Fiscal Year 2025 Q3 Financial Presentation Materials

Overview of Fiscal Year 2025 Q3 Cumulative Results

Net sales declined 8% year-over-year to 282.2 billion yen. The decrease was influenced by the removal of large projects such as the new currency support measures; however, a certain sales level was maintained. Operating income was 6.1 billion yen, down 20% YoY, in line with expectations. Excluding one-time factors, operating income was 5.9 billion yen. Net income attributable to owners of parent increased significantly to 7.4 billion yen YoY, due in part to special profits recorded from the participation in Etria Corporation.

Performance Trends by Segment

In Public Solutions, operating income increased substantially due to higher sales in social infrastructure and special equipment systems, leading to a full-year operating income forecast upward revision of 4.0 billion yen to 17.5 billion yen. Enterprise Solutions experienced a profit decline following the loss of large projects but advanced efforts in acquiring new customers and cost reduction initiatives. Component Products saw declines in both sales and profits due to reduced printer consumables and stagnation in IoT devices; the full-year operating income forecast was lowered by 1.0 billion yen to 2.0 billion yen. The EMS business is expected to see a profit decrease due to inventory adjustments and other factors.

Revision of Full-Year Fiscal 2025 Earnings Forecast

Net sales were revised downward by 10.0 billion yen from the previous forecast to 430.0 billion yen. Conversely, operating income was revised upward by 1.0 billion yen to 20.0 billion yen, and net income attributable to owners of parent was raised by 3.0 billion yen to 19.0 billion yen. These revisions reflect factors such as foreign exchange and the sale of policy holdings. Operating margin is expected to be 4.7%. The dividend per share will be maintained at 50 yen, with consideration for future adjustments based on performance trends.