Kokuyo : Summary of Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2026 （6,478KB）

‌Summary of Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2026 May 8, 2026 KOKUYO Co., Ltd.

‌Contents

1. First Quarter FY2026 Results
2. Full-Year FY2026 Targets
3. Progress in Fourth Medium-Term Plan
4. Overview by Business Segment

* The business segments are as follows:

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

Note:

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

First Quarter FY2026 Results

❏ Net sales and operating income increased YoY, with strong performance in the Japanese furniture business and the overseas stationery business

❏ In business supply distribution, net sales increased YoY, although the increase was less than expected because of a surge in competition related to a transitory development within the industry.

FY2026 Targets: H1 and Full-Year

❏ Consolidated and segment forecasts remain unchanged from what we announced on February 14, 2026.

❏ Profitability will improve in H2 when we revise sales prices in the furniture and stationery businesses, as

announced on April 17 (The full-year targets take this into account).

❏ The situation in the Middle East has potential ramifications for procurement and distribution costs. We are currently investigating what the specific effects will be, which is why we have not yet incorporated the impacts into the full-year targets or sales prices. We will do so in Q2.

Progress in Fourth Medium-Term Plan

❏ We are on track to closing by the end of the year the deal to acquire TLG.

❏ Of the ¥35 bn buyback budget set out in the fourth medium-term plan, we will spend the remaining ¥15 bn (having spent ¥20 bn last year), thereby improving capital efficiency.

❏ We have introduced performance-linked stock compensation for corporate officers to incentivize them to

keep building up the company's value and to align their interests with those of shareholders.

‌First Quarter FY2026 Results

‌First Quarter FY2026 Results

Net sales, EBITDA, and operating income were generally in line with expectations.

Net income was high enough to cancel out any relative decline from the spike in the comparative period, which was the result of gain on sale of cross-held shares.

	Q1			Full-year
	FY2025 result	FY2026 result	YoY change (%, pt)	Revised target
Net sales	99,484	108,099	+8.7%	390,000
Gross profit	42,430	45,329	+6.8%	160,300
(ratio)	42.7%	41.9%	-0.7pt	41.1%
EBITDA	15,489	16,135	+4.2%	37,700
(ratio)	15.6%	14.9%	-0.6pt	9.7%
Operating income	13,484	13,848	+2.7%	27,000
(ratio)	13.6%	12.8%	-0.7pt	6.9%
Net income attributable to owners of parent	10,012	10,091	+0.8%	20,300
(ratio)	10.1%	9.3%	-0.7pt	5.2%
Overseas sales as percentage of total sales	9%	10%	-	13%
ROE	-	-	-	>8%

(Millions of yen)

‌First Quarter FY2026 Results: Contributors to YoY Change in Net Sales

In Japan, the biggest growth contributors were the Japanese furniture business and business supply distribution.

Overseas, growth came from a new business combination in the furniture business and from strong sales

in the stationery business.

Japan: +6,429 Overseas: +2,434 (Millions of yen)

Jan-Mar FY2025 result

Other

Foreign exchange

Reconciliatio Jan-Mar FY2026

n

result

‌First Quarter FY2026 Results: Contributors to YoY Change in Operating Income

In Japan, the growth was driven by the furniture business, which performed in line with expectations. Overseas, the growth came from strong performance in the stationery business.

Japan: +87 Overseas: +386 (Millions of yen)

Jan-Mar FY2025 result

Other Foreign

exchange

Reconciliation Jan-Mar FY2026

result

‌First Quarter FY2026 Results: Contributors to YoY Change in Operating Income

Gross profit increased with higher net sales from business operations.

We used strategic budget allocations (including in personnel) to drive our medium-and long-term

strategies.

Gross profit: +2,899 SG&A: -2,535 (Millions of yen)

Impact of major sale in business supply distribution

Hiring more staff, across-board pay raises

Jan-Mar FY2025 result

Revenue growth

Profitability improvement

Personnel expenses

Activity expenses

Capital expenditures

IT system expenditures

Logistics costs

Other

Jan-Mar FY2026 result

‌Cash Flow Performance

Cash flows from operating activities had a negative net change of ¥2.0 billion YoY. One factor was measures to comply with the Proper Transactions Act.

Cash flows from investing activities had a negative net change of ¥4.8 billion YoY. This was relative to the differential from the sale of cross-held shares in the comparative period. It also reflects higher capital expenditure. (Millions of yen)

	Q1
	FY2025 result	FY2026 result	YoY change	Key factors
Cash flows from operating activities	-7,898	-9,955	-2,057	Decrease in notes and accounts payable-trade because of, among other things, measures to comply with Proper Transactions Act Decrease in income taxes paid
Cash flows from investing activities	386	-4,420	-4,806	Higher capital expenditure Differential cash flow created by sale of cross-held shares
Free cash flow	-7,512	-14,375	-6,863
Cash flows from financing activities	-4,536	-5,448	-912	Higher dividend payment
Effect of exchange rate changes on cash and cash equivalents	-693	200	893
End balance of cash and cash equivalents	119,338	90,983	-28,355

‌Balance Sheet Performance

Cash and cash equivalents decreased with negative free cash flow and negative cash flow from financing activities.

(Millions of yen)

	FY2025 end	End of March 2026	YoY change		FY2025 end	End of March 2026	YoY change
Cash and cash equivalents	110,606	90,983	-19,623	Notes and accounts payable-trade	58,334	48,021	-10,313
Notes and accounts receivable and contract assets	82,116	95,420	13,304	Interest-bearing liabilities	3,471	3,984	513
				Other liabilities	37,784	39,064	1,280
Inventory assets	43,346	45,003	1,657
				Total liabilities	99,591	91,070	-8,520
Other current assets	6,818	6,732	-86
				Owned capital	251,678	257,361	5,683
Property, plant and equipment	65,572	66,544	972
				Non-controlling interests	3,778	3,691	-87
Intangible assets	15,082	15,016	-66
Investment securities	18,022	18,690	668	Net assets	255,457	261,053	5,596
Other fixed assets	13,482	13,734	252
Total assets	355,048	352,123	-2,922	Equity ratio	70.9%	73.1%	2.2pt

‌Full-Year FY2026 Targets

‌Full-Year FY2026 Targets

Full-year targets remain unchanged. To achieve these targets, we will improve profitability by, among other things, revising sales prices while monitoring developments in the external business environment.

	Full-year
	FY2025 result	Target for 2026	YoY change	% YoY change
Net sales	359,876	390,000	+30,124	+8.4%
Gross profit	144,469	160,300	+15,831	+11.0%
(ratio)	40.1%	41.1%	-	+1.0pt
EBITDA	34,886	37,700	+2,814	+8.1%
(ratio)	9.7%	9.7%	-	-0.0pt
Operating income	26,247	27,000	+753	+2.9%
(ratio)	7.3%	6.9%	-	-0.4pt
Net income attributable to owners of parent	21,473	20,300	-1,173	-5.5%
(ratio)	6.0%	5.2%	-	-0.8pt
Overseas sales as percentage of total sales	13%	13%	-	-
ROE	8.4%	>8%	-	-

(Millions of yen)

‌Full-Year FY2026 Targets: Contributors to YoY Change in Operating Income

Profitability will improve in H2 when we revise sales prices in the furniture and stationery businesses (as announced on April 17).

Gross profit: +15,831 SG&A: -15,078 (Millions of yen)

The full-year targets take into

account the expected profitability boost from sales price revisions.

FY2025

result

Higher

revenue

Better

profitability

Personnel

expenses

Activity

expenses

Capital

expenditures

IT system

expenditures

Logistics

costs

Other

FY2026

target

‌Impact of Middle East Situation on Business Operations and Financial Performance

The situation in the Middle East has potential ramifications for procurement and distribution costs. We are currently investigating what the specific effects will be, which is why we have not yet incorporated the

impacts into the full-year targets or sales prices. We will do so in Q2.

Distribution

• We expect to face higher distribution costs, but the magnitude of the impact remains under investigation.

Likely impacts

Sales

• Sales will not be directly impacted, as we have no business locations or major clients in the Middle East.

• They may be indirectly impacted if there is a recession, for example.

Production, procurement

Furniture, stationery, interior retail

• We expect to face higher prices for, or a supply crunch in, materials

  derived from naphtha and solvents, but the magnitude of impact remains under investigation.

  Business supply distribution

• We expect to face higher procurement prices for, or shortages in, certain

products, but the magnitude of the impact remains under investigation.

‌Progress in Fourth Medium-Term Plan

‌Financial Targets in Fourth Medium-Term Plan

We have made good progress in the fourth medium-term plan. EBITDA has increased and our overseas businesses are steadily expanding.

We have allocated funds from our ¥70 billion Growth CapEx budget, creating stepping stones to future

growth.

		2024 result	2025 result	2026 target	2027 target	2030 target/projection
Financial KPIs	Net sales (growth rate)	¥338.8 bn (+2.8%)	¥359.8 bn (+6.2%)	¥390.0 bn (+8.4%)	¥430.0 bn (+8%/year)	≥¥500.0 bn
	Overseas sales as percentage of total sales	13%	13%	13%	20.0%	≥25%
	EBITDA EBITDA margin (%)	¥31.4 bn 9.3%	¥34.8 bn 9.7%	¥37.7 bn 9.7%	≥¥43.0 bn 10.0%	≥¥55.0 bn ≥11%
	ROE	8.5%	8.4%	>8.0%	≥9.0%	≥10%
Referential indicator	Operating income Operating income ratio	¥22.5 bn 6.6%	¥26.2 bn 7.3%	¥27.0 bn 6.9%	c. ¥30.0 bn c. 7%	≥¥38.0 bn ≥7.5%

‌Framework for Building Our Organization's Value

Use dynamic and aggressive growth-CapEx (PP&E investments, M&As) to maximize cash flows in the medium and long term. Strike optimal balance between cashflow generation, risk mitigation, and

sustainable growth to maximize overall value.

Boost capacity for

sustained business growth

• Continuous business improvements

• Innovation

• Sustainability

• Talent strategy

• Better M&A function

Reduce risks

• Governance

• Risk management

• Sustainability

• Financial and capital strategies

• IR

Growth rate

Capital costs

Grow profit over medium

1 and long term, maximize

overall value

Use strategies and

2 investments to create sustained EBITDA growth

EBITDA growth

• Grow sales, improve EBITDA margin

• Expand reach of business fields in Japan, expand overseas

• Mount strategic and disciplined M&A

Cashflow (≈EBITDA) generation

Key points

Overall value

3

Bolster strategic assets to reduce risks and boost capacity for sustained growth over the medium and long term

‌Welcoming TLG, a Leader in Writing Tools in Vietnam

In accordance with the press release on December 4, 2025, we are on track to closing the M&A deal by the end of the year.

About TLG

• Top Vietnamese stationery maker founded in 1981

• Head office located in Ho Chi Minh City

• Makes and sells writing tools, office goods, study goods, and painting tools

• Net sales: Approx ¥24.6 billion, EBITDA: Approx ¥3.4

  billion※ (FY25)

  Its competitive advantages

• Top share of Vietnamese stationery market

• Excellence in writing tool development and in production and procurement (production capacity: At least 1 billion units a year)

• Excellent channels across Vietnam and in ASEAN (e.g. Philippines, Indonesia)

• Owns plants in Ho Chi Minh City and Dong Nai

About TLG and its competitive advantages

Aligns with key strategies for stationery business

Strengthen presence in ASEAN Strengthen writing tools business

Accelerate global expansion

Use M&A to supercharge efforts to expand sales channels and writing tool business in ASEAN

※Calculated at 1 Vietnamese Dong = 0.0059 JPY 18

‌Shareholder Returns: Share Buybacks

In 2026, we will buy back up to ¥15 billion in shares to complete the ¥35 billion buyback program (as set out in the fourth medium-term plan) early.

Share buybacks in monetary value

(target)

2025

2026

(Millions of yen)

2022 2023

2024

¥35.0 billion buyback program to be

completed within the remaining two years of the fourth medium-term

plan

19

‌Performance-Linked Stock Compensation for Corporate Officers

We have introduced performance-linked stock compensation for corporate officers (includes those serving as directors) to incentivize them to keep building up the company's value and to align their interests with those of shareholders.

Short-term incentive

A once-a-year payment linked to annual performance in financial metrics (consolidated net sales in Japan, consolidated net sales overseas, consolidated operating income) and a nonfinancial metric.

Long-term incentive 1

A once-a-year payment of restricted stock intended to align the recipient's interests with that of shareholders

Long-term incentive 2

Performance-linked stock compensation.

Compensation varies between 0% and 200% depending on consolidated EBITDA, ROE, relative TSR. Comes with clawback clause.

Basic salary

A fixed monthly salary

Compensation structure

Payment composition in the case of the President and CEO

Monetary compensation

Share-based remuneration

Basic salary 35.3%	Short-term incentive 24.1%		Financial metrics: Consolidated EBITDA, consolidated ROE
			Stock metric: Relative TSR

Long-term incentive 1: 8.0% Long-term incentive 2: 32.6% 20

‌Overview by Business Segment

‌Furniture Business

In Q1, net sales and operating income increased. In Japan, the business performed well. Overseas, we made headway in India.

The business is generally on track to achieving the full-year targets.

(Millions of yen)

	Q1			Full-year
	FY2025 result	FY2026 result	YoY change (%, pt)	FY2026 target
Net sales	53,827	57,257	+6.4%	191,000
EBITDA	13,170	13,473	+2.3%	34,600
(ratio)	24.5%	23.5%	-0.9pt	18.1%
Operating income	12,543	12,721	+1.4%	30,700
(ratio)	23.3%	22.2%	-1.1pt	16.1%

22

‌Furniture Business

In Japan, office demand remains brisk and we are seeing a steady increase in contract volume.

Contract volume in H1 2026 (as of Mar-end) Contract volume in H2 2026 (as of Mar-end)

Renovation

Relocation

H2 of 2025

H2 of 2026

Relocation

+19.8%*

Renovation

+10.8%*

* Based on number

H1 of 2026

H1 of 2025

Relocation

+11.3%

Renovation

+0.5%

Relocation

Renovation

of contracts prior to sales price revision (the effect of such is not accounted for) 23

‌Business Supply Distribution

In Q1, net sales increased with steady progress in applying Benri Net.

Operating income decreased because of major sale and an increase in depreciation. However, EBTIDA

increased.

The business is running behind in achieving its full-year targets, partly because of needing to adapt to a change in the external business environment.

(Millions of yen)

	Q1			Full-year
	FY2025 result	FY2026 result	YoY change (%, pt)	FY2026 target
Net sales	26,535	29,912	+12.7%	118,300
EBITDA	1,723	1,748	+1.4%	6,600
(ratio)	6.5%	5.8%	-0.6pt	5.6%
Operating income	1,347	1,306	-3.0%	4,400
(ratio)	5.1%	4.4%	-0.7pt	3.7%

24

‌Business Supply Distribution

Kaunet's userbase continued to grow thanks to the success of our strategy.

Profitability underwent a temporary dip because of a major sale (not originally planned) we held to fend off

a surge in competition.

Number of customers on e-commerce

site "Kaunet" - Growth rate

We are using AI and big data to identify the optimal

settings for minimizing the impact.

2025 Q1 2026 Q1

"Kaunet・Benrinet"

Gross Merchandise Value※

2025 Q1

2026 Q1

※Total of distribution value from in-house commerce (Kaunet) and supplier-

linked commerce (excluding fee income from supplier-linked commerce) 25

※Including the impact of business transfer from Fujitsu Coworco Limited

‌Stationery Business

In Q1, net sales and operating income increased. The main factor was strong performance in China. The business is on course to achieving its full-year targets for Japan, China, and India.

(Millions of yen)

	Q1			Full-year
	FY2025 result	FY2026 result	YoY change (%, pt)	FY2026 target
Net sales	21,807	23,727	+8.8%	84,900
EBITDA	2,596	2,956	+13.9%	9,300
(ratio)	11.9%	12.5%	+0.6pt	11.0%
Operating income	2,124	2,509	+18.1%	7,100
(ratio)	9.7%	10.6%	+0.8pt	8.4%

26

Note: The targets for 2026 do not include the targets for TLG.

‌Interior Retail Business

In Q1, net sales increased with the success of sales/marketing efforts in offline stores and e-commerce. The business is generally on track to achieving the full-year targets.

(Millions of yen)

	Q1			Full-year
	FY2025 result	FY2026 result	YoY change (%, pt)	FY2026 target
Net sales	5,389	5,533	+2.7%	24,100
EBITDA	222	204	-8.3%	1,300
(ratio)	4.1%	3.7%	-0.4pt	5.4%
Operating income	153	138	-9.6%	1,050
(ratio)	2.8%	2.5%	-0.3pt	4.4%

‌Reference Materials

‌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

• 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

  Start offering building Start offering office management services

  renovation services (e.g. office team evaluation)

  Japan

  Planning phase

  Design finalization phase

  Office layout phase

  Office management

  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

  
  
  

  customers.

  Global product strategy

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

  Mother plant Sub-Plant Assembly site

  Localized production and assembly of

  components

Specialized for assembly, enabling

quick turnaround times

Capacity boosted with investment in production and logistics PP&E (Mie Plant and

Shibayama Plant)

Concentrated production and export of core components (Lamex Dongguan Plant)

Global products introduced to Japanese and overseas markets (Mie Plant)

• 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.

‌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)

Strategy to leverage spatial design excellence and

talent, global workstyle strategy

• Convert Benri Net into a purchasing platform and increase linkage with big-name ecommerce sites and trading companies

• We will extend platform coverage from large companies to all customers

• 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.

  New purchasing platform

  • Purchase management functions

  • Linked with wide array of suppliers

  Offer enlarged lineup

  (consisting of our products and those of trading companies) to fully capitalize on office

  supplies demand

  Obtain

  distribution fees from linked

  suppliers

  Asset-light business

  model that offers

  convenience and huge product lineup to wide range of customers

  Industry-specific trading companies

  Locally rooted suppliers

  Printing

Scientific instruments

Tools

Electrical appliances

MRO

Office goods, homeware / everyday goods

Company E

Company D

Company C

Company B

Company A

Suppliers,

e-commerce sites

Platform

Users

Technology used to

send personalized recommendations to target users

Company D

Company C

Company B

Company A

AI utilized

Supplier D

Supplier C

Supplier B

Supplier A

Personalized product recommendations

Supplies products

••

30

‌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

• We will penetrate new areas and grow existing overseas businesses to raise overseas sales share from 33% to 40% and reduce our dependency on certain areas.

• In India, we will create customer experiences for older students, supplementing our existing target segments, which are schoolchildren (stationery) and adults (painting equipment).

  
  
  

• In ASEAN, we will build sales partnerships for Campus-brand products and use social media and events to build brand recognition and trust, with the goal of getting Campus products into more than 1,000 stores by end of 2027.

• We will standardize global products (including writing instruments) across all areas and use insourcing to reduce COGS.

• We will transition to a more profitable structure by raising the share (of our overseas sales) of high-margin global products.

• To maintain or improve the competitiveness of the Campus brand, we will improve touchpoints with customers who research and verify experience value in learning styles

  67

Japan

33

Overseas

Overseas

Japan

Overseas sales share

Global product sales share Gross profit margin in global

Global products Other products

products

‌Interior Retail Business: Medium- to long-term strategy Strategy to Expand Customer Base

Use partnerships to expand into office sector Expand into residential sector with premium brands

• Kokuyo & Actus: We will strengthen our partnership in sales and product development, with a 2030 goal of a 7-fold increase (from 2024 level) in office-related sales.

• At Orgatec Tokyo 2024, Actus exhibited a booth that recreated a live office. We will start using this booth for sales promotion.

• In November, we opened an Actus exhibition space in our Tokyo

  showroom. We will use it to showcase our services to our corporate

  
  
  

  customers.

• Actus is exclusive importer of Poliform, a top Italian brand that is a world leader in interior design

• Goal for 2030 is to win deals in approx. 60 premium apartment

  complexes (the target segment)

• We will grow the residential business by bolstering design office accounts.

Actus booth

at Orgatec Tokyo 2024

Actus exhibition space at Kokuyo's

Tokyo showroom

2023:

Conceptual photograph of system delivered in Azabudai Hills Residence

‌First Quarter Performance

(Millions of yen)

	Q1 2022 result	Q1 2023 result	Q1 2024 result	Q1 2025 result	Q1 2026 result
Net sales	86,437	92,555	96,087	99,484	108,099
Gross profit	34,947	37,119	39,502	42,430	45,329
(ratio)	40.4%	40.1%	41.1%	42.7%	41.9%
SG&A expenses	24,904	26,300	27,710	28,945	31,480
(ratio)	28.8%	28.4%	28.8%	29.1%	29.1%
Operating income	10,043	10,818	11,791	13,484	13,848
(ratio)	11.6%	11.7%	12.3%	13.6%	12.8%
Ordinary income	10,688	11,222	12,565	13,029	14,517
(ratio)	12.4%	12.1%	13.1%	13.1%	13.4%
Net income attributable to owners of parent	7,681	7,679	11,978	10,012	10,091
(ratio)	8.9%	8.3%	12.5%	10.1%	9.3%
EBITDA	12,006	12,989	13,978	15,489	16,135

‌First Quarter Performance by Segment

(Millions of yen)

		Q1 2022 result	Q1 2023 result	Q1 2024 result	Q1 2025 result	Q1 2026 result
Furniture businesses	Net sales	43,201	47,981	49,515	53,827	57,257
	Operating income	8,386	9,585	10,467	12,543	12,721
	(ratio)	19.4%	20.0%	21.1%	23.3%	22.2%
Business supply distribution	Net sales	26,373	26,692	26,773	26,535	29,912
	Operating income	1,075	1,118	1,361	1,347	1,306
	(ratio)	4.1%	4.2%	5.1%	5.1%	4.4%
Stationery businesses	Net sales	20,559	21,910	22,897	21,807	23,727
	Operating income	2,352	2,207	2,338	2,124	2,509
	(ratio)	11.4%	10.1%	10.2%	9.7%	10.6%
Interior retail businesses	Net sales	4,633	4,516	5,078	5,389	5,533
	Operating income	271	23	173	153	138
	(ratio)	5.8%	0.5%	3.4%	2.8%	2.5%
Other	Net sales	119	92	140	153	145
	Operating income	-14	-63	-80	-74	-108
	(ratio)	-	-	-	-	-
Reconciliation	Net sales	-8,450	-8,637	-8,317	-8,228	-8,476
	Operating income	-2,027	-2,053	-2,468	-2,609	-2,718
Total	Net sales	86,437	92,555	96,087	99,484	108,099
	Operating income	10,043	10,818	11,791	13,484	13,848
	(ratio)	11.6%	11.7%	12.3%	13.6%	12.8%

‌Annual Performance

(Millions of yen)

	FY2021 result	FY2022 result	FY2023 result	FY2024 result	FY2025 result	FY2026 target
Net sales	292,617	300,929	328,753	338,837	359,876	390,000
Gross profit	113,526	116,671	127,392	133,424	144,469	160,300
(ratio)	38.8%	38.8%	38.8%	39.4%	40.1%	41.1%
SG&A expenses	93,618	97,543	103,561	110,892	118,222	133,300
(ratio)	32.0%	32.4%	31.5%	32.8%	32.9%	34.2%
Operating income	19,907	19,128	23,830	22,531	26,247	27,000
(ratio)	6.8%	6.4%	7.2%	6.6%	7.3%	6.9%
Ordinary income	16,415	21,161	25,989	24,410	27,222	26,800
(ratio)	5.6%	7.0%	7.9%	7.2%	7.6%	6.9%
Net income attributable to owners of parent	13,703	18,237	19,069	21,787	21,473	20,300
(ratio)	4.7%	6.1%	5.8%	6.4%	6.0%	5.2%
EBITDA	27,220	26,550	32,402	31,493	34,886	37,700
ROE	6.0%	7.8%	7.8%	8.5%	8.4%	>8%

‌Annual Performance by Segment

(Millions of yen)

		FY2022 result	FY2023 result	FY2024 result	FY2025 result	FY2026 target
Furniture businesses	Net sales	134,886	154,472	162,415	172,196	191,000
	Operating income	16,523	22,458	23,459	26,175	30,700
	(ratio)	12.2%	14.5%	14.4%	15.2%	16.1%
Business supply distribution	Net sales	95,314	97,820	98,935	108,369	118,300
	Operating income	3,269	3,892	4,471	5,463	4,400
	(ratio)	3.4%	4.0%	4.5%	5.0%	3.7%
Stationery businesses	Net sales	78,457	83,899	83,575	83,572	84,900
	Operating income	6,786	6,802	5,993	7,092	7,100
	(ratio)	8.6%	8.1%	7.2%	8.5%	8.4%
Interior retail businesses	Net sales	19,716	20,348	21,238	23,678	24,100
	Operating income	1,087	698	521	718	1,050
	(ratio)	5.5%	3.4%	2.5%	3.0%	4.4%
Other	Net sales	413	438	476	573	1,000
	Operating income	-133	-370	-479	-457	-500
	(ratio)	-	-	-	-	-
Reconciliation	Net sales	-27,857	-28,226	-27,803	-28,514	-29,300
	Operating income	-8,404	-9,651	-11,434	-12,744	-15,750
Total	Net sales	300,929	328,753	338,837	359,876	390,000
	Operating income	19,128	23,830	22,531	26,247	27,000
	(ratio)	6.4%	7.2%	6.6%	7.3%	6.9%

‌Finance Administrative Division Enterprise Value management Division, IR Unit, KOKUYO Co., Ltd. THE CAMPUS, 1-8-35 Konan, Minato-ku, Tokyo 108-8710 E-Mail: [e-mail]

‌* Business forecasts and other forward-looking statements herein are based on expectations and judgments deemed reasonable in light of business information available as of the time of publication. They are not guarantees of future performance. Various uncertainties may cause actual results to differ from what these statements suggest.