Fiscal Year 2025 Q3 Financial Results Presentation

Performance Overview

For the cumulative Q3 FY2025 period, net sales amounted to 47.1 billion yen (YoY +11.8%), operating income was 4.46 billion yen (+15.1%), and operating margin was 9.5% (+0.3 points), marking record highs for both net sales and operating income. Although the EBITDA margin declined to 20.1% (-1.7 points), quarterly net income significantly increased to 3.704 billion yen (+27.0%). The revenue growth was supported by strong demand in infotainment and powertrain sectors within the mobility market, as well as robust demand in the China region. Operating margin showed an improving trend as the cost increases from raw materials and advanced investments in new factories were offset by cost reductions and structural reforms.

Earnings Forecast and Market Trends

Full-year net sales are projected at 58.0 billion yen (+3.0% YoY) and operating income at 5.5 billion yen (+3.6%), with potential upside based on progress through Q3. Production adjustments ahead of the Chinese Lunar New Year and the impact of rising raw material costs are being closely monitored, leaving the Q2 revised plan unchanged. By market segment, the mobility market accounts for approximately 86% of total sales, with the infotainment and powertrain sectors performing steadily. The consumer market declined due to reduced demand for gaming consoles, while the industrial market showed recovery mainly in the energy management field. The dividend is scheduled to increase to 150 yen per share.