Totech Group Supplemental Materials for Fiscal Year Ending March 2027 Second Quarter Financial Results

Performance Overview

The 2Q results offset a decline in equipment sales with steady progress in instrumentation construction and contributions from domestic and overseas affiliates, achieving record-high revenue and operating income overall. Revenue was 80.8 hundred million yen (YoY +3.0%), operating income was 8.6 hundred million yen (YoY +18.6%), and operating margin improved to 10.7%. Order intake reached 142.4 hundred million yen (YoY +30.4%), and order backlog also expanded. Full-year forecasts were revised upward, with revenue of 180.0 hundred million yen, operating income of 19.0 hundred million yen, and net income of 14.4 hundred million yen expected.

Outlook and Shareholder Returns

In the second half, the company will continue investments in human resources, branding, and IT while aiming to increase profits by absorbing these costs. In line with the second medium-term management plan, Totech will maintain a DOE of 6% plus progressive dividend policy to ensure stability and transparency of shareholder returns. Strategic investments through the end of fiscal 2027 are planned at approximately 50.0 hundred million yen, and cash and deposits are planned at approximately 11.0 hundred million yen, targeting sustainable ROE of 12–15% by the end of fiscal 2030.