The global economy remained uncertain during the first quarter of the fiscal year ending March 31, 2026, because of the worldwide impact of U.S. tariffs, Chinese economic trends, exchange rate trends, and ongoing geopolitical risks.

　Against this backdrop, the semiconductor, electronic device, and printed circuit board markets saw stable operations supported by a moderate recovery in global demand for PCs, smartphones, and other products, although related capital investment remained restrained. While the server market experienced new demand driven by generative AI, investment in existing data center servers was again constrained and postponed. While the flat panel display market experienced higher demand for organic light-emitting displays for smartphones and tablets, liquid crystal display panel manufacturers operated at low levels amid lackluster demand for their offerings. In the visual imaging market, cinema attendances remained sluggish amid diversifying entertainment options, offsetting the impact of resolving movie shortages stemming from the Hollywood strike and recovering investment appetites. General imaging market conditions remained firm amid a rising need for advanced video production for events and other activities.

　The average value of the yen against the U.S. dollar during the first quarter of the fiscal year was \145, a year-on-year appreciation of \10.

　Consolidated net sales increased 2.2% year on year, to \38,356 million. Operating profit increased 182.5%, to \968 million. Ordinary profit increased 10.1%, to \1,606 million. However, the Company posted a loss attributable to owners of parent of \2,827 million, compared with a profit attributable to owners of parent of \297 million a year earlier.

UV Lamps
　Notwithstanding a stronger yen, demand recovered steadily for such final products as personal computers and smartphones. Supporting this recovery was demand for generative AI semiconductor-related products and solid installed equipment utilization, which contributed to higher revenues and segment sales.

OA Lamps
　Segment earnings decreased despite favorable market conditions, reflecting a higher yen.

Optical Equipment Lamps
　Steady demand in the flat panel display market for OLED displays for smartphones and tablets boosted revenues and segment sales.

Optical Equipment (Lithography Equipment)
　Demand again recovered steadily for personal computers, smartphones, and other final products, increasing sales of direct imaging lithography equipment. At the same time, while demand rose for generative AI semiconductors related to advanced package substrates, investments were constrained or postponed owing to sluggish demand from existing data centers, resulting in lower stepper revenues and segment sales.

Optical Equipment (Others)
　While maintenance services revenue for EUV light sources for EUV lithography mask inspections decreased, revenues rose for photo-alignment equipment for flat panel displays, boosting segment sales.

　Earnings declined, however, owing to higher upfront investments related to digital lithography technology systems.

　Industrial Processes business sales therefore increased 1.5%, to \15,824 million. Operating profit dropped 68.9%, to \326 million.

Projector Lamps
　Sales of xenon lamps for cinema projectors were down owing to sluggish cinema operations and an accelerating shift toward solid-state light sources. Revenues from lamps for general imaging projectors also declined with solid-state light source uptakes. A stronger yen also fueled a segment sales downturn.

Cinema Projectors
　Demand for replacement models recovered on investment appetites recovering after the Hollywood strikes, boosting digital cinema projector revenues and segment sales.

General Imaging Projectors
　While demand remained steady for advanced visual production, particularly for events, a stronger yen reduced segment sales.

　Earnings were up as the loss on valuation of inventories was lower than a year earlier and profitability improved on a product portfolio review.

　Visual Imaging business sales therefore increased 4.1%, to \18,303 million. Operating profit was \352 million, from an operating loss of \474 million in the previous corresponding period.

　Overall revenues were again solid, boosting segment sales. Earnings increased as strategic selection of investment targets in new projects improved profitability.

　Life Sciences business sales therefore increased 3.1%, to \1,592 million. Operating profit was \114 million, from an operating loss of \171 million in the previous corresponding period.

　Revenues declined due to lower sales of devices for industrial applications and others. Earnings were up, however, as focused selection and concentration of projects improved profitability.

　Photonics Solutions business sales thus declined 8.8%, to \2,325 million. Operating profit was \227 million, from an operating loss of \59 million in the previous corresponding period.