Slides
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February 12, 2026 Supplementary Material on Financial Results for the Twelve Months Ended December 31, 2025
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Overview of Financial Results for the Twelve Months Ended December 31, 2025 Initiatives for Achieving Management Attuned to Cost of Capital and Share Price Financial Results Forecasts for the Twelve Months Ending December 31, 2026 Toward Vision 2036: Progress on the Medium -term Business Plan 2025 -2027 Supplementary Material on Financial Results for the Twelve Months Ended December 31, 2025 Index 01. 02. 03. 04.
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Overview of Financial Results for the Twelve Months Ended December 31, 2025
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4 ◆ Net sales increased due to steady sales in Japan and Asia, despite the impact of adjustments in distributed inventory overseas. ◆ Gross profit decreased due to the impact of a decline in sales margin from changes in product mix and profit squeeze from rising costs. ◆ Profit was affected by the absence of the gain on sale of non-current assets recorded as extraordinary income in the previous fiscal year. [Consolidated] 2021 2022 2023 2024 2025 YoY Millions of yen Change Change (%) Net sales 61,894 68,997 74,801 88,820 89,814 994 1.1% (Avg. USD exchange rate) 30,667 33,953 38,446 46,840 44,522 (2,317) (4.9%) (Avg. EUR exchange rate) 49.5% 49.2% 51.4% 52.7% 49.6% (3.2%) - Gross profit 23,146 24,709 26,594 34,650 34,830 179 0.5% (Gross profit margin) 7,520 9,243 11,851 12,189 9,692 (2,496) (20.5%) Selling, general and administrative expenses 8,309 10,128 12,889 12,952 10,028 (2,924) (22.6%) Operating profit 5,658 6,951 10,166 11,272 6,235 (5,037) (44.7%) Ordinary profit ¥109.86 ¥130.78 ¥140.55 ¥151.44 ¥150.40 (¥1.04) - Profit* ¥130.11 ¥137.93 ¥152.27 ¥163.79 ¥169.14 ¥5.35 - *Profit attributable to owners of parent Summary of Consolidated Financial Results for the Twelve Months Ended December 31, 2025
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89,814 88,820 1,605 (1,996) 1,385 87,000 87,500 88,000 88,500 89,000 89,500 90,000 90,500 2025年Q4 連結売上高 非筆記具事業 海外筆記具事業 国内筆記具事業 2024Q4 連結売上高 5 Analysis of Changes in Consolidated Net Sales by Business Segment ◆ Domestic writing instruments business: In addition to JETSTREAM, sales of new products such as uniball ZENTO, KURUTOGA Wood, andLAMY safari JETSTREAM INSIDE were favorable. ◆ Overseas writing instruments business: Sales were boosted by new products and LAMY brand, but net sales decreased due to adjustments in distributed inventory of POSCA, a big seller in previous fiscal year. ◆ Business other than writing instruments:The cosmetics business and industrial materials business performed well. In particular,the cosmetics business increased sales due to overlapping product renewals by OEM clients. FY2024 FY2025 +994 YoY Domestic writing instruments business Overseas writing instruments business Business other than writing instruments 0 (Millions of yen)
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Japan 42.8% U.S.A. 14.1% Asia 17.8% Europe 19.1% Other 6.2% Japan 40.3% U.S.A. 15.2% Asia 17.3% Europe 20.4% Other 6.8% Composition of Consolidated Net Sales by Region ◆ The ratio of domestic sales has risen due to growth in the Japanese market. ◆ In overseas, the Asian region saw increased net sales, leading to a higher ratio. 2024 2025 Consolidated net sales ¥88.8 billion 6 Overseas 57.2 % Japan 42.8 % Consolidated net sales ¥89.8 billion Overseas 59.7 % Japan 40.3 %
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Ballpoint pens 40.8% Mechanical pencils and refill leads 13.8% Felt-tip pens and markers 26.4% Pencils 3.9% Other 15.1%Ballpoint pens 40.7% Mechanical pencils and refill leads 12.7% Felt-tip pens and markers 30.4% Pencils 4.2% Other 12.0% Composition of Consolidated Net Sales by Product Type ◆ Ballpoint pens: The new product, uniball ZENTO, and JETSTREAM contributed to sales. ◆ Mechanical pencils: JETSTREAM 4&1 and KURUTOGA continued to perform well. ◆ Felt-tip pens and markers: Affected by the adjustments in distributed inventory of POSCA in Europe. 7 2024 2025 Consolidated net sales ¥88.8 billion Consolidated net sales ¥89.8 billion
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9,692 12,189 498 (455) (223) (359) (1,449) (510) 7,000 8,000 9,000 10,000 11,000 12,000 13,000 2025年 営業利益 Lamy取得関連 貸倒損失 販管費 連結修正 （原価） 売上原価 売上要因 2024年 営業利益 0 Analysis of Changes in Consolidated Operating Profit 8 (Millions of yen) Consolidated operating profit for 2024 Cost of Sales factors Consolidated adjustments (cost of sales) Selling, general and administrative expenses Bad debt expenses ◆ Sales factors: Although net sales increased, the change in product mix led to a decrease in sales margin. ◆ Cost of sales: In addition to production adjustments having impact, raw material prices and outsourcing processing costs increased, and depreciation increased. ◆ Selling, general and administrative expenses: Mainly due to initiatives for future growth such as IT investment and human capital investment, selling, general and administrative expenses increased. Sales factors Lamy GmbH acquisition-related Consolidated operating profit for 2025 Gross profit (2,317) SG&A expense factors (179)
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61,894 68,997 74,801 88,820 89,814 12.2 13.4 15.8 13.7 10.8 13.4 14.7 17.2 14.6 11.2 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2021年Q4 2022年Q4 2023年Q4 2024年Q4 2025年Q4 連結売上高 連結営業利益率 連結経常利益率 (Millions of yen) Consolidated net sales Consolidated operating profit margin Consolidated ordinary profit margin (%) Consolidated Net Sales, Operating Profit Margin and Ordinary Profit Margin ◆ Although net sales increased, gross profit decreased and selling, general and administrative expenses increased, leading to a decrease in profit. ◆ As a result, operating profit margin and ordinary profit margin declined. 9 2021 2022 2024 20252023
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10 ◆ The increase in assets was mainly due to increases in investment securities and retirement benefit asset. ◆ The increase in net assets was mainly due to increases in retained earnings, valuation difference on available-for-sale securities and foreign currency translation adjustment. *Profit attributable to owners of parent Consolidated Balance Sheet Millions of yen As of December 31, 2024 As of December 31, 2025 Change Assets 176,881 183,005 6,123 Current assets 95,205 91,793 (3,411) Non-current assets 81,676 91,212 9,536 Liabilities 46,173 42,573 (3,599) Net assets 130,708 140,432 9,723 Total liabilities and net assets 176,881 183,005 6,123 (Equity-to-asset ratio) 72.6% 75.7% 3.1%
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1,715 1,874 2,110 2,320 2,560 1,211 1,432 2,086 2,302 2,177 0.71 0.76 0.99 0.99 0.85 0.00 0.50 1.00 0 1,000 2,000 3,000 4,000 2021年12月末 2022年12月末 2023年12月末 2024年12月末 2025年12月末 1株当たり純資産(連結) 株価 （期末 終値） PBR （株価純資産倍率） Net Assets per Share / Price Book-value Ratio ◆ Net assets per share was ¥2,561 due to the increase in net assets. ◆ While PBR* increased to approximately 1x by the end of December 2023 and December 2024, it declined to 0.85x at the end of December 2025. 11 (Yen) Net assets per share (consolidated) PBR (Price Book-value Ratio) Share price (closing price at the end of fiscal year) (Times) End of Dec. 2021 End of Dec. 2022 End of Dec. 2023 End of Dec. 2024 End of Dec. 2025 * PBR (Price Book-value Ratio): Closing share price at the end of fiscal year / Consolidated net assets per share
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32,807 39,587 602 (1,874) (7,920) 2,413 26,000 28,000 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 2025年12月末 現金及び 現金同等物 現金 換算差額 財務 キャッシュ・フロー 投資 キャッシュ・フロー 営業 キャッシュ・フロー 2024年12月末 現金及び 現金同等物 (Millions of yen) ◆ Cash flows from operating activities decreased year on year due to a decrease in trade payables from shortening of bill payment period for trade notes, etc. ◆ As a result of aggressive investment in growth and infrastructure, free cash flow turned negative. ◆ Cash flow from financing activities was affected by an increase in outflows due to dividend payments and purchase of treasury shares, along with a decrease in inflows from long- term borrowing. Consolidated Cash Flows 12 (6,779) From the end of previous fiscal year 現金 換算差額 2023年12月末 現金及び 現金同等物 Cash and cash equivalents at end of Dec. 2024 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Effect of exchange rate change on cash Cash and cash equivalents at end of Dec. 2025 (Note) Figures do not align with cash and deposits presented on the balance sheets given that the balance of time deposits is not presented on the statements of cash flows. 0
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Initiatives for Achieving Management Attuned to Cost of Capital and Share Price
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Initiatives for Achieving Management Attuned to Cost of Capital and Share Price 14 Analysis We will work to restore profitability and enhance corporate value over the medium to long term Efforts to improve ROETargets We have broken down ROE into its three components and are specifically targeting each one • Improve profitability by executing the Medium-term Business Plan • Invest sustainably in growth and infrastructure • Improve the health of our balance sheet by continuously reducing inventory and other related assets • Shareholder returns through dividends (Continue progressive dividends and aim for a consolidated dividend payout ratio of 40%) • Buy own shares with flexibility ROE broken down into its three components ROE: More than 8%, PBR: More than 1x • ROE was above target in 2023 and 2024 due to a one-time sale of fixed assets, but declined to 4.7% in 2025. • PBR stands at 0.85x, still below 1x. ⇒ Issues remain in addressing low ROE and demonstrating business growth. Net profit margin Asset turnover ratio Financial leverage ■PBR ■ROE Target: More than 8% 7.0% 9.3% 9.3% 4.7% 0% 2% 4% 6% 8% 10% 2022 2023 2024 2025 0.76 0.99 0.99 0.85 0.4 0.6 0.8 1.0 1.2 2022 2023 2024 2025 10.1% 13.6% 12.7% 6.9% 0% 5% 10% 15% 2022 2023 2024 2025 0.54 0.54 0.55 0.50 0.40 0.45 0.50 0.55 0.60 2022 2023 2024 2025 1.28 1.27 1.33 1.35 1.20 1.24 1.28 1.32 1.36 2022 2023 2024 2025 Net profit margin Net income Net sales Asset turnover ratio Net sales Total assets Financial leverage Total assets Equity capital (Times) (Times) (Times)
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Initiatives for Achieving Management Attuned to Cost of Capital and Share Price 15 Progress in 2025 Growth investment • New products → Writing instruments, secondary battery products/equipment, etc. • Investment in production equipment (e.g., optimizing production) • Investment in global brands (e.g., promotional activities) Shareholder returns (dividends, share buybacks) Growth & infrastructure investment ¥7.1 billion Shareholder returns ¥5.1 billion Cash on hand + external funding Cash in Cash out R&D expenses: ¥4.2 billion Operating cash flow ¥2.4 billion ◆ Operating cash flow lagged behind the plan, but growth investments and shareholder returns were executed as planned. ◆ We will continue to proactively invest in growth and return capital to shareholders as planned. Note: R&D spending of ¥9.0 billion or more (over 3-year period) will continue Operating cash flow 2025-2027 (3-year period) ¥32.0 billion or more Growth & infrastructure investment Shareholder returns Share buybacks Cash on hand Plan Cash Allocation Investment in infrastructure • IT investment (e.g., generative AI) • Human capital investment (e.g., new HR system) • Production facility maintenance Operating cash flow decreased due to the impact of reduced profits, in addition to shortened payment terms
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Dialogue with Investors and Shareholders 16 Responding to investor and shareholder feedbackMeetings held Number of individual IR/SR meetings We will continue to disclose our management strategies and financial status in a timely manner by emphasizing dialogue with shareholders and appropriate information disclosure 0 30 60 90 2021 2022 2023 2024 2025 Began holding financial results briefings in 2025 The number of meetings surged in 2024 due to the topic of LAMY becoming our subsidiary Financial results briefings: 2 sessions (February & August 2025) Individual IR/SR meetings: 70 sessions Opinions shared by investors and shareholders are reported to the Board of Directors Key opinions Our initiatives Strengthening shareholder returns In addition to continuing progressive dividends, set a new 40% target for our consolidated dividend payout ratio. (July 31, 2025 press release） Management attuned to share price Introduced a new stock-based compensation system for managerial positions. This fosters a sense of ownership among managers and encourages business execution attuned to share price. (Nov. 27, 2025 press release) Expanding opportunities for dialogue Held our first-ever financial results briefings (for institutional investors and analysts; online). (Meetings)
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Financial Results Forecasts for the Twelve Months Ending December 31, 2026
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18 ◆ Net sales are expected to increase due to the resolution of distributed inventory adjustments in overseas markets, the regrow th of uniball brand, and the strengthening of sales structure in various overseas regions. ◆ Operating profit is expected to increase overall, despite anticipating higher selling, general and administrative expenses due to growth investments for the future, such as IT investment, human capital investment, and production facility maintenance. Financial Results Forecasts for the Twelve Months Ending December 31, 2026 [Consolidated] 2025 2026 YoY Millions of yen Full-year result Full-year forecast Change Change (%) Net sales 89,814 94,000 4,186 4.7% Domestic writing instruments business 30,499 30,600 101 0.3% Oversea writing instruments business 51,000 55,300 4,300 8.4% Business other than writing instruments 8,316 8,100 (216) (2.6%) Operating profit 9,692 10,500 808 8.3% (Operating profit margin) 10.8% 11.2% 0.4% - Ordinary profit 10,028 11,000 972 9.7% Profit attributable to owners of parent 6,235 7,700 1,465 23.5% (Avg. USD exchange rate) ¥150.40 ¥150.00 (¥0.40) - (Avg. EUR exchange rate) ¥169.14 ¥175.00 ¥5.86 - Earnings Per Share ¥114.27 ¥142.35 ¥28.08 -
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32 35 40 46 52 55 31.7% 27.8% 21.4% 24.6% 45.5% 38.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0 10 20 30 40 50 60 2021年 2022年 2023年 2024年 2025年 (予想) 2026年 （予想） 系列1 系列2 Shareholder Returns ◆ In addition to continuing progressive dividends, set a 40% target for our consolidated dividend payout ratio. (July 31, 2025 press release） ◆ The year-end dividend and annual dividend forecasts for FY2025 are ¥26 and ¥52, respectively. The consolidated dividend payout ratio will be 45.5%. ◆ The annual dividend forecast for FY2026 is ¥55 (both interim and year-end dividends are ¥27.5), an increase of ¥3. Planning to achieve an increase in dividends for 24 consecutive fiscal years. 19 (Yen) 2025 Forecast 2026 Forecast 2021 2022 20242023 Annual dividend Consolidated payout ratio
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Toward Vision 2036: Progress on the Medium -term Business Plan 2025 -2027
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Stories about Business Domains and Growth toward Achieving Vision 2036 21 High value added Writing instrument development Function & Emotion Emerging countries Writing instruments suiting local needs Products and materials that contribute to society Benefits of experience of writing Value Expansion Growth 04 Growth 01 Growth 02 Growth 03 • Securing earnings by continuing to enhance the value of long-selling brands and providing products that continue to be supported by consumers. • Creating new demand by continuing to evolve and utilize writing instrument technologies cultivated to date and launching new brands with new proposals for uses. • Enhancing competitiveness by optimizing supply chains, thereby improving responsiveness to market changes, reducing costs and environmental impacts. • Expanding the value provided by writing instruments and pursuing new business opportunities through various partnerships, including business alliances and M&A. Growth Story (1) • Contributing to improved quality of life through the overall experience by incorporating not only the time spent “writing” itself, but also the pre-writing thought process and post-writing transmission activities into the business domains. • Creating new business models and revenue sources by taking advantage of the benefits of “writing and drawing” (organization of thoughts, communication, refreshment, expression of creativity, etc.). • Advancing the fusion of digital and analog to further enrich the user’s writing experience. Growth Story (4) • Strengthening our expansion into emerging markets and contributing to the expressive experience of more people than ever before. • Utilizing overseas manufacturing bases to provide products that meet the price and quality needs of users in emerging countries. • Expanding market share through collaboration with local partners and localization strategies. Growth Story (2) Expansion of Distribution Methods Area Expansion Industry Expansion • Contributing to the realization of a prosperous society by evolving the core technologies developed in the writing instruments business, and helping to solve social issues in other industries. • Acquiring knowledge and technologies from other industries, and assuming the role of feeding them back into the Company, thereby driving the evolution of the entire group. • Maintaining and expanding technology leadership in the writing instrument industry through the development and patenting of new technologies. Growth Story (3) Reposted
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Basic policy Concept of activities at each stage 2022-2024 re-design The planning stage, in which we change our perspective and way of thinking to restructure the way we do business toward achie ving the vision. 2025-2027 Advance With the new plans and activities that have been promoted during the re-design stage serving as the foundation, further develop and accelerate them to bring about corporate transformation and innovation. 22 Positioning, Basic Policies, and Priority Policies of the Medium-term Business Plan 2025-2027 Continued growth and diversification of the writing instruments business • Proactively creating new demand, in addition to creating high value-added writing instruments • Global supply chain optimization Growth Story (1) Expanding the scale of the businesses other than writing instruments and driving the realization of the Group’s vision • Balancing business pillarization and social contribution • Driving innovation and knowledge/skill acquisition through cross-industry co-creation Growth Story (2) Strengthening management foundation in cooperation with stakeholders • Promoting relationship with stakeholders • Strengthening management foundation to support medium- and long-term growth Management Foundation 2022-2024 re-design 2025-2027 Advance 2028-2030 & 2031-2033 2034-2036 Becoming an expressive innovation company Net sales (Billions of yen) ROE: More than 8%, PBR: More than 1x 29.2 34.6 39.5 51.9 60.0 70.027.2 27.4 28.7 29.3 30.0 30.0 5.4 6.9 6.6 6.7 9.0 50.0 61.8 68.9 74.8 87.7 100.0 150.0 0 500 1,000 1,500 2,000 2021 2022 2023 2024 2027 2030 2033 2036 軸ラベル 軸ラベル海外筆記具事業 国内筆記具事業 非筆記具 Businesses other than writing instruments 200 150 100 50 0 Overseas writing instruments business Domestic writing instruments business 12.2 13.4 15.8 52.4 29.7 88.8 13.7 15.0 15.0 63.0 31.0 103.0 Operating profit margin (%) 16 12 8 4 0 Reposted
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23 ◆ Changes in the business environment have led to shifts in distribution and increased costs • Significant changes in the external environment • Increased competition: Product quality and cost competition is intensifying globally in a shrinking market. The entry of new companies is also a factor. • Changes in the external environment that are expected to continue • Developed countries: Demand for conventional writing is decreasing due to the declining birthrate and aging population. On the other hand, the increase in the number of elderly people is creating the potential for new demand for writing. • Emerging countries: Population growth and economic growth are underway. Fertility rates are high in many countries and the education market is expanding. Demographic changes1 • Device evolution: Tablets and other devices are becoming more prevalent as educational tools, and the demand for writing is being supplanted by digital tools. • Interest in sustainability: Increased demand for eco-friendly products, increased avoidance of disposable products, and increased interest in recycled materials. Evolution of digital technologies2 Diversifying values3 Increased competition in the writing instruments industry 4 • Advances in AI: Speech recognition technology is becoming more sophisticated, so the demand for writing such as taking memos is shifting to digital technologies, and opportunities for writing itself are decreasing. • Emphasis on individuality and style: Diversification is promoted by introduction of products and services that suit individual tastes. • Market realignment: Brand reorganizations, M&As, and other capital alliances are becoming more common in the industry. U.S. reciprocal tariffs Slowdown in China’s economic growth rate Accelerating inflation The writing instruments industry saw global shifts in its competitive landscape, including an accelerated influx of low-cost products into Europe as a result of U.S. reciprocal tariffs and a slowdown in China’s economic growth. Raw material, processing, and related costs rose due to inflation. 050010001500 Age 0 Age 16 Age 32 Age 48 Age 64 Age 80 Age 96 0 500 1000 1500 Age 0 Age 16 Age 32 Age 48 Age 64 Age 80 Age 96 Age 0 Age 65 Age 105+ Japan 2035 Population Pyramid Changes in the External Environment Surrounding Our Company
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27.2 29.1 30.4 31.0 30.0 29.2 53.0 51.0 63.0 70.0 5.4 6.7 8.3 9.0 30.0～50.0 12.2 13.7 10.8 15.0 15.0 0 5 10 15 0 50 100 150 2021 2024 2025 2027 (target) 2036 (target) Domestic writing instruments business Overseas writing instruments business Businesses other than writing instruments Operating profit margin • Net sales increased in Japan, primarily driven by JETSTREAM, while the new ZENTO was also well received. Progress of Vision 2036 24 % 61.8 88.8 89.8 103.0 150.0 Consolidated net sales and operating profit margin by business segment ◆ Despite executing measures as planned, operating profit margin decreased while net sales increased due to external environmental factors ◆ Our Medium-term Business Plan targets remain unchanged, as we intend to take swift action to achieve them • Although the POSCA market is expanding, net sales decreased due to adjustments in distributed inventory. • We made efforts to enhance brand value in Europe and North America— core markets for POSCA and uniball—such as by introducing new product items. • We launched the LAMY safari JETSTREAM INSIDE; sales have been strong. • We expanded sales channels by using Mitsubishi Pencil’s sales network. • We implemented adjustments of distributor channel inventory levels. 【LAMY】 • Net sales rose in the cosmetics and industrial materials businesses due to an increase in orders. 2025 Progress (Billions of yen) Domestic writing instruments business Overseas writing instruments business Businesses other than writing instruments
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25 ◆ Although the market is growing, net sales decreased due to prolonged adjustments in distributed inventory in Europe. ◆ Going forward, we will carry out initiatives to grow our community of artists and new fans. Writing Instruments Business (core brand ) Market Trends Overall market for poster color markers 2015 20242020 2025 Impact of low-cost products in market Surge in POSCA demand The overall market continues to expand Market growth Entry of low-cost products POSCA sales The POSCA market continues to grow. Retail sales, however, did not increase as much as anticipated due to low-cost products entering the market. We will enhance brand value by strengthening product appeal and hosting events as part of our efforts to create experiential value. Initiatives Enhancing brand value through workshops and events Enabling greater expression with new items Expanded set of colored pencils 2025: Brush type New users Hobby Art Turn new users into fans Give artists more joy
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26 • Strong sales in Japan and overseas by adapting to shifting consumer needs • Strengthened our production capacity to meet greater demand • We will further expand sales regions to boost sales • With uniquely expressive lines, this pen enjoys robust sales, primarily in the Chinese market Writing Instruments Business (core brands and ) Updated lineup of 4&1 Ballpoint Pens with new standard colors Net sales increased following brand enhancement efforts, including a renewed lineup of 4&1 Ballpoint Pens. We will continue to grow sales in the Japanese and overseas markets. Net sales 2022 2023 2024 2025 ◆ uniball: Strong sales for ZENTO, the soft-writing water-based ballpoint pen, and AIR, which features an advanced pen tip ◆ JETSTREAM: Net sales increased in Japanese and overseas markets thanks to brand enhancement efforts Water-based ballpoint pen featuring a smooth writing flow and clean, smudge-free lines Water-based ballpoint pen that creates variable line width depending on writing angle and pressure Products for overseas markets
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Writing Instruments Business ( ) 27 LAMY safari’s timeless design fused with the JETSTREAM’s functionality Mitsubishi Pencil Group bases Sales network Products Sales through Mitsubishi Pencil’s sales network have begun in Japan, the US, the UK, and France. We will further expand into other countries and regions. We implemented adjustments of distributor channel inventory levels. ◆ We aim to further grow by leveraging LAMY’s design expertise and our technical expertise for new product development—a strength of both companies—and by using our Group’s sales network. We will also carry out initiatives that create synergies. LAMY safari JETSTREAM INSIDE launched first in the Japanese market; sales have been strong. LAMYMitsubishi Pencil Head Office （ドイツ ハイデルベルグ旗艦店） Mitsubishi Pencil overseas sales companies Flagship store in Heidelberg, Germany
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Writing Instruments Business: Expansion into Emerging Markets 28 ◆ UNI LINC INDIA PRIVATE LIMITED, our joint venture in India, has begun operations. ◆ We will accelerate expansion into emerging markets to increase market share and brand penetration in India and abroad. ◆ This joint venture will serve as a base within our global supply chain for procurement and other needs. We will gradually expand our product portfolio and roll out higher value-added writing instruments alongside LINC LIMITED, who possess extensive knowledge and distribution networks in India, thereby broadening user choices and strengthening our local position. (View of entire facility) Began production and shipment of ballpoint pens in September 2025 Data excerpted from LINC LIMITED’s website Reference LINC LIMITED net sales 2,200 3,190 4,000 5,430 0 2,000 4,000 6,000 FY2010 FY2015 FY2020 FY2025 (Million rupees)
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Businesses Other Than Writing Instruments (using core technologies of writing instruments) 29 ◆ We will evolve our core technologies cultivated in the writing instruments business to drive growth in businesses other than writing instruments. Cosmetics business Industrial materials business (conductive slurry for secondary batteries) Liquid eyeliner Pencil eyeliner Conductive slurry Used in batteries Our Strengths • We can offer both liquid and pencil (solid) types • We can create products with improved functionality through development of inks and dispensing mechanisms Our Strengths • We can propose solutions tailored to customer needs by possessing dispersion technology that improves performance of conductive materials such as carbon nanotubes *A mechanism that dispenses liquids accurately and in precise quantities Mitsubishi Pencil technologies Color lead design Packaging design Dispensing mechanism design* Ink design Mitsubishi Pencil technologies Ink design → Dispersion technology → Mixing technology
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Businesses Other Than Writing Instruments (cosmetics business, industrial materials business) 30 ◆ Net sales increased in businesses other than writing instruments. We will keep pursuing further growth and realize Vision 2036. • Net sales of eyeliner products increased, mainly in the Japanese market, thanks to our technology aligning with market needs. • We will keep working to scale up, primarily in Europe and North America, by offering new pen- type cosmetics tailored to diverse cultures and needs in overseas markets. 5.4 6.7 8.3 9.0 30.0–50.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2021 2024 2025 2027 (target) 2036 (target) Net sales of businesses other than writing instruments (Billions of yen) Industrial materials business • Net sales growth driven by sales of conductive slurries for smartphone batteries. • Publicized research findings on dry electrodes after sustained technical development. • We will continue R&D of solid-state batteries and other next-generation secondary batteries to drive further advancement. 50.0 Dry electrode Cosmetics business 10.0
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Management Foundation Strengthening Human Capital Sustainability System Upcycled products • Thinned and scrap woods• Plastic materials 3,167 2,757 2,617 3,003 12,743 22,319 16,947 11,336 10,824 0 10,000 20,000 30,000 2021 (base year) 2022 2023 2024 2030 (target year)Scope 1 Scope 2 CO2 emissions Working toward Vision 2036 by enhancing the value of our human capitalWe are working to reduce our environmental impact by reducing CO 2 emissions and by promoting upcycled products. 2025 figures Recycled pellets Thinned and various scrap woods Raises environmental awareness Helps promote local brands (Tons) 31 Initiatives Newly introduced New personnel system Establish a personnel system to comprehensively support career development New employee education system Establish an educational framework, starting with training programs that develop self-reliant employees New HR system Centralize information management and organize human resources portfolio In-progress: Improvements to the work environment Facilitating the active participation of diverse human resources • Establish a Human Rights Policy • Promote the active participation of female employees • Promote the active participation of employees with disabilities • Conduct engagement surveys • Help employees maintain and improve their physical and mental health Create Use Collect Recycle Use of recycled resources SXN-UC barrel (Ballpoint pen) Virgin materials Use Grow Log Process JETSTREAM 4&1 (Multi pen)/ SS/M5-1025 (Ballpoint pen / Mechanical pencil) Use of domestic timber
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Strengthening the Technology Base Develop new technologies to keep creating next-generation products IT Investment Keep making aggressive and protective investments in IT → Expand and promote adoption of generative AI → Advance DX Strengthen Corporate Brand Electrode Dispersion Writing instruments field Cosmetics field Industrial materials field 32 Management Foundation We produced and released a new movie about our brands so our Group vision can be understood on a deeper level. Sustaining our efforts to enhance brand value Unifying and promoting the brand globally
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The forecasts and forward-looking statements provided in this document are based on information currently available to the Compa ny and contain potential risks and uncertainties. Consequently, actual results may differ from those projected figures due to various factors. Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.