Our Creations Inspire Creativity
To realize our 2030 Vision, we will strengthen the overseas expansion of our writing instrument business and promote the creation of new businesses.
In appreciation of the ongoing support of the shareholders of PILOT Corporation (the “Company”), we are pleased to present our 2025 interim business report in English.
For the period under review, the economic environment in Japan saw a gradual recovery due to improvements in the income environment, although inflation caused personal consumption to stall. Overseas, the outlook for the global economy remains uncertain due to factors such as continued inflation in Europe and the U.S., the prolonged slowdown in the Chinese economy, and the effects of the U.S. tariff policies.
In this economic environment, although the overseas back-to-school sales campaign generally performed well and the new consolidation of a subsidiary in India contributed to increased sales in the Asian region, the impact of the yen’s appreciation led to the Group’s net sales decreasing year-on-year. On the other hand, operating profit increased year-on-year due to the increase in gross profit.
Currently, the Group is steadily executing the strengthening of the group management foundation to adapt to change, what we call “ceaseless evolution,” as outlined in the 2025-2027 Medium-Term Management Plan (hereinafter referred to as the “current Medium-Term Management Plan”). In pursuit of realizing the medium- to long-term vision, the “2030 Vision of PILOT Group,” we are united as a group in addressing management challenges such as creating and launching new products with competitive edges, launching products in India and the ASEAN region, expanding the toy business overseas, and attempting the creation of new value.
As we execute the key actions outlined in the current Medium-Term Management Plan, including those mentioned above, we aim to appropriately allocate the cash generated from business activities towards growth investments and shareholder returns, striving for sustainable growth and improvement of corporate value.
Regarding the shareholder return policy, while we had set a target of a total payout ratio of 50% or more in the current Medium-Term Management Plan, we have additionally decided to introduce a progressive dividend policy (a dividend policy that maintains or increases dividends without reducing them). Additionally, since June of this year, we have been implementing an acquisition of treasury shares with a maximum total purchase price of six billion yen. For the interim dividend of the fiscal year ending December 31, 2025, we have increased the dividend by 1.50 yen per share from the forecast, setting it at 60.00 yen per share. We will continue to strengthen shareholder returns. Furthermore, regarding the shareholder benefit program, which has received significant feedback from our shareholders, we will continue to focus on delivering more attractive products.
Under PILOT Group’s purpose statement, Our Creations Inspire Creativity, we will continue to improve corporate value and strive to meet your expectations. In closing, we sincerely ask shareholders for their continued support.
September 2025
Fumio Fujisaki
Representative Director & President
PILOT Corporation