Sato Shoji : Summary of Consolidated Financial Results for the Year Ended March 31, 2025 (Based on Japanese GAAP)

DISCLAIMER: ThJ c enth e$hg d from a part of the Japanese orignuil for reference purposes only. In the event of any discrepancy between this translated document and the Japanese

Summary of Consolidated Financial Results for the Year Ended March 31, 2025 (Based on Japanese GAAP)

Company name: SATOSHOJI CORPORATION Listing: Tokyo Stock Exchange

Securities code: 8065

URL: https://www.satoshoji.co.jp

Representative: Tetsuo Nozawa, Representative Director, President Inquiries: Akihito Okeda, General Manager of Financial Dept. Telephone: [phone]

May 8, 2025

Scheduled date of annual general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled date to file annual securities report:

Preparation of supplementary material on financial results: Holding of financial results briefing:

June 19, 2025

June 20, 2025

June 19, 2025

Yes None

(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 (Percentages indicate year-on-year changes )

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 284,552 273,975	5.9 (0.4)	Millions of yen 6,817 6,479	5.2 5.6	Millions of yen 7,191 7,293	(1.4) 8.5	Millions of yen 6,015 6,478	(7.1) 4.6

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen
      March 31, 2025	285.90	281.19	9.0	4.2	2.4
      March 31, 2024	306.89	299.91	10.7	4.5	2.4

      Note: Comprehensive income For the fiscal year ended March 31, 2025:	¥5,105 million	[(52.3)%]
      For the fiscal year ended March 31, 2024:	Y10,705 million	[62.9%]

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

      For the fiscal year ended March 31, 2024:

   2. Consolidated financial position

      ¥55 million

      ¥47 million

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen		Yen
      March 31, 2025	171,143	68,454	39.8	3,247.11
      March 31, 2024	172,870	65,202	37.5	3,081.59

      Reference: Equity

      As of March 31, 2025:

      As of March 31, 2024:

   3. Consolidated cash flows

   ¥68,143 million

   ¥64,819 million

   	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	2,139	(3,001)	1,293	3,912
   March 31, 2024	8,229	(2,727)	(5,788)	3,115

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen
   Fiscal year ended March 31, 2024		32.00		41.00	73.00	1,538	23.8	2.5
   Fiscal year ended March 31, 2025		34.00		42.00	76.00	1,599	26.6	2.4
   Fiscal year ending March 31, 2026 (Forecast)		38.00		38.00	76.00		28.6

   Note: Revisions from the most recently published dividend forecasts: possession

   For the revision of the dividend forecast, please refer to the "Notice Regarding the Year-End Dividend Forecast" released today (May 8, 2025).

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Basic earnings per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		Yen
Six months ending September 30, 2025	139,500	(0.2)	2,950	6.3	3,200	5.1	2,700	(4.5)	128.32
Fiscal year ending March 31, 2026	290,000	1.9	6,800	(0.3)	7,200	0.|	5,600	(6.9)	266.14

*Notes

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

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

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

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

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

      As of March 31, 2025	21,799,050 shares
      As of March 31, 2024	21,799,050 shares

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

      As of March 31, 2025	813,079 shares
      As of March 31, 2024	764,743 shares

   3. Average number of shares outstanding during the period

Fiscal year ended March 31, 2025	21,041,166 shares
Fiscal year ended March 31, 2024	21,108,938 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 (Percentages indicate year-on-year changes.)

      	Net sales		Ordinary profit		Profit
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 241,136 236,384	2.0 (2.8)	Millions of yen 5,375 5,734	(6.3) 12.5	Millions of yen 4,836 5,377	(10.1) 7.7

      	Basic earnings per share	Diluted earnings per share
      Fiscal year ended	Yen	Yen
      March 31, 2025	229.85	226.06
      March 31, 2024	254.77	248.98

   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	151,579	56,617	37.2	2,683.87
   March 31, 2024	154,932	54,973	35.2	2,595.92

   Reference: Equity

   As of March 31, 2025: ¥56,323 million

   As of March 31, 2024: ¥54,603 million

2. Non-consolidated earnings forecast for the fiscal year ending March 31, 2026 (April 1, 2025 March 31, 2026)

(Percentages indicate year-on-year changes.)

	Net sales		Ordinary profit		Profit		Basic earnings per share
	Millions of yen		Millions of yen		Millions of yen		Yen
Six months ending September 30, 2025	117,500	(1.8)	2,450	(2.0)	2,150	(18.3)	102.18
Fiscal year ending March 31, 2026	243,500	1.0	5,100		4,050	(16.3)	192.48

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

Forward-looking statements, such as earnings forecasts, contained in this material are based on information available to the Company and are found to be reasonable.

It is based on a certain premise that we refuse, and it is not intended to be a promise by the Company to realize it. In addition, actual business performance, etc. may vary due to a variety of factors. Conditions on which earnings forecasts are premised and when using earnings forecasts

For precautions, please refer to the attached document page 3 "1. Please refer to "Summary of Business Results (4) Future Outlook". (How to obtain supplementary explanatory materials for financial results)

Supplementary financial results materials will be posted on TDnet and the Company's website (https://www.satoshoji.cojp/ja/ir.html) on May 14, 2025.

shares

Consolidated balance sheet			(Millions of yen)
	As of March 31, 2024		As of March 31, 2025
Assets
Current assets
Cash and deposits		3,175	3,912
Notes receivable - trade		6,298	3,110
Electronically recorded monetary claims - operating		31,395	27,133
Accounts receivable - trade		53,720	54,952
Merchandise and finished goods		28,956	29,453
Other		4,933	7,321
Allowance for doubtful accounts		(212)	(287)
Total current assets		128,267	125,596
Non-current assets
Property, plant and equipment
Buildings and structures	16,436		17,485
Accumulated depreciation	(10,320)		(10,493)
Buildings and structures, net	6,115		6,991
Machinery, equipment and vehicles	8,180		8,307
Accumulated depreciation	(6,787)		(6,367)
Machinery, equipment and vehicles, net	1,393		1,939
Land	13,001		14,320
Construction in progress	838		996
Other	1,075		1,219
Accumulated depreciation	(762)		(880)
Other, net	312		339
Total property, plant and equipment	21,661		24,587
Intangible assets	186		208
Investments and other assets
Investment securities	20,498		17,927
Deferred tax assets	90		96
Retirement benefit asset	1,079		1,165
Other	1,157		1,676
Allowance for doubtful accounts	(71)		shares	(114)
Total investments and other assets	22,755			20,751
Total non-current assets	44,602			45,547
Total assets	172,870			171,143

ay 14, 20Q5.

(Millions of yen)

	As of March 31, 2024		As of March 31, 2025
Liabilities
Current liabilities
Accounts payable - trade		55,178		49,605
Electronically recorded obligations - operating		13,127		9,137
Short-term borrowings		18,165		26,061
Income taxes payable		1,147		1,537
Contract liabilities		451		1,550
Provision for bonuses		1,489		1,903
Other		2,570		2,462
Total current liabilities		92,128		92,257
Non-current liabilities
Long-term borrowings	10,657		6,141
Deferred tax liabilities	4,311		3,767
Retirement benefit liability	172		217
Provision for retirement benefits for directors (and other officers)	58		60
Other	338		244
Total non-current liabilities	15,538		10,431
Total liabilities	107,667		102,688
Net assets
Shareholders' equity
Share capital	1,321		1,321
Capital surplus	818		732
Retained earnings	51,919		56,376
Treasury shares	(872)		(1,006)
Total shareholders' equity	53,186		57,423
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	9,920			8,599
Deferred gains or losses on hedges	0			(6)
Foreign currency translation adjustment	1,711			2,126
Total accumulated other comprehensive income	11,632			10,720
Share acquisition rights	369		ay 14, 20 5.	293
Non-controlling interests	14		shares	17
Total net assets	65,202			68,454
Total liabilities and net assets	172,870			171,143
	0			171,143

Consolidated statement of income
			(Millions of yen)
	Fiscal year ended March 31, 2024		Fiscal year ended March 31, 2025
Net sales		273,975	284,552
Cost of sales		253,125	261,780
Gross profit		20,849	22,771
Selling, general and administrative expenses		14,370	15,954
Operating profit		6,479	6,817
Non-operating income
Interest income		i3	30
Dividend income		838	641
Rental income		125	102
Purchase discounts		39	42
Share of profit of entities accounted for using equity method		47	55
Foreign exchange gains		58
Other		64	81
Total non-operating income		1,187	954
Non-operating expenses
Interest expenses		281	402
Loss on sale of trade receivables		22	4
Rental expenses		25	62
Foreign exchange losses			20
Other		43	90
Total non-operating expenses		373	579
Ordinary profit		7,293	7,191
Extraordinary income
Gain on sale of non-current assets			478
Gain on sale of investment securities		1,622	872
Other		5	6
Total extraordinary income		1,631	1,356
Extraordinary losses
Loss on retirement of non-current assets		2	5

Loss on valuation of investment securities

19

shares

3

Loss on sale of investment securities

ay 14, 2025. 6

Loss on valuation of shares of subsidiaries and associates 45

Impairment losses 7fi 171,1
Loss on sale of shares of subsidiaries		171,168
Other	i
Total extraordinary losses	72	145
Profit before income taxes	8,851	8,402
Income taxes - current	2,259	2,548
Income taxes - deferred	i1i	(163)
Total income taxes	2,371	2,384
Profit	6,480 8)	6,d}	5
Profit attributable to non-controlling interests	2	2
Profit attributable to owners of parent	6,478	6,015

Consolidated statement of comprehensive income

Fiscnl year ended March 31, 2024

(Millions of yen)

Fiscal year ended March 31, 2025

Profit

6,480

6,018

Other comprehensive income

Valuation difference on available-for-sale securities

3,607

(1,321)

Foreign currency translation adjustment

601

404

Deferred gains or losses on hedges 7 (6)

Share of other comprehensive income of entities accounted for using equity 11

method

Total other comprehensive income

4,224

(912)

Comprehensive income attributable to

Comprehensive income

Comprehensive income attributable to owners of parent

10,705

10,702

5,105

5,102

Comprehensive income attributable to non-controlling interests

3

ay 14, 20Q5.

shares

70 171,143

171,1 3

8) 3,115

Consolidated statement of changes in equity Fiscal year ended March 31, 2024

	Shareholders' equity
	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
Balance at beginning of period	1,321	838	46,915	(760)	48,315
Dividends of surplus			(1,477)		(1,477)
Profit attributable to owners of parent			6,478		6,478
Purchase of treasury shares				(176)	(176)
Disposal of treasury shares		(19)		64	45
Change in scope of consolidation
Other			2
Net changes in items other than shareholders' equity
Total changes during period		rests (19)	5,003	(112)	4,871
Balance at end of period	1,321	818 51,919		(872)	53,186

(Millions of yen)

	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Foreign currency translation adjustment	Total accumulated other comprehensive income	Share acquisition rights	Non-controlling interests	Total net assets
Balance at beginning of period	6,312	(6)	1,101	7,408	367	11	56,102
Dividends of surplus							(1,477)
Profit attributable to owners of parent							6,478
Purchase of treasury shares							(176)
Disposal of treasury shares							45
Change in scope of consolidation
Other
Net changes in items other than shareholders' equity	3,607		609	4,224		2	4,228
Total changes during period	3,607		609	4,224		2	9,100
Balance at end of period	9,920	0	1,711	11,632	369	14	65,202

ay 14, 20Q5.

shares

70

8)

3

Accumulated other comprehensive income

171,143

171,1 3

3,115

Consolidated statement of changes in equity Fiscal year ended March 31, 2025

	Shareholders' equity
	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
Balance at beginning of period	1,321	818	51,919	(872)	53,186
Dividends of surplus			(1,580)		(1,580)
Profit attributable to owners of parent			6,015		6,015
Purchase of treasury shares				(323)	(323)
Disposal of treasury shares		(70)		189	118
Change in scope of consolidation		(16)	20
Other			2
Net changes in items other than shareholders' equity
Total changes during period		r sts (86)	4,457	(133)	4,236
Balance at end of period	1,321	732 56,376		(1,006)	57,423

(Millions of yen)

	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Foreign currency translation adjustment	Total accumulated other comprehensive income	Share acquisition rights	Non-controlling interests	Total net assets
Balance at beginning of period	9,920	0	1,711	I1,632	369	14	65,202
Dividends of surplus							(1,580)
Profit attributable to owners of parent							6,015
Purchase of treasury shares							(323)
Disposal of treasury shares							118
Change in scope of consolidation
Other
Net changes in items other than shareholders' equity	(1,321)	(6)	415	(913)	(75)		(985)
Total changes during period	(1,320)	(6)	415	(912)	(75)	3	3,251
Balance at end of period	8,599	(6)	2,126	10,720	293	17	68,282

ay 14, 20Q5.

shares

70

8)

3

Accumulated other comprehensive income

171,143

171,1 3

3,115

Consolidated statement of cash flows

Fiscnl year ended March 31, 2024

(Millions of yen)

Fiscal year ended March 31, 2025

Cash flows from operating activities

Depreciation 1,051 1,151

Profit before income taxes

8,851

8,402

Increase (decrease) in allowance for doubtful accounts (377) 20

Increase (decrease) in provision for retirement benefits for directors (and other officers)	(13)
Decrease (increase) in retirement benefit asset	(281)	(85)
Increase (decrease) in retirement benefit liability	16	15
Interest and dividend income	(851)	(671)
Interest expenses	281	402
Share of loss (profit) of entities accounted for using equity method	(47)	(55)
Loss (gain) on sale of investment securities tS (1,619 (865J
Loss (gain) on sale and retirement of property, plant and equipment	(0)	(473)
Loss (gain) on sale of shares of subsidiaries and associates		68
Decrease (increase) in trade receivables	(1,513)	7,692
Decrease (increase) in inventories	1,756	429
Increase (decrease) in trade payables	2,523	(10,802)
Other, net	429	(1,168)
Subtotal	10,206	4,064
Interest and dividends received	853	672
Interest paid	(286)	(406)
Income taxes paid	(2,544)	(2,191)
Net cash provided by (used in) operating activities	8,229	2,139

5,202

ay 14, 20Q5.

shares

70 171,143

171,1 3

8) 3,115

Fiscal year ended March 31, 2024

(Millions of yen)

Fiscal year ended March 31, 2025

Cash flows from investing activities

Purchase of property, plant and equipment

(4,864)

(4,303)

Proceeds from sale of property, plant and equipment

20

582

Purchase of intangible assets

(107)

(37)

Purchase of investment securities

(26)

(286)

Purchase of shares of subsidiaries and associates

(444)

Proceeds from sale of investment securities

Purchase of shares of subsidiaries

(34)

Proceeds from sale of shares of subsidiaries and associates

1,877

160

1,266

Loan advances

(12)

(228)

Proceeds from sale of shares of subsidiaries 42

Proceeds from collection of loans receivable 91 372

Other, net

r sts

13/

7)

Cash flows from financing activities

Net cash provided by (used in) investing activities

Proceeds from long-term borrowings

3,000

Net increase (decrease) in short-term borrowings

Repayments of long-term borrowings

(2,727)

(2,601)

(4,560)

(3,001)

7,645

(4,645)

Purchase of treasury shares

(176)

(323)

Dividends paid

(1,475)

(1,583)

Other, net

25

200

Net cash provided by (used in) financing activities

Cash and cash equivalents at beginning of period

3,286

3,115

Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents

(5,788)

' (170)

1,293

2,1$

480

Increase (decrease) in cash and cash equivalents resulting from clunge in scope of consolidation

315

Cash and cash equivalents at end of period 3,115 3,912

5,202

ay 14, 20 5.

shares

70 171,143

171,1 3

8) 3,115

(Notes on segment information, etc.) Segment Information

1. Overview of Reporting Segments

   The Group's reporting segments are those of the constituent units of the Group for which separate financial information is available and are subject to periodic review by the Board of Directors in order to determine the allocation of management resources and evaluate business performance.

   The Group organizes its organization based on the products it handles, and grasps the plans and results of each organization.

   Accordingly, the Group has identified six reporting segments for each product it handles: the Steel Business, the Nonferrous Metals Business, the Electronics Business, the Life Sales Business, the Machinery and Tools Business, and the Business Development Business.

   The Steel segment sells ordinary steel, specialty steel, and construction materials and equipment.

   The Non-Ferrous Metals segment sells aluminum, zinc, metal-silicon, copper alloys and other non-ferrous products.

   The Electronics segment sells laminate materials for printed wiring boards and auxiliary materials related to manufacturing.

   The "Life Sales Business" includes metal tableware and cutlery, precious metals and accessories, business supplies such as tableware and kitchen utensils, novelty goods for corporate sales promotions, personal karaoke, etc., as well as the Scandinavian Danish tableware brand "DANSK" and Japan's leading industrial designer and cultural meritorious "Sori Yanagi" We sell products designed by him.

   The Machinery & Tools segment sells machine tools and various equipment and equipment, imported machinery, cutting tools, grinding wheels, etc., as well as proposes comprehensive factory automation.

   In the Business Development Business, we work with manufacturers with unique technologies to develop and propose environmentally friendly products that take into account the latest technologies demanded by the times and the preservation of the global environment.

2. Method of calculating the amount of sales, profits or losses, assets, liabilities and other items for each repomng segment

   The method of accounting for the reported business segments is in accordance with the accounting policy adopted to prepare consolidated financial statements.

3. Information on the amount of sales, profits or losses, assets, liabilities, and other items for each reporting segment. The previous fiscal year (April 1, 2023 to March 31, 2024)

(in millions of yen)

	Iron and Steel	Non-ferrous Metalr sts	Electronic	Life Sales	Machinery and Tools	Business Development	3 Total	Adjustment amouat	Amount recorded in consolidated financial statemelds (Note 2) (Note 3)
Sales Revenues from external customers Transactions with other segments	181,785	39,281	35,841	8,141	4,396	4,530	273,975
									273,975
Total	181,785	39,281	35,841	8,141	4,396	4,530	273,975		273,975
Segment profit (loss)	3,947	588	1,633	241	(63)		9		6,479
Segment Assets	107,268	16,930	17,333	5,055	1,633	, ,47'	..116	22,801	172,870
Depreciation and amortization (Note 4) Increase in property, plant and equipment and intangible assets (Note 5)	812 4,574	104 5	84 260	18 4			1,033	18 126	1,051 2,§ 72
						4,846

Note: 1. The amount of adjustment is as follows.

1. Adjusted segment assets of ¥22,801 million are assets not attributable to the reporting segment.

2. The 18 million yen adjustment for depreciation and amortization is for assets not attributable to the reporting segment.

3. The adjustment of 126 million yen for the increase in property, plant and equipment and intangible assets relates to assets not attributable to the reporting segment. Are.

1. Segment profit or loss (loss) is consistent with operating income in the consolidated statements of income.

2. Segment assets are in line with total assets on the consolidated balance sheet.

3. Depreciation includes amortization of long-term prepaid expenses.

4. The increase in property, plant and equipment and intangible assets includes an increase in long-term upfront expenses.

115

3,912

5,202

ay 14, 20 5.

shares

70 171,143

171,1 3

8) 3,115

The current fiscal year (April 1, 2024 to March 31, 2025)

(in millions of yen)

	Iron and Steel	Non-ferrous Metals	Electronic	Life Sales	Machinery and Tools	Business Development	Total	Adjustment amount (Note 1)	Amount recorded in consolidated financial statements (Note 2) (Note 3)
Sales Revenues from external customers Transactions with other segments	177,897	41,954	43,633	9,744	6,889	4,433	284,552
									284,552
Total	177,897	41,954	43,633	9,744	6,889				284,552
Segment Profit	3,365	404	2,235	430	227				6,817
Segment Assets	103,099	16,480	22,702	3,902	2,702			20,524	171,143
Other items
Depreciation and amortization (Note 4)	888	101	95	18	5	6	1,116	34	1,151
Increase in property, plant and equipment and intangible assets (Note 5)	3,985	3 r sts	310	9		0 3	4,310	30	4,341 3

Note: 1. The amount of adjustment is as follows.

1. Adjusted segment assets of ¥20,524 million are assets not attributable to the reporting segment.

2. The adjustment for depreciation and amortization of ¥34 million relates to assets not attributable to the reporting segment.

3. The adjustment amount of 30 million yen for the increase in property, plant and equipment and intangible assets relates to assets not attributable to the repomng segment. Are.

1. Segment profit is consistent with operating income in the consolidated statements of income.

2. Segment assets are in line with total assets on the consolidated balance sheet.

3. Depreciation includes amortization of long-term prepaid expenses.

4. The increase in property, plant and equipment and intangible assets includes an increase in long-term upfront expenses.

5. Information on impairment losses or goodwill on fixed assets in the reporting segment (Significant impairment loss on fixed assets)

In the Steel Business segment, impairment loss on fixed assets was 27 million yen.

In the adjustment item, an impairment loss of 34 million yen was recorded on fixed assets not attributable to the reporting segment.

2

115

2,13

3,912

xpenses.

5,202

ay 14, 20 5.

shares

70 171,143

171,1 3

8) 3,115