Interim report
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February 12, 2026 Summary of Consolidated Financial Results for the Third Quarter Ended December 31, 2025 [Japan GAAP] Name of Company: KAGA ELECTRONICS CO., LTD. Stock Code: 8154 URL: https://www.taxan.co.jp/ Stock Exchange Listing: Tokyo Stock Exchange, Prime Market Representative Title: Representative Director, President & COO Name: Ryoichi Kado Contact Person Title: Dir ector, Senior Executive Officer Head of Administration Headquarters Name: Yasuhiro Ishihara Phone: +81-(0)3-5657-0111 Date of commencement of dividend payment (tentative): - Earnings supplementary explanatory documents: Yes Earnings presentation: None (Yen in millions, rounded down) 1. Financial results for the third quarter of the fiscal year ending March 20 26 (April 1, 2025 – December 31, 2025) (1) Result of operations (Consolidated, year-to-date) (Percentage figures represent year on year changes) Net sales Operating income Ordinary income Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % Third quarter ended December 2025 445,475 12.4 19,449 7.7 20,766 13.0 24,308 91.2 Third quarter ended December 2024 396,243 (2.5) 18,056 (11.9) 18,379 (9.5) 12,714 (20.5) Note: Comprehensive income: 3Q of FY3/2026: 28,977 million yen ［62.9%］3Q of FY3/2025: 17,790 million yen ［(14.0%)］ Earnings per share Earnings per share (diluted) Yen Yen Third quarter ended December 2025 485.11 － Third quarter ended December 2024 241.97 － Notes: The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. Earnings per share is calculated on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 2024. Note that diluted earnings per share is indicated as “-” because there are no diluted shares. (2) Financial Position (Consolidated) Total assets Net assets Equity ratio Million yen Million yen % As of December 31, 2025 343,171 174,699 50.9 As of March 31, 2025 305,671 166,379 54.4 Reference: Shareholdersʼ equity As of December 31, 2025: 174,703 million yen As of March 31, 2025: 166,218 million yen 2. Dividends Dividend per share Dividend payout ratio (Consolidated) 1Q 2Q 3Q Year-end Full year Yen Yen Yen Yen Yen % Fiscal year ended March 2025 － 110.00 － 55.00 － 33.8 Fiscal year ending March 2026 － 60.00 － Fiscal year ending March 2026 70.00 130.00 22.6 (Forecast) Notes: 1. Change in the dividend forecast from the latest announcement: Yes Breakdown of interim dividend for 2026/3: Ordinary dividend: 55.00 yen; Extraordinary dividend: 5.00 yen Breakdown of year-end dividend for 2026/3(Forecast): Ordinary dividend: 55.00 yen; Extraordinary dividend: 15.00 yen With respect to the revision of dividend forecast, please refer to “Notice Regarding Upward Revision to Forecasts for Full- Year Earnings and Dividends (Dividend Increase)” , announced today (February 12, 2026).
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2. The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. The amount of the year-end dividend per share presented above for the fiscal year ended March 2025 takes into account the effect of the stock split, and the full-year dividend amount is indicated as “–”. Assuming that the stock split was conducted at the beginning of the previous fiscal year, the interim dividend would be 55.00 yen, and the full year dividend per share would be 110.00 yen. 3. Forecast for the fiscal year ending March 2026 (Consolidated, April 1, 2025 – March 31, 2026) (Percentage figures represent year on year changes) Net sales Operating income Ordinary income Profit attributable to owners of parent Earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 620,000 13.2 27,000 14.4 28,000 23.9 28,500 66.8 575.24 Notes: Change in the forecast from the latest announcement: Yes With respect to the revision of consolidated performance forecast, please refer to “Notice Regarding Upward Revision to Forecasts for Full-Year Earnings and Dividends (Dividend Increase)”, announced today (February 12, 2026). * Notes (1) Significant changes in the scope of consolidation during the period: Yes New: 7 (Company Name): Kyoei Sangyo Co., Ltd. and six other companies (2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements : None (3) Changes in accounting policies, estimates, and retrospective restatement (a) Changes due to revision of accounting standards : None (b) Changes other than (a) : None (c) Changes in accounting estimates : None (d) Retrospective restatement : None (4) Number of shares outstanding (common stock) (a) Shares outstanding (including treasury shares) As of December 31, 2025: 52,486,836 As of March 31, 2025 57,404,236 (b) Treasury shares As of December 31, 2025: 4,827,764 As of March 31, 2025 4,847,842 (c) Average number of shares (quarterly consolidated during the period) Period ended December 31, 2025: 50,109,822 Period ended December 31, 2024: 52,547,921 Notes: 1. The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. The average number of shares (quarterly consolidated during the period) was calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. 2. As a result of the cancellation of treasury shares on August 18, 2025, the number of shares issued at the end of the fiscal year decreased by 4,917,400 shares. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or audit firm : None * Cautionary statement regarding forecasts of operating results and special notes (Caution regarding forward-looking statements) Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons. For conditions as assumption for earnings forecast and cautionary statement regarding use of the forecast, please see “1. Results of Operations, (3) Qualitative information on consolidated performance forecast” on page 6. (How to obtain supplementary materials on quarterly financial results) Materials for the earnings presentation (Japanese and English) will be posted on TDnet and our website today (February 12, 2026).
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- 1 - Index for Supplementary Information 1. Results of Operations .......................................................................................................... 2 (1) Overview of consolidated business performance ............................................................... 2 (2) Overview of financial condition ....................................................................................... 5 (3) Explanation of the consolidated earnings forecast and other forward-looking statements ...... 6 2. Quarterly Consolidated Financial Statements and Major Notes .................................................. 8 (1) Quarterly consolidated balance sheet .............................................................................. 8 (2) Quarterly consolidated statements of income and comprehensive income ......................... 10 (3) Notes to quarterly consolidated financial statements ...................................................... 12 (Notes to going concern assumptions) ........................................................................ 12 (Notes to significant change in shareholdersʼ equity) .................................................... 12 (Notes to the quarterly consolidated statement of cash flows) ....................................... 12 (Notes to segment information) ................................................................................. 13
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- 2 - 1. Results of Operations (1) Overview of consolidated business performance The following is an overview of consolidated business performance during the third quarter of the consolidated fiscal period under review. FY 2025/3 Q3 (April 1, 2024 – December 31, 2024) FY 2026/3 Q3 (April 1, 2025 – December 31, 2025) YoY Net sales Million yen 396,243 Million yen 445,475 Million yen 49,232 12.4％ Gross profit （Margin） 52,190 13.2％ 59,961 13.5％ 7,771 0.3pt 14.9％ － SG&A 34,134 40,511 6,377 18.7％ Operating income (Margin) 18,056 4.6% 19,449 4.4% 1,393 (0.2pt) 7.7% － Ordinary income 18,379 20,766 2,386 13.0% Profit before income taxes 18,462 31,317 12,855 69.6% Profit attributable to owners of parent 12,714 24,308 11,593 91.2% Exchange Rate (Average rate during the year period) Yen / US$ 152.57yen 148.74yen (3.83)yen － Net Sales In the electronic components business, inventory adjustments in the supply chain continued to ease, while the EMS* business performed well, centered on overseas production sites where capacity increase has been implemented. The information equipment business continued to record strong sales of PCs and security software for mobile devices. Sales of amusement equipment for both domestic and overseas markets remained robust in the others business. Furthermore, Kyoei Sangyo Co., Ltd. starts to contribute as a consolidated subsidiary as of Q2. As a result, net sales increased by 49,232 million yen year on year to 445,475 million yen. Note: Electronics Manufacturing Service: Provision of product development and manufacturing services on an outsourcing basis. Gross Profit In addition to overall sales growth, solid performance in relatively high-margin products and businesses increased the gross profit margin by 0.3 percentage points year on year, resulting in a year-on-year increase in gross profit of 7,771 million yen to 59,961 million yen. Operating income Selling, general and administrative expenses increased, driven by higher sales-related costs associated with overall sales growth, and increased fixed costs arising from a corporate acquisition, among other factors. Nevertheless, higher gross profit more than offset these increases, resulting in operating income rising by 1,393 million yen year on year to 19,449 million yen. Ordinary income Non-operating income and expenses improved, reflecting a decrease in foreign exchange losses and other factors, and ordinary income increased by 2,386 million yen year on year to 20,766 million yen.
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- 3 - Profit before income taxes Due to the recognition of extraordinary income, including a 7,594 million yen gain on bargain purchase from a corporate acquisition and 1,636 million yen in gains on sales of investment securities, profit before income taxes increased by 12,855 million yen year on year to 31,317 million yen. Profit attributable to owners of parent Profit attributable to owners of parent increased by 11,593 million yen year on year to 24,308 million yen, due to the recognition of income taxes – current. As noted above, net sales and income at all levels of profit, through profit attributable to owners of parent, increased year on year, contributing to sustained strong performance in the first half of the fiscal year. Business segment performance The following is a summary of business results by segment for the third quarter of the consolidated fiscal period under review. FY 2025/3 Q3 (April 1, 2024 – December 31, 2024) FY 2026/3 Q3 (April 1, 2025 – December 31, 2025) YoY Electronic components Net sales Segment income Million yen 346,212 13,568 Million yen 383,892 13,768 Million yen 37,679 199 10.9％ 1.5％ Information equipment Net sales Segment income 26,953 1,953 33,652 2,499 6,698 546 24.9％ 28.0％ Software Net sales Segment income 2,070 308 2,525 233 455 (74) 22.0％ (24.2％) Others Net sales Segment income 21,006 2,097 25,404 2,747 4,398 650 20.9％ 31.0％ Total Net sales Segment income 396,243 18,056 445,475 19,449 49,232 1,393 12.4％ 7.7％ Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total. (a) Electronic components (Development, manufacture and sale of semiconductors, general electronic components and other products, the electronics manufacturing service EMS, and other activities) While inventory adjustments in the supply chain continued to ease, the components sales business faced uneven conditions, as the supply-demand balance tightened from the latter half of the previous year for certain products, including automotive semiconductors and commodity memory products. Meanwhile, the consolidation of Kyoei Sangyo led the business to maintain overall growth. In the EMS business, aggressive capital expenditures focused on overseas sites proved effective, and sales of products, including medical and air-conditioning equipment, performed well. As a result, net sales increased 10.9% year on year to 383,892 million yen and segment income increased 1.5% year on year to 13,768 million yen.
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- 4 - (b) Information equipment (Sales of finished products such as PCs, PC peripherals, home electric appliances, photograph and imaging products, original brand products, and other products) In the PC sales business, sales to educational institutions remained strong, supported by renewal demand from the second phase of the GIGA School program and other factors. Sales to mass retailers also performed well, driven by new product launches, including AI PCs from major PC manufacturers, as well as by replacement demand following the end of Windows 10 support. In addition, sales of security software for mobile devices increased, as the introduction of new products contributed to higher unit prices. As a result, net sales increased 24.9% year on year to 33,652 million yen and segment income increased 28.0% year on year to 2,499 million yen. (c) Software (Production of computer graphics, planning and development of amusement products, and other activities) Sales performed well in computer graphics production for games and amusement equipment, as efforts to increase orders led to the acquisition of several large-scale projects and other gains. Although profitability stabilized from Q2 onward, the operating loss incurred in the first quarter continued to weigh on performance. As a result, net sales increased 22.0% year on year to 2,525 million yen and segment income decreased 24.2% year on year to 233 million yen. (d) Others (Repair and supports for electronics equipment, manufacture and sales of amusement equipment, and sales of sports goods, and other activities) The recycling business for PC products and related peripherals continued to perform strongly. In contrast, the amusement equipment business, which had benefited from robust front-loaded orders for the U.S. market since the latter half of the previous consolidated fiscal year, began to level off slightly in the current half. As a result, net sales increased 20.9% year on year to 25,404 million yen and segment income increased 31.0% year on year to 2,747 million yen. <Reference>Financial results: 1. Financial highlights(3months) FY 2025/3 Q3 (October 1, 2024 – December 31, 2024) FY 2026/3 Q3 (October 1, 2025 – December 31, 2025) YoY Net Sales M illion yen 137,178 M illion yen 156,516 Million yen 19,337 14.1％ Gross profit (Margin) 18,056 13.2% 20,416 13.0％ 2,359 (0.2pt) 13.1％ － Operating income （Margin） 6,554 4.8％ 6,400 4.1％ (154) (0.7％) (2.4％) － Ordinary income 7,101 7,323 221 3.1％ Profit before income taxes 7,218 11,598 4,380 60.7％ Profit attributable to owners of parent 4,773 9,275 4,502 94.3％
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- 5 - 2. By segment FY 2025/3 Q3 (October 1, 2024 – December 31, 2024) FY 2026/3 Q3 (October 1, 2025 – December 31, 2025) YoY Electronic components Net sales Segment income Million yen 120,345 4,888 Million yen 136,103 4,800 Million yen 15,757 (88) 13.1％ (1.8％) Information equipment Net sales Segment income 8,320 561 12,080 883 3,760 321 45.2％ 57.3％ Software Net sales Segment income 599 52 846 68 247 16 41.4％ 31.8％ Others Net sales Segment income 7,913 1,002 7,485 624 (427) (378) (5.4％) (37.7％) Total Net sales Segment income 137,178 6,554 156,516 6,400 19,337 (154) 14.1％ (2.4％) Note: “Segment income” shows unadjusted figures for each business segment and adjusted figures for the total. (2) Overview of financial condition Assets, liabilities and net assets Total assets as of December 31, 2025 increased by 37,499 million yen from March 31, 2025, to 343,171 million yen. Current assets increased by 29,798 million yen from march 31, 2025, to 286,963 million yen. This is primarily due to an increase of 19,575 million yen in merchandise and finished goods that partly reflected the consolidation of Kyoei Sangyo Co., Ltd. as a Group company. Non-current assets increased by 7,700 million yen from March 31, 2025, to 56,208 million yen. This is primarily due to an increase of 2,636 million yen in property, plant and equipment, and 3,006 million yen in investment securities that partly reflected the consolidation of Kyoei Sangyo Co., Ltd. as a Group company. Liabilities increased by 29,179 million yen from March 31, 2025, to 168,472 million yen. This was primarily due to increases of 10,973 million yen in notes and accounts payable – trade and 14,692 million yen in short-term loans payable. Net assets increased by 8,320 million yen from March 31, 2025, to 174,699 million yen. This was mainly attributable to the recognition of profit attributable to owners of parent.
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- 6 - (3) Explanation of the consolidated earnings forecast and other forward-looking statements As announced today in the “Notice Regarding Upward Revision to Forecasts for Full-Year Earnings and Dividends (Dividend Increase)”, we have upwardly revised the consolidated earnings forecast and dividend forecast for the fiscal year ending March 31, 2026, as follows. For details, please refer to this document. (a) Revisions to consolidated earnings forecasts Revisions to consolidated earnings forecasts for the fiscal year ended March 31,2026 （from April 1, 2025 to March 31, 2026） Net Sales Operating income Ordinary income Profit attributable to owners of parent Earnings per share Million yen Million yen Million yen Million yen Yen Previous forecast（A） (Announced on November 6, 2025) 595,000 25,500 25,500 26,000 524.78 Revised forecast（B） 620,000 27,000 28,000 28,500 575.24 Difference (B-A) 25,000 1,500 2,500 2,500 50.46 Percent change 4.2％ 5.9％ 9.8％ 9.6％ 9.6% (Reference) Results for the fiscal year ended March 31, 2025 * 547,779 23,601 22,593 17,083 325.08 Note: The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. Earnings per share for the previous fiscal year is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year. (b) Revision of dividend forecast Revision of the dividend forecast for the fiscal year ending March 31, 2026 （from April 1, 2025 to March 31, 2026） Dividend per share Q2 Year-end Full year Yen Yen Yen Previous forecast (Announced on August 7, 2025) 60.00 (Ordinary dividend 55.00) (Extraordinary dividend 5.00) 120.00 (Ordinary dividend 110.00) (Extraordinary dividend 10.00) Revised forecast 70.00 (Ordinary dividend 55.00) (Extraordinary dividend 15.00) 130 .00 (Ordinary dividend 110.00) (Extraordinary dividend 20.00) Dividends for the current fiscal year 60.00 (Ordinary dividend 55.00) (Extraordinary dividend 5.00) Dividends for the previous fiscal year (Fiscal year ended March 31, 2025) * 55.00 55.00 110.00 Note: The Company conducted a two-for-one stock split of its common stock effective October 1, 2024. Although the actual interim dividend per share for the previous fiscal year was 110 yen, the above table is calculated on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
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- 7 - 【Reference: Revision of other related indicators】 Capital efficiency Shareholder Returns ROE Consolidated dividend payout ratio DOE Total return ratio Previous forecast [After adjustment for the gain on bargain purchase] 15.0% 22.9% [31.6％] 3.9% [4.0％] 77.6% Revised forecast [After adjustment for the gain on bargain purchase] 16.5% 22.6% [30.8％] 4.2% [4.3％] 72.4% (Reference) Results for the fiscal year ended March 31,2025 10.8% 33.8% 4.2% 33.8％ ‟Medium-Term Management Plan 2027” Targets (Announced on November 6, 2024) 12.0% or higher 30%~40% 4.0% － The latest consolidated earnings forecast incorporates 7.6 billion yen gain on bargain purchase associated with the integration of Kyoei Sangyo Co., Ltd. as a consolidated subsidiary following the tender offer for its common shares executed in July 2025. While the table above presents shareholder return indicators for reference, the consolidated dividend payout ratio would be 30.8% and DOE 4.3% if the dividend forecast after the upward dividend revision is recalculated to reflect revision to income on a real basis, excluding the gain on bargain purchase that does not involve a cash-in. Meanwhile, the total return ratio would come to 72.4% if the repurchase and cancellation of own shares conducted in August 2025 (14.4 billion yen in acquisition amount for a total of 4,920,000 shares acquired) are taken into account.
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- 8 - 2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly consolidated balance sheet (Million yen) Fiscal year ended March 2025 (As of March 31, 2025) Third quarter ended December 2025 (As of December 31, 2025) ASSETS Current assets Cash and deposits 80,188 82,068 Notes receivable – trade 892 536 Electronically recorded monetary claims – operating 7,155 10,914 Accounts receivable – trade 106,091 106,966 Securities 150 144 Merchandise and finished goods 35,906 55,482 Work in process 1,973 3,486 Raw materials and supplies 13,893 15,883 Other 11,148 11,682 Allowance for doubtful accounts (236) (202) Total current assets 257,164 286,963 Non-current assets Property, plant and equipment Buildings and structures, net 9,839 11,843 Machinery, equipment and vehicles, net 11,034 11,439 Tools, furniture and fixtures, net 1,217 1,273 Land 5,940 6,167 Construction in progress 413 359 Total property, plant and equipment 28,445 31,082 Intangible assets Software 1,694 1,915 Other 44 40 Total intangible assets 1,738 1,956 Investments and other assets Investment securities 12,556 15,562 Deferred tax assets 1,344 1,235 Distressed receivables 4,815 4,846 Other 4,481 6,494 Allowance for doubtful accounts (4,873) (4,969) Total investments and other assets 18,323 23,169 Total non-current assets 48,507 56,208 Total assets 305,671 343,171
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- 9 - (Million yen) Fiscal year ended March 2025 (As of March 31, 2025) Third quarter ended December 2025 (As of December 31, 2025) LIABILITIES Current liabilities Notes and accounts payable - trade 73,340 84,313 Short-term loans payable 14,890 29,583 Current portion of bonds payable 5,000 200 Accrued expenses 8,145 7,215 Income taxes payable 4,018 3,081 Provision for directorsʼ bonuses 428 75 Other 11,881 17,957 Total current liabilities 117,704 142,428 Non-current liabilities Bonds payable 5,000 5,300 Long-term loans payable 5,500 6,887 Deferred tax liabilities 4,115 5,892 Provision for directorsʼ retirement benefits 99 99 Net defined benefit liability 2,572 2,709 Asset retirement obligations 698 954 Other 3,601 4,199 Total non-current liabilities 21,587 26,043 Total liabilities 139,292 168,472 NET ASSETS Shareholdersʼ equity Capital stock 12,133 12,133 Capital surplus 14,885 14,767 Retained earnings 121,553 130,165 Treasury shares (5,579) (9,908) Total shareholdersʼ equity 142,993 147,158 Accumulated other comprehensive income Valuation difference on available-for-sale securities 3,263 4,620 Deferred gains or losses on hedges (28) (33) Foreign currency translation adjustment 18,959 22,012 Remeasurements of defined benefit plans 1,031 945 Total accumulated other comprehensive income 23,225 27,545 Non-controlling interests 160 (3) Total net assets 166,379 174,699 Total liabilities and net assets 305,671 343,171
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- 10 - (2) Quarterly consolidated statements of income and comprehensive income (Million yen) Q3 ended December 2024 (April 1, 2024 – December 31, 2024) Q3 ended December 2025 (April 1, 2025 – December 31, 2025) Net sales 396,243 445,475 Cost of sales 344,053 385,513 Gross profit 52,190 59,961 Selling, general and administrative expenses 34,134 40,511 Operating income 18,056 19,449 Non-operating income Interest income 999 822 Dividends income 219 385 Commission fee 92 93 Foreign exchange gains － 307 Share of profit of entities accounted for using equity method － 54 Other 782 622 Total non-operating income 2,093 2,284 Non-operating expenses Interest expenses 602 587 Share of loss of entities accounted for using equity method 34 － Foreign exchange losses 882 － loss on net monetary position 139 176 Other 111 204 Total non-operating expenses 1,770 968 Ordinary income 18,379 20,766 Extraordinary income Gain on sales of non-current assets 37 22 Gain on sales of investment securities 276 1,636 Gain on step acquisitions － 466 Gain on bargain purchase － 7,594 Other 3 962 Total extraordinary income 317 10,683 Extraordinary loss Loss on retirement of non-current assets 7 4 Loss on valuation of investment securities 219 105 Other 8 20 Total extraordinary loss 235 131 Profit before income taxes 18,462 31,317 Income taxes - current 4,223 6,397 Income taxes - deferred 1,814 478 Total income taxes 6,037 6,875 Profit 12,424 24,442 Profit attributable to owners of parent 12,714 24,308 Profit (loss) attributable to non-controlling interests (290) 133
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- 11 - (Million yen) Q3 ended December 2024 (April 1, 2024 – December 31, 2024) Q3 ended December 2025 (April 1, 2025 – December 31, 2025) Other comprehensive income Valuation difference on available-for-sale securities 1,003 1,567 Deferred gains or losses on hedges (16) (4) Foreign currency translation adjustment 3,752 3,162 Remeasurements of defined benefit plans, net of tax 603 (86) Share of other comprehensive income of associates accounted for using equity method 23 (104) Total other comprehensive income 5,366 4,535 Comprehensive income 17,790 28,977 Comprehensive income attributable to owners of parent 18,077 28,628 Comprehensive income attributable to non-controlling interests (286) 349
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- 12 - (3) Notes to quarterly consolidated financial statements (Notes to going concern assumptions) Not applicable (Not es to significant change in shareholders ʼ equity) ( Acquisition of own shares) The Company acquired 4,917,400 treasury shares based on the resolutions at the Board of Directors meeting held on August 7, 2025. Treasury shares increased by 14,447 million yen during this period due to the acquisition of treasury shares mentioned above. (Cancellation of treasury shares) The Company cancelled 4,917,400 shares on August 18, 2025, based on the resolution at the Board of Directors meeting held on August 7, 2025. This resulted in a decrease of 149 million yen in capital surplus, 9,947 million yen in retained earnings, and 10,096 million yen in treasury shares as of December 31, 2025. As a result of the foregoing factors, as of December 31, 2025, capital surplus stood at 14,767 million yen, retained earnings at 130,165 million yen, and treasury shares at 9,908 million yen. (Notes to the quarterly consolidated statement of cash flows) The Company has not prepared a quarterly consolidated statement of cash flows for the third quarter under review. Note that depreciation (inclusive of amortization related to intangible assets excluding goodwill) and amortization of goodwill for the third quarter under review are as shown below. (Million yen) Third quarter ended December 2024 (April 1, 2024 – December 31 ,2024) Third quarter ended December 2025 (April 1, 2025 – December 31, 2025) Depreciation 3,239 3,870 Amortization of goodwill 16 －
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- 13 - (Notes to Segment information) I For Q3 ended December 2024 (April 1, 2024 – December 31, 2024) 1. Information about net sales and income (loss) by reportable segments (Million yen) Reportable segments Adjustment (Note 1) Consolidated (Note 2) Electronic Components Information Equipment Software Others Total Net sales: Sales to external customers 346,212 26,953 2,070 21,006 396,243 － 396,243 Inter-segment sales or transfers 2,691 7,505 911 4,263 15,373 (15,373) － Total 348,904 34,458 2,982 25,270 411,616 (15,373) 396,243 Segment income 13,568 1,953 308 2,097 17,927 128 18,056 Notes: 1. Adjustment in segment income of 128 million yen includes 128 million yen for elimination of inter-segment trade. 2. Segment income is adjusted for operating income on the quarterly consolidated statements of income and comprehensive income. ２. Information regarding impairment loss on non-current assets or on goodwill and other matters by reportable segment (Material impairment loss pertaining to non-current assets) Not applicable (Material change in goodwill amount) Not applicable (Material gain on bargain purchase) Not applicable II For Q3 ended December 2025 (April 1, 2025 – December 31, 2025) 2. Information about net sales and income (loss) by reportable segments (Million yen) Reportable segments Adjustment (Note 1) Consolidated (Note 2) Electronic Components Information Equipment Software Others Total Net sales: Sales to external customers 383,892 33,652 2,525 25,404 445,475 － 445,475 Inter-segment sales or transfers 3,135 11,321 747 3,824 19,029 (19,029) － Total 387,027 44,974 3,273 29,229 464,504 (19,029) 445,475 Segment income 13,768 2,499 233 2,747 19,249 200 19,449 Notes: 1. Adjustment in segment income of 200 million yen includes 200 million yen for elimination of inter-segment trade. 2. Segment income is adjusted for operating income on the quarterly consolidated statements of income and comprehensive income.
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- 14 - ２. Information regarding impairment loss on non-current assets or on goodwill and other matters by reportable segment (Material impairment loss pertaining to non-current assets) Not applicable (Material change in goodwill amount) Not applicable (Material gain on bargain purchase) A 7,594 million yen gain on bargain purchase was recorded in the electronic components business. This gain arose from the Companyʼs acquisition of shares in Kyoei Sangyo Co., Ltd. on July 18, 2025.