Supplementary Explanation Materials for Q3 FY2026 Earnings

Overview of Business Performance

In Q3 FY2026, net sales amounted to 88.1 billion yen (2.0% YoY increase), operating income was 6.5 billion yen (21.3% YoY increase), ordinary income was 8.5 billion yen (51.2% YoY increase), and quarterly net income attributable to owners of parent was 6.1 billion yen (113.9% YoY increase), achieving growth in both revenue and profit. The depreciation of the yen and strong performance in the North America segment contributed to these results. On the other hand, a special loss was recorded for a settlement payment related to damages negotiations concerning violations of US antitrust laws.

Segment Performance and Outlook

In the Japan segment, while net sales remained nearly flat due to a decline in automobile production volume, operating income decreased. The North America segment saw significant improvement in both net sales and operating income driven by performance recovery at the Mexico base. The East Asia segment posted a substantial increase in operating income due to continued rationalization activities. The Southeast Asia segment experienced a decrease in operating income due to declining sales. The full-year earnings forecast has been revised upward reflecting customer automobile production not decreasing as expected and anticipated special gains from the sale of policy-holding shares.