Financial Summary for the Second Quarter of FY August 2026 (Interim) [Japanese GAAP] (Consolidated)

Overview of Performance

Consolidated results for the second quarter of FY August 2026 posted net sales of 16,106 million yen (8.7% YoY increase), operating income of 5,097 million yen (22.2% YoY increase), ordinary income of 5,619 million yen (31.4% YoY increase), and net income attributable to owners of parent of 3,898 million yen (32.6% YoY increase), achieving higher revenue and profit and recording the highest quarterly net sales and operating income to date. Key factors included continued yen depreciation, resumption of diamond bur sales in China, increased orders at German subsidiary MMG, and strong sales of Aireless needle-related products in Asia. Despite increased selling, general and administrative expenses, operating income significantly grew due to a lower fixed cost ratio.

Segment Performance and Outlook

By segment, surgical-related products reported net sales of 4,880 million yen (3.4% YoY increase) and segment profit of 1,726 million yen (5.1% YoY increase); Aireless needle-related products posted net sales of 5,882 million yen (5.9% YoY increase) and segment profit of 2,366 million yen (14.4% YoY increase); dental-related products achieved net sales of 5,343 million yen (17.8% YoY increase) and segment profit of 1,004 million yen (118.0% YoY increase). The resumption of diamond bur sales in China contributed significantly, along with efforts to restructure MMG’s business and expand the company brand in Europe. There is no revision to the full-year earnings forecast, and the annual dividend is forecasted at 41.00 yen (previous year 39.00 yen).