Updated）Financial Results for the Fiscal Year Ended March 31,2026

May 8, 2026

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	448,250	81.1	19,236	41.7	24,644	66.8	16,206	61.5
      March 31, 2025	247,571	13.1	13,573	5.0	14,776	(18.6)	10,037	(13.7)

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥	17,418 million [	61.6%]
      	For the fiscal year ended March 31, 2025:	¥	10,779 million [	(26.7) %]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	322.65	300.45	11.2	11.9	4.3
      March 31, 2025	194.76	181.88	7.3	7.9	5.5

      Reference: Share of profit (loss) of entities accounted for using equity method

      For the fiscal year ended March 31, 2026:	¥	- million
      For the fiscal year ended March 31, 2025:	¥	- million

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	215,281	150,243	69.8	3,051.70
      March 31, 2025	200,279	140,317	70.1	2,757.39

      Reference: Equity

      As of March 31, 2026:	¥	150,243 million
      As of March 31, 2025:	¥	140,317 million

      (3) Consolidated cash flows
      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
      Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
      March 31, 2026	34,538	(6,376)	(8,636)	66,050
      March 31, 2025	(18,228)	(5,931)	(5,312)	46,769

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended	-	19.00	-	40.00	59.00	3,026	30.1	2.2
   March 31, 2025
   Fiscal year ended	-	25.00	-	73.00	98.00	4,866	30.0	3.3
   March 31, 2026
   Fiscal year ending March 31, 2027 (Forecast)	-	39.00	-	38.00	77.00		30.3

   (Note) Revision of cash dividend forecast most recently announced: Yes

   For the year-end dividend for the fiscal year ended March 31, 2026, please refer to the "Notice Regarding Dividends of Surplus" published today, on May 8, 2026.

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

   (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Basic earnings per share
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   Six months ending September 30, 2026	238,000	(3.0)	9,600	18.5	9,100	(5.1)	6,400	4.8	129.99
   Full year	436,000	(2.7)	18,000	(6.4)	18,000	(27.0)	12,500	(22.9)	253.90

   Financial results forecasts are based on the assumption of a foreign exchange rate of 155 yen per U.S. dollar.

   * Notes

   (1) Significant changes in the scope of consolidation during the period:			None
   Newly included:	-	companies(	)
   Excluded:	-	companies(	)

   (2) Changes in accounting policies, changes in accounting estimates, and restatement
   (i)	Changes in accounting policies due to revisions to accounting standards and other regulations:				None
   (ii)	Changes in accounting policies due to other reasons:			None
   (iii)	Changes in accounting estimates:		None
   (iv)	Restatement:	None

   1. Number of issued shares (common shares)

      1. Total number of issued shares at the end of the period (including treasury shares)

   As of March 31, 2026	58,502,584	shares
   As of March 31, 2025	60,164,784	shares

   (ii)	Number of treasury shares at the end of the period
   	As of March 31, 2026	9,269,912	shares
   	As of March 31, 2025	9,277,041	shares

   (iii) Average number of shares outstanding during the period

   Fiscal Year ended March 31, 2026	50,230,325	shares
   Fiscal Year ended March 31, 2025	51,534,863	shares

   [Reference] Overview of non-consolidated financial results

   1. Non-consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

      1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

         	Net sales		Operating profit		Ordinary profit		Profit
         Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
         March 31, 2026	395,013	113.9	11,980	99.7	16,963	98.3	11,622	73.7
         March 31, 2025	184,699	12.8	6,000	(20.6)	8,555	(32.4)	6,689	(12.3)

         	Basic earnings per share	Diluted earnings per share
         Fiscal year ended	Yen	Yen
         March 31, 2026	231.38	215.36
         March 31, 2025	129.81	121.14

      2. Non-consolidated financial position

         	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
         As of	Millions of yen	Millions of yen	%	Yen
         March 31, 2026	166,461	99,913	60.0	2,029.41
         March 31, 2025	151,201	94,490	62.5	1,856.83

         Reference: Equity

         As of March 31, 2026:	¥	99,913 million
         As of March 31, 2025:	¥	94,490 million

         Notes: 1. Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

   2. Explanation on proper use of earnings forecasts, and other special matters

   The forward-looking statements about the future financial results of this document are future forecasts based on the judgment of Hosiden Corporation (the "Company") taking into account the information currently available, and the Company does not intend to make a warranty of their achievement. These forward-looking statements contain various potential risks and uncertainties, and actual results may be materially different from the forward-looking statements due to various material factors. Therefore, the Company asks not to depend highly on these forward-looking statements.

   (Means of access to supplementary material on financial results and contents of financial results briefing) The materials to be used in the financial result briefing will be available on the Company's website.

   Contents of the attachment

   Index

   1. Overview of operating results, etc. …………………………………………………………………………………………	2
   (1) Overview of operating results during the fiscal year ended March 31, 2026 …………………………………………	2
   (2) Overview of financial position for the fiscal year ended March 31, 2026 …….………………………………………	3
   (3) Overview of cash flows for the fiscal year ended March 31, 2026 ……………………………………………………	3
   (4) Future outlook …………………………………………………………………………………………………………	4
   (5) Basic policy on profit distribution and dividends for the current and next fiscal years…………………………………	5
   (6) Business and other risks…………………………………………………………………………………………………	5
   2. Management policy …………………………………………………………………………………………………………	7
   (1) Basic policy on corporate management …………………………………………………………………………………	7
   (2) Medium- to long-term corporate management strategy…………………………………………………………………	7
   (3) Issues to be addressed by the Company…………………………………………………………………………………	8
   3. Basic approach to the selection of accounting standards ……………………………………………………………………	9
   4. Consolidated financial statements and significant notes thereto ……………………………………………………………	10
   (1) Consolidated balance sheets .……………………………………………………………………………………………	10
   (2) Consolidated statements of income and consolidated statements of comprehensive income.….………………………	12
   (3) Consolidated statements of changes in equity……………………………………………………………………………	14
   (4) Consolidated statements of cash flows …….……………………………………………………………………………	16
   (5) Notes to consolidated financial statements………………………………………………………………………………	17
   Notes on going concern assumption .…………………………………………………………………………	17
   Significant matters serving as the basis for preparation of consolidated financial statements…………………	17
   Notes on additional information………………………………………………………………………………………	18
   Segment information, etc. ……………………………………………………………………………………………	19
   Per share information….………………………………………………………………………………………………	20
   Significant subsequent events .………………………………………………………………………………………	21
   5. Others …………………………………………………………………………………………………………………………	21
   (1) Changes in the representative ……………………………………………………………………………………………	21
   (2) Changes in other directors and officers……………………………………………………………………………………	21

   1. ‌Overview of operating results, etc.
      1. ‌Overview of operating results during the fiscal year ended March 31, 2026

         During the fiscal year ended March 31,2026 (from April 2025 to March 2026), the global economy has become uncertain, particularly in the United States, where rising inflation and increasing uncertainty surrounding trade policies weighed on personal consumption. In Europe, weak demand persisted, especially in the manufacturing sector. In China, economic conditions remained sluggish as the downturn in the real estate market continued, resulting in subdued growth in personal consumption and capital investment.

         The Japanese economy maintained a moderate recovery trend supported by improvements in employment and income conditions; however, the outlook became increasingly uncertain due to the dampening effect of rising prices on personal consumption, growing uncertainty over trade policies centered on the United States, and heightened geopolitical risks.

         In addition, the prolonged and worsening Russia-Ukraine situation and the deterioration of conditions in the Middle East raised concerns over volatility in energy and raw material prices as well as instability in foreign exchange markets, further increasing uncertainty about the future economic environment.

         In the electronics components industry, to which the Group belongs, demand in the automotive-related market remained relatively resilient, supported by trends toward vehicle electrification and higher functionality. However, the slowing growth of the electric vehicle market and sluggish new vehicle sales in certain regions resulted in many automobile manufacturers falling short of their initial sales plans. In the mobile communications-related market, sales followed a recovery trend driven by the return of smartphone replacement demand, but a full recovery had not yet been achieved, with disparities observed by region and product category.

         Under these circumstances, the Group achieved increased net sales overall, driven by growth in the amusement-related and automotive-related businesses.

         With regard to profits, operating profit increased due to the significant rise in amusement-related sales. In addition, foreign exchange gains amounted to ¥4,182 million in the current fiscal year, compared with ¥45 million recorded in the previous fiscal year, resulting in increases in both ordinary profit and profit attributable to owners of parent.

         As a result, during the consolidated fiscal year under review, consolidated net sales amounted to ¥448,250 million (an increase of 81.1% year on year). Operating profit totaled ¥19,236 million (up 41.7% year on year). Ordinary profit reached ¥24,644 million (up 66.8% year on year), including foreign exchange gains of

         ¥4,182 million resulting from foreign exchange fluctuations. Profit attributable to owners of parent amounted to ¥16,206 million (up 61.5% year on year).

         Net sales and segment profit for the reportable segments were as follows.

         Net sales for the electro-mechanical components segment increased to ¥414,284 million (up 94.9% year on year) due to growth in the amusement-related and automotive-related businesses, and segment profit rose to

         ¥16,973 million (up 58.7% year on year).

         Net sales for the acoustic components segment decreased to ¥19,431 million (down 7.5% year on year) due to a decline in the automotive-related business, and segment profit fell to ¥1,586 million (down 14.3% year on year).

         For the applied equipment and other segment, although sales for the healthcare equipment-related business decreased, sales for the amusement-related business increased. As a result, net sales were 14,535 million yen (up 3.6% year on year), while segment profit amounted to 675 million yen (down 34.1% year on year).

         Notes: Due to a partial change in the performance management classifications from the current consolidated fiscal year, the reporting segments of the Company's group now include the previously separate "the display components" under "the applied equipment and other". The Company revised the segment classification of

         some product in line with this change. Furthermore, the segment information for the previous consolidated fiscal year has been presented based on the revised classification method.

      2. Overview of financial position for the fiscal year ended March 31, 2026

         At the end of the consolidated fiscal year under review, total assets amounted to ¥215,281 million, an increase of ¥15,001 million from the end of the previous consolidated fiscal year. This increase was mainly attributable to an increase in cash and deposits, despite decreases in trade receivables and inventories.

         Total liabilities amounted to ¥65,038 million, an increase of ¥5,075 million from the end of the previous consolidated fiscal year. Although short-term borrowings and trade payables decreased, liabilities increased mainly due to an increase in income taxes payable and other factors.

         Net assets increased by ¥9,926 million from the end of the previous consolidated fiscal year to ¥150,243 million, primarily reflecting an increase in retained earnings. As a result, the equity-to-asset ratio stood at 69.8%.

      3. Overview of cash flows for the fiscal year ended March 31, 2026

         At the end of the consolidated fiscal year under review, cash and cash equivalents (hereinafter referred to as "cash") increased by ¥19,280 million from the end of the previous consolidated fiscal year (which recorded a decrease of ¥29,892 million at the end of the previous fiscal year), and amounted to ¥66,050 million.

         The status of cash flows during the consolidated fiscal year under review and the main factors are as follows:

         Cash flows from operating activities

         Net cash provided by operating activities amounted to ¥34,538 million (a net cash outflow of ¥18,228 million in the previous consolidated fiscal year). This was mainly attributable to profit before income taxes of ¥22,894 million (¥14,229 million in the previous fiscal year), depreciation of ¥4,808 million (¥3,540 million in the previous fiscal year), a decrease in trade receivables of ¥6,619 million (an increase of

         ¥10,032 million in the previous fiscal year), a decrease in inventories of ¥4,052 million (an increase of

         ¥40,172 million in the previous fiscal year), a decrease in trade payables of ¥1,436 million (an increase of

         ¥20,912 million in the previous fiscal year), and income taxes paid of ¥2,977 million (¥5,617 million in the previous fiscal year).

         Cash flows from investing activities

         Net cash used in investing activities amounted to ¥6,376 million (net cash used of ¥5,931 million in the previous consolidated fiscal year). This was mainly due to payments into time deposits of ¥16,795 million (¥15,048 million in the previous fiscal year), proceeds from withdrawal of time deposits of ¥14,463 million (¥12,629 million in the previous fiscal year), proceeds from withdrawal of long-term deposits of

         ¥3,500 million (¥3,000 million in the previous fiscal year), and purchase of property, plant and equipment of ¥7,555 million (¥6,262 million in the previous fiscal year).

         Cash flows from financing activities

         Net cash used in financing activities amounted to ¥8,636 million (net cash used of ¥5,312 million in the previous consolidated fiscal year). This was mainly attributable to repayments of short-term borrowings of

         ¥1,050 million (no such payments in the previous fiscal year), purchase of treasury shares of ¥4,201 million (¥3,000 million in the previous fiscal year), and dividends paid of ¥3,307 million (¥3,264 million in the previous fiscal year).

         Trend of the cash flow indicators

         	As of March 31, 2022	As of March 31, 2023	As of March 31, 2024	As of March 31, 2025	As of March 31, 2026
         Equity-to-asset ratio (%)	69.7	70.4	77.1	70.1	69.8
         Equity-to-asset ratio based on market capitalization (%)	37.1	47.7	57.3	50.5	58.2
         Cash flows/interest-bearing debt ratio (years)	-	0.6	0.4	-	0.3
         Interest coverage ratio (times)	-	859.4	544.3	-	783.3

         (Formula) Equity-to-asset ratio = Equity / Total assets

         Equity-to-asset ratio based on market capitalization = Market capitalization / Total assets

         Cash flows/interest-bearing debt ratio = Interest-bearing debt / Cash flows from operating activities Interest coverage ratio = Cash flows from operating activities / Interest payment

         Notes:

         1. Each indicator is calculated based on consolidated financial values.

         2. Market capitalization is calculated by multiplying closing stock price at the end of the period by total number of issued shares at the end of the period (deducting treasury shares).

         3. Interest-bearing debt represents all of the debt that bears interest of the entire debt recorded in the consolidated balance sheet.

         4. Interest payment represents the interest paid in the consolidated statement of cash flows.

      4. Future outlook

         With regard to the global economic outlook, there are concerns about a slowdown in overall growth worldwide due to supply shocks arising from logistics disruptions caused by conflicts in the Middle East. As a result of these disruptions, personal consumption in the United States is expected to remain relatively resilient; however, Europe is expected to decelerate because of its high dependence on energy imports and relatively limited fiscal capacity. In China, although policy support continues, economic growth is expected to slow due to the prolonged downturn in the real estate sector and a decline in personal consumption. Japan, which has a high dependence on external demand, is also expected to experience a slowdown as it is affected by deceleration in major global regions. In addition to the Middle East conflict, geopolitical risks stemming from the Russia-Ukraine war continue to pose uncertainty for the future economic environment.

         In the electronics components industry, although uncertainty persists due to the U.S. tariff policy, the industry is expected to remain in a growth phase, led primarily by demand from the AI and data center-related and industrial equipment markets. On the other hand, while significant growth in automobile production volumes is not expected for the automotive-related market, demand is anticipated to increase gradually due to further progress in vehicle electrification. In the mobile communications-related market, demand is expected to decline, particularly for low-end smartphones, due to rising chip prices.

         With regard to the Company's performance forecasts, demand in the amusement-related business is expected to decline slightly. The automotive-related business is expected to grow as advanced driver-assistance systems (ADAS) and electrification continue to progress. The mobile communications-related business is expected to achieve steady growth based on anticipated increases in customer demand. The Company will continue to implement all possible measures, including expanding market share, mechanization, automation, and cost reductions across each market. The impact of the U.S. tariff policy has been factored in to a certain extent.

         Under these circumstances, the Company forecasts the following consolidated financial results for the fiscal year ending March 31, 2027. However, rising prices of semiconductors, other electronic components, and raw materials, shortages of components, logistics disruptions, and a potential reversal toward a stronger yen are expected to exert downward pressure on profitability.

         Outlook for consolidated financial results

         Net sales 436,000 million yen (down 2.7% year on year)

         Operating profit 18,000 million yen (down 6.4% year on year)

         Ordinary profit 18,000 million yen (down 27.0% year on year) Profit attributable to owners of parent 12,500 million yen (down 22.9% year on year)

         The above outlook for consolidated financial results is based on the assumption of a foreign exchange rate of 155 yen per U.S. dollar.

         Notes on forecasts of financial results, etc.

         The forward-looking statements regarding future financial results contained in this document are based on the Company's judgments using information currently available and are not intended as guarantees of future performance. These statements involve various potential risks and uncertainties, and actual results may differ materially from the forecasts due to a wide range of factors. Accordingly, readers are advised not to place undue reliance on these forward-looking statements.

      5. Basic policy on profit distribution and dividends for the current and next fiscal years

      The Company considers the return of profits to shareholders to be one of its key management policies. At the same time, in order to enhance corporate value, it is necessary to conduct research and development activities and invest in production facilities to keep pace with rapid technological innovation. From a longterm perspective, the Company is therefore committed to strengthening its financial position by expanding business earnings and securing internal reserves. With respect to dividends, the Company aims to implement stable and continuous dividend payments under a stable business environment and targets a payout ratio of approximately 30% based on consolidated financial results.

      Based on this basic policy on profit distribution, the Company plans to pay a year-end dividend of ¥73 per share for the fiscal year under review. As a result, annual dividends for the fiscal year will amount to ¥98 per share, including an interim dividend of ¥25 per share.

      For the next fiscal year, the Company also plans to pay annual dividends of ¥77 per share (an interim dividend of ¥39 per share and a year-end dividend of ¥38 per share), in accordance with its basic policy on profit distribution.

      (6）Business and other risks

      The Group operates globally with production, sales, and development bases in various countries around the world. The electronic components industry, in which the Group operates, is significantly affected by global economic conditions, experiences rapid technological innovation and market price fluctuations, and faces intense competition among companies in areas such as product development and customer acquisition.

      Business risks surrounding the Group include economic conditions in Japan and overseas; the development and market acceptance of the Company's new products and demand trends; concentration on major customer groups; an increasing sales ratio in the amusement-related field and fluctuations in related order trends; declining sales prices; price competition with other companies; rapid changes in electronic device-related technologies; price fluctuations and shortages of semiconductors, other electronic components, and raw materials; logistics disruptions; inventory risks; litigation risks; changes in tax systems in various countries, transfer pricing and other tax-related issues; intellectual property risks; risks related to product quality issues (including product liability and recalls); regulations concerning environmentally controlled substances; funding shortages due to financial tightening; declines in the market value of investment securities held; impairment risks of fixed assets due to declining profitability; foreign exchange fluctuations; changes in tariff policies in Japan and other countries; revisions to laws and regulations; destruction or falsification of critical data and information leakage due to cyberattacks; overseas business risks; labor shortages and rising labor costs at production facilities; war, riots, and terrorist acts; climate change; outbreaks of pandemics such

      as COVID-19; direct and indirect damage from large-scale disasters such as fires, earthquakes, tsunamis, wind and flood damage, and nuclear accidents; events adversely affecting the markets in which the Company operates and its supply chains; increased cost burdens resulting from tighter environmental regulations; the impact of stock dilution on share prices; and the risk that the acquisition of personnel may not proceed as planned due to a declining birthrate and aging population. Factors that may affect business performance are not limited to those listed above.

   2. ‌Management policy

      The Company and each group company share the following management policy of the Company and aim to enhance corporate value through increasing the Group's management efficiency as a whole.

      1. Basic policy on corporate management

         The Company has contributed to the development of the electronics market by timely supplying high quality and sought-after products, which are backed by advanced technology and a complete quality management system, to the market at all times as an electronic component manufacturer.

         Moving forward, while the electronics market demands technologies and products that are more sophisticated and have greater functionality with the rapid evolution of AI technology and advanced driver-assistance system (ADAS) technology and the spread of the Internet of Everything (IoE: everything is connected to the Internet), the Company will support customers' corporate strategies with its unique advanced technology and contribute to the development of the global electronics markets.

         In terms of its environmental activities, the Company promotes earth-friendly activities, and will take measures to reduce the environmental burden, including acquiring ISO 14001 certification, reducing product energy consumption and size, and promoting the reduction and total abolition of environmentally controlled substances for its products. Furthermore, the Company recognizes addressing carbon neutrality as a corporate responsibility, and will proactively make efforts in this area and promote appropriate information disclosure.

      2. Medium- to long-term corporate management strategy

         The electronics industry, to which the Company belongs, is rapidly changing due to a dizzying pace of technological innovations such as digitalization and networking, and even more promising products and technologies are created one after another there. The smartphone, tablet device and Internet-related devices are expected to witness the progress of high-speed communications and advanced features with an eye to 6G, and will develop and grow further while being combined with conventional consumer electronics/AV and gaming markets, and are expected to come into wider use rapidly. In the automotive-related business, CASE and ADAS are entering a period of diffusion and expansion, and thus the circle (type and quantity) of electronic components and devices used is expanding as onboard electronic devices become more sophisticated. In addition, the growth of markets for medical/health/cosmetics-related devices and electronic devices for nursing care and frailty countermeasures due to the increase in the number of elderly people and the expansion of markets related to IoE for improving productivity, mainly in industrial devices, are also fully expected, and thus the Company believes that the outlook is bright for the electronic component industry as a whole.

         Amid such trends, the Company will make efforts to ensure and expand net sales and profits on a consolidated basis and enhance corporate value by offering extensive product lineups, technological capabilities that cater to diverse customer needs, fine-tuned services centered on customer satisfaction, etc. as an electronic component manufacturer.

         On the technology front, the Company is continuing to take action to achieve the Company's medium-term (three-year) technology plan, which aims to strengthen the technology and research and development systems of the Company and group companies. The Company is reviewing past technologies and reconstructing the strengths of its own products (devices), which is yielding results such as increased development speed and efficiency. The Company will seek to strongly develop its unique technological products that cater to market needs, including new module products and sensor units for IoE. Specifically, the Company will achieve this by advancing its core technologies including electro-mechanical design technology, high-frequency design technology, acoustic design technology, optical design technology, circuit design technology, metal mold design technology, simulation technology, analytical technology, software development, EMC measure design technology, sensor development, and application technology.

         IoE products, in particular, are becoming more widely used as factory DX tools, and needs are increasing for these devices, which are indispensable for solving social issues such as the aging population with a low birthrate, labor shortage, and soaring labor costs. In addition, the Company is planning to launch a line of products that will help protect lifelines and transportation infrastructure, thereby contributing to society from the standpoint of a comprehensive electronic component manufacturer.

         In terms of production, the Company will proceed with automation and labor-saving, including the utilization of industrial robots, with swiftly and will work to reduce costs and stabilize quality.

         ESG management and contributions to the SDGs are global trends that companies and society are striving to achieve, and the Company will also continue to work toward these goals proactively.

      3. Issues to be addressed by the Company

   The Group will consider strengthening and establishing new production bases, mainly in ASEAN countries. The Group will also further enhance overall management efficiency and accelerate decision-making, and strongly promote mechanization, automation, and labor-saving to further enhance productivity, quality, and cost competitiveness, in order to enhance financial results and strengthen its earning base.

   In addition, the Company will enhance and bolster compliance system, corporate social responsibility (CSR) system, internal control system, information security management system, risk management system, etc. toward the enhancement of corporate value. To this end, the Company has established the Sustainability Supervisory Committee, and will promote concrete initiatives and make efforts for appropriate information disclosure.

   In terms of quality, the Group has acquired ISO 9001 certification in all its production bases. Especially in its production bases for the automotive-related business, the Group acquired IATF 16949 certification and will make efforts to enhance and stabilize its quality.

   As for environmental initiatives, the Group will, as a whole, promote the following: acquiring ISO 14001 certification at all its production bases; earth-friendly product design and production activities; environmentally controlled substance measures through green procurement, the RoHS Directive, the REACH regulations, etc.; and the initiatives to reduce the environmental burden including resource conservation/power-saving activities, reduction in waste and recycling. Accordingly, the Group will pay attention to the environment across all of its business activities and continue to improve its environmental management system proactively.

   Furthermore, toward the achievement of carbon neutrality, the Company will promote concrete initiatives and make efforts for appropriate information disclosure.

   Regarding the action to implement management that is conscious of cost of capital and stock price, the Company considers the difference between ROE and cost of equity as equity spread and recognizes it as creation of corporate value. In general, companies are expected to achieve ROE of around 8%, whereas the Company has achieved an ROE exceeding 8%. However, the Company's PBR did not achieve 1 even though its ROE exceeded the expected level. This is believed to be due to insufficient efforts in reducing cost of equity. Based on this recognition, the Company disclosed the Notice on Initiatives for Achieving PBR of 1 and declared to strengthen and enhance IR to promote dialogue with investors in addition to shareholder return measures. Subsequently, the Company has been discussing the issue and has taken measures listed below in addition to the initiative.

   -Disclosure of supplementary materials to the financial results reports on the Company's website at the time of financial results announcements

   -Making available the contents explained at the financial result briefings for securities analysts, message from the president, and summary of questions and answers on the Company's website

   -Disclosure of the Medium-Term Management Plan in the Integrated Report

   -Building relationship of trust with shareholders and investors through proactive implementation of management improvement measures based on ideas gained from constructive dialogue with them

   -Disclosure of annual securities reports (partial) in English

   The Company will continue to strive further to strengthen its IR activities.

   ３．Basic approach to the selection of accounting standards

   The Group has its policy to apply Japanese accounting standards for the time being taking into account the comparability of consolidated financial statements among companies. With respect to the application of IFRS, the Group has its policy to take appropriate actions taking into account the circumstances both in Japan and overseas.

4. ‌Consolidated financial statements and significant notes thereto
   1. ‌Consolidated balance sheets

      		(Millions of yen)
      As of March 31, 2025		As of March 31, 2026
      Assets
      Current assets
      Cash and deposits	59,564	77,685
      Notes receivable - trade	3	-
      Accounts receivable - trade	31,918	25,813
      Electronically recorded monetary claims - operating	1,220	1,022
      Securities	-	697
      Merchandise and finished goods	8,220	7,676
      Work in process	3,207	4,478
      Raw materials and supplies	61,897	57,628
      Trade accounts receivable	1,170	1,759
      Other	4,496	4,878
      Allowance for doubtful accounts	(182)	(176)
      Total current assets	171,516	181,466
      Non-current assets
      Property, plant and equipment
      Buildings and structures	22,510	23,006
      Accumulated depreciation and impairment	(15,663)	(16,857)
      Buildings and structures, net	6,847	6,149
      Machinery, equipment and vehicles	27,614	30,895
      Accumulated depreciation and impairment	(22,600)	(23,760)
      Machinery, equipment and vehicles, net	5,013	7,135
      Land	3,019	3,027
      Construction in progress	874	2,130
      Other	31,340	27,575
      Accumulated depreciation and impairment	(27,492)	(24,501)
      Other, net	3,847	3,073
      Total property, plant and equipment	19,602	21,516
      Intangible assets	508	699
      Investments and other assets
      Investment securities	7,228	8,079
      Retirement benefit asset	-	2,148
      Deferred tax assets	626	662
      Other	1,052	975
      Allowance for doubtful accounts	(254)	(267)
      Total investments and other assets	8,652	11,599
      Total non-current assets	28,763	33,815
      Total assets	200,279	215,281

      		(Millions of yen)
      As of March 31, 2025		As of March 31, 2026
      Liabilities
      Current liabilities
      Accounts payable - trade	34,092	33,338
      Electronically recorded obligations - operating	1,546	1,252
      Short-term borrowings	1,050	-
      Income taxes payable	2,127	6,322
      Provision for bonuses for directors (and other officers)	151	168
      Provision for loss on liquidation of subsidiaries and associates	-	766
      Other	6,269	7,076
      Total current liabilities	45,236	48,924
      Non-current liabilities
      Bonds with share acquisition rights	10,190	10,161
      Deferred tax liabilities	2,397	3,042
      Retirement benefit liability	1,497	2,278
      Other	640	630
      Total non-current liabilities	14,725	16,133
      Total liabilities	59,962	65,038
      Net assets
      Shareholders' equity
      Share capital	13,660	13,660
      Capital surplus	19,596	19,596
      Retained earnings	112,257	122,641
      Treasury shares	(12,393)	(14,063)
      Total shareholders' equity	133,120	141,835
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	3,464	4,758
      Foreign currency translation adjustment	2,922	2,560
      Remeasurements of defined benefit plans	809	1,089
      Total accumulated other comprehensive income	7,196	8,408
      Total net assets	140,317	150,243
      Total liabilities and net assets	200,279	215,281

   2. ‌Consolidated statements of income and consolidated statements of comprehensive income
   ‌Consolidated statements of income

   		(Millions of yen)
   For the fiscal year ended March 31, 2025		For the fiscal year ended March 31, 2026
   Net sales	247,571	448,250
   Cost of sales	224,422	419,082
   Gross profit	23,148	29,168
   Selling, general and administrative expenses	9,575	9,932
   Operating profit	13,573	19,236
   Non-operating income
   Interest income	968	970
   Dividend income	164	193
   Foreign exchange gains	45	4,182
   Other	131	118
   Total non-operating income	1,309	5,465
   Non-operating expenses
   Interest expenses	34	45
   Bond issuance costs	64	-
   Other	8	11
   Total non-operating expenses	107	57
   Ordinary profit	14,776	24,644
   Extraordinary income
   Gain on sale of non-current assets	14	9
   Gain on sale of golf club membership	4	-
   Gain on liquidation of subsidiaries	-	5
   Total extraordinary income	18	15
   Extraordinary losses
   Loss on sale and retirement of non-current assets	8	29
   Loss on valuation of investment securities	123	103
   Impairment losses	432	907
   Provision for loss on liquidation of subsidiaries and associates	-	723
   Other	0	-
   Total extraordinary losses	565	1,764
   Profit before income taxes	14,229	22,894
   Income taxes - current	3,876	6,949
   Income taxes - deferred	315	(261)
   Total income taxes	4,192	6,687
   Profit	10,037	16,206
   Profit attributable to non-controlling interests	-	-
   Profit attributable to owners of parent	10,037	16,206

   ‌Consolidated Statement of Comprehensive Income

   		(Millions of yen)
   For the fiscal year ended March 31, 2025		For the fiscal year ended March 31, 2026
   Profit	10,037	16,206
   Other comprehensive income
   Valuation difference on available-for-sale securities	(35)	1,293
   Foreign currency translation adjustment	650	(361)
   Remeasurements of defined benefit plans, net of tax	128	279
   Total other comprehensive income	742	1,211
   Comprehensive income	10,779	17,418
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	10,779	17,418
   Comprehensive income attributable to non-controlling interests	-	-

   1. ‌Consolidated Statement of Changes in Equity

      For the fiscal year ended March 31, 2025

      (Millions of yen)
      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance at beginning of period	13,660	19,596	106,744	(11,584)	128,417
      Changes during period
      Dividends of surplus			(3,264)		(3,264)
      Profit attributable to owners of parent			10,037		10,037
      Purchase of treasury shares				(3,000)	(3,000)
      Disposal of treasury shares		404		528	932
      Cancellation of treasury shares		(404)	(1,259)	1,663	-
      Net changes in items other than shareholders' equity
      Total changes during period	-	-	5,512	(808)	4,703
      Balance at end of period	13,660	19,596	112,257	(12,393)	133,120

      	Accumulated other comprehensive income				Total net assets
      	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
      Balance at beginning of period	3,500	2,272	680	6,453	134,870
      Changes during period
      Dividends of surplus					(3,264)
      Profit attributable to owners of parent					10,037
      Purchase of treasury shares					(3,000)
      Disposal of treasury shares					932
      Cancellation of treasury shares					-
      Net changes in items other than shareholders' equity	(35)	650	128	742	742
      Total changes during period	(35)	650	128	742	5,446
      Balance at end of period	3,464	2,922	809	7,196	140,317

      For the fiscal year ended March 31, 2026

      (Millions of yen)
      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance at beginning of period	13,660	19,596	112,257	(12,393)	133,120
      Changes during period
      Dividends of surplus			(3,307)		(3,307)
      Profit attributable to owners of parent			16,206		16,206
      Purchase of treasury shares				(4,201)	(4,201)
      Disposal of treasury shares		6		10	17
      Cancellation of treasury shares		(6)	(2,514)	2,521	-
      Net changes in items other than shareholders' equity
      Total changes during period	-	-	10,384	(1,669)	8,714
      Balance at end of period	13,660	19,596	122,641	(14,063)	141,835

      	Accumulated other comprehensive income				Total net assets
      	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
      Balance at beginning of period	3,464	2,922	809	7,196	140,317
      Changes during period
      Dividends of surplus					(3,307)
      Profit attributable to owners of parent					16,206
      Purchase of treasury shares					(4,201)
      Disposal of treasury shares					17
      Cancellation of treasury shares					-
      Net changes in items other than shareholders' equity	1,293	(361)	279	1,211	1,211
      Total changes during period	1,293	(361)	279	1,211	9,926
      Balance at end of period	4,758	2,560	1,089	8,408	150,243

   2. ‌Consolidated Statement of Cash Flows

      		(Millions of yen)
      For the fiscal year ended March 31, 2025		For the fiscal year ended March 31, 2026
      Cash flows from operating activities
      Profit before income taxes	14,229	22,894
      Depreciation	3,540	4,808
      Impairment losses	432	907
      Increase (decrease) in allowance for doubtful accounts	140	(38)
      Increase (decrease) in retirement benefit liability	(627)	1,150
      Interest and dividend income	(1,132)	(1,164)
      Interest expenses	34	45
      Loss (gain) on sale and retirement of non-current assets	(5)	20
      Loss (gain) on valuation of investment securities	123	103
      Loss (gain) on liquidation of subsidiaries	-	(5)
      Increase (decrease) in provision for loss on liquidation of subsidiaries and associates	-	723
      Decrease (increase) in trade receivables	(10,032)	6,619
      Decrease (increase) in inventories	(40,172)	4,052
      Decrease (increase) in operating accounts receivable	17	(566)
      Decrease (increase) in other assets	(1,667)	(473)
      Increase (decrease) in trade payables	20,912	(1,436)
      Increase (decrease) in other liabilities	91	673
      Other, net	451	(1,905)
      Subtotal	(13,665)	36,452
      Interest and dividends received	1,086	1,107
      Interest paid	(31)	(44)
      Income taxes paid	(5,617)	(2,977)
      Net cash provided by (used in) operating activities	(18,228)	34,538
      Cash flows from investing activities
      Payments into time deposits	(15,048)	(16,795)
      Proceeds from withdrawal of time deposits	12,629	14,463
      Income from refund of long-term deposits	3,000	3,500
      Purchase of property, plant and equipment	(6,262)	(7,555)
      Proceeds from sale of property, plant and equipment	78	29
      Purchase of investment securities	(149)	-
      Proceeds from redemption of investment securities	-	300
      Purchase of intangible assets	(255)	(354)
      Other, net	75	35
      Net cash provided by (used in) investing activities	(5,931)	(6,376)
      Cash flows from financing activities
      Net increase (decrease) in short-term borrowings	-	(1,050)
      Redumption of bonds with share acquisition rights	(9,085)	-
      Proceeds from issuance of bonds with share acquisition rights	10,135	-
      Purchase of treasury shares	(3,000)	(4,201)
      Dividends paid	(3,264)	(3,307)
      Other, net	(97)	(76)
      Net cash provided by (used in) financing activities	(5,312)	(8,636)
      Effect of exchange rate change on cash and cash equivalents	(420)	(244)
      Net increase (decrease) in cash and cash equivalents	(29,892)	19,280
      Cash and cash equivalents at beginning of period	76,662	46,769
      Cash and cash equivalents at end of period	46,769	66,050

   3. Notes to consolidated financial statements Notes on going concern assumption

      None applicable.

      Significant matters serving as the basis for preparation of consolidated financial statements

      1. Matters regarding scope of consolidation

         The Company has all of its subsidiaries consolidated, and the number of consolidated subsidiaries is 21.

         Domestic consolidated subsidiaries

         Hosiden Seiko Corporation, Hosiden Kyushu Corporation, Hosiden F.D. Corporation, Hosiden Wakayama Corporation, Hosiden Plastics Corporation, and Hosiden Service Corporation

         Overseas consolidated subsidiaries

         Korea Hosiden Electronics Co., Ltd., Hong Kong Hosiden Ltd., Hosiden America Corp., Hosiden Singapore Pte. Ltd., Hosiden Electronics (Malaysia) Sdn. Bhd, Hosiden Besson Ltd., Hosiden Europe GmbH, Qingdao Hosiden Electronics Co., Ltd., Hosiden Electronics (Shanghai) Co., Ltd., Hosiden (Shenzhen) Co., Ltd., Hosiden Technology (Qingdao) Co., Ltd., Hosiden (Thailand) Co., Ltd., Hosiden Vietnam (Bac Giang) Co., Ltd., China Hosiden Co., Ltd., and Hosiden India Pte. Ltd.

      2. Matters regarding fiscal year of consolidated subsidiaries

         Of consolidated subsidiaries, the closing date of the following six overseas consolidated subsidiaries is December 31: Qingdao Hosiden Electronics Co., Ltd., Hosiden Electronics (Shanghai) Co., Ltd., Hosiden (Shenzhen) Co., Ltd., Hosiden Technology (Qingdao) Co., Ltd., Hosiden Vietnam (Bac Giang) Co., Ltd., and China Hosiden Co., Ltd. In preparing consolidated financial statements for the fiscal year under review, the Company uses the financial statements as of December 31, but made necessary consolidation adjustments for significant transactions that occurred thereafter until the consolidated closing date.

      3. Matters regarding accounting policies

         1. Valuation standards and methods for significant assets Securities

            Available-for-sale securities Non-marketable securities other than stocks, etc.

            . Market value method (Valuation difference is recognized directly into net assets in full, and the cost of

            securities sold is calculated based on the moving average method.) Non-marketable securities, stocks, etc.

            . Moving average cost method

            Derivatives

            . Market value method

            Inventories

            . The Company and domestic consolidated subsidiaries mainly use the periodic average method (values

            on the balance sheet are subject to the carrying amount reduction method based on decreased profitability). Meanwhile, overseas consolidated subsidiaries use the lower of cost or market method (using the first-in, first-out Hosiden Corporation (6804) Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 method) for merchandise, and mainly the periodic average or weighted average method for finished goods, work in process, raw materials and supplies.

         2. Depreciation and amortization method for significant depreciable assets Property, plant and equipment

            . The Company and domestic consolidated subsidiaries use the diminishing balance method. However,

            the straight-line method is used for buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998, and for facilities attached to buildings and also structures acquired on or after April 1, 2016. Overseas consolidated subsidiaries mainly use the straight-line method.

            The useful lives of principal assets are as follows.

            Buildings and structures: 31-50 years Machinery, equipment and vehicles: 5-9 years

            Intangible assets

            . Straight-line method. Software for internal use is amortized by the straight-line method based on the

            internal usable period (five years).

         3. Standards for recognizing significant provisions Allowance for doubtful accounts

            . To prepare for bad debt expenses, the estimated uncollectable amounts regarding normal receivables

            are recognized using the loan loss ratio, and the estimated uncollectable amounts regarding certain receivables, such as doubtful receivables, are recognized by separately examining their collectability.

            Provision for bonuses for directors (and other officers)

            . To prepare for bonus payments to directors and other officers, the relevant provision is recognized

            based on the estimated payment amount.

         4. Accounting method for retirement benefits

            Period attribution method for the expected retirement benefits

            . For calculating retirement benefit obligations, the benefit formula standards are used regarding the

            method of attributing the expected retirement benefits to the periods until the fiscal year under review. Expensing method for actuarial gains and losses and past service costs

            . Past service costs are amortized by the straight-line method over a period within the average

            remaining service years for employees at the time of recognition (mainly five years).

            . Actuarial gains and losses are amortized by the straight-line method over a period within the average

            remaining service years for employees at the time of recognition (mainly five years), and allocated proportionately from the fiscal year following the respective fiscal year of recognition.

            Accounting method for unrecognized actuarial gains and losses and unrecognized past service costs

            . Unrecognized actuarial gains and losses and unrecognized past service costs are recognized at the

            remeasurements of defined benefit plans item of accumulated other comprehensive income in net assets after adjusting tax effects.

         5. Standards for recognition of significant revenues and expenses

            The Group's principal business is developing, manufacturing, and selling electronic components. Sales transactions to customers are based on the terms and conditions determined by agreement with the customer, and revenue is recognized when the performance obligation is satisfied by the transfer of control of the product to the customer. For product sales, the Company determines that the performance obligation is satisfied when the customer obtains control over the product at the time of delivery. However, for domestic product sales, the Company recognizes revenue at the time of shipment to the domestic delivery location designated by the customer.

         6. Scope of net cash in the consolidated statement of cash flows

            The scope of net cash (cash and cash equivalents) in the consolidated statement of cash flows includes cash on hand, deposits drawable at any time, and short-term investments that are readily convertible to cash, are exposed to insignificant risks of changes in value and are redeemable within three months.

         7. Accounting treatment for non-deductible consumption taxes on assets

            Non-deductible consumption taxes and local consumption taxes on assets are treated as expenses for the fiscal year under review.

            Notes on additional information

            The Company decided its consolidated subsidiary, China Hosiden Co., Ltd. to sell all shares to Dongguan Fuxiang Marketing Planning Co., Ltd., and a share transfer agreement was concluded on December 31,2025. Furthermore, China Hosiden Co., Ltd, will cease production on March 28, 2026, and is proceeding with procedures for equity transfer. Date of the sale of equity shares is planned in May 31,2026, and selling price is 25 million RMB and the profit and loss is currently being calculated. In connection with this matter, during the fiscal year ending March 31, 2026 (from April 2025 to March 2026), the scheduled payments related to the reorganization, such as economic compensation to employees, have been recorded as extraordinary losses under "Provision for loss on liquidation of subsidiaries and associates" of 699 million

            yen.

            ‌Segment information, etc. Segment information

            1. Overview of reportable segments

               The Company's reportable segments are components of the Company for which separate financial information is available and which the Board of Directors regularly reviews to make decisions regarding the allocation of management resources and evaluate operating performance.

               The Company develops, manufactures and sells electronic components as its main business, and sets three reportable segments taking into account the product types and similarities of their businesses: electro-mechanical components, acoustic components, and applied equipment and other.

               The electro-mechanical components segment primarily includes connectors, jacks and switches. The acoustic components segment primarily includes microphones, headphones, headsets, speakers and receivers. The applied equipment and other segment represents the applied devices that do not belong to the above segments.

            2. Calculation of net sales, profit or loss, assets and other items by reportable segment

               Accounting methods for the reportable business segments are generally consistent with those described in the section "Significant matters serving as the basis for preparation of consolidated financial statements."

               Reportable segment profit is based on operating profit. Inter-segment sales and transfers are based on the actual transaction volume.

            3. Net sales, profit or loss, assets and other items by reportable segment Previous fiscal year (from April 1, 2024 to March 31, 2025)

               (Millions of yen)

               	Reportable segments				Adjustments or company-wide (Note 1)	Amounts in consolidated financial statements (Note 2)
               	Electro-mechanical components	Acoustic components	Applied equipment and other	Total
               Net sales
               Sales to unaffiliated customers	212,542	20,997	14,031	247,571	-	247,571
               Inter-segment sales and transfers	-	-	-	-	-	-
               Total	212,542	20,997	14,031	247,571	-	247,571
               Segment profit	10,696	1,851	1,025	13,573	-	13,573
               Segment assets	113,592	13,589	4,771	131,954	68,324	200,279
               Other items
               Depreciation	2,740	509	290	3,540	-	3,540
               Increase in property, plant and equipment and intangible assets	5,261	732	439	6,434	299	6,733

               Notes: 1. The adjustments are as follows:

               1. The company-wide assets of 68,324 million yen for segment assets include cash and deposits, securities, investment securities and deferred tax assets, etc.

               2. Of the increase in property, plant and equipment and intangible assets, 299 million yen is company-wide assets that are not allocated to each reportable segment.

   1. The total amount of segment profit is equal to the operating profit in the consolidated statements of income.

      Current fiscal year (from April 1, 2025 to March 31, 2026)

      (Millions of yen)

      	Reportable segments				Adjustments or company- wide (Note 1)	Amounts in consolidated financial statements (Note 2)
      	Electro-mechanical components	Acoustic components	Applied equipment and other	Total
      Net sales
      Sales to unaffiliated customers	414,284	19,431	14,535	448,250	-	448,250
      Inter-segment sales and transfers	-	-	-	-	-	-
      Total	414,284	19,431	14,535	448,250	-	448,250
      Segment profit	16,973	1,586	675	19,236	-	19,236
      Segment assets	109,234	12,415	5,657	127,357	87,924	215,281
      Other items
      Depreciation	3,813	625	370	4,808	-	4,808
      Increase in property, plant and equipment and intangible assets	6,232	708	479	7,420	446	7,866

      Notes: 1. The adjustments are as follows:

      1. The company-wide assets of 87,924 million yen for segment assets include cash and deposits, securities, investment securities and deferred tax assets, etc.

      2. Of the increase in property, plant and equipment and intangible assets, 446 million yen is company-wide assets that are not allocated to each reportable segment.

   1. The total amount of segment profits equal to the operating profit in the consolidated statements of income.

   2. Changes in reporting segments

   Due to a partial change in the performance management classifications of the Company's group, starting from this consolidated fiscal year, the reporting segments of the Company's group now include the previously separate "the display components" under "the applied equipment and other". The Company revised the segment classification of some product in line with this change. Furthermore, the segment information for the previous consolidated fiscal year has been presented based on the revised classification method.

   ‌Per share information

   (Yen)

   	Previous fiscal year (From April 1, 2024 to March 31, 2025)	Current fiscal year (From April 1, 2025 to March 31, 2026)
   Net assets per share	2,757.39	3,051.70
   Basic earnings per share	194.76	322.65
   Diluted earnings per share	181.88	300.45

   Note: The basis for calculation is as follows.

   1. Basic earnings per share and diluted earnings per share

      	Previous fiscal year (From April 1, 2024 to March 31, 2025)	Current fiscal year (From April 1, 2025 to March 31, 2026)
      (1) Basic earnings per share
      Profit attributable to owners of parent (Millions of yen)	10,037	16,206
      Amount not attributable to common shareholders (Millions of yen)	-	-
      Profit attributable to owners of parent relating to common shares (Millions of yen)	10,037	16,206
      Average number of common shares outstanding during the period (Thousands of shares)	51,534	50,230
      (2) Diluted earnings per share
      Adjustment to profit attributable to owners of parent (Millions of yen)	(12)	(19)
      (Of which, amortization amount of bonds discount and expenses (after deducting the tax-equivalent amount))* (Millions of yen)	[(12)]	[(19)]
      Increase in common shares (Thousands of shares)	3,581	3,646
      Overview of potential shares that were not included in the calculation of diluted earnings due to lack of a dilutive effect	-	-

      Note: This represents the amortization amount (after deducting the tax-equivalent amount) relating to the difference occurred due to the issuance of bonds at the value higher than the face value.

   2. Net assets per share

   	Previous fiscal year-end (March 31, 2025)	Current fiscal year-end (March 31, 2026)
   Total net assets (Millions of yen)	140,317	150,243
   Amount to be deducted from total net assets (Millions of yen)	-	-
   Year-end net assets relating to common shares (Millions of yen)	140,317	150,243
   Number of year-end common shares used for the calculation of net assets per share (Thousands of shares)	50,887	49,232

   ‌Significant subsequent events

   None applicable

5. ‌Others

1. Changes in the representative None applicable.

2. Changes in other directors and officers None applicable.