Medium- to long-term expansion of business scale and profit growth

「Our group positions fiscal 2026 through fiscal 2028 as a 3-year period for establishing the foundation for sustainable growth toward fiscal 2035 through improved profitability and growth investments. Through strengthening the earning power of existing businesses, investing in growth areas, and enhancing human-resource development, our basic policy under the Oi Electric Group Medium-Term Management Plan <2026-2028> is to achieve both profitability above the cost of capital and medium- to long-term profit growth. For the final year of the plan, fiscal 2028, we are targeting net sales of ¥40.4 billion and operating profit of ¥2.1 billion.」

「There were no significant changes during the current interim consolidated accounting period to the management policies, management strategies, or other matters, or to the objective indicators used to assess progress toward management targets, established by the Group (the Company and its consolidated subsidiaries).」

「In light of the results above and recent earnings trends, the fiscal 2025 plan was revised from the initial targets of net sales of ¥29,000 million and operating income of ¥1,000 million to net sales of ¥32,100 million and operating income of ¥1,180 million.」

「Under the medium-term management plan ending in fiscal 2025, the Group continues to pursue priority measures including strengthening earnings power through business selection and concentration, improving costs through more efficient operating processes, strengthening procurement resilience through initiatives including product development that enables the use of alternative parts, and various measures such as upgrading employee skills and rebuilding the personnel evaluation system based on skills.」

「The Group's vision for its medium-term management plan is to contribute to society through its proprietary technological capabilities. Its basic policy for the new medium-term management plan is to establish a management platform for growth by continuing to provide value through distinctive products and services based on its proprietary technological capabilities in the information and communications field supporting social infrastructure. / Consolidated net sales plan: 26,400 28,117 27,000 29,000 / Consolidated operating income plan: 500 919 550 1,000」

「There were no significant changes during the first nine months of the current consolidated fiscal year to the management policies, management strategies, or other matters, or to the objective indicators used to assess progress toward management targets, established by the Group (the Company and its consolidated subsidiaries).」

「There were no significant changes during the first nine months of the current consolidated fiscal year to the management policies, management strategies, or other matters, or to the objective indicators used to assess progress toward management targets, established by the Group (the Company and its consolidated subsidiaries).」

「There were no significant changes during the second quarter of the current consolidated cumulative period to the management policies, management strategies, or other matters, or to the objective indicators used to assess progress toward management targets, established by the Group (the Company and its consolidated subsidiaries).」

「There were no significant changes during the first quarter of the current consolidated cumulative period to the management policies, management strategies, or other matters, or to the objective indicators used to assess progress toward management targets, established by the Group (the Company and its consolidated subsidiaries).」

「The Group formulated a three-year medium-term plan ending in fiscal 2022 to achieve medium- to long-term growth through greater contributions to customers and has pursued business activities toward achieving it. However, changes in the operating environment after the plan was formulated, including the spread of COVID-19 and global shortages in materials procurement, have created a gap from the current fiscal 2022 earnings forecast. Although consolidated net sales are expected to meet the original medium-term plan, consolidated operating income is expected to fall short. / Consolidated net sales: 28,000 28,200 / Consolidated operating income: 1,100 640」

「There were no significant changes during the first nine months of the current consolidated fiscal year to the management policies, management strategies, or other matters, or to the objective indicators used to assess progress toward management targets, established by the Group (the Company and its consolidated subsidiaries).」

「There were no significant changes during the first quarter of the current consolidated cumulative period to the management policies, management strategies, or other matters, or to the objective indicators used to assess progress toward management targets, established by the Group (the Company and its consolidated subsidiaries).」

「Net sales exceeded the target for fiscal 2022, the final year of the plan, by 5.0% and were achieved ahead of schedule, due to strong demand for optical transmission equipment, including equipment for telecommunications carriers, and the impact of some orders being brought forward. Operating income, however, remained sluggish due to delays in improving profit in information and communications equipment manufacturing and sales and the impact of quality-related costs, with the achievement rate against the fiscal 2022 target at 27.6%.」

「The Group has formulated the following three-year medium-term plan ending in fiscal 2022 to achieve medium- to long-term growth through greater contributions to customers and is working toward its achievement. / Unit: ¥ million / Fiscal 2022 / Consolidated net sales: 28,000 / Consolidated operating income: 1,100」

「The Group aims to achieve medium- to long-term growth by contributing further to customers and has set out the following three-year medium-term plan ending in fiscal 2021, working toward its achievement. / Consolidated net sales: 24,800 26,300 27,600 / Consolidated operating income: 280 680 910」

「The Group aims to achieve medium- to long-term growth by contributing further to customers and has set out the following three-year medium-term plan ending in fiscal 2020, working toward its achievement. / Consolidated net sales: 24,000 25,500 27,000 / Consolidated operating income: 350 700 850」

「We aim to expand our business scale and achieve profit growth over the medium to long term by steadily promoting research and development and human resources development with a view to the future, while working to strengthen cost competitiveness. As a long-term management target, we have set consolidated net sales of at least ¥50,000 million and a consolidated operating margin of at least 7.5% for fiscal 2023. In addition, under the three-year medium-term plan ending in fiscal 2019, we revised the targets to consolidated net sales of ¥27,000 million and consolidated operating income of ¥800 million, and will work toward achieving the long-term management targets.」

「We aim to expand our business scale and achieve profit growth over the medium to long term by steadily promoting research and development and human resources development with a view to the future, while working to strengthen cost competitiveness.」