Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. October 30, 2026 Consolidated Financial Results for the Six Months (First Half) Ended September 30, 2026 (Under IFRS) Company name: JVCKENWOOD Corporation Listing: Prime Market of the Tokyo Stock Exchange Securities code: 6632 URL: https://www.jvckenwood.com/en.html Representative: EGUCHI Shoichiro, Representative Director of the Board, Chairman and CEO Inquiries: MIYAMOTO Masatoshi, Representative Director of the Board, Executive Vice President, CFO Telephone: +81-45-444-5232 Scheduled date to file semi-annual securities report: November 11, 2026 Scheduled date to commence dividend payments: December 1, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for analysts and institutional investors) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the six months ended September 30, 2026 (from April 1, 2026 to September 30, 2026) (1) Consolidated Operating Results (cumulative) (Percentages indicate year-on-year changes.) Revenue Core operating income* Operating profit Profit before tax Six months ended Million yen % Million yen % Million yen % Million yen % September 30, 2026 183,778 8.5 12,265 47.4 11,488 19.2 11,955 16.2 September 30, 2025 169,321 (4.1) 8,319 (36.1) 9,633 (28.9) 10,292 (28.9) * Core operating income is calculated by deducting cost of sales and selling, general and administrative expenses from revenue, and does not include other income, other expenses, and foreign exchange gains and losses, which are primarily due to one-time factors. Profit attributable to owners of parent Total comprehensive income Basic earnings per share Diluted earnings per share Six months ended Million yen % Million yen % Yen Yen September 30, 2026 8,213 9.5 5,815 (44.7) 58.29 53.30 September 30, 2025 7,500 (32.4) 10,514 89.7 50.97 50.84
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(2) Consolidated Financial Position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets As of Million yen Million yen Million yen % September 30, 2026 344,935 151,260 145,354 42.1 March 31, 2026 347,605 149,698 143,834 41.4 2. Dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 - 6.00 - 12.00 18.00 Fiscal year ending March 31, 2027 - 10.00 Fiscal year ending March 31, 2027 (Forecast) - 10.00 20.00 Note: Revisions to the most recently announced dividend forecast: None 3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026 – March 31, 2027) (% indicate year-on-year changes) Revenue Core operating income Operating profit Profit before tax Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Million yen % Yen Full year 376,000 5.4 22,300 6.8 19,500 (5.1) 19,700 (9.1) 14,700 (12.4) 105.24 Note: Revisions to recently announced earnings forecasts: Yes
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (3) Number of issued shares (ordinary shares) (i) Total number of issued shares at the end of the period (including treasury stock) As of September 30, 2026 161,564,801 shares As of March 31, 2026 161,564,801 shares (ii) Number of treasury stock at the end of the period As of September 30, 2026 22,798,507 shares As of March 31, 2026 20,232,589 shares (iii) Average number of shares outstanding during the period Six months ended September 30, 2026 140,908,977 shares Six months ended September 30, 2025 147,146,050 shares * JVCKENWOOD Corporation’s shares owned by the trust relating to the share-based payment plan are included in the number of treasury stock. * Semi-annual financial results reports are not subject to review by the certified public accountants or an audit firm. * A Cautionary Note on Forward-Looking Statements This report contains forward-looking statements, including statements regarding the future performance of JVCKENWOOD Corporation (the “Company”). These statements are based on information currently available to the Company and certain assumptions that the Company deems reasonable. They are not intended as guarantees that such future performance will be achieved. Actual results may differ materially from those expressed or implied by these forward-looking statements due to various factors. For the assumptions underlying the earnings forecasts and cautionary notes regarding their use, please refer to “1. Overview of Business Performance, (3) Future Forecast Information, including Consolidated Earnings Forecast” in the accompanying materials. Access to Supplementary Financial Materials and Earnings Presentations The Company plans to hold an online earnings results presentation for analysts and institutional investors on Monday, November 2, 2026. The presentation materials to be used on that day will be available for download from the Company's website on Friday, October 30, 2026. * The following abbreviations are used in this document: S&S: Safety & Security Sector M&T: Mobility & Telematics Services Sector ES: Entertainment Solutions Sector
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1 (Appendix) Table of Contents for Appendix 1．Overview of Business Performance ............................................................................................................................. 2 (1) Operating Results ...................................................................................................................................................... 2 (2) Financial Position ...................................................................................................................................................... 5 (3) Future Forecast Information and Consolidated Earnings Forecast........................................................................ 6 2．Consolidated Financial Statements .............................................................................................................................. 7 (1) Consolidated Statement of Financial Position ......................................................................................................... 7 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ................................ 9 (3) Consolidated Statement of Changes in Equity ....................................................................................................... 11 (4) Consolidated Statement of Cash Flows .................................................................................................................. 13 (5) Notes to Consolidated Financial Statements ......................................................................................................... 15 (Assumption for Going Concern) ............................................................................................................................. 15 (Segment Information) ............................................................................................................................................ 15
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- 2 - 1. Overview of Business Performance (1) Operating Results Overview of the First Half of the Fiscal Year Ending March 31, 2027 Revenue of JVCKENWOOD Corporation (the “Company”) and its consolidated subsidiaries (the “Group”) for the first half 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, along with the depreciation of the yen. Core operating income increased from the same period a year earlier. Although it was affected by lower revenue in the Communications Systems Business in the Safety & Security (S&S) Sector and a surge in the prices of components such as memory in the M&T Sector beyond the levels anticipated at the beginning of the fiscal year, higher revenue in the Domestic Dealer-Installed Option Business and the Entertainment Business, as well as the recognition of the U.S. IEEPA (International Emergency Economic Powers Act) tariff refunds received during the first half as a reduction in cost of sales, contributed to the increase. As a result of the increase in core operating income, profits at each level , from operating profit to profit attributable to owners of the parent, also increased from the same period a year earlier. A summary of consolidated operating results for the first half of the fiscal year ending March 31, 2027 is as follows. (Million yen) H1 of FYE3/’26 H1 of FYE3/’27 Year-on-year change Amount Percentage Revenue 169,321 183,778 +14,456 +8.5% Core operating income* 8,319 12,265 +3,946 +47.4% Operating profit 9,633 11,488 +1,854 +19.2% Profit before income taxes 10,292 11,955 +1,663 +16.2% Profit attributable to owners of the parent 7,500 8,213 +712 +9.5% * Core operating income is calculated by deducting cost of sales and selling, general and administrative expenses from revenue, and does not include other income, other expenses, and foreign exchange gains and losses, which are primarily due to one - time factors. The evaluation of business sector performance is explained using core operating income. The exchange rates used for financial reporting purposes for the first half of the fiscal year ending March 31, 2027 are as follows. Q1 Q2 H1 (reference) FYE3/’27 U.S. dollar Euro Approx. 160 yen Approx. 185 yen Approx. 159 yen Approx. 183 yen Approx. 159 yen Approx. 184 yen FYE3/’26 (for reference) U.S. dollar Euro Approx. 145 yen Approx. 164 yen Approx. 147 yen Approx. 172 yen Approx. 146 yen Approx. 168 yen Revenue Revenue of the Group for the first half of the fiscal year ending March 31, 2027 increased approximately 14,500 million yen, or 8.5%, from the same period a year earlier to 183,778 million yen. This was mainly due to an increase in sales in the Domestic Dealer -Installed Option Business in the M&T Sector and strong sales in the Entertainment Business in the ES Sector, along with the depreciation of the yen. Core Operating Income The Company defines core operating income as revenue less cost of sales and selling, general and administrative expenses. Core operating income for the first half of the fiscal year ending March 31, 2027 increased approximately 3,900 million yen, or 47.4%, from a year earlier to 12,265 million yen. This was mainly due to revenue growth in the Domestic Dealer-Installed Option Business and the Entertainment Business, as well as approximately 4,300 m illion yen recognized in core operating income in the second quarter in connection with the U.S. IEEPA tariff refunds received during the first half, including through a reduction in cost of sales. This increase was achieved despite the impact of
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- 3 - lower revenue in the Communications Systems Business in the S&S Sector and a surge in the prices of memory and other components in the M&T Sector beyond the levels anticipated at the beginning of the fiscal year. Operating Profit Operating profit for the first half of the fiscal year ending March 31, 2027 increased approximately 1,900 million yen, or 19.2%, from a year earlier to 11,488 million yen, mainly due to an increase in core operating income, despite the recording of restructuring expenses such as headcount reductions at production sites, and the absence of a gain on the sale of property, plant and equipment recognized in the same period a year earlier. Profit before Income Taxes Profit before income taxes for the first half of the fiscal year ending March 31, 2027 increased approximately 1,700 million yen, or 16.2%, from a year earlier to 11,955 million yen, mainly due to a n increase in operating profit, as well as the recognition of approximately 200 million yen in interest income arising from the U.S. IEEPA tariff refunds as finance income. Profit Attributable to Owners of the Parent Profit attributable to owners of the parent for the first half of the fiscal year ending March 31, 2027 increased approximately 700 million yen, or 9.5%, from a year earlier to 8,213 million yen, mainly due to a n increase in profit before income taxes. Revenue and Profit (Loss) by Business Sector Revenue and core operating income (loss) by business sector are as follows. First half of the fiscal year ending March 31, 2027 (April 1, 2026, to September 30, 2026) (Million yen) Business Sector H1 of FYE3/’26 H1 of FYE3/’27 Year-on-year change Safety & Security (S&S) Sector Revenue Core operating income 43,725 5,122 40,388 5,502 (3,336) +379 Mobility & Telematics (M&T) Services Sector Revenue Core operating income 95,432 2,545 107,602 2,972 +12,169 +426 Entertainment Solutions (ES) Sector Revenue 25,866 31,252 +5,386 Core operating income 526 3,782 +3,255 Others Revenue Core operating income 4,297 124 4,534 8 +237 (115) Total Revenue 169,321 183,778 +14,456 Core operating income 8,319 12,265 +3,946 Safety & Security (S&S) Sector Revenue of the S&S Sector for the first half of the fiscal year ending March 31, 2027 decreased approximately 3,300 million yen, or 7.6%, from a year earlier to 40,388 million yen. Core operating income increased approximately 400 million yen, or 7.4%, from a year earlier to 5,502 million yen. Revenue Revenue of the Communications Systems Business decreased approximately 1,300 million yen from a year earlier. This was mainly due to the suspension of anticipated projects and a slowdown in new orders in the North American public safety market , as local governments, which are key customers in t his market, began reviewing their budget execution, despite a recovery in sales for the enterprise market. Revenue of the Professional Systems Business decreased approximately 2,100 million yen from a year earlier mainly due to the impact of lower sales following the withdrawal from the Healthcare Business.
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- 4 - Core Operating Income Core operating income of the S&S Sector as a whole increased from a year earlier, mainly due to the recognition of the U.S. IEEPA tariff refunds as a reduction in cost of sales in the second quarter, despite the impact of lower revenue due to a decrease in sales for the North American public safety market in the Communications Systems Business and an increase in fixed costs such as personnel costs and depreciation. Mobility & Telematics Services (M&T) Sector Revenue of the M&T Sector for the first half of the fiscal year ending March 31, 2027 increased approximately 12,200 million yen, or 12.8%, from a year earlier to 107,602 million yen. Core operating income increased approximately 400 million yen, or 16.8%, from a year earlier to 2,972 million yen. Revenue Revenue of the OEM Business increased from a year earlier , mainly due to the depreciation of the yen, as well as an increase in sales of products newly introduced at the end of the previous fiscal year in the Domestic Dealer-Installed Option Business, despite the impact of lower sales at ASK Industries S.p.A. (“ASK”), which handles in-vehicle audio and transmission components, owing to the slowdown in the Chinese economy. Revenue of the Aftermarket Business increased from a year earlier , mainly due to the effect of introducing new car navigation systems for the domestic market, as well as progress in reflecting the surge in the prices of memory and other components in selling prices. Revenue of the Telematics Service Business increased from a year earlier, mainly due to an increase in sales of cloud- connected dashcams for auto insurance companies, as well as progress in reflecting the surge in the prices of memory and other components in selling prices. Core Operating Income Core operating income was affected by the surge in the prices of memory and other components beyond the levels anticipated at the beginning of the fiscal year, as well as the decline in sales at ASK. However, core operating income of the entire M&T Sector increased from a year earlier , mainly due to an increase in sales in the Domestic Dealer- Installed Option Business and the recognition of the U.S. IEEPA tariff refunds as a reduction in cost of sales i n the second quarter. The impact of the surge in component prices on earnings continues, and the Group continues to take measures to address the situation. Entertainment Solutions (ES) Sector Revenue of the ES Sector for the first half of the fiscal year ending March 31, 2027 increased approximately 5,400 million yen, or 20.8%, from a year earlier to 31,252 million yen. Core operating income increased significantly by approximately 3,300 million yen, or 618.6%, from a year earlier to 3,782 million yen. Revenue Revenue of the Media Business decreased approximately 1,300 million yen from a year earlier mainly due to a decline in sales of projectors, despite a recovery in sales of headphones and earphones. Revenue of the Entertainment Business increased significantly by approximately 6,600 million yen from a year earlier mainly due to strong sales of content, including music streaming. Core Operating Income Core operating income of the ES Sector as a whole increased significantly from a year earlier, mainly due to higher revenue in the Entertainment Business driven by strong sales of content, including music streaming.
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- 5 - (2) Financial Position Analysis of Assets, Liabilities, Equity, Etc. Assets Total assets decreased approximately 2,700 million yen from the end of the previous fiscal year to 344,935 million yen. This was mainly due to decreases in trade and other receivables and property, plant and equipment, despite increases in inventories and intangible assets resulting from the acquisition of shares in San Luis Aviation, Inc. (“SLA”), among other items. Liabilities Total liabilities were down approximately 4,200 million yen from the end of the previous fiscal year to 193,675 million yen. This was mainly due to repayment of borrowings, despite an increase in trade and other payables. Equity Total equity increased approximately 1,600 million yen from the end of the previous fiscal year to 151,260 million yen. This was mainly due to an increase of approximately 6,500 million yen in retained earnings as a result of the recognition of profit for the first half, despite a decrease resulting from share repurchases. The ratio of equity attributable to owners of the parent to total assets increased by 0.7 percentage points from the end of the previous fiscal year to 42.1%. Cash Flow Analysis Cash Flows from Operating Activities Net cash provided by operating activities for the first half of the fiscal year ending March 31, 2027 was 23,762 million yen, an increase of approximately 7,700 million yen from the same period a year earlier. This was mainly du e to an increase in profit before income taxes associated with the receipt of the U.S. IEEPA tariff refunds , as well as an increase in accrued expenses. Cash Flows from Investing Activities Net cash used in investing activities for the first half of the fiscal year ending March 31, 2027 was 12,360 million yen, an increase in cash outflows of approximately 1,200 million yen from the same period of the previous fiscal year. This was mainly due to payments for the acquisition of shares in SLA, despite decreases in purchases of property, plant and equipment and intangible assets. Cash Flows from Financing Activities Net cash used in financing activities for the first half of the fiscal year ending March 31, 2027 was 11,955 million yen, an increase in cash outflows of approximately 6,900 million yen from the same period of the previous fiscal year. This was mainly due to repayment of borrowings. Cash and cash equivalents at the end of the first half of the fiscal year ending March 31, 2027 increased approximately 14,700 million yen from the same period of the previous fiscal year to 64,340 million yen.
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- 6 - (3) Future Forecast Information and Consolidated Earnings Forecast Earnings Forecast for the Fiscal Year Ending March 31, 2027 Revenue for the first half of the fiscal year ending March 31, 2027 exceeded expectations, mainly due to an increase in sales in the Domestic Dealer-Installed Option Business in the M&T Sector and strong sales in the Entertainment Business in the ES Sector , as well as the depreciation of the yen . However, excluding the effects of the U.S. IEEPA tariff refunds, core operating income fell short of expectations, mainly due to the impact of lower sales in the Communications Systems Business in the S&S Sector. From the third quarter of the fiscal year ending March 31, 2027 onward, the Group expects solid performance in the Domestic Dealer -Installed Option Business and the Entertainment Business , while there are concerns about the impact of a surge in the prices of memory and other components on earnings in the M&T Sector. In the Communications Systems Business , sales for the North American public safety market are expected to fall short of expectations. Accordingly, as stated in the “Revision of Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2027,” separately disclosed today , the Company has revised the consolidated earnings forecast for the fiscal year ending March 31, 2027 initially announced on May 1, 2026, as follows. (Million yen) Consolidated earnings for the fiscal year ended March 31, 2026 Consolidated earnings forecast for the fiscal year ending March 31, 2027 (As of May 1, 2026) Consolidated earnings forecast for the fiscal year ending March 31, 2027 (As of October 30, 2026) Comparison with the previous forecast Year-on- year change Revenue 356,865 364,000 376,000 +12,000 +19,134 Core operating income* 20,880 23,400 22,300 (1,100) +1,419 Operating profit 20,540 20,600 19,500 (1,100) (1,040) Profit before income taxes 21,660 21,000 19,700 (1,300) (1,960) Profit attributable to owners of the parent 16,787 15,000 14,700 (300) (2,087) Exchange rate U.S. dollar 151 yen 155 yen 155 yen ±0 yen +4 yen Euro 175 yen 180 yen 180 yen ±0 yen +5 yen *Core operating income is calculated by deducting cost of sales and selling, general and administrative expenses from revenue, and does not include other income, other expenses, and foreign exchange losses (gains), which are primarily due to one-time factors. The earnings forecast was prepared by the Company based on information available at the time of releasing this document. Actual business results may differ from the forecast values due to various factors.
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- 7 - 2. Consolidated Financial Statements (1) Consolidated Statement of Financial Position (Millions of yen) As of March 31, 2026 As of September 30, 2026 Assets Current assets Cash and cash equivalents 65,716 64,340 Trade and other receivables 73,919 72,447 Contract assets 5,349 4,608 Other financial assets 2,504 2,247 Inventories 61,044 64,072 Right to recover products 351 320 Income taxes receivable 924 520 Other current assets 7,834 6,985 Total current assets 217,647 215,543 Non-current assets Property, plant and equipment 64,901 61,526 Goodwill 1,002 1,577 Intangible assets 28,157 31,129 Net defined benefit assets 115 86 Investment property 4,136 4,099 Investments accounted for using the equity method 9,954 10,321 Other financial assets 12,048 11,036 Deferred tax assets 6,424 5,552 Other non-current assets 3,218 4,062 Total non-current assets 129,958 129,392 Total assets 347,605 344,935
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- 8 - (Millions of yen) As of March 31, 2026 As of September 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 52,212 53,179 Contract liabilities 3,905 4,662 Refund liabilities 3,745 4,321 Short-term borrowings 18,589 15,184 Other financial liabilities 5,039 3,899 Income taxes payable 1,345 1,889 Provisions 2,446 2,422 Other current liabilities 29,880 30,545 Total current liabilities 117,165 116,106 Non-current liabilities Bonds and long-term borrowings 50,009 48,398 Other financial liabilities 10,669 9,817 Net defined benefit liabilities 14,493 13,698 Provisions 1,239 1,196 Deferred tax liabilities 2,453 2,438 Other non-current liabilities 1,875 2,018 Total non-current liabilities 80,741 77,569 Total liabilities 197,906 193,675 Equity Capital stock 13,645 13,645 Capital surplus 41,074 41,178 Retained earnings 72,782 79,322 Treasury stock (18,866) (21,445) Other components of equity 35,199 32,653 Equity attributable to owners of the parent 143,834 145,354 Non-controlling interests 5,864 5,906 Total equity 149,698 151,260 Total liabilities and equity 347,605 344,935
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- 9 - (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Consolidated Statement of Income) (Millions of yen) Six months ended September 30, 2025 Six months ended September 30, 2026 Revenue 169,321 183,778 Cost of sales 117,756 124,459 Gross profit 51,565 59,318 Selling, general and administrative expenses 43,245 47,053 Other income 1,803 468 Other expenses 421 974 Foreign exchange gains (losses) (68) (270) Operating profit 9,633 11,488 Finance income 516 739 Finance expenses 661 904 Share of profit (loss) of investments accounted for using the equity method 803 632 Profit before income taxes 10,292 11,955 Income tax expenses 2,557 3,568 Profit 7,735 8,387 Profit attributable to: Owners of the parent 7,500 8,213 Non-controlling interests 234 173 Profit 7,735 8,387 Earnings per share Basic earnings per share 50.97 yen 58.29 yen Diluted earnings per share 50.84 yen 53.30 yen
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- 10 - (Consolidated Statement of Comprehensive Income) (Millions of yen) Six months ended September 30, 2025 Six months ended September 30, 2026 Profit 7,735 8,387 Other comprehensive income (“OCI”) Items that will not be reclassified subsequently to profit or loss Financial assets measured at fair value through OCI 876 (21) Total items that will not be reclassified subsequently to profit or loss 876 (21) Items that may be reclassified subsequently to profit or loss Exchange differences arising on translation of foreign operations 2,008 (2,006) Cash flow hedges (233) (291) Share of OCI of investments accounted for using the equity method 127 (251) Total items that may be reclassified subsequently to profit or loss 1,902 (2,550) OCI, net of income tax 2,779 (2,571) Comprehensive income 10,514 5,815 Total comprehensive income attributable to: Owners of the parent 10,330 5,690 Non-controlling interests 184 125 Comprehensive income 10,514 5,815
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- 11 - (3) Consolidated Statement of Changes in Equity For the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (Millions of yen) Equity attributable to owners of the parent Capital stock Capital surplus Retained earnings Treasury stock Other components of equity Remeasure- ment of defined benefit plans Financial assets measured at fair value through other comprehensive income Exchange differences arising on translation of foreign operations Balance as of April 1, 2025 13,645 42,357 58,086 (11,589) － 909 20,529 Profit 7,500 Other comprehensive income 876 2,208 Comprehensive income － － 7,500 － － 876 2,208 Acquisition of treasury stock (1) (2,000) Disposal of treasury stock 0 Cancellation of treasury stock Share-based payment transactions (303) 410 Dividends paid (1,480) Changes in ownership interest in subsidiaries (326) Transfer from other components of equity to retained earnings Total transactions with the owner － (631) (1,480) (1,590) － － － Balance as of September 30, 2025 13,645 41,725 64,106 (13,179) － 1,785 22,737 (Millions of yen) Equity attributable to owners of the parent Non- controlling interests Total equity Other components of equity Total Cash flow hedges Fair value of investment property Total Balance as of April 1, 2025 772 391 22,602 125,103 6,295 131,399 Profit － 7,500 234 7,735 Other comprehensive income (254) 2,829 2,829 (50) 2,779 Comprehensive income (254) － 2,829 10,330 184 10,514 Acquisition of treasury stock － (2,002) (2,002) Disposal of treasury stock － 0 0 Cancellation of treasury stock － － － Share-based payment transactions － 106 106 Dividends paid － (1,480) (168) (1,649) Changes in ownership interest in subsidiaries － (326) (394) (721) Transfer from other components of equity to retained earnings － － － Total transactions with the owner － － － (3,702) (563) (4,266) Balance as of September 30, 2025 517 391 25,432 131,730 5,916 137,647
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- 12 - For the six months ended September 30, 2026 (from April 1, 2026 to September 30, 2026) (Millions of yen) Equity attributable to owners of the parent Capital stock Capital surplus Retained earnings Treasury stock Other components of equity Remeasure- ment of defined benefit plans Financial assets measured at fair value through other comprehensive income Exchange differences arising on translation of foreign operations Balance as of April 1, 2026 13,645 41,074 72,782 (18,866) － 2,287 31,111 Profit 8,213 Other comprehensive income (21) (2,148) Comprehensive income － － 8,213 － － (21) (2,148) Acquisition of treasury stock (0) (2,635) Disposal of treasury stock Cancellation of treasury stock (9) 9 Share-based payment transactions 114 47 Dividends paid (1,695) Changes in ownership interest in subsidiaries Transfer from other components of equity to retained earnings 22 (22) Total transactions with the owner － 104 (1,673) (2,578) － (22) － Balance as of September 30, 2026 13,645 41,178 79,322 (21,445) － 2,243 28,962 (Millions of yen) Equity attributable to owners of the parent Non- controlling interests Total equity Other components of equity Total Cash flow hedges Fair value of investment property Total Balance as of April 1, 2026 1,408 391 35,199 143,834 5,864 149,698 Profit － 8,213 173 8,387 Other comprehensive income (352) (2,523) (2,523) (48) (2,571) Comprehensive income (352) － (2,523) 5,690 125 5,815 Acquisition of treasury stock － (2,636) (2,636) Disposal of treasury stock － － － Cancellation of treasury stock － － － Share-based payment transactions － 161 161 Dividends paid － (1,695) (83) (1,779) Changes in ownership interest in subsidiaries － － － Transfer from other components of equity to retained earnings (22) － － Total transactions with the owner － － (22) (4,170) (83) (4,254) Balance as of September 30, 2026 1,055 391 32,653 145,354 5,906 151,260
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- 13 - (4) Consolidated Statement of Cash Flows (Millions of yen) Six months ended September 30, 2025 Six months ended September 30, 2026 Cash flows from operating activities Profit before income taxes 10,292 11,955 Depreciation and amortization 8,579 10,359 Increase (decrease) in net defined benefit liabilities (435) (737) Decrease (increase) in net defined benefit assets 62 29 Finance income (516) (739) Finance expenses 661 904 Loss (gain) on sales of property, plant and equipment (1,205) (12) Share of loss (profit) of investments accounted for using the equity method (803) (632) Decrease (increase) in trade and other receivables 11,318 230 Decrease (increase) in contract assets (571) 671 Decrease (increase) in inventories (1,147) (4,198) Increase (decrease) in trade and other payables (1,500) 2,374 Increase (decrease) in accrued expenses (4,344) 378 Increase (decrease) in other current liabilities (484) 1,087 Other, net (1,682) 3,618 Subtotal 18,222 25,289 Interest received 430 670 Dividend received 83 62 Interest paid (602) (592) Income taxes paid (2,046) (1,668) Net cash provided by operating activities 16,087 23,762 Cash flows from investing activities Purchases of property, plant and equipment (4,011) (2,665) Proceeds from sales of property, plant and equipment 1,380 32 Purchases of intangible assets (6,216) (5,574) Payment for acquisition of subsidiaries resulting in change in scope of consolidation － (3,400) Payment for long-term prepaid expenses (969) (744) Other, net (1,323) (7) Net cash used in investing activities (11,139) (12,360)
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- 14 - (Millions of yen) Six months ended September 30, 2025 Six months ended September 30, 2026 Cash flows from financing activities Proceeds from short-term borrowings 41,299 2,341 Repayment of short-term borrowings (37,638) (4,610) Proceeds from long-term borrowings 8,004 6,224 Repayment of long-term borrowings (9,938) (9,250) Repayment of lease liabilities (1,845) (1,781) Acquisition of treasury stock (2,000) (2,635) Cash dividends paid (1,480) (1,695) Cash dividends paid to non-controlling interests (715) (536) Payments for acquisition of subsidiary shares without changes in the scope of consolidation (721) － Other, net (11) (11) Net cash used in financing activities (5,048) (11,955) Effect of exchange rate changes on cash and cash equivalents 1,125 (821) Net increase (decrease) in cash and cash equivalents 1,025 (1,375) Cash and cash equivalents at beginning of year 48,597 65,716 Cash and cash equivalents at end of the period 49,623 64,340
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- 15 - (5) Notes to Consolidated Financial Statements (Assumption for Going Concern): None (Segment Information) (1) Outline of reportable segments Reportable segments are the Company’s constituent business units for which separate financial information can be obtained and those which are periodically examined by the Board of Directors for the purposes of determining the allocation of resources and evaluating results of operations. The Group appoints a chief operating officer (“COO”) in each sector to formulate comprehensive strategies and engage in business activities for their products and services and conducts their worldwide operations. The Group is taking a step forward and going from being a traditional manufacturing and sales company to being one that creates customer value by providing solutions to their problems and operates three business segments: the Safety & Security(S&S) Sector, the Mobility & Telematics Services(M&T) Sector, and the Entertainment Solutions (ES) Sector. The Group’s reportable segments are consistent with these business segments. The major products, services, and business details of each segment are as follows: Safety & Security (S&S) Sector Manufacture and sales of professional wireless communications devices, communications devices for general consumers, professional video surveillance equipment, professional audio equipment, medical image display systems, etc. Mobility & Telematics Services (M&T) Sector Manufacture and sales of car AV systems, car navigation systems, dashcams; in-vehicle speakers, amplifiers, antennas, and cables; in-vehicle devices, etc., and telematics solutions Entertainment Solutions (ES) Sector Manufacture and sales of projectors, headphones, home audio equipment, portable power supplies, etc.; entrusted business of CDs and DVDs (packaged software), etc.; manufacture of CDs and DVDs (packaged software); content business of audio and video software, content distribution, etc. Others Service parts, etc.
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- 16 - (2) Revenue, profit or loss for each reportable segment Revenue, profit or loss of each segment are as follows: For the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (Millions of yen) Reportable segments Other Total Reconciliations Consolidated financial statements Safety & Security (S&S) Sector Mobility & Telematics Services (M&T) Sector Entertainment Solutions (ES) Sector Total Revenue Revenue from customers 43,725 95,432 25,866 165,024 4,297 169,321 － 169,321 Intersegment revenue or transfers － － － － － － － － Total 43,725 95,432 25,866 165,024 4,297 169,321 － 169,321 Segment profit (Note) 5,122 2,545 526 8,195 124 8,319 － 8,319 Other income 1,803 Other expenses 421 Foreign exchange gains (losses) (68) Operating profit 9,633 Finance income 516 Finance expenses 661 Share of profit (loss) of investments accounted for using the equity method 803 Profit before income taxes 10,292 Note: Segment profit is indicated with core operating income and calculated by deducting cost of sales and selling, general and administrative expenses from revenue.
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- 17 - For the six months ended September 30, 2026 (from April 1, 2026 to September 30, 2026) (Millions of yen) Reportable segments Other Total Reconciliations Consolidated financial statements Safety & Security (S&S) Sector Mobility & Telematics Services (M&T) Sector Entertainment Solutions (ES) Sector Total Revenue Revenue from customers 40,388 107,602 31,252 179,243 4,534 183,778 － 183,778 Intersegment revenue or transfers － － － － － － － － Total 40,388 107,602 31,252 179,243 4,534 183,778 － 183,778 Segment profit (Note) 5,502 2,972 3,782 12,257 8 12,265 － 12,265 Other income 468 Other expenses 974 Foreign exchange gains (losses) (270) Operating profit 11,488 Finance income 739 Finance expenses 904 Share of profit (loss) of investments accounted for using the equity method 632 Profit before income taxes 11,955 Note: Segment profit is indicated with core operating income and calculated by deducting cost of sales and selling, general and administrative expenses from revenue.