Annual Report Year Ended March 31, 2025

Annual Report

Year Ended March 31, 2025

HARIMA CHEMICALS GROUP, INC.

Table of Contents

1. Business Overview 1

2. Consolidated Business Performance Trends 3

3. Consolidated Financial Statements 4

4. Independent ♙uditor's Report 40

5. Corporate Overview 45

6. Principal Subsidiaries 46

7. Directors and Corporate ♙uditors 47

Business Overview

During the fiscal year ended March 31, 2025, the global economic environment remained uncertain due to factors such as high interest rates in Europe and the USA, sluggish Chinese economy, and rising prices due to persistently high raw material and energy prices. The Japanese economy showed signs of a gradual recovery, supported by improved employment conditions, rising wages, and inbound demand. However, rising prices, particularly of raw materials and energy, affected the economic environment.

Under these conditions, in the Group's overseas business, despite weak demand in Europe, net sales increased year on year due to strong and stable demand in North America. Earnings also increased from the previous fiscal year due to lower raw material prices and cost reduction efforts. In the domestic business, net sales increased year on year due to rising market prices, and earnings also increased from the previous fiscal year due to the increase of sales. Additionally, consolidated sales also reached a record high, exceeded 100,000 million yen for the first time.

As a result of these conditions, the group's consolidated net sales for the current fiscal year increased by 8,675million Yen (up 9.4%) year-on-year to 101,006 million Yen. Operating income was 2,083 million Yen (operating loss was 211 million Yen in the previous fiscal year) due to the increase of sales. Ordinary income was 1,330 million Yen (ordinary loss was 275 million Yen in the previous fiscal year). Net income attributable to Harima Chemicals Group, INC. in this fiscal year was 763 million Yen (net loss attributable to Harima Chemicals Group, INC was 1,161 million Yen in the previous fiscal year).

Status of Business Segments (Resin & Tall Oil Products)

In this segment, though the sales in Japan increased, but the total sales decreased by 348 million Yen (down

1.6%) to 21,088 million Yen. This is because that our shares of the subsidiary, Harima do Brasil Industria Quimica Ltda. were transferred to Brazilian employees, so this subsidiary was not included in the consolidated sales this fiscal year. However, the operating income increased by 199 million Yen (up 94.5%) to 410 million Yen due to the increasing sales in domestic companies.

• About paint resins, in the first half of the year, due to soaring prices and unseasonable weather, demand for exterior architectural paints decreased, but recovered in the second half. As a result, the sales remained at the same level as the previous fiscal year.

• About printing ink resins, though the market for lithographic inks used in commercial printing continued to shrink, sales increased due to the increase of sales price following the rising raw material prices.

• About synthetic rubber emulsifiers, though demand for tires was sluggish, demand for other uses has recovered. Also, sales price increased followed rising raw material prices. As a result, sales increased than the previous fiscal year.

• About Myrcene, a fragrance raw material that we began manufacturing and selling in fiscal year of 2023, which sales volume increased due to increased demand, resulting in increased sales compared to the previous fiscal year.

  (Paper Chemicals)

  In this segment, the sales increased by 3,297 million Yen (up 13.4%) year-on-year to 27,924 million Yen. Operating income increased by 574 million Yen (up 37.1%) to 2,123 million Yen.

• About Paper Strengthening Agents, because domestic demand for corrugated cardboards shrank, sales decreased compared to the previous fiscal year. In China, although the sales volume increased, the sales increased year on year due to increased paperboard production in China.

• About Sizing Agents, in Japan, though production volume of paper and paperboard decreased, sales remained at the same level as the previous fiscal year due to market share expansion. Furthermore, in the USA, as sales destinations increased, sales volume also increased. As a result, sales increased than the previous fiscal year.

  (Electronics Materials)

  In this segment, the sales increased by 1,713 million Yen (up14.8%) year on year to 13,299 million Yen. Operating income decreased by 199 million Yen (down 34.3%) to 382 million Yen because of rising prices of raw materials for soldering materials overseas and increased cost for expanding the solder business such as labour costs due to increased personnel needs and increased facility relocation costs.

• About solder pastes, sales increased compared to the previous fiscal year due to an increase in overseas sales volume.

• About sales of functional resins for semiconductors, demand of semiconductors for generative AI was strong, and market conditions were also favourable. As a result, sales increased compared to the previous fiscal year.

• Sales of aluminium brazing materials for automobile heat exchangers decreased due to a decreasing demand for automotive heat exchangers in China and Thailand because of worsening market conditions.

  (Lawter)

  In this segment, sales increased by 3,671 million (up 11.8%) to 34,852 million Yen. Operating income was 622 million Yen (operating loss was 1,675 million Yen in the previous fiscal year) due to increase in sales volume, decline in raw material prices and efforts to reduce expenses.

• About adhesive resin, sales of emulsifiers for synthetic rubber remained sluggish, but sales of water-based tackifiers were strong particularly in Europe, North America, and Asia. Also, sales volume of resins for road marking paints increased significantly in North America. As a result, sales increased compared to the previous fiscal year.

• About Printing ink resin, as rising prices led to sluggish demand for consumer goods, shipments of publishing inks such as newspaper and commercial printing fell overall. But sales volume in North America increased due to market share expansion, as a result, sales increased compared to the previous fiscal year.

Consolidated Business Performance Trends

(Millions of Yen unless otherwise stated)

(Notes) 1. Net income (loss) per share is calculated based on the weighted average number of issued shares during the fiscal year after deducting treasury stocks.

Consolidated Balance Sheet

March 31, 2025

Millions of Yen

Thousands of

U.S. Dollars

(Note 1)

Millions of Yen

Thousands of

U.S. Dollars

(Note 1)

Consolidated Statement of Income

Year Ended March 31, 2025

Millions of Yen

Thousands of

U.S. Dollars

(Note 1)

Consolidated Statement of Income

Year Ended March 31, 2025

See notes to consolidated financial statements.

Consolidated Statement of Comprehensive Income

Year Ended March 31, 2025

Millions of Yen

Thousands of

U.S. Dollars

(Note 1)

See notes to consolidated financial statements.

Consolidated Statement of Changes in Equity

Year Ended March 31, 2025

Thousands Millions of Yen

Accumulated Other

Thousands of U.S. Dollars (Note 1)

Accumulated Other

Comprehensive Income Unrealized

- 8 -

Consolidated Statement of Cash Flows

Year Ended March 31, 2025

Millions of Yen

Thousands of

U.S. Dollars

(Note 1)

2025 2024 2025

OPERATING ACTIVITIES:

INVESTING ACTIVITIES:

Consolidated Statement of Cash Flows

Year Ended March 31, 2025

Notes to Consolidated Financial Statements

Year Ended March 31, 2025

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

   The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan ("Japanese GAAP"), which are different in certain respects as to the application and disclosure requirements of IFRS Accounting Standards.

   In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan. In addition, certain reclassifications have been made in the 2024 consolidated financial statements to conform to the classifications used in 2025.

   The consolidated financial statements are stated in Japanese yen, the currency of the country in which HARIMA CHEMICALS GROUP, INC. (the "Company") is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥149.52 to $1, the approximate rate of exchange at March 31, 2025. Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   1. Consolidation-The consolidated financial statements include the accounts of the Company and all its subsidiaries (together, the "Group").

      Under the control and influence concepts, those companies in which the Company, directly or indirectly, is able to exercise control over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence are accounted for by the equity method.

      The excess of the cost of acquisition over the fair value of the net assets of an acquired subsidiary at the date of acquisition is amortized over a period not exceeding 20 years.

      All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit included in assets resulting from transactions within the Group is also eliminated.

   2. Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements-Under Accounting Standards Board of Japan ("ASBJ") Practical Issues Task Force (PITF) No. 18, "Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements," the accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events under similar circumstances should be unified for the preparation of the consolidated financial statements. However, financial statements prepared by foreign subsidiaries in accordance with either IFRS Accounting Standards or generally accepted accounting principles in the United States of America (Financial Accounting Standards Board Accounting Standards Codification) ("US GAAP") tentatively may be used for the consolidation process, except for the following items that should be adjusted in the consolidation process so that net income is accounted for in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill;

      1. scheduled amortization of actuarial gain or loss of pensions that has been recorded in equity through other comprehensive income; (c) expensing capitalized development costs of R&D;

         (d) cancellation of the fair value model of accounting for property, plant and equipment and investment properties and incorporation of the cost model of accounting; and (e) recording a gain or loss through profit or loss on the sale of an investment in an equity instrument for the difference between the acquisition cost and selling price, and recording impairment loss through profit or loss for other-than-temporary declines in the fair value of an investment in an equity instrument, where a foreign subsidiary elects to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument.

   3. Unification of Accounting Policies Applied to Foreign Associated Companies for the Equity Method-ASBJ Statement No. 16, "Accounting Standard for Equity Method of Accounting for Investments," requires adjustments to be made to conform the associate's accounting policies for similar transactions and events under similar circumstances to those of the parent company when the associate's financial statements are used in applying the equity method, unless it is impracticable to determine such adjustments. In addition, financial statements prepared by foreign associated companies in accordance with either IFRS Accounting Standards or US GAAP tentatively may be used in applying the equity method if the following items are adjusted so that net income is accounted for in accordance with Japanese GAAP, unless they are not material: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has been recorded in equity through other comprehensive income; (c) expensing capitalized development costs of R&D; (d) cancellation of the fair value model of accounting for property, plant and equipment and investment properties and incorporation of the cost model of accounting; and (e) recording a gain or loss through profit or loss on the sale of an investment in an equity instrument for the difference between the acquisition cost and selling price, and recording impairment loss through profit or loss for

      other-than-temporary declines in the fair value of an investment in an equity instrument, where a foreign associate elects to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument.

   4. Business Combinations-Business combinations are accounted for using the purchase method. Acquisition-related costs, such as advisory fees or professional fees, are accounted for as expenses in the periods in which the costs are incurred. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the business combination occurs, an acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, which shall not exceed one year from the acquisition, the acquirer shall retrospectively adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and that would have affected the measurement of the amounts recognized as of that date. Such adjustments shall be recognized as if the accounting for the business combination had been completed at the acquisition date. The acquirer recognizes any bargain purchase gain in profit or loss immediately on the acquisition date after reassessing and confirming that all of the assets acquired and all of the liabilities assumed have been identified after a review of the procedures used in the purchase price allocation. A parent's ownership interest in a subsidiary might change if the parent purchases or sells ownership interests in its subsidiary. The carrying amount of noncontrolling interest is adjusted to reflect the change in the parent's ownership interest in its subsidiary while the parent retains its controlling interest in its subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted is accounted for as capital surplus as long as the parent retains control over its subsidiary.
   5. Cash Equivalents-Cash equivalents are short-term investments that are readily convertible into cash and exposed to insignificant risk of changes in value. Cash equivalents include time deposits and certificates of deposit, all of which mature or become due within three months of the date of acquisition.
   6. Inventories-Inventories are principally stated at the lower of cost, determined by the moving-average cost method, or net selling value.

      The inventories of certain consolidated foreign subsidiaries are stated at the lower of cost, determined by the first-in, first-out method, or net selling value.

   7. Investment Securities-Investment securities are classified and accounted for as follows:

      Marketable available-for-sale securities are reported at fair value, with unrealized gains and losses, net of applicable taxes, reported in a separate component of equity.

      Nonmarketable available-for-sale equity securities are stated at cost determined by the moving-average method. For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge to income.

   8. Property, Plant and Equipment-Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment of the Company and its consolidated domestic subsidiaries is principally computed by the declining-balance method, while the straight-line method is applied to buildings acquired after April 1, 1998, and building improvements and structures acquired on or after April 1, 2016. Certain domestic subsidiaries and foreign subsidiaries apply the straight-line method, using rates based on the estimated useful lives of the assets. The range of useful lives is from 5 to 50 years for buildings and from 4 to 17 years for machinery and equipment.
   9. Long-Lived Assets-The Group reviews its long-lived assets for impairment whenever events or changes in circumstance indicate the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognized if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued use and eventual disposition of the asset, or the net selling value at disposition.
   10. Software-Amortization of capitalized software costs is computed using the straight-line method over 5 years, the estimated useful life of the assets.
   11. Customer List-Amortization of capitalized customer list costs is computed using the straight-line method over 23 years, the estimated useful life of the assets.
   12. Retirement and Pension Plans-The Company and certain domestic subsidiaries have funded defined benefit pension plans, defined contribution pension plans, and severance lump sum payment plans covering substantially all of their employees. Certain foreign subsidiaries have adopted funded defined benefit plans and defined contribution pension plans.

       The Company accounts for the liability for retirement benefits based on the projected benefit obligations and plan assets at the balance sheet date. The projected benefit obligations are attributed to periods on a benefit formula basis. Actuarial gains and losses and past service costs that are yet to be recognized in profit or loss are recognized within equity (accumulated other comprehensive income), after adjusting for tax effects and are recognized in profit or loss over 14 years, no longer than the expected average remaining service period of the employees. Prior service costs are recognized in the period in which they are incurred.

       Retirement allowances for directors are recorded as a liability at the amount that would be required if all directors retired at each balance sheet date.

   13. Asset Retirement Obligations-An asset retirement obligation is recorded for a legal obligation imposed either by law or contract that results from the acquisition, construction, development, and the normal operation of a tangible fixed asset and is associated with the retirement of such tangible fixed asset. The asset retirement obligation is recognized as the sum of the discounted cash flows required for the future asset retirement and is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, the liability should be recognized when a reasonable estimate of the asset retirement obligation can be made. Upon initial recognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed asset by the amount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over the remaining useful life of the asset. Over time, the liability is accreted to its present value each period. Any subsequent revisions to the timing or the amount of the original estimate of undiscounted cash flows are reflected as an adjustment to the carrying amount of the liability and the capitalized amount of the related asset retirement cost.
   14. Revenue Recognition-The Company and its domestic subsidiaries implement the Accounting Standards for Revenue Recognition (ASBJ Statement No. 29 revised on March 31, 2020). Foreign subsidiaries implement the IFRS Accounting Standards (IFRS) 15 and the Accounting Standards Codification 606, "Revenue from Contract(s) with Customers," recognizing revenue at the amount expected to be received in exchange for goods or services when control of the promised goods or services is transferred to customers.

       1. The nature of performance obligations for each of the Group's major industry-The Group's main business segments including-Resin & Tall Oil Products, Paper Chemicals, Electronics Materials and Lawter Inc. ("Lawter"), have the obligation to perform the contract and deliver the goods according to the sales contract with the customer.

       2. The timing when performance obligations are satisfied-Since the sale of products and commodities is a performance obligation that is satisfied when the customer gains control over the products and commodities, revenue is recognized when the performance obligation is considered to be completed. However, for domestic shipment from factories, the Company applies paragraph 98 of the Guidance on Accounting Standards for Revenue Recognition (ASBJ Guidance No. 30 revised on March 26, 2021) to recognize revenue at the time of shipment.

   15. Research and Development Costs-Research and development costs are charged to income as incurred.
   16. Leases-Finance lease transactions are capitalized by recognizing leased assets and leased obligations in the balance sheet.

       All other leases are accounted for as operating leases.

   17. Bonuses to Directors-Bonuses to directors are accrued at the end of the year to which such bonuses are attributable.
   18. Income Taxes-The provision for income taxes is computed based on the pretax income included in the consolidated statement of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred taxes are measured by applying currently enacted income tax rates to the temporary differences. The Company and some of its domestic subsidiaries have adopted the group tax relief regime.
   19. Foreign Currency Transactions-All short-term and long-term monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance sheet date. The foreign exchange gains and losses from translation are recognized in the consolidated statement of income to the extent that they are not hedged by forward exchange contracts.
   20. Foreign Currency Financial Statements-The balance sheet accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is translated at the historical rate. Differences arising from such translation are shown as "Foreign currency translation adjustments" under accumulated other comprehensive income in a separate component of equity. Revenue and expense accounts of consolidated foreign subsidiaries are translated into yen at the average exchange rate.
   21. Derivative and Hedging Activities-The Group uses derivative financial instruments to manage its exposures to fluctuations in interest rates. Interest rate swaps are utilized by the Group to reduce interest rate risks. The Group does not enter into derivatives for trading or speculative purposes.

       Derivative financial instruments are classified and accounted for as follows: (1) all derivatives are recognized as either assets or liabilities and measured at fair value, and gains or losses on derivative transactions are recognized in the consolidated statement of income; and (2) for derivatives used for hedging purposes, if such derivatives qualify for hedge accounting because of high correlation and effectiveness between the hedging instruments and the hedged items, gains or losses on derivatives are deferred until maturity of the hedged transactions.

       Foreign currency forward contracts employed to hedge foreign exchange exposures for export sales are measured at fair value and the unrealized gains/losses are recognized in income.

       Forward contracts applied for forecasted (or committed) transactions are also measured at fair value but the unrealized gains/losses are deferred until the underlying transactions are completed.

       Interest rate swaps which qualify for hedge accounting and meet specific matching criteria are not remeasured at market value, but the differential paid or received under the swap agreements is recognized and included in interest expense.

   22. Per Share Information-Basic net income per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the period.

       Cash dividends per share presented in the accompanying consolidated statement of income are dividends applicable to the respective fiscal years, including dividends to be paid after the end of the year.

   23. Accounting Changes and Error Corrections-Under ASBJ Statement No. 24, "Accounting Standard for Accounting Changes and Error Corrections," and ASBJ Guidance No. 24, "Guidance on Accounting Standard for Accounting Changes and Error Corrections," accounting treatments are required as follows: (1) Changes in Accounting Policies-When a new accounting policy is applied following revision of an accounting standard, the new policy is applied retrospectively unless the revised accounting standard includes specific transitional provisions, in which case the entity shall comply with the specific transitional provisions. (2) Changes in Presentation-When the presentation of financial statements is changed, prior-period financial statements are reclassified in accordance with the new presentation. (3) Changes in Accounting Estimates-A change in an accounting estimate is accounted for in the period of the change if the change affects that period only, and is accounted for prospectively if the change affects both the period of the change and future periods. (4) Corrections of Prior-Period Errors-When an error in prior-period financial statements is discovered, those statements are restated.
   24. Provision for Loss on Litigation-In order to prepare for the provision for loss on litigation, estimated amounts of losses are provided.
   25. New Accounting Pronouncements

       -Accounting Standard for Leases (ASBJ Statement No. 34 revised on September 13, 2024)

       -Implementation Guidance on Accounting Standard for Leases (ASBJ Guidance No. 33 revised on September 13, 2024)

       1. Overview

          As part of efforts to make Japanese GAAP internationally consistent, the ASBJ conducted a study based on international accounting standards to develop accounting standards for leases that recognize assets and liabilities for all leases of lessees. ASBJ announced accounting standard for leases, the basic policy of which is to adopt IFRS 16's single accounting model, but to adopt only the major provisions of IFRS 16, rather than all the provisions of IFRS 16, so that it is simpler, more convenient, and more consistent with IFRS 16. As for the lessee's accounting treatment, the method of allocating lease expenses

          to the lessee will be the same as IFRS 16, regardless of whether the lease is a finance lease or an operating lease, in which the lessee will record the depreciation expense on the

          right-of-use asset and the amount equivalent to the interest on the lease liability.

       2. Scheduled date of adoption

          The Company expects to apply the accounting standards and guidance for annual periods beginning on or after April 1, 2027.

       3. Impact of the adoption of accounting standard and implementation guidance

       The Company is in the process of measuring the effects of applying the accounting standards and guidance in future applicable periods.

3. ACCOUNTING CHANGE

   Accounting Standard for Corporation, Residential and Business Taxes (ASBJ Statement No. 27 revised on October 28, 2022, which is referred to as the "2022 Revised Accounting Standards") has been applied from the beginning of this consolidated fiscal year.

   Regarding the amendments to the classification of corporate taxes (taxation on other comprehensive income), we follow the transitional treatment set out in the proviso of Section 20-3 of the 2022 Revised Accounting Standards and the transitional treatment set out in the proviso of Section 65-2(2) of the Implementation Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28 revised on October 28, 2022, which is referred to as the "2022 Revised Implementation Guidance").

   The accounting change has no impact on the consolidated financial statements.

   In addition, the 2022 Revised Implementation Guidance for the amendments related to the review of the treatment of profits and losses on sales of subsidiary shares between consolidated companies for tax purposes in consolidated financial statements has been applied from the beginning of this consolidated fiscal year. The change in accounting policy has been applied retroactively, and the consolidated financial statements for the previous consolidated fiscal year are retroactively applied.

   The change in accounting policy has no impact on the consolidated financial statements.

4. SIGNIFICANT ACCOUNTING ESTIMATE

   Recognition and Measurement of Impairment Losses on Property, Plant and Equipment

   1. Carrying amounts

      Millions of Yen

      Thousands of

      U.S. Dollars

      2025 2024 2025

      Property, plant and equipment ¥ 32,383 ¥ 28,499 $ 216,580 Which belong to LAWTER B.V. included in the above 10,828 10,167 72,418

   2. Information on the significant accounting estimate

   The consolidated subsidiary, LAWTER B.V., operates in seven countries (the Netherlands, Belgium, the United States of America, Argentina, New Zealand, China, and South Korea) and mainly manufactures and sells resins for adhesives and printing inks. To identify loss on impairment of long-lived assets, we grouped assets based on management accounting categories that are used to continuously manage income and expenses. LAWTER B.V. applies the accounting principles generally accepted in the United States of America, and the difference between the carrying amount and fair value is provided as an impairment loss, if indicators of impairment are identified and recoverability tests indicate that the sum of the undiscounted future cash flows to be expected from the asset group is less than the carrying amount. For the fiscal year ended March 31, 2025, an indication of impairment was identified for an asset group of Lawter in New Zealand and an impairment loss was recorded for ¥340 million ($2,274 thousand) for the amount by which the carrying amount exceeds its fair value, because the total amount of undiscounted future cash flows expected to arise from the asset group was less than the carrying amount as a result of recoverability test. The key assumptions, which were used in calculating the fair value of the New Zealand asset group, were the selling price per land area, expected selling costs and the disposable amounts of construction in progress and machinery and equipment. These assumptions are determined based on the best estimates as of the end of the current consolidated fiscal year, but they are subject to the effects of future fluctuations in uncertain economic conditions. Any changes in the assumptions in the estimates could affect the valuation of the fixed assets, which could have a significant impact on the consolidated financial statements.

5. INVESTMENT SECURITIES

   Investment securities as of March 31, 2025 and 2024, consisted of the following:

   Millions of Yen

   Thousands of

   U.S. Dollars

   2025 2024 2025

   Non-current:

   Equity securities ¥ 2,931 ¥ 3,188 $ 19,603

   Total ¥ 2,931 ¥ 3,188 $ 19,603

   The costs and aggregate fair values of investment securities as of March 31, 2025 and 2024, were as follows:

   Millions of Yen

   March 31, 2025 Cost

   Unrealized

   Gains

   Unrealized

   Losses

   Fair

   Value

   Securities classified as:

   Marketable available-for-sale:

   Equity securities ¥ 2,688 ¥ 325 ¥ (100) ¥ 2,913

   Millions of Yen

   March 31, 2024 Cost

   Unrealized

   Gains

   Unrealized

   Losses

   Fair

   Value

   Securities classified as:

   Marketable available-for-sale:

   Equity securities ¥ 2,303 ¥ 1,057 ¥ (194) ¥ 3,166

   Thousands of U.S. Dollars

   March 31, 2025 Cost

   Unrealized

   Gains

   Unrealized

   Losses

   Fair

   Value

   Securities classified as:

   Marketable available-for-sale:

   Equity securities $ 17,978 $ 2,173 $ (669) $ 19,482

   Carrying amounts of nonmarketable available-for-sale securities as of March 31, 2025 and 2024, were as follows:

   Millions of Yen

   Thousands of

   U.S. Dollars

   2025 2024 2025

   Nonmarketable available-for-sale:

   Equity securities ¥ 18 ¥ 22 $ 121

   The information for available-for-sale securities which were sold during the years ended March 31, 2025 and 2024, was as follows:

   Proceeds	Realized Gains	Realized Losses
   ¥ 2,262	¥ 1,185
   ¥ 2,262	¥ 1,185

   Millions of Yen

   March 31, 2025 Available-for-sale:

   Equity securities

   Total

   March 31, 2024

   Available-for-sale:

   Equity securities ¥ 374 ¥ 195

   Total ¥ 374 ¥ 195

   Thousands of U.S. Dollars

   March 31, 2025	Proceeds	Realized Gains	Realized Losses
   Available-for-sale: Equity securities	$ 15,128	$ 7,925
   Total	$ 15,128	$ 7,925

6. INVENTORIES

   Inventories as of March 31, 2025 and 2024, consisted of the following:

   Millions of Yen

   Thousands of

   U.S. Dollars

   	2025	2024	2025
   Finished products	¥ 9,854	¥ 7,991	$ 65,904
   Work in process	883	603	5,906
   Raw materials and supplies	13,714	14,579	91,720
   Total	¥ 24,451	¥ 23,173	$ 163,530

7. LONG-LIVED ASSETS

   The Group recorded impairment losses of ¥359 million ($2,401 thousand) and ¥125 million for the years ended March 31, 2025 and 2024, respectively. The Group recognized a decline in value of the equipment of LAWTER B.V. in New Zealand, and the idle land in Hokkaido for the year ended March 31, 2025. The impairment loss for the year ended March 31, 2025, was recognized since the recoverable value of the assets was lower than the carrying amounts due to continuing operating losses for business assets and the market value of the idle asset was lower than its carrying amount. Also, the Group recognized a decline in value of a golf course and hotel facilities for the year ended March 31, 2024. The impairment loss for the year ended March 31, 2024, was recognized since the recoverable value of the assets was lower than the carrying amounts due to continuing operating losses for business assets. The recoverable value of the assets was measured at the fair value considering a third-party appraisal report for the facility.

8. INVESTMENT PROPERTY

   The Group owns certain rental properties, such as office buildings and land. The net of rental income and operating expenses for those rental properties for the years ended March 31, 2025 and 2024, were ¥115 million ($769 thousand) and ¥115 million, respectively.

   In addition, the carrying amounts, changes in such balances, and market prices of such properties were as follows:

   Millions of Yen

   Carrying Amount Fair Value

   Increase/

   April 1, 2024 Decrease March 31, 2025 March 31, 2025

   ¥ 1,399 ¥ (33) ¥ 1,366 ¥ 2,151

   Millions of Yen

   Carrying Amount Fair Value

   Increase/

   April 1, 2023 Decrease March 31, 2024 March 31, 2024

   ¥ 1,406 ¥ (7) ¥ 1,399 ¥ 2,336

   Thousands of U.S. Dollars

   Carrying Amount Fair Value

   Increase/

   April 1, 2024 Decrease March 31, 2025 March 31, 2025

   $ 9,357 $ (221) $ 9,136 $ 14,386

   Notes: 1. Carrying amount recognized in the consolidated balance sheets is net of accumulated depreciation and accumulated impairment losses, if any.

   1. Decrease during the fiscal year ended March 31, 2025, primarily represents depreciation of ¥13 million ($87 thousand) and impairment losses of ¥17 million ($114 thousand). Increase during the fiscal year ended March 31, 2024, primarily represents the capital expenditure for current investment properties of ¥6 million, and the decrease primarily represents depreciation of ¥13 million.

   2. Fair value of properties is measured by the Group in accordance with the Real-Estate Appraisal Standard.

9. SHORT-TERM BANK LOANS AND LONG-TERM DEBT

   Short-term bank loans as of March 31, 2025 and 2024, consisted of an outstanding balance of line of credit, notes to banks and bank overdrafts. The average interest rates applicable to the short-term bank loans as of March 31, 2025 and 2024, were 2.8% and 1.5%, respectively. As of March 31, 2025 and 2024, the total committed line of credit was ¥6,000 million ($40,128 thousand) and ¥6,000 million, and unused balance was ¥4,300 million ($28,759 thousand) and ¥1,500 million, respectively.

   Long-term debt as of March 31, 2025 and 2024, consisted of the following:

   Millions of Yen

   Thousands of

   U.S. Dollars

   2025 2024 2025

   Unsecured loans from banks and other financial institutions, maturing in series until 2032 with interest rates ranging from 0.2% to 3.6% (2025) and from 0.3% to 1.8% (2024)	¥ 12,140	¥ 7,522	$ 81,193
   Total	12,140	7,522
   Less current portion	(396)	(1,322)	(2,648)
   Long-term debt, less current portion	¥ 11,744	¥ 6,200	$ 78,545

   Annual maturities of long-term debt, excluding finance leases (see Note 17), at March 31, 2025, for the next five years and thereafter were as follows:

   Year Ending

   March 31 Millions of Yen

   Thousands of

   U.S. Dollars

   2026	¥	396	$ 2,648
   2027
   2028	594		3,973
   2029	1,200		8,026
   2030	4,950		33,106
   2031 and thereafter	5,000		33,440
   Total	¥ 12,140		$ 81,193

   Certain bank loans and the commitment lines of credit are subject to financial covenants, which use total equity and continuous operating income without extraordinary items for the most recent year as credit risk indicators, and require the Group to maintain the financial measures above a certain level. Based on the financial results for the years ended March 31, 2025 and 2024, the covenants were not breached since the Group met the requirements.

10. RETIREMENT AND PENSION PLANS

    The Company and certain domestic subsidiaries have a defined contribution plan and a defined benefit plan, including a defined corporate pension plan and retirement lump sum plan. Certain foreign subsidiaries have defined contribution plans and defined benefit plans. Certain domestic subsidiaries apply the simplified method to calculate liabilities for retirement benefits and retirement benefit costs.

    In addition, the Company and certain domestic subsidiaries participate in multi-employer pension plans. Since the pension assets attributable to the Company and certain domestic subsidiaries cannot be reliably determined based on their contributions, the plan is accounted for as a defined contribution plan.

    Also, a certain domestic subsidiary has a severance payment plan for directors. The retirement benefits for directors are paid subject to the approval of the shareholders in accordance with the Companies Act of Japan (the "Companies Act"). The liability for retirement benefits for directors as of March 31, 2025 and 2024, was ¥19 million ($127 thousand) and ¥17 million, respectively, and included in liability for retirement benefits in the consolidated balance sheet.

    1. Defined Benefit Plan

       1. The changes in defined benefit obligation for the years ended March 31, 2025 and 2024, were as follows:

          Millions of Yen

          Thousands of

          U.S. Dollars

          	2025	2024	2025
          Balance at beginning of year	¥ 3,184	¥ 2,968	$ 21,295
          Service cost	201	194	1,344
          Interest cost	45	46	301
          Actuarial (gains) losses	(80)	19	(535)
          Benefits paid	(137)	(144)	(916)
          Foreign currency translation differences	40	76	268
          Others	10	25	66
          Balance at end of year	¥ 3,263	¥ 3,184	$ 21,823

       2. The changes in plan assets for the years ended March 31, 2025 and 2024, were as follows:

          Millions of Yen

          Thousands of

          U.S. Dollars

          	2025	2024	2025
          Balance at beginning of year	¥ 3,403	¥ 3,015	$ 22,759
          Expected return on plan assets	147	110	983
          Actuarial (losses) gains	(192)	28	(1,284)
          Contributions from the employer	292	292	1,953
          Benefits paid	(137)	(144)	(916)
          Foreign currency translation differences	40	76	268
          Others	10	26	67
          Balance at end of year	¥ 3,563	¥ 3,403	$ 23,830

       3. The changes in defined benefit obligation under the simplified method for the years ended March 31, 2025 and 2024, were as follows:

          Millions of Yen

          Thousands of

          U.S. Dollars

          	2025	2024	2025
          Balance at beginning of year	¥ 126	¥ 137	$ 843
          Periodic benefit costs	163	11	1,090
          Benefits paid	(190)	(25)	(1,271)
          Foreign currency translation differences	2	3	15
          Balance at end of year	¥ 101	¥ 126	$ 677

       4. Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets as of March 31, 2025 and 2024, was as follows:

          Millions of Yen

          Thousands of

          U.S. Dollars

          	2025	2024	2025
          Funded defined benefit obligation	¥ 3,263	¥ 3,184	$ 21,823
          Plan assets	(3,563)	(3,403)	(23,830)
          Total	(300)	(220)	(2,007)
          Unfunded defined benefit obligation	101	126	677
          Net liability arising from defined benefit
          obligation ¥ (199)		¥ (94)	$ (1,330)
          			Thousands of
          	Millions of Yen		U.S. Dollars
          	2025 2024		2025
          Liability for retirement benefits	¥ 98 ¥ 120		$ 656
          Asset for retirement benefits	(297) (214)		(1,986)
          Net liability arising from defined benefit obligation	¥ (199) ¥ (94)		$ (1,330)

       5. The components of net periodic benefit costs for the years ended March 31, 2025 and 2024, were as follows:

          Millions of Yen

          Thousands of

          U.S. Dollars

          	2025	2024	2025
          Service cost	¥ 201	¥ 194	$ 1,344
          Interest cost	45	46	301
          Expected return on plan assets	(147)	(110)	(983)
          Recognized actuarial losses	22	28	147
          Recognized prior service cost	5	5	33
          Periodic benefit cost in simplified method	163	10	1,090
          Others	(1)	(2)	(6)
          Net periodic benefit costs	¥ 288	¥ 171	$ 1,926

       6. Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plans for the years ended March 31, 2025 and 2024, were as follows:

          	Millions of Yen	Thousands of U.S. Dollars
          	2025 2024	2025
          Prior service cost	¥ 5 ¥ 5	$ 33
          Actuarial (gains) losses	(93) 35	(622)
          Others	2 3	14
          Total	¥ (86) ¥ 43	$ (575)

       7. Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of defined retirement benefit plans as of March 31, 2025 and 2024, were as follows:

          Millions of Yen

          Thousands of

          U.S. Dollars

          2025 2024 2025

          Unrecognized prior service cost ¥ 34 ¥ 37 $ 227

          Unrecognized actuarial losses 174 84 1,164

          Total ¥ 208 ¥ 121 $ 1,391

       8. Plan assets as of March 31, 2025 and 2024

          1. Components of plan assets

             Plan assets consisted of the following:

             2025 2024

             Debt securities in Japan 9.4% 9.1%

             Equity securities in Japan 11.3 12.2

             Debt securities in other countries 3.5 3.2

             Equity securities in other countries 10.7 11.8

             Cash and time deposits 0.9 0.7

             Insurance asset (general account) 64.2 63.0

             Total 100.0% 100.0%

          2. Method of determining the expected rate of return on plan assets

             The expected rate of return on plan assets is determined considering the long-term rates of return which are expected currently and in the future from the various components of the plan assets.

       9. Assumptions used for the years ended March 31, 2025 and 2024, were set forth as follows:

          	2025	2024
          Discount rate	Mainly 0.7%	Mainly 0.7%
          Expected rate of return on plan assets	Mainly 5.0%	Mainly 4.0%

    2. Defined Contribution Plan

       The amount of contributions required for the defined contribution plan of the Group for the years ended March 31, 2025 and 2024, was ¥184 million ($1,231 thousand) and ¥305 million, respectively.

    3. Multi-Employer Pension Plan

       The contributions to the multi-employer plan, which are accounted for using the same method as a defined contribution plan, were ¥93 million ($622 thousand) and ¥93 million for the years ended March 31, 2025 and 2024, respectively.

       1. The funded status of the multi-employer plan as of March 31, 2024 and 2023, was as follows:

          	Millions of Yen	Thousands of U.S. Dollars
          	2024 2023	2024
          Plan assets	¥ 40,258 ¥ 36,788	$ 269,248
          Actuarial liabilities of pension plan	61,836 62,707	413,563
          Net balance	¥ (21,578) ¥ (25,919)	$ (144,315)

       2. The contribution ratio of the Group in the multi-employer plan for the years ended March 31, 2024 and 2023, was 2.1% and 2.2%, respectively.

       3. Supplementary explanation

    The above information is obtained from the latest available information.

    The net balance in (1) above is mainly caused by past service cost of ¥29,749 million ($198,963 thousand) for 2024 and ¥30,175 million for 2023, and a deficiency brought forward of ¥8,171 million ($54,648 thousand) for 2024 and ¥4,256 million for 2023. Past service cost under the plan is amortized on a straight-line basis over 19 years, and the special contributions of ¥40 million ($268 thousand) for 2024 and ¥41 million for 2023, which are utilized for such amortization, were expensed in the consolidated statement of income of the Group.

    The ratios in (2) above do not represent the actual actuarial liability ratio of the Group.

11. ASSET RETIREMENT OBLIGATIONS

    The changes in asset retirement obligations for the years ended March 31, 2025 and 2024, were as follows:

    Millions of Yen

    Thousands of

    U.S. Dollars

    2025 2024 2025

    Balance at beginning of year ¥ 39 ¥ 39 $ 261 Additional provisions associated with

    the acquisition of property, plant and equipment 14 93

    Balance at end of year ¥ 53 ¥ 39 $ 354

12. EQUITY

    Japanese companies are subject to the Companies Act. The significant provisions in the Companies Act that affect financial and accounting matters are summarized below:

    1. Dividends

       Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon resolution at the shareholders' meeting. Additionally, for companies that meet certain criteria including (1) having a Board of Directors, (2) having independent auditors, (3) having an Audit & Supervisory Board, and (4) the term of service of the directors being prescribed as one year rather than the normal two-year term by its articles of incorporation, the Board of Directors may declare dividends (except for dividends-in-kind) at any time during the fiscal year if the company has prescribed so in its articles of incorporation. With respect to the third condition above, the Board of Directors of companies with (a) board committees (namely, appointment committee, compensation committee, and audit committee) or

       1. an audit and supervisory committee (as implemented under the Companies Act effective May 1, 2015) may also declare dividends at any time because such companies, by nature, meet the criteria under the Companies Act. The Company is organized as a company with an audit and supervisory committee, effective June 25, 2015. The Company meets all the above criteria and, accordingly, the Board of Directors may declare dividends (except for dividends-in-kind) at any time during the fiscal year.

          The Companies Act permits companies to distribute dividends-in-kind (noncash assets) to shareholders subject to a certain limitation and additional requirements.

          Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles of incorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available for dividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but the amount of net assets after dividends must be maintained at no less than ¥3 million.

    2. Increases/Decreases and Transfer of Common Stock, Reserve, and Surplus

       The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity account charged upon the payment of such dividends until the aggregate amount of legal reserve and additional paid-in capital equals 25% of the common stock. Under the Companies Act, the total amount of additional paid-in capital and legal reserve may be reversed without limitation. The Companies Act also provides that common stock, legal reserve, additional paid-in capital, other capital surplus, and retained earnings can be transferred among the accounts within equity under certain conditions upon resolution of the shareholders.

    3. Treasury Stock and Treasury Stock Acquisition Rights

       The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution to the shareholders, which is determined by a specific formula. Under the Companies Act, stock acquisition rights are now presented as a separate component of equity. The Companies Act also provides that companies can purchase both treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented as a separate component of equity or deducted directly from stock acquisition rights.

13. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

    Selling, general and administrative expenses for the years ended March 31, 2025 and 2024, principally consisted of the following:

    Millions of Yen

    Thousands of

    U.S. Dollars

    2025 2024 2025

    Employees' salaries and bonuses	¥ 5,648	¥ 5,013	$ 37,774
    Net periodic retirement benefit	298	274	1,993
    Transport	4,531	3,923	30,304
    Depreciation	532	553	3,558
    Rental	275	296	1,839
    Research and development	2,782	2,707	18,606

14. INCOME TAXES

    The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective statutory tax rate of approximately 30.58% for the years ended March 31, 2025 and 2024. Foreign subsidiaries are subject to the income taxes of the countries in which they operate.

    The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2025 and 2024, were as follows:

    Millions of Yen

    Thousands of

    U.S. Dollars

    	2025	2024	2025
    Deferred tax assets:
    Tax loss carryforwards	¥ 2,927	¥ 2,554	$ 19,576
    Impairment loss on long-lived assets	1,238	1,175	8,280
    Loss on revaluation of investment securities	59	47	395
    Retirement benefits to directors	6	5	40
    Unrealized gain on property, plant and equipment	108	97	722
    Intangible fixed assets of foreign subsidiaries	44	3	294
    Others	1,831	1,932	12,246
    Total of tax loss carryforwards and temporary
    differences	6,213	5,813	41,553
    Less valuation allowance for tax loss carryforwards	(2,263)	(1,844)	(15,135)
    Less valuation allowance for temporary differences	(2,265)	(2,148)	(15,149)
    Total valuation allowance	(4,528)	(3,992)	(30,284)
    Deferred tax assets	1,685	1,821	11,269
    Deferred tax liabilities:
    Reserve for deferred gains on sales of property,
    plant and equipment	(44)	(44)	(294)
    Unrealized gain on available-for-sale securities	(94)	(304)	(629)
    Undistributed earnings of foreign subsidiaries	(602)	(528)	(4,026)
    Depreciation of foreign subsidiaries	(1,358)	(909)	(9,082)
    Others	(358)	(561)	(2,395)
    Deferred tax liabilities	(2,456)	(2,346)	(16,426)
    Net deferred tax liabilities	¥ (771)	¥ (525)	$ (5,157)

    The expiration of tax loss carryforwards, the related valuation allowances, and the resulting net deferred tax assets as of March 31, 2025 and 2024, were as follows:

    Millions of Yen

    1 Year March 31, 2025 or Less		After 1 Year through 2 Years	After 2 Years through 3 Years	After 3 Years through 4 Years	After 4 Years through 5 Years	After 5 Years	Total
    Deferred tax assets
    relating to tax loss
    carryforwards ¥ 67 Less valuation		¥ 16	¥ 12	¥ 58	¥ 135	¥ 2,639	¥ 2,927
    allowances for tax loss carryforwards (67) Net deferred tax assets		(16)	(12)	(58)	(108)	(2,002)	(2,263)
    relating to tax loss carryforwards					27	637	664
    March 31, 2024 Deferred tax assets relating to tax loss
    carryforwards ¥ 4 Less valuation		¥ 66	¥ 16	¥ 48	¥ 71	¥ 2,349	¥ 2,554
    allowances for tax loss carryforwards (4) Net deferred tax assets		(66)	(16)	(48)	(71)	(1,639)	(1,844)
    relating to tax loss carryforwards						710	710
    Thousands of U.S. Dollars
    		After	After	After	After
    		1 Year	2 Years	3 Years	4 Years
    	1 Year	through	through	through	through	After
    March 31, 2025	or Less	2 Years	3 Years	4 Years	5 Years	5 Years	Total
    Deferred tax assets
    relating to tax loss
    carryforwards $ 448 Less valuation		$ 107	$ 80	$ 388	$ 903	$ 17,650	$ 19,576
    allowances for tax loss carryforwards (448) Net deferred tax assets		(107)	(80)	(388)	(722)	(13,390)	(15,135)
    relating to tax loss carryforwards					181	4,260	4,441

    Net deferred tax assets relating to tax loss carryforwards were ¥664 million ($4,441 thousand) and

    ¥710 million for the years ended March 31, 2025 and 2024, respectively. They were mainly recorded at LAWTER Europe BV as a result of future taxable income consideration.

    The reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statement of income for the years ended March 31, 2025 and 2024, was as follows:

    	2025	2024
    Normal effective statutory tax rate	30.6%	30.6 %
    Expenses not deductible for income tax purposes	8.1	(88.0)
    Inhabitant tax on per capita basis	1.6	(11.9)
    Difference of income tax rates applicable to income in certain foreign countries	(8.0)	68.9
    Increase (decrease) in valuation allowance	53.9	( 254.7)
    Tax credit	(2.6)	17.1
    Undistributed earnings of foreign subsidiaries	4.1	5.0
    Share of profit of entities accounted for using equity method	3.4	17.1
    Withholding taxes on dividends from foreign subsidiaries Consolidated adjustment for loss on sales of investments in capital of subsidiaries and affiliates	2.0 ( 23.9)	(27.1)
    Consolidated adjustment for gain on liquidation of subsidiaries and associates	(5.6)
    Expiry of time limit of loss carried forward Adjustment of deferred tax assets and liabilities at end of period due to change in tax rates	0.2 (7.8)	(19.1)
    Other-net	1.2	7.9
    Actual effective tax rate	57.2%	( 254.2)%

    As a result of the passage of the Act to Partially Amend the Income Tax Act, etc. (Act No. 13 of 2025) on March 31, 2025, a "Defense Special Corporation Tax" will be levied from fiscal years beginning on or after April 1, 2026. The effective statutory tax rate was changed from 30.58% to 31.47% for the calculation of deferred tax assets and deferred tax liabilities related to temporary differences expected to be resolved after the consolidated fiscal year beginning on or after April 1, 2026. Because of this change, the amount of corporate tax adjustments for this consolidated fiscal year increased by ¥5 million ($33 thousand), while the amount of deferred tax assets (excluding the amount of deferred tax liabilities) and unrealized gain on available-for-sale securities decreased by ¥8 million ($54 thousand) and ¥3 million

    ($20 thousand), respectively.

15. REVENUE

(1) Disaggregation of Revenue

Revenues from contracts with customers on a disaggregated basis for the years ended March 31, 2025 and 2024, were as follows:

Millions of Yen 2025

Reportable Segment

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