Results Overview
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Financial Results for the Fiscal Year Ended March 2025
During the current fiscal year, despite being affected by inflationary pressure due to surging resource and energy costs, increased labor expenses, and fluctuations in financial and capital markets, the Japanese economy maintained a moderate recovery trend. This was supported by improved employment and income conditions, driven by increased corporate earnings, and the expansion of inbound tourism demand.
Under these economic conditions, the Group saw increased revenue in the Mineral Resources and the Machinery & Environmental Engineering, resulting in a net sales figure of 196,766 million JPY, a 17.9% increase compared to the previous fiscal year.
In terms of profit/loss, operating profit declined by 8.2% year-on-year to 10,257 million JPY due to decreased profitability in the Metallic Minerals and other factors. Ordinary profit decreased by 5.1% to 11,437 million JPY, despite an increase in equity-method investment gains, as this was offset by the decline in operating profit.
Net income attributable to owners of the parent company rose by 36.6% to 9,019 million JPY compared to the previous year, owing to gains from the sale of shareholdings and the receipt of insurance proceeds related to a fire incident.
Regarding dividends, its basic policy is to provide stable and long-term dividend payments while maintaining an optimal balance between enhancing equity capital and returning profits to shareholders. Based on this policy and taking into account its consolidated performance, it aims for a consolidated payout ratio of 40%. In line with its minimum dividend policy of ¥170 per share, it has set the annual dividend at ¥224 per share, resulting in a consolidated payout ratio of 41.0%.
Outlook for the Future
Looking ahead, the business environment remains uncertain due to rising resource and energy prices stemming from heightened geopolitical risks, persistent inflation driven by higher labor costs, and concerns over significant volatility in financial and capital markets. Additional factors include potential dampening of domestic demand and the impact of increased tariffs stemming from U.S. trade policies. Furthermore, structural reforms in the steel industry and efforts by governments and private companies toward realizing a decarbonized society are expected to bring substantial changes to its business environment.
In response to these challenges, the Group will work to strengthen sales, improve productivity, reduce various expenses, enhance its Business Continuity Plan (BCP), and promote sustainability. Through these initiatives, it aims to reinforce and expand its business foundation and improve performance, while contributing to the realization of a sustainable society.
Moreover, it is committed to fulfilling its essential role in the long-term supply of raw materials to key industries. It will strive for sustainable growth and medium- to long-term enhancement of corporate value by promoting mutual prosperity with its stakeholders, including shareholders, business partners, local communities, and employees, while advancing its corporate governance initiatives.
The Group is also proactively engaged in promoting sustainability. With the goal of achieving carbon neutrality by 2050, it is working on improving facility efficiency, introducing energy-saving technologies, reforesting former mine sites, obtaining forest certification for the Group-owned forests, and generating power using renewable energy. It will continue to pursue environmentally responsible business practices.
Additionally, to build a foundation that allows the Group to remain competitive and thrive, it views human resources as capital and aim to fully unlock their potential. It will promote initiatives that contribute to corporate value creation.
The Group sincerely ask for your continued support and cooperation as it moves forward.
June 2025
