FY2025 Second Quarter Financial Results Supplementary Briefing Materials

Consolidated sales increased 3.9% year-on-year, driven by continued growth in the Americas and Europe. Consolidated operating profit increased significantly by 27.1% year-on-year, driven by improved profitability primarily in overseas regions. While the operating profit progress rate at the end of the second quarter was 60.2%, operating profit is expected to converge to some extent in the second half, reflecting the traditional tendency for higher first-half performance. We will continue to closely monitor market conditions in each region, including developments in U.S. tariff policies. The regional overview is as follows.

Segment YoY Change

Sales

Operating Profit

Japan

Increased in sales, decreased in profit

• SSL sales increased due to the effect of price revisions.

• PSL sales decreased due to strategic portfolio management intentionally which was expected.

• Spouted pouches sales increased due to continued strong sales for beverages and large pouches for daily necessities.

• Machinery sales increased due to strong performance in service-related areas.

• Raw material costs and base-up were the main factors pressuring profits. Currently working on price revisions and various improvement measures.

• Profit decreased due to development costs for growth areas and the impact of upfront investments.

Americas

Increased in sales and profit*

• SSL sales increased due to strong orders, particularly in dairy and daily necessities. There was no significant impact from a reactionary decline following strong advance orders in Q1.

• PSL sales decreased due to reduced volumes from big projects resulting from packaging format changes.

• Spouted Pouch sales increased due to sales of inverted pouches.

• Machinery sales increased due to SSL labelers for major dairy and daily goods customers.

• Increased production volume at two SSL factories in the United States improved production efficiency, resulting in increased profits.

• The impact of tariff policies on performance was minor, as anticipated.

Europe

Increased in sales and profit*

• SSL saw an increase in sales due to strong orders from beverage customers.

• PSL sales increased due to strong orders for multilayer labels and major household goods.

• Machinery saw strong sales of PSL labelers for the pharmaceutical market. Additionally, SSL labelers also performed well, leading to increased sales.

• For SSL and PSL, increased production volume improved production efficiency, leading to increased profits.

• Machinery saw increased profits due to strong sales of high-margin PSL labelers and robust service performance.

ASEAN

Decreased in sales, increased in profit*

• SSL sales decreased due to continued stagnation in beverage demand in Thailand.

• Spouted pouches sales decreased as expected due to reduced shipments of major household goods for export.

• Profit increased due to higher orders for large refill pouches for the Thai domestic market.

• Continued efforts to reduce manufacturing costs and fixed expenses.

(Millions of yen)

FY2024

2nd quarter

FY2025

2nd quarter

Increase/Decrease

FY2025

Vs. Announced in May

(Amount)

(%)

Announced

Progress rate

Net sales

105,234

109,328

+4,094

+3.9%

216,000

50.6%

Operating profits (Operating Profit

9,186

11,671

+2,485

+27.1%

19,400

60.2%

Margin)

(8.7%)

(10.7%)

(+1.9pt)

(9.0%)

(+1.7pt)

Ordinary profits (Ordinary Profit

8,581

12,004

+3,422

+39.9%

19,700

60.9%

Margin)

(8.2%)

(11.0%)

(+2.8pt)

(9.1%)

(+1.9pt)

Net profits

5,700

9,147

+3,446

+60.5%

17,300

52.9%

(Net Profit Margin)

(5.4%)

(8.4%)

(+2.9pt)

(8.0%)

(+0.4pt)

Foreign Currency Translation

Rate (average)

USD

152.36

148.40

△2.6%

145.00 +2.3%

EUR

164.70

162.25

△1.5%

155.00 +4.7%

(Millions of yen)

FY2024

2nd quarter

FY2025

2nd quarter

Year-on-year change

Change

Rate of change

Excluding forex impact Rate of change

Japan

51,742

51,768

25

+0.0%

-

Shrink label

25,669

26,139

470

+1.8%

-

PS label

4,426

3,852

△574

△13.0%

-

Spouted pouch

11,416

11,659

243

+2.1%

-

Machinery

2,383

2,437

54

+2.3%

-

Others

7,847

7,678

△168

△2.1%

-

Americas

31,505

33,697

2,192

+7.0%

+9.8%

Shrink label

27,450

28,485

1,035

+3.8%

+6.5%

PS label

1,394

1,337

△57

△4.1%

△1.6%

Spouted pouch

32

138

106

+332.0%

+343.5%

Machinery

2,627

3,736

1,108

+42.2%

+46.0%

Europe

17,566

19,470

1,903

+10.8%

+12.5%

Shrink label

9,457

10,001

543

+5.7%

+7.3%

PS label

2,769

3,597

827

+29.9%

+31.8%

Machinery

5,339

5,871

532

+10.0%

+11.6%

ASEAN

10,009

9,321

△688

△6.9%

△4.4%

Shrink label

5,033

4,964

△68

△1.4%

+1.3%

PS label

62

15

△46

△75.3%

△74.6%

Spouted pouch

4,503

4,119

△384

△8.5%

△6.1%

Machinery

386

190

△195

△50.6%

△49.2%

Others

24

31

7

+31.0%

+34.5%

Eliminations

△5,588

△4,928

660

Consolidated net

105,234

109,328

4,094

+3.9%