Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

In the consolidated cumulative third quarter of the fiscal year ending March 2026, net sales increased to JPY 89,766 million (8.6% YoY increase) and operating income rose to JPY 3,793 million (19.6% YoY increase), achieving revenue and profit growth. Growth was driven by expanding demand for AI servers and data centers, along with steady information and communication related to smartphones. Meanwhile, net income attributable to owners of the parent for the quarter was JPY 675 million (63.1% YoY decrease) due to recording a special loss related to the transfer of equity in a Chinese equity-method affiliated company. By segment, the electronic components-related business achieved net sales of JPY 59,638 million (6.8% YoY increase), the electronic chemical mounting-related business posted JPY 28,978 million (15.7% YoY increase), both with increased revenue and profitability, whereas the information equipment-related business recorded net sales of JPY 1,199 million (34.2% YoY decrease) with a widened deficit.

Financial Position and Outlook

Total assets at the end of the third quarter increased to JPY 125,135 million compared to the end of the previous fiscal year, while net assets decreased to JPY 61,228 million, resulting in an equity ratio of 48.8%. The increase in liabilities was mainly due to an increase in interest-bearing debt. The full-year earnings guidance anticipates net sales of JPY 120 billion (5.2% YoY increase), but has been revised to a decrease in operating income to JPY 5,000 million (3.8% YoY decrease) and net income to JPY 600 million (78.4% YoY decrease). These revisions incorporate costs associated with restructuring production bases in China and reviewing the business portfolio.