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

Overview of Business Results

In the consolidated cumulative period for the third quarter of the fiscal year ending March 2026, net sales amounted to 3,686,897 million yen (7.1% YoY increase), operating income was 271,045 million yen (31.0% YoY increase), ordinary income was 276,459 million yen (39.7% YoY increase), and quarterly net income attributable to owners of parent was 177,214 million yen (55.9% YoY increase). By segment, all businesses — Environment & Energy-related, Information & Communications-related, Automotive-related, Electronics-related, and Industrial Materials-related businesses — achieved year-on-year increases in both sales and profits. Particularly, the Information & Communications-related business saw a significant increase in operating income due to rising demand for optical devices driven by the expansion of the generative AI market.

Financial Position and Revision of Earnings Forecast

At the end of the third quarter, total assets stood at 4,844,534 million yen (an increase of 402,905 million yen compared to the end of the previous fiscal year), net assets were 2,659,222 million yen (an increase of 128,785 million yen), and the equity ratio slightly decreased to 51.3%. The full-year earnings forecast was revised upward, with net sales of 4,900,000 million yen (3.2% increase from the previous forecast), operating income of 375,000 million yen (10.3% increase), and net income attributable to owners of parent of 320,000 million yen (39.1% increase). This revision reflects steady demand in the information & communications and automotive-related businesses, as well as an expected special gain of approximately 70 billion yen from the transfer of shares in Sumitomo Densetsu Co., Ltd.