Transcript - Presentation of Financial Results for the Fiscal Year ended March 31, 2026 (FY2025)（5MB）

Financial Results Briefing for the Fiscal Year Ended March 2026 May 14, 2026

(Total: 89 minutes, Presentation: 41 minutes, Q&A: 48 minutes)

Yoshiki Takada President

Masahiro Ota Director and Executive Officer, General Manager of Finance and Accounting Division

Akinori Kato General Manager of Corporate Communications Office

Kentaro Maekawa Nomura Securities

Satoshi Taninaka SMBC Nikko Securities

Kenjin Hotta BofA Securities

Sho Fukuhara Jefferies

Hirosuke Tai Daiwa Securities

Mayumi Kuze Nikkei

*Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A or whose questions were read by moderator/company representatives.

The materials were registered on the TSE TDnet today at 15:00.

Today, Yoshiki Takada, President, will first explain the overall management strategy, followed by Masahiro Ota, Director and Executive Officer, General Manager of Finance and Accounting Division, who will explain the overview of the financial results. A question-and-answer session will then be held. Please note that we will call on approximately five people from among those who requested in advance to speak.

The scheduled ending time is 16:30. President Takada, please begin.

First, I will explain the overview of results for the fiscal year ended March 2026 and our management strategy.

In the fiscal year ended March 2026, orders recovered from H2 of Q3, centered on the semiconductor-related industry, and exceeded our revised financial forecast. Net sales were JPY842.5 billion, up 6.4% YoY. Operating profit was JPY190.5 billion, which was flat YoY.

By industry, semiconductor-related orders were very strong in each region. By region, in Greater China, both electrical equipment and automotive performed steadily. Regarding the automotive-related industry excluding Greater China, as you are all well aware, China overwhelmingly demonstrated competitiveness in electric vehicles. As a result, there continued to be movements to significantly postpone or cancel CapEx. The machine tool-related industry remained strong in both Japan and Greater China, due to demand for data centers and other areas.

CapEx was JPY150.2 billion against the plan of JPY180 billion.

Regarding shareholder returns, today's Board of Directors meeting resolved to pay a year-end dividend of JPY500 per share, for a total of approximately JPY31.6 billion. In addition, from May last year, we implemented a share buyback totaling JPY30 billion.

Next, I will explain the financial forecast guidance for the fiscal year ending March 2027.

We plan net sales of JPY1 trillion, which we had set as our medium-term target, and operating profit of JPY219 billion, up 14.9% YoY.

Regarding demand trends, semiconductor-related demand in Japan, the US, and Asian countries is recovering rapidly, and at present, orders are coming in at levels exceeding the past record high. In the automotive-related industry, CapEx demand for hybrid vehicles is increasing, replacing EVs. By region, investments in automation are expected across a broad range of industries in Greater China.

For operating profit, personnel expenses will increase due to an increase in sales personnel, and depreciation will also increase due to aggressive CapEx. Still, we plan JPY219 billion, up 14.9% YoY, due to higher sales volumes, price revisions, and productivity improvements. The forecast exchange rate is JPY155.

For capital expenditure, investments to secure production capacity and BCP-related investments have run their course, but we plan JPY100 billion, including JPY30 billion carried over from the previous fiscal year, due to the expansion of the Vietnam plant and investments in overseas sales bases.