Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated) Fiscal Year Ending March 2027

Summary of Results

This financial summary discloses the consolidated results for the second quarter of the fiscal year ending March 2027. Net sales increased year-on-year, while interim net income attributable to owners of parent declined. The addition of the Shinwa Seimitsu Group to the consolidated scope during the period, as well as the effects of foreign exchange and structural reforms, are disclosed. By segment, increased sales were driven by domestic sales of high-value-added engine valves and expansion in the North American and India markets. Full-year forecasts have been revised, and management highlights progress on the NC10 strategy targeting growth primarily in the India market.

Impact for Investors and Outlook

The consolidation of the Shinwa Seimitsu Group changes the segment composition, centered on valve lifters, and is expected to serve as a growth driver for the entire group. Expansion in the India market and increased sales of high-value-added products are anticipated. The full-year forecast for the fiscal year ending March 2027 has been revised; progress on NC10, which aims to improve profitability and maximize operating cash flow, will be key. The dividend policy indicates continuation of the initial forecast.