Financial Summary for the Third Quarter of Fiscal Year March 2026 (Japanese GAAP) (Consolidated)

Performance Overview

Net sales for the consolidated cumulative third quarter of the fiscal year ending March 2026 amounted to 58,809 million yen (1.2% YoY increase). Despite a challenging economic environment in Europe with the B&P market underperforming particularly in Germany and falling below the previous year's level, the healthcare market recovered in Europe, North America, and China, surpassing last year's results. Operating income declined to 1,319 million yen (39.1% YoY decrease), but special gains from the sale of investment securities amounting to 1,328 million yen were recorded, resulting in net income attributable to owners of parent of 2,842 million yen (42.6% YoY increase).

Outlook and Revision of Earnings Forecast

The full-year earnings forecast for the fiscal year ending March 2026 has been revised downward to net sales of 79,000 million yen (7.1% decrease from the previous forecast), operating income of 1,400 million yen (70.8% decrease), ordinary income of 2,900 million yen (52.5% decrease), and net income of 3,200 million yen (27.3% decrease). The economic stagnation in Europe, decreased sales in the German market, and weakening economic conditions in China are expected to continue impacting demand in the B&P and creative work markets. Additionally, impairment losses from excess inventory valuation of legacy models, asset retirement losses, and impairment losses are anticipated. However, some gains are expected from exchange rate revisions.