■Consolidated Financial Results for the Fiscal Year Under Review

For the consolidated fiscal year under review, net sales amounted to 114.8 billion yen, a decrease of 4.8% year-on-year, primarily affected by production cuts implemented by our key customers. In terms of profit and loss, due to the impact of lower revenues and other factors, operating profit decreased by 4.5% year-on-year to 2.6 billion yen, while ordinary profit increased by 24.5% year-on-year to 2.4 billion yen. Furthermore, profit attributable to owners of parent stood at 2.0 billion yen (compared to a profit attributable to owners of parent of 50 million yen in the previous fiscal year). This result was driven by an increase in extraordinary income due to the reversal of provision for product warranties and gain on sale of investment securities, while an impairment loss was recorded as an extraordinary loss.

■Outlook for the Next Fiscal Year

Regarding the outlook for the next fiscal year, we forecast net sales of 118.0 billion yen, an increase of 2.7% year-on-year, operating profit of 2.4 billion yen, a decrease of 9.4% year-on-year, ordinary profit of 2.0 billion yen, a decrease of 20.0% year-on-year, and profit attributable to owners of parent of 1.6 billion yen, a decrease of 20.5% year-on-year.

While this forecast reflects the latest information available as of the end of April, it does not incorporate the potential impact of the situation in the Middle East, strategic reviews by major customers, or U.S. tariff measures on the fiscal year ending March 31, 2027, as these factors are currently difficult to estimate. With respect to the rising tariff costs, we aim to fully recover them through negotiations with our customers, and we expect to reach an agreement in the fiscal year ending March 31, 2027, regarding the unagreed portions from the fiscal year ending March 31, 2026. The future environment surrounding our Group remains uncertain, and actual performance may fluctuate due to various unpredictable factors.

Please note that our forecasts are based on an assumed foreign exchange rate of 155 yen to the U.S. dollar.

■Dividend Policy

Our basic policy is to maintain stable dividend payments, targeting a consolidated dividend payout ratio of 30% (with a minimum annual dividend of 10 yen per share), while securing the internal reserves necessary for future business outlook and strengthening our management structure. We recognize the return of profits to our shareholders as one of our top management priorities and strive to improve profitability.

The year-end dividend for the consolidated fiscal year under review will be 20 yen per share. Combined with the interim dividend of 10 yen per share, the total annual dividend will be 30 yen per share, representing a dividend increase of 15 yen compared to the previous fiscal year.

For the next fiscal year, we plan to pay an interim dividend of 12.5 yen per share and a year-end dividend of 12.5 yen per share, resulting in an annual dividend of 25 yen per share.

We sincerely appreciate the continued support and encouragement of our shareholders.

June 2026