Financial Results Briefing for Fiscal Year 2025

Overview of Performance

For fiscal year 2025, net sales reached ¥481.1 billion (up 7.3% YoY), and operating income was ¥10.8 billion (up 2.3%). However, net income recorded a loss of ¥158.4 billion (down 32.9%), reflecting significant decreases. Although gross profit was affected by increased variable costs due to rising metal prices, the company returned to profit thanks to higher sales and fixed cost reductions. The net income decline was mainly due to impairment losses on fixed assets in the SiC business. For FY2026, the company plans net sales of ¥510.0 billion (up 6.0%), operating income of ¥30.0 billion (up 176.1%), and net income of ¥29.0 billion.

Segment, Market Trends, and Future Outlook

In terms of markets, automotive accounts for 49.2%, consumer electronics 21.9%, industrial machinery 12.7%, communications 3.8%, and C&S 12.3%. Automotive sales increased by 5.8% YoY, consumer electronics grew by 13.0%, and communications declined by 7.0%. Segmentation shows that LSI accounts for 45.4% and semiconductor devices for 42.7%, with LSI up 7.1% and semiconductor devices up 9.7%. Geographically, Japan accounts for 52.4%, China 14.6%, other Asia 10.4%, the U.S. 11.6%, and Europe 10.9%. Going forward, the company intends to continue inventory reduction primarily through raw materials, aiming for inventory turnover of six months or less by the end of FY2026. Additionally, the company has initiated a due diligence process for integrating with Toshiba D&S's semiconductor business, and discussions are ongoing regarding a merger with Mitsubishi Electric’s power device business.