Lion : Summary of Consolidated Financial Statements for Fiscal 2025

Company name: Lion Corporation

Listed stock exchanges: Tokyo Stock Exchange

Code: 4912

URL: https://www.lion.co.jp/en/

Representative: Masayuki Takemori, Representative Director, President and Executive Officer Contact: Akihiko Takeo, Executive Officer, Director of Finance Department

Telephone: +81-3-6739-3711

Annual meeting of shareholders: March 27, 2026 Start date of payment of dividend: March 5, 2026

Scheduled date of filing of financial report: March 26, 2026

Supplementary materials prepared for financial results: Yes

Earning announcement for financial results: Yes (for institutional investors, analysts, etc.)

Figures in this and subsequent tables are truncated at the nearest million.

1. Consolidated Results for the Year Ended December 31, 2025 (January 1, 2025 - December 31, 2025)

   February 12, 2026

   1. Consolidated Results (cumulative)

      (Percentage figures denote year-on-year change)

      	Net sales		Operating profit		Profit before tax
      	Millions of yen 422,092 412,943	%	Millions of yen 36,368 28,387	%	Millions of yen 39,433 32,249	%
      Year ended December 31, 2025		2.2		28.1		22.3
      Year ended December 31, 2024		2.5		38.4		44.1

      	Profit for the period		Profit for the period attributable to owners of the parent		Total comprehensive income for the period
      	Millions of yen 31,049 24,072	%	Millions of yen 27,587 21,197	%	Millions of yen 42,079 35,651	%
      Year ended December 31, 2025		29.0		30.1		18.0
      Year ended December 31, 2024		44.3		44.9		34.2

      Note: Core operating income for the year ended December 31, 2025 was ¥30,760 million (up 16.8% year on year). Core operating income for the year ended December 31, 2024 was ¥26,332 million (up 30.8% year on year).

      Core operating income is an earnings indicator the Company uses to measure regular business performance by subtracting selling, general and administrative expenses from gross profit.

      	Basic earnings per share	Diluted earnings per share	Ratio of equity attributable to owners of the parent to profit for the period	Ratio of profit before tax to total assets	Ratio of operating profit to net sales
      	Yen	Yen	%	%	%
      Year ended December 31, 2025	99.74	99.64	9.0	7.7	8.6
      Year ended December 31, 2024	76.51	76.41	7.4	6.6	6.9

      Note: Share of profit (loss) of investments accounted for using the equity method: December 31, 2025: ¥2,882 million

      December 31, 2024: ¥2,921 million

   2. Consolidated Financial Position

      	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent to total assets	Equity attributable to owners of the parent per share
      	Millions of yen	Millions of yen	Millions of yen	%	Yen
      December 31, 2025	528,596	348,419	322,726	61.1	1,166.54
      December 31, 2024	497,167	315,694	293,717	59.1	1,062.70

   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 period
   	Millions of yen 40,648 43,660	Millions of yen	Millions of yen (12,406) (21,205)	Millions of yen 88,092 102,240
   Year ended December 31, 2025		(43,460)
   Year ended December 31, 2024		(7,659)

2. Dividends

   	Cash dividends per share					Total dividend paid (annual)	Payout ratio (consolidated)	Ratio of dividends to equity attributable to owners of the parent (consolidated)
   	First Quarter	Second Quarter	Third Quarter	Year-End	Total
   Fiscal 2024 Fiscal 2025	Yen - -	Yen 13.00 15.00	Yen - -	Yen 14.00 15.00	Yen 27.00 30.00	Millions of yen 7,478 8,319	% 35.3 30.1	% 2.6 2.7
   Fiscal 2026 (forecast)	-	17.00	-	17.00	34.00		37.6

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2026 (January 1, 2026 - December 31, 2026)

(Percentage figures denote year-on-year change)

Note: Core operating income forecast: First half 2026: ¥14,000 million

Fiscal 2026: ¥35,000 million

1. Significant Change in Scope of Consolidation during Period: Yes

   Newly included: 3 companies (Company name) Merap Lion Holding Limited Liability Company

   Merap Group Corporation

   Phanam Pharmaceutical Corporation

   Excluded: - company (Company name)

2. Changes in accounting principles, procedures and presentation methods in connection with the preparation of quarterly consolidated financial statements:

   1. Changes in accounting standards required under IFRS: No

   2. Other changes: No

   3. Changes in accounting estimates: No

3. Number of outstanding shares (common stock)

   1. Number of outstanding shares on balance sheet dates (including treasury stocks): As of December 31, 2025: 279,782,746 shares

      As of December 31, 2024: 284,432,746 shares

   2. Number of treasury stocks on balance sheet date:

      As of December 31, 2025: 3,130,893 shares

      As of December 31, 2024: 8,045,423 shares

   3. Average number of shares outstanding over period

Fiscal year ended December 31, 2025: 276,595,116 shares

Fiscal year ended December 31, 2024: 277,054,093 shares

Reference: Summary Non-Consolidated Results (JGAAP basis)

1. Non-Consolidated Results for the Year Ended December 31, 2025 (January 1, 2025 - December 31, 2025)

1. Non-Consolidated Results

   (Percentage figures denote year-on-year change)

   	Net sales		Operating profit		Ordinary income		Profit for the period
   Fiscal 2025 Fiscal 2024	Millions of yen 225,480 224,430	% 0.5 (2.8)	Millions of yen 11,754 9,789	% 20.1 331.8	Millions of yen 21,780 18,675	% 16.6 131.1	Millions of yen 18,680 13,260	% 40.9 76.1

   	Basic earnings per share	Diluted earnings per share
   	Yen	Yen
   Fiscal 2025	67.53	67.47
   Fiscal 2024	47.86	47.79

2. Non-consolidated Financial Position

   	Total assets	Net assets	Shareholders' equity to total assets	Net assets per share
   December 31, 2025 December 31, 2024	Millions of yen 325,040 319,894	Millions of yen 214,377 202,716	% 66.0 63.4	Yen 774.89 733.26

   Reference: Shareholders' equity: December 31, 2025: ¥214,374 million

   December 31, 2024: ¥202,666 million

   • This report is not subject to review by a certified public accountant or external auditor.

   • Appropriate use of results forecasts; other special items

The forecasts and projected operating results contained in this report are based on information available at the time of preparation and thus involve inherent risks and uncertainties, including those related to economic conditions, the competitive environment and exchange rate fluctuations. Accordingly, readers are cautioned that actual results may differ materially from those projected as a result of a variety of factors. For information on forecasts of operating results, see I. Consolidated Performance and Financial Status on pages 2-11.

Lion Corporation (Code 4912): Consolidated Financial Statements

for the Year Ended December 31, 2025

Contents

1. Consolidated Performance and Financial Status 2

   1. Consolidated Performance 2

   2. Financial Status 10

   3. Basic Policy on the Distribution of Earnings and Cash Dividends 11

2. Corporate Group 12

3. Management Policies 13

   1. Basic Management Policies 13

   2. Long-term Management Strategies 13

   3. Management Issues 14

4. Basic Approach Regarding the Selection of Accounting Standards 15

5. Consolidated Financial Statements and Notes 16

1. Consolidated Statement of Financial Position 16

2. Consolidated Statement of Income and Statement of Comprehensive Income 18

3. Consolidated Statement of Changes in Equity 20

4. Consolidated Statement of Cash Flows 22

5. Notes to Consolidated Financial Statements

Notes Relating to the Assumption of a Going Concern 23

Segment Information 23

Income Taxes 28

Post-Retirement Benefits 31

Earnings per Share 33

Significant Subsequent Events 34

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