year ending March 2026, consolidated results were net sales of 81,820 million yen (YoY +9.0%), operating income of 3,143 million yen (YoY +44.8%), ordinary income of 3,735 million yen (YoY +52.6%), and net income attributable to owners of parent for the quarter of 2,484 million yen (YoY +49.9%). Strengthened promotional activities focusing on new products contributed to increased sales volumes of vinyl flooring and wall coverings. Although depreciation expenses increased due to large-scale capital investments and logistics and personnel expenses also rose, profits exceeded the previous year due to increased sales effects, cost reduction activities, and price revisions on some products.

Segment Performance and Future Outlook

The Interior Business showed strong results with net sales of 78,025 million yen (YoY +9.1%) and segment income of 3,180 million yen (YoY +42.8%). The Global Business recorded net sales of 1,762 million yen (YoY -4.5%) and a segment loss of 180 million yen (previous year loss of 148 million yen), marking a decline in sales and profit. The Building Materials and Others Business posted steady results with net sales of 3,682 million yen (YoY +4.3%) and segment income of 143 million yen (YoY +54.6%). No revisions have been made to the full-year earnings forecast, and growth in both sales and profits is expected. As the first year of the medium-term management plan 'SHINKA Plus ONE 2.0,' the company aims for increased sales and profits.