Overview for the First Half of the 85th fiscal year

During the first half of the consolidated fiscal year under review, the global economy showed underlying resilience. However, uncertainty persisted against the backdrop of rising energy prices driven by the impact of the Middle East situation, in addition to concerns over U.S. policy developments and economic stagnation in China.

In the business environment surrounding the Group, in electronics applications, demand remained strong for some applications such as cutting-edge products. However, applications for silicon semiconductors and SiC semiconductors remained sluggish, as wafer inventory adjustments continued. However, demand expanded in a wide range of AI-related fields toward the second half of the period, and demand for EVs trended gradually upward. This brought the current cycle of inventory adjustments to an end, and orders received by the Group increased, showing the first signs of a positive outlook. Additionally, mobility and general industries applications continued to perform solidly. In this environment, the Group worked to achieve medium-to-long-term business growth and enhance corporate value through the creation of added value. The Group responded to changes in the external environment by controlling the balance of its product and application mix through the development of new applications and the deepening of existing ones. It also addressed customer needs sincerely and provided high value-added, innovative solutions through forward-looking product and technology development.

As a result, in the first half of the consolidated fiscal year under review, net sales were 22,370 million yen (down 2.7% year on year). In terms of profits, operating profit was 1,778 million yen (down 53.7% year on year), ordinary profit was 2,229 million yen (down 41.2% year on year), and profit attributable to owners of parent of 1,677 million yen (down 37.4% year on year).

Future outlook

While uncertainty in the global economy has increased further due to heightened tensions in the Middle East, the business environment surrounding the Group is gradually improving, supported by the expected recovery in semiconductor-related demand from the second half of this fiscal year. We will respond appropriately to these changes, making every effort to achieve our plans through the steady acquisition of orders in high value-added fields. Furthermore, to realize long-term growth, we will strengthen initiatives aimed at expanding into promising markets and applications that offer significant growth potential.

Based on the above, we expect net sales of 49,000 million yen (a 6.1% year-on-year increase), while operating profit is expected to be 6,200 million yen (an 8.3% year-on-year decrease) due mainly to the impact of foreign exchange rates and an increase in depreciation and other fixed costs. We anticipate 6,000 million yen in ordinary profit (a 25.8% year-on-year decrease), and 5,000 million yen in profit attributable to owners of parent (a 8.5% year-on-year decrease) in the fiscal year ending December 31, 2026.

We thank you, our shareholders, for your continued support.

September, 2026