2026 Fiscal Year Q3 Financial Summary〔IFRS〕(Consolidated)

Overview of Business Results

For the cumulative consolidated third quarter period of the fiscal year ending March 2026, revenue reached 3,769.1 billion yen (up 4.6% YoY), primarily driven by increased vehicle production volume at customers and higher sales of powertrain units. Operating income rose to 156.3 billion yen (up 34.8% YoY), profit before tax for the quarter was 177.5 billion yen (up 92.1% YoY), and net income attributable to owners of parent for the quarter significantly increased to 107.3 billion yen (up 115.7% YoY). Although there were downward pressures from yen appreciation, tariffs, personnel costs and future investments, increased production volumes and improvements in the corporate structure have bolstered profits.

Segment Performance

The Japan segment posted revenue of 2,373.4 billion yen (up 2.2% YoY) and operating income of 48.4 billion yen (up 26.4% YoY). North America saw revenue of 874.1 billion yen (up 10.7% YoY) and operating income of 17.9 billion yen (significant increase). Europe recorded revenue of 212.7 billion yen (down 2.7% YoY) and operating income of 4.9 billion yen (up 111.7% YoY). China posted revenue of 464.4 billion yen (down 1.2% YoY) and operating income of 30.8 billion yen (up 9.2% YoY). ASEAN & India had revenue of 434.7 billion yen (up 11.5% YoY) and operating income of 50.3 billion yen (up 14.5% YoY). Despite fluctuations in sales volume and currency exchange impacts in each region, overall corporate structure improvements have progressed.

Overview of Financial Position

Total assets amounted to 4,372.8 billion yen (up 2.1% from the previous consolidated fiscal year-end), total liabilities were 1,965.2 billion yen (down 4.2%), and total equity reached 2,407.5 billion yen (up 7.8%). While some decline was seen in current assets, increases in other financial assets and inventories contributed to overall asset growth. Liabilities decreased primarily due to reductions in trade payables, and equity rose due to gains on securities valuation and recording quarterly income.

Dividends and Earnings Forecast

The annual dividend forecast for the fiscal year ending March 2026 remains unchanged at 100 yen, with an interim dividend of 30 yen and a year-end dividend of 70 yen. The consolidated full-year earnings forecast, announced on April 25, 2025, is also unchanged, with revenue expected at 4,900 billion yen (up 0.1% YoY), operating income at 205 billion yen (up 1.0% YoY), and net income attributable to owners of parent at 125 billion yen (up 16.2% YoY).

Share Buyback and Cancellation

At the Board of Directors meeting on April 25, 2025, resolutions were made regarding the acquisition and cancellation of treasury stock. The maximum number of shares to be acquired was set at 130 million shares, and the total acquisition price limit was revised upward from 120 billion yen (maximum) to 150 billion yen (maximum). The acquisition period is from May 1, 2025, to March 31, 2026, and acquisitions will be conducted through market purchases and tender offers. In January 2026, conditions of the tender offer were also revised, including changes to the number of shares to acquire and price conditions.