Kanematsu : Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (Under IFRS) TSE

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 8, 2025

Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (Under IFRS)

Company name: Kanematsu Corporation Listing: Tokyo Stock Exchange

Securities code: 8020

URL: https://www.kanematsu.co.jp/en Representative: President, Yoshiya Miyabe

Inquiries: General Manager of Accounting Dept., Reiki Fujii Telephone: [phone]

Scheduled date of annual general meeting of shareholders: June 27, 2025 Scheduled date to commence dividend payments: June 10, 2025 Scheduled date to file annual securities report: June 26, 2025 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes. )

      	Revenue		Operating profit		Profit before tax		Profit
      Fiscal year ended March 31, 2025	Millions of yen 1,050,936	% 6.6	Millions of yen 42,051	% (4.1)	Millions of yen 38,233	% 2.7	Millions of yen 26,438	% 7.5
      March 31, 2024	985,993	8.2	43,870	12.8	37,241	4.3	24,586	(0.5)

      	Profit attributable to owners of the parent		Total comprehensive income
      Fiscal year ended	Millions of yen	%	Millions of yen %
      March 31, 2025	27,469	18.3	22,621 (44.8)
      March 31, 2024	23,218	25.0	40,966 30.9

      	Basic earnings per share	Diluted earnings per share	Return on equity attributable to owners of the parent	Profit before tax to total assets
      Fiscal year ended	Yen	Yen	%	%
      March 31, 2025	328.95	327.67	16.5	5.4
      March 31, 2024	277.90	276.97	16.1	5.3

      Reference: Share of profit (loss) of investments accounted for using equity method For the fiscal year ended March 31, 2025: ¥86 million

      For the fiscal year ended March 31, 2024: ¥ (212) million

      (Notes) The basic earnings per share and the diluted earnings per share are calculated based on the profit attributable to owners of the parent.

   2. Consolidated financial position

      	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of parent to total assets
      As of	Millions of yen	Millions of yen	Millions of yen	%
      March 31, 2025	689,337	188,128	173,942	25.2
      March 31, 2024	725,347	176,000	159,318	22.0

      	Equity attributable to owners of the parent per share
      As of	yen
      March 31, 2025	2,092.94
      March 31, 2024	1,906.69

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   March 31, 2025	58,329	1,363	(54,658)	56,779
   March 31, 2024	35,582	(12,423)	(50,102)	53,431

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Fiscal year ended March 31, 2024 Fiscal year ended March 31, 2025	Yen - -	Yen 45.00 52.50	Yen - -	Yen 45.00 52.50	Yen 90.00 105.00
   Fiscal year ending March 31, 2026 (Forecast)	-	57.50	-	57.50	115.00

3. Forecasts for consolidated results ending March 31, 2026 (April 1, 2025 - March 31, 2026)

(Percentages indicate changes from the previous year.)

	Revenue	Operating profit	Profit before tax	Profit attributable to owners of the parent	Basic earnings per share
Full year	Millions of yen % 1,100,000 4.7	Millions of yen % 50,000 18.9	Millions of yen % 46,000 20.3	Millions of yen % 30,000 9.2	Yen 359.26

* Notes

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

3. Number of issued shares (ordinary shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2025	84,500,202 shares
      As of March 31, 2024	84,500,202 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2025	1,391,064 shares
      As of March 31, 2024	942,521 shares

   3. Average number of shares outstanding during the period

Fiscal year ended March 31, 2025	83,505,493 shares
Fiscal year ended March 31, 2024	83,552,850 shares

[Reference] Overview of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)
   1. Non-consolidated operating results

      	Net sales	Operating profit	Ordinary profit	Profit
      Fiscal year ended March 31, 2025	Millions of yen % 409,334 2.9	Millions of yen % 140 -	Millions of yen % 15,413 44.7	Millions of yen % 19,516 96.3
      March 31, 2024	397,709 1.0	(540) -	10,650 (12.8)	9,943 13.7

      	Basic earning per share	Diluted earning per share
      Fiscal year ended	Yen	Yen
      March 31, 2025	233.65	-
      March 31, 2024	118.98	-

   2. Non-consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	Yen
March 31, 2025	420,030	117,954	28.1	1,418.97
March 31, 2024	439,996	115,540	26.3	1,382.34

Reference: Equity

As of March 31, 2025: ¥117,954 million As of March 31, 2024: ¥115,540 million

• Quarterly consolidated financial summaries are not subject to quarterly review by a certified public accountant or an audit corporation.

• Explanation about the proper use of results forecasts, and additional information.

1. The forward-looking statements, including results forecasts, included in this document are based on information that the Company has obtained and certain assumptions that the Company considers reasonable. The Company does not promise to achieve them. Actual results might be significantly different from the forecasts in the document, depending on various factors. Refer to "(3) Information on the future outlook, including consolidated business performance forecasts" in "1. Qualitative Information on Consolidated Results for the fiscal year Ended March 31, 2025" on page 3 of accompanying materials for further information on results forecasts.

2. The Company operates its businesses on a consolidated basis. The Company produces no forecast for non-consolidated business results.

3. The Company plans to hold a results briefing for institutional investors and analysts on Thursday, May 15, 2025. Results briefing materials used at the results briefing will be posted on the Company's website immediately after it is held.

Accompanying Materials - Contents

1. Qualitative Information on Consolidated Results for the Fiscal year Ended March 31, 2025 2

   1. Details of consolidated results 2

   2. Details of financial position 4

   3. Basic policy for distribution of profits and dividends 4

2. Basic Approach to Selection of Accounting Standards 4

3. Condensed Consolidated Financial Statements and Major Notes 5

   1. Condensed consolidated statement of financial position 5

   2. Condensed consolidated statements of income / Condensed consolidated statements of comprehensive income 7

      Condensed consolidated statements of income 7

      Condensed consolidated statements of comprehensive income 8

   3. Condensed consolidated statement of changes in equity 9

   4. Condensed consolidated statements of cash flows 11

   5. Notes on condensed consolidated financial statements 12

(Notes on the going concern assumption) 12

(Changes in presentation method) 12

(Segment information) 12

(Per share information) 15

(Significant subsequent events) 15

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1. Qualitative Information on Consolidated Results for the Fiscal year Ended March 31, 2025 (1) Details of consolidated results 1. Consolidated results

During the fiscal year under review (from April 1, 2024, to March 31, 2025), the prospect of the global economy remained uncertain. While the U.S. maintained a solid economic climate, there were still concerns such as the lengthening economic stagnation in China and the geopolitical risks remaining high due to the deterioration in the Middle Eastern situation.

In the U.S., the situation was mixed. Despite solid personal consumption, the risks of downward pressure on the economy would increase due to growing sense of caution regarding the uncertainty of the second Trump administration's policies such as raised tariffs.

In Europe, personal consumption was picking up in response to an increase in real income due to slowing inflation, and the economy showed signs of a gradual recovery. However, there were concerns that the uncertainty surrounding the U.S. tariff policy would weigh on the economic recovery.

In China, the economy remained sluggish due to the prolonged real estate slump and slowing personal consumption. In addition, there were concerns that increase in tariffs between the U.S. and China would worsen domestic and foreign demand.

The Japanese economy gradually recovered against the backdrop of solid corporate profits and improvements in the employment and income environments. Meanwhile, it is necessary to closely monitor the future outlook, including interest rate hikes and the direct and indirect impacts of U.S. tariff policy.

Revenue increased, driven by strong sales in the mobile business and the aerospace business that saw a steady growth, particularly in airplane and defense-related transactions. Profit declined in the steel tubing business affected by the impact of the sluggish market and recorded impairment losses. Meanwhile, profit increased in the mobile business and the steel business recorded impairment losses on equity method investments in the previous fiscal year.

As a result, consolidated revenue increased by ¥64,943 million (6.6%) year on year, to ¥1,050,936 million. Consolidated gross profit also increased by ¥12,450 million (8.7%) from a year earlier, to ¥155,007 million. Consolidated operating profit decreased by ¥1,819 million (4.1%) from a year earlier, to ¥42,051 million primarily due to the recognition of impairment losses on goodwill. Profit before tax increased by ¥992 million (2.7%) year on year, to ¥38,233 million due to the absence of the impairment loss on equity method investments recognized in the same period of the previous fiscal year. Profit attributable to owners of the parent increased by ¥4,251 million (18.3%) year on year, to ¥27,469 million. The ratio of profit attributable to owners of the parent to equity attributable to owners of the parent or equity capital (ROE) stood at 16.5% and return on invested capital (ROIC)* at 7.6%.

*ROIC = net profit / invested capital (interest-bearing liabilities + shareholders' equity) Results for each business segment are described below.

1. ICT Solution

   Revenue increased by ¥10,713 million year on year, to ¥99,528 million, since security-related services, as well as network and storage services, mainly in the manufacturing industry, remained strong. Operating profit increased by

   ¥745 million, to ¥14,679 million, and profit attributable to owners of the parent increased by ¥634 million, to ¥9,970 million.

2. Electronics & Devices

   Revenue increased by ¥34,988 million year on year, to ¥271,373 million, attributable to higher revenue in the mobile business and the semiconductor parts and manufacturing equipment business. Operating profit increased by ¥2,780 million, to ¥11,395 million, mainly driven by growth in the mobile business. Profit attributable to owners of the parent increased by ¥1,713 million, to ¥7,031 million.

3. Foods, Meat & Grain

   Revenue increased by ¥15,840 million year on year, to ¥357,536 million, reflecting growth in the meat products business and foods business. Operating profit decreased by ¥126 million, to ¥7,842 million, primarily due to the decline in profits from the meat products business. Profit attributable to owners of the parent decreased by ¥417 million, to ¥3,063 million.

4. Steel, Materials & Plant

Revenue decreased by ¥13,335 million year on year, to ¥198,408 million, due to a downturn in the energy business and steel tubing business. Operating profit decreased by ¥4,926 million, to ¥3,524 million, primarily due to the decline in profits from the steel business and energy business. Profit attributable to owners of the parent increased by ¥2,088 million, to ¥4,015 million.

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