At SENSHU ELECTRIC, one of Japan's leading general trading companies specializing in electric wires, the process of short-term earnings trends shifting from an adjustment phase to a recovery phase is becoming evident. The Company’s sales are classified by client category into Electrical Materials, Electrical Facilities and Direct Demand, and by product category into FA Cables, Power Cables, Covered Cables, Other Cables and Non-Cables. In FY10/2025, demand recovery was delayed for semiconductor manufacturing equipment and machine tools, which fall under Direct Demand, while shipment volumes also remained sluggish in construction-related applications centered on Power Cables by product category, due to construction delays caused by soaring material costs and labor shortages. Meanwhile, in Q1 to Q2 (November-April) FY10/2026, in addition to demand recovery in Direct Demand, a sharp rise in the price of copper, the main raw material for electric wires, boosted sales of Power Cables and other products, resulting in increases in both sales and earnings. In addition, the Company has revised up its Company forecast for FY10/2026, and steady progress can be seen toward achieving the management targets set for FY10/2027, the final year of its medium-term management plan. Going forward, the Company plans to raise the sales composition ratios of Direct Demand, which has relatively high profitability, and Non-Cables, which are less susceptible to fluctuations in copper prices, while also strengthening shareholder returns, aiming to achieve sustainable growth and improve capital efficiency.

Sanyo Homes, a comprehensive “housing and lifestyle” proposal company engaged in housing construction contracting and other operations, as well as the development and sale of condominiums, is expected to continue achieving growth in sales and operating profit. Under the slogan “Housing that makes people and the Earth happy,” the Company promotes initiatives to address social issues related to housing and lifestyles, based on the business concept of “Eco & Safety,” which aims to protect the global environment and safeguard people’s safety and peace of mind. In FY03/2026 results, the Condominium Business, which is responsible for the development and sale of condominiums, achieved substantial increases in sales and profit. Looking toward FY03/2027, the Housing Business, which is responsible for housing construction contracting and other operations, is expected to turn profitable. As a result, over the period of the Medium-Term Management Plan (FY03/2025-FY03/2027), using FY03/2024 results as the starting point, CAGR is expected to reach 8.1% in terms of sales and 34.1% in terms of operating profit, representing a steady trend of sales and profit growth. In the Company forecast for FY03/2027, although the Condominium Business is expected to post an increase in sales but a decline in profit due to the incorporation of a gross profit margin based on conservative assumptions, the impact of the Housing Business turning profitable is expected to be greater. Looking toward FY03/2028 and beyond, the Company says it will continue acquiring new condominium sites, mainly in the Tokyo metropolitan and Kinki areas, among others, with the aim of promoting the medium- to long-term growth of the Condominium Business, its traditional earnings source, and strengthening future income sources. In the Housing Business, meanwhile, there remains room for further improvement in earnings, backed by an improvement in order trends and initiatives to enhance profitability, and the Company’s earnings base is expected to broaden.

NAKAMOTO PACKS, a high-performance packaging manufacturer with strengths in coating and lamination processing, is entering a phase of transforming its earnings structure by expanding into high-value-added domains such as IT & Industrial Materials, environmentally friendly packaging materials and components for secondary battery, while maintaining Food Packaging & Containers as a stable earnings base. In Food Packaging & Containers, the Company secures resilient earnings backed by demand close to daily necessities, including packaging materials for dairy products, processed marine products and frozen foods. Meanwhile, expansion in IT & Industrial Materials, including high-performance films for semiconductors, electronic components and mobile devices, is increasingly lifting the operating profit margin, and the Company has achieved record highs in sales and at each profit level for two consecutive years. The Company also aims to improve profitability and achieve sustainable growth through higher value-added products in Food Packaging & Containers and the future launch of components for secondary battery. While components for secondary battery are expected to take time before full-scale earnings contribution, over the medium to long term they could significantly broaden the Company’s growth expectations. Although raw materials price trends require attention and may affect earnings in the short term, the Company aims to minimize the impact of changes in the external environment through environmentally friendly packaging materials, thinner materials, paper-based materials and water-based materials.