(Correction) “Materials for the FY2026 Q3 Financial Results Briefing” and “Management Reform Project Progress Report”

Performance Overview

For the cumulative third quarter of FY2026, net sales amounted to JPY 1,521.996 billion (2.0% year-over-year increase), operating income was JPY 70.621 billion (475.3% year-over-year increase), and net income attributable to owners of parent was JPY 97.951 billion (434.3% year-over-year increase), achieving a significant profit increase. Foreign exchange fluctuations caused approximately JPY 12 billion reduction in net sales and about JPY 2 billion positive impact on income before income taxes. By segment, the increase in core components sales was the main driver, while the Solutions segment saw a decrease in revenue due to lower sales in the Document Solutions business. The decreases in extraordinary losses also contributed to the improvement in operating income and income before income taxes.

Progress of Management Reform and Capital Policy

As part of the progress in the management reform project, the semiconductor components and organic materials businesses, as well as the electronic components business, have turned profitable. The plan to reduce strategic stockholdings has also advanced, improving the net asset ratio of strategic stockholdings to 47.9% at the end of the third quarter of FY2026. Regarding share buybacks, approximately JPY 120 billion (about 59 million shares) are expected to be purchased by December 31, 2025, with a cumulative total of approximately JPY 200 billion by the end of March 2026. This aims to enhance capital efficiency.