Q1 revenue was in line with the plan, while operating profit was ahead of the full-year plan

Revenue from April through June 2026 was ¥10,961 million, representing 24.9% progress against the full-year forecast of ¥44,000 million for the fiscal year ending March 2027. Since the end of June was close to the point at which 25% of the fiscal year had elapsed, revenue was not significantly behind the full-year plan at that point. For the September H1 results, ¥22,000 million, or 50% of the full-year forecast, should be used as a mechanical comparison benchmark, with attention to seasonality and any front-loading of demand.

Operating profit was ¥525 million, equivalent to 175.0% progress against the full-year forecast of ¥300 million. Q1 alone exceeded the full-year plan by ¥225 million, while the full-year operating profit forecast is set at ¥300 million, below the prior-year result of ¥306 million. The plan should therefore not be viewed as simply extending the Q1 profit level across four quarters. It may incorporate higher raw material costs, R&D expenses and equipment-related costs in the second half, as well as a bias in the timing of profit generation.

If H1 revenue is set at ¥22,000 million, or 50% of the full-year forecast, Q2 alone would need to generate ¥11,039 million after the Q1 result. ¥22,000 million is not a company-provided interim forecast, but a comparison value based on a simple allocation of the full-year forecast across the year. For operating profit, 50% of the ¥300 million full-year forecast is ¥150 million. H1 cumulative operating profit should therefore be assessed against ¥150 million, together with the extent to which it declines from Q1's ¥525 million and the Q2 standalone result.

As of Q1, there had been no revision to the earnings forecasts, and the annual dividend forecast remained ¥54. The H1 results should be reviewed for cumulative revenue and operating profit, the factors behind the Q2 standalone change, progress against the full-year forecasts, and the rationale for leaving those forecasts unchanged. The assessment will differ materially depending on whether the Q1 profit outperformance was temporary front-loading or the result of a sustained recovery in demand and profitability.