We focused on establishing and promoting a sales structure in anticipation of the termination of support for Windows10 scheduled for October 2025 and replacement demand for the GIGA School devices, which will become fully fledged from the fiscal year under review. We also actively engaged in corporate data-center and IT infrastructural projects and worked to propose servers and networking products. Furthermore, we focused on capturing demand by strengthening our proposals for iKAZUCHI, a portal for managing subscriptions, which we are focusing on. The client PC is driving earnings, driven by rising demand, particularly among large corporations. In for corporates, demand increased mainly in the telecommunications, service, and manufacturing industries. Sales also expanded in government agencies by winning large-scale IT investment projects. In the education sector market, sales grew significantly due to replacement demand for school PC and the acquisition of advance procurement projects for the second phase of the GIGA School. In the consumer market, sales of PC and monitors to mass retailers were strong, resulting in a year-on-year increase in sales.

As a consequence, net sales in this segment stood at 1.123 trillion yen, up 25.6% year-on-year, and operating income was 34.045 billion yen, up 20.5% year-on-year.

In Machine tools division, domestic orders continued from some booming industries, such as shipbuilding and energy-related industries. In the mainstay aircraft industry, orders recovered mainly in the domestic and U.S. markets, while orders in the Chinese market increased compared with the previous year due to the impact of the weak yen. In terms of net sales, meanwhile, we focused on inventory sales, which is a short delivery period, but sales decreased compared to the previous fiscal year, and profits also struggled due to an increase in costs. In Automatic Machinery Division, both sales and profits declined due to an increase in the number of designs and an impact on the number of vehicles produced.

As a consequence, net sales in this segment decreased 2.4% from the same period of the previous fiscal year to 12.895 billion yen and operating income decreased 17.4% to 852 million yen.