Quarterly Financial Summary (Japanese GAAP) (Consolidated) for the Second Quarter (Interim)

Performance Overview

For the interim period, revenue expanded to 85,804 million yen (up 7.1% YoY). However, operating income decreased to 4,360 million yen (down 30.9% YoY), ordinary income decreased to 6,060 million yen (down 28.2% YoY), and interim net income attributable to owners of parent decreased to 4,117 million yen (down 40.7% YoY) due to higher raw material and other costs and the effects of changes in accounting policies. The acquisition of Hastings Holding Corp. and strong demand for semiconductor and electronics-related materials contributed to revenue growth. Changes to the scope of consolidation were disclosed, and the financial position shows total assets increased to 250,395 million yen with a shareholders' equity ratio of 67.5%. The full-year forecast is unchanged.

Outlook and Factors

The full-year forecast remains unchanged at this time, but exchange rate movements, raw material price trends, and the continuing effects of post-acquisition accounting treatment may persist. By segment, piston rings and semiconductor-related businesses are driving growth, while other segments are affected by higher raw material costs. Synergy creation from the expanded consolidation scope and increased new borrowings are impacting cash flow on the financial side.