FY2026 1st Quarter Results Presentation Q&A Summary

‌No.

Category

Q

A

1

Valve Manufacturing Business (Forecast)

Will the M&A-related costs and increased R&D spending-main factors of the rise in SG&A-continue from Q2 onward?

M&A-related costs are essentially one-off in nature, however, they are expected to arise on a case-by-case basis as new transactions are executed. In line with our 2nd MTP, which emphasizes the strengthening of M&A, we continue to actively evaluate multiple opportunities.

The investments in strengthening R&D are associated with initiatives in the semiconductor market. Given our policy to further enhance technological capabilities in this field, R&D spending are expected to continue going forward.

2

Valve Manufacturing Business (Semiconductor equipment)

Regarding to order trends and earnings outlook from Q2 onward

Order intake have expanded rapidly since the beginning of 2026, reaching a record high in February. Since then, they have remained at a high level, approximately double the level of 2025. These orders are expected to be recognized as revenue progressively from April onward.