Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

For the cumulative third quarter period of the fiscal year ending March 2026, consolidated results were net sales of JPY 482.714 billion (down 3.6% YoY), operating income of JPY 10.096 billion (down 44.6% YoY), ordinary income of JPY 5.443 billion (down 60.0% YoY), and net income attributable to owners of parent of JPY 863 million (down 91.1% YoY). The principal causes of profit decline were demand slowdown due to tariff policies and intensified sales competition in the Americas business segment. While domestic and European, Asian, and Chinese markets remained robust, reduced sales volume and rising costs in the Americas significantly impacted performance. Operating income before goodwill amortization was JPY 16.492 billion (down 36.9% YoY), resulting in an operating margin of 3.4%, down 1.8 points from the previous year.

Segment Performance and Financial Position

The domestic business recorded net sales of JPY 143.142 billion (down 2.1% YoY) and operating income of JPY 2.975 billion (down 3.3% YoY), maintaining steady performance. The overseas business posted net sales of JPY 339.571 billion (down 4.2% YoY) and operating income of JPY 7.12 billion (down 53.0% YoY), reflecting a profit decline. Notably, increased tariff burdens and reduced demand in the Americas had a major impact. The consolidated financial position showed total assets of JPY 519.82 billion, total liabilities of JPY 389.797 billion, and net assets of JPY 130.023 billion, with an equity ratio improving to 24.9% YoY. The dividend forecast remains unchanged at zero.