Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Performance Overview

For the cumulative consolidated period of the third quarter of the fiscal year ending March 2026, net sales were JPY 436,977 million (up 4.8% YoY), mainly supported by contributions from AI-related products and recovery in industrial equipment. Operating income was JPY 9,413 million (down 6.0% YoY) due to intensified competition in the new power supply-demand adjustment market, resulting in a decline. However, ordinary income increased to JPY 6,769 million (up 2.3% YoY) thanks to reduced financing costs. Net income attributable to owners of the parent was JPY 3,793 million (down 29.9% YoY), affected by the elimination of tax benefits related to the liquidation of a consolidated subsidiary.

Segment Performance

The Devices BU posted net sales of JPY 385,131 million (up 2.8% YoY) and segment income of JPY 8,290 million (up 1.1% YoY), driven by growth in automotive and AI-related products. The EMS business saw a decline in revenue due to the absence of effects from new smartphone models seen in the previous year. The Systems BU recorded net sales of JPY 32,747 million (down 8.9% YoY) and segment income of JPY 1,770 million (down 43.6% YoY), impacted by a revenue decrease in the Eco Solution business. The newly established IT & SIer BU reported net sales of JPY 19,098 million and segment income of JPY 741 million, driven by new project acquisitions following the consolidation of PCI Group as a subsidiary.

Financial Position and Dividends

Total assets increased to JPY 341,579 million compared to the previous fiscal year-end. Although liabilities also increased, net assets grew to JPY 104,795 million. The equity ratio declined to 26.0% from 27.7% at the end of the prior fiscal year. The annual dividend forecast remains at JPY 125.00 (up from JPY 120.00 previously), with a year-end dividend of JPY 65.00 planned and no revisions to the dividend forecast.

Business Combinations and Future Outlook

The provisional accounting treatment for the business combination with PCI Holdings Co., Ltd. in September 2024 has been finalized. In October 2025, consolidated subsidiary RESTAR FRAMOS Technologies GmbH acquired the semiconductor product agency business of FRAMOS GmbH and shares of FRAMOS Technologies Inc. This acquisition secures sales rights in Europe and the US, expanding business in the industrial equipment sector and strengthening global sales. The full-year earnings forecast remains unchanged, expecting a recovery despite uncertainty in semiconductor demand, with a plan weighted toward the fourth quarter.