FY2025 Third Quarter Financial Results Supplementary Briefing Materials

Supported by strong first-half performance, cumulative consolidated operating sales increased 1.6% year-on-year, and cumulative consolidated operating profit increased 11.7% year-on-year. Consolidated operating profit at the Q3 is 81.4% of the announced forecast, but as announced at the Q2, it is converging toward the second-half. Both consolidated operating sales and consolidated operating profit are expected to be in line with the announced forecasts. The overview by region is as follows.

Business Segment Year-on-Year Comparison

Sales

Operating Profit

Japan

Decreased in sales and profit

• Regarding SSL, the impact of a decrease in volume due to price increases by customers will be offset by the effect of price revisions.

• Regarding PSL, we continue strategic withdrawals through portfolio management.

• Spouted pouch sales decreased due to reduced orders from some daily necessities customers.

• Machinery saw steady service-related business, but acceptance of new machine projects was carried over to the Q4.

• Regarding others, the decline in sales was due to the withdrawal of unprofitable products through portfolio management.

• Price revisions were unable to fully absorb the rise in raw material and labor costs, resulting in a decrease in profits. Price revisions have been decided to be implemented from April 2026 to improve profitability.

• Advance investments continue for businesses and development expenses aimed at future growth, impacting operating profit in Japan region.

Americas

Increased in sales and profit*

• Regarding SSL, although there was some impact from a reactionary decline in advance orders in

  first half, shipments to major customers were strong, resulting in increased revenue.

• PSL sales decreased due to continued volume decline in large daily necessities projects from the first half.

• Spouted pouch began full-scale orders for "Inverted Pouches".

• Regarding machinery, the acceptance period was delayed for some machines. However, sales of shrink labelers and pharmaceutical PSL labelers contributed to an increase in cumulative sales.

• Despite some slowdown in demand, strong first-half performance contributed to maintaining cumulative profit increase.

• Regarding machinery, reciprocal tariffs had an impact on imports from Europe, but the impact on business performance was minimal due to price revisions.

Europe

Increased in sales and profit*

• SSL sales increased as orders from major beverage companies continued to be steady from the first half.

• PSL sales increased with continued strong performance in multi-layer labels and major daily necessities from the first half.

• Regarding machinery, sales of shrink labelers for daily necessities and dairy products, and PSL labelers for pharmaceuticals remained at the same level as the previous year.

• Profit increased. However, demand for high-value-added SSL products, which contributed to profit last year, has decreased. In addition, the acceptance period for highly profitable PSL labelers has also been delayed, resulting in lower profits compared to last year.

ASEAN

Decreased in sales and increased in

profit*

• Regarding SSL, sales for daily necessities are strong, but demand for beverages in Thailand is stagnating due to external factors such as conflict.

• Regarding spouted pouch, orders for export products from major daily necessities companies decreased, but this was offset by gaining demand from local customers in Thailand.

• Both SSL and spouted pouch improved profit margins through increased orders of high-value-added products for daily necessities.

• The earnings structure is being reformed through cost reduction measures and fixed cost reduction measures.

(Millions of yen)

FY2024

3rd quarter

FY2025

3rd quarter

Increase/Decrease

FY2025 Full-

Vs. Forecast

(Amount)

(%)

Year Forecast

Progress rate

Net sales

158,472

161,078

+2,606

+1.6%

216,000

74.6%

Operating profits (Operating Profit

14,130

15,787

+1,657

+11.7%

19,400

81.4%

Margin)

(8.9%)

(9.8%)

(+0.9pt)

(9.0%)

(+0.8pt)

Ordinary profits (Ordinary Profit

14,093

17,023

+2,930

+20.8%

19,700

86.4%

Margin)

(8.9%)

(10.6%)

(+1.7pt)

(9.1%)

(+1.4pt)

Net profits

9,381

18,973

+9,592

+102.3%

17,300

109.7%

(Net Profit Margin)

(5.9%)

(11.8%)

(+5.9pt)

(8.0%)

(+3.8pt)

Foreign Currency Translation

Rate (average)

USD

151.46

148.08

△2.2%

145.00 +2.1%

EUR

164.56

165.69

+0.7%

155.00 +6.9%

(Millions of yen)

FY2024

3rd quarter

FY2025

3rd quarter

Year-on-year change

Change

Rate of change

Excluding forex impact Rate of change

Japan

77,212

75,434

△1,777

△2.3%

-

Shrink label

36,821

37,070

249

+0.7%

-

PS label

6,565

5,770

△795

△12.1%

-

Spouted pouch

17,178

16,647

△531

△3.1%

-

Machinery

4,499

4,494

△5

△0.1%

-

Others

12,148

11,453

△695

△5.7%

-

Americas

48,250

50,099

1,849

+3.8%

+6.2%

Shrink label

40,898

42,298

1,399

+3.4%

+5.8%

PS label

2,220

1,936

△284

△12.8%

△10.8%

Spouted pouch

52

273

220

+418.9%

+430.8%

Machinery

5,078

5,591

512

+10.1%

+12.6%

Europe

26,794

28,484

1,689

+6.3%

+5.6%

Shrink label

13,938

14,684

745

+5.4%

+4.6%

PS label

4,209

5,093

884

+21.0%

+20.2%

Machinery

8,646

8,706

59

+0.7%

+0.0%

ASEAN

14,970

14,192

△778

△5.2%

△3.0%

Shrink label

7,574

7,517

△56

△0.8%

+1.5%

PS label

76

52

△23

△31.0%

△29.5%

Spouted pouch

6,664

6,235

△428

△6.4%

△4.3%

Machinery

622

337

△285

△45.8%

△44.6%

Others

33

49

16

+49.2%

+52.6%

Eliminations

△8,756

△7,132

1,623

Consolidated net

158,472

161,078

2,606

+1.6%