Toshiba Tec : Statement of Accounts (2025.3)

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.

Consolidated Financial Results for the Year Ended March 31, 2025

[Japanese GAAP]

May 12, 2025

Company name: Toshiba Tec Corporation Stock exchange listing: Tokyo

Code number: 6588

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

Representative: Hironobu Nishikori President and CEO

Contact: Akira Abe General Manager of Corporate Communications Division Phone [phone]

Scheduled date of Annual General Meeting of Shareholders: June 23, 2025 Scheduled date of commencing dividend payments: June 4, 2025 Scheduled date of filing annual securities report: June 20, 2025

Availability of supplementary briefing material on annual financial results: Yes Schedule of annual financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

   1. Consolidated Operating Results (% indicates changes from the previous corresponding period.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2025 March 31, 2024	Million yen 577,023 548,135	% 5.3 7.3	Million yen 20,251 15,854	% 27.7 (1.4)	Million yen 18,344 11,004	% 66.7 (16.3)	Million yen 29,937 (6,707)	% - -

      (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	22,428 million	[ 340.5 %]
      	Fiscal year ended March 31, 2024:	¥	5,092 million	[ - %]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets	Operating profit to net sales ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2025	565.44	565.39	30.5	5.4	3.5
      March 31, 2024	(123.92)	-	(7.3)	3.4	2.9

      (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2025: ¥ 1,621 million

      Fiscal year ended March 31, 2024: ¥ - million (Note) Diluted earnings per share for the fiscal year ended March 31, 2024 is not presented even though the Company has issued

      potential shares, because basic earnings per share was net loss.

   2. Consolidated Financial Position

      	Total assets	Net assets	Capital adequacy ratio	Net assets per share
      As of	Million yen	Million yen	%	Yen
      March 31, 2025	346,371	115,685	31.2	2,041.02
      March 31, 2024	337,509	96,236	26.1	1,663.74

      (Reference) Equity: As of March 31, 2025:	¥	108,076 million
      As of March 31, 2024:	¥	88,060 million

   3. Consolidated Cash Flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
   Fiscal year ended	Million yen	Million yen	Million yen	Million yen
   March 31, 2025	24,886	(9,987)	(5,739)	47,933
   March 31, 2024	19,411	(16,135)	(3,624)	48,581

2. Dividends

   	Annual dividends					Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
   March 31, 2024	-	20.00	-	25.00	45.00	2,381	-	2.6
   March 31, 2025	-	20.00	-	25.00	45.00	2,382	8.0	2.4
   Fiscal year ending March 31, 2026 (Forecast)	-	-	-	-	-		-

   (Note) The dividends for the fiscal year ending September 30, 2025, and the fiscal year ending March 31, 2026, will be announced as soon as announce is possible.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

The consolidated financial results forecast for the fiscal year ending March 31, 2026 are not reported, as it is not feasible at present to reasonably calculate them.

The forecasts will be announced as soon as reasonable calculation is possible.

*Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes

   New - (Company name: )

   Exclusion: 5 companies (Company name: Toshiba Tec Information Systems (Shenzhen) Co., Ltd., Toshiba Tec (H.K.)

   Logistics & Procurement Ltd., Toshiba Tec Malaysia Manufacturing Sdn. Bhd., etc.) (Note) Furthermore, the Company has one consolidated subsidiary that was established on April 1, 2024 and succeeded to the shares

   by ETRIA CO., LTD.

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

   1. Changes in accounting policies due to the revision of accounting standards: Yes

   2. Changes in accounting policies other than 1) above: No

   3. Changes in accounting estimates: No

   4. Retrospective restatement: No

      (Note) For details, please refer to "3.Consolidated Financial Statements and Notes (5) Notes to the consolidated financial statements (Changes in accounting policies)" on page 14 of this report.

3. Total number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 57,629,140 shares

      March 31, 2024: 57,629,140 shares

   2. Total number of treasury shares at the end of the period: March 31, 2025: 4,677,354 shares

      March 31, 2024: 4,700,044 shares

   3. Average number of shares during the period:

Fiscal year ended March 31, 2025: 52,945,424 shares

Fiscal year ended March 31, 2024: 54,120,759 shares

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

1. Non-consolidated Operating Results (% indicates changes from the previous corresponding period.)

   	Net sales		Operating profit		Ordinary profit		Net income
   Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
   March 31, 2025	264,200	(1.7)	2,391	86.5	10,540	(67.0)	13,641	52.3
   March 31, 2024	268,846	16.4	1,282	-	31,939	442.7	8,954	-

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2025	257.64	257.62
   March 31, 2024	165.45	165.40

2. Non-consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share
As of	Million yen	Million yen	%	Yen
March 31, 2025	202,318	82,170	40.6	1,551.51
March 31, 2024	205,706	70,637	34.3	1,334.19

(Reference) Equity: As of March 31, 2025:	¥	82,155 million
As of March 31, 2024:	¥	70,617 million

*Financial results reports are exempt from the audit conducted by certified public accountants or an audit corporation

*Proper use of earnings forecasts, and other special matters

It is expected to remain unpredictable due to a number of uncertain factors such as the impact of tariffs in the U.S., the consequent impact on the global economy, exchange rate trends, and geopolitical risks.

As for the consolidated financial results forecast for the fiscal year ending March 31, 2026, we plan to carefully assess the impact of tariffs in the U.S. and other factors, and promptly disclose the forecast once a reasonable calculation becomes feasible.

Table of Contents of Attachments

1. Summary of consolidated business results, etc 2

   1. Summary of consolidated business results etc. for the period under review 2

   2. Financial condition 3

   3. Overview of cash flows 4

   4. Future outlook 5

2. Basic approach to selection of accounting standards 6

3. Consolidated Financial Statements and Notes 7

   1. Consolidated Balance sheet 7

   2. Consolidated Statement of Income and Comprehensive Income 9

      Consolidated Statement of Income 9

      Consolidated Statement of Comprehensive Income 10

   3. Consolidated Statement of Changes in Net Assets 11

   4. Consolidated Statement of Cash Flows 13

   5. Notes to the consolidated financial statements 14

      Notes on going concern assumption 14

      Changes in accounting policies 14

      Segment information 14

      Business combinations 16

      Per share information 19

      Significant subsequent events 20

4. Supplementary information 21

   1. Changes in information about financial results 21

   2. Changes in reportable segment information 22

   3. Changes in net sales by destination market 23

   4. Changes in proportion of overseas production by value 23

   5. Changes in resource inputs 23

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1. Summary of consolidated business results, etc.

(1) Summary of consolidated business results etc. for the period underreview

Consolidated business results for the fiscal year ended March 31, 2025

The world economy for the fiscal year ended March 31, 2025 picked up moderately overall. However, the outlook still remained uncertain due mainly to price rises, and the heightened geopolitical risks.

Amid such conditions, the Company and its subsidiaries (collectively, the "Group") have been pursuing the Basic Policy of the FY24-26 Mid-term Business Plan, "To become a global top solutions partner by generating new value through co-creation with the aim of contributing to the resolution of social issues." Under the basic policy, the Group has striven to strengthen the profitability of core businesses, expand new business areas, transform management, enhance human resources, and promote sustainability, etc. toward sustainable growth. In this way, the Group has strived to contribute to the resolution of social issues with the aim of becoming a global top solutions partner.

In the fiscal year ended March 31, 2025, net sales were ¥577,023 million (up 5% year on year) due mainly to increased sales of POS systems for the overseas market and the impact of foreign exchange rates. On the profit front, the profit and loss of POS systems for the overseas markets, mainly in the Americas, improved, and the profitability of multifunction peripherals (MFPs) continued to secure a certain level of profit despite a decline in profit due to a decrease in the scale of sales from October 2024 onwards, resulting in operating profit of ¥20,251 million (up 28% year on year), and ordinary profit of ¥18,344 million (up 67% year on year). And profit attributable to owners of parent was ¥29,937 million (loss attributable to owners of parent of ¥6,707 million in the same period of the previous fiscal year) despite recording restructuring cost under extraordinary losses, primarily due to recording gain on change in equity and gain on sale of businesses under extraordinary income in line with each of the transfers of the Group's businesses related to the development and manufacturing of MFPs and auto ID systems to ETRIA CO., LTD. which is the joint venture between the Company and Ricoh Company, Ltd., and all of the inkjet head businesses of the Group to RISO Technologies Corporation, a wholly-owned subsidiary of RISO KAGAKU CORPORATION.

Regarding the year-end dividend for the fiscal year ended March 31, 2025, as a result of comprehensive consideration of the above business results, the business environment and other factors, the Company has decided to pay a dividend of ¥25 per share, the same amount as the year-end dividend for the previous fiscal year.

Results of reportable segments for the fiscal year ended March 31, 2025 were as follows.

Retail Solutions Business Group

The Retail Solutions Business Group handles POS systems for domestic and overseas markets, auto ID systems for domestic market, and related products. Amid a severe business environment in which intensifying competition with peers continues, the business group has worked on expanding its customer base etc. for the expansion of new business areas in addition to expanding its solution business through the global retail platform "ELERA" and strategic partnership, boosting recurring revenue business and maintenance services (BPO) covering not only our equipment but also IT equipment of other companies.

Sales of POS systems for the domestic market were generally the same level as the previous fiscal year due to efforts to expand sales mainly of self-checkout systems, payment terminals, and "Smart Receipt", as well as revisions of product prices and maintenance service prices, despite continued harsh conditions due to the impact of soaring raw material prices, rising prices.

Sales of POS systems for overseas markets increased due to an increase in sales in mainly the Americas, and the impact of foreign exchange rates.

Sales of auto ID systems for the domestic market decreased, due to a decline in sales of high-end model, although strong sales of portable printers and other products mainly to specific customers.

As a result, net sales of the Retail Solutions Business Group were ¥333,587 million (up 7% year on year). Operating profit of the business group was ¥8,098 million (up 260% year on year), reflecting the fact that the profit of POS systems for the domestic market remained at a similar level to the previous fiscal year despite being affected by the negative impact of foreign exchange rates, and profit and loss of POS systems for overseas markets improved mainly in the Americas.

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