Did the sales and operating income in Q2 fall below your expectations?

Both sales and operating income were below our expectations. The Positioning Business fell short of the plan, while the Eye Care Business performed as expected.

Will you maintain the plan for sales, operating income, and SGA ratio in the final year of Mid-Term Business Plan 2025?

Yes. Currently, there are no changes to the plan though we review this in light of market conditions. The Positioning Business faces challenges in achieving the plan, while the Eye Care Business is expected to meet it with confidence.

The current exchange rate is weaker than Mid-Term Business Plan exchange rate assumptions (1 USD = 130 JPY, 1 EUR = 135 JPY). What are your thoughts on the target figures excluding the effects of FX?

We are checking the status of achieving our sales and operating income targets based on the current exchange rate.

Has the recovery of IT Construction been led by the aftermarket?

Q2 sales in the aftermarket increased by a few percent YoY, excluding the effects of FX. In the second half of the year, there are some factors that could cause fluctuations, such as the pace of interest rate reductions in the U.S., but we expect this trend to continue.

Will adjustments continue regarding OEM?

We see challenging conditions for OEM, partly due to downward revisions in the performance outlook of construction machinery manufacturers. However, as the aftermarket, which is sensitive to market changes, is already recovering, we anticipate that OEM will also move toward recovery after a certain time lag.

Regarding the downward revision of the full-year outlook, you mentioned IT Agriculture as the main factor. Is the decline in sales substantial?

The decline in IT Agriculture sales is a primary factor in the downward revision of the Positioning Business. Due to low grain prices and persistently high interest rates in the U.S., farmers’ purchasing appetite remains weak.

What is the background of the delay in the introduction of new products for surveying instruments?

The new product was scheduled to be released in the latter half of the first half, but improvements were needed in terms of quality. This new product is scheduled to be released in the second half of the year.

Could you give us an update on the timeline for growth investments this fiscal year?

We achieved ¥700 million in the first half and expect ¥2.3 billion in the second half, for a total of ¥3.0 billion this fiscal year.

Could you explain the reasons for expected profit improvement in the second half, even with the rise in costs from growth investments?”

Profit improvement is driven by sales growth and increased production efficiency. We also have visibility into specific projects.