Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepan cy between this translated document and the Japanese original, the original shall prevail. Consolidated Financial Results for the Nine Months Ended September 30, 2025 (Under Japanese GAAP) November 7, 2025 Company name: Nisshinbo Holdings Inc. Listing: Tokyo Stock Exchange Securities code: 3105 URL: https://www.nisshinbo.co.jp Representative: Yasuji Ishii President and Representative Director Inquiries: Shuji Tsukatani Director and Executive Managing Officer Telephone: +81-03) 5695-8833 Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: None Holding of financial results briefing: None (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the nine months ended September 30, 2025 (from January 1, 2025 to September 30, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 364,568 4.2 18,868 381.7 21,311 155.2 13,824 368.2 September 30, 2024 349,804 (12.1) 3,916 (63.6) 8,351 (46.5) 2,952 - (Note) Comprehensive income For the nine months ended September 30, 2025: ¥ 9,056 million [ 86.4 %] For the nine months ended September 30, 2024: ¥ 4,859 million [ - %] Basic earnings per share Diluted earnings per share Nine months ended Yen Yen September 30, 2025 88.44 - September 30, 2024 18.79 - (Note) The diluted earnings per share for the nine months ended September 30, 2025 and September 30, 2024 are not stated because there are no potential shares. (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2025 632,522 300,484 43.1 December 31, 2024 680,112 297,785 39.7 (Reference) Equity As of September 30, 2025: ¥ 272,309 million As of December 31, 2024: ¥ 269,788 million (Note) During the current third quarter cumulative consolidated accounting period, we have finalized the provisional accounting treatment related to business combinations, and the figures for the fiscal year end ed December 2024 reflect the finalized provisional accounting treatment. In addition, from the beginning of the current third quarter cumulative consolidated accounting period, we have applied “Accounting Standards for Income Taxes, Resident Taxes, and Business Taxes,” etc., and the figures for the fiscal year ended December 2024 reflect the retrospective application of these changes in accounting policies.
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2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended December 31, 2024 - 18.00 - 18.00 36.00 Fiscal year ending December 31, 2025 - 18.00 - Fiscal year ending December 31, 2025(Forecast) 18.00 36.00 (Note) Revision to the forecast for dividends announced most recently: None 3. Consolidated financial results forecast for the fiscal year ending December 31, 2025(from January 1, 2025 to December 31, 2025) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 506,000 2.3 19,700 18.8 21,600 (11.5) 11,000 7.0 70.38 (Note) Revision to the financial results forecast most recently announced: None * Notes: (1) Significant changes in the scope of consolidation during the period: None Newly included: - (Company name: ) Excluded: - (Company name: ) (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 169,328,839 shares As of December 31, 2024 169,246,174 shares (ii) Number of treasury shares at the end of the period As of September 30, 2025 13,129,868 shares As of December 31, 2024 12,079,169 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Nine months ended September 30, 2025 156,322,536 shares Nine months ended September 30, 2024 157,141,718 shares (Note) On May 20, 2025, we issued 82,665 new shares as restricted stock awards. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certificated public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters The consolidated financial results forecast contained in this document are based on information currently available to the Company. The Company does not make any guarantees regarding the achievement of these forecasts.
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 1 - Table of contents of attached materials 1. Qualitative information on consolidated quarterly financial results ------------------------------------------------------------------- 2 (1) Overview of operating results ---------------------------------------------------------------------------------------------------------- 2 (2) Explanation of consolidated financial results forecasts and other forward-looking information ------------------------------ 3 2. Quarterly consolidated financial statements and primary notes ------------------------------------------------------------------------ 4 (1) Quarterly consolidated balance sheets ------------------------------------------------------------------------------------------------ 4 (2) Quarterly consolidated statements of income and comprehensive income ------------------------------------------------------- 6 (3) Notes to quarterly consolidated financial statements -------------------------------------------------------------------------------- 8 (Notes on premise of a going concern) ------------------------------------------------------------------------------------------------- 8 (Notes on significant changes in shareholders' equity) ------------------------------------------------------------------------------- 8 (Change in accounting policy) ----------------------------------------------------------------------------------------------------------- 8 (Segment information) -------------------------------------------------------------------------------------------------------------------- 9 (Notes to statements of cash flows) ----------------------------------------------------------------------------------------------------- 11 (Business combinations) ------------------------------------------------------------------------------------------------------------------ 11
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 2 - 1. Qualitative information on consolidated quarterly financial results (1) Overview of operating results During the current third cumulative consolidated accounting period, Nisshinbo Group posted net sales of ¥364,568 million (up ¥14,764 million, or 4.2%, year on year), mainly due to higher sales in the Wireless and Communications business and the Real Estate business, despite a decrease in sales in the Micro Devices business. Operating profit was ¥18,868 million (up ¥14,951 million, or 381.7%, year on year) due to significant increased profit in the Wireless and Communications business and the Real Estate business, despite an increase in losses in the Micro Devices business. Ordinary profit was ¥21,311 million (up ¥12,960 million, or 155.2%, year on year). Profit attributable to owners of parent was ¥13,824 million (up ¥10,871 million, or 368.2% year on year). The results for the main business segments are as follows. Segment profit or segment loss is based on operating profit or operating loss. (Wireless and Communications business) The Wireless and Communications business consists of the Japan Radio Group and the KOKUSAI DENKI Electric Group. First, within the Japan Radio Group, the Solutions and Specialized Equipment business saw increased sales and improved profitability. This was driven by increased orders for prefectural disaster prevention systems due to renewal demand, as well as increased orders for equipment and maintenance materials for the Ministry of Defense, supported by the basic policy of the Defense Capability Development Plan based on national strategy. The Marine Systems business also saw increased sales and profits, driven by strong orders for equipment for new merchant ships, as well as for retrofitting existing merchant ships an d aftermarket services such as maintenance. The Mobility business experienced decreased sales and worsened profitability. This was due to reduced orders for repeaters (mobile phone relay equipment) affected by specification changes and project delays, coupled with weak performance in mobile locators for industrial machinery. Next, within the KOKUSAI DENKI Electric Group, increased sales and profits were achieved due to higher orders driven by customer renewal demand in businesses such as disaster prevention administrative radio systems, fire department radios, radios for the Defense Equipment Agency, and optical transmission equipment (M ulti-drop Optical Feeder, MOF) (a system that expands communication coverage to areas within buildings where radio waves are difficult to reach, establishing a communication environment where mobile phones can be used), as well as increased orders for high-performance portable radios for overseas markets. As a result, the Wireless and Communications business posted net sales of ¥ 178,352 million (up 6. 5% year on year) and segment profit of ¥11,646 million (up 128.6% year on year). (Micro Devices business) Sales of consumer equipment/devices remained at the same level as the previous year due to orders for smartphones and amusement-related products. Sales of industrial equipment also remained at the same level as the previous year due to orders for domestic office automation equipment, but orders for automotive industry products declined due to sluggish demand in the EV market and inventory adjustments by customers in the sensor-related business. As a result, the Electronic Devices business saw a decline in sales and an increase in losses. The Microwave business saw a decline in both revenue and profit, primarily due to sluggish shipments of maintenance parts for electron tubes caused by difficulties in procuring components under rare earth regulations. As a result, the Micro Devices business posted net sales of ¥ 44,987 million (down 4.3% year on year) and a segment loss of ¥5,893 million (a loss expansion of ¥1,024 million year on year). (Material) ・Automobile Brakes The Japanese base saw an increase in sales and profit due to the stabilization of production cuts caused by issues such as car manufacturer certification irregularities and the recovery of orders. The US base also saw strong orders for Japanese automakers focusing on hybrid vehicles, resulting in increased sales and profit. Korean base saw a decrease
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 3 - in sales but reduced losses through profitability improvement activities. Sales and profits at the Thailand base were on par with the same period last year. As a result, the Automobile Brakes business posted net sales of ¥ 42,650 million (down 1.5% year on year) and segment profit of ¥2,706 million (up 39.3% year on year). ・Precision Instruments The Precision Components Business achieved sales and profits comparable to the same period last year, despite reduced orders for automotive EBS components at the China facility, due to increased shipments from the India facility and other factors. Within the Molded Products Business, sales of air conditioning-related products were comparable to the same period last year, but profits increased due to cost reductions and other measures. Sales and profits for automotive industry products and medical -related pr oducts increased due to strong orders combined with cost reductions. As a result, the Precision Instruments business posted net sales of ¥ 40,584 million (up 2.9% year on year) and segment profit of ¥1,936 million (up 145.5% year on year). ・Chemicals Sales and income in the rigid urethane business decreased due to lower orders for liquid products and rigid blocks. Sales of carbon separators for fuel cells declined and losses widened due to a decrease in orders caused by stagnation in the overall hydrogen market. In Specialty Chemicals, sales and profit increased due to higher orders for water-based resins. Research and development expenses in the Chemicals business increased due to the promotion of commercialization. As a result, the Chemicals business posted net sales of ¥7,214 million (down 12.0% year on year) and a segment loss of ¥44 million (a deterioration of ¥527 million year on year). ・Textiles The shirt business, including Tokyo Shirt saw a decrease in sales and an expansion of losses due to reduced orders for Apollocot shirts (Super shape stability processing) and dress shirt materials. The Uniforms business saw increased sales and reduced losses due to factors such as higher orders for custom -made corporate uniforms. The Development Materials business also experienced increased sales and reduced losses, driven by factors including rush orders associated with the discontinuation of in-house production of nonwoven products. As a result, the Textiles business posted net sales of ¥24,312 million (down 11.4% year on year) and a segment loss of ¥140 million (a loss expansion of ¥46 million year on year). (Real Estate) The Real Estate business achieved significant increases in both revenue and profit through the sale of units at the large-scale commercial facility Ario Nishiarai (Adachi Ward, Tokyo), condominium sales in Minato Ward, Tokyo, and residential land sales in Okazaki City, Aichi Prefecture. As a result, the Real Estate business posted net sales of ¥ 16,989 million (up 107.6 % year on year) and segment profit of ¥12,249 million (up 124.0% year on year). (2) Explanation of consolidated financial results forecasts and other forward-looking information There are no changes to the consolidated earnings forecast for the fiscal year ending December 2025, which was announced on August 6, 2025.
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 4 - 2. Quarterly consolidated financial statements and primary notes (1) Quarterly consolidated balance sheet (Millions of yen) As of December 31, 2024 As of September 30, 2025 Assets Current assets Cash and deposits 50,411 45,414 Notes and accounts receivable - trade, and contract assets 129,992 109,915 Electronically recorded monetary claims - operating 16,140 13,555 Merchandise and finished goods 53,277 54,632 Work in process 64,181 69,429 Raw materials and supplies 45,369 43,446 Other 12,846 11,194 Allowance for doubtful accounts (1,102) (1,184) Total current assets 371,117 346,403 Non-current assets Property, plant and equipment Buildings and structures, net 61,374 61,543 Machinery, equipment and vehicles, net 49,375 44,486 Land 39,351 38,311 Other, net 28,389 21,672 Total property, plant and equipment 178,491 166,014 Intangible assets Goodwill 1,085 767 Other 12,280 10,397 Total intangible assets 13,366 11,165 Investments and other assets Investment securities 69,917 69,047 Other 47,578 40,240 Allowance for doubtful accounts (359) (347) Total investments and other assets 117,137 108,939 Total non-current assets 308,994 286,119 Total assets 680,112 632,522
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 5 - (Millions of yen) As of December 31, 2024 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 38,274 39,147 Electronically recorded obligations - operating 22,443 18,316 Short-term borrowings 47,311 16,742 Commercial papers 30,000 21,000 Current portion of long-term borrowings 9,714 12,956 Income taxes payable 2,736 4,096 Provision for bonuses 3,301 7,077 Other provisions 2,890 2,251 Other 42,210 40,382 Total current liabilities 198,881 161,970 Non-current liabilities Long-term borrowings 130,160 120,007 Provisions 85 101 Retirement benefit liability 38,168 36,338 Asset retirement obligations 808 806 Other 14,223 12,813 Total non-current liabilities 183,445 170,067 Total liabilities 382,327 332,038 Net assets Shareholders' equity Share capital 27,807 27,841 Capital surplus 18,948 18,982 Retained earnings 176,167 184,668 Treasury shares (13,237) (14,176) Total shareholders' equity 209,685 217,314 Accumulated other comprehensive income Valuation difference on available-for-sale securities 25,436 23,891 Deferred gains or losses on hedges 31 4 Foreign currency translation adjustment 28,145 24,513 Remeasurements of defined benefit plans 6,488 6,584 Total accumulated other comprehensive income 60,103 54,994 Non-controlling interests 27,996 28,175 Total net assets 297,785 300,484 Total liabilities and net assets 680,112 632,522
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 6 - (2) Quarterly consolidated statements of income and comprehensive income Quarterly consolidated statement of income (Millions of yen) For the nine months ended September 30, 2024 For the nine months ended September 30, 2025 Net sales 349,804 364,568 Cost of sales 277,148 277,366 Gross profit 72,656 87,202 Selling, general and administrative expenses 68,739 68,334 Operating profit 3,916 18,868 Non-operating income Interest income 910 745 Dividend income 919 1,015 Share of profit of entities accounted for using equity method 2,827 4,617 Foreign exchange gains 116 - Miscellaneous income 2,268 970 Total non-operating income 7,041 7,348 Non-operating expenses Interest expenses 1,674 2,173 Foreign exchange losses - 1,309 Miscellaneous losses 932 1,421 Total non-operating expenses 2,607 4,904 Ordinary profit 8,351 21,311 Extraordinary income Gain on sale of non-current assets 348 450 Gain on sale of investment securities 961 3,652 Gain on sale of shares of subsidiaries and associates - 941 Subsidy income 174 - Gain on reversal of share acquisition rights 38 - Total extraordinary income 1,523 5,044 Extraordinary losses Loss on sale of non-current assets 45 42 Loss on abandonment of non-current assets 46 302 Impairment losses 71 4,314 Loss on sale of investment securities 0 - Loss on valuation of investment securities - 838 Loss on liquidation of business 636 173 Business structure improvement expenses of subsidiaries 350 957 Total extraordinary losses 1,150 6,629 Profit before income taxes 8,724 19,726 Income taxes - current 2,999 5,740 Income taxes - deferred 2,189 (695) Total income taxes 5,189 5,044 Profit 3,534 14,682 Profit attributable to non-controlling interests 581 857 Profit attributable to owners of parent 2,952 13,824
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 7 - Quarterly consolidated statement of comprehensive income (Millions of yen) For the nine months ended September 30, 2024 For the nine months ended September 30, 2025 Profit 3,534 14,682 Other comprehensive income Valuation difference on available-for-sale securities 160 (1,541) Deferred gains or losses on hedges (8) (27) Foreign currency translation adjustment 1,443 (3,409) Remeasurements of defined benefit plans, net of tax (608) 84 Share of other comprehensive income of entities accounted for using equity method 338 (732) Total other comprehensive income 1,324 (5,625) Comprehensive income 4,859 9,056 Comprehensive income attributable to Comprehensive income attributable to owners of parent 4,203 8,716 Comprehensive income attributable to non-controlling interests 655 340
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 8 - (3) Notes to quarterly consolidated financial statements (Notes on premise of a going concern) There are no applicable items. (Notes on significant changes in shareholders' equity) (Acquisition of treasury stock) Based on a resolution of the Board of Directors held on February 12, 2025, the Company acquired 1,050,000 shares of treasury stock during the current third cumulative consolidated accounting period. As a result, including the increase due to the repurchase of fractional shares and decreases from sales , treasury stock increased by ¥ 939 million during the current third cumulative consolidated accounting period. (Change in accounting policy) (Application of Accounting Standards for Corporate Income Tax, Resident Tax, Business Tax, etc.) “Accounting Standards for Corporate Income Tax, Resident Tax, and Business Tax, etc.” (Corporate Accounting Standards No. 27, October 28, 2022; hereinafter referred to as the ‘2022 Revised Accounting Standards’) have been applied from the beginning of the first quarter consolidated accounting period. Regarding amendments to the classification of corporate income tax and other taxes (taxation of other comprehensive income), the transitional treatment specified in the proviso of Article 20 -3 of the 2022 Revised Accounting Standards and the transitional treatment specified in the proviso of Article 65 -2(2) of the “Guidance on the Application of Accounting Standards for Tax Effects” (Corporate Accounting Standards Application Guidance No. 28, October 28, 2022) (hereinafter referred to as the “2022 Revised A pplication Guidelines”) shall apply. Hereinafter referred to as the “2022 Revised Application Guidelines.”) Section 65 -2(2) proviso. This will have no impact on the quarterly consolidated financial statements. In addition, regarding revisions related to the treatment in consolidated financial statements of deferred tax gains or losses arising from the sale of subsidiaries' shares between consolidated companies, we have applied the 2022 amendment application guidelines from the beginning of the first quarter consolidated accounting period. The change in accounting policy has been applied retrospectively, and the interim consolidated financial statements and consolidated financial statements for the previous third cumulative period and the previous fiscal year have been restated accordingly. As a result, compared to before the retroactive application, other non-current liabilities in the consolidated balance sheet for the previous consolidated fiscal year decreased by ¥335 million. In addition, as the cumulative effect amount was reflected in net assets at the beginning of the previous consolidated fiscal year, retained earnings at the beginning of the previous period increased by ¥335 million. (Application of Guidelines on Accounting Treatment and Disclosure of Corporate Taxes, etc., Related to the Global Minimum Tax Regime) We have applied the “Guidelines on Accounting Treatment and Disclosure of Corporate Taxes, etc., Related to the Global Minimum Tax Regime” (Practical Response Report No. 46, March 22, 2024) from the beginning of the first quarter consolidated accounting period. Note that, due to the application of Item 7 of the aforementioned Practical Response Report, corporate taxes, etc., related to the Global Minimum Tax Regime have not been recognized in the consolidated financial statements for the current third cumulative consolidated accounting period.
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 9 - (Segment information) I For the nine months ended September 30, 2024 (from January 1, 2024 through September 30, 2024) 1. Information on net sales and profit or loss by reportable segments (Millions of yen) Reportable Segment Others (Note) Total Wireless and Communicat ions Micro device Automobile Brakes Precision Instruments Chemicals Textiles Real Estate Total Net sales Net sales to external customers 167,442 46,997 43,320 39,445 8,198 27,445 8,182 341,031 8,772 349,804 Intersegment net sales and transfers 509 691 5 380 210 36 1,064 2,898 1,971 4,869 Total 167,952 47,688 43,325 39,825 8,408 27,481 9,246 343,930 10,744 354,674 Segment profit (loss) 5,095 (4,869) 1,942 788 482 (94) 5,467 8,812 289 9,101 (Note) "Others" includes trading company functions of food products, industrial materials, etc., which are not included in the reportable segments. 2. Difference between the total amount of profit or loss of the reportable segments and the amount recorded in the quarterly consolidated statements of income, and main details of such difference (Matters related to difference adjustment) (Millions of yen) Profit Amounts Total of reportable segments 8,812 Profit in the "Other" category 289 Elimination of intersegment transactions 60 Company-wide expenses (Note) (5,244) Operating profit in the quarterly consolidated statements of income 3,916 (Note) Company-wide expenses mainly consist of group administrative expenses, depreciation and amortization, and research and development expenses for basic technology that do not belong to the reportable segments.
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 10 - II For the nine months ended September 30, 2025 (from January 1, 2025 through September 30, 2025) 1. Information on net sales and profit or loss by reportable segment (Millions of yen) Reportable Segment Others (Note) Total Wireless and Communicat ions Micro device Automobile Brakes Precision Instruments Chemicals Textiles Real Estate Total Net sales Net sales to external customers 178,352 44,987 42,650 40,584 7,214 24,312 16,989 355,091 9,477 364,568 Intersegment net sales or transfers 263 468 10 127 309 35 1,118 2,332 1,195 3,527 Total 178,615 45,456 42,660 40,711 7,523 24,348 18,108 357,423 10,672 368,096 Segment profit (loss) 11,646 (5,893) 2,706 1,936 (44) (140) 12,249 22,459 259 22,719 (Note) "Others" includes trading company functions of food products, industrial materials, etc., which are not included in the reportable segments. 2. Difference between the total amount of profit or loss of the reportable segments and the amount recorded in the quarterly consolidated statements of income, and main details of such difference (Matters related to difference adjustment) (Millions of yen) Profit Amounts Total of reportable segments 22,459 Profit in the "Other" category 259 Elimination of intersegment transactions 54 Company-wide expenses (Note) (3,905) Operating profit in the quarterly consolidated statements of income 18,868 (Note) Company-wide expenses mainly consist of group administrative expenses, depreciation and amortization, and research and development expenses for basic technology that do not belong to the reportable segments. 3. Information on impairment losses on fixed assets or goodwill, etc. by reportable segment (Significant impairment loss on fixed assets) (Chemicals) The book value of assets related to the manufacture of carbon separators for fuel cells of Nisshinbo Chemical Inc. was reduced to the recoverable amount due to the deterioration of the market environment, which made it impossible to expect the cash flows that had been initially assumed. The resulting decrease of ¥4,150 million was recorded as an extraordinary loss. The recoverable amount was determined based on the fair value, and since it is uncertain whether future cash flows will be positive, the amount has been reduced to the carrying amount.
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Nine Months Ended September 30, 2025 - 11 - (Notes to statements of cash flows) Quarterly consolidated statements of cash flows have not been prepared for the nine months ended September 30, 20 25. Depreciation and amortization (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the nine months are as follows and amortization of goodwill for the nine month are as follows. (Millions of yen) For the nine months ended September 30, 2024 For the nine months ended September 30, 2025 Depreciation and amortization 19,388 19,036 Amortization of goodwill 311 352 (Business combinations) (Determination of provisional accounting treatment for business combinations) Regarding the business combination with ARGONICS GMBH and its subsidiary ARGONA V GMBH acquired on November 28, 2024, we had previously applied provisional accounting treatment in the prior fiscal year. However, this treatment has been finalized in the first quarter consolidated accounting period. As a result of the finalization of this provisional accounting treatment, the comparative information included in the consolidated financial statements for the third cumulative period reflects significant revisions to the initial allocation of the acquisition cost. Accordingly, the consolidated balance sheet as of the end of the previous fiscal year shows a decrease of ¥501 million in goodwill, an increase of ¥656 million in other intangible assets, and an increase of ¥155 million in other non-current liabilities. Additionally, as a result of the finalization of this accounting treatment, the amount of goodwill for ARGONICS GMBH, which was provisionally calculated as ¥1,031 million as of the end of the previous fiscal year, has been revised to ¥530 million.