Assess the post-consolidation-change revenue level in FY2027-H1

FY2027-Q1 consolidated revenue was ¥1,847 million, down ¥1,144 million, or 38.2%, from ¥2,991 million in the same period a year earlier. The company cited the exclusion of the Chinese subsidiary from consolidation following the transfer of its shares as the main factor, meaning that the simple year-on-year change includes a change in the business portfolio. Accordingly, at the next results announcement it will be necessary to distinguish not only the recovery in total revenue but also how much revenue the domestic business is maintaining on a continuing-operations basis after the change in the scope of consolidation.

The full-year revenue forecast is ¥9,742 million, putting progress at approximately 19.0% as of Q1. Achieving the forecast requires recording ¥7,895 million over the 9 months after Q1, or ¥2,632 million per quarter on a simple average basis. FY2026-H1 revenue was ¥5,983 million, so on a mechanical comparison that does not account for the change in the scope of consolidation, standalone Q2 revenue of ¥4,136 million would be required for FY2027-H1 to reach the same level. Whether this level can be achieved will be the first quantitative hurdle for assessing the validity of the full-year forecast.

Meanwhile, FY2026 full-year revenue was ¥9,730 million, compared with a FY2027 full-year forecast of ¥9,742 million, essentially unchanged. In other words, the company's plan assumes that revenue will return to the previous year's level, including in the second half, rather than that the sharp Q1 decline will continue throughout the year. Although the logistics equipment-related business increased revenue in Q1, this was not enough to offset the decline in the synthetic resin molding-related business. At the next results announcement, we will want to examine separately the recovery in domestic synthetic resin orders, general-customer projects for logistics equipment and the ramp-up of EV-related revenue.

Regional revenue and orders received or order backlog were not disclosed in the Q1 results. Presenting on a consistent basis the revenue decline caused by the Chinese subsidiary's removal from consolidation and the revenue contributions from the domestic, logistics equipment and EV-related businesses would improve year-on-year comparability. In FY2027-H1, at minimum, it will be necessary to confirm standalone Q2 revenue, cumulative first-half revenue and the factors behind changes on a continuing-operations basis after the change in the scope of consolidation.