Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending March 2027

Overview of Results

For the period, consolidated net sales amounted to 10,437 million yen, a 10.1% decrease year-over-year. The decline reflects reduced demand at the U.S. subsidiary, foreign exchange impacts, and deteriorating sales across product lines, resulting in an operating loss. Both Japan and U.S. segments posted losses. The cost of sales ratio rose to 44.4%, mainly due to increased burden of fixed manufacturing costs and higher import costs from yen depreciation. The interim net loss expanded to 1,749 million yen. The financial position declined to total assets of 33,528 million yen and net assets of 23,070 million yen at the interim period end. Supplementary financial materials are available and an earnings presentation will be held.

Outlook and Matters Going Forward

The full-year earnings forecast for the fiscal year ending March 2027 has been revised and disclosed. Subsequent events in the interim period include rationalization and personnel reductions at the U.S. subsidiary, and retirement-related expenses are expected to be recorded in fiscal 2027. There is a possibility of further disclosures regarding shareholder return policy and additional revisions to earnings guidance. For both Japan and U.S. segments, restoring profitability remains a challenge; controlling selling, general and administrative expenses and improving cost structure are key.