9-month cumulative results are in line with the full-year plan, with operating profit ahead of schedule

For the 9 months ended 30 September 2025 in FY2026, revenue was ¥59,355 million, up 8.8% year on year; operating profit was ¥7,838 million, up 8.1%; and ordinary profit was ¥8,455 million, up 8.7%. The company's full-year forecasts are revenue of ¥76,500 million, operating profit of ¥9,430 million, ordinary profit of ¥10,050 million and net income attributable to owners of the parent of ¥7,320 million. As of Q3, there had been no revision to the forecasts.

A simple calculation of progress against the full-year forecasts gives 77.6% for revenue and 83.1% for operating profit. Accordingly, the amounts required in Q4 are ¥17,145 million in revenue and ¥1,592 million in operating profit. Operating profit is 5.5 percentage points ahead of revenue in terms of progress, meaning that earnings are currently running ahead of plan. In the next results, we will check whether Q4 operating profit reached this level on a standalone basis and whether the full-year operating margin approached the forecast of approximately 12.3%.

Net income attributable to owners of the parent, however, was ¥6,331 million, up 17.7% year on year, substantially exceeding the growth in operating profit. Other income included a ¥608 million gain on the sale of investment securities, while other expenses included a ¥45 million loss on the disposal of fixed assets. The increase in net income therefore cannot be regarded as a direct improvement in the profitability of the core business. In the full-year results, the additional recognition of any gain on the sale of investment securities, reconciliation items from operating profit to net income, and changes in the tax burden need to be assessed separately.

The previous year's results were revenue of ¥73,495 million and operating profit of ¥8,515 million. This year's forecasts target year-on-year growth of 4.1% in revenue and 10.7% in operating profit. The 9-month cumulative growth rates of 8.8% in revenue and 8.1% in operating profit are therefore ahead of the assumptions underlying the forecasts. However, a Vietnamese subsidiary became subject to consolidation from Q2, so the year-on-year comparison includes a difference in the scope of consolidation. For the full year, the revenue growth rate of the existing business excluding the Vietnamese subsidiary should also be checked.

No quarterly consolidated cash flow statement was prepared for the 9 months ended 30 September 2025, and cash flow from operating, investing and financing activities was not disclosed. Even with solid earnings progress, cash-generation capacity, including cash outflows associated with capital expenditure and acquisitions, has not been confirmed. In the full-year results, we will check operating cash flow, capital expenditure, proceeds from the sale of investment securities and the period-end cash balance to assess whether earnings growth translated into free cash flow.