The global economy remained uncertain during the nine months of the fiscal year ending March 31, 2025.
This was despite a gradual recovery and reflected such ongoing geopolitical risks as the conflict in Ukraine and a prolonged slowdown in Chinese economic growth.

A recovery in the semiconductor, electronic device, and printed circuit board markets against this backdrop was only gradual. This was because although these markets benefited from stable operations worldwide of PCs and smartphones, related capital investments remained sluggish.
While the server market experienced new demand driven by generative AI, investment in existing data center servers was again constrained and postponed. Although the flat panel display market saw a gradual recovery in demand for organic light-emitting diode (OLED) displays for smartphones and tablets, LCD panel manufacturers continued to adjust production in response to persistently weak demand. In the visual imaging market, movie shortages owing to Hollywood strikes and other factors slowed cinema operations, temporarily shrinking investment appetites.
General imaging market conditions remained firm amid a rising need for advanced video production for events and other activities.

The average exchange rate during the term was \152 to the dollar, down \9 from a year earlier.

Consolidated net sales decreased 3.3% year on year, to \128,099 million. Operating profit fell 27.5%, to \7,395 million. Ordinary profit was down 17.1%, to \10,461 million. Profit attributable to owners of parent dropped 33.9%, to \5,747 million.

UV Lamps
Sales were up despite a slow recovery in final demand for such products as PCs and smartphones.
This was due primarily to higher semiconductor-related demand growth through solid operations of installed equipment on robust generative AI demand in semiconductor back-end processes.
A weaker yen also contributed to sales.

OA Lamps
Segment sales increased on steady demand following the end of inventory adjustments among set manufacturers and the weaker yen.

Optical Equipment Lamps
While LCD panel revenues were down, higher sales for OLED displays for smartphones and tablets and the weaker yen drove overall sales growth.

Optical Equipment (Lithography Equipment)
Demand was weak for servers for existing data centers and for such final products as PCs, smartphones, and electronic devices. After excluding generative AI-related areas, investments in advanced packaging substrates and printed circuit boards were again constrained or postponed.
Segment sales thus declined owing to reduced stepper and direct imaging lithography equipment revenues.

Optical Equipment (Others)
Segment sales fell from maintenance services revenue declining as a result of lower operations of EUV light sources for EUV lithography mask inspections. Earnings fell despite efforts to control selling, general, and administrative expenses through investment project reviews.
The key downside factors were a weaker product mix from lower lithography equipment sales and higher upfront development investments required to support growth, particularly in Optical Equipment (Lithography Equipment).

Industrial Processes business sales therefore declined 9.5%, to \54,627 million. Operating profit dropped 11.6%, to \7,101 million.

Projector Lamps
Sales of xenon lamps for cinema projectors were down owing to a decline in cinema operations that stemmed largely from movie shortages as a result of Hollywood strikes. Sales of lamps for general imaging projectors declined because of a shift to solid-state light sources. Segment sales thus fell.

Imaging Equipment (Cinema Projectors)
Sales of digital cinema projectors decreased owing to a temporary decline in investment appetites attributable to movie shortages stemming from the Hollywood strikes. Segment sales rose, however, as a result of the weaker yen.

Imaging Equipment (General Imaging Projectors)
While decreases in large deals posted in the previous second quarter detracted from revenues, demand remained steady for advanced video production, particularly for events. This factor and the weaker yen increased segment sales.

Earnings declined for the term, owing primarily to one-time inventory write-down losses from product lineup reviews to improve the earnings structure as part of business portfolio revamping. Higher selling, general, and administrative expenses, stemming largely from increased personnel costs, also fueled the decrease.

Visual Imaging business sales therefore increased 1.9%, to \60,384 million. Operating profit dropped 68.3%, to \1,456 million.

Sales increased on higher demand for sodium lamps for horticulture. This growth boosted profitability, as the Company had previously recorded inventory write-down losses for these offerings. Earnings also benefited from cost control measures, including concentrating investments in promising projects.

Life Sciences business sales therefore increased 11.9%, to \4,494 million. There was an operating loss of \795 million, compared with an operating loss of \1,676 million in the previous corresponding period.

Revenues declined due to lower sales of laser modules for industrial applications and others. Earnings were up, however, as cost controls from investment project reviews improved profitability.

Photonics Solutions business sales thus declined 4.0%, to \7,617 million. There was an operating loss of \330 million, compared with an operating loss of \845 million in the previous corresponding period.