Financial Summary for the Fiscal Year Ending March 2026 [IFRS] (Consolidated)

Overview of Performance

For the fiscal year ending March 2026, consolidated revenue was 303.9 billion yen (1.8% decrease Year-over-Year), primarily impacted by a decline in orders in the automatic transmission-related business (AT Business). Meanwhile, operating income increased to 22.2 billion yen (1.8% increase Year-over-Year) due to productivity improvements and the closure of unprofitable subsidiaries. Profit before tax rose to 23.6 billion yen (15.9% increase Year-over-Year), supported by increased financial income. Net income attributable to owners of parent was 13.7 billion yen (7.3% increase Year-over-Year), achieving a profit increase. By segment, revenue for the Manual Transmission (MT) Business was 75.5 billion yen (2.2% increase Year-over-Year), Automatic Transmission (AT) Business was 188.3 billion yen (5.7% decrease Year-over-Year), Transmission Systems (TS) Business was 12.8 billion yen (7.9% decrease Year-over-Year), and Others was 27.4 billion yen (23.4% increase Year-over-Year). Regionally, sales growth in the Asia-Oceania region was noteworthy.

Financial Position and Cash Flow Status

At the end of the fiscal year ending March 2026, total assets amounted to 320.1 billion yen (5.3% increase from the previous fiscal year-end), total liabilities were 111.8 billion yen (2.0% increase from the previous fiscal year-end), and total equity was 208.3 billion yen (7.2% increase from the previous fiscal year-end). Net cash provided by operating activities increased to 40.6 billion yen (28.8% increase Year-over-Year). Cash used in investing activities was 20.1 billion yen (130.3% increase Year-over-Year), and cash used in financing activities was 17.0 billion yen (40.9% decrease Year-over-Year). Cash and cash equivalents at the end of the period totaled 74.5 billion yen (9.3% increase Year-over-Year).

Dividend Status and Outlook

The annual dividend for the fiscal year ending March 2026 is planned at 300.00 yen (20.0% increase Year-over-Year), with a year-end dividend of 150.00 yen scheduled. The consolidated earnings forecast for the fiscal year ending March 2027 is revenue of 305.0 billion yen (0.4% increase Year-over-Year), operating income of 24.5 billion yen (10.2% increase Year-over-Year), profit before tax of 23.0 billion yen (2.7% decrease Year-over-Year), and net income attributable to owners of parent of 14.0 billion yen (2.3% increase Year-over-Year). Geopolitical risks are not reflected in these forecasts. While advancing appropriate price pass-through measures against inflation and rising crude oil prices, the company aims to secure profits through improved management efficiency.