TOKAI (9729) investor relations material

Executive summary

• Consolidated net sales grew 6.8% year-over-year to ¥159,664 million, marking a fifth consecutive annual increase and a new record high.

• Operating profit rose 14.5% year-over-year to ¥9,382 million, also reaching a record high, with all profit lines exceeding initial plans.

• Profit attributable to owners of parent surged 28.3% year-over-year to ¥6,069 million.

• Comprehensive income increased 72.1% year-over-year to ¥7,009 million.

• Capital efficiency improved, with ROE rising to 7.2% (up 1.7pp YoY) following a share buyback and cancellation.

Financial highlights

• Net sales: ¥159,664mn (+6.8% YoY, +1.1% vs. plan); operating profit: ¥9,382mn (+14.5% YoY, +14.2% vs. plan); ordinary profit: ¥10,098mn (+14.4% YoY); profit attributable to owners: ¥6,069mn (+28.3% YoY).

• Gross profit improved to ¥38,779 million from ¥35,439 million year-over-year.

• Basic earnings per share rose to ¥185.61 from ¥138.97 year-over-year.

• Cash flows from operating activities hit a new record high at ¥11,442 million.

• Cash and cash equivalents at period end: ¥23,417mn.

Outlook and guidance

• FY3/27 net sales forecast at ¥165,400mn (+3.6% YoY); operating profit expected to decline 4.2% due to fee revisions and cost pressures.

• Profit attributable to owners projected to rise 0.8% YoY, reflecting absence of impairment losses.

• Basic earnings per share forecasted at ¥198.08 for the next fiscal year.

• Annual dividend per share forecasted to increase to ¥80.00.

• Mid-term sales goal set at ¥170bn.