Fiscal 2026 Third Quarter Financial Summary [IFRS] (Consolidated)

Overview of Performance

For the cumulative third quarter period of fiscal 2026, consolidated net sales increased 8.0% YoY to JPY 5,195.4 billion, operating income rose 7.6% YoY to JPY 884.1 billion, income before taxes grew 10.2% YoY to JPY 819.9 billion, and net income attributable to owners of the parent increased 11.2% YoY to JPY 485.5 billion. All segments achieved growth in revenue and profit, with the finance segment’s operating income surging 102.8% YoY. Reduction in corporate income taxes and disappearance of valuation losses related to equity-method affiliates also contributed to the increase in net income.

Segment Performance

The Consumer segment posted net sales of JPY 2,253.2 billion (3.3% YoY increase) and operating income of JPY 468.3 billion (6.3% YoY increase), supported by growth in mobile service subscriptions. The Enterprise segment recorded net sales of JPY 733.2 billion (8.8% YoY increase) and operating income of JPY 158.1 billion (12.6% YoY increase), driven by growth in cloud and security solutions. The Distribution segment delivered net sales of JPY 773.6 billion (25.6% YoY increase) and operating income of JPY 30.8 billion (29.2% YoY increase), showing solid performance. The Media & E-Commerce segment reported net sales of JPY 1,226.1 billion (0.8% YoY increase) and operating income of JPY 206.3 billion (2.5% YoY decrease), impacted by system failures. The Finance segment achieved net sales of JPY 295.4 billion (23.9% YoY increase) and operating income of JPY 66.0 billion (102.8% YoY increase), reflecting significant profit growth.

Financial Position and Cash Flow

Total assets increased 13.3% from the previous fiscal year-end to JPY 18,243.7 billion, total liabilities rose 16.2% to JPY 13,753.3 billion, and total equity grew 5.3% to JPY 4,490.4 billion. Operating cash flow was JPY 1,093.6 billion, decreasing compared to the same period last year, but increased expenditures on investing activities and increased proceeds from financing activities resulted in cash and cash equivalents of JPY 1,577.5 billion. Capital expenditures amounted to JPY 516.1 billion, down from the previous year’s corresponding period.

Revision of Earnings Forecast

The full-year consolidated earnings forecast for fiscal 2026 was revised upward: net sales increased from JPY 6,700 billion to JPY 6,950 billion, operating income from JPY 1,000 billion to JPY 1,020 billion, and net income attributable to owners of the parent from JPY 540 billion to JPY 543 billion. By segment, the Distribution segment's operating income forecast was raised by JPY 3 billion, and other adjustment amounts were increased by JPY 17 billion.