Financial Results for the Fiscal Year Ending March 2026 [Japanese Standard] (Consolidated)

Overview of Business Performance

For the fiscal year ending March 2026, consolidated net sales were JPY 1,214,196 million (up 17.4% YoY), operating profit was JPY 41,950 million (up 5.8% YoY), ordinary income was JPY 37,392 million (up 0.2% YoY), and net income attributable to owners of the parent was JPY 27,765 million (up 9.8% YoY). The favorable semiconductor market, increased demand for servers used in AI, and expansion of cloud services contributed to these results. Segment-wise, sales of the Integrated Circuits and Electronic Devices and Others segment reached JPY 1,040,045 million (up 18.2% YoY), with operating profit of JPY 24,735 million (down 6.1% YoY). The Cybersecurity and Other IT Solutions segment reported sales of JPY 174,230 million (up 13.2% YoY) and operating profit of JPY 17,213 million (up 29.2% YoY).

Financial Position and Cash Flows

Total assets increased by JPY 144,448 million from the previous year to JPY 700,887 million, but the equity ratio decreased to 39.8% from 45.4%. Cash flows from operating activities increased by JPY 18,774 million, while cash flows from investing activities decreased by JPY 1,306 million, and cash flows from financing activities decreased by JPY 15,158 million. The ending balance of cash and cash equivalents was JPY 54,370 million.

Dividend Policy

The annual dividend for the fiscal year ending March 2026 was JPY 70 (JPY 35 at the interim and JPY 35 at the year-end), nearly unchanged from the previous year's total of JPY 12,547 million, which was JPY 12,499 million. The payout ratio was 45.0%, and the dividend yield on net assets was 4.7%. The dividend forecast for the fiscal year ending March 2027 is JPY 80 annually (JPY 40 interim and JPY 40 at year-end).

Earnings Forecast for the Fiscal Year Ending March 2027

The consolidated earnings forecast for the fiscal year ending March 2027 projects net sales of JPY 1,300,000 million (up 7.1% YoY), operating profit of JPY 52,000 million (up 24.0% YoY), ordinary income of JPY 47,000 million (up 25.7% YoY), and net income attributable to owners of the parent of JPY 32,000 million (up 15.2% YoY). The forecasted earnings per share is JPY 179.21. Assumed exchange rate is 1 USD = JPY 150.