Fiscal Year Ending December 2025 (January 1 – December 31) Financial Presentation Materials

Business Performance Overview

For the fiscal year ending December 2025, consolidated net sales reached JPY 945.3 billion (down 4.4% YoY), and core operating income was JPY 108.9 billion (down 21.4% YoY). The Japanese market posted a 0.8% sales increase and a 0.9% profit decrease, achieving record-high net sales while maintaining high profit margins through strong brand power and DX investments. Overseas sales declined 7.1% and profits decreased 41.1%, amid challenging conditions such as brand trust recovery in China and distribution adjustments in Indonesia; however, the North American pet care business continued high growth. Factors for the profit decline included increased promotional and competitive expenses as well as structural reform costs.

Shareholder Returns and Future Outlook

The annual dividend was set at JPY 18 per share, continuing 24 consecutive years of dividend increases, alongside share buybacks totaling JPY 22 billion. The earnings forecast for the fiscal year ending December 2026 projects net sales of JPY 1.01 trillion (up 6.8% YoY) and core operating income of JPY 136 billion (up 24.9% YoY), expecting growth in both sales and profits. Plans include recovery in Asia and reductions in raw material costs, promoting high value-added growth areas and the creation of new markets. The capital policy aims to raise the total return ratio from 50% to 65%, targeting a structural improvement in ROE.