Financial Summary for the Second Quarter of the Fiscal Year Ending March 2027 (Interim) [Japanese GAAP] (Consolidated)

Overview of Results

Net sales for the interim period were 23,314 million yen, a 14.3% increase Year-over-Year. The ramp-up of new components for HEVs and expansion of the mobility business contributed significantly. However, changes in parts mix and costs associated with new product launches caused operating income to decline by -1.6%. Ordinary income was flat Year-over-Year, and interim net income attributable to owners of parent increased substantially by 74.4% due to the recording of extraordinary gains. By segment, parts manufacturing remained steady, solutions decreased due to the effect of a large order in the prior period, and mobility saw revenue growth but profit contraction due to higher expenses.

Outlook and Dividends

Revisions to the full-year earnings guidance have been announced. The financial summary discloses revisions to the full-year earnings forecast for the fiscal year ending March 2027 and adjustments to retained earnings distribution (interim and year-end dividend forecasts). The implementation of an interim dividend and a review of the year-end dividend forecast suggest a dividend increase policy. Continued ramp-up of new businesses is expected to support revenue growth and may contribute to maintaining financial soundness going forward.