Financial Results Supplementary Document for Fiscal Year ending March 2026

Financial Performance Overview

For the fiscal year ending March 2026, consolidated net sales reached 112,337 million yen (up 6.3% YoY), operating profit was 5,100 million yen (up 16.5% YoY), and net income attributable to owners of the parent was 4,459 million yen (up 27.1% YoY). Profit improvements were supported by increased sales volume, cost reduction activities, and price revisions. While the new construction market saw continued declines in new housing starts, the remodeling and renovation markets remained steady.

Segment Performance

The Interior Business achieved net sales of 107,231 million yen (up 6.5% YoY) and segment profit of 5,156 million yen (up 17.8% YoY), driven by new product sales expansion and price revisions. The Global Business recorded net sales of 2,321 million yen (down 5.8% YoY) and segment profit of –275 million yen, reflecting revenue decline and reduced profit, influenced by decreased construction investment in the U.S. market and rising transportation costs. The Building Materials and Others segment posted net sales of 4,993 million yen (up 1.8% YoY) and segment profit of 219 million yen (down 0.1% YoY), with stable performance.

Financial Position

As of the end of March 2026, total assets are not specified, but current assets increased by 13 billion yen to 54 billion yen, and fixed assets increased by 42 billion yen to 45.5 billion yen. Liabilities stood at 47.4 billion yen (up 17 billion yen), and net assets were 52.1 billion yen (up 38 billion yen), indicating a stable financial foundation.

Outlook for Fiscal Year Ending March 2027

Sales are expected to be 112,000 million yen (down 0.3% YoY), operating profit of 4,100 million yen (down 19.6% YoY), and net income attributable to owners of the parent of 3,400 million yen (down 23.8% YoY). The forecast reflects anticipated profit decline due to soaring raw material prices and an uncertain economic environment. Price revisions are planned but are expected to be lagging, leading to significant profit reduction.

Dividend Policy

During the period of the medium-term management plan ‘SHINKA Plus ONE 2.0’ (fiscal years ending March 2026 to March 2028), a stable dividend will be maintained with a consolidated payout ratio of 50% or DOE of 3.5%. The annual dividend per share for March 2027 is planned to be 34 yen.