Summary of Q&A at the Full-Year Earnings Presentation for the Fiscal Year Ending March 2026

Overview of Performance and Response to Market Environment

In the Q&A session at the full-year earnings presentation for the fiscal year ending March 2026, it was explained that the impact of raw material prices due to the Middle East situation is not currently factored into the earnings guidance, and there are no significant concerns regarding material procurement. Measures such as changing suppliers are being considered in response to rising raw material prices, and alternative materials are being explored for some oil products. It was also stated that the aluminum usage increase associated with the growing demand for heat exchangers does not necessarily increase proportionally due to product downsizing and thinning.

Medium- to Long-Term Strategy and Growth Area Outlook

The market capitalization target of 100 billion yen for the fiscal year 2030 is set as a minimum target to maintain standards as a Prime-listed company. The multifunctional radiator aims for 2.2 million units in orders by 2030, with sales of approximately 10 billion yen, accounting for about 20% of the total radiator business sales. New business areas such as data centers, AI, humanoids, and space sectors are expected to be profitable within 5 to 10 years. The company plans to focus on enhancing corporate value through improving ROE and reducing capital costs, as well as strengthening IR activities.