W-SCOPE (6619) investor relations material

Executive summary

• Q2 FY Jan. 2027 sales rose 32.9% year-over-year to 1,928 million JPY, driven by strong consumer application shipments in the Separator business and steady IEM orders.

• Operating loss improved to -1,388 million JPY from -2,868 million JPY year-over-year, reflecting cost reduction efforts, though the Separator business still faced marginal profit below fixed costs.

• Non-operating income included 84 million JPY in R&D subsidies and 42 million JPY in FX gains; equity method investment loss improved due to WCP profit recovery.

• No extraordinary items were recorded in the quarter.

• Net income attributable to owners was negative ¥5,429 million, compared to negative ¥3,104 million last year.

Financial highlights

• Sales increased to 1,928 million JPY in Q2 FY Jan. 2027, up 477 million JPY year-over-year (133.0%).

• EBITDA loss narrowed to -638 million JPY from -2,075 million JPY year-over-year.

• Net loss improved to -3,104 million JPY from -5,429 million JPY year-over-year.

• Depreciation and R&D expenses were 750 million JPY and 282 million JPY, respectively.

• CAPEX was 169 million JPY, a significant reduction year-over-year.

Outlook and guidance

• H1 and full-year results are expected to remain on track, supported by ongoing cost reduction.

• H2 ESS shipments are forecast to outperform initial targets, with EV and ESS contributions expected to rise.

• IEM shipments paused in Q2 after strong Q1 demand, with deliveries set to resume in Q3.

• Geopolitical risks in Iran may increase manufacturing costs.

• Full-year net sales forecast is ¥6,000 million, up 65.2% year-over-year.