Fiscal Year Ending March 2026 Q3 Financial Presentation

Performance Overview

Cumulative net sales for the third quarter of fiscal 2025 reached 312.7 billion yen, marking a 19% increase year-over-year, driven by increased overseas sales in the semiconductor business and acquisition of new distribution channels. Operating income was 10.8 billion yen, nearly flat year-over-year; however, the CPS Solutions segment was affected by lower-than-expected sales of autonomous driving buses and increased selling, general and administrative expenses. Net income attributable to owners of parent was 7.3 billion yen, also almost flat year-over-year. By segment, the semiconductor business recorded net sales of 268.1 billion yen (21% YoY increase) and operating income of 9 billion yen (4% increase), the cybersecurity business achieved net sales of 41.2 billion yen (5% increase) and operating income of 3.9 billion yen (15% increase), while the CPS Solutions business posted net sales of 3.5 billion yen (96% increase) but an operating loss of 2.1 billion yen.

Outlook and Dividends

The full-year net sales target for fiscal 2025 was revised upward to 1.2 trillion yen with a progress rate of 74%, reflecting stronger-than-expected overseas sales in the semiconductor business. Conversely, the operating income target of 40 billion yen is on a progress rate of 71%, lowered due to weak sales in the CPS Solutions business. The net income target remains at 27 billion yen, with a progress rate of 68%. Dividends for fiscal 2025 are planned at 70 yen per share annually (35 yen interim, 35 yen year-end), with an expected payout ratio of 46%. A stock split (1 share to 3 shares) is scheduled for October 1, 2024.