Interim report
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Note: This document is a translation of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. Consolidated Financial Results for the Fiscal Year Ended December 31, 2025 [Japanese GAAP] February 12, 2026 Company name: SAKATA INX CORPORATION Stock exchange listing: Tokyo Code number: 4633 URL: https://www.inx.co.jp/english/ Representative: Yoshiaki Ueno Representative Director, President & CEO Contact: Takahiro Kiuchi General Manager, Finance & Accounting Div. Phone: +81-6-6447-5824 Scheduled date of annual general meeting of shareholders: March 26, 2026 Scheduled date of commencing dividend payments: March 27, 2026 Scheduled date of filing annual securities report: March 23, 2026 Availability of supplementary briefing material on annual financial results: Yes Schedule of annual financial results briefing session: Yes (For institutional investors and analysts) (Amounts of less than one million yen are rounded down) 1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2025 (January 1, 2025 to December 31, 2025) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Net income attributable to owners of parent Fiscal year ended Million yen % Million yen % Million yen % Million yen % December 31, 2025 257,668 4.9 15,226 15.7 15,364 19.2 11,609 28.9 December 31, 2024 245,570 7.5 13,161 15.0 12,893 (5.4) 9,006 20.6 (Note) Comprehensive income: Fiscal year ended December 31, 2025: ¥13,940 million [ (24.7) %] Fiscal year ended December 31, 2024: ¥18,515 million [ 27.8 %] Basic earnings per share Diluted earnings per share Rate of return on equity Ordinary income to total assets ratio Operating income to net sales ratio Fiscal year ended Yen Yen % % % December 31, 2025 235.26 – 10.0 6.9 5.9 December 31, 2024 180.64 – 8.5 6.2 5.4 (Note) Equity in earnings of associates: Fiscal year ended December 31, 2025: ¥631 million Fiscal year ended December 31, 2024: ¥874 million (2) Consolidated Financial Position Total assets Net assets Equity ratio Net assets per share As of Million yen Million yen % Yen December 31, 2025 225,864 126,519 52.8 2,425.44 December 31, 2024 221,470 119,221 50.7 2,264.08 (Note) Equity: As of December 31, 2025: ¥119,158 million As of December 31, 2024: ¥112,310 million (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of period Fiscal year ended Million yen Million yen Million yen Million yen December 31, 2025 17,005 (4,485) (9,975) 18,782 December 31, 2024 8,904 (14,846) 4,214 14,583
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2. Dividends Annual dividends per share Total dividends Payout ratio (consolidated) Dividends to net assets (consolidated) 1st quarter- end 2nd quarter- end 3rd quarter- end Year-end Total Fiscal year ended Yen Yen Yen Yen Yen Million yen % % December 31, 2024 – 25.00 – 45.00 70.00 3,486 38.8 3.3 December 31, 2025 – 45.00 – 50.00 95.00 4,689 40.4 4.1 Fiscal year ending December 31, 2026 (Forecast) – 50.00 – 50.00 100.00 41.3 3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2026 (January 1, 2026 to December 31, 2026) (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Net income attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 276,000 7.1 17,000 11.6 17,800 15.8 11,800 1.6 241.84 * Notes: (1) Changes in significant subsidiaries during the period under review: Yes Newly included: 2 companies (SAKATA Brand Solutions Co., Ltd.; SAKATA INX ASIA HOLDINGS SDN. BHD.) Excluded: – (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (Note) For the details, please refer to “3. Consolidated Financial Statements and Principal Notes, (5) Notes to consolidated financial statements, Changes in accounting policies” on page 15 of Attachments. (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): December 31, 2025: 54,172,361 shares December 31, 2024: 54,172,361 shares 2) Total number of treasury shares at the end of the period: December 31, 2025: 5,043,947 shares December 31, 2024: 4,567,137 shares 3) Average number of shares outstanding during the period: Fiscal Year ended December 31, 2025: 49,349,741 shares Fiscal Year ended December 31, 2024: 49,856,685 shares
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(Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2025 (January 1, 2025 to December 31, 2025) (1) Non-consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Net income Fiscal year ended Million yen % Million yen % Million yen % Million yen % December 31, 2025 66,681 (2.8) 555 (20.9) 5,188 14.0 5,829 32.3 December 31, 2024 68,613 (0.6) 702 (55.3) 4,552 35.0 4,405 94.4 Basic earnings per share Diluted earnings per share Fiscal year ended Yen Yen December 31, 2025 118.12 – December 31, 2024 88.36 – (2) Non-consolidated Financial Position Total assets Net assets Equity ratio Net assets per share As of Million yen Million yen % Yen December 31, 2025 97,656 54,734 56.0 1,114.11 December 31, 2024 101,406 54,992 54.2 1,108.60 (Note) Equity: As of December 31, 2025: ¥54,734 million As of December 31, 2024: ¥54,992 million * The consolidated financial results are not subject to audit conducted by certified public accountants or an audit firm. * Explanation of appropriate use of financial forecasts and other special notes Forward-looking statements contained in this document, including forecasts of business performance, are based on information currently available to the Company and on certain assumptions deemed reasonable by the Company, and are not intended as a guarantee of future results. Actual results may differ materially from such statements due to various factors. For information regarding the financial results forecast, please refer to “1. Overview of Operating Results, etc. (4) Outlook for the next fiscal year” on page 6 of Attachments.
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- 1 - Contents of Attachments 1. 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) Outlook for the next fiscal year 6 (5) Basic policy for distribution of profit and dividends for the current and next fiscal years 6 2. Basic Approach to the Selection of Accounting Standards 6 3. Consolidated Financial Statements and Principal Notes 7 (1) Consolidated balance sheets 7 (2) Consolidated statements of income and consolidated statements of comprehensive income 9 (3) Consolidated statements of changes in equity 11 (4) Consolidated statements of cash flows 13 (5) Notes to consolidated financial statements 15 Going concern assumption 15 Changes in accounting policies 15 Additional information 15 Consolidated statements of income 16 Segment information, etc. 17 Per share information 20 Significant subsequent events 20 * The Company plans to hold a briefing session for investors as follows. All materials to be distributed at the briefing session will be posted on the Company’s website on the same day. Financial results briefing session for institutional investors and securities analysts: Thursday, February 12, 2026
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- 2 - 1. Overview of Operating Results, etc. (1) Overview of operating results for the fiscal year under review 1) Overview of consolidated financial results During the fiscal year ended December 31, 2025 (the “fiscal year under review”), the global economy continued to face concerns about a potential economic slowdown, as heightened geopolitical risks, including the intensifying situation in the Middle East, remained elevated, and U.S. trade policies and the uncertainty surrounding the m rippled through the global economy. Meanwhile, easing inflationary pressures across countries and a recovery in personal consumption provided support, allowing the global economy as a whole to maintain solid growth. In the United States, personal consumption and capital investment remained cautious amid restrained corporate activity and uncertainty over the economic outlook stemming from trade polic y impacts. In addition, the pace of economic recovery slowed as the effects of tariffs gradually became evident in corporate earnings and price levels. In Europe, personal consumption recovered against a backdrop of improv ing income conditions and easing inflationary pressures, and while some weakness remained in parts of the manufacturing sector , a moderate recovery continued. In Asia, although economic growth in China remained sluggish due to stagnation in the real estate market, the overall economy remained solid. However, economic conditions varied by country within the region, with India and Vietnam performing strongly, while domestic demand in Thailand remained weak. In Japan, although persistently high price s, particularly for food products, weighed on consumption amid continued improvements in income conditions, the economy maintained a mod erate recovery trend, supported in part by a deceleration in the rate of price increases. Under these circumstances, this year is the second year of the Medium -term Management Plan 2026 (CCC -II), which is the phase of business growth, stronger earnings capabilities, to achieve the long -term strategic vision “SAKATA INX VISION 2030,” which is ta rgeted for the year 2030 and the Group has promoted aggressive expansion of sustainable products centered on environmentally friendly products, such as the BOTANICAL INK series. Particularly, in the packaging field, the Group continued to expand sales in growing regions where the middle class is expanding due to its population growth and economic development. Along with this, the Group promoted global management cooperation by enhancing and expanding strategic products for global accounts and streamlining purchasing, production and logistics through regional collaboration. In the Digital and Specialty Products business, the Group expanded sales of inkjet inks, in addition to existing products, in emerging markets of apparel, food, and home furnishings. Furthermore, the Group promoted sales expansion of high-quality products of image display materials. Net sales amounted to 257,668 million yen (up 4.9% YoY), reflecting strong sales performance in the Americas, relatively solid sales of the Digital and Specialty Products, and contributions from the U.S. subsidiary acquired in the fourth quarter of the previous fiscal year. In terms of profit, operating income amounted to 15,226 million yen (up 15.7% YoY). The increase was primarily driven by higher sales volume as well as continued improvement in profitability due to raw material prices remaining stable overseas, despite an increase in labor and other expenses. Ordinary income amounted to 15,364 million yen (up 19.2% YoY). Net income attributable to owners of parent amounted to 11,609 million yen (up 28.9% YoY), mainly due to the recording of gain on sale of investment securi ties resulting from the reduction of cross - shareholdings. (Reference) Average exchange rate of Japanese yen to the U.S. dollar during the period 1st quarter 2nd quarter 3rd quarter 4th quarter Fiscal year Fiscal year ended Yen Yen Yen Yen Yen December 31, 2025 152.60 144.59 147.48 154.15 149.71 December 31, 2024 148.61 155.88 149.38 152.44 151.58 (Note) The average exchange rate during the fiscal year lists the simple average rate from January to December.
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- 3 - 2) Overview of operating results by segment The operating results by segment are as follows. Beginning with the fiscal year under review, the Company has revised the allocation criteria for corporate expenses to more appropriately reflect the performance of each reportable segment. Accordingly, the segment information for the previous fiscal year has been restated based on the revised allocation method. (Million yen, unless otherwise stated) Net sales Operating income Previous period Current period Change Change [%] Real* [%] Previous period Current period Change Change [%] Printing Inks and Graphic Arts Materials (Japan) 52,806 50,248 (2,558) (4.8) (4.8) 927 1,436 508 54.9 Printing Inks (Asia) 58,281 56,173 (2,108) (3.6) (1.7) 5,747 6,913 1,166 20.3 Printing Inks (Americas) 87,863 101,860 13,997 15.9 17.5 4,474 5,285 810 18.1 Printing Inks (Europe) 21,447 21,578 131 0.6 (2.5) 66 64 (2) (3.0) Digital & Specialty Products 19,405 20,375 969 5.0 4.8 2,666 2,429 (236) (8.9) Reportable Segment total 239,805 250,236 10,431 4.3 5.1 13,881 16,129 2,247 16.2 Other 12,731 14,031 1,299 10.2 10.2 180 270 90 50.0 Adjustments (6,965) (6,599) 366 – – (900) (1,172) (272) – Total 245,570 257,668 12,097 4.9 5.7 13,161 15,226 2,064 15.7 * “Real” represents a real percentage change excluding the impact of foreign currency translation of overseas consolidated subsidiaries Printing Inks and Graphic Arts Materials (Japan) Amid widespread price increases across many items, including daily necessities, food, and beverages, subdued consumer sentiment persisted as households continued to adopt a more cost-conscious spending stance. In the packaging-related business, the sales of both gravure inks and flexo inks exceeded those of the previous fiscal year although they remained somewhat sluggish. In the printing information-related business, sales declined year on year, reflecting not only the structural contraction of the market caused by digitalization but also the impact of reducing unprofitable items in offset inks to improve profitability. Amid these circumstances, the sales of printing inks as a whole exceeded those for the previous fiscal year thanks to the effect of selling price revisions, despite a decrease in sales volume. The graphic arts materials saw a significant decline in the sales of materials for printmaking from the previous fiscal year, due in part to the reduction of unprofitable items. As a result, net sales amounted to 50,248 million yen (down 4.8% YoY). In terms of profit, despite an increase in personnel expenses, operating income amounted to 1,436 million yen (up 54.9% YoY), reflecting improved profitability mainly due to the effects of selling price revisions. Printing Inks (Asia) As the impact of U.S. trade policies dampens economic growth, leading to uneven economic performance across the region, sales of packaging-related gravure inks, which are the Group’s mainstay products, remained relatively solid in Vietnam. However, overall growth was somewhat sluggish. In the printing information-related business, sales were strong in India. Net sales amounted to 56,173 million yen (down 3.6% YoY), primarily due to somewhat sluggish sales in the first half, the impact of the exclusion of a subsidiary in China from consolidation due to transfer of interests in the second quarter of the previous fiscal year, and the impact of foreign exchange translation effects. In terms of profit, operating income amounted to 6,913 million yen (up 20.3% YoY), primarily due to the stable prices of raw materials as well as the containment of cost increases, despite the impact of the exclusion from consolidation.
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- 4 - Printing Inks (Americas) With the impact of U.S. trade policy remaining limited, sales of flexo inks and gravure inks in the mainstay packaging-related business remained strong due to continued gradual recovery in demand in North America as well as sales expansion in South America including Brazil. The sales of metal inks were strong, backed by a continued expansion of demand for aluminum cans from the perspective of environmental impact, along with steady sales ex pansion in South America. The sales of offset inks, which are relate d to printing information, exceeded those of the previous fiscal year primarily due to the strong sales of UV inks, despite the structural contraction of the market. Net sales amounted to 101,860 million yen (up 15.9% YoY) due to the growing sales volume, the strong performance of the U.S. subsidiary acquired in the fourth quarter of the previous fiscal year, and the effects of selling price revisions, including adjustments to reflect tariff-related costs, despite the impact of foreign exchange translation. In terms of profit, operating income amounted to 5,285 million yen (up 18.1% YoY), primarily due to the growth in sales volume , the effects of selling price revisions, and contributions from the new consolidation, despite an increase in personnel and other expenses. Printing Inks (Europe) In the packaging-related business, sales slightly dropped in the second quarter but remained relatively firm. Sales were strong in metal inks, particularly for major customers. Net sales amounted to 21,578 million yen (up 0.6% YoY). While overall sales were affected by a slight decline in the second quarter, the Europe segment, unlike the Asia and Americas segments, benefited from foreign exchange translation effects resulting from the appreciation of local currencies, among other factors. In terms of profit, operating income amounted to 64 million yen (down 3.0% YoY), primarily due to somewhat sluggish sales and the absence of the impact from the special demand for certain products in the first quarter of the previous fiscal year, despite the stable prices of raw materials. Digital and Specialty Products The sales of inkjet inks exceeded those of the previous fiscal year, supported by steady demand. The sales of pigment dispersions for color filters also exceeded the previous fiscal year’s level, reflecting a recovery in sales driven by improving operating rates at panel manufacturers. The sales of toner exceeded those of the previous fiscal year primarily due to strong sales expansion overseas. As a result of these factors, net sales amounted to 20,375 million yen (up 5.0% YoY). In terms of profit, although sales increased, operating income amounted to 2,429 million yen (down 8.9% YoY), primarily due to an increase in expenses. (2) Overview of financial position for the fiscal year under review Total assets at the end of the fiscal year under review increased 4,394 million yen (2.0%) year on year to 225,864 million yen. This was mainly due to increases in cash and deposits and property, plant and equipment, despite decreases in notes and accounts receivable – trade, the sale of investment securities in line with the policy to reduce cross-shareholdings, and the impact of foreign exchange translation resulting from the appreciation of the yen against foreign currencies compared with the end of the previous fiscal year. Liabilities decreased 2,904 million yen (2.8%) year on year to 99,344 million yen. This was mainly due to decreases in loans payable and notes and accounts payable – trade, as well as the impact of foreign exchange translation. Net assets increased 7,298 million yen (6.1%) year on year to 126,519 million yen, primarily due to increases in retained earnings and foreign currency translation adjustments.
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- 5 - (3) Overview of cash flows for the fiscal year under review The following is a summary of cash flows for the fiscal year under review. Net cash provided by operating activities totaled 17,005 million yen. This was mainly due to income before income taxes and depreciation, which were partially offset by an increase in working capital and payments of income taxes. Compared to the previous fiscal year, net cash provided by operating activities increased by 8,101 million yen, mainly due to higher income before income taxes and favorable changes in working capital. Net cash used in investing activities totaled 4,485 million yen (compared with 14,846 million yen used in the previous fiscal year). This was mainly due to purchase of property, plant and equipment, partially offset by proceeds from sale of investment securities. The year-on-year decrease in net cash used was mainly attributable to increased proceeds from sale of investment securities and the absence of payments for business acquisitions recorded in the previous fiscal year. Net cash used in financing activities totaled 9,975 million yen (compared with 4,214 million yen provided in the previous fiscal year). This was mainly due to a decrease in loans payable, cash dividends paid, and purchase of treasury shares. The shift from net cash provided in the previous fiscal year to net cash used in the current fiscal year was mainly attributable to a decrease in loans payable and an increase in cash dividends paid. In addition, together with 128 million yen recorded as an increase in cash and cash equivalents resulting from change of scope of consolidation, cash and cash equivalents at the end of the fiscal year under review amounted to 18,782 million yen, an increase of 4,198 million yen compared to the end of the previous fiscal year. Reference: Cash flow indicators FY12/21 FY12/22 FY12/23 FY12/24 FY12/25 Equity ratio (%) 51.8 48.6 50.9 50.7 52.8 Equity ratio based on market value (%) 34.8 29.6 35.0 39.1 51.5 Interest-bearing debt to cash flow ratio (years) 2.4 5.6 1.7 4.1 2.0 Interest coverage ratio (times) 32.4 9.0 20.3 10.9 16.0 Notes: Equity ratio: (Shareholders’ equity + Accumulated other comprehensive income) / Total assets Equity ratio based on market value: Market capitalization / Total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows from operating activities Interest coverage ratio: Cash flows from operating activities / Interest payments 1. All indicators are calculated based on consolidated financial data. 2. Market capitalization is calculated by multiplying the closing share price at the end of the period by the number of shares outstanding at the end of the period, excluding treasury shares. 3. Cash flows from operating activities are based on cash flows provided by operating activities in the consolidated statement of cash flows. Interest-bearing debt is calculated using total loans payable on the consolidated balance sheets that incur interest. For interest payments, the amount of interest expenses paid in the consolidated statements of cash flows is used.
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- 6 - (4) Outlook for the next fiscal year The Group foresees that in the printing ink business, demand will increase in the medium to long term for inks for packages, which are the Group’s mainstay products, including environmentally-friendly products, although demand for products tends to decrease in the printing information-related business due to market contraction caused by digitization in Japan, the Americas, and Europe. Under such circumstances, the Group formulated a long-term vision, SAKATA INX VISION 2030, in 2021, with the goal of achieving it by 2030, in order to respond to changes in the business environment. The Group is currently in the second phase of this initiative under the Medium-term Management Plan 2026 (CCC-II), with FY2026 positioned as the final year of the plan. CCC-II is positioned as the “Business growth, stronger earnings capabilities” phase to accomplish the long-term vision. In accordance with the strategic direction in this long-term vision, the Group has set business expansion and the strengthening of earnings capabilities as key themes and is steadily advancing initiatives across the Group based on the “Growing the Printing inks / Digital and Specialty product businesses,” “Tackling new business areas,” and “Enhancing ESG and sustainability initiatives with an emphasis on the environment and local communities.” The global economy is expected to continue a moderate recovery in the next fiscal year, although uncertainties such as geopolitical risks and trends in U.S. policy may weigh on growth. The moderate recovery in the global economy is also expected to contribute to the stabilization of the demand environment in the Group’s overseas markets. Based on these assumptions, the Group expects an increase in revenue in its consolidated earnings for ecast for the next fiscal year, as the Group will continue to promote the expansion of sales of printing inks, primarily environmentally friendly products, across all regions, while also continuing to focus on expanding sales of functional materials. In te rms of profit, despite an expected increase in expenses, particularly personnel expenses, the Group expects operating income and income at each subsequent level to increase, supported by Group-wide efforts to expand sales and the assumption that raw material prices will remain stable. Based on the above, the Group forecasts net sales of 276,000 million yen, operating income of 17,000 million yen, ordinary income of 17,800 million yen, and net income attributable to owners of parent of 11,800 million yen. As an assumption, the exchange rate for the U.S. dollar, which is particularly susceptible to foreign exchange translation effects on the revenues and expenses of overseas consolidated subsidiaries, is set at 150.00 yen per U.S. dollar. (5) Basic policy for distribution of profit and dividends for the current and next fiscal years The Company regards the stable return of profits to shareholders as one of the important management priorities, and proceeds with the policy of active and stable dividends and flexible share buybacks, while comprehensively considering financial performance, investment plans, and the business environment. In accordance with this policy, the Group aims to achieve a total payout ratio of 50% or more during the period of Medium-term Management Plan 2026 (CCC-II). Internal reserves are earmarked for capital requirements for long-term oriented investments primarily on R&D and production facilities of the Group. We will proactively respond to trends in each business field, strengthen our competitiveness, and improve profitability, which we believe leads to higher corporate value. Based on the aforementioned policy, the Company plans to pay a year-end dividend of 50 yen per share for the fiscal year under review. Accordingly, the annual dividend will be 95 yen per share including the interim dividend. The planned annual dividend for the next fiscal year is 100 yen per share, comprising an interim dividend of 50 yen and a year-end dividend of 50 yen. 2. Basic Approach to the Selection of Accounting Standards In consideration of the comparability with other companies and their reporting periods of financial statements, the Group for the time being has prepared consolidated financial statements based on generally accepted accounting principles in Japan. In the future, we will consider applying International Financial Reporting Standards in consideration of trends in capital markets and requests of stakeholders including shareholders.
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- 7 - 3. Consolidated Financial Statements and Principal Notes (1) Consolidated balance sheets (Million yen) As of December 31, 2024 As of December 31, 2025 Assets Current assets Cash and deposits 15,717 20,595 Notes and accounts receivable – trade 64,151 62,526 Merchandise and finished goods 19,302 19,850 Work in process 1,664 1,700 Raw materials and supplies 18,839 18,140 Other 3,751 5,074 Allowance for doubtful accounts (665) (618) Total current assets 122,761 127,269 Non-current assets Property, plant and equipment Buildings and structures, net 21,180 22,659 Machinery, equipment and vehicles, net 11,830 12,383 Land 10,334 10,389 Leased assets, net 199 156 Construction in progress 4,991 5,115 Other, net 5,472 6,630 Total property, plant and equipment 54,009 57,334 Intangible assets Goodwill 1,482 1,315 Other 5,639 5,837 Total intangible assets 7,122 7,152 Investments and other assets Investment securities 32,833 30,173 Long-term loans receivable 29 23 Retirement benefit asset 1,127 1,210 Deferred tax assets 1,854 1,387 Other 1,829 1,416 Allowance for doubtful accounts (97) (104) Total investments and other assets 37,576 34,107 Total non-current assets 98,708 98,594 Total assets 221,470 225,864
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- 8 - (Million yen) As of December 31, 2024 As of December 31, 2025 Liabilities Current liabilities Notes and accounts payable – trade 25,644 25,437 Electronically recorded obligations – operating 14,215 11,833 Short-term loans payable 9,433 7,098 Current portion of long-term loans payable 4,817 2,903 Current portion of bonds payable – 1,000 Lease obligations 834 905 Accrued expenses 6,985 7,688 Income taxes payable 467 1,133 Provision for bonuses 760 766 Other 3,080 3,509 Total current liabilities 66,238 62,275 Non-current liabilities Bonds payable 1,000 – Long-term loans payable 17,748 18,895 Lease obligations 2,411 2,797 Deferred tax liabilities 5,723 5,994 Retirement benefit liability 4,727 4,704 Asset retirement obligations 74 76 Other 4,323 4,600 Total non-current liabilities 36,009 37,068 Total liabilities 102,248 99,344 Net assets Shareholders’ equity Capital stock 7,472 7,472 Capital surplus 5,814 5,828 Retained earnings 84,496 91,590 Treasury shares (4,930) (5,912) Total shareholders’ equity 92,853 98,979 Accumulated other comprehensive income Valuation difference on available-for-sale securities 2,313 1,582 Deferred gains or losses on hedges (0) 1 Foreign currency translation adjustment 16,838 18,203 Remeasurements of defined benefit plans 304 390 Total accumulated other comprehensive income 19,456 20,178 Non-controlling interests 6,911 7,361 Total net assets 119,221 126,519 Total liabilities and net assets 221,470 225,864
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- 9 - (2) Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income (Million yen) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Net sales 245,570 257,668 Cost of sales 186,937 193,234 Gross profit 58,633 64,433 Selling, general and administrative expenses 45,471 49,206 Operating income 13,161 15,226 Non-operating income Interest income 310 249 Dividend income 158 185 Foreign exchange gains – 130 Real estate rent 181 186 Equity in earnings of associates 874 631 Other 396 350 Total non-operating income 1,920 1,733 Non-operating expenses Interest expenses 811 1,065 Foreign exchange losses 1,023 – Other 354 530 Total non-operating expenses 2,189 1,595 Ordinary income 12,893 15,364 Extraordinary income Gain on sale of investment securities 32 2,991 Gain on sale of investments in capital of subsidiaries and associates 605 – Subsidy income 70 – Total extraordinary income 709 2,991 Extraordinary losses Impairment losses – 185 Loss on retirement of non-current assets 208 27 Loss on sale of investment securities – 3 Loss on valuation of investment securities 99 600 Business restructuring expenses – 268 Head office relocation expenses – 111 Total extraordinary losses 308 1,197 Income before income taxes 13,293 17,158 Income taxes – current 3,255 3,268 Income taxes – deferred (204) 731 Total income taxes 3,050 4,000 Net income 10,243 13,158 Net income attributable to non-controlling interests 1,236 1,549 Net income attributable to owners of parent 9,006 11,609
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- 10 - Consolidated statements of comprehensive income (Million yen) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Net income 10,243 13,158 Other comprehensive income Valuation difference on available-for-sale securities 226 (722) Deferred gains or losses on hedges (2) 1 Foreign currency translation adjustment 5,006 861 Remeasurements of defined benefit plans, net of tax 727 36 Share of other comprehensive income of associates accounted for using equity method 2,313 605 Total other comprehensive income 8,272 782 Comprehensive income 18,515 13,940 Comprehensive income attributable to: Owners of parent 16,551 12,331 Non-controlling interests 1,963 1,609
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- 11 - (3) Consolidated statements of changes in equity Fiscal year ended December 31, 2024 (Million yen) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares Total Shareholders’ equity Balance at beginning of current period 7,472 5,673 77,740 (3,999) 86,886 Changes of items during the period Dividends of surplus (2,249) (2,249) Net income attributable to owners of parent 9,006 9,006 Purchase of treasury shares (1,000) (1,000) Disposal of treasury shares 72 137 210 Purchase of treasury shares by stock benefit trust (204) (204) Disposal of treasury shares by stock benefit trust 68 136 204 Net changes of items other than shareholders’ equity Total changes of items during period – 141 6,756 (930) 5,967 Balance at end of current period 7,472 5,814 84,496 (4,930) 92,853 Accumulated other comprehensive income Non- controlling interests Total net assets Valuation difference on available-for- sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of current period 2,151 2 10,169 (411) 11,911 6,853 105,651 Changes of items during the period Dividends of surplus (2,249) Net income attributable to owners of parent 9,006 Purchase of treasury shares (1,000) Disposal of treasury shares 210 Purchase of treasury shares by stock benefit trust (204) Disposal of treasury shares by stock benefit trust 204 Net changes of items other than shareholders’ equity 162 (2) 6,669 716 7,545 57 7,602 Total changes of items during period 162 (2) 6,669 716 7,545 57 13,569 Balance at end of current period 2,313 (0) 16,838 304 19,456 6,911 119,221
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- 12 - Fiscal year ended December 31, 2025 (Million yen) Shareholders' equity Capital stock Capital surplus Retained earnings Treasury shares Total shareholders' equity Balance at beginning of current period 7,472 5,814 84,496 (4,930) 92,853 Changes of items during the period Dividends of surplus (4,464) (4,464) Net income attributable to owners of parent 11,609 11,609 Purchase of treasury shares (1,000) (1,000) Disposal of treasury shares 14 17 31 Disposal of treasury shares by stock benefit trust 1 1 Change in scope of consolidation (51) (51) Net changes of items other than shareholders’ equity Total changes of items during period 14 7,093 (981) 6,126 Balance at end of current period 7,472 5,828 91,590 (5,912) 98,979 Accumulated other comprehensive income Non- controlling interests Total net assets Valuation difference on available-for- sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at beginning of current period 2,313 (0) 16,838 304 19,456 6,911 119,221 Changes of items during the period Dividends of surplus (4,464) Net income attributable to owners of parent 11,609 Purchase of treasury shares (1,000) Disposal of treasury shares 31 Disposal of treasury shares by stock benefit trust 1 Change in scope of consolidation (51) Net changes of items other than shareholders’ equity (730) 1 1,365 85 721 450 1,172 Total changes of items during period (730) 1 1,365 85 721 450 7,298 Balance at end of current period 1,582 1 18,203 390 20,178 7,361 126,519
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- 13 - (4) Consolidated statements of cash flows (Million yen) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Cash flows from operating activities Income before income taxes 13,293 17,158 Depreciation and amortization 5,515 6,057 Impairment losses – 185 Amortization of goodwill 138 237 Increase (decrease) in allowance for doubtful accounts (586) (42) Decrease (increase) in retirement benefit asset (787) (82) Increase (decrease) in retirement benefit liability (22) 10 Increase (decrease) in provision for bonuses 98 4 Gain on sale of investments in capital of subsidiaries and associates (605) – Interest and dividend income (468) (434) Interest expenses 811 1,065 Equity in losses (earnings) of associates (874) (631) Loss (gain) on sales of investment securities (32) (2,987) Loss (gain) on valuation of investment securities 99 600 Loss on retirement of non-current assets 208 27 Subsidy income (70) – Business restructuring expenses – 268 Head office relocation expenses – 111 Decrease (increase) in notes and accounts receivable – trade (2,501) 1,692 Decrease (increase) in inventories (2,623) 170 Increase (decrease) in notes and accounts payable – trade including electronically recorded obligations - operating (1,805) (2,845) Other, net 3,105 (1,031) Subtotal 12,892 19,535 Interest and dividend income received 1,065 958 Interest expenses paid (815) (1,063) Proceeds from subsidy income 70 – Income taxes paid (4,309) (2,424) Net cash provided by (used in) operating activities 8,904 17,005 Cash flows from investing activities Purchase of property, plant and equipment (6,924) (6,923) Proceeds from sale of property, plant and equipment 283 51 Purchase of intangible assets (491) (1,219) Purchase of investment securities (519) (735) Proceeds from sale of investment securities 856 5,000 Payments of loans receivable (53) (50) Collection of loans receivable 58 56 Payments for acquisition of businesses (8,243) – Proceeds from sale of investments in capital of subsidiaries resulting in change in scope of consolidation 458 – Other, net (269) (664) Net cash provided by (used in) investing activities (14,846) (4,485)
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- 14 - (Million yen) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Cash flows from financing activities Net increase (decrease) in short-term loans payable 1,049 (2,348) Proceeds from long-term loans payable 11,311 4,222 Repayments of long-term loans payable (3,699) (4,878) Cash dividends paid (2,249) (4,464) Dividends paid to non-controlling interests (891) (1,159) Purchase of treasury shares (1,204) (1,000) Proceeds from sale of treasury shares 204 0 Other, net (305) (346) Net cash provided by (used in) financing activities 4,214 (9,975) Effect of exchange rate change on cash and cash equivalents 92 1,525 Net increase (decrease) in cash and cash equivalents (1,635) 4,069 Cash and cash equivalents at beginning of period 16,218 14,583 Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation – 128 Cash and cash equivalents at end of period 14,583 18,782
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- 15 - (5) Notes to consolidated financial statements Going concern assumption Not applicable Changes in accounting policies Application of accounting standard for current income taxes The "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022; hereinafter the "Revised Accounting Standard 2022"), etc. has been applied since the beginning of the fiscal year ended December 31, 2025. Revisions concerning the categories in which current income taxes should be recorded (taxes on other comprehensive income) are subject to the transitional treatment set forth in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment set forth in the proviso of paragraph 65-2 (2) of the "Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022; hereinafter, "Revised Guidance 2022"). The change in accounting policies had no impact on the consolidated financial statements. With regard to the revisions related to changes in the accounting treatment for consolidated financial statements when gains/losses on sale of shares in subsidiaries, etc. resulting from transactions between consolidated companies are deferred for tax purposes, the Company has applied the Revised Guidance 2022 from the beginning of the fiscal year ended December 31, 2025. The change in accounting policies has been applied retrospectively, and the consolidated financial statements for the previous fiscal year have been restated accordingly. However, the change in accounting policies had no impact on the consolidated financial statements for the previous fiscal year. Additional information Employee stock ownership plan (1) Outline of the plan The Company resolved at the meeting of the Board of Directors held on November 11, 2024 to introduce an employee stock ownership plan (hereinafter the “Plan”) for employees of the Company and its subsidiaries (hereinafter the “Employees”), aiming to enhance the Company's corporate value over the medium to long term, and the Plan was implemented on November 28, 2024. One of the initiatives in our Medium-term Management Plan is human capital policy, which is the foundation for achieving sustained development. As part of this policy, we intend to foster a sense of participation in management among the Employees, which will lead to the sustained enhancement of the Group's corporate value. Since the Employees can receive economic benefits from an increase in the Company's share price, the plan is expected to encourage them to perform their duties with a keen awareness of the share price as well as to motivate them to strive harder. The Plan delivers the Company's shares acquired as an incentive plan for the Employees by the Employee Stock Ownership Plan Trust to the Employees who fulfill certain requirements based on the terms set forth in the Plan. (2) The Company's shares remaining in the trust The Company's shares remaining in the trust are recorded as treasury shares in net assets based on their book value in the trust (excluding the amount of incidental expenses). The book value and number of such treasury shares were 204 million yen and 128,000 shares as of December 31, 2024, and 202 million yen and 126,968 shares as of December 31, 2025, respectively. (3) Scope of recipients of beneficiary rights and other rights under the Plan The Employees who satisfy the conditions for stock grant
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- 16 - Consolidated statements of income Restructuring Cost Fiscal year ended December 31, 2024 (From January 1, 2024 to December 31, 2024) Not applicable Fiscal year ended December 31, 2025 (From January 1, 2025 to December 31, 2025) The Group has commenced restructuring its supply system for the printing inks business in Asia to realize more efficient business operations. Consequently, the Group has recorded an inventory write-down for certain inventory items at its China sites for which expected sales and usage have declined. Impairment losses Fiscal year ended December 31, 2024 (From January 1, 2024 to December 31, 2024) Not applicable Fiscal year ended December 31, 2025 (From January 1, 2025 to December 31, 2025) The Group recorded impairment losses on the following asset group. (Million yen) Location Use Item Amount SAKATA INX (ZHONGSHAN) CORP (Guangdong Province, China) Business assets Machinery, equipment and vehicles 116 Buildings and structures 30 Other 38 Total 185 As a general rule, the Group groups business assets based on business segments in accordance with management accounting classifications; however, for the assets of certain consolidated subsidiaries, grouping is performed on a company-by-company basis. The Group recorded impairment losses on the following asset group. For the assets shown above, operating profitability has been consistently negative due to a deterioration in the business environment and market uncertainty caused by the economic slowdown in China, as well as intensifying competition with peers and increased cost burdens, including rising labor costs. Due to these factors, indications of impairment were identified. After assessing future recoverability, the Group determined that the carrying amount was no longer expected to be recoverable. Accordingly, the carrying amount was reduced to its recoverable amount, and the resulting decrease was recognized as an impairment loss. The recoverable amount is measured at net selling price, which was determined based on the estimated selling price and other relevant factors.
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- 17 - Segment information, etc. 1. Overview of reportable segments (1) Method of determining reportable segments The Group’s reportable segments are components of the Group for which separate financial information is available and which are subject to periodic review by the Company's board of directors to determine the allocation of management resources and evaluate performance. (2) Type of products and services belonging to each reportable segment The Group mainly produces and sells printing inks. In Japan, the Company's multiple business divisions are responsible for the production and sale of printing inks; overseas, multiple local subsidiaries are responsible for the production and sale of printing inks in Asia, the Americas, and Europe, respectively. Each local subsidiary is an independent management unit that formulates comprehensive strategies and conducts business activities in the country where it is located and its surrounding areas. In Japan, in addition to the printing inks business, the Group purchases and sells graphic arts materials. Moreover, we have established several independent business segments for functional materials such as inkjet inks, toners, and pigment dispersion solutions that apply and expand the pigment dispersion and other fundamental technologies developed in the printing inks business, and we are leading the entire group in our efforts to expand our earnings base. The printing inks business, which is our core business, consists of regional segments based on production and sales structure. Therefore, the Group has four reportable segments: Printing Inks and Graphic Arts Materials (Japan), Printing Inks (Asia), Printing Inks (Americas), and Printing Inks (Europe). In addition, Digital and Specialty Products, in which the entire Group is expanding its business, is also designated as a reportable segment, making a total of five reportable segments. 2. Determination method of net sales, profit or loss, assets and other items by reportable segment The accounting method of the reportable business segments is in accordance with the accounting policies adopted to prepare the consolidated financial statements. Profits of reportable segments are based on operating income. Intersegment sales and transfers are based on prevailing market prices. Beginning with the fiscal year ended December 31, 2025, the Company has revised the allocation criteria for corporate expenses to more appropriately reflect the performance of each reportable segment. Accordingly, the segment information for the previous fiscal year has been restated based on the revised allocation method. Reportable segment Major products Printing Inks and Graphic Arts Materials (Japan) Flexo inks, gravure inks, newspaper inks, offset inks, print-related materials, print-related equipment Printing Inks (Asia) Flexo inks, gravure inks, metal decorating inks, newspaper inks, offset inks Printing Inks (Americas) Flexo inks, gravure inks, metal decorating inks, offset inks Printing Inks (Europe) Flexo inks, gravure inks, metal decorating inks, offset inks Digital and Specialty Products Inkjet inks, toners, pigment dispersion for color filter, functional coatings
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- 18 - 3. Information and revenue breakdown of sales, profit or loss, assets, liabilities, and other items by reportable segment I Fiscal year ended December 31, 2024 (From January 1, 2024 to December 31, 2024) (Million yen) Reportable segment Other (*1) Total Adjustment (*2) Amount recorded in consolidated financial statements (*3) Printing Inks and Graphic Arts Materials (Japan) Printing Inks (Asia) Printing Inks (Americas) Printing Inks (Europe) Digital and Specialty Products Total Revenues Revenues from contracts with customers 51,732 58,082 86,953 20,386 19,369 236,525 9,045 245,570 – 245,570 Other revenues – – – – – – – – – – Sales to external customers 51,732 58,082 86,953 20,386 19,369 236,525 9,045 245,570 – 245,570 Intersegment sales and transfers 1,074 198 909 1,060 36 3,279 3,685 6,965 (6,965) – Total 52,806 58,281 87,863 21,447 19,405 239,805 12,731 252,536 (6,965) 245,570 Segment income 927 5,747 4,474 66 2,666 13,881 180 14,061 (900) 13,161 Segment assets 44,117 49,427 63,504 16,208 12,466 185,724 6,090 191,814 29,655 221,470 Other items Depreciation and amortization 1,691 1,188 1,460 435 669 5,445 51 5,497 17 5,515 Amortization of goodwill – – 135 2 – 138 – 138 – 138 Increase in property, plant and equipment and intangible assets 1,600 893 5,672 631 923 9,721 19 9,740 3 9,744 (Notes) 1. The “Other” is a business segment not included in the reportable segments and contains the chemical products business and the display service business in Japan. 2. The details of adjustments are as follows. (1) The adjustment of negative 900 million yen to segment income (loss) includes elimination of intersegment transactions of 142 million yen and corporate expenses not allocated to each reportable segment of negative 1,042 million yen. Corporate expenses mainly consist of general and administrative expenses and research and development expenses that are not attributable to any reportable segment. (2) The adjustment of 29,655 million yen to segment assets includes elimination of intersegment transactions of negative 6,078 million yen and corporate assets not allocated to any reportable segment of 35,734 million yen. Corporate assets mainly consist of investment securities held for common company-wide purposes. (3) The adjustment of 17 million yen to depreciation and amortization mainly relates to corporate assets that are not allocated to each reportable segment. (4) The adjustment of 3 million yen to increase in property, plant and equipment and intangible assets is mainly related to corporate assets that are not allocated to each reportable segment. 3. Segment income (loss) is adjusted with operating income in the consolidated statements of income.
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- 19 - II Fiscal year ended December 31, 2025 (From January 1, 2025 to December 31, 2025) (Million yen) Reportable segment Other (*1) Total Adjustment (*2) Amount recorded in consolidated financial statements (*3) Printing Inks and Graphic Arts Materials (Japan) Printing Inks (Asia) Printing Inks (Americas) Printing Inks (Europe) Digital and Specialty Products Total Revenues Revenues from contracts with customers 49,318 56,008 101,117 20,861 20,331 247,638 10,029 257,668 – 257,668 Other revenues – – – – – – – – – – Sales to external customers 49,318 56,008 101,117 20,861 20,331 247,638 10,029 257,668 – 257,668 Intersegment sales and transfers 929 164 742 716 43 2,597 4,001 6,599 (6,599) – Total 50,248 56,173 101,860 21,578 20,375 250,236 14,031 264,267 (6,599) 257,668 Segment income 1,436 6,913 5,285 64 2,429 16,129 270 16,399 (1,172) 15,226 Segment assets 40,871 51,344 66,372 18,174 12,624 189,387 7,286 196,673 29,190 225,864 Other items Depreciation and amortization 1,322 1,128 1,310 397 640 4,799 50 4,850 17 4,868 Amortization of goodwill – – 116 2 – 118 – 118 – 118 Increase in property, plant and equipment and intangible assets 2,153 1,655 1,964 191 530 6,495 10 6,506 4 6,510 (Notes) 1. The “Other” is a business segment not included in the reportable segments and contains the chemical products business, the display service business, and the brand protection solution business in Japan. 2. The details of adjustments are as follows. (1) The adjustment of negative 1,172 million yen to segment income includes elimination of intersegment transactions of 130 million yen and corporate expenses not allocated to each reportable segment of negative 1,303 million yen. Corporate expenses mainly consist of general and administrative expenses and research and development expenses that are not attributable to any reportable segment. (2) The adjustment of 29,190 million yen to segment assets includes elimination of intersegment transactions of negative 6,380 million yen and corporate assets not allocated to any reportable segment of 35,371 million yen. Corporate assets mainly consist of investment securities held for company-wide common purposes. (3) The adjustment of 17 million yen to depreciation and amortization mainly relates to corporate assets that are not allocated to each reportable segment. (4) The adjustment of 4 million yen to increase in property, plant and equipment and intangible assets is mainly related to corporate assets that are not allocated to each reportable segment. 3. Segment income is adjusted with operating income in the consolidated statements of income. 4. Information on Impairment Losses on Non-current Assets by Reportable Segment In the "Printing Inks (Asia)" segment, an impairment loss on property, plant and equipment of 185 million yen was recorded as an extraordinary loss.
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- 20 - Per share information Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Net assets per share (yen) 2,264.08 2,425.44 Basic earnings per share (yen) 180.64 235.26 (Notes) 1. Diluted earnings per share is not presented as the Company had no potential shares. 2. Basis for calculation of basic earnings per share is as follows: (Million yen, unless otherwise stated) Item Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Net income attributable to owners of parent 9,006 11,609 Amount not attributable to common shareholders – – Net income attributable to common shareholders of parent 9,006 11,609 Average number of common shares outstanding during the period (thousand shares) 49,856 49,349 3. The number of treasury shares, which is the basis for the determination of net assets per share and basic earnings per share, includes the Company's shares held by the ESOP Trust Account. For the fiscal year ended December 31, 2024, the number of the Company's shares held by the Trust at the end of the period and the average number of shares during the period were 128,000 shares and 9,846 shares, respectively. For the fiscal year ended December 31, 2025, the number of the Company's shares held by the Trust at the end of the period and the average number of shares during the period were 126,968 shares and 127,669 shares, respectively. Significant subsequent events Not applicable
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1 | 3 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. February 20, 2026 Company SAKATA INX CORPORATION Representative Yoshiaki Ueno, Representative Director, President & CEO Securities code 4633, TSE Prime Market Contact Tsutomu Katayama, General Manager, Corporate Communications Department Telephone +81-3-5689-6601 (Corrections) Consolidated Financial Results for the Fiscal Year Ended December 31, 2025[Japanese GAAP] SAKATA INX CORPORATION hereby announces that there have been corrections made to the above - mentioned disclosure material released on February 12, 2026, at 3:00 p.m. (JST). 1. Reason for corrections Following the publication of the “Consolidated Financial Results for the Fiscal Year Ended December 2025 [Japanese GAAP]” it has been discovered that certain portions of the disclosed content contain errors. This document corrects those errors. 2. Details of corrections (Corrections are indicated with underlining.) Segment information, etc. 3. Information and revenue breakdown of sales, profit or loss, assets, liabilities, and other items by reportable segment.
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2 | 3 (Before correction) Fiscal year ended December 31, 2025 (From January 1, 2025 to December 31, 2025) (Million yen) Reportable segment Other (*1) Total Adjustment (*2) Amount recorded in consolidated financial statements (*3) Printing Inks and Graphic Arts Materials (Japan) Printing Inks (Asia) Printing Inks (Americas) Printing Inks (Europe) Digital and Specialty Products Total Revenues Revenues from contracts with customers 49,318 56,008 101,117 20,861 20,331 247,638 10,029 257,668 – 257,668 Other revenues – – – – – – – – – – Sales to external customers 49,318 56,008 101,117 20,861 20,331 247,638 10,029 257,668 – 257,668 Intersegment sales and transfers 929 164 742 716 43 2,597 4,001 6,599 (6,599) – Total 50,248 56,173 101,860 21,578 20,375 250,236 14,031 264,267 (6,599) 257,668 Segment income 1,436 6,913 5,285 64 2,429 16,129 270 16,399 (1,172) 15,226 Segment assets 40,871 51,344 66,372 18,174 12,624 189,387 7,286 196,673 29,190 225,864 Other items Depreciation and amortization 1,322 1,128 1,310 397 640 4,799 50 4,850 17 4,868 Amortization of goodwill – – 116 2 – 118 – 118 – 118 Increase in property, plant and equipment and intangible assets 2,153 1,655 1,964 191 530 6,495 10 6,506 4 6,510 (Notes) 1. The “Other” is a business segment not included in the reportable segments and contains the chemical products business, the display service business, and the brand protection solution business in Japan. 2. The details of adjustments are as follows. (1) The adjustment of negative 1,172 million yen to segment income includes elimination of intersegment transactions of 130 million yen and corporate expenses not allocated to each reportable segment of negative 1,303 million yen. Corporate expenses mainly consist of general and administrative expenses and research and development expenses that are not attributable to any reportable segment. (2) The adjustment of 29,190 million yen to segment assets includes elimination of intersegment transactions of negative 6,380 million yen and corporate assets not allocated to any reportable segment of 35,371 million yen. Corporate assets mainly consist of investment securities held for company-wide common purposes. (3) The adjustment of 17 million yen to depreciation and amortization mainly relates to corporate assets that are not allocated to each reportable segment. (4) The adjustment of 4 million yen to increase in property, plant and equipment and intangible assets is mainly related to corporate assets that are not allocated to each reportable segment. 3. Segment income is adjusted with operating income in the consolidated statements of income. 4. Information on Impairment Losses on Non-current Assets by Reportable Segment In the "Printing Inks (Asia)" segment, an impairment loss on property, plant and equipment of 185 million yen was recorded as an extraordinary loss.
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3 | 3 (After correction) Fiscal year ended December 31, 2025 (From January 1, 2025 to December 31, 2025) (Million yen) Reportable segment Other (*1) Total Adjustment (*2) Amount recorded in consolidated financial statements (*3) Printing Inks and Graphic Arts Materials (Japan) Printing Inks (Asia) Printing Inks (Americas) Printing Inks (Europe) Digital and Specialty Products Total Revenues Revenues from contracts with customers 49,318 56,008 101,117 20,861 20,331 247,638 10,029 257,668 – 257,668 Other revenues – – – – – – – – – – Sales to external customers 49,318 56,008 101,117 20,861 20,331 247,638 10,029 257,668 – 257,668 Intersegment sales and transfers 929 164 742 716 43 2,597 4,001 6,599 (6,599) – Total 50,248 56,173 101,860 21,578 20,375 250,236 14,031 264,267 (6,599) 257,668 Segment income 1,436 6,913 5,285 64 2,429 16,129 270 16,399 (1,172) 15,226 Segment assets 40,871 51,344 66,372 18,174 12,624 189,387 7,286 196,673 29,190 225,864 Other items Depreciation and amortization 1,804 1,147 1,920 440 673 5,986 54 6,041 15 6,057 Amortization of goodwill – 4 230 2 – 237 – 237 – 237 Increase in property, plant and equipment and intangible assets 959 1,951 5,262 1,134 465 9,773 55 9,828 9 9,838 (Notes) 1. The “Other” is a business segment not included in the reportable segments and contains the chemical products business, the display service business, and the brand protection solution business in Japan. 2. The details of adjustments are as follows. (1) The adjustment of negative 1,172 million yen to segment income includes elimination of intersegment transactions of 130 million yen and corporate expenses not allocated to each reportable segment of negative 1,303 million yen. Corporate expenses mainly consist of general and administrative expenses and research and development expenses that are not attributable to any reportable segment. (2) The adjustment of 29,190 million yen to segment assets includes elimination of intersegment transactions of negative 6,380 million yen and corporate assets not allocated to any reportable segment of 35,371 million yen. Corporate assets mainly consist of investment securities held for company-wide common purposes. (3) The adjustment of 15 million yen to depreciation and amortization mainly relates to corporate assets that are not allocated to each reportable segment. (4) The adjustment of 9 million yen to increase in property, plant and equipment and intangible assets is mainly related to corporate assets that are not allocated to each reportable segment. 3. Segment income is adjusted with operating income in the consolidated statements of income. 4. Information on Impairment Losses on Non-current Assets by Reportable Segment In the "Printing Inks (Asia)" segment, an impairment loss on property, plant and equipment of 185 million yen was recorded as an extraordinary loss.