Transcript - Presentation of Financial Results for the Second Quarter ended September 30, 2025 (FY2025)（3MB）

Financial Results Briefing for the 2nd Quarter Fiscal Year Ending March 2026 November 13, 2025

(Total: 80 minutes, Presentation: 27 minutes, Q&A: 53 minutes)

Yoshiki Takada President

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

Kentaro Maekawa Nomura Securities

Kenjin Hotta BofA Securities

Satoshi Taninaka SMBC Nikko Securities

Graeme McDonald Citigroup Global Markets

Hirosuke Tai Daiwa Securities

Mayumi Kuze Nikkei Inc.

*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.

We are broadcasting today's session online via Zoom. The presentation materials were posted at 15:00 on the

Tokyo Stock Exchange's TDnet and on our IR website.

First, our President, Yoshiki Takada, will explain the overview of the financial results for Q2 of the fiscal year ending March 2026 and our management strategies. This will be followed by Masahiro Ota, Director and Executive Officer, General Manager of Finance and Accounting Division, who will explain the Q2 financial results and the revisions to the full-year forecast for the fiscal year ending March 2026.

We will then move on to the Q&A session. Please note that we will proceed by calling on approximately five participants, selected from among those who indicated in advance that they wished to speak. We plan to conclude at 16:30. That concludes my introduction.

President Takada, the floor is yours.

In FY2025 H1, net sales increased in Greater China, and sales volume grew, resulting in net sales of JPY400.2 billion, a 1.3% increase YoY. Meanwhile, due to foreign exchange impacts and an increase in fixed costs such as depreciation, operating profit decreased by 8.8% YoY to JPY90.7 billion.

By industry, demand for semiconductor and electrical machinery remained sluggish in Japan, the United States, and South Korea, while electrical machinery in Greater China showed signs of recovery. In the automotive-related sector, the impact of US tariffs contributed to a stronger trend of postponing capital investment. Machine tool-related demand remained in an adjustment phase outside of Greater China.

Regarding shareholder return, the Board of Directors today resolved to pay an interim dividend of JPY500 per share, totaling JPY31.6 billion. In addition, at the Board meeting held in May of this year, we resolved to repurchase treasury shares up to JPY30 billion, of which JPY21.7 billion had been executed by the end of September and JPY25.6 billion by the end of October.

Moving on to the next page. Based on progress through Q2, we have revised our full-year earnings forecast. I will explain the outline of these revisions.

Net sales have been revised to JPY816 billion, a 3% increase YoY, and operating profit has been revised to JPY183 billion, a 3.8% decrease YoY. With respect to demand trends, the recovery in semiconductor-related demand in Japan, the United States, and South Korea is taking longer than expected and is now anticipated in the fiscal year ending March 2027. Automotive-related demand, led by EVs, continues to be solid in Greater China, but in other regions, it remains sluggish due to tariff impacts. In Europe, stagnation continues in the automotive-related sector in Germany.

We have also revised our assumed exchange rates based on recent developments.