As market PC prices rose due to soaring memory prices accompanying the expansion of AI demand, we worked to stabilize supply prices through strategic procurement before price increases. At the same time, we leveraged the customer base cultivated through Windows 10 end of support (EOS) response and GIGA School terminal replacement demand to promote project creation and proposals for related products, working to capture sustainable demand. Additionally, to support DX promotion in each region, we advanced the development of new technology vendors and the development and deployment of original services, while also focusing on expanding subscription business utilizing the subscription management portal "iKAZUCHI."
　By market, although the corporate market experienced a reactionary decline in PC demand following Windows 10 EOS, results exceeded the same period of the previous year due to the acquisition of large-scale projects centered on servers. For government agencies, the acquisition of numerous PC projects contributed to results exceeding the same period of the previous year. For education, although the demand peak for GIGA School Phase 2 has passed, results exceeded the same period of the previous year due to the acquisition of large-scale projects for high school GIGA School and school administration-related projects. In the consumer market as well, both e-commerce and mass retailers exceeded the results of the same period of the previous year. On the other hand, operating profit fell below the same period of the previous year in both profit amount and profit margin, as we were partially unable to pass on increases in raw material and procurement prices to selling prices, in addition to the impact of large-scale project orders.

　As a result, net sales for this business segment were 310,098 million yen (up 8.1% year-on-year), and operating profit was 7,461 million yen (down 21.4% year-on-year).

In Machine tools division, orders increased significantly compared to the same period of the previous year, as orders from the shipbuilding and energy industries continued to perform well, and recovery continued in the mainstay aircraft industry. On the other hand, net sales decreased compared to the same period of the previous year due to a reactionary decline from large machine sales recorded in the same period of the previous year and the prospect that sales for the current period will be concentrated in the second quarter. Accordingly, operating profit also fell below the same period of the previous year. In Automatic Machinery Division, both net sales and operating profit decreased compared to the same period of the previous year due to a decline in unit sales of main products compared to the previous year.

　As a result, net sales for this business segment were 3,050 million yen (down 21.1% year-on-year), and operating profit was 236 million yen (down 37.7% year-on-year).