To our shareholders and investors

Looking back on the 68th term

In the current consolidated fiscal year (February 1, 2025 to January 31, 2026), the Japanese economy is expected to recover gradually due to improvements in employment and income conditions and the effects of various policies. However, uncertainty remains due to downside risks to the economy caused by the impact of U.S. trade policies and the continued impact of rising prices on personal consumption. The business environment for our display industry remained generally robust, thanks to active corporate promotional investments, inbound demand, and the hosting of the 2025 Japan International Exposition (Osaka-Kansai Expo). However, it is necessary to keep a close eye on the risk of rising costs due to increases in material prices and labor costs. Under these circumstances, our group has been developing business activities with the goal of further enhancing corporate value by building a foundation to put us on a growth trajectory and investing in new areas, based on our medium-term management plan (January 2025 to January 2027).

As a result, net sales for the current consolidated fiscal year amounted to 107.222 billion yen (a 16.7% increase compared to the previous consolidated fiscal year), operating profit was 8.358 billion yen (a 62.4% increase compared to the previous consolidated fiscal year), ordinary profit was 8.336 billion yen (a 56.8% increase compared to the previous consolidated fiscal year), and net profit attributable to parent company shareholders was 5.993 billion yen (a 54.7% increase compared to the previous consolidated fiscal year). In addition, orders received for the current consolidated fiscal year amounted to 100.23 billion yen (a 9.8% decrease compared to the previous consolidated fiscal year).

The year-end dividend for this period will be 37 yen per share.

Future outlook

Regarding the outlook for the future, while there are downside risks due to the impact of U.S. trade policy and the situation in the Middle East, a gradual economic recovery is expected due to the effects of various policies. Furthermore, we recognize that the display industry will benefit from increased capital investment in inbound tourism-related facilities, redevelopment projects in various cities, and growing demand for new renovations of stadiums and arenas.

In light of the aforementioned business environment, our group has revised upward its targets for the final year of its medium-term management plan (January 2025 to January 2027). We will focus on achieving steady business growth in a robust economic environment, as well as addressing important issues such as improving the working environment and developing marketing systems, and building a foundation for more long-term, sustainable growth. Furthermore, in order to expand the possibilities of "space creation," we will challenge ourselves in new areas, such as new businesses.

Our group considers consolidated ROE and consolidated operating profit margin to be key performance indicators, and our targets for the medium-term management plan period (January 2025 to January 2027) are a consolidated ROE of 14.7% and a consolidated operating profit margin of 7.5%. Regarding shareholder returns, our current target is a consolidated dividend payout ratio of 50% or more. For the next medium-term management plan period (January 2028 to January 2030), we will add DOE (consolidated dividend on equity) as a performance indicator for our dividend policy, setting the lower limit at the higher of either a consolidated dividend payout ratio of 50% or a DOE of 8%.

We would like to ask for your continued support and encouragement in the future.