Summary of Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2025 （1,787KB）

Summary of Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2025

October 31, 2025

Contents

1. Third Quarter FY2025 Results

2. Full-Year FY2025 Forecasts

3. Results in Each Business

4. News

5. Reference Materials

   • The business segments are as follows: Furniture Businesses: FN

     Business Supply Distribution: BS Stationery Businesses: ST Interior Retail Businesses: IR

   • Unless otherwise indicated, monetary figures are rounded down to the nearest million yen.

As such, the sum of the figures in a breakdown may not match the stated total.

Executive Summary

Third Quarter FY2025 Results

• We achieved decent YoY growth in net sales, operating income, and EBITDA. Consolidated and business-specific performance was largely in line with the revised targets (as announced on July 30, 2025).

• The furniture business achieved sizeable YoY growth after capitalizing on brisk office demand in Japan, although it

  performed less well in China.

• Net income significantly increased YoY, largely in line with expectations.

  Forecasts for the fiscal year ending December 31, 2025

• Consolidated forecasts and business-specific forecasts remain unchanged from what we announced on July 30, 2025.

• In Q4, operating income will decrease YoY with growth investment in businesses units and corporate divisions. This investment will drive our strategy for next year and for the 4th medium term plan.

• In Q4, the furniture business will post higher sales and lower operating income (albeit higher revenue) because of slow performance in China. We will continue closing deals in Japan.

• The cyberattack on Askul is likely to drive customers to Kaunet (business supply distribution). This is not yet

  reflected in the current financial forecast.

  Other

• To mark our 120th anniversary, we launched a rebranding campaign, which included redesigning our corporate

  logo in October.

• The stock buyback program (¥20 bn) is largely proceeding as budgeted. 3

Rebranding

To mark our 120th anniversary, we launched a rebranding campaign and redesigned our logo.

We also unveiled a corporate slogan aligned with our vision of a self-directed collaborative society: curiosity is life.

New logotype with our first corporate slogan Revamped corporate website

4

1. Third Quarter FY2025 Results

   5

   
   
   

   Third Quarter FY2025 Results: Year on Year Comparisons

   We achieved decent YoY growth in net sales, operating income, and EBITDA, in line with the revised targets (as announced on July 30, 2025).

   	Q3
   	2024 result	2025 result	YoY change	% change
   Net sales 73,020		80,443	+7,423 +10.2%
   Gross profit 28,649		32,039	+3,390 +11.8%
   (ratio) 39.2%		39.8%	- +0.6pt
   EBITDA 4,216		5,966	+1,750 +41.5%
   (ratio) 5.8%		7.4%	- +1.6pt
   Operating income 1,961		3,800	+1,839 +93.8%
   (ratio) 2.7%		4.7%	- +2.0pt
   Net income attributable to 748 owners of parent		2,912	+2,164 +289.3%
   (ratio) 1.0%		3.6%	- +2.5pt

   Q1-Q3 (Millions of yen)
   2024 result	2025 result	YoY change	% change
   252,006	265,650	+13,644 +5.4%
   100,118	107,769	+7,651 +7.6%
   39.7%	40.6%	- +0.8pt
   24,595	27,707	+3,112 +12.7%
   9.8%	10.4%	- +0.6pt
   17,890	21,490	+3,600 +20.1%
   7.1%	8.1%	- +1.0pt
   16,374	16,723	+349 +2.1%
   6.5%	6.3%	- -0.2pt

   12%

13%

Note: In the period under review, we changed the method for presenting income (loss) on rental property and some other items. Th e new method has been retroactively applied the

above results for net sales, gross profit, operating income, and EBITDA. 6

Third Quarter FY2025 Results: Contributors to YoY Change in Net Sales

Overall growth was led by Japanese furniture business, which won orders on back of brisk office demand.

The overseas stationery business shifted to positive YoY growth in Q1-Q3, while the furniture business shifted to positive YoY growth in Q3 (Excluding exchange rate effects).

Japan

+14,277

Overseas

-763

(Millions of yen)

Reconciliation

+130

3,020 1,851 104 397 130

-836 -24 -1,137

その 他

為替換算 影響

2024年1-9月

実績

Jan-Sep

FY2024 result

FN BS ST IR

Other

FN ST

Foreign exchange

Reconciliation Jan-Sep

調整 額

2025年1-9月

実績

FY2025 result 7

Third Quarter FY2025 Results: Contributors to YoY Change in Operating Income

Profit growth was led by revenue growth and better margins in Japanese furniture businesses.

In the Japanese stationery business, cost reductions and price revisions resulted in profit growth, more than

offs etting decreased revenue.

Japan

+4,564

Overseas

-321

(Millions of yen)

Reconciliation

-641

その 他

為替換算 影響

調整 額

2025年1-9月

実績

2024年1-9月

実績

Jan-Sep

FY2024 result

FN

BS

ST

IR

Other

FN

ST

Foreign Reconciliation Jan-Sep exchange FY2025 result

8

Third Quarter FY2025 Results: Contributors to YoY Change in Operating Income

Costs increased, but we continued to enjoy the effects of price revisions, and the relative decline in sales costs, in the Japanese furniture business and Japanese stationery business.

We used strategic expenditures (including in personnel and IT infrastructure) to drive our medium- and long-term

strategies. (Millions of yen)

Gross profit

+7,651

SG&A expenses

-4,050

Hiring more staff, Across-board pay raises

Enhancing IT systems, other IT infrastructure investments

Logistics

2025年1-9月

実績

その 他

情報シス テム費

設備 費

活動 費

人件 費

売上拡大 効果等

売価改定 効果

2024年1-9月

実績

Jan-Sep

Impact of higher

Impact of sales Impact of sales

Personnel

Activity

Capital

IT system

Other

Jan-Sep

原材料高 騰影響

FY2024 result

raw materials costs

price revision

expansion

expenses

expenses

expenditures

expenditures

FY2025 result 9

© 2025 KOKUYO Co., Ltd.

Cash Flow Performance

OCF decreased ¥1.8 billion YoY, with higher income taxes and other factors.

The YoY change in ICF (+¥4.8 billion) was partly due to higher capital expenditure.

Balance Sheet Performance

Cash and cash equivalents decreased with ICF outweighing OCF and with negative FCF.

While performance was strong, equity ratio decreased because of the shareholder returns we delivered.

(Millions of yen)

11

1. Full-Year FY2025 Forecasts

   12

   
   
   

   Full-Year FY2025 Forecasts

   Forecasts remain unchanged from the revised forecasts we announced on July 30, 2025.

   In Q4, gross profit will increase YoY but operating income will decrease YoY because of one-off expenses (on rebranding among other things) and higher strategic expenses.

   	Full-year
   	FY2024 result	FY2025 revised target	YoY change	% YoY change
   Net sales	338,837	357,000	+18,163	5.4%
   Gross profit	133,424	144,700	+11,276	8.5%
   (ratio)	39.4%	40.5%	-	+1.1pt
   EBITDA	31,493	34,000	+2,507	8.0%
   (ratio)	9.3%	9.5%	-	+0.2pt
   Operating income	22,531	25,000	+2,468	11.0%
   (ratio)	6.6%	7.0%	-	+0.4pt
   Net income attributable to owners of parent	21,787	20,500	-1,287	-5.9%
   (ratio)	6.4%	5.7%	-	-0.7pt

   Q4 (Millions of yen)
   FY2024 result	FY2025 revised target*	YoY change	% YoY change
   86,831	91,350	+4,519 5.2%
   33,306	36,931	+3,625 10.9%
   38.4%	40.4%	- -2.1pt
   6,898	6,293	-605 -8.8%
   7.9%	6.9%	-1.1pt
   4,642	3,510	-1,132 -24.4%
   5.3%	3.8%	- -1.5pt
   5,413	3,777	-1,636 -30.2%
   6.2%	4.1%	- -2.1pt

   Overseas sales as percentage of total sales

   13%

   13%

   - -

   -

   -

   ROE

   8.5%

   c. 8%

   - -

   -

   -

   Note: In the period under review, we changed the method for presenting income (loss) on rental property and some other items. The new method has been retroactively applied the above results for net

   sales, gross profit, operating income, and EBITDA. 13

   *The revised target for 2025 Q4 is the revised forecast for 2025 minus the result for 2025 Q1-Q3.

   © 2025 KOKUYO Co., Ltd.

   Shareholder Returns

   In line with our increasing-dividend policy (with a consolidated payout rate of at least 50%), the year-end dividend will be ¥92, ¥15 more than the previous year's dividend (on the basis of the

   number of shares prior to the stock split).

   
   
   

   Dividend and payout ratio by year

   Dividend per share

   (Yen)

   1株当たり 配当額

   連結配当 性向

   100.0

   0.0

   +¥15

   Payout ratio

   92.0

   77.0

   66.5

   57.0

   47.0

   23.0

   (on the basis of

   the number of shares after the stock split)

   50%

   40.3%

   35.9%

   40.2%

   40.1%

   5(修正後)

   2021 2022 2023 2024 202

   (revised) 14

2. Outlook by Segment

15

Furniture: Performance

In Japan, we continued to capitalize on brisk demand.

In China, our target market (mainly Japanese firms) proved tough, but we closed leads in ASEAN.

16

Note: In the period under review, we changed the method for presenting income (loss) on rental property and some other items. The new method has been retroactively applied the above results for net sales, operating income, and EBITDA.

Japan Furniture Business

The outlook for office contracts remains favorable. For H2 2025, we have secured a higher number of

contracts than for H2 2024, although some have been deferred. For H1 2026, we have secured s ignificantly more contracts than those for H1 2025.

(As of October)

2026年上 期

2025年上 期

リニュー アル

新築移 転

リニュー アル

新築移 転

Contract volume in H2 2025Contract volume in H1 2026

Relocation

Renovation

Relocation Renovation

+5.8%

+7.3%

+5.5%

+16.2%

2025下期

2024下期

H2 2024

H2 2025

H1 2025

H1 2026 17

Business Supply Distribution: Change in Performance

To achieve our revised targets, we will focus on expanding sales, primarily to large corporations.

In Q4, we anticipate an increase in depreciation expenses due to IT system investments.

Q3 Q1-Q3

(Millions of yen)

18

Business Supply Distribution

IT system investments will enable iterative refinements to website and s ignificant expansion in online goods offered, helping us cover more customer needs and improve our prospects for revenue growth.

Improving website UI & UX

• System was upgraded (completed in Sep) to

  allow iterative refinements to Kaunet website.

• Website offers better UI & UX and is better able to adapt to changing needs.

  14.0%

  10.0%

  6.0%

  2.0%

  -2.0%

  Kaunet's quarterly YoY revenue growth rate

  9.0% 9.5%

  -1.7%

  Toward further

  growth

  1Q 2Q 3Q

  Expanding website lineup Improving system architecture

• The system upgrade in Sep removed the cap on no. of products that can be offered on the website.

  Expanding lineup

• We are underway to increasing the no. of products to 5 million by the end of the year.

No. of goods offered on our online store (as of Sep 30, 2025)

Multiples of 10,000 products

More products

offered, more needs covered

500

192

198

217

128

152

2022 2023 2024 2025.6 2025.9 2025 target 19

Stationery Businesses: Change in Performance

In Japan, profitability is improving due to the advancement of brand strategies.

Overseas, while India continues to face a challenging economic s ituation,

China has shifted to increased revenue and profit. (Millions of yen)

Q3 Q1-Q3

Stationery: Campus Rebranding

We rebranded Campus from a notebook brand to a study-style brand (support for students)

Study-support lineup

Campus reconceived as study-style brand

・The rebranded Campus does more than notebooks; it

supports students' study-styles

・Instead of just offering isolated products, Campus now offers a broad array of stationery and study tools to support study styles. This is how the brand will be developed globally.

Japanese outlets that will stock Campus Shelving

Variance from target

(as of September)

* Dedicating shelving for Campus brand goods

Interior Retail: Change in Performance

(Millions of yen)

Q3 Q1-Q3

Interior Retail

As part of business field expansion, we are expanding from retail interior design (retail outlets) to B2C ecommerce

and the B2B hotel and residential sectors.

Retail: Opened outlet in NEWoMan TAKANAWA

• Opened on Sep 12

• Performance has surpassed

expectations

Residential: Opened showroom in Poliform Tokyo

• Showroom will help us expand residential interior design services to wealthy consumers

% of revenue from

Hotels: Delivered brand design, layout, and installation services for The Basement Hotel Osaka Honmachi

• Our first delivery of services

from branding to installation

E-commerce growth

• Our lucrative EC business accounts for a growing share of revenue

e-commerce in Q1-Q3

7.8% 8.3%

Q1-Q3 2024

Q1-Q3 2025

1. News

   24

   © 2025 KOKUYO Co., Ltd.

   
   
   

   News

   
   
   

   We launched internal rollout of Office Style AI, an AI image generator for designing office interiors

   ・Incorporates changes to design (e.g. swapping spatial pathways and furniture) instantly

   ・Allows instant visualization of customer's design preferences

   Research Lab Pen (alcohol-resistant) inscribed in 2025 Good Design Best 100

   ・Marker pen series inscribed in 2025 Good Design Best 100

   ・11 other Kokuyo Group products/services earned 2025 Good Design Award

   
   
   

   Kokuyo Digital Academy launches 2 programs

   for season 3: GenAI-Lab and DD-Lab

   ・GenAI-Lab:

   Teaches practical skills in generative AI

   ・DD-Lab: Crash course in Kaggle

   25

   
   
   

   © 2025 KOKUYO Co., Ltd.

2. Reference Materials

26

© 2025 KOKUYO Co., Ltd.

Enhancing the Business Portfolio

Through groupwide strategic management, we are building a smarter business portfolio that will deliver sustained growth in 2030 and beyond.

High

② Maintain growth, improve profitability

2027

① Top priority

• Further improve to Japanese

2027

Sales growth rate

• Develope-commerce

• ExpandB2B

• Expand residential services

1.8 bn

2027

8.8 bn

business

• Expand from China to ASEAN

• Penetrate Australia and India

Business supply distribution

2024

2024

0.8 bn

2024

6.2 bn

2027

• Gain competitive advantage in

e-commerce

• Build purchase-management platform

9.7 bn

2024

• Grow businesses in India and ASEAN

• Build learning style brand

• Develop global products

• The larger the circle, the larger the EBITDA

• Dashed lines indicate trajectory in runup to 2030

• Underlined text indicates synergy themes

Low

Low

④ Clarify position

8.0 bn

③ Explore fresh growth options

EBITDA margin (both for Japan and overseas businesses)

High

Profitability = EBITDA margin

indicates the margin before G&A expenses (expenses not tied to a particular department or business)

① Top priority:

Use growth CapEx to drive growth

② Maintain growth, improve profitability:

③ Explore fresh growth options: Find cash cows and growth opportunities and allocate

growth CapEx to them

Use growth CapEx to drive growth and improve ④ Clarify position: Consider selling off or disinvesting if unfeasible to move profitability over longer term to other quadrant or synergize with other business

27

Furniture Business: Medium- and Long-Term Strategy

Build business model integrating upstream and downstream supply chain in Japan and overseas Globally optimize production and distribution by focusing on components and optimizing production locations

Strategy to leverage spatial design excellence and talent, global workstyle strategy

Start offering building

renovation services

Start offering office management services

(e.g. office team evaluation)

Japan

Planning phase

Design

fi n

nalizatio

Office layout phase

Office

ma ent

nagem

phase

phase

Life le

• Better workstyle research

• Better workplace

consultation service

• Live-office building

• Process in place for need-identification survey and proposal package

• Pitching products tied to upstream pitches

• Products that enable

spatial design pitches

Globally develop strengths and knowledge in Japan

Office Cyc

Overseas

Existing business field

• We will build a business model whereby we expand the business field to deliver customer experience value across the whole of the office life cycle (upstream to downstream), thereby forging lasting relationships with customers.

  Global product strategy

• We will bolster our system for developing designer's-choice global products for the Japanese market and Asian markets.

• In Japan, we will invest in production and logistics PP&E to boost capacity. We will also overhaul our global production network to achieve the QCD performance necessary to expand in ASEAN.

Mother plant

Sub-Plant Assembly site

28

Business Supply Distribution: Medium- and Long-Term Strategy Purchasing Platform Strategy

Use technological innovation to deliver personalized shopping experiences through Benri Net (platform for purchase-management services)

Enhancing platform functions by linking with big-name e-commerce sites

• We will enhance the core Benri Net platform's linkage with the following

  big-name e-commerce sites and trading companies.

• This platform strategy will create an upward spiral of continual growth in both linked suppliers and customers.

  Using AI to enhance customer experience value

• We will use AI to derive industry- and customer-specific recommendations for products selected from the largest B2B merchandise lineup, and expand Share of Wallet.

  A社

• Product recommendations will be sent at the necessary times based on purchase history, reducing purchasing time.

  Asset-light business

  model that offers

  convenience and huge product lineup to wide range of customers

  Industry-specific trading companies

  Locally rooted suppliers

  Printing

Company D

Suppliers,

e-commerce sites

Platform

Users

Technology used to

send personalized recommendations to target users

Supplies products

••

29

Stationery Business: Medium- to long-term strategy Campus Brand Strategy

We will accelerate business growth in India and expand our share in ASEAN markets to increase overseas sales share (percentage of total sales). We will also transition our existing business portfolio into a more profitable enterprise by reducing COGS in products for developing globally.

Area portfolio transition Product portfolio transition

Overseas

Global product sales share Gross profit margin in global

Global products Other products

products

30