Dependence on Government Agencies and Specific Customers

「Government agencies 196,553 27,824 224,377 Private-sector and other customers 387,625 3,219 390,844」

「Ministry of Defense 923,155 45.3 1,089,387 51.0」

「Government agencies 15,570 26,301 41,872 Private-sector and other customers 417,608 2,186 419,795」

「Ministry of Defense 869,684 47.5 923,155 45.3」

「Government agencies 106,401 26,138 132,539 Private-sector and other customers 489,006 2,515 491,522」

「Ministry of Defense 869,684 47.5」

「During the cumulative second-quarter period, there were no new business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Although the defense budget was increased substantially under contracts with the Ministry of Defense, which accounts for most of the Company’s sales, the impact on orders was expected to emerge from the second half onward. In addition, delivery of other major products was postponed, resulting in sales for the cumulative first quarter below the previous fiscal year.」

「Ministry of Defense 938,872 52.3 864,571 49.1」

「During the nine-month period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「Although costs continued to rise in the pyrotechnic products field and the Company worked to pass on appropriate price increases, mainly for products sold to private-sector customers, net sales declined because orders for the core products sold to the Ministry of Defense fell significantly.」

「Although orders for products sold to private-sector customers increased as the market recovered, net sales decreased from the previous fiscal year because orders for the core products sold to the Ministry of Defense declined significantly.」

「Ministry of Defense 938,872 52.3」

「The company exceeded its initial plan due to an increase in orders for pyrotechnic products for the Ministry of Defense, as well as the delivery of certain products scheduled for January being brought forward to December.」

「Although the company was affected by lower order volumes and delays in order timing for its core products for the Ministry of Defense, it secured revenue at a level comparable with the previous fiscal year.」

「Government agencies 128,862 12,296 141,158 Other private-sector customers 154,924 1,179 156,103」

「Ministry of Defense 650,929 41.8」

「During the nine-month period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the cumulative second-quarter period, there were no new business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」

「In our pyrotechnic products business, the Ministry of Defense's budget restraints on training pyrotechnic products continued, and orders declined from the same period of the previous year.」

「Ministry of Defense」

「The impact of defense budget restraints on training pyrotechnic products continued, orders for products supplied to the Ministry of Defense declined substantially, and revenue decreased from the previous fiscal year.」

「In the pyrotechnic products business, sales of pyrotechnic products to the private sector and contracted evaluation testing increased, but the decline in sales of pyrotechnic products to the Ministry of Defense had an impact. Net sales were ¥537 million, down 0.8% year on year, and segment profit was ¥52 million, down 11.4%.」

「During the six months ended [current first quarter], there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」

「Government agencies are the primary customers for our products, resulting in a high dependence on specific customers. Changes in budgets cause order volumes to fluctuate, affecting revenue.」

「During the nine-month period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there was no emergence of new business or other risks, nor were there any material changes to the business or other risks described in the annual securities report for the preceding fiscal year.」

「Government agencies are the primary customers for our products, resulting in a high dependence on specific customers. Changes in budgets cause order volumes to fluctuate, affecting revenue.」

「Because orders for pyrotechnic products from the Ministry of Defense are concentrated in the second half of the fiscal year under the contracts, we have been working mainly in the first half to increase sales of pyrotechnic products to the private sector. However, performance has still not reached the planned level.」

「Government agencies are the primary customers for our products, resulting in a high dependence on specific customers. Changes in budgets cause order volumes to fluctuate, affecting revenue.」

「The Company was significantly affected by a decline in orders resulting from changes to the Ministry of Defense budget and other factors, with the result that sales were ¥115 million below the year-earlier level.」

「The company's orders from the Ministry of Defense for training pyrotechnic products declined substantially from the usual level due to a major change in the defense budget.」

「Government agencies are the primary customers for our products, resulting in a high dependence on specific customers. Changes in budgets cause order volumes to fluctuate, affecting revenue.」