Focus on third-quarter progress against the full-year plan following the upward revision

Consolidated first-half revenue for the fiscal year ending December 2026 was ¥37,983 million, up 16.8% year on year, while operating income was ¥7,082 million, up 21.3%. Ordinary income was ¥7,154 million, and interim net income attributable to owners of the parent was ¥4,820 million, up 25.1% and 30.2%, respectively, year on year. Both the Lifestyle Products and Mobility & Energy segments recorded higher revenue and operating income, supporting company-wide first-half performance.

Compared with the full-year forecasts as of 4 August, first-half progress was approximately 50.6% for revenue and 59.0% for operating income. On a simple half-year basis, revenue was broadly in line with the plan, while operating income was ahead. However, achieving the full-year forecasts requires second-half revenue of ¥37,017 million and operating income of ¥4,918 million. For the third-quarter results, cumulative revenue of ¥56,250 million and operating income of ¥9,000 million will serve as benchmarks for assessing whether the first-half lead in profit generation continued into the second half.

Actual revenue for the fiscal year ended December 2025 was ¥64,139.92 million, and operating income was ¥9,517.806 million. Against this, the forecasts for the fiscal year ending December 2026 are revenue of ¥75,000 million and operating income of ¥12,000 million, representing planned increases of 16.9% and 26.1%, respectively, over the prior-year results. Accordingly, at the next earnings announcement it will be necessary to assess not only whether revenue and operating income increased year on year, but also whether second-half revenue and profit levels are realistic relative to the full-year plan, which is substantially above the prior-year results.

The company has raised its earnings forecasts again to reflect the strong first-half performance, but has not specifically disclosed the assumptions for exchange rates, average transaction prices, demand from exporters and inbound demand, or the risk amounts incorporated into the forecasts. In the third quarter, in addition to checking whether the ¥75,000 million revenue and ¥12,000 million operating income forecasts are maintained or revised again, we will assess which of the first half's contributors, higher volumes or higher unit prices, has continued.