Otsuka (4768) investor relations material

Executive summary

• Consolidated net sales for FY2025 reached ¥1,322,791 million, up 19.4% year-over-year, with operating profit up 21.0% to ¥89,943 million and profit attributable to owners of parent up 20.2% to ¥64,303 million.

• Non-consolidated net sales were ¥1,163,138 million, up 18.1% year-over-year, with operating profit up 22.1%.

• Comprehensive income increased 33.1% year-over-year to ¥71,964 million.

• Fourth quarter consolidated net sales grew 11.1% year-over-year, with operating profit up 5.5%.

Financial highlights

• Gross profit increased to ¥252,174 million from ¥224,471 million year-over-year.

• Operating profit margin improved to 6.8% from 6.7% year-over-year, with both operating and ordinary profit margins exceeding 7%.

• Basic earnings per share rose to ¥169.58 from ¥141.04 year-over-year.

• ROE for FY2025 was 16.8%.

• Equity ratio stood at 54.1% as of December 31, 2025.

Outlook and guidance

• FY2026 consolidated net sales are projected at ¥1,361,000 million, with operating profit of ¥94,600 million and profit attributable to owners of parent at ¥61,130 million.

• FY2026 net sales are also forecast at ¥1,311,000 million, with operating profit projected at ¥90,000 million and profit attributable to owners of parent expected to decline 4.9% to ¥61,130 million.

• SI and S&S business segments are both expected to grow, with SI business planned at ¥857,100 million and S&S at ¥453,900 million for FY2026.

• Dividend forecast for FY2026 is ¥95.00 per share.

• Management policy emphasizes stable growth, productivity improvements, and leveraging AI and security solutions.