Fiscal Year Ending March 2026 3rd Quarter Financial Summary [Japanese GAAP] (Consolidated) (Completion of Interim Review by Certified Public Accountants)

Overview of Business Performance

During the cumulative third quarter consolidated period of the fiscal year ending March 2026, net sales were ¥103,394 million (4.0% increase YoY), operating income was ¥5,867 million (27.7% increase YoY), ordinary income was ¥5,126 million (16.0% increase YoY), and net income attributable to owners of parent for the quarter was ¥2,458 million (67.1% increase YoY). These results were mainly contributed by improved profitability in the Powertrain business, steady demand in the Marine & Energy and Life businesses, and the effect of a weaker yen. By segment, the Powertrain business recorded net sales of ¥54,509 million (3.8% increase YoY) and operating income of ¥7,175 million (7.8% increase YoY); the Marine & Energy business had net sales of ¥14,313 million (8.8% increase YoY) and operating income of ¥2,841 million (4.2% increase YoY); the Life business posted net sales of ¥16,919 million (9.7% increase YoY) and operating income of ¥2,857 million (26.1% increase YoY). On the other hand, the Frontier business recorded net sales of ¥17,012 million (3.9% decrease YoY) and a loss of ¥924 million, with the loss narrowing but net sales declining.

Financial Position and Future Outlook

Total assets stood at ¥203,837 million, net assets at ¥85,637 million, and equity ratio at 37.4%, all increasing from the previous fiscal year-end, indicating a stable financial base. Cash flow from operating activities was an inflow of ¥7,669 million, investing activities were outflows of ¥6,649 million, and financing activities generated inflows of ¥488 million, resulting in an increase of cash and cash equivalents to ¥25,859 million. The full-year earnings guidance for the fiscal year ending March 2026 projects net sales of ¥134,000 million, operating income of ¥8,000 million, ordinary income of ¥7,000 million, and net income attributable to owners of parent of ¥4,000 million (revised upward by ¥500 million from the previous forecast). The dividend forecast remains unchanged at an annual total of ¥28 (with ¥16 planned for year-end). The upward revision in net income forecast was due to the recording of special gains.