TSUDAKOMA Corp.

The Group operates primarily in the textile machinery and machine tool-related businesses. Under Medium-Term Management Plan 2026, it is pursuing higher orders and sales and improved profitability in both businesses. In textile machinery, the premium sports-casual segment in China remains strong, with continued orders for large water-jet looms. Orders for wide-width and yarn-dyed applications are accumulating for air-jet looms, while the Indian market is recovering from stagnant domestic demand and lower exports resulting from U.S. tariff policies. Progress on an FTA agreement with the UK and EU is also advancing export diversification. In industrial materials, orders for preparation machinery for glass fabrics have surged, demand for IC cloth for AI semiconductor substrates has increased, and orders for air-jet looms have risen. New orders and business discussions for rapier looms for carbon fiber applications continue. Inquiries for airbag applications also remain active, and orders for carbon-fiber rapier looms for China are expanding. The Group is working to improve profitability through better selling prices and cost reductions, while improving production and operating efficiency through TAPS activities. In the machine tool-related business, the U.S. market remains firm, with continued inquiries for large NC rotary tables for aerospace and data center applications. In China, inquiries for robot-parts processing have increased, and some recovery in EMS-related investment is evident. In Japan, orders are increasing as automakers raise capital investment, and signs of investment demand are emerging from strong production of semiconductor manufacturing equipment. Although significant doubt regarding the going-concern assumption continues to exist in the financial position and cash flows for the interim consolidated period, the Group is working to maintain sound business operations in line with Medium-Term Management Plan 2026. No new business risks arose during the interim consolidated period, and, except for material changes, there were no significant changes to the risks described in the previous fiscal year.