Tokai Rika (6995) investor relations material

Executive summary

• Achieved record first-quarter sales of ¥165.2bn, driven by favorable forex, higher production volumes from major customers, and yen appreciation.

• Operating profit declined 2.0% year-over-year to ¥7.6bn due to rising raw material and fixed costs.

• Ordinary profit fell to ¥8.8bn, and profit attributable to owners of parent decreased 12.6% year-over-year to ¥4.5bn.

• Comprehensive income increased 50.8% year-over-year to ¥7,164 million, reflecting strong foreign currency translation gains.

Financial highlights

• Sales rose to ¥165.2bn in FY2027 1Q from ¥152.6bn in FY2026 1Q, an 8.2% increase.

• Gross profit increased by ¥1,700 million year-over-year to ¥22,585 million.

• Basic earnings per share for the quarter were ¥53.15, down from ¥60.90 a year earlier.

• Total assets at quarter-end were ¥553,345 million, up ¥5,011 million from March 31, 2026.

• Equity ratio stood at 63.1% as of June 30, 2026.

Outlook and guidance

• FY2027 full-year sales forecast unchanged at ¥650.0bn; operating income forecast at ¥30.0bn.

• Ordinary profit forecast at ¥33.0bn (down 24.6% year-over-year).

• Net profit forecast for FY2027 is ¥20.0bn, up 32.1% year-over-year.

• Operating margin expected to decrease to 4.6% from 5.5% in FY2026.

• Annual dividend forecast is ¥120 per share.