Okura Industrial : Consolidated Financial Results for the Nine Months Ended September 30, 2025

October 30, 2025

Company name: Okura Industrial Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange Code number: 4221

URL: https://www.okr-ind.co.jp/

Representative: Eiji Fukuda, Operating Officer, President, Representative Director

Contact: Masanori Kimura, Operating Officer, General Manager, Finance and Business Administration Department, Corporate Center

Phone: +81-877-56-1111

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on financial results: Not available Schedule of financial results briefing session: Not scheduled

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Nine Months Ended September 30, 2025 (January 1, 2025 - September 30, 2025)

   1. Consolidated Operating Results (% indicates changes from the previous corresponding period.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      September 30, 2025	64,233	8.2	4,685	47.3	4,784	37.7	3,482	(0.8)
      September 30, 2024	59,339	1.1	3,181	(13.9)	3,473	(15.4)	3,510	6.3

      (Note) Comprehensive income: Nine months ended September 30, 2025: ¥3,633 million [(40.4)%]

      Nine months ended September 30, 2024: ¥6,100 million [29.6%]

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      September 30, 2025	305.40	-
      September 30, 2024	291.05	-

   2. Consolidated Financial Position

   	Total assets	Net assets	Equity ratio
   	Million yen	Million yen	%
   As of September 30, 2025	100,930	62,199	61.6
   As of December 31, 2024	103,014	62,075	60.2

   (Reference) Equity: As of September 30, 2025: ¥62,165 million

   As of December 31, 2024: ¥62,044 million

2. Dividends

   	Annual dividends
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended December 31, 2024	Yen	Yen	Yen	Yen	Yen
   	-	55.00	-	105.00	160.00
   Fiscal year ending December 31, 2025	-	95.00	-
   Fiscal year ending December 31, 2025 (Forecast)				100.00	195.00

   (Notes) 1. Revision to the forecast for dividends announced most recently: None

   2. Breakdown of 2nd quarter-end dividend for the fiscal year ending December 31, 2025: Ordinary dividend of

   83.00 yen and special dividend of 12.00 yen

   Breakdown of year-end dividend for the fiscal year ending December 31, 2025 (Forecast): Ordinary dividend of 87.00 yen and special dividend of 13.00 yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2025 (January 1, 2025 -

(% indicates changes from the previous corresponding period.)

(Note) Revision to the financial results forecast announced most recently: None

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

   Newly included: 1 company (Company name) Okura BM Works Co., Ltd.

2. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None

3. Changes in accounting policies, changes in accounting estimates and retrospective restatement

   1. Changes in accounting policies due to the revision of accounting standards: None

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

   3. Changes in accounting estimates: None

   4. Retrospective restatement: None

4. Total number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares):

      September 30, 2025:	12,414,870 shares
      December 31, 2024:	12,414,870 shares

   2. Total number of treasury shares at the end of the period:

      September 30, 2025:	1,118,363 shares
      December 31, 2024:	783,185 shares

   3. Average number of shares during the period:

• Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None

• Explanation of the proper use of financial results forecast and other notes

Forward-looking statements such as financial results forecast in this document are based on information currently available and certain assumptions that Company regards as reasonable. Actual results may significantly differ from such estimates due to various factors.

For details on the earnings forecasts of the Company, please see "Qualitative Information on Quarterly Financial Results" on page 2 of the attachments.

Table of Contents - Attachments

1. Qualitative Information on Quarterly Financial Results 2

   1. Explanation of Operating Results 2

   2. Explanation of Financial Position 3

   3. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information 3

2. Quarterly Consolidated Financial Statements and Principal Notes 4

   1. Quarterly Consolidated Balance Sheets 4

   2. Quarterly Consolidated Statements of Income and Comprehensive Income 6

   3. Notes to Quarterly Consolidated Financial Statements 8

(Notes on going concern assumption) 8

(Notes in the case of significant changes in shareholders' equity) 8

(Segment information, etc.) 8

(Notes to statements of cash flows) 9

1. Qualitative Information on Quarterly Financial Results

   1. Explanation of Operating Results

      During the nine months ended September 30, 2025, the Japanese economy remained generally flat mainly due to labor shortages and rising prices, despite solid inbound demand continuing from the six months ended June 30, 2025. Although there are expectations for improvements in the employment and income situation and various government policies, the economic outlook remains uncertain as it is still difficult to foresee the future on account of such concerns as a slowdown in consumer confidence resulting from continued rising prices and trends in the

      U.S. administration's tariff policy.

      Under these circumstances, the Group posted net sales of 64,233 million yen (up 8.2% year on year) for the nine months ended September 30, 2025, mainly due to an increase in orders received for optical films used in high-end displays for large LCD televisions in the New Materials Division.

      In terms of profit, operations at new plants, which began last year, in the New Materials Division have become stabilized. This and other factors including our efforts for productivity improvement and cost reduction resulted in operating profit of 4,685 million yen (up 47.3% year on year) and ordinary profit of 4,784 million yen (up 37.7% year on year). Profit attributable to owners of parent was 3,482 million yen (down 0.8% year on year) mainly due to the recording of gains under extraordinary income in the previous year following the transfer of non-current assets and sale of investment securities.

      Operating results by segment are as follows. [Plastic Film]

      Sales volume of packaging films especially for food and daily necessities decreased due to a gradual decline in

      demand resulting from rising prices. Meanwhile, sales of environmental contributing products such as refill pouches remained robust on the back of a growing awareness of environmental conservation, and sales of industrial-use process films for optics usages remained strong. As a result, net sales amounted to 39,287 million yen (up 2.6% year on year). Operating profit was 4,259 million yen (up 32.8% year on year) due to contributory factors including selling price revisions and cost reduction caused mainly by productivity improvement.

      [New Materials]

      Net sales were 13,787 million yen (up 32.7% year on year) due to brisk orders received for optical films used in high-end displays for large LCD televisions for the six months ended June 30, 2025, although the sector entered a phase of inventory adjustments during the nine months ended September 30, 2025. Operations at new plants, which began last year, have become stabilized. This and other factors including the increase in net sales resulted in operating profit of 1,737 million yen (up 109.6% year on year).

      [Housing Materials]

      The sales volume in the particleboards business, one of the key businesses, remained at the same level as in the previous year as a result of sales expansion efforts, despite the severe market environment represented by the decreased number of housing starts. In addition, sales in the lumber processing business remained strong. This and other factors resulted in net sales of 9,789 million yen (up 5.3% year on year). Meanwhile, operating profit was 390 million yen (down 41.1% year on year) due in part to the occurrence of valuation losses on some inventories, despite the increase in net sales.

      [Other]

      The number of hotel stays due to inbound demand increased in the hotel business, while the sales volume of systems for dispensing pharmacies decreased in the information processing system development business. As a result, overall net sales of other businesses were 1,368 million yen (up 0.4% year on year). Operating profit amounted to 357 million yen (down 4.3% year on year) due in part to an increase in development costs resulting from the updating of systems for dispensing pharmacies in the information processing system development business.

   2. Explanation of Financial Position

      Total assets at the end of the third quarter of the fiscal year under review decreased by 2,084 million yen compared to the end of the previous fiscal year, to 100,930 million yen, mainly due to decreases in trade receivables of 3,678 million yen and cash and deposits of 1,146 million yen, despite increases in inventories of 1,794 million yen and property, plant and equipment of 1,200 million yen.

      On the other hand, liabilities decreased by 2,208 million yen compared to the end of the previous fiscal year, to 38,730 million yen, mainly due to decreases in trade payables of 971 million yen, income taxes payable of 897 million yen, and accounts payable - other of 732 million yen.

      Net assets increased by 124 million yen from the end of the previous fiscal year to 62,199 million yen, mainly due to increases in retained earnings of 1,188 million yen and valuation difference on available-for-sale securities of 170 million yen, despite a decrease in treasury shares of 1,219 million yen resulting from purchase of treasury shares.

      As a result of the above, the equity ratio increased by 1.4 percentage points from the end of the previous fiscal year to 61.6%.

   3. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information

   There have been no changes to the consolidated financial results forecast announced on February 14, 2025.

2. Quarterly Consolidated Financial Statements and Principal Notes

1. Quarterly Consolidated Balance Sheets

   (Million yen)

   As of December 31, 2024		As of September 30, 2025
   Assets
   Current assets
   Cash and deposits	8,949	7,802
   Notes and accounts receivable - trade	21,968	19,352
   Electronically recorded monetary claims - operating	9,182	8,119
   Merchandise and finished goods	5,786	7,221
   Work in process	1,357	1,438
   Raw materials and supplies	5,280	5,560
   Real estate for sale	282	280
   Other	2,739	1,753
   Total current assets	55,545	51,528
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	15,737	15,362
   Machinery, equipment and vehicles, net	9,480	9,347
   Land	5,760	5,764
   Construction in progress	1,737	3,412
   Other, net	562	591
   Total property, plant and equipment	33,278	34,479
   Intangible assets	1,420	1,825
   Investments and other assets
   Investment securities	10,341	10,694
   Long-term loans receivable	1,177	1,108
   Deferred tax assets	94	129
   Other	1,155	1,164
   Total investments and other assets	12,769	13,097
   Total non-current assets	47,469	49,401
   Total assets	103,014	100,930

   (Million yen)

   As of December 31, 2024		As of September 30, 2025
   Liabilities
   Current liabilities
   Accounts payable - trade	18,873	17,978
   Electronically recorded obligations - operating	2,087	2,010
   Short-term borrowings	4,471	4,470
   Current portion of long-term borrowings	389	389
   Accounts payable - other	2,010	1,278
   Income taxes payable	1,531	633
   Electronically recorded obligations - facilities	1,378	1,326
   Provision for bonuses	-	604
   Other	4,108	4,046
   Total current liabilities	34,851	32,740
   Non-current liabilities
   Long-term borrowings	1,259	945
   Deferred tax liabilities	286	540
   Retirement benefit liability	3,718	3,724
   Other	823	780
   Total non-current liabilities	6,086	5,990
   Total liabilities	40,938	38,730
   Net assets
   Shareholders' equity
   Share capital	8,619	8,619
   Capital surplus	9,113	9,118
   Retained earnings	40,759	41,947
   Treasury shares	(1,824)	(3,044)
   Total shareholders' equity	56,667	56,641
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	5,017	5,187
   Foreign currency translation adjustment	269	251
   Remeasurements of defined benefit plans	89	84
   Total accumulated other comprehensive income	5,376	5,524
   Non-controlling interests	31	34
   Total net assets	62,075	62,199
   Total liabilities and net assets	103,014	100,930

2. Quarterly Consolidated Statements of Income and Comprehensive Income

   Quarterly Consolidated Statements of Income Nine Months Ended September 30

   (Million yen)

   For the nine months ended September 30, 2024		For the nine months ended September 30, 2025
   Net sales	59,339	64,233
   Cost of sales	48,364	51,202
   Gross profit	10,975	13,030
   Selling, general and administrative expenses
   Sales commission	69	76
   Transportation and storage costs	2,068	2,112
   Salaries	1,654	1,767
   Bonuses	295	385
   Provision for bonuses	172	192
   Remuneration for directors (and other officers)	263	259
   Retirement benefit expenses	105	101
   Depreciation	175	174
   Research and development expenses	1,082	1,156
   Other	1,905	2,117
   Total selling, general and administrative expenses	7,793	8,345
   Operating profit	3,181	4,685
   Non-operating income
   Interest income	36	71
   Dividend income	267	248
   Miscellaneous income	73	57
   Total non-operating income	377	377
   Non-operating expenses
   Interest expenses	20	43
   Foreign exchange losses	3	91
   Commission expenses	45	120
   Miscellaneous losses	14	22
   Total non-operating expenses	85	278
   Ordinary profit	3,473	4,784
   Extraordinary income
   Gain on sale of non-current assets	879	0
   Gain on sale of investment securities	793	-
   Total extraordinary income	1,672	0
   Extraordinary losses
   Loss on sale and retirement of non-current assets	117	61
   Plant relocation expense	130	-
   Total extraordinary losses	248	61
   Profit before income taxes	4,898	4,723
   Income taxes - current	1,767	1,186
   Income taxes - deferred	(382)	50
   Total income taxes	1,385	1,236
   Profit	3,513	3,486
   Profit attributable to non-controlling interests	2	3
   Profit attributable to owners of parent	3,510	3,482

   Quarterly Consolidated Statements of Comprehensive Income Nine Months Ended September 30

   (Million yen)

   For the nine months ended September 30, 2024		For the nine months ended September 30, 2025
   Profit	3,513	3,486
   Other comprehensive income
   Valuation difference on available-for-sale securities	2,572	170
   Foreign currency translation adjustment	10	(19)
   Remeasurements of defined benefit plans, net of tax	3	(5)
   Total other comprehensive income	2,586	146
   Comprehensive income	6,100	3,633
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	6,096	3,630
   Comprehensive income attributable to non-controlling interests	3	2

3. Notes to Quarterly Consolidated Financial Statements

(Notes on going concern assumption) Not applicable.

(Notes in the case of significant changes in shareholders' equity)

The Company resolved, at its Board of Directors meeting held on June 21, 2024, to acquire treasury shares pursuant to the provisions of Article 156 of the Companies Act as applied mutatis mutandis under the provisions of Article 165, Paragraph 3 of the said Act., and reacquired its own 338,500 shares during the nine months ended September 30, 2025. As a result, the amount of treasury shares increased by 1,227 million yen during the nine months ended September 30, 2025 to 3,044 million yen at the end of the third quarter of the fiscal year under review.

(Segment information, etc.)

1. For the nine months ended September 30, 2024 (January 1, 2024 to September 30, 2024)

   Information on the amount of net sales and profit or loss by reportable segment

   (Million yen)

   	Reportable segment				Other (Note 1)	Total	Adjustment (Note 2)	Amount recorded in quarterly consolidated statements of income (Note 3)
   	Plastic Film	New Materials	Housing Materials	Total
   Net sales
   Net sales to outside customers	38,291	10,388	9,297	57,977	1,362	59,339	-	59,339
   Inter-segment net sales or transfers	2	0	19	22	595	618	(618)	-
   Total	38,293	10,388	9,317	58,000	1,958	59,958	(618)	59,339
   Segment profit	3,208	828	662	4,698	373	5,072	(1,890)	3,181

   (Notes) 1. The "Other" category is a business segment that is not included in the reportable segments and includes the hotel business, information processing system development business, and real estate leasing business.

   1. The segment profit adjustment of negative 1,890 million yen includes negative 6 million yen in eliminations of inter-segment transactions and negative 1,884 million yen in corporate expenses that are not allocated to each reportable segment. Corporate expenses mainly consist of general and administrative expenses that do not belong to any reportable segment.

   2. Segment profit is adjusted with operating profit in the quarterly consolidated statements of income.

2. For the nine months ended September 30, 2025 (January 1, 2025 to September 30, 2025)

   Information on the amount of net sales and profit or loss by reportable segment

   (Million yen)

   	Reportable segment				Other (Note 1)	Total	Adjustment (Note 2)	Amount recorded in quarterly consolidated statements of income (Note 3)
   	Plastic Film	New Materials	Housing Materials	Total
   Net sales
   Net sales to outside customers	39,287	13,787	9,789	62,865	1,368	64,233	-	64,233
   Inter-segment net sales or transfers	4	-	94	99	627	726	(726)	-
   Total	39,292	13,787	9,883	62,964	1,995	64,959	(726)	64,233
   Segment profit	4,259	1,737	390	6,387	357	6,744	(2,059)	4,685

   (Notes) 1. The "Other" category is a business segment that is not included in the reportable segments and includes the hotel business, information processing system development business, and real estate leasing business.

   1. The segment profit adjustment of negative 2,059 million yen includes 12 million yen in eliminations of inter-segment transactions and negative 2,071 million yen in corporate expenses that are not allocated to each reportable segment. Corporate expenses mainly consist of general and administrative expenses that do not belong to any reportable segment.

   2. Segment profit is adjusted with operating profit in the quarterly consolidated statements of income.

(Notes to statements of cash flows)

Quarterly consolidated statements of cash flows for the nine months ended September 30, 2025 have not been prepared. Depreciation (including amortization related to intangible assets) for the nine months ended September 30, 2024 and 2025 is as follows: