Sato Sho-ji Corporation · TSE:8065
Sato Sho-ji — FY2025/3 Earnings Presentation
33 slides from Sato Sho-ji's earnings presentation, May 2025
Slide 1: Financial Results Presentation Material for FY Ended March 31, 2025
FINANCIAL RESULTS PRESENTATION MATERIAL For the Fiscal Year Ended March 31, 2025 SATO SHOJI CORPORATION TSE Prime Market Code No. 8065
Slide 2: Contents
Contents 1. About Sato Shoji Group 03 2. 2025/3 Consolidated Results 16 3. 2026/3 Consolidated Forecasts 21 4. The 3rd Medium-term Management Plan Initiatives 24 5. Action to Implement Management that is Conscious 30 of Cost of Capital and Stock Price 2
Slide 3: 1. About Sato Shoji Group
SATOSHOJI 1. About Sato Shoji Group
Slide 4: Company Profile
1. About Sato Shoji Group Company Profile Company name SATO SHOJI CORPORATION Founded February 24, 1930 Established February 5, 1949 Capital 1,321,368,450 yen Representative President Tetsuo Nozawa Directors Senior Managing Executive Officer Masami Urano Consolidated: 1,055 Employees Non-Consolidate
Slide 5: Company Profile: Domestic Bases
1. About Sato Shoji Group Company Profile Centered on its Tokyo Head Quarters, Sato Shoji has warehouses, machining facilities, and distribution centers in a network of 41 branches in Japan, Domestic Bases establishing a system that enables swift responses to customers’ requests. The Iron and Steel
Slide 6: Company Profile: Domestic Affiliates
1. About Sato Shoji Group Company Profile The Sato Shoji Group has 11 subsidiaries and affiliated companies with 14 locations in Japan. They include companies Domestic from a variety of industries, with a focus on the Iron & Steel business. Affiliates Making effective use of our network of domestic
Slide 7: Company Profile: Overseas Bases
1. About Sato Shoji Group Company Profile Our first step overseas was the establishment of SATO SHOJI HONG KONG CO., LTD. in 2004. Since then, the Sato Shoji Group has established Overseas Bases business bases in 21 locations in 11 countries and regions. United as one, the Group will work together t
Slide 8: Services and Products
1. About Sato Shoji Group Services and Products Iron and Steel Dept. Machinery and Tools “Iron and Steel” will retain a Dept. leading role throughout the 21st Factory automation advisory century services to reinforce manufacturing operations Non-ferrous Metals Dept. Life Sales Dept. Proactive develo
Slide 9: Iron and Steel Dept.
1. About Sato Shoji Group Iron and Steel Dept. We provide a wide variety of iron and steel products, including normal steel, specialty steel, and construction materials, both in Diverse product lineup Japan and overseas. Robust supply chain both in We respond swiftly to the needs of customers both i
Slide 10: Non-ferrous Metals Dept.
1. About Sato Shoji Group Non-ferrous Metals Dept. Broad procurement sources in Japan We seek out procurement sources in Japan and overseas on a daily basis. and overseas Strengths Just-in-time logistics responses We have depot functions utilizing partner companies in Japan, Thailand, Vietnam, Indon
Slide 11: Electronics Dept.
1. About Sato Shoji Group Electronics Dept. Aggressive overseas Overseas sales accounts for about 70% of Electronics Department sales. We capture further growth opportunities by establishing new expansion overseas bases and expanding sales in overseas markets. Strengths We handle a wide variety of m
Slide 12: Machinery and Tools Dept.
1. About Sato Shoji Group Machinery and Tools Dept. We handle diverse products from more than 250 companies in Japan and overseas, such as machining tools, forging Diverse product lineup machines, robots, and cutting tools, to meet a wide range of needs. Strengths One-stop solutions We offer one-sto
Slide 13: Life Sales Dept.
1. About Sato Shoji Group Life Sales Dept. We handle a diverse range of products, with a focus on houseware. We develop products by understanding consumers’ needs and wants, and use a market-oriented sales strategy to bring products that Strengths consumers are seeking to market. Our integrated syst
Slide 14: Business Development Dept.
1. About Sato Shoji Group Business Development Dept. We handle a wide range of environmentally conscious products of manufacturers that have their own technologies. We propose improvements for the global environment and working environments. Strengths We have fully established work management system
Slide 15: Sato Shoji's Strengths
1. About Sato Shoji Group Sato Shoji’s Strengths Independent steel trading company Customer-oriented service provision From its unique position and competitive strengths as Each department offers flexible services in response to an independent steel trading company that links users customers needs,
Slide 16: 2. 2025/3 Consolidated Results
2. 2025/3 Consolidated Results 16
Slide 17: Summary of Financial Results
2. 2025/3 Consolidated Results Summary of Financial Results (Millions of yen; %) 2024/3 2025/3 Year-on-year change Amount Composition ratio Amount Composition ratio Amount Percentage Net sales 273,975 100% 284,552 100% 10,577 3.9% Gross profit 20,849 7.6% 22,771 8.0% 1,922 9.2% Selling, general and
Slide 18: Net Sales and Profit by Segment
2. 2025/3 Consolidated Results Net Sales and Profit by Segment Segment Net Sales Segment Profit (Operating Profit) (Millions of yen) 300,000 4,530 4,433 4,602 6,889 4,396 9,744 8,610 6,243 8,141 10,000 3,420 29,510 35,841 43,633 5,455 10,692 29,163 41,122 39,281 Business Development 200,000 41,954 1
Slide 19: Balance Sheet
2. 2025/3 Consolidated Results Balance Sheet (Millions of yen) (Millions of yen) 2024/3 2025/3 YoY change Current assets 128,267 125,596 △2,671 Cash and deposits 3,175 3,912 737 Notes and accounts 150,000 receivable – trade Electronic recorded 91,413 85,195 △6,218 Current liabilities monetary claims
Slide 20: Cash Flow
2. 2025/3 Consolidated Results Cash Flow (Millions of yen) 2,139 (3,001) (Millions of yen) 2024/3 2025/3 Change Cash flows from operating activities 8,229 2,139 (6,090) 364 3,912 1,293 Other Cash flows from investing activities (2,727) (3,001) (274) CF from 3,115 operating activities Cash flows from
Slide 21: 3. 2026/3 Consolidated Forecasts
3. 2026/3 Consolidated Forecasts 21
Slide 22: Results Forecasts for the Fiscal Year Ending March 31, 2026
3. 2026/3 Consolidated Forecasts Results Forecasts for the Fiscal Year Ending March 31, 2026 (Millions of yen; %) 2025/3 2026/3 (Forecast) YoY change Amount Composition ratio Amount Composition ratio Amount Percentage Net sales 284,552 100% 290,000 100% 5,448 1.9% Operating profit 6,817 2.4% 6,800 2
Slide 23: Dividend Forecast
3. 2026/3 Consolidated Forecasts Dividend Forecast Dividend Policy • Dividend of at least 30% of consolidated deemed profit* and a minimum annual dividend of 76 yen per share • Dividends of surplus will be paid twice a year in principle: interim and year-end (Millions of yen) 100 50.0% 2024/3 2025/3
Slide 24: 4. The 3rd Medium-term Management Plan Initiatives
4. The 3rd. Medium-term Management Plan Initiatives 24
Slide 25: Basic Policy of the Third Medium-term Management Plan
4. The 3rd Medium-term Management Plan Initiatives Basic Policy of the Third Medium-term Management Plan Medium-term Management Plan (FY2023 – FY2025) S a t o S h o j i G r o u p’s M a na g e m e n t P h i l os oph y To make wide-reaching contributions to society through distribution and services Th
Slide 26: Major KPIs
4. The 3rd Medium-term Management Plan Initiatives Major KPIs Third Medium-term Management Plan Period Rate of Progress Against Target 2026/3 YoY (Growth Plan Final Strategy Each indicator 2023/3 2024/3 2025/3 (Forecast) Rate) Year Target 2024/3 2025/3 Net sales 275.0 billion yen 273.9 billion yen 2
Slide 27: Progress of Capital Policies
4. The 3rd Medium-term Management Plan Initiatives Progress of Capital Policies 1 Medium- to Long-term Growth Investments 3-Year Total Investment Target 13.0 billion yen or more The cumulative total amount invested over the two years of FY2024/3 and FY2025/3 was 9.8 billion yen. The rate of progress
Slide 28: Progress of Capital Policies: Human Capital
4. The 3rd Medium-term Management Plan Initiatives Progress of Capital Policies Use of and investment in human capital Progress from activities in 2025/3, the 2nd year of the Plan Strengthening of human resources development Further improvement of working environment Utilization of diverse talent
Slide 29: Promotion of Activities Toward Decarbonization (Carbon Neutrality)
4. The 3rd Medium-term Management Plan Initiatives Promotion of Activities Toward Decarbonization (Carbon Neutrality) The status of initiatives conducted during 2024/3, the first year of the Plan, is as follows. We will continue to promote concrete actions, indicating them with numbers. Key Themes S
Slide 30: 5. Action to Implement Management Conscious of Cost of Capital and Stock Price
5. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 30
Slide 31: Analysis of Current Situation (Progress)
5. Management that is Conscious of Cost of Capital and Stock Price Analysis of Current Situation (Progress) Analysis of current situation (March 31, 2024) Response to improvement Cost of capital: WACC (Weighted average cost of capital) 5.2% ROIC 5.3% Promotion and achievement ROE 9.0% of the Third M
Slide 32: Initiatives to Enhance Corporate Value
5. Management that is Conscious of Cost of Capital and Stock Price Initiatives to Enhance Corporate Value Enhance corporate value through promotion and achievement of the Third Medium-term Management Plan (FY2023 – FY2025) Steadily achieve performance targets Promote strengthening of capital policie
Slide 33: Disclaimer
Disclaimer • The purpose of this material is to provide information about business performance, and it is not intended as a solicitation of investment in the securities issued by the Company. • The information and forecasts presented in this material are based on information available to the Company