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

Supplementary Material

Fourth Quarter Results for FY2025

Disclaimer:

The forward-looking statements, including results forecasts, provided in this document are based on information obtained by Kanematsu Corporation (the Company) and certain reasonable assumptions made by the Company. The Company does not guarantee their achievement, and actual results may differ from forecasts due to various factors. This information is subject to change without prior notice, and users are advised to utilize this document alongside information acquired through other sources and exercise their own discretion. The Company bears no liability or res ponsibility for any loss or damage resulting from the use of this material Additionally, as the figures presented are rounded off to the nearest 1 billion yen, the total may not precisely match the sum of each item.

• For the fiscal year ended March 31, 2025 - the first year of the Medium-Term Management Plan "integration

  1.0" - net profit attributable to owners of the parent amounted to ¥27.5 billion, achieving a new record high.

• For the fiscal year ending March 31, 2026, net profit is forecast to rise by ¥2.5 billion, reaching ¥30.0 billion.

Earnings Results

Forecast

(Unit: JPY Bn)	FY2024	FY2025	YoY	Growth
Revenue	986.0	1,050.9	+64.9	+7%
Operating profit	43.9	42.1	(1.8)	(4%)
Net profit1)	23.2	27.5	+4.3	+18%
Operating cash flows (adjusted)2)	33.2	40.6	+7.4
CF from investing activities	(12.4)	1.4	+13.8
Mar 31, 2024		Mar 31, 2025	YoY
Net D/E ratio3)	1.00x	0.69x	(0.31x)
Equity ratio4)	22.0%	25.2%	+3.3%

(Unit: JPY Bn)	FY2025	FY2026 (forecast)	YoY
Revenue	1050.9	1,100.0	+49.1
Operating profit	42.1	50.0	+7.9
Net profit	27.5	30.0	+2.5
Annual dividend per share	105 Yen	115 Yen	+10 Yen
Dividend payout ratio	31.9%	32.0%

1. Net profit = Profit attributable to owners of the parent

2. Operating cash flows (adjusted) ＝ Operating cash flows ± Change in working capital - Repayment of lease liabilities

3. Net D/E Ratio ＝ Net interest-bearing debt ÷ total equity attributable to owners of the parent

4. Equity ratio ＝ Shareholders' equity ÷ total assets

Earnings Summary

Earnings Results Forecast

FY2026

• Revenue

Increased by ¥64.9 billion year-on-year primarily driven by the Electronics & Devices segment and the Motor Vehicles & Aerospace

segment.

Gross profit	142.6	155.0	+12.4	+9%
Selling, general and administrative expenses	(106.2)	(115.1)	(9.0)	-
Other income (expenses)	7.5	2.2	(5.3)	(71%)

(Unit: JPY Bn) FY2024 FY2025 YoY Growth

(Unit: JPY Bn) FY2025

(forecast) YoY

Revenue 986.0

1,050.9 +64.9

+7%

• Operating profit

Despite an increase in gross profit, net profit declined by ¥1.8 billion, primarily due to goodwill impairment and other factors.

Operating profit		43.9	42.1	(1.8)	(4%)
	Interest income
	(expenses)	(5.0)	(4.9)	+0.1	-
	Dividend income	1.3	1.2	(0.1)	(6%)
	Other finance income
	(costs)	(0.4)	(0.2)	+0.2	-

Revenue	1,050.9	1,100.0	+49.1
Operating profit	42.1	50.0	+7.9
Profit before tax	38.2	46.0	+7.8
Profit attributable to owners of the parent	27.5	30.0	+2.5

Profit attributable to owners of the parent

27.5

23.2

(Unit: JPY Bn)

• Profit before tax

Profit increased by ¥1.0 billion year-on-year, as the previous period included an impairment loss on equity method investments.

Finance income (costs) (4.1) (3.9) +0.2 -

• Profit attributable to owners of the parent

Achieved a record-high profit of

¥27.5 billion.

See page 4 for more details.

Profit attributable to owners of the parent 23.2

27.5 +4.3

+18%

Share of profit (loss) of investments accounted for

using the equity method, and Impairment loss on equity method investments	(2.6)	0.1	+2.6	-
Profit before tax 37.2		38.2 +1.0		+3%
Income tax expense	(12.7)	(11.8)	+0.9	-
Profit for the period	24.6	26.4	+1.9	+8%

30.0

FY2024 FY2025 FY2026 (forecast)

Profit and Loss

(Unit: JPY Bn) ICT Solution		FY2024	FY2025 99.5	YoY +10.7	Growth +12%	FY2026 (forecast) 105.0	YoY +5.5
	Revenue	88.8
	Operating profit	13.9	14.7	+0.7	+5%	15.0	+0.3
	Net profit1)	9.3	10.0	+0.6	+7%	10.5	+0.5
Electronics & Devices
	Revenue	236.4	271.4	+35.0	+15%	275.0	+3.6
	Operating profit	8.6	11.4	+2.8	+32%	13.7	+2.3
	Net profit	5.3	7.0	+1.7	+32%	8.9	+1.9
Foods, Meat & Grain
	Revenue	341.7	357.5	+15.8	+5%	385.0	+27.5
	Operating profit	8.0	7.8	(0.1)	(2%)	8.1	+0.3
	Net profit	3.5	3.1	(0.4)	(12%)	3.5	+0.4
Steel, Materials & Plant
	Revenue	211.7	198.4	(13.3)	(6%)	200.0	+1.6
	Operating profit	8.5	3.5	(4.9)	(58%)	7.5	+4.0
	Net profit	1.9	4.0	+2.1	+108%	3.8	(0.2)
Motor Vehicles & Aerospace
	Revenue	105.4	121.9	+16.5	+16%	130.0	+8.1
	Operating profit	4.9	4.8	(0.0)	(1%)	5.8	+1.0
	Net profit	3.0	3.2	+0.2	+8%	3.4	+0.2
Other (Including adjustment)
	Revenue	2.0	2.2	+0.2	+11%	5.0	+2.8
	Operating profit	0.1	(0.2)	(0.2)	-	(0.1)	+0.1
	Net profit	0.2	0.2	(0.0)	(1%)	(0.1)	(0.3)
Total
	Revenue	986.0	1,050.9	+64.9	+7%	1,100.0	+49.1
	Operating profit	43.9	42.1	(1.8)	(4%)	50.0	+7.9
	Net profit	23.2	27.5	+4.3	+18%	30.0	+2.5

(Unit: JPY Bn)

Revenue

+15.8

+16.5 +0.2 1,050.9

+35.0

(13.3)

+10.7

986.0

FY2024	ICT Solution	Electronics	Foods, Meat	Steel, Materials	Motor Vehicles	Other	FY2025
		& Devices	& Grain	& Plant	& Aerospace

(Unit: JPY Bn)

(0.1)

43.9

+0.7

(4.9)

42.1

(0.0)

(0.2)

+2.8

Operating profit

FY2024	ICT Solution	Electronics	Foods, Meat	Steel, Materials	Motor Vehicles	Other	FY2025
		& Devices	& Grain	& Plant	& Aerospace

Note: The full-year results for FY2024 have been reclassified from the former segment structure to the current segment structure based on audited figures.

1. Net profit = Profit attributable to owners of the parent

   Segment Information

   Profit Attributable to Owners of the Parent

   • ICT Solution ■ Electronics & Devices

   • Foods, Meat & Grain ■ Steel, Materials & Plant

• Motor Vehicles & Aerospace ■ Other (Including adjustment)

(Unit: JPY Bn)

ICT Solution increased ¥0.6 billion

• Despite increased expenses for personnel and office renovations, profits grew due to robust performance in

security-related services, as well as network and storage services, particularly in the manufacturing sector.

• Mobile: Profit grew due to the increase in directly operated stores, the expansion of sales channels, and the rise in sales volume, along with the growth of enterprise business, in contrast to the same period last year, when the costs related to store reorganization were incurred.

• Semiconductor Parts & Equipment Business: While semiconductor parts business showed a slowdown compared to the strong performance of the previous year, and semiconductor equipment business struggled due to the slow recovery of the semiconductor market, profit still increased, partly because of mergers and acquisitions.

• Electronic Devices & Materials: Profit declined due to the recognition of goodwill impairment losses.

Electronics & Devices increased ¥1.7 billion

• Grain, Oilseeds & Feedstuff: Driven by the firm performance of soybeans and other commodities, overall results remained largely flat.

• Foods: Retail transactions and sales of beverage ingredients remained firm, resulting in overall performance staying nearly flat.

• Meat Products: Sales struggled, leading to a decline in profit due to high overseas market prices, increased costs from yen depreciation, and sluggish domestic market conditions.

＋0.6

+1.7

(0.4)

+2.1

0.2

0.2

3.2

+0.2

3.0

1.9

4.0

3.5

3.1

5.3

7.0

9.3

10.0

Foods, Meat & Grain decreased ¥0.4 billion

• Steel, Steel Tubing: Despite the slowdown in steel tubing trades in North America, profit increased due to the absence of equity-method investment impairment losses recorded in the previous fiscal year.

• Plant: Profit increased due to strong performance in ODA (Official Development Assistance) projects.

• Energy: Due to sluggish demand, profit declined year-on-year compared to the strong performance in the previous fiscal year.

Steel, Materials & Plant increased ¥2.1 billion

FY2024 FY2025

Note:

The full-year results for FY2024 have been reclassified from the former segment structure to the current segment structure based on audited figures.

Motor Vehicles & Aerospace increased ¥0.2 billion

• Aerospace: Profits increased due to strong performance in aircraft and defense-related transactions.

Net Profit Breakdown