Flash Report for the Year Ended March 31, 2025 (based on Japan GAAP) (on a consolidated basis)

May 13, 2025

Name of the listed company: Fuji Seal International, Inc. Security code.: 7864 Stock exchange: Tokyo Prime URL: https://http://www.fujiseal.com

Representative: Shigeko Okazaki, President and CEO

Contact: Fumitaka Goto, IR Division Manager TEL +81-6-6350-1080 Scheduled date of annual shareholders' meeting: June 24, 2025 Scheduled date for submission of the Securities Report: June 23, 2025 Scheduled date for initiation of dividend payments: June 9, 2025 Prepared supplementary presentation material: Yes

Held results briefing: Yes (for securities analysts and institutional investors)

* All amounts are rounded down to the nearest million yen.

(1) Consolidated operating results (Millions of yen) (%: year on year change)

Net sales Operating profit Ordinary profit Profit attributable to

owners of the parent

Note: Comprehensive income

Fiscal year ended March 31, 2025: ¥18,776 million [28.9%]

Fiscal year ended March 31, 2024: ¥14,565 million [12.3%]

Earnings per share

(¥) Return on equity (%) Basic Diluted

Ordinary profit to total assets (%)

Operating profit to net sales (%)

Reference: Owners' equity

As of March 31, 2025: ¥145,269 million As of March 31, 2024: ¥132,142 million

1. Consolidated cash flows (Millions of yen)

   Cash flows from operating activities

   Cash flows from investing activities

   Cash flows from financing activities

   Cash and cash equivalents at fiscal year-end

   Fiscal year ended March 31, 2025	21,339	(12,459)	(3,417)	29,051
   Fiscal year ended March 31, 2024	19,930	(10,568)	(4,338)	22,788
   2. Dividends

   Cash dividends per share (¥) Total

   Payout

   Dividends to

   Quarter-end Fiscal

   dividends

   ratio

   net assets

   1st 2nd 3rd year-end Annual (full year) (consolidated) (consolidated)

   (millions of yen)

   (%)

   (%)

   Fiscal year ended March 31, 2024	-	17.00	-	43.00	60.00	3,287	32.0	2.6
   Fiscal year ended March 31, 2025	-	30.00	-	38.00	68.00	3,699	30.2	2.6

   Fiscal year ending March 31, 2026 (forecast)

   -

   35.00

   -

   36.00

   71.00

   22.0

   Note: The Company plans to pay a fiscal year-end dividend of ¥38 per share for the fiscal year ended March 31, 2025, an increase of

   ¥3 from the latest dividend forecast.

   For details, please refer to "Notice Regarding Revisions of Dividend Forecast (Dividend Increase)" announced today (May 13, 2025).

   1. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

      (Millions of yen) (%: year on year change)

      Net sales Operating profit Ordinary profit Profit attributable to

      owners of the parent

      Basic earnings

      per share (¥)

      Fiscal year ending

      216,000 1.7% 19,400 3.0% 19,700 7.5% 17,300 41.8% 322.49

      March 31, 2026

   2. Notes

      1. Significant changes in the scope of consolidation during the period: None New: - (Company name: -) Excluded: - (Company name: -)

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

         1. Changes in accounting policies due to revisions to accounting standards, etc.: Yes

         2. Changes in accounting policies other than 1.: None

         3. Changes in accounting estimates: None

         4. Restatements: None

      3. Number of ordinary shares issued at the end of the period

         As of March 31, 2025	60,161,956 shares	As of March 31, 2024	60,161,956 shares
         As of March 31, 2025	6,516,290 shares	As of March 31, 2024	5,908,810 shares
         Fiscal year ended March 31, 2025	54,236,144 shares	Fiscal year ended March 31, 2024	54,735,245 shares

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

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

         3. Average number of shares during the period

      Note: The number of treasury shares at the end of the period includes shares of the Company held by a saving-type employee stock ownership plan (ESOP) trust account (hereinafter, "the trust account"). In addition, shares of the Company held by the trust account are included in the treasury shares excluded from the calculation of the average number of shares during the period.

      • Consolidated financial results are exempt from audit conducted by certified public accountants or an audit firm.

      • Explanations concerning the appropriate use of business performance forecasts and other special notes

      This report contains business performance forecasts and other forward-looking statements based on data currently available to the Company as well as certain assumptions judged by the Company to be reasonable. The Company offers no assurance that its business performance forecasts and other forward-looking statements will be achieved. Actual financial results may differ significantly from expectations due to a variety of factors. Please refer to page 5 "(4) Forecasts" under "5. Overview of Consolidated Operating Results" for details on assumptions for business performance forecasts and cautionary matters regarding the use of business performance forecasts.

      (How to Obtain Financial Results Supplementary Briefing Materials)

      The financial results supplementary briefing materials will be posted on the Company's website.

   3. Overview of Consolidated Operating Results
   1. Overview of Consolidated Operating Results for the Fiscal Year Ended March 31, 2025

      For the fiscal year ended March 31, 2025, net sales came to ¥212,345 million (up 8.0% year on year), operating profit was

      ¥18,844 million (up 41.6%), and ordinary profit totaled ¥18,323 million (up 24.4%). Profit attributable to owners of the parent was ¥12,199 million (up 18.7%).

      (Millions of yen)

      	Fiscal year ended March 31, 2024 (previous fiscal year)	Fiscal year ended March 31, 2025 (fiscal year under review)	Change
      Net sales	196,624	212,345	8.0%
      Operating profit	13,309	18,844	41.6%
      Ordinary profit	14,732	18,323	24.4%
      Profit attributable to owners of the parent	10,277	12,199	18.7%

      Average exchange rate vs US dollar (yen)	140.67	151.69	7.8%
      Average exchange rate vs euro (yen)	152.11	164.05	7.8%

      The following is a breakdown of business performance by segment.

      (Millions of yen)

      		Fiscal year ended March 31, 2024 (previous fiscal year)	Fiscal year ended March 31, 2025 (fiscal year under review)	Change	Change in local currency terms
      Japan
      	Shrink Sleeve Labels	* 46,872	48,324	3.1%	-
      	Pressure Sensitive Labels	8,370	8,514	1.7%	-
      	Spouted Pouches	20,565	22,858	11.1%	-
      	Machinery	6,648	6,858	3.2%	-
      	Other	* 16,404	15,988	(2.5)%	-
      Total sales		98,861	102,545	3.7%	-
      Operating profit		8,779	9,892	12.7%	-
      Americas
      	Shrink Sleeve Labels	47,312	55,023	16.3%	7.9%
      	Pressure Sensitive Labels	1,865	2,896	55.3%	44.0%
      	Spouted Pouches	245	79	(67.7)%	(70.0)%
      	Machinery	7,331	8,176	11.5%	3.4%
      	Other	1,127	-	-	-
      Total sales		57,882	66,176	14.3%	6.0%
      Operating profit		3,368	6,489	92.7%	78.7%
      Europe
      	Shrink Sleeve Labels	16,694	17,770	6.4%	(1.3)%
      	Pressure Sensitive Labels	5,611	5,695	1.5%	(5.9)%
      	Machinery	8,834	11,256	27.4%	18.1%
      Total sales		31,140	34,721	11.5%	3.4%
      Operating profit		801	2,132	166.0%	146.6%
      ASEAN
      	Shrink Sleeve Labels	8,782	10,118	15.2%	6.8%
      	Pressure Sensitive Labels	186	82	(56.0)%	(59.2)%
      	Spouted Pouches	8,374	8,478	1.3%	(6.1)%
      	Machinery	677	813	20.0%	11.3%
      	Other	69	49	(28.8)%	(34.0)%
      Total sales		18,089	19,541	8.0%	0.2%
      Operating profit		482	937	94.2%	80.1%

      * From the fiscal year ended March 31, 2025, product sales categories in Japan have been reclassified. Accordingly, comparative analysis in the overview of consolidated operating results is based on the revised classification method for product sales categories.

      Japan

      Sales of shrink sleeve labels increased 3.1% year on year to ¥48,324 million. Sales of pressure sensitive labels increased 1.7% to ¥8,514 million. Sales of spouted pouches increased 11.1% to ¥22,858 million. Machinery sales increased 3.2% to

      ¥6,858 million. Sales of other products decreased 2.5% to ¥15,988 million.

      As a result, total sales in Japan came to ¥102,545 million (up 3.7% year on year). On the earnings front, operating profit increased 12.7% to ¥9,892 million.

      Americas

      Sales of shrink sleeve labels increased 16.3% (up 7.9% on a local currency basis) to ¥55,023 million. Sales of pressure sensitive labels increased 55.3% (up 44.0% on a local currency basis) to ¥2,896 million. Sales of spouted pouches decreased 67.7% (down 70.0% on a local currency basis) to ¥79 million. Machinery sales increased 11.5% (up 3.4% on a local currency basis) to ¥8,176 million.

      As a result, total sales in the Americas increased 14.3% (up 6.0% on a local currency basis) to ¥66,176 million. On the earnings front, operating profit increased 92.7% (up 78.7% on a local currency basis) to ¥6,489 million.

      Europe

      Sales of shrink sleeve labels increased 6.4% (down 1.3% on a local currency basis) to ¥17,770 million. Sales of pressure sensitive labels increased 1.5% (down 5.9% on a local currency basis) to ¥5,695 million. Machinery sales increased 27.4% (up 18.1% on a local currency basis) to ¥11,256 million.

      As a result, total sales in Europe increased 11.5% (up 3.4% on a local currency basis) to ¥34,721 million. On the earnings front, operating profit increased 166.0% (up 146.6% on a local currency basis) to ¥2,132 million.

      ASEAN

      Sales of shrink sleeve labels increased 15.2% (up 6.8% on a local currency basis) to ¥10,118 million. Sales of pressure sensitive labels decreased 56.0% (down 59.2% on a local currency basis) to ¥82 million. Sales of spouted pouches increased 1.3% (down 6.1% on a local currency basis) to ¥8,478 million. Machinery sales increased 20.0% (up 11.3% on a local currency basis) to ¥813 million. Sales of other products decreased 28.8% (down 34.0% on a local currency basis) to ¥49 million.

      As a result, total sales in ASEAN increased 8.0% (up 0.2% on a local currency basis) to ¥19,541 million. On the earnings front, operating profit increased 94.2% (up 80.1% on a local currency basis) to ¥937 million.

   2. Overview of Financial Condition as of March 31, 2025

      At the end of the fiscal year ended March 31, 2025, total assets had increased ¥17,138 million compared to the previous fiscal year-end to ¥209,822 million. The main factors included an ¥11,587 million increase in cash and deposits, a ¥2,109 million increase in notes and accounts receivable - trade (including electronically recorded monetary claims - operating), a ¥2,268 million increase in inventories, and a ¥2,323 million increase in property, plant and equipment.

      Total liabilities increased ¥4,011 million compared to the previous fiscal year-end to ¥64,553 million. The main factors included a ¥2,913 million increase in borrowings and a ¥1,216 million decrease in notes and accounts payable - trade (including electronically recorded obligations - operating).

      Total net assets increased ¥13,127 million compared to the previous fiscal year-end to ¥145,269 million. This mainly reflected an ¥8,198 million increase in retained earnings, a ¥1,674 million decrease due to the purchase and disposal of treasury shares, and a ¥6,641 million increase in foreign currency translation adjustment.

   3. Overview of Cash Flows for the Fiscal Year Ended March 31, 2025

   Net cash provided by operating activities for the fiscal year ended March 31, 2025 was ¥21,339 million (net cash of ¥19,930 million provided in the previous fiscal year). This mainly reflected the posting of profit before income taxes of ¥17,870 million and depreciation of ¥8,750 million. The main deductions were a ¥1,900 million decrease in trade payables and

   ¥4,865 million in income taxes paid.

   Net cash used in investing activities amounted to ¥12,459 million (net cash of ¥10,568 million used in the previous fiscal year). This was due primarily to ¥6,252 million in payments into time deposits, and ¥6,648 million in purchase of property, plant and equipment.

   Net cash used in financing activities was ¥3,417 million (net cash of ¥4,338 million used in the previous fiscal year). This was due primarily to a ¥2,703 million net increase in borrowings, ¥1,922 million in purchase of treasury shares, and

   ¥4,000 million in cash dividends paid.

   As a result, cash and cash equivalents at the end of the fiscal year ended March 31, 2025 had increased ¥6,263 million from the previous fiscal year-end to ¥29,051 million.

   (Reference) Cash flow indicators

   	2021/3	2022/3	2023/3	2024/3	2025/3
   Equity ratio (%)	64.7	66.5	67.0	68.6	69.2
   Equity ratio (market-to-market basis) (%)	85.6	56.0	45.9	58.4	66.8
   Cash flow interest bearing debt ratio (years)	0.7	0.9	1.5	0.4	0.5
   Interest coverage ratio (times)	317.6	217.4	79.4	50.2	116.5

   Equity ratio: Owner's equity/Total assets

   Equity ratio (market-to-market basis): Total market capitalization/Total assets Cash flow interest bearing debt ratio: Interest bearing liabilities/Cash flows Interest coverage ratio: Cash flows/Interest expenses

   Notes:

   1. All figures are given on a consolidated basis.

   2. Total market capitalization: Calculated based on the number of outstanding shares exclusive of treasury shares.

   3. Cash flow figures from operating activities are used.

   4. Interest-bearing liabilities cover all debt recorded in the consolidated financial statements for which interest is paid. Interest expense figures from the consolidated statements of cash flows are used.

2. Forecasts

In the fiscal year ending March 31, 2026, it is projected that it will remain difficult to forecast economic trends. At this time, the Company believes the U.S. tariff policy will have a minimal impact on its business performance and therefore has not included it in the business performance forecasts for the fiscal year ending March 31, 2026. However, the Company will continue to collect and analyze the latest information, including perspectives on raw material cost trends and the supply chain, and closely monitor risks. If it becomes necessary to reflect the tariff impact in its forecasts, the Company will promptly issue a notification.

In this economic environment, the Company aims to work on sustainably enhancing corporate value by addressing measures focused on the three priority issues established in the three basic strategies aimed at achieving sustainable growth by the fiscal year ending March 31, 2031. These priority issues are 1. Steadily strengthening the four existing business units, 2. Expansion of product markets/targets, and 3. Creation of new business models that will lead to the next generation.

As a result of these efforts, the Company expects its consolidated business performance (full year) forecast for the fiscal year ending March 31, 2026 to be as shown in the table below. Specifically, the Company forecasts consolidated net sales of ¥216,000 million, an increase of 1.7% year on year. On the earnings front, the forecast is for operating profit of ¥19,400 million (up 3.0% year on year), ordinary profit of ¥19,700 million (up 7.5%), and profit attributable to owners of the parent of ¥17,300 million (up 41.8%). In the fiscal year ending March 31, 2026, the liquidation of Fuji Seal Switzerland AG, as reported in the "Notice of Dissolution and Liquidation of Overseas Subsidiary" released on February 9, 2023, will be completed and is expected to have a temporary impact on profit.

(Millions of yen)