Strong first-half progress against the full-year plan after the upward revision

In the first half of the fiscal year ending November 2026, net sales were ¥391,212 million, operating profit was ¥14,088 million, ordinary profit was ¥13,198 million, and interim net income attributable to owners of the parent was ¥8,882 million. Year on year, net sales increased 26.6%, operating profit 99.3%, ordinary profit 98.3%, and net income 108.3%, confirming significant improvement in both the top line and earnings. Progress against the full-year forecasts was 52.4% for net sales, 51.0% for operating profit, and 51.9% for net income, all exceeding the 50% expected at the six-month point.

The full-year forecasts as of the first-quarter results were net sales of ¥684,000 million, operating profit of ¥24,000 million, ordinary profit of ¥22,600 million, and net income of ¥15,000 million. At the time of the first-half disclosure, these were raised to ¥746,000 million, ¥27,600 million, ¥25,500 million, and ¥17,100 million, respectively. Based on first-half results, the amounts still required in the second half to achieve the full-year forecasts are net sales of ¥354,788 million, operating profit of ¥13,512 million, and net income of ¥8,218 million. Accordingly, the key issue is not only whether second-half net sales can be maintained at a level comparable to the first half, but also whether profit margins can be sustained.

The simple time-apportioned benchmarks for cumulative third-quarter results are net sales of ¥559,500 million, operating profit of ¥20,700 million, and net income of ¥12,825 million. These are analytical benchmarks that do not take seasonality into account and are not the company's quarterly forecasts. At the next earnings announcement, we will assess cumulative third-quarter results, progress against the full-year forecasts, and whether the company maintains the upwardly revised forecasts of ¥746,000 million in net sales and ¥27,600 million in operating profit, in order to determine whether the first-half earnings growth was a temporary upside.