Supplementary Materials for Q3 Financial Results for Fiscal Year Ending March 2026

Performance Overview

Net sales for the third quarter of the fiscal year ending March 2026 were JPY 226.4 billion, a 3.0% decrease year-over-year. The primary factors included a decline in orders for AT products in the Americas and Japan and foreign exchange impacts; however, strong sales of two-wheeler and AT products in Asia and AT products in China contributed to maintaining progress in line with full-year forecasts. Operating income was JPY 16.7 billion, up 3.4% YoY, despite decreased AT product orders and increased personnel-related expenses. This increase was supported by the withdrawal from the unprofitable U.S. subsidiary, sales growth in China and other Asian regions, and price pass-through of rising costs. Net income reached JPY 11.1 billion, benefiting from increased operating income and contributions from investment income.

Full-Year Forecast and Shareholder Returns

Due to the yen depreciating more than expected against foreign currencies and third quarter performance exceeding previous forecasts, the full-year operating income forecast was revised upward from JPY 21.0 billion to JPY 22.0 billion. Net sales are expected at JPY 300.0 billion. Regarding shareholder returns, to maintain an optimal capital structure with an equity ratio of 60%, the company aims for a total payout ratio of 100% over fiscal years 2025 and 2026, continuing stable dividends while maintaining a DOE floor of 5%.