Business Performance Summary

Revenue of the Company and its consolidated subsidiaries for the fiscal year ended March 31, 2026 decreased from the same period a year earlier due to a significant impact from a decrease in production and sales caused by insufficient supply of components mainly in enterprise markets of the Communications Systems Business of the Safety & Security Sector, as well as the impact of the U.S. tariff measures in the Mobility & Telematics Services Sector and the Media Business of the Entertainment Solutions Sector.

Due to the impact of revenue decrease, the line-item profits of core operating income through to the profit attributable to owners of the parent also decreased from the same period a year earlier.

*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.

M&T: Despite the impact of U.S. tariff measures on the Aftermarket Business and the slowdown in the Chinese economy on JVCKENWOOD Hong Kong Holdings (JKHL) in the OEM Business, the overall sector saw a YOY decline in revenue but an increase in core operating income, supported by strong domestic dealer-installed option sales, aftermarket price revisions, and fixed-cost reductions.

S&S: Revenue and core operating income of the sector decreased YoY, affected by lost sales opportunities for the enterprise market in H2 and a delay in budget execution for the public safety market due to the U.S. government shutdown, despite the resolution of component supply shortages in the Communications Systems Business after Q2.

ES:Revenue decreased but core operating income of the sector increased YoY, mainly reflecting strong content sales in the Entertainment Business, despite the negative impact of the U.S. tariff measures in the Media Business.

• M&T: Mobility & Telematics Services Sector
• S&S: Safety & Security Sector
• ES: Entertainment Solutions Sector

Equity attributable to owners of the parent increased by approximately 18.7 billion yen compared with the previous fiscal year-end, to 143.8 billion yen, despite dividend payments and share repurchases, mainly due to an increase in retained earnings and other components of equity.

Net cash decreased by approximately 1.1 billion yen compared with the previous fiscal year-end, to negative 2.9 billion yen, mainly due to cash outflows related to share repurchases.

Operating cash flow increased year on year, as the decrease in working capital more than offset the decline in operating profit.

Investing cash flow decreased year on year, due to a decrease in proceeds from the sale of fixed assets, despite lower investment.

Financing cash flow saw a significantly smaller outflow year on year, as proceeds from the issuance of convertible bonds with share acquisition rights more than offset the increase in share repurchases.