FY2027 Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

For the second quarter of FY2027, consolidated net sales were 86,532 million yen (YoY +14.4%), securing revenue growth, but operating income declined due to decreases in Environmental Engineering and Overseas Businesses. Operating income was 771 million yen, ordinary income was 436 million yen, and net income attributable to owners of parent for the interim period was 64 million yen, substantially below the prior year. The determination of provisional accounting related to the business combination with Schwing Bioset, Inc. resulted in a reduction of goodwill and adjustments to prior-period comparisons. The full-year forecasts were revised to net sales of 245,000 million yen, operating income of 17,500 million yen and net income of 12,000 million yen, and the dividend forecast was also revised.

Outlook and Impact for Shareholders

For the full year, growth in net sales is expected but improvements on the profit side are required. Improving profits in Environmental Engineering and Overseas Businesses is a challenge, while Operations & System Solutions is performing steadily. The company maintains a policy of a year-end dividend of 45.00 yen and assumes a full-year dividend of 90.00 yen. Cash and cash equivalents have increased, and the financial position is improving. Attention will focus on future earnings releases and interim/full-year outlooks.