Okamura Corporation

7994

JP3192400004

Business Support Supplies

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May. 09	Okamura Corporation Provides Consolidated Earnings Guidance for the First Half and Full Year of Fiscal Year Ending March 31, 2026	CI
Mar. 25	Okamura to Acquire UK-based Boss Design	MT

Okamura : Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (Under Japanese GAAP)

Published on 05/09/2025 at 08:02

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 9, 2025

Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (Under Japanese GAAP)

Company name: Okamura Corporation Listing: Tokyo Stock Exchange Securities code: 7994

URL: https://www.okamura.com/

Representative: Masayuki Nakamura, Representative Director, President and Chief Executive Officer Inquiries: Sakae Fukuda, Director and Executive Officer, Senior General Manager, Corporate

Accounting and Finance Division, CFO

Telephone: +81-(0)45-319-3445

Scheduled date of annual general meeting of shareholders: June 25, 2025 Scheduled date to commence dividend payments: June 26, 2025 Scheduled date to file annual securities report: June 24, 2025 Preparation of supplementary material on financial results: Prepared

Holding of financial results briefing: Scheduled (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

Consolidated Operating Results for the Fiscal Year Ended March 31, 2025 (From April 1, 2024 to March 31, 2025)

Operating Results (Percentages indicate year-over-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to owners of parent

Fiscal year ended March 31, 2025

March 31, 2024

Millions of yen

314,527

298,295

5.4

7.7

Millions of yen

23,935

24,036

(0.4)

38.4

Millions of yen

26,459

26,227

0.9

38.6

Millions of yen

22,045

20,280

8.7

27.5

Note: Comprehensive income	For the fiscal year ended March 31, 2025:	¥21,193 million	[(27.7)%]
	For the fiscal year ended March 31, 2024:	¥29,298 million	[74.8%]

	Basic earnings per share	Diluted earnings per share	Return on equity	Return on assets	Ratio of operating profit to net sales
Fiscal year ended	Yen	Yen	%	%	%
March 31, 2025	232.93	-	12.3	9.3	7.6
March 31, 2024	214.27	-	12.6	9.8	8.1

Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2025: ¥1,399 million For the fiscal year ended March 31, 2024: ¥510 million

Financial Positions

Total assets

Net assets

Equity ratio

Net assets per share

As of

March 31, 2025

March 31, 2024

Millions of yen

289,144

282,118

Millions of yen

186,795

174,795

64.0

61.1

Yen

1,956.33

1,821.10

Reference: Total equity

As of March 31, 2025: ¥185,143 million As of March 31, 2024: ¥172,355 million

Cash Flows

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Cash and cash equivalents at end of period

Fiscal year ended March 31, 2025

March 31, 2024

Millions of yen

983

21,351

Millions of yen

(14,270)

(12,248)

Millions of yen

(209)

(8,200)

Millions of yen

25,410

38,215

Dividend

Annual dividends per share

Total cash dividends (Total)

Payout ratio (Consolidated)

Ratio of dividends to net assets (Consolidated)

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Millions of yen

8,156

8,914

Fiscal year ended March 31, 2024

43.00

86.00

40.1

5.0

Fiscal year ended March 31, 2025

45.00

49.00

94.00

40.4

4.9

Fiscal year ending March 31, 2026 (Forecast)

52.00

104.00

43.2

Note: Breakdowns of dividends for the fiscal year ending March 31, 2026

Second quarter-end:	Ordinary dividend	¥48.50	Commemorative dividend	¥3.50
Fiscal year-end:	Ordinary dividend	¥48.50	Commemorative dividend	¥3.50

Forecast of Consolidated Performance for the Fiscal Year Ending March 31, 2026 (From April 1, 2025 to March 31, 2026)

(Percentages indicate year-over-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to owners of parent

Basic earnings per share

First half Full year

Millions of yen

152,000

330,000

4.4

4.9

Millions of yen

8,500

27,000

26.0

12.8

Millions of yen

9,300

29,500

13.9

11.5

Millions of yen

7,300

22,800

(8.4)

3.4

Yen

77.14

240.92

* Notes

Significant changes in the scope of consolidation during the period: None Newly included: -
Excluded: -
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
2. Changes in accounting policies due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None

Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury stock)

March 31, 2025	100,621,021 shares
March 31, 2024	100,621,021 shares

Number of treasury stock at the end of the period

March 31, 2025	5,983,190 shares
March 31, 2024	5,977,449 shares

Average number of shares outstanding during the period

Fiscal year ended March 31, 2025	94,640,892 shares
Fiscal year ended March 31, 2024	94,646,420 shares

Reference: Non-Consolidated Operating Results 1. Non-Consolidated Operating Results for the Fiscal Year Ended March 31, 2025 (From April 1, 2024 to March 31, 2025)

Operating Results (Percentages indicate year-over-year changes.)

	Net sales		Operating profit		Ordinary profit		Profit
Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2025	279,122	5.6	23,735	6.0	25,596	4.6	21,538	10.6
March 31, 2024	264,407	8.6	22,398	41.8	24,466	41.7	19,467	27.3

	Basic earnings per share	Diluted earnings per share
Fiscal year ended	Yen	Yen
March 31, 2025	227.12	-
March 31, 2024	205.28	-

Financial Positions

Total assets

Net assets

Equity ratio

Net assets per share

As of

March 31, 2025

March 31, 2024

Millions of yen

259,973

255,200

Millions of yen

168,693

158,513

64.9

62.1

Yen

1,778.79

1,671.43

Reference: Total equity

March 31, 2025: ¥168,693 million

March 31, 2024: ¥158,513 million

Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
Proper use of earnings forecasts and other special matters

The performance forecasts and other forward-looking statements contained herein are based on the information available to the Company at the time, and contain certain assumptions that the Company considers to be reasonable. They are subject to diverse factors that may cause actual results of operations and other items to differ significantly from the statements and forecasts. For a description of the assumptions underlying the performance forecasts and the points to note when using the performance forecasts in this document, etc., please refer to (4) Future Outlook in 1. Overview of Operating Results, etc. on page 5 of the Attachments to this Financial Results summary.

Table of Contents - Attachments

Overview of Operating Results, etc 2
1. Overview of Operating Results for the Fiscal Year under Review 2
2. Overview of Financial Position for the Fiscal Year under Review 4
3. Overview of Cash Flows for the Fiscal Year under Review 5
4. Future Outlook 5
Management Policy 8
1. Basic policy on Management of the Company 8
2. Corporate Management Strategies for the Medium and Long Term 8
3. Basic Policy on the Distribution of Profits and Dividends for the Fiscal Year under Review and the Next Fiscal Year 9
Basic Policy on Selection of Accounting Standards 10
Consolidated Financial Statements and Principal Notes 11
1. Consolidated Balance Sheets 11
2. Consolidated Statements of Income and Comprehensive Income 13
3. Consolidated Statements of Changes in Equity 15
4. Consolidated Statements of Cash Flows 17
5. Notes to Consolidated Financial Statements 19
  (Notes on going concern assumption) 19
  (Important matters that form a basis for the preparation of the consolidated financial statements) 19
  (Consolidated balance sheets) 20
  (Consolidated statements of income) 21
  (Consolidated statements of changes in equity) 22
  (Consolidated statements of cash flows) 25
  (Segment information, etc.) 25
  (Per share information) 29
  (Significant subsequent events) 29
Non-Consolidated Financial Statements 32
1. Non-Consolidated Balance Sheets 32
2. Non-Consolidated Statements of Income 34
3. Non-Consolidated Statements of Changes in Equity 35

Overview of Operating Results, etc.

Overview of Operating Results for the Fiscal Year under Review

Overall results

Category	Net sales (Millions of yen)	Operating profit (Millions of yen)	Ordinary profit (Millions of yen)	Profit attributable to owners of parent (Millions of yen)	Basic earnings per share (Yen)	ROE (%)
Fiscal year ended March 31, 2025	314,527	23,935	26,459	22,045	232.93	12.3
Fiscal year ended March 31, 2024	298,295	24,036	26,227	20,280	214.27	12.6

At the Okamura Group (the "Group"), our mission is to "Contribute to society by creating environments where people can thrive with rich ideas and reliable quality." Under this mission, we aim to realize a society in which all people can work and live with vitality and smiles in line with our purpose of "Realizing a society where people can thrive."

During the fiscal year ended March 31, 2025 (the fiscal year under review), the outlook for Japanese domestic economy remained clouded due to several factors, including geopolitical risk surrounding the situations in Ukraine and the Middle East, the prolonged slowdown of the Chinese economy, rising financing costs resulting from the transition toward a normalized interest rate environment, soaring materials and parts prices, increasing logistics costs caused by the so-called "2024 problem," and changes in interest and exchange rates due to global monetary tightening.

Under these conditions, the Group worked to promote cost reduction and price pass-on initiatives while focusing on creating new demand in response to major changes in society and the market, such as the decline in the working population.

During the fiscal year under review, the Group implemented a wage increase of 7.3%, which is higher than in the previous fiscal year. The Group will leverage this in securing excellent human resources and promoting employee engagement improvement, in addition to responding to rising prices, and thereby work to enhance its corporate value.

As a result, for the fiscal year under review, the Group recorded net sales of 314,527 million yen (up 5.4% year-over-year), operating profit of 23,935 million yen (down 0.4% year-over-year), ordinary profit of 26,459 million yen (up 0.9% year-over-year), and profit attributable to owners of parent of 22,045 million yen (up 8.7% year-over-year). The highest figures were recorded for net sales, ordinary profit, and profit.

Return on equity (ROE) was 12.3% (down 0.3 percentage points year-over-year), return on assets (ROA) was 9.3% (down 0.5 percentage points year-over-year), and the ratio of operating profit to net sales was 7.6% (down 0.5 percentage points year-over-year).

Results in each segment

Segment name	Net sales (Millions of yen)			Segment profit (Millions of yen)
Segment name	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025	Change	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025	Change
Office Furniture business	161,692	167,397	5,704	17,691	17,367	(323)
Store Displays business	111,682	118,305	6,623	5,173	4,792	(380)
Material Handling Systems business	18,387	22,599	4,211	918	1,619	700
Others	6,532	6,224	(307)	253	156	(97)
Total	298,295	314,527	16,231	24,036	23,935	(100)

Management's assessment of the status of operating results in each segment and its analysis and discussion are presented below.

Note: The totals for segment profit correspond to operating profit on the consolidated statements of income. Office Furniture business

In the Office Furniture business, interest in creating "The Office You Want To Go To", which contributes to solving management issues such as securing human resources and revitalizing communication, has been growing across the country, and the demand for such offices remains strong. Under these conditions, we have created new demand by leveraging the results of our research into future working styles and our product development capabilities that anticipate changes in the times, which are our strengths, as well as our proposal capabilities based on insight we have gained from our extensive delivery record, and thereby aimed to boost net sales and operating profit. Although net sales reached a record high, operating profit declined compared to the previous fiscal year due to rising SG&A expenses, including labor and logistics costs, as well as 1,426 million yen in amortization of goodwill from previous periods, primarily resulting from the acquisition of additional shares in the consolidated subsidiary DB&B Holdings Pte. Ltd.

As a result, segment net sales amounted to 167,397 million yen (up 3.5% year-over-year) and segment profit was 17,367 million yen (down 1.8% year-over-year).

Store Displays business

In the Store Displays business, demand for new store openings and store renovations remained steady against the backdrop of competition among businesses that handle food, the recovery of inbound demand, and increased inquiries for labor-saving products driven by in-store labor shortages. Under these conditions, we worked to capture demand generated through proposals that leveraged our comprehensive strengths by expanding our total support framework for store creation, which includes services such as store design and construction management, in addition to our extensive product lineup featuring display fixtures, refrigerated showcases, and other products. Meanwhile, amid rising prices for materials and parts, the Company has focused on reducing production and logistics costs and passing on costs to customers. Although net sales reached a record high, operating profit declined due to increased SG&A expenses, including labor costs.

As a result, segment net sales amounted to 118,305 million yen (up 5.9% year-over-year) and segment profit was 4,792 million yen (down 7.4% year-over-year).

Material Handling Systems business

In the Material Handling Systems business, demand for automated warehousing equipment remained at a high level, mainly for large-scale logistics facilities, against the backdrop of the need for personnel and labor savings. Meanwhile, procurement difficulties and soaring prices of materials and parts continued due to disruptions in global supply chains. Under these conditions, orders received increased steadily due to the Company's proactive proposal activities, leveraging the strength of its superior products, which led to several large projects being recorded as sales during the fiscal year under review. In addition, the Company made efforts to improve profitability by reducing production and logistics costs and passing on costs to customers. These efforts resulted in record-high net sales and a significant increase in operating profit.

As a result, segment net sales amounted to 22,599 million yen (up 22.9% year-over-year) and segment profit was 1,619 million yen (up 76.3% year-over-year).

Overview of Financial Position for the Fiscal Year under Review

	March 31, 2024 (Millions of yen)	March 31, 2025 (Millions of yen)
Total assets	282,118	289,144
Net assets	174,795	186,795
Equity ratio (%)	61.1	64.0
Net assets per share (Yen)	1,821.10	1,956.33

The financial position as of March 31, 2025 (the end of the fiscal year under review) was as follows.

Total assets amounted to 289,144 million yen, an increase of 7,026 million yen from the end of the previous fiscal year. Current assets decreased by 5,371 million yen, mainly due to a decrease in cash and deposits, despite an increase in notes and accounts receivable - trade, and contract assets. Non-current assets increased by 12,398 million yen, mainly due to increases in property, plant and equipment, including buildings and structures, and goodwill, despite a decrease in investment securities.

Liabilities stood at 102,349 million yen, a decrease of 4,973 million yen from the end of the previous fiscal year, mainly due to a decrease in electronically recorded obligations - operating, despite an increase in long-term borrowings.

Net assets amounted to 186,795 million yen, an increase of 11,999 million yen from the end of the previous fiscal year, mainly due to an increase in retained earnings despite a decrease in valuation difference on available-for-sale securities.

As a result, the equity ratio increased by 2.9 percentage points from the end of the previous fiscal year to 64.0%. Net assets per share increased from 1,821.10 yen at the end of the previous fiscal year to 1,956.33 yen.

Overview of Cash Flows for the Fiscal Year under Review

Category	Fiscal year ended March 31, 2024 (Millions of yen)	Fiscal year ended March 31, 2025 (Millions of yen)
Cash flows from operating activities	21,351	983
Cash flows from investing activities	(12,248)	(14,270)
Cash flows from financing activities	(8,200)	(209)
Cash and cash equivalents at end of period	38,215	25,410
Balance of borrowings and bonds payable at end of period	20,862	35,839

Cash flows for the fiscal year under review were as follows.

Net cash provided by operating activities was 983 million yen (compared to 21,351 million yen provided in the previous fiscal year). This was mainly a result of profit before income taxes of 30,479 million yen and depreciation of 6,789 million yen, despite a decrease in trade payables of 13,841 million yen, income taxes paid of 9,704 million yen, an increase in accounts receivable - trade, and contract assets of 6,429 million yen, and gain on sale of investment securities of 4,050 million yen.

Net cash used in investing activities was 14,270 million yen (compared to 12,248 million yen used in the previous fiscal year). This was mainly a result of purchase of property, plant and equipment of 16,458 million yen and purchase of intangible assets of 2,367 million yen, despite proceeds from sale and redemption of investment securities of 4,545 million yen.

Net cash used in financing activities was 209 million yen (compared to 8,200 million yen used in the previous fiscal year). This was mainly a result of dividends paid of 8,337 million yen and purchase of shares of subsidiaries not resulting in change in scope of consolidation of 6,068 million yen, despite proceeds from long-term borrowings of 15,200 million yen.

As a result, cash and cash equivalents at the end of the fiscal year under review amounted to 25,410 million yen, a decrease of 12,805 million yen year-over-year.

The balance of borrowings and bonds payable at the end of the fiscal year under review amounted to 35,839 million yen, an increase of 14,977 million yen from the end of the previous fiscal year.

Future Outlook

The outlook for the Japanese economy is highly uncertain due to factors such as geopolitical risk surrounding the situations in Ukraine and the Middle East, the prolonged slowdown of the Chinese economy, and concerns over the impact of trade policies in the U.S. In addition, rising financing costs resulting from the normalization of the interest rate environment, soaring materials and parts prices, and continued wage increases are expected. As a result, addressing the inflationary economy has become a key management issue.

In this business environment, we aim to create new demand by capturing major social and market changes, such as the transition to new office spaces that promote innovation, labor shortages in the distribution industry, and the growing need to address sustainability.

The full-year financial results forecast is for consolidated net sales of 330,000 million yen, consolidated operating profit of 27,000 million yen, consolidated ordinary profit of 29,500 million yen, and profit attributable to owners of parent of 22,800 million yen.

Status of each business

In the mainstay Office Furniture business, following the COVID-19 pandemic, there has been a renewed market-wide awareness of the importance of communication, coupled with the growing adoption of flexible working styles that are not bound by time or location. As a result, demand for open office spaces that foster active communication is increasing. Moreover, as a solution to the growing challenge of securing human resources in the Japanese market, opportunities for office relocation and renovation are expanding, and the demand for creating "The Office You Want To Go To" is expected to remain strong.

Under these conditions, we will leverage our proposal capabilities based on insights we have gained from the research results into future working styles, one of our strengths, and our extensive delivery record, as well as our product development capabilities that anticipate changes in the times. Through these efforts, we aim to create new demand, thereby boosting net sales and operating profit.

In the Store Displays business, strong demand is expected to continue for personnel and labor savings amid personnel shortages at stores, as well as for the creation of employee-friendly work environments, regardless of region or business category. In addition, addressing social issues in the retail industry, such as environmental considerations, is becoming increasingly important in our proposals.

Under these conditions, we aim to expand net sales and operating profit by working closely with our customers and co-creating solutions to address various social issues faced by retailers, such as reducing environmental impact and food waste. We will achieve this by leveraging our strengths, which include our extensive lineup of display fixtures, refrigerated showcases, and other products, as well as our integrated service functions from proposals to after-sales service, and our design, research, and development framework for store creation.

In the Material Handling Systems business, demand is expected to remain strong for personnel and labor savings due to a shortage of workers at logistics facilities, as well as for reducing logistics costs through high-density storage and high-efficiency transportation within warehouses.

Under these conditions, as a line builder of logistics systems, we aim to expand the scale of our business and secure profits by enhancing our integrated system from consulting services to solve business issues to maintenance services. In addition, we will engage in the research and development of differentiated products using advanced technologies.

We will enhance productivity and efficiency by strengthening our production and supply systems to establish a smart factory that can flexibly respond to changing demand. We will promote supply chain reforms aimed at improving inventory turnover through unified efforts across our sales, production, and logistics divisions. Through effective capital investment and continuous improvement activities, we will aim to boost productivity, rebuild a company-wide quality management system, and achieve both operational efficiency and stable supply. Furthermore, we will strive to enhance our competitiveness by building on our foundation of creating a safe and healthy workplace, implementing company-wide human resource development, and improving employee engagement, and accelerating efforts to improve operational efficiency through digital technology.

[Consolidated net sales by segment]

Fiscal year ended March 31, 2025

Fiscal year ending March 31, 2026 (forecast)

Office Furniture business	167.3 billion yen	182.0 billion yen
Store Displays business	118.3 billion yen	121.5 billion yen
Material Handling Systems business	22.5 billion yen	20.0 billion yen
Others	6.2 billion yen	6.5 billion yen
Total	314.5 billion yen	330.0 billion yen

[Consolidated operating profit by segment]

Fiscal year ended March 31, 2025

Fiscal year ending March 31, 2026 (forecast)

Office Furniture business 17.3 billion yen 19.0 billion yen

Store Displays business 4.7 billion yen 6.0 billion yen Material Handling Systems business 1.6 billion yen 1.3 billion yen Others 0.1 billion yen 0.7 billion yen Total 23.9 billion yen 27.0 billion yen

Management Policy
1. Basic policy on Management of the Company
  At the Okamura Group (the "Group"), our mission is to "Contribute to society by creating environments where people can thrive with rich ideas and reliable quality." Under this mission, we aim to realize a society in which all people can work and live with vitality and smiles in line with our purpose of "Realizing a society where people can thrive."
  In 1945, Okamura Seisakusho (Okamura) was founded jointly by engineers who embraced its founding purpose, each providing funds, expertise, and labor. The spirit of the founding members took hold as our corporate culture guided by our Basic Policy, a corporate philosophy composed of Innovative Creation, Cooperation, Being Cost Conscious, Saving for Future, and Social Responsibility. Under the motto of "Quality Pays for Itself," we have been working to provide society with high-quality products and services that precisely address our customers' needs. This endeavor has become Okamura's corporate DNA and passed down to the Okamura Group's present management and business activities.
  Okamura Way, our corporate philosophy, comprises Okamura's Mission (our management approach), the Okamura Declaration (what we want to be), and Okamura Basics (the values we hold dear). At the core of all of these is our perspective "Where people can thrive."
  In today's changing value system, one in which sustainability is becoming ever more important, the vitality of every individual will lead to solutions to social issues. Based on this belief and our sense of corporate purpose, we at the Okamura Group aim to contribute to the realization of a society in which all people can work and live with vitality and smiles. Our activities and initiatives linked to Okamura Way are presented on our corporate website: https://live.okamura.co.jp/ (in Japanese).
  We will strive to create new demand and strengthen our management base to respond to change while working to resolve social issues through our businesses.
2. Corporate Management Strategies for the Medium and Long Term
  We have formulated the Midterm Management Plan 2025, spanning the three years from the fiscal year ended March 31, 2024 to the fiscal year ending March 31, 2026. Additionally, we revised upward our financial targets on May 9, 2025, in light of our recent business performance and business environment.
  1. Aims of Midterm Management Plan 2025
    - Creating new demand
      Grasping the flow of the times, accelerate the transformation to a demand-creating company by refining our ability to make proposals and products
    - Strengthening our management foundation to respond to change
      Human resource development and improving employee engagement: Support career development, promote human resource development and employee engagement improvement
      Accelerating the digital transformation: Accelerate the Digital Transformation in management, business, and work and promote DX human resources development
      Enhancement of high-mix, variable-volume production system: Maintain and strengthen competitive advantage by utilizing a transformative production system that responds to environmental changes
      Development of overseas business rooted in the local market: Development of local production for local consumption business through M&A and partnerships and joint ventures with leading local partners
    - Initiatives to address social issues through business
      Continuous initiatives to address social issues and steady progress of long-term global environmental initiatives toward realizing carbon neutrality by 2050
  2. Financial targets for the fiscal year ending March 31, 2026 (figures in parentheses are before revisions)
    - Net sales: 330.0 billion yen or more (Initial target: 325.0 billion yen or more)
    - Operating profit: 27.0 billion yen (Initial target: 27.0 billion yen)
    - Operating profit ratio: 8.0 %
    - ROE: 10.0 %
  3. Basic policy on investment and shareholder returns
    - Investment for growth
      We have set aside up to 50.0 billion yen for strategic investment and will implement investments with a good balance between maintaining and enhancing the strengths of existing businesses and developing new markets and businesses
    - Shareholder returns
      We will maintain a stable dividend payout ratio of at least 40%, raising it from the level of the previous Midterm Management Plan
      We will flexibly implement the purchase of treasury shares based on factors such as the status of investment and the external environment
3. Basic Policy on the Distribution of Profits and Dividends for the Fiscal Year under Review and the Next Fiscal Year
The Group considers an adequate return of profits to shareholders to be one of its most important management priorities. We intend to distribute an appropriate share of profits in accordance with its business performance and will endeavor to maintain a stable dividend payout while taking into consideration its financial position, future business developments, and retained earnings.
Under the Midterm Management Plan 2025, we will maintain stable dividends of at least 40% of profit after tax, raising the dividend payout ratio from the level of the previous Midterm Management Plan.
Based on policies such as this, as well as a consideration of the business results for the fiscal year ended March 31, 2025, we plan to pay the year-end dividends equivalent to 49 yen per share for the fiscal year ended March 31, 2025. As a result, including the interim dividends of 45 yen per share, the annual dividends will be 94 yen per share. We forecast annual dividends of 104 yen per share for the fiscal year ending March 31, 2026.
For details, please refer to the "Notice Regarding Dividends (Dividend Increase) and Dividend Forecast for the Fiscal Year Ending March 31, 2026," released today.
Basic Policy on Selection of Accounting Standards
The Group prepares consolidated financial statements using Japanese GAAP at present, based on a consideration of the comparability of consolidated financial statements over time and comparability with other entities.
The Group intends to appropriately address the application of the IFRS upon consideration of internal and external circumstances.
Consolidated Financial Statements and Principal Notes

(1) Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2024 As of March 31, 2025

Assets

Current assets

Cash and deposits 39,173 26,245

Notes and accounts receivable - trade, and contract assets	81,433	87,862
Merchandise and finished goods	8,603	8,469
Work in process	6,492	6,982
Raw materials and supplies	6,252	6,761
Other	3,209	3,538
Allowance for doubtful accounts	(173)	(241)
Total current assets	144,990	139,618
Non-current assets
Property, plant and equipment
Buildings and structures, net	23,234	29,483
Machinery, equipment and vehicles, net	16,545	17,380
Land	30,381	34,602
Construction in progress	3,210	1,333
Other, net	3,395	4,056
Total property, plant and equipment	1, 3 76,766	1, 3 86,856
Intangible assets
Goodwill	2,528	5,975
Other	3,381	4,908
Total intangible assets	5,910	10,883
Investments and other assets
Investment securities	*2 47,027	*2 43,971
Retirement benefit asset	1,191	1,213
Leasehold deposits	4,820	5,401
Deferred tax assets	366	421
Other	1,068	801
Allowance for doubtful accounts	(24)	(24)
Total investments and other assets	54,450	51,785
Total non-current assets	137,127	149,525
Total assets	282,118	289,144

(Millions of yen)

	As of March 31, 2024	As of March 31, 2025
Liabilities
Current liabilities
Notes and accounts payable - trade	29,611	28,230
Electronically recorded obligations-operating	13,260	-
Short-term borrowings	3, 4 6,192	3, 4 6,171
Current portion of long-term borrowings	201	1,852
Current portion of bonds payable	5,000	-
Income taxes payable	6,747	4,527
Accrued consumption taxes	1,694	1,566
Contract liabilities	1,761	1,795
Provision for bonuses	6,235	4,440
Other	5,587	5,139
Total current liabilities	76,291	53,723
Non-current liabilities
Bonds payable	5,000	10,000
Long-term borrowings	*3 4,468	*3 17,816
Retirement benefit liability	14,312	13,041
Deferred tax liabilities	3,256	3,418
Other	3,993	4,349
Total non-current liabilities	31,030	48,625
Total liabilities	107,322	102,349
Net assets
Shareholders' equity
Share capital	18,670	18,670
Capital surplus	16,770	16,770
Retained earnings	125,234	138,933
Treasury shares	(7,722)	(7,734)
Total shareholders' equity	152,952	166,640
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	16,903	13,864
Foreign currency translation adjustment	1,696	2,907
Remeasurements of defined benefit plans	802	1,731
Total accumulated other comprehensive income	19,402	18,502
Non-controlling interests	2,440	1,652
Total net assets	174,795	186,795
Total liabilities and net assets	282,118	289,144

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
		(Millions of yen)
	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
Net sales	298,295	314,527
Cost of sales	*1 198,522	*1 208,997
Gross profit	99,772	105,529
Selling, general and administrative expenses
Selling expenses	2,357	2,518
Packing and transportation costs	10,547	11,230
Salaries and allowances	25,675	27,688
Provision for bonuses	4,349	3,101
Retirement benefit expenses	1,025	1,176
Depreciation	2,348	2,316
Rent expenses	8,889	8,673
Other	20,542	24,889
Total selling, general and administrative expenses	*1 75,735	*1 81,593
Operating profit	24,036	23,935
Non-operating income
Interest income	76	90
Dividend income	932	971
Share of profit of entities accounted for using equity method	510	1,399
Foreign exchange gains	182	14
Other	1,012	845
Total non-operating income	2,714	3,321
Non-operating expenses
Interest expenses	153	303
Loss on sale and retirement of non-current assets	171	173
Other	198	320
Total non-operating expenses	523	797
Ordinary profit	26,227	26,459
Extraordinary income
Gain on sale of investment securities	3,836	4,051
Total extraordinary income	3,836	4,051
Extraordinary losses
Impairment losses	*2 35	*2 14
Loss on sale of investment securities	19	1
Loss on valuation of investment securities	451	15
Total extraordinary losses	506	31
Profit before income taxes	29,557	30,479
Income taxes - current	9,747	7,553
Income taxes - deferred	(817)	844
Total income taxes	8,929	8,398
Profit	20,628	22,081
Profit attributable to non-controlling interests	348	36
Profit attributable to owners of parent	20,280	22,045

Consolidated Statements of Comprehensive Income			(Millions of yen)
	Fiscal year ended March 31, 2024		Fiscal year ended March 31, 2025
Profit		20,628	22,081
Other comprehensive income
Valuation difference on available-for-sale securities		6,657	(3,047)
Foreign currency translation adjustment		1,176	1,069
Remeasurements of defined benefit plans, net of tax		636	928

Share of other comprehensive income of entities

199 160

accounted for using equity method

Total other comprehensive income 8,669 (888)

Comprehensive income attributable to

Comprehensive income 29,298 21,193

Comprehensive income attributable to owners of parent 28,817 21,145

Comprehensive income attributable to non-controlling interests

480

(3) Consolidated Statements of Changes in Equity

Fiscal year ended March 31, 2024

(Millions of yen)

	Shareholders' equity
	Share Capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
Balance at beginning of period	18,670	16,770	112,162	(7,711)	139,891
Changes during period
Dividends of surplus			(7,207)		(7,207)
Profit attributable to owners of parent			20,280		20,280
Purchase of treasury shares				(10)	(10)
Net changes in items other than shareholders' equity
Total changes during period	-	-	13,072	(10)	13,061
Balance at end of period	18,670	16,770	125,234	(7,722)	152,952

	Accumulated other comprehensive income				Non-controlling interests	Total net assets
	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income	Non-controlling interests	Total net assets
Balance at beginning of period	10,135	563	165	10,864	1,946	152,702
Changes during period
Dividends of surplus						(7,207)
Profit attributable to owners of parent						20,280
Purchase of treasury shares						(10)
Net changes in items other than shareholders' equity	6,768	1,132	636	8,537	493	9,031
Total changes during period	6,768	1,132	636	8,537	493	22,093
Balance at end of period	16,903	1,696	802	19,402	2,440	174,795

Fiscal year ended March 31, 2025

(Millions of yen)

	Shareholders' equity
	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
Balance at beginning of period	18,670	16,770	125,234	(7,722)	152,952
Changes during period
Dividends of surplus			(8,345)		(8,345)
Profit attributable to owners of parent			22,045		22,045
Purchase of treasury shares				(11)	(11)
Net changes in items other than shareholders' equity
Total changes during period	-	-	13,699	(11)	13,687
Balance at end of period	18,670	16,770	138,933	(7,734)	166,640

	Accumulated other comprehensive income				Non-controlling interests	Total net assets
	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income	Non-controlling interests	Total net assets
Balance at beginning of period	16,903	1,696	802	19,402	2,440	174,795
Changes during period
Dividends of surplus						(8,345)
Profit attributable to owners of parent						22,045
Purchase of treasury shares						(11)
Net changes in items other than shareholders' equity	(3,039)	1,210	928	(899)	(787)	(1,687)
Total changes during period	(3,039)	1,210	928	(899)	(787)	11,999
Balance at end of period	13,864	2,907	1,731	18,502	1,652	186,795

(4) Consolidated Statements of Cash Flows
		(Millions of yen)
	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025
Cash flows from operating activities
Profit before income taxes	29,557	30,479
Depreciation	6,532	6,789
Impairment losses	35	14
Loss (gain) on sales and retirement of non-current assets	167	160
Share of loss (profit) of entities accounted for using equity method	(510)	(1,399)
Increase (decrease) in allowance for doubtful accounts	13	68
Increase (decrease) in provision for bonuses	1,988	(1,794)
Increase (decrease) in retirement benefit liability	(218)	8
Interest and dividend income	(1,008)	(1,061)
Interest expenses	153	303
Loss (gain) on sales of investment securities	(3,817)	(4,050)
Loss (gain) on valuation of investment securities	451	15
Decrease (increase) in accounts receivable - trade, and contract assets	(7,861)	(6,429)
Decrease (increase) in inventories	(184)	(866)
Increase (decrease) in trade payables	2,213	(13,841)
Increase (decrease) in contract liabilities	(1,772)	33
Increase (decrease) in accrued consumption taxes	451	(121)
Other, net	2,401	1,417
Subtotal	28,591	9,726
Interest and dividends received	1,130	1,244
Interest paid	(152)	(284)
Income taxes paid	(8,217)	(9,704)
Net cash provided by (used in) operating activities	21,351	983
Cash flows from investing activities
Payments into time deposits	(1,164)	(794)
Proceeds from withdrawal of time deposits	1,821	944
Purchase of property, plant and equipment	(15,768)	(16,458)
Proceeds from sales of property, plant and equipment	263	434
Purchase of intangible assets	(1,290)	(2,367)
Purchase of investment securities	(1,471)	(207)
Proceeds from sales and redemption of investment securities	4,947	4,545
Other, net	414	(367)
Net cash provided by (used in) investing activities	(12,248)	(14,270)

(Millions of yen)

	Fiscal year ended		Fiscal year ended
	March 31, 2024		March 31, 2025
Cash flows from financing activities
Net increase (decrease) in short-term borrowings		(165)	(53)
Proceeds from long-term borrowings		1,020	15,200
Repayment of long-term borrowings		(1,194)	(201)
Proceeds from issuance of bonds		-	5,000
Redemption of bonds		-	(5,000)
Purchase of treasury shares		(1)	(1)
Dividends paid		(7,194)	(8,337)
Purchase of shares of subsidiaries not resulting in change - (6,068) in scope of consolidation
Proceeds from share issuance to non-controlling shareholders		33	-
Other, net	(697)		(747)
Net cash provided by (used in) financing activities	(8,200)		(209)
Effect of exchange rate change on cash and cash equivalents	313		691
Net increase (decrease) in cash and cash equivalents	1,216		(12,805)
Cash and cash equivalents at beginning of period	36,999		38,215
Cash and cash equivalents at end of period	38,215		25,410

(5) Notes to Consolidated Financial Statements

(Notes on going concern assumption) Not applicable.

(Important matters that form a basis for the preparation of the consolidated financial statements)

Scope of consolidation
1. Consolidated subsidiaries
  Number of consolidated subsidiaries: 32
  Names of major subsidiaries:
  Kansai Okamura Corporation, NS Okamura Corporation, Sanyo Okamura Corporation, Okamura Support and Service Corporation, Okamura (China) Co., Ltd., FujiSeiko Co., Ltd., SEC Co., Ltd., Hangzhou Okamura Transmission Co., Ltd., Siam Okamura International Co., Ltd., DB&B Holdings Pte. Ltd.
2. Unconsolidated subsidiaries
  Number of unconsolidated subsidiaries: 1
  Reason for exclusion from the scope of consolidation
  The unconsolidated subsidiary is a small company and the total amounts of its assets, net sales, profit (the proportion attributable to the Company's equity interest) and retained earnings (the proportion attributable to the Company's equity interest) do not materially affect the Company's consolidated financial statements.
Scope of application of the equity method
1. Unconsolidated subsidiaries accounted for using the equity method
  Number of unconsolidated subsidiaries accounted for using the equity method: 1
2. Affiliates accounted for using the equity method
  Number of affiliates accounted for using the equity method: 9
  Names of major affiliates accounted for using the equity method: Siam Okamura Steel Co., Ltd., Seiwa Business Co., Ltd.
3. Unconsolidated subsidiaries not accounted for using the equity method Not applicable.
4. Affiliates not accounted for using the equity method Not applicable.
5. For equity method affiliates with an annual accounts closing date that differs from the Company's consolidated closing date, the Company uses financial statements for each affiliate's fiscal year or financial statements based on provisional closing.

3. Annual accounts closing of consolidated subsidiaries and related matters

The annual accounts closing date for the Company's 19 overseas consolidated subsidiaries is December 31. As this is within three months of the Company's consolidated closing date, the Company prepares its consolidated financial statements based on the financial statements for each subsidiary's fiscal year. The necessary consolidation adjustments are made to material transactions that occur between each subsidiary's annual accounts closing date and the Company's consolidated closing date.

(Consolidated balance sheets)

*1: The accumulated depreciation on property, plant and equipment is as follows:

Previous fiscal year (Ended March 31, 2024)