Financial Summary for the First Quarter of the Fiscal Year Ending December 2026〔Japanese GAAP〕(Consolidated)

Overview of Financial Performance

Net sales for the first quarter of the fiscal year ending December 2026 were 18,485 million yen (5.0% YoY decrease), impacted by sluggish OEM product sales in the core photography-related business. Conversely, the Surveillance & FA-related business and Mobility & Healthcare business saw strong demand and achieved double-digit sales growth. Operating income was 3,441 million yen (18.7% YoY decrease), ordinary income was 3,363 million yen (20.6% YoY decrease), and net income attributable to owners of parent was 2,712 million yen (4.5% YoY decrease). Efforts to reduce costs continued, but increased raw material and labor costs alongside higher R&D expenses pressured profits.

Financial Position and Outlook

Total assets decreased to 102,868 million yen compared to the previous fiscal year-end, with net assets amounting to 84,861 million yen. The equity ratio improved to 82.5% from the previous fiscal year-end. The dividend forecast remains unchanged at an annual 37.00 yen. The consolidated earnings forecast for the fiscal year ending December 2026 is maintained, with performance exceeding plans, supported by strong results in the Surveillance & FA-related business and Mobility & Healthcare business. However, uncertainty is rising due to trade policy ambiguity, deteriorating conditions in the Middle East, and semiconductor shortages.