FY2025 3rd Quarter Results Presentation Q&A Summary

‌No.

Category

Q

A

1

Valve Manufacturing Business

(Results)

Why the SG&A expenses increased in Q3 and how is Q4 outlook?

SG&A expenses appear higher in Q3 due to lower expenses in the same period last year. In this year, M&A costs are included but there were no particularly large expenses. For Q4, IT investment is expected to increase.

2

Valve Manufacturing Business (Semiconductor equipment)

How is the sales outlook for semiconductor manufacturing equipment and status for inquiries?

Initially, we expected recovery from Q4, but the situation remains mixed. While demand in advanced fields is steady, demand that can be expected in terms of volume, including construction of semiconductor plants in China, remains sluggish. Full-scale recovery is expected from 2026 onward.

3

Valve Manufacturing Business

(Price revision)

How is the effects of the price revision implemented in June 2025 and outlook for Q4?

In Q3, the effect of the price revision slightly exceeded what we had expected. Our expectation in Q4 is to increase further, amounting to several hundred million yen.

4

Consolidated (Results)

Will the rising copper prices affect this and next year's performance?

Sales in the brass bar business rise in line with market trends. If the upward trend continues into next year, there is a high possibility that the cost of bronze and brass valves will also be impacted. We will ensure profits even if copper prices rise through strategies such as launching lower-priced versions and increasing sales volume.

5

Valve Manufacturing Business

(Growth strategy)

How is the current status and full-year outlook for sales scale related to North American data centers?

We are expanding production capacity and building strategic inventory, mainly to meet demand in North America. Progress so far has been steady, and we plan to significantly expand this business next year.