The Consolidated results for the fiscal year ended March 2026 (April 2025 to March 2026) are as follows.

For the fiscal year ended March 2026, the first year of the Sixth Medium-Term Management Plan, despite an uncertain business environment, Net sales, operating profit, and ordinary profit were generally maintained at levels in line with the initial plan. However, net income fell below the plan due to the impact of non-recurring special losses. Please note that the forecast for Consolidated results for the fiscal year ending March 2027 is currently undetermined due to high uncertainty, including the impact of the situation in the Middle East. We will promptly disclose the forecast once a reasonable estimate becomes possible.

In the High-Performance Materials business, sales for telecommunications and industrial equipment remained firm, while sales for transportation equipment fell below the previous fiscal year due to sluggish market conditions in Europe and East Asia. In terms of profit, products for telecommunications equipment and products for electronic component manufacturing processes contributed to earnings, resulting in overall performance generally in line with the plan. Going forward, while closely monitoring market trends in the U.S. and Europe and fluctuations in raw material prices, we will actively expand our business by enhancing our lineup of environmentally conscious products and developing new markets.

In the Digital Twin business, in the construction field, SPLAT TWIN was highly evaluated for its reproducibility and quality, leading to progress in securing large-scale projects and new orders. Although BIM/CIM projects are trending downward, we are preparing our structure to provide higher value-added services in line with market trends. In the manufacturing field, we have secured new projects against the backdrop of rising DX demand, and consulting sales are also growing. Going forward, we aim to enhance our competitiveness through strengthened promotion and acceleration of manufacturing DX, and expand our business both domestically and internationally.

The Technology Division is working to enhance safe and stable operations and environmental measures, advancing inspections of exhaust gas treatment equipment, renewal of aging equipment, and conversion to LEDs for energy saving. At the same time, we are improving efficiency through consolidation of production processes and improvement activities, which also leads to higher yields and operational rates. In development, we are steadily promoting efficiency initiatives by strengthening collaboration with factories and examining new technologies. We will continue to strive to strengthen our technological foundation while balancing safety and productivity.

Our company was introduced as a company to watch in the Reiwa 7 (2025) "Nadeshiko Brands" initiative conducted by the Ministry of Economy, Trade and Industry, in recognition of our efforts to promote the success of diverse talent through work style reform and the utilization of digital technology. We are very pleased that the results of the reforms we have long pursued have been recognized. We will continue to advance the creation of an environment where each individual can maximize their abilities, while also widely deploying the expertise we have cultivated to society, leading to sustainable growth.

We would like to thank all KIMOTO fans for their continued understanding and support.