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

The Consolidated performance for the third quarter of the fiscal year ending March 2026 resulted in a year-on-year decrease in both revenue and profit.

In the High-Performance Materials business, the telecommunications equipment segment was affected by inventory adjustments due to a reaction to demand that was pulled forward over tariff risk concerns, but it progressed within the expected range. The industrial equipment segment maintained planned levels, mainly for nameplate applications. On the other hand, the transportation equipment segment continues to be sluggish due to weak market conditions. Based on this business environment, we will strengthen our activities in new overseas markets and focus areas for medium- to long-term growth.

In the Digital Twin business, we are progressing with the transition from a business centered on traditional contract work to a business that creates new value by leveraging our own technology and expertise. While contract work such as BIM/CIM projects is on a declining trend, high-value-added projects such as the expanding adoption of the new product "SPLAT TWIN" utilizing new technology and DX consulting for the manufacturing industry are steadily bearing fruit. In overseas markets, we will use orders for point cloud mapping projects as a foothold to collaborate with overseas bases and advance the deployment of services that can contribute globally.

In the Technology Division, we are optimizing the production system from both equipment and operational aspects, including updating production infrastructure to reduce environmental impact and ensure stable operation, and consolidating production processes to improve productivity. Concurrently, in the development area, while promoting workflow reforms to build a new system, we are working on environmental improvements to maximize development output, such as considering the introduction of digital tools.

The rice produced in 2025 with organic JAS certification (during the conversion period) is, thanks to your support, steadily increasing its sales and is highly regarded as a premium rice alongside leading domestic brand rice at famous department stores in Tokyo.

Furthermore, to further strengthen our corporate foundation, we are advancing our IT/DX strategy and human resources strategy as key initiatives. Under the IT/DX strategy, we have introduced AI accessible to all employees and are maximizing its use in every aspect of daily operations to transform business processes and enhance productivity. As part of our human resource development efforts, we launched a training program in February 2025 aimed at cultivating executive talent and held a final presentation event in November as the culmination of the training. Diverse members of the KIMOTO Group participated in this program, transcending barriers of race, nationality, gender, educational background, and age. By utilizing AI, they even overcame the "language barrier" and were observed actively learning from one another. We will continue to value creating a workplace environment where each employee can grow in their own way and thrive.

While various changes are occurring on a global scale, we will steadily implement our Sixth Medium-Term Management Plan and contribute through services that benefit society.
We sincerely ask for your continued support to all those who cheer for KIMOTO.