FY2026 March Quarterly Financial Results Explanation and Q&A Session

Overview of Results

For the year ending March 2026, net sales are expected to be ¥27.2 billion (up 0.1% year over year), showing a flat to slight increase; however, operating profit is expected to decline sharply year over year due to higher depreciation from the new factory, production halts reducing sales, and higher selling, general and administrative expenses. For the year ending March 2027, net sales are expected to reach ¥29.1 billion and operating profit ¥1.7 billion. Growth in profitability is anticipated from expansion of robot-compatible products and new project areas. In the medium to long term, demand is expected to grow supported by early-stage expansion in the hydrogen-related market.

Outlook and Shareholder Return

For the year ending March 2027, the full-year forecast is net sales of ¥29.1 billion and operating profit of ¥1.7 billion. Through the effects of the new factory, price revisions, and expansion of new field projects, profitability is aimed to improve. As for shareholder return, dividends are projected to be ¥40 for the year ended March 2026 and ¥32 for the year ended March 2027. Raw material risk may be influenced by Middle East developments, but risk diversification is being pursued through consideration of alternative materials and diversification of suppliers.