LIXIL : Consolidated Financial Results for the Fiscal Year Ended March 31, 2025(International Financial Reporting Standards)

Scheduled date of ordinary general meeting of shareholders: June 19, 2025

Scheduled date of issue of securities report: June 18, 2025

Scheduled date to commence dividend payments: June 4, 2025

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (For investment analysts and institutional investors)

(Amounts less than one million Japanese yen are rounded)

1. Consolidated Financial Results for the FY Ended March, 2025 (April 1, 2024 through March 31, 2025)

   1. Consolidated Operating Results (Percentages indicate year-on-year changes)

      	From Continuing Operations
      	Revenue		Core earnings		Operating profit		Profit before tax		Profit
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      FYE 2025	1,504,697	1.4	31,337	35.3	29,687	81.6	20,150	202.4	2,268	-
      FYE 2024	1,483,224	-0.9	23,162	-10.0	16,351	-34.3	6,664	-66.3	-9,455	-

      	Including Discontinued Operations
      	Profit		Profit attributable to owners of the parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      	Million yen	%	Million yen	%	Million yen	%	Yen	Yen
      FYE 2025	2,218	-	2,001	-	1,470	-96.5	6.97	6.97
      FYE 2024	-14,614	-	-13,908	-	42,329	-12.0	-48.43	-48.43

      	Including Discontinued Operations		From Continuing Operations
      	Ratio of equity attributable to owners of the parent	Total assets Earning Ratio before tax	Revenue Core earnings ratio	Revenue Operating profit ratio
      	%	%	%	%
      FYE 2025	0.3	1.1	2.1	2.0
      FYE 2024	-2.2	-0.0	1.6	1.1

      Reference: Share of profit (loss) of associates and joint ventures accounted for using the equity method

      FYE 2025

      327

      million yen FYE 2024

      -153

      million yen

      Note: Core earnings is calculated by deducting the cost of sales and selling, general and administrative expenses (SG&A) from revenue.

   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
      	Million yen	Million yen	Million yen	%	Yen
      FYE 2025	1,830,804	620,070	617,886	33.7	2,150.86
      FYE 2024	1,886,595	644,338	642,511	34.1	2,237.53

   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
   	Million yen	Million yen	Million yen	Million yen
   FYE 2025	100,002	-28,127	-72,470	123,527
   FYE 2024	47,990	-29,876	-3,673	124,485

2. Cash Dividends

   	Annual dividends per share					Total amount of cash dividends (annual)	Dividend payout ratio (consolidated)	Ratio of dividends to equity attributable to owners of parent
   	End of Q1	End of Q2	End of Q3	End of period	For the year
   	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
   FYE 2024	-	45.00	-	45.00	90.00	25,844	-	4.1
   FYE 2025	-	45.00	-	45.00	90.00	25,855	1,291.2	4.1
   FYE 2026 (forecast)	-	45.00	-	45.00	90.00		323.2

3. Consolidated Forecast for the FY Ending March, 2026 (April 1, 2025 through March 31, 2026)

(Percentages indicate year-on-year changes)

1. Significant changes in the scope of consolidation during the period: None Newly consolidated company: None

   Excluded company: None

2. Changes in accounting policies and accounting estimate

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimate: None

3. Outstanding shares (Common shares)

   1. Outstanding shares including treasury shares (March 31, 2025)

   2. Treasury shares (March 31, 2025)

   3. Average number of shares during the fiscal year (March 31, 2025)

287,340,460 shares (FY ended March 31, 2024)

66,074 shares (FY ended March 31, 2024)

287,258,128 shares (FY ended March 31, 2024)

287,211,790 shares

59,323 shares

287,140,640 shares

• This financial results report is exempt from review conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters (Cautionary statements with respect to forward-looking statements)

Performance forecast and other forward-looking statements contained in this report are based on information currently available and on certain assumptions deemed rational at the time of this report's release. Due to various circumstances, however, actual results may differ significantly from such statements.

For information on the financial forecast, please refer to "1. Overview of Operating Results (1) Overview of Operating Results for the current consolidated fiscal year" on page 4 of the attached material.

(How to access supplementary financial results material)

The financial results presentation material "Financial Results for the Fiscal Year Ended March 31, 2025 (IFRS) (From April 1, 2024 to March 31, 2025)" has been posted on TDnet and the Company's website on April 30, 2025.

Overview by segment is as follows:

Revenues by segment are before the elimination of intersegment transactions and core earnings are before the deduction of Company expenses.

For the Water Technology Business, which mainly offers water-related products, revenue in the Japan business increased year-on-year due to the effect of price optimizations and continued strong sales of renovation-related products, despite the continued impact from a decline in new housing demand. In the international business, revenue also increased year-on-year. Despite continued sluggish demand in the United States and China, there were strong sales in Europe and the Middle East, and a positive impact from foreign exchange translation. As a result, revenue increased to 927,844 million yen (up 3.4% year-on-year).

Core earnings increased significantly to 40,941 million yen (up 80.2% year-on-year). In the Japan business, this was due to increased renovation sales and the effects of price optimizations, which offset the impact of rising component prices and foreign exchange fluctuations. In the international business, this was due to factors such as increased sales and reduced SG&A expenses from structural reform efforts.

For the Housing Technology Business, which mainly offers housing-related building materials in Japan, revenue declined slightly to 586,819 million (down 1.6% year-on-year). This was due to the substantial impact of the decline in new housing demand (similar to the impact on the Water Technology Business), and a decrease in sales from the business divestitures in the previous year. At the same time, there was significant growth in renovation sales of insulation products, particularly windows, driven by the introduction of a national large-scale subsidy program aimed at achieving a low-carbon society.

Core earnings decreased to 29,172 million yen (down 18.7% year-on-year). This was largely due to the impact of sluggish sales for new housing, as well as continued increases in component costs and energy prices.

(Notes)

1. Core earnings are calculated by deducting the cost of sales and selling, general and administrative expenses (SG&A) from revenue.

2. The "Japan business" and "International business" are management-based classifications as defined in the Group's consolidated performance management, which differ in some respects from classifications based on country of location. Specifically, in the Water Technology Business and Housing Technology Business, certain international subsidiaries under the jurisdiction of the Japan business are included in the "Japan business" category.

Regarding the Japan outlook for the fiscal year ending March 2026, the economic environment is expected to continue to pick up, but uncertainties remain from factors such as further contraction of new housing demand due to rising interest rates, exchange rate fluctuations, and trends in inflation. For international markets, interest rate declines are expected, particularly in Europe and the United States Steady sales growth is expected in Europe and demand capture is anticipated in growth markets such as the Middle East and India. Uncertainties are expected to persist, however. These include global instability caused by geopolitical risks such as developments in US reciprocal tariff measures and prolonged international conflicts, as well as sluggish real estate markets and higher inflation.

In this business environment, the Group has taken decisive actions aligned with the strategic initiatives outlined in the 'LIXIL Playbook.' The Group has continued structural reforms, especially aimed at the pressing issue of recovering the profitability of its international business operations. These include shifting to higher-profit margin products and distribution channels, further reviewing the business portfolio such as streamlining unprofitable businesses, and restructuring the supply chain. The Company anticipates these initiatives will further improve profitability from the fiscal year ending March 2026.

To enhance financial performance and achieve sustainable growth, the Company remains focused on serving consumers with more differentiated products while also delivering a positive impact for society and the environment. Concurrently, a transformation is underway to turn the Company into an agile, entrepreneurial organization, through accelerated digital transformation and the building of an inclusive culture that can drive innovation and seeks new avenues for growth.

The Company is beginning to see the results of its efforts to strengthen its business foundation, and its path to long-term growth remains unchanged. The Company will further enhance the value that it provides to stakeholders and, in turn, realize its purpose of making better homes a reality for everyone, everywhere.

Reflecting the above business environment and management strategy, the Company forecasts the following for the fiscal year ending March 31, 2026: Revenue of 1,540.0 billion yen (up 2.3% year-on-year), core earnings of 35.0 billion yen (up 11.7% year-on-year), operating profit of 30.0 billion yen (up 1.1% year-on-year), profit before tax from continuing operations of 21.0 billion yen (up 4.2% year-on-year), and profit for the year attributable to owners of the parent of 8.0 billion yen (4.0 times year-on-year), projecting an increase in both revenue and profit.

Based on the policy of consistent and stable shareholder returns, the Company plans to pay an annual dividend of 90 yen per share, consisting of interim and year-end dividends of 45 yen each for the fiscal year ending March 31, 2026, the same as in the previous fiscal year.

The above forecasts for the fiscal year ending March 31, 2026, are based on the information available to the Company as of the date of publication. Actual results may differ from the forecasts above due to various factors.

The trends of key indicators regarding financial conditions are as follows.

(Notes)

1. All figures are calculated based on consolidated financial figures. Each indicator is calculated as follows.

   Net interest-bearing debt : Interest-bearing debt - Cash and cash equivalents

   EBITDA : Core earnings + Depreciation and amortization

2. Interest-bearing debt includes all liabilities booked in the Consolidated Statement of financial position on which interest is paid and convertible bond-type bonds with subscription rights to shares. Depreciation and amortization used in the calculation of EBITDA do not include amounts related to Permasteelisa S.p.A. and its subsidiaries, and to LIXIL VIVA Corporation, which are classified as discontinued operations.

1. Basic approach to the selection of accounting standards

   The Group has adopted IFRS for preparing its consolidated financial statements to improve the international comparability of its financial statements in the capital markets and enhance the level of management within its group.

   3. Consolidated Financial Statements
   (1) Consolidated Statement of Financial Position
   (Unit: Millions of yen)
   	As of March 31, 2024		End of this year (As of March 31, 2025)
   ASSETS
   Current assets:
   Cash and cash equivalents	Y	124,485	Y	123,527
   Trade and other receivables		300,179		283,914
   Inventories		248,300		243,926
   Contract assets		16,816		17,861
   Income taxes receivable		5,982		1,691
   Other financial assets		13,025		7,176
   Other current assets		21,991		22,993
   Subtotal		730,778		701,088
   Assets held for sale		-		153
   Total current assets		730,778		701,241
   Non-current assets:
   Property, plant and equipment		378,056		365,552
   Right-of-use assets		60,619		63,530
   Goodwill and other intangible assets		561,473		545,561
   Investment property		2,084		2,406
   Investments accounted for using the equity method		7,709		7,561
   Other financial assets		59,698		60,994
   Deferred tax assets		83,284		80,145
   Other non-current assets		2,894		3,814
   Total non-current assets	1,155,817		1,129,563
   Total assets	Y	1,886,595	Y	1,830,804

   (Unit: Millions of yen)
   	As of March 31, 2024		End of this year (As of March 31, 2025)
   LIABILITIES AND EQUITY
   LIABILITIES
   Current liabilities:
   Trade and other payables	Y	248,800	Y	246,802
   Bonds and borrowings		208,893		190,337
   Lease liabilities		19,468		19,786
   Contract liabilities		8,982		9,850
   Income taxes payable		9,454		8,129
   Other financial liabilities		4,334		4,437
   Provisions		2,559		1,156
   Other current liabilities		92,102		91,286
   Total current liabilities		594,592		571,783
   Non-current liabilities:
   Bonds and borrowings		406,523		402,209
   Lease liabilities		42,308		45,468
   Other financial liabilities		28,928		29,581
   Net defined benefit liabilities		78,950		72,975
   Provisions		6,578		6,595
   Deferred tax liabilities		73,716		75,628
   Other non-current liabilities		10,662		6,495
   Total non-current liabilities	647,665		638,951
   Total liabilities		1,242,257		1,210,734
   EQUITY
   Share capital		68,530		68,654
   Capital surplus		221,632		221,587
   Treasury shares		-126		-138
   Other components of equity		125,578		121,146
   Retained earnings		226,897		206,637
   Equity attributable to owners of the parent		642,511		617,886
   Non-controlling interests		1,827		2,184
   Total equity	644,338		620,070
   Total liabilities and equity	Y	1,886,595	Y	1,830,804

   1. Consolidated Statements of Profit or Loss and Comprehensive Income Consolidated Statement of Profit or Loss

      (Unit: Millions of yen)

      	FY ended March 31, 2024		FY ended March 31, 2025
      Continuing operations
      Revenue	Y	1,483,224	Y	1,504,697
      Cost of sales		-1,010,512		-1,006,584
      GROSS PROFIT		472,712		498,113
      Selling, general and administrative expenses		-449,550		-466,776
      Other income		13,813		11,012
      Other expenses		-20,624		-12,662
      OPERATING PROFIT		16,351		29,687
      Finance income		3,661		3,996
      Finance costs		-13,195		-13,860
      Share of profit (loss) of associates accounted for using the equity method		-153		327
      PROFIT BEFORE TAX FROM CONTINUING OPERATIONS		6,664		20,150
      Income tax expenses		-16,119		-17,882
      PROFIT (LOSS) FOR THE YEAR FROM CONTINUING OPERATIONS		-9,455		2,268
      Discontinued operations
      LOSS FOR THE YEAR FROM DISCONTINUED OPERATIONS		-5,159		-50
      PROFIT (LOSS) FOR THE YEAR		-14,614		2,218
      Profit (loss) for the year attributable to:
      Owners of the parent
      Continuing operations		-8,749		2,051
      Discontinued operations		-5,159		-50
      Total		-13,908		2,001
      Non-controlling interests		-706		217
      PROFIT (LOSS) FOR THE YEAR	Y	-14,614	Y	2,218

      (Unit: Yen)
      	FY ended March 31, 2024		FY ended March 31, 2025
      Earnings (loss) per share
      Basic (yen per share)
      Continuing operations		-30.46		7.14
      Discontinued operations		-17.97		-0.17
      Total		-48.43		6.97
      Diluted (yen per share)
      Continuing operations		-30.46		7.14
      Discontinued operations		-17.97		-0.17
      Total	-48.43		6.97
      Consolidated Statement of Comprehensive Income
      (Unit: Millions of yen)
      	FY ended March 31, 2024		FY ended March 31, 2025
      PROFIT (LOSS) FOR THE YEAR	Y	-14,614	Y	2,218
      OTHER COMPREHENSIVE INCOME
      Items that will not be reclassified subsequently to profit or loss
      Net fair value gain (loss) on equity instruments measured through other comprehensive income		6,756		-446
      Remeasurements of defined benefit pension plans		-386		3,586
      Total of items that will not be reclassified to profit or loss		6,370		3,140
      Items that may be reclassified subsequently to profit or loss
      Exchange differences on translation of foreign operations		50,654		-2,998
      Net fair value gain (loss) on hedging instruments entered into for cash flow hedges		-79		-885
      Share of other comprehensive income of associates accounted for using the equity method		-2		-5
      Total items that may be reclassified subsequently to profit or loss	50,573		-3,888
      Other comprehensive income, net of tax	56,943		-748
      TOTAL COMPREHENSIVE INCOME		42,329		1,470
      Profit for the year attributable to:
      Owners of the parent		42,999		1,157
      Non-controlling interests		-670		313
      TOTAL COMPREHENSIVE INCOME	Y	42,329	Y	1,470

   2. Consolidated Statement of Changes in Equity

      (Unit: Millions of yen)

      	Equity attributable to owners of the parent
      	Share capital	Capital surplus	Treasury shares	Other components of equity
      				Net fair value gain (loss) on equity instruments measured through other comprehensive income	Remeasurements of defined benefit pension plans	Exchange differences on translation of foreign operations	Net fair value gain (loss) on hedging instruments entered into for cash flow hedges
      BALANCE AS OF APRIL 1, 2023	68,418	221,812	-113	9,839	-	56,772	1,522
      Profit (loss)	-	-	-	-	-	-	-
      Other comprehensive income	-	-	-	6,756	-386	50,618	-79
      Total comprehensive income	-	-	-	6,756	-386	50,618	-79
      Purchase of treasury shares	-	-	-15	-	-	-	-
      Disposal of treasury shares	-	-0	2	-	-	-	-
      Share-based payment transactions	112	-30	-	-	-	-	-
      Dividends	-	-	-	-	-	-	-
      Changes in interests in subsidiaries that do not result in the Group losing control over the subsidiaries	-	-150	-	-	-	-	-
      Transfers from other components of equity to retained earnings	-	-	-	148	386	-	-
      Total transactions with owners	112	-180	-13	148	386	-	-
      BALANCE AS OF MARCH 31, 2024	68,530	221,632	-126	16,743	-	107,390	1,443
      Profit (loss)	-	-	-	-	-	-	-
      Other comprehensive income	-	-	-	-446	3,586	-3,094	-885
      Total comprehensive income	-	-	-	-446	3,586	-3,094	-885
      Purchase of treasury shares	-	-	-13	-	-	-	-
      Disposal of treasury shares	-	-0	1	-	-	-	-
      Share-based payment transactions	124	-1	-	-	-	-	-
      Dividends	-	-	-	-	-	-	-
      Changes in interests in subsidiaries that do not result in the Group losing control over the subsidiaries	-	-44	-	-	-	-	-
      Transfers from other components of equity to retained earnings	-	-	-	-2	-3,586	-	-
      Total transactions with owners	124	-45	-12	-2	-3,586	-	-
      BALANCE AS OF MARCH 31, 2025	68,654	221,587	-138	16,295	-	104,296	558

      (Unit: Millions of yen)

      	Equity attributable to owners of the parent				Non-controlling interests	Total equity
      	Other components of equity		Retained earnings (losses)	Total
      	Other	Total
      BALANCE AS OF APRIL 1, 2023	21	68,154	267,162	625,433	2,287	627,720
      Profit (loss)	-	-	-13,908	-13,908	-706	-14,614
      Other comprehensive income	-2	56,907	-	56,907	36	56,943
      Total comprehensive income	-2	56,907	-13,908	42,999	-670	42,329
      Purchase of treasury shares	-	-	-	-15	-	-15
      Disposal of treasury shares	-	-	-	2	-	2
      Share-based payment transactions	-17	-17	17	82	-	82
      Dividends	-	-	-25,840	-25,840	-	-25,840
      Changes in interests in subsidiaries that do not result in the Group losing control over the subsidiaries	-	-	-	-150	210	60
      Transfers from other components of equity to retained earnings	-	534	-534	-	-	-
      Total transactions with owners	-17	517	-26,357	-25,921	210	-25,711
      BALANCE AS OF MARCH 31, 2024	2	125,578	226,897	642,511	1,827	644,338
      Profit (loss)	-	-	2,001	2,001	217	2,218
      Other comprehensive income	-5	-844	-	-844	96	-748
      Total comprehensive income	-5	-844	2,001	1,157	313	1,470
      Purchase of treasury shares	-	-	-	-13	-	-13
      Disposal of treasury shares	-	-	-	1	-	1
      Share-based payment transactions	-	-	-	123	-	123
      Dividends	-	-	-25,849	-25,849	-	-25,849
      Changes in interests in subsidiaries that do not result in the Group losing control over the subsidiaries	-	-	-	-44	44	-
      Transfers from other components of equity to retained earnings	-	-3,588	3,588	-	-	-
      Total transactions with owners	-	-3,588	-22,261	-25,782	44	-25,738
      BALANCE AS OF MARCH 31, 2025	-3	121,146	206,637	617,886	2,184	620,070

      (4) Consolidated Statement of Cash Flows
      (Unit: Millions of yen)
      	FY ended March 31, 2024		FY ended March 31, 2025
      OPERATING ACTIVITIES:
      Profit before tax from continuing operations	Y	6,664	Y	20,150
      Loss before tax from discontinued operations		-7,416		-71
      Profit (Loss) before tax		-752		20,079
      Depreciation and amortization		81,330		83,193
      Impairment losses		4,575		3,450
      Loss recognized on the measurement to fair value less costs to sell the disposal group held for sale		1,097		-
      Loss recognized on the measurement to fair value, accounts receivable - other		6,939		-
      Interest and dividend income		-2,779		-2,959
      Interest expense		10,125		11,877
      Share of (profit) loss of associates accounted for using the equity method		153		-327
      Gain on disposal of the disposal group held for sale		-2,248		-
      Gain on sale of businesses		-		-1,990
      Losses (gains) on disposal of property, plant and equipment		1,506		727
      Losses (gains) on disposal of investment property		-6,417		26
      Decrease (increase) in trade and other receivables		-1,026		15,833
      Decrease (increase) in inventories		33,292		2,835
      (Decrease) increase in trade and other payables		-76,472		-2,119
      (Decrease) increase in net defined benefit liabilities		1,690		-5,732
      Other		11,816		-6,695
      Subtotal		62,829		118,198
      Interest received		1,576		1,784
      Dividends received		2,152		1,380
      Interest paid		-9,863		-11,289
      Income taxes paid		-8,704		-10,071
      Net cash generated by operating activities	Y	47,990	Y	100,002

      (Unit: Millions of yen)
      	FY ended March 31, 2024		FY ended March 31, 2025
      INVESTING ACTIVITIES:
      Decrease (increase) in time deposits	Y	-3,564	Y	412
      Purchase of property, plant and equipment		-37,870		-34,359
      Proceeds from disposal of property, plant and equipment		219		712
      Purchase of intangible assets		-15,003		-10,811
      Proceeds from disposal of investment property		7,176		108
      Decrease (increase) in short-term loans receivable		5,226		5,294
      Purchase of investments		-79,286		-104,034
      Proceeds from sale and redemption of investments		81,737		104,025
      Payments for absorption-type company split		-		-2,857
      Payments for acquisition of subsidiaries		-		-52
      Proceeds from sale of businesses		-		13,075
      Proceeds from absorption-type company split		9,875		-
      Proceeds from sale of subsidiaries		2,112		-
      Other		-498		360
      Net cash used in investing activities	Y	-29,876	Y	-28,127
      FINANCING ACTIVITIES:
      Dividends paid	Y	-25,840	Y	-25,849
      (Decrease) increase in short-term borrowings and commercial paper		22,443		-16,977
      Proceeds from long-term borrowings		140,100		43,596
      Repayment of long-term borrowings		-93,229		-86,940
      Proceeds from issuance of bonds		-		35,835
      Redemption of bonds		-25,000		-
      Lease liabilities paid		-22,128		-22,124
      Other		-19		-11
      Net cash used in financing activities	Y	-3,673	Y	-72,470
      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	14,441		-595
      CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	106,677		124,485
      EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	3,367		-363
      CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	Y	124,485	Y	123,527

      (5) Notes related to Financial Statements

      (Notes related to Going Concern Assumptions)

      Not applicable.

      (Segment Information)

      1. Description of Reportable Segments

      The Group's reportable segments are those for which discrete financial information is available among the Group's constituent units and regular evaluation by the Board of Directors is performed in order to decide how resources are allocated and performance is assessed. The Group is managed based on two reportable segments consisting of the "Water Technology Business" and the "Housing Technology Business," with the performance of their respective business units reported to the Board of Executive Officers or Board of Directors. The "Water Technology Business" includes manufacturing and sales of sanitaryware, faucets, bathroom fixtures, system kitchen units, and other items. The "Housing Technology Business" includes manufacturing and sales of sashes, doors, shutters, wooden interior furnishing materials, curtain walls, and other items and provides services such as proposals for housing solutions and management of real estate.

      2. Methods of measurement for the amounts of revenue and profit or loss for each reportable segment

      The accounting policies of each reportable segment are consistent with those for the preparation of the consolidated financial statements. Profit or loss for reportable segments is presented on the basis of core earnings or losses. Intersegment revenue or transfers are determined based on market prices.

2. Information on the amounts of revenue, profit or loss, and other items for each reportable segment

For the FY ended March 31, 2024 (April 1, 2023 through March 31, 2024)

(Unit: Millions of yen)

For the FY ended March 31, 2025 (April 1, 2024 through March 31, 2025)

(Unit: Millions of yen)

(Notes)

1. Segment profit is core earnings which are defined as revenue less cost of sales and selling, general and administrative expenses.

2. A process of Segment profit reconciliations takes place for Company expenses that are not allocated to reportable segments. These expenses primarily represent costs associated with administrative departments, including Human Resources, General Affairs, Finance and other departments of the Company.

For the FY ended March 31, 2025 (April 1, 2024 through March 31, 2025)

(Unit: Millions of yen)

(Notes)

1. Segment profit is core earnings which are defined as revenue less cost of sales and selling, general and administrative expenses.

2. A process of Segment profit reconciliations takes place for Company expenses that are not allocated to reportable segments. These expenses primarily represent costs associated with administrative departments, including Human Resources, General Affairs, Finance and other departments of the Company.