First-quarter results are broadly on track for the full-year plan, but we want to confirm that profit progress is maintained through the first half.

First-quarter revenue for the fiscal year ending March 2027 was ¥216,159 million, up 8.1% year on year, while operating profit was ¥14,356 million, up 30.0%. Ordinary profit was ¥20,644 million and net income attributable to owners of the parent was ¥15,726 million, up 71.7% and 75.2%, respectively, year on year, both outpacing operating profit growth. The operating margin was approximately 6.6%, calculated as ¥14,356 million ÷ ¥216,159 million.

The full-year forecasts are revenue of ¥860,000 million, operating profit of ¥59,000 million, ordinary profit of ¥64,000 million and net income attributable to owners of the parent of ¥45,000 million. Simple first-quarter progress rates are 25.1% for revenue, 24.3% for operating profit, 32.3% for ordinary profit and 34.9% for net income. On a mechanical basis that does not account for seasonality, six-month revenue of ¥430,000 million, operating profit of ¥29,500 million and ordinary profit of ¥32,000 million provide reference thresholds.

Because first-quarter ordinary profit and net income are further ahead than operating profit in terms of progress against the full-year forecasts, the first-half results will also need to confirm whether the contribution from non-operating gains and losses continues. The first-quarter earnings summary does not provide a sufficient breakdown of foreign exchange gains and losses or extraordinary gains and losses, so it will be necessary to determine whether the increase in operating profit reflects improvements in core-business volume and profitability or is temporary and includes non-operating factors.