Jun Ninomiya: This is Ninomiya, Corporate Officer and Managing Director. I would like to report on the financial results.
The financial results for the fiscal year ended March 2025 showed a year-on-year decline in sales and profits. The full-year forecasts were achieved by 94.1% of net sales, 89.9% of ordinary income, and 102% of net income.

This is a summary of our business results. Net sales decreased by 26,509 million yen year on year to 216,379 million yen, ordinary income decreased by 2,506 million yen year on year to 11,415 million yen, and ordinary profit margin was 5.3%.
Net income decreased by 1,112 million yen year on year to 8,874 million yen. As I explained at the beginning, net income was achieved in line with our forecasts.

It is an increase or decrease in sales by business unit. The CN business Business increased by 4,348 million yen, the PB business Business increased by 384 million yen, and the distribution business within the EC business Business decreased by 31,242 million yen.

This is the sales and profits by segment. In the CN Business, sales of networking, storage, and security-related products were strong, and demand for maintenance and monitoring services also increased. As a result, net sales increased 13.2% year-on-year to 37,327 million yen, segment profit increased 52% year-on-year to 5,266 million yen, and segment profit margin was 14.1%.
In the EC Business, net sales decreased by 14.7% year-on-year to 179,051 million yen, and segment profit decreased by 41.2% year-on-year to 6,149 million yen due to prolonged inventory adjustments in the supply chain, despite the expansion of customer commercial rights.

This is a breakdown of sales by segment. In the CN Business, sales increased in all items. Storage-related products for system integrators increased. Security-related products for enterprises and system integrators, with a focus on cloud services, were strong, while maintenance and monitoring services for telecommunications carriers, data centers, and cloud service providers grew.

This is about the EC Business. In the automotive industry, the expansion of commercial rights has led to an increase in the number of logic ICs, boards, and electronic components. On the other hand, sales for industrial equipment decreased due to a decline in demand due to the prolonged stagnation of the Chinese market and the shift to direct sales of some specific products. Sales for telecommunications equipment and consumer equipment were also sluggish.

This is the net sales of overseas consolidated subsidiaries. Sales of US dollar revenue was $339 million, down $16 million year over year. On the other hand, on a yen basis, sales increased by 392 million yen year-on-year. Sales decreased on a U.S. dollar basis, but increased on a yen basis due to the yen depreciation of approximately 8 yen.

The PB Business increased due to full-fledged deliveries of wafer inspection equipment. Design and manufacturing services for industrial equipment were sluggish.
At TED Nagasaki, sales for electric power equipment were strong, but sales for semiconductor manufacturing equipment slowed down and were sluggish.
As a result, net sales increased by 2.7% year-on-year to 14,636 million yen, and PB sales accounted for 8.2% of EC sales.

This is the balance sheet. Total assets were 156,841 million yen, down 5.7 billion yen from the end of the previous fiscal year. As for assets, there was a decrease in sales, and accounts receivable and inventories decreased. In terms of liabilities and net assets, purchase obligations decreased due to a decrease in purchases, and interest-bearing debt decreased due to a decrease in working capital.

This is the cash flow. Operating cash flow tends to be positive during declining sales. Financial cash flow was negative due to repayment of debts.

Orders received for the fourth quarter of the fiscal year ended March 2025 were 46.93 billion yen. In the CN Business, in addition to strong IT investment, orders for security products were strong. In the EC Business, the decline in long-term orders and the continued adjustment of customer inventories have continued. There are variations in the situation depending on the field.
That's all I have to say.

Atsushi Tokushige: I'm Tokushige, President and CEO. Thank you very much for taking time out of your busy schedules to attend our financial results briefing today. I will explain the medium-term management plan VISION2030 and the business forecast for the fiscal year ending March 2026.
First of all, I would like to report on the VISION2025, which has reached its final fiscal year ended March 2025. In VISION2025, we had set targets for net sales of 200.0 billion yen, plus or minus 10%, an ordinary profit margin of 5%, and an ROE of 15%.
As a result of these initiatives, we were able to achieve our numerical targets for net sales, ordinary profit margin, and ROE for the third consecutive year by the fiscal year ended March 2025. In the fiscal year ended March 2024, both net sales and ordinary income reached record highs.
We believe that the fact that the ordinary profit margin has reached the 5 percent level is the result of our efforts to achieve profit growth.

These are the achievements of each business. In the CN Business, we expanded our stock business by expanding our security related products and technical services. In the EC Business, we have expanded our customer base by incorporating new commercial rights. In addition, we have improved our IT infrastructure to improve operational efficiency and build a stable profit base.
In the PB Business, there were certain results in initiatives aimed at profit growth, such as the launch of the wafer inspection system business. However, we cannot necessarily say that we have realized or achieved our vision of “To become a manufacturer with technology trading company functions” and we believe that we need to continue our efforts with more focus and conviction to become a manufacturer.
Under the medium-term management plan VISION2030, which will begin this fiscal year, we will aim to further enhance our corporate value.

In the VISION2030, our mission is “To address social issues through leading-edge technology, primarily semiconductors and IT, and to contribute to the sustainable development of society by offering solutions to those issues that have value beyond expectations.”
With the perspective we have cultivated as a technology trading company, we will continue to confront social issues that emerge on an ongoing basis, and by providing solutions with value that exceeds the expectations of society (customers), we will promote the social implementation of cutting-edge technologies and contribute to the realization of a “super-smart society.”

VISION is “A company that solves latent social issues with the capabilities of a manufacturer and a technology trading company.” In the future, by 2030, it is expected that there will be many issues that involve all markets, such as the progress of AI, and it will be necessary to make full use of both the functions of a manufacturer and a technology trading company more than ever before.
We have updated our VISION in order to reaffirm to our stakeholders that the Group will pursue solutions to issues from both a manufacturer and a technology trading company perspective.

The first company-wide policy is to “Aim to solve latent social issues (customer issues) with the capability of being a manufacturer and technology trading company.” The second is to “Take actions that contribute to sustainable profit growth.”
We will promote social contribution and profit growth throughout the company.

I will explain the operational policies of each business and our efforts to accelerate profit growth. The management policy of the PB Business is shown in the slide. VISION2030 is a plan that focuses on profit growth, and the driving force behind this plan is the highly profitable PB Business. As part of our efforts to accelerate profit growth, we will work to expand our inspection system business and expand our customer base, as well as our design and manufacturing services business.

Regarding the expansion of inspection system business and customer base, we are targeting the semiconductor and panel manufacturing markets.
First, let me talk about our core business, semiconductor wafer inspection systems business. In this, we entered the semiconductor silicon wafer field through the acquisition of the business two years ago, and are currently strengthening our business. In the semiconductor compound wafer field, we will expand our customer base with a focus on silicon carbide, which is expected to grow.
In order to further strengthen our business, we will focus on the development of inspection equipment for the semiconductor advanced package market.
In the LCD panel inspection system business, we will continue to maintain the business of our existing customers, strengthen our competitiveness, and improve profitability. The inspection system business is a business that is expected to grow significantly, and through these initiatives, we will steadily expand our business.

I would like to talk about the CN Business. Based on the business management policy described in the slide, we will expand our solution areas and strengthen our service business as an initiative to accelerate profit growth.

In the CN Business, we provide innovative products and solutions, mainly overseas products, and meticulous services to support our customers' use of digital technology.
We believe that responding to rapid changes in technology and expanding solutions that capture the diverse needs of our customers will lead to the maximization of opportunities and the maximization of profits. In order to achieve VISION2030, we will continue to build optimal solutions to support DX by focusing on the five areas of security, networking, storage, cloud, and AI in collaboration with overseas bases.

In strengthening our service business, our goal is not to simply provide the latest solutions in a flow-based business, but to provide them in combination with services tailored to the customer's phase.
We believe that maximizing the use of solutions introduced through various technical services to increase satisfaction and usage is the means to earn the trust of our customers.
This will result in up-selling to offer higher value-added products and services, cross-selling to offer a wider range of commercial products together, and building renewal and ongoing relationships. We will strive to strengthen relationships and engagement with our customers.

In the EC Business, we will focus on growth fields such as industrial equipment, automotive equipment, cloud services, and OT security in accordance with our business operation policy, with the aim of expanding our customers and products.
In particular, we are focusing on customers in the industrial and automotive equipment fields, where Japanese companies are competitive in the global market. In addition, we will expand our solution business, in which products we handle are systematized and provided to customers.

Let me explain our target management indicators. Our basic policy continues to be “increase profits and revenues,” i.e., sustained profit growth where the rate of increase in profits exceeds the rate of increase in revenues. There is no change in the belief that expanding profits will support sustainable growth through “increased profits and revenues, ” which in turn will lead to shareholder returns.
As the management indicators targeted in VISION2030, we aim to achieve net sales of 300 billion yen to 350 billion yen, an ordinary profit margin of 8 percent or more, and an ROE of 20 percent or more. In addition, the business composition and the target ordinary profit margin for each business are shown in the slide.

In order to further enhance corporate value, there are three important issues in capital policy going forward: growth investment, shareholder returns, and financial soundness. We will invest in technology development, business expansion, internal and external DX, and human resource development, aiming for sustainable growth.
By increasing corporate value through profit growth, we will achieve long-term returns and return profits to shareholders in accordance with our performance. In addition, we will aim for ROE of 20% or more and strengthen our financial position to enhance our financial soundness. In VISION2030, we aim to achieve sustainable profit growth and enhance corporate value.

I would like to explain our earnings forecast for the fiscal year ending March 2026. First of all, as an overview, we expect a decrease in sales and profit for the fiscal year ending March 2026.
The EC and PB Businesses were expected to recover from the second half of the fiscal year ended March 2025, but adjustments will continue in the first half of the fiscal year ending March 2026, and we expect a recovery trend from the second half. The CN Business is expected to remain strong.
With regard to U.S. tariff measures, it is extremely difficult to quantitatively predict the outcome of the situation and its impact. We will continue to monitor currency fluctuations, interest rates, and inventory conditions.

This is a list of assumptions for the business plan.
The adjustment period is prolonged. Although there are signs of recovery in some areas, adjustments will continue in the first half of the fiscal year ending March 2026, and we believe that the transition to a recovery trend will begin in the second half. The main reason for this was the delay in optimizing inventory levels in the supply chain of the EC and PB Businesses.
While customers’ inventory levels are expected to gradually begin to right themselves in the second half of the year, the overall pace is expected to be moderate. In the industrial equipment market, we believe that the demand side of the market is on a recovery track, but inventory levels vary from customer to customer.
The market for automotive equipment is expected to remain sluggish in the first half of the current fiscal year and to start recovering in the second half, although high growth is expected in the long term due to the increasing use of electrical components and software in automobiles.
Although Chinese market conditions are bottoming out, we believe they will remain weak. In terms of commercial rights, we expect to acquire new customer commercial rights in the current fiscal year as well.
Given these circumstances, we expect a recovery in orders for the EC Business from the summer and a contribution to earnings from the second half of the year onward.
In the PB Business, we expect a recovery in both the design and manufacturing services and the inspection system business in the second half of the fiscal year.
In the CN Business, the security field is expected to remain strong against the backdrop of the progress of digitalization.
The exchange rate is expected to be in the range of 145 yen to 150 yen.

Based on the assumptions of the business plan, this is the earnings forecast for the current fiscal year. Net sales are expected to decrease 7.6% year-on-year to 200.0 billion yen, while the CN Business is expected to increase 1.8% year-on-year to 38.0 billion yen, and the EC Business (consolidated) is expected to decrease 9.5% year-on-year to 162.0 billion yen.
Ordinary income is expected to decrease by 12.4% year-on-year to 10.0 billion yen, and net income is expected to decrease by 21.1% year-on-year to 7.0 billion yen.

This is the increase or decrease in sales by business. The CN Business increased by 672 million yen, the EC Business distribution decreased by 16,015 million yen, and the PB Business decreased by 1,036 million yen.

In terms of dividends, we aim for long-term high returns through earnings growth. We provide shareholder returns based on business performance, and the dividend payout ratio is set at 40%.
For the fiscal year ended March 2025, we have increased the dividend amount at the end of the fiscal year by 2 yen from the previous forecast of 65 yen to 67 yen. Combined with the interim dividend of 52 yen, the annual dividend amount will be 119 yen. For the fiscal year ending March 2026, we plan to pay an interim dividend of 32 yen, a year-end dividend of 64 yen, and an annual dividend of 96 yen. The payout ratio is 40.4%.
That’s all for my presentation. Thank you very much.