Notice on Revision of Earnings Guidance and Dividend Forecast

Reasons for Revision of Earnings Guidance

Regarding the consolidated earnings guidance for the fiscal year ending March 2026, sales volume centered on vinyl flooring materials and wall coverings have been strong, resulting in expected net sales exceeding the previous forecast. On the profit front, although there were increases in depreciation expenses due to large-scale capital investments and rising logistics and labor costs, operating income is expected to remain nearly the same level as the previous forecast due to the effects of increased sales, reduced manufacturing costs, and price revisions on some products. Additionally, gains on non-operating income and expenses contributed to ordinary income and net income attributable to owners of the parent exceeding the previous forecast.

Revision of Dividend Forecast and Shareholder Return Policy

Based on the medium-term management plan 'SHINKA Plus ONE 2.0', stable dividends will continue with target consolidated payout ratio of 50% or DOE of 3.5%. The year-end dividend for the fiscal year ending March 2026 has been revised upward by 2 yen to 24 yen from the previous forecast, making the total annual dividend 34 yen including the interim dividend of 10 yen. The increase in dividends is also supported by operating cash flow exceeding the plan.