The Consolidated performance for the second quarter (interim period) of the fiscal year ending March 2026 (April 2025 to March 2026) is as follows.

Despite the uncertain external environment, the Consolidated performance for the second quarter (interim period) of the fiscal year ending March 2026 showed that sales generally progressed as planned, and profits exceeded expectations.

In the high-performance materials business, demand for communications equipment and industrial equipment remained strong. On the other hand, the transportation equipment segment fell short of plan due to market downturn. For the second half of the year, we will strengthen proposals for environmentally conscious products through exhibition participation and expand the scope of demand worldwide.

In the digital twin business, achievements for the new service "SPLAT TWIN" and point cloud mapping projects using 3D data are steadily accumulating. We will continue to strengthen our technical capabilities to secure further new orders. Additionally, we are expanding our contribution to society by deploying knowledge of work style reform and manufacturing DX through lectures and hands-on support. On the other hand, progress on BIM/CIM-related 3D model data creation projects has not met expectations, but there is still room for development, and we will accelerate project creation through enhanced global sales efforts and webinar hosting.

In the technology division, we have completed the relocation of development equipment to the plant to increase the number of commercialized products and improve development productivity. At the same time, we are promoting workflow reforms to establish a new development system. Additionally, at the Ibaraki Plant, we have started utilizing a system to measure and visualize energy usage, leading to operational optimization, and we are strengthening energy-saving analysis. We will strive to reduce environmental impact while maximizing development output and accelerating the introduction of new products.

At KIMOTO Farm, we cultivate our "Minori no Hyakunen Mai" (Harvest of a Century Rice) entirely by hand from seedling cultivation without using any pesticides or chemical fertilizers. In August of this year, we obtained Organic JAS "Organic Agricultural Product" certification for some of our fields. We have successfully completed this year's harvest, and the taste value indicating deliciousness achieved a high level with an average of over 80 points across all fields. Adhering to the policy of balancing "food safety" and "harmony with the local environment," we will continue our activities to develop together with the local community.

In the 6th Medium-Term Management Plan announced in May 2025, we have set forth "Challenging New Possibilities" as our vision, aiming to contribute worldwide by transcending traditional frameworks and integrating chemistry, digital technologies, and the expertise we have cultivated to date. Achieving this vision requires the active engagement of our "human capital," which serves as the fundamental resource for realizing innovation. It is people who drive all challenges, including the acquisition of new business domains, the development of new products and services, and process reforms. We will continue to actively promote an environment where the growth story of our group is linked with the growth story of each employee, maximizing individual autonomy and enabling everyone, regardless of gender, to fully demonstrate their abilities.

We will continue to pursue sustainable growth and value creation for society by advancing reforms centered on environmental considerations, digital transformation (DX), productivity improvement, and our "people."
We kindly ask for the continued understanding and support of all KIMOTO fans.