Fiscal Year 2025 Q3 (Third Quarter) Financial Presentation Materials

Overview of FY2025 Q3 Financial Results

Net sales for the third quarter of FY2025 were 72.086 billion yen, a 2.6% increase compared to the same period last year. This increase was mainly driven by sales growth in the domestic measurement and control business. Overseas sales grew principally in the UK but declined in Oceania due to inventory adjustments. Operating income was 4.358 billion yen, up 7.6% YoY, supported by increased sales in the domestic smart meter business, improved profit margins in the distribution board business, and SG&A reductions from overseas organizational restructuring. However, net income attributable to owners of parent was 294 million yen, a 87.4% decrease YoY, primarily due to the recording of a 2.04 billion yen extraordinary loss associated with withdrawal from the Middle East and Africa business.

Business and Regional Trends and Capital Policy

Domestically, shipments of second-generation smart meters progressed smoothly, resulting in revenue growth in the smart meter business; however, the solution and distribution board businesses experienced revenue declines. Overseas, smart meter-related projects in the UK and Europe contributed to increased sales, whereas revenue declined in Oceania due to customer inventory adjustments. The company decided to withdraw from the Middle East and Africa business by the end of FY2025 and recorded an extraordinary loss accordingly. The equity ratio improved by 2.4 points YoY to 54.3%, with the capital policy continuing to aim for maintaining around 50%. The company emphasizes balancing growth investments and shareholder returns, implementing dividend increases and partial cancellation of treasury stock acquisitions.