It is now time to begin the Nippon Sanso Holdings Corporation Earnings Call for FYE 2027 Q1. Thank you very much for taking time out of your busy schedule to attend today. My name is Ishimoto from the IR Department of the Group Finance and Accounting Office, and I will be the moderator for this conference. Thank you very much for your cooperation. I would like to give you some information about today's conference. First of all, the conference materials are the financial results, Tanshin, and earnings call reference that we have just released. I would like all the participants to have them at hand. Next, we have the three main presenters today, Watanabe, President and CEO, and Kubo, Executive Officer, Group Finance and Accounting Office, and CFO. Takeshi Miki , Senior Executive Officer and CSO, Group Sustainability Management Office. Sawa, Executive Officer, Group Business Management Office.
Yoshida, General Manager of Accounting, and Kajiyama, GM of IR, also in attendance. As for today's program, at first, Watanabe, President and CEO, and then Kubo, CFO, will present the Q1 financial results along with the presentation material. Next, there will be time for questions and answers. Please note that today's session will be bilingual in English and Japanese using the simultaneous interpretation function via Zoom. Please select the language you would like to communicate with us in the Zoom control panel. If you would like to participate in the Q&A session in English, please set the Zoom audio language to English.
Now, Watanabe-san, will you please start your presentation?
Good afternoon, everyone. This is Watanabe from Nippon Sanso Holdings. Thank you for joining our first quarter earnings conference call today despite your busy schedules. Following last month's Annual General Meeting of shareholders, I assumed the position of Representative Director, President, and CEO. While I am keenly aware of the responsibilities that come with this role, I am also excited about the opportunities ahead, and I am committed to unlocking the full potential of our company to drive further growth. Through continued dialogue with our shareholders and investors, we will strive to enhance corporate value and deliver sustainable growth. I sincerely appreciate your continued support and look forward to working with you. Now, let me briefly walk you through the key points summarized on the slides regarding our business performance. Following my overview, our CFO, Mr. Kubo, will provide you with a detailed explanation of our financial results.
First, I would like to provide an overview of our business environment. Looking back over the past three months, military conflict involving the United States, Israel, and Iran have continued, and uncertainty in the business environment has remained high. This includes concerns over potential navigation restrictions in the Strait of Hormuz, fluctuations in energy prices, raw material procurement risks, and rising logistics costs. Although there were moves towards a ceasefire in June, as of July, military exchange between the United States and Iran have re-escalated, and we recognize that the outlook for the regional situation remains highly uncertain. With regard to the impact on our company's business, we have seen increase in fuel and transportation costs as well as higher electricity costs, particularly in Europe and the United States , against the backdrop of elevated energy prices.
In response to this cost increase, we are implementing price management and cost improvement measures, and this policy remains unchanged. However, depending on the region, the impact of energy price trends and customer production plans may materialize with a time lag. We will therefore continue to monitor these developments carefully. On the other hand, looking at the electronics industry, demand for servers used in data centers continues to expand, driven by the spread of generative AI. We recognize that the semiconductor market remains active, particularly in memory. Semiconductor manufacturers are generally operating at high utilization levels, and capital investment, especially in advanced fields, is continuing. We believe that this market environment represents a tailwind for our electronics-related business. Next, about our performance highlights. In this business environment, we have continued to thoroughly implement price management and productivity improvement initiatives as we have done to date.
As a result, in the first quarter, we were able to improve profitability year-on-year. Details of each region and business segment will be explained later by our CFO, Mr. Kubo. I will focus on the key highlights. First, in the U.S. segment, we maintained the trend of profitability improvement that began in the second half of the previous fiscal year, and we were able to improve profitability year-on-year. We believe this reflects the steady results of our price management and productivity improvement initiatives. In addition, volumes increased, mainly driven by new on-site projects, and we are also seeing signs of overall demand recovery. In the Asia & Oceania segment, we were able to raise the core operating margin to a double-digit level.
We believe this was driven by a recovery trend in shipment volumes of electronic materials, gases for electronic applications, as well as the positive effects of overall cost control and price management. Going forward as well, through continuous price management, cost control, and productivity improvement initiatives, we will make efforts so that we can improve profitability in a sustainable manner. Next, about our investment status. Next, let me update you on our investment activities. Capital expenditures in the first quarter totaled JPY 28.5 billion, an increase compared to the same period of the previous fiscal year. Amid ongoing uncertainties, including the situation in the Middle East, we continue to carefully monitor our customers' production and investment plans and are steadily executing our capital investments as we did in the previous fiscal year.
Investments in the facilities that support the production and supply of industrial gases are essential for the continued expansion of our business and growth in earnings. While maintaining strict discipline in managing investment risk, our fundamental approach remains unchanged: to capture growth opportunities and drive business expansion through proactive investments. I will discuss our capital investment backlog later in the presentation. Finally, let me touch on a few highlights. As I mentioned at the outset, following the annual general meeting of shareholders held on June 17th, Alan, CEO of Nippon Sanso Matheson and I were newly appointed as directors, and our new management structure is now in place. In Europe, as part of our efforts to strengthen our engineering capabilities, we decided to increase our investment in HYSYTECH, an Italian engineering company.
HYSYTECH's advanced expertise in process engineering and plant design is highly aligned with our direction of enhancing engineering capabilities. By further combining the strengths of both companies, we aim to strengthen our competitiveness in Europe and enhance the value we deliver to our customers. Next, I would like to explain our investment execution plan or backlog going forward. As before, this chart shows the breakdown of planned capital investments by customer industry segment. As of the end of June 2026, our backlog stood at approximately JPY 150 billion. This represents a decrease of roughly JPY 30 billion from the approximately JPY 180 billion level at the end of the fourth quarter.
While some new projects were added during the period, the value of completed projects, including the hydrogen supply project for the Numaligarh refinery in India, exceeded the value of newly secured orders. Please also note, as indicated in the slide above, that this analysis covers projects with a value of approximately JPY 500 million or more. Projects below this threshold are not included in the figures presented here.
With that, I would like to hand over to our CFO, Mr. Kubo, who will walk you through the financial performance. Mr. Kubo, please.
Thank you very much, Mr. Watanabe. This is Kubo, the CFO. Thank you for your participation today. I will now explain the business conditions restoration for the first quarter of the fiscal year ending March 2027. Please refer to page nine of the materials you have in your hand. For the first quarter, the results for April to June 2026 showed sales up 14.9% year-on-year to JPY 361.7 billion, or 5.9% increase excluding currency effects. Aside from an 8.6% positive impact from exchange rates, this result was supported by solid price management and slightly positive volume mix, as well as contribution from acquisitions in Oceania and in Europe. Pass-through and surcharges were flat compared to the same time last fiscal year. Core operating income was JPY 54.6 billion, increased by JPY 9 billion, a 19.9% year-on-year increase, and excluding the impact of foreign exchange, it increased by 9.8%.
We continued to promote price management and productivity improvement initiatives, and the core operating income margin expanded by 60 basis points from 14.5% in the same period last year to 15.1%. The EBITDA margin also improved by 120 basis points year-on-year to 25%. The volume for specialty gases or electronic material gas are steadily improving, especially in Asia, due to strong demand for semiconductors for AI and data centers. For non-recurring items, details are provided on page 22 of the material, but the profit from the sales of the headquarter land was partially offset by some loss related to this building and other costs related to global rebranding to JPY 10 billion. Next, I will explain first quarter results by segment.
Please turn to page 10 of the material for Japan business. Japan's first quarter revenue was JPY 96.7 billion, a decrease of approximately JPY 0.7 billion or 0.7% year-on-year. Although price management had an effect on electronics-related gases, sales were firm. This was due to a decline in electronics-related equipment and installation works. The impact from foreign exchange was negligible. Segment profit of JPY 12 billion was a 9.7% decline year-on-year due to lower sales from electronics equipment and installation businesses. In segment profit as well, the impact from foreign exchange was negligible. Please refer to page 11 of the material, the United States. The revenue in the U.S. for the first quarter was JPY 99.1 billion, an increase of JPY 15.2 billion or 18% compared with the same period last year.
Not only did shipment volumes of products increase compared with the same period of the last year, but also revenue from both industrial and electronics-related equipment increased together with continuous strong price management. The impact of foreign exchange was a positive, approximately JPY +9.9 billion on revenue, and excluding this effect, revenue still increased by JPY 5.2 billion or 5.6%. Segment profit was JPY 14.9 billion, an increase of JPY 3.5 billion or +30.8% compared with the same period last year. Even excluding a JPY 1.3 billion impact from foreign exchange, profit increased by JPY 2.1 billion or 16.6%. In addition to productivity improvement and price management, increase in shipment volume contributed to the increase in segment profit. Next, page 12, Europe. Revenue in Europe for the first quarter was JPY 97.8 billion, an increase of JPY 15.4 billion or +18.8% year-on-year.
Foreign exchange effects amounted to JPY 10.4 billion. Excluding this impact, revenue increased by about JPY 4.9 billion or +5.4%. Although gas shipment volume decreased, higher revenue was driven by the effect of foreign exchange, the benefits of price management, and the addition of revenue from the Spanish home care business acquired in the previous fiscal year, as well as a steady performance in medical-related equipment and construction. Segment income was JPY 18.9 billion, an increase of JPY 2.9 billion or +18.4%. Of the increase in profit, JPY 2 billion was due to foreign exchange effects, so excluding that impact, the increase was JPY 0.8 billion or a +4.9%. This was mainly due to initiatives in price management and productivity improvement.
Next, regarding Asia and Oceania, please refer to page 13. Revenue for the first quarter in Asia and Oceania was JPY 58.8 billion, an increase of JPY 16.5 billion or +39.2% year-on-year. The impact of foreign exchange was JPY 6.2 billion. Excluding this impact, revenue increased by JPY 10.2 billion or 21.2%. Although the revenue from electronics-related equipment and installation decreased, the increase was due to the contribution from the industrial gas business in the Oceania region acquired last fiscal year and the steady increase in shipment volumes of electronic materials gases. Segment profit was JPY 7.1 billion, an increase of JPY 3.7 billion or 106.9% compared with the same period last year. The impact of foreign exchange was JPY 0.6 billion. Excluding this impact, profit increased by JPY 3 billion or a +74.7%.
This increase in profit was mainly driven by contribution from acquired industrial gas business in Oceania region and the increase in shipment volume. Finally, on page 14, Thermos recorded sales revenue of JPY 9.1 billion, an increase of about JPY 0.5 billion or +5.5%. The impact from foreign exchange was approximately JPY 0.1 billion. Excluding this impact, the revenue increased by JPY 0.4 billion or +4.2%. in Japan, sales of spring and summer products remained strong, resulting in solid performance in new product sales and higher revenue. South Korea also achieved revenue growth. Segment profit was JPY 1.8 billion, an increase of about JPY 0.1 billion or +10.3%. The impact from foreign exchange was minimum. The increase in profit was mainly due to sales growth and continuous cost reduction initiatives in Japan.
Next, I will explain cash flows of the first quarter. On page 25, cash flow from operating activities increased 31.3% from previous fiscal year to JPY 54.97 billion. Cash flow from investing activities decreased to JPY 16.4 billion, down 15.8%, mainly due to the sales of asset related to the head office land, although capital expenditure increased from the same period last year. As a result, free cash flow increased sharply year-on-year to JPY 38.2 billion, up JPY 16.2 billion. Also, on page 23 of the material you have, we provide information on key management indicators such as the net debt to EBITDA ratio, which has been newly adopted as a KPI in the midterm management plan, and we hope you will find this useful as a reference. That concludes today's presentation. Thank you for your attention.
Thank you for your presentation, Mr. Watanabe and Mr. Kubo. We will now have time for questions and answers. I would like to make a few points to keep in mind. As mentioned at the outset, if you would like to communicate in the Q&A session in English, please join us via English audio line in Zoom. In addition, we would appreciate it if you could pay attention to your talking speed and tempo, or kindly provide concise questions as we will be providing interpretation audio by simultaneous interpreters. Next, I would like to explain the procedure for today's Q&A session. First, please raise your hand by clicking the Raise Hand button on the control panel displayed at the bottom of the Zoom screen. Then click on the Q&A button and fill in your company name and your name. You do not need to fill in your question.
Once you've been nominated by us, please pose your question. When you pose your question, please state your name and affiliation and then your question in a one question, one answer format. If you wish to cancel your question, please press the Raise Hand button again and put your hand down. Please note that your questions will be posted on our corporate website along with our presentation, also temporarily with audio data. These are all the points we wish you to keep in mind. We will now take your questions in the order received until the scheduled ending time. Morgan Stanley MUFG Securities, Mr. Watanabe, please.
This is Watanabe from Morgan Stanley. Thank you very much for the explanation. I have two questions. One question, one answer basis, please. First, about backlog. Q4, JPY 100 billion and JPY 150 billion in Q1 of this fiscal year. There's been a decline, according to your explanation. My memory is not clear, but Nippon Ekitan and Shunan Sanso, which are the numbers included in? I want to know the timing as well as where in the graph. If you could please comment on this point. That's my first question.
Thank you for your question. CFO, Mr. Kubo, will respond to this question. Mr. Kubo?
Concerning the point you just mentioned, there's a pie chart, and where it says others, it's included in others. That's the first point I want to mention in my response.
Nippon Ekitan, Shunan Sanso, both are included here? Is that the correct understanding?
Nippon Ekitan, there was a release about them in May. There was a release about Nippon Ekitan and Shunan Sanso. There was a disclosure in July. In terms of amount, Nippon Ekitan, I think, accounts for a larger amount.
At what timing are they included? Depending on the timing, the reason for decline in backlog becomes clearer, I think. That is why I asked the question. I want some supplementary explanation. JPY 150 billion. What's included in this number is Nippon Ekitan is included in others. Shunan Sanso is not yet included.
I see. That will be included in Q2, it seems. If you include that, they will be included in others. In terms of size or scale, JPY 10 billion or JPY 20 billion, I want to get a clearer image of the investment amount. In actuality, as for the timing, as you mentioned, it will be in Q2. In terms of amount or scale, we think we do not disclose that information. We apologize. We will not be able to comment on the investment amount. It's not disclosed.
Smaller than Nippon Ekitan, is that the correct understanding?
Yes. That understanding is correct.
Thank you. My second question. Asia, Oceania. I want some supplementary explanation about Asia and Oceania region. Not only year-on-year, but on a Q-on- Q basis as well, there's been improvement, and there's been an acquisition in Australia, and there might be some seasonal factors as well. Compared with Q4, improvement in Q1. What is the main reason for it? Is it the main acquisition in Australia or some other reasons? Or if you do not mind, compared with the plan, is the actual recovery much larger than the plan or in line with the plan? Thank you for the question.
I would like to first give an overview, and details will be explained by Mr. Kubo. First, compared with the budget, Q4 last fiscal year, electronics is performing much better than our expectation. Australia, of course, there is the benefit from M&A acquisition, but the LPG as well. Because of the market situation, there has been an increase in unit price, and that is also posing a positive effect. That is the current situation. Is there anything to supplement, Mr. Kubo?
As Mr. Watanabe just mentioned, that is the current trend compared with Q4. Electronics business, in Q1 as well, electronics business has continued to perform very well. Oceania business, it is true that there is impact from Coregas acquisition, but even if we exclude Coregas acquisition, LP Gas, we have been able to conduct price management. Because of seasonality, there has been an increase in demand. We have been able to capture that increase in demand. Because of these factors, compared with Q4, we have seen a major improvement in performance.
How shall I say it? In order of magnitude, electronics, Coregas, and others. Is that the correct order in terms of magnitudes?
Well, excluding Coregas impact, electronics and others, if we compare electronics and others, electronics and others, almost the same impact, we think. Overall, Asia business, there is a well-performing gas volume performance. Overall, we think we did equally well.
Electronics. I want more information about electronics. China, Korea, and Taiwan, are they recovering in the same manner, or are there any differences in level of recovery?
This is Watanabe. Thank you for the question. Concerning the point you just raised in your question, first, Korea is performing better than we expected. China and Taiwan, almost in line with our expectation. If you could please understand the situation that way.
Thank you.
Mr. Watanabe, thank you very much. Next, SMBC Nikko Securities, Mr. Shintani. The floor is yours.
SMBC Nikko Securities, Shintani is my name. Thank you very much for your explanation. I would like to ask two questions as well. First, Asia, Oceania. I would like to ask more questions. It is doing well. The price management progress has also been mentioned. In particular, in what kind of gas has price management made progress? Can you elaborate on that, please? The sales by type of gas, for example, page 30, based on the mix, bulk, on-site, package, revenue increase looks high. So all in all, I think there has been some improvement. Can you elaborate on that? As for Oceania LP Gas business, CP price has been going up significantly. As for April to June, I think prices are likely to go up easily. Well, toward July, I think level is going down. Can you refer to the continuation of that level, please?
Thank you for your question. First of all, Asia. Which part of the gas have we had good price management? Let me talk about the background. As I explained in the midterm management plan explanation, including the previous midterm management plan, operational excellence is what we have been working on. At the same time, as for price management, we try to incorporate the best practices overall, and that has been penetrating. Bulk and package. Bulk, we have a more positive impact than package, although there are no significant differences between bulk and package.
Now, Oceania LP. Mr. Kubo will explain. Please.
Thank you very much. As for CP price, it is true when it fluctuates. There will be fluctuation of the business performance. That could be what you might assume. But in price management, I think we have been successfully controlling that with price management. If you look at the situation by monthly unit, there could be some volatility. But if you look in a quarterly basis, in Q2 onward as well, we believe we should be able to maintain the same level of profitability. That's all from me.
Thank you very much. Now, as for LP Gas, in Q1, looking at the margin from the previous quarter, there has not been big change. But on timely basis, you are able to pass on price, and Q2 onward, all in all, you are continuing to have the same situation. This is not significantly impacting margin. Am I correct?
As for margin amount, we are able to secure a stable amount as you correctly understand.
Understood. Thank you very much. Next, second question for Japan. Year-on-year or in comparison to the previous quarter, a decline in revenue and profitability also is down. Listening to your explanation, the equipment and installation for electronics is a major reason. But are there any other factors for this result? In electronics, equipment, and installation, looking at the future business opportunity this term, perhaps you will have stable and big projects, but are there any measures to improve the situation? Are there any opportunities? Could you also elaborate on the trend of the electronic gas as well, please?
Watanabe would like to explain.
First, electronics. In the explanation material, there is a point written. As for equipment, in the previous term, there was a big project. As a result of that, this term, there is some dip. However, we are seeing new projects coming out, so it will depend on those projects' situation. But looking at the market situation, in terms of size, setting aside the comparison with the previous term, we are seeing some numbers of projects coming up. Material gas. Unlike equipment and installation business, as I mentioned, in Asia, the market is very brisk, so this business is growing to a certain extent. What was the another point?
Thank you very much. So profitability, I have a follow-up question. Profit margin declined. Is it because of electronics equipment and installation ? One, and energy cost has been going up for Japan for July to September, I think electricity will go up. What is the situation of the passing on the price, and are you able to maintain the profit margin?
One of the reasons for the profit margin, as you correctly mentioned, electronics, equipment, and installation impact is what we have observed. This is the first point. The second point is as for passing on the price, there is a slight delay of the timing in passing on the price. Having said that, depending on the level of the surge of electricity, there are times that we are able to pass on price to 100%, or other times we are not able to do that. Depending on the price increase level, this price pass-through situation varies.
That's all. Understood. Just to make sure, April to June, we have not observed any impact from the electricity price hike in Japan?
Kubo. Mr. Kubo is going to explain.
As for the first quarter, we have hardly ever seen that impact.
Understood. Thank you very much. Very clear. This concludes my question.
Mr. Shintani, thank you very much. Next, Mizuho Securities, Mr. Yamada, please.
Can you hear me?
Yes.
I would like to start my question. Thank you for your explanation. This is Yamada speaking from Mizuho Securities. I have a number of points, one question, one answer basis, please. First, decline in volume in Europe. The trend does not seem to be clear in the three months. Is there any point that is particularly weak? In addition, on-site, was there a particular decline in capitalization rate? Is there a particular concern about that point? This was a question mainly about decline in volume in Europe.
First, volume in Europe. There has been a slight decline in volume. That is the trend. The background behind that is the Strait of Hormuz and impact of Ukraine as well. There is generally a conservative stance for the investment. As a result, our customers' investment has become slightly sluggish, that seems to be the main reason. That is how we understand our situation. You mentioned about on-site. Mr. Kubo will explain about the on-site. About on-site. On a quarterly basis, when we take a look at volume, we are taking a look and monitoring closely the volume by segment. On-site volume, we are not seeing a full-fledged powerful trend yet. It is likely to take some more time to recover to that level. In Q1, we have started to see slight signs of recovery.
Q2, therefore, we do think we can see a moderate recovery trend. That concludes my response.
I understand. Thank you. Then Europe on-site, as you just mentioned, bulk seems to be somewhat tough. According to your explanation, it seems as though you are successful in the price management, therefore overall, you can maintain margin. Is that the correct understanding?
Yes. Volume, of course, depending upon the supply mode or depending upon the supply, is sometimes weak. In that kind of a situation, we try to generate the profit through price management. Therefore, your understanding is correct.
Understood. Thank you. I look forward to your future performance. My second question, U.S. gas business, the shipment volume increased. By industry, I could not clearly understand the trend. U.S. electronics business, what is the situation there? Equipment business, hard goods. Industrial gas, electronics. There has been an increase in revenue for both. Electronics order intake seems to be increasing significantly. Is that correct? How should I perceive the overall increase in volume in the U.S., particularly for electronics business?
T his is Watanabe. I would like to respond. Please. Electronics business. Equipment, as well as gas, both the magnitude is different from that in Japan, but both are performing well. Particularly gas business is performing better than the equipment business. General industrial gas, besides electronic business, here we have a new structure and it is easier for us to take action to secure volume. Bulk volume is growing successfully. Slightly, package is not as strong, but basically, bulk and on-site are driving the performance. If you could please understand the situation that way.
I see . Mr. Draper was not necessarily in a position where electronics was strong, but I praise your performance. You are doing very well. Situation in Japan. Electronics. There has been a decline in revenue for equipment and installation. Investment projects. There is a lot of media report about the investment projects. Is it the correct understanding that this is a temporary low? This is temporary off-peak or low situation. U.S. electronics business. You mentioned that gas is moving better than equipment, but the equipment business as well, according to a media report, in regions where NSHD is strong, there seems to be a lot of investment projects. Do you think you can secure orders for all of the projects?
U.S. electronics business. Gas, it is the U.S., but gas is not only within U.S. Globally, the electronics market is brisk, and that is positively impacting U.S. as well. Concerning equipment, whether we can secure orders for equipment business or not is a question, but there is an increase in equipment business, and we have to wait and see whether we can secure all planned orders. From last year, there has been some orders that we secured, and we are still working on them. That is supporting our underlying performance. As a result, we are enjoying good performance.
Equipment is for semiconductor manufacturing equipment, organometallic vapor deposition. Is that where you are seeing an increased chemical deposition?
MOCVD, not MOCVD equipment, but silicon equipment. That is where we are seeing an increase. The normal memory and logic-related semiconductors, the equipments for those kinds of semiconductors, that is where we are seeing an increase. MOCVD order intake is not increasing in the U.S. Your understanding is correct. The same as before.
Other regions. How about other regions?
Business itself changes significantly depending upon whether we can receive one order or not, and it is difficult to judge relative increase or decrease in performance. But the sense we have is, we are seeing an upward trend, and then the rest depends on whether we can actually receive orders or not.
Understood. Thank you. Sorry for the lengthy questions.
Thank you, Mr. Yamada. Next, CLSA Securities. Mr. Cho, please.
Hello, Mr. Cho, CLSA Securities. Can you hear me?
Yes.
Two questions. First, sorry to be persistent. Electronics confirmation, Asia, Japan. Quarter-over-quarter, year-over-year increase of electronics in Japan and Asia, is it thanks to volume increase? As for future pricing, if possible, can you tell us if there is room for price increase? Can you give us a comment on that? This is the first question.
Electronics, Asia, Japan growth, the volume grew. Right. Price increase, depending on the product. Unlike bulk and package gas, globally, we have competitors. We deal with the situation on a case by cases. That is the only thing I can tell. Of course, when the market price goes up and when a certain product's price goes up, then accordingly, the bid price from our side would likely to go up accordingly.
Understood. Thank you very much. Second question, Q1 results by region in comparison to internal progress, are there a good point or bad point? Can you comment on that briefly? Our understanding is that for Asia and Europe, I think our situation was good. North America and Japan, not necessarily. I would like to confirm whether this understanding is correct or not. Toward Q2, by region, are there any bullish market or weakish market? Can you elaborate on that? Recently, it seems that due to Middle East situation, there is a front-forwarding of shipments, so some demand may have been front-forwarded from Q2 to Q1. If there is such a trend or situation, could you comment on that, please?
As for first quarter, allow me to make comment. For Q2 onward, Mr. Kubo would respond. First, Q1 Asia, U.S. Q1, it was very good. A brisk situation in Europe. All in all, the situation is as we assumed. Next, Mr. Kubo, please.
Second quarter outlook. In Q1 earlier, I said that it is off season for equipment. In comparison to Q4, there was a significant dip in Q1. What we assumed to be booked in Q2, there was no shifting to Q1 in terms of measure things. All in all, for the second quarter, we think we would have a result as we assumed. As for our quarterly plan, there are big things like equipment and installation. There could be some big things coming out in the final quarter. As for the Q2, I think the situation is almost same as Q1. Earlier, we said in some region on on-site, volume is recovering, so such a benefit we hope to be enjoyed in the Q2. That's all.
Thank you very much. That's all. Thank you.
Mr. Cho, thank you very much. Next, BofA Securities, Mr. Enomoto.
This is Enomoto from BofA Securities. I have two questions. First, about helium. Impact from the Middle East, what was it like in April and June? Price hike, I think you announced in Japan 30% price hike. How do you think this price hike will progress?
First, about the price hike. Progress is steady, if you could please understand. April to June helium situation, as we have been mentioning from before, in the case of NSHD, we have not been impacted so much from Qatar, which means the current trend is in line with our expectation.
Understood. My second question is about semiconductor industry. For example, in Japan, there has been a large semiconductor investment and the memory manufacturers that might increase performance. Taking a look from outside, there seems to be increase in investment in the semiconductor industry, but listening to your explanation, it seems as though there are no large projects in NSHD. Micron deal was taken away by Air Liquide for example. It might be because of a competition, but I want to confirm if there is an increase in order intake or not, and how do you perceive the competitive landscape for semiconductor-related equipment installation?
Last fiscal year, whether we have large projects or not, I would like to explain. Last year, we had many large projects, which means that this year, as reported in the news, we have been able to get projects not necessarily as large as last year. The competitive environment has not changed so much from last fiscal year. That is how we perceive the situation. Japanese equipment and installation market, there is a capacity. As a result, we do not expect an abrupt or sudden change in the competitive landscape in Japan.
Understood. Thank you.
Thank you, Mr. Enomoto . Next, UBS Securities, Mr. Omura, the floor is yours.
UBS Securities, Omura. Just one question. Thermos. China and America. It seems there was a trouble and recall is ongoing. Your stake is 30%-40%, which is limited, but do you expect some impact coming out moving forward?
Thank you for your question. Right. As you mentioned, there is a talk of recall. However, as of now, the impact is not that substantial for us to see some impact in numbers. It will all depend on how it goes moving forward. I am not able to say something clear, but that is the current status.
I see. In the U.S., three people lost their vision. Most probably, this could incur litigation. In China, there is a recall of 4 million, which is a relatively large size. Do you think this incident is a significant incident or it is insignificant? How do you perceive this?
Well, for those who are injured, the case has settled down. It is true the number of cases is high. I am not able to tell you the details about this, but it will depend on how it goes. It may become substantial or not. I am not able to comment as of now about this.
Understood. If that is the case, I would like to observe how it evolves. Thank you very much.
Mr. Omura, thank you very much. Are there any other questions? With this, we would like to conclude the Q&A session. If you have additional questions, please indicate so at a later date to our IR section. This concludes today's earnings results teleconference. The contents of today's call will be made available on our corporate website's IR page later this evening. If you have any questions or require further information, please feel free to contact our IR department. Thank you very much for taking the time to join us today. We truly appreciate your continued support. Thank you very much.