Despite the impact of slowed investments, order backlogs contributed to achieving net sales exceeding ¥250 billion

 

Looking at the business environment for this consolidated fiscal year, the semiconductor industry is expected to see mid- to long-term demand growth driven by the spread of generative AI utilization, and new and expanded semiconductor factory plans are progressing worldwide in response to rising geopolitical risks. In the electronics industry, although power device investments are being adjusted short-term due to a slowdown in EV demand, technological innovations and increased production investments in various electronic devices, as well as domestic production investments in China, continue to perform steadily. In the flat panel display (FPD) industry, investments in large substrates OLED with continue. Meanwhile, in the industrial battery industry, although EV demand slowdown has had an impact, mass production investments aimed at miniaturization, increased capacity, and improved safety are being considered.

 

Under these circumstances, our Group’s consolidated results for FY2025/6 fell below the initial plan due to decreased orders for semiconductor and electronic device production equipment and display and energy-related production equipment, reflecting the slowdown in power device and battery investments. However, results were generally in line with the forecast announced at the third quarter of FY2025/6.

 

Although orders remained at ¥225.6 billion (down 12.6% year-on-year), net sales reached ¥251.2 billion (down 3.8%), maintaining a high level second only to the record high of the previous year since listing, supported by order backlogs from the previous year.

 

On the profit front, the sales composition ratio of highly profitable semiconductor and electronic device production equipment and components exceeded 50%, and the contribution of higher-margin projects resulted in a gross profit margin of 31.8%, the highest level since listing. Operating profit margin declined from 11.4% in the previous year to 10.6% due to decreased sales and increased R&D expenses for future growth. Consequently, operating profit was ¥26.5 billion (down 10.9% year-on-year), ordinary profit was ¥28.6 billion (down 4.0%), and net income attributable to owners of the parent was ¥16.7 billion (down 17.5%).

 

Meanwhile, placing importance on returning profits to shareholders and maintaining stable dividends, the year-end dividend for FY2025/6 was set at a record high of ¥164 per share as initially planned (an increase of ¥20  from the previous year).

We will accelerate the transformation of our business portfolio and enhance growth and profitability through a six-year "Value-Up Plan"

 

Our Group has revised the three-year mid-term management plan (FY2024/6 to FY2026/6) and formulated a new six-year medium- to long-term management plan, the "Value-Up Plan," covering up to FY2031/6, which started in FY2026/6.

 

The "Value-Up Plan" aims to accelerate the shift toward a business portfolio centered on semiconductors and electronics by optimizing management resources and enhancing growth and profitability. Over the past few years, we set five growth drivers (battery, logic, memory, various electronic devices, power devices) to strengthen orders and have achieved certain results in business expansion and profitability improvement. However, to win competition amid the rapid growth of local equipment manufacturers in China, maintaining technological superiority is essential, requiring further improvement in profit margins to continuously expand R&D investment. We recognize that extending the previous mid-term plan limits profit expansion and that fundamental reforms from a mid- to long-term perspective are necessary.

 

The growth strategy focuses on business reform and production reform as foundations, boldly concentrating management resources on the semiconductor and electronics fields, maximizing synergies among businesses, and creating new businesses. Through this, we aim to increase net sales by approximately ¥110 billion over six years and achieve the following targets in the final year of the plan (FY2031/6): net sales of ¥360 billion (with semiconductor and electronics-related business composition of 60% or more), operating profit of ¥79 billion (operating profit margin of 22%), and ROE of 16%.

 

The first step is "Business Reform." We will steadily promote the reduction or withdrawal of low-profit businesses, restructuring of production bases, and optimization of fixed costs over two years until FY2027/6. As a result, although business sales reduction and divestitures are expected to impact sales growth at the midpoint of the plan in FY2028/6, we anticipate profit improvement from reform effects and expansion of semiconductor and electronics-related businesses, targeting net sales of ¥260 billion, operating profit of ¥39 billion (operating profit margin of 15%), and ROE of 10%.

 

The other step is "Production Reform." Centered on semiconductor and electronic device production equipment, we will promote "Modular Design (MD)," which significantly shortens manufacturing lead times, streamlines production systems, and improves procurement and parts commonality, thereby maximizing profits. For equipment businesses subject to MD, we plan to improve operating profit margin by 12 points by FY2031/6 compared to FY2025/6.

 

Regarding R&D investment, we plan to invest ¥82 billion in R&D equipment and ¥88 billion in R&D expenses over six years, totaling ¥170 billion. To strengthen R&D for further growth, approximately 80% will be allocated to semiconductor and electronics fields, about 10% to semiconductor and electronics related fields, and about 10% to vacuum-related fields.

We expect to maintain high net sales and improve profits due to increased orders and shortened manufacturing lead times

 

In the first year of the "Value-Up Plan" (FY2026/6), considering continued semiconductor-related investments and recovery trends in power device investments, we expect orders of ¥250 billion (up 11.1% from FY2025/6). Net sales are expected to remain around ¥250 billion (down 0.5%) due to the effects of increased orders and shortened manufacturing lead times.

 

On the profit side, the shift to highly profitable product groups accompanying increased sales in semiconductor and electronics fields is expected to raise the gross profit margin to 33.0% and operating profit margin to 11.4%. Accordingly, operating profit is forecasted at ¥28.5 billion (up 7.5% from FY2025/6), ordinary profit at ¥28.5 billion (down 0.4%), and net income attributable to owners of the parent at ¥20 billion (up 19.9%).

 

Our Group views the direct impact of U.S. tariff policies as limited, but due to uncertainty in semiconductor-related policies, the above forecasts do not factor in tariff effects.

 

The year-end dividend for FY2026/6 is planned to continue at ¥164 per share. We will continue to aim for a performance-linked payout ratio of 35% or more, emphasizing profit returns to shareholders and aiming for long-term dividend increases and expanded return levels.

We will build a foundation to ensure sustainable high growth and high profitability through business reforms over the next two years

 

The "Value-Up Plan" is an ambitious challenge for our Group aiming to leap to a new growth stage. In the organizational change implemented on July 1, 2025, we established the "Growth & Development Division" to support achieving the "Value-Up Plan" goals and to formulate and execute global strategies and growth initiatives, including in Europe and the U.S.

 

By steadily executing "Business Reform" over the next two years, we will build a foundation to realize sustainable high growth and profitability and steadily advance toward a leap forward in six years.

 

We hope that you will continue to look forward to the further development of our Group’s business and support us over the long term.

September, 2025