Overview for the First Half of the 84th fiscal year

During the first half of the consolidated fiscal year under review, the recovery in global business conditions moderated, with little indication of progress in some regions and an increasingly uncertain outlook due to the United States' trade policy.

Looking at the business environment surrounding the Group, in electronics applications, demand for silicon semiconductor and SiC semiconductor applications was low due to a market correction. Demand softened in mobility applications and general industries due to sluggish operations in the automotive industry and weaker corporate capital investment.

In this environment, the Group worked to ensure that it captured demand by responding to changes in the external environment, while also controlling its balance of products and applications. In addition, the Group strived to provide high-value-added solutions integrating manufacturing, sales, and development to address increasingly sophisticated customer needs and achieve the management targets of the Medium-term Management Plan. This included strengthening and developing high-value-added products that can keep pace with technological innovations and improving cost competitiveness through increased productivity.

As a result, in the first half of the consolidated fiscal year under review, net sales were 22,980 million yen (down 12.6% year on year). In terms of profits, operating profit was 3,840 million yen (down 33.9% year on year), ordinary profit was 3,789 million yen (down 45.8% year on year), and profit attributable to owners of parent of 2,681 million yen (down 48.0% year on year).

Future outlook

The outlook for business conditions in Japan and overseas is expected to remain unclear due to the United States' trade policy, etc. In the business environment surrounding the Group, the Company originally anticipated a recovery in the Si (silicon) semiconductor market, but it now appears that this recovery will take some time, while the current adjustment in the SiC (silicon-carbide) semiconductor market is expected to continue. Faced with this situation, the Company will respond robustly to changes in the market by focusing on pioneering new applications and further developing existing applications to control the balance of applications, as well as by curbing fixed costs.

Based on these conditions and its results for the six months ended June 30, 2025, we have revised its consolidated earnings forecast for the year ending December 31, 2025. As a result, we expect net sales of 48,000 million yen (a 9.6% year-on-year decrease), 7,500 million yen in operating profit (a 38.7% year-on-year decrease), 7,000 million yen in ordinary profit (a 48.1% year-on-year decrease), and 5,000 million yen in profit attributable to owners of parent (a 49.8% year-on-year decrease) .

Although this fiscal year presents difficult business conditions, we will continue to provide high value-added solutions in order to achieve our earning forecast and realize sustainable growth over the medium to long term.

We thank you, our shareholders, for your continued support.

September, 2025