Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Performance Overview

During the cumulative consolidated period of the third quarter ending March 2026, net sales totaled JPY 136.027 billion (3.4% decrease YoY), operating income was JPY 5.29 billion (17.4% decrease YoY), ordinary income was JPY 4.811 billion (21.6% decrease YoY), and net income attributable to owners of parent for the quarter was JPY 4.235 billion (1.2% decrease YoY). The electronic components segment experienced a decline in sales due to sluggish automotive-related demand and ongoing customer inventory adjustments, resulting in a 21.8% decrease in segment profit YoY. The electronic and electrical equipment segment saw revenues decline due to stagnation in semiconductor-related and PCB capital investments, with segment profit falling 16.8%. Conversely, the chemical segment’s sales increased 6.2% supported by growth in overseas shipments of cosmetic base materials, leading to a turnaround to profitability. Other segments’ sales increased 139.3% thanks to contract analysis and testing services, but segment losses expanded due to costs related to new business initiatives.

Financial Position and Future Outlook

As of the end of the third quarter of the fiscal year ending March 2026, total assets increased by JPY 8.623 billion compared to the end of the previous consolidated fiscal year, reaching JPY 138.999 billion. This was mainly due to an increase in current assets. Liabilities rose by JPY 6.414 billion to JPY 71.243 billion primarily due to an increase in short-term borrowings. Net assets increased by JPY 2.208 billion to JPY 67.755 billion, reflecting an increase in foreign currency translation adjustments. Consolidated cash flows recorded inflows of JPY 3.844 billion from operating activities, inflows of JPY 0.233 billion from investing activities, and outflows of JPY 1.676 billion from financing activities, resulting in a net increase of JPY 3.420 billion in cash and cash equivalents. There is no revision to the full-year consolidated earnings forecast, and if any changes arise going forward, they will be appropriately disclosed.