Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 Supplementary Financial Information

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 12, 2025

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)
   1. Consolidated Operating Results (Percentage indicates year-on-year change)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of the parent
      	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)
      Year ended March 31, 2025	94,035	30.5	21,034	121.1	21,279	113.8	13,945	73.8
      Year ended March 31, 2024	72,044	(1.3)	9,513	18.9	9,951	14.0	8,025	47.5

      Note:

      Comprehensive income:

      Fiscal 2024: ¥ 14,237 million [21.9%]

      Fiscal 2023: ¥ 11,684 million [113.4%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      	(Yen)	(Yen)	(%)	(%)	(%)
      Year ended March 31, 2025	365.42	-	9.4	11.8	22.4
      Year ended March 31, 2024	212.67	-	5.7	5.9	13.2

      Reference:

      Share of profit (loss) of entities accounted for using equity method: Fiscal 2024: ¥ - million

      Fiscal 2023: ¥ - million

   2. Consolidated Financial Position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      	(Million yen)	(Million yen)	(%)	(Yen)
      As of March 31, 2025	190,422	152,634	80.2	3,974.47
      As of March 31, 2024	171,623	143,755	83.8	3,796.05

      Reference:

      Equity:

      As of March 31, 2025: ¥ 152,634 million

      As of March 31, 2024: ¥ 143,755 million

   3. Consolidated Cash Flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of year
   	(Million yen)	(Million yen)	(Million yen)	(Million yen)
   Year ended March 31, 2025	29,780	(19,650)	(5,369)	70,085
   Year ended March 31, 2024	2,577	(5,854)	(5,658)	65,325

2. Cash Dividends

   	Annual dividends per share					Total cash dividends (Annual)	Dividend payout ratio (Consolidated)	Dividends to net assets ratio (Consolidated)
   	1st quarter	2nd quarter	3rd quarter	Year-end	Total
   	(Yen)	(Yen)	(Yen)	(Yen)	(Yen)	(Million yen)	(%)	(%)
   Year ended March 31, 2024	-	75.00	-	75.00	150.00	5,684	70.5	4.0
   Year ended March 31, 2025	-	115.00	-	75.00	190.00	7,253	52.0	4.9
   Year ending March 31, 2026 (Forecast)	-	95.00	-	95.00	190.00		214.6

   * The dividends per share for the 2nd quarter of the year ended March 31, 2025 consist of an ordinary dividend of ¥75.00 and a bonus dividend of ¥40.00.

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(Percentage indicates year-on-year change)

1. Significant changes in the scope of consolidation during the period: Yes

   Newly included: 2 companies (Aadi Bioscience, Inc. and KAKEN INVESTMENTS INC.)

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

   2. Changes in accounting policies other than 1): None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common stock)

Note: The number of treasury shares at the end of the period includes the Company's shares held by the "Board Benefit Trust (BBT)" (93,600 shares as of March 31, 2025 and 28,200 shares as of March 31, 2024). The Company's shares held by the BBT are included in the number of treasury stock to be deducted in the calculation of the average number of shares during the period (64,055 shares as of March 31, 2025 and 29,898 shares as of March 31, 2024).

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

• Explanation of proper use of earnings forecasts, and other special matters:

(Caution regarding forward-looking statements)

The performance forecasts and other descriptions on future events presented in this material are based on information currently available and certain assumptions considered to be reasonable. The actual performance may differ from these forecasts.

How to review the supplementary material to the financial results reports:

It has been posted on the Company's web site, along with the financial results reports.

1. Consolidated balance sheets

   		(Millions of yen)
   Fiscal 2023 (As of March 31, 2024)		Fiscal 2024 (As of March 31, 2025)
   Assets
   Current assets
   Cash and deposits	50,625	54,093
   Notes and accounts receivable - trade, and contract assets	23,744	21,178
   Marketable securities	14,699	15,992
   Merchandise and finished goods	8,062	8,805
   Work in process	2,786	2,311
   Raw materials and supplies	6,319	7,904
   Other	736	1,091
   Allowance for doubtful accounts	(0)	(0)
   Total current assets	106,974	111,377
   Non-current assets
   Property, plant and equipment
   Buildings and structures	43,180	44,001
   Accumulated depreciation	(27,445)	(28,470)
   Buildings and structures, net	15,734	15,530
   Machinery, equipment and vehicles	17,075	17,181
   Accumulated depreciation	(14,302)	(14,689)
   Machinery, equipment and vehicles, net	2,772	2,491
   Tools, furniture and fixtures	8,483	8,760
   Accumulated depreciation	(6,836)	(7,049)
   Tools, furniture and fixtures, net	1,647	1,711
   Land	3,867	3,867
   Construction in progress	1,332	4,027
   Total property, plant and equipment	25,355	27,629
   Intangible assets
   In-process research and development	5,800	4,400
   Goodwill	937	14,035
   Other	724	854
   Total intangible assets	7,462	19,289
   Investments and other assets
   Investment securities	20,532	18,875
   Long-term prepaid expenses	4,991	4,352
   Retirement benefit asset	3,102	4,159
   Deferred tax assets	2,590	4,065
   Other	614	674
   Total investments and other assets	31,831	32,126
   Total non-current assets	64,648	79,045
   Total assets	171,623	190,422

   		(Millions of yen)
   Fiscal 2023 (As of March 31, 2024)		Fiscal 2024 (As of March 31, 2025)
   Liabilities
   Current liabilities
   Notes and accounts payable - trade	6,976	8,186
   Electronically recorded obligations -operating	123	136
   Short-term bank loans	3,850	3,850
   Accounts payable-other	4,146	6,311
   Accrued expenses	662	1,145
   Income taxes payable	76	7,285
   Provision for bonuses	946	1,154
   Provision for directors' bonuses	31	86
   Other	2,209	2,198
   Total current liabilities	19,024	30,354
   Non-current liabilities
   Provision for share-based remuneration	137	163
   Net defined benefit liability	6,393	4,954
   Deferred tax liabilities	1,947	1,514
   Other	365	800
   Total non-current liabilities	8,843	7,433
   Total liabilities	27,868	37,787
   Net assets
   Shareholders' equity
   Common stock	23,853	23,853
   Capital surplus	11,462	12,932
   Retained earnings	128,506	135,242
   Treasury stock	(28,613)	(28,233)
   Total shareholders' equity	135,207	143,794
   Accumulated other comprehensive income
   Net unrealized holding gain on securities	7,184	6,257
   Foreign currency translation adjustment	-	(57)
   Remeasurements of defined benefit plans	1,363	2,640
   Total accumulated other comprehensive income	8,547	8,840
   Total net assets	143,755	152,634
   Total liabilities and net assets	171,623	190,422

2. Consolidated statements of income and comprehensive income (Consolidated statements of income)

   		(Millions of yen)
   Fiscal 2023 (April 1, 2023 - March 31, 2024)		Fiscal 2024 (April 1, 2024 - March 31, 2025)
   Net sales	72,044	94,035
   Cost of sales	33,505	35,502
   Gross profit	38,539	58,532
   Selling, general and administrative expenses
   Salaries	5,657	5,579
   Bonuses and provision for bonuses	1,160	1,279
   Provision for directors' bonuses	31	86
   Retirement benefit expenses	272	164
   Research and development expenses	12,543	18,725
   Depreciation	317	271
   Other	9,042	11,390
   Total selling, general and administrative expenses	29,025	37,497
   Operating profit	9,513	21,034
   Other income
   Interest income	8	77
   Dividends income	471	536
   Other	64	87
   Total other income	543	701
   Other expenses
   Interest expenses	17	28
   Foreign exchange losses	59	370
   Loss on investments in investment partnership	21	33
   Other	7	24
   Total other expenses	106	456
   Ordinary profit	9,951	21,279
   Extraordinary income
   Gain on sales of investment securities	13	250
   Other	0	0
   Total extraordinary income	14	250
   Extraordinary losses
   Loss on retirement of non-current assets	148	68
   Impairment losses	19	1,488
   Loss on valuation of investment securities	-	537
   Other	0	0
   Total extraordinary losses	168	2,094
   Profit before income taxes	9,796	19,435
   Income taxes-current	1,926	7,718
   Income taxes-deferred	(155)	(2,228)
   Total income taxes	1,770	5,490
   Profit	8,025	13,945
   Profit attributable to owners of the parent	8,025	13,945

   (Consolidated statements of comprehensive income)

   		(Millions of yen)
   Fiscal 2023 (April 1, 2023 - March 31, 2024)		Fiscal 2024 (April 1, 2024 - March 31, 2025)
   Profit	8,025	13,945
   Other comprehensive income
   Net unrealized holding gain on securities	2,460	(926)
   Foreign currency translation adjustment	-	(57)
   Remeasurements of defined benefit plans	1,198	1,277
   Total other comprehensive income	3,658	292
   Comprehensive income	11,684	14,237
   Total comprehensive income attributable to
   owners of the parent	11,684	14,237

3. Consolidated statements of changes in net assets Fiscal 2023 (April 1, 2023 - March 31, 2024)

   (Millions of yen)

   	Shareholders' equity
   	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
   Balance at the beginning of current period	23,853	11,406	126,135	(30,026)	131,368
   Changes during the year
   Cash dividends			(5,655)		(5,655)
   Profit attributable to owners of the parent			8,025		8,025
   Purchase of treasury stock				(2)	(2)
   Disposal of treasury stock		55		1,415	1,470
   Other, net
   Total changes during the year	-	55	2,370	1,413	3,838
   Balance at the end of current period	23,853	11,462	128,506	(28,613)	135,207

   	Accumulated other comprehensive income			Non-controlling interests	Total net assets
   	Net unrealized holding gain on securities	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at the beginning of current period	4,724	165	4,889	578	136,836
   Changes during the year
   Cash dividends					(5,655)
   Profit attributable to owners of the parent					8,025
   Purchase of treasury stock					(2)
   Disposal of treasury stock					1,470
   Other, net	2,460	1,198	3,658	(578)	3,080
   Total changes during the year	2,460	1,198	3,658	(578)	6,918
   Balance at the end of current period	7,184	1,363	8,547	-	143,755

   Fiscal 2024 (April 1, 2024 - March 31, 2025)

   (Millions of yen)

   	Shareholders' equity
   	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
   Balance at the beginning of current period	23,853	11,462	128,506	(28,613)	135,207
   Changes during the year
   Cash dividends			(7,208)		(7,208)
   Profit attributable to owners of the parent			13,945		13,945
   Purchase of treasury stock				(5,935)	(5,935)
   Disposal of treasury stock		1,470		6,316	7,786
   Other, net
   Total changes during the year	-	1,470	6,736	380	8,586
   Balance at the end of current period	23,853	12,932	135,242	(28,233)	143,794

   	Accumulated other comprehensive income				Total net assets
   	Net unrealized holding gain on securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at the beginning of current period	7,184	-	1,363	8,547	143,755
   Changes during the year
   Cash dividends					(7,208)
   Profit attributable to owners of the parent					13,945
   Purchase of treasury stock					(5,935)
   Disposal of treasury stock					7,786
   Other, net	(926)	(57)	1,277	292	292
   Total changes during the year	(926)	(57)	1,277	292	8,879
   Balance at the end of current period	6,257	(57)	2,640	8,840	152,634

4. Consolidated statements of cash flows