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 . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) FASE August 7 , 2026 Company name : DKK Co. , Ltd. Listing : Tokyo Stock Exchange Securities code : 6706 URL https://denkikogyo.co.jp/ President & Representative Representative : ( Title ) ( Name ) Tadatoshi Kondo Director Inquiries : ( Title ) Managing Officer and Head of Finance Department ( Name ) Yoshiaki Tsuchisawa Phone : + 81-3-3520-9870 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Yes Holding of financial results briefing : No ( Yen amounts are rounded down to millions . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results Net sales Three months ended Millions of yen 7,483 % Operating profit Millions of yen % 25.1 ( 4 ) ( Percentages indicate Ordinary profit Millions of yen 230 % year - on - year changes . ) Profit attributable to owners of parent Millions of yen % June 30 , 2026 Three months ended 5,983 0.5 ( 433 ) ( 411 ) 1,307 ( 212 ) June 30 , 2025 Note : Comprehensive Three months ended income 1,102 Million yen ( - % ) June 30 , 2026 Three months ended June 30 , 2025 ( 483 ) Million yen ( - % ) Net income per share yen 149.93 ( 23.34 ) Three months ended June 30 , 2026 Three months ended June 30 , 2025 ( Note ) Diluted net income per share is not provided as there are no dilutive shares . ( 2 ) Consolidated financial position Diluted net income per share yen Total assets Net assets Equity ratio Millions of yen Millions of yen % Three months ended 50,693 37,819 73.6 June 30 , 2026 Fiscal year ended 53,047 37,205 69.2 March 31 , 2026 ( Reference ) Net asset excluding Three months ended non - controlling interests 37,330 Million yen June 30 , 2026 Fiscal year ended March 31 , 2026 36,720 Million yen 2. Dividends Annual dividends End of fiscal year Total yen yen 60.00 yen 100.00 Fiscal year ended March 31 , 2026 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 End of first quarter End of second quarter End of third quarter yen yen 40.00 50.00 ( forecast ) Note : Revision to the most recently announced forecast for dividends : None 55.00 105.00
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3. Forecast of consolidated operating results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Net income attributable to shareholders of parent company Net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % yen Full year 36,500 3.0 1,650 35.3 1,650 35.6 2,300 20.8 263.81 Note: Revision to the most recently announced forecast of operating results: None
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*Notes: (1) Significant changes in the scope of consolidation during the period: Yes Newly excluded: One company DENKI KOGYO (CHANGZHOU) HEAT TREATMENT EQUIPMENT CO., LTD. Note: For details, refer to “2. Quarterly consolidated financial statements and major notes, (3) Notes to quarterly consolidated financial statements (Notes on changes in the scope of consolidation or the scope of application of the equity method)” on page 8 of the attached document. (2) Application of accounting procedures particular to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies and accounting estimates, and restatement (a) Changes in accounting policies due to revision of accounting standards, etc.: No (b) Changes in accounting policies other than (a): No (c) Changes in accounting estimates: No (d) Restatement: No (4) Number of shares issued (common stock) (a) Shares issued (including treasury shares) at the end of the period Three months ended June 30, 2026 9,900,000 shares Fiscal year ended March 31, 2026 9,900,000 shares (b) Treasury shares at the end of the period Three months ended June 30, 2026 1,180,563 shares Fiscal year ended March 31, 2026 1,182,343 shares (c) Average number of shares during the period Three months ended June 30, 2026 8,718,237 shares Three months ended June 30, 2025 9,107,735 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: No * Explanation of appropriate use of earnings forecast, and other special notes The forecast and other future projections in this report are based on information currently available to the Company and certain assumptions the Company believes to be reasonable, and are not intended to be a promise by the Company that they will be achieved. Actual results may differ significantly due to various factors. Refer to "1. Explanation of operating results, etc., (3) Explanation of forecast of consolidated operating results and other future projections” on page 3 of the attachment for the assumptions used in earnings forecast and notes on the use of earnings forecast. In addition, refer to the “Supplementary material on financial results for the Three Months of the Fiscal Year Ending June 30, 2026,” which the Company has posted on its website for supplementary information. (https://denkikogyo.co.jp/en/ir/library/presentation/)
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- 1 - ○Table of Contents of Attachment 1. Explanation of operating results, etc. ……………………………………………………………………………………… 2 (1) Explanation of operating results for the fiscal quarter ………………………………………………………………… 2 (2) Explanation of financial position for the fiscal quarter ………………………………………………………………… 3 (3) Explanation of forecast of consolidated operating results and other future projections ………………………………… 3 2. Quarterly consolidated financial statements and major notes ……………………………………………………………… 4 (1) Quarterly consolidated balance sheet…………………………………………………………………………………… 4 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income………… 6 Quarterly consolidated statement of income………………………………………………………………………… 6 Quarterly consolidated statement of comprehensive income………………………………………………………… 7 (3) Notes to quarterly consolidated financial statements …………………………………………………………………… 8 (Methods used to prepare quarterly consolidated financial statements) ……………………………………………… 8 (Notes on going concern assumptions) ………………………………………………………………………………… 8 (Notes on changes in the scope of consolidation or the scope of application of the equity method) ………………… 8 (Notes in case of significant changes in shareholders’ equity) ………………………………………………………… 8 (Additional Information) ……………………………………………………………………………………………… 8 (Notes on quarterly consolidated statement of cash flows) …………………………………………………………… 8 (Notes on segment information, etc.) ………………………………………………………………………………… 9 3. Supplementary information ………………………………………………………………………………………………… 10 (1) Production, orders and sales …………………………………………………………………………………………… 10
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- 2 - 1. Explanation of operating results, etc. (1) Explanation of operating results for the fiscal quarter During the three months ended June 30, 2026, Japanese economy gradually recovered despite some weaknesses. Production activities have been picking up, and consumption remained resilient. Capital investment continued to recover against the backdrop of high-level corporate income. On the other hand, commodity prices remained high and labor costs continued to surge. There were exchange rate fluctuations, geopolitical risks, and, moreover, risks of surges in energy and raw material prices due to tensions in the Middle East situa tion. As a result, the future prospects of business environment remains uncertain. In the telecommunications -related, recovery in capital investment demands of some customers continued in the mobile communications-related field to enhance communication quality. In the fixed wireless communication-related field, the cycle of demand came to an end in administrative radio systems for disaster prevention in local governments that was arising from the maturity of emergency disaster prevention and reduction bonds. In terms of the defense -related field, demand for defense equipment and various defense facilities remained steady, against the backdrop of increases in the defense budget. In the broadcasting-related field, demand for update of digital broadcasting equipment as well as maintenance by broadcasters started to show increases in some parts. In the applied high-frequency- related , demand of some customers showed sings of recovery while there remained the impact of a slowdown in demand for capital investment in the automotive-related field, which was stemming from U.S. tariff policies. Amid this business environment, the Company promoted “Business structural reforms,” “Optimizing management resources,” and “Advancing sustainability management” as priority measures under “DKK-Plan 2028,” its medium-term business plan with the fiscal year ending March 31, 2028 (fiscal year 2027) as its final year, aiming to achieve growth by establishing a profit - generating structure. As a result, the Group posted orders received of 11,388 million yen, up 3 3.6% from a year earlier, and net sales of 7,483 million yen, up 25.1% year on year, for the three months ended June 30, 2026. As for profits, the Group posted operating loss of 4 million yen (compared to operating loss of 433 million yen for the year - earlier period) due to the effects of soaring raw materials costs and increasing logistics costs that have been continuing since the previous fiscal year. Meanwhile, ordinary profit was 230 million yen (compared to operating loss of 411 million yen for the year- earlier period) due mainly t o gain on investments in investment partnerships. Profit attributable to owners of parent came to 1,307 million yen (compared to loss attributable to owners of parent of 212 million yen for the year -earlier period) due mainly to extraordinary income from gain on sale of non-current assets. Results by segment are as follows. (Results of reportable segments, etc. include intersegment sales, etc.) (a) Telecommunication Business In the mobile communications -related field, there were signs of demand recovery of some customers for steel towers and maintenance, in addition to antennas and wireless communication for 5G, reflecting capital investment demand to improve communication quality in response to increasing communication traffic. In the fixed wireless communication -related field, the cycle of demand has come to an end in administrative radio systems for disaster prevention in local governments that was arising from the maturity of emergency disaster prevention and reduction bonds. However, we will work to uncover demand associated with the extension of the bond maturity. In terms of demand in the defense -related field, demand for defense equipment and various defense facilities remained on an increasing trend, supported by increase in defense budget. In the broadcasting-related field, demand for maintenance by broadcasters was recovering, and demand for update of digital broadcasting equipment started to show increases in some parts. In the solutions -related field, by combining image AI technology of the subsidiary, Cybercore Co., Ltd., and wireless communication technology cultivated by the Company, the Company has been building a business that helps to solve a variety of social issues, chalking up a track record of solutions including analysis of people movement and traffic. In other fields, the Company’s subsidiary, Denko CO., Ltd., expanded the scope for demand in outdoor construction steel frames and surface treatment for steel structures, and efforts are underway to secure further demand through expanding LED lighting-related demand and sale of LED aircraft warning lights. Under such business environment, we aggressively worked in this business field to capture demand in the growth business segment, improve productivity, and reduce fixed costs. As a result, orders received increased 37.4% year on year to 8,458 million yen and net sales increased 30.8% year on year to 4,837 million yen. Segment profit (operating profit) increased 378.4% year on year to 322 million yen.
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- 3 - (b) Radio Frequency Business In the field of high-frequency induction heating equipment of this business, demand for capital investment in the automotive industry, which had remained sluggish due to trade policies, primarily in the United States, showed sings of recovery among some customers. Under such circumstances, we have carefully assessed the capital investment trends in the automotive industry, uncovered demand for maintenance of existing facilities on top of that for existing mainstay products, and proactively expanded our business field outside the automotive industry. Also in the field related to contract heat treating services, parts of production activities at various automakers felt some impacts, and we focused to securely obtain demand and worked to improve production systems both in and out of Japan. In the new radio frequency related field, we have advanced the superheated steam technology, participated in trade shows to raise awareness, and taken other measures, in a bid to create demand for treatment of food and waste using superheated steam equipment. We have received orders for superheated steam equipment with our powder sterilization technology in the previous fiscal year, and, using is as a springboard, will further expand our sales. In such business environment, we have pursued profit growth in this business field through active order acquisition, productivity and quality improvements, and pricing reviews. As a result, orders received increased 23.6% year on year to 2,930 million yen and net sales increased 15.8% year on year to 2,620 million yen. Segment profit (operating profit) increased 46.6% year on year to 353 million yen. (2) Explanation of financial position for the fiscal quarter Total assets came to 50,693 million yen as of June 30, 2026, down 2,354 million yen from the end of the previous fiscal year. Current assets decreased 2,459 million yen from the end of the previous fiscal year to 36, 012 million yen. The main factors include decreases of 7,3 72 million yen in accounts receivable including notes receivable and 711 million yen in accounts receivable included in other, despite increases of 4,666 million yen in cash and deposits, 790 million yen in inventories included in other inventories, and 284 million yen in advance payment for construction. Non-current assets increased 105 million yen from the end of the previous fiscal year to 14,680 million yen. The main factors include increase 760 million yen increase in property, plant, and equipment, despite a 529 million yen decrease in deferred tax assets. Current liabilities increased 3,022 million yen from the end of the previous fiscal year to 9,970 million yen. The main factors include decreases of 827 million yen in accrued corporate income tax and similar items, 1,771 million yen in deferred revenue, and 329 million yen in accrued consumption tax and similar items included in “Other,” among others. Non-current liabilities increased 53 million yen from the end of the previous fiscal year to 2,902 million yen. The main factors include increases of 26 million yen in deferred tax liabilities and 34 million yen in liabilities related to retirement benefits, among others. Net assets increased 614 million yen from the end of the previous fiscal year to 37,819 million yen. The main factors include a decrease of 220 million yen in the accumulated adjustments related to retirement benefits, offset by an increase of 811 million yen in retained earnings, among other factors. (3) Explanation of forecast of consolidated operating results and other future projections At this point, the forecast of consolidated operating results for the fiscal year ending March 31, 2027 is unchanged from the forecast announced along with the financial results on May 15, 2026, and no change has been made to the operating results. The Company resolved at its board of directors meeting held today to introduce a shareholder benefit program. For details, please refer to the "Notice Regarding Introduction of Shareholder Benefit Program" announced today.
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- 4 - 2. Quarterly consolidated financial statements and major notes (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 11,644 16,310 Notes receivable - trade 244 116 Electronically recorded monetary claims - operating 1,457 1,701 Accounts receivable from completed construction contracts 8,488 1,728 Accounts receivable - trade 4,166 2,966 Contract assets 3,018 3,490 Costs on construction contracts in progress 156 327 Other inventories 7,533 8,153 Other 1,785 1,230 Allowance for doubtful accounts (23) (12) Total current assets 38,472 36,012 Non-current assets Property, plant and equipment Buildings and structures 10,682 12,312 Machinery, equipment and vehicles 9,909 9,999 Tools, furniture and fixtures 6,146 6,194 Land 2,273 2,267 Leased assets 436 446 Construction in progress 1,331 299 Accumulated depreciation (23,744) (23,723) Total property, plant and equipment 7,036 7,796 Intangible assets Goodwill 11 11 Other 309 281 Total intangible assets 321 293 Investments and other assets Investment securities 2,361 2,316 Long-term loans receivable 2 2 Retirement benefit asset 2,025 1,937 Long-term time deposits 1,000 1,000 Deferred tax assets 805 275 Other 1,068 1,105 Allowance for doubtful accounts (46) (46) Total investments and other assets 7,217 6,590 Total non-current assets 14,575 14,680 Total assets 53,047 50,693
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- 5 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other 2,824 2,740 Short-term borrowings 4,900 4,900 Current portion of long-term borrowings 7 7 Lease liabilities 74 74 Income taxes payable 906 78 Contract liabilities 544 463 Unearned revenue 1,771 － Provision for warranties for completed construction 14 2 Provision for product warranties 24 11 Provision for bonuses 640 418 Provision for bonuses for directors (and other officers) 76 － Provision for loss on construction contracts 7 7 Provision for loss on liquidation of subsidiaries and associates 1 1 Provision for environmental measures and other 50 50 Provision for loss on compensation － 108 Other 1,149 1,104 Total current liabilities 12,993 9,970 Non-current liabilities Long-term borrowings 525 523 Lease liabilities 210 215 Provision for product warranties 0 0 Provision for share awards for directors (and other officers) 121 113 Retirement benefit liability 1,922 1,957 Asset retirement obligations 40 40 Deferred tax liabilities 5 32 Other 22 18 Total non-current liabilities 2,849 2,902 Total liabilities 15,842 12,873 Net assets Shareholders' equity Share capital 8,774 8,774 Capital surplus 9,688 9,689 Retained earnings 18,625 19,437 Treasury shares (2,658) (2,654) Total shareholders' equity 34,429 35,247 Accumulated other comprehensive income V aluation difference on available-for-sale securities 575 620 Deferred gains or losses on hedges － 0 Foreign currency translation adjustment 964 932 Remeasurements of defined benefit plans 750 529 Total accumulated other comprehensive income 2,290 2,082 Non-controlling interests 484 489 Total net assets 37,205 37,819 Total liabilities and net assets 53,047 50,693
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- 6 - (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income (Quarterly consolidated statement of income) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales Net sales of completed construction contracts 2,074 2,383 Net sales of finished goods 3,879 5,071 Sales in other businesses 29 28 Total net sales 5,983 7,483 Cost of sales Cost of sales of completed construction contracts 1,814 2,027 Cost of finished goods sold 3,011 3,958 Cost of sales in other businesses 11 10 Total cost of sales 4,838 5,997 Gross profit Gross profit on completed construction contracts 259 355 Gross profit - finished goods 867 1,112 Gross profit - other business 18 17 Total gross profit 1,144 1,485 Selling, general and administrative expenses 1,578 1,490 Operating loss (433) (4) Non-operating income Interest income 16 13 Dividend income 42 44 Gain on investments in investment partnerships － 188 Other 47 32 Total non-operating income 105 279 Non-operating expenses Interest expenses 21 27 Other 62 16 Total non-operating expenses 83 44 Ordinary profit (loss) (411) 230 Extraordinary income Gain on sale of non-current assets － 1,764 Gain on sale of investment securities 85 － Gain on liquidation of subsidiaries and associates － 21 Gain on revision of retirement benefit plan － 144 Total extraordinary income 85 1,930 Extraordinary losses Loss on compensation － 57 Provision of reserve for compensation losses － 108 Total extraordinary losses － 166 Profit (loss) before income taxes (325) 1,995 Income taxes - current 26 39 Income taxes - deferred (125) 637 Total income taxes (98) 676 Profit (loss) (226) 1,318 Profit (loss) attributable to non-controlling interests (14) 11 Profit (loss) attributable to owners of parent (212) 1,307
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- 7 - (Quarterly consolidated statement of comprehensive income) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit (loss) (226) 1,318 Other comprehensive income Valuation difference on available-for-sale securities (24) 44 Deferred gains or losses on hedges － 0 Foreign currency translation adjustment (180) (40) Remeasurements of defined benefit plans, net of tax (52) (220) Total other comprehensive income (257) (215) Comprehensive income (483) 1,102 Comprehensive income attributable to Comprehensive income attributable to owners of parent (438) 1,084 Comprehensive income attributable to non- controlling interests (45) 17
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- 8 - (3) Notes to quarterly consolidated financial statements (Methods used to prepare quarterly consolidated financial statements) Quarterly consolidated financial statements are prepared in compliance with Article 4, Paragraph 1 of Tokyo Stock Exchange, Inc.’s Standards for Preparation of Quarterly Financial Statements and accounting standards for quarterly financial statements generally accepted in Japan (but the omission of statement allowed under Article 4, Paragraph 2 of the Standards for Preparation of Quarterly Financial Statements is applied). (Notes on going concern assumptions) There are no matters to be noted. (Notes on changes in the scope of consolidation or the scope of application of the equity method) DENKI KOGYO (CHANGZHOU) HEAT TREATMENT EQUIPMENT CO., LTD. one of the subsidiaries of the Company was in the middle of the liquidation proceedings as a result of the resolution made by the board of directors meeting held on April 25, 2025. As of April 2026, the liquidation procedures completed. For this reason, the company was excluded from the scope of consolidation since of the fiscal year ended June 30, 2026. (Notes in case of significant changes in shareholders’ equity) There are no matters to be noted. (Additional Information) (Transition to a Defined Contribution Pension Plan) As the Company transitioned part of its defined benefit corporate pension plan to a defined contribution pension plan on April 1, 2026, we are applying “Accounting Treatment for Transitions Between Retirement Benefit Plans” (Corporate Accounting Standards Application Guideline No. 1, December 16, 2016) and “Practical Treatment of Accounting for Transitions Between Retirement Benefit Plans” (Practical Response Report No. 2, February 7, 2007), accounted for the portion transferred to the defined contribution pension plan as a partial termination of the retirement benefit plan. As a result, during the first quarter of the current fiscal year, we recorded a gain of 144 million yen from the revision of the retirement benefit plan as extraordinary income. (Loss on compensation and Provision of reserve for compensation losses) Regarding compensation costs associated with steel tower painting work undertaken by the Company, we have recorded a compensation loss of 57 million yen, the amount of which was finalized during the cumulative first quarter of the consolidated fiscal year. In addition, with regard to expenses expected to arise in the future, we have recorded 108 million yen-the amount that can be reasonably estimated at this time- Provision of reserve for compensation losses. (Notes on quarterly consolidated statement of cash flows) We did not prepare a quarterly consolidated statement of cash flow for the three months ended June 30, 2026. Depreciation (including amortization of intangible assets) and amortization of goodwill for the three months ended June 30 are shown below. Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) Depreciation 173 million yen 220 million yen Depreciation of goodwill 0 million yen 0 million yen
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- 9 - (Notes on segment information, etc.) [Segment information] I Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) 1. Information on amounts of net sales and profit/loss by reportable segment (Millions of yen) Reportable segment Other Businesses (Note) 1 Total Reconciling items (Note) 2 Per semi- annual consolidated financial statements (Note) 3 Telecommunication Business Radio Frequency Business Reportable segments Sales Revenues from external customers 3,691 2,261 5,953 29 5,983 - 5,983 Transactions with other segments 6 - 6 62 68 (68) - Net sales 3,697 2,261 5,959 92 6,051 (68) 5,983 Operating profit (loss) 67 240 308 59 367 (800) (433) (Notes) 1 The “Other Businesses” segment, which is not included in reportable segments, includes equipment leasing and electric power sales businesses. 2 The segment income adjustment of (800) million yen includes (37) million yen in elimination of intersegment transactions and (763) million yen in corporate expenses that are not allocated to any reportable segment. Corporate expenses are mainly general and administrative expenses that are not attributable to any reportable segments. 3 Adjustments are made to reconcile segment income (loss) with operating loss in the consolidated statement of income. 2. Information on impairment losses or goodwill, etc. on non-current assets by reportable segment There are no matters to be noted. II Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) 1. Information on amounts of net sales and profit/loss by reportable segment (Millions of yen) Reportable segments Other Businesses (Note) 1 Total Reconciling items (Note) 2 Per semi- annual consolidated financial statements (Note) 3 Telecommunication Business Radio Frequency Business Reportable segments Sales Revenues from external customers 4,835 2,619 7,454 28 7,483 - 7,483 Transactions with other segments 1 0 2 76 78 (78) - Net sales 4,837 2,620 7,457 105 7,562 (78) 7,483 Operating profit (loss) 322 353 675 70 746 (751) (4) (Notes) 1 The “Other Businesses” segment, which is not included in reportable segments, includes equipment leasing and electric power sales businesses. 2 The segment income adjustment of (751) million yen includes (48) million yen in elimination of intersegment transactions and (703) million yen in corporate expenses that are not allocated to any reportable segment. Corporate expenses are mainly general and administrative expenses that are not attributable to any reportable segments. 3 Adjustments are made to reconcile segment income (loss) with operating loss in the consolidated statement of income. 2. Information on impairment losses or goodwill, etc. on non-current assets by reportable segment There are no matters to be noted.
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- 10 - 3. Supplementary information (1) Production, orders and sales (a) Production results Production results by reportable segment for the three months ended June 30, 2026 are shown below. Reportable segment Output (millions of yen) Year-on-year change (%) Telecommunication Business 3,403 34.8 Radio Frequency Business 2,767 6.6 Total 6,170 20.5 (Notes) 1 Amounts are based on sales prices, and intersegment transactions have been offset. 2 In the Telecommunication Business, production results related to construction projects are excluded from the above production results due to difficulty in defining the results. (b) Results of orders received Results of orders received by reportable segment for the three months ended June 30, 2026 are shown below. Reportable segment Orders received (millions of yen) Year-on-year change (%) Order backlog (millions of yen) Year-on-year change (%) Telecommunication Business 8,458 37.4 20,880 22.7 Radio Frequency Business 2,930 23.6 4,237 32.1 Total 11,388 33.6 25,117 24.2 (c) Sales results Sales results by reportable segment for the three months ended June 30, 2026 are shown below. Reportable segment Net sales (millions of yen) Year-on-year change (%) Telecommunication Business Construction work 2,383 14.9 Equipment and materials sales 2,451 51.6 Subtotal of Telecommunication Business 4,835 31.0 Radio Frequency Business 2,619 15.8 Total of reportable segments 7,454 25.2 Others 28 (5.6) Total 7,483 25.1 (Notes) 1 Intersegment transactions have been offset. 2 The “Others” segment, which is not included in reportable segments, includes equipment leasing and electric power sales businesses.