Presentation Materials for Q2 Fiscal Year Ending March 2027

Overview of Results

For the interim period of the fiscal year ending March 2027, revenue rose 0.7% YoY to 21,552 million yen and remained solid. However, profits declined as gross margin did not sufficiently improve and SG&A increased, resulting in decreases in operating and ordinary income. Special income was lower than the prior period and special losses had an impact, causing net income to turn to a loss. Segment-wise, growth is expected in the Food-related, Materials-related, and Electronics-related businesses, but increased companywide expenses pressured profitability. The report also addresses progress on the medium-term management plan and measures to strengthen financial health.

Outlook and Key Considerations

The full-year forecast for the fiscal year ending March 2027 has been revised: revenue is expected at 44,000 million yen and gross profit at 9,100 million yen (an increase), while ordinary income is projected at 1,500 million yen, a decline YoY. Net income is forecast at 800 million yen, a substantial decrease, and the year-end dividend will be maintained at 110 yen in line with the shareholder return policy. Segment forecasts indicate growth in Food-related, Materials-related, and Electronics-related businesses, while the Business Development segment is expected to see expanded losses. Cost control and improvement of capital efficiency are key to achieving the medium-term plan targets.