First Quarter Financial Results for the Fiscal Year Ending March 2027 – Supplemental Explanations

Overview of performance

For the first quarter, consolidated net sales were 11.4 billion yen and operating income was 1.17 billion yen, below the previous year. The Japan segment experienced weak shipments of central air conditioning equipment, and the Asia segment saw reduced sales due to a slowdown in the Chinese real estate market. Although demand for data centers and large-scale buildings remained solid, overall profitability was squeezed by increased selling, general and administrative costs. For the full year, the company aims to achieve the mid-term plan targets by capitalizing on the backlog from the second quarter onward and passing through prices as needed.

Outlook and shareholder returns

Full-year results are expected to be net sales of 63.0 billion yen and operating income of 10.0 billion yen. Domestic orders have risen to a record high, and the policy is to secure volume by capturing remaining unawarded orders. SG&A costs are expected to rise due to increases in personnel and logistics costs, but this will be offset by price realization. The company will continue long-term transformation and growth investments to achieve the final targets of the mid-term plan. Regarding shareholder returns, treasury stock acquisitions up to the mid-term plan ceiling are planned, with a dividend of 50 yen in total, comprising 20 yen interim and 30 yen year-end.