Toto (5332) investor relations material

Executive summary

• Net sales for the year ended March 2026 reached ¥737.4 billion (+1.8% YoY), with operating profit at ¥53.8 billion (+10.9% YoY) and ordinary profit at ¥60.7 billion (+20.5% YoY), despite a challenging business environment marked by global uncertainties and AI-driven demand.

• Profit attributable to owners surged 230.8% YoY to ¥40.3 billion, reflecting a significant recovery.

• All business segments achieved their plans, with notable growth in advanced ceramics.

• Structural reforms are underway in Mainland China, and growth strategies remain unchanged toward 2030.

Financial highlights

• Net sales: ¥737.4 billion (+2% YoY); operating profit: ¥53.8 billion (+11% YoY); recurring profit: ¥60.7 billion (+21% YoY).

• Gross profit increased to ¥262.6 billion from ¥254.1 billion YoY.

• Basic earnings per share rose to ¥243.01 from ¥71.73 YoY.

• Operating margin improved to 7.3% (+0.6pt YoY).

• Extraordinary losses of ¥15.2 billion recorded as restructuring costs for Mainland China.

Outlook and guidance

• For FY2026, net sales are projected at ¥785.0 billion (+6% YoY), operating profit at ¥60.0 billion (+12% YoY), and profit attributable to owners at ¥46.0 billion (+14% YoY).

• Ordinary profit is expected to decrease 3.6% YoY to ¥58.5 billion.

• Record-high profits targeted for a second consecutive year.

• Japan business expects higher sales but lower profits due to rising costs; international and advanced ceramics businesses forecast increased sales and profits.