Hirano Tecseed (hereinafter HT) reported FY25 Q1 OP of ¥821mil (+181.1-% YoY) on sales of ¥10,719mil (-11.4% YoY), which resulted in an OPM of 7.7%, a significant improvement from FY24 Q1’s OPM of 2.4%. Sales were largely in line with expectation on the back of progress in working through order backlogs, especially in C&LM for secondary LiB. Given successful passing through of cost increases to customers in the C&LM segment, FY25 1H guidance was revised from OP of ¥750mil (-26.8% YoY) on sales of ¥16,750mil (-31.3% YoY) to OP of ¥1,000mil (-2.4% YoY) on unchanged sales. The full-year FY25 guidance remained unchanged at OP of ¥1,500mil (-10.8% YoY) on sales of ¥33,500mil (-30.7% YoY). HT anticipates FY25 revenues and OP will decline in the C&LM segment due to ongoing uncertainty surrounding US tariff policies and shifts in the global EV markets