Business Performance Summary

Revenue of the Company and the Group for the first three months of the fiscal year ending March 31, 2027 increased from the same period a year earlier due to an increase in sales in the domestic dealer-installed option business in the Mobility & Telematics Services (M&T) Sector and strong sales of the Entertainment Business in the Entertainment Solutions (ES) Sector, as well as the yen's depreciation.

However, core operating income decreased from the same period a year earlier, despite the revenue increase. This was due to a surge in memory prices beyond the levels anticipated at the beginning of the fiscal year, and the lingering impact of the U.S. federal government shutdown on the Communications Systems Business in the Safety & Security (S&S) Sector, as well as the Group's increased fixed costs, such as personnel costs.

As a result of the decrease in core operating income, profits at each level from operating profit to profit attributable to owners of the parent also decreased from the same period a year earlier.

Although the Group has received a portion of refunds related to the U.S. IEEPA tariffs, it did not recognize them as revenue in the first three months of the fiscal year ending March 31, 2027, as the details are currently under review.

*1 Core operating income does not include nonrecurring items that mainly occur temporarily, such as other income included in operating income, other expenses, and foreign exchange losses (gains).

*2 Profit (loss) before tax + Interest expense + Depreciation expense + Impairment loss.

S&S: The S&S segment recorded higher revenue but lower profit year on year. In the Communications Systems Business, sales to the enterprise market recovered as component supply shortages normalized, and the weaker yen had a positive impact. However, sales of professional radios for the public safety market declined, mainly due to the impact of the U.S. government shutdown and other factors.

M&T: The M&T segment recorded higher revenue but lower profit year on year. In the OEM Business, sales in the domestic aftermarket business were strong, supported by the successful launch of new products introduced at the end of the previous fiscal year, and the weaker yen also contributed positively. However, profits were adversely affected by a sharper-than-expected increase in component prices, including memory devices, as well as the impact of sluggish market conditions in China on ASK*.

ES: The ES segment recorded higher revenue and higher profit year on year. In the Media Business, sales of headphones and earphones recovered as a result of measures taken in response to U.S. tariff policies. However, projector sales declined, resulting in lower revenue for the business. On the other hand, strong sales of content in the Entertainment Business contributed to the segment's growth.

* ASK Industries, S.p.A.

Equity attributable to owners of the parent increased by approximately 1.8 billion yen compared with the previous fiscal year-end, to 145.6 billion yen, despite dividend payments, mainly due to increases in retained earnings and other components of equity.

Net cash increased by approximately 5.4 billion yen compared with the previous fiscal year-end, to positive 2.5 billion yen, mainly due to an improvement in operating cash flow.

Operating cash flow increased year on year despite lower core operating income, primarily due to U.S. tariff refunds and an increase in other current liabilities.

Investing cash flow saw a decrease in outflows year on year due to lower investments, despite a decline in proceeds from the sale of fixed assets.

Financing cash flow saw an increase in outflows year on year, as interest-bearing debt repayment progressed.