Fiscal Year Ending March 2026 Q3 Financial Presentation Materials (Highlight Information)

Performance Overview

For the third quarter of the fiscal year ending March 2026, net sales amounted to 221.6 billion yen (3.8% decrease YoY). Although gross profit increased to 30.6 billion yen (3.7% increase YoY), operating income declined to 10 billion yen (5.0% decrease YoY) due to an increase in selling, general and administrative expenses (20.6 billion yen, 8.5% increase YoY). Ordinary income was 10.7 billion yen (10.4% decrease YoY), quarterly income before income taxes and minority interests was 10.8 billion yen (15.5% decrease YoY), and net income attributable to owners of parent was 7.6 billion yen (16.7% decrease YoY). Major factors for the profit decline include decreased sales, increased SG&A expenses, and the absence of reversals of allowance for doubtful accounts and gains on sale of investment securities recorded in the same period last year.

Full-Year Earnings Guidance and Financial Position

The full-year earnings guidance was revised downward based on the progress through the third quarter and the business environment, with net sales projected at 300 billion yen (previously 330 billion yen) and quarterly income before income taxes adjusted to 14.5 billion yen (previously 16 billion yen). Meanwhile, the equity ratio remains high at 64.7%, with ROE at 10.8% and ROIC at 9.6%. The company continues to promote the medium-term management plan 'Chori Innovation Plan 2025 (CIP2025)', aiming for sustainable growth and business transformation through DX.