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

Overview of Results

In the interim period of the fiscal year ending March 2027, Shindengen Electric Manufacturing Co.,Ltd. recorded net sales of 60,613 million yen, an increase of 11.7% year-on-year, while operating income declined substantially to 1,243 million yen (down 46.3% year-on-year). Ordinary income was 665 million yen (down 73.0%), and interim net income attributable to owners of parent was 640 million yen (down 73.6%), showing significant decreases in profitability. Sales growth was driven by contributions from businesses acquired through M&A and increased sales of two-wheeler products, particularly in India and ASEAN, whereas rising raw material costs, higher labor expenses, and EV-related costs compressed profits. The company has issued a revision to its full-year earnings forecast.

Financial Position and Outlook

Total assets stood at 156,701 million yen, the equity ratio was 46.8%, and net assets were 73,332 million yen, indicating a solid financial base. Assets expanded at the end of the interim period due in part to increases in cash and deposits. The company plans to expand production capacity, including progressing construction of a second plant, and to grow its Power Devices and Power Units businesses in growth markets centered on India. However, attention should be paid to cost factors such as special losses related to the discontinuation of EV charger sales and other expense items.