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Core Financial Results

• In the third quarter of the 2026 March fiscal year, revenue increased 487 million yen year-over-year, driven by strong sales of decorative faucets, design-focused high value-added products (particularly in the non-residential sector including hotels and restaurants), as well as growing sales of ultra fine bubble-related products and the pre-wash faucet "Prepassh+".
• Despite headwinds including rising raw material prices and Expo-related expenses, all profit metrics (operating profit, ordinary profit, net profit attributable to parent company shareholders) increased year-over-year, supported by sales expansion of high value-added products and the benefits of price adjustments.
• As of the end of the third quarter, total assets were 24.424 billion yen (an increase of 57 million yen from the end of the previous fiscal year), net assets were 15.368 billion yen (an increase of 679 million yen from the end of the previous fiscal year), and the equity ratio rose 2.4 percentage points to 60.7%.

Key Operational Milestones & Awards

• SANEI's sʌnei brand SUTTO and YORISUTTO series bathroom mixing faucets won the JIDA Design Museum Selection Vol.27 award from the Japan Industrial Design Association.
• SANEI exhibited at DESIGN INSPIRE in Hong Kong held December 3-6, 2025 as part of the JBMA pavilion, where its Shigaraki ware washbowl (which embodies Japanese "beauty of function") received high praise from attendees including architects, designers and buyers.
• The new No.2 factory at the Gifu plant was completed in December 2025, as an expansion following the new No.1 factory. The new facility focuses on building increased production capacity, improving productivity, and automating assembly processes to meet growing global demand for high value-added faucets and establish a stable supply chain; it is part of the company's 70th anniversary commemorative projects.
• The VERSE brand Grazioso series won Best of the Best in the bath category at both the iF Design Award 2025 and Red Dot Design Award 2025, marking the second consecutive year SANEI has won this award following the 2024 win for the Solohe series. The VERSE grooglo series also won an iF Design Award 2025.

Sales Channel Strategies

• Pipe and plumbing materials channel: Focused on strengthening sales of high value-added products, centered on non-residential facilities.
• Retail channel: New products with ultra fine bubble functionality and the IENI mixing faucet series performed strongly.
• Manufacturer channel: Secured large volumes of adoption for new projects, and continues to maintain solid performance.
• Overseas channel: Collaborates with partner companies in individual markets to advance new market development.

ESG and Community Engagement

• SANEI advances initiatives aligned with SDGs to achieve a sustainable society, and is working toward net-zero CO2 emissions by 2050. It has introduced high-efficiency infrastructure including solar power generation at the Gifu plant to advance carbon neutrality and reduce environmental impact.
• SANEI participates in the Co-Innovation Valley project in Hida City, Gifu Prefecture, which focuses on regional co-creation. It supports development of the soranotani co-creation hub (opening 2027) and the new Co-Innovation University (opening April 2026), contributing to regional revitalization and education through provision of plumbing products and cooperation on project activities.
• Community engagement activities include: hosting a factory tour for local elementary school students to inspire interest in manufacturing and local connection; opening company parking lots for the Gifu Base Air Festival and conducting post-event cleanup to support the event and maintain local public spaces; hosting a training workshop on disabled employment to promote greater understanding of disabled employment, with ongoing efforts to create workplaces adapted to individual needs that are accessible for all; donating "Myaku-Myaku" plush toys to children's welfare facilities in Osaka through the Osaka City Federation of Children's Welfare Facilities to support a safe living environment for children.

Brand Portfolio

• VERSE: A recently launched luxury brand focused on ultimate luxury, with flagship products that emphasize appeal to the five senses, quality, texture and materials.
• sʌnei: A diverse global brand developed in collaboration with prominent designers, offering a wide range of custom and standard plumbing products for full bathroom and kitchen spaces.
• SANEI: The company's namesake core brand, offering standard models for all water-related use cases.
• WAILEA: A brand that offers custom kitchen and bathroom design, furniture and amenities, plus integrated retail and showroom facilities, with showrooms in Omotesando Tokyo and Midōsuji Osaka.
• FURUSSO: A high-end bathtub brand focused on the concept of "ultimate relaxation", with a flagship VERSE display in the Aoyama Tokyo showroom.
• In total, SANEI offers more than 6,000 products covering all water-related areas from faucets to full bathroom/kitchen systems, custom products, and specialty items including imported washbasins and traditional Japanese pottery, and also accepts custom orders to meet customer requirements.

• Overall market conditions remain challenging, due to a decline in new housing starts following the April 2025 revision to the Building Standard Law. SANEI will continue to implement targeted initiatives to achieve its full-year financial targets, with all departments aligned to deliver on full-year guidance.
• Amid rising cost pressure from yen depreciation and sharp increases in copper prices, SANEI will continue to strengthen sales of high value-added and new products to improve profitability, while also pursuing thorough business efficiency, cost reduction, and appropriate price adjustments to secure stable profits. The company continues to target achieving a PBR of 1x or higher.
• To mark the 5th anniversary of SANEI's listing, the company has upwardly revised its year-end dividend for the 2026 March fiscal year to 37 yen per share, comprising a regular dividend of 32 yen per share plus a 5 yen per share special commemorative dividend. SANEI has followed a progressive dividend policy since announcing it in June 2024, and remains committed to delivering stable shareholder returns over the long term.

The transcript does not provide separate financial performance data for individual product or business segments. Aggregate third quarter results show net sales increased 487 million yen year-over-year, with broad growth driven by high value-added products, and all profit metrics (operating profit, ordinary profit, net profit attributable to parent company shareholders) increased year-over-year. No absolute revenue figures or revenue contribution percentages per segment are disclosed.

• The domestic construction market faces ongoing headwinds from the decline in new housing starts following the April 2025 revision to the Building Standard Law, creating a challenging operating environment.
• SANEI faces ongoing cost pressure from yen depreciation and sharp spikes in copper prices, which increase raw material and production costs.
• Additional cost headwinds include general raw material price inflation and one-time Expo-related operating expenses.

No question and answer section is included in the provided transcript.