We would like to express our appreciation for your continued support and patronage.

■ Overview of the Interim Period

During the six months ended September 30, 2025, the global economy faced instability due to the implementation of wide-ranging, extreme tariff policies by the United States, along with countermeasures by China.

The Japanese economy saw solid capital investment supported by stable corporate earnings, with industrial production showing signs of recovery in some sectors.

Under such circumstances, demand from the factory automation market, including ICT equipment, robots, and semiconductor manufacturing equipment, which is our Group’s main target market, was in the process of recovering. However, the AI-related market remained robust, and overall order backlog increased.

■ 9th Mid-term Management Plan and Current Initiatives

The SANYO DENKI Group is currently in the final year of its five-year 9th Mid-term Management Plan. Started in April 2021 under the theme of “Break the Shell,” this plan has driven the implementation of various initiatives across the entire Group.

During the period of the plan, we have leveraged our strengths in performance, quality, reliability, and customization to expand into new regions and industries, develop groundbreaking new products, and create new businesses. We have also implemented improvements in operational quality and initiatives related to ESG and SDGs.

This fiscal year, we will establish a factory and a representative office in Vietnam as part of our expansion into new regions. Going forward, markets for high-performance servers, communications equipment, semiconductor manufacturing equipment, and robots will continue to expand even further. Since our products are broadly applied in these markets, we plan to enhance production capacity in anticipation of growing demand and establish a system capable of responding swiftly to all kinds of demand.

We look forward to your continued support.