Financial Results for the First Half Results (2025 0806 mid en)

Financial Results Presentation Materials Q2 2025

1. Summary of Financial Results for Q2 FY2025
2. Progress of Transformation
3. Appendix: Net sales and Operating Income by Segments

Financial Highlights

FY2024

2Q

FY2025 2Q

Change

rate

（mil. yen）

FY2024 FC

Net sales

240,022

254,721

+14,699

+6.1% 506,000

Operating income

6,715

18,417

+11,702

+174.2% 19,700

Ordinary income

11,092

19,019

+7,926

+71.5% 21,600

Net income Attributable to Owners of Parent

8,936

11,498

+2,562

+28.7% 18,300

• Despite a decline in revenue and an expansion of losses in the Microdevices Business, revenue and operating profit increased due to growth in revenue and profit in the Wireless and Communications Business and the Real Estate Business

• As extraordinary losses, the company recorded approximately 1 billion yen in restructuring costs for the subsidiary business in the Wireless and Communications Business, and approximately 4.2 billion yen in impairment losses for the fuel cell bipolar plates business in the Chemicals Business.

Q2 FY2025 YoY by segments

（mil. yen）

• Wireless and Communications Business

• Marine Systems

  In addition to new-build equipment for merchant ships, orders for retrofit equipment and maintenance services for merchant ships and other aftermarket products have been strong.

• Solutions and Specialized Equipment Increased orders for radar systems and maintenance equipment for the Ministry of Defense, as well as increased orders for prefectural disaster prevention systems due to renewal needs

• Mobility and Others

  Orders for automotive ITS (Intelligent Transportation Systems) have decreased, and orders for repeaters (mobile phone relay devices) have also been weak due to customer schedule adjustments

  
  
  Q2 FY2025 YoY by segments  Micro Devices Business

  Segments	Subsegments		Q2 FY2024		Q2 FY2025		Change
  			Net sales	O.P.	Net sales	O.P.	Net sales	O.P.
  Wireless and Communications	Marine Systems		24,459	2,257	28,031	2,554	3,572	297
  		（JRC）	34,226	304	39,056	3,639	4,830	3,335
  		（KDE）	36,565	3,339	40,197	6,322	3,632	2,983
  	Solutions & Defense		70,791	3,643	79,253	9,961	8,462	6,318
  	Mobilities		24,472	-39	20,080	-2,136	-4,392	-2,097
  	Elimination		-1,695	-89	-1,190	-38	505	51
  Total			118,027	5,772	126,174	10,341	8,147	4,568
  Micro Devices			31,132	-2,747	29,825	-4,257	-1,307	-1,509
  Brakes			28,761	1,110	28,275	1,787	-486	677
  Precision Instruments			25,761	467	27,138	1,250	1,377	783
  Chemicals			5,474	315	4,740	-173	-733	-489
  Textiles			18,386	-163	16,593	46	-1,792	210
  Real Brakes			6,853	5,222	15,863	11,811	9,010	6,589
  Other businesses, Coporate costs			5,625	-3,260	6,110	-2,389	485	871
  Total			240,022	6,715	254,721	18,417	14,699	11,702

  （mil. yen）

• Automotive

  Decrease in orders due to the sluggish EV market and inventory adjustments by sensor-related customers

• Industrial Machinery

  Sales remained at the same level as the previous year due to orders for domestic office automation equipment, etc.

• Consumer

Sales remained at the same level as the previous year due to orders for smartphones and amusement-related products, as customer inventory adjustments bottomed out.