Notice Regarding Differences Between Consolidated Earnings Guidance and Actual Results for the Second Quarter Cumulative Period of the Fiscal Year Ending August 2026

Regarding the Differences Between Earnings Guidance and Actual Results

For the second quarter cumulative period of the fiscal year ending August 2026, net sales reached JPY 16,106 million, representing a 1.6% increase from the previous forecast of JPY 15,850 million. Operating income was JPY 5,097 million, up 18.5%, ordinary income was JPY 5,619 million, showing a significant 35.4% increase, and net income attributable to owners of parent was JPY 3,898 million, up 29.9%. These profit increases were mainly driven by continued depreciation of the yen boosting overseas sales, resumption of diamond burs sales in China, and recording of foreign exchange gains.

Future Outlook and Impact on Investors

The ongoing depreciation of the yen continues to positively impact earnings, with expectations for expansion of overseas operations. The recording of foreign exchange gains has also significantly contributed to the increase in ordinary income, making it important to monitor future currency fluctuations and their effects on performance. For investors, the actual results exceeding the earnings guidance provide important confirmation of the company's enhanced profitability.