JVCKENWOOD : Consolidated Financial Results for the Three Months Ended June 30, 2025 (Under IFRS)

August 1, 2025

Company name: JVCKENWOOD Corporation

Listing: Prime Market of the Tokyo Stock Exchange Securities code: 6632

URL: https://www.jvckenwood.com/en.html

Representative: EGUCHI Shoichiro, Representative Director of the Board, President and CEO Inquiries: MIYAMOTO Masatoshi, Representative Director of the Board, Senior Managing

Executive Officer, CFO

Telephone: +81-45-444-5232

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for analysts and institutional investors)

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

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)
   1. Consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Revenue		Core operating income*		Operating profit		Profit before tax
      Three months ended	Million yen 80,197 87,769	%	Million yen 3,052 5,975	%	Million yen 4,356 6,022	%	Million yen 4,891 6,950	%
      June 30, 2025		-8.6		-48.9		-27.7		-29.6
      June 30, 2024		2.5		18.6		20.2		42.6

      *Core operating income is calculated by deducting cost of sales, selling and general administrative expenses from revenue, and does not include other income, other expenses, and foreign exchange gains and losses, which are nonrecurring items that mainly occur temporarily.

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      Three months ended	Million yen 3,446 5,503	%	Million yen 2,495 12,779	%	Yen	Yen
      June 30, 2025		-37.4		-80.5	23.38	23.19
      June 30, 2024		58.3		3.2	36.50	36.24

   2. Consolidated Financial Position

   	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets
   As of	Million yen	Million yen	Million yen	%
   June 30, 2025	306,313	129,993	124,195	40.5
   March 31, 2025	313,336	131,399	125,103	39.9

2. Dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen - -	Yen	Yen -	Yen	Yen
   Fiscal year ended March 31, 2025		5.00		10.00	15.00
   Fiscal year ending March 31, 2026
   Fiscal year ending March 31, 2026 (Forecast)		6.00	-	12.00	18.00

   Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 -

(% indicate year-on-year changes)

Note: Revisions to recently announced earnings forecasts: None

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

3. Number of issued shares (ordinary shares)

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

      As of June 30, 2025	164,000,201 shares
      As of March 31, 2025	164,000,201 shares

   2. Number of treasury stock at the end of the period

      As of June 30, 2025	17,534,648 shares
      As of March 31, 2025	15,960,655 shares

   3. Average number of shares outstanding during the period

* JVCKENWOOD Corporation's shares owned by the trust relating to the share-based payment plan are included in the number of treasury stock.

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Proper use of earnings forecasts, and other special matters:

A Cautionary Note on Forward-Looking Statements

This report contains forward-looking statements including those concerning future performance of JVCKENWOOD Corporation (the "Company"), and those statements are based on the Company's current assumptions, expectations and beliefs in light of the information currently possessed by it. Various factors may cause the Company's actual results to be materially different from any future performance expressed or implied by these forward-looking statements. Therefore, these statements do not constitute a guarantee by the Company that such future performance will be realized. For cautionary notes with respect to forward-looking statements, please refer to the "(3) Future Outlook" in "1. Overview of Business Performance."

Access to Supplementary Financial Materials and Earnings Presentations

The Company plans to hold an online earnings results presentation for analysts and institutional investors on Monday, August 4, 2025. The presentation materials to be used on that day will be available for download from the Company's website.

(Appendix)

Table of Contents for Appendix

1. Overview of Business Performance 2

   1. Operating Results 2

   2. Financial Position 4

   3. Explanation of Future Forecast Information such as Consolidated Financial Forecast 5

2. Consolidated Financial Statements 6

   1. Consolidated Statement of Financial Position 6

   2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income 8

   3. Consolidated Statement of Changes in Equity 10

   4. Consolidated Statement of Cash Flows 12

   5. Notes to Consolidated Financial Statements 13

(Assumption for Going Concern) 13

(Segment Information) 13

1. Overview of Business Performance
   1. Operating Results

      Overview of the First Quarter of the Fiscal Year ending March 31, 2026

      Revenue of JVCKENWOOD Corporation and its consolidated subsidiaries (the "Group") for the first three months of the fiscal year ending March 31, 2026 decreased from the same period a year earlier due to a significant impact from a decrease in production and sales caused by insufficient supply of components in the Communications Systems Business of the Safety & Security Sector, as well as the impact of the U.S. tariff measures in the Mobility & Telematics Services Sector and the Media Business of the Entertainment Solutions Sector.

      Due to the impact of revenue decrease, the line-item profits of core operating income through to the profit attributable to owners of the parent also decreased from the same period a year earlier.

      The impact of insufficient supply of components in the Communication Systems Business has mostly been eliminated in the second half of the first quarter of the fiscal year ending March 31, 2026, and production is normalizing.

      A summary of consolidated operating results for the first three months of the fiscal year ending March 31, 2026 is as follows.

      (Million yen)

      	Q1 of FYE3/'25	Q1 of FYE3/'26	Year-on-year change
      			Amount	Percentage
      Revenue	87,769	80,197	-7,571	-8.6%
      Core operating income*	5,975	3,052	-2,922	-48.9%
      Operating profit	6,022	4,356	-1,666	-27.7%
      Profit before income taxes	6,950	4,891	-2,058	-29.6%
      Profit attributable to owners of the parent	5,503	3,446	-2,057	-37.4%

      * Core operating income is calculated by deducting cost of sales and selling, general and administrative expenses from revenue, and does not include other income, other expenses, and foreign exchange losses (gains), which are primarily due to one-time factors. The evaluation of business sector performance is explained using core operating income.

      The exchange rates used for financial reporting purposes for the first three months of the fiscal year ending March 31, 2026 are as follows.

      	Q1
      FYE3/'26 U.S. dollar Euro	Approx. 145 yen Approx. 164 yen
      FYE3/'25 U.S. dollar (for reference) Euro	Approx. 156 yen Approx. 168 yen

      Revenue

      Revenue of the Group for the first three months of the fiscal year ending March 31, 2026 decreased approximately 7,600 million yen, or 8.6%, from the same period a year earlier to 80,197 million yen. This was because of the significant impact of a decrease in production and sales caused by insufficient supply of components in the Communications Systems Business of the Safety & Security Sector, as well as the impact of the U.S. tariff measures in the Mobility & Telematics Services Sector and the Media Business of the Entertainment Solutions Sector.

      Core operating income

      The Company defines core operating income as revenue less cost of sales and selling, general and administrative expenses.

      Core operating income for the first three months of the fiscal year ending March 31, 2026 decreased approximately 2,900 million yen, or 48.9%, from a year earlier to 3,052 million yen, mainly because of reflecting a decrease in revenue.

      Operating profit

      Operating profit for the first three months of the fiscal year ending March 31, 2026 decreased approximately 1,700

      million yen, or 27.7%, from a year earlier to 4,356 million yen, mainly due to a decrease in core operating income despite improvement in other income.

      Profit before income taxes

      Profit before income taxes for the first three months of the fiscal year ending March 31, 2026 decreased approximately 2,100 million yen, or 29.6%, from a year earlier to 4,891 million yen. This was mainly due to a decrease in operating profit.

      Profit attributable to owners of the parent

      Profit attributable to owners of the parent for the first three months of the fiscal year ending March 31, 2026 decreased approximately 2,100 million yen, or 37.4%, from a year earlier to 3,446 million yen, mainly due to a decrease in profit before income taxes.

      Revenue and Profit (Loss) by Business Sector

      Revenue and core operating income (loss) by business sector are as follows.

      Three months ended June 30, 2025 (April 1, 2025, to June 30, 2025)

      (Million yen)

      Business Sector		Q1 of FYE3/'25	Q1 of FYE3/'26	Year-on-year change
      Mobility & Telematics Services Sector	Revenue Core operating income	47,939 616	46,580 1,650	-1,359 +1,033
      Safety & Security Sector	Revenue Core operating income	24,238 4,545	18,279 900	-5,959 -3,645
      Entertainment Solutions Sector	Revenue Core operating income	13,440 745	13,234 422	-206 -323
      Others	Revenue Core operating income	2,150 66	2,103 78	-46 +12
      Total	Revenue Core operating income	87,769 5,975	80,197 3,052	-7,571 -2,922

      Mobility & Telematics Services Sector

      Revenue of the Mobility & Telematics Services Sector for the first three months of the fiscal year ending March 31, 2026 decreased approximately 1,400 million yen, or 2.8%, from a year earlier to 46,580 million yen. Core operating income grew approximately 1,000 million yen, or 167.5%, from a year earlier to 1,650 million yen.

      Revenue

      Revenue of the OEM Business increased from a year earlier mainly due to solid performance of the dealer-installed option business in Japan as well as sales of in-vehicle speakers, amplifiers, antennas and cables at ASK Industries S.p.A., despite a decrease in sales of JVCKENWOOD Hong Kong Holdings Limited ("JKHL") engaged in OEM of automotive components and electronic devices, mainly due to the impact of the U.S. tariff measures.

      Revenue of the Aftermarket Business decreased from a year earlier mainly due to impacts of the U.S. tariff measures.

      Revenue of the Telematics Service Business decreased from a year earlier due to a decline in sales of the connected-type dashcams for auto insurance companies.

      Core operating income

      Core operating income of the entire Mobility & Telematics Services Sector increased from a year earlier. This was because, while JKHL in the OEM Business and the Aftermarket Business were affected by a decrease in revenue due to the U.S. tariff measures, profitability in the Aftermarket Business improved due to pass-through to product prices.

      Safety & Security Sector

      Revenue of the Safety & Security Sector for the first three months of the fiscal year ending March 31, 2026 decreased approximately 6,000 million yen, or 24.6%, from a year earlier to 18,279 million yen. Core operating income decreased approximately 3,600 million yen, or 80.2%, from a year earlier to 900 million yen.

      Revenue

      Revenue of the Communications Systems Business decreased approximately 6,000 million yen from a year earlier, mainly due to a significant impact from a decrease in production and sales caused by insufficient supply of components.

      Revenue of the Professional Systems Business increased approximately 100 million yen from a year earlier mainly due to steady performance of JVCKENWOOD Public & Industrial Systems Corporation.

      Core operating income

      Core operating income of the Safety & Security Sector as a whole reported a decrease from a year earlier. This was mainly because of a significant impact from a decrease in revenue of the Communications Systems Business.

      Entertainment Solutions Sector

      Revenue of the Entertainment Solutions Sector for the first three months of the fiscal year ending March 31, 2026 fell approximately 200 million yen, or 1.5%, from a year earlier to 13,234 million yen. Core operating income decreased approximately 300 million yen, or 43.3%, from a year earlier to 422 million yen.

      Revenue

      Revenue of the Media Business decreased approximately 900 million yen from a year earlier mainly due to impacts of the U.S. tariff measures.

      Revenue of the Entertainment Business increased approximately 700 million yen from a year earlier mainly due to solid sales in the content business.

      Core operating income

      The Entertainment Solutions Sector as a whole reported a decrease in core operating income from a year earlier mainly due to a decrease in revenue of the Media Business.

   2. Financial Position

      Analysis of Assets, Liabilities, Equity, Etc. Assets

      Total assets decreased approximately 7,000 million yen from the end of the previous fiscal year to 306,313 million yen. This was mainly due to a decrease in current assets, such as trade and other receivables.

      Liabilities

      Total liabilities were down approximately 5,600 million yen from the end of the previous fiscal year to 176,320 million yen. This was mainly due to a decrease in trade and other payables, as well as a decrease in other current liabilities for seasonal factors.

      Equity

      Total equity decreased approximately 1,400 million yen from the end of the previous fiscal year to 129,993 million yen. This was mainly because other components of equity decreased due to share repurchase and appreciation of the yen, though retained earnings increased approximately 2,000 million yen.

      The ratio of equity attributable to owners of the parent to total assets increased 0.6 percentage points from the end of the previous fiscal year to 40.5%. This was due to a decrease in total assets.

      Cash Flow Analysis

      Cash flows from operating activities

      Net cash provided by operating activities for the first three months of the fiscal year ending March 31, 2026 was 7,640 million yen, a decrease of approximately 1,300 million yen from the same period of the previous fiscal year. This was mainly due to a decrease in profit before income taxes despite a decrease in working capital.

      Cash flows from investing activities

      Net cash used in investing activities for the first three months of the fiscal year ending March 31, 2026 was 4,060 million yen, a decrease of approximately 1,300 million from the same period of the previous fiscal year. This was mainly due to proceeds from sale of real estate.

      Cash flows from financing activities

      Net cash used in financing activities for the first three months of the fiscal year ending March 31, 2026 was 2,885 million yen, a decrease of approximately 6,600 million yen from the same period of the previous fiscal year. This was mainly due to an increase in short-term borrowings despite an increase in acquisition of treasury stock.

      Cash and cash equivalents at the end of the first quarter of the fiscal year ending March 31, 2026 decreased approximately 5,000 million yen from the same period of the previous fiscal year to 49,318 million yen.

   3. Explanation of Future Forecast Information such as Consolidated Financial Forecast Earnings Forecast for the Fiscal Year Ending March 31, 2026

   For the first three months of the fiscal year ending March 31, 2026, revenue and profit decreased from a year earlier, mainly due to a significant impact from a decrease in production and sales caused by insufficient supply of components in the Communications Systems Business of the Safety & Security Sector, as well as the impact of the

   U.S. tariff measures in the Mobility & Telematics Services Sector and the Media Business of the Entertainment Solutions Sector. This was as forecast on an entire company level, although the forecast impact varied by sector. From the second quarter of the fiscal year ending March 31, 2026, production and sales in the Communications Systems Business are expected to recover due to elimination of insufficient supply of components. However, impacts of the U.S. tariff measures remain unclear. At present, the consolidated earnings forecast for the fiscal year ending March 31, 2026, announced on May 1, 2025, will not be revised.

   (Million yen)

   	Consolidated earnings for the fiscal year ended March 31, 2025	Consolidated earnings forecast for the fiscal year ending March 31, 2026	Year-on-year change
   Revenue	370,308	358,000	-12,308
   Core operating income*	25,307	20,000	-5,307
   Operating profit	21,792	19,000	-2,792
   Profit before income taxes	23,490	19,500	-3,990
   Profit attributable to owners of the parent	20,276	14,000	-6,276

   *Core operating income is calculated by deducting cost of sales and selling, general and administrative expenses from revenue, and does not include other income, other expenses, and foreign exchange losses (gains), which are primarily due to one-time factors.

   The exchange rates used as assumptions in the earnings forecast is: USD 1 = JPY150 and EUR 1 = JPY157.

   The earning forecast was prepared by the JVCKENWOOD Corporation based on information available at the time of releasing this document. Actual business results may differ from the forecast values due to various factors.

1. Consolidated Financial Statements

1. Consolidated Statement of Financial Position

   (Millions of yen)

   	As of March 31, 2025	As of June 30, 2025
   Assets Current assets Cash and cash equivalents Trade and other receivables Contract assets Other financial assets Inventories Right to recover products Income taxes receivable Other current assets Subtotal Assets classified as held for sale Total current assets Non-current assets Property, plant and equipment Goodwill Intangible assets Net defined benefit assets Investment property Investments accounted for using the equity method Other financial assets Deferred tax assets Other non-current assets Total non-current assets Total assets	48,597 71,738 6,682 2,228 58,498 346 934 6,885	49,318 59,639 5,600 1,867 61,538 430 942 8,293
   	195,912	187,630
   	913	-
   	196,825	187,630
   	62,067 886 22,920 635 3,991 8,044 8,472 8,760 733	61,439 927 24,387 604 3,920 8,847 9,336 8,336 884
   	116,510	118,683
   	313,336	306,313

   (Millions of yen)

   	As of March 31, 2025	As of June 30, 2025
   Liabilities and equity Liabilities Current liabilities Trade and other payables Contract liabilities Refund liabilities Short-term borrowings Other financial liabilities Income taxes payable Provisions Other current liabilities Subtotal Liabilities directly associated with assets classified as held for sale Total current liabilities Non-current liabilities Long-term borrowings Other financial liabilities Net defined benefit liabilities Provisions Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Equity Capital stock Capital surplus Retained earnings Treasury stock Other components of equity Equity attributable to owners of the parent Non-controlling interests Total equity Total liabilities and equity	50,578 4,285 4,280 26,121 4,449 1,981 2,117 31,471	49,127 4,566 3,769 30,464 4,745 1,449 2,069 26,202
   	125,285	122,396
   	862	-
   	126,148	122,396
   	24,253 11,198 15,659 1,316 2,288 1,072	22,969 10,822 15,470 1,328 2,290 1,043
   	55,789	53,923
   	181,937	176,320
   	13,645 42,357 58,086 (11,589) 22,602	13,645 42,324 60,052 (13,546) 21,719
   	125,103	124,195
   	6,295	5,797
   	131,399	129,993
   	313,336	306,313

2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Consolidated Statement of Income)

   (Millions of yen)

   	Three months ended June 30, 2024	Three months ended June 30, 2025
   Revenue Cost of sales Gross profit Selling, general and administrative expenses Other income Other expenses Foreign exchange gains (losses) Operating profit Finance income Finance expenses Share of profit (loss) of investments accounted for using the equity method Profit before income taxes Income tax expenses Profit Profit attributable to: Owners of the parent Non-controlling interests Profit Earnings per share Basic earnings per share Diluted earnings per share	87,769 59,403	80,197 55,661
   	28,366	24,536
   	22,390 284 139 (96)	21,484 1,446 215 72
   	6,022	4,356
   	298 360 989	293 328 569
   	6,950	4,891
   	1,146	1,325
   	5,803	3,566
   	5,503 300	3,446 120
   	5,803	3,566
   	36.50 yen 36.24 yen	23.38 yen 23.19 yen

   (Consolidated Statement of Comprehensive Income)

   (Millions of yen)

   	Three months ended June 30, 2024	Three months ended June 30, 2025
   Profit Other comprehensive income ("OCI") Items that will not be reclassified subsequently to profit or loss Financial assets measured at fair value through OCI Total items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss Exchange differences arising on translation of foreign operations Cash flow hedges Share of OCI of investments accounted for using the equity method Total items that may be reclassified subsequently to profit or loss OCI, net of income tax Comprehensive income Total comprehensive income attributable to: Owners of the parent Non-controlling interests Comprehensive income	5,803	3,566
   	(252)	481
   	(252)	481
   	6,828 (100) 500	(1,074) (719) 240
   	7,228	(1,552)
   	6,975	(1,071)
   	12,779	2,495
   	12,065 714	2,563 (68)
   	12,779	2,495

3. Consolidated Statement of Changes in Equity

   For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)

   (Millions of yen)

   	Equity attributable to owners of the parent
   	Capital stock	Capital surplus	Retained earnings	Treasury stock	Other components of equity
   					Remeasure-ment of defined benefit plans	Financial assets measured at fair value through other comprehensive income	Exchange differences arising on translation of foreign operations
   Balance as of April 1, 2024	13,645	42,209	40,004	(7,125)	-	1,106	22,313
   Profit			5,503
   Other comprehensive income						(252)	6,837
   Comprehensive income	-	-	5,503	-	-	(252)	6,837
   Acquisition of treasury stock				(0)
   Disposal of treasury stock
   Share-based payment transactions		55		12
   Dividends paid			(1,809)
   Changes in ownership interests in subsidiaries Total transactions with the owners		(68)
   	-	(12)	(1,809)	12	-	-	-
   Balance as of June 30, 2024	13,645	42,196	43,698	(7,113)	-	853	29,151

   (Millions of yen)

   	Equity attributable to owners of the parent				Non-controlling interests	Total equity
   	Other components of equity			Total
   	Cash flow hedges	Fair value of investment property	Total
   Balance as of April 1, 2024	2,256	391	26,067	114,801	6,418	121,220
   Profit			-	5,503	300	5,803
   Other comprehensive income	(23)		6,561	6,561	413	6,975
   Comprehensive income	(23)	-	6,561	12,065	714	12,779
   Acquisition of treasury stock			-	(0)		(0)
   Disposal of treasury stock			-	-		-
   Share-based payment transactions			-	68		68
   Dividends paid			-	(1,809)		(1,809)
   Changes in ownership interests in subsidiaries			-	(68)	68	-
   Total transactions with the	-	-	-	(1,809)	68	(1,741)
   owners
   Balance as of June 30, 2024	2,232	391	32,629	125,057	7,201	132,258

   For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

   (Millions of yen)

   	Equity attributable to owners of the parent
   	Capital stock	Capital surplus	Retained earnings	Treasury stock	Other components of equity
   					Remeasure-ment of defined benefit plans	Financial assets measured at fair value through other comprehensive income	Exchange differences arising on translation of foreign operations
   Balance as of April 1, 2025	13,645	42,357	58,086	(11,589)	-	909	20,529
   Profit			3,446
   Other comprehensive income						481	(784)
   Comprehensive income	-	-	3,446	-	-	481	(784)
   Acquisition of treasury stock		(1)		(2,000)
   Disposal of treasury stock				0
   Share-based payment transactions		56		42
   Dividends paid			(1,480)
   Changes in ownership interests in subsidiaries Total transactions with the owners		(88)
   	-	(33)	(1,480)	(1,957)	-	-	-
   Balance as of June 30, 2025	13,645	42,324	60,052	(13,546)	-	1,391	19,745

   (Millions of yen)

   	Equity attributable to owners of the parent				Non-controlling interests	Total equity
   	Other components of equity			Total
   	Cash flow hedges	Fair value of investment property	Total
   Balance as of April 1, 2025	772	391	22,602	125,103	6,295	131,399
   Profit			-	3,446	120	3,566
   Other comprehensive income	(580)		(882)	(882)	(188)	(1,071)
   Comprehensive income	(580)	-	(882)	2,563	(68)	2,495
   Acquisition of treasury stock			-	(2,002)		(2,002)
   Disposal of treasury stock			-	0		0
   Share-based payment transactions			-	99		99
   Dividends paid			-	(1,480)	(2)	(1,482)
   Changes in ownership interests in subsidiaries			-	(88)	(427)	(515)
   Total transactions with the	-	-	-	(3,471)	(429)	(3,900)
   owners
   Balance as of June 30, 2025	192	391	21,719	124,195	5,797	129,993

4. Consolidated Statement of Cash Flows

   (Millions of yen)

   	Three months ended June 30, 2024	Three months ended June 30, 2025
   Cash flows from operating activities
   Profit before income taxes	6,950	4,891
   Depreciation and amortization	4,375	4,239
   Increase (decrease) in net defined benefit liabilities	(627)	(146)
   Decrease (increase) in net defined benefit assets	53	31
   Finance income	(298)	(293)
   Finance expenses	360	328
   Loss (gain) on valuation of financial assets measured at fair value through profit or loss	(115)	51
   Loss (gain) on sales of property, plant and equipment	(21)	(1,222)
   Loss on disposal of property, plant and equipment	7	16
   Share of loss (profit) of investments accounted for using the equity method	(989)	(569)
   Decrease (increase) in trade and other receivables	3,774	12,254
   Decrease (increase) in inventories	(1,673)	(2,667)
   Increase (decrease) in trade and other payables	3,530	(688)
   Increase (decrease) in accrued expenses	(4,912)	(6,790)
   Increase (decrease) in other current liabilities	2,007	1,814
   Other, net	(2,624)	(2,089)
   Subtotal	9,797	9,160
   Interest received	243	208
   Dividend received	54	83
   Interest paid	(329)	(298)
   Income taxes paid	(818)	(1,513)
   Net cash provided by operating activities	8,947	7,640
   Cash flows from investing activities
   Purchases of property, plant and equipment	(2,302)	(1,866)
   Proceeds from sales of property, plant and equipment	59	1,325
   Purchases of intangible assets	(3,044)	(3,283)
   Other, net	(47)	(236)
   Net cash used in investing activities	(5,334)	(4,060)
   Cash flows from financing activities
   Proceeds from short-term borrowings	449	23,812
   Repayment of short-term borrowings	(3,809)	(18,451)
   Proceeds from long-term borrowings	84	1,143
   Repayment of long-term borrowings	(3,307)	(3,737)
   Repayment of lease liabilities	(1,016)	(942)
   Acquisition of treasury stock	(0)	(2,000)
   Cash dividends paid	(1,809)	(1,480)
   Cash dividends paid to non-controlling interests	(126)	(715)
   Other, net	12	(515)
   Net cash used in financing activities	(9,525)	(2,885)
   Effect of exchange rate changes on cash and cash	2,352	26
   equivalents
   Net increase (decrease) in cash and cash equivalents	(3,559)	720
   Cash and cash equivalents at beginning of year	57,874	48,597
   Cash and cash equivalents at end of quarter	54,314	49,318

5. Notes to Consolidated Financial Statements

(Assumption for Going Concern): None

(Segment Information)

1. Outline of reportable segments

   Reportable segments are the Company's constituent business units for which separate financial information can be obtained and those which are periodically examined by the Board of Directors for the purposes of determining the allocation of resources and evaluating results of operations.

   The Group appoints a chief operating officer ("COO") in each sector to formulate comprehensive strategies and engage in business activities for their products and services and conducts their worldwide operations.

   The Group is taking a step forward and going from being a traditional manufacturing and sales company to being one that creates customer value by providing solutions to their problems and operates three business segments: the Mobility & Telematics Services Sector, the Safety & Security Sector, and the Entertainment Solutions Sector. The Group's reportable segments are consistent with these business segments.

   The major products, services, and business details of each segment are as follows:

   Mobility & Telematics Services Sector	Manufacture and sales of car AV systems, car navigation systems, dashcams; in- vehicle speakers, amplifiers, antennas, and cables; in-vehicle devices, etc., and telematics solutions
   Safety & Security Sector	Manufacture and sales of professional wireless communications devices, communications devices for general consumers, professional video surveillance equipment, professional audio equipment, medical image display systems, etc.
   Entertainment Solutions Sector	Manufacture and sales of projectors, headphones, home audio equipment, portable power supplies, professional video cameras, etc.; entrusted business of CDs and DVDs (packaged software), etc.; manufacture of CDs and DVDs (packaged software); content business of audio and video software, content distribution, etc.
   Others	Service parts, etc.

2. Revenue, profit or loss for each reportable segment Revenue, profit or loss of each segment are as follows:

For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)

(Millions of yen)

Note: Segment profit is indicated with core operating income and calculated by deducting cost of sales and selling, general and administrative expenses from revenue.

For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

(Millions of yen)

Note: Segment profit is indicated with core operating income and calculated by deducting cost of sales and selling, general and administrative expenses from revenue.